Xcel Energy Inc. · NASDAQ:XEL
Xcel Energy — Non-Deal Roadshow (May 2005)
30 slides from Xcel Energy's roadshow presentation, May 31, 2005
Slide 1: Midwest Investor Meetings
Midwest Investor Meetings May 31 — June 1, 2005
Slide 2: Safe Harbor
_ XeelEnergy Safe Harbor This material includes forward-looking statements that are subject to certain alc tear tainties Snlbies initiate Sich arvdar dulce line ataletnate include projected earnings, cash flows, capital expenditures and other SE EE ee wae “estimate,” “expect,” “projected,” ” “outloo
Slide 3: Low-Risk Strategy
Low-Risk Strategy AND Earn our allowed return on equity 7 Total 7 to 9% per year. / ‘Di 5% 210 4% { j ‘. , “ ; Nearly 100% of income from regulated operations ’
Slide 4: Drivers to Value Creation
Drivers to Value Creation
Slide 5: Strong Regional Economy
Northern States oO Xcel Energy” Power Company- 4 Northern States : Minnesota Power Company: Public Service Wisconsin Company of Colorado Strong Regional Economy Unemployment rate — Southwestern 2 tt 3 February 2005 Public Service us 5.8% Xcel service area 4.7% Job growth — 2005 Forecast 4th largest
Slide 6: Retail Electric Rate Comparison
--XeelEneroy- Retail Electric Rate * Comparison 418 Cents per KiWh * EEI typical bills - Summer 2004 16 14 12 10 3 6.07) 6.06 8 14.87 4 4 PR ae g 2 ®\e Koto iS eros SF ee ee Get OTST SO Se we
Slide 7: Net Income Growth Potential
Net Income Growth Potential 004 $105B $125B 303.5% 52% 0 to 1.2% 9.9% 11.5% 040 3.9% {
Slide 8: Capital Expenditure Forecast
Capital Expenditure Forecast 2005 2006 «2007 + 2008 2009 ($191 $ 404 $ 197 $ 125 $ 56 59 rE (287-0298 = 125. 991 917 1,021 929 1,085 $1,241 $4,500 $1,505 $1,352 $1,266
Slide 9: Minnesota MERP — Potential Earnings
_ -XeelEnergy Minnesota MERP — Potential Earnings Dollars in Millions 2005 ©2006 ©= 2007 2008 = 2009 Capital Expenditures Current Year $191 $404 $497 $125 $56. Cumulative $238 $642 $839 $964 $1,020 Equity Ratio 48.5% 48.5% 48.5% 48.5% 48.5% Return on Equity 10.86% 10.86% 10.86% 10.86% 10.86% Equity
Slide 10: Comanche — Potential Earnings
_ -XeelEnergy Comanche 3 — Potential Earnings Dollars in 2005 = 2006») 2007 += 2008 «= 2009 Capital Expenditures Current Year $59 $179 $287 $298 «= $125 Cumulative $62 $241 $528 $826 $951 Equity Ratio 56% 56% 56% 56% 56% Return on Equity 10.75% 10.75% 10.75% 10.75% 10.75% Equity Return $2 $9 $23 $44
Slide 11: Strengthen Balance Sheet with Increased Equity
-XeelEneroy- Strengthen Balance Sheet © with Increased Equity Net Income Sensitivity. 100 Basis Point Dec 31, 2004 Target Change in Equity Equity Equity Ratio Company Ratio Ratio Millions NSPM 50% 49 to 51% $3 NSPW 56 54 to 56 1 SPS 48 48 to 50 2 PSCo 48 55 to 56 4 Xcel Energy Consolidated 42 44 to
Slide 12: Earn Return Authorized by Regulators
@ Xcel Energy~ Earn Return Authorized by Regulators Net Income Sensi 2004 Rate Base Change in ROE ** Billions * Millions Colorado $4.0 $20 Minnesota 3.4 q7 Texas 0.9 4 Wisconsin 0.6 3 * State regulatory jurisdiction ** Assuming 50% common equity
Slide 13: Regulatory Initiative
Regulatory Initiative 2005 CO ND WiElectric MN MN,ND& WiElectric MN FERC Gas Gas &Gas Gas SDElectric &Gas Resource Transmission Case Case Case Case Case Case Plan Case Decision Filed Decision Filed Decision _ Filed Decision Decision May May June June | July Winter December Year-end MN, ND & 2006 wic
Slide 14: 2004 Earnings and 2005 Guidance
2004 Earnings and 2005 Guidance on Dollars per Share Regulated utility continuing operations: Holding Company finance costs Other nonregulated -& Holding Company Total earnings from continuing operations Discontinued operations Total Earnings per Share diluted 2004 $1.32 2005 Guidance $1.27 - 1.37 (
Slide 15: Dividend
Dividend
Slide 16: Investment summary
_ -XeelEnergy __ No competitive threats: _ Constructive regulation _ Executable strategy _ Identify and manage risks _ Solid balance sheet _ Total return objective of 7 to 9% per year
Slide 17: Slide 17
Slide 18: Xcel Energy Inc. Net Income by Subsidiary
(2 Xcel Energy Inc. from Continuing, ons (Dollars in Millions) $527 Holding Company $(43) Northern Northern , Subsidiaries States States OPE Sout ne ser MEE isiane cay : ees : Company of Service = Quixx Minnesota Wisconsin Colerade company $230 $54 $218 $55 $13 Nonrec
Slide 19: Senior Debt Rating
Senior Debt Rating ' Moody's } 4, Sap ‘Secured — Unsecured ‘Secured Unsecured Out!
Slide 20: Northern States Power — Minnesota
Xcel Energy~ Northern States Power — Minnesota 2004 Electric 2004 Gas Avg. Retail % of Xcel Energy Avg. Retail % of Xcel Energy Customers Retail Customers Customers Retail Customers 1,340,000 41.0% 447,500 25.7% ROE Allowed (Electric) 11.47% Norbaror une iinnesaes ROE on Average GAAP Equity 12.1% GA
Slide 21: Northern States Power — Wisconsin
_ -XeelEnergy Northern States Power — Wisconsin 2004 Electric 2004 Gas Retail %ofXcelEnergy Avg. Retail % of Xcel Eneray 240,035 7.3% 97,463 55% ROE Allowed (Electric & Gas) 11.9% halsjans ROE on Average GAAP Equity 12.70% GAAP ¥, Equity in Capital Structure 55.4% Senior Unsecured) Credit Rating AZB
Slide 22: Public Service Company of Colorado
_ -XeelEnergy Public Service Company of Colorado 2004 Electric 2004 Gas Avg Retail %ofXcelEnergy Avg. Retail % of Xcel Energy chara ReralIClistoniore wy CUston eral W petal Clisroinere 1,293,000 39.6% 1,197,000, 68.8% ROE Allowed (Electric) 10.75% Colorado ROE on Average GAAP Equity 9.9% GAAP ¥ Equi
Slide 23: Southwestern Public Service
@ Xcel Energy~ Southwestern Public Service 2004 Electric Avg. Retail Customers % of Xcel Energy Retail Customers 395,000 ROE Allowed (Electric — Texas) ROE on Average GAPP Equity % Equity in Capital Structure Senior Unsecured Credit Rating Electric Net Income: Net Income (Millions) 12.1% 11.5% Kansa
Slide 24: Energy Supply Mix — 2004
’ : Xcel Energy Energy Supply Mix — 2004 Owned and Purchased Fuel Mix Purchased Energy Gas Other 21% 41% Coal * Owned 54% Generation 68% Nuclear 12% Renewable 1% * Low-sulfur, low-mercury western coal
Slide 25: Coal Supply Contracted
Xcel Energy Coal Supply Contracted Coal Thansportation) are = Bei Annual consumption: 32 Million tons of low-sulfur, low-mercury western coal
Slide 26: Electric Fuel and Purchased Energy Cost Recovery Mechanisms
_ XeelEnergy Electric Fuel and Purchased Energy Cost Recovery Mechanisms Minnesota: Monthly recovery of prospective costs Colorado: Recovery of costs with sharing of deviations up to + $11.25 million from benchmark Texas: File for semi-annual adjustments — fequired if 4% annually: Wisconsin: Biennia
Slide 27: Key Assumptions for 2005 Earnings Guidance
_ -XeelEnergy Key Assumptions for 2005 Earnings Guidance _ Seren is held/for sale and accounted for as discontinued operations: __| Normal weather patterns are experienced for 2005 | Weather-adjusted retail electric sales growth of 1.6 to 2.0% _ Weather-adjusted retail natural gas sales growth of 1.
Slide 28: Key Assumptions for 2005 Earnings Guidance (continues)
_ -XeelEnergy Key Assumptions for 2005 Earnings Guidance (continues) _ 2005 utility other operating and maintenance expense is expected to increase between 2 to 3% compared with 2004 levels 2005 depreciation expense is projected to increase approximately 7 to 8% compared with 2004 _ | 2005 interest
Slide 29: Minnesota Metro Emissions Reduction Program (MERP)
linnesota Metre Sic Reduction Program (MERP) Convert two i ity coal plants to natural g refurbish a thir in-city coal plant __| Improves environment Mercury Particulate CO, day, 4 Target ROE: 40. 86% with incentive sliding scale 9.97 to 11.46% _ Equity ratio 48.5%
Slide 30: Searchable text section of graphics shown above
Searchable text section of graphics shown above [ LOG O] [GRAPHIC] Midwest Investor Meetings May 31 – June 1, 2005 [LOGO] Safe Harbor This material includes forward-looking statements that are subject to certain risks, uncertainties and assumptions. Such forward-looking statements include projected