Xcel Energy Poised To Benefit From Continued Investments
Zacks Investment Research | Jun 22, 2017 10:51PM ET
We issued an updated research report on Xcel Energy Inc. (NYSE:XEL) on Jun 22. It is a holding company, with subsidiaries engaged primarily in the utility business.
To offer reliable services to customers and effectively meet rising electricity demand, Xcel Energy makes consistent investment in utility assets. Toward this end, the company plans to invest $18.4 billion in the next five year period of 2017-2021, in its transmission, distribution, electric generation and renewable projects.
Moreover, considering the untapped opportunities of the emerging green energy market, Xcel Energy’s large-scale clean energy projects are expected to be beneficial in the long run. In this line, the company is currently diversifying its generation portfolio with emphasis on renewable sources with over $3.5 billion investment in the cards over a span of five years.
These sumptuous investments are anticipated to drive rate base growth of 5.4% compounded annually, consequently aiding the top line.
With respect to expanding renewable assets, the company’s 600 megawatt (MW) Rush Creek wind project in Colorado has been approved by the Colorado Public Utilities Commission in September and is expected to begin operations in 2018.
These initiatives have allowed the company to outperform the broader industry. In the last 12 months, Xcel Energy’s shares rallied 14.5% compared with the Zacks categorized Zacks Investment Research
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