Despite rate case approvals providing more than $100 million in additional revenues last year, Minneapolis-based Xcel Energy Wednesday reported 2007 earnings that were essentially flat compared to 2006, and it will be focusing on general rate cases for its utility operations in Minnesota and Colorado this year. For ongoing operations diluted earnings were up compared to 2006 ($1.43/share vs. $1.30/share) and beat the guidance range for the year.

On a generally accepted accounting principles basis, Xcel 2007 earnings were $577 million, or $1.35/diluted share, compared to 2006 results of $572 million, or $1.36/diluted share. CEO Richard Kelly called it a “very successful year,” noting that the company with natural gas and electric utility operations in eight West and Midwest states had achieved a number of strategic operating and financial goals during 2007.

Even with the national slowdown in housing and the fears of economic recession, Xcel is forecasting electric demand growth rates in its service territories in 2008 ranging from 1.8% to 2.2%.

General rate cases were completed for electric operations in Texas and Wisconsin, and for natural gas cases in Colorado, Minnesota, North Dakota and Wisconsin. After “underperforming for several years,” Xcel’s utility operations in Texas and New Mexico have begun to turn things around, according to CFO Ben Fowke, speaking with financial analysts on a conference call Wednesday. “We’ve set the stage for improved financial performance,” he said.

A key area going forward are general rate filings in both Colorado and Minnesota where Xcel has its largest utility operations, and the implementation of integrated resource plans in both states that call for substantial reductions in greenhouse gas emissions and adding several thousand megawatts of renewable-based electric generation collectively, Fowke said.

“Both resource plans in Minnesota and Colorado increase our use of renewable energy and not only reduce carbon emissions, but reduce our reliance on coal and natural gas. The plans also reflect our desire to own an increasing share of the incremental generation coming onto our system,” he said.

Xcel currently has a request for proposals (RFP) out in Minnesota, asking for up to an additional 500-700 MW of wind-generated power (potentially owning up to 500 MW of that), and it plans to issue another renewable RFP in Colorado in the first quarter this year. It has filed to expand an existing natural gas-fired plant by 300 MW, replacing one of its power purchase agreements when the new capacity comes online.

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