The Future of Clean EnergyThe Future of Clean EnergyDevelopments in Sustainable TechnologyDevelopments in Sustainable Technology

The Future of Clean EnergyThe Future of Clean EnergyDevelopments in Sustainable TechnologyDevelopments in Sustainable Technology

Ben FowkeBen Fowke Executive Vice-President and Chief Financial Officer Executive Vice-President and Chief Financial Officer

Xcel Energy Service TerritoryXcel Energy Service Territory

Northern States Northern States Power Company- Power Company-

MinnesotaMinnesota

Public Service Public Service Company of Company of

ColoradoColorado

Southwestern Southwestern Public ServicePublic Service

Northern States Northern States Power Company- Power Company-

WisconsinWisconsin

Xcel EnergyElectric Customers 3.4 millionGas Customers 1.9 million

Xcel EnergyElectric Customers 3.4 millionGas Customers 1.9 million

Largest provider of retailLargest provider of retailwind energy in U.S.wind energy in U.S.

Environmental LeadershipEnvironmental Leadership

Energy Conservation:Energy Conservation:Avoided more than eleven Avoided more than eleven

250-MW plants250-MW plants

Renewable Energy:Renewable Energy: 3,643 3,643 MW on our system in 2008MW on our system in 2008

Carbon Emission Carbon Emission Reduction:Reduction:

Reduced by 26 million tons Reduced by 26 million tons since 2003since 2003

SOSO22/NOx:/NOx: Reduced 66K tons of SO Reduced 66K tons of SO22 and 43K and 43K

tons NOxtons NOx

Projected Resource Mix

Coal 52% Coal 52%

Renewables13%

Renewables13%

Natural Gas 22%

Natural Gas 22%

Nuclear 12%

Nuclear 12%

Coal 46% Coal 46%

Renewables24%

Renewables24%

Natural Gas 17%

Natural Gas 17%

Nuclear 13%

Nuclear 13%

2008200820082008 2020202020202020

WindWind HydroHydro SolarSolar BiomassBiomass RDFRDF LandfillLandfill GeothermalGeothermal WindWind HydroHydro SolarSolar BiomassBiomass RDFRDF LandfillLandfill GeothermalGeothermalMWMWMWMW

20082008 2,9352,935 365365 3232 194194 100100 1818 0020202020 7,4007,400 400400 800800 250250 6060 2020 202020082008 2,9352,935 365365 3232 194194 100100 1818 0020202020 7,4007,400 400400 800800 250250 6060 2020 2020

CapacityCapacityCapacityCapacity

EnergyEnergyEnergyEnergy

Other1%

Other1%

Geographic AdvantageGeographic AdvantageBiomass ResourceBiomass Resource

Solar ResourceSolar Resource

Wind ResourceWind Resource

Xcel EnergyXcel EnergyStates ServedStates Served

Wind DensityWind DensityHighHigh

LowLow

Source: National Renewable Energy LaboratorySource: National Renewable Energy Laboratory

0

500

1,000

1,500

2,000

2,500

3,000

3,500

2005

2007

2009

2011

2013

2015

2017

2019

2021

2023

2025

AEO2007reference case

AEO2009reference case

Emissions underACES (per EPAanalysis)

Electric sectorallocation underACES

American Clean EnergyAmerican Clean Energyand Security Act (ACES)and Security Act (ACES)

Million metric tons CO2

Projected Electric Sector CO2 Emissionsand Allocation

Meeting the ChallengeMeeting the Challenge

EPRI: Value of Clean Technologies*EPRI: Value of Clean Technologies*EPRI: Value of Clean Technologies*EPRI: Value of Clean Technologies*

0

500

1000

1500

2000

2500

3000

3500

19901990 19951995 20002000 20052005 20102010 20152015 20202020 20252025 20302030

U.S. Electric Sector CO2 Emissions (million metric tons)U.S. Electric Sector CO2 Emissions (million metric tons)U.S. Electric Sector CO2 Emissions (million metric tons)U.S. Electric Sector CO2 Emissions (million metric tons)

EIA Base Case 2007

* Achieving all targets is very aggressive, but potentially feasible

TechnologyTechnology

Advanced Coal Generation

Distributed Generation

Plug-in Hybrid Vehicles

Carbon Capture & Sequestration

Efficiency

Renewables

Nuclear Generation

NSP Planned Carbon ReductionsNSP Planned Carbon Reductions

COCO22 with Reductions with Reductions

COCO2 2 Reduction from 2005 Existing LevelsReduction from 2005 Existing Levels

Wind Wind MHMHUpgradesUpgrades

DSMDSMMERPMERPCOCO22 w/o Reductions w/o Reductions

Tons COTons CO22

20052005 20202020

20,000,00020,000,000

25,000,00025,000,000

30,000,00030,000,000

35,000,00035,000,000

40,000,00040,000,000

15,000,00015,000,000

COCO2 2 LevelsLevels

Carbon Emissions ReductionCarbon Emissions Reduction20+% by 202020+% by 2020

Wind: A Model forWind: A Model forTechnological InnovationTechnological Innovation

0

2,000

4,000

6,000

8,000

SPS PSCo NSPM XcelEnergy

2000 2007 2020

MW MW

New Renewable PotentialNew Renewable Potential

Energy StorageEnergy Storage

Achieving Demand Side SavingsAchieving Demand Side Savings

Premium Efficiency MotorPremium Efficiency Motor

LED LightingLED Lighting

SmartGridCitySmartGridCityTMTM

End UserEnd User

Transmission Line

SubstationSubstation

Distribution Distribution SystemSystem

Grid Monitoring/ControlGrid Monitoring/Control SubstationsSubstations TransformersTransformers Control pointsControl points

Two-way Two-way Communications Communications

BPLBPL Cellular/WiFi/WiMaxCellular/WiFi/WiMax Meshed solutionsMeshed solutions

End user becomes part End user becomes part of the solutionof the solution

Smart Grid Customer ApplicationsSmart Grid Customer Applications

PHEV and New Supply SourcesPHEV and New Supply Sources

Pictures from CarbonDay

0

10

2030

40

50

6070

80

90

0

10

2030

40

50

6070

80

90Dollars in billionsDollars in billions

Investment HorizonInvestment Horizon

Source: EEISource: EEI

US Shareholder-Owned Electric UtilitiesUS Shareholder-Owned Electric UtilitiesCapital Spending: Trailing 12 MonthsCapital Spending: Trailing 12 Months

Technology Development Continuum Technology Development Continuum

Research & Development Demonstration Deployment

Traditional utility Traditional utility industry positionindustry position

Utility role responsive to demandUtility role responsive to demandfor cleaner technologiesfor cleaner technologies

Aligning InterestsAligning Interests

CustomersCustomers

RegulatorsRegulators UtilitiesUtilities