Xcel Energy Inc. · NASDAQ:XEL
Xcel Energy — Non-Deal Roadshow (March 2006)
25 slides from Xcel Energy's roadshow presentation, Mar 13, 2006
Slide 1: Implementing the Strategy
(2) Xcel Energy’ Implementing the Strategy New York City Investor Meetings March 14, 2006
Slide 2: Forward-looking statements
2 Xcel Energy’ 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 the words “antic
Slide 3: Attractive Total Return with Low-Risk Strategy
2 Xcel Energy’ Attractive Total Return with Low-Risk Strategy = Current dividend yield #4.75% = EPS growth rate objective 5 —7% per year*™ 2005 — 2009 = Annual dividend growth objective 2 — 4% per year * Excluding any impact from COLI
Slide 4: Strategy — Building the Core
2 Xcel Energy’ Strategy — Building the Core Invest in rate base assets AND Increase our earned return on equity
Slide 5: Investing in Rate Base Assets
2 Xcel Energy’ Implementing the Strategy Investing in Rate Base Assets Capital Expenditure Forecast Dollars in millions 2006 2007 2008 2009 Total Base level $1,046 $1,016 $ 920 $1,034 Minnesota MERP. 336 228 180 44 Comanche 3 198 331 284 73 Total $1,580 $1,575 $1,384 $1,148 $5,687 Anticipated annual
Slide 6: Increasing our Earned Return on Equity
2 Xcel Energy’ Implementing the Strategy Increasing our Earned Return on Equity @ Pre-established recovery mechanisms — MERP rider — Comanche 3 — Transmission riders @ File rate cases
Slide 7: Metro Emission Reduction Project
2 Xcel Energy’ Metro Emission Reduction Project Instituted $40 million MERP Rider in Minnesota jurisdiction January 2006 King = 571 MW coal plant refurbishment = in service May 2007 High Bridge Y = 271 MW coal conversion to 575 MW gas = inservice May 2008 Riverside = 386 MW coal conversion to 520 MW
Slide 8: Comanche Unit
2 Xcel Energy’ Comanche Unit 3 = 750 MW super-critical coal plant in Colorado = 18 months from application to beginning construction = On schedule ¥ @ On budget
Slide 9: Investing in Transmission
2 Xcel Energy’ Investing in Transmission Capital Expenditure Forecast Dollars in millions 2006 2007 2008 2009 2010 Total NSPM* $148 $103 $53 $59 $59 $422 PSCo 31 63 98 57 102 351 SPS* 18 40 38 27 27 150 NSPW ae 16 12 12 12 69 Total $214 $222 $201 $155 $200 $992 * Recovery of qualifying investments t
Slide 10: Rate Cases with 2006 Impacts
2 Xcel Energy’ Implementing the Strategy Increasing our Earned Return on Equity Rate Cases with 2006 Impacts SIELUE = Colorado Gas Completed = Wisconsin Electric and Gas Completed = Minnesota Electric Decision 2006 Q3
Slide 11: Colorado Gas Rate Case Highlights
2 Xcel Energy’ Colorado Gas Rate Case Highlights Xcel Energy Request Commission Decision = $34.5 million request = $22 million granted = 11.0% return on equity = 10.5% return on equity Rates effective February 2006
Slide 12: Wisconsin Rate Cases Highlights
2 Xcel Energy’ Wisconsin Rate Cases Highlights Xcel Energy Request Commission Decision @ $53.1 million electric = $43.4 million electric @ $7.8 million gas = $3.9 million gas 11.9% ROE = 11.0% ROE = 56.32% common equity = 54% common equity Rates effective January 2006
Slide 13: Minnesota Electric Case Highlights
2 Xcel Energy’ Minnesota Electric Case Highlights @ Requested $168 million increase, based on forecast 2006 test year = 11% return on common equity = $147 million interim rate increase January 2006 = Customer impact — Base rate increase of 8% — Interim rate increase of 6.9% & Final decision expected
Slide 14: Minnesota Electric Rate Case: Department of Commerce Recommendation
2 Xcel Energy’ Minnesota Electric Rate Case Department of Commerce Recommendation Dollars in millions Increase requested $168 ROE 10.54% vs. 11% $-13 Post-Retirement Benefit Costs oo Incentive Compensation - 7 Sales to Flint Hills - 20 Trading Margins -24 MISO Charges - 4 _ Total $-70 $ 98 Earnings
Slide 15: Minnesota Electric Rate Case: Other Intervenors
Minnesota Electric Rate Case ©“ Other Intervenors = Treatment of short-term wholesale = Purchased capacity equity rider = MISO cost @ Office of the Attorney General — Minnesota income tax based on consolidated return
Slide 16: Minnesota Electric Rate Case Schedule
2 Xcel Energy’ Minnesota Electric Rate Case Schedule Intervenor Testimony — March 2 Rebuttle Testimony — March 30 Surrebuttle Testimony — April 13 Evidentiary Hearings — April 20 — 28 Initial Briefs - May 24 Reply Briefs — June 6 ALJ Report — July 6 MPUC Decision — September 5
Slide 17: Rate Cases with Expected 2007 Impacts
2 Xcel Energy’ Rate Cases with Expected 2007 Impacts = Colorado Electric — File in April 2006 @ Texas Electric — File May-June 2006 = Colorado Gas — File late Spring 2006 = Minnesota Gas — File late 2006 @ North Dakota Electric — File late 2006 m= New Mexico Electric — Potential = South Dakota Elect
Slide 18: Well-Positioned for Regulatory Success
2 Xcel Energy’ Well-Positioned for Regulatory Success = Prudent investment to meet customer requirements = Environmental stewardship = Constructive regulation & Innovative regulatory recovery
Slide 19: Earnings Guidance Range
2 Xcel Energy’ 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 20: Financial Performance Objectives
2 Xcel Energy’ 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 any impact from COLI
Slide 21: Appendix
2 Xcel Energy’ Appendix
Slide 22: Strong Regional Economy
2 Xcel Energy’ Strong Regional Economy Unemployment rate — December 2005 US 4.6% Xcel service area 4.0% Xcel annual sales growth — 2005-2009 Electric 1.8% Gas 1.5% * Sale pending on Kansas and Oklahoma properties
Slide 23: Xcel Energy 2005 Owned Generating Facilities
2 Xcel Energy’ Xcel Energy 2005 Owned Generating Facilities Unit Type Number MW Percent Coal 36 8,138 52 Natural Gas 61 4,918 31 Nuclear 3 1,617 10 Hydro 83 508 3 Oil 24 492 3 RDF 6 96 1 Wind - 25 ~ - Total 15,794 * Additionally, Xcel Energy purchases 928 MWs of wind power
Slide 24: Senior Debt Ratings
2 Xcel Energy’ Senior Debt Ratings Moody’s S&P Secured Unsecured Secured Unsecured Holding Co. - Baa1 - BBB- NSPM A2 A3 A- BBB- NSPW A2 A3 A- BBB PSCo AS Baa‘ A- BBB- SPS - Baa1 - BBB Outlook Stable Stable
Slide 25: Searchable text section of graphics
Searchable text section of graphics shown above [L OGO] [GRAPHIC] Implementing the Strategy New York City Investor Meetings March 14, 2006 Xcel Energy Inc. 800 Nicollet Mall Minneapolis, Minnesota 55402 www.xcelenergy.com [L OGO] This material includes forward-looking statements that are subject to