Thu, Apr 24, 5:12 PM (17 days ago)
**Northern States Power Company (NSP-Wisconsin) Q1 2025 Financial Summary** **Company Overview:** Northern States Power Company (NSP-Wisconsin), a wholly-owned subsidiary of Xcel Energy Inc., operates as a regulated electric and natural gas utility in Wisconsin. The company's ticker is not provided. **Financial Performance (Q1 2025 vs. Q1 2024):** - **Revenue:** Total operating revenues increased by 5.5% to $327 million from $310 million, driven by higher natural gas revenues and stable electric revenues. - **Operating Income:** Slightly decreased by 1.5% to $65 million from $66 million due to higher operating and maintenance (O&M) expenses, depreciation, and interest charges. - **Net Income:** Decreased by 2.3% to $42 million from $43 million, primarily due to higher taxes and interest expenses. - **Cash Flow:** Net cash provided by operating activities increased by 44.2% to $124 million from $86 million, mainly due to higher net income and changes in working capital. - **Capital Expenditures:** Decreased slightly by 0.8% to $120 million from $121 million, reflecting continued investment in infrastructure and system expansion. **Profit Margins:** - **Operating Margin:** Decreased to 19.9% from 21.3%. - **Net Margin:** Decreased to 12.9% from 13.9%. **Segment Performance:** - **Regulated Electric Utility:** Operating revenues increased by 1.2% to $259 million, with net income decreasing by 12.1% to $29 million. - **Regulated Natural Gas Utility:** Operating revenues increased by 25.9% to $68 million, with net income increasing by 30.0% to $13 million. **Trends and Uncertainties:** - **Regulatory Proceedings:** NSP-Wisconsin has filed requests for multi-year electric and natural gas rate increases, with decisions expected in the fourth quarter of 2025. - **Environmental Regulations:** The company is subject to various environmental regulations, with potential impacts on operations and capital expenditures. - **Supply Chain and Labor Market:** NSP-Wisconsin faces challenges in maintaining an efficient supply chain and securing skilled labor for capital projects. - **Weather and Seasonality:** The company's results are subject to fluctuations due to weather patterns and seasonality. **Future Operations and Impact:** - NSP-Wisconsin plans to invest in its electric and natural gas systems to enhance reliability, resiliency, and clean energy generation. - The company expects to incur nominal expenses for environmental investigations and potential corrective actions through 2028. - NSP-Wisconsin will continue to monitor and respond to regulatory actions, supply chain disruptions, and labor market conditions. **Conclusion:** NSP-Wisconsin's Q1 2025 financial results reflect stable revenues, increased cash flow, and continued investment in infrastructure. However, the company faces challenges related to regulatory proceedings, environmental regulations, supply chain disruptions, and labor market conditions. Management remains focused on enhancing system reliability, resiliency, and clean energy generation while navigating these uncertainties.