Xcel Energy customers in certain Minnesota neighborhoods may soon see a reduction on their electric bills through a new Automatic Bill Credit (ABC) Pilot Program approved by the Minnesota Public Utilities Commission (PUC).
The ABC Program is a two-year pilot designed to help households facing higher-than-average energy costs. Instead of requiring customers to apply, Xcel will automatically provide a bill credit to eligible households.
The program focuses on lowering the “energy burden”—the percentage of household income spent on energy. In Minnesota, the average energy burden is about 2%. When it exceeds 6%, it is considered high. The program sets a target of about a 4% energy burden for participating neighborhoods.
Eligibility is based on where a customer lives, not on individual income applications.
Customers do not need to apply—the credit will appear automatically on their bill if their address is included.
The credit amount is calculated by comparing:
The difference becomes the annual credit, applied evenly to each household in the block. Individual usage may vary, but the credit is uniform within each area.
The two-year pilot will cost about $4.1 million annually. Funding will come from federal settlement payments that Xcel receives, which are normally refunded to all customers.
As a result, households outside the program may see slightly lower refunds—estimated at less than $1.50 per year.
Bradley Werner, LLC
Michael Bradley and Nancy Werner are nationally recognized and respected local government attorneys. Our firm is dedicated to representing local governments on broadband, cable, telecommunications, utilities, and right-of-way management issues. Our firm has decades of experience representing municipalities on communications and utilities matters.
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