Xcel Energy's tax cut will be passed on to customers starting next month

Xcel Energy customers should see one tax refund next month tied to the federal tax cuts passed at the end of 2017.

The Minnesota Public Utilities Commission (PUC) on Thursday signed off on a plan to distribute the money.

Commissioners had ordered in August that Xcel pass along to its customers a large windfall from the big corporate tax cuts included in the overhaul. Other Minnesota electric and gas utilities were told to do the same.

Last summer, Minneapolis-based Xcel had said it expected to issue the refunds by the end of 2018. But by the close of the year, the company was still working on a method to return the money.

"We are pretty far down the road on this and really want to get these rebates out to customers as soon as possible," Commissioner Matt Schuerger said at Thursday's PUC meeting.

Xcel's average residential electricity customer — someone who pays $85 to $95 a month — will receive a one-time bill credit of $43.48 for 2018, according to the company. Xcel's average gas heat customer will get a bill credit of $8.38 for 2018.

The company said it expects to start issuing 2018 tax refunds to electricity customers in May and gas patrons in July.

Around 30% of that money should flow to Xcel's electricity customers this fall through a bill credit. The majority of the refund will be reflected in base rates on June 1.

Customers of other Minnesota electric and gas utilities will get tax refunds on their monthly bills, or through downward adjustments to their rates.

Utilities are usually monopolies, so their profits are regulated. Minnesota is one of many states where regulators have told utilities to pass on savings from the 2017 tax cut, which reduced the U.S. corporate rate from 35% to 21%.