Minnesota gasps at the financial damage it faces from the Texas freeze [View all]
When Texas natural gas supplies froze up, prices soared, and now Minnesotas customers are looking at an $800 million bill. One utility, headquartered in Houston, is taking an especially aggressive tack.
The ineptness and disregard for common-sense utility regulation in Texas makes my blood boil and keeps me up at night, Katie Sieben, chairwoman of the Minnesota Public Utility Commission, said in an interview. It is maddening and outrageous and completely inexcusable that Texass lack of sound utility regulation is having this impact on the rest of the country. . . .
Gas prices in Minnesota rose to 70 times their normal level, as deliveries to the states main trading hub dropped by 39 percent. . . .
Minnesotas biggest gas companies are putting forward plans to recoup their expenses by adding a surcharge to customers bills, which the state utility commission would first have to approve. Normally, such adjustments to account for winter prices go into effect in September, but Minnesotas biggest gas utility, Houston-based CenterPoint Energy, says the financial pinch is so great it wants to start billing customers next month and charging them nearly 9 percent interest until the extraordinary costs are paid off. . . .
Minnesotas second-largest gas company, Xcel Energy, also wants to spread the recovery of costs over two years but said it would not charge interest, which it said would amount to $24.7 million on borrowing to cover its expenses. The company, based in Minneapolis, predicted a charge of about $250 per residential customer. Minnesota Energy Resources said it would hope to recover about $225 per customer. The smallest commercial utility, Greater Minnesota Gas, said it had enough of a supply in storage in February and was able to avoid the spot market.
I'm not quite sure I understand why MN ends up paying so much. Is it do to the fact energy costs in general skyrocketed during the Texas cold spell, or is there another explanation?
And of course I have both Center Point and Excel.