Xcel Energy on Monday proposed refunding Minnesota customers $318 million as the first use of a federal nuclear energy tax credit passed in 2022.

An Xcel Energy refund plan, if approved by regulators, will deliver $318 million back to Minnesota customers, the utility announced Monday. The proposed refund would mark the first time customers see savings from the federal tax credits on energy generated by Xcel's nuclear fleet.

(ABC 6 News) — On Monday, Xcel Energy proposed to deliver $318 million back to Minnesota customers on their bills. Most of the refund would come from federal tax credits on the energy bill generated by the company’s nuclear fleet.

Xcel Energy is giving its customers in Minnesota an average refund of $81. Most of the refund is coming from federal tax credits on the energy generated by the company’s nuclear fleet. The credits were created under the Inflation Reduction Act.

The Public Utilities Commission and Xcel Energy have settled on an energy plan aimed at lowering monthly bills forns and protecting the environment.

Xcel Energy says it expects to meet Minnesota’s carbon-free law five years early by shutting down its coal plants, extending the life of two nuclear plants, and building vast amounts of new wind, solar and battery power.

An energy company is proposing to give back millions to customers in refunds in March. Xcel Energy has announced it plans to refund $318 million dollars to customers