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Get filing alertsXcel Energy settles Minnesota gas rate case for $38M, 39% below original request
Filed May 11, 2026 · Period ending May 8, 2026 · ~1 min read
Key Changes
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NSP-Minnesota settled its Minnesota natural gas rate case for a $38 million annual revenue increase, significantly below the $62 million (8.2%) originally requested in October 2025. Settlement represents approximately 61% of the requested amount.
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Approved interim rates of $51 million (effective January 1, 2026) exceed the $38 million settlement amount, likely requiring customer refunds or rate adjustments once the final order is issued in November 2026.
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Settlement includes weighted average cost of capital of 7.21%, up modestly from previously authorized 7.16%. Settlement is non-unanimous, meaning not all parties agreed to terms.
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Final MPUC decision expected November 2026 following evidentiary hearings (May 11-12) and Administrative Law Judge report (September 1). Settlement still requires regulatory approval.
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Summary
Xcel Energy's Minnesota subsidiary reached a settlement in its natural gas rate case that falls well short of its original request. The company will receive a $38 million annual revenue increase instead of the $62 million it sought, representing a 39% reduction from the ask. The settlement also includes a modest increase in the weighted average cost of capital to 7.21% from 7.16%.
Retail investors should note that the company has been collecting interim rates of $51 million since January 2026—$13 million more than the settlement amount. This means customers will likely receive refunds once the Minnesota Public Utilities Commission issues its final order, expected in November 2026.
The settlement is non-unanimous, indicating some parties opposed the terms, though this is not uncommon in utility rate cases. Watch for the MPUC's final decision in November. While settlements typically receive regulatory approval, the commission could modify terms or reject the agreement entirely, requiring further proceedings. The lower-than-requested revenue increase may modestly pressure earnings from this segment.
Section-by-Section Diff
Event · Item 8.01 — Other Events
Item 8.01 — Other Events filed; see Key Changes for terms.
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On May 8, 2026, NSP-Minnesota and certain intervenors reached a non-unanimous settlement, based on a total revenue increase of $38 million and a weighted average cost of capital of 7.21% (an increase from the previously authorized 7.16%).
NSP-Minnesota settled its Minnesota natural gas rate case for a $38 million revenue increase, significantly below the $62 million originally requested in October 2025 (updated to $62 million in April 2026). The settlement includes a weighted average cost of capital of 7.21%, up from the prior 7.16%. The settlement is non-unanimous, meaning not all parties agreed.
Added in current filing · verify on EDGAR →
In October 2025, Northern States Power Company, a Minnesota corporation and a wholly owned subsidiary of Xcel Energy, Inc. (NSP-Minnesota) filed a natural gas rate case in Minnesota, seeking a total revenue increase of $62 million (8.2%) as updated in April 2026. The filing is based on a 2026 forecast test year and includes a return on equity of 10.65%, a 52.5% equity ratio and rate base of $1.5 billion.
The original rate case filing sought $62 million (8.2% increase) based on a 2026 forecast test year, with a 10.65% return on equity, 52.5% equity ratio, and $1.5 billion rate base. The settlement amount of $38 million represents approximately 61% of the requested increase.
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Figures/quotes linked to EDGAR · Narrative written by AI · Jun 1, 2026 · How we verify