Grace Jacobson / News Director

The Minnesota Public Utilities Commission voted Thursday to cut Xcel Energy’s proposed rate hike by almost half to $372 million.

This marks a victory for consumer advocates that opposed the original $678 million request.

Minn. Attorney Gen. Keith Ellison’s staff beat back Xcel’s proposals to speed up rate recovery of its investments in coal-fired power plants, fund its membership in industry groups that lobby for special interests and spend millions of dollars on unnecessary upgrades to its electric grid.

In a joint effort with other advocates, the Attorney Gen. also reduced the basic monthly service charge for most residents and small businesses.

Customers should expect to see the reduced $6 service charge on their bills once the final rates take effect later this year.