NORTH MANKATO — Xcel Energy wants to raise its electricity rates by about 6 percent, but it needs the public’s permission.

The Minnesota Public Utilities Commission manages the complicated regulatory process, but would like members of the public to weigh in as well.

“We haven’t been getting real good attendance at these public meetings and the commission really relies on public input,” said Burl Haar, with the PUC.

Xcel held a public hearing in Mankato Thursday evening to make its case for the rate change. The three members of the public who were present made the Mankato hearing one of the better-attended ones of the five held so far, officials said.

Still, they were outnumbered almost 4-to-1 by Xcel employees, regulators and other officials at the Intergovernmental Center.

Xcel customers can still weigh in on the process, and their written comments will be counted just like public meeting testimony.

Al Krug, director of regulatory affairs for Xcel, spoke first, briefly making the case for Xcel’s rate increase request, which totals about $156 million per year.

He said the company has spent more than $1 billion since 2006 on its power plants, especially for nuclear power. And like many businesses, the company is paying more for materials.

The state Office of Energy Security, which represents users’ interests, has examined Xcel’s proposal and believes the utility should only get an increase of $73 million, less than half of its request.

Xcel’s most recent rate case was filed on Nov. 2, 2005. The utility asked for an increase of 8 percent, or $168 million, and the Public Utilities Commission decided Xcel was entitled to a $131 million increase.

Before that, Xcel had not filed a rate increase since Nov. 2, 1992, when it asked for $119 million per year more and received $72 million.

Consumers are actually already paying for most of the increase Xcel is requesting.

Utilities are allowed to charge an “interim” rate before the final one is approved. In this case, that rate averages out to a roughly 5 percent hike, and customers have been paying for it since Jan. 2.

If the Public Utilities Commission calls for an increase lower than the interim rate, customers will be refunded the difference, including interest.

Two customers spoke at the public hearing.

Joseph Furst, of Mankato, asked why Xcel is asking to raise the rates of its residential customers more than industrial users. The increase is divided among five classes of users.

The proposal calls for a 7.6 percent increase for residential users, 5.5 percent for general service and 2.8 percent for street lighting.

Krug said the utility has studied the issue and found that industrial users have been subsidizing residential ones. Basically, it means households haven’t been paying their share of what it costs to generate and deliver the electricity.

Furst, 32, was also interested in Xcel’s plans to increase its use of renewable energy. He participates in Xcel’s Windsource program, which allows him to pay extra to help cover the extra cost associated with wind power.

Mankato resident and Xcel stockholder Steven Woehrle told regulators in attendance that he hopes they take a close look at Xcel’s request to determine if it’s necessary.

“A lot of people feel really pressured (financially) by the whole thing,” Woehrle said, also referring to property taxes.

The proposed rate hike will affect all customers, even city-owned utilities like New Ulm’s. The city is in the final year of a contract with Xcel, Utilities Director Gary Gleisner said.

Next year, the city plans on using a new provider, South Dakota-based Heartland Consumer Power District. Gleisner said the commission decided the new provider would be a less expensive option.

Thanks to planned-for wind towers and the use of a coal power plant, New Ulm plans to buy about half the electricity from Heartland as it does currently from Xcel.

Woehrle said while he doesn’t enjoy paying more for power, he does accept that it may be necessary.

“I guess I’d rather have a rate increase than no power,” he said.