May 18, 2026
Minneapolis, MN — The Minnesota Public Utilities Commission (MPUC) has issued its final order in Xcel Energy’s very large energy customer tariff proceeding, charting a clear path to ensure data centers and other very large energy users pay their fair share for energy usage while supporting the state’s clean energy goals.
Key aspects of the order include establishing a dedicated rate class for data centers and other very large energy customers 100 MW or larger, which improves transparency and strengthens the allocation of costs across customer groups. The Commission also provided concrete direction on how costs for this new rate class should be treated in future rate cases, an important guardrail that will help ensure data centers don’t shift costs onto families and communities down the line.
The Commission directed Xcel Energy to file a separate clean energy and capacity tariff by December 1, 2026, providing important clarity on an additional mechanism for very large customers to obtain new clean supply, keeping electricity affordable and reliable throughout the state.
For ELPC and Vote Solar, another key outcome is the order’s direction to hold additional stakeholder discussions on the technical aspects of Xcel Energy’s interconnection process for very large customers.
The Commission declined to require that these interconnection discussions include exploration of a mechanism that allows data centers that bring their own clean energy and capacity solutions to the table to earn expedited interconnection access. This approach would create a direct incentive for data centers to deploy innovative, cost-saving technologies like virtual power plants, while helping Xcel plan a more efficient, flexible grid. ELPC and Vote Solar are hopeful these conversations may nonetheless happen within these stakeholder discussions or other forums.
Erica McConnell, ELPC Staff Attorney, said: “Today’s order lays out a clear, actionable legal framework that will help protect ratepayers, preserve Minnesota’s clean energy progress, and set up the right guardrails for future rate cases where data center costs will be put to the test. We look forward to continuing to work with the Commission to make sure this framework delivers for Minnesota families and communities.”
Will Kenworthy, Midwest Regulatory Director, Vote Solar, said: “Today’s order is about fairness, accountability, and shared prosperity— ensuring that as new industries arrive, communities see fair energy rates and a healthier clean energy future. While we are grateful the Commission is acknowledging the need for these guardrails to protect families in Minnesota, we believe there is untapped potential to harness customer flexibility and innovative solutions like community power networks to meet data centers’ energy load more efficiently. We remain committed to exploring those opportunities through stakeholder discussions and other forums to help encourage affordable solutions that bring us closer to a clean energy future.”