Xcel Energy Inc. · NASDAQ:XEL
Xcel Energy — Investor Presentation (March 2024)
90 slides from Xcel Energy's investor presentation, March 2024
Slide 1: Steel for Fuel 2.0 – March Investor Meetings
STEEL FOR FUEL 2.0 March Investor Meetings March 2024 © 2024 Xcel Energy 1
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 2024 EPS guidance, long-term EPS
Slide 3: Attractive Investment Thesis
Attractive Investment Thesis Pure-Play, Regulated Utility that Consistently Delivers Robust Capital Investment Opportunities Low Customer Bills Sustainably Leading the Clean Energy Transition 3
Slide 4: Attractive Investment Thesis
Attractive Investment Thesis Pure-Play, Regulated Utility that Consistently Delivers Robust Capital Investment Opportunities Low Customer Bills Sustainably Leading the Clean Energy Transition 4
Slide 5: Fully Regulated and Vertically Integrated Utility
Fully Regulated and Vertically Integrated Utility Northern States Power Minnesota (NSPM) Northern States Power Wisconsin (NSPW) Four Minnesota, South Dakota, North Dakota Wisconsin, Michigan Operating Companies • 2023E Rate Base: $15.6 billion • 2023E Rate Base: $2.4 billion • 2023 Ongoing EPS: $1.2
Slide 6: Strategy
Strategy VISION PRIORITIES We will be the preferred CO2 Lead the Clean Energy Transition and trusted provider of the • Electricity: 80% carbon reduction by 2030, energy our customers need 100% carbon-free by 2050 • Natural gas: 25% GHG reduction by 2030, net-zero by 2050 MISSION We provide our custo
Slide 7: Target Returns
Target Returns 5-7% EPS Growth ~8-10% Total Shareholder Return ~4.2% Dividend Yield 5-7% CAGR | 50-60% Payout Ratio 7
Slide 8: Proven Track Record
Proven Track Record Performance Within Guidance Ongoing EPS $3.50- 2023 $3.60 2022 2021 2020 2019 $1.15 2018 2017 2016 2005 2007 2009 2011 2013 2015 2017 2019 2021 2023 2024E 2015 Guidance Range 2014 2013 2012 Dividend 2011 2010 Actual 2009 Result 2008 2007 2006 2005 2005 2007 2009 2011 2013 2015 20
Slide 9: Attractive Investment Thesis
Attractive Investment Thesis Pure-Play, Regulated Utility that Consistently Delivers Robust Capital Investment Opportunities Low Customer Bills Sustainably Leading the Clean Energy Transition 9
Slide 10: Updated Base Capital Forecast 2024 – 2028
Updated Base Capital Forecast 2024 – 2028 Investment by Function Investment by Driver Carbon-Free Other Electric Generation 8% Distribution SPS 16% NSPM 27% 15% Other 37% Natural Gas 20% LDC 8% T&D Other$22.5 25% ~$39 ~$39 Resiliency Electric Billion Generation Billion Billion 27% 13% Electric Renew
Slide 11: Additional Capital – Steel for Fuel 2.0
Additional Capital – Steel for Fuel 2.0 Additional Capital 2024 – 2028 $44,000 $ Millions $740 $1,640 $2,620 NSPM 1,200 MW $39,000 Recommended Wind & Other RFPs Solar + Storage Future PSCo RFPs Base Capital Plan PSCo Resource Plan SPS Resource Plan NSP RFPs Additional Capital Plan Estimates are subj
Slide 12: Additional Capital – Steel for Fuel 2.0
Additional Capital – Steel for Fuel 2.0 Capital Expenditures 2024 – 2028 $ Billions $1.2 $1.4 $1.3 $1.1 $9.3 $7.4 $7.9 $7.6 $6.8 2024 2025 2026 2027 2028 Base Incremental Estimates are subject to change, RFP processes and regulatory approvals Additional capital investment above the Base Plan would b
Slide 13: Strong Rate Base Growth
Strong Rate Base Growth Xcel Energy Consolidated OpCo Base CAGRs 2023 – 2028 Base 2023 - 2028 CAGR: ~9.0% Additional 2023 - 2028 CAGR: ~10.6% NSPM PSCo $4.6 ~7% ~12% $3.7 $ Billions XEL $2.5 ~9% $1.2 NSPW SPS $61.8 $64.8 ~12% ~4% $57.7 $53.1 $46.5 $41.9 OpCo CAGRs exclude potential 2023 2024 2025 20
Slide 14: Investment Drives Decarbonization
Investment Drives Decarbonization Shifting Renewable and Zero Carbon Generation Mix 1% 9% 19% 19% 12% 41% 56% 10% 23% 30% 70% 10% 2005 2023 2030E Renewables Coal Natural Gas Nuclear 14
Slide 15: Current RFP Update
Current RFP Update Current RFPs Upcoming RFPs • CPUC approval of ~6,100 MW portfolio • Just transition filing in 2024, which could include • Owned = 3,300 MW (54%; ~$4.8 billion) remaining generation from preferred portfolio PSCo • Transmission (~$2.6 billion) will be reviewed • Additional resource
Slide 16: Transmission Investment – Resiliency and Reliability
Transmission Investment – Resiliency and Reliability PSCo Transmission • Base 2024-2028 capital = $5.4 billion • ~$1.7 billion Power Pathway enables 5.5 GW renewables via 560 miles of 345 kV lines • ~$2.6 billion required to enable approved portfolio NSP Transmission • Base 2024-2028 capital = $4.4
Slide 17: Emerging Technologies
Emerging Technologies • Enable 1 in 5 vehicles by 2030 Electric Vehicles • Residential & commercial chargers, programs and rebates ~$3 billion* • T&D upgrades / investments potential by 2033 • Public charging and equity Hydrogen Production • • Heartland Hydrogen Hub < 5% blend in natural gas system
Slide 18: Attractive Investment Thesis
Attractive Investment Thesis Pure-Play, Regulated Utility that Consistently Delivers Robust Capital Investment Opportunities Low Customer Bills Sustainably Leading the Clean Energy Transition 18
Slide 19: Keep Customer Bills Low
Keep Customer Bills Low Average Xcel Energy Residential Bill to 2014-2023 Residential Electric CAGR = ~1.8% National Average* 2014-2023 Natural Gas CAGR = ~1.1% Electric Natural Gas $98 $98 $89 $83 $84 $84 $80 $81 $81 $80 $81 Electric $68 $62 $54 -14% $51 $48 $42 $48 $45 $44 Natural Gas 2014 2015 20
Slide 20: Committed to Affordability
Committed to Affordability Average Xcel Energy Residential Electric Bill to National Average* Colorado Michigan North Dakota Minnesota South Dakota Wisconsin New Mexico Texas -6% -12% -16% -19% -26% -28% -32% -38% * Based on 2019-2023 EIA data 20
Slide 21: Geographic Advantage for Renewables
Geographic Advantage for Renewables High-Capacity Factors Enable Greater Efficiency and Lower Costs Wind Speed Solar Intensity Speed (m/s) KWh/M²/Day 6.8 >10.5 <4.0 Xcel Energy Territory 4.0 Xcel Energy Territory National Renewable Energy Laboratory with modification 21
Slide 22: Steel for Fuel Results
Steel for Fuel Results Annual Customer Savings from Wind Energy $1,100 $ Millions $925 $870 $400 $250 $150 $150 2017 2018 2019 2020 2021 2022 2023 Includes avoided fuel costs and PTCs Reduction in 2023 vs. 2022 driven by decline in natural gas pricing 22
Slide 23: One Xcel Energy Way – Lean Transformation
One Xcel Energy Way – Lean Transformation O&M* Change (2015-2022) Example One Xcel Energy Way Initiatives 60% Customer Satisfaction Optimizing residential customer satisfaction as measured by J.D. Power 40% Utility Operations Lowering risk and waste, improving quality 20% and work plan execution XEL
Slide 24: Attractive Investment Thesis
Attractive Investment Thesis Pure-Play, Regulated Utility that Consistently Delivers Robust Capital Investment Opportunities Low Customer Bills Sustainably Leading the Clean Energy Transition 24
Slide 25: Comprehensive Sustainability Goals
Comprehensive Sustainability Goals < RATE OF SOCIAL WORKFORCE INFLATION IMPACT reflects our Electricity* Natural Gas Service** Transportation*** customer bill increases communities of coal closures (from 2005 levels) (from 2020 levels) (from 2020 levels) mitigation 80% 25% 1 in 5 2030 lower lower ve
Slide 26: Recognized ESG Excellence
Recognized ESG Excellence ETHISPHERE Recognized as one of the 2023 World’s Most Ethical Companies® Amongst highest ESG ratings for US Energy Providers 2023 Utility Transformation Leaderboard 7th Consecutive Year FORTUNE 2023 World’s Most Top-third among electric Admired Companies utilities for ESG r
Slide 27: Attractive Investment Thesis
Attractive Investment Thesis Pure-Play, Regulated Utility that Consistently Delivers Robust Capital Investment Opportunities Low Customer Bills Sustainably Leading the Clean Energy Transition 27
Slide 28: Appendix
APPENDIX 28
Slide 29: Steel for Fuel Advantage
STEEL FOR FUEL ADVANTAGE 29
Slide 30: Steel for Fuel – Attractive Economics for Renewables
Steel for Fuel – Attractive Economics for Renewables Replacing Coal with Lower-Cost Wind Variable cost of coal $25-26/ Less carbon, fewer coal RETIRE COAL generation MWh assets, lower labor costs Levelized cost of wind ~$20/ Fuel savings offset new generation MWh ADD WIND investment; bills stay low
Slide 31: Committed to Affordability
Committed to Affordability Declining Fuel Component of Bill = Customer Savings 25% 35% 34% 46% Fuel-related Base 75% 65% 66% 54% 2010 2023 2025E 2030E 31
Slide 32: Committed to Affordability
Committed to Affordability Average Xcel Energy Residential Natural Gas Bill to National Average* Colorado North Dakota Minnesota Michigan Wisconsin** 2% 0% -2% -18% -19% * Based on 2018-2022 EIA data ** Includes recovery of Ashland manufactured gas plant remediation costs 32
Slide 33: ESG Leadership
ESG LEADERSHIP 33
Slide 34: Sustainability Goals – Tangible Progress
Sustainability Goals – Tangible Progress GOAL PROGRESS CO2 80% lower carbon emissions by 2030, 54% reduction 2005 - 2023 100% carbon-free electricity by 2050* 25% lower net GHG emissions by 2030, Filed first Clean Heat Plan in Colorado in 2023 net-zero by 2050** 70% less water consumption by 2030* 2
Slide 35: Carbon Goals Aligned With Paris Accord: Electric Utility
Carbon Goals Aligned With Paris Accord: Electric Utility Goals Align with Science-Based Scenarios Likely to Achieve 1.5° C 54% 80% 100% Carbon Reduction Reduction Goal Carbon-Free 0% -20% Validated by a lead author for -40% the Intergovernmental Panel on Climate Change -60% Range of scenarios -80% X
Slide 36: Carbon Goals Aligned With Paris Accord: Natural Gas Utility
Carbon Goals Aligned With Paris Accord: Natural Gas Utility Goals Align with Science-Based Scenarios Likely to Achieve 1.5° C 0% In scenarios that limit warming to 1.5° C, Carbon Emissions Reduction greenhouse gas emissions from natural gas use in buildings (not throughput) are reduced -20% 0% to 30
Slide 37: Science-Based Targets
Science-Based Targets Our Approach SBTi Validation • Independent analysis conducted by an • We have not pursued to date given: IPCC lead author − SBTi relies on a single scenario, which we view • Based on multiple IPCC scenarios that meet as less robust than our analysis global temperature targets −
Slide 38: Out of Coal by 2030
Out of Coal by 2030 Coal Retirement Schedule ~8,200 MW Retired Year Plant Capacity 2006 MN Valley 3 47 MW Planned 2007 High Bridge 3-6 353 MW ~5,400 MW 2008 Riverside 6-8 371 MW Year Plant Capacity 2010 Cameo 1-2 73 MW 2024 Harrington* 1,018 MW 2011 Cherokee 2 106 MW 2025 Comanche 2 330 MW 2012 Cher
Slide 39: Emission Reductions Beyond Carbon
Emission Reductions Beyond Carbon SULFUR NITROGEN COAL WATER MERCURY DIOXIDE OXIDES ASH CONSUMPTION 2005 • • • • • • • • 2023 83% 85% 93% 58% 24% Results from owned generation except for water, which includes owned and purchased power 39
Slide 40: Net Zero Natural Gas Service
Net Zero Natural Gas Service 25% Net GHG Emission Reduction by 2030, Net Zero by 2050 INFLUENCE OPERATE THE CLEANEST OFFER CUSTOMER SUPPLIERS SYSTEM POSSIBLE OPTIONS XCEL ENERGY Pursue certified low/no Incorporate clean fuels to achieve Promote conservation, net emissions supply net-zero methane emi
Slide 41: Clean Heat Plan – Colorado
Clean Heat Plan – Colorado Components of Clean Heat Plan Demand Side Certified Natural Electrification Clean Fuels Management Gas • Original plan filed August 2023. Amended plan filed November 2023. • Commission decision anticipated mid-2024 • Preferred portfolio achieves 25% LDC GHG emissions reduc
Slide 42: Natural Gas Innovation Act – Minnesota
Natural Gas Innovation Act – Minnesota • Filed $58 million, 5-year plan (2025-2029) in December 2023 • Proposal could remove or avoid 54,000 metric tons of carbon dioxide • Customer bill impact estimate at $1.38 / month • Project portfolio includes: − RNG generated from livestock waste and materials
Slide 43: Recent DOE Grants
Recent DOE Grants • Estimated $925 million awarded to Xcel Energy (~50% total capital) and partners • Xcel Energy would use renewables and nuclear energy to produce hydrogen and Heartland Hydrogen Hub blend into power, natural gas and industrial applications • Awarded $70 million to support our two
Slide 44: Heartland Hydrogen Hub
Heartland Hydrogen Hub 2024 2025 2026 2027 2028 2029 2030+ DOE Negotiations & PUC Approvals Phase 1 Phase 2 Phase 3 Phase 4 Develop, Install, Detailed Ramp Up & Permit, Integrate, Planning Operate Finance Construct • Utilizes carbon-free wind, solar & nuclear generation to produce hydrogen in the Up
Slide 45: Electric Vehicle Vision 2030
Electric Vehicle Vision 2030 5 million CO2 tons avoided annually 80% lower vehicle emissions when charging with Xcel Energy $1 billion annual customer savings ~$1/gallon and lower using off-peak energy; rebates drive adoption 1 in 5 EVs Enabled $2 billion investment Service connections, charging inf
Slide 46: Diverse and Engaged Board
Diverse and Engaged Board Mandatory retirement Lead independent age and tenure limit director elected annually Independent Board and committee 31% Female committee chairs performance evaluations 15% Diverse 12 Independent No supermajority Proxy access adopted 1 Executive approval provisions ~6 Years
Slide 47: Workforce Representation
Workforce Representation BOARD 31% female 15% diverse CEO DIRECT REPORTS MANAGEMENT 30% female 10% diverse 26% female 13% diverse WORKFORCE NEW HIRES INTERNS 23% female 19% diverse 35% female 29% diverse 33% female 14% diverse Figures as of YE 2023 47
Slide 48: ESG Embedded in Compensation
ESG Embedded in Compensation Long-Term Incentive Tied to Environment Annual Incentive Tied to ESG Issues XEL XEL XEL CARBON REDUCTION 30% 30% Peer 1 Peer 1 20% Xcel Energy has Peer 2 tied environmental Peer 3 Peer 2 20% goals to NEO pay Peer 4 since 2005 Peer 3 14% Peer 5 Peer 6 Peer 4 13% Peer 7 Pe
Slide 49: DEI Progress Tied to Compensation
DEI Progress Tied to Compensation Focus, Commitment and Accountability EXECUTIVE INCLUSION INTERVIEW PANELS SPONSORSHIP INDEX Diversity in background, Pairing female and ethnically Listening to employees, race, ethnicity, gender diverse employees with encouraging feedback and and perspectives senior
Slide 50: Voluntary Disclosures
Voluntary Disclosures FRAMEWORKS & STANDARDS Sustainable Finance Alignment Alignment Alignment Alignment Founding Member Member Principles Alignment REPORTS & DISCLOSURES Sustainability Carbon TCFD EEI/AGA Natural Gas Political EEO-1 Financing Financing Report Scenarios Response Template Vision Cont
Slide 51: Financial Supplement
FINANCIAL SUPPLEMENT 51
Slide 52: Strong Balance Sheet and Credit Metrics
Strong Balance Sheet and Credit Metrics Plan 2024 2025 2026 2027 2028 FFO/Debt 17% 17% 17% 17% 17% Debt/EBITDA 5.3x 5.3x 5.3x 5.3x 5.2x Equity Ratio 41% 41% 41% 40% 41% Hold Co Debt/Total Debt 24% 22% 23% 23% 23% Credit Ratings Moody’s S&P Fitch Xcel Energy Unsecured Baa1 BBB BBB+ NSPM Secured Aa3 A
Slide 53: Financing Plan 2024 – 2028
Financing Plan 2024 – 2028* $3,500 $500 $ Millions $13,000 $3,780 $3,780 $39,000 $22,000 CFO** Maturing Refinanced Incremental Equity Equity Base Plan LT Debt LT Debt Debt (Other) (DRIP) * Financing plans reflect tax credit transferability and are subject to change ** Cash from operations is net of
Slide 54: 2024 Debt Financing Plan
2024 Debt Financing Plan $ Millions Issuer Security Amount Status Tenor Coupon Hold Co Unsecured Bonds $800 Complete 10-Yr 5.50% NSPM First Mortgage Bonds $700 Complete 30-Yr 5.40% NSPW First Mortgage Bonds $400 Q2 N/A N/A PSCo First Mortgage Bonds $1,200 Q2 N/A N/A SPS First Mortgage Bonds $550 Q2
Slide 55: Debt Maturities
Debt Maturities $ Millions $2,000 $1,600 $1,200 $800 $400 $0 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 NSPM NSPW PSCo SPS Hold Co 55
Slide 56: Reconciliation – Ongoing EPS to GAAP EPS
Reconciliation – Ongoing EPS to GAAP EPS 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Ongoing EPS $1.95 $2.03 $2.09 $2.21 $2.30 $2.47 $2.64 $2.79 $2.96 $3.17 $3.35 SPS FERC Order (0.04) - - - - - - - - - - LossonMonticello LCM/EPU Project - - (0.16) - - - - - - - - Impact of Tax Cuts & Job
Slide 57: Diverse Asset Base
Diverse Asset Base Other Electric Other Electric 10% Distribution 8% Distribution 24% 26% Natural Natural Coal Rate Gas LDC Gas LDC 11% 13% $42 Base Declines $65 Electric Billion Billion Transmission from 5% to 1% Generation Generation 24% 8% 7% Coal Nuclear Electric Coal 1% 3% Transmission 5% 30% N
Slide 58: Base Capital Expenditures by Function
Base Capital Expenditures by Function $ Millions 2024 2025 2026 2027 2028 Total Electric Transmission $1,710 $2,020 $2,450 $2,850 $2,470 $11,500 Electric Distribution $1,770 $1,960 $2,200 $2,200 $2,470 $10,600 Renewables $1,500 $2,910 $940 $240 $20 $5,610 Electric Generation $940 $1,290 $1,050 $1,06
Slide 59: Base Capital Expenditures by Company
Base Capital Expenditures by Company $ Millions 2024 2025 2026 2027 2028 Total NSPM $2,660 $2,970 $2,380 $2,500 $2,540 $13,050 NSPW $570 $600 $570 $600 $650 $2,990 PSCo $3,300 $5,230 $4,320 $3,620 $2,730 $19,200 SPS $910 $780 $660 $870 $830 $4,050 Other* ($20) ($300) $10 $10 $10 ($290) Total $7,420
Slide 60: Regulatory & RFP Calendar
Regulatory & RFP Calendar Rate Cases 2024 Resource Planning and RFPs 1Q TX Electric rate case decision and implementation of rates NSP Additional RFP – 2027-2030 needs 1,200 MW NSP RFP filed (wind) 2Q CO Clean Heat Plan decision 648 MW SPS RFP decision SPS RFP issued – 2028-2030 needs* NSPM / NSPW 8
Slide 61: Regulatory Framework
Regulatory Framework Rate Base Covered by Rate Base Recovered Under Cap Ex Eligible for Retail Electric Sales Multi-year Plans Forward Test Year Recovery by Rider Covered by Decoupling Formula Rates 5% MN Decoupled Non- FTY Rider NSP 31% MYP 43% Recovery MYP 28% ~35% 35% HTY 11% Traditional Rate Cas
Slide 62: Regulatory Framework by Company
Regulatory Framework by Company NSPM NSPW PSCo SPS Multi-year Rate Plans ✓ ✓ Allowed Forward Test Year ✓ MN & ND ✓ Allowed ✓ NM Interim Rates ✓ Allowed Fuel Recovery Mechanism ✓ ✓ ✓ ✓ Capacity Recovery Mechanism ✓ ✓ Renewable Rider ✓ MN & ND ✓ ✓ NM Transmission Rider ✓ MN & ND ✓ ✓ TX Distribution or
Slide 63: 2022 Rate Base and ROEs
2022 Rate Base and ROEs YE 2022 YE 2022 YE 2022 OpCo Jurisdiction Rate Base Authorized W/N Earned Regulatory Status ($ millions) ROE (%) ROE (%) MN Electric 11,633 9.06 9.29 2022-2024 MYP MPUC decision June 2023 MN Natural Gas 1,103 10.09 6.18 2024 FTY filed, verbal decision expected by year-end 202
Slide 64: ROE Results – Ongoing Earnings
ROE Results – Ongoing Earnings Ongoing ROE* 2023E Rate Base Twelve Months Ended 12/31/2023 SPS 10.67% 10.79% 17% 9.11% 9.98% NSPM 8.79% 7.77% 37% ~$42 PSCo Billion 40% NSPM NSPW PSCo SPS Total Xcel Energy NSPW OpCo 6% * Ongoing ROEs exclude impacts of Comanche Unit 3 litigation and workforce reducti
Slide 65: Tax Credit Transferability
Tax Credit Transferability • Before tax credit transferability, a regulated utility which generated more tax credits than it could utilize had negative cash flow. For example, a utility generates $100 million in tax credits: − The utility flows tax credits of $100 million to customers − The utility
Slide 66: Company Profiles
COMPANY PROFILES 66
Slide 67: NSPM Overview
NSPM Overview Electric – Retail Natural Gas – Retail 2023 Financials Ongoing GAAP 1.5 million customers 0.6 million customers Net Income $730 million $707 million 33 million MWh 83 million MMBtu Assets $25.0 billion $25.0 billion ROE 9.11% 8.82% Equity Ratio 52.3% 52.3% Credit Ratings (Secured) Mood
Slide 68: NSPM Base Capital Expenditures by Function
NSPM Base Capital Expenditures by Function $ Millions 2024 2025 2026 2027 2028 Total Electric Distribution $590 $580 $650 $700 $840 $3,360 Electric Transmission $340 $450 $690 $830 $880 $3,190 Electric Generation $480 $730 $600 $590 $430 $2,830 Other $390 $340 $280 $250 $270 $1,530 Renewables $640 $
Slide 69: NSPM Recovery Mechanisms
NSPM Recovery Mechanisms Minnesota North Dakota and South Dakota • Forward test year with interim rates • Forward test year with interim rates (ND) • Transmission rider • Historic test year (SD) • Renewable energy rider • Transmission rider (ND & SD) • Natural gas infrastructure rider • Renewable en
Slide 70: NSPM Minnesota Natural Gas Rate Case
NSPM Minnesota Natural Gas Rate Case Proceeding No. 23-413 • In November 2023, NSPM filed a natural gas rate case requesting: − Base rate increase of ~$59 million − ROE of 10.2%, equity ratio of 52.5% and 2024 forward test year • MPUC approved interim rates of $51 million, subject to refund, effecti
Slide 71: NSPM North Dakota Natural Gas Rate Case
NSPM North Dakota Natural Gas Rate Case Proceeding No. 23-367 • In December 2023, NSPM filed a natural gas rate case requesting: − Base rate increase of ~$8 million − ROE of 10.2%, equity ratio of 52.5% and 2024 forward test year − Rate base of $168 million • NDPSC approved interim rates of ~$8 mill
Slide 72: NSPW Overview
NSPW Overview Electric – Retail Natural Gas – Retail 2023 Financials Ongoing GAAP ~300,000 customers ~100,000 customers Net Income $140 million $136 million 7 million MWh 15 million MMBtu Assets $3.7 billion $3.7 billion ROE 10.67% 10.38% Equity Ratio 51.8% 51.8% Credit Ratings (Secured) Moody’s Aa3
Slide 73: NSPW Base Capital Expenditures by Function
NSPW Base Capital Expenditures by Function $ Millions 2024 2025 2026 2027 2028 Total Electric Transmission $140 $150 $250 $290 $330 $1,160 Electric Distribution $170 $170 $170 $160 $180 $850 Electric Generation $140 $160 $40 $50 $50 $440 Other $60 $70 $70 $60 $50 $310 Natural Gas $60 $50 $40 $40 $40
Slide 74: NSPW Recovery Mechanisms
NSPW Recovery Mechanisms Wisconsin and Michigan • Forward test year (WI & MI) • Biennial rate case (WI) • Annual electric fuel plan with reconciliation (WI) • Purchased natural gas adjustment (WI) • Natural gas cost recovery mechanism (MI) • Power supply cost recovery (MI) 74
Slide 75: PSCo Overview
PSCo Overview Electric – Retail Natural Gas – Retail 2023 Financials Ongoing GAAP 1.6 million customer 1.5 million customers Net Income $737 million $695 million 28 million MWh 149 million MMBtu Assets $24.6 billion $24.6 billion ROE 7.77% 7.32% Equity Ratio 55.6% 55.6% Credit Ratings (Secured) Mood
Slide 76: PSCo Base Capital Expenditures by Function
PSCo Base Capital Expenditures by Function $ Millions 2024 2025 2026 2027 2028 Total Electric Transmission $820 $1,110 $1,260 $1,320 $930 $5,440 Electric Distribution $760 $910 $1,080 $1,000 $1,090 $4,840 Natural Gas $460 $450 $450 $450 $410 $2,220 Other $220 $210 $220 $220 $190 $1,060 Electric Gene
Slide 77: PSCo Recovery Mechanisms
PSCo Recovery Mechanisms Colorado • Ability to file multi-year requests • Ability to file either historic or forward test years • Purchased capacity cost adjustment • Clean Air Clean Jobs Act rider (forward looking) • Transmission rider (forward looking) • Natural gas pipeline integrity rider • Rene
Slide 78: PSCo Colorado Natural Gas Rate Case
PSCo Colorado Natural Gas Rate Case Proceeding No. 24AL-0049G • In January 2024, PSCo filed a natural gas rate case requesting: − Base rate increase of ~$171 million − ROE of 10.25%, equity ratio of 55% and 2023 historic test year − Rate base of $4.2 billion • CPUC decision anticipated by end of 202
Slide 79: Marshall Fire Litigation
Marshall Fire Litigation • Xcel Energy agrees with the Sheriff that Twelve Tribes caused the first ignition – which was burning for more than an hour before the second ignition • We strongly disagree with the conclusions in the Sheriff’s report that we caused the second ignition, which reportedly st
Slide 80: Fire Spread Timeline
Fire Spread Timeline By the time of the second ignition (~12:20 p.m.), fire from first ignition had already spread to Superior (1) Approximately 11 a.m. – First ignition on Twelve Tribe’s property (2) 12:03 p.m. – Fire reported past Howard Barry Water Treatment Plant 2 (3) 12:06 p.m. – “Flames repor
Slide 81: Fire Spread Timeline
Fire Spread Timeline Red/Orange Dots Show Property Damage Fire Spread Leading to Time of Second Ignition Source: Denver Post 81
Slide 82: Fire Spread Timeline
Fire Spread Timeline • This third-party video from 12:08 p.m. shows embers in the parking lot of the Superior Costco (location 4 on prior slide) • This is approximately 12 minutes before the second ignition 82
Slide 83: Colorado Damages Law
Colorado Damages Law • Colorado law does not impose joint and several liability in tort actions. Instead, under Colorado law, a defendant is liable for the degree or percentage of the negligence or fault attributable to that defendant, except where the defendant conspired with another defendant • Un
Slide 84: Wildfire Mitigation Plans
Wildfire Mitigation Plans • PSCo is currently operating under an approved 2020 wildfire mitigation plan • PSCo will file a revised wildfire mitigation plan in 2024, which will include: – Replacing bare conductor with covered – Preventative power shutoffs – Advanced technologies, including drones and
Slide 85: SPS Overview
SPS Overview Electric – Retail 2023 Financials Ongoing GAAP ~400,000 customers Net Income $391 million $384 million 23 million MWh Assets $9.9 billion $9.9 billion ROE 9.98% 9.80% Equity Ratio 54.1% 54.1% Credit Ratings (Secured) Moody’s A3 S&P A Fitch A- SPS System Energy Mix 2% 1% 2% Coal 22% 12%
Slide 86: SPS Texas Electric Rate Case
SPS Texas Electric Rate Case Proceeding No. 54634 • In December 2023, SPS and parties filed a settlement with the PUCT. Key terms include: − Rate increase of $65 million − ROE of 9.55% and equity ratio of 54.5% for AFUDC purposes − Acceleration of Tolk coal plant retirement from 2034 to 2028 − Histo
Slide 87: SPS Base Capital Expenditures by Function
SPS Base Capital Expenditures by Function $ Millions 2024 2025 2026 2027 2028 Total Electric Transmission $410 $310 $250 $410 $330 $1,710 Electric Distribution $250 $300 $300 $340 $360 $1,550 Other $110 $100 $90 $90 $110 $500 Electric Generation $130 $70 $20 $20 $20 $260 Renewables $10 $0 $0 $10 $10
Slide 88: SPS Recovery Mechanisms
SPS Recovery Mechanisms Texas and New Mexico • Historic test year (TX) (wind settlement reduced regulatory lag) • Ability to file forward test year (NM) • DSM incentive mechanism (TX & NM) • Fuel clause adjustment (TX & NM) • Purchased Capacity Cost Recovery Factor (TX) • Transmission Cost Recovery
Slide 89: Smokehouse Creek Fire
Smokehouse Creek Fire • Based on currently available information, Xcel Energy acknowledges that its facilities appear to have been involved in an ignition of the Smokehouse Creek fire – We dispute claims that Xcel Energy acted negligently in maintaining and operating its infrastructure – We have est
Slide 90: © 2024 Xcel Energy
© 2024 Xcel Energy 90