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Edison Electric Institute Financial Conference
            October 26-29, 2003

                                          Xcel Energy Inc.
                                          800 Nicollet Mall
                                          Minneapolis, Minnesota 55402
                                          www.xcelenergy.com
Safe Harbor
This material includes forward-looking statements that are subject to
certain risks, uncertainties and assumptions. Such forward-looking
statements include statements regarding projected earnings, cash
flows, capital expenditures and other statements that are intended to be
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; changes in
federal or state legislation; regulation; risks associated with the California
power market; currency translation and transaction adjustments; the higher
degree of risk associated with Xcel Energy’s nonregulated businesses
compared with Xcel Energy’s regulated business; the failure to realize
expectations regarding the NRG settlement agreement; emerge from
bankruptcy in 2003; financial conditions of NRG; actions by the bankruptcy
court in NRG’s bankruptcy case; and the 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 2002.
                                                                                 2
Wayne Brunetti
Chairman and Chief Executive Officer
Significant Accomplishments — 2003
Reached settlement with NRG creditors
Maintained investment grade bond rating
Completed Colorado rate case
Received approval for continued operation
of Prairie Island nuclear plant
Refinanced $1.6 billion of debt, saving over
$20 million in annual interest expense
Utilities achieved solid results for first nine
months of 2003
                                                  4
Xcel Energy Strengths
Operate utility assets well; outstanding generation
Growing service area
Fair regulation
Forward-looking policy makers
Low rates
Increasing financial strength
Strong environmental record


                                                      5
Objectives
Invest additional capital in utility business
Provide competitive returns to shareholders
Improve credit ratings




                                                6
Invest Additional Capital
Core utility capital investment of $900 to $950 million/year

 Committed Incremental Capital Additions

       Nuclear steam generator replacement
       Targeted distribution reliability upgrades

 Prospective Capital Additions

       Minnesota Metro Emission Reduction Program
       Potential Colorado coal plant

                                                               7
Provide Competitive Total Return

Earnings Growth               2 – 3% per year
Dividend Yield – Current      4.8%
Dividend Growth               To be reviewed
Elimination of NRG Overhang




                                                8
Regulatory Strategy
  Matching expenditures with cost recovery:

Present    Conservation and DSM rider
           Renewable Resource rider
           Colorado ECA mechanism
           Denver Metro Emissions rider
Future     Minnesota Metro Emissions rider
           Colorado Purchased Capacity rider
           Transmission (renewable) rider
           Colorado Resource addition

File rate cases when necessary
                                               9
Dividend Policy

Dividend policy to be addressed in June 2004,
after final NRG settlement payment
Issues to be considered
— Cash from operations
— Level of utility capital expenditures
— Dividend payout ratio
— Credit rating implications
Potential dividend payout ratio bandwidth 60 – 75%



                                                     10
Credit Rating Objectives

Holding Company       BBB+ to BBB


  Operating Utility    A Range




                                    11
Priorities
Complete resolution of NRG
Payment of delayed dividend
Meet earnings per share objective
Establish dividend policy
Improve credit ratings
Implement timely cost recovery mechanisms
Reduce exposure to non-core businesses


                                            12
Dick Kelly
President and Chief Operating Officer
NRG Bankruptcy Timetable

October 8        FERC approved transfer of
                 NRG assets
October 10       SEC approved mailing NRG’s
                 Reorganization Plan
October 15       NRG’s Reorganization Plan
                 distributed to creditors
November 12      Votes on Reorganization Plan due
November 21/24   Confirmation hearing scheduled
                 on NRG’s Reorganization Plan
Prior to         NRG expected to emerge from
December 15      bankruptcy

                                                    14
Tax Benefits Associated with NRG

Total tax benefit of approximately $1.1 billion
Tax refund of $355 million – Spring 2004
NOL of $720 million realized at approximately
$125 million annually from 2003-2008




                                                  15
Projected Retained Earnings
                Year-end 2003
Millions of Dollars

Retained Earnings Balance (9/30/2003)                      $ 43
Earnings October – December*                                 100
Tax Benefit of Settlement Payments**                         260
Reversal of Negative Investment in NRG**                     106
Dividend Declaration**                                       (152)
Projected Year-End Retained Earnings                       $ 357

 * For illustration, assumes earnings at the low-end of guidance range
 ** Assumes NRG emerges from bankruptcy prior to year-end 2003
                                                                         16
2003 Earnings Guidance
Dollars per Share
                                     EPS Range
Utility Operations                  $1.25 – $1.30
Holding Company Financings              (0.09)
Seren                                   (0.05)
Other Nonregulated Subsidiaries          0.04
Xcel Energy — Pro forma             $1.15 – $1.20
Xcel Energy Share of NRG’s Losses      (0.62)
Tax Benefits Associated with NRG        0.90
Gain on Sale of Viking Gas              0.05
Xcel Energy — GAAP                  $1.48 – $1.53


                                                    17
2004 Earnings Drivers and Assumptions
   NRG emerges from bankruptcy in 2003
   Weather adjusted retail sales growth of 2.2%
   for electric and 2.4% for gas
   Successful recovery of Colorado capacity cost
   increases
   Short-term wholesale and trading margin equivalent
   to projected 2003 levels
   Operating and maintenance expenses
   increasing 2 – 3% over projected 2003 levels
   Effective tax rate approximately 31%
   Common stock and equivalents of 425 million shares
                                                        18
2004 Earnings Guidance
Dollars per Share

                              EPS Range
Utility Operations           $1.25 – $1.32
Holding Company Financings      (0.08)
Nonregulated Subsidiaries    (0.02) – 0.01

Xcel Energy                  $1.15 – $1.25




                                             19
Regulated Utility Potential Earnings
Dollars in Millions                 Authorized
                                Return         Net
                  Equity*      on Equity     Income
NSPM       $1,762        11.47%         $202
NSPW          419        11.90            50
PSCo        1,965        10.85           213
SPS           783        11.50            90
Total      $4,929                       $555
Common Stock and Equivalents: 425 million shares

 Utility EPS at Authorized ROE Levels: $1.31
* Equity as of June 30, 2003
                                                      20
Projected Cash Flow
Dollars in Millions
Sources                                  2003     2004            2005
Cash from Operations                    $1,300 >$1,300           >$1,300
Avoided Tax Payment/Refund                 125       480             125
Citadel Greenshoe Option                    58
Dividend Reinvestment                       20
                                        $1,503 * >$1,780
   Total Sources                                                 >$1,425

Uses
Capital Expenditures                    $ 932        $1,200       $1,200
Current Dividend Payment Rate             300           300          300
NRG Settlement                                          752
  Total Uses                            $1,232       $2,252       $1,500
* Excludes $467 million of Xcel Energy cash on hand as of October 15, 2003
                                                                             21
Xcel Energy Investment Merits
Low risk, integrated utility
Transparent business model
No restructuring anticipated
Constructive regulation
Improving credit profile
Total return 7 – 8%



                                22
xel_102303b
Appendix




           24
Financial Summary
Dividend Yield                             4.8%
Earnings Growth                       2 - 3% per year
Dividend Payout Ratio – Current          60 - 65%
Market Capitalization                   $6 billion
Trading Volume                    >1 million shares daily
Institutional Ownership                    42%
 (Excludes 5% Employee
  Ownership)
Bond Ratings                            Moody’s         S&P
 Holding Co. (Unsecured Debt)             Baa3          BBB-
 Operating Utilities (Secured Debt)     A3 to Baa1      BBB+
                                                               25
Forecast
        Customers (Millions)
                                 Annual
          Electric   Gas       Growth Rate
PSCo       1.3       1.2         1.9%
NSPM       1.4       0.4         1.5
                                                        Minneapolis/St. Paul
NSPW       0.2       0.1         1.8
                                                        Minnesota
SPS        0.4       —           0.3
Total      3.3       1.7         1.6%
                                          Denver
                                          Colorado
                                             Amarillo
                                             Texas
                                   Generating
                                   Plants
Balanced Power Supply

2003 Energy (Projected)       2003 Capacity
                           Owned
                          Generation
       Nuclear     Coal
                            72%
        12%        51%
Purchases
   24%
                                              > 5 Yrs
                                               21%

                                            1- 5 Yrs
    Other
                                               4%
     2%   Gas                          < 1 Yr    Contracted
                                        3%
          11%                                    Purchases
                                                     28%


                                                              27
Retail Electric Rate* Comparison
              Central US
                            *EEI typical bills – Winter 2002
     Cents per Kwh
 8


                     5.84 5.85
 6
     4.42
 4


 2


 0
                               l
       illo City City nver Pau ouis ines ago kee enix
   ar e                                         u
                                      o
                 s                                  o
                     De /St. St. L s M  hic ilwa Ph
  m ak        sa
A            n                          CM
   l t L Ka            pls       De
 Sa                  M
                                                               28
2002 Generation Production Cost
  S&P Electric Index Companies
     Dollars per Mwh
60

50

40

30

         $21.39
20

10

0
        Xcel Energy
                       Source: Platts Powerdat
                                                 29
Fossil Generation*
  Equivalent Forced Outage Rate
Percent of Time


  4.6%
                  4.1%   3.8%

                                2.8%       2.8%




 1999        2000        2001   2002      2003
                                       YTD June 30
* Greater than 100 Mw                                30
Sulfur Dioxide and Nitrogen Oxide
             Emission Rates
    Pounds per Mwh
6
                                        Sulfur Dioxide Emission Rate
                                        Nitrogen Oxide Emission Rate
5

4

3

2

1

0
      1997    1998    1999       2000     2001      2002      2003*
    * Estimated emission rates                                         31
Minnesota Metro Emission
         Reduction Proposal
                             Net Dependable
                            Capacity Increase
Coal to gas conversion
 — High Bridge                   272 Mw
 — Riverside                      79
Refurbish
 — King (coal-fired plant)        60
        Total                    411 Mw
Emission reduction
 — SO2                                36,000 tons/year
 — NOX                                29,000 tons/year
Capital expenditures                 $1 billion 2005-2009
Contingent on approval of cost
recovery through rate rider mechanism
                                                            32
Colorado Resource Plan

1,600 Mw of new generation required by 2013
Growing Colorado load requires more
base-load generation
Resource Plan will explore variety of options
Coal generation reduces price volatility
500 – 750 Mw plant at existing site — Potential
for multiple owners



                                                  33
2004 Utility Capital Expenditures

Customer Additions
                     Replace/Refurbish
      35%
                           31%




                           Upgrade/
         Other           Modernization
         23%                 11%



                                         34
Liquidity
Dollars in Millions
                                          Avail-
Company               Facility   Drawn    able     Cash*   Liquidity*

NSPM                  $ 275      $ 41     $234     $129 $ 363
PSCo                    350         1      349       98   447
SPS                      100        3       97       19      116
Xcel Hold Co.            400        1      399      221      620
Total                 $1,125     $ 46    $1,079    $467 $1,546


 * Reflects balances as of October 15, 2003
                                                                        35
Financing Plan — 2003
Dollars in Millions
                                        Issuance
Company               Amount   Coupon     Date       Maturity
PSCo                  $ 250    4.875%   May 2003    Mar 2013
Holding Co.              195   3.400     Jun 2003   July 2008
NSPM                     200   2.875    Aug 2003    Aug 2006
NSPM                     175   4.750    Aug 2003    Aug 2010
PSCo                     300   4.375    Sept 2003    Oct 2008
PSCo                     275   5.500    Sept 2003    Apr 2004
NSPW                     150   5.250    Sept 2003    Oct 2018
SPS                      100   6.000     Oct 2003    Oct 2033
Total                 $1,645   4.560%
Note: Net proceeds used to refinance higher coupon debt
                                                                36
Capital Structure
          As of September 30, 2003


                 Preferred Equity
                        1%
Common Equity
    40%




                               Debt & TOPrS
                                   59%


                                              37

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xel_102303b

  • 1. Edison Electric Institute Financial Conference October 26-29, 2003 Xcel Energy Inc. 800 Nicollet Mall Minneapolis, Minnesota 55402 www.xcelenergy.com
  • 2. Safe Harbor This material includes forward-looking statements that are subject to certain risks, uncertainties and assumptions. Such forward-looking statements include statements regarding projected earnings, cash flows, capital expenditures and other statements that are intended to be 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; changes in federal or state legislation; regulation; risks associated with the California power market; currency translation and transaction adjustments; the higher degree of risk associated with Xcel Energy’s nonregulated businesses compared with Xcel Energy’s regulated business; the failure to realize expectations regarding the NRG settlement agreement; emerge from bankruptcy in 2003; financial conditions of NRG; actions by the bankruptcy court in NRG’s bankruptcy case; and the 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 2002. 2
  • 3. Wayne Brunetti Chairman and Chief Executive Officer
  • 4. Significant Accomplishments — 2003 Reached settlement with NRG creditors Maintained investment grade bond rating Completed Colorado rate case Received approval for continued operation of Prairie Island nuclear plant Refinanced $1.6 billion of debt, saving over $20 million in annual interest expense Utilities achieved solid results for first nine months of 2003 4
  • 5. Xcel Energy Strengths Operate utility assets well; outstanding generation Growing service area Fair regulation Forward-looking policy makers Low rates Increasing financial strength Strong environmental record 5
  • 6. Objectives Invest additional capital in utility business Provide competitive returns to shareholders Improve credit ratings 6
  • 7. Invest Additional Capital Core utility capital investment of $900 to $950 million/year Committed Incremental Capital Additions Nuclear steam generator replacement Targeted distribution reliability upgrades Prospective Capital Additions Minnesota Metro Emission Reduction Program Potential Colorado coal plant 7
  • 8. Provide Competitive Total Return Earnings Growth 2 – 3% per year Dividend Yield – Current 4.8% Dividend Growth To be reviewed Elimination of NRG Overhang 8
  • 9. Regulatory Strategy Matching expenditures with cost recovery: Present Conservation and DSM rider Renewable Resource rider Colorado ECA mechanism Denver Metro Emissions rider Future Minnesota Metro Emissions rider Colorado Purchased Capacity rider Transmission (renewable) rider Colorado Resource addition File rate cases when necessary 9
  • 10. Dividend Policy Dividend policy to be addressed in June 2004, after final NRG settlement payment Issues to be considered — Cash from operations — Level of utility capital expenditures — Dividend payout ratio — Credit rating implications Potential dividend payout ratio bandwidth 60 – 75% 10
  • 11. Credit Rating Objectives Holding Company BBB+ to BBB Operating Utility A Range 11
  • 12. Priorities Complete resolution of NRG Payment of delayed dividend Meet earnings per share objective Establish dividend policy Improve credit ratings Implement timely cost recovery mechanisms Reduce exposure to non-core businesses 12
  • 13. Dick Kelly President and Chief Operating Officer
  • 14. NRG Bankruptcy Timetable October 8 FERC approved transfer of NRG assets October 10 SEC approved mailing NRG’s Reorganization Plan October 15 NRG’s Reorganization Plan distributed to creditors November 12 Votes on Reorganization Plan due November 21/24 Confirmation hearing scheduled on NRG’s Reorganization Plan Prior to NRG expected to emerge from December 15 bankruptcy 14
  • 15. Tax Benefits Associated with NRG Total tax benefit of approximately $1.1 billion Tax refund of $355 million – Spring 2004 NOL of $720 million realized at approximately $125 million annually from 2003-2008 15
  • 16. Projected Retained Earnings Year-end 2003 Millions of Dollars Retained Earnings Balance (9/30/2003) $ 43 Earnings October – December* 100 Tax Benefit of Settlement Payments** 260 Reversal of Negative Investment in NRG** 106 Dividend Declaration** (152) Projected Year-End Retained Earnings $ 357 * For illustration, assumes earnings at the low-end of guidance range ** Assumes NRG emerges from bankruptcy prior to year-end 2003 16
  • 17. 2003 Earnings Guidance Dollars per Share EPS Range Utility Operations $1.25 – $1.30 Holding Company Financings (0.09) Seren (0.05) Other Nonregulated Subsidiaries 0.04 Xcel Energy — Pro forma $1.15 – $1.20 Xcel Energy Share of NRG’s Losses (0.62) Tax Benefits Associated with NRG 0.90 Gain on Sale of Viking Gas 0.05 Xcel Energy — GAAP $1.48 – $1.53 17
  • 18. 2004 Earnings Drivers and Assumptions NRG emerges from bankruptcy in 2003 Weather adjusted retail sales growth of 2.2% for electric and 2.4% for gas Successful recovery of Colorado capacity cost increases Short-term wholesale and trading margin equivalent to projected 2003 levels Operating and maintenance expenses increasing 2 – 3% over projected 2003 levels Effective tax rate approximately 31% Common stock and equivalents of 425 million shares 18
  • 19. 2004 Earnings Guidance Dollars per Share EPS Range Utility Operations $1.25 – $1.32 Holding Company Financings (0.08) Nonregulated Subsidiaries (0.02) – 0.01 Xcel Energy $1.15 – $1.25 19
  • 20. Regulated Utility Potential Earnings Dollars in Millions Authorized Return Net Equity* on Equity Income NSPM $1,762 11.47% $202 NSPW 419 11.90 50 PSCo 1,965 10.85 213 SPS 783 11.50 90 Total $4,929 $555 Common Stock and Equivalents: 425 million shares Utility EPS at Authorized ROE Levels: $1.31 * Equity as of June 30, 2003 20
  • 21. Projected Cash Flow Dollars in Millions Sources 2003 2004 2005 Cash from Operations $1,300 >$1,300 >$1,300 Avoided Tax Payment/Refund 125 480 125 Citadel Greenshoe Option 58 Dividend Reinvestment 20 $1,503 * >$1,780 Total Sources >$1,425 Uses Capital Expenditures $ 932 $1,200 $1,200 Current Dividend Payment Rate 300 300 300 NRG Settlement 752 Total Uses $1,232 $2,252 $1,500 * Excludes $467 million of Xcel Energy cash on hand as of October 15, 2003 21
  • 22. Xcel Energy Investment Merits Low risk, integrated utility Transparent business model No restructuring anticipated Constructive regulation Improving credit profile Total return 7 – 8% 22
  • 24. Appendix 24
  • 25. Financial Summary Dividend Yield 4.8% Earnings Growth 2 - 3% per year Dividend Payout Ratio – Current 60 - 65% Market Capitalization $6 billion Trading Volume >1 million shares daily Institutional Ownership 42% (Excludes 5% Employee Ownership) Bond Ratings Moody’s S&P Holding Co. (Unsecured Debt) Baa3 BBB- Operating Utilities (Secured Debt) A3 to Baa1 BBB+ 25
  • 26. Forecast Customers (Millions) Annual Electric Gas Growth Rate PSCo 1.3 1.2 1.9% NSPM 1.4 0.4 1.5 Minneapolis/St. Paul NSPW 0.2 0.1 1.8 Minnesota SPS 0.4 — 0.3 Total 3.3 1.7 1.6% Denver Colorado Amarillo Texas Generating Plants
  • 27. Balanced Power Supply 2003 Energy (Projected) 2003 Capacity Owned Generation Nuclear Coal 72% 12% 51% Purchases 24% > 5 Yrs 21% 1- 5 Yrs Other 4% 2% Gas < 1 Yr Contracted 3% 11% Purchases 28% 27
  • 28. Retail Electric Rate* Comparison Central US *EEI typical bills – Winter 2002 Cents per Kwh 8 5.84 5.85 6 4.42 4 2 0 l illo City City nver Pau ouis ines ago kee enix ar e u o s o De /St. St. L s M hic ilwa Ph m ak sa A n CM l t L Ka pls De Sa M 28
  • 29. 2002 Generation Production Cost S&P Electric Index Companies Dollars per Mwh 60 50 40 30 $21.39 20 10 0 Xcel Energy Source: Platts Powerdat 29
  • 30. Fossil Generation* Equivalent Forced Outage Rate Percent of Time 4.6% 4.1% 3.8% 2.8% 2.8% 1999 2000 2001 2002 2003 YTD June 30 * Greater than 100 Mw 30
  • 31. Sulfur Dioxide and Nitrogen Oxide Emission Rates Pounds per Mwh 6 Sulfur Dioxide Emission Rate Nitrogen Oxide Emission Rate 5 4 3 2 1 0 1997 1998 1999 2000 2001 2002 2003* * Estimated emission rates 31
  • 32. Minnesota Metro Emission Reduction Proposal Net Dependable Capacity Increase Coal to gas conversion — High Bridge 272 Mw — Riverside 79 Refurbish — King (coal-fired plant) 60 Total 411 Mw Emission reduction — SO2 36,000 tons/year — NOX 29,000 tons/year Capital expenditures $1 billion 2005-2009 Contingent on approval of cost recovery through rate rider mechanism 32
  • 33. Colorado Resource Plan 1,600 Mw of new generation required by 2013 Growing Colorado load requires more base-load generation Resource Plan will explore variety of options Coal generation reduces price volatility 500 – 750 Mw plant at existing site — Potential for multiple owners 33
  • 34. 2004 Utility Capital Expenditures Customer Additions Replace/Refurbish 35% 31% Upgrade/ Other Modernization 23% 11% 34
  • 35. Liquidity Dollars in Millions Avail- Company Facility Drawn able Cash* Liquidity* NSPM $ 275 $ 41 $234 $129 $ 363 PSCo 350 1 349 98 447 SPS 100 3 97 19 116 Xcel Hold Co. 400 1 399 221 620 Total $1,125 $ 46 $1,079 $467 $1,546 * Reflects balances as of October 15, 2003 35
  • 36. Financing Plan — 2003 Dollars in Millions Issuance Company Amount Coupon Date Maturity PSCo $ 250 4.875% May 2003 Mar 2013 Holding Co. 195 3.400 Jun 2003 July 2008 NSPM 200 2.875 Aug 2003 Aug 2006 NSPM 175 4.750 Aug 2003 Aug 2010 PSCo 300 4.375 Sept 2003 Oct 2008 PSCo 275 5.500 Sept 2003 Apr 2004 NSPW 150 5.250 Sept 2003 Oct 2018 SPS 100 6.000 Oct 2003 Oct 2033 Total $1,645 4.560% Note: Net proceeds used to refinance higher coupon debt 36
  • 37. Capital Structure As of September 30, 2003 Preferred Equity 1% Common Equity 40% Debt & TOPrS 59% 37