Reporting strong first-quarter results from its multi-state utility operations, Xcel Energy is basking in an era of “constructive regulation,” said CFO Ben Fowke, who reported increased first-quarter-over-quarter earnings Thursday during a conference call with financial analysts. Xcel had “solid” results, Fowke said, despite experiencing an overall revenue drop in the first quarter of more than $300 million, compared to the same period in 2008.

Xcel profits were $174 million, or 38 cents/share, in the first three months of this year, compared with $153 million, or 35 cents/share, for the same period last year. Operating revenues were $2.69 billion, compared to $3.02 billion for the first quarter of 2008, and the drop was mostly due to a large reduction in natural gas revenues to $788 million for this year’s first quarter from about $1.03 billion a year ago.

There are major rate case settlements pending in Minnesota and Colorado, and a third one in the formative stages in New Mexico for Xcel’s Texas-based Southwestern Public Service Co., said Fowke. He cited the rate cases as examples of the growing rapprochement between Xcel and various state regulatory commissions.

In response to a question, Fowke also talked about the proposed rate stabilization plan in Minnesota for Xcel’s planned upgrades at a nuclear generation facility it operates. “This is to help us have the recovery need and potentially eliminate the need for filing a lot of rate cases as we start to upgrade our nuclear plant. Obviously, we always have the option of filing rate cases in Minnesota on a interim or test year basis, but the goal of the stabilization plan is to cut back on the numbers of cases.”

Short of the stabilization plan being adopted, Xcel is prepared to file the rate case, which could be large, he said.

“As a result of our strong balance sheet and constructive regulation, we continue to make significant capital investments in our utilities, which has long-term value and benefits to both customers and shareholders,” Fowke said.

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