Investor Relations Earnings Release

Business Wire, May 1, 2008

First Quarter 2008 Earnings

* GAAP (generally accepted accounting principles) earnings were $153 million, or $0.35 per diluted share, compared with $120 million, or $0.28 per diluted share, in 2007.

* Ongoing diluted earnings per share were $0.35, compared with $0.27 per share in 2007.

* Xcel Energy reaffirms 2008 earnings from continuing operations guidance of $1.45 to $1.55 diluted earnings per share.

MINNEAPOLIS -- Xcel Energy Inc. (NYSE: XEL) today reported first quarter 2008 GAAP earnings of $153 million, or $0.35 per diluted share, compared with $120 million, or $0.28 per diluted share, in 2007. Ongoing earnings, adjusted for certain non-recurring items, were $0.35 per diluted share, compared with $0.27 in 2007.

Higher first quarter 2008 earnings were primarily attributable to higher electric and natural gas margins, reflecting various rate increases, weather-normalized retail sales growth, higher rider recovery, the impact of favorable temperatures and leap year, which increased sales. Partially offsetting these positive factors were higher operating and maintenance expense and increased depreciation expense.

"Our solid first quarter results reflect the continued execution of our strategy," said Richard C. Kelly, chairman, president and chief executive officer. "During the current quarter, we continued to pursue numerous regulatory initiatives to assure that we are well positioned to meet our environmental and financial objectives. Further, we are unique among utilities by proposing plans to meet our customers' growing demand for energy, while at the same time reducing carbon emissions. With a good start to the year, we are reaffirming our 2008 earnings from continuing operations guidance range of $1.45 to $1.55 per share."

Earnings Adjusted for Certain Non-recurring Items (Ongoing Earnings-Note 6)

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 first quarter 2008 earnings were $155 million, or $0.35 per share, compared with first quarter 2007 ongoing earnings of $114 million or $0.27 per share. The following table provides a reconciliation of GAAP earnings per share to ongoing earnings per share for 2008 and 2007.

[TABLE OMITTED]

At 10 a.m. CDT today, Xcel Energy will host a conference call to review first 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.

US Dial-In:             >  >  >  >  >                  >




(800) 257-3401










International Dial-In:  >  >  >  >  >                  >




(303) 262-2004

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 May 1 through 11:59 p.m. CDT on May 5.

Replay Numbers

US Dial-In:             >  >  >  >                  >



(800) 405-2236











International Dial-In:  >  >  >  >                  >



(303) 590-3000











Access Code:            >  >  >  >                  >



11112269

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.