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Affordable Utilities

Energy used in manufacturing is tax-exempt in Minnesota.

Bottom-line savings for energy users

Minnesota exempts energy used in the manufacturing process from sales tax. The exemption includes natural gas, electricity and other utilities, which means significantly lower rates for thousands of businesses.

Industrial and Agricultural Production

Electricity, gas, steam, or water used or consumed in agricultural or industrial production is exempt from sales and use tax if it is necessary to produce a particular product and in excess of the average climate control or lighting for the production area.

Qualified Data Centers

Electricity used to operate a qualified data center is exempt after the project is certified by the Minnesota Department of Employment and Economic Development.


A well-earned reputation for reliability and low cost.

Greater MSP has highly competitive industrial and commercial electricity, and natural gas rates, as well as rich access to broadband, water services and renewable energy. Learn more below.

Low-Cost Electricity

Competitive Natural Gas

Minnesota’s natural gas prices are lower than most states, giving Greater MSP companies a major cost advantage. Two major natural gas providers, CenterPoint Energy and Xcel Energy (the fourth largest utility company in the nation), service the 15-county Greater MSP region.


Water Services

Greater MSP is one of the most water-rich regions in the nation. Hundreds of municipal water supply systems serve the Twin Cities’ commercial, industrial and residential customers.

The Mississippi River and three aquifers provide most of the water consumed in the 15-county Greater MSP region. The region is unique among major metropolitan areas in that it rests atop a groundwater flow system that provides abundant groundwater and surface water supplies, and enables the metro to manage its own drinking water resources.

Metropolitan Council Environmental Services provides wastewater services to a large portion of the region. It consistently achieves high sustainability standards while holding rates 40% below the national average – significantly reducing purchased costs.

Energy Production

Minnesota ranks 7th in the nation for installed capacity for electricity generated from wind and 8th for share of electricity produced from wind. It’s also a leading producer of ethanol.

Two nuclear plants, both owned by Xcel Energy, generate 23 percent of the electricity produced in Minnesota. Coal-fired power plants account for 37 percent of energy produced. The Twin Cities region also operates two petroleum refineries.

Sources: Minnesota Department of Revenue, Sales Tax Factsheet, Utilities Used in Production, http://www.revenue.state.mn.us/businesses/sut/factsheets/FS129.pdf. American Wind Energy Association, Wind Energy State

Facts, https://www.awea.org/Awea/media/Resources/StateFactSheets/Minnesota.pdf . Nuclear Energy Institute, Fact Sheets, Minnesota, https://www.nei.org/resources/fact-sheets/minnesota


Two providers supply most of the commercial and industrial electricity used in the Greater MSP region: Xcel Energy and Great River Energy, with its network of cooperatives. Municipal providers are available in some locations and can be found at