Minnesota Electricity Rates
Rate data for Minnesota is being refreshed. The regulator and market facts below are current; figures return with the next data load.
Can you choose your electricity supplier in Minnesota?
No. Minnesota has not opened its residential electricity market to competition, so the utility that delivers your power also sells it. Its prices are set in rate cases before the Minnesota Public Utilities Commission, and the rate you pay depends on which utility serves your address, your rate schedule, and the season.
Grid operator: MISO. Wholesale power costs flow through to retail bills on the regulator's schedule rather than month to month, which is why regulated-state rates move more slowly than the market-based states listed below.
Want to shop for a supplier? Retail choice is open on this site in Massachusetts, New Jersey, Ohio, Pennsylvania, Texas, Washington DC.
Minnesota has no retail supplier choice (each utility holds the exclusive right to serve its assigned area, so your address picks your utility), yet it runs the nation's first community solar garden program so a renter can subscribe to solar without panels, and from October 1 to April 30 the Cold Weather Rule bars heat-affecting shutoffs for anyone who keeps a payment plan, a protection that binds cooperatives and municipal utilities too.
Who will deliver your power in Minnesota
The utility is fixed by your address. These are the largest in the state, with what each says it needs from a new customer.
Xcel Energy (Northern States Power Company - Minnesota)investor-owned
Investor-owned utility headquartered in Minneapolis and regulated by the Minnesota Public Utilities Commission; the federal LIHEAP Clearinghouse calls it the state's largest utility and the only Minnesota electric company serving more than 200,000 residential customers.
Xcel's Minnesota mover kit (2020 edition) gives Residential Customer Service as 800.895.4999 and says a deposit may be requested only from a returning customer with an undisputed unpaid bill, a customer previously disconnected for an acceptable reason, a customer whose credit history shows payment cannot be assured, or a customer disconnected or liable for disconnection for nonpayment; any deposit is capped at an actual or estimated two-month average bill, is explained in writing, can be replaced by a written guarantee, and is refunded after 12 consecutive months of prompt payment. The kit also notes bills arrive about every 30 days, a 1.5% monthly late charge applies to unpaid balances of $10 or more, and disconnection notices precede shutoff by at least five days (excluding Sundays and holidays).
Start service with Xcel Energy →Sources: mn.my.xcelenergy.com, xcelenergy.com, liheapch.acf.gov, xcelenergy.com
Minnesota Power (ALLETE)investor-owned
A division of ALLETE serving a 26,000-square-mile electric service area in northeastern Minnesota (Duluth-based), with retail service to 150,000 customers and wholesale service to 14 municipalities. About 150,000 retail customers (per Minnesota Power).
Minnesota Power's start-service page says to have a Social Security number or driver's license number (residential), the service address, the date you want service to start and a valid email address, because you register for MyAccount as part of signing up. Its printed customer guide (a February 2018 edition, so fees may have changed) says to call 1-800-228-4966 to sign up and that the company will make sure service is on when you move in; the same guide says a deposit equal to an estimated two months' bill may be required before reconnecting after a disconnection, and the reconnection charge is $20 on weekdays 8 a.m. to 4:30 p.m. or $100 at other times.
Start service with Minnesota Power →Sources: mnpower.com, mnpower.com, mnpower.com, mnpower.com
Otter Tail Power Companyinvestor-owned
Fergus Falls-based investor-owned utility whose 70,000-square-mile territory covers western Minnesota, eastern North Dakota and northeastern South Dakota (Minnesota towns are served from Bemidji, Crookston, Fergus Falls and other service centers). About 134,200 customers in 422 communities across three states (per Otter Tail Power).
Otter Tail's Manage Service page says new customers and previous customers with a good credit history do not pay a security deposit; good credit means fewer than three disconnection notices and no disconnections for unpaid bills in the last 12 months, and any previous balance must be paid first. When a deposit is required it is based on about two months of typical bills and earns interest (4.40% in Minnesota); service starts from the Start service link on the Manage Service page, and Customer Service is 800-257-4044 or 218-739-8877, Monday-Friday 8 a.m. to 5 p.m.
Start service with Otter Tail Power Company →Connexus Energycooperative
Member-owned distribution cooperative based in Ramsey that calls itself Minnesota's largest electric distribution cooperative, serving 150,000 members across eight counties. About 150,000 members (per Connexus Energy).
Connexus directs movers into an existing home to its online existing-home application; Member Services is 763.323.2650, 7:30 a.m. to 5:30 p.m. Monday-Friday. If you do not already have a Connexus account the co-op requires your Social Security number for an identity and soft credit check (stated in its temporary-reconnection section), and a temporary reconnection for inspection takes two business days and carries a $25 fee. Its residential rate is a $16.50 monthly basic service charge plus $0.1390/kWh June-September and $0.1290/kWh October-May, adjusted by a power cost adjustment.
Start service with Connexus Energy →Sources: connexusenergy.com, connexusenergy.com, connexusenergy.com
Dakota Electric Associationcooperative
Farmington-based, PUC-regulated cooperative delivering electricity in parts of Dakota, Goodhue, Scott and Rice counties; it buys wholesale power from Great River Energy and is the second-largest electric cooperative in Minnesota. About 117,000+ members (per Dakota Electric).
Dakota Electric starts or transfers service by phone: call Member Services at 651-463-6212 (7 a.m. to 5:30 p.m. Monday-Friday) and download the new member packet. The packet says no deposit is required based on income, home ownership, employment or similar criteria; a deposit equal to an average of two months' bills is collected only after a disconnection for nonpayment (or on return with an unpaid balance), is refunded after 12 consecutive months of good payment under Minn. R. 7820.4500, and a satisfactory guarantor contract can be accepted instead.
Start service with Dakota Electric Association →Sources: dakotaelectric.com, dakotaelectric.com, dakotaelectric.com, greatriverenergy.com
Rochester Public Utilitiesmunicipal
Rochester's municipal utility, with a service center at 4000 East River Rd NE; included here as an example of a Minnesota municipal electric utility (RPU's deposit rules come from its own Policy 16: Billing, Credit, and Collections).
RPU asks new customers to call 507.280.1500 or 800.778.3421, visit the service center, or register on RPU Connect, to allow up to three business days for processing, and to give at least one business day's notice before the start date. You must supply a Social Security number (or bring a passport or other government ID in person), a copy of your lease may be requested, and a deposit based on credit history may be required and is due before the start date; RPU's deposit equals the two highest consecutive months' bills in the past 12 months, and an unacceptable credit history means more than two delinquent notices or returned checks or any disconnection in the last 12 months.
Start service with Rochester Public Utilities →Source: rpu.org
Deposits, ID, and supplier choice in Minnesota
Deposits. Under Minn. R. 7820.4300 a utility may not require a cash deposit or other guarantee for new service (service to someone who has not been a customer in the past six months) unless the applicant has an undisputed unpaid prior account, was previously disconnected for a permissible reason, or has a credit history showing payment cannot be assured under objective criteria filed in the utility's tariff; 7820.4200 bars deposits from customers with established good credit. Under 7820.4500 a deposit cannot exceed an estimated two months' gross bill, deposits over $20 earn interest, the deposit is refunded after 12 consecutive months of prompt payment, and at closing it is credited to the final bill with any balance returned within 45 days. (revisor.mn.gov)
Choosing a supplier. No residential supplier choice exists in Minnesota: Minn. Stat. 216B.40 gives each electric utility the exclusive right to provide retail electric service in its assigned service area, and EIA's 2024 state profile records all 64.6 million MWh of retail sales as full-service-provider sales with zero energy-only (competitive supplier) sales (https://www.revisor.mn.gov/statutes/cite/216B.40).
Your utility is fixed by address: investor-owned Xcel Energy, Minnesota Power and Otter Tail Power are rate-regulated by the Minnesota Public Utilities Commission (Consumer Affairs 651-296-0406 or 1-800-657-3782), while other areas are served by member-owned cooperatives (Great River Energy alone supplies 26 distribution co-ops serving 1.7 million people) or municipal utilities. EIA's 2024 profile puts Minnesota's average retail electricity price at 12.35 cents/kWh across all sectors (20th highest) with natural gas as the primary generation source, and the statewide Cold Weather Rule (Minn. Stat. 216B.096) protects residential customers who keep a payment plan from heat-affecting shutoffs from October 1 through April 30.
Sources: revisor.mn.gov, revisor.mn.gov, revisor.mn.gov, revisor.mn.gov, revisor.mn.gov, eia.gov, greatriverenergy.com, mn.gov
Help paying an electric bill in Minnesota
Energy Assistance Program (EAP), Minnesota's LIHEAP
Minnesota Department of Commerce, through local service providers (Energy Information Center 800-657-3710)
Renters and homeowners qualify on income and household size (Commerce's example: a family of four earning up to $73,969 a year), with benefits of up to $1,400 (initial benefits average $500) paid directly to the utility or fuel vendor, plus extra help for emergencies; the deadline for the winter of 2026-2027 is May 31, 2027, and applications are taken online or by mail. The federal LIHEAP Clearinghouse lists Minnesota's income ceiling as 50% of state median income, heating benefits of $200 to $1,400 and a $600 crisis benefit, and program dates of October 1 to May 31 for heating and October 1 to July 1 for crisis.
Sources: mn.gov, liheapch.acf.gov, acf.gov
Weatherization Assistance Program (WAP)
Minnesota Department of Commerce, delivered by local weatherization service providers (800-657-3710)
Income-eligible homeowners and renters get free home energy upgrades (insulation, air sealing, furnace or water-heater repair or replacement) after a free assessment; eligibility is the greater of 200% of federal poverty guidelines or the LIHEAP limit of 50% of state median income, households that received TANF or SSI in the last 12 months qualify, and priority goes to elderly or disabled members, children under 19 and high energy users. Energy Assistance and Weatherization share one joint application, and Commerce says weatherization can cut annual energy costs by up to 30 percent.
Sources: mn.gov, liheapch.acf.gov
Xcel Energy low-income affordability program (Minn. Stat. 216B.16, subd. 14)
Xcel Energy, under Minn. Stat. 216B.16, subd. 14, which applies only to public utilities with more than 200,000 residential electric customers
Minn. Stat. 216B.16, subd. 14 requires a public utility with more than 200,000 residential electric customers to fund a low-income affordability program (base funding $8,000,000 a year, rising with each approved residential rate increase) that targets participating customers with the lowest incomes and highest energy costs, and must include a $15 discount in each billing period for low-income customers who are 62 or older or disabled. The LIHEAP Clearinghouse profile still describes the original 1994 version of this provision (a 50 percent discount on the first 300 kWh each month, applying only to Xcel Energy as the state's largest utility), which the current statute no longer contains; the same profile lists Xcel's Power On electric discount, run by the Energy CENTS Coalition (651-774-9010 or 888-774-9070), which you can only apply for after receiving an Energy Assistance award letter. Xcel's 2020 mover kit directs customers who need payment help to xcelenergy.com/PaymentAssistance or 800.895.4999.
Sources: revisor.mn.gov, liheapch.acf.gov, xcelenergy.com
Minnesota Power CARE discount, Energy Partners and HeatShare
Minnesota Power; CARE was administered by the Arrowhead Economic Opportunity Agency (AEOA) on its behalf per the 2018 customer guide, HeatShare by the Salvation Army
Minnesota Power's printed customer guide (a February 2018 edition, so the cap may have changed) says CARE gives income-qualified households a discounted rate, a budget payment plan and help with overdue balances, opens each year on October 1 and is limited to 5,000 customers at a time on a first-come basis; its Cold Weather Rule page points customers to the Energy Partners program, Salvation Army HeatShare, United Way 211 and the state Energy Assistance hotline 800-657-3710.
Sources: mnpower.com, mnpower.com
Programs that change what you pay
- Rooftop solar (net metering)available
- Minn. Stat. 216B.164 lets a customer with a qualifying facility under 40 kW elect to be paid at the average retail utility energy rate, allows net metering up to 1,000 kW on public (investor-owned) utilities (kWh credits can be banked for later bills), limits co-op and municipal customers to under-40-kW net metering with credits that cancel at year end, and bars standby charges on systems of 100 kW or less; the PUC says customers choose payment by check or bill credit through a uniform statewide contract.
Sources: revisor.mn.gov, mn.gov
- Community solaravailable
- Minnesota launched the first community solar garden program in the U.S. in 2013 (renamed the Melissa Hortman Community Solar Garden Program in 2026); you can only subscribe to a garden in your own utility's territory, and in Xcel territory gardens that began development in 2024 or later run under the Department of Commerce's Low- and Moderate-Income Accessible CSG Program (Minn. Stat. 216B.1641: 100 MW a year in 2024-2026, at least 30% of each garden subscribed by LMI households whose cost may not exceed 90% of their bill credit), while older gardens stay in Xcel's Solar*Rewards Community program and gardens outside Xcel territory are owned by the local utility. Under the original program rules (216B.1641, subd. 1, for gardens approved before 2024) a subscription had to be at least 200 watts and, with any on-site generation, could not exceed 120% of the subscriber's average annual consumption, a cap the PUC says still counts against any rooftop system you add; Commerce warns subscriptions can be long-term contracts and takes questions at 651-539-1886.
Sources: mn.gov, revisor.mn.gov
Questions people ask before moving to Minnesota
How far ahead should I set up electricity before moving to Minnesota?
Rochester Public Utilities asks for at least one business day's notice and up to three business days to process a new account, and Minnesota Power's printed guide (2018 edition) says to call at least two working days before a move so it can prepare the final bill and line up service at the new address. Have a Social Security number or driver's license number, the service address, your start date and an email address ready, since Minnesota Power requires them, RPU verifies your identity during the phone application, and Connexus runs an identity and soft credit check on the SSN.
Sources: rpu.org, mnpower.com, mnpower.com, connexusenergy.com
Will I have to pay a deposit to start electric service in Minnesota?
Usually not: state rule 7820.4300 says a utility may not demand a deposit for new service unless you left an undisputed unpaid bill, were disconnected for a permissible reason, or your credit history shows payment cannot be assured, and any deposit is capped at about two months' bills, earns interest when it exceeds $20 and is refunded after 12 months of prompt payment. Otter Tail Power says new customers with good credit pay no deposit, Dakota Electric only collects one after a nonpayment disconnection, and Rochester Public Utilities may require one based on credit history, due before your start date.
Sources: revisor.mn.gov, revisor.mn.gov, otpco.com, dakotaelectric.com, rpu.org
Can I shop for a cheaper electricity supplier in Minnesota?
No. Minnesota law gives each electric utility the exclusive right to provide retail electric service in its assigned service area, so your address decides whether you are served by Xcel Energy, Minnesota Power, Otter Tail Power, a cooperative or a municipal utility, and EIA's 2024 profile shows zero competitive-supplier sales in the state.
Sources: revisor.mn.gov, eia.gov
What is Minnesota's Cold Weather Rule?
From October 1 through April 30 every natural gas and electric utility, including municipals and cooperatives, must offer a payment plan reasonable for your household and may not shut off service that affects your primary heat while you keep that plan; renters qualify if the account is in their name, and the rule does not cover delivered fuels like propane or oil. Households at or below 50% of state median income cannot be asked to pay more than 10% of household income toward heating bills, and disputes can be appealed to the PUC within 10 days with service staying on during the appeal.
Sources: mn.gov, revisor.mn.gov, mnpower.com
Where can I get help paying my electric bill in Minnesota?
Apply to the state Energy Assistance Program through the Department of Commerce (800-657-3710) by May 31, 2027 for the 2026-2027 winter; renters and homeowners qualify on income (a family of four can earn up to $73,969) and benefits of up to $1,400 go straight to your utility. The same joint application covers the Weatherization Assistance Program, which provides free insulation, air sealing and heating-system repairs to income-eligible homes.
Researched 2026-10-16 from utility, regulator, and agency pages; every statement links to where it was read. Rules change: confirm deposits and program dates with the utility or agency before you rely on them.
Every state ranked by residential rate, updated weekly: Electricity Rates by State →