Posted at: 02/17/2010 9:59 PM | KSAX.com
By: Bob McNaney and Becky Nahm

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Minn. bill would link utility rates to travel spending

A bill aimed at protecting Minnesotans from funding utilities' lavish expenses was proposed following a 5 EYEWITNESS NEWS investigation of Xcel Energy.

5 EYEWITNESS NEWS found Xcel Energy was using two lear jets to shuttle people between its Denver and Twin Cities locations while at the same time asking for permission to increase its rates. The investigation revealed the jets were often nearly empty and showed seats on commercial jets would have been cheaper.

Wednesday the House Energy Finance and Policy Division held a hearing on proposed legislation that would require utility companies to disclose use of corporate aircraft and entertainment expenses before asking to raise rates.

The Attorney General's office supports the bill.

Kermit Fruechte from the Attorney General's Office said, "That part of the bill is about transparency, transparency for ratepayers and transparency for the regulators."

Bill Stamets also from the Attorney General's office said utilities who want to recover travel and entertainment expenses would be required to include those expenses in their initial filing.

He said, "We'll examine then whether these are reasonable and necessary for the provision of utility service and whether the rate payer should be paying for these."

Xcel officials have defended their use of their corporate jets.

Xcel Energy attorney Chris Clark told lawmakers, "I think our shareholders recognize our corporate aviation department is actually one of the many tools we use to run our business effectively."

The House energy committee will continue discussing the bill next week.