Xcel Energy proposes 2-year electric rate freeze

Xcel Energy is proposing to keep electricity rates flat for two years as Minnesotans’ complaints about rising utility costs mount.

The state’s largest electric utility says under the plan, filed with the state Public Utilities Commission last week, it would postpone any requests to raise its electricity rates until at least November 2028.

In exchange, Xcel wants permission from state regulators to use federal tax credits from planned battery storage projects sooner than expected.

Xcel expects to receive those credits from the federal Inflation Reduction Act for five battery projects near the retiring Sherco coal plant in Becker, at its Blue Lake facility in Shakopee and in Nobles County.

Xcel says the plan would allow it to continue to invest almost $4.5 billion in Minnesota’s electric system over the next two years, and help offset rising costs.

“This request demonstrates Xcel Energy’s commitment to keeping rates stable today while continuing to deliver safe, reliable electric service and make investments that power tomorrow,” said Bria Shea, president of Xcel in Minnesota, North and South Dakota, in a news release.

The proposal comes as state regulators examine the cost of electricity at a time when many Minnesotans are struggling to pay their utility bills.

Xcel’s most recent rate increase, which state regulators approved in June, was 5.8 percent over two years. That proposal generated thousands of comments opposed to the increase.

Minnesota Attorney General Keith Ellison and consumer advocates asked the Public Utilities Commission to reconsider the decision, but it declined.

Instead, it launched a statewide investigation to examine the affordability of electric and natural gas service provided by regulated utilities, including Xcel.