Xcel Energy subsidiary requests $44 million rate increase in South Dakota

Published 30/06/2025, 19:16
Xcel Energy subsidiary requests $44 million rate increase in South Dakota

Northern States Power Company, a Minnesota-based subsidiary of Xcel Energy Inc. (NASDAQ:XEL), a $39 billion utility company with a solid dividend yield of 3.36%, filed a request Monday with the South Dakota Public Utilities Commission seeking a net annual electric rate increase of $44 million, or 15%. According to InvestingPro, XEL has maintained dividend payments for 54 consecutive years, demonstrating remarkable financial stability. The filing is based on a 2024 historic test year and includes a requested return on equity of 10.3%, a rate base of approximately $1.2 billion, and an equity ratio of 52.87%.

The company has proposed that the new rates take effect on January 1, 2026. According to the filing, if the request is approved as submitted, the average annual residential electric bill would increase by 3% over the period from 2016 to 2026.

This information is based on a statement in a press release included in a recent SEC filing.

In other recent news, Xcel Energy has made several notable announcements. The company’s subsidiary, Northern States Power Company, has filed for a 15% electric rate increase in South Dakota, aiming for a $44 million net annual rise. This proposal, if approved, would impact residential bills starting in 2026. Additionally, Northern States Power issued $250 million in 5.65% First Mortgage Bonds due in 2054, with BNP Paribas (OTC:BNPQY) Securities Corp., CIBC (TSX:CM) World Markets Corp., and RBC Capital Markets, LLC acting as underwriters. In leadership changes, Ryan Long has been appointed as Xcel Energy’s chief legal and compliance officer, taking over from Rob Berntsen. Shareholders of Xcel Energy recently approved the executive compensation package and the election of all board directors during their annual meeting. Furthermore, Xcel Energy declared a quarterly dividend of 57 cents per share, payable in July. These developments reflect ongoing strategic and financial activities within the company.

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