Xcel Energy Third Quarter 2024 Earnings Report
Xcel Energy (XEL) reported third quarter 2024 GAAP earnings of $682 million ($1.21 per share), up from $656 million ($1.19 per share) in 2023. Ongoing earnings reached $707 million ($1.25 per share), compared to $682 million ($1.23 per share) in 2023. The company reaffirmed its 2024 ongoing EPS guidance of $3.50-$3.60 and initiated 2025 EPS guidance of $3.75-$3.85. Xcel Energy announced a new $45 billion investment plan over five years, targeting long-term annual EPS growth of 6-8% and dividend growth of 4-6%.
Xcel Energy (XEL) ha riportato utili GAAP per il terzo trimestre del 2024 per 682 milioni di dollari (1,21 dollari per azione), in aumento rispetto ai 656 milioni di dollari (1,19 dollari per azione) del 2023. Gli utili continuativi hanno raggiunto 707 milioni di dollari (1,25 dollari per azione), rispetto ai 682 milioni di dollari (1,23 dollari per azione) del 2023. L'azienda ha ribadito la sua previsione di utili per azione continuativi per il 2024 di 3,50-3,60 dollari e ha avviato una previsione per il 2025 di 3,75-3,85 dollari. Xcel Energy ha annunciato un nuovo piano di investimento da 45 miliardi di dollari su cinque anni, mirando a una crescita annuale degli utili per azione a lungo termine del 6-8% e a una crescita dei dividendi del 4-6%.
Xcel Energy (XEL) reportó ganancias GAAP del tercer trimestre de 2024 de 682 millones de dólares (1,21 dólares por acción), un aumento respecto a los 656 millones de dólares (1,19 dólares por acción) en 2023. Las ganancias continuas alcanzaron 707 millones de dólares (1,25 dólares por acción), en comparación con 682 millones de dólares (1,23 dólares por acción) en 2023. La empresa reafirmó su guía de ganancias por acción continuas para 2024 de 3,50-3,60 dólares e inició la guía de ganancias por acción para 2025 de 3,75-3,85 dólares. Xcel Energy anunció un nuevo plan de inversión de 45 mil millones de dólares durante cinco años, con el objetivo de lograr un crecimiento anual de ganancias por acción a largo plazo del 6-8% y un crecimiento de dividendos del 4-6%.
Xcel Energy (XEL)은 2024년 3분기 GAAP 수익이 6억 8200만 달러 (주당 1.21 달러)로, 2023년의 6억 5600만 달러 (주당 1.19 달러)에서 증가했음을 보고했습니다. 계속적인 수익은 7억 700만 달러 (주당 1.25 달러)에 도달했으며, 이는 2023년의 6억 8200만 달러 (주당 1.23 달러)와 비교됩니다. 이 회사는 2024년 계속 EPS 지침을 3.50-3.60 달러로 재확인하고 2025년 EPS 지침을 3.75-3.85 달러로 시작했습니다. Xcel Energy는 5년 동안의 450억 달러 투자 계획을 발표했으며, 연간 장기 EPS 성장 목표는 6-8%, 배당 성장 목표는 4-6%입니다.
Xcel Energy (XEL) a annoncé des bénéfices GAAP pour le troisième trimestre 2024 de 682 millions de dollars (1,21 dollar par action), en hausse par rapport à 656 millions de dollars (1,19 dollar par action) en 2023. Les bénéfices récurrents ont atteint 707 millions de dollars (1,25 dollar par action), comparé à 682 millions de dollars (1,23 dollar par action) en 2023. L'entreprise a confirmé sa prévision de bénéfice par action récurrent pour 2024 de 3,50-3,60 dollars et a lancé une prévision de bénéfice par action pour 2025 de 3,75-3,85 dollars. Xcel Energy a annoncé un nouveau plan d'investissement de 45 milliards de dollars sur cinq ans, avec un objectif de croissance annuelle des bénéfices par action à long terme de 6-8% et de croissance des dividendes de 4-6%.
Xcel Energy (XEL) berichtete für das dritte Quartal 2024 von GAAP-Gewinnen in Höhe von 682 Millionen US-Dollar (1,21 US-Dollar pro Aktie), ein Anstieg von 656 Millionen US-Dollar (1,19 US-Dollar pro Aktie) im Jahr 2023. Die fortlaufenden Gewinne erreichten 707 Millionen US-Dollar (1,25 US-Dollar pro Aktie), im Vergleich zu 682 Millionen US-Dollar (1,23 US-Dollar pro Aktie) im Jahr 2023. Das Unternehmen bekräftigte seine Schätzung für den fortlaufenden Gewinn pro Aktie (EPS) für 2024 von 3,50-3,60 US-Dollar und leitete die EPS-Prognose für 2025 von 3,75-3,85 US-Dollar ein. Xcel Energy kündigte einen neuen Investitionsplan über 45 Milliarden US-Dollar über fünf Jahre an, mit dem Ziel, ein langfristiges jährliches EPS-Wachstum von 6-8% und ein Dividendenwachstum von 4-6% zu erzielen.
- Q3 2024 GAAP earnings increased by 4% to $682 million
- Q3 2024 ongoing earnings grew by 3.7% to $707 million
- Company maintains strong 2024 EPS guidance of $3.50-$3.60
- Positive 2025 EPS guidance of $3.75-$3.85 indicates continued growth
- Announced substantial $45 billion five-year investment plan
- Higher depreciation and interest charges affecting earnings
Insights
A solid quarter showcasing steady growth in a challenging environment. The
The ambitious
Key focus areas remain managing rising interest costs and depreciation expenses while ensuring timely recovery of infrastructure investments through rate cases. The company's commitment to cost management while pursuing aggressive clean energy transition and grid modernization will be important for maintaining financial targets.
-
Third quarter GAAP earnings per share were
in 2024 compared with$1.21 in 2023.$1.19 -
Third quarter ongoing earnings per share were
in 2024 compared with$1.25 in 2023.$1.23 -
Year-to-date GAAP earnings per share for 2024 were
compared to$2.63 in 2023.$2.47 -
Year-to-date ongoing earnings per share for 2024 were
compared to$2.69 in 2023.$2.52 -
Xcel Energy reaffirms its 2024 ongoing EPS guidance of
to$3.50 .$3.60 -
Xcel Energy initiates 2025 ongoing EPS guidance of
to$3.75 .$3.85 -
Xcel Energy’s long-term annual growth objectives reflects EPS growth of 6 to
8% and dividend growth of 4 to6% .
Third quarter ongoing earnings reflect recovery of increased infrastructure investments, partially offset by increased depreciation and interest charges.
“The
“Today, Xcel Energy introduced its new five-year,
At 9:00 a.m. CDT today, Xcel Energy will host a conference call to review financial results. To participate in the call, please dial in 5 to 10 minutes prior to the start and follow the operator’s instructions.
US Dial-In: |
1 (866) 580-3963 |
International Dial-In: |
(400) 120-0558 |
Conference ID: |
7505923 |
The conference call also will be simultaneously broadcast and archived on Xcel Energy’s website at www.xcelenergy.com. To access the presentation, click on Investors under Company. If you are unable to participate in the live event, the call will be available for replay from Nov. 1st through Nov. 4th.
Replay Numbers |
|
US Dial-In: |
1 (866) 583-1035 |
Access Code: |
7505923# |
Except for the historical statements contained in this report, the matters discussed herein are forward-looking statements that are subject to certain risks, uncertainties and assumptions. Such forward-looking statements, including those relating to 2024 and 2025 EPS guidance, long-term EPS and dividend growth rate objectives, future sales, future expenses, future tax rates, future operating performance, estimated base capital expenditures and financing plans, projected capital additions and forecasted annual revenue requirements with respect to rider filings, expected rate increases to customers, expectations and intentions regarding regulatory proceedings, expected pension contributions, and expected impact on our results of operations, financial condition and cash flows of interest rate changes, increased credit exposure, and legal proceeding outcomes, as well as assumptions and other statements are intended to be identified in this document by the words “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “objective,” “outlook,” “plan,” “project,” “possible,” “potential,” “should,” “will,” “would” and similar expressions. Actual results may vary materially. Forward-looking statements speak only as of the date they are made, and we expressly disclaim any obligation to update any forward-looking information. The following factors, in addition to those discussed in Xcel Energy’s Annual Report on Form 10-K for the fiscal year ended Dec. 31, 2023 and subsequent filings with the Securities and Exchange Commission, could cause actual results to differ materially from management expectations as suggested by such forward-looking information: operational safety, including our nuclear generation facilities and other utility operations; successful long-term operational planning; commodity risks associated with energy markets and production; rising energy prices and fuel costs; qualified employee workforce and third-party contractor factors; violations of our Codes of Conduct; our ability to recover costs and our subsidiaries’ ability to recover costs from customers; changes in regulation; reductions in our credit ratings and the cost of maintaining certain contractual relationships; general economic conditions, including recessionary conditions, inflation rates, monetary fluctuations, supply chain constraints and their impact on capital expenditures and/or the ability of Xcel Energy Inc. and its subsidiaries to obtain financing on favorable terms; availability or cost of capital; our customers’ and counterparties’ ability to pay their debts to us; assumptions and costs relating to funding our employee benefit plans and health care benefits; our subsidiaries’ ability to make dividend payments; tax laws; uncertainty regarding epidemics, the duration and magnitude of business restrictions including shutdowns (domestically and globally), the potential impact on the workforce, including shortages of employees or third-party contractors due to quarantine policies, vaccination requirements or government restrictions, impacts on the transportation of goods and the generalized impact on the economy; effects of geopolitical events, including war and acts of terrorism; cybersecurity threats and data security breaches; seasonal weather patterns; changes in environmental laws and regulations; climate change and other weather events; natural disaster and resource depletion, including compliance with any accompanying legislative and regulatory changes; costs of potential regulatory penalties and wildfire damages in excess of liability insurance coverage; regulatory changes and/or limitations related to the use of natural gas as an energy source; challenging labor market conditions and our ability to attract and retain a qualified workforce; and our ability to execute on our strategies or achieve expectations related to environmental, social and governance matters including as a result of evolving legal, regulatory and other standards, processes, and assumptions, the pace of scientific and technological developments, increased costs, the availability of requisite financing, and changes in carbon markets.
This information is not given in connection with any sale, offer for sale or offer to buy any security.
XCEL ENERGY INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (amounts in millions, except per share data) |
||||||||||||||||
|
|
Three Months Ended Sept. 30 |
|
Nine Months Ended Sept. 30 |
||||||||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Operating revenues |
|
|
|
|
|
|
|
|
||||||||
Electric |
|
$ |
3,393 |
|
|
$ |
3,387 |
|
|
$ |
8,737 |
|
|
$ |
8,751 |
|
Natural gas |
|
|
239 |
|
|
|
245 |
|
|
|
1,535 |
|
|
|
1,926 |
|
Other |
|
|
12 |
|
|
|
30 |
|
|
|
49 |
|
|
|
87 |
|
Total operating revenues |
|
|
3,644 |
|
|
|
3,662 |
|
|
|
10,321 |
|
|
|
10,764 |
|
|
|
|
|
|
|
|
|
|
||||||||
Operating expenses |
|
|
|
|
|
|
|
|
||||||||
Electric fuel and purchased power |
|
|
1,060 |
|
|
|
1,181 |
|
|
|
2,863 |
|
|
|
3,328 |
|
Cost of natural gas sold and transported |
|
|
63 |
|
|
|
70 |
|
|
|
664 |
|
|
|
1,084 |
|
Cost of sales — other |
|
|
3 |
|
|
|
14 |
|
|
|
12 |
|
|
|
37 |
|
Operating and maintenance expenses |
|
|
655 |
|
|
|
586 |
|
|
|
1,922 |
|
|
|
1,864 |
|
Conservation and demand side management expenses |
|
|
112 |
|
|
|
76 |
|
|
|
295 |
|
|
|
215 |
|
Depreciation and amortization |
|
|
681 |
|
|
|
618 |
|
|
|
2,042 |
|
|
|
1,807 |
|
Taxes (other than income taxes) |
|
|
159 |
|
|
|
168 |
|
|
|
484 |
|
|
|
489 |
|
Loss on Comanche Unit 3 litigation |
|
|
— |
|
|
|
34 |
|
|
|
— |
|
|
|
34 |
|
Total operating expenses |
|
|
2,733 |
|
|
|
2,747 |
|
|
|
8,282 |
|
|
|
8,858 |
|
|
|
|
|
|
|
|
|
|
||||||||
Operating income |
|
|
911 |
|
|
|
915 |
|
|
|
2,039 |
|
|
|
1,906 |
|
|
|
|
|
|
|
|
|
|
||||||||
Other income, net |
|
|
39 |
|
|
|
3 |
|
|
|
75 |
|
|
|
19 |
|
Earnings from equity method investments |
|
|
3 |
|
|
|
7 |
|
|
|
19 |
|
|
|
27 |
|
Allowance for funds used during construction — equity |
|
|
44 |
|
|
|
26 |
|
|
|
119 |
|
|
|
63 |
|
|
|
|
|
|
|
|
|
|
||||||||
Interest charges and financing costs |
|
|
|
|
|
|
|
|
||||||||
Interest charges — includes other financing costs |
|
|
326 |
|
|
|
269 |
|
|
|
936 |
|
|
|
790 |
|
Allowance for funds used during construction — debt |
|
|
(21 |
) |
|
|
(14 |
) |
|
|
(51 |
) |
|
|
(36 |
) |
Total interest charges and financing costs |
|
|
305 |
|
|
|
255 |
|
|
|
885 |
|
|
|
754 |
|
|
|
|
|
|
|
|
|
|
||||||||
Income before income taxes |
|
|
692 |
|
|
|
696 |
|
|
|
1,367 |
|
|
|
1,261 |
|
Income tax expense (benefit) |
|
|
10 |
|
|
|
40 |
|
|
|
(105 |
) |
|
|
(101 |
) |
Net income |
|
$ |
682 |
|
|
$ |
656 |
|
|
$ |
1,472 |
|
|
$ |
1,362 |
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted average common shares outstanding: |
|
|
|
|
|
|
|
|
||||||||
Basic |
|
|
564 |
|
|
|
552 |
|
|
|
559 |
|
|
|
551 |
|
Diluted |
|
|
565 |
|
|
|
552 |
|
|
|
559 |
|
|
|
552 |
|
|
|
|
|
|
|
|
|
|
||||||||
Earnings per average common share: |
|
|
|
|
|
|
|
|
||||||||
Basic |
|
$ |
1.21 |
|
|
$ |
1.19 |
|
|
$ |
2.63 |
|
|
$ |
2.47 |
|
Diluted |
|
|
1.21 |
|
|
|
1.19 |
|
|
|
2.63 |
|
|
|
2.47 |
|
XCEL ENERGY INC. AND SUBSIDIARIES
Notes to Investor Relations Earnings Release (Unaudited)
Due to the seasonality of Xcel Energy’s operating results, quarterly financial results are not an appropriate base from which to project annual results.
Non-GAAP Financial Measures
The following discussion includes financial information prepared in accordance with generally accepted accounting principles (GAAP), as well as certain non-GAAP financial measures such as ongoing return on equity (ROE), ongoing earnings and ongoing diluted EPS. Generally, a non-GAAP financial measure is a measure of a company’s financial performance, financial position or cash flows that adjusts measures calculated and presented in accordance with GAAP. Xcel Energy’s management uses non-GAAP measures for financial planning and analysis, for reporting of results to the Board of Directors, in determining performance-based compensation and communicating its earnings outlook to analysts and investors. Non-GAAP financial measures are intended to supplement investors’ understanding of our performance and should not be considered alternatives for financial measures presented in accordance with GAAP. These measures are discussed in more detail below and may not be comparable to other companies’ similarly titled non-GAAP financial measures.
Ongoing ROE
Ongoing ROE is calculated by dividing the net income or loss of Xcel Energy or each subsidiary, adjusted for certain nonrecurring items, by each entity’s average stockholder’s equity. We use these non-GAAP financial measures to evaluate and provide details of earnings results.
Earnings Adjusted for Certain Items (Ongoing Earnings and Ongoing Diluted EPS)
GAAP diluted EPS reflects the potential dilution that could occur if securities or other agreements to issue common stock (i.e., common stock equivalents) were settled. The weighted average number of potentially dilutive shares outstanding used to calculate Xcel Energy Inc.’s diluted EPS is calculated using the treasury stock method. Ongoing earnings reflect adjustments to GAAP earnings (net income) for certain items. Ongoing diluted EPS for Xcel Energy is calculated by dividing net income or loss, adjusted for certain items, by the weighted average fully diluted Xcel Energy Inc. common shares outstanding for the period. Ongoing diluted EPS for each subsidiary is calculated by dividing the net income or loss for such subsidiary, adjusted for certain items, by the weighted average fully diluted Xcel Energy Inc. common shares outstanding for the period.
We use these non-GAAP financial measures to evaluate and provide details of Xcel Energy’s core earnings and underlying performance. For instance, to present ongoing earnings and ongoing diluted earnings per share, we may adjust the related GAAP amounts for certain items that are non-recurring in nature. We believe these measurements are useful to investors to evaluate the actual and projected financial performance and contribution of our subsidiaries. These non-GAAP financial measures should not be considered as an alternative to measures calculated and reported in accordance with GAAP.
Note 1. Earnings Per Share Summary
Xcel Energy’s third quarter GAAP earnings were
Summarized diluted EPS for Xcel Energy:
|
|
Three Months Ended Sept. 30 |
|
Nine Months Ended Sept. 30 |
||||||||||||
Diluted Earnings (Loss) Per Share |
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
NSP-Minnesota |
|
$ |
0.45 |
|
|
$ |
0.47 |
|
|
$ |
1.06 |
|
|
$ |
0.95 |
|
PSCo |
|
|
0.45 |
|
|
|
0.41 |
|
|
|
1.06 |
|
|
|
0.97 |
|
SPS |
|
|
0.31 |
|
|
|
0.30 |
|
|
|
0.58 |
|
|
|
0.55 |
|
NSP-Wisconsin |
|
|
0.07 |
|
|
|
0.06 |
|
|
|
0.19 |
|
|
|
0.18 |
|
Earnings from equity method investments — WYCO |
|
|
0.01 |
|
|
|
0.01 |
|
|
|
0.02 |
|
|
|
0.03 |
|
Regulated utility (a) |
|
|
1.29 |
|
|
|
1.25 |
|
|
|
2.91 |
|
|
|
2.68 |
|
Xcel Energy Inc. and Other |
|
|
(0.08 |
) |
|
|
(0.06 |
) |
|
|
(0.28 |
) |
|
|
(0.22 |
) |
GAAP diluted EPS (a) |
|
$ |
1.21 |
|
|
$ |
1.19 |
|
|
|
2.63 |
|
|
|
2.47 |
|
Loss on Comanche Unit 3 litigation (b) |
|
|
— |
|
|
$ |
0.05 |
|
|
|
— |
|
|
|
0.05 |
|
Sherco Unit 3 2011 outage refunds (b) |
|
|
0.04 |
|
|
$ |
— |
|
|
|
0.06 |
|
|
|
— |
|
Ongoing diluted EPS (a) |
|
$ |
1.25 |
|
|
$ |
1.23 |
|
|
|
2.69 |
|
|
|
2.52 |
|
(a) |
Amounts may not add due to rounding. |
|
(b) |
See Note 6. |
NSP-Minnesota — GAAP earnings decreased
PSCo — GAAP earnings increased
SPS — GAAP and ongoing earnings increased
NSP-Wisconsin — GAAP and ongoing earnings increased
Xcel Energy Inc. and Other — Primarily includes financing costs and interest income at the holding company and earnings from investment funds, which are accounted for as equity method investments. The decline in earnings is largely due to increased interest rates and higher debt levels.
Components significantly contributing to changes in 2024 EPS compared to 2023:
Diluted Earnings (Loss) Per Share |
|
Three Months Ended
|
|
Nine Months Ended
|
||||
GAAP diluted EPS — 2023 |
|
$ |
1.19 |
|
|
$ |
2.47 |
|
|
|
|
|
|
||||
Components of change - 2024 vs. 2023 |
|
|
|
|
||||
Electric regulatory rate outcomes and riders |
|
|
0.24 |
|
|
|
0.65 |
|
Higher AFUDC |
|
|
0.04 |
|
|
|
0.12 |
|
Natural gas regulatory rate outcomes and riders |
|
|
0.01 |
|
|
|
0.06 |
|
Loss on Comanche Unit 3 litigation (See Note 6) |
|
|
0.05 |
|
|
|
0.05 |
|
Higher depreciation and amortization |
|
|
(0.08 |
) |
|
|
(0.31 |
) |
Higher interest charges |
|
|
(0.08 |
) |
|
|
(0.20 |
) |
Higher O&M expenses |
|
|
(0.09 |
) |
|
|
(0.08 |
) |
Sherco Unit 3 2011 outage refunds (See Note 6) |
|
|
(0.04 |
) |
|
|
(0.06 |
) |
Other, net |
|
|
(0.03 |
) |
|
|
(0.07 |
) |
GAAP diluted EPS — 2024 |
|
|
1.21 |
|
|
|
2.63 |
|
Sherco Unit 3 2011 outage refunds (See Note 6) |
|
|
0.04 |
|
|
|
0.06 |
|
Ongoing diluted EPS — 2024 |
|
$ |
1.25 |
|
|
$ |
2.69 |
|
Note 2. Regulated Utility Results
Estimated Impact of Temperature Changes on Regulated Earnings — Unusually hot summers or cold winters increase electric and natural gas sales, while mild weather reduces electric and natural gas sales. The estimated impact of weather on earnings is based on the number of customers, temperature variances, the amount of natural gas or electricity historically used per degree of temperature and excludes any incremental related operating expenses that could result due to storm activity or vegetation management requirements. As a result, weather deviations from normal levels can affect Xcel Energy’s financial performance. However, electric sales true-up and gas decoupling mechanism in
Normal weather conditions are defined as either the 10, 20 or 30-year average of actual historical weather conditions. The historical period of time used in the calculation of normal weather differs by jurisdiction, based on regulatory practice. To calculate the impact of weather on demand, a demand factor is applied to the weather impact on sales. Extreme weather variations, windchill and cloud cover may not be reflected in weather-normalized estimates.
Weather — Estimated impact of temperature variations on EPS compared with normal weather conditions:
|
Three Months Ended Sept. 30 |
|
Nine Months Ended Sept. 30 |
||||||||||||||||||||
|
2024 vs.
|
|
2023 vs.
|
|
2024 vs.
|
|
2024 vs.
|
|
2023 vs.
|
|
2024 vs.
|
||||||||||||
Retail electric |
$ |
0.038 |
|
|
$ |
0.032 |
|
|
$ |
0.006 |
|
|
$ |
0.015 |
|
|
$ |
0.035 |
|
|
$ |
(0.020 |
) |
Decoupling and sales true-up |
|
(0.001 |
) |
|
|
0.007 |
|
|
|
(0.008 |
) |
|
|
0.040 |
|
|
|
(0.015 |
) |
|
|
0.055 |
|
Electric total |
$ |
0.037 |
|
|
$ |
0.039 |
|
|
$ |
(0.002 |
) |
|
$ |
0.055 |
|
|
$ |
0.020 |
|
|
$ |
0.035 |
|
Firm natural gas |
|
(0.002 |
) |
|
|
(0.002 |
) |
|
|
— |
|
|
|
(0.040 |
) |
|
|
0.024 |
|
|
|
(0.064 |
) |
Decoupling |
|
(0.001 |
) |
|
|
0.001 |
|
|
|
(0.002 |
) |
|
|
0.017 |
|
|
|
0.001 |
|
|
|
0.016 |
|
Natural gas total |
$ |
(0.003 |
) |
|
$ |
(0.001 |
) |
|
$ |
(0.002 |
) |
|
$ |
(0.023 |
) |
|
$ |
0.025 |
|
|
$ |
(0.048 |
) |
Total |
$ |
0.034 |
|
|
$ |
0.038 |
|
|
$ |
(0.004 |
) |
|
$ |
0.032 |
|
|
$ |
0.045 |
|
|
$ |
(0.013 |
) |
Sales — Sales growth (decline) for actual and weather-normalized sales in 2024 compared to 2023:
|
|
Three Months Ended Sept. 30 |
|||||||||||||
|
|
PSCo |
|
NSP-Minnesota |
|
SPS |
|
NSP-Wisconsin |
|
Xcel Energy |
|||||
Actual |
|
|
|
|
|
|
|
|
|
|
|||||
Electric residential |
|
4.1 |
% |
|
(2.7 |
)% |
|
(2.3 |
)% |
|
(1.0 |
)% |
|
— |
% |
Electric C&I |
|
1.2 |
|
|
(2.2 |
) |
|
9.4 |
|
|
(0.6 |
) |
|
2.3 |
|
Total retail electric sales |
|
2.1 |
|
|
(2.4 |
) |
|
7.0 |
|
|
(0.7 |
) |
|
1.5 |
|
Firm natural gas sales |
|
(3.4 |
) |
|
(3.8 |
) |
|
N/A |
|
|
6.6 |
|
|
(3.0 |
) |
|
|
Three Months Ended Sept. 30 |
|||||||||||||
|
|
PSCo |
|
NSP-Minnesota |
|
SPS |
|
NSP-Wisconsin |
|
Xcel Energy |
|||||
Weather-Normalized |
|
|
|
|
|
|
|
|
|
|
|||||
Electric residential |
|
— |
% |
|
(0.8 |
)% |
|
(0.1 |
)% |
|
(1.3 |
)% |
|
(0.5 |
)% |
Electric C&I |
|
(0.4 |
) |
|
(1.6 |
) |
|
9.8 |
|
|
(0.6 |
) |
|
2.2 |
|
Total retail electric sales |
|
(0.3 |
) |
|
(1.4 |
) |
|
8.0 |
|
|
(0.8 |
) |
|
1.3 |
|
Firm natural gas sales |
|
(2.7 |
) |
|
(3.5 |
) |
|
N/A |
|
|
6.7 |
|
|
(2.4 |
) |
|
|
Nine Months Ended Sept. 30 |
|||||||||||||
|
|
PSCo |
|
NSP-Minnesota |
|
SPS |
|
NSP-Wisconsin |
|
Xcel Energy |
|||||
Actual |
|
|
|
|
|
|
|
|
|
|
|||||
Electric residential |
|
4.1 |
% |
|
(6.2 |
)% |
|
1.5 |
% |
|
(4.8 |
)% |
|
(1.2 |
)% |
Electric C&I |
|
0.3 |
|
|
(3.7 |
) |
|
8.0 |
|
|
(1.9 |
) |
|
1.0 |
|
Total retail electric sales |
|
1.6 |
|
|
(4.5 |
) |
|
6.7 |
|
|
(2.7 |
) |
|
0.3 |
|
Firm natural gas sales |
|
(8.7 |
) |
|
(12.7 |
) |
|
N/A |
|
|
(11.5 |
) |
|
(10.1 |
) |
|
|
Nine Months Ended Sept. 30 |
|||||||||||||
|
|
PSCo |
|
NSP-Minnesota |
|
SPS |
|
NSP-Wisconsin |
|
Xcel Energy |
|||||
Weather-Normalized |
|
|
|
|
|
|
|
|
|
|
|||||
Electric residential |
|
0.2 |
% |
|
(0.3 |
)% |
|
(1.1 |
)% |
|
(1.9 |
)% |
|
(0.4 |
)% |
Electric C&I |
|
(1.1 |
) |
|
(2.5 |
) |
|
7.9 |
|
|
(1.5 |
) |
|
1.0 |
|
Total retail electric sales |
|
(0.7 |
) |
|
(1.8 |
) |
|
6.3 |
|
|
(1.6 |
) |
|
0.6 |
|
Firm natural gas sales |
|
1.7 |
|
|
0.4 |
|
|
N/A |
|
|
(2.3 |
) |
|
1.0 |
|
|
|
Nine Months Ended Sept. 30 (Leap Year Adjusted) |
|||||||||||||
|
|
PSCo |
|
NSP-Minnesota |
|
SPS |
|
NSP-Wisconsin |
|
Xcel Energy |
|||||
Weather-Normalized |
|
|
|
|
|
|
|
|
|
|
|||||
Electric residential |
|
(0.2 |
)% |
|
(0.7 |
)% |
|
(1.5 |
)% |
|
(2.3 |
)% |
|
(0.7 |
)% |
Electric C&I |
|
(1.5 |
) |
|
(2.8 |
) |
|
7.5 |
|
|
(1.9 |
) |
|
0.7 |
|
Total retail electric sales |
|
(1.1 |
) |
|
(2.1 |
) |
|
5.9 |
|
|
(2.0 |
) |
|
0.2 |
|
Firm natural gas sales |
|
0.8 |
|
|
(0.5 |
) |
|
N/A |
|
|
(3.1 |
) |
|
0.1 |
|
Weather-normalized and leap-year adjusted electric sales growth (decline) — year-to-date
-
PSCo — Residential sales declined due to a
1.5% decrease in use per customer, partially offset by customer growth of1.4% . The C&I sales decline was related to decreased use per customer, primarily in the information sector. -
NSP-Minnesota — Residential sales declined due to a
2.2% decrease in use per customer, partially offset by a1.5% increase in customers. C&I sales declined due to decreased use per customer, largely in the manufacturing, retail trade and education sectors. -
SPS — Residential sales declined as a result of a
2.2% decrease in use per customer, partially offset by0.6% customer growth. C&I sales increased due to higher use per customer, primarily driven by the energy sector and cryptocurrency mining. -
NSP-Wisconsin — Residential sales declined due to a
3.2% decrease in use per customer, partially offset by0.9% increase in customers. C&I sales decline was associated with decreased use per customer, experienced largely in the manufacturing and professional services sectors.
Weather-normalized and leap-year adjusted natural gas sales growth (decline) — year-to-date
- Increase in natural gas sales was driven by residential and C&I customer growth in all jurisdictions and increased residential use per customer in PSCo offset by decreased use per customer in PSCo C&I and other jurisdictions.
Electric Revenues — Electric revenues are impacted by fluctuations in the price of natural gas, coal and uranium, regulatory outcomes, market prices and seasonality. In addition, electric customers receive a credit for PTCs generated, which reduce electric revenue and income taxes.
(Millions of Dollars) |
|
Three Months Ended
|
|
Nine Months Ended
|
||||
Recovery of lower cost of electric fuel and purchased power |
|
$ |
(83 |
) |
|
$ |
(418 |
) |
Wholesale generation revenues |
|
|
(45 |
) |
|
|
(76 |
) |
Sherco Unit 3 2011 outage refunds (See Note 6) |
|
|
(35 |
) |
|
|
(46 |
) |
PTCs flowed back to customers (offset by lower ETR) |
|
|
(23 |
) |
|
|
(35 |
) |
Regulatory rate outcomes (MN, CO, TX, NM, & WI) |
|
|
130 |
|
|
|
363 |
|
Non-fuel riders |
|
|
43 |
|
|
|
112 |
|
Conservation and demand side management (offset in expense) |
|
|
39 |
|
|
|
82 |
|
Revenue recognition for the |
|
|
2 |
|
|
|
39 |
|
Estimated impact of weather (net of sales true-up) |
|
|
(2 |
) |
|
|
25 |
|
Other, net |
|
|
(20 |
) |
|
|
(60 |
) |
Total increase |
|
$ |
6 |
|
|
$ |
(14 |
) |
(a) |
Recognition of revenue from the |
Natural Gas Revenues — Natural gas revenues vary with changing sales, the cost of natural gas and regulatory outcomes.
(Millions of Dollars) |
|
Three Months Ended
|
|
Nine Months Ended
|
||||
Recovery of lower cost of natural gas |
|
$ |
(8 |
) |
|
$ |
(418 |
) |
Estimated impact of weather (net of decoupling) |
|
|
(2 |
) |
|
|
(35 |
) |
Regulatory rate outcomes (MN, WI & ND) |
|
|
6 |
|
|
|
41 |
|
Retail sales growth (net of decoupling) |
|
|
1 |
|
|
|
10 |
|
Infrastructure and integrity riders |
|
|
1 |
|
|
|
6 |
|
Other, net |
|
|
(4 |
) |
|
|
5 |
|
Total decrease |
|
$ |
(6 |
) |
|
$ |
(391 |
) |
Electric Fuel and Purchased Power — Expenses incurred for electric fuel and purchased power are impacted by fluctuations in market prices of natural gas, coal and uranium, as well as seasonality. These incurred expenses are generally recovered through various regulatory recovery mechanisms. As a result, changes in these expenses are largely offset in operating revenues and have minimal earnings impact.
Electric fuel and purchased power expenses decreased
Cost of Natural Gas Sold and Transported — Expenses incurred for the cost of natural gas sold are impacted by market prices and seasonality. These costs are generally recovered through various regulatory recovery mechanisms. As a result, changes in these expenses are largely offset in operating revenues and have minimal earnings impact.
Natural gas sold and transported decreased
O&M Expenses — O&M expenses increased
Depreciation and Amortization — Depreciation and amortization increased
Interest Charges — Interest charges increased
Other Income — Other income increased
AFUDC, Equity and Debt — AFUDC increased
Income Taxes — Effective income tax rate:
|
|
Three Months Ended Sept. 30 |
|
Nine Months Ended Sept. 30 |
||||||||||||||
|
|
2024 |
|
2023 |
|
2024 vs.
|
|
2024 |
|
2023 |
|
2024 vs.
|
||||||
Federal statutory rate |
|
21.0 |
% |
|
21.0 |
% |
|
— |
% |
|
21.0 |
% |
|
21.0 |
% |
|
— |
% |
State tax (net of federal tax effect) |
|
4.7 |
|
|
5.0 |
|
|
(0.3 |
) |
|
4.8 |
|
|
4.9 |
|
|
(0.1 |
) |
(Decreases) increases: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Wind PTCs (a) |
|
(16.0 |
) |
|
(13.8 |
) |
|
(2.2 |
) |
|
(26.2 |
) |
|
(27.3 |
) |
|
1.1 |
|
Plant regulatory differences (b) |
|
(5.7 |
) |
|
(5.3 |
) |
|
(0.4 |
) |
|
(5.9 |
) |
|
(5.5 |
) |
|
(0.4 |
) |
Other tax credits, net NOL & tax credit allowances |
|
(1.5 |
) |
|
(1.1 |
) |
|
(0.4 |
) |
|
(1.1 |
) |
|
(1.2 |
) |
|
0.1 |
|
Other, net |
|
(1.1 |
) |
|
(0.1 |
) |
|
(1.0 |
) |
|
(0.3 |
) |
|
0.1 |
|
|
(0.4 |
) |
Effective income tax rate |
|
1.4 |
% |
|
5.7 |
% |
|
(4.3 |
)% |
|
(7.7 |
)% |
|
(8.0 |
)% |
|
0.3 |
% |
(a) |
PTCs (net of transfer discounts) are generally credited to customers (reduction to revenue) and do not materially impact earnings. |
|
(b) |
Plant regulatory differences primarily relate to the credit of excess deferred taxes to customers. Income tax benefits associated with the credit are offset by corresponding revenue reductions. |
Note 3. Capital Structure, Liquidity, Financing and Credit Ratings
Xcel Energy’s capital structure:
(Millions of Dollars) |
|
Sept. 30, 2024 |
|
Percentage of Total
|
|
Dec. 31, 2023 |
|
Percentage of Total
|
||||
Current portion of long-term debt |
|
$ |
1,104 |
|
2 |
% |
|
$ |
552 |
|
1 |
% |
Short-term debt |
|
|
95 |
|
— |
|
|
|
785 |
|
2 |
|
Long-term debt |
|
|
27,471 |
|
58 |
|
|
|
24,913 |
|
57 |
|
Total debt |
|
|
28,670 |
|
60 |
|
|
|
26,250 |
|
60 |
|
Common equity |
|
|
19,352 |
|
40 |
|
|
|
17,616 |
|
40 |
|
Total capitalization |
|
$ |
48,022 |
|
100 |
% |
|
$ |
43,866 |
|
100 |
% |
Liquidity — As of Oct. 28, 2024, Xcel Energy Inc. and its utility subsidiaries had the following committed credit facilities available to meet liquidity needs:
(Millions of Dollars) |
|
Credit Facility (a) |
|
Drawn (b) |
|
Available |
|
Cash |
|
Liquidity |
|||||
Xcel Energy Inc. |
|
$ |
1,500 |
|
$ |
45 |
|
$ |
1,455 |
|
$ |
31 |
|
$ |
1,486 |
PSCo |
|
|
700 |
|
|
31 |
|
|
669 |
|
|
536 |
|
|
1,205 |
NSP-Minnesota |
|
|
700 |
|
|
12 |
|
|
688 |
|
|
198 |
|
|
886 |
SPS |
|
|
500 |
|
|
— |
|
|
500 |
|
|
115 |
|
|
615 |
NSP-Wisconsin |
|
|
150 |
|
|
— |
|
|
150 |
|
|
104 |
|
|
254 |
Total |
|
$ |
3,550 |
|
$ |
88 |
|
$ |
3,462 |
|
$ |
984 |
|
$ |
4,446 |
(a) |
Expires September 2027. |
|
(b) |
Includes outstanding commercial paper and letters of credit. |
Credit Ratings — Access to the capital markets at reasonable terms is partially dependent on credit ratings. The following ratings reflect the views of Moody’s, S&P Global Ratings and Fitch. The highest credit rating for debt is Aaa/AAA and the lowest investment grade rating is Baa3/BBB-. The highest rating for commercial paper is P-1/A-1/F-1 and the lowest rating is P-3/A-3/F-3. A security rating is not a recommendation to buy, sell or hold securities. Ratings are subject to revision or withdrawal at any time by the credit rating agency and each rating should be evaluated independently of any other rating.
Credit ratings and long-term outlook assigned to Xcel Energy Inc. and its utility subsidiaries as of Oct. 28, 2024:
|
|
|
|
Moody’s |
|
S&P Global Ratings |
|
Fitch |
||||||
Company |
|
Credit Type |
|
Rating |
|
Outlook |
|
Rating |
|
Outlook |
|
Rating |
|
Outlook |
Xcel Energy Inc. |
|
Unsecured |
|
Baa1 |
|
Stable |
|
BBB |
|
Negative |
|
BBB+ |
|
Negative |
NSP-Minnesota |
|
Secured |
|
Aa3 |
|
Stable |
|
A |
|
Negative |
|
A+ |
|
Stable |
NSP-Wisconsin |
|
Secured |
|
Aa3 |
|
Negative |
|
A |
|
Negative |
|
A+ |
|
Stable |
PSCo |
|
Secured |
|
A1 |
|
Stable |
|
A |
|
Negative |
|
A+ |
|
Stable |
SPS |
|
Secured |
|
A3 |
|
Stable |
|
A- |
|
Negative |
|
A- |
|
Stable |
Xcel Energy Inc. |
|
Commercial paper |
|
P-2 |
|
|
|
A-2 |
|
|
|
F2 |
|
|
NSP-Minnesota |
|
Commercial paper |
|
P-1 |
|
|
|
A-2 |
|
|
|
F2 |
|
|
NSP-Wisconsin |
|
Commercial paper |
|
P-1 |
|
|
|
A-2 |
|
|
|
F2 |
|
|
PSCo |
|
Commercial paper |
|
P-2 |
|
|
|
A-2 |
|
|
|
F2 |
|
|
SPS |
|
Commercial paper |
|
P-2 |
|
|
|
A-2 |
|
|
|
F2 |
|
|
Capital Expenditures — Base capital expenditures and incremental capital forecasts for Xcel Energy for 2025 through 2029:
|
|
Base Capital Forecast (Millions of Dollars) |
||||||||||||||||||||||
By Regulated Utility |
|
|
2025 |
|
|
|
2026 |
|
|
|
2027 |
|
|
|
2028 |
|
|
|
2029 |
|
|
Total |
||
PSCo |
|
$ |
5,820 |
|
|
$ |
5,190 |
|
|
$ |
3,940 |
|
$ |
3,780 |
|
$ |
3,550 |
|
$ |
22,280 |
|
|||
NSP-Minnesota |
|
|
3,240 |
|
|
|
2,500 |
|
|
|
2,830 |
|
|
|
2,080 |
|
|
|
2,570 |
|
|
|
13,220 |
|
SPS |
|
|
1,400 |
|
|
|
1,540 |
|
|
|
1,280 |
|
|
|
1,040 |
|
|
|
1,040 |
|
|
|
6,300 |
|
NSP-Wisconsin |
|
|
640 |
|
|
|
650 |
|
|
|
690 |
|
|
|
660 |
|
|
|
670 |
|
|
|
3,310 |
|
Other (a) |
|
|
(100 |
) |
|
|
(40 |
) |
|
|
10 |
|
|
|
10 |
|
|
|
10 |
|
|
|
(110 |
) |
Total base capital expenditures |
|
$ |
11,000 |
|
|
$ |
9,840 |
|
|
$ |
8,750 |
|
|
$ |
7,570 |
|
|
$ |
7,840 |
|
|
$ |
45,000 |
|
(a) |
Other category includes intercompany transfers for wind and solar generating equipment. |
|
|
Base Capital Forecast (Millions of Dollars) |
||||||||||||||||||||||
By Function |
|
|
2025 |
|
|
|
2026 |
|
|
|
2027 |
|
|
|
2028 |
|
|
|
2029 |
|
|
Total |
||
Electric distribution |
|
$ |
2,570 |
|
$ |
3,000 |
|
$ |
3,400 |
|
$ |
3,320 |
|
$ |
3,540 |
|
$ |
15,830 |
||||||
Electric transmission |
|
|
2,260 |
|
|
|
2,860 |
|
|
|
2,740 |
|
|
|
2,390 |
|
|
|
2,310 |
|
|
|
12,560 |
|
Renewables |
|
|
3,360 |
|
|
|
1,400 |
|
|
|
260 |
|
|
|
— |
|
|
|
— |
|
|
|
5,020 |
|
Electric generation |
|
|
1,210 |
|
|
|
1,150 |
|
|
|
910 |
|
|
|
580 |
|
|
|
620 |
|
|
|
4,470 |
|
Natural gas |
|
|
800 |
|
|
|
680 |
|
|
|
690 |
|
|
|
630 |
|
|
|
620 |
|
|
|
3,420 |
|
Other |
|
|
800 |
|
|
|
750 |
|
|
|
750 |
|
|
|
650 |
|
|
|
750 |
|
|
|
3,700 |
|
Total base capital expenditures |
|
$ |
11,000 |
|
|
$ |
9,840 |
|
|
$ |
8,750 |
|
|
$ |
7,570 |
|
|
$ |
7,840 |
|
|
$ |
45,000 |
|
The base plan does not include any potential incremental generation or transmission assets that are pending commission approval through a request for proposal (RFP), a resource plan, or from additional data center load, which could result in additional capital expenditures of approximately
Xcel Energy’s capital expenditure forecast is subject to continuing review and modification. Actual capital expenditures may vary from estimates due to changes in electric and natural gas projected load growth, safety and reliability needs, regulatory decisions, legislative initiatives, tax policy, reserve requirements, availability of purchased power, alternative plans for meeting long-term energy needs, environmental initiatives and regulation, and merger, acquisition and divestiture opportunities.
Financing for Capital Expenditures through 2029 — Xcel Energy issues debt and equity securities to refinance retiring debt maturities, reduce short-term debt, fund capital programs, infuse equity in subsidiaries, fund asset acquisitions and for general corporate purposes. Current estimated financing plans of Xcel Energy for 2025-2029 (includes the impact of tax credit transferability):
(Millions of Dollars) |
|
|
||
Funding Capital Expenditures |
|
|
||
Cash from operations (a) |
|
$ |
25,320 |
|
New debt (b) |
|
|
15,180 |
|
Equity through the Dividend Reinvestment and Stock Purchase Program and benefit program |
|
|
500 |
|
Other equity |
|
|
4,000 |
|
Base capital expenditures 2025-2029 |
|
$ |
45,000 |
|
|
|
|
||
Maturing debt |
|
$ |
3,730 |
|
(a) |
Net of dividends and pension funding. |
(b) |
Reflects a combination of short and long-term debt; net of refinancing. |
2024 Financing Activity — During 2024, Xcel Energy Inc. and its utility subsidiaries issued the following long-term debt. No further debt issuances are planned for 2024.
Issuer |
|
Security |
|
Amount (in millions) |
|
Tenor |
|
Coupon |
||
Xcel Energy Inc. |
|
Senior Unsecured Notes |
|
$ |
800 |
|
10 Year |
|
5.50 |
% |
NSP-Minnesota |
|
First Mortgage Bonds |
|
|
700 |
|
30 Year |
|
5.40 |
|
PSCo |
|
First Mortgage Bonds |
|
|
1,200 |
|
10 Year & 30 Year |
|
5.35 & 5.75 |
|
SPS |
|
First Mortgage Bonds |
|
|
600 |
|
30 Year |
|
6.00 |
|
NSP-Wisconsin |
|
First Mortgage Bonds |
|
|
400 |
|
30 Year |
|
5.65 |
|
Xcel Energy issued approximately
Financing plans are subject to change, depending on capital expenditures, regulatory outcomes, internal cash generation, market conditions, changes in tax policies and other factors.
Note 4. Rates, Regulation and Other
NSP-Minnesota — 2024 Minnesota Natural Gas Rate Case — In November 2023, NSP-Minnesota filed a request with the Minnesota Public Utilities Commission (MPUC) for a natural gas rate increase of approximately
In June 2024, NSP-Minnesota and various parties filed an uncontested settlement, which includes the following terms:
-
Natural gas rate increase of
, or$46 million 7.5% . -
ROE of
9.6% . -
Equity ratio of
52.5% . -
Rate base of
.$1.25 billion - No change to Commission approved decoupling.
In October 2024, an ALJ recommended the MPUC approve the rate case settlement. A MPUC decision and order is expected in the first quarter of 2025.
NSP-Minnesota — North Dakota Natural Gas Rate Case — In December 2023, NSP-Minnesota filed a request with the North Dakota Public Service Commission (NDPSC) seeking an increase in natural gas rates of
In August 2024, NSP-Minnesota filed a settlement agreement with NDPSC Staff and AARP. Key terms of the settlement included an increase in natural gas rates of
NSP-Minnesota —
In 2024, the DOC recommended customer refunds for 2023 replacement power costs incurred during an outage at the Prairie Island generating station (October 2023 through February 2024). NSP-Minnesota estimates that customer refunds would be approximately
In September 2024, the MPUC ruled NSP-Minnesota was imprudent in the operation of the Prairie Island nuclear plant based on an incident that resulted in the extended outage. The MPUC declined to quantify the refund and referred the determination of the refund amount to the Office of Administrative Hearings. A procedural schedule will be determined in the fourth quarter of 2024. NSP-Minnesota has recorded an estimated liability for a customer refund.
NSP-Minnesota — Sherco Unit 3 — In May 2024, the Administrative Law Judge (ALJ) recommended a customer refund of
NSP-Minnesota — 2024 Minnesota Resource Plan Settlement — In February 2024, NSP filed its Upper Midwest Resource Plan with the MPUC. In October 2024, NSP-Minnesota filed a settlement with several parties reaching agreement on the resource plan, as well as the proposed projects to be approved in the pending 800 MW firm dispatchable resource acquisition.
NSP-Minnesota anticipates a MPUC decision in 2025 and will file related a RFP for remaining resource needs upon approval. The settlement included the following key items:
- The selection of the company-owned 420 MW Lyon County combustion turbine.
- The selection of the company-owned 300 MW 4-hour Sherco battery energy storage system.
- Multiple PPAs to proceed to the negotiation stage.
- The addition of 3,200 MW of wind, 400 MW of solar and 600 MW of stand-alone storage to be added through 2030 based on an RFP process. Approximately 2,800 MW of wind resources are projected to utilize the Minnesota Energy Connection transmission line.
-
Planned life extensions of the Prairie Island and
Monticello nuclear plants through the early 2050s.
NSP-Minnesota — 2024 Electric Rate Case — In early November 2024, NSP-Minnesota plans to file an electric rate case in
NSP-Wisconsin —
PSCo — Colorado Natural Gas Rate Case — In January 2024, PSCo, filed a request with the CPUC seeking an increase to retail natural gas rates of
In October 2024, the CPUC issued an order including the following key decisions:
- Use of a historic 2023 test year, with a 13-month average rate base.
-
Weighted-average cost of capital of
7.0% , based on an ROE range of9.2% -9.5% and an equity ratio range of52% -55% . -
Acceleration of
per year of depreciation expense (incremental to PSCo’s original rate request), to be held in an external trust for future decommissioning costs.$15 million - Modifications to recoverability of certain operating expenses.
- Denial of PSCo’s decoupling proposal.
Based on the CPUC order, PSCo estimates an annual revenue increase of approximately
PSCo — 2024 Colorado Electric Resource Plan — In October, 2024, PSCo filed its electric resource plan, known as the Just Transition Solicitation, with the CPUC. The filing reflects the expected growth on the system, the generation resources needed to meet the projected growth and the future evaluation of competitive bids for new generation resources.
-
The plan reflects a base sales forecast with
7% compound annual sales growth through 2031. -
The plan also presents a low sales forecast with a
3% compound annual sales growth through 2031. - The resource plan includes forecasted need of 5-14 GW of new generation capacity through 2031, including renewables and firm dispatchable resources to meet the two different scenarios. The acquisitions of generation resources will be determined through a competitive solicitation after the CPUC determines the portfolio. The table below summarizes two of the proposed portfolios based on the different sales scenarios:
(Megawatts) |
|
Base Plan |
|
Low Load |
Wind |
|
7,250 |
|
2,800 |
Solar |
|
3,077 |
|
1,200 |
Natural gas combustion turbine |
|
1,575 |
|
1,400 |
Storage (long duration) |
|
1,600 |
|
— |
Other storage |
|
450 |
|
— |
Total |
|
13,952 |
|
5,400 |
A CPUC decision on the resource plan is expected by the fall of 2025 (Phase I) with the competitive solicitation for resource additions expected in early 2026.
PSCo — Wildfire Mitigation Plan — In June 2024, PSCo filed an Updated Wildfire Mitigation Plan (the WMP) and request for recovery of costs covering the years 2025 to 2027 with the CPUC. The estimated total cost for this plan is approximately
The WMP is a key component of keeping our customers and communities safe while providing reliable and affordable electric service. The WMP integrates industry experience; incorporates evolving risk assessment methodologies; adds new technology; and expands the scope, pace and scale of our work to reduce wildfire risk in a comprehensive and efficient manner under four core programs that include the following:
- Situational awareness – Meteorology, area risk mapping and modeling, artificial intelligence cameras and continuous monitoring.
- Operational mitigations – Enhanced powerline safety settings and public safety power shutoffs (PSPS).
- System resiliency – Asset assessment and remediations, pole replacements, line rebuilds, targeted undergrounding and vegetation management.
- Customer support – Coordination and real-time data sharing with customers and other stakeholders and PSPS resiliency rebates.
The procedural schedule is as follows:
- Answer testimony: Feb. 14, 2025
- Rebuttal testimony: March 21, 2025
- Settlement deadline: April 11, 2025
- Hearing: May 5-15, 2025
- Decision deadline: Aug. 28, 2025
PSCo — Excess Liability Insurance Deferral — In August 2024, PSCo filed a request with the CPUC to establish a tracker to defer differences in excess liability insurance premiums after the October 2024 policy renewal (reflecting significantly rising premiums, largely associated with wildfire risks throughout
- Rebuttal testimony: Nov. 1, 2024
- Settlement deadline: Nov. 12, 2024
- Hearing: Nov. 21, 2024
- Target decision date: Dec. 31, 2024
SPS — New Mexico Resource Plan (IRP) — In October 2023, SPS filed its IRP with the New Mexico Public Regulation Commission (NMPRC), which supports projected load growth and increasing reliability requirements, and secures replacement energy and capacity for retiring resources. SPS’ projected resource needs ranging from approximately 5,300 MW to 10,200 MW by 2030. In February 2024, the NMPRC accepted the IRP.
In July 2024, SPS issued a RFP, seeking approximately 3,200 MW of accredited generation capacity by 2030. The total capacity to be added to the system is expected to align with the range identified in the SPS IRP, depending on the types of resources proposed in the RFP and their accredited capacity factors.
The RFP will be evaluated in the first quarter of 2025. SPS is expected to file for a certificate of need for the recommended portfolio in the summer of 2025. The
Note 5. Wildfire Litigation
2024 Smokehouse Creek Fire Complex — On February 26, 2024, multiple wildfires began in the Texas Panhandle, including the Smokehouse Creek Fire and the 687 Reamer Fire, which burned into the perimeter of the Smokehouse Creek Fire (together, referred to herein as the “Smokehouse Creek Fire Complex”). The Texas A&M Forest Service issued incident reports that determined that the Smokehouse Creek Fire and the 687 Reamer Fire were caused by power lines owned by SPS after wooden poles near each fire origin failed. According to the Texas A&M Forest Service’s Incident Viewer and news reports, the Smokehouse Creek Fire Complex burned approximately 1,055,000 acres.
SPS is aware of approximately 23 complaints, most of which have also named Xcel Energy Services Inc. as an additional defendant, relating to the Smokehouse Creek Fire Complex, including one putative class action on behalf of persons or entities who owned rangelands or pastures that were damaged by the fire. The complaints generally allege that SPS’ equipment ignited the Smokehouse Creek Fire Complex and seek compensation for losses resulting from the fire, asserting various causes of action under
Potential liabilities related to the Smokehouse Creek Fire Complex depend on various factors, including the cause of the equipment failure and the extent and magnitude of potential damages, including damages to residential and commercial structures, personal property, vegetation, livestock and livestock feed (including replacement feed), personal injuries and any other damages, penalties, fines or restitution that may be imposed by courts or other governmental entities if SPS is found to have been negligent.
Based on the current state of the law and the facts and circumstances available as of the date of this filing, Xcel Energy believes it is probable that it will incur a loss in connection with the Smokehouse Creek Fire Complex and accordingly has accrued a
The aggregate liability of
Xcel Energy remains unable to reasonably estimate any additional loss or the upper end of the range because there are a number of unknown facts and legal considerations that may impact the amount of any potential liability. In the event that SPS or Xcel Energy Services Inc. was found liable related to the litigation related to the Smokehouse Creek Fire Complex and was required to pay damages, such amounts could exceed our insurance coverage of approximately
The process for estimating losses associated with potential claims related to the Smokehouse Creek Fire Complex requires management to exercise significant judgment based on a number of assumptions and subjective factors, including the factors identified above and estimates based on currently available information and prior experience with wildfires. As more information becomes available, management estimates and assumptions regarding the potential financial impact of the Smokehouse Creek Fire Complex may change.
SPS records insurance recoveries when it is deemed probable that recovery will occur, and SPS can reasonably estimate the amount or range. SPS has recorded an insurance receivable for
Marshall Wildfire Litigation — In December 2021, a wildfire ignited in
According to the Sheriff’s Report, on Dec. 30, 2021, a fire ignited on a residential property in
The Sheriff’s Report states that the most probable cause of the second ignition was hot particles discharged from PSCo’s power lines after one of the power lines detached from its insulator in strong winds, and further states that it cannot be ruled out that the second ignition was caused by an underground coal fire. According to the Sheriff’s Report, no design, installation or maintenance defects or deficiencies were identified on PSCo’s electrical circuit in the area of the second ignition. PSCo disputes that its power lines caused the second ignition.
PSCo is aware of 307 complaints, most of which have also named Xcel Energy Inc. and Xcel Energy Services Inc. as additional defendants, relating to the
In September 2023, the
In September 2024, the Judge presiding over the consolidated cases in
In the event Xcel Energy Inc. or PSCo was found liable related to this litigation and were required to pay damages, such amounts could exceed our insurance coverage of approximately
Note 6. Non-GAAP Reconciliation
Xcel Energy’s reported earnings are prepared in accordance with GAAP. Xcel Energy’s management believes that ongoing earnings, or GAAP earnings adjusted for certain items, reflect management’s performance in operating the company and provides a meaningful representation of the underlying performance of Xcel Energy’s core business. In addition, Xcel Energy’s management uses ongoing earnings internally for financial planning and analysis, for reporting of results to the Board of Directors and when communicating its earnings outlook to analysts and investors. This non-GAAP financial measure should not be considered as an alternative to measures calculated and reported in accordance with GAAP.
Earnings Adjusted for Certain Items (Ongoing Earnings)
The following table provides a reconciliation of GAAP earnings (net income) to ongoing earnings:
|
|
Three Months Ended Sept. 30 |
|
Nine Months Ended Sept. 30 |
||||||||||||
(Millions of Dollars) |
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
GAAP net income |
|
$ |
682 |
|
|
$ |
656 |
|
|
$ |
1,472 |
|
|
$ |
1,362 |
|
Loss on Comanche Unit 3 Litigation |
|
|
— |
|
|
|
34 |
|
|
|
— |
|
|
|
34 |
|
Sherco Unit 3 2011 outage refunds |
|
|
35 |
|
|
|
— |
|
|
|
46 |
|
|
|
— |
|
Tax effect |
|
|
(10 |
) |
|
|
(8 |
) |
|
|
(13 |
) |
|
|
(8 |
) |
Ongoing earnings |
|
$ |
707 |
|
|
$ |
682 |
|
|
$ |
1,505 |
|
|
$ |
1,388 |
|
Sherco Unit 3 2011 Outage Refunds — NSP-Minnesota’s Sherco Unit 3 experienced an extended outage following a 2011 incident which damaged its turbine. In October 2024 following contested case procedures, the MPUC ordered a customer refund of
Comanche Unit 3 Litigation — In the third quarter of 2023, PSCo recognized a non-recurring
Note 7. Earnings Guidance and Long-Term EPS and Dividend Growth Rate Objectives
Xcel Energy 2024 Earnings Guidance — Xcel Energy’s 2024 ongoing earnings guidance is a range of
Key assumptions as compared with 2023 actual levels unless noted:
- Constructive outcomes in all pending rate case and regulatory proceedings, including requests for deferral of incremental insurance costs associated with wildfire risk.
- Normal weather patterns for the remainder of the year.
-
Weather-normalized retail electric sales are projected to increase ~
1% . -
Weather-normalized retail firm natural gas sales are projected to decline by ~
1% . -
Capital rider revenue is projected to increase
to$60 million (net of PTCs).$70 million -
O&M expenses are projected to increase
3% to4% . -
Depreciation expense is projected to increase approximately
to$290 million .$300 million -
Property taxes are expected to decline
to$10 .$20 million -
Interest expense (net of AFUDC - debt) is projected to increase
to$130 million , net of interest income.$140 million -
AFUDC - equity is projected to increase
to$70 million .$80 million
Xcel Energy 2025 Earnings Guidance — Xcel Energy’s 2025 ongoing earnings guidance is a range of
Key assumptions as compared with 2024 projected levels unless noted:
- Constructive outcomes in all pending rate case and regulatory proceedings, including requests for deferral of incremental insurance costs associated with wildfire risk and recovery of O&M costs associated with wildfire mitigation plans.
- Normal weather patterns for the year.
-
Weather-normalized retail electric sales are projected to increase ~
3% . -
Weather-normalized retail firm natural gas sales are projected to increase ~
1% . -
Capital rider revenue is projected to increase
to$240 million (net of PTCs).$250 million -
O&M expenses are projected to increase ~
3% . -
Depreciation expense is projected to increase approximately
to$210 million .$220 million -
Property taxes are projected to increase
to$40 million .$50 million -
Interest expense (net of AFUDC - debt) is projected to increase
to$130 million , net of interest income.$140 million -
AFUDC - equity is projected to increase
to$120 million .$130 million
(a) |
Ongoing earnings is calculated using net income and adjusting for certain nonrecurring or infrequent items that are, in management’s view, not reflective of ongoing operations. Ongoing earnings could differ from those prepared in accordance with GAAP for unplanned and/or unknown adjustments. As Xcel Energy is unable to quantify the financial impacts of any additional adjustments that may occur for the year, we are unable to provide a quantitative reconciliation of the guidance for ongoing EPS to corresponding GAAP EPS. |
Long-Term EPS and Dividend Growth Rate Objectives — Xcel Energy expects to deliver an attractive total return to our shareholders through a combination of earnings growth and dividend yield, based on the following long-term objectives:
-
Deliver long-term annual EPS growth of
6% to8% based off of per share (the mid-point of 2024 original ongoing earnings guidance of$3.55 to$3.50 per share).$3.60 -
Deliver annual dividend increases of
4% to6% . -
Target a dividend payout ratio of
50% to60% . - Maintain senior secured debt credit ratings in the A range.
XCEL ENERGY INC. AND SUBSIDIARIES EARNINGS RELEASE SUMMARY (UNAUDITED) (amounts in millions, except per share data) |
||||||||
|
|
Three Months Ended Sept. 30 |
||||||
|
|
|
2024 |
|
|
|
2023 |
|
Operating revenues: |
|
|
|
|
||||
Electric and natural gas |
|
$ |
3,632 |
|
|
$ |
3,632 |
|
Other |
|
|
12 |
|
|
|
30 |
|
Total operating revenues |
|
|
3,644 |
|
|
|
3,662 |
|
|
|
|
|
|
||||
Net income |
|
$ |
682 |
|
|
$ |
656 |
|
|
|
|
|
|
||||
Weighted average diluted common shares outstanding |
|
|
565 |
|
|
|
552 |
|
|
|
|
|
|
||||
Components of EPS — Diluted |
|
|
|
|
||||
Regulated utility |
|
$ |
1.29 |
|
|
$ |
1.25 |
|
Xcel Energy Inc. and other costs |
|
|
(0.08 |
) |
|
|
(0.06 |
) |
GAAP diluted EPS (a) |
|
$ |
1.21 |
|
|
$ |
1.19 |
|
Loss on Comanche Unit 3 litigation (See Note 6) |
|
|
— |
|
|
|
0.05 |
|
Sherco Unit 3 2011 outage refunds (See Note 6) |
|
|
0.04 |
|
|
|
— |
|
Ongoing diluted EPS (a) |
|
$ |
1.25 |
|
|
$ |
1.23 |
|
|
|
|
|
|
||||
Book value per share |
|
$ |
34.28 |
|
|
$ |
31.38 |
|
Cash dividends declared per common share |
|
|
0.5475 |
|
|
|
0.52 |
|
|
|
Nine Months Ended Sept. 30 |
||||||
|
|
|
2024 |
|
|
|
2023 |
|
Operating revenues: |
|
|
|
|
||||
Electric and natural gas |
|
$ |
10,272 |
|
|
$ |
10,677 |
|
Other |
|
|
49 |
|
|
|
87 |
|
Total operating revenues |
|
|
10,321 |
|
|
|
10,764 |
|
|
|
|
|
|
||||
Net income |
|
$ |
1,472 |
|
|
$ |
1,362 |
|
|
|
|
|
|
||||
Weighted average diluted common shares outstanding |
|
|
559 |
|
|
|
551 |
|
|
|
|
|
|
||||
Components of EPS — Diluted |
|
|
|
|
||||
Regulated utility |
|
$ |
2.91 |
|
|
$ |
2.68 |
|
Xcel Energy Inc. and other costs |
|
|
(0.28 |
) |
|
|
(0.22 |
) |
GAAP diluted EPS (a) |
|
$ |
2.63 |
|
|
$ |
2.47 |
|
Loss on Comanche Unit 3 litigation (See Note 6) |
|
|
— |
|
|
|
0.05 |
|
Sherco Unit 3 2011 outage refunds (See Note 6) |
|
|
0.06 |
|
|
|
— |
|
Ongoing diluted EPS (a) |
|
$ |
2.69 |
|
|
$ |
2.52 |
|
|
|
|
|
|
||||
Book value per share |
|
$ |
34.61 |
|
|
$ |
31.43 |
|
Cash dividends declared per common share |
|
|
1.6425 |
|
|
|
1.56 |
|
(a) |
Amounts may not add due to rounding. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20241031274147/en/
Paul Johnson, Vice President - Treasury & Investor Relations
(612) 215-4535
Roopesh Aggarwal, Senior Director - Investor Relations
(303) 571-2855
Xcel Energy website address: www.xcelenergy.com
(612) 215-5300
Source: Xcel Energy
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