Xcel puts 9.2 GW of renewables at the centre of a $70 billion plan
Serguey Asael Shinder2 min readXcel Energy raised its five-year capital plan to $70 billion, 17% above the previous $60 billion, on its third-quarter earnings call on 29 October, Utility Dive reported. The utility, whose territory includes Minnesota, Colorado and Texas, said renewables will make up nearly three quarters of the new generation it builds under the plan.
The programme calls for 9.2 GW of renewable generation, costing about $21.7 billion, 2.3 GW of energy storage and 3.3 GW of natural gas generation. It also includes 2,400 miles of new transmission and $4 billion for wildfire mitigation. About $7 billion is earmarked for data centre projects already under contract. Chief executive Bob Frenzel said a further $10 billion could follow for work not yet in the plan, including more than 15 GW in pending requests for proposals and the infrastructure for about 4 GW of data centre agreements the company expects to sign by the end of 2027. He said existing customers should not subsidise new large loads.
To pay for it, Xcel plans to raise $26 billion in debt and issue $8 billion in equity, about 40% of which is already contracted, according to chief financial officer Brian Van Abel. Third-quarter net income rose 83% to $960 million, helped by weather, rising electricity sales and recent rate decisions. Weather-adjusted electricity sales were up 2.5% for the year to date.
The company still cannot estimate its total liability for the 2024 Smokehouse Creek fire in Texas, where litigation brought by the state's attorney general is expected to continue into 2027, according to its quarterly SEC filing.
What it means
The plan is a bet that data-centre demand arrives on schedule and that regulators let the cost into rates. The financing mix shows the strain: $34 billion of new debt and equity against a $70 billion plan, while the company seeks to freeze Minnesota rates for 2027 and 2028. The share of renewables also matters for buyers: data centre customers that want clean supply are part of how Xcel pitches its territory.