Xcel Energy proposes nearly 10% increase to 2025 rates

Xcel, CenterPoint proposing rate increases in MN

Xcel Energy and CenterPoint are proposing more rate increases in Minnesota, with Xcel requesting a 9.6% rate increase for 2025. FOX 9's Bill Keller has the story.

ST. PAUL, Minn. (FOX 9) - Minnesota’s largest energy supplier, Xcel Energy, has proposed new electricity rate increases of nearly 10% for customers that would begin in 2025 and 2026.

Electricity rate increases

What we know: On Nov. 1, 2024, Xcel Energy submitted a two-year proposal to the Minnesota Public Utilities Commission (MPUC) for increased electric rates to take effect in 2025 and 2026.

The requested 2025 increase is approximately 9.6% - or an extra $9.89 for the average residential customer's monthly electric bill. In 2026, the company is then requesting an additional 3.6%, or $3.90.

While the MPUC reviews Xcel Energy's request, the interim rate increase for 2025 is 5.2% - or $5.39 per month – for the average residential customer. The interim rate takes effect on Jan. 1, 2025.

If final rates approved by the MPUC are lower than current interim rates, the company says it will apply a refund in the form of a one-time credit with interest on customers’ bills.

The company says it anticipates a MPUC decision in the summer of 2026.

Increased investment

Dig deeper: The company says the proposed rate increases "reinforces our continued transition to more renewable energy generation."

It says the revenue generated would support investments in:

Enhanced reliability and resiliency of the system that serves customers.
Clean energy projects that lock in fuel savings for customers.
Our carbon-free nuclear plants that are key to meeting our clean energy goals.
Preparing its system for expected growth of electricity use.

The company claims that between 2017 and 2023, its wind farms saved Midwest customers more than $2 billion in avoided fuel costs and tax credits.

Xcel Energy currently serves nearly 1.5 million customers in Minnesota, and the company has previously said it intends to retire its remaining coal plants by 2030.

Featured