By Tom Kleckner
Xcel Energy stressed its renewable credentials Thursday following the release of its second-quarter earnings, detailing recent developments that will lessen its reliance on fossil fuels.
“We are excited by the opportunity to create a cleaner sustainable energy future for our customers,” CEO Ben Fowke said during a conference call.
In July, the company filed with the Minnesota Public Utilities Commission its Upper Midwest resource plan, which calls for the retirement of the King and Sherco 3 coal plants, extending the life of the Monticello nuclear plant to 2040, and the acquisition of a combined cycle natural gas facility and construction of another. The plan would also add 4 GW of solar and 1.2 GW of wind energy as a replacement for the closed plants, putting its Northern States Power Company-Minnesota subsidiary on a path to be 100% carbon-free by 2050.
A second Xcel subsidiary, Southwestern Public Service, energized the 478-MW Hale Wind Project on time and under budget, the company said. Another wave of renewable projects is expected to be completed between 2019 and 2021. In Colorado, the legislature passed a bill that will allow Public Service Company of Colorado to pass on the cost of its plans to reach 80% and 100% carbon-free electricity by 2030 and 2050, respectively.
The positive news was offset by Xcel’s earnings, which fell 7 cents short of Zacks Equity Research’s expectations. The company reported earnings of $238 million ($0.46/share), a drop from last year’s $265 million ($0.52/share).
Executives blamed the showing on unfavorable weather and increased depreciation, interest, and operating and maintenance expenses.
Fowke said the company is still “well positioned” to deliver earnings at or above the midpoint of its 2019 guidance range of $2.55 to 2.65/share. “We are very confident we will deliver on our financial objectives as we have in the past,” he said.
Investors reacted positively, driving Xcel’s stock price up $1.91 to $60.76.
