Minnesota Power Rate Increase 2027: $24 a Month Requested

Minnesota Power is asking Minnesota regulators for a $134 million revenue increase net of riders, or 17.8%, which it says would raise the average residential bill by about $24 a month if fully approved. The company filed with the Minnesota Public Utilities Commission (PUC) on Nov. 2, 2026. It also asked for a 15% net interim increase starting in January 2027, about $15 a month for an average home. This is a request, not a decision.

Minnesota Power serves northeastern Minnesota and is a separate utility from Xcel Energy. The 17.8% applies to the company’s total revenue; the change for any one customer class can differ. For Xcel’s 2025-2026 rate decision, interim refunds and how net metering works in the state, see our Minnesota electricity rates and solar overview.

What Minnesota Power Is Asking For

According to Minnesota Power’s Nov. 2 news release, the company asked the PUC “to approve a $134 million increase in revenue net of riders, or a 17.8% increase.”

Source: Minnesota Power news releases of Nov. 2 and Oct. 9, 2026. Bill figures are the company’s averages for residential customers. The release does not say what monthly usage (kWh) the $24 figure assumes.

At least one news report, from FOX 21, cited a $138 million figure. Minnesota Power’s own release says $134 million net of riders, and we use that.

The release does not give a docket number, and we could not open the filing letter on the state’s eDockets system. Readers can search the PUC’s eDockets for Minnesota Power’s 2026 general rate case.

Interim Rates and Refunds

Minnesota Power asked to collect interim rates while the case is reviewed. It requested “a net interim rate increase beginning in January 2027 of 15%, or about $15 per month for residential customers,” pending final rates.

If the final rates the PUC approves are lower than interim rates, the company says it “will refund the difference to customers with interest.” Xcel Energy customers are going through the same kind of refund now, as our Minnesota overview explains.

How the Bill Credits Change 2027

On Oct. 9, Minnesota Power announced about $122 million in bill credits. About $72 million comes from selling company land around several of its hydroelectric reservoirs, and $50 million is a contribution from the company’s two owners. The release says the PUC approved the credit plan on Oct. 8.

For an average residential customer, the company says:

• Land-sale credits average about $55 a month on January and February 2027 bills.
• Owner-funded credits start with about $15 in March 2027, then four more $15 credits each January through 2031.

The company says the credits “will offset the interim rate increase by about 70 percent in 2027.” Our check of that math, for an average home:

• Interim increase for 2027: $15 × 12 months = $180
• Credits in 2027: ($55 × 2) + $15 = $125
• $125 ÷ $180 = 69%, close to the company’s “about 70 percent”
• What is left: $180 − $125 = about $55 for the year, or roughly $4.60 a month on average

Assumptions: the company’s average figures; interim rates in effect all 12 months of 2027 at the requested level. This is our estimate. Actual interim rates depend on the PUC, and your amounts depend on your usage. The credits land in specific months, so January and February bills could be lower than usual, while later 2027 bills carry the interim increase without a credit.

The credits do not offset the full request. If the PUC approved the whole $24 a month, an average home would pay about $288 more a year ($24 × 12) before credits.

Why Minnesota Power Says It Needs More

The company cites ongoing operation and maintenance of its generation, transmission and distribution systems, workforce costs, investment in a more resilient grid and renewable energy, and inflation in materials, equipment and insurance.

It also points to sales. “With two-thirds of Minnesota Power’s electric sales going to large industrial customers,” the release says, the idling of the Minorca Mine and partial idling of the Hibbing Taconite mine reduce the company’s energy sales but “do not change the cost of operating, maintaining and repairing the electric grid.”

The company says its “O&M costs from 2017 to 2027 have increased below the rate of inflation,” and that its last rate increase request was in 2023.

On data centers, the release says the request “is not related to the recent approval of the proposed data center in Hermantown.”

What Happens Next

1. Interim rates. The PUC decides on the interim request. The company asked for interim rates to start in January 2027.
2. Review. State agencies and other parties review the request, and the PUC is expected to hold public meetings and take comments. Minnesota Power calls it “a regulatory process likely to take a year or longer.”
3. Decision. The PUC can approve the full amount, less, or a settlement. Final rates then replace interim rates, with refunds if they are lower.

For how each stage works, see how electric rate cases work. The PUC is also running a separate statewide investigation into utility affordability.

What It Means if You Have or Want Solar

Under net metering, each kWh your panels produce offsets a kWh you would otherwise buy, so higher per-kWh charges make each solar kWh worth more. Fixed monthly customer charges cannot be offset by solar. Minnesota Power’s release does not say how the increase would be split between per-kWh charges and fixed charges, so the effect on solar savings is not yet clear. Our guide to fixed charges and solar savings explains why that split matters.

If you are getting solar quotes in Minnesota Power territory, ask the installer which rate the savings estimate uses. A quote built on the requested rates assumes an increase that has not been approved.

Sources and verification

Checked Nov. 5, 2026. All rate figures are Minnesota Power’s requested amounts, not approved rates.