PUC Newsletter - December 2025

Dec. 4

12 PM

Agenda Meeting

• Xcel Energy investigation and audit of service quality reporting and amended service quality tariff (12-383)

• Otter Tail Power’s application to increase electric rates (25-359)

• Commission delegation for Regional Transmission Organizations (RTOs) subcommittee (25-16)

Dec. 4

5:30 PM

Public meeting: Great River Energy and Lake Region Electric Cooperative for a route permit for the Otto Tap 115 kV transmission line project (New York Mills)

Dec. 9

9:30 AM

Public hearing: Annual hearing on Energy Infrastructure Permitting Act discussing siting and routing of large energy infrastructure (PUC)

Dec. 10

5 PM

Public hearing: Determination of compensation for the city of Slayton’s acquisition of Xcel Energy electric service territory (Slayton)

Dec. 11

10 AM

Agenda Meeting

• Dakota Electric Association, general rate case (24-400)

• Xcel Energy Natural Gas Innovation Act affiliated interest agreement (25-259)

• Xcel Energy Natural Gas Innovation Act Sherco Pilot (23-518)

• Xcel Energy’s Policy Rider - Gas Stay Out Proposal (25-403)

• Xcel Energy 2026 gas rate case and sales forecast, base cost of gas (25-356, -357)

Dec. 18

10 AM

Agenda Meeting

• Otter Tail Power University of MN- Morris Battery Energy Storage Pilot (25-325)

• Benton Solar, LLC 100 MW Solar Energy Generating System site permit in Benton County (23-423, -425)

Dec. 19

10 AM

Stakeholder meeting: MISO quarterly update

Dec. 25

Closed

Holiday – offices closed

Jan. 1

Closed

Holiday – offices closed

Docket

Docket or filing summary

25-359

Otter Tail Power Rate Case: OTP requested rejection of Dept, OAG, and CUB arguments to modify the interim rates proposed and proposes to increase the credits available under its Uplift program for Jan – Apr 2026 and noting OTP will refund approx. $3 million of excess from the Energy Adjustment Rider concurrent with interim rates go into effect Jan. 1, 2026 which provides bill savings to all customers. OTP also argues for including Coyote Station’s undepreciated plant balance in interim rates. OAG reply agrees with Dept and CUB on exigent circumstances and believes the PUC could make the case for either Dept or CUB’s proposal but should first require OTP to make the $3.2 million adjustment for Coyote Station.

25-269

GRE Otto Tap T-Line (14 parts): GRE and Lake Region Electric Cooperative filed a Route Permit application for the Otto Tap 2.9-mile 115-kV Transmission Line Project in Otter Tail County. This is the first project to be reviewed under MN Stat. 216I.

24-288

Xcel Distribution Cost Sharing for Interconnection in Constrained Areas: Commenters disagree on how to proceed and offer recommendations, compromises, and suggestions for ongoing workgroup discussions.

07-1199, 23-117, 21-565

Several parties filed recommendations on how to incorporate a regulatory cost of carbon into gas utility IRPs.

25-356, -357, -403

Xcel Gas Rate Case: The OAG proposed capping interim rates at the amount requested in the stay-out proposal and referred the case to the CAH for record development, specifically including executive compensation review. The Department recommended accepting the application as complete and referring it to CAH. The Dept. advised limiting the proposed interim rate revenue deficiency for residential customers to $16.2 million or 50% of the request. Additionally, the Dept. recommended approval of the base cost of gas, pending review of demand entitlement and cost information requested in the reply. The Citizens Utility Board made recommendations:        

• Suspend final rates and refer the case to CAH for a contested case
• Reduce the interim rate increase due to exigent circumstances related to the federal government shutdown.      
• Approve CUB's petition to intervene.
• Require Xcel to notify customers by email of the proposed rate increase, including a live link to instructions on filing public comments.

24-295, -294

Filed the advisory task force report for the Midwater BESS project. The report includes impacts and mitigation measures recommended for study in the EA.

24-132

Laketown 115 kV Transmission Line: Power Engineers provided a report regarding the reliability and costs of certain routing options for the project.

25-355

Telephone Assistance Program (TAP): Department recommends: 1) accept TAP memo, 2) maintain current TAP credit at $10/month per subscriber, and 3) reduce the TAP surcharge to a de minimus amount of $.005 per access line to “preserve the fund and processes providers use to collect the surcharge”.

25-27,-29,-30

Xcel Energy, Minnesota Power, and Otter Tail Power Co. filed IEEE benchmarking data in the annual Service Quality, Safety, and Reliability reports which compares utility service reliability to similar utilities in the nation. Xcel Energy met two of the reliability thresholds (SAIDI and CAIDI) for 2024 and missed the third (SAIFI) by 0.07 interruptions. Minnesota Power met these major event-excluded target goals for SAIDI by 30.1 minutes and CAIDI by 35.59 minutes but failed to meet its goals for SAIFI by 0.15. Otter Tail Power met the reliability goal (SAIDI) compared to similar-sized utilities for Minnesota total customers but did not when compared to all utilities with the most significant events being summer storms and a material failure of an overhead splice. Click here learn more about reliability metrics and service standards.

25-139, -140, -141, -142

Rate-regulated electric utilities filed biennial Integrated Distribution Plans with Transportation Electrification Plans. Click here to learn more about IDPs.

23-212

Xcel Energy’s 800 MW Firm, Dispatchable Request for Proposals: Xcel requests: 1) find proposed agreements are in public interest and approve; 2) authorize cost recovery in the fuel clause for MN jurisdictional portion of costs; and 3) establish a procedural schedule for PUC to complete deliberations by mid-January for tax credits and avoid construction delays. Regarding Lake Wilson, Xcel states “we do not intend to continue negotiations but would encourage Invenergy to incorporate our feedback provided throughout the negotiations process and consider participating in a future RFP.” Invenergy filed a request for action on Xcel’s update to stop PPA negotiations with Lake Wilson Solar and asks for expeditious consideration of this request that the PUC require Xcel to resume PPA negotiations in good faith to reach a final agreement. According to Invenergy, Lake Wilson can be online by Dec. 31, 2027, if an agreement is reached soon and utilize tax credits and Xcel should not be allowed to circumvent the process with MISO market or Xcel’s self-build 300 MW Nobles Energy Storage. Murray County commented about the local economic impacts of ongoing congestion and curtailments and asked why Lake Wilson BESS Project, proposed to address the issues, is not moving forward. Department and LIUNA recommend approval of the power purchase agreements Xcel proposed, and the Department and Clean Energy Organizations requested additional record development around the Invenergy Lake Wilson project.