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Affordable Utilities_backup


Minnesota is one of very few states to exempts energy used in the manufacturing process from sales tax. The exemption includes natural gas, electricity and other utilities, providing bottom-line savings to heavy energy users.


Greater MSP offers significantly lower natural gas, electricity and water service rates 


Low-Cost Electricity

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


Regional (Census Division)



United States

12.15 cents per kWh 10.34 cents per kWh 6.65 cents per kWh


11.49 9.02 6.53

New England (CT, ME, MA, NH, RI, VT)

18.83 14.94 11.73

Middle Atlantic (NJ, NY, PA)

15.79 12.71 7.14

East North Central (IL, IN, MI, OH, WI)

12.28 9.75 6.79

West North Central (IA, KS, MN, MO, NE, ND, SD)

10.12 8.46 6.29

South Atlantic (DE, DC, FL, GA, MD, NC, SC, VA, WV)

11.3 9.57 6.37

East South Central (AL, KY, MS, TN)

10.44 10.26 5.6

West South Central (AR, LA, OK, TX)

10.78 8.07 5.99

Mountain (AZ, CO, ID, MT, NV, NM, UT, WY)

10.97 9.09 6.06

Pacific Continguous (CA, OR, WA)

13.48 12.39 7.81

Pacific Non-Contiguous (AK, HI)

26.5 24.26 24.32

Source: US Energy Information Administration; Average Retail Price of Electricity to Ultimate Customers by End-Use Sector, December  


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 (fourth largest utility company in the nation), service the 16-county Greater MSP region.


State2009 YTD Price (dollars per cubic feet)
Minnesota 6.43
Arizona 7.54
California 7.73
Florida 7.25
Illinois 7.94
Pennsylvania 9.21*
South Dakota 6.14

Source: Energy Information Administration, Natural Gas Annual, 2014. *Pennsylvania data for 2013; 2014 data not available.  


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. For current municipal rates, contact the individual cities.


Groundwater sources provide most of the water consumed in the 16-county Greater MSP region. The Mississippi River is the primary water source for the City of Minneapolis.


Energy Production

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


Two nuclear plants, both owned by Xcel Energy generate more than a quarter of the electricity produced in Minnesota. Coal-fired power plants account for another two-thirds of energy produced. The Twin Cities region also operates two petroleum refineries.


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.

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