Xcel Energy Inc. · NASDAQ:XEL
Xcel Energy — Lehman Energy Conference (September 2003)
23 slides from Xcel Energy's conference presentation, Sep 4, 2003
Slide 1: Xcel Energy
‘e) Xcel Energy”
Slide 2: Safe Harbor
This material includes forward-looking statements that are subject to certain risks, uncertainties and assumptions. Such forward-looking statements include statements regarding projected earnings, cash flows, capital expenditures and other statements that are intended to be identified in this docume
Slide 3: Dick Kelly, Vice President and CFO
Dick Kelly Vice President and CFO
Slide 4: Xcel Energy Investment Merits
Xcel Energy Investment Merits Integrated utility No restructuring anticipated Constructive regulation Earnings growth 2-3% per year Positive cash flow Improving credit profile Sustainable dividend Liquid stock
Slide 5: Customer forecast and service territory
Forecast Annual Electric Gas Growth Rate PSCo 1.3 1.2 1.9% NSPM 1.4 0.4 1.5 NSPW 0.2 0.1 1.8 SPS 0.4 - 0.3 Total 3.3 1.7 1.6% Customers (Millions) Minneapolis/St. Paul Minnesota Generating Plants Denver Colorado Amarillo Texas
Slide 6: Diverse Economic Base
Unemployment Rate: Xcel Energy Service Area: 5.1% Nationwide: 6.5% Fin & RE 6 Manufac t 18 Trade 25 Serv 21 Gov 18 Const 6 Transp 6 Diverse Economic Base Xcel Energy's 10 largest customers account for about 8% of retail sales Finance & Real Estate 6% Government 18% Trade 25% Transportation, Communic
Slide 7: Dynamic Service Area
Dynamic Service Area Target United HealthCare SuperValue U.S. Bancorp 3M Best Buy Company Xcel Energy Northwest Airlines St. Paul Companies Cenex Harvest State General Mills Medtronic, Inc. Nash Finch company PepsiAmericas C.H. Robinson Worldwide Fortune 500 Companies US 1.2 Xcel Serv ice Area 1.6 1
Slide 8: Retail Electric Rate Comparison
Retail Electric Rate* Comparison Central US * EEI typical bills - Winter 2002 Companies $ per MWH Amarillo 4.42 Salt Lake City 5.06 Kansas City 5.73 Denver 5.84 Minneapolis/St Paul 5.85 St Louis 5.92 Des Moines 6.26 Chicago 6.64 Milwaukee 6.67 Phoenix 7.85 Cents per Kwh Amarillo Kansas City Denver M
Slide 9: 2002 Generation Production Cost
2002 Generation Production Cost S&P Electric Index Companies Total Production $/MWh KeySpan Energy 14.65 Cinergy Corp. 15.36 Allegheny Energy, Inc. 16.16 Ameren Corp. 16.21 AES Corp., The 17.59 PPL Corp. 18.04 PG&E Corp 19.95 American Electric Power Company Inc 19.98 Duke Energy Corp. 20.71 Pinnacle
Slide 10: Balanced Power Supply
Balanced Power Supply Owned 72 > 5 Years 21 1-5 Years 4 <1 Year 3 2003 Energy (Projected) 2003 Capacity Contracted Purchases 28% Owned Generation 72% < 1 Yr 3% Coal 51 Gas 11 Other 2 Purchases 24 Nuclear 12 Purchases 24% Other 2% 1- 5 Yrs 4% > 5 Yrs 21% Nuclear 12% Coal 51% Gas 11%
Slide 11: Fossil Generation Equivalent Forced Outage Rate
Fossil Generation* Equivalent Forced Outage Rate Date Actuals 1999 4.56 2000 4.09 2001 3.82 2002 2.83 2003 2.8 * Greater than 100 Mw Percent of Time 4.6% 4.1% 3.8% 2.8% YTD June 30 2.8%
Slide 12: Fossil Generation Operating and Maintenance Costs
Date Actuals 1999 3.87 2000 3.65 2001 3.61 2002 3.56 Fossil Generation Operating and Maintenance Costs Dollars per Mwh Generated $3.87 $3.65 $3.61 $3.56
Slide 13: Sulfur Dioxide and Nitrogen Oxide Emission Rates
Date Sulfur Dioxide Emission Rate Nitrogen Oxide Emission Rate 1997 5.31 4.05 1998 4.96 3.82 1999 4.83 3.55 2000 4.47 3.4 2001 4.32 3.28 2002 4.31 3.2 2003* 3.77 2.8 Sulfur Dioxide and Nitrogen Oxide Emission Rates Pounds per Mwh * Estimated emission rates
Slide 14: Minnesota Emission Reduction Proposal (MERP)
Minnesota Emission Reduction Proposal (MERP) Coal to gas conversion - High Bridge 272 Mw - Riverside 79 Refurbish - King (coal-fired plant) 60 Total 411 Mw Emission reduction - SO2 36,000 tons/year - NOX 29,000 tons/year Capital expenditures $1 billion 2005-2009 Contingent on approval of cost recove
Slide 15: Liquidity
Avail- Company Facility Drawn able Cash* Liquidity NSPM $ 275 $ 40 $235 $110 $ 345 NSPW 0 0 0 7 7 PSCo 350 266 84 21 105 PSCo Bridge 300 300 0 0 0 SPS 100 38 62 32 94 Xcel Hold Co. 400 1 399 221 620 Total $1,425 $645 $780 $391 $1,171 Liquidity Dollars in Millions * Cash-on-hand reflects balances as
Slide 16: Capital Expenditures
Capital Expenditures 2003 2004 2005 Core Utility $862 $ 861 $ 954 Prairie Island Steam Generator 25 71 9 Minnesota MERP 13 68 137 Total Utility $900 $1,000 $1,100 Nonregulated 32 23 15 Total Capital Expenditures $932 $1,023 $1,115 Dollars in Millions Refurbishment 50 Upgrade 10 Customer Additions 25
Slide 17: Positive Cash Flow
Sources 2003 2004 2005 Cash from Operations $1,300 >$1,300 >$1,300 Avoided Tax Payment/Refund 125 475 125 Citadel Greenshoe Option 58 Dividend Reinvestment 20 40 40 Total Sources $1,503 >$1,815 >$1,465 Uses Capital Expenditures $ 932 $1,023 $1,115 Current Dividend Payment Rate 300 320 320 NRG Settle
Slide 18: Financing Plan
Financing Plan NSPM $408 7.0% $375 3.8% PSCo 589 7.2 250 4.875 Xcel Energy 195 3.4 Total $997 7.1% $820 4.0% Redeemed Issued Dollars in Millions NSPW $150 6.9% PSCo 30 6.45 SPS 100 7.85 Future Redemptions * * Used to pay down Xcel Energy credit facility ** Includes maturing debt and opportunistic re
Slide 19: 2003 Earnings Guidance
2003 Earnings Guidance Utility Operations $1.25 - $1.30 Seren (0.05) Eloigne 0.03 Holding Company Financings (0.09) Other Nonregulated Subsidiaries 0.01 Xcel Energy - Pro forma Continuing Oper $1.15 - $1.20 Xcel Energy Share of NRG's Losses (0.62) Tax Effect of Settlement Payments 0.65 Additional NR
Slide 20: Projected Retained Earnings
Projected Retained Earnings Year-end 2003 Dollars in Millions Retained Earnings Balance (6/30/2003) $(245) Earnings July - December * 290 Additional Tax Benefit from NRG Basis Study 100 Tax Benefit for Settlement Payments ** 260 Reversal of Negative NRG Investment ** 115 Dividend Declaration (150) P
Slide 21: NRG Settlement Schedule - 2003
Jul Aug Sep Oct Nov Dec NRG's Disclosure Statement Filed with SEC SEC Acts on NRG's Disclosure Statement Confirmation Hearing on NRG's Plan of Reorganization FERC Approval of Transfer Assets NRG Settlement Schedule - 2003 Completion of Solicitation Process of NRG's Reorganization Plan 20th
Slide 22: 2003 Priorities
2003 Priorities Complete resolution of NRG Manage costs and capital expenditures Deliver good value to our customers Complete refinance plan Improve credit ratings Meet earnings per share objective
Slide 23: Slide 23
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