Xcel Energy Sending Refunds to Minnesota Customers

(KNSI) — Xcel Energy customers in Minnesota will start seeing small refunds on their bills this month, thanks to federal tax credits tied to the company’s nuclear power plants.

The average Minnesota residential customer will receive $2.46 per month for nine months, totaling $83.1 million returned to customers statewide. Minnesota customers will also see a separate Fuel Clause Adjustment refund of $1.11 per month over 12 months. That is a credit issued when actual fuel costs come in lower than projected.

The nuclear credits stem from tax incentives created under a 2022 federal law and extended in 2025, designed to support carbon-free, around-the-clock power generation.

According to a press release, Xcel’s two Minnesota nuclear plants in Monticello and Prairie Island near Red Wing supplied 27% of the electricity used across the company’s five-state Upper Midwest service area in 2025. Xcel has already received federal approval to extend the operating life of the Monticello plant and plans to seek a similar extension for Prairie Island.

Officials with the utility say the latest round of credits brings the total nuclear-related savings to Xcel customers to more than $330 million over the first two years of the program.

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