The Minnesota Public Utilities Commission approves monthly fuel rates for calendar year, shown in the Commission-Approved Rates column below. For some months, there may be a true-up factor applied to adjust for prior period over- or under-collection.  For those months, the Fuel Cost Charge column has been adjusted to account for the amount listed in the True-Up Factor column.  The amounts shown in the Fuel Cost Charge column will be shown on a separate line on your monthly bill.

(Tables last updated 04/01/2026)

Residential Customers

C&I Non-Demand

C&I Demand Non-Time of Day

C&I Time of Day customers during On-Peak hours

C&I Time of Day customers during Off-Peak hours

Outdoor Lighting

C&I General Time of Use Pilot

Purchased Gas Adjustment

Base Cost of Gas

One component of the Cost of Gas is the Base Cost of Gas. The Base Cost of Gas is an estimate of the Total Cost of Gas that is calculated for and only changed as part of a general rate case.

Cost of Gas Sheet (PDF)

The other component of the Cost of Gas is the PGA. The PGA is a mechanism designed to recover the current cost of gas supply. The PGA factor is equal to the current wholesale delivered cost of the natural gas supply purchased by Xcel Energy less the Base Cost of Gas. The current cost of gas supply includes supply, transportation, peak shaving and other costs, which the Minnesota Public Utilities Commission (MPUC) determines from time to time. Because of the volatility in the cost of gas supply, a monthly adjustment is needed to raise or lower rates to reflect current market prices. At the close of each month the cost of gas supply for the next month is estimated. This estimated cost of gas supply is then divided by the forecasted retail sales for the month. This $/therm result is compared to the $/therm Base Cost of Gas, and the difference is the PGA factor.

The PGA also includes a true-up factor. Every September, Xcel Energy determines how much gas expense was incurred for the previous July - June compared to the amount Xcel Energy collected from customers. Any over- or under-recovery is divided by the customer class’s forecasted sales to develop the true-up factor. The MPUC approves the true-up factor annually. The true-up ensures that Xcel Energy collects the actual cost of gas supply, no more and no less.

Trends in cost of gas and how they affect the PGA

Natural gas, like other commodities, is based on supply and demand.

• When the demand for gas is high, the price also increases.
• This causes the PGA to be higher in the winter months and lower in the summer months. However, as natural gas is used more for generation, this trend could change.
• As was seen in late 2005, severe weather can have significant effects on natural gas supply.

Xcel Energy’s fuel cost forecast is based on “normal” weather. When weather deviates substantially from “normal” there is a direct impact on the PGA.

• “Normal” weather is defined as actual ambient air temperature that deviates from the 30-year average for the month.