Xcel Energy subsidiary advances New Mexico rate case, shares trade below KeyBanc target

By Christina Vogel, Background & Management desk. Reviewed prior to publication on 2026-06-23, 10:20.

Xcel Energy (US98389B1008) is back in the regulatory spotlight as its Southwestern Public Service subsidiary pushes ahead with a new electric rate framework in New Mexico, while the NASDAQ-listed utility continues to trade at a discount to a 90 dollar analyst target.

New Mexico stipulation details

Southwestern Public Service Company, wholly owned by Xcel Energy and operating in New Mexico and Texas, has filed a comprehensive non-unanimous stipulation in its ongoing electric rate case with the New Mexico Public Regulation Commission. The filing is backed by the New Mexico Department of Justice, the New Mexico Large Customer Group and several additional parties, while NMPRC staff opposes certain elements of the proposed agreement.

The stipulation requests a 90 million dollar base rate revenue increase, which Investing.com calculates as a 7.7 percent total increase, or around 2.4 percent per year since the last rate case using a future test year ending 30 November 2027. A hearing on the non-unanimous stipulation is scheduled for July, giving regulators, consumer advocates and Xcel Energy a clear timetable to refine the allowed revenue path for SPS.

Guidance reaffirmed and other regulatory wins

Alongside the New Mexico development, Xcel Energy has reaffirmed its 2026 ongoing earnings per share guidance in a range of 4.04 to 4.16 dollars, matching the upper end of analyst forecasts at 4.16 dollars cited by InvestingPro. At a recent closing price of 78.81 dollars on NASDAQ, the shares screen as undervalued relative to that earnings profile in the Investing.com model.

Regulation in other core territories is also moving in the company’s favor. The Minnesota Public Utilities Commission has verbally approved a rate increase for Northern States Power Company, another Xcel Energy subsidiary, authorizing roughly 211 million dollars of higher electric revenues over two years, equivalent to about 2.9 percent per year, and setting a 9.60 percent allowed return on equity with a 52.5 percent equity ratio.

How Xcel Energy earns its money

Xcel Energy generates most of its revenue from regulated electric and natural gas utilities serving customers in Colorado, Minnesota, Wisconsin, the Dakotas, Texas and New Mexico, with earnings driven by approved rate bases and allowed returns set by commissions such as the NMPRC and MPUC.

Where the shares trade today

The Xcel Energy shares (US98389B1008) last closed on NASDAQ at 78.81 US dollars on 2026-06-22, 16:00 Eastern Time.

This article is for informational purposes only and does not constitute investment advice, investment recommendation or an offer or solicitation to buy or sell any financial instrument.