1. Business & Regulatory Drivers for Multi-Emissions Legislation Business & Regulatory Drivers for Multi-Emissions Legislation

2. Customers: 3.3 Million Electric 1.8 Million Gas Customers: 3.3 Million Electric 1.8 Million Gas 4 th largest US electric and gas utility Public Service Company of Colorado Northern States Power Company- Wisconsin Northern States Power Company- Minnesota Southwestern Public Service Unemployment rate November 2004 US5.2% Xcel service area4.1% Job growth – 2005 Forecast Xcel service area2.4% Xcel Annual sales growth 2005-2009 Electric2.0% Gas1.2% Unemployment rate November 2004 US5.2% Xcel service area4.1% Job growth – 2005 Forecast Xcel service area2.4% Xcel Annual sales growth 2005-2009 Electric2.0% Gas1.2% Strong Regional Economy

3. Energy Supply Mix 2004 Owned and Purchased Owned Generation 68% Owned Generation 68% Gas 21% Gas 21% Other 11% Other 11% Purchased Energy Nuclear 12% Nuclear 12% Coal * 54% Coal * 54% Gas 27% Gas 27% Renewable 7% Renewable 7% Fuel Mix * Low-sulfur, low-mercury western coal

4. Xcel Energy Supply Requirement and Capability 20 21 22 23 24 25 26 27 Current capability based on existing generation and contracted purchases Current capability based on existing generation and contracted purchases 20042014201320122011201020092008200720062005 Thousands of MW Resource need without renewal of expiring purchase contracts Supply requirement

5. Xcel Energy Supply Requirement and Capability 20 21 22 23 24 25 26 27 Current capability based on existing generation and contracted purchases Current capability based on existing generation and contracted purchases 20042014201320122011201020092008200720062005 Thousands of MW Resource need without renewal of expiring purchase contracts With approved additions Supply requirement

6. Environmental Initiatives Reduce and manage energy consumption Reduce our environmental impact Increase use of renewable energies Advocate public policies that achieve environmental improvement, regulatory certainty and cost effective energy Protect wildlife Reduce and manage energy consumption Reduce our environmental impact Increase use of renewable energies Advocate public policies that achieve environmental improvement, regulatory certainty and cost effective energy Protect wildlife

7. Reduce and Manage Energy Consumption Spent more than $65 million on electric and gas demand-side management programs across its service territories in 2004 Expenditures alone resulted in 340 GWh and 663,000 MCF in first-year energy savings Various conservation and DSM programs have been in operation for more than 15 years Spent more than $65 million on electric and gas demand-side management programs across its service territories in 2004 Expenditures alone resulted in 340 GWh and 663,000 MCF in first-year energy savings Various conservation and DSM programs have been in operation for more than 15 years Promote use of high efficiency products including lighting by offering cash rebates Provide online energy assessment Provide energy efficient design assistance to architects and engineers Offer rebates to commercial and industrial customers for boiler maintenance and equipment improvements Control 360,000 residential air conditioners to reduce peak demand Control 972 MW of interruptible commercial and industrial load Promote use of high efficiency products including lighting by offering cash rebates Provide online energy assessment Provide energy efficient design assistance to architects and engineers Offer rebates to commercial and industrial customers for boiler maintenance and equipment improvements Control 360,000 residential air conditioners to reduce peak demand Control 972 MW of interruptible commercial and industrial load

8. Voluntary Denver Metro Emission Reduction Program Flexibility and incentive result in economical projects with greater environmental improvement Valmont I-70 I-25 I-76 Cherokee US 36 6,1811,236 20,9646,502 7,807 2,747 I-25 Arapahoe 6,377 2,455 Uncontrolled NO X Controlled NO X 2003 Projected Tons per Year Uncontrolled SO 2 Controlled SO 2

9. Convert two in-city coal plants to natural gas & refurbish a third in-city coal plant Improves environment Convert two in-city coal plants to natural gas & refurbish a third in-city coal plant Improves environment Voluntary Minnesota Metro Emissions Reduction Program SO 2 NOxMercuryParticulateCO 2 93%91%78%55%21%

10. Hydro1,885 MW Wind884 MW Biomass95 MW Solar 40 KW Total2,864 MW Hydro1,885 MW Wind884 MW Biomass95 MW Solar 40 KW Total2,864 MW TypeCapacity TypeCapacity * *Owned and purchased **Nameplate rating *Owned and purchased **Nameplate rating Renewable Energy Sources > 12% of 2004 System Capacity **

11. Actual Projected Commitment to Wind Power 25 MW 138 316 348 469 478 829 884 1596 2206 **Timing dependent on renewal of Production Tax Credit

12. Reduce Environmental Impact 7% reduction in CO 2 intensity (pounds per MWh) from 2003 to 2012 12 million ton reduction in CO 2 emissions by 2009, based on 2003 emissions 7% reduction in CO 2 intensity (pounds per MWh) from 2003 to 2012 12 million ton reduction in CO 2 emissions by 2009, based on 2003 emissions Goals Industry-leading voluntary emission reduction projects Triple wind generation Participate in three carbon sequestration programs Relicense nuclear generation Implement Minnesota MERP Industry-leading voluntary emission reduction projects Triple wind generation Participate in three carbon sequestration programs Relicense nuclear generation Implement Minnesota MERP Actions Carbon Management Plan Burn low-sulfur, low-mercury coal Baghouses help capture mercury and are currently in-place on most units Continue testing sorbent technologies at existing facilities Comanche 3 will be equipped with state-of-the-art technology Burn low-sulfur, low-mercury coal Baghouses help capture mercury and are currently in-place on most units Continue testing sorbent technologies at existing facilities Comanche 3 will be equipped with state-of-the-art technology Mercury Management Initiatives

13. Reduce Environmental Impact Protect Wildlife By 1989, the Company began installing nest boxes on its power plant chimneys to rebuild peregrine falcon population. By 1999, the peregrine was taken off the endangered species list. In 2002, Xcel Energy was the first electric utility to voluntarily approach the US Fish and Wildlife Service to jointly develop a plan to protect eagles, large raptors and migrating birds from electrocution. By 1989, the Company began installing nest boxes on its power plant chimneys to rebuild peregrine falcon population. By 1999, the peregrine was taken off the endangered species list. In 2002, Xcel Energy was the first electric utility to voluntarily approach the US Fish and Wildlife Service to jointly develop a plan to protect eagles, large raptors and migrating birds from electrocution. Environmental Advocacy Advocate for voluntary emission reduction legislation that supports recovery of investments that reduce emissions below current regulations Support Clear Skies Legislation Xcel Foundation will provide additional funding to:Minnesota Renewable Development FundColorado Renewable Energy Trust Advocate for voluntary emission reduction legislation that supports recovery of investments that reduce emissions below current regulations Support Clear Skies Legislation Xcel Foundation will provide additional funding to:Minnesota Renewable Development FundColorado Renewable Energy Trust

14. Environmental Initiatives Owned Generation (GWh) Pounds per MWh 3.0 4.0 5.0 6.0 Nitrogen Oxide emissions Sulfur Dioxide emissions Owned generation (GWh)

15. Retail Electric Rate * Comparison * EEI typical bills – Summer 2004 Cents per KWh AmarilloAmarillo Kansas City DenverDenver Mpls/St. Paul BostonBoston Des Moines ChicagoChicago MilwaukeeMilwaukee PhoenixPhoenix Salt Lake City 4.874.87 6.066.06 6.016.01 St. Louis MiamiMiami New York

16. Shifting the Paradigm Investors Regulators Environmentalists Customers Utility Investors Regulators Environmentalists Customers Xcel Energy

17. Acid Rain Cap & Trade Program Near-perfect compliance – over 99% Early reductions – averaged 25% below allowable levels early in the program Cost savings– cost 75% less than projected Innovation– generators looked for new, low-cost ways to reduce emissions Support – accepted among environmental organizations and industry Near-perfect compliance – over 99% Early reductions – averaged 25% below allowable levels early in the program Cost savings– cost 75% less than projected Innovation– generators looked for new, low-cost ways to reduce emissions Support – accepted among environmental organizations and industry

18. Key Components of Multi-Emissions Legislation Certainty Meaningful Reductions Proven Regulatory Program Updates Clean Air Act Cost Effective For these reasons, Xcel Energy supports the Clear Skies Act legislation. Certainty Meaningful Reductions Proven Regulatory Program Updates Clean Air Act Cost Effective For these reasons, Xcel Energy supports the Clear Skies Act legislation.

19. Thank You