MINNEAPOLIS (WCCO) – The state said Xcel Energy is charging Minnesota families too much for electricity.

Customers’ bills went up more than 10 percent last month — or about 8 dollars a month on average.

Xcel said that money is needed to pay for $285 million in upgrades to power poles and plants.

But the Commerce Department said the energy company could get by with about 1/3 of that, and said Xcel overstated costs.

Public hearings start next week, and if the utilities commission decides the rate hike is too much, customers could get refunds.