PUC Newsletter - January 2026

Minnesota Public Utilities Commission sent this bulletin at 01/06/2026 02:15 PM CST

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NEWSLETTER - JANUARY 2026

2025 Year in Review

As we look back on 2025, the Minnesota Public Utilities Commission reflects on a year of significant milestones and steady oversight. We are sincerely grateful to the thousands of residents, Tribal nations, parties and stakeholders whose testimony and participation informed our process this year. This active engagement is vital to our work, helping us navigate a changing energy landscape and strengthening the state's infrastructure. We wanted to take a moment to share some highlights of this collaborative effort and our commitment to our mission of ensuring that Minnesotans have safe, reliable, and efficient utility services at just and reasonable rates.

Consumer Protections & Financial Accountability

42,000+: Inquiries handled by the Consumer Affairs Office to assist customers across the state.
$260,000: Secured in direct bill credits for individual consumers by the Consumer Affairs Office.
$318 Million: Refunded to Xcel Energy customers, covering federal nuclear tax credits and outage costs.
ALLETE Acquisition: $50 million in direct bill credits secured, $10 Million for a new fund established for low-income weatherization to help families manage energy costs and 100% retention of full PUC jurisdiction and oversight over Minnesota Power.
Consistent Legal Performance: Out of hundreds of rulings this year, only five were appealed, reflecting the Commission’s commitment to legally sound decision-making. Notably, the appellate court upheld the Commission’s order transitioning Community Solar Gardens (CSG) from Applicable Retail Rates to Value of Solar rates - a decision expected to save ratepayers $48 million annually over the remaining life of legacy CSG contracts.

Building a Reliable Future

19,800 Filings: Processed and filed to move electric, natural gas and telecommunication forward.
A Landmark Year for Energy Storage: The PUC approved the state’s first-ever standalone battery projects, totaling 200 MW of new storage capacity this year.
80% Carbon-Free: The target reached by 2030 under the newly approved Xcel Energy Integrated Resource Plan (IRP), which authorized 3,200 MW of new wind power.
680,000 Metric Tons: Annual emissions avoided through the state’s first authorized Natural Gas Innovation Act plans.

Implementing Key Legislation

Enhanced Permitting: In July, we began successfully implementing landmark permitting legislation to streamline infrastructure permits while maintaining high standards for public participation.
Grid Enhancing Technologies: The Commission adopted guidelines for transmission owners to use in evaluating and reporting on Grid Enhancing Technologies (GETs) for the 2025 GETs Report. These guidelines set clear standards for cost-effectiveness and transparency, ensuring that utilities evaluate a broad suite of options to relieve congestion, make more efficient use of the grid, and deliver savings to ratepayers.
Progress Toward 2040: Hit the ground running on the implementation of the state’s Carbon-Free Standard, managing the path toward 100% clean electricity with transparency and accountability.
Strengthened Tribal Consultations: Fully integrated the PUC into the state's Tribal consultation process, ensuring PUC consultation continues into the future.

Leadership in Action

Minnesota’s commissioners continued to lead the national conversation on energy policy this year:

Chair Katie Sieben was elected as the Second Vice President of the National Association of Regulatory Utility Commissioners.
Commissioner Tuma served as President of the Southwest Power Pool Regional State Committee, and Commissioner Sullivan served as President of the Organization of MISO States, ensuring Minnesota’s interests are represented in critical grid planning across the Midcontinent and Western regions.
Bipartisan confirmation support for Commissioners Ham and Partridge.

Affordability

Our average residential electric bills were the 8th lowest in the U.S. in 2024.
Ranked among the 10 most affordable states for residential natural gas.
Adjusted for inflation, Minnesota's retail electricity prices decreased by 1.6% between 2019 and 2024.

The Commission is proud to serve the people of Minnesota. We remain focused on providing steady oversight and protecting the public interest in 2026 and beyond. To learn more or to contact our Consumer Affairs Office with questions about your utility service, visit our website or call 651-296-0406.

Commission calendar and upcoming events

The information below is subject to change. Current information available online at PUC calendar.

Jan. 6	6 PM	Public hearing: Xcel Energy’s Blue Lake Battery Energy Storage Project (Shakopee)
Jan. 7	6 PM	Public hearing: Xcel Energy’s Blue Lake Battery Energy Storage Project (Virtual)
Jan. 8	10 AM	Agenda Meeting Telephone Assistance Plan (TAP) review (Docket 25-355) Greater Minnesota Gas, Inc.’s 2025 depreciation certification (Docket 25-306) Otter Tail Power Co.’s annual update of the Electric Utility Infrastructure Cost Recovery Rider (Docket 25-199) Xcel Energy’s residential time of use rate design (Docket 23-524)
Jan. 13	5:30 PM	Public meeting: Big Bend Wind and Great River Energy route permit for transmission line and associated facilities in Martin County (Windom)
Jan. 13	6 PM	Public meeting: Xcel Energy Site Permit for up to 600 MW Sherco South & West Battery Energy Storage Project in Sherburne County (Virtual)
Jan. 14	6 PM	Public meeting: Big Bend Wind and Great River Energy route permit for transmission line and associated facilities in Martin County (Virtual)
Jan. 14	6 PM	Public meeting: Xcel Energy Site Permit for up to 600 MW Sherco South & West Battery Energy Storage Project in Sherburne County (Becker)
Jan. 15	10 AM	Agenda Meeting Utility compliance with Minnesota’s Carbon-Free Standard’s fuel life-cycle analysis framework (Docket 24-352) Minnesota Power’s 85 MW Boswell Solar Project and associated 2.45-mile, 230 kV transmission line site and route permit in Itasca County (Docket 24-425,426) Minnesota Power’s modification to its Service Extension Tariff (Docket 12-1359)
Jan. 19	Closed	Holiday – offices closed
Jan. 20	10 AM	Planning Meeting – Winter readiness
Jan. 21	10 AM	Agenda Meeting Minnesota Power’s 2025 Remaining Life Depreciation (Docket 25-342) Gas IRPs: Costs of future carbon dioxide regulation on electricity generation (Docket 22-236, 07-1199, 14-643) Appleton to Benson transmission line route permit (Docket 24-263, -264) Xcel Energy’s 800 MW Firm, Dispatchable Request for Proposal (Docket 23-212, 24-67)
Jan. 26	6 PM	Public Hearing: Xcel Energy’s Lyon County Generating Station (Marshall)
Jan. 27	6 PM	Public Hearing: Xcel Energy’s Lyon County Generating Station (Virtual)
Jan. 29	10 AM	Agenda Meeting Otter Tail Power Integrated Distribution Plan – Electric Vehicle Tariff (Docket 23-380) Xcel Community Solar Garden – Fees (Docket 23-335) Xcel Energy Certificate of Need and Route Permit for the Mankato to Mississippi 345 kV Transmission Line Project in Southeast Minnesota (Dockets 22-532, 23-157)

Commission decisions

December 4

The Commission approved Xcel Energy's annual 2024 Quality of Service Plan (QSP) report. In 2024, Xcel did not meet the thresholds for two metrics in its QSP — customer complaints and telephone response time. Per the QSP tariff, Xcel incurred $2 million in under performance payments for failing to meet the two standards. To disburse the $2 million, the Commission voted to provide $500 bill credits to 2,000 past due customers. (Docket 12-383)
The Commission approved an interim rate increase for Otter Tail Power (subject to refund) of approximately $28.5 million effective January 1, 2026. (Docket 25-359)
The Commission re-affirmed the Regional Transmission Organization Subcommittees, including Commissioner Tuma for the Southwest Power Pool and Commissioner Sullivan for Midcontinent Independent System Operator. The Commission also delegated authority to the Executive Secretary to act as the proxy for voting ballots at the North American Electric Reliability Corporation consistent with the RTO subcommittees. (Docket 25-16)

December 11

The Commission approved a settlement for Dakota Electric Association’s (DEA) 2025 electric rate proposal. The settlement decreased DEA’s initially proposed rate increase by nearly $3 million. DEA originally requested an 11% rate increase of $23.8 million. The approved settlement is for a 9.6% rate increase, valued at $20.9 million. (Docket 24-400) Press release.
The Commission began reviewing Xcel Energy’s application to increase natural gas service rates in Minnesota. As part of this review, utilities are entitled under Minnesota law to recover a portion of their proposed costs through interim rates while the Commission conducts a comprehensive evaluation of the full rate request. The Commission approved a $51.5 million interim rate increase, or 6.8%, which is less than Xcel’s request of $63.4 million increase, or 8.2%. (Docket 25-356) Press release.
The Commission denied Xcel Energy’s request to establish a baseline of $46.3 million for the Gas State Energy Policy (SEP) Rider Recovery effective January 1, 2026. (Docket 25-403)
The Commission approved the Base Cost of Gas as proposed and required Xcel to file updated information on the commodity cost of gas both in this proceeding and the general rate case. (Docket 25-357)
The Commission re-affirmed Xcel Energy’s affiliate interest arrangement accounting treatment relating to the operation of Xcel’s NGIA hydrogen electrolyzer pilot. (Docket 25-259, 23-518)

December 18

The Commission determined that Otter Tail Power’s 1 MW/4-6 MWh battery energy storage system pilot project in partnership with the University of Minnesota Morris was not ready for resolution and that the record should be further developed. Within 30 days, Otter Tail Power must file additional information addressing all elements of the pilot project including: treatment of tax benefits, battery technology, contractual agreements with the University, accounting and anticipated decommissioning costs. (Docket 25-325)
The Commission approved the Benton Solar Project, a 100 MW solar facility and 400 MWh battery energy storage system. Situated approximately four miles east of St. Cloud in Minden Township, the project is designed to help meet the growing demand for renewable energy while advancing Minnesota’s mandate to achieve 100% carbon-free electricity by 2040. Construction is expected to begin in the second quarter of 2026, with the site becoming fully operational by late 2027. (Docket 23-423) Press release.

Recaps of Commission meetings and hearings

Project meetings

City of Slayton transfer of electric service territory: On December 2 a public hearing was held on the city of Slayton’s request that the Commission determine compensation for the municipality to purchase Xcel Energy electric service territory within the city.
Crane and Sandhill Energy storage projects: On December 2-3 the PUC held public hearings and took comment on the Crane Energy and Sandhill Energy application for a site permit to construct and operate an up to 200 MW battery energy storage system for each project in Olmstead County.
Otto Tap transmission line project: On December 3-4 the PUC held public information and scoping meetings on the application of Great River Energy and Lake Region Electric Cooperative for a route permit for the Otto Tap 115 kV transmission line project in Otter Tail County. The proposal includes the construction of a new 2.9-mile 115 kV single-circuit transmission line between Great River Energy’s existing Perham to Rush Lake 115 kV transmission line and the new replacement Otto Substation.

Stakeholder meetings

Annual Infrastructure Permitting Hearings: On December 9 and 29 the PUC held Annual Infrastructure Permitting Hearings under Minnesota statute 216I.15, formerly known as the Power Plant Siting Act Annual Hearing. This hearing is an opportunity for interested parties to comment on the overall siting and routing process administered by the PUC. In 2025, the Commission permitted 6 transmission lines, 7 solar facilities, 1 battery storage facility, 1 repowered windfarm, and one carbon dioxide pipeline.
MISO Quarterly Meeting: Representatives from MISO presented a quarterly update to the Commission on December 19. The fall weather across the MISO footprint was mild in 2025 and MISO operated normally. Average real-time electricity prices increased 38% relative to fall 2024, driven mostly by increased natural gas prices, energy consumption, and forced generator outages. MISO has sufficient generation even for extreme weather and higher-than-expected generator outages. MISO also highlighted two current efforts: a new operational risk forecasting tool and work to connect large loads to the grid. The risk forecasting tool will give operators information one to two days ahead to help commit generators more efficiently, dynamically set operating reserves, and better forecast transmission congestion. To speed connection of large loads, MISO is using its Expedited Project Review process and developing interconnection rules for co-located loads and generators. A recording of the meeting is on our website.

Notable new dockets or filings

Docket	Docket or filing summary
24-198	ALLETE Acquisition: Department reviewed Minnesota Power’s updated rate calculations and red-lined tariffs and conclude they comply with the settlement and “…notes that in its Compliance Filing, the Company is proposing to update only its base rates, but not any of the various riders that will be affected by the ROE change. The Department understands that, rather than updating rider rates immediately to reflect the lower ROE, the Company intends to reflect the ROE change in true-up calculations in future rider proceedings. The Department concludes that this approach is reasonable.” Department took no position on the proposed customer notice but notes MP said it was developed in consultation with CAO. Written Order filed – acquisition final.
24-320	Xcel Rate Case: Several filings, including Xcel filed a letter informing parties the Company agrees to Department recommendations on wildfire-related costs: “Department witness Borden recommends approximately $48.06 million of larger-scale wildfire-related capital additions for the 2025 test year and 2026 plan years combined, along with approximately $9.19 million of wildfire-related operations and maintenance expense (O&M) in each of the two years. This results in a $6.3 million increase in the 2025 test year revenue requirement and a $8.3 million decrease in the 2026 plan year revenue requirement from the Company’s Rebuttal Testimony position… recommends Xcel Energy should begin implementing wildfire mitigation programs, including smaller-scale and foundational programs, as well as larger-scale programs in higher-risk areas.”
25-319	Xcel Energy filed a site permit application for the 600 MW Sherco South and West BESS project.
25-378	Stakeholders filed comments regarding Xcel Energy’s Capacity*Connect proposal for distributed capacity procurement. The Department recommends approval with modifications, specifically noting the implementation of FERC Order 2222. Many supported approval with modifications, particularly to expand third-party and customer-owned participation, require competitive procurement, and strengthen transparency, equity, and interconnection rules. Common recommendations included clearer timelines, limits or guardrails on utility ownership, data sharing for siting, adherence to Minnesota’s Distributed Interconnection Process, and use of DERMS to provide operational visibility for behind-the-meter resources. Several groups emphasized equity and access, recommending program benefit targets for designated communities, inclusive procurement practices, public reporting dashboards, and siting that addresses reliability disparities. Others urged cost controls, including a proposed hard cost cap per MW, ratepayer risk mitigation, and comparative analysis of utility-owned versus third-party models. Labor organizations and some stakeholders expressed strong support for approval, citing workforce development, apprenticeship partnerships, and overall system benefits.
25-429	Xcel filed information about a “Near Term RFP” for up to 3500 MW wind, solar, hydro, standalone storage, or hybrid capacity to achieve commercial operation or provide incremental accredited capacity by Dec. 31, 2030. Through a separate Distributed Solar Energy Standard (DSES) track, the RFP seeks up to 600 MW of distributed solar or solar + storage hybrid by Dec 31, 2029. The RFP will launch on Dec. 19. “We intend to contact shortlisted bidders by June 19, 2026 so those projects can retain the opportunity to qualify for federal tax credits before the July 4, 2026 deadline. We expect to file our petition requesting approval of the NSPM recommended project(s) as soon as possible after contract negotiations are complete in the first half of 2027. We are hopeful this timing would allow for prompt review of the projects and Commission approval in the second half of 2027 to ensure adequate time for project permitting and construction so our selected projects can achieve commercial operation and/or provide incremental accredited capacity by 2029-2030.”
22-415, -416	GRE and MP filed a MISO Variance Analysis notice for the Northland Reliability Project which stated an estimated 43% increase over the initial cost estimate (from ~$970m to $1.4B in 2022 dollars). GRE and MP attribute the cost increases to material and construction cost escalations (25%), routing and engineering design refinement (18%). MISO initiates a variance analysis when projects exceed the baseline cost estimate by 25% or more.
25-38	CenterPoint filed a proposal to avoid projected negative tracker balance stating: the 2024 GAP tracker’s forecasted monthly volumes included volumes for firm Market Rate customers, but they are exempt from GAP-related charges and when corrected the GAP forecasted recovery is projected to under-recover for the remainder of 2025-2026. “Assuming no change in program expenditures, the Company would recommend increasing the GAP cost cap to $12 million to reflect the increase in anticipated expenditures for both 2025 and 2026 resulting from automatic enrollment.” Alternatively, CPE proposes modifying the affordability benefit and arrearage forgiveness benefit amounts by either increasing the % of household income used to determine customer benefits from 3% to 6% or increase the arrearage forgiveness timeframe from 12 to 24 months. The Company proposes increasing the surcharge to $0.10927/Dt to achieve the $12 million increase with annual true up annual GAP reports.

Get involved in the PUC process

The Commission encourages Minnesotans to get involved in our processes, stay informed on utility-related issues, and provide input on topics of interest. Visit our website to see what is currently open for public comment. Also, check out the series of short videos that explains who we are, how we work and how to get involved.

Minnesota Public Utilities Commission
121 7th Place E, Suite 350 Saint Paul, MN 55101-2147

(651) 296-0406 | (800) 657-3782
consumer.puc@state.mn.us