Attorney General Keith Ellison announced that Xcel Energy will refund tens of millions of dollars to Minnesota consumers. This decision follows a ruling by the Public Utilities Commission (PUC) on October 15, 2024, which agreed with Ellison’s Office and the Minnesota Department of Commerce.
The issue stems from a turbine failure at Xcel's Sherburne County Generating Station Unit 3 in November 2011. The plant was offline for nearly two years, during which Xcel purchased more expensive replacement power. The PUC ordered an investigation into whether Xcel had maintained the plant properly.
On October 15, 2024, the PUC ruled that Xcel must cover the full cost of replacement power with interest, minus a settlement amount received from the turbine manufacturer, which was refunded to ratepayers in 2019. The exact refund amount will be detailed by Xcel in upcoming months.
Ellison emphasized the significance of this decision: “It’s hard to afford your life when your utility company is cutting corners, making mistakes as a result, and trying to stick you with the bill.”
Commerce Commissioner Grace Arnold stated: "As the public advocate for Minnesota consumers, the Department of Commerce Division of Energy Resources advocated for Xcel Energy to refund the millions in extra energy costs to Minnesotans."
Independent engineers hired by the Minnesota Department of Commerce found that Xcel delayed inspections that could have prevented turbine failure. The Residential Utilities Division supported these findings and opposed Xcel's defenses against issuing refunds.
An administrative law judge recommended a partial refund due to contributory fault by the turbine manufacturer. However, both the Department of Commerce and Residential Utilities Division argued for full repayment by Xcel.
The PUC sided with these arguments, mandating that Xcel repay approximately $56 million with interest. Under state law, Attorney General Ellison’s Office advocates for residential and small-business utility consumers through its Residential Utilities Division.
This outcome marks a victory for ratepayers as it ensures accountability from utility companies regarding maintenance practices and costs passed onto consumers.