News Releases

Xcel Energy Inc. begins operations, trading on stock exchange

MINNEAPOLIS - A new name joined the nation’s list of top 10 utility companies today, as investors began trading Xcel Energy Inc. stock on the New York Stock exchange for the first time, under the symbol XEL.

That signaled the official start for the new company, formed by the $8.5 billion merger of Minneapolis-based Northern States Power and Denver-based New Century Energies. The merger partners received the order approving the merger from the Securities and Exchange Commission on Aug. 17. Company headquarters are in Minneapolis.

Current New Century Energies shareholders will receive 1.55 shares of Xcel Energy stock for each share of NCE they hold. NSP shareholders will get one Xcel Energy share for one NSP share and will not be required to exchange their existing NSP stock.

Xcel Energy officials said this is the perfect time to launch the new company, considering the current recovery in utility stocks, a sector that has gained 39 percent since March. “But our own performance has been even more phenomenal,” said Jim Howard, chairman of Xcel Energy. “NSP shares have risen 50 percent since March and NCE shares are up 56 percent. Shares in NRG, our subsidiary which completed an initial public offering in May, are up a whopping 75 percent.”

“Xcel Energy is being launched from a very solid platform,” said Wayne Brunetti, president and chief executive officer. “NSP, NRG and NCE had great second quarter earnings. Xcel will enable us to continue to increase shareholder value through strong operations and by capturing more than $1.1 billion of merger related savings. In keeping with our name, we will deliver excellence to our customers, and value to investors.”

The merger forming Xcel Energy was announced on March 25, 1999. Customers will see a changeover to the new name and logo over a period of several months. Gradually, the NSP and NCE names will be phased out as Xcel Energy provides enhanced products and services.

Xcel Energy Directors

The Board of Directors is made up of seven directors from the former NSP board and seven directors from the former NCE board.

Directors from NSP are:

• James J. Howard, chairman, Xcel Energy Inc.
• David A. Christensen, president, chief executive officer of Raven Industries
• Giannantonio Ferrari, chief operating officer and executive vice president of Honeywell International Inc.
• Douglas W. Leatherdale, chairman and chief executive officer of The St. Paul Companies, Inc.
• Dr. Margaret R. Preska, president emerita, Minnesota State University, Mankato
• A. Patricia Sampson, The Sampson Group, Inc.
• Allan L. Schuman, chairman, president and chief executive officer of Ecolab, Inc.

Directors from NCE are:

• Wayne H. Brunetti, president and chief executive officer, Xcel Energy Inc.
• C. Coney Burgess, chairman, Herring Bancorp; president, Monarch Trust Company; chairman and president of Burgess-Herring Ranch Company
• R.R. Hemminghaus, chairman emeritus, Ultramar Diamond Shamrock
• A. Barry Hirschfeld, president, A.B. Hirschfeld Press, Inc.
• Albert F. Moreno, senior vice president and general counsel of Levi Strauss & Co.
• Rodney E. Slifer, partner, Slifer Smith & Frampton
• W. Thomas Stephens, retired president and CEO of MacMillan Bloedel Ltd.

Dividend Information

Xcel Energy is expected to maintain the current NCE dividend rate, adjusted for the share conversion rate ($2.32/1.55=$1.50), although a final decision will be made by the Xcel Board of Directors. At this rate, NCE shareholders would continue to receive their current annualized rate of dividends, while NSP shareholders would receive an increase from their current $1.47 annual dividend.