Thursday, October 25, 2012

Public Service Colorado is 50% of Minnesota Utility Giant Xcel Energy, Whose Stock Price is Up 53% During Obama's Presidential Term

Colorado doesn't have any large Utility companies whose common stocks trade.  The huge Public Service Co. of Colorado is wholly-owned by Xcel Energy, a Minnesota Utility giant.  Public Service Co. of Colorado does file its financial statements with the SEC.

OK, so how has Public Service Co. of Colorado done?  And also, how has its parent Xcel Energy done? Well, both just fabulously.

Public Service Co. of Colorado's Audited After-tax Net Income has increased by 34% in the past five years, going from $297 mil in 2007 to $397 mil in 2011.

Below here are the Audited After-tax Net Income of both Public Service Co. of Colorado and Xcel Energy for each of the most recent five years.




2011 2010 2009 2008 2007



Net Net Net Net Net

City State Income Income Income Income Income

HQs HQs (Loss) (Loss) (Loss) (Loss) (Loss)


mil $s mil $s mil $s mil $s mil $s








Public Service Co. of Colorado Denver CO 397 400 323 340 297








Xcel Energy Minneapolis MN 841 752 686 646 576








Public Service Co. of Colorado Portion of Xcel Energy's Net Income 47% 53% 47% 53% 52%

With the above very robust earnings numbers of both Public Service Co. of Colorado and of Xcel Energy, it is easy for me to see why parent Xcel Energy's common stock price has increased by an incredible 53% during the Obama Administration, going from $18.28 per share just before President Obama took office to $27.89 per share on Tuesday, October 23, 2012.

And Xcel Energy's very impressive 53% stock market price increase during the Obama Administration is understated in real terms since it does not include the huge amount of cash dividends its common stock investors have received in the past 15 quarters of the Obama Administration.

Investors buy Utility Stocks mainly for the robust cash dividends they receive, not for longer-term stock price appreciation.  

And yeah, the Obama Administration did play a key role in this very robust Xcel Energy stock price increase.

With its wise actions to fix the broken US financial system, the Obama Administration substantially reduced the elevated risk which was in Utility Stocks after the 2008 financial collapse.  These actions resulted in increasing the stock prices of Utility Stocks.

Further, with the Obama Administration working closely with the Fed, interest rates were substantially reduced, thereby significantly benefiting Utility Corps, which have a very heavy debt load due to their substantial investments in Property, Plant and Equipment.  Thus, Utility Corps are now able to borrow at much cheaper interest rates.

All Colorado and Minnesota Utility Corp executives, all of their employees, their Boards of Directors, and their stockholders have to all be very happy with the stock market performance of Xcel Energy during the Obama Administration.

And these same Colorado and Minnesota citizens also must be very pleased with how the Obama Administration worked so hard and very effectively on so many fronts to fix the clearly broken US financial system and to also create a US economic environment that permitted companies to flat out flourish.  This highly successful effort created a robust US economic environment which was quite a change from what existed in the just horrible financial meltdown, near Depression year of 2008.