Dive Brief:
- Xcel Energy reported 2015 second quarter GAAP and ongoing earnings of $197 million, or 39 cents per share – largely flat compared with $195 million a year ago.
- The company saw increased electric margins due to new rates and riders in various jurisdictions, as well as a lower earnings test refund at Public Service Company of Colorado.
- CEO Ben Fowke praised a recent decision in Minnesota which limited community sharded solar arrays to no more than 5 MW, saying the utility believes larger projects are more economical and do not force other customers to subsidize them.
Dive Insight:
Xcel CEO Fowke told analysts last week the company was pleased Minnesota regulators have supported a settlement with smaller developers. That deal limited solar gardens to no more than 5 MW – five times what Xcel had initially requested.
Minnesota will have “one of the largest community solar gardens in the country,” he said, while also stressing the deal “minimizes the impact of the program on our customers' bills."
“Xcel Energy continues to be a major advocate of solar and we view it as an important and growing component of our resource mix,” Fowke said. “However, we want to ensure that it's done at the most attractive price point for our customers. … While solar gardens and rooftop solar have a place in our portfolio as an option for consumers, because they require heavy subsidization from non-participants, you will continue to see us advocate that the primary focus be on utility scale solar.”
The company reaffirmed its 2015 ongoing earnings guidance, between $2 and $2.15/share, despite lower-than-anticipated sales, unfavorable weather and adjustments to Xcel's rate request in Minnesota.
While electric margins and the PSC earnings test refund benefited earnings in the second quarter, the increases were offset by higher depreciation, lower allowance for funds used during construction and higher operating and maintenance expenses.