MINNEAPOLIS (AP) -- Xcel Energy Inc. said Thursday that fourth-quarter net income rose 4 percent as it charged customers higher rates for electricity and natural gas.
The utility, which serves customers largely in middle America from Minnesota to Texas, reported earnings of $140.5 million, or 29 cents per share, for the three-month period ended Dec. 31. That compares with $135.6 million, or 29 cents per share, for the same part of 2010. Revenue was nearly unchanged at $2.57 billion.
Analysts were expecting earnings of 30 cents per share on revenue of $2.65 billion, according to FactSet.
Xcel provides electricity and natural gas in Minnesota, Wisconsin, Colorado, Michigan, New Mexico, North Dakota, South Dakota and Texas. Like other utilities, state regulators allow Xcel to charge customers higher rates to help pay for new power plants, transmission lines and other facility upgrades that strengthen its network.
Higher rates improved profit margins during the quarter for both Xcel's electricity and natural gas businesses.
For the full year, Xcel said net income increased to $834.4 million, or $1.72 per share, from $751.6 million, or $1.62 per share, a year earlier. Annual revenue rose 3 percent to $10.7 billion from $10.3 billion a year ago.
Xcel said profits may rise, but only slightly, in 2012 following a decision by Colorado regulators to deny its request to hike rates to raise $100 million.
"In addition, we are experiencing sluggish electric and natural gas sales, warmer than normal winter weather and higher than anticipated property taxes," Xcel CEO Ben Fowke said.
The company estimates its 2012 earnings will be "in the lower half" of a range between $1.75 and $1.85 per share. Analysts had expected $1.80 per share.
Xcel shares fell 10 cents to $26.50 in morning trading Thursday. They have traded in a range of $21.20 to $27.93 in the past 52 weeks.
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