Energy company Xcel Energy Inc.’s (XEL) lobbying expenses during the second-quarter 2010 amounted to $400,000, which reflected a reduction of $40,000 from the year-ago quarter and $60,000 from the first-quarter 2010.
Xcel lobbied with Congress as well as federal agencies, which includes the Environmental Protection Agency, the Federal Energy Regulatory Commission and the Interior Department.
During the second-quarter 2010, Xcel lobbied on issues relating to pending legislation, the company also lobbied for protection of interests of natural gas utilities in pipeline safety, jurisdictional issues under the Clean Water Act and also for coal ash and general chemical security proposals. Xcel also lobbied for electric infrastructure and corporate taxation.
Presently, Xcel has few pending rate cases in different regions in which it operates. In Minnesota, the office of energy security will likely come to a decision on the gas rate case on this fall. The company expects the commission will approve an increase of $7.5 million.
The company also filed for a $62 million electric rate increase in Texas. The intervener testimony for this case is scheduled for filing in September, 2010. Xcel expects that the new rates will come into effect in early 2011.
In August 2010, Xcel filed an application with the Public Service Commission of Wisconsin for an increase of $29 million in electric base rates effective Jan 1, 2011. The company is expected to file for another electric rate increase in Minnesota later this year.
The adjusted earnings of Xcel at the end of second quarter 2010 were 29 cents per share compared with 25 cents per share in the year-ago comparable period. The Zacks Consensus Estimates for third quarter 2010, fiscal year 2010 and fiscal year 2011 are 54 cents per share, $1.61 per share and $1.74 per share, respectively.
Since, Xcel Energy is a regulated utility, the government has some degree of control over Xcel’s profitability and the company has to receive approval before it can increase electricity rates. To receive approvals and augment the decision on electricity rates the company from time to time spends on lobbying.
Xcel currently retains a Zacks #4 Rank (short-term Sell rating). We presently maintain a Neutral rating on the stock.
XCEL ENERGY INC (XEL): Free Stock Analysis Report
Zacks Investment Research
