Xcel Energy’s quarterly profit is boosted by rising electricity demand and rate increases

Xcel Energy, a U.S. utility, reported a 47% increase in its second-quarter profits on Thursday, boosted by higher revenues through rate increases, even though rising interest rates, depreciation, and operating costs offset some of the gains.

Xcel has been able to increase its revenue in the third quarter through rate increases approved by the regulator. This helped it pay for the cost of upgrading the grid and building new sources of power, as well as funding other large projects.

Utilities are adding billions to their budgets for capital expenditures, as they respond to massive requests from data centers for more power.

CEO Bob Frenzel stated that Xcel had made "considerable" progress during the third quarter in investments to improve system reliability and meet "unprecedented demand for electric power."

Frenzel stated that "in Texas and New Mexico we have filed our recommended portfolio of nearly 5,200MW of new generation of which 4,500MW will be owned by the company."

Xcel reported a 5% increase in total operating costs from a quarter ago, to $2.71 Billion. Total interest and financing charges increased 6.3% to $322 Million.

Xcel has reported a profit of $444m, or 75c per share for the three-month period ending June 30. This is higher than its previous year's profit of $302m, or 54c per share. (Reporting by Arunima Kumar in Bengaluru; Editing by Sahal Muhammed)

(source: Reuters)