Xcel Energy Inc. XEL recently announced that it has signed an agreement with Itron, Inc. ITRI to install smart meters across its system. Itron provides technology and service solutions to measure, manage as well as analyze energy and water usage. The collaboration will enable Xcel Energy to develop next generation smart meters as well as enhance grid reliability and improve response time to outages.

The company is undertaking initiatives to provide clean reliable energy and install smart meters, which will enable customers to save money and control energy usage.  We believe that the smart meters will help the company to retain its customers and expand its existing base.

Focus on Modernization

Electric utility companies make consistent investments in their infrastructure to provide 24x7 uninterrupted services to customers. These companies focus on maintenance and upgrade of electric lines and poles, grid modernization as well as usage of smart meters and drones to retain its position amid intense competition.

Xcel Energy continues to invest substantially in its infrastructure to provide reliable services to customers and effectively cater to rising electricity demand. The capital investment is directed toward transmission, distribution, electric generation and renewable projects. Recently, it announced its plans to invest nearly $3.6 million to install Electric Vehicle (EV) charging Stations in Colorado, which is also a part of the company’s modernization initiatives.

Other utility companies are also investing in infrastructural improvements and modernization. Duke Energy Corporation DUK expects to invest nearly $37 billion in its overall growth projects in the 2019-2023 time frame. NextEra Energy, Inc NEE plans to invest $50-$55 billion in different projects over the 2019-2022 period.

Initiatives Toward Clean Energy

Xcel Energy is also focusing on clean energy generation and is undertaking initiatives to retire existing coal plants before time to reduce  carbon emission by 80% by 2030 from 2005 levels. It is also increasing its renewable interest through steel-for-fuel initiative.

Per a report of the U.S. Energy Information Administration (EIA), total renewable consumption is expected to touch 11.563 quadrillion British thermal unit (byu) in 2019 and further rise 5% to 12.154 quadrillion btu in 2020. Considering EIA’s projection, it is evident that renewable sources of energy will gradually replace traditional ones. We believe that the recent collaboration will enable Xcel Energy to maintain its position in the competitive market and achieve its goal in the future.

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 38.9% compared with the industry’s rise of 18.6%.

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Duke Energy Corporation (DUK) : Free Stock Analysis Report
 
Xcel Energy Inc. (XEL) : Free Stock Analysis Report
 
NextEra Energy, Inc. (NEE) : Free Stock Analysis Report
 
Itron, Inc. (ITRI) : Free Stock Analysis Report
 
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