The Future of Clean Energy Developments in Sustainable Technology Ben Fowke Executive Vice-President and Chief Financial Officer

Xcel Energy Service Territory Northern States Power Company- Minnesota Northern States Power Company- Wisconsin Public Service Company of Colorado Xcel Energy Electric Customers 3.4 million Gas Customers 1.9 million Southwestern Public Service Largest provider of retail wind energy in U.S.

Environmental Leadership Carbon Emission Reduction: Reduced by 26 million tons since 2003 Renewable Energy: 3,643 MW on our system in 2008 Energy Conservation: Avoided more than eleven 250-MW plants SO2/NOx: Reduced 66K tons of SO2 and 43K tons NOx

Projected Resource Mix Energy 2008 2020 Nuclear 12% Nuclear 13% Renewables 24% Renewables 13% Natural Gas 22% Natural Gas 17% Other 1% Coal 52% Coal 46% Capacity Wind Hydro Solar Biomass RDF Landfill Geothermal MW 2008 2,935 365 32 194 100 18 0 2020 7,400 400 800 250 60 20 20

Geographic Advantage Biomass Resource Wind Resource Solar Resource Xcel Energy States Served Wind Density High Low Source: National Renewable Energy Laboratory

American Clean Energy and Security Act (ACES) Projected Electric Sector CO2 Emissions and Allocation Million metric tons CO2

Meeting the Challenge EPRI: Value of Clean Technologies* 500 1000 1500 2000 2500 3000 3500 1990 1995 2005 2010 2015 2020 2025 2030 U.S. Electric Sector CO2 Emissions (million metric tons) EIA Base Case 2007 * Achieving all targets is very aggressive, but potentially feasible Technology Advanced Coal Generation Distributed Generation Plug-in Hybrid Vehicles Carbon Capture & Sequestration Efficiency Renewables Nuclear Generation

NSP Planned Carbon Reductions CO2 with Reductions CO2 Reduction from 2005 Existing Levels Wind MH Upgrades DSM MERP CO2 w/o Reductions Tons CO2 2005 2020 20,000,000 25,000,000 30,000,000 35,000,000 40,000,000 15,000,000 CO2 Levels Carbon Emissions Reduction 20+% by 2020

Wind: A Model for Technological Innovation MW

New Renewable Potential

Energy Storage

Achieving Demand Side Savings Premium Efficiency Motor LED Lighting

SmartGridCityTM Two-way Communications BPL Cellular/WiFi/WiMax Transmission Line Two-way Communications BPL Cellular/WiFi/WiMax Meshed solutions Substation Grid Monitoring/Control Substations Transformers Control points End User Distribution System End user becomes part of the solution 13

Smart Grid Customer Applications

PHEV and New Supply Sources Pictures from CarbonDay

Investment Horizon US Shareholder-Owned Electric Utilities Capital Spending: Trailing 12 Months Dollars in billions Source: EEI

Technology Development Continuum Research & Development Demonstration Deployment Traditional utility industry position Utility role responsive to demand for cleaner technologies

Aligning Interests Customers Regulators Utilities