Minnesota’s largest energy supplier, Xcel Energy, has proposed a nearly 10% increase in electricity rates for customers starting in 2025 and 2026. The company submitted its two-year proposal to the Minnesota Public Utilities Commission (MPUC) on November 1, 2024.
The requested rate increase for 2025 is approximately 9.6%, or an extra $9.89 per month for the average residential customer’s bill. In 2026, Xcel Energy is seeking an additional 3.6%. However, customers will face a temporary 5.2% interim rate increase starting January 1, 2025.
If the MPUC approves rates higher than the current interim rates, Xcel Energy plans to provide a refund in the form of a one-time credit with interest on customers’ bills.
The proposed rate increases are intended to support investments in renewable energy generation and reliability. The company aims to transition to more clean energy sources, including wind farms, which have already saved Midwest customers over $2 billion in avoided fuel costs and tax credits between 2017 and 2023.
Xcel Energy serves nearly 1.5 million customers in Minnesota and plans to retire its remaining coal plants by 2030. The MPUC is expected to make a decision on the proposal in the summer of 2026.
Source: https://www.fox9.com/news/xcel-energy-proposes-increased-2025-rates