Investor Relations Earnings Release

Third Quarter 2008 Earnings

-- GAAP (generally accepted accounting principles) earnings were
$223 million, or $0.51 per diluted share, compared with $255
million, or $0.59 per diluted share, in 2007.

-- Ongoing diluted earnings per share were $0.51, compared with
$0.58 per share in 2007.

-- Xcel Energy narrows its 2008 earnings from continuing
operations guidance to $1.45 to $1.50 per share.
MINNEAPOLIS--(Business Wire)--
Xcel Energy Inc. (NYSE: XEL) today reported third quarter 2008
GAAP earnings of $223 million, or $0.51 per share, compared with $255
million, or $0.59 per share, in 2007. Ongoing earnings, adjusted for
certain non-recurring items, were $0.51 per share for the third
quarter of 2008, compared with $0.58 in 2007.

Ongoing and GAAP earnings for the third quarter of 2008 were lower
than last year primarily due to lower electric margins and higher
depreciation and amortization expenses. Lower electric margins were
largely due to the negative impact of cooler temperatures in the third
quarter of 2008 as well as an overall decline in residential electric
customer sales growth. The increase in depreciation expense was due to
the approval of a NSP-Minnesota remaining lives depreciation filing in
the third quarter of 2007 related to the life extension of the
Monticello nuclear plant, which served to reduced depreciation expense
in that period by approximately $31 million.

"As previously disclosed, we expected that our third quarter
earnings would decline due to the warmer than normal temperatures last
year and an adjustment that reduced depreciation expense in 2007",
said Richard C. Kelly, chairman, president and chief executive
officer. "However, we believe recently emerging macroeconomic issues
are having an adverse impact on our sales growth, particularly, our
residential sales. As a result, we now expect to be at the low-end of
the $1.45 to $1.50 per share guidance range."

Earnings Adjusted for Certain Non-recurring Items (Ongoing
Earnings - Note 7)

During 2007, Xcel Energy resolved a dispute with the IRS regarding
its corporate owned life insurance (COLI) program. Excluding the
impact of the COLI program, Xcel Energy's ongoing third quarter 2008
earnings were $223 million, or $0.51 per share, compared with third
quarter 2007 ongoing earnings of $249 million or $0.58 per share. The
following table provides a reconciliation of GAAP earnings per share
to ongoing earnings per share for 2008 and 2007.

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*T
Three months ended Nine months ended
Sept. 30, Sept. 30,
------------------ -----------------
Diluted earnings (loss) per
share 2008 2007 2008 2007
-------------------------------- --------- -------- -------- --------
Ongoing earnings per share...... $ 0.51 $ 0.58 $ 1.10 $1.12
PSR Investments Inc. (PSRI)/COLI
IRS settlement................. -- 0.01 -- (0.09)
--------- -------- -------- --------
Earnings per share -
continuing operations........ 0.51 0.59 1.10 1.03
Income from discontinued
operations..................... -- -- -- 0.01
--------- -------- -------- --------
GAAP earnings per share....... $ 0.51 $ 0.59 $ 1.10 $1.04
========= ======== ======== ========
*T

At 9 a.m. CDT today, Xcel Energy will host a conference call to
review third quarter financial results. To participate in the call,
please dial in five to 10 minutes prior to the start and follow the
operator's instructions.

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US Dial-In: (800) 257-7063
International Dial-In: (303) 262-2005
*T

The conference call also will be simultaneously broadcast and
archived on Xcel Energy's Web site at www.xcelenergy.com. To access
the presentation, click on Investor Information. If you are unable to
participate in the live event, the call will be available for replay
from 11 a.m. CDT on October 23 through 11:59 p.m. CDT on October 24.

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*T
Replay Numbers
-------------------------

US Dial-In: (800) 405-2236
International Dial-In: (303) 590-3000
Access Code: 11120556#
*T

Except for the historical statements contained in this release,
the matters discussed herein, including our 2008 full year EPS
guidance and assumptions, are forward-looking statements that are
subject to certain risks, uncertainties and assumptions. Such
forward-looking statements are intended to be identified in this
document by the words "anticipate," "believe," "estimate," "expect,"
"intend," "may," "objective," "outlook," "plan," "project,"
"possible," "potential," "should" and similar expressions. Actual
results may vary materially. Forward-looking statements speak only as
of the date they are made, and we do not undertake any obligation to
update them to reflect changes that occur after that date. Factors
that could cause actual results to differ materially include, but are
not limited to: general economic conditions, including the
availability of credit and its impact on capital expenditures and the
ability of Xcel Energy and its subsidiaries to obtain financing on
favorable terms; business conditions in the energy industry; actions
of credit rating agencies; competitive factors, including the extent
and timing of the entry of additional competition in the markets
served by Xcel Energy and its subsidiaries; unusual weather; effects
of geopolitical events, including war and acts of terrorism; state,
federal and foreign legislative and regulatory initiatives that affect
cost and investment recovery, have an impact on rates or have an
impact on asset operation or ownership; structures that affect the
speed and degree to which competition enters the electric and natural
gas markets; costs and other effects of legal and administrative
proceedings, settlements, investigations and claims; actions of
accounting regulatory bodies; and the other risk factors listed from
time to time by Xcel Energy in reports filed with the Securities and
Exchange Commission (SEC), including Risk Factors in Item 1A and
Exhibit 99.01 of Xcel Energy's Annual Report on Form 10-K for the year
ended Dec. 31, 2007.

This information is not given in connection with any sale, offer
for sale or offer to buy any security.

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*T
XCEL ENERGY INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

Three Months Ended Nine Months Ended
Sept. 30, Sept. 30,
---------------------- ----------------------
(Amounts in Thousands,
Except Per Share
Data) 2008 2007 2008 2007
---------------------- ---------- ---------- ---------- ----------
Operating revenues....
Electric utility.... $2,576,467 $2,199,533 $6,704,164 $5,935,031
Natural gas utility. 258,961 184,161 1,736,701 1,442,451
Other............... 16,252 16,303 54,718 53,469
---------- ---------- ---------- ----------
Total operating
revenues......... 2,851,680 2,399,997 8,495,583 7,430,951

Operating expenses
Electric fuel and
purchased power --
utility............ 1,513,935 1,101,844 3,871,437 3,113,314
Cost of natural gas
sold and
transported --
utility............ 155,804 89,245 1,298,731 1,049,601
Cost of sales --
other.............. 4,528 4,452 14,095 14,179
Other operating and
maintenance
expenses........... 422,560 422,527 1,340,362 1,301,740
Conservation and
demand-side
management program
expenses........... 27,483 34,600 92,278 76,018
Depreciation and
amortization....... 209,131 186,460 622,512 603,531
Taxes (other than
income taxes)...... 70,245 66,024 218,220 210,437
---------- ---------- ---------- ----------
Total operating
expenses......... 2,403,686 1,905,152 7,457,635 6,368,820
---------- ---------- ---------- ----------
Operating income...... 447,994 494,845 1,037,948 1,062,131

Interest and other
income, net.......... 10,290 3,002 29,105 3,170
Allowance for funds
used during
construction - equity 16,319 9,023 45,478 25,294

Interest charges and
financing costs
Interest charges --
includes other
financing costs of
$5,162, $4,924,
$15,294 and
$16,518,
respectively....... 139,777 137,451 405,671 390,427
Interest and
penalties related
to COLI settlement. -- 2,190 -- 43,401
Allowance for funds
used during
construction - debt (9,625) (8,481) (28,748) (24,129)
---------- ---------- ---------- ----------
Total interest
charges and
financing costs.. 130,152 131,160 376,923 409,699

Income from continuing
operations before
income taxes......... 344,451 375,710 735,608 680,896
Income taxes.......... 121,756 120,990 253,446 239,967
---------- ---------- ---------- ----------
Income from continuing
operations........... 222,695 254,720 482,162 440,929
Income (loss) from
discontinued
operations, net of
tax.................. 94 97 (684) 2,376
---------- ---------- ---------- ----------
Net income............ 222,789 254,817 481,478 443,305
Dividend requirements
on preferred stock... 1,060 1,060 3,180 3,180
---------- ---------- ---------- ----------
Earnings available to
common shareholders.. $ 221,729 $ 253,757 $ 478,298 $ 440,125
========== ========== ========== ==========

Weighted average
common shares
outstanding
Basic............... 434,131 419,822 431,511 413,555
Diluted............. 439,397 433,387 436,716 432,811
Earnings per share --
basic
Income from
continuing
operations......... $ 0.51 $ 0.60 $ 1.11 $ 1.06
Income from
discontinued
operations......... -- -- -- --
---------- ---------- ---------- ----------
Earnings per share
-- basic........... $ 0.51 $ 0.60 $ 1.11 $ 1.06
========== ========== ========== ==========
Earnings per share --
diluted
Income from
continuing
operations......... $ 0.51 $ 0.59 $ 1.10 $ 1.03
Income from
discontinued
operations......... -- -- -- 0.01
---------- ---------- ---------- ----------
Earnings per share
-- diluted......... $ 0.51 $ 0.59 $ 1.10 $ 1.04
========== ========== ========== ==========

Cash dividends
declared per common
share................ $ 0.24 $ 0.23 $ 0.71 $ 0.68
*T

XCEL ENERGY INC. AND SUBSIDIARIES

Notes to Investor Relations Release (Unaudited)

Due to the seasonality of Xcel Energy's operating results,
quarterly financial results are not an appropriate base from which to
project annual results.

Note 1. Earnings per Share Summary

The following table summarizes the diluted earnings per share
contributions of Xcel Energy's businesses:

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*T
Three months ended Nine months ended
September 30, September 30,
------------------ -----------------
Diluted earnings (loss) per
share 2008 2007 2008 2007
------------------------------- -------- -------- -------- -------
Regulated utility - continuing
operations (Note 2)........... $ 0.54 $ 0.61 $ 1.21 $ 1.21
Holding company and other costs (0.03) (0.03) (0.11) (0.09)
-------- -------- -------- -------
Earnings per share - ongoing
operations.................. 0.51 0.58 1.10 1.12
PSRI/COLI IRS settlement (Note
7)............................ -- 0.01 -- (0.09)
-------- -------- -------- -------
Earnings per share -
continuing operations....... 0.51 0.59 1.10 1.03
Income from discontinued
operations.................... -- -- -- 0.01
-------- -------- -------- -------
Total earnings per share..... $ 0.51 $ 0.59 $ 1.10 $ 1.04
======== ======== ======== =======
*T

The following table summarizes significant components contributing
to the changes in the third quarter of 2008 diluted earnings per
share, compared with the same period in 2007, which are discussed in
more detail later in this release.

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*T
Three months Nine months
ended Sept. 30, ended Sept. 30,
=============== ===============
2007 GAAP earnings per share........ $ 0.59 $ 1.04
Earnings per share -- discontinued
operations....................... -- (0.01)
--------------- ---------------
2007 GAAP earnings per share-
continuing operations.............. 0.59 1.03

PSRI/COLI IRS settlement.......... (0.01) 0.09
--------------- ---------------
2007 ongoing earnings per share..... 0.58 1.12

Components of change -- 2008 vs.
2007
Higher (lower) base electric
utility margins.................. (0.04) 0.02
Higher depreciation and
amortization expense............. (0.03) (0.03)
Lower wholesale and commodity
trading margins.................. (0.01) (0.01)
Higher allowance for funds used
during construction - equity..... 0.02 0.05
Higher natural gas margins........ 0.01 0.06
Lower (higher) conservation and
demand-side management program
expenses......................... 0.01 (0.02)
Higher operating and maintenance
expense.......................... -- (0.06)
Higher financing costs............ -- (0.02)
Other, including income taxes..... (0.03) (0.01)
--------------- ---------------
2008 GAAP earnings per share........ $ 0.51 $ 1.10
=============== ===============
*T

Note 2. Regulated Utility Results -- Continuing Operations

Estimated Impact of Temperature Changes on Regulated Earnings --
The following table summarizes the estimated impact of temperature
variations on utility results, compared with sales under normal
weather conditions.

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*T
Three months ended Nine months ended
Sept. 30, Sept. 30,
--------------------------- ---------------------------
2008 vs. 2007 vs. 2008 vs. 2008 vs. 2007 vs. 2008 vs.
Normal Normal 2007 Normal Normal 2007
-------- -------- -------- -------- -------- --------
Retail
electric... $(0.01) $0.04 $(0.05) $(0.01) $0.06 $(0.07)
Firm natural
gas........ -- -- -- 0.01 -- 0.01
-------- -------- -------- -------- -------- --------
Total..... $(0.01) $0.04 $(0.05) $ -- $0.06 $(0.06)
======== ======== ======== ======== ======== ========
*T

Sales Growth -- The following table summarizes Xcel Energy's
regulated utility growth for actual and weather-normalized energy
sales for the three- and nine-month periods ended Sept. 30, 2008,
compared with the same periods in 2007.

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*T
Three months ended Nine months ended
Sept. 30, Sept. 30,(a)
--------------------- ---------------------
Actual Normalized Actual Normalized
-------- ---------- -------- ----------
Electric residential (7.3)% (2.2)% (2.7)% 0.0%
Electric commercial and
industrial 0.4 2.3 1.4 2.6
Total retail electric
sales (1.9) 1.0 0.3 1.8
Firm natural gas
sales(b) 31.2 22.2 5.9 2.2
*T

During the third quarter, we experienced a decline in electric
residential customer sales, particularly in the NSP-Minnesota region.
We believe the lower sales growth is a reflection of a recent shift in
customer behavior, in part, attributable to the overall economic
conditions as well as conservation efforts.

(a) The year-to-date normalized sales growth amounts have been
adjusted for leap day.

(b) Due to the low volume of natural gas sales for the third
quarter, the firm gas sales increase is not a meaningful number or
indicative of a trend.

Base Electric Utility, Short-term Wholesale and Commodity Trading
Margins -- The following table details the revenues and margin for
base electric utility, short-term wholesale and commodity trading
activities that are included in continuing operations:

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*T
Base
Electric Short-term Commodity Consolidated
(Millions of dollars) Utility Wholesale Trading Total
----------------------- -------- ---------- --------- ------------
Three months ended
Sept. 30, 2008
Electric utility
revenues (excluding
commodity trading).... $2,527 $48 $-- $2,575
Electric fuel and
purchased power
utility............... (1,467) (47) -- (1,514)
Commodity trading
revenues.............. -- -- 51 51
Commodity trading
expenses.............. -- -- (50) (50)
-------- ---------- --------- ------------
Gross margin before
operating expenses.... $1,060 $ 1 $ 1 $1,062
======== ========== ========= ============
Margin as a percentage
of revenues........... 41.9% 2.1% 2.0% 40.4%

Three months ended
Sept. 30, 2007
Electric utility
revenues (excluding
commodity trading).... $2,129 $69 $-- $2,198
Electric fuel and
purchased power-
utility............... (1,041) (61) -- (1,102)
Commodity trading
revenues.............. -- -- 74 74
Commodity trading
expenses.............. -- -- (72) (72)
-------- ---------- --------- ------------
Gross margin before
operating expenses.... $1,088 $ 8 $ 2 $1,098
======== ========== ========= ============
Margin as a percentage
of revenues........... 51.1% 11.6% 2.7% 48.3%
*T

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*T
Base
Electric Short-term Commodity Consolidated
(Millions of dollars) Utility Wholesale Trading Total
----------------------- -------- ---------- --------- ------------
Nine months ended Sept.
30, 2008
Electric utility
revenues (excluding
commodity trading).... $6,536 $164 $-- $6,700
Electric fuel and
purchased power
utility............... (3,722) (149) -- (3,871)
Commodity trading
revenues.............. -- -- 118 118
Commodity trading
expenses.............. -- -- (114) (114)
-------- ---------- --------- ------------
Gross margin before
operating expenses.... $2,814 $ 15 $ 4 $2,833
======== ========== ========= ============
Margin as a percentage
of revenues........... 43.1% 9.1% 3.4% 41.6%

Nine months ended Sept.
30, 2007
Electric utility
revenues (excluding
commodity trading).... $5,745 $184 $-- $5,929
Electric fuel and
purchased power-
utility............... (2,946) (167) -- (3,113)
Commodity trading
revenues.............. -- -- 227 227
Commodity trading
expenses.............. -- -- (221) (221)
-------- ---------- --------- ------------
Gross margin before
operating expenses.... $2,799 $ 17 $ 6 $2,822
======== ========== ========= ============
Margin as a percentage
of revenues........... 48.7% 9.2% 2.6% 45.8%
*T

Note -- The short-term wholesale and commodity trading results in
the above table reflect the estimated impacts of the regulatory
sharing of certain margins.

Base Electric Utility Margin

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Three months Nine months
ended Sept. 30, ended Sept. 30,
(Millions of dollars) 2008 vs. 2007 2008 vs. 2007
------------------------------------ --------------- ---------------
Estimated impact of weather......... $(32) $(48)
Nuclear refueling outage revenue,
subject to refund due to change in
recovery method.................... (17) (17)
Firm wholesale...................... (4) (2)
Retail customer sales mix........... (2) (11)
Purchased capacity costs............ (1) (5)
Retail rate increases (Wisconsin and
North Dakota interim).............. 13 32
Metropolitan Emissions Reduction
Project (MERP) rider............... 7 17
Conservation and non-fuel riders.... 4 18
Sales growth (excluding weather
impact)............................ 2 24
Increased margin due to leap year
(weather normalized impact)........ -- 9
Other, including fuel recovery,
handling and procurement and net
transmission revenue............... 2 (2)
--------------- ---------------
Total (decrease) increase in base
electric utility margin.......... $(28) $ 15
=============== ===============
*T

Natural Gas Utility Margins - The following table details the
changes in natural gas utility revenues and margin. The cost of
natural gas tends to vary with changing sales requirements and the
unit cost of natural gas purchases. However, due to purchased natural
gas cost recovery mechanisms for sales to retail customers,
fluctuations in the cost of natural gas have little effect on natural
gas margin.

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*T
Three months ended Nine months ended
Sept. 30, Sept. 30,
------------------ -----------------
(Millions of dollars) 2008 2007 2008 2007
------------------------------- --------- ------- -------- -------

Natural gas utility revenues... $ 259 $184 $ 1,737 $1,442
Cost of natural gas sold and
transported................... (156) (89) (1,299) (1,050)
--------- ------- -------- -------
Natural gas utility margin..... $ 103 $ 95 $ 438 $ 392
========= ======= ======== =======
*T

The following table summarizes the components of the changes in
natural gas margin for the three and nine months ended Sept. 30:

Natural Gas Margin

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Three months Nine months
ended ended
Sept. 30, Sept. 30,
2008 vs. 2008 vs.
(Millions of dollars) 2007 2007
-------------------------------------------- ------------ -----------
Base rate changes - Minnesota, Colorado and
Wisconsin $ 5 $ 25
Sales growth (excluding weather impact) 3 4
Estimated impact of weather 1 8
Conservation revenue 1 4
Transportation (1) 1
Increased margin due to leap year (weather
normalized impact) -- 1
Other (1) 3
------------ -----------
Total increase in natural gas margin $ 8 $ 46
============ ===========
*T

Other operating and maintenance expenses -- Other operating and
maintenance expenses for the third quarter of 2008 remained consistent
as compared with the same period in 2007. Other operating and
maintenance expenses for the first nine months of 2008 increased $39
million, or 3.0 percent, compared with the same period in 2007. The
following table summarizes the components of the changes in other
operating and maintenance expenses for the three and nine months ended
Sept. 30:

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*T
Three months Nine months
ended ended
Sept. 30, Sept. 30,
2008 vs. 2008 vs.
(Millions of dollars) 2007 2007
------------------------------------------- ------------ -----------
Nuclear outage expenses, net of deferral $ (14) $ (18)
Lower employee benefit costs (12) (18)
Higher labor costs 9 23
Higher consulting costs 8 15
Higher plant generation costs 5 24
Higher contract labor 3 9
Other, including nuclear plant operation
costs 1 4
------------ -----------
Total increase in other operating and
maintenance expenses $ -- $ 39
============ ===========
*T

The following provides an explanation of certain items listed in
the table above:

-- The decline in nuclear outage expense is due to the Minnesota
Public Utilities Commission (MPUC), North Dakota Public
Service Commission (NDPSC) and South Dakota Public Utilities
Commission (SDPUC) approving the change in accounting from the
direct expense method to the deferral and amortization method,
effective Jan. 1, 2008.

-- The increase in labor costs was attributable to annual wage
increases, the insourcing of certain functions and additional
employees to support system growth.

-- The higher plant generation costs were primarily attributable
to scheduled and unplanned maintenance.

-- Lower current period and year-to-date employee benefit costs
are due to adjustments related to our performance based
incentive plan.

Depreciation and amortization -- Depreciation and amortization
expense increased by approximately $22.7 million, or 12.2 percent, for
the third quarter of 2008, and $19.0 million, or 3.1 percent for the
first nine months of 2008, compared with the same periods in 2007.

The third quarter increase is primarily due to the MPUC approval
of Northern States Power Co. (NSP)-Minnesota's remaining lives
depreciation filing in the third quarter of 2007, extending the life
of the Monticello plant by 20 years. This decision was retroactive to
the beginning of the year and reduced depreciation expense by
approximately $31 million in the third quarter of 2007; however, it
did not impact depreciation expense for the first two quarters of
2007. The year-to-date increase was due to planned system expansion
partially offset by a decrease in depreciation expense due to the MPUC
approval of two NSP-Minnesota depreciation filings in September 2008.

Conservation and Demand Side Management (DSM) -- Conservation and
DSM expense decreased approximately $7.1 million, or 20.6 percent for
the third quarter of 2008 and increased $16.3 million, or 21.4
percent, for the first nine months of 2008, compared to the same
periods in 2007. The higher expense for the first nine months of 2008
is attributable to the ongoing expansion of programs and is designed,
in part, to meet regulatory commitments. Conservation and DSM program
expenses are generally recovered through rates or rider mechanisms in
Xcel Energy's various jurisdictions.

Interest and other income, net -- Interest and other income
increased by $7.3 million for the third quarter of 2008, and $25.9
million for the first nine months of 2008, compared with the same
periods in 2007. The increase is primarily the result of PSRI
terminating the COLI program in 2007, which eliminated certain
expenses.

Allowance for funds used during construction, equity and debt
(AFUDC) -- AFUDC increased by approximately $8.4 million for the third
quarter of 2008, and $24.8 million for the first nine months of 2008
when compared with the same periods in 2007. The increase was due
primarily to the construction of Comanche 3 and other construction
projects.

Income taxes -- Income taxes for continuing operations increased
by $1 million for the third quarter of 2008, compared with 2007. The
effective tax rate for continuing operations was 35.3 percent for the
third quarter of 2008, compared with 32.2 percent for the same period
in 2007. The higher effective tax rate for third quarter 2008 as
compared with 2007 was primarily due to benefits from the COLI
policies in the third quarter of 2007. Without these benefits, the
effective tax rate for the third quarter of 2007 would have been 34.8
percent.

Income taxes for continuing operations increased by $13 million
for the first nine months of 2008, compared with 2007. The increase in
income tax expense was primarily due to an increase in pretax income
in 2008. The effective tax rate for continuing operations was 34.5
percent for the first nine months of 2008, compared with 35.2 percent
for the same period in 2007.

Note 3. Xcel Energy Capital Structure and Financing

Following is the preliminary capital structure of Xcel Energy at
Sept. 30, 2008:

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*T
Percentage of
Balance at Total
(Billions of dollars) Sept. 2008 Capitalization
----------------------------------------- ------------ --------------
Current portion of long-term debt........ $ 1.0 6%
Short-term debt.......................... 0.3 2
Long-term debt........................... 7.5 48
------------ --------------
Total debt............................. 8.8 56

Preferred equity......................... 0.1 1
Common equity............................ 6.8 43
------------ --------------
Total equity........................... 6.9 44

------------ --------------
Total capitalization................... $15.7 100%
============ ==============
*T

Xcel Energy generally expects to fund its operations and capital
investments through internally generated funds and by periodically
issuing short-term debt, long-term debt, common stock, preferred stock
and hybrid securities.

During the third quarter of 2008, Xcel Energy issued the following
securities.

-- In August of 2008, we issued $600 million of first mortgage
bonds at PSCo. The bond issuance was made up of two tranches
$300 million with a 10-year maturity and an interest rate
coupon of 5.8 percent and $300 million with a 30-year maturity
and an interest rate coupon of 6.5 percent.

-- In September of 2008, we issued $200 million of first mortgage
bonds at NSP-Wisconsin with a 30-year maturity and an interest
rate coupon of 6.375 percent.

-- In September 2008, we issued approximately 17.25 million
shares of common stock for approximately $345 million.

Current debt financing plans for the rest of 2008 include the
following:

-- Issuing up to $250 million unsecured bonds at Southwestern
Public Service Company (SPS) in either late 2008 or early
2009.

These financing plans are subject to change, depending on capital
expenditures, internal cash generation, market conditions and other
factors.

Note 4. Liquidity

General -- As a result of recent volatile conditions in global
capital markets, including the bankruptcy filing of Lehman Brothers
Holdings, Inc (Lehman), general liquidity in short-term credit markets
has been constrained despite several pro-active intervention measures
undertaken by the Federal Reserve, the Department of the Treasury, the
United States Congress and the President of the United States. Xcel
Energy has maintained access to short-term liquidity through the A2/P2
commercial paper market and utilization of direct borrowing on certain
committed credit agreements. In addition, Xcel Energy's overall
liquidity through the third quarter was strengthened by the issuance
of long-term debt, equity and hybrid securities completed during the
third quarter and earlier in 2008. The proceeds from these financings
were used to refinance maturing debt obligations, repay short-term
debt and general corporate purposes.

The Reserve Primary Fund -- On Sept. 17, 2008, NSP-Wisconsin
redeemed a $40 million principal investment held in The Reserve
Primary Fund (the Fund) at $0.97 per share, resulting in a loss of
$1.2 million. . This redemption occurred following an announcement by
the Fund on Sept. 16, 2008 that the net asset value of the Fund had
declined to $0.97 per share following a $785 million write-off of
securities issued by Lehman.

On Sept. 29, 2008, the Fund issued an announcement that its Board
of Trustees had voted to liquidate its assets and to make a cash
distribution to investors in the Fund, including investors who had
submitted redemption orders that had not been funded. A total
distribution of $20 billion, which represents 32 percent of the Fund's
total assets as of Sept. 12, 2008, will be made to all investors pro
rata in proportion to the number of shares each investor held.
NSP-Wisconsin's pro rata share of this distribution is projected to be
approximately $10 million.

The Fund's Board of Trustees is working with the SEC to develop a
plan to distribute the remaining assets of the Fund in a fair and
equitable manner to all shareholders. The Fund cannot currently
estimate when additional distributions to investors will be made.

Long-term Investments -- The recent volatility in global capital
markets has lead to a reduction in the current value of long-term
investments held in Xcel Energy's nuclear decommissioning trust fund
and pension fund.

The nuclear decommissioning trust fund invests in a diversified
portfolio of taxable and municipal fixed income securities and equity
securities. At Sept. 30, 2008, the total value of the nuclear
decommissioning trust fund was approximately $1.187 billion as
compared to $1.318 billion at December 31, 2007. Realized and
unrealized gains and losses on nuclear decommissioning fund
investments are deferred as a component of a nuclear decommissioning
regulatory asset or liability on Xcel Energy's consolidated balance
sheet.

Xcel Energy's pension assets are invested in a diversified
portfolio of domestic and international equity securities, fixed
income securities, real estate and alternative investments, including
private equity funds and a commodities index. At Sept. 30, 2008, the
total value of the pension assets was $2.569 billion as compared to
$3.186 billion at Dec. 31, 2007. The recent decline in asset value for
the plan could require additional future funding requirements greater
than the $35 million annual contribution that Xcel Energy funded
earlier this year to one of its plans.

Commodity Trading -- On Sept. 14, 2008, Lehman filed bankruptcy.
Xcel Energy has no direct credit exposure in its
short-term wholesale and commodity trading activity to Lehman, or its
subsidiaries. Xcel Energy has been informed by PJM, a regional
transmission organization operating primarily in the mid-Atlantic,
that Lehman has defaulted on a guaranty issued to a Lehman subsidiary
operating within the PJM market, and this technical default has not
been cured. According to PJM rules, the Lehman subsidiary will be
required to liquidate its positions within the PJM market, if this
technical default is not cured. Any losses encountered during a
liquidation of PJM positions will be socialized to all PJM market
participants, which includes certain Xcel Energy utility subsidiaries.
Xcel Energy has no additional information to quantify the risk to PJM
given this default. However, given the level of activity the Xcel
Energy utility subsidiaries conduct in the PJM market, Xcel Energy
believes the impact will be immaterial.

Commercial Paper -- Xcel Energy, NSP-Minnesota, PSCo and SPS each
have individual commercial paper programs. The authorized levels for
these commercial paper programs are:

-- $800 million for Xcel Energy,

-- $500 million for NSP-Minnesota,

-- $700 million for PSCo, and

-- $250 million for SPS.

Xcel Energy and Utility Subsidiary Credit Facilities -- As of
Oct. 21, 2008, Xcel Energy had the following credit facilities
available to meet its liquidity needs:

-0-
*T
(Millions of
Dollars)
Company Facility(1) Drawn(2) Available Cash(3) Liquidity Maturity
------------ ----------- -------- --------- ------- --------- --------
NSP- December
Minnesota.. $ 482.2 $ 6.0 $ 476.2 $ 44.1 $ 520.3 2011
PSCo........ December
675.1 7.4 667.7 87.7 755.4 2011
SPS......... December
244.6 140.1 104.5 74.9 179.4 2011
Xcel Energy
- Holding December
Company.... 771.6 428.7 342.9 21.2 364.1 2011
Other....... -- -- -- 83.1 83.1
----------- -------- --------- ------- ---------
Total..... $2,173.5 $582.2 $1,591.3 $311.0 $1,902.3
=========== ======== ========= ======= =========
*T

On Oct. 10, 2008, Xcel Energy borrowed $250 million under the Xcel
Energy $800 million credit agreement and SPS borrowed $125 million
under the SPS $250 million credit agreement. Xcel Energy and SPS took
these steps to provide additional certainty of short-term funding
until liquidity improves in the A2/P2 commercial paper market. Both of
these borrowings are Alternative Borrowing Rate (ABR) loans bearing
interest at 4.5 percent and are due and payable on Dec. 11, 2011. All
or a portion of these loans may be prepaid in advance of the due date.
These are the only direct borrowings outstanding on Xcel Energy's and
its subsidiaries' credit agreements. Subject to the terms and
conditions of each of the credit agreements, funds are available for
borrowing under each facility through the day prior to the expiration
date.

(1) Reflects a reduction in the commitments resulting from the
Lehman Brothers bankruptcy, which reduce the credit facilities by $80
million, collectively.

(2) Includes direct borrowings, outstanding commercial paper and
letters of credit.

(3) Reflects the payment of common dividends on Oct. 20, 2008.

Listed below is a summary of the banks that make up the credit
facilities of Xcel Energy and its subsidiaries as of Oct. 21 2008:

-0-
*T
(Millions of
Dollars)
Xcel Energy NSP-
Bank Holding Co PSCo SPS Minnesota Total
----------------- ----------- -------- ------- --------- --------
Barclays Bank $ 54.22 $ 47.44 $ 16.94 $ 33.90 $ 152.50
JP Morgan 54.22 47.44 16.94 33.90 152.50
Bank of America 42.67 37.33 13.33 26.67 120.00
Bank of NY 42.67 37.33 13.33 26.67 120.00
Bank of
Tokyo/Mitsubishi 42.67 37.33 13.33 26.67 120.00
BMO Capital
Markets 42.67 37.33 13.33 26.67 120.00
BNP Paribas 42.67 37.33 13.33 26.67 120.00
Citibank 42.67 37.33 13.33 26.67 120.00
Key Bank 42.67 37.33 13.33 26.67 120.00
Morgan Stanley
Bank 42.67 37.33 13.33 26.67 120.00
Royal Bank of
Scotland 42.67 37.33 13.33 26.67 120.00
Scotia Capital 42.67 37.33 13.33 26.67 120.00
UBS 42.67 37.33 13.33 26.67 120.00
Wells Fargo 42.67 37.33 13.33 26.67 120.00
Credit Suisse 28.44 24.89 8.89 17.78 80.00
Goldman Sachs 28.44 24.89 8.89 17.78 80.00
Merrill Lynch 28.44 24.89 8.89 17.78 80.00
Mizuho 28.44 24.89 8.89 17.78 80.00
US Bank 28.44 24.89 8.89 17.78 80.00
Amarillo National
Bank 8.89 7.78 2.78 5.55 25.00
Sumitomo -- -- 3.50 -- 3.50
Lehman Brothers
Bank -- -- -- -- --
----------- -------- ------- --------- --------
Total $ 771.57 $ 675.07 $ 244.57 $ 482.29 $2,173.50
=========== ======== ======= ========= ========
*T

Credit Agency Ratings -- Short-term borrowing, as a source of
funding, is affected by regulatory actions and access to reasonably
priced capital markets. This access is dependent in part on credit
agency reviews and ratings. The following ratings reflect the views of
Moody's Investor Services, Inc., Standard & Poor's Ratings Services,
and Fitch Ratings. A security rating is not a recommendation to buy,
sell or hold securities and is subject to revision or withdrawal at
any time by the rating agency. As of Oct. 20, 2008, the following
table represents the credit ratings assigned to various Xcel Energy
companies:

-0-
*T
Company Credit Type Moody's Standard & Poor's Fitch
------------- --------------------- -------- ----------------- -------
Xcel Energy Senior Unsecured Debt Baa1 BBB BBB+
Xcel Energy Commercial Paper P-2 A-2 F2
NSP-Minnesota Senior Unsecured Debt A3 BBB A
NSP-Minnesota Senior Secured Debt A2 A A+
NSP-Minnesota Commercial Paper P-2 A-2 F1
NSP-Wisconsin Senior Unsecured Debt A3 BBB+ A
NSP-Wisconsin Senior Secured Debt A2 A A+
PSCo Senior Unsecured Debt Baa1 BBB A-
PSCo Senior Secured Debt A3 A A
PSCo Commercial Paper P-2 A-2 F2
SPS Senior Unsecured Debt Baa1 BBB+ BBB+
SPS Commercial Paper P-2 A-2 F2
*T

Note 5. Rates and Regulation

NSP - Minnesota - North Dakota electric rate case - On Dec. 7,
2007, NSP-Minnesota filed with the NDPSC, a request to increase
electric rates by $20.5 million, which would be an $18.2 million
impact to NSP-Minnesota due to the transfer of certain costs and
revenues between base rates and the fuel cost recovery mechanism. The
request is based on a common equity ratio of 51.77 percent, a return
on equity (ROE) of 11.5 percent and a rate base of approximately $242
million. Interim rates of $17.2 million were effective on Feb. 5,
2008.

NSP-Minnesota and the NDPSC staff reached a stipulation in which
both parties recommended an ROE of 10.75 percent, with a sharing
mechanism for earnings above 10.75 percent. This stipulation is
subject to approval by the NDPSC. In June 2008, NSP-Minnesota filed
rebuttal testimony and reduced its requested rate increase to $17.9
million, a net impact of $15.7 million to NSP-Minnesota, which
reflects a 10.75 percent ROE and other adjustments.

Evidentiary hearings were held in June 2008. The updated NDPSC
advocacy staff's overall recommendation following the hearing is a
base rate increase of $4.9 million, a net impact of $2.5 million to
NSP-Minnesota, with recommended disallowances for costs associated
with NSP-Minnesota's compliance with Minnesota renewable energy
requirements, investments in environmental improvements and power
plant life extensions through NSP-Minnesota's MERP, and recommended
changes in treatment of depreciation costs.

In its briefs that were filed in August and October 2008, the
advocacy staff has suggested that, in the alternative to its earlier
recommendations in testimony, NDPSC could dismiss the rate case on the
basis that NSP-Minnesota did not meet the burden of proof. The NDPSC
will likely make a decision regarding the rate case in early November,
with final rates expected to be effective in the first quarter of
2009.

Nuclear refueling outage costs -- In November 2007, NSP-Minnesota
filed a request asking for a change in the recovery method for costs
associated with refueling outages at its nuclear plants. The request
sought approval to amortize refueling outage costs over the period
between refueling outages to better match revenue and expenses. This
request would have reduced 2008 expenses for the NSP-Minnesota
jurisdiction by approximately $25 million due to deferral and
amortization over an 18-month period versus expensed as incurred.

In September 2008, the MPUC authorized NSP-Minnesota to use a
deferral and amortization method for the nuclear refueling O&M costs
effective Jan. 1, 2008 with certain modifications. The ruling reduced
O&M expenses, but also resulted in revenue deferrals. The net result
is a positive adjustment to third quarter earnings of approximately
$14 million and an estimated impact to full year earnings of
approximately $18 million.

In late 2007, NSP-Minnesota filed with both the NDPSC and the
SDPUC a comparable request asking for a change in the recovery method
for costs associated with refueling outages at its nuclear plants. In
February 2008, the NDPSC approved the request, indicating that
appropriate cost recovery levels would be determined in the pending
electric rate case. In October 2008, the SDPUC also approved the
request to change the accounting method.

SPS - New Mexico electric rate case - In July 2007, SPS filed with
the New Mexico Public Regulation Commission (NMPRC) requesting a New
Mexico retail electric general rate increase of $17.3 million
annually, or 6.6 percent. The rate filing was based on a 2006 test
year adjusted for known and measurable changes and included a
requested ROE of 11.0 percent, an electric rate base of approximately
$307.3 million and an equity ratio of 51.2 percent.

On Aug. 26, 2008, the NMPRC issued its final order authorizing an
overall rate increase of $10.8 million based on a 10.18 percent ROE.
This increase is based on a $7 million electric base rate increase and
a rider to recover $3.8 million of restructuring costs. The NMPRC
disallowed $3.5 million in rate base for historical DSM expenditures
and certain rate case and prepaid pension expenses.

SPS implemented the base rates on Sept. 14, 2008. On Sept. 25,
2008, SPS filed for rehearing on certain issues. On Oct. 14, 2008, the
NMPRC denied SPS' motion for rehearing.

SPS - Texas electric retail rate case - On June 12, 2008, SPS
filed a rate case with Public Utility Commission of Texas (PUCT),
seeking an annual rate increase of approximately $61.3 million, or
approximately 5.9 percent. Base revenues are proposed to increase by
$94.4 million, while fuel and purchased power revenue will decline by
$33.1 million, primarily due to fuel savings from the Lea Power
Partners LLC (LPP) purchase power agreement.

The rate filing is based on a 2007 test-year adjusted for known
and measurable changes and includes a requested ROE of 11.25 percent,
an electric rate base of $989.4 million and an equity ratio of 51.0
percent. In SPS' last Texas rate case, the parties agreed that in its
next rate case SPS could request annually interim rate relief of $18
million for costs associated with the LPP power purchase agreement.
The interim rates went into effect when the LPP power plant came on
line in September 2008.

On Oct.13, 2008, the Office of Public Utility Counsel (OPUC), the
Association of Xcel Municipalities (AXM) and the Texas Industrial
Energy Consumers (TIEC) filed testimony on the revenue requirements
portion of the case.

-- The OPUC recommended a reduction to SPS' $94.4 million base
revenue request of $27.1 million based on an ROE of 9.95
percent.

-- The TIEC recommended a reduction of $28.6 million based on an
ROE of 10.0 percent.

-- The AXM recommended a reduction of $71.7 million, based on an
ROE of 9.5 percent. AXM also recommended a $3 million
disallowance of fuel costs associated with the assignment of
incremental cost to a wholesale contract with EPE.

The PUCT filed testimony on October 21, 2008 recommending a
reduction to SPS' $94.4 million base revenue request of $49.8 million
based on an ROE of 10.32 percent.

The remaining procedural schedule is as follows:

-- PUCT staff and intervenors cross-rebuttal testimony is
expected to be filed on Oct. 28, 2008;

-- SPS rebuttal testimony is expected to be filed on Nov. 4,
2008;

-- The hearing on the merits is expected to begin on Nov. 12,
2008; and

-- A decision is expected in early 2009.

SPS 2008 wholesale rate case - On March 31, 2008, SPS filed a
wholesale power base rate case in the full-requirements customers'
base rates. SPS is seeking an annual revenue increase of $14.9 million
or an overall 5.14 percent increase, based on 12.20 percent requested
ROE. Four New Mexico Cooperatives filed a motion for dismissal and
protest in April 2008.

On May 30, 2008, the Federal Energy Regulatory Commission (FERC)
conditionally accepted and suspended the rates and establishing
hearing and settlement procedures. The FERC granted a one-day
suspension of rates instead of 180 days. The LPP plant achieved
commercial operations in September 2008 and the proposed base rates,
based on a 10.25 percent ROE and a 12-CP demand allocator, became
effective, subject to refund.

Note 6. Xcel Energy Earnings Guidance

Xcel Energy's 2008 diluted earnings per share and key assumptions
are detailed in the following table.

-0-
*T
2008 EPS
Range
--------------------
Utility operations............................... $1.61 - $1.66
Holding company financing costs and other........ (0.16)
--------------------
Xcel Energy earnings per share................... $1.45 - $1.50
*T

Key Assumptions for 2008:

-- Normal weather patterns are experienced for the remainder of
the year.

-- Various riders, associated with MERP, Minnesota and Colorado
transmission and Minnesota renewable energy, are expected to
increase revenue by approximately $55 million to $65 million
over 2007 levels.

-- Reasonable regulatory outcomes in the North Dakota electric
rate case, the SPS FERC wholesale electric rate cases and
interim rate recovery of capacity costs in the Texas electric
rate case.

-- No material incremental accruals related to the SPS regulatory
proceedings.

-- Weather adjusted electric residential sales growth is expected
to be flat, with overall weather-adjusted retail electric
utility sales growing by approximately 1.7 percent to 2.0
percent.

-- Weather-adjusted retail firm natural gas sales grow by
approximately 0.0 percent to 1.0 percent.

-- Short-term wholesale and commodity trading margins are within
a range of $25 million to $30 million.

-- Capacity costs at NSP-Minnesota and SPS are projected to
increase approximately $30 million to $35 million over 2007
levels. Capacity costs at PSCo are recovered under the
purchased capacity cost adjustment.

-- Utility operating and maintenance expenses increase between
0.0 percent and 2.0 percent.

-- Depreciation and amortization and conservation and demand-side
management expense is projected to increase approximately $45
million to $55 million over 2007 levels.

-- Interest expense increases approximately $20 million to $25
million over 2007 levels.

-- Allowance for funds used during construction-equity increases
approximately $30 million to $35 million over 2007 levels.

-- An effective tax rate for continuing operations of
approximately 32 percent to 35 percent.

-- Average common stock and equivalents for diluted earnings per
share calculations of approximately 440 million shares.

Note 7. Non-GAAP Reconciliation

The following table provides a reconciliation of GAAP earnings to
ongoing earnings:

-0-
*T
Three months ended Nine months ended
Sept. 30, Sept. 30,
------------------ ------------------
(Thousand of dollars) 2008 2007 2008 2007
------------------------------- -------- -------- -------- --------
Ongoing earnings............... $223,275 $249,259 $482,535 $480,135
PSRI/COLI IRS settlement....... (580) 5,461 (373) (39,206)
-------- -------- -------- --------
Total continuing operations.. 222,695 254,720 482,162 440,929
Discontinued operations........ 94 97 (684) 2,376
-------- -------- -------- --------
GAAP earnings................ $222,789 $254,817 $481,478 $443,305
======== ======== ======== ========
*T

As a result of the termination of the COLI program, Xcel Energy's
management believes that ongoing earnings provide a more meaningful
comparison of earnings results between different periods in which the
COLI program was in place and is more representative of Xcel Energy's
fundamental core earnings power. Xcel Energy's management uses ongoing
earnings internally for financial planning and analysis, for reporting
of results to the board of directors, in determining whether
performance targets are met for performance-based compensation, and
when communicating its earnings outlook to analysts and investors.

-0-
*T
XCEL ENERGY INC. AND SUBSIDIARIES
UNAUDITED EARNINGS RELEASE SUMMARY
All amounts in thousands, except earnings per share

Three months ended Sept. 30, 2008 2007
---------------------------------------------- ---------- ----------
Operating revenues:
Electric and natural gas utility and trading
margins.................................... $2,835,428 $2,383,694
Other....................................... 16,252 16,303
---------- ----------
Total operating revenues...................... 2,851,680 2,399,997

Income from continuing operations............. 222,695 254,720
Income from discontinued operations........... 94 97
---------- ----------
Net income.................................... 222,789 254,817

Earnings available for common shareholders.... 221,729 253,757
Weighted average diluted common shares
outstanding.................................. 439,397 433,387

Segments and Components of Earnings per Share
-- Diluted
----------------------------------------------
Regulated utility segments -- continuing
operations................................... $ 0.54 $ 0.61
Holding company and other costs............... (0.03) (0.03)
---------- ----------
Earnings per share - ongoing operations... 0.51 0.58
PSRI/COLI IRS settlement...................... -- 0.01
---------- ----------

Earnings per share -- continuing
operations............................... 0.51 0.59

Discontinued operations....................... -- --
---------- ----------

Total earnings per share.................. $ 0.51 $ 0.59
========== ==========

Nine months ended Sept. 30, 2008 2007
---------------------------------------------- ---------- ----------
Operating revenues:
Electric and natural gas utility and trading
margins.................................... $8,440,865 $7,377,482
Other....................................... 54,718 53,469
---------- ----------
Total operating revenues...................... 8,495,583 7,430,951

Income from continuing operations............. 482,162 440,929
Income (loss) from discontinued operations.... (684) 2,376
---------- ----------
Net income.................................... 481,478 443,305

Earnings available for common shareholders.... 478,298 440,125
Weighted average diluted common shares
outstanding.................................. 436,716 432,811

Segments and Components of Earnings per Share
-- Diluted
----------------------------------------------
Regulated utility segments -- continuing
operations................................... $ 1.21 $ 1.21
Holding company and other costs............... (0.11) (0.09)
---------- ----------
Earnings per share - ongoing operations... 1.10 1.12
PSRI/COLI IRS settlement...................... -- (0.09)
---------- ----------
Earnings per share -- continuing
operations............................... 1.10 1.03

Discontinued operations....................... -- 0.01
---------- ----------

Total earnings per share.................. $ 1.10 $ 1.04
========== ==========

Book value per share.......................... $ 15.27 $ 14.66
*T

Xcel Energy Inc.
Paul Johnson, 612-215-4535
Managing Director, Investor Relations
and Assistant Treasurer
or
Jack Nielsen, 612-215-4559
Director, Investor Relations
or
Cindy Hoffman, 612-215-4536
Senior Investor Relations Analyst
or
For News Media Inquiries Only:
Xcel Energy Media Relations, 612-215-5300
www.xcelenergy.com

Copyright Business Wire 2008