Xcel Energy is distributing more than $133 million in bill credits to all Minnesota electricity customers as a result of the Federal Tax Cuts and Jobs Act. The refund for a residential electricity customer averages about $43, but varies based on each customer’s actual usage in 2018. Refunds have started appearing on customers’ bills and will continue to appear throughout the next month depending on billing cycles.
Xcel Energy will also distribute more than $5 million to its natural gas customers as a result of federal tax reform in mid-July. The refund for a residential gas customer will average about $9, but will also vary depending on each customer’s 2018 actual usage.
Refunds to customers for the firsts five months of 2019 will also appear on customers’ bills later this year, to reflect tax reductions this year. That includes a refund in October for electric customers totaling $39 million and a refund for natural gas customers in December totaling $3.2 million. In addition to the refunds, Xcel Energy rates for Minnesota electric and gas customers will be reduced starting June 1, in order to account for federal tax cuts moving forward.
The Minnesota Public Utilities Commission approved Xcel Energy’s 2018 and 2019 refund and rate reduction plans April 18. The PUC also approved Xcel Energy’s proposal to give $2 million in tax reform funds to POWERON, a program that helps keep bills affordable for low-income customers.