Xcel Energy ordered to refund $40 million to Minnesota electric customers for power plant outage in 2023

ST. PAUL (KVRR) — Xcel Energy has been ordered to refund Minnesota customers over $40 million.

The Public Utilities Commission sided with the attorney general’s office in its ruling.

Xcel will refund customers for all replacement power costs that the company incurred resulting from a power plant outage in 2023 for which Xcel was responsible.

Employees cut through buried cables that caused Prairie Island nuclear power plant to go offline for three months and Xcel passed costs of replacement power onto consumers.

The refund will likely come in the form of a bill credit in the coming months.

“Xcel passing on its costly mistake to consumers who were in no way at fault was unacceptable,” Attorney General Ellison said. “My office stands up for ratepayers who can’t afford their own lobbyists, so we pushed back and argued consumers should get a full refund. At a time when the cost of too many items we can’t do without is already way too high, I’m gratified the PUC sided with us and Xcel customers will see the relief they deserve.”

“Minnesotans should not have to pay the price for a utility company’s mistakes,” said Minnesota Department of Commerce Commissioner Grace Arnold. “We fought to make sure customers were treated fairly, and our staff’s careful review helped secure the refund Minnesotans deserve. This decision sends a clear message that utility companies must be accountable when their mistakes affect consumers.”