Xcel quarterly profits rise nearly 5%, partly from rate increases

Xcel Energy posted a satisfactory first quarter with profits increasing 4.5% and topping Wall Street forecasts.

On the negative side, the company said an extended outage at a large and troubled coal power plant in Colorado will cost it around $25 million.

Minneapolis-based Xcel on Thursday reported earnings of $380 million, or 70 cents a share, up from $362 million or 67 cents a share in 2021's first quarter.

Stock analysts on average were expecting per share profits of 68 cents.

"Xcel Energy achieved solid first quarter results, and we have reaffirmed our 2022 earnings guidance," Bob Frenzel, Xcel's CEO, said in a news statement.

The company's first quarter featured increased earnings from rate hikes in some of its territories, partially offset by higher depreciation, interest and operating and maintenance.

A higher income tax benefit in 2022's first quarter was instrumental in the year-over-year profit increase.

The plant is not expected to start producing power again until June. Xcel said the outage was due to a "transmission event," and that global supply-chain constraints have slowed repairs.

Comanche 3, which opened only 12 years ago, has had repeated operational problems. Xcel recently agreed to close the plant early in 2031.

Xcel, which owns Minnesota's largest electric utility and its second-biggest natural gas provider, recorded first-quarter sales of $3.75 billion, up from $3.54 billion a year ago.

Xcel's largest markets are Colorado and Minnesota. It also operates in Texas, New Mexico, Wisconsin, the Dakotas and a small slice of Michigan's Upper Peninsula.