Minnesota electric bills could rise this fall, and some customers say they're already tapped out

Minnesota residents could soon face increased electricity bills, adding to the financial strain many households are already navigating.

For families that rely on electricity for heating, cooling, and everyday appliances, even a relatively small increase can make it harder to keep up with other essentials such as food and clothing.

What's happening?

Xcel Energy customers in Minnesota may see their electric bills increase later this year after a verbal decision from the Minnesota Public Utilities Commission, according to ABC 6 News.

Nothing has formally changed yet. The commission is expected to issue a written order by the end of July, and the Citizens Utility Board said the updated rates could begin showing up this fall unless someone asks regulators to reconsider that order.

Annie Levenson-Falk, who serves as executive director of the Citizens Utility Board, told ABC 6 that Minnesota utilities are allowed to collect temporary rate increases while a request is still under review.

"So customers have already been paying, I think, a 5.2% interim rate increase," Levenson-Falk said.

The possible hike arrives amid a broader rise in electricity prices nationwide. ABC 6 cited the National Energy Assistance Directors Association, which said the average monthly electric bill climbed from about $121 to $156 in 2025.

Xcel Energy said it is "committed to providing safe, reliable service while leading the clean energy transition and keeping bills as low as possible." The utility also told ABC 6 that customers would receive a one-time bill credit with interest if the final approved rates end up below the temporary ones currently in place.

Why does it matter?

Higher utility bills can hit especially hard when household budgets are already stretched thin.

That strain is already being felt in Olmsted County, where resident Frank Westbrook said: "Everything in my house is run by electricity, and the bill is getting ridiculous."

That financial burden can also complicate progress toward a cleaner, more reliable energy future. While investments in renewable energy and grid upgrades may bring future benefits, they can be difficult for families to embrace if monthly bills become harder to afford right now.

Rising energy costs can also deepen existing inequities, particularly for lower-income households and older residents living on fixed incomes.

According to ABC 6, Xcel said the commission's decision supports spending on renewable energy, transmission, and other infrastructure the company says is needed to meet rising demand and improve reliability.

What's being done?

Among the projects Xcel highlighted are new transmission efforts in southeast Minnesota, including PowerOn Midwest and the Mankato-to-Mississippi River Transmission Line, which the company told ABC 6 are intended to reduce congestion and improve access to lower-cost electricity.

The company said in a statement to ABC 6, "The projects will help ensure our customers have access to the lowest-cost energy available on the grid."

For customers facing immediate financial stress, assistance programs and flexible payment plans may offer some relief. Xcel said it continues to provide both for those who need help.

Regulators and utilities will continue to face pressure to make sure investments in reliability and clean energy do not leave customers behind.

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