XEL_092805_color

Dick KellyPresident and CEOSeptember 28, 2005

Dick KellyPresident and CEOSeptember 28, 2005

Merrill LynchGlobal Power & Gas Leaders ConferenceMerrill LynchGlobal Power & Gas Leaders Conference

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

Strategy Strategy —— Building the CoreBuilding the Core

Invest in utility assets AND

Earn our allowed return on equity

Invest in utility assets AND

Earn our allowed return on equity

Investment FocusInvestment Focus

Customer service

Supply

Fuel mix

Transmission

Environment

Customer service

Supply

Fuel mix

Transmission

Environment

2005 2006 2007 2008 2009 Total20052005 20062006 20072007 20082008 20092009 TotalTotal

Base level capitalexpenditures $ 991 $ 917 $1,021 $ 929 $1,085 $4,943

Minnesota MERP 191 404 197 125 56 973Comanche 3 59 179 287 298 125 948Total $1,241 $1,500 $1,505 $1,352 $1,266 $6,864

Anticipated annualgrowth in averagerate base 4% 4% 7% 5% 2%

Base level capitalBase level capitalexpenditures expenditures $ 991$ 991 $ 917$ 917 $1,021$1,021 $ 929$ 929 $1,085$1,085 $4,943$4,943

Minnesota MERPMinnesota MERP 191191 404404 197197 125125 5656 973973Comanche 3 Comanche 3 5959 179179 287287 298298 125125 948948TotalTotal $1,241$1,241 $1,500$1,500 $1,505$1,505 $1,352$1,352 $1,266$1,266 $6,864$6,864

Anticipated annualAnticipated annualgrowth in averagegrowth in averagerate baserate base 4%4% 4%4% 7%7% 5%5% 2%2%

Capital Expenditure ForecastCapital Expenditure Forecast

Dollars in millionsDollars in millions

Drivers to Value Creation*Drivers to Value Creation*

Average rate base $10.5 B $13 B 4.4%Average rate base $10.5 B $13 B 4.4%

*All figures except 2004 depreciation are on an estimated regulatory basis,which differs from GAAP reporting. A reconciliation from GAAP reportingis shown in the appendix.


PotentialResult2009

PotentialResult2009

GrowthRate

2004-2009

GrowthRate

2004-200920042004


Average rate base $10.5 B $13 B 4.4%Regulatory equity ratio 50.4% 50 – 52%Equity rate base $5.3 B $6.5 – 6.76 B

Average rate base $10.5 B $13 B 4.4%Regulatory equity ratio 50.4% 50 – 52%Equity rate base $5.3 B $6.5 – 6.76 B



PotentialResult2009

PotentialResult2009

GrowthRate

2004-2009

GrowthRate

2004-200920042004


Average rate base $10.5 B $13 B 4.4%Regulatory equity ratio 50.4% 50 – 52%Equity rate base $5.3 B $6.5 – 6.76 BRegulatory return on equity 9.6% 10 – 11%

Average rate base $10.5 B $13 B 4.4%Regulatory equity ratio 50.4% 50 – 52%Equity rate base $5.3 B $6.5 – 6.76 BRegulatory return on equity 9.6% 10 – 11%



PotentialResult2009

PotentialResult2009

GrowthRate

2004-2009

GrowthRate

2004-200920042004


Average rate base $10.5 B $13 B 4.4%Regulatory equity ratio 50.4% 50 – 52%Equity rate base $5.3 B $6.5 – 6.76 BRegulatory return on equity 9.6% 10 – 11%Regulatory net income $506 M $650 – $744 M 5 – 8%Depreciation – Cash flow $735 M $910 M**Potential net income anddepreciation from regulatedoperations $1,241 M $1,560 – $1,654 M

Average rate base $10.5 B $13 B 4.4%Regulatory equity ratio 50.4% 50 – 52%Equity rate base $5.3 B $6.5 – 6.76 BRegulatory return on equity 9.6% 10 – 11%Regulatory net income $506 M $650 – $744 M 5 – 8%Depreciation – Cash flow $735 M $910 M**Potential net income anddepreciation from regulatedoperations $1,241 M $1,560 – $1,654 M


** Assumes depreciation grows at the same rate as rate base.


** Assumes depreciation grows at the same rate as rate base.

PotentialResult2009

PotentialResult2009

GrowthRate

2004-2009

GrowthRate

2004-200920042004

Regulatory, Legislative and Environmental Regulatory, Legislative and Environmental Support for Capital ExpendituresSupport for Capital Expenditures

Minnesota MERP rider

Comanche 3 decision — Forward CWIPand higher equity

Minnesota and Texas transmissioninvestment legislation

Minnesota MERP rider

Comanche 3 decision — Forward CWIPand higher equity

Minnesota and Texas transmissioninvestment legislation

Environmental InitiativesEnvironmental InitiativesEnvironmental Initiatives

60,000

64,000

68,000

72,000

76,000

80,000

84,000

2000 2001 2002 2003 2004

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

3.0

4.0

5.0

Nitrogen Oxide emissionsNitrogen Oxide emissionsNitrogen Oxide emissionsSulfur Dioxide emissionsSulfur Dioxide emissionsSulfur Dioxide emissions

Owned generation (GWh)Owned generation (GWh)Owned generation (GWh)

Renewable Energy SourcesRenewable Energy Sources

Hydro 1,885 MWWind 953 MWBiomass 95 MWSolar 40 KW

Total 2,933 MW

HydroHydro 1,885 MW1,885 MWWindWind 953 MW953 MWBiomassBiomass 95 MW95 MWSolarSolar 40 KW40 KW

TotalTotal 2,933 MW2,933 MW

TypeType Capacity Capacity *

* Owned and purchased** Nameplate rating** Owned and purchasedOwned and purchased**** Nameplate ratingNameplate rating

> 12% of 2004 system capacity> 12% of 2004 system capacity> 12% of 2004 system capacity

**

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

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

0

2

4

6

8

10

12

14

16

18

0

2

4

6

8

10

12

14

16

18 * 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

Rate Cases with Potential RevenueRate Cases with Potential RevenueIncreases Effective in 2006Increases Effective in 2006

Colorado Gas – Requested $34 million

Wisconsin Electric and Gas – Requested$48 million

Minnesota Electric

North Dakota Electric

Colorado Gas – Requested $34 million

Wisconsin Electric and Gas – Requested$48 million

Minnesota Electric

North Dakota Electric

Rate Cases with Potential RevenueRate Cases with Potential RevenueIncreases Effective in 2007Increases Effective in 2007

Colorado Electric

South Dakota Electric

Texas Electric

New Mexico Electric

Colorado Electric

South Dakota Electric

Texas Electric

New Mexico Electric

Funding the StrategyFunding the Strategy

Growing cash from operations

Tax loss carry-forward

Proceeds from asset sales

Financing:— Dividend reinvestment program— Modest debt issuance— No equity issuance necessary through 2006

Uncertain whether there is a need forpublic equity issuance in 2007 or 2008

Growing cash from operations

Tax loss carry-forward

Proceeds from asset sales

Financing:— Dividend reinvestment program— Modest debt issuance— No equity issuance necessary through 2006

Uncertain whether there is a need forpublic equity issuance in 2007 or 2008

2005 EPS Guidance 2005 EPS Guidance Continuing Operations*Continuing Operations*

Regulated utility $1.27 – 1.37Holding Company & other (0.09)Total earnings fromcontinuing operations $1.18 – 1.28

Regulated utility $1.27 – 1.37Holding Company & other (0.09)Total earnings fromcontinuing operations $1.18 – 1.28

2005 Guidance

2005 Guidance

* 2005 Guidance includes COLI tax benefits of 9 cents per share* 2005 Guidance includes COLI tax benefits of 9 cents per share

DividendDividend

Annual dividend increased by 3 centsMay 2005

Current annual dividend rate of 86 cents

Annual dividend increases consistentwith long-term earnings growth of 2 – 4%

Annual dividend increased by 3 centsMay 2005

Current annual dividend rate of 86 cents

Annual dividend increases consistentwith long-term earnings growth of 2 – 4%

Investing to meet the growing energyneeds of our region

Regulatory, legislative and environmental support for investment strategy

Deliver low-risk, competitive total return

Investing to meet the growing energyneeds of our region

Regulatory, legislative and environmental support for investment strategy

Deliver low-risk, competitive total return

Appendix

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 —June 2005

US 5.2%Xcel service area 4.2%

Job growth – 2005 ForecastXcel service area 2.4%

Xcel annual sales growth —2005-2009

Electric 2.0%Gas 1.2%

Unemployment rate —June 2005

US 5.2%Xcel service area 4.2%

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

Organizational StructureOrganizational Structure2004 Results2004 Results

Xcel Energy Inc.$527

RegulatedRegulated NonregulatedNonregulated

NorthernStatesPower

Company -Minnesota

NorthernStatesPower

Company -Wisconsin

PublicService

Company ofColorado

SouthwesternPublic

ServiceCompany

$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)

Rate Base Earned Auth- Equity2004 ROE orized Ratio

Average 2004 ROE 2004

Rate Base Earned Auth- Equity2004 ROE orized Ratio

Average 2004 ROE 2004

Rate Base and ReturnsRate Base and ReturnsDollars in millionsDollars in millions

Minnesota - Electric retail $2,992 10.73% (1) 11.47% 50.3%Minnesota - Gas retail 402 8.50 10.40 (2) 50.3North Dakota - Electric retail 166 10.80 12.00 50.3North Dakota - Gas retail 39 8.18 11.50 47.6Colorado - Electric retail 3,042 9.18 10.75 50.1Colorado - Gas retail 996 8.76 11.00 50.1Texas - Electric retail 889 9.39 11.50 48.7NSP (W) - Retail electric 538 NR 11.90 55.8NSP (W) - Retail gas 70 NR 11.90 55.8Non-reported 1.4 BTotal including non-reported 10.5 B

Minnesota - Electric retail $2,992 10.73% (1) 11.47% 50.3%Minnesota - Gas retail 402 8.50 10.40 (2) 50.3North Dakota - Electric retail 166 10.80 12.00 50.3North Dakota - Gas retail 39 8.18 11.50 47.6Colorado - Electric retail 3,042 9.18 10.75 50.1Colorado - Gas retail 996 8.76 11.00 50.1Texas - Electric retail 889 9.39 11.50 48.7NSP (W) - Retail electric 538 NR 11.90 55.8NSP (W) - Retail gas 70 NR 11.90 55.8Non-reported 1.4 BTotal including non-reported 10.5 B

(1) Projected 2005 ROE of 8.96% based on normal conditions. 2004 result reflects strong trading margins and change in decommissioning accrual.

(2) 2005 decision

(1) Projected 2005 ROE of 8.96% based on normal conditions. 2004 result reflects strong trading margins and change in decommissioning accrual.

(2) 2005 decision

NR: Non-reportableNR: Non-reportable

Reconciliation of Estimated Regulatory Reconciliation of Estimated Regulatory Reporting from GAAPReporting from GAAP

Common EquityCommon Equity

2004 GAAP common stockholder’s equity (1) $2,007 $433 $2,287 $781 $5,5072003 GAAP common stockholder’s equity (1) 1,809 425 2,140 814 5,188Average GAAP common stockholder’s equity 1,908 429 2,213 798 5,348Adjustments -5 -5 64 -11 43Adjusted average equity for purposes

of regulatory equity ratio $1,903 $424 $2,277 $787 $5,391

2004 GAAP common stockholder’s equity (1) $2,007 $433 $2,287 $781 $5,5072003 GAAP common stockholder’s equity (1) 1,809 425 2,140 814 5,188Average GAAP common stockholder’s equity 1,908 429 2,213 798 5,348Adjustments -5 -5 64 -11 43Adjusted average equity for purposes


NSP (M) NSP (W) PSCo SPS TotalNSP (M) NSP (W) PSCo SPS Total


DebtSource: 2004 Operating Company 10-K’sDebtSource: 2004 Operating Company 10-K’s

2004 GAAP total debt (1) (2) $2,032 $348 $2,502 $861 $5,7432003 GAAP total debt (1) (2) 2,003 337 1,845 825 5,010Average GAAP total debt 2,018 342 2,173 843 5,376Adjustments -140 -6 94 -16 -68Adjusted average debt for purposes


Regulatory equity ratio 50.4%

2004 GAAP total debt (1) (2) $2,032 $348 $2,502 $861 $5,7432003 GAAP total debt (1) (2) 2,003 337 1,845 825 5,010Average GAAP total debt 2,018 342 2,173 843 5,376Adjustments -140 -6 94 -16 -68Adjusted average debt for purposes


Regulatory equity ratio 50.4%


(1) Source: 2004 Operating Company 10-K’s (2) Consists of long-term debt, current portion of long-term debt and short-term debtSee note on the bottom of the following page for additional information

(1) Source: 2004 Operating Company 10-K’s (2) Consists of long-term debt, current portion of long-term debt and short-term debtSee note on the bottom of the following page for additional information

Reconciliation of Estimated Regulatory Reconciliation of Estimated Regulatory Reporting from GAAP Reporting from GAAP (Continued)(Continued)

Net IncomeNet Income

2004 GAAP net income (1) $230 $54 $218 $55 $557 Adjustments -25 -26 -51Adjusted net income for purposes of

regulatory net income $205 $54 $192 $55 $506

2004 GAAP net income (1) $230 $54 $218 $55 $557 Adjustments -25 -26 -51Adjusted net income for purposes of

regulatory net income $205 $54 $192 $55 $506

NSP (M) NSP (W) PSCo SPS TotalNSP (M) NSP (W) PSCo SPS TotalDollars in millionsDollars in millions

Depreciation & Amortization – Cash FlowsDepreciation & Amortization – Cash Flows

Financial results for regulatory reporting frequently differ from GAAP.Regulatory reporting includes the use of 12 and 13 month averages for capitalization, eliminates inter-company transactions, excludes non-regulated investments, includes or excludes revenues and or expenses associated with various recovery mechanisms and other factors, all of which may vary from one regulatory jurisdiction to another.

Financial results for regulatory reporting frequently differ from GAAP.Regulatory reporting includes the use of 12 and 13 month averages for capitalization, eliminates inter-company transactions, excludes non-regulated investments, includes or excludes revenues and or expenses associated with various recovery mechanisms and other factors, all of which may vary from one regulatory jurisdiction to another.

Estimated regulatory rate base ($10.5 B) x Regulatory equity ratio (50.4%)= Estimated equity rate base ($5.3 B)

Regulatory net income ($506 M) ÷ Estimated equity rate base ($5.3 B) = Estimated regulatoryreturn on equity (9.6%)

Estimated regulatory rate base ($10.5 B) x Regulatory equity ratio (50.4%)= Estimated equity rate base ($5.3 B)

Regulatory net income ($506 M) ÷ Estimated equity rate base ($5.3 B) = Estimated regulatoryreturn on equity (9.6%)

Calculation of Regulatory Net IncomeCalculation of Regulatory Net Income

2004 GAAP depreciationand amortization – cash flow (1) $352 $48 $234 $100 $735

2004 GAAP depreciationand amortization – cash flow (1) $352 $48 $234 $100 $735


(1) Source: 2004 Operating Company 10-K’s(1) Source: 2004 Operating Company 10-K’s

NSP NSP —— Minnesota Rate CasesMinnesota Rate Cases

North Dakota Gas Approved June $0.7 million increase

Minnesota Gas Approved July $5.8 million10.4% ROE increase

Minnesota Electric To be filed Winter 20052006 test yearInterim rates early 2006Decision Summer 2006

North Dakota To be filed Winter 2005Electric Interim rates early 2006

Decision Summer 2006South Dakota To be filed mid-2006Electric Decision 2007

North Dakota Gas Approved June $0.7 million increase

Minnesota Gas Approved July $5.8 million10.4% ROE increase

Minnesota Electric To be filed Winter 20052006 test yearInterim rates early 2006Decision Summer 2006

North Dakota To be filed Winter 2005Electric Interim rates early 2006

Decision Summer 2006South Dakota To be filed mid-2006Electric Decision 2007

PSCo Rate CasesPSCo Rate Cases

Colorado Gas Filed May 27Requested $34 million11% ROE55.49% common equityYear-end rate base Decision early 2006

Colorado Electric To be filed Spring 2006Decision early 2007

Colorado Gas Filed May 27Requested $34 million11% ROE55.49% common equityYear-end rate base Decision early 2006

Colorado Electric To be filed Spring 2006Decision early 2007

Wisconsin Electric and Gas Rate CaseWisconsin Electric and Gas Rate Case

Requested ROE 11.9%

Common equity ratio 56.32%

Electric requested: Revenue increase of $40.8 million

Gas requested: Revenue increase of $7.0 million

Rates expected to be in effect January 2006

Requested ROE 11.9%

Common equity ratio 56.32%

Electric requested: Revenue increase of $40.8 million

Gas requested: Revenue increase of $7.0 million

Rates expected to be in effect January 2006

SPS Rate CasesSPS Rate Cases

Texas Electric To be filed Summer 2006Decision 2007

New Mexico To be filed 2006 Electric Decision 2007

Texas Electric To be filed Summer 2006Decision 2007

New Mexico To be filed 2006 Electric Decision 2007

Capital Expenditures $6.9 BillionCapital Expenditures $6.9 Billion2005 2005 –– 20092009

Customer Additions27%

Customer Additions27%

Comanche 314%

Comanche 314%

MERP14%

MERP14%Generation

10%Generation

10%

Nuclear Fuel5%

Nuclear Fuel5%

Replace,Refurbish, Upgrade

15%

Replace,Refurbish, Upgrade

15%

Mandated, Safety & Other

15%

Mandated, Safety & Other

15%

Capital Expenditure ForecastCapital Expenditure Forecastby Operating Companyby Operating Company

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

2005 2006 2007 2008 20092005 2006 2007 2008 2009


NSP NSP —— Minnesota Operating CompanyMinnesota Operating CompanyCapital Expenditure ForecastCapital Expenditure ForecastDollars in millionsDollars in millions

MERP $191 $404 $197 $125 $ 56 $ 973Excluding MERP 454 428 516 446 549 2,393Total $645 $832 $713 $571 $605 $3,366

MERP $191 $404 $197 $125 $ 56 $ 973Excluding MERP 454 428 516 446 549 2,393Total $645 $832 $713 $571 $605 $3,366

2005 2006 2007 2008 2009 Total2005 2006 2007 2008 2009 Total

MERP $ 973Transmission 459Nuclear fuel 336Balance of electric 1,250Gas 188Common 160Total $3,366

MERP $ 973Transmission 459Nuclear fuel 336Balance of electric 1,250Gas 188Common 160Total $3,366

PSCo Operating CompanyPSCo Operating CompanyCapital Expenditure ForecastCapital Expenditure Forecast

Comanche 3 $ 948Transmission 280Balance of electric 809Gas 438Common 98Thermal 16Non-utility 7Total $2,596

Comanche 3 $ 948Transmission 280Balance of electric 809Gas 438Common 98Thermal 16Non-utility 7Total $2,596


Comanche 3 $ 59 $179 $287 $298 $125 $ 948Excl. Comanche 3 366 320 306 293 363 1,648Total $425 $499 $593 $591 $488 $2,596

Comanche 3 $ 59 $179 $287 $298 $125 $ 948Excl. Comanche 3 366 320 306 293 363 1,648Total $425 $499 $593 $591 $488 $2,596

2005 2006 2007 2008 2009 Total2005 2006 2007 2008 2009 Total

SPS Operating CompanySPS Operating CompanyCapital Expenditure ForecastCapital Expenditure ForecastDollars in millionsDollars in millions

Total $111 $90 $124 $116 $105 $546Total $111 $90 $124 $116 $105 $5462005 2006 2007 2008 2009 Total2005 2006 2007 2008 2009 Total

Transmission $140Balance of electric 406Total electric $546

Transmission $140Balance of electric 406Total electric $546

NSP NSP —— Wisconsin Operating CompanyWisconsin Operating CompanyCapital Expenditure ForecastCapital Expenditure ForecastDollars in millionsDollars in millions

Total $60 $79 $75 $74 $68 $356Total $60 $79 $75 $74 $68 $3562005 2006 2007 2008 2009 Total2005 2006 2007 2008 2009 Total

Transmission $ 73Balance of electric 200Gas 45Common 38Total $356

Transmission $ 73Balance of electric 200Gas 45Common 38Total $356

Capital expendituresCurrent year $191 $404 $197 $125 $56Cumulative $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

Capital expendituresCurrent year $191 $404 $197 $125 $56Cumulative $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 Minnesota MERP —— Potential EarningsPotential EarningsDollars in millionsDollars in millions

2005 2006 2007 2008 20092005 2006 2007 2008 2009

Capital expendituresCurrent year $59 $179 $287 $298 $125Cumulative $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

Capital expendituresCurrent year $59 $179 $287 $298 $125Cumulative $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 Comanche 3 —— Potential EarningsPotential EarningsDollars in millionsDollars in millions

2005 2006 2007 2008 20092005 2006 2007 2008 2009

Energy Supply Mix Energy Supply Mix —— 20042004Owned and PurchasedOwned 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 lowAnnual consumption: 32 Million tons of low--sulfur, sulfur, lowlow--mercury western coalmercury western coal

Senior Debt RatingsSenior Debt Ratings

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

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

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

CompanyCompany--Owned Life Insurance (COLI)Owned Life Insurance (COLI)

IRS dispute over tax deductibility of COLI— $350 million potential exposure for tax

and interest— $65 million potential exposure for penalties— 2005 guidance includes $40 million tax benefit

or 9 cents per share for COLI— It will potentially take several years to resolve

Potential FASB financial reporting issue— Exposure draft issued on uncertain tax positions— Impacts financial reporting not cash flows

IRS dispute over tax deductibility of COLI— $350 million potential exposure for tax

and interest— $65 million potential exposure for penalties— 2005 guidance includes $40 million tax benefit

or 9 cents per share for COLI— It will potentially take several years to resolve

Potential FASB financial reporting issue— Exposure draft issued on uncertain tax positions— Impacts financial reporting not cash flows

XEL_092805_color

Economy & Finance

equity rate base

b regulatory return

average rate base

regulatory equity ratio

comparison rate

rate cases

estimated regulatory

retail electric rate