Minnesota PUC approves $17.5M Xcel Energy payment credit for past-due customers, Minnesota Power electric vehicle pilots

Customers of Xcel Energy who have struggled to meet bills during the age of COVID-19 will gain credits on their utility bills going forward, stemming from a $17.5 million Payment Plan Credit Program approved by the Minnesota Public Utilities Commission last week.

The past-due credit will apply to those who establish and maintain a payment plan while owing between $1,000 and $4,000 to the utility. Those eligible for the program will gain a 75 percent bill credit toward their balance, with 25 percent given as an upfront credit and the remaining 50 percent applied in equal monthly credits over a period of up to 11 months.

“We understand why Minnesotans may have fallen behind on their utility bills,” PUC Chairwoman Katie Sieben said. “If you are an Xcel customer, please call the utility to set up a payment plan and ask if you qualify for other available programs that will help you catch up on past-due bills.”

Ideally, the Payment Plan Credit Program is meant to help prevent service disconnections and provide relief to those with large past-due balances, building on PUC orders last year, including disconnection moratoriums for rate-regulated utilities. There are limits to the plan’s allowances, however. If customers miss more than two consecutive monthly payments, they are out of the program.

Simultaneously, the Minnesota PUC approved the new plan from Xcel, it also voted forward two electric vehicle pilot programs from Minnesota Power. Meant to expand state access to electric vehicles, the pilots include an off-peak charging rewards program and a rebate program for smart charging devices.

The off-peak charging rewards program would reward customers for charging their vehicles during non-peak hours when costs are lowest. The rebate program would reward the installation of smart charging devices and a second device for off-peak charging periods. Both pilots will assess whether charging electric vehicles outside peak hours can truly reduce costs and help determine what other benefits it might bring.

“Electric vehicle technology has the potential for rapid growth, this decision will maximize the benefits of EVs for Minnesota Power ratepayers,” PUC Commissioner Matthew Schuerger said. “Off-peak charging reduces the cost of charging a vehicle, both to EV drivers and to all Minnesota Power ratepayers.”

These pilot programs were Minnesota Power’s response to a 2019 PUC electric vehicle order that asked utilities to file proposals to enhance the availability or access to charging infrastructure, educate regarding electric vehicle benefits, and/or manage mechanisms that optimize efforts to get electric vehicles on the grid.