Xcel Energy Reaches Partial Settlement in Minnesota Gas Case
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Xcel Energy ( (XEL) ) has provided an update.
In October 2025, Northern States Power Company-Minnesota filed a Minnesota natural gas rate case seeking a total revenue increase of $62 million, or 8.2%, based on a 2026 forecast test year, a proposed return on equity of 10.65%, a 52.5% equity ratio and a $1.5 billion rate base. Interim rates of $51 million took effect on Jan. 1, 2026, with an evidentiary hearing scheduled for May 11-12, 2026, an administrative law judge report due Sept. 1, 2026, and a Minnesota Public Utilities Commission decision expected in November 2026.
On May 8, 2026, the utility and certain intervenors reached a non-unanimous settlement that would trim the requested revenue increase to $38 million and lift the weighted average cost of capital to 7.21% from 7.16%, signaling a compromise between customer bill impacts and the company’s need to fund its gas infrastructure. The outcome of the proceeding will shape NSP-Minnesota’s future earnings profile and capital recovery in its natural gas segment, with implications for ratepayers and investors as regulators balance affordability and reliability.
The most recent analyst rating on (XEL) stock is a Buy with a $96.00 price target. To see the full list of analyst forecasts on Xcel Energy stock, see the XEL Stock Forecast page.
Spark’s Take on XEL Stock
According to Spark, TipRanks’ AI Analyst, XEL is a Neutral.
The score is driven primarily by stable utility profitability but constrained by elevated/rising leverage and volatile cash generation (including a sharp TTM operating cash flow drop). Technicals are mildly supportive with the stock above key moving averages, while valuation looks somewhat rich for the profile despite a moderate dividend. The latest earnings call reinforces the growth/investment runway and reaffirmed guidance, but meaningful regulatory and wildfire-related risks remain.
To see Spark’s full report on XEL stock, click here.
More about Xcel Energy
Xcel Energy, through its subsidiary Northern States Power Company-Minnesota, operates as a regulated utility providing natural gas and electricity across the Midwest. The company’s Minnesota natural gas business is overseen by the Minnesota Public Utilities Commission and relies on rate cases to recover infrastructure investments and earn an authorized return on equity.
Average Trading Volume: 4,635,606
Technical Sentiment Signal: Strong Buy
Current Market Cap: $49.56B
See more insights into XEL stock on TipRanks’ Stock Analysis page.
