UPDATE 1-Xcel Energy Q2 profit rises

* Q2 EPS $0.25 vs $0.24 * Q2 rev down 23 pct * Reaffirms FY09 earnings outlook

July 30 (Reuters) - Xcel Energy Inc (XEL.N) reported a higher second-quarter profit, helped by increases in electric margin and revenue from non-fuel riders, and reaffirmed its full-year earnings forecast. For the quarter June 30, the company earned $117 million, or 25 cents a share, compared with $106 million, or 24 cents a share, last year.

Revenue fell 23 percent to $2.02 billion.

Analysts, on average, were looking for earnings of 25 cents a share, before items, on revenue of $2.57 billion, according to Reuters Estimates.

Xcel said the rise in earnings was primarily due to electric margins increase as a result of constructive rate case outcomes in the states of Texas, New Mexico, Wisconsin, and Minnesota, where the rate case changes are interim.

The company said non-fuel riders also helped in profit increase. Utilities are allowed to recover incremental costs from consumers through automatic adjusters known as riders.

"We had already instituted several cost management programs that will help to mitigate the negative impacts (of recession), as a result, we are reaffirming our 2009 earnings guidance of $1.45 to$1.55 per share," Chief Executive Richard Kelly said in a statement.

Xcel Energy, of Minneapolis, owns and operates more than 17,000 MW of generating capacity, markets energy commodities, and transmits and distributes electricity and natural gas to customers in 10 Western and Midwestern states.

Shares of the company closed at $19.89 Wednesday on the New York Stock Exchange.

For the alerts, double click [ID:nWNBB5831] (Reporting by Arup Roychoudhury in Bangalore; Editing by Maju Samuel) (arup.roychoudhury@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: arup.roychoudhury.reuters.com@reuters.net))