Sign-up for Xcel’s new electric space heating rate to see savings on your winter energy bills
It may be hot out now, but it’s never too early to enroll in a reduced space heating rate!
As of June 1, Xcel began offering a new, lower electric space heating rate to residential customers looking to save on their winter electric bills. If you use electricity as your primary heating source (for example: electric baseboards or air source heat pumps that heat at least 50% of your home), you can enroll in the reduced rate and save money on your electric bill. On this new rate, customers will pay 6.537¢/kWh during October through May each year—4.82 cents less per kilowatt than the current standard rate (11.364¢/kWh). The rate was approved by the Minnesota Public Utilities Commission in March along with Xcel’s new time-of-use rate, which will likely be available to customers sometime in 2026.
To get the discounted rate, customers should call Xcel at 800-895-4999 and request to be put on the residential electric space heating rate. This rate cannot be applied retroactively, so call today to ensure you are enrolled for the upcoming winter season. Customers who are already enrolled in Xcel’s previous electric space heating rate will be automatically switched to this lower rate.
Whether or not you are not an Xcel electric customer, there are other ways to save if you have electric space heating. Under Minnesota law, a household’s primary fuel for home heating is not subject to sales tax from November through April. This includes city, state, and transit taxes, and renters who pay their heating bills are also eligible. Gas utilities usually apply this exemption automatically for households that rely on natural gas for heating, but customers with electric heating equipment may need to request the exemption by calling their utility. Depending on where you live, you could save up to 10% on your monthly bill. If you have been mistakenly paying sales tax on your primary heating fuel, you can request a refund of up to 3.5 years of overpaid sales tax. Contact CUB today with any questions about requesting this refund.
If your home currently relies on inefficient electric resistance (baseboard) heating or non-electric heating systems like propane or natural gas, consider upgrading to an Air Source Heat Pump (ASHP). ASHPs are much more efficient than traditional electric resistance heating, and cleaner for your home and environment than gas or delivered fuel. There are rebates available to help lower upfront installation costs and save you money over the long term. Enrolling in utility offerings like Xcel’s new electric space heating rate can also help bring these costs down. Learn more about ASHPs and ways to save here.
If you have questions about your heating bills, or if you are looking for more ideas to reduce your energy usage or utility costs, reach out to CUB by emailing info@cubminnesota.org, calling us at 651-300-4701, or messaging us on Facebook.