Xcel Energy has set a $70 billion base capital plan for 2027 through 2031. That is up 17% from the $60 billion plan it replaces, according to Utility Dive's report on the company's Oct. 29 third-quarter earnings call. About $7 billion of the new plan is for data center projects already under contract, Utility Dive reported. The utility also described a possible further $10 billion tied to pending procurements, high-voltage transmission and data center load it expects to sign by the end of 2027.

For communities in Xcel's service territories, the plan is the clearest look yet at how the company intends to pay for new large-load customers. It also shows where the money would go.

What the $70 Billion Buys

Utility Dive reported that the plan covers 9.2 GW of renewable generation at about $21.7 billion, 2.3 GW of energy storage, 3.3 GW of natural gas generation, 2,400 miles of transmission and $4 billion for wildfire mitigation. Utility Dive also reported that the company described a generation pipeline of 25 GW.

The money is not split evenly among Xcel's operating companies. According to mgrid.org, Southwestern Public Service (SPS), which serves parts of Texas and New Mexico, gets the largest share. Northern States Power-Minnesota is next, followed by Public Service Company of Colorado (PSCo).

The $70 billion figure is a base case, and mgrid.org reported several items left out of it. The plan does not include generation from Xcel's current requests for proposals, service to future large-load customers, or new transmission planned through the regional grid operators MISO and SPP. Those excluded categories largely match the upside Xcel described for possible additional spending.

The number itself came from the call and its accompanying materials, not the earnings release. In the company's third-quarter earnings report filed with the SEC as Exhibit 99.01 to an 8-K, Chairman and CEO Bob Frenzel refers to an updated five-year investment plan. The $70 billion total does not appear in the release text.

The Data Center Piece

Utility Dive reported that about $7 billion of the base plan is for data center projects already under contract. The possible additional $10 billion, which Utility Dive attributed to Frenzel, would cover more than 15 GW in pending RFPs, high-voltage transmission, and infrastructure to serve 4 GW of new data centers that Xcel expects to put under contract before the end of 2027.

Utility Dive also quoted Frenzel on cost allocation: "We believe that existing customers should not subsidize new large loads." The one data center agreement Xcel describes in detail in its SEC filing includes a term that Google pays all costs of its new service.

Google at Pine Island

According to the 8-K exhibit, NSP-Minnesota entered into an electric service agreement in the first quarter of 2026 to power a new Google data center in Minnesota. The filing lists the agreement under the heading "Pine Island Data Center." Under the agreement, Google will pay all costs for its new service for the duration of the contract. Xcel says the agreement is expected to result in approximately $1.1 billion of benefits to NSP-Minnesota's customers if approved.

The filing states that a request for approval, including a proposed Clean Energy Accelerator Charge for 1,900 MW of clean energy resources, was filed with the Minnesota Public Utilities Commission (MPUC) in April 2026. The filing says approvals for 1,000 MW of resources for the Clean Energy Accelerator program have been received through existing resource acquisition processes, and a commission decision on the agreement is expected in early 2027. mgrid.org also reported that Minnesota regulators are reviewing the Pine Island agreement and that a decision is expected in early 2027.

The $1.1 billion customer-benefit figure is Xcel's own estimate as stated in its filing. The source documents do not include an independent valuation.

How Xcel Says It Will Pay

Chief Financial Officer Brian Van Abel described the financing on the call, according to Utility Dive. The plan relies on $26 billion of debt and $8 billion of equity, and about 40% of that equity is already contracted, Utility Dive reported.

The plan arrives alongside stronger quarterly results. The 8-K exhibit reports third-quarter GAAP earnings of $1.52 per share, or $960 million, compared with $0.88 per share, or $524 million, a year earlier. Utility Dive put the increase in net income at 83%. Xcel narrowed its 2026 ongoing earnings guidance to $4.10 to $4.16 per share and set 2027 guidance at $4.48 to $4.62 per share, according to the filing.

Storage on the Ground in Minnesota

Some of the storage in Minnesota is already being built. mgrid.org reported that the first battery units have arrived at Xcel's Blue Lake project in Minnesota. The project is rated at up to 135.5 MW and about 542 MWh, and the MPUC issued its site permit on May 4, 2026, in docket 25-214. According to the same report, Xcel expects to have more than 735 MW of battery storage in Minnesota by the end of 2027.

Rates for Existing Customers

Alongside the capital plan, NSP-Minnesota is asking to hold rates steady. The 8-K exhibit says NSP-Minnesota filed an Electric Customer Rate Stability Plan with the MPUC on Oct. 9, 2026, as an alternative to its planned rate case filing. mgrid.org and Utility Dive reported that the plan would freeze base rates for 2027 and 2028. The filing says a commission decision has been requested by January 2027, and that if the plan is not approved, NSP-Minnesota expects to file an electric rate case in early 2027.

What Happens Next

Two Minnesota regulatory decisions are expected in the first months of 2027. NSP-Minnesota has requested an MPUC decision on its rate stability plan, which would freeze base rates for 2027 and 2028, by January 2027, according to the 8-K exhibit and mgrid.org. Xcel's 8-K exhibit says a commission decision on the Google service agreement and its proposed 1,900 MW Clean Energy Accelerator Charge is expected in early 2027.

Separately, Xcel says it expects about 4 GW of new data center agreements to be signed before the end of 2027, Utility Dive reported. mgrid.org reported the company expects more than 735 MW of Minnesota battery storage over the same period. Spending on pending RFPs, future large-load service and new MISO and SPP transmission would come on top of the $70 billion base plan, which excludes it.

Sources