Implementing the StrategyImplementing the Strategy

Ben FowkeVice President and Chief Financial Officer

Ben FowkeVice President and Chief Financial Officer

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, statements include projected earnings, cash flows, capital expenditures capital expenditures and other statements and are identified in this document by the and other statements and are identified in this document by the words words ““anticipate,anticipate,”” ““estimate,estimate,”” ““expect,expect,”” ““projected,projected,”” ““objective,objective,”” ““outlook,outlook,””““possible,possible,”” ““potentialpotential”” and similar expressions. Actual results may vary and similar expressions. Actual results may vary materially. Factors that could cause actual results to differ mmaterially. Factors that could cause actual results to differ materially aterially include, but are not limited to: general economic conditions, ininclude, but are not limited to: general economic conditions, including the cluding the availability of credit, actions of rating agencies and their impavailability of credit, actions of rating agencies and their impact on capital act on capital expenditures; business conditions in the energy industry; competexpenditures; business conditions in the energy industry; competitive itive factors; unusual weather; effects of geopolitical events, includfactors; unusual weather; effects of geopolitical events, including war and ing war and acts of terrorism; changes in federal or state legislation; reguacts of terrorism; changes in federal or state legislation; regulation; costs lation; costs and other effects of legal administrative proceedings, settlemenand other effects of legal administrative proceedings, settlements, ts, investigations and claims including litigation related to companinvestigations and claims including litigation related to companyy--owned owned life insurance (COLI); actions of accounting regulatory bodies; life insurance (COLI); actions of accounting regulatory bodies; the higher the higher degree of risk associated with Xcel Energydegree of risk associated with Xcel Energy’’ss nonregulatednonregulated businesses businesses compared with Xcel Energycompared with Xcel Energy’’s regulated business; and other risk factors s regulated business; and other risk factors listed from time to time by Xcel Energy in reports filed with thlisted from time to time by Xcel Energy in reports filed with the SEC, e SEC, including Exhibit 99.01 to Xcel Energyincluding Exhibit 99.01 to Xcel Energy’’s report on Form 10s report on Form 10--K for year 2005.K for year 2005.

Safe HarborSafe Harbor

Attractive Total Return withAttractive Total Return withLowLow--Risk StrategyRisk Strategy

Current dividend yield 4.75%Current dividend yield 4.75%

EPS growth rate objective 5 EPS growth rate objective 5 –– 7% per year7% per year**2005 2005 –– 20092009

Annual dividend growth objective 2 Annual dividend growth objective 2 –– 4% per year4% per year

* Excluding any impact from COLI* Excluding any impact from COLI

Invest in rate base assets AND

Increase our earned return on equity

Invest in rate base assets AND

Increase our earned return on equity

Strategy Strategy —— Building the CoreBuilding the Core

Implementing the StrategyImplementing the StrategyInvesting in Rate Base AssetsInvesting in Rate Base Assets

2006 2007 2008 2009 Total20062006 20072007 20082008 20092009 TotalTotal

Base level Base level $1,046$1,046 $1,016$1,016 $ 920$ 920 $1,031$1,031

Minnesota MERP Minnesota MERP 336336 228228 180180 4444

Comanche 3 Comanche 3 198198 331331 284284 7373

TotalTotal $1,580$1,580 $1,575$1,575 $1,384$1,384 $1,148$1,148 $5,687$5,687

Anticipated annualAnticipated annualgrowth in averagegrowth in averagerate baserate base 4%4% 7%7% 5%5% 2%2% 4.5%4.5%

Dollars in millionsDollars in millionsCapital Expenditure ForecastCapital Expenditure Forecast

PrePre--established recovery mechanismsestablished recovery mechanisms—— MERP riderMERP rider—— Comanche 3Comanche 3—— Transmission ridersTransmission riders

File rate casesFile rate cases

Implementing the StrategyImplementing the StrategyIncreasing our Earned Return on EquityIncreasing our Earned Return on Equity

571 MW coal plant refurbishment571 MW coal plant refurbishmentIn service May 2007In service May 2007

Metro Emission Reduction ProjectMetro Emission Reduction Project

KingKing

271 MW coal conversion to 575 MW gas271 MW coal conversion to 575 MW gasIn service May 2008In service May 2008

High BridgeHigh Bridge

386 MW coal conversion to 520 MW gas386 MW coal conversion to 520 MW gasIn service May 2009In service May 2009

RiversideRiverside

Instituted $40 million MERP Rider in Minnesota Instituted $40 million MERP Rider in Minnesota jurisdiction January 2006jurisdiction January 2006

Comanche Unit 3 Comanche Unit 3

750 MW super750 MW super--critical coal plant in Coloradocritical coal plant in Colorado

18 months from application to beginning 18 months from application to beginning constructionconstruction

On scheduleOn schedule

On budgetOn budget

NSPM* $148 $103 $ 53 $ 59 $ 59 $422PSCo 31 63 98 57 102 351SPS* 18 40 38 27 27 150NSPW 17 16 12 12 12 69Total $214 $222 $201 $155 $200 $992

NSPM* $148 $103 $ 53 $ 59 $ 59 $422PSCo 31 63 98 57 102 351SPS* 18 40 38 27 27 150NSPW 17 16 12 12 12 69Total $214 $222 $201 $155 $200 $992

Investing in TransmissionInvesting in Transmission

2006 2007 2008 2009 2010 Total2006 2007 2008 2009 2010 Total

Dollars in millionsDollars in millionsCapital Expenditure ForecastCapital Expenditure Forecast

* Recovery of qualifying investments through a rider. Texas rulemaking to be initiated.

* Recovery of qualifying investments through a rider. Texas rulemaking to be initiated.

Rate Cases with 2006 ImpactsRate Cases with 2006 Impacts

Colorado Gas Completed

Wisconsin Electric and Gas Completed

Minnesota Electric Decision 2006 Q3

Colorado Gas Completed

Wisconsin Electric and Gas Completed

Minnesota Electric Decision 2006 Q3

StatusStatus

Implementing the StrategyImplementing the StrategyIncreasing our Earned Return on EquityIncreasing our Earned Return on Equity

Colorado Gas Rate Case Highlights Colorado Gas Rate Case Highlights

$34.5 million request

11.0% return on equity

$34.5 million request$34.5 million request

11.0% return on equity11.0% return on equity

$22 million granted$22 million granted

10.5% return on equity10.5% return on equity

Rates effective February 2006

Xcel Energy RequestXcel Energy Request Commission DecisionCommission Decision

Wisconsin Rate Cases HighlightsWisconsin Rate Cases Highlights

$53.1 million electric$7.8 million gas11.9% ROE56.32% common equity

$53.1 million electric$53.1 million electric$7.8 million gas$7.8 million gas11.9% ROE11.9% ROE56.32% common equity56.32% common equity

$43.4 million electric$43.4 million electric$3.9 million gas$3.9 million gas11.0% ROE11.0% ROE54% common equity54% common equity

Rates effective January 2006

Xcel Energy RequestXcel Energy Request Commission DecisionCommission Decision

Minnesota Electric Case HighlightsMinnesota Electric Case Highlights

Requested $168 million increase, based onforecast 2006 test year

11% return on common equity

$147 million interim rate increase January 2006

Customer impact— Base rate increase of 8%— Interim rate increase of 6.9%

Final decision expected third quarter 2006

Requested $168 million increase, based onforecast 2006 test year

11% return on common equity

$147 million interim rate increase January 2006

Customer impact— Base rate increase of 8%— Interim rate increase of 6.9%

Final decision expected third quarter 2006

Increase requestedIncrease requested $168$168ROE 10.54% vs. 11%ROE 10.54% vs. 11% $$-- 1313PostPost--Retirement Benefit CostsRetirement Benefit Costs -- 22Incentive CompensationIncentive Compensation -- 77Sales to Flint HillsSales to Flint Hills -- 20 20 Trading MarginsTrading Margins -- 2424MISO ChargesMISO Charges -- 44

TotalTotal $$-- 7070 $ 98$ 98Earnings NeutralEarnings Neutral

Decommissioning & DepreciationDecommissioning & Depreciation -- 14 14 Private Spent Fuel StoragePrivate Spent Fuel Storage -- 44Storm ReserveStorm Reserve -- 22

TotalTotal $$-- 2020 $ 78$ 78

Dollars in millions

Minnesota Electric Rate CaseMinnesota Electric Rate CaseDepartment of Commerce RecommendationDepartment of Commerce Recommendation

Minnesota Electric Rate CaseMinnesota Electric Rate CaseOther Other IntervenorsIntervenors

Treatment of short-term wholesale

Purchased capacity equity rider

MISO cost

Office of the Attorney General — Minnesota income tax based on consolidated return

Treatment of short-term wholesale

Purchased capacity equity rider

MISO cost

Office of the Attorney General — Minnesota income tax based on consolidated return

Minnesota Electric Rate Case ScheduleMinnesota Electric Rate Case Schedule

Intervenor Testimony – March 2

Rebuttle Testimony – March 30

Surrebuttle Testimony – April 13

Evidentiary Hearings – April 20 – 28

Initial Briefs – May 24

Reply Briefs – June 6

ALJ Report – July 6

MPUC Decision – September 5

Intervenor Testimony – March 2

Rebuttle Testimony – March 30

Surrebuttle Testimony – April 13

Evidentiary Hearings – April 20 – 28

Initial Briefs – May 24

Reply Briefs – June 6

ALJ Report – July 6

MPUC Decision – September 5

Rate Cases with Expected 2007 ImpactsRate Cases with Expected 2007 Impacts

Colorado Electric— File in April 2006Texas Electric— File May-June 2006Colorado Gas— File late Spring 2006 Minnesota Gas— File late 2006North Dakota Electric— File late 2006New Mexico Electric — Potential South Dakota Electric — Potential

Colorado Electric— File in April 2006Texas Electric— File May-June 2006Colorado Gas— File late Spring 2006 Minnesota Gas— File late 2006North Dakota Electric— File late 2006New Mexico Electric — Potential South Dakota Electric — Potential

WellWell--Positioned for Regulatory Success Positioned for Regulatory Success

Prudent investment to meet customer requirements

Environmental stewardship

Constructive regulation

Innovative regulatory recovery

Prudent investment to meet customer requirements

Environmental stewardship

Constructive regulation

Innovative regulatory recovery

Earnings Guidance Range

Regulated utility $1.25 – $1.35Holding company

and other (0.10)COLI – Tax benefit 0.10

Continuing operations $1.25 – $1.35

Regulated utility $1.25 – $1.35Holding company

and other (0.10)COLI – Tax benefit 0.10

Continuing operations $1.25 – $1.35

20062006Dollars per shareDollars per share

Financial Performance ObjectivesFinancial Performance Objectives

EPS growth rate 2005 EPS growth rate 2005 –– 20092009—— Target 5 Target 5 –– 7% per year7% per year**

Annual dividend increases of 2 Annual dividend increases of 2 –– 4% per year4% per year

Deliver an attractive total return with low riskDeliver an attractive total return with low risk

Credit ratingCredit rating—— Senior unsecured debt BBB+ to A rangeSenior unsecured debt BBB+ to A range

* Excluding any impact from COLI* Excluding any impact from COLI

AppendixAppendix

Unemployment rate —December 2005

US 4.6%Xcel service area 4.0%

Xcel annual sales growth —2005-2009

Electric 1.8%Gas 1.5%

Unemployment rate —December 2005

US 4.6%Xcel service area 4.0%

Xcel annual sales growth —2005-2009

Electric 1.8%Gas 1.5%

Strong Regional Economy

Strong Regional Economy

Northern States Northern States Power Power

CompanyCompany--MinnesotaMinnesota

Public Service Public Service Company of Company of

ColoradoColorado

Southwestern Southwestern Public Service*Public Service*

Northern Northern States Power States Power

CompanyCompany--WisconsinWisconsin

* Sale pending on Kansas and Oklahoma properties* Sale pending on Kansas and Oklahoma properties

Xcel Energy 2005 OwnedXcel Energy 2005 OwnedGenerating FacilitiesGenerating Facilities

CoalCoal 3636 8,1388,138 5252Natural GasNatural Gas 6161 4,9184,918 3131NuclearNuclear 33 1,6171,617 1010HydroHydro 8383 508508 33OilOil 2424 492492 33RDFRDF 66 9696 11WindWind -- 2525 --TotalTotal 15,79415,794

Unit TypeUnit Type NumberNumber MWMW PercentPercent

* Additionally, Xcel Energy purchases 928 MWs of wind power* Additionally, Xcel Energy purchases 928 MWs of wind power

**

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

COLI LitigationCOLI Litigation

Positive pre-deduction cash flowsMortality gainsThe buildup of cash values

Positive prePositive pre--deduction cash flowsdeduction cash flowsMortality gainsMortality gainsThe buildup of cash valuesThe buildup of cash values

The courtThe court’’s opinion in the Dow case outlined three indicators of s opinion in the Dow case outlined three indicators of potential economic benefits to be examined in a COLI case. potential economic benefits to be examined in a COLI case.

In Xcel EnergyIn Xcel Energy’’s COLI case, the plans:s COLI case, the plans:Were projected to have sizeable preWere projected to have sizeable pre--deduction cash flows, deduction cash flows, based upon the relevant assumptions when purchasedbased upon the relevant assumptions when purchasedPresented the opportunity for mortality gains that were not Presented the opportunity for mortality gains that were not eliminated either retroactively or prospectivelyeliminated either retroactively or prospectivelyHad large cash value increases that were not encumbered by Had large cash value increases that were not encumbered by loans during the first seven years of the policiesloans during the first seven years of the policies