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MIDWEST ROAD SHOW – Xcel Energy

Xcel Energy · Feb 12, 2014 · 35 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. MIDWEST ROAD SHOW – Xcel Energy – slide 1
    Building Sustainable Shareholder Value Midwest Road Show February 12-13, 2014
  2. MIDWEST ROAD SHOW – Xcel Energy – slide 2
    Building Sustainable Shareholder Value Attractive growth opportunities Improving regulatory constructs Operational Excellence Proactive risk mitigation Balanced value proposition EPS growth of 4% 6% * Dividend growth of 4% 6% *…
  3. MIDWEST ROAD SHOW – Xcel Energy – slide 3
    Investments Providing Customer Value 2014 2018 Capital Expenditure Plan of 14.1 Billion Distribution 20% Natural Gas 12% Nuclear Fuel 4% Transmission 27% Other 7% NSPM Wind 4.5% Black Dog 1% New SW Generation 18%…
  4. MIDWEST ROAD SHOW – Xcel Energy – slide 4
    Attractive Rate Base Growth Dollars in billions CAGR 2013 2018 = 5.4% 25 24.2 23.3 22.4 CAGR 2005 2013 = 7.5% 20.7 19.2 17.6 16.9 15.2 14.4 13.3 12.5 11.7 10.8 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016…
  5. MIDWEST ROAD SHOW – Xcel Energy – slide 5
    Improving the Regulatory Construct Demonstrated Track Record 2005 Outlook Multi-Year Plan NSPW NSPW Interim Rates NSPM NSPM & PSCo Riders Future Test Year SPS PSCo No Interim Rates No Riders Historic Test Year SPS 6
  6. MIDWEST ROAD SHOW – Xcel Energy – slide 6
    Actions to Improve ROE Regulatory compacts Multi-year plans Expand riders Decoupling alternatives Interim rate recovery & expand known and measurable Moderation plans to smooth customer bill impact Pursue alternative regulatory…
  7. MIDWEST ROAD SHOW – Xcel Energy – slide 7
    TransCo Investment Structures FERC Order 1000 creates opportunities and challenges Multiple approaches needed to win competitive projects Developing strategic flexibility to respond effectively Creating alternative investment…
  8. MIDWEST ROAD SHOW – Xcel Energy – slide 8
    Operational Excellence Bending the Cost Curve O&M Expenses (Dollars in billions) 3.0 2015 - 2018 O&M 2014 O&M 0% - 2% 2.5 2% - 3% 5-Year O&M 5% CAGR * 2.0 1.5 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Estimate *…
  9. MIDWEST ROAD SHOW – Xcel Energy – slide 9
    Bending the Cost Curve Sustainable Cost Control Operational Excellence Standardization of processes Optimize purchasing power Technology Stabilization of nuclear costs Workforce transition Proactive maintenance to strengthen…
  10. MIDWEST ROAD SHOW – Xcel Energy – slide 10
    Proactive Risk Mitigation Environmental Risk 2005 2012 2020 3% 1% 3% 2% 2% 3% 5% 47% 56% 12% 43% 12% 22% 12% 23% 12% 24% 18% Coal Natural Gas Nuclear Wind Hydro Other 11
  11. MIDWEST ROAD SHOW – Xcel Energy – slide 11
    Proactive Risk Mitigation Emission Reductions Nitrogen Oxide Emissions (lbs/MWh) CO2 Emissions 150,000 Million tons 100,000 95 50,000 90 0 85 Sulfur Dioxide Emissions (lbs/MWh) 150,000 80 30% 100,000 Reduction 50,000 75…
  12. MIDWEST ROAD SHOW – Xcel Energy – slide 12
    Proactive Risk Mitigation Strong Credit Ratings and Liquidity 45% equity ratio as of December 31, 2013 2.45 billion credit line, maturity extended to July 2017 Moodys S&P Fitch Xcel Unsecured A3 BBB+ BBB+ NSPM Secured Aa3 A A+ NSPW…
  13. MIDWEST ROAD SHOW – Xcel Energy – slide 13
    Dividend Flexibility Annual dividend growth target range of 4% to 6% Current dividend payout ratio is 58% No dividend payout range target Dividend growth may periodically exceed EPS growth Dividend considerations Providing a…
  14. MIDWEST ROAD SHOW – Xcel Energy – slide 14
    Consistent Dividend Growth Annual Dividend Increase 1.12 1.04 1.08 0.98 1.01 0.95 0.89 0.92 0.86 2005 2013 Dividend Growth: 8-Year CAGR = 3.4% 15
  15. MIDWEST ROAD SHOW – Xcel Energy – slide 15
    Consistent EPS Growth Ongoing earnings per share * 2014 Ongoing Earnings Guidance Range 1.90- 2.05 1.95 1.15 2005 2013 2014E EPS Growth: 2005 2013 CAGR = 6.8% * Reconciliation to GAAP EPS included in appendix 16
  16. MIDWEST ROAD SHOW – Xcel Energy – slide 16
    Building Sustainable Shareholder Value Attractive growth opportunities Improving regulatory constructs Operational Excellence Proactive risk mitigation Balanced value proposition EPS growth of 4% 6% * Dividend growth of 4% 6% *…
  17. MIDWEST ROAD SHOW – Xcel Energy – slide 17
    Appendix 18
  18. MIDWEST ROAD SHOW – Xcel Energy – slide 18
    Reconciliation Ongoing EPS to GAAP EPS 2005 2006 2007 2008 2009 2010 2011 2012 2013 Ongoing EPS 1.15 1.30 1.43 1.45 1.50 1.62 1.72 1.82 1.95 PSRI-COLI 0.05 0.05 (0.08) 0.01 (0.01) (0.01) - - - Prescription Drug Tax Benefit - - - - - - -…
  19. MIDWEST ROAD SHOW – Xcel Energy – slide 19
    Driving Rate Base Growth Five-Year Capital Forecast of 14.1 Billion Dollars in millions 3,195 New SW 2,890 2,925 2,625 2,700 2,685 Infrastructure Black Dog 6 Wind Projects Driving Rate Base Growth Base Rate Base Growth of 4.5% -…
  20. MIDWEST ROAD SHOW – Xcel Energy – slide 20
    Capital Expenditures by Major Project Dollars in millions Major Project Summary 2014 2015 2016 2017 2018 Total CapX 2020 255 125 5 - - 385 CACJA 250 85 10 - - 345 Nuclear Fuel 140 100 135 135 75 585 Other Major Transmission 370 265 330…
  21. MIDWEST ROAD SHOW – Xcel Energy – slide 21
    Capital Expenditures by Company Dollars in millions 2014 2015 2016 2017 2018 Total NSPM 1,090 1,620 955 885 805 5,355 PSCo 985 845 795 770 815 4,210 SPS 525 520 610 770 790 3,215 NSPW 290 210 265 275 275 1,315 Total 2,890 3,195…
  22. MIDWEST ROAD SHOW – Xcel Energy – slide 22
    Capital Expenditures by Function Dollars in millions 2014 2015 2016 2017 2018 Total Electric Generation 715 1,235 560 550 470 3,530 Electric Transmission 950 770 790 945 1,035 4,490 Electric Distribution 510 560 595 605 610 2,880…
  23. MIDWEST ROAD SHOW – Xcel Energy – slide 23
    Financing Plan 2014 2018 Capital Expenditure Plan of 14.1 Billion Cash from operations 10.6 billion * New debt 2.4 billion Equity 700 million DRIP 350 million * Net of dividend and pension funding In addition, we plan to…
  24. MIDWEST ROAD SHOW – Xcel Energy – slide 24
    Manageable Debt Maturities Dollars in millions 1,600 Hold Co NSPM NSPW PSCo SPS 1,200 800 400 0 2014 2015 2016 2017 2018 2019 2020 25
  25. MIDWEST ROAD SHOW – Xcel Energy – slide 25
    Financing Plan Debt Issuances for 2014 Amount Issuer Security (millions) PSCo First Mortgage Bonds 300 NSPM First Mortgage Bonds 300 SPS First Mortgage Bonds 150 NSPW First Mortgage Bonds 100 Financing plans are subject to…
  26. MIDWEST ROAD SHOW – Xcel Energy – slide 26
    Pending Rate Cases Requested Rates Rate Case Rate Anticipated Equity Increase ROE to be Effective Ratio (millions) Minnesota Electric 291.0* 10.25% 52.50% Interim Jan 2014 Texas Electric 52.7 10.40% 53.89% 2014 Q3 New Mexico…
  27. MIDWEST ROAD SHOW – Xcel Energy – slide 27
    Minnesota Multi-Year Electric Rate Case 2014 2015 (Millions of Dollars) % % Amount Amount increase increase Pre-moderation deficiency 274 81 Moderation change compared to prior year: Theoretical depreciation reserve (81) 53 DOE…
  28. MIDWEST ROAD SHOW – Xcel Energy – slide 28
    Minnesota Electric Rate Case Rate Case Drivers 2014 and 2015 Prairie Island Sherco Unit 3 34 million & Monticello 128 million Transmission & Wind Distribution 62 million Development 23 million Other Generation Other…
  29. MIDWEST ROAD SHOW – Xcel Energy – slide 29
    Monticello Prudence Filing Monticello uprate and life extension project was a sound investment Rebuilt plant provides value for the next 20 years Essential for carbon reduction commitment Higher power output Our experience is in…
  30. MIDWEST ROAD SHOW – Xcel Energy – slide 30
    Texas 2014 Electric Rate Case Filed for 2014 electric rate net increase of 52.7 million Based on a June 2013 historic test year ROE of 10.40% Electric rate base of 1.27 billion Equity ratio of 53.89% Requested interim rates of 32.6…
  31. MIDWEST ROAD SHOW – Xcel Energy – slide 31
    New Mexico 2014 Electric Rate Case Seeking 2014 electric rate increase of 32.5 million, reflecting: A base rate increase of 20.9 million and an increase in renewable energy rider recovery of 12.1 million Based on a 2014 forecast test…
  32. MIDWEST ROAD SHOW – Xcel Energy – slide 32
    North Dakota 2013 Electric Rate Case Revised request for 2013 electric rate increase of 14.9 million Based on a 2013 forecast test year ROE of 10.25% Electric rate base of 377.6 million Equity ratio of 52.56% Interim rate increase…
  33. MIDWEST ROAD SHOW – Xcel Energy – slide 33
    Impact of Improved Earned ROE Consolidated 5-year EPS Earned ROE CAGR 11.0% 6% - 7% 10.5% 5% - 6% 10.0% 4% - 5% Based on Xcel Energys consolidated GAAP ROE 34
  34. MIDWEST ROAD SHOW – Xcel Energy – slide 34
    Impact of Improved Earned ROE The Opportunity 2012 17.6 17.6 17.6 Rate Base billion billion billion Equity Ratio 54% 54% 54% ROE 25 bps 50 bps 75 bps Improvement Net Income 24 million 48 million 71 million Ongoing EPS 0.05…
  35. MIDWEST ROAD SHOW – Xcel Energy – slide 35
    36

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