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Stocks X / Xcel Energy, Inc.

URL:  http://boards.fool.com/coloraska-you-asked-just-because-the-lenders-18854297.aspx

Subject:  Re: dead board ? Date:  4/4/2003  6:48 PM
Author:  andyz151 Number:  99 of 117

Coloraska ,

You asked:

Just because the lenders believe that Xcel will be able to pay their bills doesn't really say anything for the long term growth potential. Any thoughts?

Growth zfor Xcel is going to come from a rebound in the power demand. In my mind the key driver in Xcel's growth is going to be NRG unit - the current load stone around it's neck. But let me digress from NRG for a moment.

When the economy recovers and demand picks up, more power will be used and Xcel the regulated entityu will generate more power and will sell more power - real basic stuff there so no surprise. This in itself won't really juice Xcel's bottom line but it will provide a decent amount of upside to current earnings - maybe as much as 5-10% more EPS in good quarters. [just a guess on the number by the way based on peak usage a few years ago vs today.]

This minimal growth will happen regardless of NRG but won't be sustainable - i.e. the growth RATE won't be sustainable, the growth will probably stick around as long as the recovery lasts. So when the recovery in demand sets in, Xcel will have a year of nice big year over year returns before it settles back into