Investor Fact Book June 2016

Transcription

1 Investor Fact Book June 2016

2 Company Description Service Area Minnesota Michigan North Dakota Colorado South Dakota New Mexico Wisconsin Texas Xcel Energy is a major U.S. electric and natural gas company, with annual revenues of $11 billion. Based in Minneapolis, Minn., Xcel Energy operates in eight states. The company provides a comprehensive portfolio of energy-related products and services to 3.5 million electricity customers and 2.0 million natural gas customers. This book is intended only to be a summary of certain statistical information with respect to Xcel Energy and its subsidiaries. It should be read in conjunction with, and not in lieu of, the company s reports, including financials and notes to financials filed with the Securities and Exchange Commission (SEC). Refer to Xcel Energy s 2015 Form 10-K report to the SEC for more information. Some of the sections in this book contain forward-looking statements such as those regarding our 2016 earnings per share guidance and assumptions, long-term earnings per share growth, dividend increases, dividend payout ratios, and capital expenditure forecasts, that involve risks, uncertainties, and assumptions. For a discussion of factors that could affect operating results and cause actual results to differ from those projected, please see the Item 1A Risk Factors and Exhibit in Xcel Energy s Form 10-K report to the SEC. The report can be found at xcelenergy.com, Investor Relations. The forward-looking statements contained in this book speak only as of June 8, 2016, and we expressly disclaim any obligation to update any forward-looking information. This summary is not intended for use in connection with any sale, or offer to sell, or solicitation of any offer to buy securities. Inquiries concerning this summary should be directed to: Investor Relations Paul Johnson Vice President, Investor Relations [email protected] Content Xcel Energy Northern States Power Company Minnesota (NSPM) Northern States Power Company Wisconsin (NSPW) Public Service Company of Colorado (PSCo) Southwestern Public Service Company (SPS) Darin Norman Senior Analyst, Investor Relations [email protected] xcelenergy.com Our free investor relations app can be found in the app stores. Financial Objectives Long-term EPS growth of 4-6% (Based on 2015 ongoing EPS of $2.10 the midpoint of the 2015 guidance range) Annual dividend increases of 5-7% Dividend payout ratio target of 60-70% Maintain senior unsecured debt credit ratings in the BBB+ to A range Maintain senior secured debt credit ratings in the A range

3 Company Overview Xcel Energy Inc Ongoing (diluted) EPS of $ GAAP EPS was $1.94 See page 4 for reconciliation of ongoing earnings to GAAP earnings Northern States Power Company Minnesota (NSPM) Territory: MN, ND, and SD 2015 Ongoing EPS Contribution: $0.85 Customers: Electricity: 1.4 million Natural Gas: 0.5 million Electric Generating Capacity: 7,144 MW Total Assets: $17.0 billion Northern States Power Company Wisconsin (NSPW) Territory: WI and MI 2015 Ongoing EPS Contribution: $0.15 Customers: Electricity: 256,000 Natural Gas: 112,000 Electric Generating Capacity: 524 MW Total Assets: $2.3 billion Investor Fact Book June 2016 Xcel Energy Public Service Company of Colorado (PSCo) Territory: CO 2015 Ongoing EPS Contribution: $0.92 Customers: Electricity: 1.4 million Natural Gas: 1.4 million Electric Generating Capacity: 5,319 MW Total Assets: $14.2 billion Southwestern Public Service Company (SPS) Territory: TX and NM 2015 Ongoing EPS Contribution: $0.25 Electricity Customers: 389,000 Electric Generating Capacity: 4,426 MW Total Assets: $5.0 billion WYCO Development LLC (50/50 joint venture with Colorado Interstate Gas Company) 2015 Ongoing EPS Contribution: $0.04 The only common equity securities that are publicly traded are common shares of Xcel Energy Inc. The diluted earnings and EPS of each subsidiary discussed here do not represent a direct legal interest in the assets and liabilities allocated to such subsidiary but rather represent a direct interest in our assets and liabilities as a whole. Ongoing diluted EPS for Xcel Energy and by subsidiary is a financial measure not recognized under GAAP. Ongoing diluted EPS is calculated by dividing the net income or loss attributable to the controlling interest of each subsidiary, adjusted for certain items, by the weighted average fully diluted Xcel Energy Inc. common shares outstanding for the period. We use this non-gaap financial measure to evaluate and provide details of Xcel Energy s core earnings and underlying performance. We believe this measurement is useful to investors in facilitating period over period comparisons and evaluating or projecting financial results. This non-gaap financial measure should not be considered as an alternative to measures calculated and reported in accordance with GAAP. Xcel Energy Transmission Development Company, LLC (XETD) MISO Transco Xcel Energy Southwest Transmission Company, LLC (XEST) SPP Transco Xcel Energy West Transmission Company, LLC (XEWT) Western U.S. Transco 3

4 Investor Fact Book June 2016 Xcel Energy Financial Highlights Dollars in Millions, Except Per Share Data Operating revenues $11,025 $11,686 $10,915 $10,128 $10,655 Operating expenses $9,024 $9,738 $9,067 $8,306 $8,873 Ongoing earnings (a) $1,064 $1,021 $968 $888 $841 GAAP net income $984 $1,021 $948 $905 $841 Ongoing diluted EPS (a) $2.09 $2.03 $1.95 $1.82 $1.72 GAAP diluted EPS $1.94 $2.03 $1.91 $1.85 $1.72 (a) See table below for reconciliation of ongoing earnings to GAAP earnings Reconciliation of Ongoing Earnings to GAAP Earnings Ongoing earnings $1,063.7 $1,021.3 $968.4 $888.3 $840.7 Loss on Monticello LCM/EPU project (b) (79.2) SPS FERC order (c) (20.2) Prescription drug tax benefit (d) 16.9 COLI Settlement (e) 0.5 Total GAAP earnings $984.5 $1,021.3 $948.2 $905.2 $ (a) Ongoing diluted EPS $2.09 $2.03 $1.95 $1.82 $1.72 Loss on Monticello LCM/EPU project (b) (0.16) SPS FERC order (c) (0.04) Prescription drug tax benefit (d) 0.03 COLI Settlement (e) GAAP diluted EPS $1.94 $2.03 $1.91 $1.85 $1.72 (a) Amounts do not add due to rounding (b) In March 2015, the MPUC approved full recovery, including a return, on $415 million of the project costs, inclusive of AFUDC, but only allow recovery of the remaining $333 million of costs with no return on this portion of the investment for years 2015 and beyond. As a result of this decision, Xcel Energy recorded a pre-tax charge of approximately $129 million, or $79 million net of tax, in the first quarter of Given the nature of this specific item, it has been excluded from ongoing earnings. (c) As a result of the two orders issued in August 2013 by the FERC for a potential SPS customer refund, a pre-tax charge of $36 million was recorded in Of this amount, approximately $30 million ($26 million revenue reduction and $4 million of interest) was attributable to periods prior to 2013 and not representative of ongoing earnings. As such, GAAP earnings include the total after tax amount of $24.4 million and ongoing earnings exclude $20.2 million. (d) Xcel Energy implemented a tax strategy related to the allocation of funding of Xcel Energy s retiree prescription drug plan which restored a portion of the tax benefit associated with federal subsidies for prescription drug plans that had been accrued since 2004 and was expensed in 2010, resulting in the recognition of an income tax benefit (e) Related to a 2007 settlement agreement with the IRS related to a dispute associated with Xcel Energy s corporate-owned life insurance program Xcel Energy s management believes that ongoing earnings provide a meaningful comparison of earnings results and is representative of Xcel Energy s fundamental core earnings power. Xcel Energy s management uses ongoing earnings internally for financial planning and analysis, for reporting of results to the Board of Directors, and when communicating its earnings outlook to analysts and investors. Total Shareholder Return 100% Xcel Energy 22 Member Peer Group 80% EEI Investor-Owned Electrics 85.3% 74.1% 71.5% 60% 40% 50.8% 39.8% 40.0% 4 20% 0% -20% 3.8% -4.5% -3.9% One-Year Three-Year Five-Year

5 Ben Fowke Chairman, President and Chief Executive Officer Ben Fowke is chairman of the board, president and chief executive officer (CEO) of Xcel Energy. He previously served as president and chief operating officer (COO) with responsibility for overall corporate operations as well as Xcel Energy s four operating companies, which do business in eight states. Prior to being named president and COO in 2009, Fowke held a variety of executive positions at the company, including vice president and chief financial officer (CFO) and vice president and CFO of Energy Markets, where he was responsible for the financial operations of the company s commodities trading and marketing business unit. Prior to the 2000 merger of Northern States Power Co. and New Century Energies (NCE) to form Xcel Energy, he was a vice president in the NCE Retail business unit. Investor Fact Book June 2016 Xcel Energy Prior to Xcel Energy, Fowke served 10 years with FPL Group, Inc., where he held various management positions. He also has held positions outside the energy industry with DWG Corp. and KPMG. Currently he serves on the board of directors of the Edison Electric Institute, Electric Power Research Institute, Nuclear Energy Institute, Energy Insurance Mutual, Institute of Nuclear Power Operations, American Wind Energy Association, the Minnesota Business Partnership and Greater MSP. He also serves on the advisory board of the Metropolitan Economic Development Association. Fowke earned a Bachelor of Science degree in finance and accounting from Towson University and obtained his CPA in Bob Frenzel Executive Vice President and Chief Financial Officer Bob Frenzel is executive vice president and chief financial officer. He leads the finance functions of Xcel Energy and its subsidiary companies, which includes the controller s office, treasury, tax, audit, financial planning & analysis, performance and controls, risk management, investor relations, revenue requirements and business development. Frenzel joined Xcel Energy in 2016 from Energy Future Holdings, Inc., where he served as senior vice president and chief financial officer for Luminant, its competitive power generating subsidiary, and prior to that, senior vice president of strategy and corporate development. Frenzel previously worked as Vice President in the investment banking division of Goldman Sachs, following his tenure as a manager and senior consultant in the strategy, finance and economics practice at Arthur Anderson. After college, he served in the United States Navy for six years, working as a nuclear engineering officer and weapons officer. Following active duty, he served in the Navy Reserves and was promoted to lieutenant commander. Frenzel earned his bachelor s degree in industrial engineering from Georgia Tech and his master s degree in business administration from the University of Chicago Booth School of Business. He also graduated from the U. S. Navy Nuclear Power School. 5

6 Investor Fact Book June 2016 Xcel Energy Chris Clark President, Northern States Power Company Minnesota Chris Clark is president of Northern States Power Company Minnesota. Previously, Clark was Regional Vice President of Rates and Regulatory Affairs Minnesota. He was responsible for Xcel Energy s regulatory filings with the utility commissions in Minnesota, North Dakota and South Dakota, including rate, resource acquisition and service quality filings. Clark joined Xcel Energy in 1999 as a senior attorney. He was later appointed Managing Attorney, Northern States Power Company Minnesota, an Xcel Energy company, with responsibility for the company s state public utility law and power purchase agreement issues for operations in Minnesota, North Dakota, South Dakota and Wisconsin. He represented Xcel Energy in regulatory proceedings before the Minnesota Public Utilities Commission and handled most issues related to rate cases, renewable energy and long-term power purchase projects and supported retail product and programs, including conservation improvement programs. He has more than 20 years of experience in energy and regulation. Clark serves on the board of directors for the Minnesota Chamber of Commerce and People Serving People. Prior to joining Xcel Energy, he worked as an in-house attorney for Alliant Energy appearing for that company before public utility commissions in Iowa, Minnesota, Illinois and Wisconsin. He received his Bachelor of Arts degree in history and political science from the University of Iowa and earned his law degree from Drake University. David Eves President, Public Service Company of Colorado David Eves is president of Public Service Company of Colorado (PSCo), an Xcel Energy company. He also serves as a director of PSCo. He most recently served as president and CEO of Southwestern Public Service Company. He also has served as vice president of Resource Planning and Acquisition for Xcel Energy, where he had responsibility for resource planning, wholesale power supply, transmission rights, and gas transportation and storage services for all of Xcel Energy s operations in eight states. Eves received a Bachelor of Science degree in mechanical engineering from Kansas State University in He currently serves as Chairman of the Board of Trustees for Mile High United Way and he is on the Board of Directors of the Denver Metro Chamber of Commerce, Boys and Girls Clubs of Metro Denver, and the Mountain States Employers Council. He is a member of the Colorado Forum and Colorado Concern. Eves has served as a past executive committee and operating committee member at Western Systems Power Pool. 6

7 David Hudson President, Southwestern Public Service Company David Hudson is president of Southwestern Public Service Company (SPS), an Xcel Energy company. From 2010 through 2013, Hudson served as vice president, Customer and Community Relations. A native of Lubbock, Hudson began his career in 1983 as a rate engineer, becoming director of regulatory administration in Hudson testified and led multidisciplinary teams in preparing, executing and negotiating retail rate and regulatory proceedings in Texas, New Mexico, Oklahoma, Kansas, Colorado and Wyoming, including testimony before federal regulators in Washington, D.C. Active in many legislative negotiations, Hudson assumed responsibility for SPS s strategic planning in 2008, after 25 years in the regulatory arena. With a detailed understanding of SPS activities and operations, he served on numerous influential committees, representing customer interests at the Southwest Power Pool and Federal Energy Regulatory Commission. Investor Fact Book June 2016 Xcel Energy Hudson earned a Bachelor of Science in industrial engineering from Texas Tech University, and a Master s of Business Administration from West Texas State University. He is a Texas licensed professional engineer. Hudson volunteers with United Way and serves on the boards of numerous civic groups, including Amarillo Parks and Recreation Commission, The Bridge child advocacy center, and Panhandle Twenty/20 strategic planning group. Kent Larson Executive Vice President and Group President, Operations Kent Larson is executive vice president and group president, Operations, at Xcel Energy. He has overall responsibility for Energy Supply, Transmission, Distribution, Gas, Commercial and Fuel Operations, Supply Chain, and Customer Care business functions in eight states. He previously served as vice president and chief energy supply officer, with overall responsibility for plant engineering, construction and operations, commercial and fuel services, environmental compliance, and corporate supply chain services. Prior to being named vice president and chief energy supply officer in 2010, Larson held various executive positions including vice president, Transmission and Operating Services, regional vice president, NSP-Minnesota; chief executive and general manager for NSP in North Dakota and South Dakota; director of Sales; and other positions focused on management, engineering and operations. Larson currently serves on the board of directors of the American Gas Association, and chair of the American Gas Association Board Safety Committee. Previously served as vice chair Hamline University; chair of the Minneapolis Regional Chamber of Commerce; vice chair, University Enterprise Laboratories; and member of the Electric Power Research Institute s Research Advisory Committee. Larson earned a bachelor s degree in electrical engineering from Iowa State University and a master s degree in business administration from the University of St. Thomas. 7

8 Investor Fact Book June 2016 Xcel Energy Marvin McDaniel Jr. Executive Vice President, Group President Utilities and Chief Administrative Officer Marvin McDaniel is Group President, Utilities and Chief Administrative Officer (CAO) of Xcel Energy. He is responsible for the four Xcel Energy operating companies: Northern States Power Company Minnesota, Northern States Power Company Wisconsin, Public Service Company of Colorado and Southwestern Public Service Company. He also oversees the Xcel Energy corporate service functions, including Business Systems, Human Resources, Employee and Public Safety, Business Services, Resource Planning and Marketing. Previously, McDaniel was the Senior Vice President of Corporate Services and CAO. McDaniel has been employed by Xcel Energy and its predecessor companies for more than 25 years. He has served in a variety of senior positions in Commercial Operations, Corporate Accounting, and Rates and Regulatory Services. He serves on the board of trustees of the Alliance for Choice in Education and the Big Brothers Big Sisters of Colorado, Inc. He serves on the policy board of the American Benefits Council and is on the board of directors of the Kempe Foundation. Additionally, he is on the Global Business Management and Economics Advisory Board for Regis College. McDaniel earned a Bachelor of Science degree in business administration from Colorado State University and a Master of Business Administration degree from Regis University. He is also a Certified Public Accountant. Tim O Connor Senior Vice President and Chief Nuclear Officer Tim O Connor is senior vice president and chief nuclear officer for Xcel Energy. He is responsible for the Xcel nuclear strategic direction, business plans, finance and operations in the various operating jurisdictions for the company. Currently that includes corporate, the operations of the Monticello and Prairie Island nuclear generating plants as well as the decommissioning and nuclear fuel storage outside of Minnesota. O Connor joined Xcel Energy in 2007 as site vice president at the Monticello plant. During the period of 2007 to 2012 the site was recognized by the Institute of Nuclear Power Operations for exemplary plant operations. In June 2012 he was appointed vice president of corporate engineering/nuclear regulatory compliance and licensing for the nuclear fleet. He has over 34 years of commercial nuclear experience with both boiling water and pressurized water reactors. He has served as site vice president at Constellation Energy Group s Nine Mile Point station in New York; vice presidential roles at the Public Service Enterprise Group (PSEG) for the Hope Creek and Salem plants. Other roles were with Exelon as plant manager at the LaSalle station and operations manager at Dresden and Zion plants as well as other senior management positions in maintenance, operations, and engineering. O Connor held a position with the Institute of Nuclear Power Operations (INPO) as a nuclear plant evaluation team manager on a reverse loaned assignment. O Connor received his mechanical engineering degree from Marquette University in Milwaukee and has completed executive business programs with the Chicago Kellogg School of Business. O Connor serves on the USA board of directors, chairman of EPRI and NEI industry high level waste management (nuclear fuel) committees and the board of directors for the Monticello community Economic Development group. 8

9 Judy Poferl Senior Vice President, Corporate Secretary and Executive Services Judy Poferl is senior vice president and corporate secretary, responsible for executive services. Previously, Poferl was president and CEO, Northern States Power Company Minnesota, an Xcel Energy company, with responsibility for the company s electric and natural gas operations in Minnesota, North Dakota and South Dakota. Before that, she was regional vice president, Customer and Community Relations, NSP- Minnesota, with responsibility for policy development, customer and community affairs in Minnesota and the Dakotas. Poferl has more than 23 years of experience in energy and regulation. She directed the Minnesota regulatory and legislative group beginning in 2006, after having taken on increasing responsibilities in the regulatory area since she joined the company in Investor Fact Book June 2016 Xcel Energy Prior to joining Xcel Energy, Poferl held leadership positions within the Minnesota Department of Public Service (now Division of Energy Resources) and Minnegasco (now CenterPoint Energy Minnegasco), where she managed state and federal regulatory activities. Poferl currently serves on the board of directors of the Minnesota Chamber of Commerce, the Minneapolis Downtown Council and Greater Twin Cities United Way, serves as a trustee for the College of St. Benedict and Science Museum of Minnesota and is a member of the Minnesota Women s Economic Roundtable. She has a Bachelor of Arts degree in government from the College of St. Benedict and a Master of Arts degree in public affairs from the University of Minnesota s Hubert H. Humphrey Institute of Public Affairs. Jeff Savage Senior Vice President and Controller Jeff Savage is senior vice president and controller of Xcel Energy. In his prior position as senior director, Financial Reporting, Corporate and Technical Accounting, Savage had responsibility for preparing and filing financial and statistical reports with the Securities and Exchange Commission, Federal Energy Regulatory Commission and numerous state regulatory agencies for Xcel Energy and its four utility subsidiaries. Additionally, he directed the documentation and execution of internal controls required for Sarbanes Oxley processes, the review and interpretation of new and proposed accounting pronouncements and complex accounting issues as well as the monthly, quarterly and year-end accounting close process. Prior to joining Xcel Energy in 2007, Savage held financial reporting, technical accounting, financial consolidation, Sarbanes-Oxley and internal audit positions at The Mosaic Company and Regis Corporation. He also spent six years as an audit manager at PricewaterhouseCoopers in Minneapolis, Minn. Savage earned his undergraduate degree in accounting and finance from Colorado State University in Fort Collins, Colo. He is a Certified Public Accountant. 9

10 Investor Fact Book June 2016 Xcel Energy Mark Stoering President, Northern States Power Company Wisconsin Mark Stoering is president of Northern States Power Company Wisconsin, an Xcel Energy company. Previously he served as vice president, Portfolio Strategy and Business Development in Minneapolis, and was responsible for the company s business portfolio management, including renewable energy strategy and the development of Xcel Energy s renewable energy asset portfolio. He also had responsibility for corporate strategy development and corporate business planning processes. He has more than 23 years of experience in the electric and gas utility industry. Stoering joined Xcel Energy as an economic analyst and has served in numerous corporate finance functions. Before joining the company, he worked in the Semiconductor Group at Texas Instruments. He recently served as a member of the Electric Power Research Institute Renewables Executive Advisory Committee and the Department of Energy s Energy Efficiency and Renewable Energy Federal Advisory Committee. He also has participated in partnership in renewable energy demonstration projects with national laboratories and academic institutions. Stoering serves on the Minnesota Children s Museum board of directors and the Iowa State University College of Business Dean s Advisory Council. He contributed six years of service with the University of Minnesota Carlson School of Management Alumni Advisory Board, including two years as board president. He also has served as an advisor in the University of Minnesota Career Mentoring Program and as a high school applied economics instructor for Junior Achievement of the Twin Cities. Stoering earned a Master of Business Administration degree from the University of Minnesota Carlson School of Management and a Bachelor of Business Administration degree in corporate finance from Iowa State University. Scott Wilensky Executive Vice President and General Counsel Scott Wilensky is executive vice president and general counsel at Xcel Energy. Previously he was vice president of Regulatory and Resource Planning for all of Xcel Energy s operating companies. He has more than 25 years of experience in utility regulation, having served both as managing director of Rate Revenue and as managing director of Government Affairs. Before coming to Xcel Energy, he spent 10 years as assistant attorney general with the Minnesota Attorney General s Office in areas affecting public utility regulation. Wilensky serves on the board of directors for Project for Pride in Living, Twin Cities Diversity in Practice, and Center for Legal Inclusiveness, based in Denver, Colorado. He also is a member of the Minnesota State Bar Association Public Utilities Sector. Wilensky earned a law degree from Thomas M. Cooley Law School, Lansing, Mich., and a bachelor s degree from the University of Michigan, Ann Arbor. 10

11 Brian Van Abel Vice President and Treasurer Brian Van Abel is vice president and treasurer. He joined Xcel Energy in 2009 and advanced to assistant treasurer before assuming his current role. He holds a Master of Business Administration degree in finance and strategy from the University of Michigan and a bachelor s degree in economics from Dartmouth College. Investor Fact Book June 2016 Xcel Energy Paul A. Johnson Vice President, Investor Relations Paul A. Johnson is vice president, Investor Relations. He previously served as managing director and assistant treasurer. He has held a variety of financial positions in the company, including director of Investor Relations and director of External Reporting. Johnson graduated with a Bachelor of Science in Business from Winona State University and an MBA from the University of St. Thomas. In addition, he is a CFA charterholder and has passed the CPA and CMA exams. 11

12 Investor Fact Book June 2016 Xcel Energy Xcel Energy Inc. Selected Financial Data Years Ended December 31 Millions of Dollars, Thousands of Shares, Except Per Share Data Operating revenues $11,025 $11,686 $10,915 $10,128 $10,655 Operating expenses 9,024 9,738 9,067 8,306 8,873 Net income 984 1, Earnings available to common shareholders 984 1, Weighted average common shares outstanding: Basic 507, , , , ,039 Diluted 508, , , , ,615 EPS: Basic $1.94 $2.03 $1.91 $1.86 $1.72 Diluted Dividends declared per common share Book value per share Return on average common equity 9.5% 10.3% 10.3% 10.4% 10.1% Ratio of earnings to fixed charges Non-GAAP: Ongoing earnings (a) 1,064 1, Ongoing diluted EPS (a) (a) See table on page 4 for reconciliation of ongoing earnings and diluted EPS to GAAP earnings and diluted EPS Xcel Energy Inc Ongoing Earnings Guidance Assumptions As of June 8, 2016 Xcel Energy s 2016 ongoing earnings guidance is $2.12 to $2.27 per share. Key assumptions related to 2016 earnings are detailed below: Constructive outcomes in all rate case and regulatory proceedings. Normal weather patterns are experienced for the year. Weather-normalized retail electric utility sales are projected to increase approximately 0.5 percent. Weather normalized retail firm natural gas sales are projected to be relatively flat. Capital rider revenue is projected to increase by $55 million to $65 million over 2015 levels. The change in O&M expenses is projected to be within a range of 0 percent to 1 percent from 2015 levels. Depreciation expense is projected to increase approximately $200 million over 2015 levels. Approximately $20 million of the increased depreciation expense and amortization will be recovered through the RDF rider (not included in the capital rider) in Minnesota. Property taxes are projected to increase approximately $40 million to $50 million over 2015 levels. Interest expense (net of AFUDC debt) is projected to increase $40 million to $50 million over 2015 levels. AFUDC equity is projected to increase approximately $0 million to $5 million from 2015 levels. The ETR is projected to be approximately 34 percent to 36 percent. Average common stock and equivalents are projected to be approximately 509 million shares. 12

13 Xcel Energy Inc. Consolidated Statements of Income Years Ended December 31 Amounts in Thousands, Except Per Share Data Operating revenues Electric $9,275,986 $9,465,890 $9,034,045 Natural gas 1,672,081 2,142,738 1,804,679 Other 76,419 77,507 76,198 Total operating revenues 11,024,486 11,686,135 10,914,922 Operating expenses Electric fuel and purchased power 3,762,953 4,210,142 4,018,672 Cost of natural gas sold and transported 904,794 1,372,479 1,082,751 Cost of sales other 36,216 34,352 33,323 Operating and maintenance expenses 2,329,670 2,334,379 2,273,532 Conservation and demand side management program expenses 224, , ,726 Depreciation and amortization 1,124,524 1,019, ,863 Taxes (other than income taxes) 511, , ,500 Loss on Monticello life cycle management/extended power uprate project 129,463 Total operating expenses 9,023,974 9,738,005 9,067,367 Investor Fact Book June 2016 Xcel Energy Operating income 2,000,512 1,948,130 1,847,555 Other income, net 5,400 5,296 2,972 Equity earnings of unconsolidated subsidiaries 34,390 30,151 30,020 Allowance for funds used during construction equity 55,936 89,750 87,683 Interest charges and financing costs Interest charges includes other financing costs of $24,175, $22,986 and $30,135, respectively 595, , ,199 Allowance for funds used during construction debt (26,248) (38,402) (39,179) Total interest charges and financing costs 569, , ,020 Income before income taxes 1,527,204 1,545,121 1,432,210 Income taxes 542, , ,976 Net income $984,485 $1,021,306 $948,234 Weighted average common shares outstanding: Basic 507, , ,073 Diluted 508, , ,532 Earnings per average common share: Basic $1.94 $2.03 $1.91 Diluted Cash dividends declared per common share $1.28 $1.20 $

14 Investor Fact Book June 2016 Xcel Energy Xcel Energy Inc. Consolidated Statements of Cash Flows Years Ended December 31 Amounts in Thousands Operating activities Net income $984,485 $1,021,306 $948,234 Adjustments to reconcile net income to cash provided by operating activities: Depreciation and amortization 1,142,966 1,036,515 1,001,843 Conservation and demand side management program amortization 5,225 6,033 6,531 Nuclear fuel amortization 106, ,542 98,089 Deferred income taxes 535, , ,062 Amortization of investment tax credits (5,277) (5,543) (5,753) Allowance for equity funds used during construction (55,936) (89,750) (87,683) Equity earnings of unconsolidated subsidiaries (34,390) (30,151) (30,020) Dividends from unconsolidated subsidiaries 40,128 36,707 36,416 Provision for bad debts 36,074 42,765 37,627 Share-based compensation expense 44,928 32,189 24,613 Gain on sale of transmission assets (13,661) Loss on Monticello life cycle management/extended power uprate project 129,463 Net realized and unrealized hedging and derivative transactions 21,919 5,506 (4,704) Other, net (1,326) Changes in operating assets and liabilities: Accounts receivable 65,826 (125,146) (108,911) Accrued unbilled revenues 73,625 (41,262) (23,867) Inventories (11,240) (20,558) (43,588) Other current assets 9,273 (111,300) (18,071) Accounts payable (120,002) (53,242) 132,441 Net regulatory assets and liabilities 102, , ,325 Other current liabilities 66, , ,555 Pension and other employee benefit obligations (69,256) (101,457) (156,369) Change in other noncurrent assets 10,553 44,364 (9,998) Change in other noncurrent liabilities (52,090) (15,674) 17,925 Net cash provided by operating activities 3,025,839 2,648,192 2,584,036 Investing activities Utility capital/construction expenditures (3,683,359) (3,199,791) (3,395,325) Allowance for equity funds used during construction 55,936 89,750 87,683 Proceeds from sale of transmission assets 37,118 Proceeds from insurance recoveries 27,237 6,000 90,000 Purchases of investments in external decommissioning fund (1,257,924) (595,569) (1,481,881) Proceeds from the sale of investments in external decommissioning fund 1,236, ,430 1,461,291 Investments in WYCO Development LLC and other (1,392) (2,376) (7,504) Other, net (145) (3,695) (4,766) Net cash used in investing activities (3,622,774) (3,117,251) (3,213,384) Financing activities (Repayments of) proceeds from short-term borrowings, net (173,500) 260, ,000 Proceeds from issuance of long-term debt 1,626, ,584 1,431,895 Repayments of long-term debt (250,882) (275,948) (652,451) Proceeds from issuance of common stock 7, , ,767 Dividends paid (606,574) (561,411) (514,042) Net cash provided by financing activities 602, , ,169 Net change in cash and cash equivalents 5,332 (27,536) 24,821 Cash and cash equivalents at beginning of period 79, ,144 82,323 Cash and cash equivalents at end of period $84,940 $79,608 $107,144 14

15 Xcel Energy Inc. Consolidated Balance Sheets December 31 Amounts in Thousands, Except Share and Per Share Data Assets Current assets Cash and cash equivalents $84,940 $79,608 Accounts receivable, net 724, ,506 Accrued unbilled revenues 654, ,492 Inventories 608, ,183 Regulatory assets 344, ,058 Derivative instruments 33,842 85,723 Deferred income taxes 140, ,210 Prepaid taxes 163, ,488 Prepayments and other 155, ,112 Total current assets 2,910,445 3,364,380 Investor Fact Book June 2016 Xcel Energy Property, plant and equipment, net 31,205,851 28,756,916 Other assets Nuclear decommissioning fund and other investments 1,902,995 1,832,640 Regulatory assets 2,858,741 2,774,216 Derivative instruments 51,083 53,775 Other 32,581 91,146 Total other assets 4,845,400 4,751,777 Total assets $38,961,696 $36,873,073 Liabilities and equity Current liabilities Current portion of long-term debt $657,021 $257,726 Short-term debt 846,000 1,019,500 Accounts payable 960,982 1,173,006 Regulatory liabilities 306, ,729 Taxes accrued 438, ,615 Accrued interest 166, ,536 Dividends payable 162, ,720 Derivative instruments 29,839 21,632 Other 490, ,119 Total current liabilities 4,058,297 4,064,583 Deferred credits and other liabilities Deferred income taxes 6,293,661 5,852,988 Deferred investment tax credits 68,419 73,696 Regulatory liabilities 1,332,889 1,163,429 Asset retirement obligations 2,608,562 2,446,631 Derivative instruments 168, ,936 Customer advances 228, ,945 Pension and employee benefit obligations 941, ,907 Other 261, ,653 Total deferred credits and other liabilities 11,903,599 11,179,185 Commitments and contingencies Capitalization Long-term debt 12,398,880 11,414,823 Common stock 1,000,000,000 shares authorized of $2.50 par value; 507,535,523 and 505,733,267 shares outstanding at Dec. 31, 2015 and 2014, respectively 1,268,839 1,264,333 Additional paid in capital 5,889,106 5,837,330 Retained earnings 3,552,728 3,220,958 Accumulated other comprehensive loss (109,753) (108,139) Total common stockholders equity 10,600,920 10,214,482 Total liabilities and equity $38,961,696 $36,873,073 15

16 Investor Fact Book June 2016 Xcel Energy Xcel Energy Inc. Consolidated Statements of Capitalization December 31 Amounts in Thousands, Except Share and Per Share Data NSPM Long-term debt First Mortgage Bonds, Series due: Aug. 15, 2015, 1.95% $ $250,000 March 1, 2018, 5.25% 500, ,000 Aug. 15, 2020, 2.2% 300,000 Aug. 15, 2022, 2.15% 300, ,000 May 15, 2023, 2.6% 400, ,000 July 1, 2025, 7.125% 250, ,000 March 1, 2028, 6.5% 150, ,000 July 15, 2035, 5.25% 250, ,000 June 1, 2036, 6.25% 400, ,000 July 1, 2037, 6.2% 350, ,000 Nov. 1, 2039, 5.35% 300, ,000 Aug. 15, 2040, 4.85% 250, ,000 Aug. 15, 2042, 3.4% 500, ,000 May 15, 2044, 4.125% 300, ,000 Aug. 15, 2045, 4.0% 300,000 Other Unamortized debt issuance costs (37,701) (33,602) Unamortized discount (15,911) (11,365) Total 4,496,421 4,155,080 Less current maturities ,013 Total long-term debt $4,496,410 $3,905,067 NSPW Long-term debt First Mortgage Bonds, Series due: Oct. 1, 2018, 5.25% $150,000 $150,000 June 15, 2024, 3.3% 200, ,000 Sept. 1, 2038, 6.375% 200, ,000 Oct. 1, 2042, 3.7% 100, ,000 City of La Crosse Resource Recovery Bond, Series due Nov. 1, 2021, 6% (a) 18,600 18,600 Fort McCoy System Acquisition, due Oct. 15, 2030, 7% Other 1,634 1,687 Unamortized debt issuance costs (5,144) (4,334) Unamortized discount (3,131) (2,519) Total 662, ,957 Less current maturities 1,131 1,235 Total long-term debt $661,318 $562,722 (a) Resource recovery financing 16

17 Xcel Energy Inc. Consolidated Statements of Capitalization December 31 Amounts in Thousands, Except Share and Per Share Data PSCo Long-term debt First Mortgage Bonds, Series due: Sept. 1, 2017, 4.375% (b) $129,500 $129,500 Aug. 1, 2018, 5.8% 300, ,000 June 1, 2019, 5.125% 400, ,000 Nov. 15, 2020, 3.2% 400, ,000 Sept. 15, 2022, 2.25% 300, ,000 March 15, 2023, 2.5% 250, ,000 May 15, 2025, 2.9% 250,000 Sept. 1, 2037, 6.25% 350, ,000 Aug. 1, 2038, 6.5% 300, ,000 Aug. 15, 2041, 4.75% 250, ,000 Sept. 15, 2042, 3.6% 500, ,000 March 15, 2043, 3.95% 250, ,000 March 15, 2044, 4.3% 300, ,000 Capital lease obligations, through 2060, 11.2% 14.3% 164, ,209 Unamortized debt issuance costs (26,595) (26,540) Unamortized discount (11,340) (11,480) Total 4,105,596 3,863,689 Less current maturities 8,103 8,178 Total long-term debt $4,097,493 $3,855,511 Investor Fact Book June 2016 Xcel Energy (b) Pollution control financing. SPS Long-term debt First Mortgage Bonds, Series due: June 15, 2024, 3.3% $350,000 $150,000 Aug. 15, 2041, 4.5% 400, ,000 Unsecured Senior E Notes, due Oct. 1, 2016, 5.6% 200, ,000 Unsecured Senior G Notes, due Dec. 1, 2018, 8.75% 250, ,000 Unsecured Senior C and D Notes, due Oct. 1, 2033, 6% 100, ,000 Unsecured Senior F Notes, due Oct. 1, 2036, 6% 250, ,000 Unamortized debt issuance costs (12,083) (10,890) Unamortized (discount) premium 605 (309) Total 1,538,522 1,338,801 Less current maturities 200,000 Total long-term debt $1,338,522 $1,338,801 17

18 Investor Fact Book June 2016 Xcel Energy Xcel Energy Inc. Consolidated Statements of Capitalization December 31 Amounts in Thousands, Except Share and Per Share Data Xcel Energy, Inc Long-term debt Unsecured Senior Notes, Series due: May 9, 2016, 0.75% $450,000 $450,000 April 1, 2017, 5.613% 253, ,979 June 1, 2017, 1.2% 250,000 May 15, 2020, 4.7% 550, ,000 June 1, 2025, 3.3% 250,000 July 1, 2036, 6.5% 300, ,000 Sept. 15, 2041, 4.8% 250, ,000 Elimination of PSCo capital lease obligation with affiliates (66,454) (69,470) Unamortized debt issuance costs (9,899) (8,956) Unamortized discount (5,551) (6,078) Total 2,222,075 1,719,475 Less current maturities (including elimination of PSCo capital lease obligation) 447,067 (3,015) Total Xcel Energy Inc. long-term debt $1,775,008 $1,722,490 Total long-term debt $12,398,880 $11,414,823 Common Stockholders Equity Common stock 1,000,000,000 shares authorized of $2.50 par value; 507,535,523 and 505,733,267 shares outstanding at Dec. 31, 2015 and Dec. 31, 2014, respectively $1,268,839 $1,264,333 Additional paid in capital 5,889,106 5,837,330 Retained earnings 3,552,728 3,220,958 Accumulated other comprehensive loss (109,753) (108,139) Total common stockholders equity $10,600,920 $10,214,482 18

19 Xcel Energy Inc. Electric Operating Statistics Years Ended December 31 Electric sales (Millions of KWh) Residential 24,498 24,857 25,306 Large C&I 27,719 27,657 27,206 Small C&I 35,806 36,022 35,873 Public authorities and other 1,071 1,104 1,098 Total retail 89,094 89,640 89,483 Sales for resale 15,283 14,931 15,065 Total energy sold 104, , ,548 Number of customers at end of period Residential 3,023,494 2,994,075 2,965,717 Large C&I 1,229 1,128 1,132 Small C&I 429, , ,553 Public authorities and other 68,595 68,306 67,998 Total retail 3,522,935 3,489,798 3,457,400 Wholesale Total customers 3,522,982 3,489,842 3,457,465 Investor Fact Book June 2016 Xcel Energy Electric revenues (Thousands of Dollars) Residential $2,891,371 $2,956,576 $2,906,208 Large C&I 1,689,695 1,789,742 1,694,720 Small C&I 3,303,838 3,382,750 3,248,586 Public authorities and other 136, , ,126 Total retail 8,021,634 8,272,510 7,987,640 Wholesale 660, , ,204 Other electric revenues 593, , ,201 Total electric revenues $9,275,986 $9,465,890 $9,034,045 KWh sales per retail customer 25,290 25,686 25,882 Revenue per retail customer $2,277 $2,370 $2,310 Residential revenue per KWh (in cents) Large C&I revenue per KWh (in cents) Small C&I revenue per KWh (in cents) Total retail revenue per KWh (in cents) Wholesale revenue per KWh (in cents) Xcel Energy Inc. Natural Gas Operating Statistics Years Ended December 31 Natural gas deliveries (Thousands of MMBtu) Residential 135, , ,280 C&I 86,093 95,879 92,849 Total retail 221, , ,129 Transportation and other 125, , ,057 Total deliveries 346, , ,186 Number of customers at end of period Residential 1,814,321 1,795,190 1,776,849 C&I 156, , ,646 Total retail 1,970,627 1,950,705 1,931,495 Transportation and other 6,981 6,594 6,320 Total customers 1,977,608 1,957,299 1,937,815 Natural gas revenues (Thousands of Dollars) Residential $1,042,884 $1,320,207 $1,126,859 C&I 547, , ,548 Total retail 1,590,049 2,047,278 1,713,407 Transportation and other 82,032 95,460 91,272 Total natural gas revenues $1,672,081 $2,142,738 $1,804,679 MMBtu sales per retail customer Revenue per retail customer $807 $1,050 $887 Residential revenue per MMBtu (in cents) C&I revenue per MMBtu (in cents) Transportation and other revenue per MMBtu (in cents)

20 Investor Fact Book June 2016 Xcel Energy Xcel Energy Inc. Operating Company EPS Contributions The only common equity securities that are publicly traded are common shares of Xcel Energy Inc. The diluted earnings and EPS of each subsidiary discussed here do not represent a direct legal interest in the assets and liabilities allocated to such subsidiary but rather represent a direct interest in our assets and liabilities as a whole. Ongoing diluted EPS for Xcel Energy and by subsidiary is a financial measure not recognized under GAAP. Ongoing diluted EPS is calculated by dividing the net income or loss attributable to the controlling interest of each subsidiary, adjusted for certain items, by the weighted average fully diluted Xcel Energy Inc. common shares outstanding for the period. We use this non-gaap financial measure to evaluate and provide details of Xcel Energy s core earnings and underlying performance. We believe this measurement is useful to investors in facilitating period over period comparisons and evaluating or projecting financial results. This non-gaap financial measure should not be considered as an alternative to measures calculated and reported in accordance with GAAP. Diluted Earnings (Loss) Per Share PSCo $0.92 $0.90 $0.91 NSPM SPS NSPW Equity earnings of unconsolidated subsidiaries Regulated utility Xcel Energy Inc. and other (0.11) (0.11) (0.14) Ongoing diluted EPS (a) Loss on Monticello life cycle management (LCM)/extended power uprate (EPU) project (b) (0.16) SPS FERC complaint case orders (c) (0.04) GAAP diluted EPS (a) $1.94 $2.03 $1.91 Xcel Energy s management believes that ongoing earnings reflects management s performance in operating the company and provides a meaningful representation of the performance of Xcel Energy s core business. In addition, Xcel Energy s management uses ongoing earnings internally for financial planning and analysis, for reporting of results to the Board of Directors and when communicating its earnings outlook to analysts and investors. (a) Amounts may not add due to rounding. (b) In March 2015, the MPUC approved full recovery, including a return, on $415 million of the project costs, inclusive of AFUDC, but only allow recovery of the remaining $333 million of costs with no return on this portion of the investment for years 2015 and beyond. As a result of this decision, Xcel Energy recorded a pre-tax charge of approximately $129 million, or $79 million net of tax, in the first quarter of Given the nature of this specific item, it has been excluded from ongoing earnings. (c) As a result of the two orders issued in August 2013 by the FERC for a potential SPS customer refund, a pre-tax charge of $36 million was recorded in Of this amount, approximately $30 million ($26 million revenue reduction and $4 million of interest) was attributable to periods prior to 2013 and not representative of ongoing earnings. As such, GAAP earnings include the total after tax amount of $24.4 million and ongoing earnings exclude $20.2 million. Xcel Energy Inc. Estimated Impact of Weather on EPS 2015 vs. Normal 2014 vs. Normal 2015 vs Retail Electric NSPM ($0.019) $0.013 ($0.032) NSPW ($0.005) $0.003 ($0.008) PSCo $0.005 ($0.009) $0.014 SPS $0.000 $0.003 ($0.003) Xcel Energy (a) ($0.020) $0.010 ($0.030) 2015 vs. Normal 2014 vs. Normal 2015 vs Firm Natural Gas NSPM ($0.007) $0.016 ($0.023) NSPW ($0.002) $0.005 ($0.007) PSCo ($0.009) ($0.002) ($0.007) SPS N/A N/A N/A Xcel Energy (a) ($0.018) $0.019 ($0.037) (a) Amounts may not add due to rounding. 20

21 Xcel Energy Inc. Authorized and Earned ROEs These numbers are based on jurisdictional returns and do not represent financial returns Rate Base Jurisdiction ($ millions) Authorized (%) W/A Earned (%) Authorized (%) W/A Earned (%) Authorized (%) W/A Earned (%) MN Electric 7, MN Natural Gas ND Electric ND Natural Gas SD Electric 474 Black box 6.09 Black box CO Electric 6, (a) (a) (a) CO Natural Gas 1, PSCo Wholesale 578 (c) (c) N/A N/A N/A N/A TX Electric 1,507 Black box 9.61 (b) Black box (b) Blackbox 8.85 (b) NM Electric 587 Black box 7.63 (b) Black box 6.58 (b) Blackbox 8.87 (b) SPS Wholesale 584 (d) (d) N/A N/A N/A N/A WI Electric WI Natural Gas MI Electric & Natural Gas (e); (g) 6.51 (consolidated) (e); (g) 7.57 (e); (11.58) (g) (e); (g) (e); (2.75) (g) Investor Fact Book June 2016 Xcel Energy (a) Prior to customer refunds based on earnings test. PSCo earned 10.23% after customer refunds for (b) Actual ROE, not weather-normalized. (c) The authorized ROE for PSCo transmission & production formula = 9.72%. (d) The SPS authorized ROE for production formula was 10.5% & 10.25% and FERC transmission ROE was 11.27%. Based on a settlement the transmission ROE = 10.5% and production formula ROE = 10.0%. Xcel Energy Inc. Base Capital Expenditure Forecast Dollars in Millions Total Electric Transmission $700 $825 $875 $855 $870 $4,125 Electric Distribution ,065 Electric Generation ,845 Natural Gas ,910 Nuclear Fuel MN IRP Renewables Other ,210 Total $3,060 $2,975 $3,120 $3,070 $2,940 $15,165 Filed for wind ownership in Colorado, with a projected investment of $1.0 billion during Our remaining upside capital forecast includes additional opportunities totaling $1.5 billion Xcel Energy Inc. Net Plant by Function 2015 Year-end Net Plant Balance ~$31 billion 11% 6% Transmission Distribution Other Generation Coal Generation Nuclear Natural Gas Other 24% 8% 13% 23% 15% Net plant represents gross plant less accumulated depreciation. The functional allocation of net plant is representative of the functional allocation of rate base. 21

22 Investor Fact Book June 2016 Xcel Energy Xcel Energy Inc. Credit Ratings Company Credit Type Moody s S&P Fitch Xcel Energy Holding Company Senior Unsecured Debt A3 BBB+ BBB+ Xcel Energy Holding Company Commercial Paper P-2 A-2 F2 NSPM Senior Unsecured Debt A2 A- A NSPM Senior Secured Debt Aa3 A A+ NSPM Commercial Paper P-1 A-2 F2 NSPW Senior Unsecured Debt A2 A- A NSPW Senior Secured Debt Aa3 A A+ NSPW Commercial Paper P-1 A-2 F2 PSCo Senior Unsecured Debt A3 A- A PSCo Senior Secured Debt A1 A A+ PSCo Commercial Paper P-2 A-2 F2 SPS Senior Unsecured Debt Baa1 A- BBB+ SPS Senior Secured Debt A2 A A- SPS Commercial Paper P-2 A-2 F2 Xcel Energy Inc. Credit Facilities Dollars in Millions Company Facility Maturity Xcel Energy Holding Company $1,000 October 2019 NSPM 500 October 2019 NSPW 150 October 2019 PSCo 700 October 2019 SPS 400 October 2019 Total $2,750 Xcel Energy Inc. Debt Maturities Dollars in Millions Company Xcel Energy Holding Company $450 $504 $0 $0 $550 $400 $0 $0 $0 $600 NSPM NSPW PSCo SPS Total $650 $634 $1,200 $400 $1,250 $419 $600 $650 $550 $1,100 22

23 Xcel Energy Inc. System Energy Mix % 1% 1% 3% 5% 4% 12% 17% 56% 11% 23% 43% 2030 Projected 1% 9% 23% 30% Investor Fact Book June 2016 Xcel Energy 23% 11% 26% Coal Natural Gas Hydro Nuclear Solar Wind Other Xcel Energy Inc. Renewable Energy Portfolio Units in MW Wind (owned) Wind (purchased) Solar (AC)* Hydro Biomass RDF/ Landfill Total Upper Midwest (NSP) 652 1, ,823 Colorado (PSCo) 0 2, ,766 Texas/New Mexico (SPS) 0 1, ,825 Total 652 5, ,414 * Excludes community solar gardens and distributed generation rooftop solar Over the next decade, Xcel Energy plans to add over 4,000 MW of wind and solar resources. 23

24 Investor Fact Book June 2016 Xcel Energy Xcel Energy Inc. Emissions Reductions Millions of Tons Purchased Owned Carbon Dioxide Emissions (Millions of Tons) Owned Generation Owned Generation 148, , , ,700 95,443 97,773 83,749 74,335 69,466 59,102 48, , , ,151 89,244 66,068 66,439 61,862 55,228 54,113 49,578 39, Sulfur Dioxide Emissions (Tons) Nitrogen Dioxide Emissions (Tons) % % Owned Generation % % Owned Generation 90000% 90000% 60000% 30000% 2,654 2,579 2,118 2,007 1,915 1,557 1,333 1,344 1,333 1, % Mercury Emissions (Pounds) 60000% 7,125 9,145 8,844 8,625 7,594 7,113 7,637 4,856 3,803 4,787 2, Particulate Matter Emissions (Tons) 0% 3000% Xcel Energy Inc. Customer Rates as of July 1, 2015 Cents per KWh 10000% 0% 2500% 2000% 1500% 1000% 500% 0% National Average % 6000% 4000% 2000% 0% SPS-TX SPS-NM NSPM-ND NSPM-MN PSCo NSPM-SD NSPW-WI NSPW-MI 24

25 Xcel Energy Inc. Quarterly Stock & Dividend History Stock Price Intraday High Intraday Low Dividends Declared 2015 First Quarter $38.35 $33.41 $ Second Quarter $35.35 $31.76 $ Third Quarter $36.48 $32.12 $ Fourth Quarter $37.25 $34.33 $ First Quarter $30.77 $27.27 $ Second Quarter $32.37 $29.83 $ Third Quarter $32.48 $29.60 $ Fourth Quarter $37.58 $30.18 $ First Quarter $29.74 $26.77 $ Second Quarter $31.79 $27.38 $ Third Quarter $30.41 $26.90 $ Fourth Quarter $29.40 $27.14 $ First Quarter $27.93 $25.92 $ Second Quarter $29.12 $25.89 $ Third Quarter $29.92 $27.25 $ Fourth Quarter $28.34 $25.84 $ First Quarter $24.67 $23.17 $ Second Quarter $25.39 $23.38 $ Third Quarter $25.60 $21.20 $ Fourth Quarter $27.78 $23.48 $ First Quarter $21.76 $19.82 $ Second Quarter $22.14 $19.81 $ Third Quarter $23.28 $20.47 $ Fourth Quarter $24.36 $23.02 $ First Quarter $19.13 $16.01 $ Second Quarter $18.98 $16.83 $ Third Quarter $20.29 $17.44 $ Fourth Quarter $21.94 $18.53 $ First quarter $22.90 $19.39 $ Second quarter $21.73 $19.67 $ Third quarter $22.39 $19.40 $ Fourth quarter $20.21 $15.32 $ First quarter $24.94 $22.75 $ Second quarter $25.03 $19.97 $ Third quarter $22.41 $19.59 $ Fourth quarter $23.50 $20.70 $ First Quarter $19.61 $17.91 $ Second Quarter $19.76 $17.80 $ Third Quarter $21.05 $18.96 $ Fourth Quarter $23.63 $20.56 $ Investor Fact Book June 2016 Xcel Energy Xcel Energy Inc.'s all-time high closing and intraday prices were $41.94 (4-1-16) and $42.04 (4-4-16), respectively. Xcel Energy Inc.'s all-time low closing and intraday prices were $5.66 ( ) and $5.12 ( ), respectively. 25

26 Northern States Power Company Minnesota (NSPM) NSPM is an Xcel Energy operating company that conducts business in Minnesota, North Dakota and South Dakota. The company has electric operations in all three states that include the generation, purchase, transmission, distribution and sale of electricity. NSPM also purchases, transports, distributes and sells natural gas to retail customers and transports customer-owned natural gas in Minnesota and North Dakota. NSPM s electric production and transmission system is managed as an integrated system with that of NSPW, jointly referred to as the NSP System. Generally, NSPM s contribution to earnings ranges from 35 percent to 45 percent of Xcel Energy s consolidated earnings. Customers Electricity Natural gas 1.4 million 0.5 million MINOT 83 GRAND FORKS DICKINSON 94 BISMARCK 94 FARGO DULUTH BRAINERD ST. CLOUD 29 DELANO MINNEAPOLIS & ST. PAUL 35 RED WING 90 PIERRE MANKATO FARIBAULT 90 WINONA 90 SIOUX FALLS 90 E 26

27 NSPM Consolidated Statements of Income Years Ended December 31 Amounts in Thousands Operating revenues Electric, non-affiliates $3,710,616 $3,727,815 $3,603,807 Electric, affiliates 473, , ,633 Natural gas 545, , ,017 Other 27,956 28,473 26,153 Total operating revenues 4,756,806 4,988,525 4,679,610 Operating expenses Electric fuel and purchased power 1,583,620 1,676,474 1,683,977 Cost of natural gas sold and transported 331, , ,058 Cost of sales other 18,243 17,371 16,154 Operating and maintenance expenses 1,212,507 1,223,829 1,171,855 Conservation program expenses 70, ,105 96,635 Depreciation and amortization 479, , ,588 Taxes (other than income taxes) 229, , ,741 Loss on Monticello life cycle management/extended power uprate project 124,226 Total operating expenses 4,050,460 4,220,932 3,970,008 NSPM Investor Fact Book June 2016 Xcel Energy Operating income 706, , ,602 Other income (expense), net (653) Allowance for funds used during construction equity 26,819 23,788 40,064 Interest charges and financing costs Interest charges includes other financing costs of $6,710, $6,511 and $6,337, respectively 208, , ,889 Allowance for funds used during construction debt (12,725) (10,711) (18,079) Total interest charges and financing costs 196, , ,810 Income before income taxes 537, , ,203 Income taxes 180, , ,857 Net income $356,839 $404,915 $393,346 27

28 NSPM Investor Fact Book June 2016 Xcel Energy NSPM Consolidated Statements of Cash Flows Years Ended December 31 Amounts in Thousands Operating activities Net income $356,839 $404,915 $393,346 Adjustments to reconcile net income to cash provided by operating activities: Depreciation and amortization 485, , ,852 Nuclear fuel amortization 106, ,542 98,089 Deferred income taxes 206, , ,444 Amortization of investment tax credits (1,729) (1,735) (1,813) Allowance for equity funds used during construction (26,819) (23,788) (40,064) Provision for bad debts 14,420 17,193 13,418 Loss on Monticello life cycle management/extended power uprate project 124,226 Net realized and unrealized hedging and derivative transactions 16,075 5,023 (4,175) Changes in operating assets and liabilities: Accounts receivable 66,539 (104,655) 3,220 Accrued unbilled revenues 24,485 3,825 (25,748) Inventories (53,468) (10,285) (19,404) Other current assets 23,303 (33,284) 22,316 Accounts payable (39,696) (50,569) 68,003 Net regulatory assets and liabilities (6,459) 101,826 10,703 Other current liabilities 77, ,576 36,709 Pension and other employee benefit obligations (22,265) (41,924) (59,953) Change in other noncurrent assets (219) 34,571 (9,599) Change in other noncurrent liabilities (31,764) (5,985) (4,463) Net cash provided by operating activities 1,319,847 1,112,097 1,068,881 Investing activities Utility capital/construction expenditures (1,854,878) (1,241,940) (1,548,952) Allowance for equity funds used during construction 26,819 23,788 40,064 Proceeds from insurance recoveries 27,237 6,000 90,000 Purchases of investments in external decommissioning fund (1,257,924) (595,569) (1,481,881) Proceeds from the sale of investments in external decommissioning fund 1,236, ,430 1,461,291 Investments in utility money pool arrangement (385,900) (432,000) (29,000) Repayments from utility money pool arrangement 385, ,000 29,000 Other, net (2,662) (3,066) (3,716) Net cash used in investing activities (1,824,535) (1,222,357) (1,443,194) Financing activities Proceeds from (repayments of) short-term borrowings, net 81,000 11,000 (90,000) Borrowings under utility money pool arrangement 294, , ,000 Repayments under utility money pool arrangement (294,500) (374,000) (963,000) Proceeds from issuance of long-term debt 587, , ,788 Repayments of long-term debt, including reacquisition premiums (250,013) Capital contributions from parent 347,304 95, ,102 Dividends paid to parent (259,140) (259,451) (235,499) Net cash provided by financing activities 506, , ,391 Net change in cash and cash equivalents 2,008 (2,323) 14,078 Cash and cash equivalents at beginning of period 40,597 42,920 28,842 Cash and cash equivalents at end of period $42,605 $40,597 $42,920 28

29 NSPM Consolidated Balance Sheets December 31 Amounts in Thousands, Except Share and Per Share Data Assets Current assets Cash and cash equivalents $42,605 $40,597 Accounts receivable, net 292, ,696 Accounts receivable from affiliates 32,850 24,067 Accrued unbilled revenues 227, ,587 Inventories 343, ,287 Regulatory assets 187, ,487 Derivative instruments 18,941 60,164 Deferred income taxes 15,577 76,016 Prepayments and other 89, ,443 Total current assets 1,251,149 1,488,344 NSPM Investor Fact Book June 2016 Xcel Energy Property, plant and equipment, net 12,807,338 11,661,620 Other assets Nuclear decommissioning fund and other investments 1,758,208 1,735,316 Regulatory assets 1,159,217 1,051,834 Derivative instruments 22,334 15,434 Other 1,385 1,166 Total other assets 2,941,144 2,803,750 Total assets $16,999,631 $15,953,714 Liabilities and equity Current liabilities Current portion of long-term debt $11 $250,013 Short-term debt 223, ,000 Accounts payable 350, ,507 Accounts payable to affiliates 59,785 50,545 Regulatory liabilities 43, ,608 Taxes accrued 225, ,509 Accrued interest 66,979 61,339 Dividends payable to parent 73,498 77,802 Derivative instruments 17,211 12,294 Customer deposits 94,388 44,276 Other 177, ,939 Total current liabilities 1,332,608 1,651,832 Deferred credits and other liabilities Deferred income taxes 2,572,087 2,429,143 Deferred investment tax credits 25,838 27,567 Regulatory liabilities 491, ,783 Asset retirement obligations 2,331,092 2,186,174 Derivative instruments 128, ,036 Pension and employee benefit obligations 339, ,774 Other 114, ,165 Total deferred credits and other liabilities 6,003,548 5,693,642 Commitments and contingencies Capitalization Long-term debt 4,496,410 3,905,067 Common stock 5,000,000 shares authorized of $0.01 par value; 1,000,000 shares outstanding at Dec. 31, 2015 and 2014, respectively Additional paid in capital 3,323,810 2,961,654 Retained earnings 1,864,326 1,762,323 Accumulated other comprehensive loss (21,081) (20,814) Total common stockholder s equity 5,167,065 4,703,173 Total liabilities and equity $16,999,631 $15,953,714 29

30 NSPM Investor Fact Book June 2016 Xcel Energy NSPM Consolidated Statements of Capitalization December 31 Amounts in Thousands, Except Share and Per Share Data Long-term debt First Mortgage Bonds, Series due: Aug. 15, 2015, 1.95% $ $250,000 March 1, 2018, 5.25% 500, ,000 Aug. 15, 2020, 2.2% 300,000 Aug. 15, 2022, 2.15% 300, ,000 May 15, 2023, 2.6% 400, ,000 July 1, 2025, 7.125% 250, ,000 March 1, 2028, 6.5% 150, ,000 July 15, 2035, 5.25% 250, ,000 June 1, 2036, 6.25% 400, ,000 July 1, 2037, 6.2% 350, ,000 Nov. 1, 2039, 5.35% 300, ,000 Aug. 15, 2040, 4.85% 250, ,000 Aug. 15, 2042, 3.4% 500, ,000 May 15, 2044, 4.125% 300, ,000 Aug. 15, 2045, 4.0% 300,000 Other Unamortized debt issuance costs (37,701) (33,602) Unamortized discount (15,911) (11,365) Total 4,496,421 4,155,080 Less current maturities ,013 Total long-term debt $4,496,410 $3,905,067 Common stockholder s equity Common stock 5,000,000 shares authorized of $0.01 par value; 1,000,000 shares outstanding at Dec. 31, 2015 and 2014, respectively $10 $10 Additional paid in capital 3,323,810 2,961,654 Retained earnings 1,864,326 1,762,323 Accumulated other comprehensive loss (21,081) (20,814) Total common stockholder s equity $5,167,065 $4,703,173 30

31 NSPM Electric Operating Statistics Years Ended December 31 Electric sales (Millions of KWh) Residential 9,988 10,317 10,486 Large commercial and industrial 8,921 8,859 8,963 Small commercial and industrial 15,460 15,670 15,577 Public authorities and other Total retail 34,620 35,110 35,293 Sales for resale 3,008 2,704 1,397 Total energy sold 37,628 37,814 36,690 Number of customers at end of period Residential 1,284,986 1,274,182 1,263,575 Large commercial and industrial Small commercial and industrial 155, , ,769 Public authorities and other 7,122 7,015 6,869 Total retail 1,447,698 1,435,651 1,423,696 Wholesale Total customers 1,447,711 1,435,665 1,423,708 NSPM Investor Fact Book June 2016 Xcel Energy Electric revenues (Thousands of Dollars) Residential $1,238,362 $1,257,366 $1,244,712 Large commercial and industrial 669, , ,970 Small commercial and industrial 1,445,897 1,454,153 1,410,083 Public authorities and other 34,408 35,335 36,207 Total retail 3,388,441 3,421,064 3,377,972 Wholesale 69,918 92,326 47,511 Interchange revenues from NSP-Wisconsin 473, , ,633 Other electric revenues 252, , ,324 Total electric revenues $4,183,715 $4,202,356 $4,062,440 KWh sales per retail customer 23,914 24,456 24,790 Revenue per retail customer $2,341 $2,383 $2,373 Residential revenue per KWh (in cents) Large C&I revenue per KWh (in cents) Small C&I revenue per KWh (in cents) Total retail revenue per KWh (in cents) Wholesale revenue per KWh (in cents) C&I Commercial and Industrial 31

32 NSPM Investor Fact Book June 2016 Xcel Energy NSPM Natural Gas Operating Statistics Years Ended December 31 Natural gas deliveries (Thousands of MMBtu) Residential 36,810 45,044 42,446 Commercial and industrial 38,571 44,815 42,459 Total retail 75,381 89,859 84,905 Transportation and other 11,648 11,265 11,076 Total deliveries 87, ,124 95,981 Number of customers at end of period Residential 460, , ,958 Commercial and industrial 43,015 42,504 41,929 Total retail 503, , ,887 Transportation and other Total customers 503, , ,911 Natural gas revenues (Thousands of Dollars) Residential $302,696 $412,723 $329,810 Commercial and industrial 234, , ,620 Total retail 536, , ,430 Transportation and other 8,238 13,903 11,587 Total natural gas revenues $545,135 $757,695 $591,017 MMBtu sales per retail customer Revenue per retail customer $1,065 $1,491 $1,176 Residential revenue per MMBtu Commercial and industrial revenue per MMBtu Transportation and other revenue per MMBtu

33 NSPM Plant Information Station, Location and Unit Fuel Installed Steam: Summer 2015 Net Dependable Capability (MW) A.S. King-Bayport, Minn., 1 Unit Coal Sherco-Becker, Minn. Unit 1 Coal Unit 2 Coal Unit 3 Coal (a) Monticello-Monticello, Minn., 1 Unit Nuclear Prairie Island-Welch, Minn. Unit 1 Nuclear Unit 2 Nuclear Various locations, 4 Units Red Wing-Red Wing, Minn., 2 Units Wilmarth-Mankato, Minn., 2 Units Wood/Refusederived fuel (b) Various 36 Combustion Turbine: Angus Anson-Sioux Falls, S.D., 3 Units Natural Gas Unit 2 Unit 3 Unit 4 Black Dog-Burnsville, Minn., 2 Units Natural Gas Emissions Control Equipment BH (PM), DS (acid gases), SCR (NOx), ACI (mercury) WS (PM & acid gases), Wet ESPs (PM), LNBs (NOx), OFA (NOx), ACI (mercury) WS (PM & acid gases), Wet ESPs (PM), LNBs (NOx), OFA (NOx), ACI (mercury) BH (PM), DS (acid gases), LNBs, ACI (mercury) Each unit: BH (PM), DLI (acid gases) Each unit: BH (PM), DS (acid gases) WI (NOx) WI (NOx) Combined cycle units 5 & 2 Combustion unit: LNBs and SCR (NOx) Blue Lake-Shakopee, Minn., 6 Units Natural Gas/Oil Units 1-4 Oil Units 7-8 Natural Gas LNBs (NOx) High Bridge-St. Paul, Minn., 3 Units Natural Gas Each combustion unit: LNBs and SCR (NOx) Inver Hills-Inver Grove Heights, Minn., 6 Units Natural Gas Riverside-Minneapolis, Minn., 3 Units Natural Gas Each combustion unit: LNBs and SCR (NOx) Various locations, 14 Units Natural Gas Various 67 Wind: Grand Meadow-Mower County, Minn., 67 Units Wind (c) Nobles-Nobles County, Minn., 134 Units Wind (c) Pleasant Valley-Mower County, Minn., 100 Units Wind (c) Border-Rolette County, N.D., 75 Units Wind (c) Total 7,144 NSPM Investor Fact Book June 2016 Xcel Energy (a) Based on NSPM s ownership of 59%. (b) Refuse-derived fuel is made from municipal solid waste. (c) This capacity is only available when wind conditions are sufficiently high enough to support the noted generation values above. Therefore, the on-demand net dependable capacity is zero. PM - Particulate Matter SCR - Selective Catalytic Reduction NOx - Nitrogen Oxides ACI - Activated Carbon Injection LNBs - Low-NOx Burners OFA - Overfire Air ESP - Electrostatic Precipitator BH - Baghouse DLI - Dry Limestone Injection DS - Dry Scrubber WS - Wet Scrubber WI - Water Injection 33

34 NSPM Investor Fact Book June 2016 Xcel Energy NSPM Base Capital Expenditure Forecast Dollars in Millions Total Electric Generation $600 $395 $575 $380 $290 $2,240 Electric Distribution ,250 Electric Transmission ,010 Nuclear Fuel Natural Gas Other Total $1,290 $1,050 $1,215 $1,245 $1,125 $5,925 NSPM Authorized Equity Ratios & ROEs Equity Ratio ROE Minnesota Electric 52.50% 9.72% Minnesota Natural Gas 52.46% 10.09% North Dakota Electric 52.56% 10.00% North Dakota Natural Gas 51.59% 10.75% South Dakota Electric Black box Black box NSPM Recovery Mechanisms Minnesota: Forward test year with interim rates Environmental improvement rider Transmission rider Renewable energy rider DSM incentive mechanism Fuel clause adjustment Purchased gas adjustment Gas infrastructure rider 2015 legislation provides for: Rate plans up to 5 years Formulaic recovery of O&M and capital Grid modernization rider Recovery of early plant closure costs Interim rates for the first 2 years of a multi-year rate plan North Dakota: Forward test year with interim rates Environmental rider Transmission rider Renewable energy rider Fuel clause adjustment South Dakota: Historic test year Environmental rider Transmission rider Infrastructure rider for capital projects Fuel clause adjustment 34

35 NSP System Energy Mix % 2% 27% 50% 11% 7% % 14% 7% 2% 15% 35% 2030 Projected 25% 8% 28% 15% 22% 2% NSPM Investor Fact Book June 2016 Xcel Energy Coal Natural Gas Hydro Nuclear Solar Wind Other NSPM Renewable Portfolio Standards Minnesota: 25% by % by 2020 (with 24% of sales from wind by 2030) North Dakota: 10% (voluntary, currently in compliance) South Dakota: 10% (voluntary, currently in compliance) NSPM Commission Profiles Minnesota: Commissioner, Party Appointed Term Expiration * Beverly Jones Heydinger, D 7/2012 1/2017 Nancy Lange, D 2/2013 1/2019 Dan Lipschultz, D 1/2014 1/2020 John Tuma, R 2/2015 1/2021 Matt Schuerger 2/2016 1/2022 The MPUC consists of 5 commissioners appointed by the governor to staggered, 6-year terms. By law, no more than 3 commissioners can be of the same political party and at least one commissioner must reside at the time of appointment outside the 7-county metropolitan area. The governor designates 1 of the commissioners to serve as chair. North Dakota: Commissioner, Party Elected Term Expiration * Julie Fedorchak, R 1/ /2016 Brian Kalk, R 1/ /2020 Randy Christmann, R 1/ /2018 The Commission is comprised of 3 commissioners who are elected on a statewide basis to staggered, 6-year terms. The chair is elected by the commissioners. South Dakota: Commissioner, Party Elected Term Expiration * Chris Nelson, R 1/2011 1/2017 ** Kristie Fiegen, R 8/2011 1/2019 Gary Hanson, R 1/2003 1/2021 South Dakotans elect their 3 commissioners to staggered, 6-year terms. The chair is elected by the commissioners. * Chair ** Vice Chair 35

36 Northern States Power Company Wisconsin (NSPW) NSPW is an Xcel Energy operating company that conducts business in Wisconsin and Michigan. In both states, the company generates, transmits, distributes and sells electricity in addition to purchasing, transporting, distributing and selling natural gas to retail customers and transporting customer-owned natural gas. NSPW s electric production and transmission system is managed as an integrated system with that of NSPM, jointly referred to as the NSP System. Generally, NSPW s contribution to earnings ranges from 5 percent to 10 percent of Xcel Energy s consolidated earnings. Customers Electricity 256,000 Natural gas 112,000 ASHLAND 53 HUDSON EAU CLAIRE LA CROSSE 90 MADISON 36

37 NSPW Consolidated Statements of Income Years Ended December 31 Amounts in Thousands Operating revenues Electric $834,998 $829,748 $789,168 Natural gas 120, , ,867 Other 1,396 1,085 1,003 Total operating revenues 956,541 1,000, ,038 Operating expenses Electric fuel and purchased power, non-affiliates 10,795 19,595 18,129 Purchased power, affiliates 419, , ,173 Cost of natural gas sold and transported 70, ,250 81,572 Operating and maintenance expenses 179, , ,522 Conservation program expenses 11,695 11,537 12,333 Depreciation and amortization 91,245 79,654 76,897 Taxes (other than income taxes) 28,181 27,114 25,231 Loss on Monticello life cycle management/extended power uprate project 5,237 Total operating expenses 816, , ,857 NSPW Investor Fact Book June 2016 Xcel Energy Operating income 139, , ,181 Other income, net Allowance for funds used during construction equity 7,253 7,060 4,259 Interest charges and financing costs Interest charges includes other financing costs of $1,738, $1,570, and $1,538, respectively 32,731 29,273 27,797 Allowance for funds used during construction debt (3,510) (3,360) (1,981) Total interest charges and financing costs 29,221 25,913 25,816 Income before income taxes 118, ,045 95,877 Income taxes 44,238 42,403 36,409 Net income $74,636 $70,642 $59,468 37

38 NSPW Investor Fact Book June 2016 Xcel Energy NSPW Consolidated Statements of Cash Flows Years Ended December 31 Amounts in Thousands Operating activities Net income $74,636 $70,642 $59,468 Adjustments to reconcile net income to cash provided by operating activities: Depreciation and amortization 92,656 80,875 78,048 Deferred income taxes 45,833 45,396 25,789 Amortization of investment tax credits (528) (527) (664) Allowance for equity funds used during construction (7,253) (7,060) (4,259) Loss on Monticello life cycle management/extended power uprate project 5,237 Provision for bad debts 3,947 4,431 3,988 Net derivative losses (gains) (279) Changes in operating assets and liabilities: Accounts receivable 71 (5,558) (12,702) Accrued unbilled revenues 5,869 (1,933) (2,496) Inventories 3,126 (3,210) (1,879) Other current assets 7,135 (3,501) (3,749) Accounts payable (7,626) 2,936 (1,811) Net regulatory assets and liabilities (27,114) (34,697) (2,062) Other current liabilities 5,147 (911) 7,589 Pension and other employee benefit obligations (3,177) (6,134) (8,759) Change in other noncurrent assets 209 (113) 232 Change in other noncurrent liabilities 716 2,534 1,119 Net cash provided by operating activities 199, , ,573 Investing activities Utility capital/construction expenditures (251,797) (288,209) (201,278) Allowance for equity funds used during construction 7,253 7,060 4,259 Other, net (224) (166) (421) Net cash used in investing activities (244,768) (281,315) (197,440) Financing activities Proceeds from (repayments of) short-term borrowings, net (68,000) 10,000 29,000 Proceeds from notes payable to affiliates 30 Repayments of notes payable to affiliates (80) Proceeds from issuance of long-term debt 97,969 98,534 Repayments of long-term debt (87) (107) (160) Capital contributions from parent 69,243 73,432 58,977 Dividends paid to parent (53,929) (43,818) (30,980) Net cash provided by financing activities 45, ,071 56,757 Net change in cash and cash equivalents (206) (64) (3,110) Cash and cash equivalents at beginning of period 1,285 1,349 4,459 Cash and cash equivalents at end of period $1,079 $1,285 $1,349 38

39 NSPW Consolidated Balance Sheets December 31 Amounts in Thousands, Except Share and Per Share Data Assets Current assets Cash and cash equivalents $1,079 $1,285 Accounts receivable, net 56,378 60,396 Accrued unbilled revenues 47,698 53,567 Inventories 21,559 24,685 Regulatory assets 16,146 20,036 Prepaid taxes 25,976 28,628 Deferred income taxes 3,138 8,201 Prepayments and other 2,387 6,918 Total current assets 174, ,716 NSPW Investor Fact Book June 2016 Xcel Energy Property, plant and equipment, net 1,828,079 1,674,281 Other assets Regulatory assets 289, ,693 Other investments 4,042 3,818 Other Total other assets 293, ,789 Total assets $2,295,745 $2,162,786 Liabilities and equity Current liabilities Current portion of long-term debt $1,131 $1,235 Short-term debt 10,000 78,000 Notes payable to affiliates Accounts payable 34,317 61,530 Accounts payable to affiliates 24,538 26,524 Dividends payable to parent 15,322 14,957 Regulatory liabilities 11,781 16,940 Environmental liabilities 17,155 29,116 Accrued interest 7,945 7,658 Other 15,778 12,265 Total current liabilities 138, ,725 Deferred credits and other liabilities Deferred income taxes 393, ,180 Deferred investment tax credits 8,560 9,089 Regulatory liabilities 141, ,674 Environmental liabilities 77,441 78,620 Customer advances 18,480 17,623 Pension and employee benefit obligations 49,889 51,313 Other 16,347 16,151 Total deferred credits and other liabilities 705, ,650 Commitments and contingencies Capitalization Long-term debt 661, ,722 Common stock 1,000,000 shares authorized of $100 par value; 933,000 shares outstanding at Dec. 31, 2015 and 2014, respectively 93,300 93,300 Additional paid in capital 394, ,276 Retained earnings 302, ,398 Accumulated other comprehensive loss (209) (285) Total common stockholder s equity 790, ,689 Total liabilities and equity $2,295,745 $2,162,786 39

40 NSPW Investor Fact Book June 2016 Xcel Energy NSPW Consolidated Statements of Capitalization December 31 Amounts in Thousands, Except Share and Per Share Data Long-term debt First Mortgage Bonds, Series due: Oct. 1, 2018, 5.25% $150,000 $150,000 June 15, 2024, 3.3% 200, ,000 Sept. 1, 2038, 6.375% 200, ,000 Oct. 1, 2042, 3.7% 100, ,000 City of La Crosse Resource Recovery Bond, Series due Nov. 1, 2021, 6% (a) 18,600 18,600 Fort McCoy System Acquisition, due Oct. 15, 2030, 7% Other 1,634 1,687 Unamortized debt issuance costs (5,144) (4,334) Unamortized discount (3,131) (2,519) Total 662, ,957 Less current maturities 1,131 1,235 Total long-term debt $661,318 $562,722 Common stockholder s equity Common stock 1,000,000 shares authorized of $100 par value; 933,000 shares outstanding at Dec. 31, 2015 and 2014, respectively $93,300 $93,300 Additional paid in capital 394, ,276 Retained earnings 302, ,398 Accumulated other comprehensive loss (209) (285) Total common stockholder s equity $790,385 $697,689 (a) Resource recovery financing 40

41 NSPW Electric Operating Statistics Years Ended December 31 Electric sales (Millions of KWh) Residential 1,863 1,984 1,990 Large commercial and industrial 1,868 1,823 1,698 Small commercial and industrial 2,877 2,902 2,837 Public authorities and other Total retail 6,647 6,751 6,561 Sales for resale 1 Total energy sold 6,647 6,751 6,562 Number of customers at end of period Residential 215, , ,665 Large commercial and industrial Small commercial and industrial 39,254 38,939 38,549 Public authorities and other 1,175 1,144 1,149 Total customers 255, , ,470 NSPW Investor Fact Book June 2016 Xcel Energy Electric revenues (Thousands of Dollars) Residential $244,417 $254,277 $247,081 Large commercial and industrial 141, , ,151 Small commercial and industrial 284, , ,796 Public authorities and other 6,576 6,636 6,184 Total retail 676, , ,212 Interchange revenues from NSP-Minnesota 163, , ,917 Other electric revenues (4,684) 5,282 6,039 Total electric revenues $834,998 $829,748 $789,168 KWh sales per retail customer 25,997 26,522 25,885 Revenue per retail customer $2,646 $2,669 $2,549 Residential revenue per KWh (in cents) Large C&I revenue per KWh (in cents) Small C&I revenue per KWh (in cents) Total retail revenue per KWh (in cents) C&I Commercial and Industrial 41

42 NSPW Investor Fact Book June 2016 Xcel Energy NSPW Natural Gas Operating Statistics Years Ended December 31 Natural gas deliveries (Thousands of MMBtu) Residential 6,584 8,098 7,505 Commercial and industrial 9,116 10,626 10,131 Total retail 15,700 18,724 17,636 Transportation and other 4,756 4,729 4,344 Total deliveries 20,456 23,453 21,980 Number of customers at end of period Residential 99,316 98,325 96,974 Commercial and industrial 12,902 12,773 12,646 Total retail 112, , ,620 Transportation and other Total customers 112, , ,643 Natural gas revenues (Thousands of Dollars) Residential $61,277 $82,851 $67,745 Commercial and industrial 55,677 82,181 63,896 Total retail 116, , ,641 Transportation and other 3,193 4,597 1,226 Total natural gas revenues $120,147 $169,629 $132,867 MMBtu sales per retail customer Revenue per retail customer $1,042 $1,485 $1,201 Residential revenue per MMBtu Commercial and industrial revenue per MMBtu Transportation and other revenue per MMBtu

43 NSPW Plant Information Station, Location and Unit Fuel Installed Summer 2015 Net Dependable Capability (MW) Emissions Control Equipment Steam: Bay Front-Ashland, Wis., 3 Units Coal/Wood/ Natural Gas Unit 1 Coal/Wood BH (PM), ACI (mercury) Unit 2 Coal/Wood BH (PM), ACI (mercury) Unit 5 Natural Gas MCM (PM) French Island-La Crosse, Wis., 2 Units Wood/Refusederived fuel (a) Combustion Turbine: Flambeau Station-Park Falls, Wis., 1 Unit Natural Gas French Island-La Crosse, Wis., 2 Units Natural Gas Wheaton-Eau Claire, Wis., 4 Units Natural Gas Hydro: Various locations, 63 Units Hydro Various 135 Total 524 Each unit: BH (PM), LI (acid gases), UI (NOx) NSPW Investor Fact Book June 2016 Xcel Energy (a) Refuse-derived fuel is made from municipal solid waste. PM - Particulate Matter NOx - Nitrogen Oxides ACI - Activated Carbon Injection BH - Baghouse LI - Lime Injection UI - Urea Injection MCM - Mechanical Collector & Multiclone 43

44 NSPW Investor Fact Book June 2016 Xcel Energy NSPW Base Capital Expenditure Forecast Dollars in Millions Total Electric Transmission $90 $115 $165 $135 $155 $660 Electric Distribution Natural Gas Electric Generation Other Total $225 $250 $295 $265 $285 $1,320 NSPW Authorized Equity Ratios & ROEs Equity Ratio ROE Wisconsin Electric 52.49% 10.00% Wisconsin Natural Gas 52.49% 10.00% Michigan Electric 52.59% 10.10% Michigan Natural Gas 52.54% 10.20% NSPW Recovery Mechanisms Wisconsin: Forward test year Biennial rate case Ability to file limited reopener in off years Annual electric fuel plan with reconciliation Purchased gas adjustment Michigan: Forward test year Gas cost recovery mechanism Power supply cost recovery 44

45 NSPW Renewable Portfolio Standards Wisconsin: 12.89% (currently in compliance) Michigan: 10.0% (currently in compliance) NSPW Commission Profiles Wisconsin: Commissioner, Party Appointed Term Expiration * Ellen Nowak, R 7/2011 3/2019 Phil Montgomery, R 4/2011 3/2017 Mike Huebsch, R 3/2015 3/2021 The PSCW is composed of 3 full-time commissioners who decide the cases brought to the PSCW for changes in utility operations, rates and for construction projects after a complete and thorough review of all the records compiled in the case, including public comments. Commissioners are appointed by the governor and confirmed by the State Senate for staggered, 6-year terms. One of these commissioners is appointed chair by the governor for a 2-year term. NSPW Investor Fact Book June 2016 Xcel Energy Michigan: Commissioner, Party Appointed Term Expiration * Sally A. Talberg, I 7/2013 7/2019 Vacant, following departure of John D. Quackenbush N/A N/A Norm Saari, R 8/2015 7/2021 The Michigan MPSC is composed of 3 commissioners appointed by the governor with the advice and consent of the Senate. Appointees serve staggered, 6-year terms. No more than 2 commissioners may represent the same political party. The governor designates the chair. * Chair 45

46 Public Service Company of Colorado (PSCo) PSCo is an Xcel Energy operating company that conducts business in Colorado. The company generates, purchases, transmits, distributes and sells electricity in addition to purchasing, transporting, distributing and selling natural gas to retail customers and transporting customer-owned natural gas. Generally, PSCo s contribution to earnings ranges from 40 percent to 50 percent of Xcel Energy s consolidated earnings. Customers Electricity Natural gas 1.4 million 1.4 million 25 FT. COLLINS ESTES PARK GREELEY STERLING BOULDER 76 BRUSH RIFLE 70 VAIL GRAND JUNCTION CARBONDALE LEADVILLE 25 DENVER 70 PUEBLO 25 ALAMOSA 46

47 PSCo Consolidated Statements of Income Years Ended December 31 Amounts in Thousands Operating revenues Electric $3,115,257 $3,125,937 $3,081,171 Natural gas 1,006,666 1,215,324 1,080,703 Steam and other 41,590 41,888 40,754 Total operating revenues 4,163,513 4,383,149 4,202,628 Operating expenses Electric fuel and purchased power 1,246,666 1,405,498 1,335,818 Cost of natural gas sold and transported 501, , ,120 Cost of sales steam and other 17,788 16,831 17,039 Operating and maintenance expenses 761, , ,322 Demand side management program expenses 128, , ,337 Depreciation and amortization 411, , ,417 Taxes (other than income taxes) 195, , ,816 Total operating expenses 3,263,812 3,580,779 3,373,869 PSCo Investor Fact Book June 2016 Xcel Energy Operating income 899, , ,759 Other income, net 2,964 4,265 3,136 Allowance for funds used during construction equity 14,485 46,784 33,173 Interest charges and financing costs Interest charges includes other financing costs of $6,285, $6,340, and $6,866, respectively 177, , ,602 Allowance for funds used during construction debt (5,522) (17,241) (12,657) Total interest charges and financing costs 171, , ,945 Income before income taxes 745, , ,123 Income taxes 278, , ,740 Net income $466,802 $455,188 $453,383 47

48 PSCo Investor Fact Book June 2016 Xcel Energy PSCo Consolidated Statements of Cash Flows Years Ended December 31 Amounts in Thousands Operating activities Net income $466,802 $455,188 $453,383 Adjustments to reconcile net income to cash provided by operating activities: Depreciation and amortization 416, , ,713 Demand side management program amortization 3,509 4,331 4,802 Deferred income taxes 277, , ,253 Amortization of investment tax credits (2,807) (2,941) (2,935) Allowance for equity funds used during construction (14,485) (46,784) (33,173) Provision for bad debts 13,052 17,005 16,784 Net realized and unrealized hedging and derivative transactions 2,414 (2,578) (3,571) Other 2,500 Changes in operating assets and liabilities: Accounts receivable 8,872 (42,921) 5,089 Accrued unbilled revenues 17,837 (23,132) 14,707 Inventories 33,417 (972) (14,857) Prepayments and other 10,483 (81,715) (7,210) Accounts payable (40,982) (22,789) 59,361 Net regulatory assets and liabilities 78, , ,400 Other current liabilities 19,654 5,284 16,561 Pension and other employee benefit obligations (23,449) (38,905) (48,886) Change in other noncurrent assets 4,086 5,537 3,862 Change in other noncurrent liabilities (35,334) (19,130) 17,191 Net cash provided by operating activities 1,237, ,792 1,271,474 Investing activities Utility capital/construction expenditures (995,597) (1,114,338) (1,066,700) Allowance for equity funds used during construction 14,485 46,784 33,173 Investments in utility money pool arrangement (196,300) (603,000) (1,495,000) Repayments from utility money pool arrangement 212, ,000 1,423,000 Net cash used in investing activities (965,112) (1,011,554) (1,105,527) Financing activities (Repayments of) proceeds from short-term borrowings, net (368,000) 382,000 (154,000) Borrowings under utility money pool arrangement 165, ,000 14,000 Repayments under utility money pool arrangement (165,000) (333,000) (14,000) Proceeds from issuance of long-term debt 246, , ,313 Repayments of long-term debt (275,000) (250,000) Capital contributions from parent 175,210 81,498 25,621 Dividends paid to parent (330,846) (433,788) (263,942) Net cash (used in) provided by financing activities (276,885) 50,308 (150,008) Net change in cash and cash equivalents (4,050) (13,454) 15,939 Cash and cash equivalents at beginning of period 7,635 21,089 5,150 Cash and cash equivalents at end of period $3,585 $7,635 $21,089 48

49 PSCo Consolidated Balance Sheets December 31 Amounts in Thousands, Except Share and Per Share Data Assets Current assets Cash and cash equivalents $3,585 $7,635 Accounts receivable, net 300, ,885 Accounts receivable from affiliates 4,909 50,842 Investments in utility money pool arrangement 16,000 Accrued unbilled revenues 276, ,049 Inventories 205, ,979 Regulatory assets 92, ,120 Deferred income taxes 62,662 64,587 Derivative instruments 1,945 1,731 Prepaid taxes 81,162 90,365 Prepayments and other 22,698 23,979 Total current assets 1,051,689 1,231,172 PSCo Investor Fact Book June 2016 Xcel Energy Property, plant and equipment, net 12,172,211 11,626,956 Other assets Regulatory assets 906, ,973 Derivative instruments 3,478 5,176 Other 18,224 21,966 Total other assets 927, ,115 Total assets $14,151,877 $13,789,243 Liabilities and equity Current liabilities Current portion of long-term debt $8,103 $8,178 Short-term debt 14, ,000 Accounts payable 352, ,133 Accounts payable to affiliates 76,643 46,736 Regulatory liabilities 152, ,459 Taxes accrued 166, ,470 Accrued interest 49,698 48,409 Dividends payable to parent 83,374 83,652 Derivative instruments 8,881 5,774 Other 78,910 72,002 Total current liabilities 991,793 1,365,813 Deferred credits and other liabilities Deferred income taxes 2,720,860 2,437,641 Deferred investment tax credits 33,466 36,273 Regulatory liabilities 471, ,421 Asset retirement obligations 240, ,296 Derivative instruments 13,020 18,257 Customer advances 198, ,990 Pension and employee benefit obligations 200, ,031 Other 63,864 68,171 Total deferred credits and other liabilities 3,942,439 3,682,080 Commitments and contingencies Capitalization Long-term debt 4,097,493 3,855,511 Common stock 100 shares authorized of $0.01 par value; 100 shares outstanding at Dec. 31, 2015 and 2014, respectively Additional paid in capital 3,620,824 3,522,788 Retained earnings 1,523,164 1,386,929 Accumulated other comprehensive loss (23,836) (23,878) Total common stockholder s equity 5,120,152 4,885,839 Total liabilities and equity $14,151,877 $13,789,243 49

50 PSCo Investor Fact Book June 2016 Xcel Energy PSCo Consolidated Statements of Capitalization December 31 Amounts in Thousands, Except Share and Per Share Data Long-term debt First Mortgage Bonds, Series due: Sept. 1, 2017, 4.375% (a) $129,500 $129,500 Aug. 1, 2018, 5.8% 300, ,000 June 1, 2019, 5.125% 400, ,000 Nov. 15, 2020, 3.2% 400, ,000 Sept. 15, 2022, 2.25% 300, ,000 March 15, 2023, 2.5% 250, ,000 May 15, 2025, 2.9% 250,000 Sept. 1, 2037, 6.25% 350, ,000 Aug. 1, 2038, 6.5% 300, ,000 Aug. 15, 2041, 4.75% 250, ,000 Sept. 15, 2042, 3.6% 500, ,000 March 15, 2043, 3.95% 250, ,000 March 15, 2044, 4.3% 300, ,000 Capital lease obligations, through 2060, 11.2% 14.3% 164, ,209 Unamortized debt issuance costs (26,595) (26,540) Unamortized discount (11,340) (11,480) Total 4,105,596 3,863,689 Less current maturities 8,103 8,178 Total long-term debt $4,097,493 $3,855,511 Common stockholder s equity Common Stock 100 shares authorized of $0.01 par value; 100 shares outstanding at Dec. 31, 2015 and 2014, respectively $ $ Additional paid-in capital 3,620,824 3,522,788 Retained earnings 1,523,164 1,386,929 Accumulated other comprehensive loss (23,836) (23,878) Total common stockholder s equity $5,120,152 $4,885,839 (a) Pollution control financing. 50

51 PSCo Electric Operating Statistics Years Ended December 31 Electric sales (Millions of KWh) Residential 9,112 9,009 9,266 Large commercial and industrial 6,596 6,712 6,652 Small commercial and industrial 12,750 12,709 12,716 Public authorities and other Total retail 28,700 28,671 28,861 Sales for resale 3,581 3,664 4,467 Total energy sold 32,281 32,335 33,328 Number of customers at end of period Residential 1,218,662 1,202,621 1,187,308 Large commercial and industrial Small commercial and industrial 158, , ,643 Public authorities and other 53,944 53,824 53,724 Total retail 1,431,029 1,413,588 1,397,003 Wholesale Total customers 1,431,055 1,413,611 1,397,026 PSCo Investor Fact Book June 2016 Xcel Energy Electric revenues (Thousands of Dollars) Residential $1,060,626 $1,081,092 $1,083,928 Large commercial and industrial 433, , ,556 Small commercial and industrial 1,220,064 1,267,023 1,218,856 Public authorities and other 52,783 54,555 52,676 Total retail 2,766,534 2,865,119 2,793,016 Wholesale 180, , ,041 Other electric revenues 168,007 49,577 60,114 Total electric revenues $3,115,257 $3,125,937 $3,081,171 KWh sales per retail customer 20,055 20,282 20,659 Revenue per retail customer $1,933 $2,027 $1,999 Residential revenue per KWh (in cents) Large C&I revenue per KWh (in cents) Small C&I revenue per KWh (in cents) Total retail revenue per KWh (in cents) Wholesale revenue per KWh (in cents) C&I Commercial and Industrial 51

52 PSCo Investor Fact Book June 2016 Xcel Energy PSCo Natural Gas Operating Statistics Years Ended December 31 Natural gas deliveries (Thousands of MMBtu) Residential 92,001 99, ,329 Commercial and industrial 38,405 40,438 40,259 Total retail 130, , ,588 Transportation and other 108, , ,637 Total deliveries 239, , ,225 Number of customers at end of period Residential 1,254,056 1,240,674 1,228,917 Commercial and industrial 100, , ,071 Total retail 1,354,445 1,340,912 1,328,988 Transportation and other 6,936 6,547 6,273 Total customers 1,361,381 1,347,459 1,335,261 Natural gas revenues (Thousands of Dollars) Residential $678,909 $824,633 $729,304 Commercial and industrial 257, , ,032 Total retail 936,196 1,138,454 1,002,336 Transportation and other 70,470 76,870 78,367 Total natural gas revenues $1,006,666 $1,215,324 $1,080,703 MMBtu sales per retail customer Revenue per retail customer $691 $849 $754 Residential revenue per MMBtu Commercial and industrial revenue per MMBtu Transportation and other revenue per MMBtu

53 PSCo Plant Information Station, Location and Unit Fuel Installed Steam: Summer 2015 Net Dependable Capability (MW) Cherokee-Denver, Colo., 1 Unit Coal Comanche-Pueblo, Colo. Unit 1 Coal Unit 2 Coal Unit 3 Coal (a) Craig-Craig, Colo., 2 Units Coal (b) Emissions Control Equipment BH (PM), LNBs (NOx), OFA (NOx), DS (acid gases) BH (PM), DS (acid gases), LNBs (NOx), ACI (mercury) BH (PM), DS (acid gases), LNBs (NOx), ACI (mercury) BH (PM), DS (acid gases), LNBs (NOx), SCR (NOx), ACI (mercury) Each unit: BH (PM), WS (acid gases), LNBs (NOx), OFA (NOx) PSCo Investor Fact Book June 2016 Xcel Energy Hayden-Hayden, Colo., 2 Units Coal (c) Each unit: BH (PM), DS (acid gases), OFA (NOx), SCRs (NOx) (d) Pawnee-Brush, Colo., 1 Unit Coal BH (PM), DS (acid gases), LNBs (NOx), SCR (NOx), ACI (mercury) Valmont-Boulder, Colo., 1 Unit Coal BH (PM), DS (acid gases) Combustion Turbine: Cherokee-Denver, Colo., 3 Units Natural Gas Blue Spruce-Aurora, Colo., 2 Units Natural Gas Each combustion unit: SCR (NOx), OC (CO) Fort St. Vrain-Platteville, Colo., 6 Units Natural Gas Unit 4: SCR (NOx) Rocky Mountain-Keenesburg, Colo., 3 Units Natural Gas Various locations, 6 Units Natural Gas Various 173 Hydro: Cabin Creek-Georgetown, Colo. Pumped Storage, 2 Units Hydro Various locations, 9 Units Hydro Various 26 Total 5,319 Each combustion unit: SCR (NOx), OC (CO) (a) Based on PSCo s ownership interest of 67% of Unit 3. (b) Based on PSCo s ownership interest of 10%. (c) Based on PSCo s ownership interest of 76% of Unit 1 and 37% of Unit 2. (d) Completion of Unit 2 SCR expected in PM - Particulate Matter SCR - Selective Catalytic Reduction NOx - Nitrogen Oxides ACI - Activated Carbon Injection LNBs - Low-NOx Burners OFA - Overfire Air CO - Carbon Monoxide BH - Baghouse DS - Dry Scrubber WS - Wet Scrubber WI - Water Injection OC - Oxidation Catalyst 53

54 PSCo Investor Fact Book June 2016 Xcel Energy PSCo Base Capital Expenditure Forecast Dollars in Millions Total Electric Distribution $260 $380 $380 $445 $450 $1,915 Natural Gas ,320 Electric Transmission Electric Generation Other Total $975 $940 $960 $1,030 $1,070 $4,975 PSCo Authorized Equity Ratios & ROEs Equity Ratio ROE Colorado Electric 56.00% 9.83% Colorado Natural Gas 56.51% 9.50% PSCo Recovery Mechanisms Colorado: Ability to file multi-year requests Ability to file either historic or forecast test years Purchased capacity cost adjustment Clean Air-Clean Jobs Act rider (forward looking) Transmission rider (forward looking) Natural gas pipeline integrity rider Renewable energy rider DSM incentive mechanism Energy cost adjustment Natural gas cost adjustment 54

55 PSCo System Energy Mix % 2% 1% 2% 31% 65% % 24% 1% 53% 2030 Projected 27% 15% 23% 35% PSCo Investor Fact Book June 2016 Xcel Energy Coal Natural Gas Hydro Solar Wind Other PSCo Renewable Portfolio Standards Colorado: 20% in (currently in compliance) 30% in 2020 and beyond PSCo Commission Profile Colorado: Commissioner, Party Appointed Term Expiration * Joshua Epel, D 4/2011 1/2019 Glenn Vaad, R 1/2014 1/2017 Frances Koncilja, D 1/2016 1/2020 The CPUC consists of 3 governor-appointed commissioners. Appointees are then confirmed by the Senate. No more than 2 members of the CPUC shall be affiliated with the same political party, and any appointment to fill a vacancy shall be for the unexpired term. The governor designates the chair. * Chair 55

56 Southwestern Public Service Company (SPS) SPS is an Xcel Energy operating company that conducts business in Texas and New Mexico. In both states, the company generates, purchases, transmits, distributes and sells electricity. Generally, SPS contribution to earnings ranges from 10 percent to 15 percent of Xcel Energy s consolidated earnings. Customers Electricity 389,000 SANTA FE 25 DALHART 40 ALBUQUERQUE TUCUMCARI BORGER 40 HEREFORD 40 AMARILLO 27 CLOVIS PLAINVIEW ROSWELL LUBBOCK 25 LEVELLAND 35 CARLSBAD HOBBS 20 DALLAS AUSTIN SAN ANTONIO 35 56

57 SPS Statements of Income Years Ended December 31 Amounts in Thousands Operating revenues $1,787,218 $1,937,370 $1,707,087 Operating expenses Electric fuel and purchased power 1,001,083 1,192,176 1,059,330 Operating and maintenance expenses 289, , ,880 Demand side management program expenses 13,365 12,350 12,420 Depreciation and amortization 150, , ,907 Taxes (other than income taxes) 57,536 53,871 49,533 Total operating expenses 1,512,753 1,671,246 1,497,070 Operating income 274, , ,017 SPS Investor Fact Book June 2016 Xcel Energy Other (expense) income, net (6) (59) 140 Allowance for funds used during construction equity 7,378 12,118 10,186 Interest charges and financing costs Interest charges includes other financing costs of $3,158, $3,038 and $3,031, respectively 84,040 80,218 77,866 Allowance for funds used during construction debt (4,491) (7,089) (6,461) Total interest charges and financing costs 79,549 73,129 71,405 Income before income taxes 202, , ,938 Income taxes 75,025 75,202 53,761 Net income $127,263 $129,852 $95,177 57

58 SPS Investor Fact Book June 2016 Xcel Energy SPS Statements of Cash Flows Years Ended December 31 Amounts in Thousands Operating activities Net income $127,263 $129,852 $95,177 Adjustments to reconcile net income to cash provided by operating activities: Depreciation and amortization 153, , ,069 Demand side management program amortization 1,673 1,673 1,673 Deferred income taxes 62, ,517 36,475 Amortization of investment tax credits (213) (341) (341) Allowance for equity funds used during construction (7,378) (12,118) (10,186) Provision for bad debts 4,655 4,137 3,437 Gain on sale of transmission assets (13,661) Net derivative losses Other (3,827) Changes in operating assets and liabilities: Accounts receivable (3,291) 9,045 (36,184) Accrued unbilled revenues 25,506 (20,080) (10,315) Inventories 5,686 (6,093) (7,443) Prepayments and other (24,712) (11,905) 4,456 Accounts payable (24,570) 11,428 20,650 Net regulatory assets and liabilities 26,452 (973) 620 Other current liabilities (30,762) 12,665 51,880 Pension and other employee benefit obligations (9,405) (2,246) (17,968) Change in other noncurrent assets 2,352 2,836 (2,281) Change in other noncurrent liabilities 8,974 7,166 (2,689) Net cash provided by operating activities 314, , ,637 Investing activities Utility capital/construction expenditures (599,511) (554,936) (584,736) Allowance for equity funds used during construction 7,378 12,118 10,186 Proceeds from sale of transmission assets 37,118 Investments in utility money pool arrangement (92,000) (105,000) (12,000) Receipts from utility money pool arrangement 92, ,000 12,000 Other 3,136 Net cash used in investing activities (588,997) (542,818) (537,432) Financing activities (Repayment of) proceeds from short-term borrowings, net (22,000) (47,000) 75,000 Proceeds from issuance of long-term debt 198, ,123 94,626 Borrowings under utility money pool arrangement 579, , ,000 Repayments under utility money pool arrangement (595,700) (480,000) (729,000) Capital contributions from parent 214, , ,277 Dividends paid to parent (100,544) (83,498) (69,579) Net cash provided by financing activities 274, , ,324 Net change in cash and cash equivalents 238 (415) 529 Cash and cash equivalents at beginning of year 596 1, Cash and cash equivalents at end of year $834 $596 $1,011 58

59 SPS Balance Sheets December 31 Amounts in Thousands, Except Share and Per Share Data Assets Current assets Cash and cash equivalents $834 $596 Accounts receivable, net 71,166 71,626 Accounts receivable from affiliates 1,079 1,983 Accrued unbilled revenues 103, ,287 Inventories 37,546 43,231 Regulatory assets 31,541 52,006 Derivative instruments 12,952 23,776 Deferred income taxes 35,686 51,854 Prepaid taxes 35,666 11,273 Prepayments and other 20,520 20,203 Total current assets 350, ,835 SPS Investor Fact Book June 2016 Xcel Energy Property, plant and equipment, net 4,348,823 3,743,141 Other assets Regulatory assets 301, ,305 Derivative instruments 25,272 33,164 Other 3,449 4,969 Total other assets 330, ,438 Total assets $5,030,129 $4,510,414 Liabilities and equity Current liabilities Current portion of long-term debt $200,000 $ Short-term debt 15,000 37,000 Borrowings under utility money pool arrangement 16,000 Accounts payable 146, ,762 Accounts payable to affiliates 29,135 19,790 Regulatory liabilities 98,305 87,723 Taxes accrued 33,374 27,208 Accrued interest 17,781 17,057 Dividends payable 12,538 27,828 Derivative instruments 3,565 3,565 Other 35,654 80,211 Total current liabilities 592, ,144 Deferred credits and other liabilities Deferred income taxes 896, ,145 Regulatory liabilities 229, ,188 Asset retirement obligations 27,233 26,031 Derivative instruments 27,078 30,643 Pension and employee benefit obligations 93, ,670 Other 17,841 9,320 Total deferred credits and other liabilities 1,291,512 1,133,997 Commitments and contingencies Capitalization Long-term debt 1,338,522 1,338,801 Common stock 200 shares authorized of $1.00 par value; 100 shares outstanding at Dec. 31, 2015 and 2014, respectively Additional paid in capital 1,371,223 1,165,463 Retained earnings 438, ,998 Accumulated other comprehensive loss (1,281) (989) Total common stockholder s equity 1,807,949 1,560,472 Total liabilities and equity $5,030,129 $4,510,414 59

60 SPS Investor Fact Book June 2016 Xcel Energy SPS Statements of Capitalization December 31 Amounts in Thousands, Except Share and Per Share Data Long-term debt First Mortgage Bonds, Series due: June 15, 2024, 3.3% $350,000 $150,000 Aug. 15, 2041, 4.5% 400, ,000 Unsecured Senior E Notes, due Oct. 1, 2016, 5.6% 200, ,000 Unsecured Senior G Notes, due Dec. 1, 2018, 8.75% 250, ,000 Unsecured Senior C and D Notes, due Oct. 1, 2033, 6% 100, ,000 Unsecured Senior F Notes, due Oct. 1, 2036, 6% 250, ,000 Unamortized debt issuance costs (12,083) (10,890) Unamortized (discount) premium 605 (309) Total 1,538,522 1,338,801 Less current maturities 200,000 Total long-term debt $1,338,522 $1,338,801 Common stockholder s equity Common stock 200 shares authorized of $1.00 par value; 100 shares outstanding at Dec. 31, 2015 and 2014, respectively $ $ Additional paid-in capital 1,371,223 1,165,463 Retained earnings 438, ,998 Accumulated other comprehensive loss (1,281) (989) Total common stockholder s equity $1,807,949 $1,560,472 60

61 SPS Electric Operating Statistics Years Ended December 31 Electric sales (Millions of KWh) Residential 3,536 3,549 3,564 Large commercial and industrial 10,334 10,262 9,893 Small commercial and industrial 4,719 4,741 4,743 Public authorities and other Total retail 19,127 19,108 18,768 Sales for resale 8,694 8,563 9,200 Total energy sold 27,821 27,671 27,968 Number of customers at end of period Residential 304, , ,169 Large commercial and industrial Small commercial and industrial 77,238 76,553 75,592 Public authorities and other 6,354 6,323 6,256 Total retail 388, , ,231 Wholesale Total customers 388, , ,261 SPS Investor Fact Book June 2016 Xcel Energy Electric revenues (Thousands of Dollars) Residential $347,966 $363,841 $330,487 Large commercial and industrial 445, , ,043 Small commercial and industrial 353, , ,851 Public authorities and other 42,963 46,916 43,059 Total retail 1,190,232 1,306,963 1,170,440 Wholesale 409, , ,793 Other electric revenues 187, , ,854 Total electric revenues $1,787,218 $1,937,370 $1,707,087 KWh sales per retail customer 49,230 49,501 48,973 Revenue per retail customer $3,063 $3,386 $3,054 Residential revenue per KWh (in cents) Large C&I revenue per KWh (in cents) Small C&I revenue per KWh (in cents) Total retail revenue per KWh (in cents) Wholesale revenue per KWh (in cents) C&I Commercial and Industrial 61

62 SPS Investor Fact Book June 2016 Xcel Energy SPS Plant Information Station, Location and Unit Fuel Installed Summer 2015 Net Dependable Capability (MW) Steam: Harrington-Amarillo, Texas, 3 Units Coal ,018 Unit 1 Unit 2 Unit 3 Tolk-Muleshoe, Texas, 2 Units Coal ,067 Emissions Control Equipment ESP (PM), LNBs (NOx), ACI (mercury) BH (PM), LNBs (NOx), ACI (mercury) BH (PM), LNBs (NOx), ACI (mercury) Each unit: BH (PM), LNBs (NOx), ACI (mercury) Cunningham-Hobbs, N.M., 2 Units Natural Gas Jones-Lubbock, Texas, 2 Units Natural Gas Maddox-Hobbs, N.M., 1 Unit Natural Gas Nichols-Amarillo, Texas, 3 Units Natural Gas Plant X-Earth, Texas, 4 Units Natural Gas Unit 4: OFA (NOx) Combustion Turbine: Carlsbad-Carlsbad, N.M., 1 Unit Natural Gas Cunningham-Hobbs, N.M., 2 Units Natural Gas Each unit: LNBs (NOx) Jones-Lubbock, Texas, 2 Units Natural Gas Each unit: LNBs (NOx) Maddox-Hobbs, N.M., 1 Unit Natural Gas Total 4,426 PM - Particulate Matter NOx - Nitrogen Oxides ACI - Activated Carbon Injection LNBs - Low-NOx Burners OFA - Overfire Air ESP - Electrostatic Precipitator BH - Baghouse 62

63 SPS Base Capital Expenditure Forecast Dollars in Millions Total Electric Transmission $295 $405 $415 $315 $260 $1,690 Electric Distribution Electric Generation Other Total $560 $725 $640 $520 $450 $2,895 SPS Authorized Equity Ratios & ROEs Equity Ratio ROE Texas Electric 51.00% 9.70% New Mexico Electric 53.89% 9.96% SPS Investor Fact Book June 2016 Xcel Energy SPS Recovery Mechanisms Texas: Historic test year Fuel clause adjustment Purchase Capacity Cost Recovery Factor Transmission Cost Recovery Factor Distribution Cost Recovery Factor 2015 legislation reduces regulatory lag New Mexico: Ability to file forward test year DSM incentive mechanism Fuel clause adjustment 63

64 SPS Investor Fact Book June 2016 Xcel Energy SPS System Energy Mix % 1% 43% 54% % 37% 44% 2030 Projected 2% 15% 34% 49% Coal Natural Gas Solar Wind Other SPS Renewable Portfolio Standards Texas: 3.75% (currently in compliance) New Mexico: 15% (currently in compliance) 20% in 2020 and beyond SPS Commission Profiles Texas Commissioner, Party Appointed Term Expiration * Donna L. Nelson, R 8/2008 8/2021 Kenneth W. Anderson, R 9/2008 8/2017 Brandy Marty Marquez, R 8/2013 8/2019 Commissioners are appointed by the governor and serve staggered, 6-year terms. The governor designates the chair. New Mexico: Commissioner, Party Elected Term Expiration * Valerie Espinoza, D 1/ /2016 ** Karen Montoya, D 1/ /2016 Patrick Lyons, R 1/ /2018 Lynda Lovejoy, D 1/ /2018 Sandy Jones, D 1/ /2018 Commissioners are elected by district and serve staggered, 4-year terms. The chair is elected by the commissioners. * Chair ** Vice Chair 64

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