Xcel Energy's Minnesota utility proposes two-year base rate freeze instead of new rate case

Xcel Energy wants to hold base electric rates flat for its Minnesota customers through 2028, swapping a planned rate increase request for a freeze it hopes regulators will sign off on early next year.

The company's Northern States Power Company subsidiary, known as NSP-Minnesota, filed an Electric Customer Rate Stability Plan with the Minnesota Public Utilities Commission on Thursday, Oct. 9, Xcel disclosed in a regulatory filing the same day. The company described the plan as "an alternative to the planned upcoming rate case filing."

Under the proposal, customer base rates would be frozen for calendar years 2027 and 2028.

To make the math work, NSP-Minnesota would accelerate recognition of federal Investment Tax Credit benefits tied to five battery storage projects over two years. Xcel said that acceleration would act as an offset to the added revenue requirement from what it called "ongoing necessary capital improvements."

Other true-up and tracker mechanisms approved in NSP-Minnesota's most recent electric rate case would continue.

The utility has asked the commission for a decision by January 2027. If the plan is not approved, NSP-Minnesota expects to file an electric rate case in early 2027, according to the filing.

By the numbers

• Base rate freeze covers 2 calendar years: 2027 and 2028
• 5 battery storage projects supply the accelerated tax credits
• Regulatory decision requested by January 2027
• Fallback: electric rate case filing in early 2027

Sources

1. Xcel Energy Inc., Form 8-K, filed Oct. 9, 2026 (accession 0000072903-26-000175)

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