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Understanding Your Residential Electric Bill

Your electric bill includes the cost of electricity generation. In Minnesota, 29% of electric energy generation comes from renewable sources. Other energy generation comes from a mix of natural gas, coal, and nuclear. Your electric bill also includes the costs of transmission and utility employees who provide service to customers. Customers also pay a small amount towards the purchase of supplement energy. Bills also include "riders"- additional charges for investments made by utilities for projects of immediate need which are pursued outside of a rate case proceeding.

Cost of Electricity


Average Residential Electric Bill

The average residential customer’s monthly electric bill, for rate-regulated utilities, shows seasonal increases and decreases. However, unlike gas bills, electric bills are less variable and generally are between about $90 and $150 per month for the average residential customer.

AvMoResElecBill2023 1

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