Xcel Energy Wants You to Pay 8.5 Percent More – Here’s Why It’s a Bad Idea [Video]

This one is a little confusing, but I think I have it figured out. Xcel Energy has requested a rate increase and they say due to fuel costs it should keep you even or not amount to much. There seems to be some flaws with this plan, though.

Apparently, there is a base rate and a fuel charge. Xcel wants an 8.5 increase in that base rate. The say with the falling fuel charges, you should end up about even or just a little more. They say you'll pay about what you payed last February.

One problem: We all know that fuel charges fluctuate wildly, so the idea that you could end up even on the deal seems a little hopeful at best.

If the increase is approved, Xcel will raise over $71 million to pay for improvements to the power grid.

So the question is this: Is 8.5 percent a fair increase? Well, let me ask you this. Did you get an 8.5 percent raise anytime in the last few years?

It also seems a little weak to say 'hey, you're saving so much money we're going to charge you more.'

Then again, things like the power grid need to have improvements. This is a tough request on the part of Xcel, and while I expect that some rate increase may be necessary, I would think that around 3 percent would be much more reasonable (for people lucky enough to get raises, 3 percent is usually the standard). Asking for 8.5 percent just seems to be excessive.

Below: Lubbock Gov't response to Arabic banner was ridiculous