Minnesota Public Utilities Commission approves agreements for Xcel to provide electric service to Google data center

The Minnesota Public Utilities Commission (PUC) approved Tuesday agreements for Xcel Energy to provide electric service to a proposed new Google data center.

The commission approved several electric service agreements and related ratemaking treatments submitted by Xcel Energy. The data center would be owned and operated by Honeycrisp Power LLC, an affiliate of Google. The facility would be located in Becker, Minnesota on property adjacent to Xcel’s Sherco coal plants.

The PUC found that the proposals by Xcel are in the public interest due to the economic development and jobs associated with the project, both locally and across the state. The addition of Google as a customer will help enable Xcel to meet its revenue requirements without raising its rates.

Xcel proposes meeting Google’s energy needs using renewable resources, as required by Google.

Xcel has been working with the Minnesota Department of Employment and Economic Development, Sherburne County, the City of Becker and other stakeholders for approximately two years to attract the data center to Minnesota.

Xcel and Google have negotiated a rate for an initial term of ten years, which Xcel believes is necessary to attract Google to its service territory.

By its action today, the PUC approved three separate contracts proposed by Xcel, which include the retail electric service agreement, the Competitive Rate Response Rider Agreement, and the Interconnection Agreement.