In addition to an increase in electrical rates the company also wants to increase natural gas rates by 4 to 5 percent.

Officials from Xcel Energy, which owns Northern States Power, announced on Friday that they have filed an application with the Public Service Commission to raise rates.

In their announcement Xcel Energy officials say the increase will mean the average customer will pay about $10.25 more a month for their electricity and the average natural gas customer will pay an additional $2.50 a month.

Overall, Xcel Energy wants to increase electric rates by $67.4 million and natural gas rates by $5.3 million.

"The electric rate increase is needed for investments in cleaner sources of energy to reliably meet our customers' growing demands for electricity," said Mike Swenson, president and CEO, NSP-Wisconsin.

Swenson added that the company is spending more than $1 billion over six years to increase the output of their power plants and voluntarily reduce emissions.

Some of the initiatives include a 90 percent reduction in emissions at coal-powered power plants, improvements at nuclear power plants, the purchase of additional wind power and a $3 million investment in additional energy conservation programs.

"These investments will increase the energy capacity at existing facilities, dramatically reduce the amount of emissions and improve the air quality for our customers and communities in northwestern Wisconsin," Swenson said.

The company says that it is also investing in transmission lines to both its customers and to wind farms.

The reason given by the company for the natural gas rate hikes is the ongoing installation and maintenance of the company's distribution system and energy conservation programs.

Swenson acknowledged that increases may cause some financial hardships for some customers, especially those on fixed incomes.

"We are contacting our county agencies throughout northwestern Wisconsin to discuss these issues and offer solutions for customers who may have difficulty paying their utility bills," Swenson said.

Before the rate hikes can take effect they must be approved by the PSC, which will hold meetings this fall about the increases.

Information about the hearings will be posted to the PSC Web site at www.psc.wi.gov.