Xcel Energy Inc. · NASDAQ:XEL
Xcel Energy — Investor Presentation (September 2005)
40 slides from Xcel Energy's investor presentation, Sep 12, 2005
Slide 1: Mid-Atlantic Investor Meetings
Slide 2: Safe Harbor
that couldicause actual results to differ, materially inelude, butiare rel teu fT eeonoiie ea including the availability of ; compet : al events, including war and acts of terrorism; legislation; regulation, finall approval and) | settlement of the Securities, ERISA and Se, See Energy's nonregulated
Slide 3: Strategy — Building the Core
| Strategy — Building the Core
Slide 4: Drivers to Value Creation
Slide 5: Rate Base, Net Income and Depreciation
and Depreciation* 2004) Average rate base $10.5 B arylequity ratio. 50.495 Equity rate base $53B $65-676B Regulatory return on equity 916% 10= 11% Regulatory net income $506M $650-$744M 5-8% Depreciation= Cash flow $735 M1 $910 Mi Potential net income and depen rom ented $1,241) $1,560 —$1,654 M1 hl
Slide 6: Capital Expenditure Plan
Capital Expenditure Plan Prudent Have regulatory, legislative and environmental support Manageable Add to earnings growth Deliver stronger credit metrics a
Slide 7: Regulatory, Legislative and Environmental Support
Regulatory, Legislative and Environmental Support Minnesota MERP rider Comanche 3 decision — Forward|CWIP) and higher equity Minnesota and Texas transmission) investment legislation ~~
Slide 8: Capital Expenditures and Rate Base
Dollars in millions 2005 2006 Total 2005 2004 Rate base / $10.5 billion 4%,
Slide 9: Sources of Funding
Sources of Funding Growing| cash from operations Tax loss carry-forward — Dividend reinvestment program, — Modest debt issuance — No equity issuance necessary through 2006 Uncertain whether there is a need|for public Tr equity issuance in 2007 or 2008 _
Slide 10: Rate Cases with Potential Revenue Increases Effective in 2006
Rate Cases with Potential Revenue Increases Effective in 2006 Colorado Gas — Requested $34 million) Wisconsin Electric and Gas — Requested $48 million Minnesota Electric North Dakota Electric a
Slide 11: Rate Cases with Potential Revenue Increases Effective in 2007
Rate Cases with Potential Revenue Increases Effective in 2007 Colorado Electric South Dakota Electric Texas Electric New Mexico Electric
Slide 12: Regulatory Net Income Growth Potential
Regulatory Net Income Growth Potential Annwal) 2005 — 2009) Growth 2004 Potential Rate Rate base $105B $13B 4A% Utility equity capitalization 50% 50-52% 0t00.8% Earned return on utility rate base equity 96% 10-14% 0t02.6% Total potential growth 4.4 to 7.8% ae
Slide 13: Company-Owned Life Insurance (COLI)
Company-Owned Life Insurance (COLI) IRS dispute over tax deductibility of COL — $350 million potential exposure fof tax and interest — $65 million potential exposure for penalties — 2005 guidance includes $40) million| tax benefit or 9icents per share for COL|| — It will|potentially take several yea
Slide 14: 2005 EPS Guidance
2005 EPS Guidance Continuing Operations”
Slide 15: Dividend
Dividend Annual dividend| increased| by 3\cents May 2005 Current annual dividend| rate of 86 cents Annual dividend increases consistent with long-term earnings growth of 2—4% XCEL ENERGY INC.
Slide 16: Transparent Low-Risk Strategy
Transparent Low-Risk Strategy Constructive legislative & regulatory climate: Strategy delivers: — Competitive total| return to shareholders — Improving credit metrics
Slide 17: Appendix
“ Appendix Le
Slide 18: Northern States Power and Xcel Energy service area
Northern States _.. Power Company- L Minnesota l f a 4 Northem States Power C Public Service Orviecohan ial Company of Colorado |L * = - X Strong Regional Economy as Unemployment rate — Southwestern { February 2005, Public Service iy US 5.8% q y Xcelservicearea 4.7% Job growth — 2005 Forecast 4‘ lar
Slide 19: Organizational Structure
Organizational Structure 2004 Results Income from|contnuing, Operations (Dollars inimlhons: Nonregulated 2)
Slide 20: Rate Base and Returns
Rate Base and Returns tes lsc iis Rate Base Earned) Auth» Equity 2004 ROE orlzed Ratio. Average 2004 2004 Minnesota - Electric retail $2;992) 10.78% 147% 5013%: Minnesota - Gas retail 402, 8/50 11/40) 0/3) North Dakota - Electric retail 166 10180) 12:00) 50/3) North Dakota - Gas retail ) 8:18) 11150
Slide 21: : Bese &
: Bese & ges5| 5 ene 3 rer oe gael 3 gees] é eal a gel
Slide 22: excludes non-egulated|
excludes non-egulated| wit ih various foc pvory mechanisrne and other factors, all of which may’
Slide 23: NSP — Minnesota Rate Cases
NSP — Minnesota Rate Cases inchease Minnesota Gas Approved July’ $518 million) 10.4% ROE increase Minnesota Electric To be filed Winter 2005) 2006 test year, Interim rates early 2006 Decision Summer 2006 To be filed Winter 2005, Interim rates early 2006 Decision Summer 2006, To be filed mid-2006 Dec
Slide 24: PSCo Rate Cases
PSCo Rate Cases Colorado Gas Filed May 27, Requested $34 million) 11% ROE 55.49% common equity, Year-end rate base Decision early 2006 Colorado Electric To be filed Spring) 2006 Decision early 2007,
Slide 25: Wisconsin Electric and Gas Rate Case
Wisconsin Electric and Gas Rate Case Requested ROE 11.9% Common equity ratio 56.32% Electric requested: Revenue increase of $40.8 million Gas requested: Revenue increase of $7.0 million, Rates expected to be in effect January 2006
Slide 26: SPS Rate Case
SPS Rate Case Texas Electric To be filed Summie Decision 2007 New Mexico Electric To be filed 2006, Decision 2007
Slide 27: Capital Expenditures $6.9 Billion 2005 — 2009
Capital Expenditures $6.9 Billion 2005 — 2009
Slide 28: Capital Expenditure Forecast
Capital Expenditure Forecast Dollars in millions 2005 2006 2007 2008 2009) Minnesota MERP $ 191| $ 404° 9 MiSvasezoe sie oe) Comanche 3 59 179) 287 238 4/25) Base level capital expenditures 991 ie Jon 929 1,085) Total $1,241 $1,500 $1,505 $1,352 $1,266
Slide 29: Capital Expenditure Forecast by Operating Company
Capital Expenditure Forecast by Operating Company Dollars in millions 2005 NSP-Minnesota $ 645. NSP-Wisconsin 60 PSCo 425 SPS ah Total| $1,241
Slide 30: NSP — Minnesota Operating Company
NSP — Minnesota Operating Company Capital Expenditure Forecast Dollars in millions 2005 2006 MERP $191 $404 Excluding MERP 454-428 Total 9645 «$832
Slide 31: PSCo Operating Company
PSCo Operating Company Capital Expenditure Forecast Dollars in millions 2005 2006 ‘Comanche 3, $59 $179 Excl, Comanc 366 © _ 320 Total $425 $499
Slide 32: SPS Operating Company
SPS Operating Company Capital Expenditure Forecast Dollars in millions: 2005 © 2006-2007 Total $111 $90 $124" $146
Slide 33: NSP — Wisconsin Operating Company
NSP — Wisconsin Operating Compa Capital Expenditure Forecast Dollars in millions 2005 2008 © 2007 Total $60 $79 $75
Slide 34: Minnesota MERP — Potential Earnings
Minnesota MERP — Potential Earnings Dollars in millions 2005 2006 2007 2008 2009) Capital expenditures Current year $191 $404 $197 $125) $56 Cumulative: $238 $642 © $839 $964 $1,020 Equity ratio 48.5% 48.5% 48.5% 485% 48.5% Return on equity 10.86% 10.86% 10.86% 10.86% 10.86% Equity return $8 $24 $40
Slide 35: Comanche — Potential Earnings
Comanche 3 — Potential Earnings Dollars in Millions 2005 2006 2007 2008 2009) Capital expenditures Current year $59 $179) $287, $298" $125) Cumulative: $62 $244 $028) $826 $954 Equity ratio 56% 56% 3675, 56% 56%) Return on equity 10.75% 10.75% 10.75% 10.75% 10.75% Equity return $2 $9 $23 $44 $54
Slide 36: Energy Supply Mix — 2004
Energy Supply Mix — 2004 Owned and Purchased
Slide 37: Coal
Coal) Coal Transportation 100% Annual consumption: 32 Million tons of low-sulfur, low-mercury western coal
Slide 38: Electric Fuel and Purchased Energy Cost Recovery Mechanisms
Electric Fuel and Purchased Energy Cost Recovery Mechanisms Minnesota: Monthly recovery of prospective costs: Colorado: Recovery of costs with sharing)of deviations up to. +$11.25 million from benchmark Texas: File for semi-annual adjustments — required if + 4% annually Wisconsin: Biennial rate case
Slide 39: Retail Electric Rate Comparison
~~ Retail Electric Rate * Comparison Ay as pear Tn * EE| typical bills = Summer 2004,
Slide 40: Searchable text section of graphics shown above
Searchable text section of graphics shown above [L OGO] [GRAPHIC] Mid-Atlantic Investor Meetings September 12-13, 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 ea