NSP–Minnesota Plans
Dave Sparby
President and CEO
Northern States Power Company–Minnesota,
an Xcel Energy Company


      ...
Safe Harbor
This material includes forward-looking statements that are subject to
certain risks, uncertainties and assumpt...
Northern States Power–Minnesota

                               2006 Financials
 North Dakota      Minnesota   Earnings Co...
2006 Rate Base and ROE
Dollars in millions
                                          Weather
                             ...
2007 Legislation Session
                                 Demand-
                                   Side
                ...
Renewables at Year End 2007

                 NSPM
                & NSPW       NSPM (85%)
  MW
  Wind           1,115    ...
Wind and Biomass Resources




Wind
Density
    High                       Thousand Tons/Year
           Xcel Energy     A...
Transmission Expansion
      CapX 2020 Group 1
CapX Group 1 Proposed
                                                     ...
Transmission for
Renewable Requirements

                                         Meeting 2025 RES *
                   MI...
Conservation and DSM
                                 Lighting
                                 Motors
                   ...
Conservation and DSM
MN Summer System Peak Day

                          Peak Day
         MW
10,500
10,000
             ...
Redeploying Existing Assets

                   Xcel Energy North



                                       Flambeau
    G...
Redeploying Existing Assets
Regulatory Approvals

   Resource Plan Sherco   December 2007
   CON Monticello         Decemb...
Requested Resource Plan Outcomes

 Nuclear extension and uprate CON approvals
 Sherco upgrade approval
 Manitoba Hydro ext...
20+% Carbon Reduction by 2020

             Energy by                CO2 Reduction from
           Resource Type          ...
Recovery on Capital Investment

        Dollars in millions
1,600
                                               $1,380
1,...
Minnesota Recovery Mechanisms

 Forward test year with interim rates
 MERP rider
 Transmission rider
 Conservation Improve...
Dakota’s Cost Recovery Mechanisms

  Forward test year with interim rates (ND)
  Historic test year (SD)
  Environmental r...
Positioned for Success


Environmental leadership with:
 Clear objectives
 Operating expertise
 Cost recovery
 Reasonable ...
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xcel energy 2D SNSPMPlan_Xcel_Energy_12052007

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xcel energy 2D SNSPMPlan_Xcel_Energy_12052007

  1. 1. NSP–Minnesota Plans Dave Sparby President and CEO Northern States Power Company–Minnesota, an Xcel Energy Company New York Analyst Meeting December 5, 2007
  2. 2. Safe Harbor 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 document by the words “anticipate,” “estimate,” “expect,” “projected,” “objective,” “outlook,” “possible,” “potential” and similar expressions. Actual results may vary materially. Factors that could cause actual results to differ materially include, but are not limited to: general economic conditions, including the availability of credit, actions of rating agencies and their impact on capital expenditures; business conditions in the energy industry; competitive factors; unusual weather; effects of geopolitical events, including war and acts of terrorism; changes in federal or state legislation; regulation; actions of accounting regulatory bodies; the higher degree of risk associated with Xcel Energy’s nonregulated businesses compared with Xcel Energy’s regulated business; and other risk factors listed from time to time by Xcel Energy in reports filed with the SEC, including Exhibit 99.01 to Xcel Energy’s report on Form 10-K for year 2006.
  3. 3. Northern States Power–Minnesota 2006 Financials North Dakota Minnesota Earnings Cont. Op $272 million Assets $9,079 million GAAP ROE 11.2% Equity Ratio 52.3% 2006 Owned Generation * Coal 3,590 MW Gas 2,335 MW South Dakota Nuclear 1,817 MW Renewable 399 MW 2006 Retail Sales 2006 Customers (Thousands of MWh / MMBtu) Electric 1,360,000 Electric 35,923 Gas 465,000 Gas 70,497 * 2006 Owned generation includes NSPW MW
  4. 4. 2006 Rate Base and ROE Dollars in millions Weather Normalized Rate Base Earned ROE Minnesota Electric $3,599 10.3% Minnesota Gas 441 6.1 North Dakota Electric 188 8.9 North Dakota Gas 44 7.5 South Dakota Electric 232 11.1 Wholesale 27 Not Reported Total Rate Base $4,531 Regulated Equity Ratio = 51.6%
  5. 5. 2007 Legislation Session Demand- Side Renewable Management Portfolio (annual MWh Carbon State Standards savings) Reduction 30% by 2025 Minnesota 30% by 2020 * 1.5% (over 2005) North Dakota 10% by 2015 N/A N/A * Timeline for 30% RPS 15% by 2010 18% by 2012 25% by 2016 30% by 2020
  6. 6. Renewables at Year End 2007 NSPM & NSPW NSPM (85%) MW Wind 1,115 948 Biomass 297 253 Hydro * 277 235 * Does not include Manitoba Hydro
  7. 7. Wind and Biomass Resources Wind Density High Thousand Tons/Year Xcel Energy Above 500 150 – 250 50 – 100 States Served Low 250 – 500 100 - 150 Less 50
  8. 8. Transmission Expansion CapX 2020 Group 1 CapX Group 1 Proposed Total Cost ~ 1.5 billion Project Study Corridors Xcel Energy ~ $800 million Miles – 700 CON filed August 2007 Approval expected 2008 Construction 2012–2015 Bemidji-Grand Rapids (230-kV) Fargo-St. Cloud-Monticello (345-kV) SE Twin Cities-Rochester-La Crosse (345-kV) Brookings, SD-SE Twin Cities (345-kV) Note: Certificate of Need (CON) The shaded areas are potential corridors or proposed lines
  9. 9. Transmission for Renewable Requirements Meeting 2025 RES * MINNESOTA Grand Forks Bemidji NORTH Total cost: $2 – 3 billion Fargo Grand DAKOTA Rapids Xcel Energy: $1.3 – 2 billion WISCONSIN SOUTH Miles: 700 – 1,000 Twin Cities DAKOTA Sioux Falls Meeting 2016 RES * IOWA Sioux Fort Plano Plan Complete 2008 City Dodge State Review 2009 ILLINOIS Scope: CapX Group 1 $450 million 110 miles Potential RES Vision * Renewable Energy Standards
  10. 10. Conservation and DSM Lighting Motors Design Custom Efficiency Energy & Demand Savings Dollars in Millions 500 $60 $50 400 $40 300 $30 200 $20 100 $10 0 $0 97 00 90 91 92 93 94 95 96 98 99 01 02 03 04 05 06 19 20 19 19 19 19 19 19 19 19 19 20 20 20 20 20 20 Demand (MW) Energy (GWh) Expenditures
  11. 11. Conservation and DSM MN Summer System Peak Day Peak Day MW 10,500 10,000 Expected 9,500 System Load 9,000 8,500 System Load 8,000 7,500 7,000 6,500 6,000 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Hour Ending
  12. 12. Redeploying Existing Assets Xcel Energy North Flambeau Granite City Monticello Wheaton Blue Lake Prairie Island Key City Blackdog Red Wing Wilmarth French Island
  13. 13. Redeploying Existing Assets Regulatory Approvals Resource Plan Sherco December 2007 CON Monticello December 2007 CON Prairie Island February 2008
  14. 14. Requested Resource Plan Outcomes Nuclear extension and uprate CON approvals Sherco upgrade approval Manitoba Hydro extension approval Approval of peaking plan and renewable energy ownership plan Conservation plan at 1.1% Implement 2007 legislation
  15. 15. 20+% Carbon Reduction by 2020 Energy by CO2 Reduction from Resource Type 2005 Existing Levels Tons CO2 GWh 60,000 37,000,000 50,000 32,000,000 40,000 27,000,000 30,000 22,000,000 20,000 CO2 Levels 17,000,000 10,000 12,000,000 -0 2005 2020 2008 2020 CO2 w/o Reductions Bio MH Hydro CO2 with Reductions Wind System Oil MERP Wind DSM Purchase MH Upgrades Gas Nuclear Coal
  16. 16. Recovery on Capital Investment Dollars in millions 1,600 $1,380 1,400 1,200 $1,060 $1,025 $955 $935 1,000 800 600 400 200 0 2007 2008 2009 2010 2011 Traditional Enhanced Recovery Depreciation
  17. 17. Minnesota Recovery Mechanisms Forward test year with interim rates MERP rider Transmission rider Conservation Improvement Program rider Mercury Reduction & Environmental Improvement rider Renewable Development Fund rider State Energy Policy rider Fuel clause adjustment Purchased gas adjustment
  18. 18. Dakota’s Cost Recovery Mechanisms Forward test year with interim rates (ND) Historic test year (SD) Environmental rider (ND & SD) Transmission rider (ND & SD) Fuel clause adjustment (ND & SD) Full decoupling on retail natural gas (ND)
  19. 19. Positioned for Success Environmental leadership with: Clear objectives Operating expertise Cost recovery Reasonable cost

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