xcel energy Utilities

Executing The Operating Company PlansExecuting The Operating Company Plans

Paul Bonavia President – Utilities GroupPaul Bonavia President – Utilities Group

Regulators/Regulators/LegislatorsLegislators

Value toValue toCustomersCustomers

EnvironmentalEnvironmentalStewardshipStewardship

FinancialFinancialPerformancePerformance

Invest in Regulated Utility BusinessInvest in Regulated Utility Business

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 including litigation related to company-owned life insurance (COLI); 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 including litigation related to company-owned life insurance (COLI); 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

Southwestern Southwestern Public Public

Service Service CompanyCompany

SPSSPS

Northern Northern States Power States Power

WisconsinWisconsinNSP (W)NSP (W)

Northern Northern States Power States Power

MinnesotaMinnesotaNSP (M)NSP (M)

Public Public Service Service

Company of Company of Colorado Colorado

PSCoPSCo

Xcel EnergyXcel EnergyUtilities GroupUtilities Group

Operating CompaniesOperating Companies

Northern States Power Northern States Power –– MinnesotaMinnesota

2004 CustomersElectric 1,352,244Gas 453,982

2004 CustomersElectric 1,352,244Gas 453,982

MinnesotaMinnesotaNorth DakotaNorth Dakota

South DakotaSouth Dakota

Minneapolis/ St. Paul

Unemployment rate –September 2005

US 4.8%NSP (M) 3.5%

Job growth – 2006 ForecastNSP (M) 1.3%

Xcel annual sales growth –2005 – 2009

Electric 1.7%Gas 1.5%

Unemployment rate –September 2005

US 4.8%NSP (M) 3.5%

Job growth – 2006 ForecastNSP (M) 1.3%

Xcel annual sales growth –2005 – 2009

Electric 1.7%Gas 1.5%

Strong Regional Economy

Strong Regional Economy

Northern States Power Northern States Power –– Minnesota Minnesota Future Power Requirements Future Power Requirements

02468

10121416

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015Non-Nuclear Owned NuclearLong-Term Purchases Short-Term Purchases

MWs in thousandsMWs in thousands

Load Obligation Load Obligation @ 15% Reserve@ 15% Reserve

Load & ResourcesLoad & Resources

Northern States Power Northern States Power –– Minnesota Minnesota Resource PlanResource Plan

1,805 MW incremental non-renewableresource need by 2015560 MW incremental renewable resourceneed by 2015780 MW previously mandated renewableresources in progressNuclear plant relicensingCapX transmission bill

1,805 MW incremental non-renewableresource need by 2015560 MW incremental renewable resourceneed by 2015780 MW previously mandated renewableresources in progressNuclear plant relicensingCapX transmission bill

Northern States Power Northern States Power –– Minnesota Minnesota Customer RelationsCustomer Relations

Top quartile reliabilityTop quartile customer satisfactionPublic support for environmental initiativesFuel cost mitigation plan

Top quartile reliabilityTop quartile customer satisfactionPublic support for environmental initiativesFuel cost mitigation plan

Northern States Power Northern States Power –– Minnesota Minnesota Regulatory ClimateRegulatory Climate

Multiple electric rate casesMinnesota and North Dakota gas rate cases in 2005Multiple cost recovery ridersConservation incentive plan and MERP allow premium returns

Multiple electric rate casesMinnesota and North Dakota gas rate cases in 2005Multiple cost recovery ridersConservation incentive plan and MERP allow premium returns

Northern States Power Northern States Power –– Minnesota Minnesota PrioritiesPriorities

Sustain strong operating performanceExecute rate casesAdvocate environmental and cost recovery policy initiativesIncrease capital and O&M flexibility

Sustain strong operating performanceExecute rate casesAdvocate environmental and cost recovery policy initiativesIncrease capital and O&M flexibility

WisconsinWisconsin

Upper MichiganUpper Michigan

Northern States Power Northern States Power –– WisconsinWisconsin

Unemployment rate –September 2005

US 4.8%NSP (W) 3.5%

Job growth – 2006 ForecastNSP (W) 1.3%

Xcel annual sales growth –2005 – 2009

Electric 1.6%Gas 1.2%

Unemployment rate –September 2005

US 4.8%NSP (W) 3.5%

Job growth – 2006 ForecastNSP (W) 1.3%

Xcel annual sales growth –2005 – 2009

Electric 1.6%Gas 1.2%

2004 CustomersElectric 240,035Gas 97,463

2004 CustomersElectric 240,035Gas 97,463

Strong Regional Economy

Strong Regional Economy

Northern States Power Northern States Power –– Wisconsin Wisconsin ProfileProfile

Resource planning and energy supply coordinated with Northern States Power Minnesota through Interchange AgreementLowest retail rates in WisconsinRate case every two yearsBest Xcel Energy delivery system performanceBest Xcel Energy financial performance

Resource planning and energy supply coordinated with Northern States Power Minnesota through Interchange AgreementLowest retail rates in WisconsinRate case every two yearsBest Xcel Energy delivery system performanceBest Xcel Energy financial performance

Northern States Power Northern States Power –– Wisconsin Wisconsin PrioritiesPriorities

Keep it up Execute rate casesAdvance environmental initiatives

Keep it up Execute rate casesAdvance environmental initiatives

ColoradoColorado

Public Service Company of ColoradoPublic Service Company of Colorado

2004 CustomersElectric 1,294,849Gas 1,209,297

2004 CustomersElectric 1,294,849Gas 1,209,297

Unemployment rate –September 2005

US 4.8%PSCo 4.8%

Job growth – 2006 ForecastPSCo 2.0%

Xcel annual sales growth –2005 – 2009

Electric 1.9%Gas 1.5%

Unemployment rate –September 2005

US 4.8%PSCo 4.8%

Job growth – 2006 ForecastPSCo 2.0%

Xcel annual sales growth –2005 – 2009

Electric 1.9%Gas 1.5%

Solid Regional Economy

Solid Regional Economy

0123456789

2006 2007 2008 2009 2010 2011 2012 2013

Owned Purchases Reserve Sharing Comanche 3

MWs in thousandsMWs in thousandsLoad Obligation @ 16% ReserveLoad Obligation @ 16% Reserve

Load & ResourcesLoad & Resources

Public Service Company of Colorado Public Service Company of Colorado Future Power RequirementsFuture Power Requirements

2,600 MW by 2013Comanche coal plant project320 MW demand side management by 2013Renewable portfolio standard2007 solar mandateIGCC legislation

2,600 MW by 2013Comanche coal plant project320 MW demand side management by 2013Renewable portfolio standard2007 solar mandateIGCC legislation

Public Service Company of Colorado Public Service Company of Colorado Resource PlanResource Plan

High exposure to natural gas volatilityQuality of Service Plan reformCustomer satisfaction trails other operating companiesMajor franchise renewalsFuel cost mitigation plan

High exposure to natural gas volatilityQuality of Service Plan reformCustomer satisfaction trails other operating companiesMajor franchise renewalsFuel cost mitigation plan

Public Service Company of Colorado Public Service Company of Colorado Customer RelationsCustomer Relations

2005 gas rate case2006 electric rate caseMultiple cost recovery clauses expire 12-31-06

2005 gas rate case2006 electric rate caseMultiple cost recovery clauses expire 12-31-06

Public Service Company of Colorado Public Service Company of Colorado RatesRates

Improve customer satisfactionContinue reliability initiativesPrepare 2006 electric rate caseConclude least-cost resource planIncrease capital and O&M flexibility

Improve customer satisfactionContinue reliability initiativesPrepare 2006 electric rate caseConclude least-cost resource planIncrease capital and O&M flexibility

Public Service Company of Colorado Public Service Company of Colorado PrioritiesPriorities

Unemployment rate –September 2005

US 4.8%SPS 4.2%

Job growth – 2006 ForecastSPS 1.4%

Xcel annual sales growth –2005 – 2009

Electric 2.1%

Unemployment rate –September 2005

US 4.8%SPS 4.2%

Job growth – 2006 ForecastSPS 1.4%

Xcel annual sales growth –2005 – 2009

Electric 2.1%

Southwestern Public ServiceSouthwestern Public Service

TexasTexas

New MexicoNew Mexico

2004 CustomersElectric 394,8792004 Customers

Electric 394,879

Strong Regional Economy

Strong Regional Economy

Note: Sale pending on Kansasand Oklahoma properties

Note: Sale pending on Kansasand Oklahoma properties

012345678

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Owned Long-Term Purchases Short-Term Purchases

MWs in thousandsMWs in thousands

Load Obligation Load Obligation @ 12% Reserve@ 12% Reserve

Load & ResourcesLoad & Resources

Southwestern Public ServiceSouthwestern Public ServiceFuture Power RequirementsFuture Power Requirements

Southwestern Public ServiceSouthwestern Public ServiceResource PlanResource Plan

Long system is now shortTwo low-cost coal plants plus gas-fired steam plantsNew environmental mandatesTransmission and renewable energy investment opportunities

Long system is now shortTwo low-cost coal plants plus gas-fired steam plantsNew environmental mandatesTransmission and renewable energy investment opportunities

Gain support for resource plan and cost recoveryPrepare 2006 rate caseImprove large customer relations

Gain support for resource plan and cost recoveryPrepare 2006 rate caseImprove large customer relations

Southwestern Public ServiceSouthwestern Public ServicePrioritiesPriorities

Three Core ProcessesThree Core Processes

Executing the Operating Company PlanExecuting the Operating Company Plan

PeoplePeople

OperationsOperationsStrategyStrategy

CustomersCustomers

RegulationRegulationPortfolioPortfolio

StrategyStrategy

NSP (M)NSP (M)

Operating plans translate strategy into specific Operating plans translate strategy into specific goals, actions, milestones and accountabilitiesgoals, actions, milestones and accountabilities

OperationsOperations

NSP (W)NSP (W) PSCoPSCo SPSSPS

Xcel EnergyXcel Energy

ExecutingExecutingThe Operating Company PlansThe Operating Company Plans

Make building generation, purchasing power and conservation financially equivalent

Enables better decisions by considering all costs and benefitsCompensates utility shareholders for lost margins and imputed debt

Resource plan decisions, rate proposalsand legislation

Comanche 3 settlementMinnesota rate case financial equivalency proposalTransmission ridersManage to authorized returns

Make building generation, purchasing power and conservation financially equivalent

Enables better decisions by considering all costs and benefitsCompensates utility shareholders for lost margins and imputed debt

Resource plan decisions, rate proposalsand legislation

Comanche 3 settlementMinnesota rate case financial equivalency proposalTransmission ridersManage to authorized returns

StrategyStrategy

ExecutionExecution

Strategy: Optimize Reliability / Cost Strategy: Optimize Reliability / Cost BalanceBalance

Top Quartile Satisfaction* is Financially Prudent Top Quartile Satisfaction* is Financially Prudent

141139138136

116116115115124124124123

020406080

100120140160

2000 2001 2002 2003First Decile Satisfaction First Quartile SatisfactionBelow Average Satisfaction

* JD Power Survey** Distribution O&M per retail customer plus customer care (FERC 901-916) less

customer assistance (908) per retail customer

GoodCost per Customer** (Dollars) by Customer SatisfactionCost per Customer** (Dollars) by Customer Satisfaction

Capital Investment per New CustomerCapital Investment per New Customer

2003 2004 Oct YTD '05

GasGasElectricElectric

1,5911,591GoodDollarsDollars

1,5711,5711,4271,427

1,1961,1961,2141,214 1,1731,173

Improving Large Customer* SatisfactionImproving Large Customer* Satisfaction

2003 2004 2005

5555

73738282

Percentile rank Percentile rank –– TQS survey results TQS survey results

Good

* 6,100 customers surveyed served by 60 utilities* 6,100 customers surveyed served by 60 utilities

Xcel Energy Utilities GroupXcel Energy Utilities Group

NSP (M)NSP (M) NSP (W)NSP (W) PSCoPSCo SPSSPS

TransmissionTransmissionExternal External AffairsAffairs

Resource Resource PortfolioPortfolio

Asset Asset ManagementManagement MarketingMarketing

People People –– Right People in Right Jobs Right People in Right Jobs

NSP (W)NSP (W)President & CEOPresident & CEO

Mike SwensonMike Swenson

PSCoPSCoPresident & CEOPresident & CEO

Pat VincentPat Vincent

SPSSPSPresident & CEOPresident & CEO

Gary GibsonGary Gibson

Paul BonaviaPaul BonaviaPresident President –– Utilities GroupUtilities Group

NSP (M)NSP (M)President & CEOPresident & CEO

Cyndi LesherCyndi Lesher

Executing The Operating Company PlansExecuting The Operating Company Plans

Regulators/Regulators/LegislatorsLegislators

Value toValue toCustomersCustomers

EnvironmentalEnvironmentalStewardshipStewardship

FinancialFinancialPerformancePerformance

Invest in Regulated Utility BusinessInvest in Regulated Utility Business