Xcel Energy is a major U.S. electricity and natural gas energy
company with regulated operations in 12 Western and Midwestern
states. Formed by the merger of Denver-based New Century Energies
and Minneapolis-based Northern States Power Co., Xcel Energy
provides a comprehensive portfolio of energy-related products and
services to 3.2 million electricity customers and 1.7 million
natural gas customers through its regulated operating companies.
In terms of customers, it is the fourth-largest combination
natural gas and electricity company in the nation. Company
headquarters are located in Minneapolis.
[Source: Company Website]
Reasons to Invest:
Strong Utility Results in First Quarter
Xcel Energy's preliminary earnings for first quarter of 2003 were
$192 million, or $0.48 per share, including results of subsidiary
NRG Energy, compared with $102 million, or $0.29 per share, for
the same period in 2002. Xcel Energy's pro-forma earnings from
continuing operations, excluding NRG's operating results and a
gain on the sale of subsidiary Viking Gas Transmission
Company, were $131 million, or $0.33 per share, in the first
quarter of 2003, compared with $122 million, or $0.35 per share,
for the same period in 2002.
Total earnings increased due to discontinued operations gains
related to NRG's disposal of its Killingholme project and to Xcel
Energy's sale of Viking Gas. Earnings also increased for the
first quarter of 2003, compared with the same period in 2002, due
to sales growth at all four of Xcel Energy's largest operating
utilities. These increases were partially offset by significantly
increased operating losses at NRG.
Xcel Energy considers its results and NRG's results to be
preliminary until we determine the impact of an alternative rate
structure for certain NRG facilities in Connecticut that the
Federal Energy Regulatory Commission issued on April 28, 2003.
We continue to produce strong results at our utilities. Electric
utility sales growth to our retail customers and higher short-
term wholesale margins were the drivers of the increase in
electric utility margin in the first quarter of 2003. Our
favorable utility results reinforce our belief in our business
plan, and our ability to deliver on our financial commitments to
Xcel Energy's preliminary earnings for the first quarter of 2003
consisted of the following components:
Utility earnings from continuing operations of $146
million, or $0.37 per share, compared with $136 million, or
$0.38 cents per share, for the first quarter of 2002;
Gain on sale of Viking Gas of $21 million (net of tax), or
$0.05 per share, in 2003;
NRG earnings of $40 million, or $0.10 per share (including
discontinued operations, largely due to a $191-million
gain, or about $0.48 per share, related to an asset
disposal), compared with a net NRG loss of $20 million, or
$0.06 per share, in the first quarter of 2002; and
Other subsidiary losses and holding company costs of $0.04 per
share, compared with a loss of $0.03 per share for the first
quarter of 2002.
Xcel Energy customers in Minnesota now can choose some or all of
their electricity from renewable wind generation, as the highly
acclaimed Windsource program is extended from Colorado to
Currently, more than 25,000 Xcel Energy customers in Colorado and
New Mexico pay a slight monthly premium to purchase blocks of
wind-generated power. Now the same program is available in
With Windsource, customers can order renewable energy and Xcel
Energy will build or purchase energy from as many new wind
turbines as needed to generate the equivalent amount of
electricity purchased through the program.
In terms of customers participating, the U.S. Department of
Energy's Renewable Energy Laboratory recently ranked Windsource
as the second-largest renewable energy program in the nation.
With participation in Minnesota, Xcel Energy may end up number
The Minnesota Public Utilities Commission approved a price
premium of $2 for each 100-kilowatt-hour block of electricity
purchased monthly through the program.
Customers can choose as many blocks as they'd like, with an
average residential customer paying up to $14 extra per month for
switching over completely to wind-generated power.
[Source: Company Shareholders Report, First Quarter 2003]
Shares to Qualify = 1
Auto-reinvestment = yes
Min/Max = $50 to $100,000/year
Reinvestment Fees -
Dividend investment fees: $0.05/share
Cash investment fees: $0.05/share
Auto reinvestment fees: $0.05/share
To Transfer Units:
Transfer Agent Wells Fargo Bank Minnesota, N.A.
Shareholder Services Department
P.O. Box 64854
St. Paul, MN 55164-0854 USA
800 Nicollet Mall
Minneapolis, MN 55402
Phone: (612) 330-5500
Fax: (612) 330-5878