Thousands of Minnesotans should expect their utility bills to increase this year.

Xcel Energy says it is raising its rates after the Minnesota Public Utilities Commission approved the move back in December.

The commission says electric bills will go up about $5 per month for the average household.

Xcel says it needs the money to help transition away from fossil fuels and build more wind turbines and solar panels.

The commission is still reviewing Xcel’s full request, which could raise rates nearly 10% this year and about 3% next year.

Meanwhile, Center Point Energy customers will also see their rates go up this month as state regulators are considering another proposed increase for 2025.

The state’s largest natural gas provider is seeking a rate increase of 3.7% for 2025, costing customers an additional $2.58 a month on average.

This comes as the Public Utilities Commission approved a 2.4% interim increase that went into effect on Jan. 1, 2025.