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Xcel Energy rate hike proposal: What you need to know

By FOX 9 Staff
Published  September 15, 2025 10:42am CDT
Minnesota
FOX 9

The Brief

    • Xcel Energy is holding a public hearing on its rate increase proposal on Monday, Sept. 15.
    • The requested 2025 increase is approximately 9.6% - or an extra $9.89 for the average residential customer's monthly electric bill. In 2026, the company is then requesting an additional 3.6%, or $3.90.
    • Xcel Energy currently serves nearly 1.5 million customers in Minnesota.

ST. PAUL, Minn. (FOX 9) - Minnesota’s largest energy supplier, Xcel Energy, has proposed new electricity rate increases of nearly 10% for customers that would begin in 2025 and 2026. The public can now weigh in on the proposals, with a public hearing scheduled on Sept. 15.

Xcel Energy electricity rate increases

By the numbers:

Xcel Energy is asking the Minnesota Public Utilities Commission to approve a two-year rate plan to increase rates, with the requested increase costing the average residential customer around $9.89 per monthly bill in 2025.

Xcel Energy's two-year proposal, which it submitted last year, calls for a $353.3 million increase or 9.6% for 2025. Then, for 2026, Xcel is asking for an additional $137.5 million, or 3.6%. That's about $3.90 extra per monthly bill for the average customer. 

Altogether, the total requested increase over two years is $490.7 million, or 13.2%.

Public hearings on Xcel Energy rate increase proposal

Xcel, CenterPoint proposing rate increases in MN

Xcel, CenterPoint proposing rate increases in MN

Xcel Energy and CenterPoint are proposing more rate increases in Minnesota, with Xcel requesting a 9.6% rate increase for 2025. FOX 9's Bill Keller has the story.

What you can do:

The Minnesota Public Utilities Commission is holding public meetings on the proposal on from 6:30-8:30 p.m. on Monday, Sept. 15, at the Washington County Heritage Center Education Center in Stillwater. 

If you can't attend the meeting, you can submit comments here. The public comment period closes on Dec. 30.

Evidentiary hearings will be held Dec. 17-19. 

The commission's order deadline is July 31, 2026. 

Increased investment

Dig deeper:

Xcel Energy says the proposed rate increases "reinforces our continued transition to more renewable energy generation."

It says the revenue generated would support investments in:

  • Enhanced reliability and resiliency of the system that serves customers.
  • Clean energy projects that lock in fuel savings for customers.
  • Our carbon-free nuclear plants that are key to meeting our clean energy goals.
  • Preparing its system for expected growth of electricity use.

The company claims that between 2017 and 2023, its wind farms saved Midwest customers more than $2 billion in avoided fuel costs and tax credits.

Xcel Energy currently serves nearly 1.5 million customers in Minnesota, and the company has previously said it intends to retire its remaining coal plants by 2030.

Minnesota