Xcel Energy has rolled out a five year capital plan of $70 billion, up 17 percent from its previous $60 billion plan, unveiled on its third quarter earnings call on October 29. Renewable generation accounts for nearly three quarters of the new build: 9.2 gigawatts of renewables costing about $21.7 billion, plus 2.3 gigawatts of energy storage and 3.3 gigawatts of natural gas generation. The plan also includes 2,400 miles of new transmission and $4 billion for wildfire mitigation.
About $7 billion of the plan serves data centers already under contract. Chief executive Bob Frenzel said the company could spend a further $10 billion outside the plan on projects in pending requests for proposals covering more than 15 gigawatts, high voltage transmission and infrastructure for the 4 gigawatts of new data centers it expects to contract before the end of 2027. Frenzel said existing customers should not subsidise new large loads.
To finance the plan Xcel will take on $26 billion in debt and issue $8 billion in equity, about 40 percent of which is already contracted, chief financial officer Brian Van Abel said. Separately, the company agreed earlier in October to sell gas and electric assets in Michigan, serving 9,000 electric and 6,000 gas customers and valued at $150 million, to Upper Peninsula Power Co. and SEMCO Energy Gas Co., with closing expected by the end of 2027 at a confidential price.
Third quarter net income rose 83 percent to $960 million, helped by weather, rising sales and rate case outcomes in Minnesota and Colorado. The plan carries a known overhang: Xcel has settled 358 claims from the 2024 Smokehouse Creek fire for $410 million, 141 plaintiffs remain, and the company says liabilities could exceed its $525 million insurance policy, according to its quarterly SEC filing.