Xcel Energy Raises Capital Spending Plan to $70 Billion for 2027–2031
Key Facts
Xcel Energy raised its estimate for core capital expenditures to $70 billion for 2027–2031 and announced ongoing earnings guidance of $4.48 to $4.62 per share for 2027, according to its third-quarter results statement published on October 29. The plan aims to meet demand growth, upgrade transmission and distribution systems, and provide cleaner, safe, reliable and affordable energy. The company also narrowed its 2026 ongoing earnings guidance to $4.10–$4.16 per share, from $4.04–$4.16 previously. The company defines ongoing earnings as excluding certain nonrecurring or infrequent items, so the 2027 range applies to this measure rather than earnings under U.S. accounting standards. The statement presented the new capital plan alongside quarterly results that were higher than a year earlier.
Diluted earnings per share in the third quarter were $1.52 under both the ongoing earnings and GAAP measures, compared with ongoing earnings of $1.24 and GAAP earnings of $0.88 in the same quarter of 2025. The company reported net income of $960 million, up from $524 million a year earlier. Total operating revenues also rose to $4.172 billion from $3.915 billion. These figures show year-over-year improvement in earnings and revenue, while the company statement cited several factors that affected earnings per share. In the second quarter of 2026, diluted ongoing earnings were $0.93 per share, compared with $0.75 in the same period of 2025.
The company attributed the change in earnings per share mainly to increased recovery of electric infrastructure investments, equity-method investment earnings and warmer-than-normal weather. It said higher financing costs partly offset those factors. This contrast between supporting drivers and financing costs provides some context for the revision to 2026 ongoing earnings guidance, whose lower end was raised while the upper end remained at $4.16 per share. In its second-quarter results announcement, the company had kept its 2026 range at $4.04–$4.16. In the new announcement, it also began issuing a separate 2027 range of $4.48–$4.62 per share.
The plan for 2027–2031 includes more than 9 gigawatts of renewable generation capacity, more than 3 gigawatts of natural gas generation and more than 2 gigawatts of energy storage. It also includes the construction of 2,400 miles of high-voltage transmission lines. The company allocated about $4 billion to investments in transmission and distribution systems to strengthen resilience and reduce the risk of future wildfires. The company said the plan also aims to modernize the grid and keep pace with demand growth. These components combine generation and storage capacity with grid investments under the $70 billion core capital spending estimate.
Xcel estimated that financing for the plan would include about $26 billion in debt and $8 billion in equity. These amounts are part of the core spending plan for 2027–2031, which the company raised to $70 billion. In February 2026, the company had announced a $60 billion core capital plan for 2026–2030, with more than $10 billion in additional investments. The latest estimate puts core spending at a higher level, with the plan horizon shifting forward by one year. Alongside the financing details, the company set long-term earnings and dividend growth targets.
The company is targeting long-term annual earnings-per-share growth of 6% to 8% or more, and annual dividend increases of 4% to 6%. It also set a target dividend payout ratio of 45% to 55%. These targets link earnings growth with dividend policy, alongside the five-year capital investment program. The CEO said the company expects to contract for 4 gigawatts of new data centers before the end of 2027. He added that additional investment opportunities exceed $10 billion and extend into the early 2030s, beyond the current core plan.