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Tariffs

The rules of the road

Under a nation-leading ratepayer protection law CUB helped pass in 2025, the Public Utilities Commission (PUC) is now tasked with establishing separate tariffs for very large customers, including data centers. These utility “large load tariffs” establish the terms and conditions under which electricity is provided to and paid for by data centers and other very large energy users. 

These tariffs are still being developed and are likely to differ from utility to utility, but most include things like: 

  • Minimum length of contracts to provide service to hyperscale data centers;  
  • Fees for lower-than-expected usage or leaving the system before the end of that contract; and 
  • Billing requirements, financial obligations, and other rate mechanisms to reduce risks to other ratepayers. 

Establishing these tariffs in a way that protects Minnesotans from the costs associated with data centers is crucial to CUB’s work. So far, Xcel Energy’s tariff has been approved, and the PUC is expected to make decisions on  tariff proposals from Minnesota Power, Otter Tail Power, and Dakota Electric Association by the end of this year.