Fitch Revises Xcel Energy & Subs Rating Watch to Positive.

Business Editors

NEW YORK--(BUSINESS WIRE)--June 3, 2003

Pending completion of an ongoing review, Fitch Ratings has revised the Rating Watch status for the ratings of Xcel Energy Inc (Xcel). and its subsidiaries, Northern States Power Co. (Minnesota), Northern States Power (Wisconsin), Southwestern Public Service Co. and Public Service Co. of Colorado to Positive from Negative. The Rating Watch Positive considers NRG Energy Inc.'s (NRG) recent voluntary bankruptcy filing and reflects the reasonable possibility of a resolution in which Xcel's exposure to NRG is limited. The Positive Watch status also considers that Xcel and its consolidated subsidiaries have adequate liquidity to meet expected cash requirements and have demonstrated the ability to finance in the capital and banking markets.

The central concerns underpinning the prior Rating Watch Negative status were exposure to additional costs relating to the financially precarious position of NRG, and the impact of such an exposure on the ability of Xcel to access bank and capital markets and assure holding company liquidity. The May 14 NRG bankruptcy filing includes a Plan of Reorganization (the NRG Plan) which incorporates the terms of an overall settlement signed by Xcel and holders of 40% of NRG's long term notes and bonds as well as two banks who serve as co-chairs of the Global Steering Committee of the NRG bank lenders. Under the NRG Plan, Xcel would pay NRG creditors up to $752 million in three installments in the next twelve months in exchange for a release by creditors of any future claims against Xcel. The NRG Plan is contingent upon acceptance by the requisite majority of creditors and waivers by at least 85% of NRG's unsecured creditors on or before Dec. 15, 2003. As such, the NRG Plan, if implemented, appears to offer a realistic prospect of resolving in a favorable manner the majority of Xcel's exposure to the impact of NRG's bankruptcy.

Fitch expects to finalize its review of Xcel and its subsidiaries shortly. Resolution of the Rating Watch will focus on the level of remaining execution risk on implementing the NRG Plan, the sustainability of the holding company's liquidity position following an implementation of the NRG Plan, and the impact of future dividend plans on the separation of the ratings of the regulated subsidiaries from those of the parent.

Ratings affected by the rating action are:

Xcel Energy Inc.

-- Senior unsecured debt 'BB+';

Northern States Power Company (MN)

-- First mortgage bonds and secured pollution control revenue

bonds 'BBB+';

-- Senior unsecured debt and unsecured pollution control revenue

bonds 'BBB';

-- Trust preferred stock 'BBB-';

-- Commercial paper 'F2'.

Northern States Power Company (WI)

-- First mortgage bonds 'BBB+';

-- Senior unsecured debt 'BBB'.

Southwestern Public Service Company

-- First mortgage bonds 'BBB+';

-- Senior unsecured debt 'BBB';

-- Commercial paper 'F2'.

Southwestern Public Service Capital I

-- Trust preferred stock 'BBB-'.

Public Service Company of Colorado

-- First mortgage bonds 'BBB+';

-- Senior unsecured notes 'BBB';

-- Preferred stock 'BBB-';

-- Commercial paper rating 'F2';

-- The Rating Watch for all entities gas been revised to Positive

from Negative.

Xcel Energy Inc. is the holding company for six electric utility companies that serve electric and natural gas customers in 12 states and a small natural gas pipeline company. Xcel also owns a number of non-regulated businesses, the largest of which is NRG Energy, Inc.