Xcel Energy announces MPUC approval of resource plan

Published 21/02/2025, 23:24
Xcel Energy announces MPUC approval of resource plan

Xcel Energy Inc. (NASDAQ:XEL), a $40.23 billion utility company known for its stable performance with a beta of 0.44, disclosed on Thursday that its subsidiary, NSP-Minnesota, received approval from the Minnesota Public Utilities Commission (MPUC) for its comprehensive resource plan. According to InvestingPro analysis, Xcel maintains remarkably low price volatility and has consistently paid dividends for 54 consecutive years, making it a defensive investment choice. This development, which was verbally agreed upon on Wednesday, outlines significant expansions in renewable energy and storage capacity, as well as extensions for existing facilities.

The approved settlement includes the construction of a 420 MW Lyon County combustion turbine and a 300 MW 4-hour Sherco battery energy storage system, both company-owned. The agreement also allows for the negotiation of multiple power purchase agreements (PPAs).

A notable feature of the plan is the addition of 3,200 MW of wind, 400 MW of solar, and 600 MW of stand-alone storage by 2030. These additions are expected to be partially fulfilled by resources acquired through the 2024 request for proposal (RFP) process. Approximately 2,800 MW of wind energy is projected to utilize the Minnesota Energy Connection transmission line.

The MPUC also approved life extensions for the Prairie Island and Monticello nuclear plants into the early 2050s. Furthermore, the Red Wing and Mankato refuse-derived fuel plants received an extension to operate until 2037.

NSP-Minnesota has been instructed to propose a tariff by July 15, 2025, for customers with super-large loads, which primarily consist of data centers. Additional RFPs for approved resource needs are slated to be filed in late 2025 or early 2026.

The company’s forward-looking statements, as detailed in the report, caution about risks and uncertainties that could impact actual results, including operational safety, commodity risks, economic conditions, regulatory changes, and environmental concerns, among others.

This press release statement is based on the latest 8-K filing by Xcel Energy Inc. with the Securities and Exchange Commission.

In other recent news, Xcel Energy reported mixed fourth-quarter results, with earnings falling short of analyst expectations. The company posted adjusted earnings per share of $0.81, missing the analyst consensus of $0.89. Revenue for the quarter was $3.12 billion, significantly below the anticipated $3.77 billion. Despite this, Xcel Energy reaffirmed its 2025 earnings per share guidance range of $3.75 to $3.85, aligning closely with the current analyst consensus. Additionally, Xcel Energy received approval from the Minnesota Public Utilities Commission for its comprehensive resource plan, which includes significant expansions in renewable energy and storage systems. The plan outlines the addition of a 420 MW combustion turbine and a 300 MW battery energy storage system, alongside extensions for nuclear and refuse-derived fuel plants. The commission also approved life extensions for key facilities and directed the company to propose new tariffs by mid-2025. These developments reflect Xcel Energy’s strategic shift towards sustainable energy solutions.

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