Your MN Xcel Energy Electric Bill Is Set To Rise This Month

MINNEAPOLIS — Xcel Energy has proposed electric rate increases that would raise Minnesota residential customers' monthly bills by 9.6 percent in 2025 and 3.6 percent in 2026.

Under the proposal, the average monthly electric bill would rise by $9.89 in 2025, followed by an additional $3.90 increase in 2026, according to the utility company.

While the Minnesota Public Utilities Commission (PUC) reviews Xcel's rate proposal, an interim 5.2 percent rate increase took effect on Jan. 1, 2025, raising the average residential customer’s bill by $5.39 per month.

Xcel stated that the proposed 2025-2026 rate hikes aim to fund improvements in electric system reliability, expand clean energy sources like wind and solar, and extend the operation of carbon-free nuclear plants. These initiatives are designed to meet growing electricity demand, reduce long-term costs for consumers, and support the transition to cleaner energy.

The increases will be partially offset by savings from federal tax credits and reduced fuel costs.

Additionally, if the final rates approved by the PUC are lower than the interim rates, Xcel Energy will issue customers a one-time refund with interest.

The PUC’s decision process includes several key steps, giving customers opportunities to participate. While exact dates are still to be announced, here’s what to expect:

• Public Hearings: TBD
• Testimony Deadline: TBD
• Evidentiary Hearings: TBD
• Public Comment Period Closes: TBD
• Judge’s Report Due: TBD
• Final Decision Deadline: July 1, 2026.

Read more about Xcel's rate proposal here.