Xcel Energy Proposes $318M Refund: See How Much You Could Get

MINNEAPOLIS, MN — Xcel Energy is proposing to return $318 million to Minnesota customers through bill credits, with $176 million — about 55 percent — coming from federal tax credits on nuclear energy.

If approved by the Minnesota Public Utilities Commission, the average residential customer would receive a $81 refund, applied to bills through March 2026.

Xcel Energy is required to go through an annual Fuel Clause Adjustment process, which ensures that customers only pay for the actual cost of fuel used to generate electricity.

If fuel costs are lower than expected, the company refunds the difference to customers through bill credits. This year’s proposed refund includes savings from lower fuel costs and the federal tax credits on nuclear energy generation.

The Inflation Reduction Act established the federal tax credits, recognizing nuclear power as the only carbon-free energy source available 24/7.

"We’re committed to supporting our state’s economic growth, investing in our communities, delivering reliable and resilient electricity, all while keeping customers’ bills as low as possible," said Ryan Long, president of Xcel Energy—Minnesota, North Dakota, and South Dakota.

"Tax credits on nuclear energy generation produce savings for our customers, providing another way for our carbon-free, always-available nuclear fleet to create value for our customers and state."

Xcel’s Monticello and Prairie Island plants generate nearly 25 percent of the electricity for its Upper Midwest system. With federal approval to extend Monticello’s operating life, the company plans to do the same for Prairie Island.