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Implementing the Strategy




               Ben Fowke
Vice President and Chief Financial Officer
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; costs
and other effects of legal administrative proceedings, settlements,
investigations and claims including litigation related to company-owned
life insurance (COLI); 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 2005.
Attractive Total Return with
Low-Risk Strategy

 Current dividend yield      4.75%
                          5 – 7% per year*
 EPS growth rate objective
 2005 – 2009
 Annual dividend growth objective 2 – 4% per year




* Excluding any impact from COLI
Strategy — Building the Core

       Invest in rate base assets
                  AND
  Increase our earned return on equity
Implementing the Strategy
Investing in Rate Base Assets

Capital Expenditure Forecast
Dollars in millions
                       2006    2007    2008     2009    Total
Base level            $1,046   $1,016 $ 920    $1,031
Minnesota MERP          336      228    180       44
Comanche 3              198      331    284       73
Total                 $1,580   $1,575 $1,384   $1,148   $5,687

Anticipated annual
growth in average
rate base                4%      7%      5%       2%     4.5%
Implementing the Strategy
Increasing our Earned Return on Equity

  Pre-established recovery mechanisms
  — MERP rider
  — Comanche 3
  — Transmission riders
  File rate cases
Metro Emission Reduction Project
Instituted $40 million MERP Rider in Minnesota
jurisdiction January 2006

King
  571 MW coal plant refurbishment
 In service May 2007

High Bridge
  271 MW coal conversion to 575 MW gas
 In service May 2008

Riverside
  386 MW coal conversion to 520 MW gas
 In service May 2009
Comanche Unit 3

 750 MW super-critical coal plant in Colorado
 18 months from application to beginning
 construction
 On schedule
 On budget
Investing in Transmission
Capital Expenditure Forecast
Dollars in millions

                2006       2007   2008     2009      2010     Total
NSPM*           $148       $103   $ 53     $ 59     $ 59      $422
PSCo                  31    63      98       57       102      351
SPS*                  18    40      38       27        27      150
NSPW                  17    16      12       12        12       69
Total           $214       $222   $201     $155     $200      $992


* Recovery of qualifying investments through a rider. Texas
  rulemaking to be initiated.
Implementing the Strategy
Increasing our Earned Return on Equity
Rate Cases with 2006 Impacts
                                   Status
  Colorado Gas                    Completed
  Wisconsin Electric and Gas      Completed
  Minnesota Electric           Decision 2006 Q3
Colorado Gas Rate Case Highlights

Xcel Energy Request       Commission Decision

                            $22 million granted
 $34.5 million request
                            10.5% return on equity
 11.0% return on equity




        Rates effective February 2006
Wisconsin Rate Cases Highlights

Xcel Energy Request       Commission Decision

                            $43.4 million electric
 $53.1 million electric
                            $3.9 million gas
 $7.8 million gas
                            11.0% ROE
 11.9% ROE
                            54% common equity
 56.32% common equity


        Rates effective January 2006
Minnesota Electric Case Highlights

 Requested $168 million increase, based on
 forecast 2006 test year
 11% return on common equity
 $147 million interim rate increase January 2006
 Customer impact
 — Base rate increase of 8%
 — Interim rate increase of 6.9%
 Final decision expected third quarter 2006
Minnesota Electric Rate Case
Department of Commerce Recommendation
Dollars in millions

Increase requested                         $168
   ROE 10.54% vs. 11%              $- 13
   Post-Retirement Benefit Costs    -2
   Incentive Compensation           -7
   Sales to Flint Hills             - 20
   Trading Margins                  - 24
   MISO Charges                     -4
     Total                         $- 70   $ 98
 Earnings Neutral
  Decommissioning & Depreciation    - 14
  Private Spent Fuel Storage        -4
  Storm Reserve                     -2
    Total                          $- 20   $ 78
Minnesota Electric Rate Case
Other Intervenors


 Treatment of short-term wholesale
 Purchased capacity equity rider
 MISO cost
 Office of the Attorney General — Minnesota
 income tax based on consolidated return
Minnesota Electric Rate Case Schedule

  Intervenor Testimony – March 2
  Rebuttle Testimony – March 30
  Surrebuttle Testimony – April 13
  Evidentiary Hearings – April 20 – 28
  Initial Briefs – May 24
  Reply Briefs – June 6
  ALJ Report – July 6
  MPUC Decision – September 5
Rate Cases with Expected 2007 Impacts
  Colorado Electric
  — File in April 2006
  Texas Electric
  — File May-June 2006
  Colorado Gas
  — File late Spring 2006
  Minnesota Gas
  — File late 2006
  North Dakota Electric
  — File late 2006
  New Mexico Electric — Potential
  South Dakota Electric — Potential
Well-Positioned for Regulatory Success

 Prudent investment to meet customer requirements
 Environmental stewardship
 Constructive regulation
 Innovative regulatory recovery
Earnings Guidance Range
Dollars per share
                              2006
   Regulated utility       $1.25 – $1.35
   Holding company
    and other                 (0.10)
   COLI – Tax benefit          0.10
   Continuing operations   $1.25 – $1.35
Financial Performance Objectives

  EPS growth rate 2005 – 2009
  — Target 5 – 7% per year*
  Annual dividend increases of 2 – 4% per year
  Deliver an attractive total return with low risk
  Credit rating
  — Senior unsecured debt BBB+ to A range




* Excluding any impact from COLI
XEL_032206
Appendix
Northern States
            Power
          Company-              Northern
                                                    Strong Regional
          Minnesota           States Power
                                                       Economy
                               Company-
                               Wisconsin      Unemployment rate —
Public Service                                December 2005
 Company of                                    US                  4.6%
  Colorado                                     Xcel service area   4.0%
                                              Xcel annual sales growth —
                                              2005-2009
                                               Electric            1.8%
       Southwestern
                                               Gas                 1.5%
       Public Service*




 * Sale pending on Kansas and Oklahoma properties
Xcel Energy 2005 Owned
Generating Facilities

   Unit Type          Number         MW         Percent
   Coal                  36         8,138          52
   Natural Gas           61         4,918          31
   Nuclear                3         1,617          10
   Hydro                 83           508           3
   Oil                   24           492           3
   RDF                    6            96           1
                                       25 *
   Wind                   -                         -
   Total                           15,794

* Additionally, Xcel Energy purchases 928 MWs of wind power
Senior Debt Ratings

                     Moody’s             S&P
              Secured   Unsecured Secured   Unsecured

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


Outlook                  Stable             Stable
COLI Litigation

The court’s opinion in the Dow case outlined three indicators of
potential economic benefits to be examined in a COLI case.

    Positive pre-deduction cash flows
             pre-deduction
    Mortality gains
    The buildup of cash values
In Xcel Energy’s COLI case, the plans:
    Were projected to have sizeable pre-deduction cash flows,
    based upon the relevant assumptions when purchased
    Presented the opportunity for mortality gains that were not
    eliminated either retroactively or prospectively
    Had large cash value increases that were not encumbered by
    loans during the first seven years of the policies

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XEL_032206

  • 1. Implementing the Strategy Ben Fowke Vice President and Chief Financial Officer
  • 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; costs and other effects of legal administrative proceedings, settlements, investigations and claims including litigation related to company-owned life insurance (COLI); 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 2005.
  • 3. Attractive Total Return with Low-Risk Strategy Current dividend yield 4.75%  5 – 7% per year* EPS growth rate objective 2005 – 2009 Annual dividend growth objective 2 – 4% per year * Excluding any impact from COLI
  • 4. Strategy — Building the Core Invest in rate base assets AND Increase our earned return on equity
  • 5. Implementing the Strategy Investing in Rate Base Assets Capital Expenditure Forecast Dollars in millions 2006 2007 2008 2009 Total Base level $1,046 $1,016 $ 920 $1,031 Minnesota MERP 336 228 180 44 Comanche 3 198 331 284 73 Total $1,580 $1,575 $1,384 $1,148 $5,687 Anticipated annual growth in average rate base 4% 7% 5% 2% 4.5%
  • 6. Implementing the Strategy Increasing our Earned Return on Equity Pre-established recovery mechanisms — MERP rider — Comanche 3 — Transmission riders File rate cases
  • 7. Metro Emission Reduction Project Instituted $40 million MERP Rider in Minnesota jurisdiction January 2006 King 571 MW coal plant refurbishment In service May 2007 High Bridge 271 MW coal conversion to 575 MW gas In service May 2008 Riverside 386 MW coal conversion to 520 MW gas In service May 2009
  • 8. Comanche Unit 3 750 MW super-critical coal plant in Colorado 18 months from application to beginning construction On schedule On budget
  • 9. Investing in Transmission Capital Expenditure Forecast Dollars in millions 2006 2007 2008 2009 2010 Total NSPM* $148 $103 $ 53 $ 59 $ 59 $422 PSCo 31 63 98 57 102 351 SPS* 18 40 38 27 27 150 NSPW 17 16 12 12 12 69 Total $214 $222 $201 $155 $200 $992 * Recovery of qualifying investments through a rider. Texas rulemaking to be initiated.
  • 10. Implementing the Strategy Increasing our Earned Return on Equity Rate Cases with 2006 Impacts Status Colorado Gas Completed Wisconsin Electric and Gas Completed Minnesota Electric Decision 2006 Q3
  • 11. Colorado Gas Rate Case Highlights Xcel Energy Request Commission Decision $22 million granted $34.5 million request 10.5% return on equity 11.0% return on equity Rates effective February 2006
  • 12. Wisconsin Rate Cases Highlights Xcel Energy Request Commission Decision $43.4 million electric $53.1 million electric $3.9 million gas $7.8 million gas 11.0% ROE 11.9% ROE 54% common equity 56.32% common equity Rates effective January 2006
  • 13. Minnesota Electric Case Highlights Requested $168 million increase, based on forecast 2006 test year 11% return on common equity $147 million interim rate increase January 2006 Customer impact — Base rate increase of 8% — Interim rate increase of 6.9% Final decision expected third quarter 2006
  • 14. Minnesota Electric Rate Case Department of Commerce Recommendation Dollars in millions Increase requested $168 ROE 10.54% vs. 11% $- 13 Post-Retirement Benefit Costs -2 Incentive Compensation -7 Sales to Flint Hills - 20 Trading Margins - 24 MISO Charges -4 Total $- 70 $ 98 Earnings Neutral Decommissioning & Depreciation - 14 Private Spent Fuel Storage -4 Storm Reserve -2 Total $- 20 $ 78
  • 15. Minnesota Electric Rate Case Other Intervenors Treatment of short-term wholesale Purchased capacity equity rider MISO cost Office of the Attorney General — Minnesota income tax based on consolidated return
  • 16. Minnesota Electric Rate Case Schedule Intervenor Testimony – March 2 Rebuttle Testimony – March 30 Surrebuttle Testimony – April 13 Evidentiary Hearings – April 20 – 28 Initial Briefs – May 24 Reply Briefs – June 6 ALJ Report – July 6 MPUC Decision – September 5
  • 17. Rate Cases with Expected 2007 Impacts Colorado Electric — File in April 2006 Texas Electric — File May-June 2006 Colorado Gas — File late Spring 2006 Minnesota Gas — File late 2006 North Dakota Electric — File late 2006 New Mexico Electric — Potential South Dakota Electric — Potential
  • 18. Well-Positioned for Regulatory Success Prudent investment to meet customer requirements Environmental stewardship Constructive regulation Innovative regulatory recovery
  • 19. Earnings Guidance Range Dollars per share 2006 Regulated utility $1.25 – $1.35 Holding company and other (0.10) COLI – Tax benefit 0.10 Continuing operations $1.25 – $1.35
  • 20. Financial Performance Objectives EPS growth rate 2005 – 2009 — Target 5 – 7% per year* Annual dividend increases of 2 – 4% per year Deliver an attractive total return with low risk Credit rating — Senior unsecured debt BBB+ to A range * Excluding any impact from COLI
  • 23. Northern States Power Company- Northern Strong Regional Minnesota States Power Economy Company- Wisconsin Unemployment rate — Public Service December 2005 Company of US 4.6% Colorado Xcel service area 4.0% Xcel annual sales growth — 2005-2009 Electric 1.8% Southwestern Gas 1.5% Public Service* * Sale pending on Kansas and Oklahoma properties
  • 24. Xcel Energy 2005 Owned Generating Facilities Unit Type Number MW Percent Coal 36 8,138 52 Natural Gas 61 4,918 31 Nuclear 3 1,617 10 Hydro 83 508 3 Oil 24 492 3 RDF 6 96 1 25 * Wind - - Total 15,794 * Additionally, Xcel Energy purchases 928 MWs of wind power
  • 25. Senior Debt Ratings Moody’s S&P Secured Unsecured Secured Unsecured Holding Co. -- Baa1 -- BBB- NSPM A2 A3 A- BBB- NSPW A2 A3 A- BBB PSCo A3 Baa1 A- BBB- SPS -- Baa1 -- BBB Outlook Stable Stable
  • 26. COLI Litigation The court’s opinion in the Dow case outlined three indicators of potential economic benefits to be examined in a COLI case. Positive pre-deduction cash flows pre-deduction Mortality gains The buildup of cash values In Xcel Energy’s COLI case, the plans: Were projected to have sizeable pre-deduction cash flows, based upon the relevant assumptions when purchased Presented the opportunity for mortality gains that were not eliminated either retroactively or prospectively Had large cash value increases that were not encumbered by loans during the first seven years of the policies