MINNEAPOLIS (June 2, 2025) – Xcel Energy is moving forward with plans to deliver $25 million back to North Dakota and South Dakota customers on their bills through federal tax credits on the energy generated by the company’s nuclear fleet.
This is the first time customers will see savings from the federal tax credit on nuclear energy generation, which the company advocated for in recent law.
“Our nuclear power plants have produced safe, reliable, always-available electricity for our customers across the Upper Midwest for more than 50 years. Now, tax credits on the energy they generate will produce savings for our customers,” said Ryan Long, president of Xcel Energy—Minnesota, North Dakota and South Dakota. “Nuclear energy is an important piece of American energy security. It helps us support economic growth in the Upper Midwest, deliver reliable and resilient electricity, and keep customers’ bills as low as possible.”
Xcel Energy’s South Dakota customers are already seeing benefits from $13 million in nuclear energy generation tax credits reflected on their electricity bills. Starting this month, the average residential customer in South Dakota will receive $5.08 a month in savings, totaling $50.80 through February 2026.
If approved by the North Dakota Public Service Commission, the company’s North Dakota customers will begin seeing $12.5 million of savings in August. The average residential customer in North Dakota would receive a $4.49 a month bill credit, totaling $53.83 over the 12 months through July 2026.
Xcel Energy’s Minnesota customers recently started receiving savings on their monthly bills through the nuclear energy tax credit. Minnesota’s share of the tax credit is $176 million.
Nuclear energy enjoys broad support among policymakers and the public because it’s the only energy source available that is both carbon free and available 24/7. Under current law, customers stand to receive tax credits for Xcel Energy’s nuclear energy production through 2032. Xcel Energy is working closely with industry partners, trade associations, and other stakeholders to ensure federal policymakers are made aware of the important benefits of these tax policies for their constituents.
Xcel Energy’s two nuclear power plants, Monticello and Prairie Island, together account for nearly 25% of the electricity used by customers across the company’s five-state Upper Midwest system. Xcel Energy recently received federal approval to extend the operating life of its Monticello nuclear plant well into the future, and the company plans to seek a similar extension for its Prairie Island plant.
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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 X and Facebook.
