Xcel Energy is requesting to increase rates for electric service for the fourth and fifth years in a row. Xcel’s ask would add $474 million per year to customers’ tab, an increase of 12.72%.
That translates to an average increase on customers' bills of more than $13 a month, or $165 a year.
Meanwhile, many Xcel customers are having difficulty affording their energy bills. We can see it in Xcel’s shutoff numbers: In 2024 alone, the company disconnected service to more than 52,000 households. That’s more than triple the number of households shut off in 2019, and far more than any year in the past decade, at least. Xcel is on track to match or exceed that number in 2025. Clearly, any rate increase will be difficult for many Xcel customers.
As the cost of living rises dramatically, and federal actions are expected to send energy bills even higher, Xcel’s requested increase will be difficult for many households.
Any increase must be approved by the Minnesota Public Utilities Commission. If you're concerned about Xcel's request to increase rates for electric service, submit a comment in Docket 24-320 today.
Xcel's Rate Increase by the Numbers
The Rate Case Process
When an investor-owned utility, like Xcel, wants to increase rates, it needs approval from its regulator: the Minnesota Public Utilities Commission (PUC). Here’s an outline of the procedure in this case. The PUC also has a helpful explainer on their website.
November 1, 2024: Xcel filed a formal request to increase rates with the PUC, initiating a “rate case” proceeding. This proceeding is overseen by an administrative law judge. Parties like CUB formally intervene, giving them the opportunity to submit expert witness testimony and legal briefs. Members of the public can also submit comments expressing their opinions.
September 15-25, 2025: Public hearings held, an opportunity for members of the public to voice their opinion on the requested increase.
December 30, 2025: Deadline to submit written public comments.
February 25, 2026: Intervening parties file their final legal briefs in the case.
April 30, 2026: Administrative law judge issues his findings and recommendation to the PUC.
June-July 2026: PUC holds a hearing to make a final determination on the requested increase. The PUC will issue an order by July 31, 2026.
Public Hearing Schedule
| Date | Time | Location |
|---|---|---|
| Monday, September 22, 2025 | 6:30 p.m. | Buckham West Senior Center Anderson Room 19 Division Street W Faribault, MN 55021 |
| Tuesday, September 23, 2025 | 1:30 p.m. | Virtual WebEx Event Number: 2498 473 7658 Event Password, if needed: Xcel@2025 |
| Tuesday, September 23, 2025 | 6:30 p.m. | Edina Library 5280 Grandview Square Edina, MN 55436 |
| Wednesday, September 24, 2025 | 1:30 p.m. | V-3 Center Wet Classroom 701 Plymouth Avenue N Minneapolis, MN 55411 |
| Thursday, September 25, 2025 | 1:30 p.m. | Prairie Island Community Center Old Tribal Chambers 1158 Island Lake Boulevard Welch, MN 55089 |
Why does Xcel want to increase electric rates?
Infrastructure and Inflation
Utility infrastructure requires maintenance. Aging power generation plants need to be upgraded or replaced, and additional generation is needed to meet increasing demand, particularly from data centers. Xcel is making investments to meet Minnesota’s 100% carbon-free standard. Fortunately, renewable energy is often the most cost-effective option—but it still comes with a cost, which must be paid for by ratepayers. Additionally, inflation has increased the cost of doing business.
Return on Equity
Nearly a third of Xcel’s total request (approximately $144 million annually) is due to a requested increase in the company's authorized return. Investor-owned utilities are owned by shareholders. In Minnesota, and many other states, utilities are granted a monopoly service territory. This makes sense to take advantage of economies of scale, and because no one wants multiple power lines running down their street. Monopoly utilities are required to provide reliable service in compliance with state law. In exchange, they are allowed to earn a fair return for their shareholders. The PUC is tasked with making sure that return is reasonable and balanced with the public’s need for affordable electricity.
What is CUB asking for?
More details coming soon.
What's going on with Xcel?
Alongside the ongoing rate case, Xcel has some other issues going on. Read more about CUB's advocacy for Xcel ratepayers.
More about Xcel's requested rate increase
Minnesotans are struggling with utility costs while executives are paid millions
Over the course of 2024, regulated utilities disconnected over 91,000 Minnesota households from utility service. Utility executives, in contrast, were paid millions. In 2024, Xcel's CEO was paid $12.9 million in 2024, or 99 times more than the company’s median employee.
Xcel seeks rate increase despite growing profits
On February 6, 2025, Xcel released its annual earnings report for 2024. In it, the company reported $1.94 billion in annual profits—or $3.44 in earnings per share of outstanding Xcel stock— for 2024. A review of similar reports for prior years reveals that Xcel’s profits have climbed in at least each of the past five years.
CUB fights Xcel’s request to raise electric rates… again
CUB's first article following Xcel's initial request to increase rates for electricity service.
