Meeting the ChallengeCleaner fuel sources for

electric generation

MARK STOERING, PRESIDENT NSP-WISCONSIN, AN XCEL ENERGY COMPANY

2015 MACE ADVOCACY ALLIANCE POLICY CONFERENCE

XCEL ENERGY

Investor-owned Operate in 8 states 12,000+ employees

UnemploymentService area: 3.6%US: 5.1%

CustomersElectric: 3.4 millionGas: 1.9 million

NSP-Wisconsin

NSP-Minnesota

Public Service Company of Colorado

SouthwesternPublic Service

NSP-WISCONSIN

Wisconsin & Michigan Customers

252,000 electric 112,000 natural gas

Total Assets $ $2.2 billion

Employees 1,000+

ACCOMPLISHMENTS

No. 1 wind provider in America

Building Solar Capacity

A Leader inEmission Reductions

A Leaderin Conservation

A Leaderin Transmission30%

Carbon Reduction

Strong Reliability

StormResponse

All at aCompetitive

Price

XCEL ENERGY SUPPLY PORTFOLIO

Coal37%

Nuclear30%

Renewables25%

Natural Gas 8%

Capitalize on diversity

Geographic advantage

Natural gas plants support renewables

Today, coal remains base-load option

EVOLVING POLICY LANDSCAPE

Final Clean Power Plan

Reduce CO2 emissions 32% nationally

Improves on 2014 proposal‒ More recognition of

Xcel Energy’s early action

‒ Xcel Energy well-positioned

Our Goal: To be the Clean Power Plan Solution Provider to states we serve

CLEAN POWER PLAN SOLUTION PROVIDER

Environment

• Continue emission reduction trajectory

• Support clean energy at a reasonable price

Customers

• Ensure reasonable cost

• Maintain reliability

• Remain viable regardless of outcome of litigation

Policymakers

• Maintain credibility with all states

• Reduce policy and political risk

Shareholders

• Support business strategy

• Create growth opportunities

BOLD PLAN TO REDUCE EMISSIONS

Accelerate transition to clean energy future

Further reduce reliance on coal by 50 percent

Develop new natural gas generation in region

Speed up pace of wind and solar integration

Operate carbon-free nuclear plants through license life

Continue to help customers be even more energy efficient

GRADUAL DECREASE ON COAL

Retire two major coal units

Replace withnatural gas plant

Add large-scale solar

ADD PEAKING GENERATIONNatural Gas

Drilling and Fracking Price and Production

Henry Hub Price$/MMBtu

Marketed MonthlyProduction MMcf

Millions

$-

$2

$4

$6

$8

$10

$12

$14

1,000,000.0

1,200,000.0

1,400,000.0

1,600,000.0

1,800,000.0

2,000,000.0

2,200,000.0

2,400,000.0

2,600,000.0Price Production

INDUSTRIAL SAND MINING

2010

Sand Deposit Customer

INDUSTRIAL SAND MINING

Today

Sand Deposit Customer

No. 1 utility wind provider for 11 consecutive years

1,800 MW of wind generation in Upper Midwest today

Increase Upper Midwest wind power by 750 MW or 40 percent by end of year

GROW EXISTING RENEWABLESWind

Top 10 nationally

Upper Midwest Planned Additions

Utility-Scale Solar- 287 MW in 2016- 1,400 MW by 2030

Community Solar- 700 MW of small-scale solar gardens- Solar*Connect Community

in Wisconsin

ADD NEW RENEWABLES AND OPTIONSSolar

MAINTAIN EXISTING RENEWABLESWisconsin Hydro

Leading hydro producer in Midwest

Upgraded and modernized

Relicensed

Low-cost generation

Carbon-free

Jim Falls Hydro

Locally sustainable fuel

Local economic driver

Carbon neutral

Strong public/private partnerships

Bay Front Plant – Ashland

French Island Plant – La Crosse

MAINTAIN EXISTING RENEWABLESWisconsin Biomass

RETAIN CARBON-FREE BASE LOADNuclear

Three units totaling 1,700 MWContinue operation through 2030/2032Economic driver for host communities

Monticello Prairie Island

Programs to manage use:

100 for electricity

50 for natural gas

982 GWh of electricity saved in 2014

Our Plan:

To achieve an additional 1.5%in energy savings

NationalLeader

CORNERSTONE OF CLEAN ENERGYEnergy Efficiency

THE RESULTSResources for the future

63% Carbon-Free by 2030

Environmental challengeas an asset

Frame the discussion

Provide wins for all

Be BOLD … gain momentum

OUR PATH FORWARD