Minnesota’s largest utility did not change rates on October 1, 2026. Xcel Energy’s two-year electric rate case was decided earlier in 2026, and the main remaining event for customers is a refund of interim rates.
This article covers Xcel Energy (Northern States Power). It does not cover Minnesota Power, Otter Tail Power, cooperatives or municipal utilities.
Quick Summary
| Item | 2025 | 2026 |
|---|---|---|
| Xcel’s request | $353 million (9.6%) | $137.5 million (3.6%) |
| PUC approval | $82.9 million (2.3%) | $127.3 million (3.4%) |
Total approved: about $211 million over two years.
What Was Decided
The Minnesota Public Utilities Commission (PUC) ruled in Docket 24-320. Its news release says:
- Approved: $82.9 million (2.3%) for 2025 and $127.3 million (3.4%) for 2026, nearly 60% below what Xcel asked for.
- Late fees: cut from 1.5% to 0.45%, and waived for low-income customers.
- Bill help: the low-income usage credit now covers 500 kWh a month, up from 300 kWh, and a new program helps customers pay down past-due balances.
- Executive pay: the amount recoverable from customers is capped.
Xcel’s rate case page says the commission gave final approval on rates on July 31, 2026.
The Citizens Utility Board of Minnesota (CUB) describes the original filing as $573 million over two years with a requested 10.3% return on equity, up from 9.25%.
The Refund
Interim rates began on January 1, 2025: a 5.2% increase, about $192 million, shown on bills as “Interim Rate Adj.” Final rates are lower. The PUC said the refund “will be calculated in the coming months,” and Xcel says it “will apply a refund in the form of a one-time credit with interest.” We did not find the refund date or amount.
A second, unrelated credit is also coming. On May 7, 2026 the PUC ordered Xcel to refund $40.6 million plus interest for replacement power bought during a 2023 outage at the Prairie Island nuclear plant, according to the Attorney General’s office.
Three Different Bill Figures
| Source | Residential impact | Basis given |
|---|---|---|
| Xcel Energy rate case page | 2.85%, or $2.78 a month | Average residential customer, “in 2025 and 2026” |
| KAAL TV report | About $5.59 a month | About 3% a year |
| CUB Minnesota | 5.8%, or $10.27 a month ($123.37 a year) | Typical residential customer, final decision |
These are not the same measure. One plausible reading is that the smaller figure is per year and the larger is the two years combined compared with rates before the case, but none of the sources says so, and we could not confirm it. Use your own bill: compare the energy and basic service charges on a bill from late 2024 with one from after final rates took effect.
What This Means for Homeowners With Solar
We did not verify Minnesota’s current net metering or export credit rules for this article, so we give no export rates here. Ask your utility for its current solar tariff, and check how exported energy is credited before sizing a system. Fixed monthly charges are not reduced by solar.
Our solar payback guide shows how the retail rate and the export credit change the math.
What to Check on Your Bill
- The “Interim Rate Adj.” line, and when it is replaced by final rates.
- A one-time refund credit.
- The basic service charge and fuel clause.
For help sorting the lines on your bill, see our guide to reading your electric bill.
Limitations
We did not open the PUC order itself. Approved amounts come from the PUC’s news release, and bill figures from Xcel, a TV report and a consumer group. The three bill-impact figures are not reconciled, and the interim refund date and amount are not confirmed.
Sources
- Minnesota PUC, “Minnesota PUC Reduces Xcel’s Electric Rate Request and Expands Customer Protections”
- Xcel Energy, 2025 Minnesota Electric Rate Case
- Minnesota Attorney General, “More than $40 million to be refunded to Xcel customers,” May 7, 2026
- KAAL, “Minnesota Public Utilities Commission approves amended Xcel Energy rate increase”
- Citizens Utility Board of Minnesota, “Xcel’s Electric Rate Increase”
Frequently asked questions
Did Minnesota electric rates change on October 1, 2026?
We found no approved change on that date for Xcel Energy. Xcel says the commission gave final approval on rates on July 31, 2026.
Will Xcel customers get a refund?
Xcel has said it expects to refund customers through a one-time bill credit with interest, because final approved rates are lower than the interim rates charged in 2025.
How much more will a typical home pay?
Xcel's rate case page says the average residential bill would increase 2.85%, or $2.78 a month, in 2025 and 2026. A TV report put it at about $5.59 a month, and the Citizens Utility Board of Minnesota at $10.27 a month. The three use different bases, and we could not reconcile them.
