NEW ULM — While the recent cold snap has residents wondering what their next heating bill will be, they should be ready for bigger heating bills in the coming weeks compared to late last year.

In November, Excel Energy, which serves many communities in Minnesota, asked the Minnesota Public Utilities Commission for larger rate hikes but the Minnesota Public Utilities Commission typically grants interim rate while scrutinizing the request.

Xcel’s 9.6% 2024 full rate hike increase would result in the typical natural gas customer paying an extra $6.93 a month.

Minnesota Attorney General Keith Ellison’s office asked the PUC to cap interim rate hikes at 60% of what Xcel asked for but the Minnesota PUC granted higher interim rate hikes of 3.9% for residential natural gas customers and 6.4% for Xcel residential electric customers.

There is some good news.

Customers get refunds if the Minnesota PUC approves final rates that are lower than temporary rate hikes.

More good news, New Ulm Public Utilities (NUPU) will not be affected by the rate hike.

“That doesn’t affect us at all. We have no intention of raising gas rates and haven’t raised rates for a long time,” said NUPU Director Kris Manderfeld.

“We hedge gas. We buy out into the future when prices are good. We get bids from different suppliers like BP (British Petroleum), Shell Oil and others,” Manderfeld said.

She talked about the current gas market.

“We saw prices rise significantly last weekend, going from $3 to $5 per million cubic feet to $39. We were lucky. We bought very little on the open market,” said Manderfeld.

“Because of the cold weather, demand and because there is not enough pipeline, delivery is curtailed, driving prices up. (Gas) wells down south were freezing over. This happens when we get very cold temperatures over much of the country,” Manderfeld said.

The deadline to apply for the Minnesota Energy Assistance Program (EAP) during the 2023-2024 winter is May 31.

The free program provides benefits of up to $1,400, plus additional support to respond to emergencies.

Renters and homeowners can qualify. Eligibility is based on income and household size. For example, a family of four could earn up to $62,822 annually and qualify for financial help with energy bills. Annual income for one person is $32,667, $42,718 for two and $52,770 for a household of three.

Energy bill payments are sent directly to the household’s energy company or to a provider of fuel like propane, fuel oil or wood. Initial benefits average $500 per household.

Up to $600 in additional grants are available to eligible residents who need help preventing disconnection, getting reconnected to heat and power after disconnections and paying for emergency fuel deliveries of propane, heating oil or bio fuel.

For homeowners, if your furnace or heating system is broken, you may be eligible for help with heating system repair or replacement.

Steps to reduce heating costs include setting your thermostat to 68 degrees F. during the day and less when you go to sleep or are away from home. A smart thermostat adjusts the temperature automatically.

Sealing door and window leaks with draft snakes can prevent you from heating the outdoors.

Open blinds during the day to harness the power of the sun to warm your home.

Tune up your heating system annually.

Anyone can schedule an energy audit to help identify ways to make your residence more energy efficient and save money.

Prevent drafts by adding insulation.

Consider installing a water-saving shower-head and washing clothes in cold water. Hot water pipes can be insulated. Set your water heater temperature at 120 degrees F. to reduce energy use and accidental burn risk.

Energy costs can be reduced by unplugging electronics and turning off lights when not in use, replacing bulbs with LEDs and using power strips.

For more information, visit https://energy-assistance.web.commerce.state.mn.us/