Xcel Energy Inc. today reported 2014 third quarter GAAP earnings of $369 million, or $0.73 per share, compared with $365 million, or $0.73 per share, in the same period in 2013. On an ongoing basis, which excludes the specified item noted below, earnings totaled $0.77 per share for the 2013 period.
The decrease in ongoing earnings was largely due to the impact of weather, which adversely affected earnings by $0.07 per share. Earnings results also reflect higher electric and natural gas margins due to new rates in various jurisdictions and expected lower operating and maintenance expenses, which were partially offset by higher depreciation and amortization and property taxes.
Third quarter 2013 GAAP earnings included a $0.04 per share charge for a potential SPS customer refund based on FERC orders issued in August 2013 related to a 2004 complaint regarding the allocation of system average fuel costs and base rates.
"While weather was unfavorable, we had a solid quarter that keeps us on track to achieve our 2014 ongoing earnings guidance and allows us to narrow the range to $1.95 to $2.05 per share," said Chairman, President and Chief Executive Officer Ben Fowke. "Our O&M expenses were down for the quarter and we are positioned to meet our annual O&M growth objective of 2 to 3 percent for 2014. We also made progress in various regulatory proceedings across our jurisdictions. For the pending multi-year Minnesota electric rate case, we reached agreement with stakeholders on several key issues and continue to believe that we will achieve constructive outcomes on the remaining items."
"Looking ahead, the updated capital plan we released today positions us to continue to be competitive and supports an attractive value proposition of 4 to 6 percent annual growth in earnings per share and our dividend. We are also introducing our 2015 ongoing earnings guidance of $2.00 to $2.15 per share," stated Fowke.
Earnings Adjusted for Certain Items (Ongoing Earnings)
The following table provides a reconciliation of ongoing earnings per share (EPS) to GAAP earnings per share: