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. Company Profile
Traditional Regulation
NSP-Minnesota NSP-Wisconsin
Operate in 8 States
40% of net income* 6% of net income*
Combination Utility
Electric 84% of net income
Gas 16% of net income
PSCo
50% of net income* Customers
3.3 million electric
1.8 million gas
SPS 2007 Financial Statistics
5% of net income* NI Ongoing: $612 million
NI GAAP: $577 million
* Percentages based on 2007 net income
Assets: $23 billion
Equity ratio: 43%
2007 EPS Ongoing: $1.43, GAAP: $1.35
2007 Dividend $0.92 per share annualized
4. Xcel Energy Corporate Strategy
Grow our core business and
meet the environmental challenge
Achieve annual EPS growth of 5 – 7%
Increase dividend by 2 – 4% annually
Reduce emissions by 2020
5. Carbon Strategy
Reduce carbon emissions by 2020
Implement strategy by operating company
Maintain reasonable rates
Ensure appropriate regulatory treatment
6. Climate Change – the Disruptive Policy
Climate Change policy will require:
— Significant emission reductions
— Significant capital investments
— Long-term technological transformation
— A diverse portfolio of resources
Utilities will bear the lion’s share of the reductions
7. Xcel Energy States at Forefront
Demand-Side
Renewable Management
Portfolio (annual MWh Carbon
State Standards savings) Reduction
30% by 2025
MN 30% by 2020 1.5%
(over 2005)
CO 20% by 2020 .6% N/A
10% by 2020
NM 20% by 2020 .3%
(over 2000)
WI 10% by 2015 N/A N/A
TX 5% by 2015 .2% N/A
8. Benefits of a Stability/Reduction Plan
Reduce risk
— Federal and state carbon regulation
— Community and litigation risks
— Mitigate long-term costs to customers
Demonstrate continued environmental leadership
Potential for investment opportunities
9. Value of Clean Technologies
U.S. Electric Sector CO2 Emissions (million metric tons)
3500
3000
EIA Base Case 2007
2500
2000
Technology
Efficiency
1500
Renewables
Nuclear Generation
Advanced Coal Generation
1000
Carbon Capture & Sequestration
Plug-in Hybrid Vehicles
500 Distributed Generation
Source: EPRI
0
1990 1995 2000 2005 2010 2015 2020 2025 2030
10. Clean Energy Actions
Increase renewable energy
Uprate and extend lives of nuclear plants
Expand demand side management, energy
efficiency and conservation efforts
Increase investment in transmission
Upgrade environmental systems and improve
efficiencies of generation plants
Replace/repower inefficient generation
Evaluate carbon capture and storage
11. Minnesota Resource Plan
Reduces carbon emission by 22% by 2020
Adds 2,600 megawatts of wind by 2020
Seeks to expand output from Prairie Island and Monticello
nuclear plants by 230 MW
Requests environmental upgrades and capacity expansion of
80 MW at Sherco
Seeks approval of Manitoba Hydro 375 MW PPA
Would add 2,300 MW of natural gas generation
Expands DSM efforts
Plan requires Commission approval
12. Colorado Resource Plan
Reduces carbon emission by 10% by 2017 and puts
PSCo on path to achieve 20% reduction by 2020
Adds 800 MW of wind by 2015
Replaces four coal units with natural gas generation
Acquire 25 MW of solar with plans to add up to 200
MW of solar as technology develops
Expands DSM efforts
Plan requires Commission approval
13. Xcel Energy and Wind Potential
Source: National Renewable Energy Laboratory
Wind Density
High
Xcel Energy
States Served
Low
14. Changing Supply Mix
2007 Estimated 2020
Energy Supply Mix * Energy Supply Mix *
Nuclear
Nuclear
Gas
13%
12%
21% Renewables
Renewables 24%
Gas
10% 17%
Coal **
Coal ** 46%
57%
* Percentage of MW capacity, includes purchases
** Low-sulfur western coal
15. Success Factors
Key components of past growth
— Constructive rate case outcomes
— MERP
— Comanche 3
Key components of future growth
— Transmission riders (MN, CO, ND, SD)
— Favorable wind recovery (MN, CO)
— Environmental rider (MN)
— Planned forward test year (CO)
— Nuclear recovery mechanism (MN)
— Southwestern Public Service (SPS)
16. 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
17. Recovery on Capital Investment *
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 forecast based on middle of range
18. Potential Cash from Operations
Dollars in millions
2,400
2,000
1,600
1,200
800
400
0
2008 2009 2010 2011
Net Income * Depreciation NOL
* Net Income growth based on middle of range
19. Delivering on Rate Base Growth *
Dollars in billions
CAGR = 7.5%
$16.9
$15.7
$14.9
$14.0
$12.8
$11.7
2006 2007 2008 2009 2010 2011
* Growth based on middle of capital forecast range
21. Delivering on 5-7% EPS Growth
Ongoing EPS excludes the impacts of COLI and disc ops.
A reconciliation to GAAP earnings is included in the appendix.
Guidance Range
$1.45 - $1.55
$1.43
$1.30
$1.15
~ 5%*
10%
13%
2005 2006 2007 2008
Ongoing Ongoing Ongoing Guidance
* Estimated growth rate based on middle of guidance range
23. Xcel Energy Share Ownership
Other Europe
Index Retail
<1%
16% 8%
36%
Other
10%
Quant
6%
Value
9% USA
Growth/GARP
92%
22%
24. P/E Valuation as of April 18, 2008
P/E based on 2008 estimated EPS
17
WEC
SO
AEE
15 DUK
LNT PNW AVG
AEP XEL PGN
PCG
ED
SCG
CNP
13
CMS
11
XEL P/E Discount ~ 1%
25. Short Interest
Millions of Shares
35
30
25
20
15
10
5
0
7 8 8
7
7
7 7
7
7 7 8 8
7 7
-0 r-0 y-0 n-0 l-0 g-0 p-0 t-0 v-0 c-0 n-0 b-0 r-0 r-0
ar Ap c
Ju Au Se O No De Ja Fe Ma Ap
a Ju
M M
27. Attractive Value Proposition
Low risk, fully regulated and integrated utility
Constructive regulatory environment 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 ~ 4.4%
Sustainable annual dividend growth of 2% – 4%
29. 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
believes that ongoing earnings provide a more meaningful comparison of earnings
results between different periods in which the COLI program was in place and is
more representative of Xcel Energy’s fundamental core earnings power. Xcel
Energy’s management uses ongoing earnings internally for financial planning and
analysis, for reporting of results to the Board of Directors, in determining whether
performance targets are met for performance-based compensation, and when
communicating its earnings outlook to analysts and investors.
30. Senior Debt 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
SPS BBB+ Baa1 BBB+
