Xcel Energy Announces Debt Financing for Public Service Company of Colorado.

Business Editors

MINNEAPOLIS--(BUSINESS WIRE)--Sept. 9, 2003

Xcel Energy (NYSE:XEL) today announced that Public Service Company of Colorado has sold $575 million of first collateral trust bonds. The first collateral trust bonds were issued in two series: $300 million with a 4.375 percent coupon that mature in October 2008, and $275 million with a 5.5 percent coupon that mature in April 2014. The bonds are redeemable at any time pending various "make whole" provisions.

Proceeds will be used to repay short-term debt and for general corporate purposes at Public Service Company of Colorado. The short-term debt was partially incurred in June 2003, when Public Service Company of Colorado redeemed $194 million of 7.6 percent Trust Originated Preferred Securities due in 2038 and $144.8 million of 8.75 percent first mortgage bonds due in 2022.

"These transactions are a continuation of our plan to reduce financing costs," said Ben Fowke, Xcel Energy vice president and treasurer. "We believe the attractive interest rates on the new bonds reflects the underlying financial strength of our utility operations and their business prospects."

The underwriting group was led by Banc One Capital Markets, Inc., McDonald Investments Inc. and UBS Investment Bank.

Xcel Energy is a major U.S. electricity and natural gas company with operations in 12 Western and Midwestern states. Xcel Energy provides a comprehensive portfolio of energy-related products and services to 3.2 million electricity customers and 1.7 million natural gas customers through its regulated operating companies. In terms of customers, it is the fourth-largest combination natural gas and electricity company in the nation. Company headquarters are located in Minneapolis. More information is available at www.xcelenergy.com.