US Xcel Energy Announces Approximately $70 Billion Capital Investment Plan in Second Quarter

en.Wedoany.com Reported - During its second quarter earnings call, Xcel Energy announced a base capital investment plan of approximately $60 billion for 2026-2030, with the potential to secure an additional $10 billion, bringing the total plan to roughly $70 billion. These funds will be used to build new transmission and generation resources to meet the growing electricity demand from data centers.

Under the plan, Xcel will invest in 11.4 GW of renewable generation, 3.4 GW of natural gas generation, 2.2 GW of energy storage, approximately 1,700 miles of new transmission lines, and $5 billion for wildfire mitigation. Investments classified under the "visible" category also include generation resources to support approximately 3 GW of incremental data center demand added to Xcel's target plan, with related load expected to gradually come online in the mid-2030s.

On data center load, Xcel currently has approximately 2 GW of data centers under contract or in construction, with 4 GW expected to be under contract by the end of 2027, and a project pipeline exceeding 20 GW, bringing the company's total data center pipeline to over 26 GW. CEO Bob Frenzel stated that the company remains confident in its ability to meet data center forecasts, citing the depth and breadth of the customer pipeline, proven capabilities in executing large-scale infrastructure projects, and the geographic diversity of high-probability pipeline projects across its service territories.

Xcel provides electricity and natural gas services across eight states: Minnesota, Colorado, Wisconsin, Michigan, North Dakota, South Dakota, New Mexico, and Texas. Frenzel noted that the base capital plan is "rooted in core investments," aiming to retire traditional coal-fired generation assets within this decade and make critical investments in transmission and distribution systems to support reliability, resilience, and industrial growth.

Chief Financial Officer Brian Van Abel reported that on a weather-adjusted basis, Xcel's year-to-date electric sales grew 2.1%, driven by increased energy sector activity in the Southwestern Public Service Co. region and increased manufacturing activity across operating companies. He expects full-year 2026 weather-adjusted electric sales to still grow 3%.

Van Abel stated that the company has reached settlements or outcomes in six ongoing rate cases, with long-term customer bill growth rates remaining at or below inflation and among the lowest in the nation. The Colorado settlement includes a $225 million base rate increase and a 9.3% return on equity, compared to the company's November proposal of a $356 million rate increase and a 9.8% return on equity. According to the company's presentation, the Colorado Public Utilities Commission (PUC) is expected to make a decision in the third quarter. There is also a pending settlement in New Mexico supporting a $90 million base rate increase and a 9.5% return on equity, versus the prior proposal of approximately $168 million in rates and a 10.5% return on equity, with state regulators expected to decide in the fourth quarter.

On financials, Xcel reaffirmed its 2026 ongoing earnings guidance of $4.04 to $4.16 per share and expects average annual earnings per share growth of 9% or more through 2030. Xcel reported second quarter 2026 earnings per share of 93 cents, compared to 75 cents in the same period of 2025.