Xcel Energy Inc. · NASDAQ:XEL
Xcel Energy — Non-Deal Roadshow (August 2005)
39 slides from Xcel Energy's roadshow presentation, Aug 30, 2005
Slide 1: Boston Investor Meetings
Boston Investor Meetings ugsts0)- September 1, 2006
Slide 2: Safe Harbor
Safe Harbor This material includes forward-looking) statements Uiavate sub\pouto ceria risks, uncertainties and) assumptions.) Suchifonvardoolang statements) include projected earings, cash flows, capital expendiites, and otner, Statements/and are identified in this document by the words. .anucipate
Slide 3: Strategy — Building the Core
Slide 4: Drivers to Value Creation
Drivers to Value Creation
Slide 5: Capital Expenditure Plan
Capital Expenditure Plan Prudent Have regulatory, legislative: and environmental Suppor Manageable Add\to earnings growth: Deliver stronger credit metrics, _
Slide 6: Regulatory, Legislative and Environmental Support
é Regulatory, Legislative and Environmental Support Minnesota MERP rider Comanche 3 decision|—Fonvara)evviry, and higher equity Minnesota and) Texas transmission investment legislation,
Slide 7: Capital Expenditure Forecast
Capital Expenditure Forecast Dollars in Millions, 2005; 2006 20075 2008) 008) Minnesota MERP! $ 191 $ 404 $ 197 $ 125 $ 56 Comanche 3) 39) 479) 287 298 125 Base level|capital expenditures, 994 917 1,021 929 1,085) Total $1,241 $41,500 $1,505 $1,352 $1,266 _ we
Slide 8: Capital Expenditure Forecast
Capital Expenditure Forecast 2005 «2006 2007 2008 2005) ictal: Total) $1,244, $1,500 $4,505) S1)352) Saiz) 56)864 Anticipated) Annual Growin Average Rate Base! Average 005) 006) O07) 008) 603) Annittal) $1015 billion) AN Ay 1h, 376, Zs 447%
Slide 9: Sources of Funding
Sources of Funding Growing cash from operations. Tax loss carry-forward Proceeds trom asset sales. Financing: — Dividend reinvestment program — Modest debt issuance. — No equity issuance necessary through) 2006; Uncenain whether there 1s a need for public Pp equity issuance in 2007 or 2008
Slide 10: NSP — Minnesota Rate Cases
NSP — Minnesota Rate Cases North Dakota Gas: Approved) June! B07 suiliron ithease: Minnesota Gas, Approved) July 10.4% ROE S35 Bnillion) inchedse: Minnesota Electric Tobe filed Winter 2005) 2006 test year Interim rates early 2006: Decision Summer 2006; North Dakota Electric: Tobe filed Winter 2005)
Slide 11: PSCo Rate Cases
PSCo Rate Cases Colorado Gas, Filed May 27) Requested $33.4 million 11% ROE 59.4975 Common equity, Year-end|rate base. Decision cany 2006, Colorado Electric To be filed Spring) 2006 Decisioneany 2007
Slide 12: Wisconsin Electric and Gas Rate Case
Wisconsin Electric and Gas Rate Case Requested ROE 11.9% Common equity ratio: 56.327, Electric requested: Revenue increase of $4018 million Gas requested: Revenue inctease of $7.0 million Rates expected to be in effect Janviany 2006 _ we
Slide 13: SPS Rate Case
SPS Rate Case Texas Electric Tobe filed Stinmenz0 16; Decision) 2007 New Mexico Wo be filed 2006; Electric Decision 2007
Slide 14: Potential Regulatory Income and Depreciation
Potential Regulatory Income and Depreciation” 2004 2009 Average rate base $1015 B $13 8 Regulatory equity ratio 50, 5 ey, Equity rate base $5.3B $6.5-6.76B Regulatory return on equity 167, Ao 41%) Regulatory net income: $506 Mi $650 $744 Wie Depreciation)— Cash flow SA 1) So10 Mi Potential regulator
Slide 15: Regulatory Net Income Growth Potential
Regulatory Net Income Growth) Potential) Annual: 2005 = 2008) Growth 2004, Potential: Rate’ Rate base $1058 $1s12) A Ay, Utility equity, capitalization, 50% 50-52% Oto 087) Earned return on utility rate base equity 97% iW-11\% 0102 6% Jotal potential growth, 4.419 7.8% —_—
Slide 16: Company-Owned Life Insurance (COLI)
Company-Owned Life Insurance (COLI) IRS dispute over tax deductibility of Oil) — $350) million potential exposure fonian and) interest — $65 million potential exposure for penalties) — 2005 guidance includes $40 million tax Benenit or 9 cents per share for COL), — It willlpotentially take severall y
Slide 17: 2005 EPS Guidance
é 2005 EPS Guidance Continuing Operations ~ ZO0G, Guidance: Regulated utility $1.27 -1.37 Holding Company & other (0103); Total eamings from continuing operations $1.48 = 4,28. * 2005 Guidance includes COLI tax benefits of 9 cents per share:
Slide 18: Dividend
Dividend Annual dividend increased) by 6 ceme May, z000, Current annual dividend) rate of 86icenis) Annual dividend increases consistent with long-term earnings growin) of 2,475
Slide 19: Transparent Low-Risk Strategy
Transparent Low-Risk Strategy Constructive legislative & regulatory climate Strategy delivers: — Competitive total return to shareholders — Improving credit metrics _ we
Slide 20: Appendix
Appendix
Slide 21: Northern States Power / Xcel Energy service areas
Northern States Q Xcel Ener gy” Power Company- [¥ Minnesota ¢ 4 Northern States A P Cc ro Company of Colorado Strong Regional ‘ \. Economy Unemployment rate — Southwestern February 2005 Public Service US 5.8% Xcel service area 4.7% Job growth — 2005 Forecast 4th largest US electric Xcel/service area
Slide 22: Xcel Energy Inc.
Xcel Energy Inc. fomcontnuing) 5 (Balbus in ilillions $527 2 9513) Holding Company $(43) a mo Public Southwestern Subsidiaries eae Power Service Public * Eloigne Company - Company - coe of Saree Quixx Minnesota Wisconsin elorade pany see $54 $218 $55 $13 Nonregul
Slide 23: Rate Base and Returns
Rate Base and Returns Dollars in millions, Minnesota = Electric retail Minnesota = Gas retail) North Dakota = Electric retail) North Dakota - Gas retail Colorado - Electric retail Colorado - Gas retail! Texas - Electric retail) NSP (WW) Retail/electric: NSP (WV)\- Retailigas Nontreported iba pct s n
Slide 24: Reconciliation of Estimated Regulatory Reporting from GAAP
Reconciliation of Estimated Regulatory Reporting) from GAAP Dollars an mlions: Common Equity NSP NSP PSCo SPS: ctal) 2004 GAAP common stookioider's equity (a) $2,007) S138 Se SAN Sane 2003 GAAP comimonistooktiolier's equity) 4,809) 425) 270 ete) 560) Average GAAP conimioni stocktioluiers euuity) 7,9
Slide 25: Reconciliation of Estimated Regulatory Reporting from GAAP (Continued)
Reconciliation of Estimated Regulatory Reporting) from GAAP (Continued). Dollars an mlions: Net Income) NSP(M) NSP (W) RSC6) SPS: acta!) 2004) GAAP hetincome (1)) $290) $54 $218) 225) S557 Adjustments; 25 226) Si Adjustedinet income for purposes of regulatory net income $206) $54 Sige) $55 $08) Calc
Slide 26: Capital Expenditures $6.9 Billion
Capital Expenditures $6.9 Billion 2005 — 2009
Slide 27: Capital Expenditure Forecast by Operating Company
= = Capital Expenditure Forecast by Operating Company 2005; 2006 2007) 2008) 2009; NSP-Minnesota $ 645 $ 832 $ 713 $ S571 $ 605 NSP-Wisconsin) 60) 73) vs hs 68) PSCo. 425 499 593. 997) Ags) SPS 114 90) g24) q16: “Ue Total) $1,244, $4,500) $1)505) $1,352) $1,266)
Slide 28: NSP — Minnesota Operating Company
~ % NSP — Minnesota Operating Company Capital Expenditure Forecast Dollars in millions’ 2005 2006 2007 ZONE 2009) distal) MERP $191 $404 $197 S125 $56 S$ 973 Excluding MERP A54 A28 516 446 549) 27393) Total) $645 $832 $743| Servi S605 $3/366: MERP $ 973) Transmission) 459) Nuclear fuel) 336; Balance
Slide 29: PSCo Operating Company
PSCo Operating Company Capital Expenditure Forecast Dollars in millions’ 2005 2006 2007 ZONE 2009) austal| Comanche 3) $59 S179 $287 $288) Veda S848) Excl. Comanche 3 366: 320, 306 _ 293 Shs) ay6a8) Total) $425 $499 $583/ $591 $488 $2/596: Comanche 3) 9 948) Transmission) 280) Balance of electric 80
Slide 30: SPS Operating Company
SPS Operating Company Capital Expenditure Forecast 2005 «2006 ©2007 2008) 2009) total) Total) $444 $90/ $124 $106) S10 $u46; Transmission: $140) Balance of electric AG6) Total electric $546) i
Slide 31: NSP — Wisconsin Operating Company
= NSP — Wisconsin Operating Company Capital Expenditure Forecast Dollars in millions’ 2005 2006 200% 2008) 2009) iistall Total $60 $79 $75 $74 S68 $356 Transmission: $ 73) Balance of electric Z00) Gas 45 Common) 38) Total) $356; _ we
Slide 32: Minnesota MERP — Potential Earnings
Minnesota MERP — Potential Earnings Dollars in millions’ Capital expenditures: Current year Cumulative: Equity ratio Return on equity’ Equity return Po 10.86% $404 $642 2007 = 2008, $197 SAz5: 9839 9964) ABIS%5) A857 AB 37%. 108675 10.8675) 10/8675 $24 340 348
Slide 33: Comanche — Potential Earnings
Comanche 3 — Potential Earnings Dollars in Millions: 005) 006; HOV 2008; 008) Capital expenditures: Current year i) S179) $287, S208, S125) Cumulative $62 $241 $028) $826) Soon. Equity ratio, 5675 575 S675 S675 iy Return on equity 10:75% 10.7595 10.7595 107595 1017595 Equity return $2 $9) $23) $44)
Slide 34: Energy Supply Mix — 2004
Energy Supply Mix — 2004 Owned and Purchased Fuel Mix Nuclear, 12% Generation, 68% . Coal” 54% GW SUIT, IOWnEToiny Wester Coal.
Slide 35: Coal Supply Contracted
Coal Supply Contracted Coal) Coal) Tfansportation, 100% Annual consumption: 32 Million tons of low-sulfur, low-mercury western coal
Slide 36: Electric Fuel and Purchased Energy Cost Recovery Mechanisms
Electric Fuel and Purchased Energy Cost Recovery Mechanisms Minnesotar, Colorado; Monthly recovery of prospective costs: Recovery of costs with sharing) on deviations Up to +$11.25 million) from benchmark: File for semi-anntall adjustments — required if+ 4% annually: Biennialrate case —tile for inte
Slide 37: Retail Electric Rate Comparison
Retail Electric Rate * Comparison ne Cents per Kvn) 7 EE! typical bills surmer 2007) 16 14 12 10) 6.07 6.06 4.87
Slide 38: Senior Debt Ratings
Senior Debt Ratings Moody's SEP Secured Unsecured! Sectred |Uneectred) Holding Cor ~ Baal = BEES NSPM: A2 A3 Ae BEB= NSPW A2 AZ A- BBB) PSCo AZ Baal Ae BBB- SPS = Baal = BBB Stable Stable:
Slide 39: Searchable text section of graphics shown above
Searchable text section of graphics shown above [LO GO] [GRAPHIC] Boston Investor Meetings August 30 – September 1, 2005 Sa fe Harbor This material includes forward-looking statements that are subject to certain risks, uncertainties and assumptions. Such forward-looking statements include projected