Xcel Energy Inc. · NASDAQ:XEL
Xcel Energy — Non-Deal Roadshow (May 2006)
45 slides from Xcel Energy's roadshow presentation, May 22, 2006
Slide 1: Building the Core, Executing the Strategy
Building the Core Executing the Strategy = European Investor Meetings May 24 - 26, 2006
Slide 2: Safe Harbor
2 oxeeleneray’» eg Pee ai ee, Ui, 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 th
Slide 3: Table of Contents
Table of Contents Xcel Eneray Service Area ‘Strategy: Building the Core Attractive Total Return with Low-Risk Strategy Status of US Electricity Regulation 2005 Average Retail Electric Rete Comparison Xcel Energy Supply Sources Renewable Eneray Sources Effective Demand-Side Management (OSM) Xcel Ener
Slide 4: Xcel Energy Service Area
Northern S Public Com 2005 Earnings Available: $509 Million % 5 Largest Gas Distribution ’ 4 Largest Combination Utility 3/4 Largest Electric Transmission Largest US Wind) Provider. Gas Customers 4.8) million, Electric Customers 3.3 million
Slide 5: 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 6: 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 Corporate Owned Life Insurance
Slide 7: Status of US Electricity Regulation
Po okeeknerays Status of US Electricity Regulation States served NS by Xcel Energy ” Adopted restructuring ll Delayed start dates @§ Large customer access ll Repealed restructuring lll Restructuring suspended Mil Regulated
Slide 8: 2005 Average Retail Electric Rate Comparison
Bers ae mT, Pe, , ( KeelEneroy’» 2005 Average Retail Electric Rate Comparison 20 Cents per KWh 16 12
Slide 9: Xcel Energy Supply Sources
eS (Keel Energy”» Xcel Energy Supply Sources 2005 Coal ** 45% * Includes purchases * Low-sulfur western coal 2005 Owne 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 6 96 Wind - 25* Total 15,794 * Xcel Energy supplies in exces
Slide 10: Renewable Energy Sources
Renewable Energy Sources* Type Wind Hydro Biomass & RDF Solar Total In Service Wind Biomass & RDF Solar In Progress Capacity 1,183 MW 4,652 MW 146 MW 40 KW 2,981 MW 1,203 MW 85 MW 8 MW 1,296 MW * Owned and purchased
Slide 11: Effective Demand-Side Management (DSM)
me pets, pet on ( )xeelEnergy’ Effective Demand-Side Management (DSM) MWs Avoided through Conservation and Load Management 2,050 1,850 1,625 1,375 1,175 675 400 afl 2002 ©2004» 2006 1992 1994 1996 1998 2000
Slide 12: Xcel Energy Resource Need
24,000 Resource need without renewal of expiring purchase contracts Supply requirementea, 2007 2008 2009 2010 92011
Slide 13: Getting the Rules Right — Achieved
Pe ee © aKeelEnergy” 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 | ™ Reduced exposure to gas
Slide 14: Getting the Rules Right — In Process
(72 \XeelEneray” 3 * * \ Getting the Rules Right — In Process = Monthly Colorado ECA adjustment — proposed = Rider recovery of Colorado capacity costs — proposed = Flow through recovery of SPS Texas capacity costs — rule making proceeding m= Reduce NSP-Minnesota exposure to trading and marketing mar
Slide 15: Getting the Rules Right — In Process (continued)
ke j x Mey eee? , Seis, , xe! Energy”. Getting the Rules Right — In Process (continued) @ Rider recover of investment in Colorado IGCC — legislation pending Future Initiative = Forward test year in all jurisdictions
Slide 16: Capital Expenditures 2006 — 2009
ety ee ah es, (72 ‘Xcel Energy’ Capital Expenditures 2006 — 2009 Electric Transmission 14% Gas Electric Distribution 24% Nuclear Fuel , 4% Generation 40%
Slide 17: Minnesota Metro Emissions Reduction Program (MERP) $1 Billion
Se Bi ge Pe gk DP ie ge BPs, Cmeal Energy > Minnesota Metro Emissions Reduction Program (MERP) $1 Billion = Convert two in-city coal plants to natural gas & refurbish a third in-city coal plant = Improves environment SO2 NOx Mercury Particulate COz Josy J 91% J 78% J 55% J 21% @ Cash return on inves
Slide 18: Comanche 3 — 750 MW Coal Station
Le Bod Ss Foed rd Ne ee ‘Xcel Energy’». Comanche 3 — 750 MW Coal Station = 18 Months — application to construction = Major contracts signed for turbine generator, boiler and air quality control system — within budget = Began construction in October 2005. Major contractors start May 2006 = Constructi
Slide 19: Comanche Environmental Improvements
i eae. Wien Raat © 3xeelEnergy"» Comanche Environmental Improvements 18000 45000 @Pre-Project ® Post-Project 12000 9000 6000 3000 0 So, NO, Electricity (Tonsfyear) (Tonsfyear) Production (GWhiyear)
Slide 20: NSP Nuclear Relicensing Status
ele tel, tele el Oaxeelcneray> NSP Nuclear Relicensing Status Monticello = Minnesota PUG, legislative and NRC approvals expected 2006 — 2007 & Life Cycle modifications to be installed 2008 — 2012, projected capital cost of $150 — 200 million Prairie Island = Begin license application to the NRC and
Slide 21: New Initiatives
New Initiatives = Minnesota mercury reduction program = Integrated gasification combined cycle (IGCC) & 8 MW photovoltaic installation planned = Wind =» Electricity == Hydrogen ==» Energy @ CapEx 2020
Slide 22: Xcel Energy — An Environmental Leader
PD eeteneray’ Xcel Energy — An Environmental Leader Pounds per MWh Owned Generation (GWh) 6 100,000 5 4 80,000 7" 3 5 60,000 1 0 0 1997 1999 2001 2003 2005 2007 2009 —— Nitrogen Oxide emissions — Sulfur Dioxide emissions [HE Owned generation (GWh)
Slide 23: Increasing Our Earned Return on Equity
Ltd ee eee te ee Ssh ( )xeelEnergy’ 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 Wisconsin Gas 7.8 3.9 11.9 11.0
Slide 24: Colorado Electric Rate Case Highlights
Colorado Electric Rate 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 25: Rate Cases with Expected 2007 Impacts
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 26: 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 27: Earnings Growth Drivers
Earnings Growth Drivers Annual 2009 Growth 2005* Potential Rate Rate Base $10.9 B $13 B 4.5% Regulatory Equity Capitalization 52% 52-54% 0to1% Earned Return on Utility Rate Base Equity 9.5% 10.5to011% 2.5to3.5% * Estimated regulatory results
Slide 28: Financial Performance Objectives
Find Mote tele = AP, Cakenlereray 2A Pe * 2 Financial Performance Objectives = EPS growth rate 2005 — 2009 — Target 5 -—7% per year* = Annual dividend increases of 2 — 4% per year @ Deliver an attractive total return with low risk = Credit rating — Senior unsecured debt BBB+ to A range * Excluding a
Slide 29: Appendix
Appendix
Slide 30: Dick Kelly — Chairman, President and CEO
Dick Kelly | Chairman, President and CEO executive officer of Xcel Energy. From June to mid-December 2005 he served as president and chief executive officer; from October 2003 until June 2005, he was Xcel Energy's chief operating officer, and previous to that he served as chief financial officer. Pr
Slide 31: Ben Fowke — Vice President and CFO
2 oxeeleneray’» Ben Fowke Vice President and Chief Financial Officer Benjamin (Ben) Fowke is vice president and chief financial officer (CFO) of Xcel Energy. Previously he served as vice president and treasurer. Before being named vice president and treasurer in 2002, Fowke was vice president and CF
Slide 32: Senior Debt Ratings
Keel Energy” Senior Debt Ratings Secured Unsecured Fitch Moody’s S&P Fitch Moody's S&P. Holding Co. BBB+ Baa BBB- NSPM At A2 A- A AS BBB- NSPW At A2 A- A AS BBB PSCo A- AS A- BBB+ Baa BBB- SPS A- Baa1 BBB
Slide 33: Xcel Energy Regulatory Team
_ Xcel Energy Regulatory Team Dave Sparby: Vice President, Government and Regulatory Affairs. 25 years experience; oversees all regulatory and legislative initiatives of Xcel Eneray. Minnesota Judy Poferl: Director, Regulatory Administration North, 20 years experience; directs all Minnesota regulato
Slide 34: Minnesota Commission
eee? Wee ( 3KeelEnergy" Minnesota Commission Commissions appointed by the governor for 6-year term Years on Name Party Commission Leroy Koppendrayer, Chair Republican 8 Kenneth Nickolai No Affiliation 2.5 Marshall Johnson Independent 13 Thomas Pugh Democrat 6 Phyllis Reha Democrat 3)
Slide 35: Minnesota Commission Staff
tind pat pet oe Wee ( 3xeelEnergy’. Minnesota Commission Staff (Provides advisory function for Commission) Years Name of Service Responsibility Burl Haar, Manage overall agency Executive Secretary 13 operations Janet Gonzalez, Manager advisory function Energy Supervisor 24 for energy proceedings Kar
Slide 36: Minnesota Department of Commerce
tind pat pet oe Wee ( 3xeelEnergy’. Minnesota Department of Commerce (Sister agency to Commission; Performs advocacy function) Years Name of Service Responsibility Glen Wilson, Oversees full Commissioner 3 Commerce Department Edward Garvey, Directs state energy & Deputy Commissioner KJ telecommunica
Slide 37: Minnesota Cost Recovery Mechanisms
xeelEnergy”». Minnesota Cost Recovery Mechanisms = Projected electric fuel and purchased energy costs billed for the current month with subsequent true-up; MISO costs recovered through FCA on interim basis, with final recovery mechanism being developed by stakeholders = Projected purchased gas cost
Slide 38: Minnesota Electric Rate Case Schedule
tied. keds bey ee : eee ( 3xeelEnergy’. Minnesota Electric Rate Case Schedule § Initial Briefs - May 24 @ Reply Briefs — June 6 = ALJ Report — July 6 = MPUC Decision — September 5
Slide 39: Minnesota Electric Case — Partial Settlement of Trading Margin
tied Sed, en On © © \KeelEnergy" my 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
Slide 40: Colorado Commission
Colorado Commission Commissions appointed by the governor for a five-year term Years on Name Party Commission Greg Sopkin, Chair Republican 3 Carl Miller Democrat d Polly Page Republican 5
Slide 41: Colorado Commission Staff
Colorado Commission Staff Years Name of Service Responsibility Geri Santos-Rach 10 Chief of Fixed Utilities Ron Davis 1 Principle Economist Gary Klug 20 Chief Engineer
Slide 42: Colorado Cost Recovery Mechanisms
xeelEnergy”». Colorado Cost Recovery Mechanisms = Energy Cost Adjustment recovers electric fuel and purchased energy costs for retail load with a maximum gain or loss of $11.25 million = Monthly Gas Cost Adjustment recovers the cost of the natural gas commodity, interstate pipeline and storage costs
Slide 43: 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 10.75% $ 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 & amendm
Slide 44: 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 45: Searchable text section of graphics
Searchable text section of graphics shown above [LOGO] Building the Core Executing the Strategy [GRAPHIC] European Investor Meetings May 24 – 26, 2006 Xcel Energy Inc. 414 Nicollet Mall Minneapolis, Minnesota 55401 www.xcelenergy.com [LOGO] Safe Harbor This material includes forward-looking statemen