Nuclear waste settlement yields $9.6M in refund-based customer bill relief for Xcel Energy customers

As part of a nuclear waste settlement between the U.S. Department of Energy (DOE) and Xcel Energy, $9.6 million will be issued in refunds to the company’s electric service customers.

The Minnesota Public Utilities Commission approved the arrangement last week. This included an authorized $2.9 million for the PowerOn bill payment assistance program, meant to provide discounted electricity service to customers enrolled in the Low-Income Home Energy Assistance Program (LIHEAP). Participants pay 3 percent of their household income toward electricity bills, while eligible ratepayers gain access to a balance forgiveness option.

“As Minnesotans face financial challenges due to the COVID-19 pandemic, it is vital that we target relief to those that need it most,” Commission Vice Chair Joseph Sullivan said. “Leveraging this funding will help Minnesotans in need while also providing refunds to other Xcel ratepayers.”

The funds stem from arrangements demanded under the Nuclear Waste Policy Act, which requires utilities like Xcel to form contracts with the DOE to manage both disposal and storage of spent nuclear fuel. In Xcel’s case, this involved the Prairie Island and Monticello nuclear plants. While Xcel has gathered the spent fuel, the DOE has never accepted it, meaning Xcel has also had to store it.

The settlement recognized this and reimbursed Xcel Energy and its customers for the cost of storage. Beyond the $2.9 million for PowerOn, all remaining funds will be split between credits for commercial and industrial customers.