Utilities

Highly Competitive Rates

Minnesota offers industrial and commercial utility users the cost advantage of highly competitive rates. Natural gas, electricity and water service rates are significantly lower than either coast and very competitive against most Midwest states. In addition, Minnesota exempts energy used in the manufacturing process from sales tax. The exemption includes natural gas, electricity and other utilities.

For the most current average rates, view the Monthly Energy Review, published by the U.S. Department of Energy.

The state ranks in the middle of nation in terms of energy consumption. Its industrial and transportation sectors are the largest users.

In terms of production, Minnesota has no fossil fuel resources but is a major generator of wind energy. It’s also a leading producer of ethanol. It has two nuclear power plants, both outside the Metro MSP region, and two petroleum refineries, both inside the region.

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Natural Gas

The natural gas consumed in Minnesota comes from Canada and domestic sources. The residential sector is the largest consumer of natural gas, with more than two-thirds of households using it as their primary heating fuel.

Minnesota’s natural gas prices are lower than most states, giving companies that rely on natural gas or production a significant cost advantage.

Source: Energy Information Administration, Natural Gas Monthly, August 2010.

Two major natural gas providers service the 11-county Metro MSP region:

• CenterPoint Energy Minnegasco, headquartered in Minneapolis, is the largest natural gas distribution company in the state.  The company operates 11,000 miles of gas-main lines and 10,000 miles of gas service lines. It sells and delivers natural gas to more than three million homes and businesses in Arkansas, Louisiana, Mississippi, Oklahoma, Texas and Minnesota – including the high-growth Metro MSP region.

• Xcel Energy, also headquartered in Minneapolis, is the fourth largest utility company in the nation. It serves electricity and natural gas customers in 12 states, generating revenues of $15 billion annually. It operates more than 31,000 miles of natural gas pipelines.

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Electricity

Minnesota has a well-earned reputation for highly reliable, low-cost electricity – especially compared to other regions of the country.

Source: Energy Information Administration, Form EIA-826, “Monthly Electric Sales and Revenue Report.” *2010 prices are estimates.

Two nuclear plants, both owned by Xcel Energy, generate more than a quarter of the electricity produced in the state. Coal-fired power plants account for another two-thirds.

Minnesota ranks second in the nation in the portion of electricity generated from wind.  It’s also a leading producer of ethanol. It generates electricity from other renewable sources as well – including conventional hydroelectric dams, municipal solid-waste and landfill gas, and wood waste.   

Four providers meet most of the electricity demands in the Metro MSP region:

• Xcel Energy is the nation's fourth largest utility company and its largest producer of wind energy. Xcel owns nearly 90,000 miles of electricity transmission and distribution lines and two nuclear power plants. It serves electricity and natural gas customers in 12 states.

• Great River Energy, based in Elk River, provides electricity to 28 member distribution cooperatives in Minnesota and Wisconsin. It owns more than 4,500 miles of transmission power lines and more than 100 transmission substations. Members serving the Metro MSP region include East Central Energy, Connexus Energy, Wright-Hennepin Electric Association, Minnesota Valley Electric Cooperative and Dakota Electric Association.

• Connexus Energy is the largest electric distribution cooperative in Minnesota. In the Metro MSP region, it serves residential and business customers in portions of Anoka, Chisago, Hennepin, Isanti, Ramsey, Sherburne, and Washington counties.

• Dakota Energy Association is a member-owned, nonprofit electric utility serving parts of Dakota, Scott, Goodhue and Rice counties on the south side of the Metro MSP region. With more than 100,000 members, it is the second largest electric cooperative in Minnesota. It also ranks among the 20 largest electric distribution cooperatives nationally.

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Water Services

The Metro MSP Region is one of the most water-rich regions in the nation. Hundreds of municipal water supply systems serve the region’s residential, commercial and industrial customers. Residential customers use about 70% of the water supplied by municipal systems. For current municiple rates, contact the individual cities.

Groundwater sources provide approximately two-thirds of the water consumed in the seven-county metro area. The Mississippi River serves as the primary water source for Minneapolis Water Works (MWW). The river supplies about 70% of the water used by Saint Paul Regional Water Services (SPRWS). The remainder is pumped from high-capacity wells.

The largest increases in water use are expected to occur in areas served by the MWW and the SPRWS, according to the Metropolitan Council’s Metropolitan Area Master Water Supply Plan. The next tier of increases is predicted for the fast-growing suburbs and urban growth centers. The projected rate of water use increases lags the population growth rate because of expected gains from efficiency and conservation efforts.  

The Metropolitan Council is working closely with water supply stakeholders to protect the region’s water supply and ensure that high-quality water is reliably available to meet projected growth needs of businesses and residents.

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