Xcel Energy affirms FY23 EPS $3.30-$3.40, updates on MN rate case

FY23 consensus is $3.37. In a regulatory 8-K filing yesterday, the company stated: "In October 2021, Northern States Power Company, a Minnesota corporation (NSP-Minnesota) and a wholly owned subsidiary of Xcel Energy Inc., filed a three-year electric rate case with the Minnesota Public Utilities Commission. The rate case is based on a requested return on equity (ROE) of 10.2%, a 52.5% equity ratio and forward test years. In December 2021, the MPUC approved interim rates, subject to refund, of $247 million, effective Jan. 1, 2022. In October 2022, several parties filed testimony with various recommendations. In November 2022, NSP-Minnesota revised its rate request to $498 million over three years. On March 31, 2023, the Administrative Law Judge (ALJ) presiding over the case issued her report. NSP-Minnesota estimates that the ALJ recommendation would result in a rate increase of approximately $384 million over three years from 2022-2024, based on a ROE of 9.87% and an equity ratio of 52.5%. In addition, it also reflects rate reductions associated with certain wind and nuclear generation life extensions and Midcontinent Independent System Operator, Inc. (MISO) capacity revenues and related tracker, as proposed in NSP-Minnesota’s revised rate request. A MPUC order is expected on June 30, 2023. Xcel Energy reaffirms its 2023 GAAP and ongoing earnings guidance of $3.30 to $3.40 per share, which is based on several key assumptions, including constructive regulatory outcomes."