xcel energy

Executing The Energy Supply PlanExecuting The Energy Supply Plan

Regulators/Regulators/LegislatorsLegislators

Value toCustomers

EnvironmentalStewardship

FinancialFinancialPerformancePerformance

Invest in Regulated Utility BusinessInvest in Regulated Utility Business

David Wilks President – Energy Supply David Wilks President – Energy Supply

Excellence in GenerationExcellence in Generation

Strong operational performance

Environmental stewardship

Strong cost management

Proven construction management skills





0

2

4

6

8

10

12

14

Coal Plant NonCoal Plant Non--Fuel O&M ExpenseFuel O&M Expense

Source: Credit Suisse First Boston November 1, 2005 Report Source: Credit Suisse First Boston November 1, 2005 Report ––Costs of Doing BusinessCosts of Doing Business

3.653.653.65

Dollars per Dollars per MWhMWh 2004 average2004 average

US Electric Holding CompaniesUS Electric Holding CompaniesXcel EnergyXcel Energy

0

5

10

15

20

25

30

Coal Plant Fuel ExpenseCoal Plant Fuel Expense

11.3311.3311.33

Xcel EnergyXcel Energy

Dollars per MWh 2004 averageDollars per MWh 2004 average


US Electric Holding CompaniesUS Electric Holding Companies

0

2

4

6

8

Nuclear Fuel ExpenseNuclear Fuel Expense

4.644.644.64

Xcel EnergyXcel Energy

Dollars per MWh 2004 averageDollars per MWh 2004 average


US Electric Holding CompaniesUS Electric Holding Companies

Xcel Energy Supply SourcesXcel Energy Supply Sources

Nuclear12%

Nuclear12%

Coal **54%

Coal **54%

Gas27%Gas27%

* Includes purchases** Low-sulfur western coal* Includes purchases** Low-sulfur western coal

Renewables7%

Renewables7%

2004Energy Supply Mix*


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

2005 OwnedGenerating Facilities


Unit TypeUnit Type NumberNumber MWMW

* Additionally, Xcel Energy purchases 928 MWs of wind power

**

NSP Supply SourcesNSP Supply Sources

Renewables3%

Renewables3% Manitoba Hydro

11%Manitoba Hydro

11%Other

Purchases12%

OtherPurchases

12%

Coal**44%

Coal**44%

Nuclear28%

Nuclear28%

Gas2%Gas2%

CoalCoal 3,3753,375Natural GasNatural Gas 1,7581,758NuclearNuclear 1,6171,617HydroHydro 266266OilOil 492492RDFRDF 9696TotalTotal 7,6047,604

Unit TypeUnit Type MWMW





TotalPurchases

TotalPurchases


Purchases37%

Purchases37%

Coal **52%

Coal **52%

Gas11%Gas11% Renewables

0.2%Renewables

0.2%

CoalCoal 2,6172,617Natural GasNatural Gas 982982HydroHydro 242242WindWind 2525TotalTotal 3,8663,866

PSCo Supply SourcesPSCo Supply Sources







Purchases20%

Purchases20%

Coal **56%

Coal **56%

Gas24%Gas24%

CoalCoal 2,1462,146Natural GasNatural Gas 2,1782,178TotalTotal 4,3244,324


SPS Supply SourcesSPS Supply Sources






NSP Major Fossil Plant AvailabilityNSP Major Fossil Plant Availability

20012001 20022002 20032003 20042004 20052005YTDYTD

33rdrd QtrQtr

2005 YTD2005 YTDwithoutwithout

MERP unitsMERP units

8383 8888 8787 8585 83838989

PercentPercent

NSP Nuclear Plant AvailabilityNSP Nuclear Plant Availability

20012001 20022002 20032003 20042004

83839595 9494 9393

8585

PercentPercent

20052005YTD 3YTD 3rdrd QtrQtr

PSCo Major Fossil Plant AvailabilityPSCo Major Fossil Plant Availability

20012001 20022002 20032003 20042004

9090 8787 9090 8888 8989PercentPercent


SPS Major Fossil Plant AvailabilitySPS Major Fossil Plant Availability

20012001 20022002 20032003 20042004

9191 9191 9090 8989 8686

PercentPercent


CAIR and Mercury Compliance PlanCAIR and Mercury Compliance Plan

Colorado is exempt from CAIRFiled suit contesting inclusion of West Texasin CAIRNSP SO2 credits to last through 2020SPS to purchase SO2 allowancesInvestment of $50 – 60 million to meet NOX standards at NSP and SPSPSCo expected to meet mercury reduction requirements with Comanche 3 andComanche 1 & 2 modificationsTesting and evaluating approaches to reduce mercury at NSP and SPS

Colorado is exempt from CAIRFiled suit contesting inclusion of West Texasin CAIRNSP SO2 credits to last through 2020SPS to purchase SO2 allowancesInvestment of $50 – 60 million to meet NOX standards at NSP and SPSPSCo expected to meet mercury reduction requirements with Comanche 3 andComanche 1 & 2 modificationsTesting and evaluating approaches to reduce mercury at NSP and SPS

Environmental ComplianceEnvironmental ComplianceCosts Minimized by AllowanceCosts Minimized by AllowancePurchases and InvestmentPurchases and Investment

0

50

100

150

200

250

300

350

0

50

100

150

200

250

300

350

AllowancesAllowances

Investment 0% 100%

Note: The curves are conceptual Note: The curves are conceptual

CapitalCapitalInvestmentInvestment

Dollars in millionsDollars in millions

AllowancesAllowances 100%100% 0%0%

NSP Environmental InitiativesNSP Environmental Initiatives

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

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

1997 1999 2001 2003 2005 2007 2009

Nitrogen Oxides emissionsNitrogen Oxides emissionsNitrogen Oxides emissionsSulfur Dioxide emissionsSulfur Dioxide emissionsSulfur Dioxide emissions

0.0

2.0

4.0

5.0

3.0

1.0

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

ForecastForecast


0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

1997 1999 2001 2003 2005 2007 20090.0

2.0

6.0

8.0

4.0

Nitrogen Oxides emissionsNitrogen Oxides emissionsNitrogen Oxides emissionsSulfur Dioxide emissionsSulfur Dioxide emissionsSulfur Dioxide emissions Owned generation (GWh)Owned generation (GWh)Owned generation (GWh)

ForecastForecast

PSCo Environmental InitiativesPSCo Environmental Initiatives


0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

1997 1908 1999 2000 2001 2002 2003 2004 20050.0

2.0

6.0

8.0

4.0

Nitrogen Oxides emissionsNitrogen Oxides emissionsNitrogen Oxides emissionsSulfur Dioxide emissionsSulfur Dioxide emissionsSulfur Dioxide emissions Owned generation (GWh)Owned generation (GWh)Owned generation (GWh)

ForecastForecast

SPS Environmental InitiativesSPS Environmental Initiatives

Maintenance RepairMaintenance Repairand Operations (MRO)and Operations (MRO)

Turbine Overhaul InitiativeTurbine Overhaul Initiative

Sourcing SavingsSourcing Savings

Energy Supply Sourcing InitiativesEnergy Supply Sourcing Initiatives

YTD Delivered Sourcing SavingsYTD Delivered Sourcing Savings

O&M TotalO&M Total == $1.0$1.0CapitalCapital == $1.5$1.5YTD TotalYTD Total == $2.5$2.5YE Projections/Negotiated YE Projections/Negotiated ~ $7.0~ $7.0

Sourcing Savings Sourcing Savings (millions)(millions)

PriceSavings

CostAvoidance

ValueAdded

O&M Capital830830

192192

526526

4443232

Dollars in thousandsDollars in thousands

Provide cost savingsProvide cost savings

Consolidate supply baseConsolidate supply base

Includes supplierIncludes supplierperformance program for performance program for continuous improvementcontinuous improvement

CharacteristicsCharacteristics

942942

Colorado (Overall)

Equipment

Units

Ash

A

uxilia

ry

Boi

ler W

ater

Mak

eup

Boi

ler

Con

trols

C

oolin

g To

wer

C

ircul

atin

g W

ater

D

iese

l Eng

ine

Circ

Wat

er M

akeu

p E

nviro

nmen

tal

Ele

ctric

al

Em

issi

ons

For

ebay

F

GS

F

uel H

andl

ing

Fue

l F

eedw

ater

C

T W

ater

Mak

eup

Gen

erat

or

Com

bust

ion

Turb

ine

Con

dens

er

Ste

am

Pow

er T

unne

l R

adia

tors

R

eser

voir

Soo

t Blo

win

g P

lant

S

uppo

rt Eq

uipm

ent

Tur

bine

W

ater

Gat

herin

g

Alamosa 1 N Y N N G N N N N G G N N N G N G G N N N N N N G

Alamosa 2 N G N N G N N N N G G N N N G N G G N N N N N N G

Arapahoe 3 Y G G R Y G R N G Y G N N Y Y G N Y G N N N Y R G

Arapahoe 4 Y G G Y G R R N G G Y G N N Y Y Y N Y G N N N R Y

Cabin Creek A N G N N N N N N G Y Y N N N N N G N N N N N Y N

Cabin Creek B N G N N N N N N G Y Y N N N N N G N N N N N Y N

Cameo 1 Y G G R Y N R N G G G G N N N R Y R N G G N N N Y R

Cameo 2 Y G G Y Y N R N G G G Y N N N R R N R N G G N N N Y R

Cherokee 1 Y Y Y Y G G G N Y G Y R N N R Y G N Y Y N N N G Y

Cherokee 2 Y Y Y Y R G G N Y G G R N R Y G N G G N N N G Y

Cherokee 3 Y Y Y Y G G G N Y G G R G R Y G N Y G N N N G G

Cherokee 4 Y Y Y G Y G G N Y G G R N G R Y Y N G G N N N G G

Comanche 1 Y Y Y Y G G Y N Y G Y Y N N G Y N Y N G G N N N Y Y

Comanche 2 Y Y G Y Y G Y N Y G Y Y N G G Y G N R Y N N N Y Y

Denver Steam N G G Y G N N G Y N N Y Y N N G N N N

Fort Lupton 1 N G N N G N N N N G G N N N G N N G G N N N N N N G

Fort Lupton 2 N G N N G N N N N G G G N N N G N N G G N N N N N N G N

Fort St Vrain 1 N Y G N Y Y Y N G Y Y Y N N N G Y N Y Y N N N N Y G G

Fort St Vrain 2 N G N G G N N N N N G Y N N N G G N G Y N G N N N N N N

Fort St Vrain 3 N G N G G N N N N N G G N N N G G N G G N N N N N N N N

Fort St Vrain 4 N G N G G N N N N N G G N N N G G N G Y N G N N N N N N

Energy Supply PlantEnergy Supply PlantCondition AssessmentCondition Assessment

Energy Supply AdditionalEnergy Supply AdditionalCost Saving InitiativesCost Saving Initiatives

0369

121518

2003* 2004* 2005* 2006*

$6.9 Cost Reduction$6.9 Cost Reduction

Insurance premiumInsurance premium $2.6 M $2.6 M

Vendor managementVendor managementmeetingsmeetings 1.31.3

MRO alliancesMRO alliances 0.60.6

Total savingsTotal savings $4.5 M$4.5 M

Dollars in millionsDollars in millionsDollars in millions

YTD 2005Cost Savings

YTD 2005YTD 2005Cost SavingsCost Savings

* Year ended June* Year ended June* Year ended June

Insurance PremiumsInsurance PremiumsInsurance Premiums

Energy Supply Material InventoryEnergy Supply Material Inventory

20022002 20032003 20042004 2005 YTD2005 YTD33rdrd QtrQtr

8282 7878 7474 7373


Completed Construction ProjectsCompleted Construction Projects

Fort St. VrainFort St. Vrain737 MWs737 MWs

Completed May 2001;Completed May 2001;onon--time and within budgettime and within budget

Black Dog 5Black Dog 5162 MWs162 MWs

Completed November 2002;Completed November 2002;onon--time and within budgettime and within budget

Two units, 1076 MWs which began commercial operation late 1973/1974

Steam generators replaced on unit 1 November 2004 after30 years of operations

Project completed on time and within budget

Two units, 1076 MWs which began commercial operation late 1973/1974

Steam generators replaced on unit 1 November 2004 after30 years of operations

Project completed on time and within budget

Prairie Island Steam Generators ReplacedPrairie Island Steam Generators Replaced

NSP New Gas UnitsNSP New Gas Units

One 160 MW combustion One 160 MW combustion turbine peaking unit installedturbine peaking unit installedOnline May 2005; on time and Online May 2005; on time and under budgetunder budgetCapacity factor of 25%Capacity factor of 25%for June through Augustfor June through August

2 combustion turbine peaking 2 combustion turbine peaking units totaling 320 MWs installed units totaling 320 MWs installed Online May 2005; on time and Online May 2005; on time and under budgetunder budgetCapacity factors of 16% and Capacity factors of 16% and 18% from June through August18% from June through August

Blue LakeBlue Lake

Angus AnsonAngus Anson

NSP MERP NSP MERP —— King PlantKing PlantDetailed design work is 65% Detailed design work is 65% completecompletePiling work is complete; Piling work is complete; foundation installation work foundation installation work continuescontinuesFirst permanent supportFirst permanent supportsteel was set on August 3,steel was set on August 3,as scheduled as scheduled SCR and AQCS components SCR and AQCS components continue to be received at the continue to be received at the site. Initial SCR ductwork was site. Initial SCR ductwork was installed during September installed during September outageoutageScheduled for commercial Scheduled for commercial operations May 2007operations May 2007

Artist RenderingArtist RenderingOne Unit One Unit –– 571 MWs571 MWs

NSP MERP NSP MERP —— High Bridge PlantHigh Bridge Plant

Signed contract for Signed contract for purchase of 2 purchase of 2 CTsCTs andand1 steam turbine. Resulted1 steam turbine. Resultedin $40 million savingsin $40 million savingsGas pipeline awarded to Gas pipeline awarded to NSP GasNSP GasAll permits have been All permits have been issued and site remediation issued and site remediation work began August 2005work began August 2005Full construction releaseFull construction releaseProject planned to be Project planned to be completed by May 2008completed by May 2008

Artist RenderingArtist Rendering575 MWs575 MWs

NSP MERP NSP MERP —— Riverside PlantRiverside Plant

Asbestos abatement, Asbestos abatement, mercury and lead removal mercury and lead removal activities underway on old activities underway on old sectionsection

Began site development Began site development study in April 2005study in April 2005

Permitting and equipment Permitting and equipment design began in Fall 2005design began in Fall 2005

InIn--service scheduled for service scheduled for May 2009May 2009

Artist RenderingArtist Rendering520 MWs520 MWs

PUC approval January 2005PUC approval January 2005Major contracts signed for Major contracts signed for turbine generator, boiler and turbine generator, boiler and air quality control system air quality control system ––within budget within budget Air permit approvedAir permit approvedJuly 15, 2005July 15, 2005Began construction inBegan construction inOctober 2005. Major October 2005. Major contractors start May 2006contractors start May 2006Construction completed fall Construction completed fall 2009 at a total cost of $1.35 2009 at a total cost of $1.35 billionbillion

New unit $1.073 BNew unit $1.073 BTransmissionTransmission $150 M$150 MRetrofit 1 & 2Retrofit 1 & 2 $127 M$127 M

Artist RenderingArtist RenderingOne Unit One Unit –– 750 MWs Net750 MWs Net

PSCo Comanche 3PSCo Comanche 3

NSP Nuclear Relicensing StatusNSP Nuclear Relicensing Status

Minnesota PUC, legislative and NRC approvals expected 2006 – 2007Life Cycle modifications to be installed 2008 – 2012, projected capital cost of $150 – 200 million

Minnesota PUC, legislative and NRC approvals expected 2006 – 2007Life Cycle modifications to be installed 2008 – 2012, projected capital cost of $150 – 200 million

Begin license application to the NRC and Minnesota Legislature in 2008Life Cycle modifications under evaluationApprovals expected 2010 – 2011

Begin license application to the NRC and Minnesota Legislature in 2008Life Cycle modifications under evaluationApprovals expected 2010 – 2011

MonticelloMonticello

Prairie IslandPrairie Island

Energy Supply CapitalEnergy Supply CapitalExpenditures Expenditures 2001 2001 –– 20092009

0

100

200

300

400

500

600

700

800

2001 2002 2003 2004 2005 2006 2007 2008 2009

MN MERP

Comanche 3

Blue Lake CTs

Angus Anson CTs

TX CAIR/Hg

MN CAIR/Hg

Base Budget

Actual


ForecastForecast

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