Xcel Energy Inc., Colorado’s largest gas and electric utility, reported a 19 percent increase in third-quarter profit.
Xcel attributed much of the increase to warmer-than-average weather in the July through September period, which boosted electricity sales because of strong demand for air conditioning.
Profit from continuing operations rose $197.8 million, or 47 cents a share, from $165.7 million, or 40 cents, a year earlier. Sales climbed 16 percent to $2.29 billion.
Xcel said the need for more air conditioning lifted profits by 8 cents a share. Summer demand for cooling in Colorado was 45 percent higher than in 2004, according to Bloomberg News. Minnesota, the other major market served by Xcel, had 59 percent more cooling demand than last year.
The company also said fourth-quarter earnings will be “somewhat lower than previously anticipated.” Xcel didn’t provide any figures. Higher fuel costs are expected for the rest of the year into next year, dipping into profits, Xcel said.
