Quantbot takes new $6.1M stake in Xcel Energy as revenue slips 5%

Xcel Energy (XEL) fell 3.4% due to sector-wide pressure from rising Treasury yields and a Colorado rate decision approving a smaller increase than requested. The company reaffirmed its 2026 EPS guidance in July, and analysts' price targets range from $90 to $96. Insider sales and hedge fund activity were also noted.

Colorado regulators approved a rate increase for Xcel Energy, raising monthly electric bills for some residents. The decision was made by the Colorado Public Utilities Commission.

Xcel Energy's Colorado residential customers will see a $5/month bill increase, approved by regulators. Commercial customers will pay $7.29 more. The increase allows Xcel to boost annual revenue by $157M, less than the $355M originally requested. Regulators expressed concerns about rising capital expenditures and affordability, with Xcel's spending increasing from $1.6B in 2021 to $6B expected in 2026.

Utility Dive roundup covers US climate grants, state VPP and microgrid bills, and utility earnings and projects. It notes a divided appeals court blocked EPA efforts to reclaim $20B Greenhouse Gas Reduction Fund grants. It also cites Southern Co’s 17 GW large-load contracts, Eversource’s Q2 income drop, and PJM’s capacity backstop plan amid data-center demand.

Minnesota’s Public Utilities Commission approved Xcel Energy’s Integrated Distribution Plan, adding mandates to improve flexible DER interconnection, update net-load forecasting, and file a virtual power plant pilot by March 1, 2027. The order also requires filings through end-2026, plus workshops, a wildfire mitigation plan, and an independent audit of technical standards.

Xcel Energy asked Colorado regulators for a $225 million rate increase, which the Public Utilities Commission reduced to $166 million. Xcel said the plan would fund grid and generation upgrades, including replacing thousands of poles and transformers and adding 775 MW of generation. A final PUC decision is due Aug. 17, with Xcel able to appeal. Customers oppose any hike.