Xcel Energy Inc. · NASDAQ:XEL
Xcel Energy — Edison Electric Institute Financial Conference 2004
28 slides from Xcel Energy's conference presentation, Oct 22, 2004
Slide 1: Edison Electric Institute Financial Conference
Edison Electric Institute Financial Conference
Slide 2: Safe Harbor
Safe Harbor on | Form ane K for yea 2003,
Slide 3: Dick Kelly, President and Chief Operating Officer
Dick Kelly )\ | ise President and re \\ j Chief Operating Officer iw Ih i SS 2 XJ i
Slide 4: Xcel Energy Investment Merits
Xcel Energy Investment Merits _ Low risk, integrated, regulated utility _ Four value drivers Total return 7 - 9% _ Dividend yield 5% _ Earnings growth 2 - 4%
Slide 5: Strategy
Strategy Invest in utility assets to meet sales growth and earn our authorized return
Slide 6: 4th largest electric and gas utility
4t largest fia electric Q Xcel Energy wees and gas ul Customers: Northern States Power Minnesota J} Unemployment Rate* Public Service a i Company Northern States Power of Colorado Wisconsin 54% 48% SPS NSPW NSPM ~ PSCo US Southwestern * August 2004 Bureau of Labor Statistics Bobo ice rr a
Slide 7: 2005 Key Earnings Assumptions
2005 Key Earnings Assumptions _ Weather adjusted sales growth: — Retail Electric 20-24% — Gas 1.0-1.3% _ Successful Minnesota gas and FERC rate cases _ Capacity costs, net of recovery, projected to increase $15 million over 2004 _ Short-term wholesale and trading margins decline approximately $20 —
Slide 8: Short-term Wholesale Margins
Short-term Wholesale Margins Dollars in Millions $244 00 98 sa EE _ | i | 2000 2001 2002 2003 2004 9 Months
Slide 9: Key Earnings Assumptions (continued)
5 Key _ Operating and maintenance expenses increase 2-—3% over projected 2004 levels _ Depreciation increases 7 — 8% over projected 2004 _ Interest increases $10 — 15 million over 2004 _ AFUDC equity expected to be relatively flat with 2004 ~ COLI interest deduction provides 8 cents. per share in 20
Slide 10: Earnings Guidance Range
Earnings Guidance Range ee ———_—_ Dollars per Share 2004 2005 Utility Operations $1.22 — $1.30 $1.27 — $1.37 Holding Company (0.08) (0.11) Nonregulated Subsidiaries 0.01 — 0.03 0.02 Xcel Energy Continuing i Operations $1.15 - $1.25 $1.18 — $1.28 Discontinued Operations — Seren & Other (0.29) Xcel En
Slide 11: Service Territory Growth
Service Territory Growth ——— Job Growth Sales Growth Jan - Aug Fest 2004 — 2009 2004 vs 2003 §=2005 Electric Gas NSPM 0.8% 2.7% 1.8% 1.2% NSPW 1.8 0.7 1.6 Ai PSCo 0.2 2.9 2.4 0.8 SPS 1.0 0.7 15 N/A Xcel Energy 0.6% 24% 1.9% 1.0%
Slide 12: Investment Objectives
_nceadl rte ctives _ $950 million annual core investment _ Minnesota Metro Emission Reduction Project (MERP) _ Proposed Colorado coal plant _ NSP-Minnesota combustion turbines _ Monticello and Prairie Island nuclear relicensing _ Minnesota Resource Plan Filing November 1 - “ - “a
Slide 13: Increase Investment in Core Business
Increase Investment in Core Business — Capital Expenditures in Millions 2004 2005 2006 2007 2008 2009 Core Investment $1,005 $1,009 $ 909 $ 925 $ 925 $ 925 Minnesota MERP 43 139 295 343 477 34 Colorado Coal Plant 3 33 186 285 293 129 NSPM CTs 79 AT PI Steam Generators 74 8 PI Vessel Heads 16 14 10 T
Slide 14: Minnesota MERP Potential Earnings
Minnesota MERP Potential Earnings = Dollars in Millions 2004 «62005 2006 2007 2008 2009 Expenditures: Minnesota MERP $43 $139 $295 $343. $177 $ 34 Cumulative $43 $182 $477 $820 $997 $1,031 Equity Ratio 48.5% 48.5% 48.5% 48.5% 48.5% 48.5% ROE 10.86% 10.86% 10.86% 10.86% 10.86% 10.86% Equity Return *
Slide 15: Proposed Colorado Coal Plant Potential Earnings
Proposed Colorado Coal Plant Potential Earnings >_<. Dollars in Millions 2004 «2005 2006 2007 2008 2009 Expenditures: Colorado Coal Plant $3 $33 $186 $285 $293 $129 Cumulative $3 $36 $222 $507 $800 $929 Equity Ratio 100% 100% 56% 56% 56% ROE 10.75% 10.75% 10.75% 10.75% 10.75% Equity Return * $2 $13
Slide 16: Increase Equity in Operating Companies
Increase Equity in Operating Companies — Percent June 30, 2004 Target Equity Equity Company Ratio Ratio NSPM 49 49-51 NSPW 57 54-56 PSCo 48 55-56 SPS 48 48-50 Xcel Consolidated 44 44-46 Xcel Energy consolidated equity of $5.2 billion at September 30, 2004 eee en eee aa — - >
Slide 17: Earn Authorized Return
Earn Authorized Return a Earned 2003 Regulatory ROE 2003 Electric Gas Ratebase Colorado 9.0% 12.2%* $3.9 Billion Minnesota 9.3% 9.0% $3.3 Billion * Effective July 1, 2003 Public Service of Colorado implemented a $33 million reduction in gas base rates ——_———— — 2 —_ - -
Slide 18: Rate case actions and approvals
BERG der apptoved _ Rate increase re at FERC with rates effective mid-December, : approximately $5 million = Gas wie Termes raneststl in Minnesota with rates effective December 1, 2004, approximately $10 million _ Proposed Colorado Coal Plant Rider with rates effective 2005 _ File required Wisconsin
Slide 19: Financing Strategy
Financing Strategy Fund Investment Strategy Internal cash generation NRG tax benefit Asset sales Regulatory recovery a a a _ Dividend Reinvestment Program ‘ _ Modest debt issuances Ll Equity ema
Slide 20: Dividend Objectives
Dividend Objectives _ Annual dividend rate of 83 cents _ Review dividend — Spring 2005 _ Annual dividend increases consistent with long-term earnings growth
Slide 21: Total Return
( Xcel Energy” Total Return
Slide 22: Appendix
Slide 23: Retail Competitive Rates
Retail Competitive Rates Electric Rate* Comparison ——— Cents per Kwh *EEI typical bills — Winter 2003 eo oO 40 wt ow? OT” ht ot a we ae
Slide 24: Electric Fuel and Purchased Energy Cost Recovery Mechanisms
Electric Fuel and Purchased Energy Cost Recovery Mechanisms _ Minnesota: _ Colorado: _ Texas: _ Wisconsin: _ New Mexico: Monthly recovery of prospective costs Recovery of costs with sharing of deviations up to + $11.25 million from benchmark File for semi-annual adjustments — required if +4% annuall
Slide 25: 2004 Power Supply
- 2004 Power S Includes Pu Northern States Power Hydro 16% Public Service of Colorado. Gas) 48%
Slide 26: Capital Expenditures
Capital Expenditures 4 Base Level: $900 to $950 Million Upgrades 11% Replacement / Refurbishment 31% Customer Additions 35%
Slide 27: Long-Term Debt Maturities
Long-Term Debt Maturities Dollars in Millions CONSP-MN @NSP-WI PSCo @sPs O Other Subs MHold Co. 2004 2005 2006 2007 2008
Slide 28: Searchable text section of graphics
Searchable text section of graphics shown above [ LOG O] [GRAPHIC] [GRAPHIC] Edison Electric Institute Financial Conference October 26, 2004 [GRAPHIC] Saf e Harbor This material includes forward-looking statements that are subject to certain risks, uncertainties and assumptions. Such forward-looking
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