Minnesota Electricity Rates: Cost per kWh

What Minnesotans Pay for Power

The average residential electricity rate in Minnesota is $0.14 per kilowatt-hour (kWh), modestly above the national average of $0.13/kWh.

Rate Structure & Variability

Your actual cost depends on several factors:

Utility provider: Minnesota has investor-owned utilities (Xcel Energy, Minnesota Power, Otter Tail Power), municipal utilities, and rural electric cooperatives—each sets its own rates.
Rate plan: Tiered, time-of-use (TOU), or flat rates. TOU plans charge more during peak hours (typically weekday afternoons/evenings) and less overnight.
Season: Summer rates often higher due to cooling demand.
Fees & riders: Fixed monthly charges, renewable energy riders, fuel cost adjustments.

Regional Context

Minnesota's rates reflect its generation mix: historically coal-heavy, now transitioning rapidly to wind (2nd in U.S. wind generation), solar, and nuclear. The state's Conservation Improvement Program (CIP) mandates utility efficiency investments, which can moderate long-term costs.

Managing Your Bill

Review your utility's rate options—some offer EV or heat pump rates.
Shift flexible usage (laundry, dishwasher, EV charging) to off-peak hours if on TOU.
Leverage utility rebates for insulation, heat pumps, smart thermostats, and LEDs.
Consider community solar subscriptions if rooftop isn't feasible.