Energy Jobs in a Changing WorldEnergy Jobs in a Changing World

Judy PoferlJudy PoferlPresident and CEO, NSP-MNPresident and CEO, NSP-MNAugust 17, 2011August 17, 2011

Maintain reasonably Maintain reasonably priced, reliable energypriced, reliable energy

Address risk through Address risk through advanced, balanced, and advanced, balanced, and diverse energy portfoliodiverse energy portfolio

Create value for Create value for customers, shareholders customers, shareholders and employeesand employees

Northern States Power Company

Minnesota

Northern States Power Company

Minnesota

Public Service Company of

Colorado

Public Service Company of

Colorado

Southwestern Public Service

Company

Southwestern Public Service

Company

Northern States Power Company

Wisconsin

Northern States Power Company

Wisconsin

Xcel Energy Service TerritoriesXcel Energy Service Territories

Gas Customers 1.9 MGas Customers 1.9 M

Electric Customers 3.4 MElectric Customers 3.4 M

Our FocusOur Focus

Reasonable costReasonable cost

Safe serviceSafe service

Reliable serviceReliable service

Forward-lookingForward-looking

Fuel diversityFuel diversity

Environmental leadership Environmental leadership

Innovation for the futureInnovation for the future

Our Investments Result in JobsOur Investments Result in Jobs

NSP Planned Infrastructure Investments NSP Planned Infrastructure Investments ~ $7.2 Billion Between 2010 and 2015~ $7.2 Billion Between 2010 and 2015

0 $0.5B $1.5B $2.0B $2.5B

WindWind

DistributionDistribution

Coal/Nat GasCoal/Nat Gas

NuclearNuclear

TransmissionTransmission

$1.0B

TransmissionTransmission

Ensuring a reliable energy Ensuring a reliable energy system for the futuresystem for the future

─ Example: CapX2020Example: CapX2020

─ First major transmission build-out in First major transmission build-out in the Upper Midwest since the 1970’sthe Upper Midwest since the 1970’s

Focus on transmission Focus on transmission projects needed to serve our projects needed to serve our customerscustomers

Bemidji

Grand RapidsFargo

Alexandria

MonticelloGranite

Falls Hampton

La CrosseRochester

Minneapolis

Brookings

Upper Midwest Fuel MixUpper Midwest Fuel Mix

CurrentNuclear

30%Other15%

Coal 39%

Wind9%

NaturalGas7%

2025

Nuclear28%

Other7%

Coal 29%

Wind20%

NaturalGas16%

Opportunities From InnovationOpportunities From Innovation

#1 wind energy provider#1 wind energy provider

Nationally known energy Nationally known energy efficiency effortsefficiency efforts

Solar capacity – top tenSolar capacity – top ten

Lead the utility sector in Lead the utility sector in reducing air emissionsreducing air emissions

Stakeholder AlignmentStakeholder Alignment

Policymakers Building long-term goals

Customers

Having access to sound programs and options

Keeping rates reasonable

RegulatorsImplementing an efficient and effective framework for oversight and cost recovery

Community Creating jobs and energy sustainability

Shareholders Reducing risk and providing growth

Our Employee ProfileOur Employee Profile

35% of Xcel Energy employees are eligible to retire 35% of Xcel Energy employees are eligible to retire in 5 yearsin 5 years

Opportunities will be available in many job Opportunities will be available in many job functionsfunctions

Emerging technologies require new skillsEmerging technologies require new skills

A more diverse workforceA more diverse workforce

North Dakota Electric RatesNorth Dakota Electric Rates

7.99¢ 8.49¢ 8.93¢10.04¢

11.51¢

Xcel EnergyND

SD MT MN U. S.

Average residential electric rates by stateAverage residential electric rates by state

Source: U.S. Energy Information Administration website, Rpt 861. Rates reflect 2009 averages.

Built to LastBuilt to Last

We have built on a solid strategy to meet the needs We have built on a solid strategy to meet the needs of our customers and grow our business of our customers and grow our business

Our proactive initiatives have been achieved at Our proactive initiatives have been achieved at minimal costminimal cost

We have increased our fuel diversity, which We have increased our fuel diversity, which balances fuel purchase price and environmental riskbalances fuel purchase price and environmental risk

We are well positioned to meet new environmental We are well positioned to meet new environmental regulations that may come in the near futureregulations that may come in the near future