Minnesota AG Office Slams Google-Xcel Data Center Deal as 'Unfair'

The Minnesota Attorney General's Office has expressed concerns about a proposed deal between Xcel Energy and Google for supplying electricity to Google's Pine Island data center.

In a press release, the office stated that Xcel has not shown that the deal is fair or meets the requirements of state law. According to the office, ratepayers could end up facing billions of dollars in costs under the deal between Xcel and Google.

The Attorney General's Office pointed out two main problems with the deal. First, they believe Xcel has not shown proof that Google is willing to pay all of the costs tied to running the data center for the life of the deal. Minnesota law requires all costs tied to a utility's largest customers to be charged to those customers, not to other ratepayers.

The office also argued that Xcel has not proved that other customers will be protected from covering leftover costs if Google uses less power or leaves Xcel's system. These are known as stranded costs, and the Attorney General's Office estimated that potential stranded costs to Xcel's individual and small-business customers could reach billions of dollars once the 15-year contract ends.

The office asked Xcel to provide more information to address these risks and protect ratepayers. They also raised concerns about a lack of transparency in the case, saying Xcel has blacked out information about the costs of serving Google and has not explained why.