Tax credit to deliver more than $330 million in savings over two years
Eau Claire, Wis. – (March 31, 226) – Xcel Energy is beginning to send more than $130 million in additional savings to its Upper Midwest customers from federal tax credits on the energy generated by the company’s nuclear fleet. This brings the total savings to more than $330 million over the first two years of the credits.
“Our Monticello and Prairie Island nuclear plants are critical to our region’s energy security. Together, they deliver more than one-quarter of the electricity that our Upper Midwest customers use to power their homes and businesses,” said Bria Shea, president of Xcel Energy—Minnesota, North Dakota and South Dakota. “We advocated for these tax credits on nuclear energy generation in federal law. They represent yet another way our carbon-free, always-available nuclear fleet delivers for our customers and states.”
The average refund, based on average residential usage in each state, will be:
- $2.46 per month in Minnesota over a nine-month period starting April 1. The total refund in Minnesota is $83.1 million.
- $2.05 per month in North Dakota over a 12-month period starting April 1. The total refund in North Dakota is $5.8 million.
- $2.26 per month in South Dakota over a 10-month period likely to start May 1. The total refund in South Dakota is $6 million.
In Wisconsin and Michigan, the company included the credits in setting rates that started Jan. 1, 2026. In Wisconsin, that will result in a decrease of $37.5 million and in Michigan a decrease of $300,000.
“We’re committed to supporting economic growth, investing in our communities, delivering reliable and resilient electricity, and keeping customers’ bills low,” said Karl Hoesly, president of Xcel Energy—Wisconsin and Michigan. “Our nuclear plants help us deliver on all of those commitments with round-the-clock power.”
The federal tax credit for nuclear energy generation was created under a 2022 federal law and continued under a 2025 law. 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.
Xcel Energy’s two nuclear power plants, Monticello and Prairie Island, together accounted for 27% of the electricity used by customers across the company’s five-state Upper Midwest system in 2025. Xcel Energy has 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.
Additional refund for Minnesota customers
For Minnesota customers, Xcel Energy will deliver savings from nuclear production tax credits along with refunds from the company’s annual Fuel Clause Adjustment process. The average customer will see an additional Fuel Clause Adjustment refund of $1.11 per month over a 12-month period that started in January.
Xcel Energy uses a diverse set of energy resources to maintain reliable service while keeping customers’ bills low. The cost of fuel used to generate electricity makes up a portion of a customer’s monthly bill. If actual fuel costs are lower than expected, the company issues a refund to customers for this amount.
About Xcel Energy
Xcel Energy (NASDAQ: XEL) is a leading energy provider, dedicated to serving millions of customers with excellence. We make energy work better for customers, helping them thrive every day. That means always raising the bar — delivering better service and providing more reliable, resilient and sustainable energy.
We are committed to leading the clean energy transition, meeting our customers’ need for more, cleaner power, while keeping bills as low as possible. Because the people we serve depend on us to power their lives.
With our Wisconsin/Michigan headquarters in Eau Claire, Wis., we work every day to generate and distribute electricity and gas to customers across northwest Wisconsin and the Upper Peninsula. For more information, visit xcelenergy.comor follow us on X, and Facebook.
