Reducing Carbon
                      Delivering Results

West Coast Investor Meetings
August 18-20, 2008
Safe Harbor
This material includes forward-looking statements that are subject to
certain risks, uncertainties and assumpt...
Attractive Investment Opportunity

 Environmental leader with both a willingness and
 the ability to address environmental...
Environmental Leader
 Resource plans’ projected CO2 emission reductions
    Minnesota plan: 22% reduction by 2020
    Colo...
Geographic Competitive Advantage
                                                          Biomass Resource

Wind Resource...
Reducing Carbon Dioxide Emissions*

      Millions of tons
 80


 75


 70


 65


 60
         2003        2004     2005 ...
Projected Renewable Resources
 Energy
             2007                                2020
               Nuclear        ...
Smart Grid Pilot Project
 Pilot project in Boulder, Colorado:
    Five major partners
    Total project cost ~ $100 millio...
Constructive Regulation
 Transmission riders – CO, MN, ND, SD
 Renewable riders – CO, MN
 MERP rider – MN
 Conservation/DS...
Projected Rider Revenue
      Dollars in millions
240
        Metro Emissions Reduction Project (MN)
        Air Quality I...
Regulatory Results

Rate relief granted 2006-2007: $400 million
  2006 Minnesota electric rate case: $131 million
  2006 C...
Pending Rate Cases
                        Requested               Status
New Mexico Electric     March 2008              ...
Recovery on Capital Expenditures*
        Dollars in millions
2,800
                                              $2,350
2...
Delivering on Rate Base Growth*
  Dollars in billions

   CAGR = 7.3%
                                              $16.6
...
Proven Track Record
Delivering on 5 – 7% EPS Growth

           Guidance Range
                                           ...
Proven Track Record
Delivering 2 – 4% Dividend Growth*


   Annualized dividend per share
    2004 – 2008 CAGR = 3.4%
    ...
Strong Corporate Governance

 Independent Lead Director
 Annual election of all directors
 12 independent directors on 13 ...
Value Proposition
 Low risk, fully regulated and integrated utility
 Constructive regulation with enhanced recovery
 of ma...
Appendix
Company Profile
                                                        Traditional Regulation
                           ...
Reconciliation –
   Ongoing EPS to GAAP
   Dollars per share
                                                             ...
Earnings Guidance Range
Dollars per share
                        2007A        2008
Regulated Utility       $1.55     $1.6...
Capital Expenditure Forecast
                            Denotes enhanced recovery mechanism
Dollars in millions
         ...
Capital Expenditures
by Operating Company*
Dollars in millions

                2008       2009        2010    2011
NSPM  ...
Capital Expenditures by Function*
Dollars in millions
                           2008      2009      2010     2011
Elec Ge...
Credit Ratings

                      Secured              Unsecured
              Fitch   Moody’s   S&P   Fitch   Moody’s...
Debt Maturities

         Dollars in millions
$1,200
                                                    SPS
$1,000       ...
Strong Access to Credit Markets in 2008
  Hold Co - issued $400 million of retail hybrid securities
  with a 7.6% coupon i...
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xcel energy West_Coast_Road

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xcel energy West_Coast_Road

  1. 1. Reducing Carbon Delivering Results West Coast Investor Meetings August 18-20, 2008
  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; 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 2007.
  3. 3. Attractive Investment Opportunity Environmental leader with both a willingness and the ability to address environmental challenges Constructive regulation with enhanced recovery of major capital projects Rate base growth opportunities Track record of successful execution Strong corporate governance
  4. 4. Environmental Leader Resource plans’ projected CO2 emission reductions Minnesota plan: 22% reduction by 2020 Colorado plan: 10% reduction by 2017 Innovative technology Smart Grid Solar Wind to battery Wind to hydrogen Demand Side Management Geographic advantages Wind Solar Biomass Carbon sequestration
  5. 5. Geographic Competitive Advantage Biomass Resource Wind Resource Source: National Renewable Energy Laboratory Solar Resource Wind Density High Low Xcel Energy States Served
  6. 6. Reducing Carbon Dioxide Emissions* Millions of tons 80 75 70 65 60 2003 2004 2005 2006 2007 * Owned–generation carbon dioxide emissions
  7. 7. Projected Renewable Resources Energy 2007 2020 Nuclear Nuclear 11% 13% Renewables Natural Renewables 24% Gas 9% 31% Natural Gas 17% Coal Coal 49% 46% Capacity Wind Hydro Solar Biomass RDF Landfill Geothermal MW 2007 2,700 365 17 182 100 15 0 2020 7,400 400 600 250 60 20 20
  8. 8. Smart Grid Pilot Project Pilot project in Boulder, Colorado: Five major partners Total project cost ~ $100 million Xcel Energy portion ~ $15 million Build out completed in 2009 Scope: Smart meters Real time, high speed, two–way communications Intelligent home/smart appliances Demand Side Management Distributed generation Renewable energy sector growth Energy storage devices
  9. 9. Constructive Regulation Transmission riders – CO, MN, ND, SD Renewable riders – CO, MN MERP rider – MN Conservation/DSM riders – CO, MN Environmental riders – MN, ND, SD Capacity rider – CO Comanche 3 forward CWIP via general rate case – CO IGCC rider – CO Air quality improvement rider – CO
  10. 10. Projected Rider Revenue Dollars in millions 240 Metro Emissions Reduction Project (MN) Air Quality Improvement Rider (CO) $195 200 Renewable Energy Standard (MN) $166 Transmission Rider (CO) 160 Transmission Rider (MN) 120 $107 $73 80 40 0 2006 2007 2008 2009
  11. 11. Regulatory Results Rate relief granted 2006-2007: $400 million 2006 Minnesota electric rate case: $131 million 2006 Colorado electric rate case: $151 million 2006 Wisconsin gas and electric rate cases: $47 million 2007 Colorado gas rate case: $32 million Other: $39 million
  12. 12. Pending Rate Cases Requested Status New Mexico Electric March 2008 Pending $16.6 million Fall 2008 10.7% ROE North Dakota Electric June 2008 Pending $17.9 million Fall 2008 10.75% ROE Interim rates SPS Wholesale March 2008 Pending $14.9 million Fall 2008 12.2% ROE Texas Electric June 2008 Pending $61.3 million overall Qtr 1 2009 11.25% ROE NSP-Wisconsin August 2008 Pending Limited Reopener Qtr 4 2008 $47.1 million
  13. 13. Recovery on Capital Expenditures* Dollars in millions 2,800 $2,350 2,400 $2,150 $2,000 $1,900 2,000 1,600 1,200 800 400 0 2008 2009 2010 2011 Traditional Recovery Enhanced Recovery Depreciation * Capital expenditure forecast based on middle of range
  14. 14. Delivering on Rate Base Growth* Dollars in billions CAGR = 7.3% $16.6 $15.4 $14.5 $13.7 $12.5 2007A 2008F 2009F 2010F 2011F * Growth based on middle of capital forecast range
  15. 15. Proven Track Record Delivering on 5 – 7% EPS Growth Guidance Range $1.45 – $1.55 $1.43 $1.30 $1.15 ~5%** 10% 13% 2005 2006 2007 2008 Ongoing* Ongoing* Ongoing* Guidance * Ongoing EPS excludes the impacts of COLI and disc ops. A reconciliation to GAAP earnings is included in the appendix. ** Estimated growth rate based on middle of guidance range
  16. 16. Proven Track Record Delivering 2 – 4% Dividend Growth* Annualized dividend per share 2004 – 2008 CAGR = 3.4% $0.95 $0.92 $0.89 $0.86 $0.83 $0.75 2003 2004 2005 2006 2007 2008 * Xcel Energy increased the dividend by 3¢ on May 21, 2008
  17. 17. Strong Corporate Governance Independent Lead Director Annual election of all directors 12 independent directors on 13 person board Management compensation aligned with shareholders – stock ownership guidelines: CEO ownership 5x annual base salary CFO/Other Officers ownership 3x base salary
  18. 18. Value Proposition Low risk, fully regulated and integrated utility Constructive regulation with enhanced recovery of major capital projects Pipeline of investment opportunities Environmental leader, well–positioned for changing rules Attractive Total Return Sustainable annual EPS growth of 5% – 7% with upside potential Strong dividend yield of ~ 4.6% Sustainable annual dividend growth of 2% – 4%
  19. 19. Appendix
  20. 20. Company Profile Traditional Regulation NSP-Wisconsin Operate in 8 States NSP-Minnesota 6% of earnings * 40% of earnings * Combination Utility Electric 85% of net income Gas 15% of net income PSCo 49% of earnings * Customers 3.3 million electric 1.8 million gas SPS 2007 Financial Statistics 5% of earnings * NI Ongoing: $612 million NI GAAP: $577 million * Percentages based on 2007 Ongoing Earnings Assets: $23 billion Equity ratio: 43% 2007 EPS Ongoing: $1.43; GAAP: $1.35 2008 Dividend $0.95 per share annualized
  21. 21. Reconciliation – Ongoing EPS to GAAP Dollars per share 2007 2005 2006 Ongoing Earnings $1.15 $1.30 $1.43 PSRI/COLI 0.05 0.05 (0.08) Continuing Operations $1.20 $1.35 $1.35 Disc Ops 0.03 0.01 – GAAP Earnings $1.23 $1.36 $1.35 As a result of the termination of the COLI program, Xcel Energy’s management Energy’s believes that ongoing earnings provide a more meaningful comparison of earnings comparison results between different periods in which the COLI program was in place and is more representative of Xcel Energy’s fundamental core earnings power. Energy’s Xcel Energy’s management uses ongoing earnings internally for financial planning Energy’s planning and analysis, for reporting of results to the Board of Directors, in determining Directors, whether performance targets are met for performance-based compensation, performance-based and when communicating its earnings outlook to analysts and investors. investors.
  22. 22. Earnings Guidance Range Dollars per share 2007A 2008 Regulated Utility $1.55 $1.61 – $1.71 Holding Company (0.12) (0.16) Ongoing Earnings $1.43 $1.45 – $1.55 PSRI/COLI $(0.08) – Continuing Operations 1.35 1.45 – 1.55 Disc Ops – – GAAP Earnings $1.35 $1.45 – $1.55
  23. 23. Capital Expenditure Forecast Denotes enhanced recovery mechanism Dollars in millions 2008 2009 2010 2011 Base & Other $1,245 $1,285 $1,310 $1,300 MERP 170 25 10 0 Comanche 3 330 60 10 0 MN Wind Tran/CapX 2020 40 65 115 270 Sherco Upgrade 5 20 75 230 MN Wind Generation 135 0 0 0 Nuclear Capacity/Life Ext 75 120 180 200 Fort St. Vrain CT 100 25 0 0 Total Committed $2,100 $1,600 $1,700 $2,000 Potential Projects 0-100 200-400 200-400 200-500 Range $2,100- $1,800- $1,900- $2,200- $2,200 $2,000 $2,100 $2,500
  24. 24. Capital Expenditures by Operating Company* Dollars in millions 2008 2009 2010 2011 NSPM $935 $955 $1,060 $1,380 PSCo 945 650 680 750 SPS 170 205 180 140 NSPW 100 90 80 80 Total $2,150 $1,900 $2,000 $2,350 * Capital forecast based on middle of range
  25. 25. Capital Expenditures by Function* Dollars in millions 2008 2009 2010 2011 Elec Generation $935 $480 $525 $745 Elec Transmission 300 325 390 500 Elec Distribution 355 345 355 360 Gas 140 155 160 155 Nuclear Fuel 145 150 140 105 Common/Other 225 145 130 135 Potential Projects 50 300 300 350 Total $2,150 $1,900 $2,000 $2,350 * Capital forecast based on middle of range
  26. 26. Credit Ratings Secured Unsecured Fitch Moody’s S&P Fitch Moody’s S&P Holding Co. – – – BBB+ Baa1 BBB NSPM A+ A2 A A A3 BBB NSPW A+ A2 A A A3 BBB+ PSCo A A3 A A– Baa1 BBB A– SPS – – – BBB+ Baa1 BBB+
  27. 27. Debt Maturities Dollars in millions $1,200 SPS $1,000 PSCo NSPW $800 NSPM $600 Xcel Energy $400 $200 $0 2008 2009 2010 2011 2012 2013 2014 2015
  28. 28. Strong Access to Credit Markets in 2008 Hold Co - issued $400 million of retail hybrid securities with a 7.6% coupon in January NSP-Minnesota - issued $500 million of first mortgage bonds with 10 year maturity and 5.25% coupon in March PSCo - issued $600 million of first mortgage bonds in August: 10 year tranche with a 5.8% coupon 30 year tranche with a 6.5% coupon Potential debt issuances: 2nd half 2008 NSP–Wisconsin: Up to $250 million of first mortgage bonds SPS: Up to $250 million of unsecured debt
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