State Energy Guide

Minnesota Commercial Energy & Utility Guide

Commercial electricity and gas rates, energy market structure, regulations, and utility providers for property managers operating in Minnesota.

Energy Market Overview

Regulated MarketMN

Minnesota has a regulated electricity market served primarily by Xcel Energy (Northern States Power) and several municipal and cooperative utilities. CenterPoint Energy provides natural gas distribution in the Twin Cities metro. Commercial customers cannot choose their electricity supplier.

What this means for property managers:

In Minnesota's regulated market, your utility provides both generation and distribution at rates set by the state public utility commission. While you cannot choose your electricity supplier, you can optimize costs through rate schedule analysis, demand management, and participation in utility efficiency programs.

Regulated Market

Rates are set by the public utility commission. No supplier choice available.

Average Commercial Energy Rates

$0.12Avg. Commercial Electric
$0.90Avg. Commercial Gas

Rising

Moderate rate increases (6% in 2025) driven by renewable energy portfolio expansion and transmission infrastructure investment. Natural gas rates volatile due to winter heating demand.

Energy Regulations & Benchmarking

No Statewide Benchmarking

Minnesota does not have a statewide benchmarking mandate, but Minneapolis has enacted its Commercial Building Energy Benchmarking and Transparency Ordinance requiring annual energy disclosure for commercial buildings over 50,000 sqft. The state's Clean Energy First policy directs utilities to consider renewable energy before fossil fuel investments. Minnesota's 2023 energy law targets 100% carbon-free electricity by 2040.

Cities in Minnesota

Utility Providers in Minnesota

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