Xcel Energy last week reported year-end earnings of $1.372 billion ($2.64/share), up from 2018’s performance of $1.261 billion ($2.47/share) and marking the 15th straight year the company has met or exceeded its guidance.
Minneapolis-based Xcel attributed the positive results to favorable regulatory rulings in its utilities’ states. Colorado’s Public Utilities Commission verbally awarded Xcel a $41.5 million rate increase and a 9.3% return on equity, below its requests of $158 million and 10.2%. In December, Minnesota’s PUC approved a one-year deferment of Xcel’s three-year $465 million rate case.
“I would challenge anybody to find a utility that is more focused and has … 100% of their growth coming from regulated operations,” CEO Ben Fowke said during a conference call with analysts Thursday. “There’s nobody that’s more pure-play and vertically integrated than Xcel Energy, and that’s the way we mean to keep it.”
Fowke said Xcel’s operations and maintenance costs were down almost 1%, “even while making incremental investments in our system,” and noted three wind projects, representing almost 700 MW of capacity, were completed under budget. The company has another 2 GW of wind projects under construction, he said.
For the quarter, Xcel posted earnings of $292 million ($0.56/share), as compared to 2018’s final quarter earnings of $215 million ($0.42/share).
The company’s share price opened down at $67.10 on Thursday but finished the week at $69.19, after setting a new all-time high of $69.52 Friday morning.
— Tom Kleckner
