With coronavirus shutdowns sapping commercial-power demand, Xcel Energy is expecting a "severe impact" to electricity sales in its current quarter, but not enough to change its 2020 profit forecast.
"We can take actions to weather the impact of COVID-19," Xcel CEO Ben Fowke told stock analysts in a conference call Thursday.
That includes cutting operating and maintenance expenses by 4% to 5% in 2020 to offset revenue declines.
Workplace closures and production slowdowns prompted by COVID-19 have sapped commercial and industrial power sales nationwide — and Xcel is no exception.
The Minneapolis-based company reported Thursday that its preliminary electricity revenue in April was down 9.6% over a year ago, driven by a 13.7% fall in commercial and industrial sales.
Residential power sales rose 3.2%, reflecting the coronavirus-induced shift to working at home.
COVID-19's economic effects are expected to diminish in the year's second half, but not disappear, Xcel reported. Under Xcel's new "base" electric sales scenario, there will be a "severe impact through [the second quarter] with slower recovery and lingering effects."
For the year, Xcel is forecasting a 4% decline in total electricity revenue, driven by a 6% fall in commercial and industrial sales.