1. Ben Fowke Chairman, President and CEO Xcel Energy Today’s Energy Outlook

3. Xcel Energy: Who We Are  Fortune 200 company  5 million customers in 8 states  $10.7 billion in revenues  No. 1 provider of wind energy  Dow Jones Sustainability Index  No. 2 on Most Trusted Companies in America

4. NSP-Minnesota: Who We Are  1.4 million electric customers  500,000 natural gas customers  ~5,400 employees  Largest property tax payer in Minnesota  Active community partners  Energy assistance  United Way  Non-profit grants

5. Today’s Energy Challenges  Our aging infrastructure  Managing environmental hurdles  Investments, capital and cost  Today’s choices for tomorrow  The utility of the future

6. Building the Electric System  US Third Industrial Revolution  Economies of scale with 7% annual growth – doubling every 10 years 1970’s – 1980’s  Inflation & higher cost per unit  Environmental concerns emerge Post WWII – 1960’s

7. Average Percent of Disposable Income and Growth Rates of Percentage (1960-2011) 2.5% 1.2% 0.1% -1.4%

8. A Better Product Cleaner More Reliable Safer OSHA Incidents Number of Transmission Events Resulting in Load Loss Tons of SO2

9. Environmental Regulatory Timeline for Coal Units Ozone (O 3 ) PM/PM 2.5 MATS Proposed Ozone NAAQS Proposed Begin CAIR Phase I Annual SO 2 Cap Adapted from Wegman (EPA 2003) Updated 01-12-11 Xcel Updated 03-27-12 PM-2.5 NAAQS Final SO 2 / NOx Secondary NAAQS Final SO 2 /NOx CAMR & Delisting Rule Vacated MATS Transport Rule Proposal Issued (CAIR Replacement) MATS Final CAIR Vacated MATS Compliance Date CAIR Remanded CAIR / CSAPR Begin CAIR Phase I Annual NOx Cap 316(b) Proposed Rule 316(b) Final Rule 316(b) Compliance 3-4 Yrs After Final Rule Effluent Guidelines Proposal Water Effluent Guidelines Final Rule Expected Effluent Guidelines Compliance 3-5 Yrs After Final Rule Begin Compliance With CCB Rule (Ground Water Monitoring, Double Liners, Closure, Dry Ash Conversion) Ash CCB Rule Proposal Transport Rule (CSAPR) Final CO 2 Ozone NAAQS Final Rule Expected GHG NSPS Proposal (New Plants) GHG NSPS Proposal (Existing Plants) EPA’s Regulatory Agenda Begin CAIR Phase I Seasonal NO X Cap CSAPR Stayed Regional Haze Reasonable Further Progress SIP Due ’08 ’09 ’10 ’11 ’12 ’13 ’14’15 ’16 ’17’18 NO X Primary NAAQS Final SO 2 Primary NAAQS Final CO 2 Regulation (PSD/BACT)

10. Environmental Leadership Carbon Dioxide Nitrogen Oxide ↓ 26% ↓ 80% ↓ 71% NSP-Minnesota owned–generation, emissions in thousands of tons Sulfur Dioxide

11. Upper Midwest Fuel Mix * As filed in current Resource Plan Current Coal44% Nuclear29% Natural Gas 7% Other Renewables 10% Wind10% 2025 Coal38% Nuclear28% Natural Gas 17% Other Renewables 4% Wind13%

12. Capital Investment Xcel Energy NSP-Minnesota NSP-Minnesota44% PSCo32% SPS17% NSP-Wisconsin7% Transmission 28% Distribution13% Generation30% Environmental5% Nuclear Fuel 13% Other7% Natural Gas 4% 2012 – 2016 Total: $13.4 Billion 2012 – 2016 Total: $5.9 Billion

13. Projected Financing Plan 2012 – 2016 * Cash from operations, net of dividend and pension funding Dollars in millions Cap Ex CFO * New Debt DRIPEquity Funding capital expenditures Refinanced Debt

14. Resource Decisions: Making Choices for Tomorrow Today  30 – 50 year timeframe  Options  Conservation (demand-side management)  Renewables (wind, solar)  Coal  Nuclear  Natural Gas

15. Natural Gas Price Forecast Dollars per MMBtu 2008 Forecast 2012 Forecast Current NYMEX Average: $9.51 Average: $5.57 Average: $5.22

16. Resource Cost Dollars Cost Subsidized Cost With No Subsidy

17. NREL and DOE 2020 Rooftop PV Solar Cost Estimates and Targets $4.25/W $2.74/W $381/MWh $255/MWh $171/MWh Customer Rates ($127/MWh) Will Solar Be Competitive? $0 $100 $200 $300 $400 $500 NREL 2010 NREL 2020 Estimated DOE 2020 SunShot Total Cost ($/MWh) $1.79/W

18. Utility of the Future

19. Downtown Minneapolis 5 th Street Substation Transformer Replacement

20. 1 Minute

21. Downtown Minneapolis 5 th Street Substation Transformer Replacement 3 Minute