Strategy Is On TrackStrategy Is On TrackStrategy Is On Track

Fixed Income Investor MeetingsFixed Income Investor MeetingsBoston and New York City Boston and New York City

February 25, 2009February 25, 2009

This material includes forwardThis material includes forward--looking statements that are subject to looking statements that are subject to certain risks, uncertainties and assumptions. Such forwardcertain risks, uncertainties and assumptions. Such forward--looking looking statements include projected earnings, cash flows, capital statements include projected earnings, cash flows, capital expenditures and other statements and are identified in this docexpenditures and other statements and are identified in this document ument by the words by the words ““anticipate,anticipate,”” ““estimate,estimate,”” ““expect,expect,”” ““projected,projected,””““objective,objective,”” ““outlook,outlook,”” ““possible,possible,”” ““potentialpotential”” and similar and similar expressions. Actual results may vary materially. Factors that expressions. Actual results may vary materially. Factors that could could cause actual results to differ materially include, but are not lcause actual results to differ materially include, but are not limited to: imited to: general economic conditions, including the availability of credigeneral economic conditions, including the availability of credit, t, actions of rating agencies and their impact on capital expendituactions of rating agencies and their impact on capital expenditures; res; business conditions in the energy industry; competitive factors;business conditions in the energy industry; competitive factors;unusual weather; effects of geopolitical events, including war aunusual weather; effects of geopolitical events, including war and acts nd acts of terrorism; changes in federal or state legislation; regulatioof terrorism; changes in federal or state legislation; regulation; actions n; actions of accounting regulatory bodies; and other risk factors listed fof accounting regulatory bodies; and other risk factors listed from rom time to time by Xcel Energy in reports filed with the SEC, inclutime to time by Xcel Energy in reports filed with the SEC, including ding Exhibit 99.01 to Xcel EnergyExhibit 99.01 to Xcel Energy’’s report on Form 10s report on Form 10--K for year 2007.K for year 2007.

Safe HarborSafe Harbor

Strategy and ObjectivesStrategy and Objectives

Grow our core business andGrow our core business andmeet the environmental challengemeet the environmental challenge

Achieve longAchieve long--term annual EPS growth of 5% term annual EPS growth of 5% –– 7%7%Increase dividend by 2% Increase dividend by 2% –– 4% annually4% annuallySenior unsecured ratings in BBB+ to A rangeSenior unsecured ratings in BBB+ to A rangeReduce emissions by 2020Reduce emissions by 2020

StrengthsStrengths

Strong liquidityStrong liquidity

Balance sheet strengthBalance sheet strength

Solid credit qualitySolid credit quality

Constructive regulatory relationshipsConstructive regulatory relationships

Safe, secure and growing dividendSafe, secure and growing dividend

Good growth prospectsGood growth prospects

We are positioned to execute our strategy We are positioned to execute our strategy ––despite economic headwindsdespite economic headwinds

Solid Liquidity Solid Liquidity Solid Liquidity

Hold Co. $ 772 $ 304 $ 3 $ 307NSPM 482 476 36 512PSCo 675 670 52 722SPS 248 238 248 486Other 0 0 81 81Total $2,177 $1,688 $ 420 $2,108

Hold Co.Hold Co. $ 772$ 772 $ 304$ 304 $ 3$ 3 $ 307$ 307NSPMNSPM 482482 476476 3636 512512PSCoPSCo 675675 670670 5252 722722SPSSPS 248248 238238 248248 486486Other Other 00 00 8181 8181TotalTotal $2,177$2,177 $1,688 $1,688 $ 420 $ 420 $2,108$2,108

Credit TotalLines Available Cash LiquidityCreditCredit TotalTotalLinesLines AvailableAvailable CashCash LiquidityLiquidity

Dollars in millions as of February 19, 2009Dollars in millions as of February 19, 2009Dollars in millions as of February 19, 2009

As of December 31, 2008As of December 31, 2008

EquityEquity $ 6,964$ 6,964 44%44%Preferred EquityPreferred Equity 105105 1%1%Current Portion LT DebtCurrent Portion LT Debt 559559 3%3%ShortShort--term Debtterm Debt 455455 3%3%LongLong--term Debt * term Debt * 7,7327,732 49%49%Total CapitalizationTotal Capitalization $15,815$15,815 100%100%

Strong Balance SheetStrong Balance Sheet

MillionsMillions PercentPercent

* Long-term debt includes $400 million of hybrid securities which receives50% equity treatment from the rating agencies.

Solid Credit RatingsSolid Credit Ratings

Hold Co. – – – BBB+ Baa1 BBBNSPM A+ A2 A A A3 BBB+NSPW A+ A2 A A A3 A-PSCo A A3 A A– Baa1 BBB+SPS – – – BBB+ Baa1 BBB+

Hold Co.Hold Co. –– –– –– BBB+BBB+ Baa1Baa1 BBBBBBNSPMNSPM A+A+ A2A2 A A AA A3A3 BBB+BBB+NSPWNSPW A+A+ A2 A2 A A AA A3A3 AA--PSCoPSCo AA A3A3 A A AA–– Baa1Baa1 BBB+BBB+SPSSPS –– –– –– BBB+BBB+ Baa1Baa1 BBB+BBB+

Fitch Moody’s S&P Fitch Moody’s S&P *Fitch Moody’s S&P Fitch Moody’s S&P *SecuredSecured UnsecuredUnsecured

* S&P upgraded the unsecured ratings for NSPM, NSPW and PSCoon November 5, 2008

Manageable Debt MaturitiesManageable Debt Maturities

$0

$200

$400

$600

$800

$1,000

$1,200

2009 2010 2011 2012 2013 2014 2015

SPSPSCoNSPWNSPMXcel Energy

Dollars in millionsDollars in millionsDollars in millions

Pension FundingPension Funding

Fair value of pension assetsFair value of pension assets $2,185$2,185 $3,186$3,186Projected benefit obligationProjected benefit obligation 2,5982,598 2,6622,662Funded statusFunded status $(413)$(413) $524$524Funded status %Funded status % 84%84% 120%120%

Dollars in millions at year-endDollars in millions at yearDollars in millions at year--endend 20082008 20072007

Potential ContributionsPotential Contributions2009: $70 million to $130 million2009: $70 million to $130 million2010: $150 million to $250 million2010: $150 million to $250 million

Discount rateDiscount rate 6.75%6.75% 6.25%6.25%Expected longExpected long--term rate of returnterm rate of return 8.508.50 8.758.75

Pension AssumptionsPension Assumptions 20092009 20082008

2009 2010 2011 2012

Other Nuclear Fuel GasElectric Distribution Electric Transmission Electric GenerationWind

Capital Forecast Capital Forecast Dollars in millionsDollars in millions

$1,800$1,800$2,300$2,300 $2,350$2,350 $2,350$2,350

Potential Cash from Operations Potential Cash from Operations

** Assumes Net Income growth based on middle of range

0

400

800

1,200

1,600

2,000

2,400

2009 2010 2011 2012Net Income * Depreciation NOL

Dollars in millions

Modest Financing Needs in 2009Modest Financing Needs in 2009

NSPM $400 million of first mortgage bondsNSPM $400 million of first mortgage bonds

PSCo $400 million of first mortgage bonds PSCo $400 million of first mortgage bonds

Both companies are Both companies are ““AA”” rated for secured debt rated for secured debt

Minnesota Electric Rate CaseMinnesota Electric Rate Case

Filed November 3, 2008Filed November 3, 2008

2009 forward test year2009 forward test year

Seeking rate increase of $156 million or 6.1%Seeking rate increase of $156 million or 6.1%—— Electric rate base of $4.1 billionElectric rate base of $4.1 billion—— Requested ROE of 11.0%Requested ROE of 11.0%—— Equity ratio of 52.5%Equity ratio of 52.5%

Commission approved interim rates of $132 million Commission approved interim rates of $132 million effective January 2009, subject to refundeffective January 2009, subject to refund

Decision expected fall/winter 2009Decision expected fall/winter 2009

2009 Colorado Electric Rate Case 2009 Colorado Electric Rate Case

Filed November 14, 2008Filed November 14, 2008

2009 forward test year2009 forward test year

Seeking a rate increase of $174 million or 7.4%Seeking a rate increase of $174 million or 7.4%—— Electric rate base of $4.1 billionElectric rate base of $4.1 billion—— Requested ROE of 11%Requested ROE of 11%—— Equity ratio of 58%Equity ratio of 58%

Decision expected summer 2009Decision expected summer 2009

PartialPartial--year revenue increase beginning in Julyyear revenue increase beginning in July

Colorado Electric Rate Case Colorado Electric Rate Case IntervenorIntervenor RecommendationsRecommendations

Staff Recommendation:Staff Recommendation:—— $110.3 million based on a forward test year $110.3 million based on a forward test year

$69.9 million to be effective in July 2009 $69.9 million to be effective in July 2009 $40.4 million effective in January 2010$40.4 million effective in January 2010

—— ROE of 10.37%ROE of 10.37%—— Equity ratio of 58.08%Equity ratio of 58.08%

Office of Consumer CouncilOffice of Consumer Council Recommendation:Recommendation:—— $3.8 million increase based on a historic test year$3.8 million increase based on a historic test year—— ROE of 9.75% ROE of 9.75% —— Equity ratio of 53%Equity ratio of 53%

Expected filing April 2009Expected filing April 2009

2010 forward test year2010 forward test year

Purpose is to recover costs associated with major Purpose is to recover costs associated with major plan investments, including fullplan investments, including full--year costs for year costs for Comanche and Ft. St. Comanche and Ft. St. Vrain Vrain and other 2010 costsand other 2010 costs

Decision expected winter 2009Decision expected winter 2009

FullFull--year revenue increase in 2010year revenue increase in 2010

2010 Colorado Electric Rate Case 2010 Colorado Electric Rate Case

New Mexico Electric Rate CaseNew Mexico Electric Rate Case

Filed December 18, 2008Filed December 18, 2008

Historic test year based on yearHistoric test year based on year--ending June 2008ending June 2008

Seeking rate increase of $24.6 million or 5.1%Seeking rate increase of $24.6 million or 5.1%—— Electric rate base of $321 millionElectric rate base of $321 million—— Requested ROE of 12.0%Requested ROE of 12.0%—— Equity ratio of 50%Equity ratio of 50%

Seeking interim rates of $7.6 million for Lea Power Seeking interim rates of $7.6 million for Lea Power capacity contractcapacity contract

Recent Rate Case Outcomes Recent Rate Case Outcomes

Texas Electric * $94.4 $57.4 11.25% N/A Wisconsin Electric $10.0 $5.6 11.0% 10.75%North Dakota $17.9 $12.8 11.5% 10.75%

* Settlement pending commission approval

Texas Electric Texas Electric ** $94.4$94.4 $57.4$57.4 11.25% N/A 11.25% N/A Wisconsin ElectricWisconsin Electric $10.0$10.0 $5.6$5.6 11.0%11.0% 10.75%10.75%North DakotaNorth Dakota $17.9$17.9 $12.8$12.8 11.5%11.5% 10.75%10.75%

* Settlement pending commission approval* Settlement pending commission approval

Dollar IncreaseDollar Increase Return on EquityReturn on EquityRequested GrantedRequested Granted Requested GrantedRequested Granted

Dollars in millionsDollars in millions

Delivering on Rate Base GrowthDelivering on Rate Base Growth

$13.7$13.7 $14.4$14.4$15.6$15.6

2008 2008 2009 2009 2010 2010

$16.8$16.8

2011 2011

CAGR = 7.4%CAGR = 7.4%$17.9$17.9

2012 2012

Dollars in millionsDollars in millions

* Ongoing EPS excludes the impacts of COLI and disc ops.* Ongoing EPS excludes the impacts of COLI and disc ops.A reconciliation to GAAP earnings is included in the appendixA reconciliation to GAAP earnings is included in the appendix

** Estimated CAGR is based on middle of 2009 guidance range** Estimated CAGR is based on middle of 2009 guidance range

Financial ExecutionFinancial ExecutionDelivering on 5 Delivering on 5 –– 7% EPS Growth7% EPS Growth

$1.15$1.15$1.30$1.30

$1.43$1.43

2005 2005 Ongoing *Ongoing *

2006 2006 Ongoing *Ongoing *

2007 2007 Ongoing *Ongoing *

Guidance RangeGuidance Range

2008 2008 Ongoing *Ongoing *

2005 2005 –– 2009 CAGR = 6.9% 2009 CAGR = 6.9% **** $1.45$1.45––$1.55$1.55

2009 2009 GuidanceGuidance

$1.45$1.45

Financial ExecutionFinancial ExecutionDelivering 2 Delivering 2 –– 4% Dividend Growth 4% Dividend Growth

$0.95$0.92$0.89$0.86$0.83

2004 2005 2006 2007 2008

2004 2004 –– 2008 CAGR = 3.4%2008 CAGR = 3.4%

Annualized dividend per shareAnnualized dividend per share

Key TakeKey Take--AwaysAwaysOur strategy remains unchanged and on trackOur strategy remains unchanged and on trackConstructive regulatory environmentConstructive regulatory environmentModest financing needs in 2009Modest financing needs in 2009

We have the liquidity and balance sheetWe have the liquidity and balance sheetto finance our rate base growth strategyto finance our rate base growth strategy

We are wellWe are well--positioned to execute ourpositioned to execute ourbusiness planbusiness plan

We offer an attractive total return, based onWe offer an attractive total return, based onA longA long--term annual EPS growth objective of 5% term annual EPS growth objective of 5% –– 7%7%A dividend yield of approximately 5.3%A dividend yield of approximately 5.3%

AppendixAppendix

Ongoing Earnings $1.15 $1.30 $1.43 $1.45PSRI/COLI 0.05 0.05 (0.08) 0.01Continuing Operations $1.20 $1.35 $1.35 $1.46Disc Ops 0.03 0.01 – –GAAP Earnings $1.23 $1.36 $1.35 $1.46

Ongoing EarningsOngoing Earnings $1.15 $1.15 $1.30$1.30 $1.43$1.43 $1.45$1.45PSRI/COLIPSRI/COLI 0.050.05 0.050.05 (0.08)(0.08) 0.010.01Continuing OperationsContinuing Operations $1.20$1.20 $1.35$1.35 $1.35$1.35 $1.46$1.46Disc OpsDisc Ops 0.030.03 0.01 0.01 –– ––GAAP EarningsGAAP Earnings $1.23$1.23 $1.36$1.36 $1.35$1.35 $1.46$1.46

Reconciliation Reconciliation –– Ongoing EPS to GAAP Ongoing EPS to GAAP

2007 2008 20072007 2008 2008 Dollars per shareDollars per share

200620062006200520052005

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.

As a result of the termination of the COLI program, Xcel EnergyAs a result of the termination of the COLI program, Xcel Energy’’s management s management believes that ongoing earnings provide a more meaningful comparibelieves that ongoing earnings provide a more meaningful comparison of earnings son of earnings results between different periods in which the COLI program was results between different periods in which the COLI program was in place and is in place and is more representative of Xcel Energymore representative of Xcel Energy’’s fundamental core earnings power. s fundamental core earnings power. Xcel EnergyXcel Energy’’s management uses ongoing earnings internally for financial plans management uses ongoing earnings internally for financial planning ning and analysis, for reporting of results to the Board of Directorsand analysis, for reporting of results to the Board of Directors, in determining , in determining whether performance targets are met for performancewhether performance targets are met for performance--based compensation,based compensation,and when communicating its earnings outlook to analysts and inveand when communicating its earnings outlook to analysts and investors.stors.

Capital ExpendituresCapital Expendituresby Operating Companyby Operating Company

NSPMNSPM $ 880$ 880 $1,340$1,340 $1,410$1,410 $1,350$1,350

PSCoPSCo 610610 600600 600600 710710

SPSSPS 210210 245 245 205 205 195195

NSPWNSPW 100100 115 115 135135 9595

TotalTotal $1,800$1,800 $2,300$2,300 $2,350$2,350 $2,350$2,350

Dollars in millionsDollars in millions

20092009 20102010 20112011 20122012

Capital Expenditure ForecastCapital Expenditure Forecast

Dollars in millionsDollars in millionsDollars in millions Denotes enhanced recovery mechanismDenotes enhanced recovery mechanismDenotes enhanced recovery mechanism20092009 20102010 20112011 20122012

Base & Other Base & Other $1,305$1,305 $1,500$1,500 $1,520$1,520 $1,665$1,665Nuclear Capacity/Life ExtNuclear Capacity/Life Ext 130130 170170 185185 150150Comanche 3Comanche 3 130130 1515 00 00MN Wind GenerationMN Wind Generation 110110 420420 370370 00MN Wind Tran/CapX 2020MN Wind Tran/CapX 2020 6060 165165 240240 485485MERPMERP 3030 1010 00 00Fort St. Fort St. Vrain Vrain CTCT 2525 00 00 00Sherco UpgradeSherco Upgrade 1010 2020 3535 5050Total Total $1,800$1,800 $2,300$2,300 $2,350$2,350 $2,350$2,350

Minnesota Recovery MechanismsMinnesota Recovery Mechanisms

Forward test year with interim ratesForward test year with interim ratesMERP riderMERP riderTransmission riderTransmission riderConservation improvement program riderConservation improvement program riderMercury reduction & environmentalMercury reduction & environmentalimprovement riderimprovement riderRDF riderRDF riderState energy policy riderState energy policy riderFuel clause adjustment Fuel clause adjustment Purchased gas adjustmentPurchased gas adjustment

Colorado Recovery MechanismsColorado Recovery Mechanisms

Ability to file either historic or forecast test yearsAbility to file either historic or forecast test yearsPurchased capacity cost adjustmentPurchased capacity cost adjustmentComanche 3 Comanche 3 -- forward CWIP via general rate caseforward CWIP via general rate caseTransmission riderTransmission riderRenewable energy riderRenewable energy riderDemandDemand--side management cost adjustment riderside management cost adjustment riderAir quality improvement riderAir quality improvement riderEnergy cost adjustmentEnergy cost adjustmentNatural gas cost adjustmentNatural gas cost adjustmentPartial decoupling on retail natural gas Partial decoupling on retail natural gas

SPS Recovery MechanismsSPS Recovery Mechanisms

Historic test year (Texas & New Mexico)Historic test year (Texas & New Mexico)

Texas fixed fuel factor recoveryTexas fixed fuel factor recovery

New Mexico fuel clause adjustmentNew Mexico fuel clause adjustment

Ability to establish interim rates through rate case Ability to establish interim rates through rate case to recover capacity costs associated the Lea Power to recover capacity costs associated the Lea Power contract (Texas)contract (Texas)

Wisconsin Recovery MechanismsWisconsin Recovery Mechanisms

Forward test yearForward test year

Ability to file for prospective fuel & purchase Ability to file for prospective fuel & purchase energy adjustments (Wisconsin)energy adjustments (Wisconsin)

Fuel clause adjustment Fuel clause adjustment –– wholesalewholesale

Purchased gas adjustment Purchased gas adjustment

Fuel clause factor (Michigan retail)Fuel clause factor (Michigan retail)

DakotaDakota’’s Recovery Mechanismss Recovery Mechanisms

Forward test year with interim rates (ND)Forward test year with interim rates (ND)

Historic test year (SD)Historic test year (SD)

Environmental rider (ND & SD)Environmental rider (ND & SD)

Transmission rider (ND & SD)Transmission rider (ND & SD)

Fuel clause adjustment (ND & SD)Fuel clause adjustment (ND & SD)

Full decoupling on retail natural gas (ND)Full decoupling on retail natural gas (ND)

2007 Rate Base and ROE2007 Rate Base and ROE

Minnesota ElectricMinnesota Electric $4,054$4,054 11.02%11.02%Minnesota GasMinnesota Gas 456456 7.747.74North Dakota ElectricNorth Dakota Electric 202202 2.962.96North Dakota GasNorth Dakota Gas 4444 7.667.66South Dakota ElectricSouth Dakota Electric 251251 9.289.28Colorado ElectricColorado Electric 3,5693,569 10.0910.09Colorado GasColorado Gas 1,0961,096 10.4510.45Wisconsin ElectricWisconsin Electric 554554 8.338.33Wisconsin GasWisconsin Gas 7777 8.598.59Texas ElectricTexas Electric 940940 4.614.61**New Mexico ElectricNew Mexico Electric**** 276276 2.242.24**WholesaleWholesale 982 Not Reported982 Not ReportedTotal Rate Base $12,501Total Rate Base $12,501

Weather NormalizedRate Base Earned ROE

Weather NormalizedWeather NormalizedRate BaseRate Base Earned ROEEarned ROE

Dollars in millionsDollars in millions

* Texas and New Mexico * Texas and New Mexico ROEsROEs are actual earned, not weather normalizedare actual earned, not weather normalized** Results impacted by fuel disallowance** Results impacted by fuel disallowance