The Minnesota Public Utilities Commission (PUC) has approved Xcel Energy’s 2024-2040 Upper Midwest Integrated Resource Plan (IRP) and related competitive resource acquisitions.
The approved plan highlights a balanced portfolio of energy resources designed to maintain reliability and resilience in a changing energy landscape. It enables Xcel to continue investing in energy efficiency, distributed energy resources, infrastructure upgrades, and strategic energy generation to meet growing demand while advancing its clean energy transition.
The plan also includes measures to strengthen grid resilience against extreme weather events and ensures flexibility to adapt to customers' changing energy requirements.
The Commission’s decision is based on a settlement agreement supported by key stakeholders, including the Department of Commerce, Clean Energy Organizations, labor unions, and energy developers. The agreement, which addresses both Xcel's IRP and the Firm Dispatchable Resource Acquisition process, balances Minnesota’s clean energy transition with reliability.
Key elements of the settlement include:
- New renewable energy and storage projects.
- Extension of two power purchase agreements with natural gas plants.
- Ratepayer protections and cost containment measures for selected firm dispatchable resources.
- A new gas peaking plant, with requirements for Xcel to obtain a certificate of need and site permit before construction.
- Exploration of innovative technologies such as thermal energy storage and virtual power plants.
- Expanded energy efficiency programs.
- Enhanced workforce development opportunities.
- Extension of nuclear power plant operations to the early 2050s.
- Addition of 4,200 MW of wind, solar, and storage by 2030.
“The Commission’s approval of Xcel Energy’s Integrated Resource Plan underscores our commitment to ensuring reliable, affordable service for Minnesotans,” said Commissioner Katie Sieben, Chair of the PUC. “This plan strikes a balance between necessary infrastructure investments and cost control measures to protect ratepayers while securing a stable energy future, especially during a challenging time for energy.”
Additional plan highlights
- Reliability and affordability - The PUC emphasized affordable electricity rates while supporting essential infrastructure investments. The IRP includes cost-effective strategies to help mitigate potential rate increases. The PUC also imposed cost protections for ratepayers, particularly from large new energy users like data centers, and set cost caps on various projects.
- Investment in clean energy - Xcel’s plan calls for 4,200 MW of new renewable energy and storage by 2030, reinforcing its commitment to clean energy expansion.
- Economic and employment growth - The development of new wind and solar farms is expected to create hundreds of jobs across Minnesota and the upper Midwest. Investments in renewable energy and supporting infrastructure will also drive local economic growth.
- Accelerated decarbonization - Xcel will retire all coal-fired power plants by 2030, replacing them with wind, solar, and storage solutions. The company anticipates an 80% reduction in carbon emissions by 2030 compared to 2005 levels, with potential reductions reaching 88%. The PUC also approved steps for coal plant decommissioning and remediation.
As part of its decision, the PUC required Xcel to increase public engagement on key energy issues before its next IRP filing. The PUC will continue to oversee the plan’s implementation to ensure it meets reliability and affordability goals while adapting to future energy challenges.
