Minnesota electricity rates
As of May 2026, the average residential electricity rate in Minnesota is 16.95 cents per kilowatt-hour, 8.1% below the U.S. average of 18.44¢. That is the 22nd highest rate of the 50 states and the District of Columbia.
- Year over year
- ▲ +7.0% from 15.84¢ in May 2025
- Vs. U.S. average
- -8.1% U.S. average 18.44¢
- National rank
- #22 of 51 · #30 cheapest
- Supply market
- MISO Regulated monopoly
Why Minnesota pays what it pays
Minnesota generates a large share of its electricity from wind, which has low marginal cost and has helped hold energy prices down. Working against that are three things: a long, cold heating season that drives high winter peaks, a big rural distribution footprint, and continuing capital spending on the state's two nuclear plants, which have been relicensed and upgraded rather than retired.
The state's clean-energy law requires carbon-free electricity by 2040, and the utilities' compliance plans front-load transmission and storage investment. Transmission in particular is expensive in Minnesota because the wind resource is in the west and the load is in the Twin Cities.
How Minnesota compares
Minnesota ranks #22 of 51 jurisdictions by residential price, making it the 30th cheapest. Within the West North Central division, every other state is cheaper.
| State | ¢/kWh | YoY | Rank |
|---|---|---|---|
| Nebraska | 13.59 | +3.3% | #48 |
| North Dakota | 13.61 | +3.9% | #46 |
| Missouri | 13.68 | +5.1% | #45 |
| Iowa | 14.14 | -0.1% | #43 |
| Kansas | 15.13 | +2.7% | #34 |
| South Dakota | 15.73 | +9.8% | #31 |
| Minnesota | 16.95 | +7.0% | #22 |
Source: U.S. Energy Information Administration, Electric Power Monthly, Table 5.6.A: Average Price of Electricity to Ultimate Customers by End-Use Sector, by State. Data period May 2026. Retrieved 2026-08-19.
What a bill looks like at this rate
The figures below apply the May 2026 Minnesota average to four usage levels. They are arithmetic, not quotes. A real bill also carries fixed customer charges, taxes and any rider specific to your utility.
Estimate your Minnesota bill
Multiply your own usage by the May 2026 state average. Enter the kilowatt-hours from your last statement. This is a supply-and-delivery blended average, not a utility quote.
Rate used: …. U.S. average 18.44¢/kWh, May 2026. Source: U.S. Energy Information Administration, Electric Power Monthly Table 5.6.A.
Who sells electricity in Minnesota
Xcel Energy's Northern States Power is the largest utility, serving the Twin Cities and much of the south. Minnesota Power covers the northeast including the Iron Range, and Otter Tail Power the west. Co-operatives serve much of rural Minnesota, often at rates below the investor-owned utilities.
There is no residential retail choice. Rates are set by the Minnesota Public Utilities Commission.
What you can actually do about it
Minnesota utilities offer some of the better-designed optional residential rates in the country, including time-of-day and EV-charging schedules with genuinely large off-peak discounts. All of them are opt-in.
The state's Cold Weather Rule prevents disconnection during the heating season for households that establish a payment plan. It must be requested and is not automatic.
Closest states by price
These jurisdictions charge within a fraction of a cent of Minnesota, which is useful if you are comparing a move or a multi-state operating cost.
Minnesota electricity rates: common questions
What is the average electricity rate in Minnesota?
The average residential electricity rate in Minnesota is 16.95 cents per kilowatt-hour as of May 2026, according to the U.S. Energy Information Administration. That is -8.1% relative to the national average of 18.44¢/kWh.
How much is a typical monthly electric bill in Minnesota?
At the May 2026 average rate of 16.95¢/kWh, a household using 900 kWh a month would pay about $153, and one using 1,500 kWh about $254. Actual bills vary with usage, rate schedule, fixed customer charges and taxes.
Have electricity rates in Minnesota gone up?
Minnesota rates rose 7% over the year to May 2026, from 15.84¢ in May 2025 to 16.95¢.
Can I choose my electricity supplier in Minnesota?
Regulated monopoly. Minnesota households buy both supply and delivery from their local regulated utility or co-operative; there is no competitive residential supplier market.
Where does this Minnesota rate figure come from?
It is the residential-sector average revenue per kilowatt-hour reported by utilities to the U.S. Energy Information Administration on Form EIA-861M and published in the Electric Power Monthly, Table 5.6.A. It blends supply and delivery across every residential customer in the state, so it is a statewide average rather than a quote for any individual household.