Xcel Energy Ordered To Pay Millions In Refunds To MN Customers

ST. PAUL, MN — Xcel Energy will be providing tens of millions of dollars in refunds to Minnesota consumers following a ruling from the Public Utilities Commission (PUC).

The ruling follows the November 2011 catastrophic turbine failure that forced Xcel's Sherburne County power plant offline for nearly two years.

Xcel subsequently purchased more expensive replacement power from the regional grid to make up for the lost power from the out-of-service power plant, Ellison’s office said.

PUC ordered a review to see if Xcel had been careless in maintaining and inspecting its power plant.

On Oct. 15, PUC sided with Attorney General Keith Ellison’s Office and the Minnesota Department of Commerce when it voted to refund Xcel Energy customers for replacement power costs resulting from the 2011 power plant outage.

PUC determined that Xcel must pay the full replacement power costs with interest, minus a settlement amount received from the turbine's manufacturer, since Xcel refunded that amount to ratepayers in 2019.

“It’s hard to afford your life when your utility company is cutting corners, making mistakes as a result, and trying to stick you with the bill," Ellison said in a statement.

"Utility companies are effectively monopolies, and while that comes with certain benefits, the tradeoff is that we require these companies to use their resources wisely. My Office works hard to prevent utility companies from passing off the cost of their imprudent behavior onto you, and I am pleased we helped put tens of millions of dollars back into ratepayers’ pockets in this case."

Xcel was ordered to detail the exact amount of the refund in the coming months.