Street Calls of the Week
Northern States Power Company, a Minnesota-based subsidiary of Xcel Energy Inc. (NASDAQ:XEL), filed a request Monday with the South Dakota Public Utilities Commission for a net annual electric rate increase of $44 million, representing a 15% rise. The utility giant, currently valued at $39 billion and maintaining a remarkable 54-year streak of consecutive dividend payments, has demonstrated strong financial stability with a 3.4% current dividend yield. 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 is seeking to implement the new rates beginning January 1, 2026. According to information provided in the press release statement, if approved as filed, the proposed rate adjustment would result in an average annual residential bill increase of 3% over the period from 2016 to 2026.
The filing was disclosed in a report to the Securities and Exchange Commission.
In other recent news, Northern States Power Company has issued $250 million in 5.65% First Mortgage Bonds due in 2054. This bond issuance was conducted through an underwriting agreement involving BNP Paribas (OTC:BNPQY) Securities Corp., CIBC (TSX:CM) World Markets Corp., and RBC Capital Markets, LLC. Meanwhile, Xcel Energy has appointed Ryan Long as its new executive vice president and chief legal and compliance officer. Long will oversee legal and compliance operations while continuing to manage operations in Minnesota, North Dakota, and South Dakota until a replacement is found.
In a separate development, Xcel Energy’s shareholders have approved the executive compensation package and the appointment of Deloitte & Touche LLP as the independent auditor for the year. The approval of these resolutions indicates strong shareholder confidence in the company’s management and governance practices. Additionally, Xcel Energy declared a quarterly dividend of 57 cents per share, payable on July 20, 2025, to shareholders of record as of June 13, 2025. This dividend announcement is part of Xcel Energy’s routine financial operations and reflects its commitment to delivering value to shareholders.
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