Xcel Energy Inc. · NASDAQ:XEL
Xcel Energy — Investor Day (November 2005)
32 slides from Xcel Energy's investor day presentation, Nov 28, 2005
Slide 1: Invest in Regulated Utility Business
Xcel Energy’ Executing The Operating, Company Plans Financial) Performance Regulators/ Legislators Value to Environmental Customers. Stewardship Invest in Regulated Utility Business Paul Bonavia President — Utilities Group
Slide 2: Safe Harbor
Safe Harbor —EE——E—————_—————EEEEEEE—EE 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 doc
Slide 3: Operating Companies
Operating Companies [aan Energy is Group Public Southwestern Northern Northern I 2 States Power States Power Service Public Minnesota Wisconsin Company: of ee ‘olorado company Nee) NSE) PSCo SPS
Slide 4: Northern States Power — Minnesota
Northern States Power — Minnesota De North Dakota South Dakota 2004 Customers Electric 1,352,244 Gas 453,982 Minnesota Strong Regional Economy Unemployment rate — September 2005 US 4.8% NSP(M) 3.5% Job growth — 2006 Forecast NSP(M) 1.3% Xcel annual sales growth — 2005 — 2009 Electric 1.7% Gas 1.5%
Slide 5: Northern States Power — Minnesota: Future Power Requirements
Northern States Power — Minnesota Future Power Requirements ———————— SE Load & Resources MWs in thousands 16 14 Load Obligation 12 @15% Reserve 10 8 6 4 2 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 @ Non-Nuclear Owned Gi Nuclear (Long-Term Purchases Short-Term Purchases
Slide 6: Northern States Power — Minnesota: Resource Plan
Northern States Power — Minnesota Resource Plan De = 1,805 MW incremental non-renewable resource need by 2015 = 560 MW incremental renewable resource need by 2015 «= 780 MW previously mandated renewable resources in progress = Nuclear plant relicensing = CapX transmission bill
Slide 7: Northern States Power — Minnesota: Customer Relations
Northern States Power — Minnesota Customer Relations De = Top quartile reliability = Top quartile customer satisfaction = Public support for environmental initiatives = Fuel cost mitigation plan
Slide 8: Northern States Power — Minnesota: Regulatory Climate
Northern States Power — Minnesota Regulatory Climate = Multiple electric rate cases «= Minnesota and North Dakota gas rate cases in 2005 = Multiple cost recovery riders = Conservation incentive plan and MERP allow premium returns
Slide 9: Northern States Power — Minnesota: Priorities
Northern States Power — Minnesota Priorities EE = Sustain strong operating performance « Execute rate cases «= Advocate environmental and cost recovery policy initiatives = Increase capital and O&M flexibility
Slide 10: Northern States Power — Wisconsin
Northern States Power — Wisconsin De Upper Michigan Strong Regional Economy Unemployment rate — September 2005 US 4.8% NSP(W) 3.5% Wisconsin Job growth — 2006 Forecast NSP(W) 1.3% 2004 Customers sees] et ey cel annual sales growtt = Electric 240,035 2005 — 2009 Gas 97,463 Electric 1.6% Gas 1.2%
Slide 11: Northern States Power — Wisconsin: Profile
! Northern States Power — Wisconsin Profile De = Resource planning and energy supply coordinated with Northern States Power Minnesota through Interchange Agreement = Lowest retail rates in Wisconsin = Rate case every two years = Best Xcel Energy delivery system performance = Best Xcel Energy financi
Slide 12: Northern States Power — Wisconsin: Priorities
Northern States Power — Wisconsin Priorities EE = Keep it up « Execute rate cases = Advance environmental initiatives
Slide 13: Public Service Company of Colorado
Public Service Company of Colorado ane Colorado 2004 Customers Electric 1,294,849. Gas 1,209,297 Solid Regional Economy Unemployment rate — September 2005 US 4.8% PSCo 4.8% Job growth — 2006 Forecast PSCo 2.0% Xcel annual sales growth — 2005 — 2009 Electric 1.9% Gas 1.5%
Slide 14: Public Service Company of Colorado: Future Power Requirements
Public Service Company of Colorado Future Power Requirements Load & Resources MWs in thousands Load Obligation @16% Reserve SCAnwoananarnove 2006 2007 2008 2009 2010 2011 2012 2013 Owned Purchases Reserve Sharing B Comanche 3
Slide 15: Public Service Company of Colorado: Resource Plan
| Public Service Company of Colorado Resource Plan De = 2,600 MW by 2013 = Comanche coal plant project = 320 MW demand side management by 2013 = Renewable portfolio standard = 2007 solar mandate = IGCC legislation
Slide 16: Public Service Company of Colorado: Customer Relations
Public Service Company of Colorado Customer Relations De = High exposure to natural gas volatility = Quality of Service Plan reform «= Customer satisfaction trails other operating companies = Major franchise renewals « Fuel cost mitigation plan
Slide 17: Public Service Company of Colorado: Rates
| Public Service Company of Colorado Rates = 2005 gas rate case = 2006 electric rate case «= Multiple cost recovery clauses expire 12-31-06
Slide 18: Public Service Company of Colorado: Priorities
Public Service Company of Colorado Priorities = Improve customer satisfaction = Continue reliability initiatives = Prepare 2006 electric rate case = Conclude least-cost resource plan = Increase capital and O&M flexibility
Slide 19: Southwestern Public Service
Southwestern Public Service De New Mexico Strong Regional Economy Unemployment rate — September 2005 US 4.8% SPS 42% Texas Job growth — 2006 Forecast SPS 14% 2004 Customers Yeas Teal ep F cel annual sales growth — Electric 394,879 2005 — 2009 Electric 2.1% Note: Sale pending on Kansas and Oklahoma p
Slide 20: Southwestern Public Service: Future Power Requirements
Southwestern Public Service Future Power Requirements Load & Resources MWs in thousands Load Obligation @ 12% ce o=-NeORGUDHANO 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Owned (Long-Term Purchases MShort-Term Purchases
Slide 21: Southwestern Public Service: Resource Plan
a Southwestern Public Service Resource Plan De «= Long system is now short «= Two low-cost coal plants plus gas-fired steam plants = New environmental mandates = Transmission and renewable energy investment opportunities
Slide 22: Southwestern Public Service: Priorities
Southwestern Public Service Priorities EE = Gain support for resource plan and cost recovery = Prepare 2006 rate case = Improve large customer relations
Slide 23: Executing the Operating Company Plan
Executing the Operating Company Plan People LZ Strategy a | Operations Three Core Processes
Slide 24: Strategy
Strategy Customers Portfolio Regulation
Slide 25: Operations
Operations [aan Operating plans translate strategy into specific goals, actions, milestones and accountabilities | Xcel Energy l | | | NSP (M) |NSP (W) SPS PSCo
Slide 26: Executing the Operating Company Plans
Executing The Operating Company Plans ——_—_— Strategy Make building generation, purchasing power and conservation financially equivalent = Enables better decisions by considering all costs and benefits = Compensates utility shareholders for lost margins and imputed debt Execution Resource plan decis
Slide 27: Strategy: Optimize Reliability / Cost
Strategy: Optimize Reliability / Cost Balance Top Quartile Satisfaction” is Financially Prudent Cost per Customer* (Dollars) by Customer Satisfaction 2000 2001 2002 2003 First Decile Satisfaction G First Quartile Satisfaction Below Average Satisfaction * JD Power Survey ** Distribution O&M per retai
Slide 28: Capital Investment per New Customer
Capital Investment per New Customer Dollars 1,427 7 1,214 1,196 4.473 Electric Gas 62003 2004 mOctYTD'0S
Slide 29: Improving Large Customer Satisfaction
Improving Large Customer Satisfaction Percentile rank —- TQS survey results 82 73 55 s mi i £ 2003 2004 2005 * 6,100 customers surveyed served by 60 utilities
Slide 30: Xcel Energy Utilities Group
Xcel Energy Utilities Group js seam | re | SPS l | | J [ T Resource External Asset Portfolio Affairs Management ransmission Marketing
Slide 31: People — Right People in Right Jobs
People — Right People in Right Jobs Paul Bonavia President — Utilities Group NSP (W) PSCo SPs NSP (M) i President & CEO |/President & CEO |President & CEO | President & CEO GyndiLesher | Mike Swenson Pat Vincent Gary Gibson
Slide 32: Searchable text section of graphics shown above
Searchable text section of graphics shown above [L OGO] Executing The Operating Company Plans Financial Performance Regulators/ Legislators Value to Customers Environmental Stewardship Invest in Regulated Utility Business Paul Bonavia President – Utilities Group Sa fe Harbor This material includes f