Feb 6 (Reuters) - Xcel Energy ( XEL ) reported an

increase in fourth-quarter profit on Thursday, as the utility

firm benefited from higher electricity rates and lower operating

expenses.

The company reported a rise in earnings in Minnesota and

Colorado regions, on higher recovery of electric and natural gas

infrastructure investments.

Regulated utilities use rate case proceedings to seek a rate

increase based on their investments or expenses to provide

services.

The Minneapolis, Minnesota-based company also benefited from

lower quarterly operating expenses, which were down 3.3% at

$2.77 billion from a year earlier.

The utility firm's net income was up 13.4% at $464 million

for the quarter ended Dec. 31.

Xcel Energy ( XEL ) serves a total of 3.7 million electricity

customers and 2.1 million natural gas customers across eight

states of Colorado, Michigan, Minnesota, New Mexico, North

Dakota, South Dakota, Texas and Wisconsin.