Renewable Energy Strategy

Mark Stoering
Vice President, Portfolio Strategy
& Business Development



                    ...
Safe Harbor
This material includes forward-looking statements that are subject to
certain risks, uncertainties and assumpt...
US Renewables Today

  Fuel source for approx. 2.5% of electricity 1
  — Approximately 1% wind

  13,885 MW Installed wind...
Excellent Renewable Resource Potential
     Wind Resource




      Solar Resource

 Direct Nomal
Solar Radiation
 kWh/m2/...
2007 Renewable Resources
MW              NSP      PSCo        SPS      Total
Wind           1,115     1,084       575     ...
Renewable Portfolio Standards

Minnesota    30% by 2020
                                2020
             (25% wind)
     ...
Xcel Energy’s Renewables Strategy

 Meet customer preferences / state RPS mandates
 Advance Environmental Leadership Strat...
Strategic Rationale
for Renewables Ownership

 Demonstrate our commitment
 Meet customer, regulator and
 investor expectat...
Targeted Wind Additions
2009–2012

 NSP 500 MW Wind RFP – December
 PSCo 300 MW Wind RFP – January
 Regulatory filings sup...
Wind Development Strategy

 Partner with experienced developers
 — Build / Transfer structure
 — Balance development risk
...
Projected Renewable Resources
      MW
                         2007                          2020
      Wind             ...
The Cornerstones of Our Strategy

          Building the Core
    Targeted                Environmental
    Investment    ...
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xcel energy 6MSRenewable_Energy_Strat_Xcel_Energy_12052007

  1. 1. Renewable Energy Strategy Mark Stoering Vice President, Portfolio Strategy & Business Development 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. US Renewables Today Fuel source for approx. 2.5% of electricity 1 — Approximately 1% wind 13,885 MW Installed wind capacity 2 3 — Utility wind ownership < 1,700 MW #1 provider of wind energy in the nation 1) EIA 11/06/07, includes biomass, wind, geothermal and solar (MWh) – excludes hydro 2) AWEA 09/30/07 3) AWEA 12/31/06
  4. 4. Excellent Renewable Resource Potential Wind Resource Solar Resource Direct Nomal Solar Radiation kWh/m2/day 8.00 – 8.25 7.75 – 8.00 7.50 – 7.75 7.25 – 7.50 7.00 – 7.25 6.75 – 7.00 Biomass 6.50 – 6.75 6.25 – 6.50 6.00 – 6.25 Biomass Resource 5.75 – 6.00 5.50 – 5.75 2.75 – 5.50
  5. 5. 2007 Renewable Resources MW NSP PSCo SPS Total Wind 1,115 1,084 575 2,774 Hydro 277 88 0 365 Solar 0 17 0 17 Biomass 182 1 0 183 RDF 100 0 0 100 Landfill 15 0 0 15 Renewables 10% Gas & Oil 21% Coal 57% Nuclear 12% 2007 Energy Supply
  6. 6. Renewable Portfolio Standards Minnesota 30% by 2020 2020 (25% wind) Approx. 6,000 MW Colorado 20% by 2020 New Mexico 20% by 2020 Wisconsin 13% by 2015 2007 N. Dakota 10% by 2015 Approx. 2,800 MW Texas 5% by 2015
  7. 7. Xcel Energy’s Renewables Strategy Meet customer preferences / state RPS mandates Advance Environmental Leadership Strategy Capitalize on “Renewables Geography” Target our ownership > 50% Benefit with favorable cost recovery Provide transparent EPS growth
  8. 8. Strategic Rationale for Renewables Ownership Demonstrate our commitment Meet customer, regulator and investor expectations Secure long-term assets / sites Lower life-cycle costs Improve system integration Balance sheet support Renewable portfolio balance
  9. 9. Targeted Wind Additions 2009–2012 NSP 500 MW Wind RFP – December PSCo 300 MW Wind RFP – January Regulatory filings support targeted additions Ownership preference / build-transfer structure Establish developer partnerships
  10. 10. Wind Development Strategy Partner with experienced developers — Build / Transfer structure — Balance development risk — Access to sites / assets / transmission — Active competitive bid process (Initially) — Annual investment towards RPS — Allow for developer objectives Developer Wind Project Pipeline TX / SD 10,000+ MW CO / MN / ND 5,000 – 10,000 MW WI 2,000 – 5,000 MW NM 1,000 – 2,000 MW Source: Emerging Energy Research, LLC. Greenfield, CBED, WindSource development
  11. 11. Projected Renewable Resources MW 2007 2020 Wind 2,774 7,400 Hydro 365 400 Solar 17 600 Biomass 183 250 RDF 100 60 Landfill 15 20 Geothermal 0 20 Nuclear Nuclear Renewables Renewables 12% 13% 10% 24% Gas & Oil Gas & Oil 17% 21% Coal Coal 46% 57%
  12. 12. The Cornerstones of Our Strategy Building the Core Targeted Environmental Investment Leadership Value Operational Excellence Cost Recovery

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