Citing stronger margins for both its electric and natural gas utility operations spread around 10 western and midwestern states, Xcel Energy Tuesday reported net income in the second quarter of $98 million, or 24 cents/share, compared with $83 million, or 20 cents/share, for the same period in 2005.

The regulated utilities contributed $102 million, or 24 cents/share, compared with $94 million, or 22 cents/share, for the second quarter last year.

Six-month net income for the period ending last June 30 was $249.5 million, or 61 cents/share, compared with $204.8 million, or 50 cents/share, for the same period last year.

Xcel said most of the earnings growth came from “stronger base electric and natural gas utility margins,” although they were partially offset by lower short-term wholesale margins. Aiding the stronger retail utility margins were a natural gas utility rate increase in Colorado, an electric/natural gas rate hike in Wisconsin, an interim electric rate increase in Minnesota, and revenue from a Metro Emissions Reduction Project in the Minneapolis-St. Paul area.

CEO Richard Kelley said the earnings growth the first half of this year demonstrates that “our strategy is delivering the results we anticipated. Earnings growth is on track with our objectives, and we are reaffirming our 2006 earnings guidance of $1.25-1.35/share.”

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