Xcel Energy Ordered to Refund $40.6 Million to Customers due to Outage

The Minnesota Public Utilities Commission (PUC) has ordered Xcel Energy to refund $40.6 million—plus interest—to ratepayers. The decision follows a 103-day outage at the Prairie Island Nuclear Generating Plant in 2023, which regulators determined was caused by the utility’s imprudent actions.

The outage began in October 2023 when contractors mistakenly severed direct current (DC) control cables at the facility near Red Wing. The error forced both nuclear units offline. Xcel Energy then had to buy replacement power on the open market to meet customer demand. Those higher costs were automatically passed on to customers through the utility’s fuel clause adjustment, showing up as elevated charges on monthly bills.

After reviewing the facts, which included an Administrative Law Judge’s report, the PUC ruled that Xcel Energy bears full responsibility. The Commission rejected the company’s proposals to significantly reduce the refund amount, making it clear that customers should not pay for the utility’s mistakes.

“This decision reinforces a simple principle. When a utility’s imprudent action causes millions of dollars in costs, customers should not pay the price. Today’s action ensures accountability and strengthens protections for future cases.”

– Commissioner Joseph Sullivan.

How the Refund Will Reach Customers

The PUC requires Xcel Energy to file a compliance plan within 30 days. That filing must include:

• A detailed breakdown of the refund amount by customer class (residential, commercial, industrial, and others)
• The full calculation of interest owed
• The expected date customers will receive their refunds

Once Xcel submits the filing and the Commission reviews it, the refund, including interest, will appear as a credit on customers’ electric bills. No action is needed from customers; the credit will be applied automatically.

Why This Ruling Matters

Prairie Island is a cornerstone of Minnesota’s clean-energy mix, delivering reliable, carbon-free baseload power. Outages like this one disrupt service and drive up costs, but strong regulatory oversight ensures that when utilities fall short on prudence or contractor oversight, ratepayers are made whole.

The full case record is publicly available in PUC Docket 22-179.

This decision is welcome news for Minnesota families and businesses who absorbed the higher costs during the outage. It also sends a clear signal across the utility industry: accountability matters, and customers come first when preventable errors occur.

Keep an eye on your next Xcel Energy bill for details on the credit timing and amount. If you have questions about the refund, contact Xcel Energy customer service or visit the Minnesota PUC website for updates.

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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. We have decades of experience representing municipalities on communications and utilities matters.