Slide 1: Investing in the Core: Financial Results
Regulatory ar Investing in the Core Financial Results Ben Fowke Vice President and Chief Financial Officer
Slide 2: Safe Harbor
© 2) \KeelEnergy ze Safe Harbor This material includes forward-looking statements that are subject to certain risks, uncertainties and assumptions. Such forward-looking statements include projected earnings, cash flows, capital expenditures and other statements and are identified in this document by
Slide 3: Xcel Energy at a glance: rankings and customers
5th Largest Gas Distribution 4th Largest Combination Utility 3" Largest Electric Transmission Largest US Wind Provider Sale pending on Kansas and Oklahoma properties Gas Customers 4.8 million Electric Customers 3.3 million,
Slide 4: Strategy: Building the Core
Strategy: Building the Core Invest in fully regulated utility assets AND Increase our earned return on equity Regulatory and Legislative Policy = Investing in th on Regulatory Ri
Slide 5: Attractive Total Return with Low-Risk Strategy
Attractive Total Return with Low-Risk Strategy = EPS growth rate objective 5 — 7% per year* 2005 — 2009 = Annual dividend growth objective 2 — 4% per year @ Dividend yield + 4.7% * Excluding any impact from COLI
Slide 6: Getting the Rules Right — Achieved
hid Sted, Vin. oe ©) 2xeelEnergy". Getting the Rules Right — Achieved = Minnesota transmission legislation for renewables 2001 = MERP legislation 2001 = Comanche 3 regulatory framework 2004 = Transmission investment recovery legislation — Minnesota 2005 — Texas 2005 — South Dakota 2006 m= Reduced ex
Slide 7: Getting the Rules Right — In Process
ie % J Blk rd, Peds, ck edn, ed, Qed eneray > i | Getting the Rules Right — In Process = Monthly Colorado ECA adjustment — proposed @ Rider recovery of Colorado capacity costs — proposed m= Flow through recovery of SPS’ Texas capacity costs — rule making proceeding m™ Reduce NSP-Minnesota exposure t
Slide 8: Getting the Rules Right — In Process (continued)
2 xeetEnergy” Getting the Rules Right — In Process (continued) @ Rider recover of investment in Colorado IGCC based on the last authorized cost of capital — legislation pending = Rider recovery of investments to meet Minnesota 90% mercury reduction target applies to King and Sherco plants — legislat
Slide 9: Getting the Rules Right — Future Initiative
tind aes Se) Sted Sohn ( 3xeelEnergy’. Getting the Rules Right — Future Initiative = Forward test year in all jurisdictions
Slide 10: Investing in the Core: Generation Projects In Progress
Investing in the Core Generation Projects In Progress Riverside — 2009 Completion Comanche 3 - 2009 Completion
Slide 11: Rate Cases with 2006 Impacts
Bers XK Hes xT, Pe, , ( KeelEneroy’» Implementing the Strategy Increasing our Earned Return on Equity Rate Cases with 2006 Impacts Dollars in millions Dollar Increase Return on Equity Requested Granted Requested Granted Colorado Gas $34.5 $22.0 11.0% 10.5% Wisconsin Electric 53.1 43.4 11.9 11.0 Wisc
Slide 12: Minnesota Electric Case — Partial Settlement of Trading Margin
tind OS tnd Wee ( 3xeelEnergy’. Minnesota Electric Case — Partial Settlement of Trading Margin = Nocredit to base rates for wholesale electric margins = Margins to be flowed through fuel clause include: — 100% wholesale electric margins from excess generation capacity — 80% of wholesale margins from
Slide 13: Colorado Electric Case Highlights
Sk Bdn, & Peba x Brin oe res, Dame nary Colorado Electric Case Highlights = Requested $210 million increase = Electric rate base = $3.4 billion = 11% return on common equity = Equity ratio = 60% = Historical test year with adjustments for known and measurable = Final decision expected late 2006
Slide 14: PSCo Electric Rate Case Details
Sk Bdn, & Peba x Brin oe res, Dame nary PSCo Electric Rate Case Details Dollars in millions Under earning: 8.5% ROE vs 10.5% $ 64 Increase ROE to 11% and higher equity ratio 17 Comanche 3 24 Depreciation 33 Wholesale contract expiration 14 Employee related costs 6 Other 20 $178 PCCA impact & amendme
Slide 15: Upcoming Rate Case Filings
Texas Electric File May 31, 2006 Colorado Gas File 2006 Minnesota Gas File 2006 North Dakota Electric Potential New Mexico Electric Potential South Dakota Electric Potential
Slide 16: Earnings Guidance Range
Earnings Guidance Range Dollars per share 2006 Regulated utility $1.25 - $1.35 Holding company and other (0.10) COLI — Tax benefit 0.10 Continuing operations $1.25 — $1.35
Slide 17: Attractive Total Return with Low-Risk Strategy
eS pes, pes, pes, et (2) Xcel Energy’ Attractive To with Low-Ris
Slide 18: Appendix
Appendix
Slide 19: 2005 Jurisdictional Returns
eee ( 3KeelEnergy" 2005 Jurisdictional Returns Return on Equity* Rate Weather- Base* Actual Normalized Colorado Electric $3,120 8.5% Colorado Gas 1,084 7.00 Minnesota Electric 3,230 10.61 9.98% Minnesota Gas 422 6.30 7.42 North Dakota Electric 176 12.46 12.65 North Dakota Gas 42 5:71) 6.81 * Dollars
Slide 20: Minnesota Electric Rate Case Schedule
eee ae OY bey ee : eee ( 3xeelEnergy’. Minnesota Electric Rate Case Schedule § Initial Briefs — May 24 @ Reply Briefs — June 6 @ ALJ Report — July 6 =m MPUC Decision — September 5
Slide 21: Xcel Energy Supply Sources
eS (Keel Energy”» Xcel Energy Supply Sources 2005 Energy Supply Mix* Gas & Oil Nuclear 38% =p 10% Renewables Coal ** 45% * Includes purchases * Low-sulfur western coal 2005 Owned Generating Facilities Unit Type Number MW Coal 36 8,138 Natural Gas 61 4,918 Nuclear 3 1,617 Hydro 83 508 Oil 24 492 RDF
Slide 22: Searchable text section of graphics shown above
Searchable text section of graphics shown above [LOGO] Regulatory and Legislative Policy Investing in the Core Regulatory Recovery Financial Results Ben Fowke Vice President and Chief Financial Officer Safe Harbor This material includes forward-looking statements that are subject to certain risks, u