Xcel Energy Proposes Gas Rate Increase For Minnesota Customers In 2026

MINNEAPOLIS, MN — Xcel Energy has proposed a new increase in natural gas rates for Minnesota customers that would take effect in 2026, according to a filing now under review by the Minnesota Public Utilities Commission.

The proposal, submitted Oct. 31, 2025, would raise the average residential customer’s monthly natural gas bill by about 8.7 percent, or roughly $7.11 per month, if approved in full.

While regulators review the request, Xcel is seeking approval to begin charging interim rates starting Jan. 1, 2026. The interim increase would amount to about 7.1 percent, or an estimated $5.84 more per month for the average residential customer.

Xcel said the requested rate increase would fund a range of infrastructure and operational investments aimed at maintaining safety and reliability across its natural gas system. Those investments include upgrades to fire safety systems at natural gas peaking plants in Inver Grove Heights, Mendota Heights, and Maplewood, as well as continued modernization of transmission and distribution infrastructure.

The utility operates nearly 10,000 miles of natural gas transmission and distribution lines across its service territory, according to the company, and says ongoing maintenance and replacement work is necessary to safely serve both existing and new customers.

Additional investments cited in the proposal include transitioning to more efficient vehicles and equipment and updating information technology systems used by customers and employees.

If the Public Utilities Commission ultimately approves final rates that are lower than the interim rates, Xcel said customers would receive a one-time bill credit with interest to refund the difference.

Minnesota customers can submit public comments on the proposed gas rate increase to the Public Utilities Commission. Comments should reference Docket No. G002/GR-25-356.

Xcel also noted that customers who are struggling to keep up with their energy bills can contact the company to explore payment plans and assistance programs.