NSPNSP––Wisconsin PlansWisconsin Plans

Mike SwensonMike SwensonPresident and CEOPresident and CEONorthern States Power CompanyNorthern States Power Company––Wisconsin,Wisconsin,an Xcel Energy Companyan Xcel Energy Company

New York Analyst MeetingNew York Analyst MeetingDecember 5, 2007December 5, 2007

Safe HarborSafe Harbor

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, capital statements include projected earnings, cash flows, capital expenditures and other statements and are identified in this docexpenditures and other statements and are identified in this document ument by the words by the words ““anticipate,anticipate,”” ““estimate,estimate,”” ““expect,expect,”” ““projected,projected,””““objective,objective,”” ““outlook,outlook,”” ““possible,possible,”” ““potentialpotential”” and similar and similar expressions. Actual results may vary materially. Factors that expressions. Actual results may vary materially. Factors that could could cause actual results to differ materially include, but are not lcause actual results to differ materially include, but are not limited to: imited to: general economic conditions, including the availability of credigeneral economic conditions, including the availability of credit, t, actions of rating agencies and their impact on capital expendituactions of rating agencies and their impact on capital expenditures; res; business conditions in the energy industry; competitive factors;business conditions in the energy industry; competitive factors;unusual weather; effects of geopolitical events, including war aunusual weather; effects of geopolitical events, including war and acts nd acts of terrorism; changes in federal or state legislation; regulatioof terrorism; changes in federal or state legislation; regulation; actions n; actions of accounting regulatory bodies; the higher degree of risk assocof accounting regulatory bodies; the higher degree of risk associated iated with Xcel Energywith Xcel Energy’’s nonregulated businesses compared withs nonregulated businesses compared withXcel EnergyXcel Energy’’s regulated business; and other risk factors listed from s regulated business; and other risk factors listed from time to time by Xcel Energy in reports filed with the SEC, inclutime to time by Xcel Energy in reports filed with the SEC, including ding Exhibit 99.01 to Xcel EnergyExhibit 99.01 to Xcel Energy’’s report on Form 10s report on Form 10--K for year 2006.K for year 2006.

Northern States PowerNorthern States Power––WisconsinWisconsin

2006 Customers2006 Customers

2006 Financials2006 FinancialsEarnings Cont. OpEarnings Cont. Op $44 million$44 millionAssets $1,251 millionAssets $1,251 millionGAAP ROEGAAP ROE 9.7%9.7%Equity RatioEquity Ratio 57.1%57.1%

22006 Owned Generation006 Owned GenerationGas/Oil 516 MWGas/Oil 516 MWHydro 247 MWHydro 247 MWBiomass 70 MWBiomass 70 MWCoal 37 MWCoal 37 MW

2006 Retail Sales2006 Retail Sales(Thousands of MWh / MMBtu)(Thousands of MWh / MMBtu)Electric 6,173Electric 6,173Gas 14,568Gas 14,568

ElectricElectric 244,000244,000GasGas 100,000100,000

WisconsinWisconsin

Upper MichiganUpper Michigan

2006 Rate Base and ROE2006 Rate Base and ROE

Wisconsin ElectricWisconsin Electric $556$556 10.8%10.8%Wisconsin GasWisconsin Gas 7777 7.47.4Michigan ElectricMichigan Electric 1414 8.78.7Michigan GasMichigan Gas 33 5.65.6WholesaleWholesale 2929 4.44.4Total Rate BaseTotal Rate Base $679$679

WeatherNormalized

Rate Base Earned ROE

WeatherWeatherNormalized Normalized

Rate BaseRate Base Earned ROEEarned ROE

Dollars in millionsDollars in millions

Regulated Equity Ratio = 56.1%Regulated Equity Ratio = 56.1%

Environmental PolicyEnvironmental Policy

StateState

Renewable Renewable Portfolio Portfolio

Standards Standards DemandDemand--Side Side Management Management

Carbon Carbon ReductionReduction

WisconsinWisconsin 12.85% 12.85% (2015)(2015)

Public Public Benefits Benefits ** N/AN/A

Note: The allocation of NSP system wind generationNote: The allocation of NSP system wind generationto NSPto NSP--Wisconsin is approximately 167 MWWisconsin is approximately 167 MWas of year end 2007as of year end 2007

* Utility funded, state* Utility funded, state--run DSM programsrun DSM programs

Actions to AddressActions to AddressEnvironmental InitiativesEnvironmental Initiatives

Installing NOx controls at Bay Front plantInstalling NOx controls at Bay Front plant

Increasing amount of biomass at Bay Front plantIncreasing amount of biomass at Bay Front plant

Refurbishing Dells hydro plant to increase capacity Refurbishing Dells hydro plant to increase capacity

Improving emissions profile at French Island plantImproving emissions profile at French Island plant

Relicensed hydro facilities for 30 yearsRelicensed hydro facilities for 30 years

Capital ExpendituresCapital Expenditures

0

25

50

75

100

125

2007 2008 2009 2010 2011

Dollars in millionsDollars in millions

Depreciation

$75$75

$100$100$90$90

$80$80 $80$80

Cost Recovery MechanismsCost Recovery Mechanisms

Forward test yearForward test year

Electric Fuel Rules (WI)Electric Fuel Rules (WI)

Purchased gas adjustment (WI)Purchased gas adjustment (WI)

Electric fuel cost factor (MI)Electric fuel cost factor (MI)

Gas cost factor (MI)Gas cost factor (MI)

Electric fuel cost adjustment (Wholesale)Electric fuel cost adjustment (Wholesale)

Key PrioritiesKey Priorities

Pursue changes to Wisconsin’s Electric Fuel RulesPursue changes to Wisconsin’s Electric Fuel Rules

Explore opportunities to earn an enhancedExplore opportunities to earn an enhancedreturn on renewable facilitiesreturn on renewable facilities

Convert Bay Front plant to 100% biomassConvert Bay Front plant to 100% biomass

Implement Distribution Investment PlanImplement Distribution Investment Plan

Strengthen people and talent managementStrengthen people and talent management

Positioned for SuccessPositioned for Success

High customer satisfactionHigh customer satisfaction

Favorable regulatory environmentFavorable regulatory environment

#1 renewable energy provider in Wisconsin#1 renewable energy provider in Wisconsin

Lowest residential electric rates amongLowest residential electric rates amongmajor Wisconsin utilitiesmajor Wisconsin utilities