Minnesota approves Xcel large-load tariff for data centers

The Minnesota Public Utilities Commission approved Xcel Energy’s proposed large load tariff.

• Main action: The Commission approved Xcel Energy’s large load tariff which requires a 15-year minimum contract between large facilities and the utility, imposes an 80% demand charge fee if a large facility exits the contract early, and directs Xcel to create a separate large customer rate class for data centers to assign costs in future rate cases. Both Xcel Energy and Minnesota Power have filed large load tariff proposals; Otter Tail Power intends to file a similar proposal in the future. Fresh Energy will engage in Xcel Energy’s Electric Service Agreement filings for proposed data centers, which are expected next month.

• Background/details: The decision is framed as a measure for consumer protections as utilities address growing demand from data centers in Minnesota. Fresh Energy (Will Mulhern, director, electricity) commented in support and said it will continue advocacy for an affordable and equitable clean energy transition in subsequent Commission filings. The article reports an approval action by the Commission rather than a speculative outcome.