Business Incentive and Sustainability Rider

  • New and existing customers are now eligible to receive an immediate 40% electric demand rate reduction.

  • Incentives available for both new and existing customers.

Our Business Sustainability Rider is now available to new and existing commercial and industrial customers with new or additional load of 350kW or greater. All customers within our service territory qualify. Significant discounts apply to the customer’s regular demand-metered rate schedule in years one to five and resuming to normal charges in year six.

Who’s Eligible?
This program is available to any new or existing demand-metered commercial and industrial customers with significant new Qualified Billing Demand.

The rates and provisions of your regular demand-metered rate schedule apply except monthly demand charges for your Qualified Billing Demand, before the application of voltage discounts, your rate will be reduced as follows:

Years:                                     1 – 3               4                      5          6

Percent Reduction:             40%                20%                10%         0%


Qualified Demand Billing
The portion of your billing demand that qualifies for reduced demand charges. Qualified billing demand includes billing demands for standard demand, on-peak period demand, firm demand and controllable demand. Qualified billing demand does not include billing demands for off-peak period demand, distribution demand, transmission and distribution demand, contracted standby demand or contracted supplemental demand.

New Customers
This Rider is available for new load is associated with initial permanent service. The Qualified Billing Demand under this Rider must be a minimum of 350 kW at a single delivery point. The demand charge reduction will not apply during any month in which the Qualified Billing Demand is below 350 kW. However, the demand charge reduction will apply during any month in which the Qualified Billing Demand is below 350 kW as a consequence of new conservation or load control measures initiated by you.\

To be considered a new customer for this Rider, an applicant must demonstrate one of the following:

  1. Business has not been conducted at the premises for at least three monthly billing periods prior to your application;
  2. That the predecessor customer is in bankruptcy and the applicant has obtained the business in a liquidation of assets sale; or
  3. Your activities are largely or entirely different in nature from that of the previous customer.

Existing Customers
Qualified Billing Demand is the new load of 350 kW or greater at a single delivery point incremental to that existing prior to approval for service under this Rider. The demand charge reduction will not apply during any month in which the Qualified Billing Demand is below 350 kW.  However, the demand charge reduction will apply during any month in which the Qualified Billing Demand is below 350 kW as a consequence of new conservation or load control measures initiated by you.

Existing customers who materially increase their use of electric service may qualify for service under this Rider, provided the material increase is the result of the addition of equipment or expansion of the customer's facility or operations. You must notify us in writing and document the basis for the material increase in its use of electric service. Following that notification, we will review your monthly billing demands. If the billing demands for each of the next three consecutive months exceed that from the comparable monthly period of the preceding year by at least 350 kW at one delivery point, you will be eligible thereafter to receive service under this Rider. If your activities are very similar to previous activities, then you are considered to be an existing customer whether or not the owners, operators, or managers are substantially different.

As a condition of qualifying for a discount, you must make an application on a Commission approved form demonstrating that it meets the Qualified Billing Demand requirement. Information related to the Qualified Billing Demand and Investment is trade secret information under the Minnesota Government Data Practices Act (“Act”).

Right to Refuse Service
We reserve the right to refuse applicants for service under this Rider if it determines that significant additional capital expenditures will be required to provide service to that applicant. In such cases, an applicant may be able to qualify for service by making a non-refundable contribution to compensate for the significant additional capital costs incurred by us to supply service to the applicant.

Energy Efficiency
For service taken on this Rider, we will conduct an energy audit and inform you of the conservation programs available from us. You will be responsible for some portion of the cost of the energy audit. You must also participate in our Energy Assistance Design program or other energy efficiency program.

Electric Service Agreement
Any customer taking service under this Stimulation Rider shall execute an Electric Service Agreement, or amend their existing Electric Service Agreement with Xcel Energy for a period of six years beginning on the effective date on which the customer commences taking service under this Rider. Such Electric Service Agreements (new or amended) must state the increased or new load level of the customer as well as the customer's obligation to continue to purchase all of their electric power and electric energy from Xcel Energy during the term of the agreement. The effective date of service under this rider will be set forth in the Electric Service Agreement but not before three months of qualified billing demand has occurred after the application. The Electric Service Agreement entered into pursuant to this Agreement and provision of the discount is not subject to Commission Approval.

Reporting Requirement
No later than 30 days after the Company signs a new ESA with a customer to be served under the BIS Rider, Xcel Energy must file with the Commission a report showing the incremental revenues and the incremental costs associated with the new ESA. If no party objects to the ESA within 30 days of the filing date, the ESA is deemed to be approved. One year from the effective date of this tariff, and annually thereafter, the Company shall file a report with the Commission identifying the number of customers receiving service under this Rider and the associated incremental additional revenues received by Xcel Energy and the incremental additional costs experienced by Xcel Energy.

Revenue Recovery
Xcel Energy, within a general rate case, is allowed to seek recovery of the difference between the applicable commercial and industrial tariff and this Rider times the usage level during the test year period.