close
close
quic3f

Xcel Energy increases capital expenditures by more than 30%

Xcel Energy says it must increase infrastructure spending by $11 billion over the next five years to meet a confluence of challenges simultaneously hitting the electric power industry, from a major increase in the number of energy-hungry data centers to the transition to clean energy and damage from major storms and forest fires.

Just last year, Minneapolis-based Xcel said it would spend $34 billion between 2025 and 2030. But on Thursday it said it needed $45 billion to meet demand for its services — nearly 30% of which would be spent in Minnesota and the United States. Dakotas.

The company also said Thursday that it plans to file a new case on Minnesota electricity rates with Minnesota regulators on Friday to help pay for investments in the state in coming years. Xcel will ask for an increase of $491 million over two years – a 9.6% increase in 2025 and a 3.6% increase in 2026. The bill increases would be less than that percentage, according to Xcel, because the utility plans to pass on the savings from federal taxes. credits for nuclear energy generation.

“We as a company, we as an industry, are probably going to have to invest more quickly than we have in the past to keep up with reliability and secure service for our customer base,” Bob Frenzel, CEO of Xcel, said in an interview. “Our customers demand speed and scale. The climate requires speed and scale.”

Xcel’s latest investment plans require major investments in the aging power grid. Approximately 63% of expenditures over the next five years will fund upgrades and additions intended to modernize and strengthen Xcel’s transmission and distribution system. That will help Xcel transport wind and solar energy over long distances and protect it from severe weather, wildfires and what the company describes as national security concerns.

Xcel’s territory spans eight states, including Texas and Colorado, where devastating wildfires have occurred in recent years and led to lawsuits against the company.

The investment plan was announced Thursday along with the release of Xcel’s third-quarter earnings report.

Xcel Energy reported revenue of $3.64 billion for the quarter ended September 2024, a year-over-year decline of 0.5%. Net income was $682 million, or $1.21 per share, compared to $656 million, or $1.19 per share. Current earnings, excluding one-time events, were $1.25 per share, beating Wall Street estimates.

Related Articles

Back to top button