Xcel Energy to refund $40M after passing on costs of prolonged nuclear plant outage

Xcel Energy will have to pay back $40.6 million plus interest after a state ruling found the utility correctly wrongly passed along the costs of a 2023 power plant outage to Minnesota customers.

The Minnesota Public Utilities Commission ordered Xcel to reimburse costs after the company’s own workers mistakenly severed an underground cable in October 2023, putting the Prairie Island Nuclear Generating Plant out of commission for three months. Xcel drew electricity from the regional grid at a higher rate during that time.

“This decision reinforces a simple principle,” PUC Commissioner Joseph Sullivan said. “When a utility’s imprudent action causes millions of dollars in costs, customers should not pay the price. Today’s action ensures accountability and strengthens protections for future cases.”

The refund will likely appear as a bill credit in the coming months. There was no immediate estimate on the amount of interest Xcel will pay.

In a statement, Xcel said it respects the commission’s decision and is committed to operating the Prairie Island plant safely.