Xcel proposes $430M distributed battery network
Xcel Energy filed with the Minnesota Public Utilities Commission to recover costs for a new distributed battery program, Capacity*Connect, that would deploy dozens of 1-3 MW batteries at commercial sites statewide and scale to 50-200 MW by 2028, forming a utility-controlled virtual power plant. Xcel says the plan will bolster reliability and help meet the 2040 carbon-free mandate while shifting purchases to lower-cost periods, but watchdogs question the value for ratepayers and note Xcel's Colorado virtual power plant is far cheaper per megawatt and includes broader customer-side resources.
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📌 Key Facts
- Xcel seeks PUC approval to recover eligible program costs; estimated up to $430 million over three years.
- Capacity*Connect would start with utility‑owned batteries (1–3 MW each) at commercial sites, scaling to 50–200 MW by 2028.
- Critics cite Xcel’s own analysis showing benefits slightly below costs and point to a lower‑cost Colorado VPP as a model.
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November 13, 2025