On June 30, 2025, Northern States Power Company, a Minnesota corporation and a wholly owned subsidiary of Xcel Energy Inc. (XEL, Financial), submitted a request to the South Dakota Public Utilities Commission for a net annual electric rate increase of $44 million, representing a 15% hike. This proposal is based on a 2024 historic test year and includes a requested return on equity of 10.3%, a rate base of approximately $1.2 billion, and an equity ratio of 52.87%. If approved, the new rates are expected to take effect on January 1, 2026.
The proposed rate increase would result in an average annual residential bill increase of 3% over the period from 2016 to 2026. Xcel Energy (XEL, Financial) aims to address various operational and financial challenges, including rising energy prices, fuel costs, and the need for infrastructure improvements. The company also highlights potential risks such as changes in regulation, economic conditions, and cybersecurity threats that could impact its financial performance.
As Xcel Energy (XEL, Financial) navigates these complexities, the company remains focused on maintaining operational safety, managing commodity risks, and ensuring a qualified workforce to support its long-term strategic goals. The outcome of this rate case will be closely watched by investors and stakeholders, as it could significantly influence the company's financial health and ability to invest in future growth.
Should you invest in Xcel Energy Inc (XEL, Financial) right now? Before you do it, it’s important to understand the business profitability and stock valuations, and find out what the warning signs are about. See the in-depth Xcel Energy Inc (XEL) stock research here.
