Your Rising Power Bill is Fueling Some Sweet Profits For Minnesota Utilities

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(Minnesota Reformer) – Two of Minnesota’s three investor-owned electric utility companies earned profits above the industry average over the past two years, according to a report from a utility watchdog group.

Data collected by the Energy & Policy Institute shows Otter Tail Power Company, which serves 134,000 customers in western Minnesota and parts of the Dakotas, earned about 17 cents on every dollar paid by its customers in 2024 and 2025.

Xcel Energy’s electric subsidiaries, which serve about 3.7 million customers across Minnesota and seven other states, earned about 17 cents on the dollar in 2024 and about 15 cents on the dollar in 2025.

The 110 investor-owned utilities included in the report had an average profit margin of 12.8% from 2021 to 2024 and 14.6% in 2025. Xcel and Otter Tail were in the top 40 both years.