Minnesotans need to put a stop to the Orwellian plan known as the “Natural Gas Innovation Act” or NGIA, which became law in 2021. It is aimed at forcing most homes and workplaces onto an electricity grid, that is increasingly unaffordable and unreliable due to renewables.
The so called innovations to replace natural gas include absurd green technologies like heat pumps. This is at a time when electricity in MN is several times more expensive than natural gas. And this state is not alone, as at least a dozen others are looking to do the same.
CenterPoint Energy and Xcel Energy both filed NGIA annual reports with the Public Utilities Commission (PUC), on June 1st and 15th respectively. I focus here on Xcel’s NGIA report for 2025, with a view to subsequently and separately examining CenterPoint’s NGIA report.
Xcel’s NGIA overview
Xcel’s annual NGIA report is for the period of May 16 to December 31 of 2025. The former date is when the PUC issued the NGIA Plan Order. Xcel points out on page 1 that: “Most of the Company’s efforts during this time focused on planning, project design, and contract negotiations for the projects.” The report is 113 pages in length, and is structured as follows:
- Letter (P0) and Introduction (P1);
- Section I: Overview (P1-P2);
- Section II: Early Progress Summary (P2-P3);
- Section III: Quantitative Results (P3-P11);
- Section IV: Cost Effectiveness Objectives (P11-P18);
- Section V: Pilots (P18-P44);
- Section VI: R&D Projects (P44-P48);
- Section VII: Plan Modifications (P48);
- Section VIII: NGIA Tracker and Adjustment Factor (P48);
- Section IX: Federal Actions (P49);
- Exhibit A: Compliance Matrix (P50-P59);
- Exhibit B: Updated NGIA Tracker and 2027 Rate (P60-P81);
- Exhibit C: Tariff Updates (P82-85);
- Exhibit D: Federal Actions Update (P86-90);
- Certificate of Service (P91) and List of Persons (P92-P113).
On pages 2-3, Xcel summarises early progress on: Renewable Natural Gas [RNG]; Urban Tree Planting; Strategic Electrification; Thermal Energy Network; and Hydrogen Blending CRADA R&D Project. The CRADA project “will not be proceeding [as] there have been changes in the industry including economic feasibility concerns…and challenges to scalability.”
Xcel’s NGIA highlights
Xcel reports on 13 pilots and 6 research and development (R&D) projects. These are:
- Dem-Con HZI RNG (P19-P20);
- Sauk Centre RNG (P20-P22);
- Amp-Swift RNG (P22-P23);
- Pine Bend RNG [landfill biogas] (P23-P25);
- Sherco 5MW Hydrogen (P25-P27);
- Green Cities Accord (P27-P30);
- Dem-Con HZI Biochar (P30-P31);
- Advanced Methane Leak Detection (P31-P32);
- Custom Projects for Large Customers (P33-P35);
- PIIC [Prairie Island Indian Community] (P35-P37);
- Utility Thermal Energy Network [UTEN] (P38-P41);
- Commercial ASHP [Air Source Heat Pump] + Storage (P41-P43);
- Strategic Electrification for Income Qualified (IQ) Customers (P43-P44);
- Gasification SET [Singularity Energy Technologies] Partnership (P44-P45);
- RNG Potential Study (P45-P46);
- Very Low GWP [Global Warming Potential] Refrigerants (P46);
- Industrial Heat Pump [IHP] Field Trial (P46-P47);
- Heat Recovery Steam Generator (HRSG) Ammonia Test Burn (P47);
- Continuous Exterior Insulation Retrofit (P47-P48).
Highlights from these projects and pilots include:
- Re Sherco 5MW Hydrogen: “the hydrogen equipment supplier space has narrowed as a result of declining general market enthusiasm for green hydrogen systems.”
- Re Custom Projects for Large Customers: “the Company did not have any large customer electrification projects that failed the ECO [Energy Conservation and Optimization] screening criteria, so did not implement any projects in this Pilot.”
- Re PIIC: “There are limited equipment options with both furnaces and heat pumps that physically fit in the unique spaces of manufactured homes [and we have] yet to find a heat pump water heater that can be installed, primarily due to space constraints.”
- Re UTEN: “At a high level, the Company hopes to learn more about whether this technology can be used to decarbonize our gas utility system, cost effectively, at scale.”
- Re IHP: “Locating an IHP customer has been challenging…because, even if an IHP is a good technical solution that supports decarbonization, in many instances the payback period and/or increased electric charges are not financially beneficial to the customer.”
Xcel’s NGIA costs
As per page 60, Xcel is looking to recover the following level of NGIA costs from rate payers:
- $54,334,960 spend between 2025 and 2029, with 94% pilots, 5% R&D and 1% admin;
- $981,881 has been spent in 2025, with 91% pilots, 3% R&D and 6% admin;
- 2027 has the largest anticipated spend of $18,363,124, with 91% pilots and 9% R&D.
Xcel is seeking to monetize their NGIA spending, through rate increases in natural gas tariffs for all customer classes, to take effect from January 1, 2027. These are found on page 83 as follows:
- Residential: 6% increase from $0.017214 to $0.018269 per therm;
- Commercial Firm: 9% decrease from $0.010520 to $0.009594 per therm;
- Commercial Demand Billed: 408% increase from $0.001194 to $0.006063 per therm;
- Interruptible: 142% increase from $0.006601 to $0.015966 per therm.
There is also a natural gas rate case before the PUC, with a final decision expected by November 30, 2026. Xcel’s current rates for 2026 reflect a PUC interim decision, that allows for an annual 6.8% increase of $51.47 million. But Xcel is seeking a 8.2% increase of $63.40 million.
Have your say, on NGIA
I read this long and dull report so you did not have to. The key takeaway is Xcel and the PUC are the conduits through which natural gas is intended to one day end in this state. It is about time Minnesotans of all political stripes … who prefer to keep their places warm, showers hot, clothes dry and food cooked … take a public stand and say, “Hands off my gas!“
The PUC issued a “Notice of Comment Period” on June 23, 2026 for Xcel as follows:
- Party Initial comment period closes August 19, 2026 at 4:30pm;
- Utility Reply comment period closes September 18, 2026 at 4:30pm;
- Party Reply comment period closes October 21, 2026 at 4:30pm.
Anyone from the public can and should comment. Not just on the details of the plans and reports, but also on the ends, means and costs of the NGIA. One can submit comments here:
- Online: https://mn.gov/puc/get-involved/public-comments/, and follow the instructions.
- Email: [email protected]
- U.S. Mail: Consumer Affairs Office, Minnesota Public Utilities Commission, 121 7th Place East, Suite 350, St. Paul MN 55101