Piper Jaffray Clean Technology & Renewables Conference. Thursday, February 19, 2009 The Westin New York at Times Square

Transcription

1 Piper Jaffray Clean Technology & Renewables Conference Thursday, February 19, 2009 The Westin New York at Times Square

2 Safe Harbor This material includes forward-looking statements that are subject to certain risks, uncertainties and assumptions. Such forward-looking statements include projected earnings, cash flows, capital expenditures and other statements and are identified in this document by the words anticipate, anticipate, estimate, estimate, expect, expect, projected, projected, objective, objective, outlook, outlook, possible, possible, potential and similar expressions. Actual results may vary materially. Factors that could cause actual results to differ materially include, but are not limited l 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; effects of geopolitical events, including war and a acts of terrorism; changes in federal or state legislation; regulation; actions of accounting regulatory bodies; and other risk factors listed from f time to time by Xcel Energy in reports filed with the SEC, including Exhibit to Xcel Energy s s report on Form 10-K K for year 2007.

3 Xcel Energy Corporate Strategy Grow our core business and meet the environmental challenge Achieve annual EPS growth of 5 7% Increase dividend by 2 4% annually Reduce emissions by 2020

4 Value Proposition Environmental leader Low-risk regulated utility Constructive regulatory environment Flexible investment opportunities Strong balance sheet Solid liquidity Modest financing needs in 2009 Sustainable dividend & EPS growth

5 Company Profile NSP-Minnesota 41% of earnings * PSCo 48% of earnings * NSP-Wisconsin 6% of earnings * SPS 5% of earnings * Traditional Regulation Operate in 8 States Combination Utility Electric 81% of net income Gas 19% of net income Customers 3.4 million electric 1.9 million gas * Percentages based on 2008 Ongoing Earnings 2008 EPS Ongoing: $1.45; GAAP: $ Dividend $0.95 per share annualized 2008 Financial Statistics NI Ongoing: $641 million NI GAAP: $646 million Assets: $25 billion Equity ratio: 44%

6 Clean Energy Actions Increase renewable energy Uprate and extend lives of nuclear plants Expand demand side management, energy efficiency and conservation efforts Increase investment in transmission Upgrade environmental systems and improve efficiencies of generation plants Replace/repower inefficient generation Evaluate carbon capture and storage

7 Renewable Energy Today 3,700+ MW of renewable resources National leadership positions Diverse resource portfolio Nuclear 11% 2007 Energy Supply Natural Gas 31% Renewables 9% Wind Hydro Biomass RDF Solar Landfill Coal 49%

8 Renewable Strategy Drivers Increasing customer interest State legislative mandates Emerging Federal climate policy Excellent renewable resources Cost parity momentum Renewables offer flexibility Opportunity for growth Leadership advantages

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

10 Wind Strategy Expand wind portfolio Power purchase agreements Community-based energy development Utility ownership Balance portfolio with ownership Partner with experienced developers Utilize build/transfer structure Execute specific regional strategies Partnerships to foster innovation/integration Promote customer programs: WindSource

11 Wind Ownership Northern States Power Minnesota Merricourt Wind 150 MW In-service 2011 Ponnequin Wind In-service 1999 Grand Meadow Wind 100 MW In-service December Nobles Wind 201 MW In-service 2010 Public Service Company of Colorado Southwestern Public Service

12 Wind Growth Wind Growth 10,000 8,000 6,000 MW SPS PSCo NSP 4,000 2,000 0 Projected

13 Solar Strategy Increase solar energy s s role in renewable portfolio Capture abundant resources in Colorado and New Mexico Capitalize on public/environmental support Monitor technology and cost evolution Assess opportunity/challenge with distributed solar Infrastructure investment; Smart Grid integration Cost parity momentum Complement plans with regulatory strategy

14 Solar Development Central Solar Alamosa Central Solar Plant Distributed Solar Solar*Rewards 14 MW / 2,500+ installations Resource Plan expands solar 64 MW customer-sited sited by MW Resource Plan expands solar Current RFP 75 MW Potential RFP MW

15 , SPS PSCo , SPS PSCo Solar Growth Solar Growth MW MW Projected Projected

16 Projected Renewable Resources Energy Natural Gas 31% Nuclear 11% Renewables 9% Natural Gas 17% Nuclear 13% Renewables 24% Coal 49% Coal 46% Capacity MW Wind Hydro Solar Biomass RDF Landfill Geothermal , ,

17 SmartGridCity - Boulder, Colorado Pilot project underway Major partners Accenture Current Group Gridpoint OSIsoft Schweitzer Engineering Laboratories SmartSynch Ventex Build out completed 2009

18 Scope of Smart Grid Pilot Project Smart meters Real time, high speed, two way way communications Intelligent home/smart appliances Demand Side Management Distributed generation Renewable energy sector growth Energy storage devices

19 Financial Execution Delivering 2 4% Dividend Growth Annualized dividend per share CAGR = 3.4% $0.86 $0.89 $0.83 $0.92 $

20 Financial Execution Delivering on 5 7% EPS Growth Guidance Range CAGR = 6.9% ** $1.45 $1.55 $1.55 $1.15 $1.30 $1.43 $ Ongoing * 2006 Ongoing * 2007 Ongoing * 2008 Ongoing * 2009 Guidance * Ongoing EPS excludes the impacts of COLI and disc ops. A reconciliation to GAAP earnings is included in the appendix ** Estimated CAGR is based on middle of 2009 guidance range

21 Why We are Positioned for Success Ability to meet state RPS and environmental initiatives Well positioned for potential Federal climate policy Uniquely able to provide clean energy to customers and hedge against fuel price volatility Renewable portfolio extends the decision time horizon for new base load generation Geographic advantage

22 Appendix

23 Strong Balance Sheet As of December 31, 2008 Millions Percent Equity $ 6,964 44% Preferred Equity 105 1% Current Portion LT Debt 559 3% Short-term term Debt 455 3% Long-term Debt * 7,732 49% Total Capitalization $15, % * Long-term debt includes $400 million of hybrid securities which receives 50% equity treatment from the rating agencies.

24 Solid Credit Ratings Secured Unsecured Fitch Moody s S&P Fitch Moody s S&P * Hold Co. BBB+ Baa1 BBB NSPM A+ A2 A A A3 BBB+ NSPW A+ A2 A A A3 A- PSCo A A3 A A Baa1 BBB+ SPS BBB+ Baa1 BBB+ * S&P upgraded the unsecured ratings for NSPM, NSPW and PSCo on November 5, 2008

25 Capital Forecast Dollars in millions $1,800 $2,300 $2,350 $2, Other Nuclear Fuel Gas Electric Distribution Electric Transmission Electric Generation Wind

26 Reconciliation Ongoing EPS to GAAP Dollars per share Ongoing Earnings $1.15 $1.30 $1.43 $1.45 PSRI/COLI (0.08) 0.01 Continuing Operations $1.20 $1.35 $1.35 $1.46 Disc Ops GAAP Earnings $1.23 $1.36 $1.35 $1.46 As a result of the termination of the COLI program, Xcel Energy s s management believes that ongoing earnings provide a more meaningful comparison of earnings results between different periods in which the COLI program was in place and is more representative of Xcel Energy s s fundamental core earnings power. Xcel Energy s s management uses ongoing earnings internally for financial planning ning and analysis, for reporting of results to the Board of Directors,, in determining whether performance targets are met for performance-based compensation, and when communicating its earnings outlook to analysts and investors.

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