Minnesota Utilities Report Above Average Profits Amid Rising Power Bills
A report indicates that Otter Tail Power and Xcel Energy, two of Minnesota's investor-owned utilities, earned profits above the industry average in 2024 and 2025. Otter Tail Power reported a profit margin of 17 cents per dollar, while Xcel's subsidiaries reported 17 cents in 2024 and 15 cents in 2025. The average profit margin for 110 utilities was 12.8% from 2021 to 2024. The report suggests that utilities will benefit from an investment boom, with projected spending of $1.4 trillion from 2025 to 2030.
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Otter Tail Power and Xcel Energy reported profits above the industry average, with Otter Tail earning 17 cents and Xcel 17 cents in 2024 and 15 cents in 2025. In contrast, Minnesota Power's parent company, Allete, earned 13 cents per dollar in 2024.
The average profit margin for 110 investor-owned utilities was 12.8% from 2021 to 2024. The utilities are expected to invest $1.4 trillion from 2025 to 2030, driven by the AI infrastructure boom. Xcel Energy invested $3.4 billion in Minnesota and the Dakotas last year. The report recommends measures to limit utility profit margins and adjust return on equity.
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