What is the Distributed Energy Resources (DER) System Upgrade Program?  

It is a program funded by the Minnesota Legislature to support upgrades to Xcel Energy's distribution system to maximize the number and capacity of distributed energy resources that can be interconnected sufficient to serve projected demand.  

Background 

During the 2023 Legislative session, the Minnesota Legislature established the Distributed Energy Resources (DER) System Upgrade Program (Minnesota Statute 216C.378). The program required Northern States Power Company, doing business as Xcel Energy, to file a plan for the DER System Upgrade Program with the Minnesota Department of Commerce.  

Xcel Energy filed its initial proposal in November 2023. Commerce filed its decision approving Xcel to move forward with six grid upgrade projects in March 2025 at an estimated cost of $9,660,000. On January 30, 2026, Xcel Energy filed Supplemental Comments requesting a modification of the approved plan due to rising cost estimates and other factors. 

On April 29, 2026, Commerce ordered Xcel Energy to move forward with previously-approved updates at the Chisago Substation, Northfield Substation, and St. Cloud Substation. The estimated combined cost of these upgrades is $2,115,000. The projects are projected to add enough grid capacity to support 1,040 potential new 40 kW energy projects. Commerce also noted that it would work with Xcel to identify cost effective solutions with the remaining program budget.  

Track filings on eDockets (eDockets / Public Utilities Commission): Docket No. E002/M-23-458 

Current Status  

As of July 2026, Commerce and Xcel Energy are working to finalize the contract to begin work on the Chisago Substation, Northfield Substation, and St. Cloud Substation updates.