Xcel Energy (XEL) & Ford to Install 30,000 EV Charging Ports
Xcel Energy Inc. XEL and Ford Pro, the commercial division of Ford Motor Company F, announced a collaboration to support the deployment of 30,000 electric vehicle (EV) charging ports in Xcel Energy’s service territories across the United States by 2030. Most of the upfront costs will be offset by XEL, and Ford Pro will provide charging equipment and post-installation customer service and support.
Both companies are launching the 30x30 project as part of Xcel Energy's larger Electric Vehicle Supply Infrastructure (EVSI) program. The idea is to expand EV adoption and expand corporate fleets' access to charging infrastructure throughout the company’s service regions in the United States.
Beginning 2024, the 30x30 program will be available in Colorado and Wisconsin through Xcel Energy's EVSI program. The program will look for growth opportunities in other states within XEL’s service territories, including Michigan, Minnesota, New Mexico, North Dakota, South Dakota and Texas, over the next six years.
In addition, Xcel Energy and Ford Pro plan to use telemetry data collected from participating vehicles to encourage commercial charging during peak hours, which will help reduce emissions to the grid and save money for customers.
XEL’s Focus on Electric Mobility
Xcel Energy is focused on undertaking initiatives to produce and deliver clean energy to customers, which will help in achieving the net-zero emission target by 2050. The company’s increasing portfolio of EV programs, innovative solutions, robust support and charging infrastructure aims to accelerate the future of zero-carbon transportation.
The company is ambitiously driving toward a goal to enable one out of five vehicles to be electric by 2030, helping customers save $1 billion annually on fuel and cutting down transportation related emissions.
Promising EV Prospects
Per the International Energy Agency (IEA), in the net zero scenario, the use of EVs is going to increase globally and EV sales are set to contribute around 65% to total car sales in 2030. EV sales increased 55% in 2022 compared with the 2021 level. IEA expects sales to improve approximately 25% every year during 2023-2030.
A well-organized EV charging network will be necessary due to the enormous rise in EV usage over the next few years, which will also help reduce emissions from vehicles.
Along with Xcel Energy, other electric power companies like Exelon Corporation EXC and Duke Energy DUK have also been expanding their footprint in the EV market.
In October 2023, Exelon’s unit ComEd, in partnership with Millennium Garages, announced its plan to install up to 300 total EV chargers at the downtown Chicago parking complex by 2026. This will expand charging infrastructure and support State’s goal of opening Illinois’ roads to 1 million EVs by 2030.
EXC’s long-term (three to five years) earnings growth rate is 6.3%. It delivered an average earnings surprise of 1.8% in the last four quarters.
Duke Energy has been focusing on the growing EV market. The company aims to convert all of its 4,000 light-duty vehicles and 50% of its 6,000 medium-duty, heavy-duty and off-road vehicles to EVs, plug-in hybrids or other zero-carbon alternatives by 2030.
DUK’s long-term earnings growth rate is 6.09%. The Zacks Consensus Estimate for the company’s 2023 EPS indicates year-over-year growth of 6.1%.
Price Performance
In the past three months, shares of XEL have risen 8.6% against the industry’s 4% decline.
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Zacks Rank
Xcel Energy currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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