Electric Rate Settlement Calls for Slight Increase While Offering Improved Customer Service.

AMARILLO, Texas -- Xcel Energy and key customer groups in Texas have resolved Xcel Energy's 2006 Texas rate case and negotiated a new retail base rate that calls for a 3 percent overall increase - the first base rate increase in Texas since 1986. The agreement also calls for improved customer service measures.

Xcel Energy requested in May 2006 to increase rates by 6 percent.

The new rate agreement filed Tuesday with the Public Utility Commission of Texas requests that the rates be effective on an interim basis beginning April 1 until such time as the Commission acts on the settlement. The average residential bill for a customer using 1,000 kilowatt hours a month will rise 3.6 percent, or $2.90. Some customer groups could see slightly different increases depending on their class of service.

"Our prices are still among the lowest in Texas, and will remain so even after the increase," said David Eves, president and CEO of Southwestern Public Service Company, an Xcel Energy company.

The company also agreed to improve streetlight maintenance by stepping up patrols and speeding up the reporting of streetlight outages.

"Through this process we became more aware of areas we needed to improve upon, and I think we have created opportunities to better serve our customers," Eves said.

To help customers manage costs, Xcel Energy is publicizing energy saving tips through a brochure called "60 Simple Ways" that details simple and mostly inexpensive steps customers can take to boost the efficiency of home appliances. The brochure can be downloaded at www.xcelenergy.com or customers may request copies by contacting customer service at 1-800-895-4999.

Xcel Energy will continue to work with customers who need extra time paying bills, and also will continue working with area nonprofit agencies in finding assistance for customers who cannot pay their bills. Customers who need payment arrangements or help in paying bills should contact Xcel Energy at 1-800-895-4999.

Xcel Energy (NYSE:XEL) is a major U.S. electricity and natural gas company with regulated operations in eight Western and Midwestern states. Xcel Energy provides a comprehensive portfolio of energy-related products and services to 3.3 million electricity customers and 1.8 million natural gas customers through its regulated operating companies. Company headquarters are located in Minneapolis. More information is available at www.xcelenergy.com.

This news release includes 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," "estimate," "expect," "projected," "objective," "outlook," "possible," "potential" and similar expressions. Actual results may vary materially. Factors that could cause actual results to differ materially include, but are not limited to: general economic conditions, including their impact on capital expenditures; business conditions in the energy industry; competitive factors; unusual weather; changes in federal or state legislation; regulation; risks associated with the California power market; currency translation and transaction adjustments; the higher degree of risk associated with Xcel Energy's non-regulated businesses compared with Xcel Energy's regulated business; and the other risk factors listed from time to time by Xcel Energy in reports filed with the Securities and Exchange Commission.