Minnesota residential electricity rates

Analyst note

The Minnesota residential price sat above the U.S. average in 5 of 10 years; the gap was -0.53 ¢ in 2015 and -1.03 ¢ in 2024. In the 2024 ranking Minnesota sits between Illinois (15.87 ¢) one place above and Alabama (15.18 ¢) one place below; the top of the list is 27.41 ¢ away and the bottom 3.94 ¢. Minnesota was 25th in 2015 with 12.12 ¢ and is 20th now; a rise in the table. Minnesota residential prices rose in 8 of 9 years. The largest rise was +5.6% in 2022, and the largest fall -0.8% in 2019. The Minnesota price peaked at 15.45 ¢ in 2024 and bottomed at 12.12 ¢ in 2015; 2024 is the peak and +27.5% from the low. Compounded, that is +2.73% a year in Minnesota, -0.25 points against the U.S. Minnesota buys 1.49% of all U.S. residential electricity with 1.80% of the accounts, so the average Minnesota account uses 0.83 times the national average.

A middle price: 15.45 ¢/kWh for Minnesota residential accounts, rank 20 of 51, -6.3% against the U.S. Minnesota: +27.5% over nine years, or +2.7% a year, matching the national +30.3% by 2.8 points; 2022 was the biggest single move (+5.6%) and 2024 the high.

Last year's change in Minnesota was +4.9% and still rising. Against the commercial price of 12.15 ¢ the gap is 3.30 ¢. Residential sales are 34.2% of Minnesota electricity sold, and an average Minnesota account used 712 kWh a month, an implied bill near $110.

Counting revenue instead of kWh, Minnesota residential accounts bring in 42.8% of Minnesota sector revenue on 34.2% of the kWh, a premium of 8.6 points that comes from the price level: 15.45 ¢ here against 12.15 ¢ for commercial and 9.15 ¢ for industrial accounts. The average Minnesota residential account uses 712 kWh a month, 34 of 51 among states on that measure; a commercial account uses 8.52 times as much and a industrial account 248.85 times. Residential accounts are 89.04% of the 2,899,050 accounts in Minnesota.