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.
Where Minnesota power comes from
Minnesota generated 61 TWh in 2025, the 28th largest output of any state. Wind supplied 25.2% of it. Renewables accounted for 33.4%, against 23.8% nationally, which ranks Minnesota #16 of 51.
- Wind 25.2% 15 TWh
- Coal 23.2% 14 TWh
- Nuclear 21.7% 13 TWh
- Natural gas 20.8% 13 TWh
- Solar 5.2% 3 TWh
- Hydroelectric 1.5% 921 GWh
- Wood and biomass 1.5% 896 GWh
- Other 0.9% 564 GWh
Source: U.S. Energy Information Administration, Electric Power Operational Data, net generation, all sectors. Net generation across all sectors. Nuclear counts as carbon-free but not renewable, so the two shares differ.
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 Minnesota households actually pay
Minnesota looks more expensive on paper than it is in practice. Its rate ranks #22 of 51, but the average bill ranks only 44th, because households there use 737 kWh a month against a national average of 871. See how every state compares on bills.
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.
Heating in Minnesota: gas, heat pump or resistance
Residential natural gas in Minnesota averaged $10.65 per thousand cubic feet in 2024, about $1.03 per therm, against a national average of $14.50. Put on the same scale as the state's electricity rate, the cost of delivering one million BTU of heat works out as follows.
In Minnesota, gas remains cheaper to run than a heat pump by about $5.15 per million BTU at these assumptions, roughly $309 over a 60 million BTU season. A heat pump can still be the better purchase once cooling, equipment age and incentives are counted, but not on heating cost alone.
Gas price: U.S. Energy Information Administration, Natural Gas Prices, price delivered to residential consumers, 2024. Assumptions are adjustable in the heating cost guide, and every state is compared on the gas price page.
What each Minnesota utility charges
The statewide average hides a wide spread. Across the 44 Minnesota utilities reporting to the EIA, rates run from 9.70¢ at City of Marshall to 20.97¢ at City of Lake Crystal . Together they serve 2.3 million residential customers.
| Utility | ¢/kWh | Bill | kWh | Customers |
|---|---|---|---|---|
| Northern States Power Co - Minnesota | 16.98 | $100 | 588 | 1.2 million |
| Connexus Energy | 13.66 | $105 | 772 | 134,095 |
| ALLETE, Inc. | 15.66 | $102 | 651 | 125,896 |
| Dakota Electric Association | 14.00 | $100 | 716 | 108,097 |
| East Central Energy | 16.89 | $138 | 820 | 55,250 |
| Rochester Public Utilities | 17.91 | $100 | 560 | 54,943 |
| Wright-Hennepin Coop Elec Assn | 14.59 | $131 | 897 | 53,714 |
| Otter Tail Power Co | 11.33 | $95 | 842 | 50,118 |
| Lake Country Power | 17.90 | $148 | 829 | 47,204 |
| Crow Wing Cooperative Power & Light Comp | 13.33 | $108 | 809 | 44,698 |
| Minnesota Valley Electric Coop | 13.98 | $132 | 948 | 43,412 |
| Lake Region Electric Cooperative | 13.28 | $132 | 995 | 27,239 |
| Stearns Cooperative Elec Assn | 13.88 | $167 | 1,204 | 26,138 |
| People's Cooperative Services | 16.70 | $146 | 873 | 21,665 |
| Beltrami Electric Coop, Inc | 14.40 | $159 | 1,108 | 20,732 |
| Shakopee Public Utilities Comm | 15.54 | $97 | 625 | 18,517 |
| BENCO Electric Cooperative | 15.03 | $142 | 942 | 18,361 |
| City of Moorhead | 11.38 | $93 | 816 | 18,180 |
| Freeborn Mower Electric Cooperative | 15.15 | $128 | 848 | 17,842 |
| MiEnergy Cooperative | 16.56 | $154 | 931 | 15,224 |
| Mille Lacs Energy Cooperative | 17.58 | $123 | 699 | 14,546 |
| Runestone Electric Assn | 14.36 | $161 | 1,122 | 14,282 |
| Wild Rice Electric Coop, Inc | 14.35 | $168 | 1,171 | 13,948 |
| City of Elk River | 15.83 | $116 | 731 | 11,776 |
| City of Anoka | 15.88 | $87 | 545 | 11,646 |
Showing the 25 largest of 44. Utilities with fewer than 1,000 residential customers are not published.
Source: U.S. Energy Information Administration, Form EIA-861 annual electric power industry report, 2024.
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.
Minnesota sits in The Midwest. A single wholesale market stretching from Manitoba to the Gulf, containing both the cheapest wind states and some of the highest delivery costs in the country. Read the regional analysis.
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 the average monthly electric bill in Minnesota?
The average Minnesota household paid $119 a month across the twelve months to May 2026, using an average of 737 kWh. That is -23.6% against the U.S. average bill of $155, and it ranks 44th highest of the 51 jurisdictions. Your own bill depends on the size of your home, your heating and cooling equipment and your rate schedule.
Why is the Minnesota bill ranking different from its rate ranking?
A bill is the rate multiplied by usage, and usage varies between states more than price does. Minnesota ranks #22 of 51 on price but 44th on the actual bill, because households there use about 737 kWh a month against a national average of 871. Climate and heating fuel drive most of that difference.
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.