Oct 30 (Reuters) - U.S. utility Xcel Energy (XEL.O) , opens new tab missed third-quarter profit estimates on Thursday, hurt by higher interest charges as well as operating and maintenance expenses.

Higher-for-longer interest rates can put pressure on utilities by raising the cost for constructing and maintaining infrastructure such as electrical grids.

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Minneapolis, Minnesota-based Xcel's total interest charges rose to $384 million in the three months ended September 30, up from $326 million a year earlier.

In addition, its quarterly operating and maintenance expenses rose 5.6% to $692 million.

The utility has ramped up its capital investment plan to $60 billion for the next five years to cater to increased power demand and make required investments to strengthen its transmission and distribution systems.

Utilities have been adding billions of dollars to their capital expenditure budgets as they field massive requests for new power capacity from data centers, which aim to support complex AI-related tasks.

Xcel said in September it had reached settlement agreements to resolve all claims related to the 2021 Marshall Fire in Colorado.

Its unit, Public Service Company of Colorado, is expected to pay roughly $640 million as part of these agreements, while $350 million will be funded by remaining insurance coverage, the company added.

Xcel provides electric services to about 3.9 million customers and natural gas services to 2.2 million customers across eight Western and Midwestern states.

Quarterly operating revenue at its electric segment rose 7.2% to $3.64 billion, while that at its natural gas division climbed to $264 million from $239 million a year ago.

Xcel also initiated 2026 adjusted earnings in the range of $4.04 to $4.16 per share, the midpoint of which is less than analysts' average estimate of $4.12 apiece, according to data compiled by LSEG.

The company's third-quarter profit came in at $1.24 per share on an adjusted basis, missing estimates of $1.32 per share.

https://www.reuters.com/business/energy/xcel-energy-misses-quarterly-profit-estimates-higher-interest-charges-expenses-2025-10-30/