MINNEAPOLIS (April 24, 2020) – As the global COVID-19 pandemic continues to affect Minnesota, Xcel Energy is proposing steps that will help electric customers save money throughout 2020. Approximately $25 million in customer benefits will be available under Xcel Energy’s proposed plan, with additional economic development programs providing support to qualifying businesses. Xcel Energy has asked the Minnesota Public Utilities Commission to approve the changes, which would take effect within several weeks.

Xcel Energy has been working with stakeholders, policymakers and regulators to provide assistance to customers affected by the COVID-19 pandemic. Taking advantage of lower than expected fuel costs, Xcel Energy will propose to credit about $25 million to electric customers through their fuel rates this summer. The low natural gas prices have also led to reduced use of coal-fired generation in recent months, keeping bills low for customers while also reducing emissions.

Commercial customers may also be eligible for reduced bills if they have experienced significant reductions in electric use due to the pandemic. The program is designed to help mid-sized facilities restart production as workers return to facilities.

“We’re working with the State of Minnesota to help support our customers as our economies begin to reopen,” said Chris Clark, president, Xcel Energy-Minnesota, North Dakota, South Dakota. “As the pandemic continues to affect our customers, we’ll continue to find innovative ways to help them manage through this difficult situation.”

In addition to these proposals, Xcel Energy is also using the $20 million net gain from selling the Mankato Energy Center to support short-term and long-term corporate giving, including COVID-19 relief in all of the states in which it operates.

Lower fuel costs delivered directly to customers

Unexpectedly low prices for natural gas will provide direct benefits to customers in the coming months. Xcel Energy has proposed using the lower than expected prices to provide about $25 million in credits to electric customers over the summer cooling months. Because fuel costs are passed directly to customers, low prices for natural gas leads to lower costs to produce electricity, and, if approved, customers will benefit from the lower costs in June, July and August 2020.

Economic development tool will be used to support companies returning to production

As companies look ahead to begin bringing employees back to work, Xcel Energy proposes to use an existing economic development program to provide a temporarily reduced rate through the end of 2020. Companies that have seen a reduction of 25% or more in recent electric use may be eligible for a 25% reduction in their cost of service. The program will be available to customers that use between 350 kilowatts and two megawatts at their peak production.

Large energy users generally qualify for custom programs available under existing rules, and Xcel Energy is working with those customers.

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About Xcel Energy

Xcel Energy (NASDAQ: XEL) provides the energy that powers millions of homes and businesses across eight Western and Midwestern states. Headquartered in Minneapolis, the company is an industry leader in responsibly reducing carbon emissions and producing and delivering clean energy solutions from a variety of renewable sources at competitive prices. For more information, visit xcelenergy.com or follow us on Twitter and Facebook.