North Dakota Approves Interim Rate Hike for Xcel Energy Natural Gas

The state's public utility commission greenlit a 10.66% increase, with a full 12% hike still under consideration.

Mar. 20, 2026 at 5:07am

The North Dakota Public Service Commission has approved an interim 10.66% rate increase for Xcel Energy's natural gas customers, with the utility originally requesting a nearly 12% full rate hike. The interim increase will raise residential bills by over $8 per month, while the potential full increase could raise bills by more than $10 per month.

Why it matters

Rising energy costs are a major concern for consumers and regulators across the country, as inflation and market volatility impact utility rates. The PSC's decision aims to balance Xcel's need to cover rising operational costs with the impact on North Dakota households and businesses.

The details

Xcel Energy filed for the rate increase in January 2026, citing changes in the cost of providing natural gas service. While the utility asked for a nearly 12% full rate hike, the PSC approved a 10.66% interim increase that will take effect immediately. This interim rate will raise the average residential customer's monthly bill by over $8 until the PSC makes a final determination on the full rate request.

  • Xcel Energy filed for the rate increase in January 2026.
  • The North Dakota Public Service Commission approved the 10.66% interim rate hike on March 20, 2026.

The players

North Dakota Public Service Commission

The state's public utility regulatory agency that oversees electricity, natural gas, telecommunications, and other utility services.

Xcel Energy

A major electric and natural gas utility company that serves customers across eight U.S. states, including North Dakota.

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What’s next

The PSC will continue to review Xcel Energy's full rate increase request and make a final determination in the coming months.

The takeaway

This interim rate hike reflects the ongoing challenges utilities face in balancing operational costs with the affordability of essential services for North Dakota consumers and businesses.