TRIPLE BOTTOM LINE 2005 A REPORT ON THE SOCIAL, ENVIRONMENTAL AND ECONOMIC IMPACTS OF XCEL ENERGY TABLE OF CONTENTS 3 XCEL ENERGY TRIPLE BOTTOM LINE REPORT 2005 __ 5 6 17 42 70 46 71 53 72 62 . . 15 40 68 ...... ECONOMIC IMPACT ENVIRONMENTAL LEADERSHIP ENVIRONMENTAL . . . . • Climate Change and Carbon Risk Management...... 42 ...... Taxes Paid/CollectedTaxes ...... 69 Construction and Maintenance Issue and Policy Overview Environmental Regulatory Developments Utility Innovations New Technology Initiatives...... 48 ...... New Technology Renewable Energy Leadership ...... 50 Renewable Energy Challenges ...... 52 Resource Planning Sourcing Services Environmental Management and Oversight ...... 54 Environmental Performance ...... 54 Legacy Projects ...... 61 Environmental Investments and Expenditures ...... 62 Non-Compliance Issues Supplier Diversity ...... 72 ...... Economic Development...... 73 Sustainable Business Practices ...... 62 Habitat Protection...... 66 ...... 32 29 20 19 18 ...... Natural Disaster Response Xcel Energy Foundation Environmental Policy SOCIAL RESPONSIBILITY • Employee Involvement ...... 33 • Corporate Contributions and Community Grants ...... 31 • In-Kind Donations. . . . . 31 ...... • 2005 Xcel Energy United Campaign.Way ...... 31 • Matching Gifts Programs ...... 32 • • • Organization Chart ...... 9 ...... • Regulated Operating Companies ...... 10 ...... • Principal Non-Regulated Subsidiaries . 15 ...... • Stakeholder Engagement...... 15 ...... • Corporate Governance...... 15 ...... • Board Composition...... 15 ...... • Code of Conduct...... 16 ...... • Corporate Compliance...... 17 ...... • Education & Energy Safety...... 34 ...... Energy Assistance ...... 35 Environmental Stewardship ...... 36 . Diversity and Inclusion in Our Workplace ...... 25 and Career Development.Training ...... 27 Corporate Citizenship...... 29 ...... Employee Benefits ...... 20 ...... Employee Safety Employment Profile LETTER FROM THE CHAIRMAN LETTER FROM THE GOVERNANCE STRUCTURE COMPANY PROFILE COMPANY TABLE OF CONTENTS TABLE . yoming to 2,500 MW by the end of 2007, , THE POWER OF WIND of wind-generated electricity in the nation. paper manufactured by wind-generated energy riple Bottom Line report. Xcel Energy has actively 25 years. In early 2006, the American Wind Energy Association declared Xcel Energy the largest purchaser report is printed on 100 percent post-consumer recycled supported the development of wind energy for more than border, is the Ponnequin wind facility featured on the cover border, At the end of 2005, we had nearly 1,100 megawatts (MW) of wind capacity installed on our system, roughly 12 percent of On the plains of eastern Colorado, just south of the W We are pleased to announce that our 2005 Triple Bottom Line are pleased to announce that our 2005 Triple We of our 2005 T the wind generation in the United States. With plans to expand our wind portfolio even further that wind power is a growing part of our nation’s energy supply. that wind power is a growing part of our nation’s Xcel Energy has taken the leadership position among all electric utilities in support of renewable energy and is working to ensure COMPANY PROFILE 5 XCEL ENERGY TRIPLE BOTTOM LINE REPORT 2005 __ positive impact on our positive a e king to mak ns of society – such as social responsibility, ns of society – such or w e ar e w w eater issues and concer do and ho r e ou our 2005 performance in these areas. in these ou our 2005 performance what w e, ar with y e ship and economic impact.This is what our Triple Bottom Line is all about,Triple ship and economic impact.This is what our and ibuting to the g e esident and CEO Pr “Our company’s vitality comes from doing what we do best – being a top utility – and from “Our company’s vitality comes man, onmental leader ength while contr vir full sense of who w am pleased to shar communities.We hope you also gain a greater understanding of how we’re planning ahead to understanding we’re of how also gain a greater hope you communities.We us. before and meet the challenges our operations improve continuously Xcel Energy. in interest your for Thank you Sincerely, C.Richard Kelly Chair growing by doing it better. We are committed to satisfying our customers by continuously committed to satisfying our customers are We by doing it better. growing sound environmentally the lowest cost, most reliable, our operations to be improving provider.” energy I Stone Arch Bridge spanning the Xcel Energy Chairman, President and CEO Richard C. Kelly stands before the historic the bridge was built in 1883 of granite Mississippi River in Minneapolis, Minn. One of the city's best-known landmarks, of a community initiative to light the and limestone. The bridge's arches were illuminated in October 2005 as a result bridge, sponsored largely by Xcel Energy. LETTER FROM THE CHAIRMAN FROM THE LETTER Xcel Energy essential electricity gas to millions of customers provides and natural towns in cities and than 100 years and more served capacity for in this have service our 10-state throughout territory.We leading utility companies. one of the nation’s are today record: track of our rich heritageand proven proud are We delivering safe, and cost-effective reliable energy our customers; to and business practices responsible through environment the protecting energy;leadership in renewable are all people.We respects that a quality workplace and creating the long termour employees, can meet the needs of so we our business for committed to sustaining to come. generations customers for and communities our commitment to fulfill of us at Xcel Energy and a shared values by is guided Each our corporate mission: our mission, achieve to maintain and build a position of financial To work that we it is imperative str en At Xcel Energy, of and, to be proud much have we you sought to give to follow, pages in the we’ve a COMPANY PROFILE

COMPANY DESCRIPTION Xcel Energy is a major U.S. electricity and natural gas company with annual revenues of $10 billion. Based in Minneapolis, Minn., Xcel Energy operates in 10 Western and Midwestern states.The company provides a comprehensive portfolio of energy-relat- We Make Electricity ed products and services to 3.3 million electricity Financial Highlights customers and 1.8 million natural gas customers. We operate major generating facilities that use a 2005 2004 variety of fuel sources including coal, natural gas, REPORT SCOPE Earnings per share – diluted...... $1.23 $0.87 nuclear fuel, water (hydro), oil, and refuse; we also The information presented in Xcel Energy’s 2005 Discontinued operations...... $0.03 $(0.39) have smaller facilities that generate electricity from C

the wind and sun. In total, our facilities are capable of O Triple Bottom Line report reflects the company’s Earnings per share – diluted M continuing operations...... $1.20 $1.26 P producing up to 15,772 megawatts (MW) of electricity. A social, environmental and economic performance N Y

Dividends annualized...... $0.86 $0.83 We generate approximately three-quarters of our P R

and impacts for the period Jan. 1, 2005, through O F

Stock price (close)...... $18.46 $18.20 I power and buy the remainder from other electricity L Vision Dec. 31, 2005.We have made every attempt to pro- E vide a balanced view of our business. Xcel Energy’s Assets (millions)...... $21,648 $20,305 suppliers to meet our customers’ energy needs. Together, we serve our communities by providing previous Triple Bottom Line report was published Book value per common share...... $13.37 $12.99 __7

energy to enhance the quality of life for our in May 2004. Significant changes since then X C E include the following: L customers. We power the essentials of life. 2005 Electricity Operations (System-wide owned and purchased generating capacity in net megawatts - MW) E N E

R G

• Wayne Brunetti retired as CEO July 1, 2005 and Transmission Lines Distribution Lines Owned Generating Purchased Generating Total (owned and purchased) Y

Customers (conductor miles) (conductor miles) Capacity* Capacity* Generating Capacity** T

CORPORATE VALUES R

retired as Chairman of the Board Dec. 14, 2005. I P L

We, the employees of Xcel Energy, are proud of E

• Richard C. Kelly appointed CEO July 1, 2005 3.3 million 78,875 187,173 15,772 7,014 MW 22,786 MW B O our company and the services we provide. We T * Does not include owned or purchased wind generation because this capacity is not available on demand. T

and Chairman of the Board Dec. 14, 2005. O ** Total represents the net generating capacity of our system during the summer season. are passionate about the role of our company in M • Organizational realignment launched in L I N the communities where we live and serve. We E 4th quarter 2005 and continued in 1st 2005 Xcel Energy-Owned Generating Facilities R Natural Gas Operations E are committed to: P quarter 2006. O R Year Customers Pipeline Unit Number of Number of Generating T 2

Type Generating Facilities Generating Units Capacity (MW) 0 • Working safely and creating a challenging 0 5 and rewarding workplace, 2005 1.8 million 33,886 miles Coal 17 36 8,207 • Conducting all of our business in an honest 2004 1.8 million 32,637 miles and ethical manner, Natural Gas 26 61 4,913 • Working together to serve our customers, Nuclear 2 3 1,617 • Being accountable to each other for doing Hydro 2883508 our best, Learn more Oil 9 24460 • Treating all people with respect, at xcelenergy.com Refuse-derived fuel 3 6 67 (Enter these key words in the search engine) • Protecting our environment, and Wind 1 37 27* • Code of Conduct • Continuously improving our business. • Corporate Governance FAQs * Xcel Energy purchased 928 megawatts of wind power in 2005. • Vision, Mission, Values COMPANY PROFILE 9 XCEL ENERGY TRIPLE BOTTOM LINE REPORT 2005 __ s reliability , . operational issues and , Leadership Leadership Councils and continuous improvement. Environmental Council Provide guidance and feedback concerning position and action on significant the company’s environmental policy In early 2006, Richard C. Kelly, chairman, president chairman, C. Kelly, In early 2006, Richard leadership formed four Energy, and CEO of Xcel a more hands-on, participative councils to facilitate process for his senior management decision-making and areas of focus are as follows: team. The councils Financial Council to preserve Develop financial goals and objectives financial integrity; and enhance the company’s to achieve goals; approve plans and monitor results capital expenditure review and approve earnings and budgets; and execute financial strategy Strategy Council create Develop Xcel Energy enterprise strategy; strategic issues; shared understanding of important and provide executive oversight. Operations Council issues; Identify and focus on critical operational implement solutions; and create cross-functional dialogue on system status, productivity business decisions; and ensure company operations, business decisions and public policies are consistent with Xcel Energy’ desire to be an environmental leader. Gary Gibson, president and CEO, Gary Gibson, president Southwestern Public Service Company, an Xcel Energy Company president and CEO, Cynthia L. Lesher, Northern States Power Company- Minnesota, an Xcel Energy Company Michael L. Swenson, president and CEO, Northern States Power Company- Wisconsin, an Xcel Energy Company president and CEO, Patricia K. Vincent, Public Service Company of Colorado, an Xcel Energy Company and Chief Financial Officer Paul J. Bonavia, president, Utilities Group Paul J. Bonavia, president, Benjamin G.S. Fowke, III, vice president Raymond E. Gogel, vice president, Customer and Enterprise Solutions, and Chief Administrative Officer Cathy J. Hart, vice president, Corporate Services, and Corporate Secretary Gary R. Johnson, vice president and General Counsel David M. Wilks, president, Energy Supply Richard C. Kelly, chairman, president and CEO, Xcel Energy chairman, Richard C. Kelly, ORGANIZATION CHART ORGANIZATION Derived Fuel W rchased M Derived Fuel W Coal 45% 9 7 M rchased 9 7 Coal 45% Refuse- Refuse- ype Biomass d n Energy Owned and Pu a by Fuel T l y MW Hydroelectric MW able Energy Owned and Pu Energy Owned ,144 l 7% ,144 2005 Xce ype Renew n Hydroelectric 38% tha nd ear i Fuel T Gas/Oil ucl able 10% W N by 2005 Xce More y n 7% Renew MW 1 38% tha nd 0 Generation Capacit i 0 Gas/Oil 1 ear , MW 1 1 W ucl 0 Biomass N More 10 10% , d 1 n a Generation Capacit

ective energy to our customers and help hedge against more volatile fuel prices. energy against volatile to our customersective more and help hedge Our f early 2006

of wable energy includes: wable portfolio as as produce electricity from wood waste or fuel derived from municipal solid waste or garbage. produce electricity from wood waste or fuel derived from municipal e ene Refused-Derived Fuel This processed waste provides a low-cost fuel and reduces the amount of material going to landfills. This processed waste provides a low-cost fuel and reduces the amount W

vide cost-ef o

2005 r (owned and purchased generating capacity) (owned and purchased generating capacity) Renewable, part of our energy of energy a growing mix.These sources non-emitting are can sources pr RENEWABLE ENERGY PORTFOLIO RENEWABLE

early 2006 of as as COMPANY PROFILE XCEL ENERGY TRIPLE BOTTOM LINE REPORT 2005 11 __ - As a mis ligation. yond 2010.yond If ate be rently licensed lives. rently has been made to illed its ob s ear ie Island so that the plants can ue to oper anted NSP-Minnesota per r air g e the United States Nuclear Regulatorythe United States Nuclear (DOE) has not fulf y islatur y g ate to the end of their cur Investor Information Learn more at xcelenergy.com (Enter these key words in the search engine) • Utah. capacity storage has low-level NSP-Minnesota generating nuclear two on-site at its available plants to continue both allow plants that would end of their licensed lives until the to operate not were disposal facilities if off-site low-level to NSP-Minnesota. available successful, Prairie for anticipate similar filings we Island in the future. the Nuclear Regulatorythe Nuclear Commission. Xcel Energy has also made application to the Minnesota Public a Certificate of Need to Utilities Commission for a dry at Monticello so that establish facility storage the plant can contin High-level Radioactive Waste Disposal Waste High-level Radioactive to has the responsibility government The federal commercial fuel from nuclear dispose of spent plants in the U.S.reactors at power and other high- date, wastes.To radioactive level the Department of Ener result, power at nuclear fuel remains nuclear spent the country.plant sites around NSP-Minnesota is licensed b storage fuel in spent nuclear Commission to store plants and in a dry of its nuclear pools at each stor- at Prairie Island. facility age In 2003, the Minnesota State Leg operating Monticello’s to extend Application license an additional 20 y sion to continue to store its spent fuel on-site at its spent fuel to store sion to continue Monticello and Pr oper MW

163 sed MW 9, MW 9 waste generat- waste 41 2, e Coal 44% facility located in facility e MW MW 4 acility located in wastes.The discharge 74 6, Type e adioactiv ell f ating plants, Monticello (NMC). Gas 13% Fuel el r nw y v les by on ener ti mi 363 bu i r able w-le t adioactiv 73 s protective clothing,protective rags, tools 1 , Di , 9 ne -Minnesota Owned and Purcha -Minnesota 17% i lear g

el Renew p i les P uc ear mi n olina and at the Cliv ucl or paper

26% N o on i t uc les 2005 NSP d ss ement Compan mi mi g con 0

2

ans y Generation Capacit esins, r 41 1 T 5 ne i , aste Disposal 7 el tural Gas Operations Natural wns tw 9 p adioactive waste consists primarily waste of demineraliz- adioactive i and Prairie Island, by operated Nuclear are which Mana ed within its borders. waste radioactive Low-level plants is currently nuclear NSP-Minnesota’s from disposed of at the Bar South Car W gaseous, produces plant operation power Nuclear liquid and solid r by controlled are wastes and handling of such regulation.federal wastes radioactive High-level fuel.primarily used nuclear include Low-level r er r become contaminated and equipment that have use in the plant. through Disposal Low-level Radioactive Waste state for on each places responsibility law Federal disposal of the lo The electric production and transmission system of NSP-Minnesota and The electric production and transmission system jointly referred to as NSP-Wisconsin is managed as an integrated system, costs of the the NSP System. The electric production and transmission and NSP-Wisconsin. entire NSP System are shared by NSP-Minnesota NUCLEAR POWER OPERATIONS In the NSP-Minnesota service territory, Xcel Energy o P ity MW al

ac ot T 163 Cap d sed ity MW 9, ac hase 9 urc 41 Cap P 2, gy company. ons MW

rati ned acity 4 w MW) O 74 Cap - s Ope 6, tt in Minnesota, y ng it ti awa s eg ic era m t on/ an Xcel Ener i ons ne Gen ype les on ss n ti ati , t mi 363 mi bu i r acity i t ans p s Subs r T ng 173 Fuel T ca , Di ti g -Minnesota Owned and Purcha 9

tin by

les y d) Genera enera mi g ne oun i d r g or el &

p er ase i -Minnesota Electr d y-Minnesota, P on on g uct i i 2005 NSP les un d urch th Dakota. ss ss tin d p mi ra d mi mi an con

0 d an ene d ans 41 rans r 12 hea G 1.3 million customer North and South Dakota. Dakota gas utility servicesNatural to approximately 457,000 customers in Minnesota and Nor T T 5 , er wne v 7 Natural Gas Operations o 2005 NSP (O ( 9

Leadership Cynthia L. Lesher and CEO,president Northern States Power Compan Customers • Electric utility service to approximately • ne i on el Generation Capacit p ti i P bu i r t s Di A) nes i L

on ti bu i r t s i D

ota. ANY (NSP-MINNESOT th Dak icity in Minnesota, North Dakota, COMP A MINNESOT OPERATIONAL STRUCTURE OPERATIONAL NORTHERN STATES POWER COMPANY – POWER COMPANY NORTHERN STATES A in engaged utility NSP-Minnesota is an operating the generation, purchase, transmission, distribution and sale of electr and South Dakota. NSP-Minnesota also purchases, customersdistributesgas to retail and sells natural gas in natural and transports customer-owned Minnesota and Nor REGULATED OPERATING COMPANIES COMPANIES OPERATING REGULATED Xcel Energy Inc. of four is the holding company that provide companies operating regulated electricity, and in some areas, gas natural service, customers to (Colorado, in 10 states Kansas, Michigan, Minnesota, Mexico, New North Dakota, Oklahoma, and Dakota,Texas South Wisconsin.); principal subsidiaries; non-regulated and the Service Company. g tin nera e G

COMPANY PROFILE XCEL ENERGY TRIPLE BOTTOM LINE REPORT 2005 13 __ g tin nera e G y it MW c al a t 9 p o g a T C 7,47

ype d y it MW ase pac ch 44 a r 6 u C , P 3 by Fuel T y rchased y Distribution Generatin it MW

c 5 al wned 9% MW) 3 O Capa Co - 3,83 ts t able 1% gawa ines e tions L / s et m Renew wned and Pu tion line 8 in n 0 y station 2 it Opera smission c Generation Capacit stribu Gas 60% i ub y 168 miles pa S D , ran T ca 0

2 g

es d) eneratin 2005 PSCo O mil g lectricit d roun & tor erg ase c es d

ine Pipe u ch ion un d el ss p d pur i on P d an smission Distribution c d an nsmi tural Gas Operations d ran a 2,300 mil r T hea 1.3 million customers in Colorado. 1.2 million customers in Colorado. T

,131 er v 7 Na o 2005 PSCo E (Owne ( 8 Customers • Electric utility service to approximately • service gas utility Natural to approximately incent, Leadership Patricia K. V and CEO,president Service Public Company of Colorado, an Xcel Energy company. PUBLIC SERVICE COMPANY SERVICE COMPANY PUBLIC (PSCo) OF COLORADO in the utility engaged PSCo is an operating generation, purchase, transmission, distribution and sale of electricity. PSCo also purchases, transports, customersdistributes gas to retail and sells natural gas. natural and transports customer-owned MW Capacity 0 otal T 33 , 1 MI) d & Capacity MW I

hase 61 4 Purc city ions (W apa ly) ed C

MW n

W) w O 869 Operat MI on atts - M y s aw eg / tricit ne et m station (WI & 2 s in n peli Sub 0 les mission 2 acity rans ing tion Pi T nerat 2,050 mi ating cap

es Distribu Ge consin Elec

nd) ener mil & -Wis on undergrou ting purchased g d and conductor

d Genera ransmissi T 242,000 customers in northwestern Wisconsin 242,000 customers in northwestern and in the western portion of the Upper of Michigan. Peninsula territory 98,000 customers. to approximately 896 Natural Gas Operation verhea (o 2005 NSP (Owned an 35, Customers • Electric utility service to approximately • services gas utility Natural same service in the rating ene G istribution ines D L tion

stribu i D

esident and CEO, Northern States Power WISCONSIN COMPANY (NSP-WISCONSIN) WISCONSIN COMPANY Company-Wisconsin, an Xcel Energy company. pr Leadership Michael L. Swenson, NORTHERN STATES POWER COMPANY – COMPANY POWER STATES NORTHERN A in engaged utility is an operating NSP-Wisconsin the generation, purchase, transmission, distribution Wisconsin and sale of electricity gas in and natural and Michigan. COMPANY PROFILE XCEL ENERGY TRIPLE BOTTOM LINE REPORT 2005 15 __ - ed inde diversity, skill, consider e lished to assist b al of the Governance, v o as judgment, h been esta e suc v nine of whom ar s ior appr s, Exchange.The chairman, and president ds of publicly held companies held ds of publicly actor k ector xecutive officer and is is an inside director xecutive Stoc k actices that ha ganizations of comparable size to Xcel Energy. ganizations of comparable iteria, selection and orientation director and or hief e GOVERNANCE STRUCTURE STRUCTURE GOVERNANCE Compensation and Nominating Committee. at age directors to retire policy requires Board 72, inside directors. for except integrity and experience with business and other integrity and experience or not serve than three Directors on more may other boar without the pr the board in governing the company and its the company in governing the board affiliates.They also describe membership board cr ownershipstock rules. CORPORATE GOVERNANCE GOVERNANCE CORPORATE At Xcel Energy, strive to continuously we in an ethical and responsible conduct our business of our customers,the best interests manner so that employees, shareholders are and communities to come.The decades and for served today board of directors pursuant operates written to a set governance.These corporate of guidelines on corporate the company’s guidelines set forth and the policies and philosophy governance pr BOARD COMPOSITION In 2005, directors of board consisted Xcel Energy’s of 10 dir c not deemed as independent. membership Board is based on f pendent within the listing standards of the New pendent within the listing standards Y view of other companies’ view e our r k, corporate reporting,corporate will continue we y eedbac Finance Nov. 3, 2005, to WaveDivision Holdings, LLC; sold Jan.Minnesota assets 9, 2006 to Charter Communications.) Board Committees • Audit • • Governance, Compensation and Nominating • Operations, Nuclear and Environmental The Xcel Energy board of directors has four standing committees: oluntar STAKEHOLDER ENGAGEMENT STAKEHOLDER PRINCIPAL NON-REGULATED SUBSIDIARIES SUBSIDIARIES NON-REGULATED PRINCIPAL • Eloigne Company • Quixx Corp. sale) (for • Innovations, Seren Inc.sold assets (California In Spring 2005,Triple our first published we help us continually Bottom Line report.To our reporting,improve a formal developed we a dialogue with key to cultivate process feedback stakeholders. In 2005, conducted personal we stakeholdersinterviews and invited with targeted surveyother comments via an online tool. Based on this f reporting practices, in developments and general v to our process. improvements to make ting nera e G g l MW tin

ta To ,814 enera Capacity 4 G W sed city rating M Type rcha apa ene 490 Pu C G Fuel by rchased y ed MW

on n city W) w Coal 52% uti O b apa C 4,324 stri i e atts - M D bl aw eg 2% tions n/ o s et m

wned and Pu Renewa on in n missi 465 stati ines acity Opera b L Gas 46% rans T y Su on Generation Capacit ti u b ating cap

es l 2005 SPS O istri ener mi und) D o r o lectricit & n

o undergr nduct purchased g o d and c d 84 ransmissi T 395,000 customers in portions of Texas, 395,000 customers in portions of Mexico,New Oklahoma and Kansas.* overhea 2005 SPS E (Owned an ( 47,9 Customers • Electric utility service to approximately a definitive agreement to sell its delivery system *In Oct. 2005, SPS reached to Tri-County Kansas and a small portion of Texas operations in Oklahoma, transaction, subject to regulatory approvals, is Electric Cooperative. The in 2006. expected to be completed lic Pub n ester Southw , vice Company, an Xcel Energy company. esident and CEO Ser pr Leadership Gary L. Gibson, SOUTHWESTERN PUBLIC PUBLIC SOUTHWESTERN (SPS) SERVICE COMPANY primarily utility in SPS is an operating engaged the generation, purchase, transmission, distribution and sale of electricity. COMPANY PROFILE XCEL ENERGY TRIPLE BOTTOM LINE REPORT 2005 17 __ onment. vir ship. yond current standards of environmental current standards yond be o or the en environmental compliance and build upon compliance and build environmental to pursue industry-leadingthat foundation that enhance customer and initiatives while demonstrating value shareholder and concern our communities for respect f g environmental and demonstrate performance leader ENVIRONMENTAL POLICY ENVIRONMENTAL and will pursue excellence environmental We strategy and daily in our corporate innovation operations.The of directors’ board Operations, Committee oversees and Environmental Nuclear and performance compliance our environmental potential to address strategies and sets corporate policies. environmental new Highlights: • set a cornerstone will of outstanding We • that voluntary advance will programs We contact , ong r need to leave their name t Affirmative Action EEO Policies Learn more at xcelenergy.com (Enter these key words in the search engine) • • • Environmental Policy Business Conduct program to assure the assure to program Business Conduct Do What’s Right: Report What Seems W unless they want to. Employees have numerous options to report Employees have numerous options example, compliance or ethics issues. For employees can speak to a supervisor Conduct the Corporate Compliance & Business Hotline Office or call our confidential Compliance at 1-800-555-8516. An external agency operates seven days a week. the hotline 24 hours a day, Employees don’ POLICIES AND MANAGEMENT SYSTEMS AND MANAGEMENT POLICIES CORPORATE COMPLIANCE COMPLIANCE CORPORATE thousands of compliance Xcel Energy has literally with its business. associated requirements In 2004, Compliance Corporate a formal established we & policies,company’s audits, communications, training, and reporting requirements measurement and effectively consistently managed are everythroughout Xcel Energy. of area COMMUNICATING WITH WITH COMMUNICATING BOARD OF DIRECTORS XCEL ENERGY’S to correspondThose who wish with e-mail: of directorsthe board may [email protected]. Other written correspondence be should Secretary of the Corporate sent in care at principal offices:Xcel Energy’s 414 Nicollet Mall, Minneapolis, MN 55401-1993. inancial f eign or domestic, or business, y oid an whether f v yees and Xcel Energy’s board of board and Xcel Energy’s yees ees will a y Xcel Energy. CODE OF CONDUCT CODE OF vorable treatment for Xcel Energy or for treatment vorable a directors are required to complete Code to complete Code directors required are annually. of Conduct training All emplo or other relationships where personal where or other relationships interests conflict or appear to conflict interests with the of responsible for ensuring is behavior his/her for responsible legal, and ethical. honest when buying, information non-public selling or Xcel Energy or securities.recommending stock to or payment or similar unlawful kickback official, public any from or government, or other individual, to secure any concession, any to secure or other contract f the employee. Emplo • xcelenergy.com/TripleBottomLine We welcome your comments and questions We regarding this report. Please take a moment to complete our short survey online at Highlights: • and officer employee of Xcel Energy is Each • not use insider or material may Employees • bribe, any or receive will not pay Employees OUR ethical standards committed to the highest are We standards to these high adhere do.We in all we because it is, been, and has always the right thing to do. • XCEL ENERGY EMPLOYMENT PROFILE – FISCAL 2005 The 10,847 employees of Xcel Energy work in 13 states (primarily in Colorado, Minnesota, North Dakota, New Mexico, South Dakota,Texas and Wisconsin); plus the District of Columbia. Overall, local unions represent nearly 57 percent of Xcel Energy’s workforce.Average length of service for both union and non-union employees is 17.3 years. S O C I A L R E

# of % represented S P O

State employees by unions N S I B I L

California 47 30% I T Y Colorado 3,780 60% District of Columbia 3 0% __19 X

Michigan 19 89% C E L E Minnesota 4,416 60% N E R G North Dakota 124 62% Y T

SOCIAL RESPONSIBILITY R I P L

New Jersey 3 0% E B O T

New Mexico 181 61% T O M L

Nevada 1 0% I N E

AT XCEL ENERGY, we are committed to conducting our business in an ethical and R E

Oklahoma 13 54% P O

socially responsible manner. As an employer, good neighbor and R T

South Dakota 69 71% 2

environmental steward, we have an obligation to: 0 0 Texas 1,250 45% 5 • Provide a safe and respectful workplace with competitive pay and benefits and career development opportunities that offer Wisconsin 939 45% job satisfaction and personal growth. Wyoming 2 100% • Serve our customers, care for our communities and work to Total 10,847* 57%** improve society. *Includes full-time, part-time and temporary employees and those serving • Strike a balance between meeting the energy demands of on long-term disability. Both bargaining and non-bargaining employees are our customers and minimizing the environmental impact represented in this total. Employees of Nuclear Management Company are excluded. of our operations. **Represents a weighted average.

1 Ming Wa Hui, substation maintenance engineer SOCIAL RESPONSIBILITY XCEL ENERGY TRIPLE BOTTOM LINE REPORT 2005 21 __ Teresa Hrdlicka, lineman journeyman Hrdlicka, Teresa as created as created ganization ork Authority oss the or uously improve the safety the safety improve uously ys a week. business, In this there gy Stop W actices acr gy through: ety improvement efforts ety improvement en da v ety Xcellence Committee w yee safety is first and foremost our is first and foremost safety yee se , y proven “best proven practices” on saf Consistent management of safety issues of safety Consistent management and pr EMPLOYEE SAFETY EMPLOYEE • Replication of internal and external • communications Cross-functional HIGHLIGHTS OF XCEL ENERGY’S HIGHLIGHTS OF XCEL ENERGY’S SAFETY PROGRAMS: Xcel Ener time,At any stop Energy Xcel may employees injury workers, to prevent to their fellow work or themselves. public the general Xcel Energy Safety Xcellence Committee The Saf at culture the safety in 2005 to strengthen Xcel Ener • and development policy review Safety • “There is no job we do or service we is no job we do “There perform that we cannot take so urgent the necessary equipment time and use to do it safely.” — Xcel Energy Safety Policy Emplo provide concernchief at Xcel Energy.We critical electricity gas service and natural to our customers 24 hours communities and our a da is no room for carelessness or unsafe practices. or unsafe carelessness for is no room to together work Managers and employees sustain and contin of our operations. y g ble to family members to family ble Assessment, tobacco cessation vailable for eligible dependents) eligible for vailable vings plan with Xcel Ener aila sement accounts v e (a g ime Off programs a T t- and long-term disability insurance er v aid eimbur contribution pension plan Competitive reimbursementprogram Tuition P personal floating holidays and in Denver programs Transit Minneapolis/St. Paul is also a support programs and health improvement 401(k) sa Health Risk Dismemberment(AD&D) and insurance shor for available AD&D are and insurance (life dependents) eligible r medical, dental, vision and prescription drug co EMPLOYEE BENEFITS EMPLOYEE • • Adoption assistance • • • and additional Recognized national holidays • reimbursement accounts Transportation • • that Program Assistance An Employee • • • and dependent care Health care • insurance,Accidental Life Death and *Bargaining-unit benefits are based on the contract negotiated with a specific local union. • plans that provide of health care A choice Xcel Energy offers current employees benefits retirement health and competitive than 40 percent to more equivalent that are base pay. Since 1992,of an employee’s employees comprisewhose families domestic partners and/or participated of a domestic partner have children in Xcel Energy benefits.The options for benefit include: non-bargaining* employees SOCIAL RESPONSIBILITY XCEL ENERGY TRIPLE BOTTOM LINE REPORT 2005 23 __ t . In addition, Xcel Energy . Nothing in this job is more important 15 Seconds 15 Seconds to Safety “Have the accident investigation before the “Have the accident Energy Bigham, Xcel Vern accident,” lectures journeyman lineman. retiree and former it through your 15 seconds and run “Take asking yourself, ‘Am I subconscious mind, have the abiding by the safety rules? Do I job? Do I have proper equipment here to do the what the the right people? Do I really know your head boss wanted? If that little voice in a problem here and you says, ‘Look out, there’s and don’ might get hurt doing this,’ back off you can do do it until you know for sure that it safely those than your safety and the safety of working with you.” injures and In 1968, Bigham suffered serious when he was burns over 65 percent of his body NSP substa- changing out a live insulator at an and painful. tion buss. His recovery was long for three years He went back to being a lineman at the company and then spent his last 17 years working in the Safety Department. Now retired, safety talks to linemen continues to give Vern across the country produced a video of his message in 2005 that is now being widely distributed. ic y is a statistical- e v or specif The sur e assessment. ether an action plan f ety-cultur eflect and opportunities to strengths on which David Benefiel and Mark Pinnegar, Xcel Energy natural gas David Benefiel and Mark Pinnegar, workers, practice proper wrenching techniques on “The Cage,” an ergonomic training device that was created to ensure employees work safely in tight or awkward positions encountered in their day-to-day jobs. Safety Perception Survey issues and of safety awareness assess employee To better understand and weaknesses the strengths culture, safety of our workplace employees all field participate employees and Energy the in Supply Survey, Perception Safety every conducted 12 to 15 months.The survey is instrument used today industrial model for the most credible considered saf muscles, learning are to prevent how employees motion activities, injuriescaused by repetitive lifting. and heavy postures awkward ly valid tool to evaluate employee safety in 21 safety employee tool to evaluate valid ly scoringthe survey categories in categories.Top r build. scoring categories reflect Lower need for improvement.At Xcel Energy, survey are results so individual teams group compiled by work can put tog improvements. opped sig- This situation e. ir as created to teach as created ains has dr uous f am w ees in all business areas ees in all business areas r y or both office workers og ains and spr y emplo aining f g aining pr ing and contin unication about safety prevention, unication about safety der Team ire Retardant Clothing Team recommended Team Clothing Retardant ire ies were reduced by nearly 15 percent.We by nearly reduced ies were and a tr onomics tr etching Programs g or Xcel Ener Throughout Xcel Energy’s fleet Xcel Energy’s plants, Throughout of power service centers and offices, seeing are employees before exercises stretching of routine the benefits starting their workdays, and as a result, the number of on-the-job str Str nificantly.up and loosen By taking time to stretch The most common and frequent on-the-job injuries on-the-job The most common and frequent f Sprains & Strains – Musculoskeletal Sprains & Strains – Musculoskeletal Disor requires different protective clothing than that clothing protective different requires against an electrical fire.Theworn to safeguard Gas F be purchased clothing retardant fire that new all gas workers.for 2005, In October fire new all gas employ- for purchased suits were retardant ees, employees,and field implementation of a and local program stretching company-wide initiatives. employee-led Gas Fire Retardant Team Clothing circumstances,In rare Energy Xcel gas journeymen to a gas fire, be exposed accidentally may which is an engulf employees about the clothing. use of the proper employees Field Safety Councils Field Safety Xcel Energy primary take employees responsibility managing injuryfor prevention.Through the last year, launched Council program Safety Field to identify the company across working employees a guided six-step problem- risks through go and recom- seek solutions and make to solving process policies and processes. safety new mendations for er attribute the decline to increased safety awareness safety attribute to increased the decline and comm are sprains and strains. sprains are In 2005, these types of injur SOCIAL RESPONSIBILITY XCEL ENERGY TRIPLE BOTTOM LINE REPORT 2005 25 __ om omen fr acilitating y f se w er The WIL network . y g ork explores and creates explores ork k of div or The netw omen help the business b action and to become the leader in the action and to become the leader ancement at Xcel Ener ofessional development programs to help programs development ofessional ganization. pr necessary gain the experience career women for adv candidates outside also seeks to recruit female educational programs through the company in the utility industry. interest that promote all geographic areas within the Energy areas Supply all geographic or Women’s Interests Network (WIN) Women’s Interests in late 2005,Launched Women’s the of the lives (WIN) seeks to improve Network at Xcel Energy and sustainable in tangible women all for environment to enrich the work ways stated mission is to employees.The network’s help w Issues Link (WIL) Women’s Issues in 2001,Established Women’s Xcel Energy’s Link (WIL) is a netw The network’s mission is to address the issues and is to address mission The network’s concerns continuing of people of color and promote education, awareness. and cultural training SOURCE of an experi- the retention to encourage also works enced minority base at Xcel Energy. employee development, supporting diversity and building employee to increase relationships collaborative satisf of women. advancement .Through network sity lusive environment, lusive er Mary Simpler, plant supervisor, Sherco Yard, helps sixth-graders perform experiments in mechanical energy. Sherco Yard, plant supervisor, Mary Simpler, e inc essionals. Xcel Energy’s of or div y at Xcel Energy regardless of y at Xcel Energy regardless n networking skills and engage n networking ea of workforce diversity. ea of workforce airl e a mor se pr lear v or all people of color at Xcel Energy. er espect f hie ing relationships.The also networks eated f aining, king f e tr .E. all employ- in 1991 to ensure formed was or oster r ticipants to use their skills and experience to experience ticipants to use their skills and le rti o help ac etaining div DIVERSITY AND INCLUSION AND INCLUSION DIVERSITY Supportive Association of Gay Employees at Xcel Energy (S.A.G.E.) S.A.G ees ar orientationaffectional issues.Through and related education and networking, S.A.G.E. members are Xcel Energy to help become and remain working a leader in the ar Strategic Organization Utilizing Resources for Career Enhancement (SOURCE) of color, in 1988 byCreated women SOURCE development, career promotes mentoring, and netw IN OUR WORKPLACE Xcel Energy to be an equal opportunity is proud that are and practices with policies employer and nondiscriminatory.inclusive and By respecting and all the diversity among our employees valuing business, do we those with whom every employee, ensuring for responsible and leader is manager of of all forms is free environment our work discrimination and harassment. EMPLOYEE NETWORKS T Xcel Energy supports and existence the formation that encourage groups of organized employee par issues.These of key workplace awareness raise a vital groups, Networks,”serve “Employee called a sense of community purpose to help create and f involvement,develop- professional gain employees ment tr in mentor assist in recruiting, developing, and promoting r include: networks employee Top Qua Top le rti Top Qua Top le Edison Electric Institute rti Top Qua Top Edison Electric Institute gy Actual gy Actual Edison Electric Institute gy Actual Xcel Ener .53 2.76 Xcel Ener te Xcel Ener 3.40 1.39 0.70 0.52 0.28 ident Ra te 1.53 1 3.62 1.79 0.70 0.28 0.72 te Time Inc Time ident Ra 1.57 4.37 2.01 0.80 0.31 0.77 icted ident Ra le Inc Inc .56 2001 2002 2003 2004 2005 2.44 0.78 1 0.39 0.66 y & Restr 2.98 5.21 1.78 0.65 0.24 1.00 2001 2002 2003 2004 2005 2001 2002 2003 2004 2005

Awa

Workday Workday s t n e d i c n I s t n e d i c n I s t n e d i c n I OSHA Recordab Days Lost 2005 Safety Performance2005 Safety Metrics In every measurement, performance 2005 safety and goals Xcel Energy met or exceeded in achieving the gap reduced significantly top quartile performance. Xcel Energy employees working at our Jones Station have achieved a generating plant in Lubbock, Texas, safety record that is worthy of recognition: nine years without a lost-work-day incident. SOCIAL RESPONSIBILITY XCEL ENERGY TRIPLE BOTTOM LINE REPORT 2005 27 __ ransmission Control Center Certification for Security Personnel To further protect the security of our production To and transmission facilities, Xcel Energy launched an effort in 2005 to seek advanced training and certification for all security employees working in power plants, substations, office buildings, serv- ice centers and other critical operations. Twelve security employees earned Physical Security Professional certification from the American Society for Industrial Security (ASIS). Of this group, four employees also achieved the ASIS Certified Protection Professional designation. Steve St. Onge, network reliability lead, Steve St. Onge, network reliability lead, T course to teach employees how to avoid to avoid how course employees to teach personal protect to identity theft and learn ways from computing environment Xcel Energy’s hackers, spammers and other cyber invaders. aining ed tr equir y employees to y employees g ams in 2005 included: r og luded r h inc gy and contractors employees aining pr whic or all Xcel Ener ee tr y ents, v Xcel Ener ement f ities Trading for Non-bargaining Employees; for Trading ities g Career Opportunities Recruitment for Diversity elopment, skills and problem communications w emplo Learn more at xcelenergy.com (Enter these key words in the search engine) • Benefits at Xcel Energy • • Internships and College Recruiting • v aining e TRAINING & CAREER DEVELOPMENT TRAINING & CAREER DEVELOPMENT help them achieve job success and satisfaction. help them achieve In 2005, NEW IN 2005 Ne DISCIPLINARY PRACTICES DISCIPLINARY system that Discipline Xcel Energy uses a Positive his for responsibility employee’s emphasizes the behavior.or her own on communicating It focuses in a and improvement of change an expectation while, way positive at the same time, maintaining the seriousnessconcern of the situation. for is non-punitive. Discipline program The Positive on individual accountability in a It focuses manner. and dignified respectful to our success and long-term sustainabilityVital skilled highly a and attract is our ability to retain a wide provide and talented workforce.We opportunities of development and skills range mana resolution, time management, diversity training and others. in safety, compliance and corporate environmental topics. also completed professional Employees as leadership such in areas training development de participated than 150,000 more in and completed tr Secur Energy Regulatorya Federal Commission (FERC) course;refresher Business Practices and a Secure y ety advisor Xcelente!, ¡ ees in all y Act and the guidance joint saf s,

ings and other means.We ief reements. Non-bargaining-unit esolve problems or issues. problems esolve ANCE SYSTEM g Xcelente! members participated bor Relations ¡ cent of our emplo e a

rievance procedures prescribedrievance within procedures en per y and union leader v unications br espectiv boratively with our bargaining-unit employees boratively ate in compliance with the policies of the ate in compliance with the policies ifty-se Xcelente! (Latino Network) Xcelente! oper National Labor Relations Board, the statutes of the National La of the Department of Labor. groups, meetings, labor management executive comm EMPLOYEE GRIEV required are bargaining-unit employees Collective to use the g their r and subsidiaryemployees are employees as Peer known an appeals process afforded Resolution.ThisGroup course is the formal of action used to r ¡ states several across than 100 employees More sharing through are culture Latino to maximize in 2004 established a network energy through and collective individual potential networking, develop- mentoring and professional ment. In 2005, WORKFORCE RELATIONS F business areas were represented by independent represented were business areas work union organizations 2005.We in trade colla respectful and mutually to build a cooperative do this through:relationship.We programs training among decision-making shared that promote compan in community service local nonprofit in community activities for aimed at creating organizations and hosted events understanding.a dialogue and cultural s employees

The Challenges of

Tuition Funding an Aging Workforce Nearly 45 percent of Xcel Energy’ fall into the Baby Boomer category (born between 1946-1964). That means many of our Boomers will be preparing for retirement in the not-too-distant future, taking their skills and expertise with them. Planning group is preparing for Our Workforce the future needs of the company with its employee development programs, leadership training and coaching, and stepped-up recruitment efforts. Kenneth Long, Fort St. Vrain stores specialist stores St. Vrain Kenneth Long, Fort One of Xcel Energy’s employee benefits employee One of Xcel Energy’s program. In 2005, is a tuition reimbursement $600,000 in tuition Xcel Energy provided funding to 331 employees. SOCIAL RESPONSIBILITY XCEL ENERGY TRIPLE BOTTOM LINE REPORT 2005 29 __ ces y esour y appl forts as well as as well forts velopment, Environmental ganizations ma elopment ef ams to meet the needs of our v r it or og unity De of y to better track efforts we were were efforts we y to better track Comm t economic de unity Development.With the change we we unity Development.With the change s why you’ll notice a change from our prior from notice a change you’ll s why tnerships and Promoting Arts and Culture.There tnerships and Promoting o use our collective knowledge, r o use our collective knowledge, ar ight balance of pr XCEL ENERGY FOUNDATION XCEL ENERGY 2005: $3,985,828 2004: $4,954,680* *This represents the sum of our 2004 Focus Area Grants and Environmental Partnerships. Formed in 2001 as the philanthropic armFormed as the philanthropic in 2001 of our company, the oversees Xcel Energy Foundation activities charitable than $12 million-funded more of Xcel Energy and its subsidiaries.Energy Xcel charitable IRS-classified is a 501(c)3 Foundation of by board its own organization is governed that to funding programs committed are directors.We and partnering organizations with nonprofit our servicethroughout territory, in both urban and rural communities, our mission: to achieve “T of our communi- and skills to meet the needs area service that Xcel Energy’s ties and ensure all citizens to is a highly desirable place for live, work or own a business.” XCEL ENERGY FOUNDATION FOCUS AREA GRANTS Qualifying nonpr for grants in our four focus areas: focus in our four grants for Supporting Education, causes to support, worthy many are and funding the r a challenge. and our business is always community That’ to area focus Communities Building Stronger Comm suppor job readiness, housing and self-sufficiency affordable programs. Partnerships a Making Environmental this year, also a change was allowing distinct focus our compan supporting and open our servicealready areas opportunity. to greater P 33% ation Grants Found ate Giving 20% Corpor ift) Way 4% atural ate G N 17% Disasters nited U (Corpor ons 5% Gifts Matching buti ntri 21% oyee Co Empl Focus Area Grants Online Grant Application Process Learn more at xcelenergy.com (Enter these key words in the search engine) • • • Xcel Energy Foundation CORPORATE CITIZENSHIP CORPORATE At Xcel Energy, a responsibility have we believe we – as an do we impact in all a positive to have employer, neighbor, good and advocate community our all of get “you say steward.We environmental it every through then demonstrate day energy,”and to our community, and commitment our focus our people. and our environment XCEL ENERGY FOUNDATION/CORPORATE CITIZENSHIP 2005 – $12,225,967 ® 12 45th percentile 3.61 Rating Compared to others ® 12 employee engagement survey, engagement employee by created ® 12 Year Q 200520042003 3.65 3.65 39th percentile 44th percentile EMPLOYEE ENGAGEMENT ENGAGEMENT EMPLOYEE levels is important engagement on many Employee job satisfaction,and is tied to employee productivi- ty, ability and Xcel Energy’s performance company talent. top and retain to attract basis, an annual On Xcel Energy to participate asks all employees in the Q action and create with their employees results in this area. plans to seek improvements The Gallup Organization. is engagement Employee “5”being with on a 1-5 scale measured the highest. In 2005, a 3.65 Xcel Energy achieved employees engagement, employee for rating same as the the 2004 rating. Q managers review year Each e electric and natural g kforce pipeline to meet kforce or king to enga or e w e industry needs. Katie Lomba, hiring leader from Utility Services, interviews Rodney Coleman of New Orleans during a Denver job fair Katie Lomba, hiring leader from Utility Services, interviews Rodney Coleman of to assist evacuees of Hurricane Katrina. futur gas utilities in strategic and unified efforts and unified to gas utilities in strategic build a skilled w WORKFORCE PLANNING: PLANNING: WORKFORCE RECRUITMENT STRATEGY XCEL ENERGY’S our serviceThroughout territory, with work we high schools, schools, technical and colleges an interest generate to agencies community in working for women men and among young job shadowing provide the energy industry.We experiences, internships and other on-the-job learning opportunities. In 2005, Xcel Energy to help a $10,000 grant provided Foundation associate Technology the Energyestablish Process at St. program degree in St. College Paul Paul, Minn. of the member Xcel Energy is also a founding Network, Planning of Workforce a group Utility the country around from utility representatives who ar SOCIAL RESPONSIBILITY XCEL ENERGY TRIPLE BOTTOM LINE REPORT 2005 31 __ ,776 $4,318 ,200* $4,136 ,138 “Best in Show, Large $2,818 y as a W ,388 $3,495 03 02 win Cities United 20 20 *This amount reflects the total committed (actual pay out in 2005 was $4,118,342). “CURRENT OF CARING” — XCEL ENERGY’S — XCEL ENERGY’S OF CARING” “CURRENT CAMPAIGN 2005 UNITED WAY $2,159,388 pledged retirees and Our employees the nation chapters across Way to 160 local United Way Xcel Energy of the 2005 as a result United Campaign.This contribution in will be paid out 2006.With year fiscal match the dollar-for-dollar Xcel Energyfrom Foundation, this amounts to a $4,318,776 – a five of investment community cam- Way our 2004 United over increase percent paign. years,past three the Over gift the average of $317 to $370 and the number from has grown giving at leadershipemployees of $1,000 levels 71 percent. has increased or more Xcel Energy’s by honored Greater recently 2005 campaign was T highest award. organization’s Company,”the 04 20 05 20 s to address . Contributing to the ay unity leader , Xcel Energy is not at liberty ed from service.ed from ofit and civic contributions,ofit from computers or motor vehicles that computers or motor vehicles etir y with comm TE CONTRIBUTIONS $2,451,585 $2,737,967 al gas. Our in-kind donations, vary which losel egulated utility k c e been r v or 2004: IN-KIND DONATIONS As a r 2005:2004: $52,402 $283,388 Xcel Energy employees and retirees have a long tradition annual United Way of generously supporting the company’s campaign. In 2005, we held pancake breakfasts to encourage our employees to support United W success of the program is the ongoing support of our senior management team. Supporting Education Education Supporting minds, young Education inspires new opens promising to more doors and lights the way futures. supports Xcel Energy math, Foundation for education programs science and economic students in kindergarten college.We through in both programs committed to funding are our urban and rural throughout communities service territory. 2005:2004: $1,336,353 $1,702,600 CORPORA AND COMMUNITY GRANTS In 2005, $2,451,585 gave Xcel Energy Foundation in local nonpr supportlocal event to chambers of commerce. by awarded Discretionary were grants community liaisons, state committees or community which w local needs. 2005: to donate its two primaryto donate its two products, electricity or natur to year, year from office as such consist of items equipment, ha xpertise and e xperiences that ed e ience, xper tnerships in that result and partnerships. ether in shar eness, om the e ar w $167,555 a unities to participate in the arts. it fr e to build par iv unities tog onmental Partnerships onmental improvement. are Grants vir tistic expression thrives on diversity,tistic expression bringing Focus Area formerly known as Building Stronger Communities) Focus Area formerly foster understanding.foster Xcel Energy Foundation supports accessibility to artistic efforts to increase all members activities that enable and cultural of our comm 2005:2004: $870,315 $1,017,975 Xcel Energy Foundation supportsXcel Energy nonprofit Foundation on the connection between that focus projects support projects and energy.We environment that benef associated with our operations other resources and str en of environmental in the areas provided education, 2005:2004: $422,500 Promoting Arts and Culture Ar comm Community Development Development Community ( in improving involved actively When people are neighborhoods, in their the quality of life they vibrant, more help create communities. livable to assist communi- works Xcel Energy Foundation a healthier,ties in developing society that stronger safe, to provide is able housing and affordable all citizens.Thiseconomic opportunities for low-to- that address programs targets area focus populations and historically moderate-income groups. or under-represented disadvantaged 2005:2004: $1,356,660 $2,066,550 Envir Saundra Holmes, customer contact specialist SOCIAL RESPONSIBILITY XCEL ENERGY TRIPLE BOTTOM LINE REPORT 2005 33 __ tner middle schools. Xcel Energy employee Lorraine Schire delivers nutritious meals to men and women in our community who are in hundreds of Xcel Energy employees need. Each year, volunteer their time to help make our communities stronger through their support of nonprofit organizations and charitable causes. Volunteer Energy Volunteer Xcel Energy six or more When teams of participateemployees volunteer in a community time, on their own program the associated a to receive organization is eligible nonprofit in Xcel Energyfrom $500 donation Foundation gifts Doing or Dollarsaddition to matching for funds. In 2005, contributed the foundation of 39 designated nonprofits $19,500 to the teams. volunteer employee Further, than more than 2,000 employees more 70 teams involving time off to build their jobs from took approved Humanity, Habitathouses through for organize and winter coat drives and mentor students food at one of our par 2005:2004: $19,500 $27,500 air in gy yees and yees unity than to y emplo Our employee g e. y held a job f g h hour an Xcel Ener Xcel Ener Xcel Ener or eac unity impact. gy Foundation gives qualifying nonprofit gives gy Foundation unities better places to liv w our commitment to comm ofit organizations causes. and charitable ofit oundation gave $75,880 to the nonprofits oundation gave olvement programs are strategically integrated strategically are programs olvement ed for temporaryed for positions in admin- six-month ganizations $5 f v retirees gave generously in 2005 to a wide-range of in 2005 to a wide-range generously gave retirees nonpr Denver, Colo., people displaced by Hurricane for Katrina.As of the job fair, a result 36 people were hir istrative, data entry and skilled labor areas. our time and skills to make use our collective comm in to maximize giving programs with our corporate our comm Dollars for Doing Xcel Ener or volunteers there,employee up to $500 per person annually. In 2005, volunteers worked employee 15,176 hours, 2004. over increase an 18 percent The f supported in this manner. by employees 2005:2004: $75,880 $64,519 Mutual Aid AgreementMutual As part with utilities around our agreement of the country, line crews Xcel Energy dispatched hurricanes and Florida following Rita Texas to Wilma. the clock around and worked Crews and serviceuntil the electrical repaired grid was to the afflicted restored was areas. all, In 237 for deployed Xcel Energy were employees of service than 3,800 employee-days more in these efforts. Job Fair In September 2005, EMPLOYEE INVOLVEMENT At Xcel Energy, is no better way there believe we to sho ea. ican Amer ected ar f st and most people es us a special iv or national non-governmen- yee contributionsyee and the This g ibution of $327,190. ds. ift of $100,000 to the an inter , long work our employees lizzar vide funding to 10 major disaster en contr o iv eather is at its w ency assessment team to the af ees gave $163,595 out of their own $163,595 out of their own ees gave g ee-dr y ee Committee, etir ets to pr k nados and b e seeking shelter oundation made a g tal organization with extensive experience in experience tal organization with extensive disaster relief, to fund the immediate deployment of an emer Red Cross.We also gave $11,000 to the American to the $11,000 also gave Red Cross.We Refug In addition to our emplo match,associated corporate after Hurricane days two Katrina the Gulf Coast, devastated Xcel Energy F 2005: $438,190 NATURAL DISASTER RESPONSE NATURAL (New Funding Category for 2005) When the w MATCHING GIFTS PROGRAMS GIFTS MATCHING and employee matches Xcel Energy Foundation 501(c)3 nonprofit qualified donations to retiree organizations, dollar-for-dollar, up to $500 per per- son.The and employee also matches foundation gifts institutions of higher edu- to qualified retiree cation, dollar-for-dollar, up to $2,000. In 2005, contributedemployees $389,882 to nonprofit organizations,2004. over increase a 56 percent contributionsEmployee education to higher totaled $152,238 in 2005.With the foundation match, to $1,084,240. this amounted 2005:2004: $1,084,240 $892,715 ar hours caused by repairing high winds, damage the tor wrath, by those affected nature’s for empathy as evidenced by our employees’ to the response disastersnatural of 2005. Xcel Energy employees and r poc organizations.relief Xcel Energy Foundation a total for this sum dollar-for-dollar matched emplo SOCIAL RESPONSIBILITY XCEL ENERGY TRIPLE BOTTOM LINE REPORT 2005 35 __ es to lic ocates. esentativ eting and pub k w-income adv Account Repr am (LIHEAP). r og sonal , receives a box of supplies from Carol Shearon, er ting efforts on the federal level to level ting efforts on the federal viding in-kind mar ganizations and lo o the Minnesota Salvation Army HeatShare, the Minnesota Salvation Energy Army, the Salvation Colorado,Outreach Texas the Fund,Warm others and Wisconsin located Keep in our 10-state service territory. energy and in local communities assistance with arrangements payment establishing those in need. Adding P enable us to proactively reach out to customers reach us to proactively enable their bills. who need assistance paying Encouraging our customers to contribute Energy fuel funds via their Xcel to statewide their donations. bills and then matching Pr Energy the Low-income funds for increase Assistance Pr relations supportrelations to energy assistance or Suppor We support energy in many assistance We including: ways • as Contributing such agencies to state and local • to available customers Linking our directly • • • Contributing to energy weatherization programs. • • -dollar matching gift, -for s dollar s HeatShare program. Through the purchase $15,701,731 ENERGY ASSISTANCE ASSISTANCE ENERGY Xcel Energy Puck Wall $15,200 has been raised as of March 2006. programs and donations of school supplies, books Xcel Energy employees and retirees support local schools through mentoring Denver and holiday food baskets. Dorothy Leonard, teacher at Annunciation School in corporate citizenship representative. Xcel Energy is committed to providing energyXcel Energy is committed to providing in need.Withassistance to those energy prices nation and the across significantly increasing our servicethroughout territories in 2005, we effort help those customers to a proactive launched bills. hand with winter heating in need of a helping In total, $5 million to donated an additional we our organizations assistance across low-income service territory customers.This to help residential than $15 mil- contribution the more on top of was lion that Xcel Energy our customers and normally everydonate to energy year. programs assistance 2005: $20,604,728 2004: a unique Xcel Energy and the Minnesota Wild launched hockey season for fundraising effort during the 2005-2006 The Salvation Army’ at Xcel Energy Center of a personalized hockey puck, on display helped raise money in St. Paul, Minn., hockey fans and players in Minnesota. for low-income energy assistance programs With Xcel Energy Foundation’ Classroom . ety ogram al gas saf ate schools. iv icity and natur y Foundation contributed $36,003 y Foundation g lic and pr gy Safety Calendar Pr hing techniques with each other. with each hing techniques In 2005, or use electrical switches such as garage door or use electrical telephone, including cell phones, openers; or use a to spark an explosion. which could be enough number or Xcel Energy or your local emergency for help. authority tells you it is safe to return. bout electr Natural Gas Safety — Safety Gas Natural 1-800-895-2999 • and leave immediately. Alert others • lights on or off; not light a match; never turn Do • call 911 distance away and only then Get a safe • home until someone in Stay away from your If you suspect a gas leak: If you suspect in Classroom Connection grants.in Classroom (Available to teachers in Colorado,Texas, Mexico, New Oklahoma and Kansas.) materials are available to educatorsmaterials available and librarians are at pub CLASSROOM CONNECTION This online, and grant network teacher-led teachers the opportunity gives to program curriculum creative and exemplaryshare teac Xcel Ener Ener For 28 years, Xcel Energy has partnered with elementary schools to create an energy safety calendar to offer children in our service territory an opportunity to learn about electricity and natural gas The program incorporates safety. classroom discussion about energy safety with artwork created by the children to illustrate the safety messages they learn. The drawings are entered in the annual Energy Safety Calendar Art Contest and the winners are published in the calendar. SAFETY WORLD at available Games and activities are 3 to 6 students in grades to teach xcelenergy.com a hools; ate sc iv bout energy – how lic and pr onment. vir rams, and institutions schools en and adults a we are committed to supporting are we , og y g y and the en hildr g

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Energy Assistance Safety W (Enter these key words in the search engine) • Dig Call Before You • Carbon Monoxide Awareness • Downed Power Lines • • Energy Classroom • Learn more at xcelenergy.com Electric Safety/Report Electric

1-800-895-1999 Downed Power Lines — Lines Power Downed Always assume a downed power line is energized Always assume a live line Touching and therefore dangerous. will enable electricity or anything it is touching your body as it tries to reach to travel through can result in serious injury the ground. This and sometimes death. bout ener EDUCATION & ENERGY SAFETY EDUCATION the en and employee and retiree volunteerism.We also volunteerism.We and retiree and employee and educational programs energyprovide safety that teac it is produced, to use electricity how and natural gas saf ENERGY CLASSROOM at materials available Resource and activities are 3 to 6 students in grades to teach xcelenergy.com a At Xcel Ener educational pr our serviceacross territory Xcel Energy through grants;Foundation outreach; community safety demonstr SOCIAL RESPONSIBILITY XCEL ENERGY TRIPLE BOTTOM LINE REPORT 2005 37 __ onmental benefits vir vide en o as donated to the Renewable and pr $92,000 w gy Trust,gy in 2004. with $89,000 compared RENEWABLE ENERGY TRUST ENERGY RENEWABLE in 1995,Established Trust Energy Renewable the fund to develop tax-deductible (RET) is a special as -- such energy Colorado in sources renewable of local non-profit the benefit – for wind and solar organizations, communities. and Colorado schools Colorado Every dollar donated by Xcel Energy’s and install renew- customers is used to purchase energyable systems in the state. One project the for the Boulder Shelter funded in 2005 was Homeless solar project. used to RET funds were photovoltaic and install an 11-kilowatt purchase (solar electric) the homeless shelter in system at Boulder, Colo.The clean, system will provide solar energy;renewable utility costs annual help reduce at the shelter; the shelter and the surrounding community. for In 2005, Ener AID: ABLE ENERGY PRODUCTION INCENTIVE ABLE ENERGY PRODUCTION INCENTIVE One example of a project awarded RDF funding awarded of a project One example WindLogics, the was Inc., to define, initiative design, a complete wind power build and demonstrate use by Xcel Energy system system for forecasting operators. is to of the project A key objective is information wind forecast optimize the way environment, room into the control integrated on impact of the wind forecast the and to evaluate operations.This room control awarded was project period. a two-year to be paid over a $997,000 grant DEVELOPMENT FUND – ANNUAL RENEWABLE GRANTS P 2005:2004: $3.9 million $3.4 million RENEW 2005:2004: $4.3 million $1.5 million ic, biomass, wind, y reach $10.9 y reach oelectr ydr e took action that increased y Production Incentives (REPI) Incentives y Production airie Island after Jan. 1, 1999.The h as h , the from representatives two g islatur y g ojects and disburses the dollars. ligation to potentiall ies suc le Ener the Leg the RDF has committed to fund $52 million the RDF has committed to fund b a w d of directors that includes two representatives d of directors two that includes hydroelectric and an innovative energy project. and an innovative hydroelectric hnolog om Xcel Ener o date, ENVIRONMENTAL STEWARDSHIP STEWARDSHIP ENVIRONMENTAL environmental community and one representative community environmental the Prairiefrom Island Indian Community.The implements a funding cycle,RDF board evaluates and selects pr Utilities Commission must The Minnesota Public all selections.approve Xcel Energy ongoing provides projects. the RDF grant for oversight administrative RENEWABLE DEVELOPMENT FUND DEVELOPMENT RENEWABLE the Prairieowns Island Nuclear NSP-Minnesota Wing, Red Plant in Generating Minnesota.The uses dryfacility casks to temporarily store spent operations. plant from fuel resulting nuclear In 1994, passed a law Legislature the Minnesota State requiring Energy Xcel a Renewable to establish Fund (RDF).TheDevelopment as formed RDF was energy support renewable a means to financially utilizing and development and research production tec wind, including 46 projects for solar, biomass, biofu- els, an independent through grants The RDF makes boar fr million annually at its peak. million annually T for eligible wind and on-farm biogas facilities. eligible for In 2005, solar and biofuels.The established sum was annual dry each containing spent at $500,000 for cask fuel located at Pr $16 million this amount to increased Legislature 2003 and directed beginning in June annually to fund $6 million of the total to be allocated Rene our REPI ob oximately 122 wind facilities oduction Incentive. are currently being funded currently are the Renewable Energy through Pr Appr SOCIAL RESPONSIBILITY XCEL ENERGY TRIPLE BOTTOM LINE REPORT 2005 39 __ Conservation 163%* Conservation 30% ools Energy Saving T Save Energy and Money Learn more at xcelenergy.com (Enter these key words in the search engine) • • Natural Gas Savings Electricity 11,000 Natural Gas 35,000 homes 8,300 27% 62% Electricity Savings 27,710 homes otal Spent (homes/year) (homes/year) Goal Exceeded Goal Exceeded T $44 million $47.2 million ear Y 2004 2005 Monique Lovato, community service manager *Experiencing significant increases in natural gas prices, residential and commercial customers took advantage of our many natural gas conservation program rebates in 2005. residential and commercial customers took advantage of our many natural gas conservation program *Experiencing significant increases in natural gas prices, ticipated equired byequired Minnesota state law, Xcel Energy As r electricity from of revenues spends 2 percent gas on natural from of revenues and 0.5 percent customers. for energy efficiency programs More par than 645,000 homes and businesses in 2005. and rebates in our Minnesota programs This sum represents the last year of our 1999 of our the last year represents This sum Agreement, Plan Stipulation Least Cost Colorado Xcel Energy peak to reduce called for which 2000 between electricity by 124-megawatts than $75 million. of no more and 2005 at a cost By the end of 2005, a 126.84- had achieved we million. at a cost of $70.8 reduction megawatt by nearly goal our demand savings exceeded We less than and spent $4 million megawatts three authorized to spend. were we Beginning in 2006, offering energy are increased conservationwe our customers.opportunities for Minnesota Conservation Improvement Program ved a savings of 39 a savings ved hie ojects ac The pr s. megawatts of peak production. megawatts In Colorado, Xcel Energy than $25.6 spent more million in 2005 on energy conservation projects and business electric gas residential and natural for customer Colorado Demand-Side Management ENERGY CONSERVATION CONSERVATION ENERGY In 2005, $85 million Xcel Energy spent nearly on energy residential conservationfor projects and business customers service our throughout territory. Overall, our energy conservation projects enough energy to satisfy the electrici-helped save gas homes and the natural ty needs of 31,500 one year. homes for needs of 11,400 Since 1992, enough electricity to our customers saved have building eight 250-megawatt us to avoid enable plants. power to make electricity. These resources create no emissions, but we can’t control how much electricity they produce or when they produce it; and sometimes, renewable resources cost a little more. Our challenge is to use a mix of fuels to balance cost to customers, reliability and environmental impact.

This Environmental Leadership section talks about the environmental impact and issues we face as

an energy provider.We’ll discuss our actions and E N V I

initiatives to address the challenges before us. R O N

We’ll share our environmental goals and perform- M E N

ance.And we’ll talk about areas where we strive T A L

L

to improve. E A D E R S

Environmental leadership is as important to us H I P as providing reliable and affordable energy to our customers. Leadership requires action, discipline, 41 innovation, cooperation, courage and change.We __ X

made great strides as a company in 2005, although C E L

E

we realize much work remains ahead of us. N E R G Y

T

ENVIRONMENTAL LEADERSHIP R I P L E

B O T T O M

L I N E

WE PROVIDE ELECTRICITY AND NATURAL GAS to light and heat our customers’ R E P O

homes, to help their businesses run and to build stronger communities. R T

2 0 0 Energy has improved the way we all live. It’s become so available and 5 reliable, we can take it for granted – but we shouldn’t.We know that producing and delivering energy products has an environmental impact. And we’re working harder -- in more ways than ever before -- to minimize that impact. One lesson is clear for all of us: energy is a precious commodity that should be used wisely.

We use many types of natural resources to make electricity. Each serves an important purpose and some resources, such as coal and natural gas, are not renewable.They create emissions and by-products, but they can generate electricity at a reasonable cost exactly when our customers need it.We’re using more renewable resources, such as wind and sun, 2 Mike Bebeau, community service manager ENVIRONMENTAL LEADERSHIP XCEL ENERGY TRIPLE BOTTOM LINE REPORT 2005 43 __ s. der xible, le ough f e more difficulte more to elopment.We also elopment.We v ed thr v hie om within their bor h and de c . y esear egulations that ar oaches based upon scientific data. based upon scientific oaches ateg emissions, energy increasing conserva- 2 ation r eness achieved under a regulatoryeness achieved scenario. ement can be ac le appr v esult in r hieve real reductions without harmful reductions real hieve eenhouse gases fr o r ectiv f ack, less ultimately and to manage costly more tion opportunities for our customers,tion opportunities for exploring that could reduce technologies generating new impacts,environmental and participating in carbon sequestr our service territory, our customers’ energy use to grow,continues job is to meet their and our to reduce them ways provide need and increased their demand. is needed to approach a comprehensive believe We greatly includes today.That change climate address lower that produce resources our use of increasing or no CO believe it makes sense to address this issue on a this issue sense to address it makes believe national basis, all industry including contributors, to ac economic impacts on our society. beginning or the process states are many Today, the release pursuing to reduce initiatives actively of g We believe this patchwork, believe We state-by-state approach will r tr comprehensive successful to implement than a national str in the U.S. introduced past proposals from clear It’s the details of implementation can that Congress impact on the cost that consumers a big have and on the environmental pay ultimately would ef change climate to address policies proposed Many economy. and harmcould be costly our nation’s Getting the rules right important is critically to our environment, and to all energy con- our economy at the state and federal engaged will stay sumers.We as those rules discussed and debated,level are and environmental that real our view to share continue impr sensib e 2 enerating oduct of g . Meanwhile, across ic community generally ic community 2 y-pr ), identified has been which is a b 2 management strategy for our strategy for management 2 eenhouse gases in the atmospher r gy provider, a this issue presents oluntarily reduced emissions from emissions from reduced oluntarily stand the scientif e v TE CHANGE AND eenhouse gas, v r y to reduce our impact on the environment. y to reduce rees that the earth’s climate is warming. climate that the earth’s rees We e under e ha g eceived as much attention, as much eceived discussion and debate actors connected. are ISSUE AND POLICY OVERVIEW ISSUE AND also understand of CO the concentration that a as a g fuels. electricity fossil from W Few environmental topics of our time have environmental Few r change.Asas climate an energy and producer supplier, importance to us. this issue is of great Carbon dioxide (CO and other g a established also have plants.We our power voluntary CO portfolio. resource entire As an ener our cannot operate fundamental challenge.We utility systems today, and meeting the reliability of our customers,cost requirements with solely that emit no CO resources Xcel Energy and state monitorsmany and manages potential analyze policy issues.We public federal impact on our company, and their regulations public customers advocate and shareholders.We cost-effective, us provide policies that help reliable energy. responsible and environmentally We with decision-makers and directly communicate our with other organizations to ensure active are is heard.voice face of the key issues we Many discussed in this report. are today CLIMA CARBON RISK MANAGEMENT is increasing. these two scientists believe Many f as a business it is our responsibility believe We to tr W Ash landfill at Allen S. King Plant, Minnesota ENVIRONMENTAL LEADERSHIP XCEL ENERGY TRIPLE BOTTOM LINE REPORT 2005 45 __ Challenge Program – charter member Challenge Program – charter member since 1993. gas reporting program since 1993. Electric In 2002, pledged with fellow Edison sector Institute members and other power greenhouse organizations to help reduce U.S. below gas emissions intensity to 3-5 percent 2000-2002 levels by 2014. Other Climate Change Actions • (DOE) Climate Department of Energy’s • voluntary greenhouse Participant in DOE’s • s on ion t y 2007 ll b s) l mi 12 Goa s s on MWh on ton i bs/ llion t ll l ons of ton mi mi 8 2

5

illi

8. 152 5 0 0 2 5 0 0 5 0 0 2 2 84. s) tion (m s s Wh) on MWh s of ton bs/ ion ton llion t l ill ion mi m lbs/M

ons Reduc

.9

4.9 3 1560 4 0 0 2 4 0 0 2 4 0 0 si 2 8 (mill s tion ( s Emi sion 2 s s s on on t CO MWh 0 on t i ity Reduc ll bs/ l ve Emi 2 mi

ens

lati

1646 l CO 3 0 0 2 3 0 0 2 3 0 0 Int 2 88.8

2 umu CO C Tota 2 2 2 2 e CO y 2009. ulativ – Reduce CO ears.) – Reduce CO – We are pursuing are We – – We are participating are We – er six y both above and both above v oluntary carbon 2 ed v om 2003 baseline b eduction and cum y 7 percent from 2003 baseline from y 7 percent o-tier mance in both 2005 and 2004 or emissions reduction intensity reduction e a tw 2 2 v intensity r Hydro Windsource 2 CO intensity b by 2012. (1646 pounds per megawatt-hour (lbs/MWh) to 1531 lbs/MWh.) CO emissions fr Clean Coal Technology Clean Coal (sequestration). storage eventual for capture Carbon Sequestration below ground. below in several carbon sequestration research research carbon sequestration in several in the U.S.projects to learn about ways CO could store we an innovative clean-coal technology, clean-coal an innovative called (IGCC), cycle combined gasification integrated fuel efficiency,that could improve reduce emissions, CO for the potential and offer (This would result in a cumulative reduction reduction in a cumulative result (This would of 12 million tons o Learn more at xcelenergy.com (Enter these key words in the search engine) • • • Carbon Management Strategy e ha emissions reduction goals. emissions reduction • • W • Our perf both our to achieve on target are we shows CO management strategy: management • ays: – y w – We – We are and other er plants, y in man 2 w educe their energy ateg o Re-licensing s to r emissions from our emissions from – We are converting two converting are We – 2 – We are increasing opportu- increasing are We – We are working to improve working are We – iciency at our po f al gas to reduce CO al gas to reduce or other air emissions. 2 es in the nation. ough efficiency and conservation. or our customer ficiency ydro facilities,ydro do not emit which gy across our service territory.We buy gy our service across territory.We Minnesota power plants from coal to plants from Minnesota power natur air emissions. Fuel Switching Ef Nuclear and Hydr fuel ef We are re-licensing our nuclear and our nuclear re-licensing are We h CO thereby reducing fuel use and emissions. thereby reducing e implementing our str — — — nities f Power Generation Initiatives: Wise EnergyWise Use Renewable Energy Leadership significantly increasing our use of renewable increasing significantly ener in other utility wind energymore than any the country; and in Colorado, launched have we solar power what will be one of the largest initiativ use thr e ar W entire resource portfolio – not just the generating – not just portfolio resource entire U.S. seven one of only are own.We we resources set voluntary gas utilities that have greenhouse targets,reduction still including fewer with do. as we in their goals power purchased • Voluntary Carbon Management Strategy Management Carbon Voluntary regulation, of potential Regardless is our company voluntary comprehensive carbon implementing a in 2004. established we strategy management it is prudent believe voluntary take to actions We the CO to manage today • • ENVIRONMENTAL LEADERSHIP XCEL ENERGY TRIPLE BOTTOM LINE REPORT 2005 47 __ x est to The bill and NO 2 ces. . Lee has been esour eas of inter y r g y ar esses man h addr e with other ener eholders. Of note, the bill authorized a estern coal at high altitude. whic ble for a clean-coal technology test project technology a clean-coal for ble aila v Employee Profile Lee Eberley In early 2006, Lee Eberley, Xcel Energy’s manager Xcel Energy’s In early 2006, Lee Eberley, for an Electric Power was selected of air quality, Transfer Research Institute (EPRI) Technology for full-scale testing of mercury controls. Award This award recognizes outstanding accomplishments and contributions in technology transfer research efforts instrumental in leading our company’s to more accurately measure mercury emissions and help test mercury reduction methods. if those units are deemed to impact visibility in deemed if those units are lands.nearby federal protected by affected States BART,although from be exempt they CAIR may haze require- with additional need to comply may ments in the future. Colorado,Texas and Minnesota plans, implementation their BART developing are in these discussions. active are and we ENERGY POLICY ACT OF 2005 The U.S. sweeping, passed a Congress lengthy energy in bill comprehensive and much-needed 2005, our company.We have studied the bill in detail to studied the bill in detail have our company.We identify opportunities our customers benefit that and shar 2007 of the federal through extension two-year energy, renewable for tax credit production which resource valuable the cost of this will help keep competitiv also highlighted financial supportalso highlighted financial that could be a using w sions control equipment to reduce SO reduce equipment to sions control h whic isibility Rule, V Air educe regional haze.educe regional require It would ired generating units that went into service units that went generating ired T) to r ule called the Clean AR We are proud of our leadership proud are testing in We mercury across methods monitoring and removal our system.Through process, this noted have we variability mercury the measured in both great of different and the effectiveness content of coal mercury methods. removal Xcel Energy is commit- and communities with our states ted to working mercuryto reduce emissions. Establishing the regulatory that account for approaches of mercury effectiveness monitoringdeveloping – and that encourage technology and removal flexibility critical – are to achieving and innovation at a reasonable improvement environmental real our customers. cost for REGIONAL HAZE Regional haze concerns visibility impacts to lands, Class I federal protected as wilderness such or national parks.areas In 2005, issued the EPA a r addresses Best Available Retrofit Technology Retrofit Available Best addresses (B coal-f emis- 1962 and 1977 to install additional between - y It y 2018. ning state imple Some states ma elops. v ule. y as it de or the r hnolog ule, and rates removal greater including al tec v al r eholder discussions concer k-by-stack emission controls.k-by-stack Compliance with wer plants for the first time. plants for wer designed to It was emo eder We believe our facilities in west Texas should be should Texas in west our facilities believe We plants – not western other like power regulated East – and be subject to rules plants in the like preserve western air quality issues.To that address our legal rights, filed a lawsuit joined have we reconsider that the EPA 2005 to request in July CAIR. from Texas issue Until the west excluding is resolved, with preparing to comply are we states. and our other affected Texas CAIR in west emission purchasing involve Compliance would allowances, emissions reduction installing equipment or both. CAMR will regulate mercuryCAMR will regulate emissions from po 70 a to achieve system use a national cap-and-trade in mercury reduction percent emissions. However, imple- their own developing individual states are mentation plans f the than stringent more implement plans that are f CLEAN AIR MERCURY RULE (CAMR) CLEAN AIR MERCURY this rule phases, will occur in two with a national cap b 38-ton cap in 2010 and 15-ton all U.S.affects units generating coal- or oil-fired than 25 megawatts. greater potential compliance strategies evaluating are We in involved actively are and our company for stak affected operate we mentation plans where facilities.generating In Minnesota, legislation mercury to regulate has been introduced to be required what would than degree a greater with interested working are CAMR.We through based on regulation parties effective to develop the actual capability of mercury monitoring and r stac The ) 2 the islation such islation such In 2005, n cities by reducing ) emissions from power ) emissions from er time. ester v X w TE RULE (CAIR) A n half of the United States. egulate sulfur dioxide (SO ulti-emission leg m emissions by 70 percent. le, ther r n and mid X able impact on the air quality of far-away able xib le xity and scope o and NO as designed to address air quality issues in as designed to address luding Minnesota,Wisconsin and Texas, where luding Minnesota,Wisconsin and 2 egulations that impact our business – the Clean egulations that impact our business ENVIRONMENTAL REGULATORY ENVIRONMENTAL Computer modeling shows that emissions from Computer modeling shows have Panhandle Texas in the facilities generating no measur Chicago,cities like St. Louis and Indianapolis – designed to address. was CAIR which In fact, plants in Oklahoma and Kansas that are power in the rule. not included to these cities are closer CLEAN AIR INTERST CAIR will fur Environmental regulations tend to increase in in tend to increase regulations Environmental comple DEVELOPMENTS and state Xcel Energy complies with all federal regulations.Theseenvironmental regulations aspects of our operations, many govern including generation,power and distribution. transmission up to date monitoring close They to stay require and our input as we with regulatory changes flexible, for advocate environmental cost-effective improvement. Air Interstate Rule (CAIR) and the Clean Air Air Interstate and the Clean Rule (CAIR) Mercury Rule (CAMR).These issued rules were attempts unsuccessful Congressional following to pass f Environmental Protection Agency (EPA) issued (EPA) Agency Protection Environmental environmental and far-reaching significant two r Act. as the Clear Skies rule the District affects of Columbia and 28 states inc facilities. Xcel Energy electric operates generating It w major easter and nitrogen oxide (NO and nitrogen plants in the easter SO ENVIRONMENTAL LEADERSHIP XCEL ENERGY TRIPLE BOTTOM LINE REPORT 2005 49 __ n west.We also are ests in the souther or e reforestation initiative called initiative e reforestation and upper Mid ativ .S. n U ester captured from the atmosphere by the atmosphere replanting from captured t of a cooper 2 werTree Carbon Company.This Carbon stores project werTree o HYDROGEN UTILITY GROUP HYDROGEN of member and chair Xcel Energy is a founding Utility Group,the Hydrogen a consortium of needed infrastructure the utilities investigating economy. a hydrogen-based to develop SOFTWARE SOLAR SITING with NREL to develop also working are We help optimally would that computer software (PV) equipment on our site photovoltaic customers’ premises. RESEARCH CARBON SEQUESTRATION carbon sequestration in three involved are We that projects initiatives.Two DOE research are options that may carbon storage exploring are to us in our servicebe available territory of the southw par depleted bottomland f P CO Mississippi River Valley. Mississippi River ocess. oject. We will assess the will assess We ydrogen could then be ydrogen sue this pr sequestration into the project – project into the sequestration That h 2 en. tation fuel. og s to pur ydr anspor gy Laboratory (NREL) in Golden, Colo., e h easibility and cost of this pr used for making electricity fuel cell or using a used for as a tr f with it.Those coal using regional include issues heat- content and lower moisture that has a higher used in IGCC plants, currently than fuels ing value has on higher altitude the region’s the impact that efficiencyoperating and cost, to and the desire CO incorporate facility. IGCC to be done at any has yet which supported in Colorado legislation introduced We an to help develop funding in 2006 to provide proposal,IGCC project meeting with are and we partners,potential project vendors technology and other WIND-TO-HYDROGEN In partnership with the National Renewable Ener to project on a demonstration working are we off-peak,use wind energy generated is which when our customers’ energy use is lower, to mak ed ir e development aditional coal-f n coal into a gas that egional issues associated y with tr n r but it needs mor ocess to tur le toda . of this The potential benefits ester icity and potentially sequester it at a lower and potentially omise, 2 y and around the world.y and around IGCC technolo- TED GASIFICATION TED GASIFICATION hemical pr e electr y two IGCC facilities are currently operating operating currently are facilities IGCC y two hnology are reduced emissions and the ability emissions and to hnology reduced are y holds pr NEW TECHNOLOGY INITIATIVES NEW TECHNOLOGY is then burned combustion turbine in a modified to mak tec CO remove cost than is possib technology. generation Onl in the United States. Others in development in are this countr g viable.The for to become commercially challenges in the pronounced more even are this technology western U.S. and lower with its higher elevation quality coal. located near sea level are IGCC facilities Operating available those readily coals from and use different in the western with United States.We working are of a potential project EPRI to assess the feasibility and the unique w INTEGRA COMBINED CYCLE (IGCC) Xcel Energy in pursuing is interested a clean-coal in Colorado. project demonstration IGCC technology uses a c Leadership requires a commitment to find better Leadership a commitment to find requires of doing business.ways Xcel Energy is pursuing primarily technologies aimed at innovative several impact of electricity the environmental reducing project valued with working generation.We are partners, research foremost the nation’s including laboratories, organizations and universities well as as members and community of the environmental energy industry, to pursue that technologies new run we our how of improving hold the promise business, impact, environmental reducing and to customers,enhancing our value shareholders and our communities. Owen Kosloski, chemist ENVIRONMENTAL LEADERSHIP XCEL ENERGY TRIPLE BOTTOM LINE REPORT 2005 51 __ ota s nne i ills while MW M 545 te a St MW

PSCo 7 6) 24 e Wind by /0 c i 31 3/ MW erv f SPS 5 28 n-s as o I ( ould otherwise end up in landf meeting stringent environmental requirements. environmental meeting stringent HYDRO AND BIOMASS HYDRO to generate Xcel Energy and waste also uses water electricity.Our located are resources hydroelectric primarily in the upper Midwest, have although we in Colorado.some supply Opportunities to increase operate minimal.We are generation hydroelectric is not available in some arid water where regions this purpose.Wherefor is abundant, water new is difficult to site. generation hydroelectric waste wood from range Our biomass resources fuel.Allto turkey litter to refuse-derived can electricity earth’s without depleting the generate waste-to-energy four operate resources.We finite Wisconsin.They in Minnesota and facilities that electricityproduce waste and reduce w MW 1077 MW 884 gy additions, It is our MW 829 acility will start MW 478 ed in 2004. 469 v o icant wind ener art MW Year growth ch s appr xpect that f al ric e e oter MW Wind by histo 348 2000 2001 2002 2003 2004 2005 W ado. ado v hope that increased market demand will reduce market hope that increased so it can be time the cost of solar energy over used. widely more SOLAR 2006,In early what will be one launched we solar energy programs, largest of the country’s offersSolar*Rewards.This our Colorado program customers the opportunity add photovoltaic to a their homes or businesses at (PV) systems to the that help lower rebates cost through reduced of these systems. and installation cost purchase buy the Renewable us to also enables The program – benefits Energy – or the environmental Credits as the energyfrom as well produce the systems energy our customers not need. excess may any station PV system to add a central also plan We energyto our Colorado supply, be would which in south central Valley located in the San Luis Color by the end of 2007.Theseoperating actions, along with our signif will help us meet a renewable energy standard will help us meet a renewable Color atts - w icantly or its y f g ce lets our cus y 1,100 mega indsour e wind ener W . e had nearl ® w ce or other generating resources to resources or other generating y buys mor e announced our intent to signif g w indsour ibed to Windsource. ibed to W igure to grow to 2,500 megawatts by the 2,500 megawatts to to grow igure reen-pricing program, years running, several for xpand our wind energy supply in Colorado. xpand our wind energy supply We RENEWABLE ENERGY LEADERSHIP ENERGY RENEWABLE WIND Xcel Ener Xcel Energy is a renewable energy leader,Xcel Energy is a renewable and of it. proud we’re with in regions operate We energy resources,abundant renewable and we’re location to beneficial of our taking full advantage the utility industry led have harness them.We in and costs of impacts the operational studying energy of renewable amounts adding increasing to our major systems.Theseresources studies planning, use in resource data we valuable provide renew- of maximizing cost-effective with the goal also are portfolio.We energyable in our overall these costs, to reduce ways investigating are which energy due to the intermittent of renewable nature and the need f energy production when renewable be available fluctuates during the day. customers the United States. utility in than any In 2005, tomers in Colorado, and Minnesota Mexico New wind power. their supportshow for At the end of 2005, than 46,000 customers more were subscr e states.At also adding wind capacity in other are the end of 2005, expect system.We of wind capacity on our entire that f largest the country’s also operate end of 2007.We g called St. Croix Falls, Wisconsin Falls, St. Croix Lake Benton Wind Farm,Lake Benton Wind Minnesota Xcel Energy uses wind, sun, water and Xcel Energy uses wind, sun, water These biomass to produce electricity. benefits. resources carry great environmental create Many renewable energy resources water or land, little or no emissions to the air, is be used up. Renewable energy and can’t energy mix. playing an increasing role in our ENVIRONMENTAL LEADERSHIP XCEL ENERGY TRIPLE BOTTOM LINE REPORT 2005 53 __ iled with the f ecommends the best ce Plan, icantly increase energy increase conserva-icantly y sound energy mix. ed units at our large 2,350-MW ed units at our large ce options and r er watts in the region during the next 15 during in the region watts next the w esour onmentall essing our need for additional base-load power essing our need for ious r vir e seek to signif ar Unfortunately, groups environmental small two not parties to the settlement agreement that were District in Pueblo Court against a lawsuit filed have the State of Colorado, air the project’s challenging intervened in the litiga- have quality permits.We during favorably will be resolved tion and hope it 2006. signifi- calls for Our settlement agreement achieved improvement environmental more cantly any through be possible sooner than could much legal challenge. Sherburne County generating plant in Becker, Sherburne County generating other alternatives. and potentially W tion and renewable energy while on our system tion and renewable addr generating of our existing by taking advantage assets.That the and extending re-licensing includes our Monticello and Prairie of Island nuclear lives plants,generating the capacity of increasing the coal-po balance to achieve a reliable,balance to achieve and cost effective en MINNESOTA Our Minnesota Resour in 2004 and Utilities Commission Minnesota Public updated in 2005, need of a resource has identified 3,100 mega years. supplies approximately system Our existing 9,200 megawatts. the cost,The plan examines and risks benefits of v ols oject is emissions onment’s x the pr vir and NO lo community, and 2 uction in 2007, lic Health and En eement has enabled us to work eement has enabled r or the Pueb w unit, mercury and on controls g um f or e will install additional emission contr e will install additional emission tment of Pub w veral Pueblo initiatives in 2005.We joined in 2005.We initiatives Pueblo veral bility f tnership parties with the environmental to our unity.We contributed $50,000 to the Colorado unity.We orking with Sustainable Pueblo, with Sustainable orking an organization RESOURCE PLANNING RESOURCE current mercury reduction program in the Pueblo current mercury program reduction districts with local school to working and are area our value greatly diesel bus emissions.We reduce par settlement agreement. expected to employ more than 1,000 workers. to employ more expected Our settlement a on se partnerswith our environmental to sponsor a sus- taina also been have another one in 2006.We held we w concepts in the com- encouraging smart growth m Depar from the entire facility will be reduced significant- will be reduced facility the entire from than doubles. more while electric generation ly At the peak of constr on the existing two units at Comanche Station, units at Comanche two on the existing use state-of-the-art and low-water controls emission cooling on the ne units.Asall three a result, SO COLORADO least-cost completed most of our recent We during Colorado in planning process resource 2005.major announcement a Highlights included tripleof our intent to in our wind capacity of construction and commencement Colorado super-efficient coal unit 750-megawatt on a new Pueblo.Through Station in at Comanche a compre- with settlement agreement and innovative hensive organiza- and community environmental many tions, xperiencing. luding renewable luding renewable ing the value of a national ing the value inc enewable energy expan- enewable gy sold in those states come e been e v ces, y.We urge the U.S. urge y.We Congress e ha AX CREDITS e consider esour y r e ar g W e we meet or exceed all of these require- or exceed meet e we have been increasing,have on the this tax credit ation is vital to r un-ups w , y first 10 years duringy produced a project’s g g tain amounts of ener ice r sion in our countr this tax credit, plan for a longer-term to develop certainty more in the hope will create we which and alleviate equipment shortages and market pr ener of oper ener renewable portfolio standard, portfolio renewable provide may which us. for benefits some consistency and market PRODUCTION T ENERGY FOR RENEWABLE a valuable 2005 extended Act of The Energy Policy energy 2007, through renewable for tax credit with other it cost-competitive helps keep which resources.As equipment and construction costs of all ener PORTFOLIO STANDARDS RENEWABLE states with renewable Xcel Energy in many operates standards,portfolio that requirements are which cer hard work energy resources.We renewable from to ensur ments. They complex, can be and some states are or contemplating their requirements increasing doing so. y ket.The d in a timel ar er to mar w orw e f v xpansion to support several e also need the continued t mo s wind po W ions. eg es construction of new transmission to es construction transmission of new ansmission e g ocesses don’ . should help Both of these developments ing the state’ a y tr ating r ransmission is the critical link between most is the criticalransmission between link RENEWABLE ENERGY CHALLENGES ENERGY RENEWABLE Energy Policy Act of 2005 also created new federal new Act of 2005 also created Energy Policy “backstop” authority lines if to site transmission state pr of our states and counties to enable cooperation timel help br us, will be needed for as additional transmission wind energyincreasing capacity in all of our oper manner renewable energy planned or anticipated projects renewable in the coming years. TRANSMISSION T and customers energy resources renewable they generate.who use the power In 2005, the a bill that passed Minnesota State Legislature encour Last year’s Triple Bottom Line report Bottom highlighted Triple Last year’s concerning renewable some key challenges energy.While they challenges, remain we during 2005. progress made significant Gary Holmes, safety & technical training supervisor Gary Holmes, safety & technical training ENVIRONMENTAL LEADERSHIP XCEL ENERGY TRIPLE BOTTOM LINE REPORT 2005 55 __ emoved will be r s, ed boiler ir .com xisting coal-f About Energy and Rates • Unit 3 Comanche • Emissions Reduction Project Minnesota Learn more at xcelenergy (Enter these key words in the search engine) • from servicefrom in of the project upon completion 2009. May Our third project,Our third our re-powering involves which coal to natural Riverside in Minneapolis from plant gas, permitting is in the environmental stage.We permitsubmitted our air November application in Agency, Control Pollution 2005 to the Minnesota anticipating a construction start in the summer of 2006 after the necessary been secured. permits have combustion two plant will utilize The re-powered turbines with corresponding heat recovery steam Unit 7 steam to the existing to supply generators steam turbine.The other steam turbine, as well as the e ators steam and a new ener ojected in-service date is uction on our second Minnesota The pr y steam g constr er v y 2006.The involves project High Bridge eco y 2008. xisting site. replacing our existing coal-powered facility with a facility coal-powered our existing replacing unit.The gas combined cycle natural unit will new combustion turbines, two include corresponding heat r Minneapolis, Minnesota The King rehabilitation project will add state-of- project rehabilitation The King the-artrehabili- equipment and control emissions to equipment electric generating tate existing and return air emissions this coal-powered reduce plant to its original capacity.As 2005, of year-end system air quality control new the all materials for construction to the and all site had been delivered complete. was work foundation Boiler and steam in the summer of be delivered components will 2006, to begin in scheduled major tie-in work with the fall.The in-serviceprojected 2007. date is May Meanwhile, MERP project, the conversion of our High Bridge plant in St. gas, natural coal to from Paul began in earl turbine to be installed in a new building on the building turbine to be installed in a new e Ma s erside in onmental vir aul and Riv P one of the nation’ enerating capacity by enerating e in St. educing the en idg easing g oject (MERP), High Br s while r y took place at the Allen S.y took place at the King plant in emon lected in our voluntary emissions reduction ojects in Minnesota and Colorado. ef ENVIRONMENTAL PERFORMANCE ENVIRONMENTAL VOLUNTARY EMISSIONS REDUCTION PROJECTS EMISSIONS VOLUNTARY energy reliable to Our commitment to provide customer is clearly that power impact of producing r pr METRO EMISSIONS MINNESOTA REDUCTION PROJECT (MERP) shovels, golden the turn of several With April 22, began officially construction work 2005 – Emissions – on our Minnesota Metro Earth Day Reduction Pr Construction begins on new air quality control equipment Construction begins on new air quality at the Allen S. King plant. Oak Park Heights,Oak Park Minn., the first plants of three now between refurbished that will be completely and 2009. largest voluntary projects.Thelargest environmental cer Minneapolis are the others.Minneapolis are When completed, reduce MERP will significantly Cities area Twin the three air emissions from plants while incr about 300 megawatts. Olon Plunk y policy David Wilks AL OVERSIGHT Richard C. Kelly – Board of Directors President, Energy Supply Chairman, President and CEO egulator Vice President, Environmental Services Vice and auditing services risk management and r ENVIRONMENTAL MANAGEMENT MANAGEMENT ENVIRONMENTAL ENVIRONMENT • permitting, Environmental compliance • environmental strategic Providing • Managing environmental, legislative ENVIRONMENTAL MANAGEMENT SYSTEM ENVIRONMENTAL procedures Xcel Energy to develop is continuing a structuredand tools to implement environmental with ISO 14001, system consistent management an international of environmental standard management.This includes: AND OVERSIGHT AND OVERSIGHT ENVIRONMENTAL LEADERSHIP XCEL ENERGY TRIPLE BOTTOM LINE REPORT 2005 57 __ 2 exas. emissions reduction equipment. It includes x emissions reduction equipment in Colorado. emissions reduction equipment Exceedances are short increments of time when are short increments of Exceedances 2 This goal focuses on reducing and avoiding CO This goal focuses on reducing This goal tracks the ongoing performance of our electric This goal tracks the ongoing performance of our This goal tracks the ongoing performance of electric This goal tracks the ongoing reductions: intensity target: reductions: x 2 2 his includes actions to improve our own operating efficiency, provide energy our own operating efficiency, his includes actions to improve generating units with SO King in Minnesota; Arapahoe, Cherokee and Hayden in Colorado; and King in Minnesota; Arapahoe, Cherokee and Hayden Jones, Nichols and Plant X in T generating stations with NO emissions are greater than permitted levels. Most exceedances are not permit levels. Most exceedances greater than permitted emissions are we occur due to equipment malfunctions; however, violations. They typically whenever possible. strive to minimize exceedances units we own and from power we buy from others. emissions from generating T for our customers and increase renewable energy efficiency opportunities this goal contributes to our performance in meeting use. Our performance on Strategy goals. our Carbon Management plants in the Denver area that were part This includes several power as an earlier project of a voluntary emissions reduction project as well at Hayden Station. 1. Minimize exceedances: 2. CO 3. SO 4. NO 2005 2005 Goal Actual , carbon monoxide , carbon monoxide x reductions , NO intensity target reductions 2 x 2 2 (CO) and water) 427 271 (avoided tons) 21,384 22,813 (lbs/MWh)SO (avoided tons)NO 1573 33,699 1528 33,332 (SO 2. CO 3. 4. 1. Minimize exceedances Jay Sanders, foreman, line construction In 2005, score Index our Environmental 96.2 out of 100. an excellent was in our 2005 Environmental Index Exceedance reductions are weighted the highest the overall index scored high. measure. So while two areas are just short of goal, oals onmental g vir x en y based on compliance – il imar or improvement. e operated our facilities within our facilities e operated ing and comple ell w mance pr onmental permits regulations. and In recent or ocus on f w w vir halleng DENVER METRO EMISSIONS METRO EMISSIONS DENVER REDUCTION PROJECT A voluntary the in project emissions reduction completed its third recently area metro Denver in 2005. of successful operation full year This the installation of additional involved program plants – power at three emissions controls in Denver facilities Arapahoe and Cherokee as the Station in Boulder – as well Valmont and units at small generation of two retirement Station. Arapahoe INDEX ENVIRONMENTAL improvement, in continuous believe We and performance. that applies to our environmental In the past, our environmental evaluated we perf ho en years, and set more our focus expanded we’ve c using an index system.using an index Our Environmental achieve as we to year year from can change Index others and identify certain goals performance to f enver, Colorado enver, D AIR EMISSIONS We continue to reduce power plant emissions through sound operations, improved technology, and our voluntary emissions reduction efforts. Carbon DioxCarbideon Emi Dioxssiideons Emi (misllisionsons o(mif tollins)ons of tons)

75,852,234 75,852,234 73,006,541 73,006,57413,254,728 73,254,7 28tons tons 71,919,862 71,919,862 tons tons tons tons 70,541,259 70,541,259 tons tons tons tons E N V I R O N Xcel EnergXcyel Em Energissionsy Em Redissionsuction Red Compuctionare Cdomp to Nearet dGene to Neratt ionGeneration M E

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Nitrogen ONxiditrogee Emissin Oxidonse E (tomissins)ons (tons) Sulfur DioxSulfideur Emi Dioxssiideons Emi (tons)ssions (tons) X C

3 lbs 3 lbs 70 million 70 million E 179,774 179,774 L 178,227 178,227 174,858 174,858 E tons tons tons tons N

tons tons E R

158,080 158,080 G tons tons Y

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tons tons I Nitrogen OxideNitrogen (pounds Ox pideer (pMegawaounds ptte Hourr Megawa) tt Hour) 135,057 135,057 135,122 135,122 P 132,478 132,478 L tons tons tons tons E tons tons 126,434 126,434 125,109 125,109 B

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4.05 4.05 5 2005 Xcel2 Ene005rgy Xce Olwne Enedrgy G eneOwneratdion G ene– Airrat Emiion s–sion Airs Emi by sOpersionatins byg Oper Companyating Company 4.01 3.984.01 3.98 lbs/ lbs/ lbs/ lbs/ lbs/ lbs/lbs/ 3l.8bs/ 3.793.8 3.79 MWh 4MWh.46 4.46 MWh MWh MWh MWh lbs/ lbs/lbs/ lbs/ lbs/ lbs/ ParticulateP artMatteiculatr Eemissi Matteonsr E (tomissins)ons (tons) Xcel Energy Xcel Energy Xcel Energy Xcel Energy Xcel Energy Xcel Energy Xcel Energy Xcel Energy Xcel Energy Xcel Energy MWh MWh MWh MWhMWh MWh MWh MWh Carbon DioxidCarboe Emissionsn Dioxide Emissions Sulfur DioxideSul Emissiofur Dioxidens Emissions Nitrogen OxidNitrogee Emisnsions Oxide EmissionsParticulate MParticatterulate Emis sionsMatter Emissions Mercury EmissiMercuryons Emissions 9,766 tons 9,766 tons 70,541,259 tons70,541,259 tons 147,317 tons 147,317 tons 125,109 tons 125,109 tons 8,715 tons 8,715 tons 2,543 pounds2,543 pounds 9,027 tons 9,3629,027 to tonsns 8,1729,362 to tonsns 8,7168,172 to tonsns 8,716 tons

2001 20022001 2003 2002 2004 2003 2005 2004 2005 2001 2002 2001 2003 2002 2004 2003 2005 2004 2005 .29 .27.29 .28.27 .25.28 .26.25 .26 lbs/ lbs/lbs/ lbs/lbs/ lbs/lbs/ lbs/lbs/ lbs/ MWh MWhMWh MWhMWh MWhMWh MWhMWh MWh SPS SPS SPS SPS SPS SPS 29,884 tons 29,884 tons 2001 20022001 2003 2002 2004 2003 2005 2004 2005 20,822,274 to20,822,27ns NSP-MN4 tons NSP-MN42,882 tons 42,882NSP-MN tons NSP-MN SPS SPS SPS SPSNSP-MN NSP-MN 25,760,049 to25,760,04ns 9 tons 63,023 tons 63,023 tons NSP-MN NSP-MN3,433 pounds3,433 pNoundsSP-MN NSP-MN 1,119 pounds1,119 1,043pounds pounds1,043 pounds 57,475 tons 57,475 tons 4,205 tons 4,205 tons Mercury EMmissiercuonsry E (poumissinds)ons (pounds) PSCo PSCo PSCo PSCo PSCo PSCo 35,184 tons 35,184 tons 2,376 2,5432,376 2,543 23,150,892 tons23,150,892 tons 39,963 tons 39,963 tons PSCo PSCo PSCo PSCo 1,978 1,978 1,602 1,7031,602 1,703 lbs lbs lbs lbs lbs lbs 976 tons 976 tons 364 pounds 364 pounds lbs lbs lbs lbs

NSP-WI NSP-WI NSP-WI NSP-WI NSP-WI NSP-WI NSP-WI NSP-WI NSP-WI NSP-WI .000024 .0.00002600024 .0.00002900026 .0.00003600029 .0.00003800036 .000038 808,043 tons 808,043 tons 1,450 tons 1,450 tons 2,566 tons 2,566 tons 101 tons 101 tons 18 pounds 18 pounds lbs/ lbs/lbs/ lbs/lbs/ lbs/lbs/ lbs/lbs/ lbs/ MWh MWhMWh MWhMWh MWhMWh MWhMWh MWh 2001 20022001 20032002 2004 2003 2005 2004 2005 NSP-MN = NorthNSP-MNern Sta =tes North Poweernr StaCompantes Powey - Minnesotr Compana;y N- MinnesotSP-WI = Na;orth NSP-WIern Sta =te Nsorth Poweernr SCotampanytes Powe - Wir Cosconmpanysin; PSCo- Wiscon = Publicsin; PSCo Service = Public Company Serv oicef Colo Companyrado; SPS of Colo = Sourado;thwe SPSste =rn Sou Publithwec Serstevicern Publi Companyc Service Company See Toxics ReleasSeee Inve Toxicsntory Rel deasiscussie Inveonntory on page discussi 60 foron mor on epage informat 60 forion more information ENVIRONMENTAL LEADERSHIP XCEL ENERGY TRIPLE BOTTOM LINE REPORT 2005 61 __ inishing tion of the or some site-f er a por v eco xcept f “Superfund” site, requiring A as a ts. 1885-1947, From NSP-Wisconsin ibuted gas to Ashland area residents. Ashland area ibuted gas to Additional past investigation costs, Additional past investigation ial por or other industrial purposes, been identi- has y the EP e attempting to r eholders to identify the scope and extent of eholders to identify the scope and extent ties to implement a work plan to address oily to address plan a work ties to implement e ar ied b LEGACY PROJECTS LEGACY work and long-term ground water treatment. and long-term water ground work totaled about $11.7 the work costs for Direct million. and settlement costs, payment direct and future and maintenance costs bringoperation the total to $16.7 million. project estimated overall W and legal claims. insurance cost through 1900s,In the late 1800s and early the lakefront Ashland,Wis.in foremost one of the nation’s was industr gas plant that produced a manufactured operated and distr The gas plant site, along with nearby properties used f f As an energy company with a long history,As an energy company we associated with issues environmental manage and past operations. companies predecessor MANUFACTURED FORT COLLINS GAS PLANT CLEANUP and other with the EPA Xcel Energy has worked par in River la Poudre in the Cache material discovered Collins,Fort Colo., manufactured site of a former gas plant. largely Remediation activities were completed in 2005 e ASHLAND LAKEFRONT PROJECT cleanup. cooperatively Xcel Energy has worked Department of Natural Wisconsin with the EPA, the Resources,American tribes and other Native stak the contamination, parties and other responsible alternatives. remediation

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1 0 0 Xcel Energ 2 20,129 p ater studies conducted ar ear Mercury plant difficult is in a power control to carried amounts tiny because of the extremely in flue moving of fast volumes large gas; however, with research collaboratively working we’re and EPRI to investigate as organizations such to remove specifically designed test technologies plant fluemercury power from gas.Also, in our use western coal, we operations among is which in mercurythe lowest content. mercury to In terms exposure of potential human Xcel Energyfrom facilities, independent soil and w indicate no negative affects from our operations. from affects indicate no negative Overall, numbers from down TRI release are our 2003 lar reported as in Minnesota is no longer landfill since plant releases Sherco part of Xcel Energy’s NRG. owns Xcel Energy no longer In previous y “one considered facility” under TRI. e calculated le. b aila acilities ar v isconsin f W as it becomes a ailable for these units. for ailable facilities Colorado Ashland Environment vious years’ data. v (Enter these key words in the search engine) • • • Lakefront Project Learn more at xcelenergy.com e or Minnesota and using stack test data,using stack because sufficient test data is a test data, use stack will eventually and mercury monitor data, calculation method,Using this new mercury overall much, change didn’t releases but reported mercury to compared significantly emissions to air increased pr Beginning in the 2005 TRI reporting year (for 2004 (for TRI reportingyear Beginningthe 2005 in data), Energy Xcel method began using a different calculating mercuryfor and other trace emissions generating Texas and its Colorado metals from facilities. this method based on EPRI developed data,EPA than accurate it is more believe and we used. method we the previous Mercury emissions f TOXICS RELEASE INVENTORY TOXICS year,Each reports environmental many file we are to verify we with various units of government with our in compliance our facilities operating permits. with the annually file One report we Release Inventory (TRI), Toxics is called the EPA or produced used is a list of chemicals which electricity. in generating 0 0 ENVIRONMENTAL LEADERSHIP XCEL ENERGY TRIPLE BOTTOM LINE REPORT 2005 63 __ 194 1,6 , ,300 2 18 3 ,110 2 , ,550 2 5 7 2 286 2 0 0,41 2 .

d water n 1 1 il a l ,478 3, 25 i o , so s er ed t. n s , filt . U me ags on s r nvir h a 50 3 10 3 uc he e , s hey ns on t T ct Ash Markets Award Markets Ash eratio In 2005, Xcel Energy and Lafarge North America, In 2005, Xcel Energy Coal Combustion U.S. EPA Inc., received a Honorable Mention Award Products Partnership expanding ash markets. The for developing and the partners for new application award recognized to make ash from two methods they developed Station near plants – Harrington of our Texas Station near Muleshoe – Amarillo and Tolk for real especially useful in soil stabilization construction estate development and for highway and repair p Scrap metal 1 o trol Act. ur impa 33 on o 0 s C l 9 s 4 o om our 2 tr 96 3 on tance s 2,311 ial*** 3 vered fr ste c o wa ic Sub ec

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tami n on ASE merc nclude c H CB a ste i ISPOS Hazard P P CB sal wa P iver n * U WASTE D 2005 oughout our Thr . y uall roadbed materialroadbed and hemicals, batteries, lighting c oducts, ents, ups, manage carefully must so we solv ete pr lean bilization.We also seek to recycle and reuse also seek to recycle bilization.We om c h as oil, an Administrative Penalty Order from the from Order Penalty Administrative an regarding Agency Control Minnesota Pollution certificationslapsed operator at the facility. $2,200 penalty and a specified The Order actions. completion of corrective notices of violation two received plant complex Commission on Environmental Texas the from discharges unauthorized wastewater Quality for occasions.on separate in resulted Neither event off-site discharges, action and no enforcement taken. was SUSTAINABLE BUSINESS PRACTICES SUSTAINABLE and dispose of those. Since 1993, our chemical in Colorado, program control called HazTrac, has in the number reduction in a 55 percent resulted also are use.We we chemicals of unique hazardous phasing out equipment that contains voluntarily (PCBs) throughout biphenyls polychlorinated and distributionour transmission system. WISE RESOURCE USE, RECYCLING AND DISPOSAL plants consume about30 million Our coal-powered tons of coal per year, about yields on average which 2.5 million tons of ash ann soil sta - items and materials possible other products where suc and lamps, metal. paper and scrap are in our operations Some of the chemicals materials, hazardous considered as flammable such liquids, some paints and solvents, and contaminated soil fr • 2005, June In received plant Wing our Red • In Nov. 2005, Nichols-Harrington our power system, uses, ash to beneficial put that we such as in concr y of our size ever, there w Ho or a compan vels or violated regulations, vels egulations. Fines $2,200 iolation mit le xcellent f esult in fines or penalties.esult in fines Overall, $133 million $58.5 million ed e al and state r h can r Number 3 xceeded per eder 2005 Notices of V NON-COMPLIANCE ISSUES ENVIRONMENTAL INVESTMENTS INVESTMENTS ENVIRONMENTAL We strive to operate in compliance with all strive to operate We f Operating and Maintenance Expenses Operating and Maintenance 2005 = $147 million 2004 = 2003 = $133 million and scope. Capital Expenditures 2005 = $37 million 2004 = $21 million 2003 = our environmental compliance performance is compliance performance our environmental consider AND EXPENDITURES each Xcel Energy investments significant makes quality. air improve emissions and to reduce year to related of expenditures is a breakdown Here in involved expenses and capital projects new our environmental and maintaining operating systems. control may be occasions when we have unintentionally have be occasions when we may e whic ENVIRONMENTAL LEADERSHIP XCEL ENERGY TRIPLE BOTTOM LINE REPORT 2005 65 __ oss our Acr eated with chemicals ued use. vice be tr or contin uch better for the environment. better for uch oing into ser e m ransmission Poles efurbishing them f that ar service territory, transmission specify that new we poles g Fleet practices costs, fuel use and manage reduce To we fleet, the size of our vehicle to reduce work ones when new smaller vehicles and purchase used alternative fuels, have be added.We must gas, as natural such expand- years.We’re many for vehicles, hybrid to include ing this initiative and general cars hybrid for several purchased have we transportation use. 2006, In participate plan to we utility truckin a hybrid program; pilot in addition, the impact with NREL to study working are we on our system and vehicles of plug-in hybrid use of bio-diesel in the expanded investigating our operations. T In our northern regions, operating are we poles that had cedar transmission reclaiming by chemicals with hazardous been treated r We iciency and f eplacement. y ef g ning ener hgear and at other facilities. hgear witc iciency and conservation efforts. its and equipment r f aphic cameras to detect waste heat to detect waste aphic cameras r of e’re looking at ways to further improve at ways looking e’re am concer y ef r etr w g mog og on substation s certifica- staff in the EPA’s increasing training We’re tion pr conservation.At plants, our power making we’re to tryefficiency improvements the to reduce electricity. use to produce amount of fuel we In 2006, electric troubleman Mike Kennedy, AT OUR OWN FACILITIES OUR OWN AT and initiatives Xcel Energy is implementing several impact our to reduce additional ways investigating on the environment. Recycling office paper, recycle and light aluminum We investment and practice facilities bulbs at many wire,recovery reclaim to and construc- pipeline tion materials. In 2006, to looking at ways are we efforts recycling and better standardize increase our company. across Efficiency and Conservation energy to reduce use at our working We’re an energy program management have facilities.We thermostats, programmable in place that includes lighting r use ther our ener

s luent. gallon d eff ater Plant. W billion . y umption was treate lo will employ s Re-use PS water cons ater’ W feet 16.8 lons of S l re- er v ion ga ill ,710 ac .6 b 1 5 he Station in Pueb r Consumption ough various projects. example, For Wate ear thr 2005 NSP Note: 20,255 acre-feet or 6 Cherokee uses up to 5,200 acre-feet of recycled uses up to 5,200 acre-feet Cherokee per year, use water plant’s the reduces which building water.Andof fresh unit we’re the new at Comanc use technology,low-water use water reducing by about half. In Colorado, conserve about we 2.3 billion gallons a y Station,Cherokee north of Denver, is the largest customer of Den WATER USE WATER as it is to human operations is as vital to our Water of electricity in the production use water to life.We cool equipment. steam and make Recognizing the water, fresh universal for need extensive take we use our overall steps to conserve and reduce water upon possible.whenever expanded Texas, we’ve In our pioneeringrecycled efforts that use treated effluentmunicipal in our plant operations. Several facilities,Nichols-Harrington the including genera- Station near Amarillo and Jones near tion complex municipal recycled began using treated Lubbock effluent 1960s. in the early In 2005, expanded we Nichols’ recycled treated handling capacity for effluent, of an the reclamation for allowing additional 12 million gallons dail - ns gallo on billi .5

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t 9 fee cre- 279 a EMPLOYEE PROFILE Gary Magno PSCO 29, mental science. Xcel Energy is fortunate to have mental science. Xcel Energy is fortunate analyst Gary Magno as its principal environmental throughout our – a job that keeps Gary on the go Gary was instrumental Colorado service territory. in leading the complex air quality permitting process for our Comanche 3 project from start to finish in a record 11 months. He will stay involved in this project as we add significant emissions Gary is reduction equipment at the facility. also deeply involved in regulatory processes, representing our company as new environmental regulations concerning mercury and regional haze are developed. While he understands the complex science involved in our business, one of his greatest talents is being able to explain it in simple terms to others. This talent proves invaluable when working with fellow employees and local communities. When you stop by Gary Magno’ of the great outdoors is readily apparent. Pictures of the great outdoors is readily apparent. get that didn’t of favorite fishing trips and the ones favorite pastime away are proudly displayed. His environ fits naturally with his chosen profession, ns n gallo illio .2 b 4 1 et e e-f 670 acr SPS 43, ENVIRONMENTAL LEADERSHIP XCEL ENERGY TRIPLE BOTTOM LINE REPORT 2005 67 __ From time to time, ospreys will build their nests on top of power poles, compromising their own safety and also electric reliability for neighboring communities. When this occurs, Xcel Energy crews carefully relocate the unoccupied nest to a new pole and nesting platform away from high-voltage lines. Avian Protection AgreementAvian In 2002, Xcel Energy the first was utility in the of a memorandum sign nation to voluntarily understanding with the U.S.Wildlife and Fish Servicefor plans protection avian to develop our service areas.These intended to plans are collision risks and electrocution from reduce distribution and our transmission lines to eagles, have raptors other migratory and birds.We and are region in each our facilities reviewed plans to minimize risks to retrofit developing creatures. these winged d Cam xpanded the e e une v e’ y through May May y through ough J uar Late March through May May through Late March h thr ebr c e the best times to visit Bir Late F uary May through Late April June through Late Late Mar ont row seat for the action in the the action in nest seat for ont row wing ar ebr F els: ollo Bird Cam Learn more at xcelenergy.com (Enter these key words in the search engine) • HABITAT PROTECTION AND BIRD CAM AND PROTECTION HABITAT and watch your favorite birds: favorite your and watch program to other species:program owls, ospreys, eagles and kestrels.And enthu- birding Cam gives our Bird siasts a fr right their computers. from Last year, Cam Bird than 80,000 individual computers more registered visiting the site duringthe nesting season. The f Bald eagles: Owls: Peregrine falcons: Kestr Ospreys: At Xcel Energy, open space to protect work we partner habitat.We with and preserve wildlife to plant groups and community environmental habitat, and restore trees gardens, public develop and trails,parks and up highways and clean riverbanks.And instances, special in a few we’ve use. recreational for opened areas donated land or of nesting boxes also helped pioneer the use We rare habitat for to provide plant stacks on power falcon.The as the peregrine such birds program has been so successful that w Bob Anderson, raptor expert, builds a nesting box. ECONOMIC IMPACT XCEL ENERGY TRIPLE BOTTOM LINE REPORT 2005 69 __ Hermilo Martinez, community service director

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: Total ECONOMIC IMPACT XCEL ENERGY TRIPLE BOTTOM LINE REPORT 2005 71 __ -based model that sites optimal locations for commercial rooftop PV installations. RPM uses Xcel Energy's Geographic Information System (GIS) data for mapping Xcel Energy's facilities, loads and consumption. This GIS data is then overlaid on top of NREL's GIS data for solar and wind resources, land ownership, land usage and satellite images. Renewable Planning Model (RPM) Renewable Planning Model signed a In May 2005, Xcel Energy and NREL software first-of-its-kind agreement to develop and grid-con- to evaluate siting options for off-grid nected commercial rooftop solar electricity systems we developed together, in Colorado. Working Model (RPM), a Renewable Planning NREL’s computer included the development of a Builder and included the development of a Builder and Predictive Developer Design Automation tool among others. Maintenance in Generation Plants, is the Renewable One project of particular interest Planning Model (RPM): , which is searching for new The Power of Innovation The Power of For businesses, the charge to do more with less For businesses, the charge to do Capital is limited, government is greater than ever. costs and regulation is increasing and business service are rising. the demand for better customer of this than Nowhere is there greater evidence in the utility industry Many utilities like ways to meet these challenges. that focuses Xcel Energy have adopted a strategy means fewer on their core business, which often opportunities for adding revenue. One solution is innovation. Successful innovation can increase efficiency and reduce costs, critical elements in the effort to meet customers’ and expectations within an environment Street’s Wall constrained by resource limitations. In January 2004, Xcel Energy brought together some of its leading technology partners – IBM, Itron, Indus, – to create the Utility Mercury and SPL WorldGroup Xcel Energy together, Innovations initiative. Working and its partners create, evaluate and implement new ideas, methods and practices to improve customer service and drive efficiencies in utility operations. Our 2005 Utility Innovations initiatives om jobs, Aside fr ic demand. ansmission line ota, totaling ado in 2005 that ees. y as completed in 2005 ical system. s high electr oject in Color eplacing 70 miles of tr TURAL GAS-FIRED rent tax rates,rent 3 will add average Comanche Anson plant in South Dak or the summer’ bility of our electr luded r venues for local governmental agencies. local governmental for venues Based elia e with double-circuit, capability to higher-voltage and enhance the support additional generation r the new coal unit will generate significant new significant coal unit will generate the new r on cur to of aboutper year $10 million tax payments taxing jurisdictionsPueblo during construction and the firstoperation. decade of TRANSMISSION SYSTEM INVESTMENTS A $43 million pr inc NEW NA COMBUSTION TURBINES gas-fired constructionThe natural of three combustion turbines w in Minnesota and our facility at our Blue Lake Angus 480 megawatts.The was $96 million project completed on schedule, and in under budget time f COMANCHE 3 COMANCHE Utilities Public by the Colorado Approved Dec.Commission in 2004, will add this project unit at our generating 750-megawatt a new in facility generating coal-fired Comanche Pueblo, Colo. 2005, In June an Xcel Energy reached and Trades Building with the Colorado agreement Construction Council, committing that all new be 3 would Comanche construction for performed labordone under a project agreement.The project is anticipated to cost about $1.3 billion, with more construction labor. toward than $250 million going It will employ at the peak of about workers 1,000 construction period.When to five-year the three- the unit is on-line, employ to up to expect we 40 additional full-time emplo the In addition, ee Twin Cities power Twin ee om thr oject in 2005. uction workers each day since the April since the day each uction workers while increasing electric generating capacity electricwhile increasing generating its – creating new jobs and generating new jobs and generating new its – creating well to 400 to 500 workers in 2006. 400 to 500 workers to well educe emissions fr CONSTRUCTION AND MAINTENANCE MAINTENANCE AND CONSTRUCTION by 300 megawatts.We spent approximately $212 spent approximately by 300 megawatts.We million on the pr plants, of employment to an average has provided project 350 constr to that number expect 2005 groundbreaking.We s A $1 billion voluntary program that will significantly that A $1 billion voluntary program r MINNESOTA METRO EMISSIONS MINNESOTA REDUCTION PROJECT (MERP) Each year we make significant capital investments significant make we year Each in our electric generation, and natural transmission customers to provide with safe, gas facilities electricity gas servicereliable and natural at prices.reasonable 2005, In Energy Xcel spent construction$1.3 billion on throughout projects our service territory.And, 2009, 2005 through from building Xcel Energy its biggest will undergo boom since the 1980s, $7 billion in investing operations.Theseour core vital are investments our business and helping us respond to growing electricto increased demand.The construction economic indirect made also have we investments benef tax revenues for local governmental agencies. local governmental for tax revenues Highlights include: ECONOMIC IMPACT XCEL ENERGY TRIPLE BOTTOM LINE REPORT 2005 73 __ The . e made in 2005 er estments w v No in Supplier Diversity Utility Innovations Learn more at xcelenergy.com (Enter these key words in the search engine) • • ELOIGNE COMPANY COMPANY ELOIGNE Eloigne Company devoted the year to managing the year devoted Eloigne Company its portfolio. AFFORDABLE HOUSING INVESTMENT AFFORDABLE is a non-regulated, The Eloigne Company wholly subsidiaryowned to of Xcel Energy that works high-quality, of enhance the supply affordable it serves the communities housing within in rental Minnesota, North Dakota, Dakota,Wisconsin, South and Colorado. in 1993, Since its inception Eloigne million than $100 more has invested Company and 3,195 housing developments in affordable units. rental 2005: 2004: $7.2 million s y center hnolog planning initiatives with energyassistance and help services customers or prospective existing for tec ECONOMIC DEVELOPMENT DEVELOPMENT ECONOMIC In communities throughout our 10-state throughout In communities service territory, Xcel Energy supports economic building in numerous and capacity development including: ways • State, local strategic and regional • development economic Comprehensive • business incubators and Funding for • service board Nonprofit and civic leadership 2005: $1.9 million 2004: $1.9 million ve.Therefore, e ser Dollars % of Total unities w # of ble business opportunities for women- women- business opportunitiesble for sity of the comm er Year ContractsYear Spent Purchases 20052004 479 541 $111.8 million 7.44% $103 million 7.77% SOURCING SERVICES SERVICES SOURCING *Diverse suppliers are defined as for-profit businesses that include the *Diverse suppliers are defined as for-profit following federally recognized classifications – small, small-disadvantaged, women-owned, hub zones, veteran-owned, service-disabled, veteran-owned and minority businesses. SUPPLIER DIVERSITY to our procurement equal access provide We suppliers small and large alike to enable processes business.We our the opportunity for to compete to of our company in the best interests it’s believe our supplier base reflectsensure the rich cultural div seeks to create our Supplier Diversity program sustaina and minority-owned and other diverse businesses suppliers* when possible. Each year,Each Services buyers in our Sourcing dollar contracts multi-million department negotiate operations.* day-to-day Xcel Energy’s that affect In 2005, Xcel Energy began requiring all buyers, to obtain a Certifiedspecialists and strategists awarded (CPM) designation Manager Purchasing Management.This Supply by for the Institute employees Sourcing certification provides in risk with additional training management along with the other negotiation and contract of procurement. skills vital to the field by our Energy Markets * The procurement of coal and natural gas is handled purchasing contracts of department, which oversees long- and short-term these commodities. dance gy suppliers oughout our supply chain esentatives work in accor eflected thr epr –Xcel Energy Sourcing Guidelines Xcel Energy is committed to treating is committed to treating Xcel Energy and dignity all individuals with respect the environment. and to protecting believe these principles should be We r and embraced by Xcel Ener we require and contractors. Therefore, that our suppliers and contractors, and and their employees, agents r Code of Conduct. with Xcel Energy’s 2005 TRIPLE BOTTOM LINE FEEDBACK AND FURTHER INFORMATION FINANCIAL IMPACT SUMMARY We welcome your comments and questions SOCIAL RESPONSIBILITY regarding this report.You can provide Corporate Contributions & Community Grants $2,451,585 feedback through our online survey at Employee Contributions and Involvement xcelenergy.com/TripleBottomLine or Matching Gifts (Employee and Corporate Contributions) $1,084,240 contact us at one of the numbers listed below: Dollars for Doing $75,880 Volunteer Energy $19,500 Corporate Secretary United Way (Employee and Corporate Contributions) $4,118,342 Sub-total: Employee Contributions and Involvement $5,297,962 Cathy Hart 612-215-5346 Foundation Grants in our Focus Areas Community Development $1,356,660 [email protected] Environmental Partnerships $422,500 Promoting Arts & Culture $870,315 Environmental Policy Supporting Education $1,336,353 Michelle Edwards Sub-total: Foundation Grants $3,985,828 303-294-2416 In-kind Donations $52,402 [email protected] Natural Disaster Response $438,190 Investor Relations Energy Assistance Programs $20,604,728 Richard Kolkmann Environmental Stewardship Conservation Improvement Program (MN) $47,225,207 612-215-4559 Demand-Side Management (CO) $25,640,231 [email protected] Energy Conservation Programs (WI, TX, NM) $12,014,050 Renewable Development Fund $3,900,000 Xcel Energy Foundation Renewable Energy Trust $92,000 John Pacheco, Jr. Renewable Energy Production Incentive $4,300,000 Sub-total: Environmental Stewardship $93,171,488 612-215-5317 Total: Social Responsibility $126,002,183 [email protected]

ECONOMIC IMPACT (DIRECT AND INDIRECT) Construction $1,300,000,000 Franchise Fees $130,653,633 Gross Receipts Tax $18,928,358 Employer Taxes $64,405,872 Property Tax $210,842,614 Sales Tax on Billings $288,903,629 Sales Tax on Purchases Paid to Vendors $7,400,186 Supplier Diversity $111,800,000 Use Tax on Purchases $24,756,227 Sub-total: Direct Economic Impact $2,157,690,519 Economic Development Programs (Indirect) $1,922,303 Total: Economic Impact $2,159,612,822

2005 TRIPLE BOTTOM LINE IMPACT $2,285,615,005 414 Nicollet Mall Minneapolis, MN 55401 1-800-328-8226 xcelenergy.com

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