Does Xcel Energy’s (XEL) Colorado Rate Hike Request Hint at Shifting Regulatory Dynamics?

On November 21, 2025, Public Service Company of Colorado, a wholly owned subsidiary of Xcel Energy Inc., filed an electric rate case with the Colorado Public Utilities Commission, seeking a US$356 million revenue increase to help recover costs for extending operations at Comanche Unit 2. This filing introduces potential changes to Xcel Energy’s revenue and operational outlook in Colorado, reliant on regulatory review and approval expected by the third quarter of 2026. We’ll now examine how the proposed Colorado rate increase could influence Xcel Energy’s long-term investment narrative and regulatory environment.

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Xcel Energy Investment Narrative Recap

To be optimistic about Xcel Energy, an investor needs to believe in the company’s ability to successfully execute large capital investments in regulated clean energy infrastructure, supported by steady regulatory outcomes and customer demand growth. The recent Colorado rate case filing ties directly into this, as its outcome could influence the company’s near-term revenue trajectory, but until the commission’s decision in late 2026, it does not appear to materially alter the biggest immediate catalyst (rate approval) or the main risk (financing and regulatory setbacks) facing the business.

Relating closely to the Colorado filing, Xcel’s recent announcement on new power generation projects in Texas and New Mexico highlights its ongoing infrastructure buildout in response to demand growth. These measures reinforce the significance of regulatory approvals and timely execution as central to the company’s investment narrative and future earnings potential.

In sharp contrast, one risk investors should keep top of mind is the potential for regulatory delays or disapprovals in key jurisdictions…

Read the full narrative on Xcel Energy (it’s free!)

Xcel Energy’s narrative projects $17.4 billion in revenue and $2.9 billion in earnings by 2028. This requires 7.6% yearly revenue growth and an $0.8 billion increase in earnings from the current $2.1 billion.

Uncover how Xcel Energy’s forecasts yield a $88.47 fair value, a 8% upside to its current price.

Exploring Other PerspectivesXEL Community Fair Values as at Nov 2025

Simply Wall St Community members estimate Xcel’s fair value between US$65.71 and US$88.47 across 3 separate views. With regulatory outcomes now front and center, see how others weigh the company’s growth versus its risks.

Explore 3 other fair value estimates on Xcel Energy – why the stock might be worth 20% less than the current price!

Build Your Own Xcel Energy Narrative

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This article by Simply Wall St is general in nature. We provide commentary based on historical data
and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your
financial situation. We aim to bring you long-term focused analysis driven by fundamental data.
Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
Simply Wall St has no position in any stocks mentioned.

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