Bulletin: Xcel Energy Inc. Has Modest Cushion In Its Financial Measures To Weather Weaker Regulatory Outcomes

DALLAS (S&P Global Ratings) June 8, 2023--S&P Global Ratings today said that Xcel Energy Inc. (A-/Stable/A-2) has a roughly 100 basis point cushion in its financial measures to weather weaker regulatory outcomes. The Minnesota Public Utilities Commission recently authorized a $306 million aggregate rate increase for Xcel subsidiary Northern States Power Co. (NSP; A-/Stable/A-2) for 2022-2024, which incorporates step increases of $92 million for 2022, $93 million for 2023, and $121 million for 2024. The multi-year rate outcome was premised on a 9.25% return on equity (ROE), which is below the national average for similar vertically integrated electric utilities. The approved rate increase reflects roughly 60% of the utility's November 2022 request. Incorporating this outcome, we expect NSP's stand-alone S&P

...June 8, 2023 DALLAS (S&P Global Ratings) June 8, 2023--S&P Global Ratings today said that Xcel Energy Inc. (A-/Stable/A-2) has a roughly 100 basis point cushion in its financial measures to weather weaker regulatory outcomes. The Minnesota Public Utilities Commission recently authorized a $306 million aggregate rate increase for Xcel subsidiary Northern States Power Co. (NSP; A-/Stable/A-2) for 2022-2024, which incorporates step increases of $92 million for 2022, $93 million for 2023, and $121 million for 2024. The multi-year rate outcome was premised on a 9.25% return on equity (ROE), which is below the national average for similar vertically integrated electric utilities. The approved rate increase reflects roughly 60% of the utility's November 2022 request. Incorporating this outcome, we expect NSP's stand-alone S&P Global Ratings-adjusted funds from operations (FFO) to debt will modestly weaken relative to our previous expectations. However, we expect it will remain robust at 21%-23%,...

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