Xcel Energy Proposes Significant Rate Credit for 2026 Infrastructure Rider

Xcel Energy Announces 2026 Infrastructure Rider with Major Rate Credit Proposal in South Dakota.

Northeast Radio SD News - Watertown, SD - Northern States Power Company, d/b/a Xcel Energy, has filed a petition with the South Dakota Public Utilities Commission (PUC) seeking approval of a negative $19 million revenue requirement for its 2026 Infrastructure Rider. The filing, known as docket EL25-033, proposes a substantial rate credit that would translate to a monthly bill decrease for typical residential customers.

The petition, submitted on October 1, 2025, requests approval for the 2026 Infrastructure Rider revenue requirements of negative $19,060,133 and an updated Infrastructure Rider Factor of negative $0.008032 per kWh.

Potential Customer Impact

Xcel Energy estimates that, if approved, a typical residential electric customer using 750 kWh per month would see a $6.02 monthly credit on their bill, a decrease of $1.75 per month compared to the current rate. The proposed negative rate of $0.008032 per kWh is intended to apply to all energy billed to each customer class during the 2026 calendar year, with an effective date of March 1, 2026.

The negative revenue requirement is due in part to the inclusion of Production Tax Credits (PTC) and the PTC tracker mechanism in the filing. The final revenue requirement and rate are subject to a subsequent adjustment by Xcel Energy to account for known 2025 nuclear Production Tax Credits early in 2026.

Other Key Agenda Items for November 6 Meeting

The PUC is set to consider the Infrastructure Rider petition at its regularly scheduled meeting on Thursday, November 6, 2025, at 2:00 P.M. CST in Pierre. In addition to Xcel Energy’s filing, the PUC agenda includes several other key regulatory matters:

·         Crowned Ridge Energy Storage I, LLC (CRES): The Commission will consider designating the affected area and a local review committee for CRES's Notice of Intent to apply for a permit to construct, own, and operate a 120-megawatt, 4-hour Battery Energy Storage System (BESS). The proposed BESS is planned for approximately 15.4 acres in Codington County and would connect to the existing Crowned Ridge Wind Collector Substation. This filing is docket EL25-034.

·         Bluepeak Asset Transfer: Docket TC25-034 involves Clarity Telecom, LLC dba Bluepeak and certain subsidiaries seeking approval for a pro forma asset transfer to two new wholly-owned subsidiaries, Bluepeak BTS and Bluepeak ABS. This also includes requests to transfer and grant Certificates of Authority for local and interexchange services, and to relinquish and grant Eligible Telecommunications Carrier (ETC) designations.

·         NorthWestern Energy Contract: The Commission will also decide on a Motion to Reopen the Docket (NG23-015) concerning a 15-year contract with deviations between NorthWestern Corporation dba NorthWestern Energy and Valley Queen Cheese Factory, Inc., regarding interruptible transportation service for additional natural gas capacity.

·         Commission Leadership: The meeting is also slated to include the election of a Chairperson and Vice Chairperson for the Commission, as requested by the current Chair, Commissioner Gary Hanson.

The PUC welcomes the public to listen to the meeting live via a webcast on the PUC's website, puc.sd.gov.