Xcel Energy Unveils $70B Plan, 9.2 GW of Renewables — SkimNews
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- Xcel Energy unveiled a five-year, $70 billion capital plan, up 17% from its previous $60 billion plan, calling for 9.2 GW of renewables, 2.3 GW of energy storage and 3.3 GW of natural gas; renewables would make up nearly three-fourths of new generation, with about $21.7 billion for the renewable buildout, 2,400 miles of new transmission and $4 billion for wildfire mitigation.
- Xcel Energy earmarks about $7 billion of the plan for data-center projects already under contract and could spend an additional $10 billion beyond the plan on pending requests covering more than 15 GW; CEO Bob Frenzel said Xcel expects to contract 4 GW of new data centers before the end of next year and that existing customers should not subsidize new large loads.
- Brian Van Abel said Xcel will take on $26 billion of debt and issue $8 billion in equity, about 40% of which is already contracted, to finance the updated plan.
- Upper Peninsula Power and SEMCO ENERGY Gas will buy Xcel's Michigan gas and electric assets — including 9,000 electric and 6,000 gas customers — valued at $150 million, a sale Van Abel said should close by the end of 2027 with the price confidential.
- Xcel Energy reported third-quarter net income of $960 million, up 83% from $524 million a year earlier, which Van Abel attributed to favorable weather, increasing electric sales and a heavy rate-case calendar.
- Minnesota Public Utilities Commission approved a 2.9% annual rate increase in July expected to generate $211 million over two years, and Xcel filed an Oct. 9 rate stability plan to freeze rates at that level in 2027 and 2028; Colorado's CPUC approved a 1.7% annual rate worth $184 million in September, with a New Mexico decision due by the end of this year.
- Smokehouse Creek fire liability remains unquantified as litigation initiated by the Texas Attorney General's office continues into 2027; according to Xcel's quarterly SEC filing, 358 claims have been settled for $410 million, 141 plaintiffs' claims remain unresolved, the fire burned more than 1 million acres of the Texas Panhandle, and liabilities could exceed the company's $525 million insurance policy.
Why it matters: The plan's $26 billion in new debt and $8 billion in equity put the funding burden on Xcel's balance sheet and shareholders, while Bob Frenzel's pledge that existing customers should not subsidize new large loads meets the 4 GW of data centers Xcel expects to contract by the end of next year.
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