North Dakota PSC approves Xcel Energy agreement resolving multi-state energy policies

The North Dakota Public Service Commission (PSC) recently approved a comprehensive settlement with Northern States Power Company (Xcel Energy) that addresses several persistent challenges between Xcel and North Dakota regulators.

“As a North Dakota regulator, my priority will always be North Dakota customers,” Commissioner Brian Kalk said. “Today’s settlement strikes a balance between protecting North Dakota ratepayers and making sure we have a reliable regional energy grid, while acknowledging that individual states have a right to set their own state energy policies.”

The agreement includes a number of provisions, including a commitment by Xcel to build or have located in eastern North Dakota a natural gas-fired electric generation facility with a capacity of at least 200 megawatts, an understanding that North Dakota customers will not have to pay for 15 community-based energy developments and two small purchase agreements being implemented because of Minnesota-driven alternative energy projects, and a proportional share of the cost of six key biomass purchase power agreements and two wind projects will continue to be recovered in North Dakota.

Additional provisions include a rate freeze for base electric rates until at least 2018 and the development of a mechanism for dealing with divergent state energy policies.