On May 15, 2026, the Minnesota Public Utilities Commission approved Xcel Energy’s proposed large load tariff, a constructive step for consumer protections as utilities grapple with growing demand for data centers in Minnesota.
Key elements of the approval include a 15-year minimum contract length between large facilities and the utility, as well as an 80% demand charge fee if a large facility exits the contract early. Xcel Energy will also be required to create a separate large customer rate class for data centers to accurately assign costs incurred by these customers in future rate cases.
“We are pleased the Commission has established a strong framework for what Xcel Energy and data center customers must adhere to in order to do business in Minnesota,” said Will Mulhern, director, electricity at Fresh Energy. “Fresh Energy looks forward to continuing to advocate for an affordable and equitable clean energy transition in subsequent filings at the Commission.”
Both Xcel Energy and Minnesota Power have filed large load tariff proposals with the Commission; Otter Tail Power will file a similar proposal with the Commission in the future. Fresh Energy will next engage in Xcel Energy’s Electric Service Agreements with proposed data centers at the Commission, which is expected to occur next month.