Letter

Xcel has runaway profits while people can’t pay their bills

Posted

Let’s talk numbers for a minute. For the 12 months ending June 30, 2022, Xcel Energy reported a year over year gross profit increase of a healthy 4.03%. Adding to that, Xcel Energy shareholders make a guaranteed 9% yearly return on their investment, with Xcel proposing to increase that to over 10%. In other words, Xcel is doing well financially and will likely continue to do so.
These numbers tell a different story. According to the City of Saint Paul’s Climate Action & Resilience plan, as of 2019, over 42,000 households in Saint Paul are struggling with what would be considered a high energy burden. In other words far too much of their monthly income goes to paying for their heat and electricity. One unfortunate outcome from this, as reported from Minnesota Interfaith Power and Light data, is that 1 in 8 Xcel customers are behind on their bills. That last piece of data is for all Xcel customers, so if broken down by Saint Paul customers only it would undoubtedly be higher. In other words, unlike Xcel Energy, things are not going well for the average Saint Paul resident in terms of affording the basic energy they need.
After taking these two sets of data into account, it is mind boggling to learn that Xcel Energy currently is planning on increasing their customers rates by 21% over the next three years. The only word for this is unacceptable.
The only answer to this unacceptable situation is for all to stand up and shine a light on what this is. Greed We as rate payers need to let Xcel hear us and demand better, particularly for our neighbors already struggling. Our elected officials, particularly the mayor and city council, need to stand up for us all and tell Xcel no to greed. With our combined voices Xcel needs to hear that the people who depend on their energy are more important than runaway profits.

Tom Lucy
Saint Paul resident

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