<PAGE> 1
SCHEDULE 14A
(Rule 14a-101)
INFORMATION REQUIRED IN PROXY STATEMENT
SCHEDULE 14A INFORMATION
Proxy Statement Pursuant to Section 14(a) of the Securities
Exchange Act of 1934 (Amendment No.______)
X Filed by the Registrant
---
Filed by a Party other than the Registrant
Check the appropriate box
Preliminary Proxy Statement Confidential, For Use of
--- --- the Company Only (as permitted
by Rule 14a-6(e)(2))
Definitive Proxy Statement
---
X Definitive Additional Materials
---
Soliciting Material Pursuant to Rule 14a-11(c) or Rule 14a-12
---
Northern States Power Company
Name of Registrant as Specified in Its Charter
Name of Person(s) filing Proxy Statement, if Other Than the Registrant)
Payment of Filing Fee (Check the appropriate box)
X No fee required
---
Fee computed on table below per Exchange Act Rule 14A-6(i )(1) and 0-11
---
(1) Title of each class of securities to which transaction applies
- --------------------------------------------------------------------------------
(2) Aggregate number of securities to which transaction applies
- --------------------------------------------------------------------------------
(3) Per unit price or other underlying value of transaction computed pursuant
to Exchange Act Rule 0-11 (set forth the amount on which the filing is
calculated and state how it was determined)
- --------------------------------------------------------------------------------
(4) Proposed maximum aggregate value of transaction.
- --------------------------------------------------------------------------------
(5) Total fee paid
- --------------------------------------------------------------------------------
Fee paid previously with preliminary materials
---
- --------------------------------------------------------------------------------
Check box if any part of the fee is offset as provided Exchange Act Rule
- ---- 0-11(a)(2) and identify the filing for which the offsetting fee was paid
previously. Identify the previous filing by registration statement number,
or the form or schedule and the date of its filing
(1) Amount previously paid
- --------------------------------------------------------------------------------
(2) Form, Schedule or Registration Statement no
- --------------------------------------------------------------------------------
(3) Filing Party
- --------------------------------------------------------------------------------
(4) Date Filed
- --------------------------------------------------------------------------------
<PAGE> 2
[XCEL ENERGY LOGO]
Creating Value...
Unlocking Opportunities for the New Millennium
[NSP LOGO] [NCE LOGO]
<PAGE> 3
SAFE HARBOR LANGUAGE
- - Some of the comments made today will be forward-looking statements that are
subject to certain risks, uncertainties and assumptions.
- - Factors which would cause results to differ from our projections are
described in NCE and NSP's 1998 Annual Reports on Form 10K as well as NRG's
1998 Form 10K and other reports filed from time to time by such companies
with the Securities Exchange Commission, which reports are incorporated
herein by this reference.
- - We would be pleased to provide these items upon request
[NSP LOGO] [NCE LOGO]
<PAGE> 4
FINANCIAL BENEFITS
- - Accretive immediately
- - Provides superior pro forma total return
} Enhanced EPS growth of 7% to 9%
} Attractive dividend income
- - Increased balance sheet strength and flexibility
- - Enhanced trading liquidity
[NSP LOGO] [NCE LOGO]
<PAGE> 5
STRATEGIC RATIONALE
- - Combines complementary businesses
- - Increases scale and scope
- - Positions Xcel Energy for competition and restructuring
[NSP LOGO] [NCE LOGO]
<PAGE> 6
COMPLEMENTARY BUSINESSES
Bar Graph stating each company's Customers and Generation and the combined
amounts.
<TABLE>
<CAPTION>
Customers Generation
(Millions) (000's MWs)
---------- -----------
<S> <C> <C>
NCE 5.0 8,231
NSP 2.0 15,818
Xcel 7.0 24,049
</TABLE>
- - NSP has built a sizable generation portfolio
- - NCE has built a significant domestic and international customer base
- - Xcel Energy is about taking advantage of these considerable strengths
[NSP LOGO] [NCE LOGO]
<PAGE> 7
COMPLEMENTARY BUSINESSES-
REGULATED ELECTRIC OPERATIONS
[NEW CENTURY ENERGIES LOGO]
[NCE BAR CHART]
<TABLE>
<CAPTION>
Cents/KWh
---------
<S> <C>
PSCo 5.8
SPS 4.6
NCE 5.3
Region 6.4
Industry 7.0
</TABLE>
- - NCE's retail electric rates are among the lowest in the nation
- - 2% customer growth
- - 1.6 million electric customers
[NSP LOGO]
[NSP BAR CHART]
<TABLE>
<CAPTION>
Cents/KWh
---------
<S> <C>
NSP-MN 5.8
NSP-WI 5.6
NSP 5.7
Region 5.9
Industry 7.0
</TABLE>
- - NSP's retail electric rates are very competitive within a low cost region
- - 1% customer growth
- - 1.5 million electric customers
[NSP LOGO] [NCE LOGO]
<PAGE> 8
COMPLEMENTARY BUSINESSES -
REGULATED GAS OPERATIONS
[NEW CENTURY ENERGIES LOGO]
[NCE BAR CHART]
<TABLE>
<CAPTION>
$/MM Btu
--------
<S> <C>
NCE $4.30
Region $5.26
</TABLE>
- - NCE has the lowest gas rates in the region
- - 3% customer growth
- - 1.0 million customers
[NSP LOGO]
[NSP BAR CHART]
$/MM Btu
--------
NSP $4.89
Region $5.22
- - NSP has the second lowest gas rates in the region
- - 3% customer growth
- - 500,000 customers
[NSP LOGO] [NCE LOGO]
<PAGE> 9
SIGNIFICANT ELECTRIC AND GAS CUSTOMER BASE
[NCE LOGO]
[NCE PIE CHART] [XCEL ENERGY LOGO]
[XCEL ENERGY PIE CHART]
Electric - 32% Electric - 44%
Gas - 20% Gas - 21%
Yorkshire Power Group Electric - 40% Yorkshire Power Group Electric - 29%
Yorkshire Power Group Gas - 8% Yorkshire Power Group Gas - 6%
Customers - 5.0 Million Customers - 7.0 Million
[NSP LOGO]
Electric - 75%
Gas - 25%
Customers - 2.0 Million
[NSP LOGO] [NCE LOGO]
<PAGE> 10
STABLE, INTERNATIONAL DISTRIBUTION BUSINESS
YORKSHIRE POWER GROUP
[U.K. MAP CHART]
- - NCE owns a 50% interest
- - Consistent earnings contribution
} 15% of NCE's 1998 EPS
- - 2.4 million gas and electric customers
} 400,000 gas customers acquired in previous eight months at low cost
- - Provides competitive knowledge of deregulated marketplace
- - Low-cost provider versus competing RECs
[NSP LOGO] [NCE LOGO]
<PAGE> 11
SIZABLE, BALANCED GENERATION PORTFOLIO
[PIE CHARTS]
[NCE LOGO] [XCEL LOGO]
[NCE PIE CHART] [XCEL ENERGY PIE CHART]
Regulated - 97% Regulated - 63%
Non-Regulated - 3% Non-Regulated - 37%
8,231 MW 24,049 MW
[NSP LOGO]
[NSP PIE CHART]
Regulated - 45%
Non-Regulated - 55%
15,818 MW
[NSP LOGO] [NCE LOGO]
<PAGE> 12
NON-REGULATED GENERATION GROWTH
NRG ENERGY
- - One of the world's leading independent power producers
- - 33% annual earnings growth (1995-1998)
- - Competitive, low cost regional positions
- - Low risk portfolio
[BAR/LINE CHART]
<TABLE>
<CAPTION>
Net MWs EPS
------- -----
<S> <C> <C>
1995 999 $0.12
1996 1,326 $0.15
1997 2,637 $0.16
1998 3,042 $0.28
1999E 8,669
</TABLE>
NRG PORTFOLIO 1999E
[PIE CHART]
<TABLE>
<S> <C>
North America 76%
Latin America 2%
Europe 7%
Australia 15%
</TABLE>
[NSP LOGO]
[NCE LOGO]
<PAGE> 13
STRATEGIC GENERATION AND SERVICE FOOTPRINT
A map of the U.S. identifying the regulated service areas of NCE and NSP and
specific non-regulated generation sites.
[NSP LOGO]
[NCE LOGO]
<PAGE> 14
CREATING VALUE
[XCEL LOGO]
[NSP LOGO]
[NCE LOGO]
UNLOCKING OPPORTUNITIES
<TABLE>
<S> <C>
Energy Supply 24,049 MW
Energy Delivery - Net Plant
Electric $3.2 B
Gas $1.1 B
Energy Transmission 17,079 Miles
Retail 7.0 Million Customers
</TABLE>
[NSP LOGO]
[NCE LOGO]
<PAGE> 15
FINANCIAL BENEFITS FROM MERGER
<TABLE>
<CAPTION>
NEAR-TERM MID-TERM LONG-TERM
(0-18 MONTHS) (18-36 MONTHS) (>3 YEARS)
------------- -------------- ----------
<S> <C> <C> <C>
DELIVER STAND-ALONE RESULTS X
CAPTURE COST SAVINGS X X X
EARNINGS ACCRETIVE UPON CLOSE X X X
RATIONALIZE NON-REGULATED BUSINESSES X X X
IMPROVE CASH FLOW X X X
UTILIZE LARGER, HIGH QUALITY BALANCE SHEET X X
STRENGTHEN COMPETITIVE POSITION X X X
ATTAIN LARGE CAP MULTIPLE X X X
PREPARE FOR RESTRUCTURING X
</TABLE>
[NSP LOGO]
[NCE LOGO]
<PAGE> 16
MERGER SAVINGS
- - $1.1 billion of net operating expense savings over ten years
} 30% of merger savings captured in the first three years
ANNUAL NET MERGER SAVINGS
<TABLE>
<CAPTION>
$ MILLIONS
----------
<S> <C>
2001 $75
2002 $110
2003 $133
</TABLE>
<TABLE>
<S> <C>
INTEGRATION OF CORPORATE FUNCTIONS 70%
PURCHASING ECONOMIES 15%
OPERATIONS AND SUPPORT 10%
FUEL PROCUREMENT/JOINT DISPATCH 5%
</TABLE>
[NSP LOGO]
[NCE LOGO]
<PAGE> 17
ENHANCED EPS GROWTH OF 7% TO 9%
EPS GROWTH
Line graph showing ranges of estimated EPS growth rates.
<TABLE>
<CAPTION>
7-9% Growth Rate
With Merger
EPS Index Year
- ---------------- ----
<C> <C> <S>
100 2000 Non-Regulated Contribution 3-4%
Merger Savings Contribution 1%
107-109 2001 Regulated Contribution 3-4%
115-119 2002
123-130 2003
131-141 2004
</TABLE>
Pie Chart showing combined percentages of EPS contributions
<TABLE>
<CAPTION>
Non-Regulated Regulated
------------- ---------
<S> <C> <C>
1998 12% 88%
2003 20% 80%
</TABLE>
[NSP LOGO] [NCE LOGO]
<PAGE> 18
ATTRACTIVE DIVIDEND INCOME
Payout
1999E -- 70% [NCE LOGO]
1999E -- 72% [NSP LOGO]
60-65% [XCEL ENERGY LOGO]
- - Policy to provide financial flexibility and current income
- - $1.50 dividend to Xcel Energy and NSP shareholders
} Effectively $2.32 to NCE shareholders
- - Target payout ratio of 60-65%
[NSP LOGO] [NCE LOGO]
<PAGE> 19
INCREASED MARKET CAPITALIZATION
[XCEL ENERGY LOGO] LARGE CAP
[NCE LOGO] [NSP LOGO]
Chart of the Market Capitalization for Investor-Owned Utilities in the U.S.
showing the combined Market Capitalization of NCE and NSP to form Xcel is in
excess of $8 billion. Dated as of May 27, 1999.
[NSP LOGO] [NCE LOGO]
<PAGE> 20
SUPERIOR TOTAL RETURN
<TABLE>
<CAPTION>
[Xcel Energy LOGO] ML Electric Average
------------------ -------------------
<S> <C> <C>
Dividend Yield 5% - 6% 4% - 5%
EPS Growth 7% - 9% 4% - 5%
--------- --------
Total Return 12% - 15% 8% - 10%
</TABLE>
[NSP LOGO] [NCE LOGO]
<PAGE> 21
MANAGEMENT COMMITMENT
- - Depth and breadth of Xcel Energy management team
- - Management aligned with shareholder interests
<TABLE>
<CAPTION>
[Xcel Energy LOGO]
-------------
<S> <C>
Chairman/Vice Chairman 3 - 5X Salary
Executive and Senior VPs 2 - 4X Salary
All Other Officers 1.5 - 2X Salary
</TABLE>
[NSP LOGO] [NCE LOGO]
<PAGE> 22
TIMELINE TO COMPLETION
[Timeline Graphic]
<TABLE>
<S> <C>
MARCH 25 MERGER ANNOUNCEMENT
JUNE 28 SHAREHOLDER VOTE
JUNE-JULY STATE FILINGS
FEDERAL FILINGS
MARCH 2000-SEPTEMBER 2000 12-18 MONTHS TARGET COMPLETION DATE
</TABLE>
- - NSP and NCE have developed a proactive plan for State and Federal approvals
- - Shareholder vote scheduled for June 28, 1999 and requires a simple majority
of all eligible votes
[NSP LOGO] [NCE LOGO]
<PAGE> 23
STATE MERGER APPROVALS
Slide 23
Map showing the 4 states where Approval is Not Required which are:
Oklahoma, South Dakota, Wisconsin and Michigan and
the 8 states where Approval is Required which are:
North Dakota, Minnesota, Wyoming, Colorado, Kansas, New Mexico, Texas and
Arizona
- - Majority of utility revenues are derived from Colorado, Minnesota and Texas
[NSP LOGO] [NCE LOGO]
<PAGE> 24
REASONS TO MERGE
- - Accretive immediately
- - Provides superior pro forma total return
- - Increased balance sheet strength and flexibility
- - Enhanced trading liquidity
- - Combines complementary businesses
- - Increases scale and scope
- - Positions for competition and restructuring
[NSP LOGO] [NCE LOGO]
<PAGE> 25
[XCEL LOGO]
Creating Value...
Unlocking Opportunities for the New Millennium
<PAGE> 26
APPENDIX
<PAGE> 27
XCEL ENERGY PROFILE
<TABLE>
<CAPTION>
[NSP LOGO] [NCE LOGO] [Xcel Energy Logo]
---------- ------ ------------------
<S> <C> <C> <C>
Customer Accounts (Mil):
Electric 1.5 3.6 5.1
Gas 0.5 1.4 1.9
Total (Domestic and Int'l) 2.0 5.0 7.0
Generation (MW):
Regulated 7,149 7,984 15,133
Non-Regulated 8,669 247 8,916
Total 15,818 8,231 24,049
Transmission (Miles):
Electric 6,843 10,236 17,079
Gas (T&D) 15,730 18,041 33,771
Gas (FERC regulated) 500 -- 500
Thermal Supply 1,000 Mwt 170 Mwt 1,170 Mwt
Refuse Derived Fuel 675,000 T/yr -- 675,000 T/Yr
</TABLE>
[NSP LOGO] [NCE LOGO]
<PAGE> 28
HISTORICAL CONTRIBUTION ANALYSIS
[BAR CHART] [NSP LOGO]
<TABLE>
<CAPTION>
EPS
---------------------
1996 1997 1998
----- ----- -----
<S> <C> <C> <C>
Regulated Utility $1.79 $1.62 $1.58
NRG & Other $0.12 $0.11 $0.26
----- ----- -----
Total $1.91 $1.73 $1.84
</TABLE>
[NCE LOGO] NEW CENTURY ENERGIES
[BAR CHART]
<TABLE>
<CAPTION>
EPS
---------------------
1996 1997 1998
----- ----- -----
<S> <C> <C> <C>
Regulated Utility $2.64 $2.32 $2.76
Yorkshire & Other $0.18 $0.30
----- ----- -----
Total $2.64 $2.50 $3.06
</TABLE>
[NSP LOGO] [NCE LOGO]
<PAGE> 29
NON-REGULATED COMPLEMENTARY BUSINESSES
<TABLE>
<CAPTION>
Non- Energy
Regulated Energy Marketing
Generation Services and Trading Other
<S> <C> <C> <C>
NRG Quixx EMI Planergy/ NSP e prime Seren Utility Eng.
Cadence Eloigne
Ultra- Natural
Power Fuels
Thermal
8,669 247 $54 $9 $121 $255 $54 $114
MW MW Million Million Million Million Million Million
Sales Sales Sales Sales Sales Sales
[NSP] [NCE] [NSP] [NCE] [NSP] [NCE] [NSP] [NCE]
Combined: Combined: Combined: Combined:
8,916 MW $63 Million $376 Million $168 Million
</TABLE>
[NSP LOGO] [NCE LOGO]
<PAGE> 30
NEW CENTURY ENERGIES
PROFILE
NCE CUSTOMER GROWTH
[BAR CHART]
<TABLE>
<CAPTION>
Customers (000)
---------------------
1999 -
1997 1998 Annually
---- ---- --------
<S> <C> <C> <C>
ELECTRIC 19 34 23
GAS 27 32 25
</TABLE>
1998 CONTRIBUTION TO EARNINGS
[PIE CHART]
<TABLE>
<S> <C>
ELECTRIC 81%
NON-REGULATED 10%
GAS 9%
</TABLE>
- - $7.7 billion in assets
- - 1.6 million electric customers
} 82% residential
- - 1.0 million gas customers
} 91% residential
- - 2.4 million international customers
- - 2% electric customer growth
- - 3% gas customer growth
- - 7,984 MW regulated generation
[NSP LOGO] [NCE LOGO]
<PAGE> 31
NEW CENTURY ENERGIES -
INTERNATIONAL OPERATIONS
YORKSHIRE ENERGY GROUP PROFILE
- - NCE's wholly-owned subsidiary, New Century International, owns a 50%
interest in Yorkshire Power Group
} Yorkshire distributes and supplies electricity to two million
customers
} Actively pursuing recently deregulated gas supply business
} Yorkshire has acquired approximately 400,000 natural gas customers
- - Contributed 15% of NCE 1998 EPS
- - Capture of new gas customers key to additional EPS growth
- - Distribution price control review likely to have zero net impact
[NSP LOGO] [NCE LOGO]
<PAGE> 32
NEW CENTURY ENERGIES -
NON-REGULATED OPERATIONS
ADDITIONAL BUSINESS PROFILES
- - UTILITY ENGINEERING CORPORATION - Provides engineering, design,
construction, management and other services to utilities
- - QUIXX CORPORATION - Develops IPP and co-generation projects
- - THE PLANERGY GROUP - A leading provider of energy consulting, for
commercial & industrial customers
- - E PRIME, INC. - A non-regulated electricity and gas marketing and trading
affiliate
- - NEW CENTURY CADENCE - An internet based commercial energy services company
focused on energy efficiency/cost reduction
- - NATURAL FUELS - Sells compressed natural gas as a transportation fuel and
invests in companies that own natural gas fueling stations
[NSP LOGO] [NCE LOGO]
<PAGE> 33
NEW CENTURY ENERGIES -
ECONOMIC OUTLOOK
- - Employment growth in 1998:
} 4.3% in northern NCE counties
} 1.7% in southern NCE panhandle counties
} 1.5% nationally
- - 3.4% unemployment rate vs. 4.5% nationally
[NSP LOGO] [NCE LOGO]
<PAGE> 34
NEW CENTURY ENERGIES -
INDUSTRY RESTRUCTURING
- - Colorado:
} 18-month study bill passed May 1998
} Natural gas customer choice
- - Texas: Senate Bill 7
} Electric restructuring bill approved by House and Senate
} Currently with Governor Bush for signature
- - New Mexico: Customer choice bill passed in April 1999 to begin in 2001
- - Anticipated implementation timetable
} Colorado and Texas: 2002
} New Mexico: 2001
[NSP LOGO] [NCE LOGO]
<PAGE> 35
NEW CENTURY ENERGIES -
REGULATORY ACTIVITIES
- - Colorado: Gas rate case
} NCE: $23.4 million, 12% ROE
} CPUC oral decision (5/20/99): $14.8 million, 11.25% ROE
- New rates effective 7/1/99
- - Voluntary emissions reduction plan
- - Texas: Fuel reconciliation
[NSP LOGO] [NCE LOGO]
<PAGE> 36
NEW CENTURY ENERGIES
<TABLE>
<CAPTION>
NET INCOME (IN MILLIONS)
----------------------------------
1998 1997 1996
----- ----- -----
<S> <C> <C> <C>
Electric Utility $ 279 $ 216 $239
Gas Utility 30 27 17
International 52 36 --
Other 9 2 14
Corporate (28) (19) 2
- --------- ----- ----- -----
CONSOLIDATED (TOTAL) $ 342 $ 262 $272
EARNINGS PER SHARE $3.06 $2.50 $2.64
</TABLE>
[NSP LOGO] [NCE LOGO]
<PAGE> 37
NORTHERN STATES POWER
PROFILE
NSP CUSTOMER GROWTH
[BAR CHART]
<TABLE>
<CAPTION>
Customers (000)
---------------------
1999 -
1997 1998 Annually
---- ---- --------
<S> <C> <C> <C>
ELECTRIC 24 20 18
GAS 14 22 14
</TABLE>
[PIE CHART]
1998 CONTRIBUTION TO EARNINGS
<TABLE>
<S> <C>
ELECTRIC 80%
NON-REGULATED 14%
GAS 6%
</TABLE>
- - $7.4 billion in assets
- - 1.5 million electric customers
} 88% residential
- - .5 million gas customers
} 91% residential
- - 1.0% electric customer growth
- - 3.0% gas customer growth
- - 7,149 MW regulated generation
- - 8,669 MW non-regulated generation (1999E)
[NSP LOGO] [NCE LOGO]
<PAGE> 38
NORTHERN STATES POWER -
PIPELINE OPERATIONS
VIKING TRANSMISSION PROFILE
Map of the North Central U.S. identifying the location of the Viking
Transmission Pipeline
- 1999 Expansion $21.4 Million FERC Approved
- Continue to Sell Future Expansion
- Capacity of 460 Mcf/Day
- Average Daily Capacity Factor of 98%
and the planned Guardian Pipeline.
- 2002 in-service
- 87% Contracted
- - In the five years since NSP's acquisition, throughput has increased by 22%
- - Guardian will have an initial capacity of 750 Mcf/Day and can be expanded
to 1.1Bcf/day
[NSP LOGO] [NCE LOGO]
<PAGE> 39
NORTHERN STATES POWER -
NON-REGULATED OPERATIONS
NRG ENERGY PROFILE
- - NRG Energy maintains a 8,669 MW domestic and international portfolio of
competitive independent power facilities
} Recently acquired 4,745 MW of strategic generation assets in NEPOOL
} NRG increased contribution to NSP EPS from 11% to 15% from 1997 to
1998
} 20% contribution to NSP EPS expected in 1999
- - District heating and cooling operations among the largest in the U.S.
[NSP LOGO] [NCE LOGO]
<PAGE> 40
NORTHERN STATES POWER -
NON-REGULATED OPERATIONS
ADDITIONAL BUSINESS PROFILES
- - SEREN INNOVATIONS - Delivers high-speed internet access, telephone service,
cable TV and video-on-demand
- - ENERGY MASTERS INTERNATIONAL - Offers energy services focused on upgrading
facilities for greater energy efficiency
- - ELOIGNE COMPANY - Invests in affordable housing developments principally
within NSP service territories through the Federal Housing Tax Credit
Program
- - ULTRAPOWER - Provides non-destructive testing of underground power cables
[NSP LOGO] [NCE LOGO]
<PAGE> 41
NORTHERN STATES POWER -
ECONOMIC OUTLOOK
- - Employment growth in 1998:
} 3.0% in Minneapolis/St. Paul SMSA
} 1.5% nationally
- - 2.0% unemployment rate vs. 4.5% nationally
[NSP LOGO] [NCE LOGO]
<PAGE> 42
NORTHERN STATES POWER -
INDUSTRY RESTRUCTURING
- - Minnesota:
} Commission has directed the Dept. of Public Service to develop a
comprehensive plan for gas and electric unbundling/ retail choice/
restructuring by Jan. 1, 2001
- - North Dakota and South Dakota:
} No legislative or utility commission directives currently in place
- - Wisconsin:
} Public utilities must transfer control of transmission facilities to
an ISO or ITO by June 30, 2000
- - Michigan:
} Full retail customer choice on January 1, 2000
[NSP LOGO] [NCE LOGO]
<PAGE> 43
NORTHERN STATES POWER
<TABLE>
<CAPTION>
NET INCOME (IN MILLIONS)
-----------------------------------
1998 1997 1996
----- ----- -----
<S> <C> <C> <C>
Electric Utility $ 226 $ 200 $ 231
Gas Utility 17 22 28
NRG 42 22 20
EMI (8) (11) (9)
Other 5 4 5
- ----- ----- ----- -----
CONSOLIDATED $ 282 $ 237 $ 275
EARNINGS PER SHARE $1.84 $1.73 $1.91
</TABLE>
OPERATING MATTERS
- - Prairie Island and Monticello nuclear power plants maintain top tier INPO
ratings
[NSP LOGO] [NCE LOGO]
<PAGE> 44
FINANCIAL BENEFITS FROM MERGER
- - Accretive immediately
- - Provides superior pro forma total return
} Enhanced EPS growth of 7% to 9%
} Attractive dividend income
- - Increased balance sheet strength and flexibility
- - Enhanced trading liquidity
[NSP LOGO] [NCE LOGO]
<PAGE> 45
A BALANCED GENERATION MIX
[NCE LOGO]
[NCE PIE CHART]
<TABLE>
<S> <C>
Coal 59%
Gas/Oil 38%
Other 3%
8,231MW
</TABLE>
[XCEL Energy Logo]
[XCEL ENERGY PIE CHART]
<TABLE>
<S> <C>
Coal 51%
Nuclear 6%
Gas/Oil 39%
Other 4%
24,049MW
</TABLE>
[NSP LOGO]
[NSP PIE CHART]
<TABLE>
<S> <C>
Coal 47%
Nuclear 9%
Gas/Oil 39%
Other 5%
15,818MW
</TABLE>
[NSP LOGO] [NCE LOGO]
