Minnesota Public Utilities Commission Reduces Xcel’s Electric Rate Request and Expands Customer Protections
St. Paul, MN — The Minnesota Public Utilities Commission (Commission) approved Xcel Energy’s proposal to increase electric rates, after reducing their request by nearly 60%. The Commission approved a rate increase of approximately $82.9 million, or 2.3% for 2025 and an additional $127.3 million, or 3.4% for 2026. Xcel Energy initially proposed an increase of $353 million, or 9.6%, for 2025 and an additional $137.5 million, or 3.6%, for 2026.
In establishing the new rate, the Commission made several significant reductions and decisions, including:
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Capping recoverable compensation for Xcel’s top‑ten executives at the level of the Governor’s salary per executive, not to exceed a total of $2 million per year.
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Reducing late payment charges from 1.5% to 0.45%, with full waivers for low-income customers.
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Approving a new Residential Arrears Management Program (RAMP), funded in part by shareholders, to help customers manage longstanding past-due balances.
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Approving automatic enrollment in Xcel Energy’s PowerOn bill assistance program to ensure thousands more eligible households receive payment support.
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Expanding eligibility for the Low-Income Usage Assistance Credit from 300 kWh to 500 kWh of monthly usage.
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Denying recovery of a return on Xcel’s prepaid pension asset, instead establishing a tracker for pension expenses.
Based on initial estimates, Xcel’s final rates will be lower than interim rates, which means customers may receive a refund. The final refund will be calculated in the coming months.
Full record information is available in Docket 24-320. Learn more on rate cases, and the Commission’s role on our website.
About
The Minnesota Public Utilities Commission regulates three cornerstone service industries in Minnesota's economy: electricity, natural gas and telephone. The Commission’s mission is to create and maintain a regulatory environment that ensures safe, adequate, and efficient utility services at fair, reasonable rates consistent with State telecommunications and energy policies. It does so by providing independent, consistent, professional, and comprehensive oversight and regulation of utility service providers. Learn more at mn.gov/puc.
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