Xcel Energy Inc. · NASDAQ:XEL
Xcel Energy — Deutsche Bank Electric Power Conference 2005
39 slides from Xcel Energy's conference presentation, Jun 14, 2005
Slide 1: Deutsche Bank Electric Power Conference
Deutsche Bank Electric Power Conference: OP) site 14-15, 2005
Slide 2: Safe Harbor
Safe Harbor This material includes forward-looking) statements Uiavate sub\pouto ceria risks, uncertainties and) assumptions.) Suchifonvardoolang statements) include projected earings, cash flows, capital expendiites, and otner, Statements/and are identified in this document by the words. .anucipate
Slide 3: Dick Kelly, President and Chief Operating Officer
Dick Kelly Presi yand Chief Operating Officer re
Slide 4: Building the Core
Building the Core Invest $6:9 billion in utility asset: AND i se Earn our allowed) returnjon equity
Slide 5: Xcel Energy's Capital Expenditure Plan
Xcel Energy’s Capital Expenditure Plan Prudent) Have regulatory, legislative and environmental support Manageable Add to earnings growth, Deliver stronger credit metrics
Slide 6: Capital Expenditures $6.9 Billion
Capital Expenditures $6.9 Billion 2005 — 2009 Mandated, Safety Customer Additions: & Other Lee 15% rN Replace; = Refurbist, Upgrade 15% Comanche 3: qA%s Nuclear Fuel) 28 Generation, Le , 40% ee,
Slide 7: Regulatory, Legislative and Environmental Support
Regulatory, Legislative and Environmental Support Colorado MERP rider Minnesota MERP rider Comanche 3 decision — Forward CVVIP) and) higher equity Minnesota transmission rider for renewables Minnesota and| Texas transmission) investment legislation
Slide 8: Minnesota Transmission Legislation
Minnesota Transmission Legislation Senate File 1368 Commission may approve riderrecovery of new transmission Investment Cash recovery on constriction wonk in progress Return on equity at last allowed and provides for recovery above cost, if necessary, to improve economics of otherwise in the public
Slide 9: Texas Transmission Legislation
i Texas Transmission Legislation House Bill 989 Commission may allow annwal|recovery of, transmission infrastructure improvement Applies only in SPP er WECC power pools Awaiting governors signature |
Slide 10: Capital Expenditure Outlook
i * Capital Expenditure Outlook Relicensing| nuclear plants; Minnesota and Colorado resourcemecds CapEx 2020 — Minnesota transmission CAIR and mercury rules
Slide 11: Transparent Low-Risk Strategy
Transparent Low-Risk Strategy Constructive legislative & regulatory climate Strategy delivers: — Competitive total return to shareholders — Improving credit metrics _ we
Slide 12: Financial Overview
Financial Overview Ben Fowke: Vice President and Chief Financial Officer,
Slide 13: NSP - Minnesota Operating Company
NSP — Minnesota Operating Company Capital Expenditure Forecast Dollars in millions’ 2005 = 2006 2007, 200855) 2008) Tctal) MERP’ $191 $404 $197 $125 $56 $ 973) Excluding MERP. ASa 428 516) 446 549) 2,393, Totall $645 $832 $743 $574) $605) $3)366) MERP $ 973) Transmission) 459) Nuclear fuel) 336) Bal
Slide 14: NSP - Minnesota Rate Cases
NSP — Minnesota Rate Cases North Dakota Gas" Approved) June! ULF soul tren) ithease: Minnesota Gas. Settlement pending, $55.8 sili) 10.4% ROE inchedse: Decision July 2005) Minnesota To be tiled) Winter 2005; Electric 2006 test year, Interim fates early 2006; Decision summer 2006 North Dakota) Tobe f
Slide 15: PSCo Operating Company
PSCo Operating Company Capital Expenditure Forecast Dollars in millions’ 2005 = 2006 2007, 200855) 2008) Tctal) Comanche'3! $59 $179 $287 $298 $125) $ 948) Excl, Comanche 3) 366) 320) 306) 293 363) as64a8) Totall $425 $499 $593 $591| $488) $2,596) Comanche 3) $948) Transmission) 280) Balance of elec
Slide 16: PSCo Rate Cases
PSCo Rate Cases Colorado Gas, Filed May 27) Requested $33.4 million 11% ROE 59.4975 Common equity, Year-end|rate base. Decision eanly 2006: Colorado Electric To be filed Spring) 2006 Decision early 2007.
Slide 17: SPS Operating Company
SPS Operating Company Capital Expenditure Forecast 2005 2006 2007 2008 2009))) Total Total $114 $90 $124 $446 $105) $546; Transmission) $140) Balance of electric 406 Total electric $546) SPS Rate Cases: diexas electric Tio be tiled) Summer 2006, Poa Mexico electric To be filed|2006 , —_
Slide 18: NSP - Wisconsin Operating Company
NSP — Wisconsin Operating Company | Capital Expenditure Forecast Dollars in millions: | 2005 2006 Total! $60. $79 Balance o| Gas Common) Total) a
Slide 19: Wisconsin Electric and Gas Rate Case
Wisconsin Electric and Gas Rate Case Requested ROE 11.9% Common equity ratio: 56.327, Electric requested: Revenue increase of $4018 million Gas requested: Revenue inctease of $7.0 million Rates expected to be in effect Janviany 2006
Slide 20: Capital Expenditure Forecast
Capital Expenditure Forecast 005. 006 ‘007 008 =. 2009 += Total Total $1,241 $1,500 $1,505 $1,352 $1,266 $6,864 Anticipated) Annual Growin Average Rate Base! Average 005 006 007 008 009 = Annual 2004 Rate base $10.5 billion 4% A% t% 5% 2% 44% — we
Slide 21: Potential Regulatory Income and Depreciation
Potential Regulatory Income and| Depreciation” Potential Result 2004 2009 Average rate base $10.5 B $13 B Regulatory equity ratio 50.4% 50 —52% Equity rate base $5.3 B $6.5-6.76B Regulatory return on equity 9.6% 10-11% Regulatory net income $506M $650— $744 M* Depreciation — Cash flow $735M $910 Me
Slide 22: Sources of Funding
Sources of Funding Growing cash irom operavions: Proceeds from\asset sales and tax lose, Calty-forward Finaneing:. — Dividend reinvestment and|steck purchase program — Modest debt issuance: — No equity issuance necessary through 2006) Uncertain whether there is a need|for public equity issuance in 2
Slide 23: Dividend
Dividend Annual dividend increased) by 6 ceme May, z000, Current annual dividend) rate of 86icenis) Annual dividend increases: Consistent with long-term earings growth of 2-47; - § >| § >|
Slide 24: Transparent Low-Risk Strategy
Transparent Low-Risk Strategy Constructive legislative & regulatory climate Strategy delivers: — Competitive total return to shareholders — Improving credit metrics _ we
Slide 25: Slide 25
Slide 26: Appendix
‘N Appendix
Slide 27: Rate Base and Returns
Rate Base and Returns Dollars in millions, Minnesota = Electric retail Minnesota = Gas retail) North Dakota = Electric retail) North Dakota - Gas retail Colorado - Electric retail Colorado - Gas retail! Texas - Electric retail) NSP (WW) Retail/electric: NSP (WV)\- Retailigas Nontreported iba pct s n
Slide 28: Reconciliation of Estimated Regulatory Reporting from GAAP
Reconciliation of Estimated Regulatory Reporting) from GAAP Dollars an mlions: Common Equity NSP NSP PSCo SPS: ctal) 2004 GAAP common stookioider's equity (a) $2,007) S138 Se SAN Sane 2003 GAAP comimonistooktiolier's equity) 4,809) 425) 270 ete) 560) Average GAAP conimioni stocktioluiers euuity) 7,9
Slide 29: Link to searchable text of slide shown above
Link to searchable text of slide shown abov e
Slide 30: Net Income Growth Potential
Net Income Growth Potential Annual: 2005 = 2008 Growth 2004) Potential) Rate: Rate base! $1058 $1s12) 44% Utility equity capitalization, 50% 50-52% Oto 087) Earned return on utility rate base equity 97% iW-11\% 0102 6% i
Slide 31: Strengthen Balance Sheet with Increased Equity
Strengthen Balance Sheet with Increased Equity Newincome: Seneiupity) G00} aeis, Point Dec 31, 2004) Target Ciiange in, Equity Equity Equity Ratio, Company? Ratio Ratio) Millions) NSP (My: 50%, AS to 51%, $3) NSP (W) 56 54 to 56. 1 SPS 43 48 to 50) 2 PSCo Ag 55110 96. 4 Xcel Energy _— a2 441046
Slide 32: Earn Return Authorized by Regulators
_ 2s Earn Return Authorized by Regulators Netincome: Sensiniyity, 2004, 100) Basis, Point Rate Base * Change in ROE Billions: Millione; Colorado $4.0) $20) Minnesota, 3.4 17 Texas, 0:9) 4 Wisconsin 06 4 * State regulatory jurisdiction ~ Assuming) 30% common equity’ a
Slide 33: Minnesota MERP - Potential Earnings
Minnesota MERP — Potential Earnings Dollars in millions’ 2005; 006; HOV 2008; 008) Capital expenditures: Current year $194 $404 $1977 $125 $26) Cumulative $238, $64z) $839) 9964 $4,020) Equity ratio) ABS% ABISY5 ABS ABS 48505 Return on equity) 10:86% 108675 108675 108675 108605 Equity return: $8 $24
Slide 34: Comanche - Potential Earnings
Comanche 3 — Potential Earnings Dollars in Millions: 005) 006; HOV 2008; 008) Capital expenditures: Current year $59) $179) $287, $208 $425) Cumulative $62 $241 $028) S826, Soon. Equity ratio 569; SPA sbed 5B 567 Return on equity) 10:75% 115% 115% 101546 107575 Equity return. $2 $9. $23) $41 $54) —
Slide 35: 2004 Earnings and 2005 Guidance
2004 Earnings and 2005 Guidance Dollars per share: Regulated wtility Continuing Operations, Holding Company) finance costs Other nonreguiated & Holding Company Total earmings from continuing operations Discontinued operations Poe earnings per share diluted 2004) $1). 32) ZOD, Guidance’ LZ = L397 (07
Slide 36: Coal Supply Contracted
Coal Supply Contracted Coal) Coal) Tfansportation, 100% Annual consumption: 32 Million tons of low-sulfur, low-mercury western coal
Slide 37: Electric Fuel and Purchased Energy Cost Recovery Mechanisms
Electric Fuel and Purchased Energy Cost Recovery Mechanisms Minnesotar, Colorado; Monthly recovery of prospective costs: Recovery of costs with sharing) on deviations Up to +$11.25 million) from benchmark: File for semi-anntall adjustments — required if+ 4% annually: Biennialrate case —tile for inte
Slide 38: Retail Electric Rate Comparison
Retail Electric Rate * Comparison Ae Cents per KYhl TEEN typical bills) = sunnier 2004) 16 14 12 10 @ 5 6.07 6.06 4.87, 4 2 M of sy o s ee ek oe Sato gO go at asd 00? BS gy? oth oO ras 20” 08 ye oe Pg on ae RS oot
Slide 39: Searchable text section of graphics shown above
Searchable text section of graphics shown above [ LOG O] [GRAPHIC] Deutsche Bank Electric Power Conference June 14 – 15, 2005 Saf e Harbor This material includes forward-looking statements that are subject to certain risks, uncertainties and assumptions. Such forward-looking statements include proje
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