North Dakota Regulators Approve Xcel Energy Rate Hike

Compromise deal aims to prevent subsidies for renewable energy projects in Minnesota

Published on Feb. 6, 2026

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Utility regulators in North Dakota have approved an electricity rate increase for Xcel Energy customers, as part of a compromise deal to prevent subsidies from renewable energy projects in Minnesota. Northern State Power Company had requested a 24% increase for residential customers, but the Public Service Commission agreed to a smaller increase of around 12%.

Why it matters

The rate hike is intended to address concerns about subsidies for renewable energy projects in Minnesota, which could impact electricity costs for Xcel Energy customers in North Dakota. The compromise aims to balance the needs of the utility company and its customers.

The details

Xcel Energy, the parent company of Northern State Power, had originally requested a 24% increase in residential electricity rates. After negotiations, the North Dakota Public Service Commission agreed to an overall increase of around 12%, or 58 cents more per month on the current interim rate.

  • The rate increase was approved on February 6, 2026.

The players

Xcel Energy

A major electric and natural gas utility company that serves customers in eight U.S. states, including North Dakota.

North Dakota Public Service Commission

The state regulatory agency responsible for overseeing public utilities and setting electricity rates in North Dakota.

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What’s next

The new electricity rates approved by the North Dakota Public Service Commission will go into effect for Xcel Energy customers in the state.

The takeaway

This rate increase, while smaller than originally proposed, reflects the ongoing tensions between utility companies, regulators, and renewable energy advocates over the costs of transitioning to cleaner power sources.