Why Your Energy Bill Could See Big Changes in Minnesota

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One energy company here in Minnesota is proposing a big change in the way you're billed for using electricity.

The Land of 10,000 Lakes is set to make some big changes in the methods energy companies use to provide us with the electricity we need to power just about everything in our homes-- and even our cars.

Gov. Walz signed Senate File 4 into law in February of 2023 which mandated a carbon-free electricity standard in Minnesota that requires energy companies to use 100 percent clean energy by 2040.  As a release from the Governor noted, electrical utilities in Minnesota have already made significant strides toward carbon-free energy, with a decline in carbon emissions of 54 percent from 2005 to 2020.

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To help meet that mandate, Xcel Energy just proposed a massive change in the way Minnesotans are billed for their electricity. Xcel is an energy company based in Minneapolis that also provides electricity to seven other states, including parts of Wisconsin, Michigan, North and South Dakota, Colorado, Texas and New Mexico. Here in the Bold North, their coverage area runs 'from Afton to Zumbrota,' their site says.

According to this Energy News Network story, Xcel has proposed a new change:

In December, Xcel proposed moving away from the standard, flat hourly rate that almost all its customers currently pay and replacing it with a variable 'time-of-use' rate design that charges more for power during periods of high demand.

Specifically, the plan spells out that rates between 3 p.m. and 8 p.m. weekdays would be twice the rate customers currently pay, and seven times higher than the proposed overnight 'off-peak' rate between 12 am to 6 am, Energy News Network said.

That change would mean that many Minnesotans would need to shift running washing machines, dishwashers or charging their electric vehicles until just before they head to bed each night-- or pay a higher price to keep them running.

But the change doesn't necessarily mean your bill would go up, though. Energy News Network says that Xcel has already carried out a 2-year pilot program in Eden Prairie and part of Minneapolis, which saw a typical customer paying "17.8 percent more for electricity in summer but 10.6 percent less in winter, assuming no behavioral changes in consumption," Energy News Network noted.

Xcel would need approval from Minnesota's Public Utilities Commission before implementing the plan (which you can read more about HERE), but hopes to begin rolling it out sometime in 2025.

Speaking of paying bills, if you need a new job-- one that pays better-- to get a handle on all your bills, keep scrolling to check out the 30 Highest-Paying Jobs in Minnesota.

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