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Xcel Energy Inc. (NASDAQ:XEL), a $43.4 billion utility company currently trading near its 52-week high, and its subsidiary Northern States Power Company detailed updates Monday regarding the ongoing 2024 Minnesota electric rate case, according to a statement based on a recent SEC filing. InvestingPro analysis indicates the stock is slightly overvalued at current levels, though it maintains strong fundamentals with a 54-year track record of consistent dividend payments.
In November 2024, Northern States Power Company (NSP-Minnesota) filed to increase electric revenues by $491 million, or 13.2%, over two years. The request was based on a proposed return on equity of 10.3%, a 52.5% equity ratio, and a rate base of $13.2 billion in 2025 and $14 billion in 2026. NSP-Minnesota also sought interim rates of $224 million for 2025, but the Minnesota Public Utilities Commission (MPUC) approved $192 million in interim rates effective January 1, 2025, after reducing wildfire mitigation costs. The company currently generates annual revenues of $14 billion with an 11% return on equity.
In March 2025, NSP-Minnesota revised its total revenue request to $473 million. On August 22, eight parties submitted testimony, including the Minnesota Department of Commerce (DOC), Office of Attorney General, Xcel Large Industrial Customers (XLI), Citizens Utility Board of Minnesota (CUB), Walmart, and other intervenors. Some parties quantified recommended financial adjustments, with XLI proposing $190 million in reductions, mainly from a lower return on equity and decreased operating and maintenance (O&M) expenses. CUB and Walmart also recommended adjustments based on lower returns on equity.
The DOC proposed modifications to NSP-Minnesota’s request, recommending total revenue increases of $49 million for 2025 and $167 million for 2026, after accounting for reductions in rate of return, O&M expenses, generation capacity revenue, depreciation, tax credits, and other factors. The DOC’s recommended return on equity is 9.25%, compared to the company’s original 10.3%.
Next steps in the procedural schedule include rebuttal testimony due October 10, 2025, and an Administrative Law Judge report expected April 30, 2026. The MPUC is expected to make a final decision in the third quarter of 2026.
This information is based on a press release statement included in a recent SEC filing by Xcel Energy.
In other recent news, Xcel Energy reported impressive financial results for the second quarter of 2025. The company exceeded market expectations with earnings per share of $0.75, surpassing the forecasted $0.66. Additionally, Xcel Energy’s revenue reached $3.29 billion, outpacing the anticipated $3.23 billion. These results highlight the company’s strong financial performance and have been positively received by investors. Furthermore, Xcel Energy announced an equity distribution agreement, allowing it to offer and sell up to $4 billion of its common stock. This agreement involves several major banks and brokerage firms acting as sales agents and forward purchasers. Under the agreement, the company may issue and sell shares through designated sales agents or enter into forward sale agreements. These recent developments underscore Xcel Energy’s strategic financial maneuvers and robust quarterly performance.
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