Slide 1: 2022 Q2 Earnings Report Presentation
2022 Q2 EARNINGS REPORT PRESENTATION JULY 28, 2022
Slide 2: Safe Harbor
Safe Harbor Except for the historical statements contained in this presentation, the matters discussed herein are forward-looking statements that are subject to certain risks, uncertainties and assumptions. Such forward-looking statements, including those relating to 2022 EPS guidance, long-term EPS
Slide 3: Financial and Operational Highlights
Financial and Operational Highlights • Approval of our Colorado resource plan with 85% carbon emissions reduction by 2030 • MISO Board approved Tranche 1 portfolio with Xcel Energy estimated investment of ~$1.2 billion • Development of Minnesota and Wisconsin electric vehicle plans to be filed later
Slide 4: Colorado Resource Plan
Colorado Resource Plan 85% Carbon Reduction by 2030 & Coal Exit by 2031 Full coal exit by January 2031 Significant renewable additions • Hayden 1 & 2 (233 MW) retire 2028/2027 • ~2,400 MW wind • Pawnee (505 MW) conversion to natural • ~1,600 MW universal scale solar gas no later than January 2026 •
Slide 5: Minnesota Resource Plan
Minnesota Resource Plan 85% Carbon Reduction & Coal Exit by 2030 Full coal exit by 2030 Significant renewable additions • King (511 MW) retire 2028 • 2,500 MW universal scale solar • Sherco 3 (517 MW) retire 2030 • 2,150 MW wind • Additional 1,100 MW beyond 2032 Firm peaking capacity (reliability dr
Slide 6: Transmission Expansion - Colorado Pathway
Transmission Expansion - Colorado Pathway $1.7 Billion Transmission Backbone - Approved • Enables ~5,500 MW of renewable generation • ~560 miles of 345 kV lines; three new, four expanded substations • Settlement reached November 2021, including the $1.7 billion estimate and rider recovery • Commissi
Slide 7: Transmission Expansion - MISO Tranche 1
Transmission Expansion - MISO Tranche 1 MISO Tranche 1 (in service by 2030) • 18 projects totaling $10.3 billion 3 2 Xcel Energy Preliminary Estimates 5 4 • ~$1.2 billion based on the following:* 6 2 Alexandria - Cassie’s Crossing 3 Iron Range - Benton - Cassie’s Crossing 4 Wilmarth - North Rocheste
Slide 8: EPS Results by Operating Company
EPS Results by Operating Company Second Quarter YTD Operating Company 2022 2021 2022 2021 PSCo $ 0.24 $ 0.25 $ 0.56 $ 0.56 NSPM 0.22 0.21 0.45 0.45 SPS 0.17 0.13 0.27 0.23 NSPW 0.03 0.03 0.11 0.09 Earnings from equity method investments 0.01 0.01 0.02 0.02 Regulated utility 0.67 0.62 1.41 1.35 Holdi
Slide 9: Quarterly GAAP and Ongoing EPS Change
Quarterly GAAP and Ongoing EPS Change $0.06 ($0.15) $0.26 ($0.05) ($0.03) ($0.03) ($0.02) ($0.01) ($0.01) $0.58 $0.60 2021 Q2 2022 Q2 EPS EPS * Includes PTCs and plant regulatory amounts, which are primarily offset in electric margin 8
Slide 10: YTD GAAP and Ongoing EPS Change
YTD GAAP and Ongoing EPS Change $0.10 $0.04 ($0.21) $0.34 ($0.06) ($0.06) ($0.04) ($0.04) ($0.02) $1.25 $1.30 2021 YTD 2022 YTD EPS EPS * Combined electric and natural gas margins include ~$0.03 of positive weather impacts (post regulatory mechanisms) ** Includes PTCs and plant regulatory amounts, w
Slide 11: Sales and Customer Data
Sales and Customer Data 2022 YTD W/A Retail Electric Sales Growth 2022 Q2 YoY Electric Customer Growth 8.2% 3.0% 3.0% 3.1% 1.0% 1.0% 0.9% 1.0% 0.6% -0.4% NSPM NSPW PSCo SPS Xcel Energy NSPM NSPW PSCo SPS Xcel Energy 2022 YTD W/A Natural Gas Sales Growth 2022 Q2 YoY Natural Gas Customer Growth 8.3% 6
Slide 12: PSCo Colorado Comprehensive Uri Settlement
PSCo Colorado Comprehensive Uri Settlement Proceeding No. 21A-0192EG In October 2021, PSCo filed a settlement that proposed to address several regulatory items: • Full recovery of all Winter Storm Uri deferred fuel costs through a rider – Electric: $263 million over 24 months with no carrying charge
Slide 13: SPS Texas Electric Rate Case - Approved
SPS Texas Electric Rate Case - Approved Proceeding No. 51802 • In February 2021, SPS filed a required electric rate case: – Requesting base rate increase of ~$140 million – ROE of 10.35% and equity ratio of 54.6% – Rate base of ~$3.3 billion – Historic test year ended December 31, 2020 – Changes to
Slide 14: PSCo Colorado Natural Gas Rate Case
PSCo Colorado Natural Gas Rate Case Proceeding No. 22AL-0046G • In January 2022, PSCo filed a natural gas rate case: – Requesting a revised net base rate increase of ~$94 million in 2022, with incremental step increases of $40 million in 2023 and $41 million in 2024 – Total revised change to base ra
Slide 15: NSPM South Dakota Electric Rate Case
NSPM South Dakota Electric Rate Case Proceeding No. EL22-017 • In June 2022, NSPM filed an electric rate case requesting: • Rate increase of ~$44 million • ROE of 10.75% and equity ratio of 53% • Rate base of ~$947 million • 2021 historic test year • Rates expected to be effective in 2023 Q1 14
Slide 16: NSPM Minnesota Electric Rate Case
NSPM Minnesota Electric Rate Case Proceeding No. 21-630 • In October 2021, NSPM filed a three-year electric rate case: – Requesting rate increase of $677 million over three years – ROE of 10.2% and equity ratio of 52.5% – 2022 - 2024 forecast test years $ Millions, Except Percentages 2022 2023 2024
Slide 17: NSPM Minnesota Natural Gas Rate Case
NSPM Minnesota Natural Gas Rate Case Proceeding No. 21-678 • In November 2021, NSPM filed a natural gas rate case: – Requesting rate increase of ~$36 million – ROE of 10.5% and equity ratio of 52.50% – Rate base of ~$934 million – 2022 forecast test year • In 2021, the MPUC approved interim rates of
Slide 18: 2022 GAAP and Ongoing EPS Guidance: $3.10 - $3.20
2022 GAAP and Ongoing EPS Guidance: $3.10 - $3.20 Earnings Drivers Key Assumptions (as compared to 2021 levels unless noted) Regulatory proceedings Constructive outcomes in all proceedings Weather Normal weather patterns for the remainder of the year W/A retail electric sales Increase of ~2% W/A ret
Slide 19: Appendix
APPENDIX 18
Slide 20: Robust Base Capital Forecast 2022 - 2026
Robust Base Capital Forecast 2022 - 2026 Investment by Function Investment by Company Other Electric 10% Distribution SPS SPS NSPM NSPM 30% 15% 14% 37% 39% Natural Gas LDC $26 $22.5 $26 13% Billion Billion Billion Electric Electric PSCo Generation Transmission 38% NSPW 12% NSPW 29% 10% 9% Renewables
Slide 21: Base Capital Expenditures by Function
Base Capital Expenditures by Function $ Millions 2022 2023 2024 2025 2026 Total Electric Distribution $1,485 $1,600 $1,520 $1,605 $1,720 $7,930 Electric Transmission $1,105 $1,220 $1,575 $1,965 $1,555 $7,420 Natural Gas $655 $670 $695 $660 $660 $3,340 Electric Generation $645 $580 $670 $650 $650 $3,
Slide 22: Base Capital Expenditures by Company
Base Capital Expenditures by Company $ Millions 2022 2023 2024 2025 2026 Total NSPM $2,250 $2,030 $1,830 $2,130 $2,010 $10,250 NSPW $480 $420 $540 $460 $390 $2,290 PSCo $1,930 $1,850 $2,070 $2,220 $1,860 $9,930 SPS $630 $660 $690 $780 $790 $3,550 Other* ($10) $0 $10 ($30) $10 ($20) Total $5,280 $4,9
Slide 23: Potential Incremental Investment 2022 - 2026
Potential Incremental Investment 2022 - 2026 $1.5 - $2.5 Billion in Incremental Opportunities $1.0 - $1.5 Billion Renewables ~2,000 MW proposed additions across Colorado and Minnesota resource plans for 2024 - 2026, assuming 50% ownership $0.5 - $1.0 Billion Transmission Enables renewables associate
Slide 24: Strong Rate Base Growth
Strong Rate Base Growth Xcel Energy Consolidated Op Co Base CAGRs 2021-2026 $ Billions Base 2021 - 2026 CAGR: ~6.5% NSPM PSCo Incremental 2021 - 2026 CAGR: ~7.3% ~6% ~7% $51.2 XEL $48.5 ~6.5% NSPW SPS ~11% ~5% $47.3 $49.4 $41.7 $44.4 $36.1 $39.2 Op Co CAGRs exclude potential 2021 2022E 2023E 2024E 2
Slide 25: Financing Plan 2022 - 2026
Financing Plan 2022 - 2026* $ Millions $800 $450 $7,110 $3,900 $3,900 $26,000 $17,640 CFO** Maturing Refinanced Incremental Equity Equity Base Plan LT Debt LT Debt Debt (Other) (DRIP) * Financing plans are subject to change ** Cash from operations is net of dividends and pension funding 24
Slide 26: 2022 Debt Financing Plan
2022 Debt Financing Plan $ Millions Issuer Security Amount Status Tenor Coupon Hold Co Senior Unsecured Bonds $700 Complete 10-Yr 4.60% NSPM Green First Mortgage Bonds $500 Complete 30-Yr 4.50% PSCo First Mortgage Bonds $300 Complete 10-Yr 4.10% PSCo First Mortgage Bonds $400 Complete 30-Yr 4.50% SP
Slide 27: Strong Credit Metrics
Strong Credit Metrics Plan 2022 2023 2024 2025 2026 FFO/Debt ~17% ~17% ~17% ~17% ~17% Debt/EBITDA 5.0x 4.9x 4.8x 4.8x 4.7x Equity Ratio 40% 41% 41% 41% 41% Hold Co Debt/Total Debt 24% 23% 23% 23% 24% Credit Ratings Moody’s S&P Fitch Xcel Energy Unsecured Baa1 BBB+ BBB+ NSPM Secured Aa3 A A+ NSPW Sec
Slide 28: NSPM North Dakota Natural Gas Rate Case
NSPM North Dakota Natural Gas Rate Case Proceeding No. PU-21-381 • In September 2021, NSPM filed a natural gas rate case seeking a $7 million increase – Revised rate increase of ~$6 million in April 2022 – ROE of 10.5% and equity ratio of 52.54% – Revised rate base of ~$115 million – 2022 forecast t
Slide 29: ROE Results – GAAP and Ongoing Earnings
ROE Results – GAAP and Ongoing Earnings GAAP and Ongoing ROE 2021 Rate Base Twelve Months Ended 6/30/2022 SPS 10.76% 10.61% 18% 9.07% 8.38% NSPM 8.17% 7.94% ~$36 39% PSCo Billion 38% NSPM NSPW PSCo SPS Total Xcel NSPW OpCo Energy 5% 28
Slide 30: 2022 YTD W/A Electric Sales Growth
2022 YTD W/A Electric Sales Growth NSPM NSPW PSCo SPS Residential C&I 10.4% Total Retail 8.2% 4.1% 3.9% 3.0% 3.0% 0.7% 1.0% 1.0% -0.4% -0.8% -3.2% Extreme weather variations, windchill and cloud cover may not be reflected in growth (decline) estimates 29
Slide 31: Xcel Energy W/A Sales Growth
Xcel Energy W/A Sales Growth Residential C&I Total Retail Electric Natural Gas Electric Natural Gas 4.8% 3.1% 2.1% 3.1% 1.7% 0.8% 0.7% 0.4% 1.2% -1.0% -3.1% -5.4% 2022 2022 2022 2022 2020* 2021* YTD 2020* 2021* YTD 2020* 2021* YTD 2020* 2021* YTD * Leap year adjusted Extreme weather variations, wind
Slide 32: Pension Profile
Pension Profile Funded Status and Assumptions Target Asset Allocation Discount Rate 3.08% Long-duration fixed income Domestic and securities Return international 38% ~100% equity securities 6.49% 33% Short-to- Trackers intermediate MN, WI, CO, TX fixed income Alternative securities investments 11% C
Slide 33: 2022 Q3 Events
2022 Q3 Events Events Dates Goldman Sachs Conference August 11 UBS Kohler Conference August 18 Barclays Conference September 7 Wolfe Research Conference September 28 32
Slide 34: © 2022 Xcel Energy Inc.
(2) Xcel Energy’ © 2022 Xcel Energy Inc.