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ElectricityRatePerKWh

Electricity Rate in Minnesota (2026): 16.95c/kWh Average

The EIA residential electricity price in Minnesota is 16.95 cents per kWh as of May 2026, 1.49c below the US average of 18.44c/kWh. The Minnesota commercial rate is 12.88c/kWh and the industrial rate is 9.80c/kWh (EIA Electric Power Monthly, Table 5.6.A).

Residential Rate
16.95¢
per kWh
vs US Avg
-8%
1.49c below
Avg Monthly Bill
$117
738 kWh
Provider Choice
No
Regulated monopoly

Minnesota Electricity Rate: What You Need to Know

Minnesota electricity averages 16.95 cents per kWh for residential customers as of May 2026, according to the EIA Electric Power Monthly. This is 1.49c below the US average of 18.44c/kWh. The average monthly bill for Minnesota households is $117 based on typical usage of 738 kWh.

Minnesota's 16.95c/kWh rate (May 2026) is below the US average of 18.44c and has been climbing under a multi-year rate plan. Xcel Energy (Northern States Power) is the largest utility, serving the Minneapolis-St. Paul metro and much of the state; Minnesota Power serves the Duluth area and Iron Range, Great River Energy wholesales to rural cooperatives, and Otter Tail Power serves the west. Minnesota is a regulated market with no residential retail choice, overseen by the Minnesota Public Utilities Commission. In November 2024 Xcel filed a two-year request to raise rates $353 million (9.6%) in 2025 and a further $138 million (3.6%) in 2026 - about $490 million (13.2%) combined - with interim rates already in effect and a final decision expected in summer 2026. Minnesota's grid is unusually clean for the Midwest: Xcel's Monticello and Prairie Island nuclear plants supply around a quarter of the state's electricity (the company plans to seek 20-year federal license extensions for both), and wind supplies roughly a third, anchored by the 10,000 MW of wind capacity Xcel operates across the upper Midwest.

Generation mix: Wind 35%, natural gas 30%, nuclear 25%, coal 10%. The fuel mix is a primary driver of electricity rates - states with abundant hydro or nuclear tend to have lower rates, while states dependent on imported petroleum (Hawaii) or natural gas pay more.

Year-over-year change: Minnesota rates rose 7.0% year-over-year as of May 2026. This compares to the US average increase of 6.2% over the same period.

Regulated: You Cannot Switch Electricity Suppliers

Xcel Energy MN / Great Plains Energy operates as the regulated utility in Minnesota. Retail electricity choice is not available for residential customers. Options for reducing your bill include: time-of-use rate optimization, energy efficiency upgrades, and rooftop solar.

Your Minnesota Electricity Bill Components

Energy charge (738 kWh x 16.95c)$125.09
Fixed customer charge (estimated)~$10.00
Estimated monthly total$135.09
Minnesota Rate by Sector - May 2026
Residential (US 18.44c)16.95c
Commercial (US 13.54c)12.88c
Industrial (US 8.71c)9.80c
Source: EIA Electric Power Monthly, Table 5.6.A.
Dominant Utility
Xcel Energy MN / Great Plains Energy
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Adjacent States
Wisconsin19.74c
Iowa14.14c
North Dakota13.61c
South Dakota15.73c
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Minnesota Electricity: Frequently Asked Questions

What is the electricity rate in Minnesota in 2026?+
The average residential electricity rate in Minnesota is 16.95 cents per kWh as of May 2026, according to the EIA Electric Power Monthly. This is 1.49c below the US average of 18.44c/kWh (-8%). The average monthly electricity bill in Minnesota is approximately $117 based on 738 kWh typical monthly usage.
What is the commercial electricity rate in Minnesota?+
The average commercial electricity rate in Minnesota is 12.88 cents per kWh as of May 2026, according to the EIA Electric Power Monthly (Table 5.6.A). That compares with the US commercial average of 13.54c/kWh. Commercial rates apply to businesses, offices, schools, and retail. They are usually lower per kWh than residential rates, but a commercial bill can still be much larger because of higher volume and demand charges.
What is the industrial electricity rate in Minnesota?+
The average industrial electricity rate in Minnesota is 9.80 cents per kWh as of May 2026, according to the EIA Electric Power Monthly (Table 5.6.A), versus a US industrial average of 8.71c/kWh. Industrial customers such as factories, manufacturers, and large facilities pay the lowest per-kWh price of the three EIA sectors because they buy power at high volume, often at higher voltage, under demand-based rate structures.
Can I switch electricity providers in Minnesota?+
No - Minnesota operates a regulated electricity market. Xcel Energy MN / Great Plains Energy serves as the regulated monopoly utility. Customers cannot switch electricity generation suppliers. Options for reducing bills include time-of-use rate optimization (where available), energy efficiency upgrades, and solar installation.
What is the average monthly electricity bill in Minnesota?+
The average Minnesota household uses approximately 738 kWh per month. At 16.95c/kWh plus approximately $10 in fixed charges, the average monthly bill is $117. This varies by season (higher in summer for cooling-dominant states like Florida, higher in winter for heating-dominant states).
What is the primary electricity source in Minnesota?+
Minnesota's generation mix is primarily Wind 35%, natural gas 30%, nuclear 25%, coal 10%. This fuel mix is a key factor in the state's electricity rate - states relying on hydro or nuclear typically have lower rates, while states heavily dependent on natural gas or petroleum (like Hawaii) face higher costs.
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