Xcel Energy Announces $318 Million Refund for Minnesota Customers

SAINT CLOUD, Minn. — Xcel Energy announced Monday that it will refund Minnesota customers a total of $318 million, with residential customers receiving an average refund of $81 on their bills. This significant financial relief is partly due to a new federal tax credit aimed at nuclear energy production, which is expected to benefit consumers for the first time.

Xcel Energy stated that approximately $176 million of the refund is attributable to these tax credits. “This is the first time customers will see savings from the federal tax credit on nuclear energy generation, which the company advocated for in recent law,” Xcel said in a press release.

In addition to the tax credits, the refund will also include $94 million resulting from lower fuel costs and $48 million connected to a coal plant outage at Sherco in 2011. The company routinely adjusts its customers’ bills based on fuel cost fluctuations, providing refunds when costs are lower than anticipated.

The announcement comes as discussions in the Minnesota Legislature are ongoing regarding changes to state laws that could facilitate increased nuclear energy generation. Xcel Energy’s proposal is currently pending approval from the Minnesota Public Utilities Commission.

Ryan Long, president of Xcel Energy—Minnesota, North Dakota, and South Dakota, highlighted the company’s commitment to supporting economic growth in the state. “We’re committed to supporting our state’s economic growth, investing in our communities, delivering reliable and resilient electricity, all while keeping customers’ bills as low as possible,” he said in the release. “Tax credits on nuclear energy generation produce savings for our customers, providing another way for our carbon-free, always-available nuclear fleet to create value for our customers and state.”

If approved, Xcel expects to implement the refunds, which would reduce monthly bills through March 2026, contributing to financial savings for many households across Minnesota.