Per a recent media release, Xcel Energy Inc. (XEL - Free Report) is seeking approval from Colorado Public Utilities Commission (PUC) to invest in expansion of its electric-vehicle charging infrastructure.
The objective of this project is to promote usage of more electric vehicle in Colorado and Denver. The extension of electric vehicle charging infrastructure will encourage Uber Technologies Inc (UBER - Free Report) , Lyft Inc (LYFT - Free Report) and other taxi services to deploy electric vehicles. The project also promotes usage of electric buses for public transportation.
The company expects to make $3.6-million investment for the project. It has applied to PUC to allocate up to $9 million for the expansion, while considering additional inquiry from other local governments. The company has requested the PUC to make a decision before Feb 15, 2020.
Focus to Lower Emission
To build a smarter energy grid and provide consumers with efficient energy solutions, the company is adopting latest technologies and resources. Given the concern for rising emission level, demand for electric vehicles (EV) is increasing.
Xcel Energy is the first utility in the United States to announce a target of 80% carbon reduction by 2030 from 2005 level. The company is trying to promote the use of EVs, which are more eco-friendly than fossil fuel-driven vehicles, by developing charging stations. In August, 2018 the company launched an industry-leading pilot program in Minnesota.
Rising Usage of Renewables
The U.S. Energy Information Administration (“EIA”) projects that wind, solar and hydropower energy will generate 18% of electricity in 2019 and 19% in 2020 in the United States.
Xcel Energy is focusing on the steel-for-fuel initiative that enables it to add renewable sources and reduces bills. The company received regulatory approval for nearly 3,000 megawatt (MW) of new wind projects. Its Hale project in Texas has capacity of 478 MW. All its wind projects are expected to be completed in the 2019-2021 time period. Xcel Energy believes EV fueling through renewable energy sources such as Wind, can provide 100% carbon-free electricity.
NextEra Energy, Inc (NEE - Free Report) also plans to make a long-term investment in clean energy assets. The company has decided to invest $25-$28 billion in various projects within the 2019-2022 time frame.
Zacks Rank & Price Movement
Xcel Energy has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In the past 12 months, shares of Xcel Energy have rallied 32.2% compared with the industry’s rise of 12.4%.
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