Xcel Energy (NASDAQ:XEL) is accelerating its transition away from fossil-fueled resources by proposing to add about 10 GW of renewable generation in its Minnesota and Colorado service territories.
Incoming CEO Bob Frenzel told financial analysts during Xcel’s second-quarter earnings call on Thursday that the company’s Northern States Power subsidiary has filed an alternative plan with Minnesota regulators that would retire all coal plants and reduce carbon emissions 85% by 2030 from 2005 levels, a 5-percentage point increase from a previous plan.
Xcel’s Colorado affiliate, Public Service Company of Colorado, submitted a proposal in March for a $1.7 billion, 560-mile, 345-kV transmission project it says will enable up to 5 GW of renewable generation in eastern Colorado.
Frenzel said during the call that he is only following in the footsteps of Ben Fowke, who is stepping down after 10 years as CEO on Aug. 18. (See Xcel Energy CEO Fowke to Retire.)
“I recognize the LeBron James-sized shoes that I’m filling,” said Frenzel, who joined Xcel five years ago and currently serves as president and COO. “Ben and I have worked closely on the development and the execution of our strategy, and that will not change. We’ll continue to lead the clean energy transition, enhance our customers’ experience and … constantly work to keep our customers bills low and deliver an affordable product.”
Frenzel said innovation “is more critical than ever” as the Minneapolis-based company moves toward its goal of 100% carbon-free electricity by 2050.
“It’s really been an amazing decade as CEO. … I’m really proud of the tremendous accomplishments we made as a company,” Fowke said. “It’s really hard to retire from a role that I’ve truly enjoyed, but I’m leaving the company in great hands.”
Xcel’s Minnesota resource plan calls for shutting down the A.S. King and Sherco 3 coal units in 2028 and 2030, respectively. The generators have a combined capacity of 1.3 GW. It would also add nearly 6.9 GW of solar, wind and storage resources and hydrogen-ready combustion turbines.
The Minneapolis-based company reported second-quarter earnings of $311 million ($0.58/share), compared to 2020’s second-quarter performance of $287 million ($0.54/share). That beat the Zacks Consensus Estimate of 56 cents/share.
Xcel’s share price spiked to $69.76 when the market opened Thursday but finished the week down at $68.25.
