xel_050205

AGA Financial ForumMay 1-3, 2005

AGA Financial ForumMay 1-3, 2005

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; final approval and implementation of the pending settlement of the securities, ERISA and derivative litigation; costs and other effects of legal administrative proceedings, settlements, investigations and claims; actions of accounting regulatory bodies; risks associated with the California power market; 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 2004.

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; final approval and implementation of the pending settlement of the securities, ERISA and derivative litigation; costs and other effects of legal administrative proceedings, settlements, investigations and claims; actions of accounting regulatory bodies; risks associated with the California power market; 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 2004.

Safe HarborSafe Harbor

Invest in utility assets to meetsales growth

ANDEarn our allowed return on equity

Invest in utility assets to meetsales growth

ANDEarn our allowed return on equity

Low-Risk StrategyLow-Risk Strategy

Total return objective: 7 to 9% per year Dividend yield 5%Earnings growth 2 to 4%

Total return objective: 7 to 9% per year Dividend yield 5%Earnings growth 2 to 4%

Nearly 100% of income from regulated operationsNearly 100% of income from regulated operations

Drivers to Value CreationDrivers to Value Creation

ServiceTerritory Growth

ServiceTerritory Growth

IncreaseInvestment

IncreaseInvestment

IncreaseEquity

IncreaseEquity

Earn AuthorizedReturn

Earn AuthorizedReturn

Customers:3.3 Million Electric1.8 Million Gas

Customers:3.3 Million Electric1.8 Million Gas

4th largest US electricand gas utility —

4th largest US electricand gas utility —

Public Service Company of

Colorado

Northern States Power Company-

Wisconsin

Northern States Power Company-

Minnesota

Southwestern Public Service

Unemployment rate —February 2005

US 5.8%Xcel service area 4.7%

Job growth – 2005 ForecastXcel service area 2.4%

Xcel Annual sales growth —2005-2009

Electric 2.0%Gas 1.2%

Unemployment rate —February 2005

US 5.8%Xcel service area 4.7%

Job growth – 2005 ForecastXcel service area 2.4%

Xcel Annual sales growth —2005-2009

Electric 2.0%Gas 1.2%

Strong Regional Economy

Strong Regional Economy

Earnings Growth DriversEarnings Growth Drivers

Rate base+ % Equity capitalization+ Return on equity- Shares outstanding

Rate base+ % Equity capitalization+ Return on equity- Shares outstanding

= Earnings per share growth rate= Earnings per share growth rate

RegulatoryModel

RegulatoryModel

Annual growth rate of:Annual growth rate of:

Net Income Growth

Net Income Growth

Rate Base $11 B* $13 B 3 to 3.5%Utility EquityCapitalization 49% 52% 0 to 1.2%

Earned Returnon Equity Rate Base 9.5%* 11.5% 0 to 3.9%

Rate Base $11 B* $13 B 3 to 3.5%Utility EquityCapitalization 49% 52% 0 to 1.2%

Earned Returnon Equity Rate Base 9.5%* 11.5% 0 to 3.9%

Net Income Growth PotentialNet Income Growth Potential

Annual2005 – 2009 Growth

2004 Potential Rate

Annual2005 – 2009 Growth

2004 Potential Rate

* Preliminary estimate* Preliminary estimate

Power Supply AdditionsPower Supply AdditionsPower Supply Additions

Minnesota MERP 300 MW 2007-2009 $1 Billion *

Comanche 3 ** 500 MW 2009 $1 Billion

Minnesota/South DakotaCombustion Turbines 480 MW 2005 $125 Million

Minnesota Resource Plan

Nuclear plant relicensing 1,600 MW

Minnesota MERP 300 MW 2007-2009 $1 Billion *

Comanche 3 ** 500 MW 2009 $1 Billion

Minnesota/South DakotaCombustion Turbines 480 MW 2005 $125 Million

Minnesota Resource Plan

Nuclear plant relicensing 1,600 MW

* Cost including refurbishment of existing 1,228 MW and 300 MWof additional capacity

** Public Service of Colorado share of 750 MW Comanche 3 coal unitInvestment includes environmental upgrades at Comanche 1 & 2

* Cost including refurbishment of existing 1,228 MW and 300 MWof additional capacity

** Public Service of Colorado share of 750 MW Comanche 3 coal unitInvestment includes environmental upgrades at Comanche 1 & 2

3 Units: 2010; 2013; 20143 Units: 2010; 2013; 2014

Estimated 2015 need: 3,100 MW; 1,125 MW baseloadEstimated 2015 need: 3,100 MW; 1,125 MW baseload

Minnesota MERP $ 191 $ 404 $ 197 $ 125 $ 56

Comanche 3 59 179 287 298 125

Base Level CapitalExpenditures 991 917 1,021 929 1,085

Total $1,241 $1,500 $1,505 $1,352 $1,266

Minnesota MERP $ 191 $ 404 $ 197 $ 125 $ 56

Comanche 3 59 179 287 298 125

Base Level CapitalExpenditures 991 917 1,021 929 1,085

Total $1,241 $1,500 $1,505 $1,352 $1,266

Capital Expenditure ForecastCapital Expenditure ForecastCapital Expenditure ForecastDollars in MillionsDollars in Millions

2005 2006 2007 2008 20092005 2006 2007 2008 2009

NSP-Minnesota $ 645 $ 832 $ 713 $ 571 $ 605

NSP-Wisconsin 60 79 75 74 68

PSCo 425 499 593 591 488

SPS 111 90 124 116 105

Total $1,241 $1,500 $1,505 $1,352 $1,266

NSP-Minnesota $ 645 $ 832 $ 713 $ 571 $ 605

NSP-Wisconsin 60 79 75 74 68

PSCo 425 499 593 591 488

SPS 111 90 124 116 105

Total $1,241 $1,500 $1,505 $1,352 $1,266

Capital Expenditure Forecastby Operating Company

Capital Expenditure ForecastCapital Expenditure Forecastby Operating Companyby Operating Company

Dollars in MillionsDollars in Millions

2005 2006 2007 2008 20092005 2006 2007 2008 2009

Convert two in-city coal plants to natural gas & refurbish a third in-city coal plant

Improves environment

Cash return on investmentbegins January 2006

Target ROE 10.86% withincentive sliding scale9.97 to 11.46%

Equity ratio 48.5%

Convert two in-city coal plants to natural gas & refurbish a third in-city coal plant

Improves environment

Cash return on investmentbegins January 2006

Target ROE 10.86% withincentive sliding scale9.97 to 11.46%

Equity ratio 48.5%

Minnesota Metro EmissionsReduction Program (MERP)Minnesota Metro EmissionsMinnesota Metro EmissionsReduction Program (MERP)Reduction Program (MERP)

SO2 NOx Mercury Particulate CO2SO2 NOx Mercury Particulate CO2

93% 91% 78% 55% 21%93% 91% 78% 55% 21%

Capital Expenditures

Current Year $191 $404 $197 $125 $56

Cumulative $238 $642 $839 $964 $1,020

Equity Ratio 48.5% 48.5% 48.5% 48.5% 48.5%

Return on Equity 10.86% 10.86% 10.86% 10.86% 10.86%

Equity Return $8 $24 $40 $48 $53


Current Year $191 $404 $197 $125 $56

Cumulative $238 $642 $839 $964 $1,020

Equity Ratio 48.5% 48.5% 48.5% 48.5% 48.5%

Return on Equity 10.86% 10.86% 10.86% 10.86% 10.86%

Equity Return $8 $24 $40 $48 $53

Minnesota MERP — Potential EarningsMinnesota MERP Minnesota MERP —— Potential EarningsPotential EarningsDollars in MillionsDollars in Millions

2005 2006 2007 2008 20092005 2006 2007 2008 2009

Colorado — Comanche 3Colorado Colorado —— Comanche 3Comanche 3

Net emissions of SO2 and NOx for Comanche Units 1, 2, & 3 will not exceed current emissions

Construction expenditures up to a formula-based cap are deemed prudent

PSCo equity ratio up to 60% deemed reasonable for 2006 rate case proceeding

Capital expenditures to be included in rate recovery prior to project completion, depending on credit rating

Net emissions of SO2 and NOx for Comanche Units 1, 2, & 3 will not exceed current emissions

Construction expenditures up to a formula-based cap are deemed prudent

PSCo equity ratio up to 60% deemed reasonable for 2006 rate case proceeding

Capital expenditures to be included in rate recovery prior to project completion, depending on credit rating


Current Year $59 $179 $287 $298 $125

Cumulative $62 $241 $528 $826 $951

Equity Ratio 56% 56% 56% 56% 56%

Return on Equity 10.75% 10.75% 10.75% 10.75% 10.75%

Equity Return $2 $9 $23 $41 $54


Current Year $59 $179 $287 $298 $125

Cumulative $62 $241 $528 $826 $951

Equity Ratio 56% 56% 56% 56% 56%

Return on Equity 10.75% 10.75% 10.75% 10.75% 10.75%

Equity Return $2 $9 $23 $41 $54

Comanche 3 — Potential EarningsComanche 3 Comanche 3 —— Potential EarningsPotential EarningsDollars in MillionsDollars in Millions

2005 2006 2007 2008 20092005 2006 2007 2008 2009

Strengthen Balance Sheetwith Increased Equity

Strengthen Balance Sheetwith Increased Equity

Dec 31, 2004 TargetEquity Equity

Company Ratio Ratio

Dec 31, 2004 TargetEquity Equity

Company Ratio Ratio

NSPM 50% 49 to 51% $3NSPW 56 54 to 56 1SPS 48 48 to 50 2PSCo 48 55 to 56 4Xcel EnergyConsolidated 42 44 to 46

NSPM 50% 49 to 51% $3NSPW 56 54 to 56 1SPS 48 48 to 50 2PSCo 48 55 to 56 4Xcel EnergyConsolidated 42 44 to 46

Net IncomeSensitivity

100 Basis PointChange in

Equity RatioMillions


100 Basis PointChange in

Equity RatioMillions

2003Rate Base

Billions

2003Rate Base

Billions

Earn Return Authorized by RegulatorsEarn Return Authorized by Regulators

Colorado $3.9 $19Minnesota 3.3 16Texas 0.8 4Wisconsin 0.6 3

Colorado $3.9 $19Minnesota 3.3 16Texas 0.8 4Wisconsin 0.6 3

* Assuming 50% common equity * Assuming 50% common equity


100 Basis PointChange in ROE *

Millions


100 Basis PointChange in ROE *

Millions

Regulatory InitiativesRegulatory Initiatives20052005

FERCTransmissionCase Decision

May

FERCTransmissionCase Decision

May

NDGasCase

DecisionJune

NDGasCase

DecisionJune

MN, ND &SD Electric

CaseFiled

Winter

MN, ND &SD Electric

CaseFiled

Winter

CO ElectricCaseFiled

Spring

CO ElectricCaseFiled

Spring

MN, ND & SDElectric Case

DecisionFall

MN, ND & SDElectric Case

DecisionFall

MERP RiderRates

In EffectJanuary

MERP RiderRates

In EffectJanuary

MNGasCase

DecisionJuly

MNGasCase

DecisionJuly

WI Electric& GasCaseFiledJune

WI Electric& GasCaseFiledJune

WI Electric& GasCase

DecisionDecember

WI Electric& GasCase

DecisionDecember

MNResource

PlanDecisionYear-end

MNResource

PlanDecisionYear-end

Colorado ElectricRates In Effect

January

Colorado ElectricRates In Effect

January

20062006

20072007

COGasCaseFiledMay

COGasCaseFiledMay

COGas Case

RatesIn EffectJanuary

COGas Case

RatesIn EffectJanuary

Case DecisionRates In EffectCase Filed

Case DecisionRates In EffectCase Filed

MN, ND &SD Electric

InterimRates

In EffectJanuary

MN, ND &SD Electric

InterimRates

In EffectJanuary

WI Electric& GasRates

In EffectJanuary

WI Electric& GasRates

In EffectJanuary

Key Assumptions for2005 Earnings Guidance

Key Assumptions forKey Assumptions for2005 Earnings Guidance2005 Earnings Guidance

Seren is held for sale and accounted for as discontinued operations

Normal weather patterns are experienced for 2005

Weather-adjusted retail electric sales growth of 1.6 to 2.0%

Weather-adjusted retail natural gas sales growth of 1.0 to 1.3%

A successful outcome in the NSP-Minnesota gas rate case

A successful outcome in the FERC rate case

Capacity costs are projected to increase by $15 million, net of recovery

No additional margin impact associated with the fuel allocationissue at SPS

2005 trading and short-term wholesale margins are projected todecline from 2004 levels by approximately $30 million to $55 million

Seren is held for sale and accounted for as discontinued operations

Normal weather patterns are experienced for 2005

Weather-adjusted retail electric sales growth of 1.6 to 2.0%

Weather-adjusted retail natural gas sales growth of 1.0 to 1.3%

A successful outcome in the NSP-Minnesota gas rate case

A successful outcome in the FERC rate case

Capacity costs are projected to increase by $15 million, net of recovery

No additional margin impact associated with the fuel allocationissue at SPS

2005 trading and short-term wholesale margins are projected todecline from 2004 levels by approximately $30 million to $55 million

Key Assumptions for2005 Earnings Guidance (Continued)

Key Assumptions forKey Assumptions for2005 Earnings Guidance 2005 Earnings Guidance (Continued)(Continued)

2005 utility other operating and maintenance expense is expectedto increase between 2 to 3% compared with 2004 levels

2005 depreciation expense is projected to increase approximately7 to 8% compared with 2004

2005 interest expense is projected to increase approximately$10 million to $15 million compared with 2004 levels

Allowance for funds used during construction-equity is projectedto be relatively flat compared with 2004

Xcel Energy continues to recognize COLI tax benefits of 9 centsper share in 2005

The effective tax rate for continuing operations is expected to be approximately 27 to 30% percent

Average common stock and equivalents of approximately 426 million shares in 2005, based on the “If Converted” method for convertible notes

2005 utility other operating and maintenance expense is expectedto increase between 2 to 3% compared with 2004 levels

2005 depreciation expense is projected to increase approximately7 to 8% compared with 2004

2005 interest expense is projected to increase approximately$10 million to $15 million compared with 2004 levels

Allowance for funds used during construction-equity is projectedto be relatively flat compared with 2004

Xcel Energy continues to recognize COLI tax benefits of 9 centsper share in 2005

The effective tax rate for continuing operations is expected to be approximately 27 to 30% percent

Average common stock and equivalents of approximately 426 million shares in 2005, based on the “If Converted” method for convertible notes

2004 Earnings and 2005 Guidance 2004 Earnings and 2005 Guidance

Regulated utilitycontinuing operations $1.32 $1.27 – 1.37Holding Companyfinance costs (0.08) (0.11)Other nonregulated& Holding Company 0.03 0.02Total earnings fromcontinuing operations $1.27 $1.18 – 1.28Discontinued operations (0.40)Total Earnings per Share diluted $0.87

Regulated utilitycontinuing operations $1.32 $1.27 – 1.37Holding Companyfinance costs (0.08) (0.11)Other nonregulated& Holding Company 0.03 0.02Total earnings fromcontinuing operations $1.27 $1.18 – 1.28Discontinued operations (0.40)Total Earnings per Share diluted $0.87

20052004 Guidance

20052004 Guidance

Dollars per ShareDollars per Share

Dividend ObjectiveDividend Objective

Current annual dividend rate of 83 cents

Review dividend — Spring 2005

Annual dividend increasesconsistent with long-termearnings growth

Current annual dividend rate of 83 cents

Review dividend — Spring 2005

Annual dividend increasesconsistent with long-termearnings growth

Senior Debt RatingsSenior Debt RatingsSenior Debt Ratings

Holding Co. -- Baa1 -- BBB-NSPM A2 A3 A- BBB-NSPW A2 A3 A- BBBPSCo A3 Baa1 A- BBB-SPS -- Baa1 -- BBB

Outlook Stable Stable

Holding Co. -- Baa1 -- BBB-NSPM A2 A3 A- BBB-NSPW A2 A3 A- BBBPSCo A3 Baa1 A- BBB-SPS -- Baa1 -- BBB

Outlook Stable Stable

Secured Unsecured Secured Unsecured Secured Unsecured Secured Unsecured Moody’sMoody’s S&PS&P

Low-Risk Business PlanLowLow--Risk Business PlanRisk Business Plan

No competitive threats

Constructive regulation

Executable strategy

Identify and manage risks

Solid balance sheet

Total return objective of 7 to 9% per year

No competitive threats

Constructive regulation

Executable strategy

Identify and manage risks

Solid balance sheet

Total return objective of 7 to 9% per year

AppendixAppendix

Organizational StructureOrganizational Structure2004 Results2004 Results

Xcel Energy Inc.$527

RegulatedRegulated NonregulatedNonregulated

NorthernStatesPower

Company -Minnesota

NorthernStatesPower

Company -Wisconsin

PublicService

Company ofColorado

SouthwesternPublicService

Company

$230 $54 $218 $55 $13

Income from ContinuingOperations (Dollars in Millions)Income from ContinuingIncome from ContinuingOperations (Dollars in Millions)Operations (Dollars in Millions)

SubsidiariesEloigneQuixx

HoldingCompany

$(43)

1,340,000 41.0% 447,500 25.7%1,340,000 41.0% 447,500 25.7%

Northern States Power — MinnesotaNorthern States Power Northern States Power —— MinnesotaMinnesota

2004 Electric 2004 Gas2004 Electric 2004 GasAvg. Retail % of Xcel Energy Avg. Retail % of Xcel EnergyCustomers Retail Customers Customers Retail CustomersAvg. Retail % of Xcel Energy Avg. Retail % of Xcel EnergyCustomers Retail Customers Customers Retail Customers

Minneapolis/St. Paul

MinnesotaMinnesota

South DakotaSouth Dakota

North DakotaNorth DakotaROE Allowed (Electric)ROE Allowed (Electric) 11.47%11.47%ROE on Average GAAP EquityROE on Average GAAP Equity 12.1%12.1%GAAP % Equity in Capital StructureGAAP % Equity in Capital Structure 49.7%49.7%Senior Unsecured Credit RatingSenior Unsecured Credit Rating A3/BBBA3/BBB--Electric/Gas Net Income MixElectric/Gas Net Income Mix 90%/10%90%/10%Net Income (Millions)Net Income (Millions) $230 $230

ROE Allowed (Electric & Gas)ROE Allowed (Electric & Gas) 11.9%11.9%ROE on Average GAAP EquityROE on Average GAAP Equity 12.7%12.7%GAAP % Equity in Capital Structure GAAP % Equity in Capital Structure 55.4%55.4%Senior Unsecured Credit Rating A3/BBBSenior Unsecured Credit Rating A3/BBBElectric/Gas Net Income Mix Electric/Gas Net Income Mix 95%/5%95%/5%Net Income (Millions)Net Income (Millions) $54 $54

Northern States Power — WisconsinNorthern States Power Northern States Power —— WisconsinWisconsin

WisconsinWisconsin

MichiganMichigan

240,035 7.3% 97,463 5.5%240,035 7.3% 97,463 5.5%


Public Service Company of ColoradoPublic Service Company of ColoradoPublic Service Company of Colorado

ROE Allowed (Electric)ROE Allowed (Electric) 10.75%10.75%ROE on Average GAAP EquityROE on Average GAAP Equity 9.9%9.9%GAAP % Equity in Capital StructureGAAP % Equity in Capital Structure 47.7%47.7%Senior Unsecured Credit RatingSenior Unsecured Credit Rating Baa1/BBBBaa1/BBB--Electric/Gas Net Income MixElectric/Gas Net Income Mix 72%/28%72%/28%Net Income (Millions)Net Income (Millions) $218$218

ColoradoColorado

1,293,000 39.6% 1,197,000 68.8%1,293,000 39.6% 1,197,000 68.8%


ROE Allowed (Electric ROE Allowed (Electric –– Texas)Texas) 11.5%11.5%ROE on Average GAPP EquityROE on Average GAPP Equity 6.9%6.9%% Equity in Capital Structure% Equity in Capital Structure 47.5%47.5%Senior Unsecured Credit Rating Baa1/BBBSenior Unsecured Credit Rating Baa1/BBBElectric/Gas Net Income MixElectric/Gas Net Income Mix 100%/NA100%/NANet Income (Millions)Net Income (Millions) $55 $55

Southwestern Public ServiceSouthwestern Public ServiceSouthwestern Public Service

New MexicoNew Mexico

TexasTexas

OklahomaOklahoma

KansasKansas

395,000 12.1%395,000 12.1%

2004 Electric2004 ElectricAvg. Retail % of Xcel EnergyCustomers Retail CustomersAvg. Retail % of Xcel EnergyCustomers Retail Customers

0

2

4

6

8

10

12

14

16

18

0

2

4

6

8

10

12

14

16

18

Retail Electric Rate * ComparisonRetail Electric RateRetail Electric Rate ** ComparisonComparison

* EEI typical bills – Summer 2004** EEI typical bills EEI typical bills –– Summer 2004Summer 2004Cents per KWhCents per KWhCents per KWh

Amarillo

Amarillo

Amarillo

Kansas City

Kansas City

Kansas CityDenverDenverDenver

Mpls/St. Paul

Mpls/St. Paul

Mpls/St. Paul

BostonBostonBoston

Des Moines

Des Moines

Des Moines

Chicago

Chicago

Chicago

Milwaukee

Milwaukee

Milwaukee

Phoenix

Phoenix

Phoenix

Salt Lake City

Salt Lake City

Salt Lake City

4.874.874.876.066.066.066.016.016.01

St. Louis

St. Louis

St. Louis

MiamiMiamiMiami

New York

New York

New York

Supply Requirement and CapabilitySupply Requirement and Capability

20

21

22

23

24

25

26

27

Current capabilitybased on existing generation

and contracted purchases

Current capabilitybased on existing generation

and contracted purchases

2004 2014201320122011201020092008200720062005

Thousands of MWThousands of MW

Resource need without Resource need without renewal of expiringrenewal of expiringpurchase contractspurchase contracts

With approved additions

Supply requirementSupply requirement

Energy Supply Mix — 2004Owned and Purchased

Energy Supply Mix — 2004Owned and Purchased

Owned Generation

68%

Owned Generation

68%

Gas21%Gas21%

Other11%

Other11%

Purchased Energy

Purchased Energy

Nuclear12%

Nuclear12%

Coal *54%

Coal *54%

Gas27%Gas27%

Renewable7%

Renewable7%

Fuel MixFuel Mix

* Low-sulfur, low-mercury western coal* Low-sulfur, low-mercury western coal

Coal Supply ContractedCoal Supply ContractedCoal Supply Contracted

2005 99% 100%2006 78 752007 65 452008 46 45

2005 99% 100%2006 78 752007 65 452008 46 45

CoalCoal Transportation

CoalCoal Transportation

Annual consumption: 32 Million tons of low-sulfur, low-mercury western coal

Annual consumption: 32 Million tons of low-sulfur, low-mercury western coal

Electric Fuel and Purchased EnergyCost Recovery Mechanisms

Electric Fuel and Purchased EnergyElectric Fuel and Purchased EnergyCost Recovery MechanismsCost Recovery Mechanisms

Minnesota: Monthly recovery of prospective costs

Colorado: Recovery of costs with sharing of deviations up to + $11.25 millionfrom benchmark

Texas: File for semi-annual adjustments –required if + 4% annually

Wisconsin: Biennial rate case – file for interim adjustment if costs fall outside + 2% annually

New Mexico: Recovery of costs with 2 month lag

Minnesota: Monthly recovery of prospective costs

Colorado: Recovery of costs with sharing of deviations up to + $11.25 millionfrom benchmark

Texas: File for semi-annual adjustments –required if + 4% annually

Wisconsin: Biennial rate case – file for interim adjustment if costs fall outside + 2% annually

New Mexico: Recovery of costs with 2 month lag

62,000

66,000

70,000

74,000

78,000

82,000

86,000

1997 1998 1999 2000 2001 2002 2003 2004*

Environmental InitiativesEnvironmental InitiativesEnvironmental Initiatives

Owned Generation (GWh)Owned Generation (GWh)Owned Generation (GWh) Pounds per MWhPounds per MWhPounds per MWh

3.0

4.0

5.0

6.0

Nitrogen Oxide emissionsNitrogen Oxide emissionsNitrogen Oxide emissionsSulfur Dioxide emissionsSulfur Dioxide emissionsSulfur Dioxide emissions Owned generation (GWh)Owned generation (GWh)Owned generation (GWh)

* Estimated* Estimated* Estimated

0

500

1000

1500

2000

2500

1997 1998 1999 2000 2001 2002 2003 2004 2005 **

ActualActualProjectedProjected

Commitment to Wind PowerCommitment to Wind PowerCommitment to Wind Power

2525

MWMW

138138316316 348348

469469 478478

829829 884884

15961596

22062206

**** Timing dependent on renewal of Production Tax CreditTiming dependent on renewal of Production Tax Credit

Economy & Finance

xel_050205