Xcel Energy Subsidiary Reaches New Mexico Rate Settlement
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Xcel Energy ( (XEL) ) just unveiled an update.
Southwestern Public Service Company, a New Mexico utility and wholly owned subsidiary of Xcel Energy, filed an electric rate case with the New Mexico Public Regulation Commission in November 2025, later updating its request in March 2026 to seek a $168 million revenue increase based on a future test year ending Nov. 30, 2027. On June 22, 2026, SPS and several stakeholder groups submitted a non-unanimous stipulation proposing a smaller $90 million base rate increase, a 9.5% return on equity, and a 54.70% equity ratio, with a hearing set for July 2026 and a regulatory decision expected in the fourth quarter of 2026.
The proposed settlement would raise customer base rates by about 7.7%, representing an annual average increase of 2.4% since the last rate case, potentially improving SPS’s cost recovery and capital structure while moderating the size of the initially requested hike. Xcel Energy reaffirmed its 2026 ongoing earnings per share guidance, signaling confidence that the regulatory process in New Mexico, despite staff opposition to some stipulation elements and numerous identified risks, will not materially derail its near-term financial outlook.
The most recent analyst rating on (XEL) stock is a Buy
with a $90.00 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 regulated-utility profitability, tempered by elevated leverage and volatile recent operating cash flow. Technical signals are currently weak, valuation is supported by the dividend but limited by a higher P/E, and the latest earnings call was moderately positive on reaffirmed guidance and long-term growth/investment visibility despite ongoing regulatory and wildfire-related risks.
To see Spark’s full report on XEL stock,
click here.
More about Xcel Energy
Xcel Energy Inc. is a regulated electric utility serving customers through subsidiaries such as Southwestern Public Service Company in New Mexico. The company operates large retail rate bases and earns returns set by state regulators, making its earnings and capital plans closely tied to outcomes of rate cases and regulatory proceedings in its service territories.
Average Trading Volume: 5,345,968
Technical Sentiment Signal: Strong Buy
Current Market Cap: $48.32B
For an in-depth examination of XEL stock, go to TipRanks’ Overview page.
