Regulatory Update: Xcel Energy’s innovative pilot project providing equitable assistance gets green light

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Outside view of Xcel Energy's Headquarters

On October 10, 2024, the Minnesota Public Utilities Commission approved Xcel Energy’s proposed pilot project that will provide direct, automatic enrollment in Xcel’s energy affordability programs to high energy-burdened Minnesotans across the state — providing help for an estimated 22,000 households in 71 communities.

“Fresh Energy applauds the Minnesota Public Utilities Commission for approving this first-of-its-kind program in the nation,” said Shubha Harris, at Fresh Energy. “With this innovative initiative, Xcel Energy is making major strides in ensuring under resourced households that are eligible for Xcel’s energy affordability programs qualify automatically without an arduous application process. This is a major win for energy equity in Minnesota.”

More than twenty community-based organizations, many of whom have never participated in a public utility proceeding, were involved in developing this pilot concept and signed their support on the petition to the Minnesota Public Utilities Commission. Fresh Energy signed on, along with Sabathani Community Center, UNIDOS MN, Community Stabilization Project, Energy CENTS Coalition, and more.

Today, only 20% of those eligible for the Low Income Home Energy Assistance Program (LIHEAP) receive assistance, which means 80% of under-resourced households that are eligible for Xcel’s energy affordability programs are not enrolled. This pilot program represents a significant step forward in addressing long-standing disparities in access to energy assistance, particularly for marginalized communities.

“Fresh Energy believes this pilot can serve as a model for how we can more effectively deliver assistance to those who need it most,” said Harris.