Xcel Energy increases capital spending by more than 30%

Xcel Energy says it needs to increase infrastructure spending by $11 billion over the next five years to address a range of challenges hitting the power sector at the same time, including the transition to clean energy, an acceleration in the number of energy-hungry data centers etc. More intense forest fires due to climate change.

Just last year, Minneapolis-based Xcel announced it would spend $34 billion from 2025 to 2030. But on Thursday it said it needed $45 billion to keep up with demand for its services – nearly 30% of which would be spent in Minnesota and the Dakotas.

About 63% will fund upgrades and additions designed to modernize and toughen the aging transmission and distribution system. This will help Xcel transport wind and solar energy over long distances and protect against severe weather and wildfires, as well as what the company calls national security issues.

Xcel's territory includes eight states, including Texas and Colorado, which have seen devastating wildfires in recent years that led to lawsuits against the company.

“We as a company, we as an industry will likely have to invest more quickly than we have in the past to keep up with the reliability and secure service for our customer base,” said Bob Frenzel, president of Xcel. said in an interview. “Our customers demand speed and scalability. The climate requires speed and scale.”

Xcel also said it would ask Minnesota regulators on Friday for a rate increase, but officials did not specify how much.

The investment plan was announced alongside the release of Xcel's third-quarter earnings report, which rose 4% to $682 million, or $1.21 per share. Sales rose slightly to $3.6 billion.