Xcel Energy CEO Bob Frenzel told financial analysts Feb. 6 that the Trump administration’s energy-related executive orders will have little effect on the company’s operations.
Frenzel reminded analysts during the company’s fourth-quarter conference call that Xcel doesn’t have any wind projects offshore or on federal lands and that its permitting needs for wind, solar and storage assets are “relatively light.”
“I think we’ll be able to work through it all, and I’m optimistic that our capital plans for 2025 and beyond are going to remain intact,” he said. “We’ll be able to work with the administration and all the agencies to make progress here.
“We need to be able to move very quickly on building our infrastructure and making sure that we can serve our customers. Look, we support permitting reform broadly at a national and even state and local levels in order to be able to build the infrastructure we need to meet this era of growth.”
Xcel faces 30% expected load growth over the next five years. It has added $10 billion of additional capital investment to its base five-year plan, now at $45 billion. Transmission plans approved by MISO and SPP in December will require as much as $4 billion in capital investments, Frenzel said.
The company in November completed the first phase of solar installations at its Sherco plant site, where Xcel is in the process of retiring three coal units. They will be replaced by a 710-MW solar facility that Frenzel said would be the largest in the upper Midwest.
Xcel reported year-end earnings of $1.94 billion ($3.44/share), compared with $1.77 billion ($3.21/share) in 2023. It said the year-over-year earnings growth reflected increased recovery of infrastructure investments, partially offset by higher depreciation, interest charges and operations and maintenance expenses.
The company said adjusted earnings per share were $0.81 for the fourth quarter. That fell short of the analyst consensus of $0.89/share. Revenue for the quarter was $3.12 billion, also below the consensus estimate of $3.77 billion.
Xcel’s share price closed at $67.12, dropping 83 cents on the day from its previous close.
