<HTML> <HEAD> <TITLE> Prepared by MERRILL CORPORATION www.edgaradvantage.com </TITLE> </HEAD> <BODY BGCOLOR="#FFFFFF" LINK=BLUE VLINK=PURPLE> <FONT SIZE=3 ><A HREF="#00STP1600_1">QuickLinks</A></FONT> <font size=3> -- Click here to rapidly navigate through this document</font> <HR NOSHADE> <HR NOSHADE> <BR> <P ALIGN="CENTER"><FONT SIZE=5><B>SECURITIES AND EXCHANGE COMMISSION<BR></B></FONT><FONT SIZE=2><B>Washington, D.C. 20549</B></FONT></P> <HR NOSHADE WIDTH="120"> <BR> <P ALIGN="CENTER"><FONT SIZE=5><B>FORM 10-Q</B></FONT></P> <HR NOSHADE WIDTH="120"> <BR> <!-- User-specified TAGGED TABLE --> <TABLE WIDTH="101%" BORDER=0 CELLSPACING=0 CELLPADDING=0> <TR VALIGN="BOTTOM"> <TD WIDTH="9%" ALIGN="CENTER"><FONT SIZE=2> <BR></FONT> <FONT SIZE=3>/x/</FONT></TD> <TD WIDTH="91%"><FONT SIZE=3> <BR></FONT> <FONT SIZE=3><B>Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934</B></FONT></TD> </TR> <TR VALIGN="BOTTOM"> <TD WIDTH="100%" COLSPAN=2 ALIGN="CENTER"><FONT SIZE=3><B> <BR> or</B></FONT></TD> </TR> <TR VALIGN="BOTTOM"> <TD WIDTH="9%" ALIGN="CENTER"><FONT SIZE=3><B> <BR> / /</B></FONT></TD> <TD WIDTH="91%"><FONT SIZE=3><B> <BR> Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934</B></FONT></TD> </TR> </TABLE> <!-- end of user-specified TAGGED TABLE --> <!-- User-specified TAGGED TABLE --> <CENTER><TABLE WIDTH="72%" BORDER=0 CELLSPACING=0 CELLPADDING=0> <TR VALIGN="TOP"> <TD WIDTH="49%" ALIGN="CENTER"><FONT SIZE=2><B>For Quarter Ended March 31, 2000</B></FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="49%" ALIGN="CENTER"><FONT SIZE=2><B>Commission File Number 1-3034</B></FONT></TD> </TR> </TABLE></CENTER> <!-- end of user-specified TAGGED TABLE --> <HR NOSHADE WIDTH="120"> <P ALIGN="CENTER"><FONT SIZE=5><B>NORTHERN STATES POWER COMPANY<BR></B></FONT><FONT SIZE=2>(Exact name of registrant as specified in its charter)</FONT></P> <!-- User-specified TAGGED TABLE --> <CENTER><TABLE WIDTH="72%" BORDER=0 CELLSPACING=0 CELLPADDING=0> <TR VALIGN="TOP"> <TD WIDTH="49%" ALIGN="CENTER"><FONT SIZE=2><B>Minnesota</B></FONT><FONT SIZE=2><BR> (State of other jurisdiction of<BR> incorporation or organization)</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="49%" ALIGN="CENTER"><FONT SIZE=2><B>41-0448030</B></FONT><FONT SIZE=2><BR> (I.R.S. Employer<BR> Identification No.)</FONT></TD> </TR> <TR VALIGN="TOP"> <TD WIDTH="49%" ALIGN="CENTER"><FONT SIZE=2> <BR></FONT> <FONT SIZE=2><B>414 Nicollet Mall,<BR> Minneapolis, Minnesota 55401</B></FONT><FONT SIZE=2><BR> (Address of principal executive offices)</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> <BR> </FONT></TD> <TD WIDTH="49%" ALIGN="CENTER"><FONT SIZE=2> <BR></FONT> <FONT SIZE=2><B>55401</B></FONT><FONT SIZE=2><BR> (Zip Code)</FONT></TD> </TR> </TABLE></CENTER> <!-- end of user-specified TAGGED TABLE --> <P ALIGN="CENTER"><FONT SIZE=2><B>(612) 330-5500<BR></B></FONT><FONT SIZE=2>Registrant's telephone number, including area code</FONT></P> <P ALIGN="CENTER"><FONT SIZE=2><B>None<BR></B></FONT><FONT SIZE=2>Former name, former address and former fiscal year, if changed since last report</FONT></P> <HR NOSHADE WIDTH="120"> <BR> <P><FONT SIZE=2> Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes /x/ No / /</FONT></P> <P><FONT SIZE=2> Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.</FONT></P> <!-- User-specified TAGGED TABLE --> <CENTER><TABLE WIDTH="72%" BORDER=0 CELLSPACING=0 CELLPADDING=0> <TR VALIGN="BOTTOM"> <TH WIDTH="49%" ALIGN="CENTER"><FONT SIZE=1><B>Class</B></FONT><HR NOSHADE></TH> <TH WIDTH="2%"><FONT SIZE=1> </FONT></TH> <TH WIDTH="49%" ALIGN="CENTER"><FONT SIZE=1><B>Outstanding at April 30, 2000</B></FONT><HR NOSHADE></TH> </TR> <TR VALIGN="TOP"> <TD WIDTH="49%" ALIGN="CENTER"><FONT SIZE=2>Common Stock, $2.50 par value</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="49%" ALIGN="CENTER"><FONT SIZE=2>157,117,848 shares</FONT></TD> </TR> </TABLE></CENTER> <!-- end of user-specified TAGGED TABLE --> <HR NOSHADE> <HR NOSHADE> <P><FONT SIZE=2><HR NOSHADE></FONT></P> <!-- ZEQ.=1,SEQ=1,EFW="2013583",CP="NORTHERN STATES POWER CO /MN/",DN="1",CHK=340081,FOLIO=blank,FILE='DISK014:[00STP0.00STP1600]BA1600A.;5',USER='VDESIO',CD=';5-MAY-2000;11:31 --> <!-- Generated by Merrill Corporation (www.merrillcorp.com) --> <H2><FONT SIZE=2> </FONT></H2> <BR> <P ALIGN="CENTER"><FONT SIZE=2><A NAME="de1600_part_1._financial_information"> </A></FONT> <FONT SIZE=2><B>PART 1. FINANCIAL INFORMATION </B></FONT></P> <BR> <P><FONT SIZE=2><B><A NAME="de1600_item_1._financial_statements"> </A> Item 1. Financial Statements </B></FONT></P> <P ALIGN="CENTER"><FONT SIZE=2><B>Northern States Power Company (Minnesota) and Subsidiaries</B></FONT></P> <P ALIGN="CENTER"><FONT SIZE=2><B>Consolidated Statements of Income (Unaudited)</B></FONT></P> <!-- User-specified TAGGED TABLE --> <TABLE WIDTH="89%" BORDER=0 CELLSPACING=0 CELLPADDING=0> <TR VALIGN="BOTTOM"> <TH WIDTH="72%" ALIGN="LEFT"><FONT SIZE=1> </FONT><BR></TH> <TH WIDTH="2%"><FONT SIZE=1> </FONT></TH> <TH WIDTH="24%" COLSPAN=5 ALIGN="CENTER"><FONT SIZE=1><B>Three Months Ended March 31</B></FONT><HR NOSHADE></TH> <TH WIDTH="1%"><FONT SIZE=1> </FONT></TH> </TR> <TR VALIGN="BOTTOM"> <TH WIDTH="72%" ALIGN="LEFT"><FONT SIZE=1> </FONT><BR></TH> <TH WIDTH="2%"><FONT SIZE=1> </FONT></TH> <TH WIDTH="11%" COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>2000</B></FONT><HR NOSHADE></TH> <TH WIDTH="2%"><FONT SIZE=1> </FONT></TH> <TH WIDTH="11%" COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>1999</B></FONT><HR NOSHADE></TH> <TH WIDTH="1%"><FONT SIZE=1> </FONT></TH> </TR> <TR VALIGN="BOTTOM"> <TH WIDTH="72%" ALIGN="LEFT"><FONT SIZE=1> </FONT><BR></TH> <TH WIDTH="2%"><FONT SIZE=1> </FONT></TH> <TH WIDTH="24%" COLSPAN=5 ALIGN="CENTER"><FONT SIZE=1><B>(Thousands of dollars)<BR></B></FONT><BR></TH> <TH WIDTH="1%"><FONT SIZE=1> </FONT></TH> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="TOP"> <TD WIDTH="72%"><FONT SIZE=1>Utility operating revenues</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="9%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="9%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="1%"><FONT SIZE=1> </FONT></TD> </TR> <TR BGCOLOR="White" VALIGN="TOP"> <TD WIDTH="72%"><FONT SIZE=1>Electric: Retail</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1>$</FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=1>524,406</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1>$</FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=1>505,561</FONT></TD> <TD WIDTH="1%"><FONT SIZE=1> </FONT></TD> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="TOP"> <TD WIDTH="72%"><FONT SIZE=1>Sales for resale and other</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=1>58,518</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=1>51,295</FONT></TD> <TD WIDTH="1%"><FONT SIZE=1> </FONT></TD> </TR> <TR BGCOLOR="White" VALIGN="TOP"> <TD WIDTH="72%"><FONT SIZE=1>Gas</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=1>210,081</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=1>186,327</FONT></TD> <TD WIDTH="1%"><FONT SIZE=1> </FONT></TD> </TR> <TR VALIGN="TOP"> <TD WIDTH="72%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="11%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="11%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD> <TD WIDTH="1%"><FONT SIZE=1> </FONT></TD> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="TOP"> <TD WIDTH="72%"><FONT SIZE=1>Total</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=1>793,005</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=1>743,183</FONT></TD> <TD WIDTH="1%"><FONT SIZE=1> </FONT></TD> </TR> <TR VALIGN="TOP"> <TD WIDTH="72%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="11%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="11%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD> <TD WIDTH="1%"><FONT SIZE=1> </FONT></TD> </TR> <TR BGCOLOR="White" VALIGN="TOP"> <TD WIDTH="72%"><FONT SIZE=1>Utility operating expenses</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="9%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="9%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="1%"><FONT SIZE=1> </FONT></TD> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="TOP"> <TD WIDTH="72%"><FONT SIZE=1>Fuel for electric generation</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=1>75,968</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=1>69,963</FONT></TD> <TD WIDTH="1%"><FONT SIZE=1> </FONT></TD> </TR> <TR BGCOLOR="White" VALIGN="TOP"> <TD WIDTH="72%"><FONT SIZE=1>Purchased and interchange power</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=1>112,710</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=1>98,065</FONT></TD> <TD WIDTH="1%"><FONT SIZE=1> </FONT></TD> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="TOP"> <TD WIDTH="72%"><FONT SIZE=1>Cost of gas purchased and transported</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=1>135,274</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=1>112,178</FONT></TD> <TD WIDTH="1%"><FONT SIZE=1> </FONT></TD> </TR> <TR BGCOLOR="White" VALIGN="TOP"> <TD WIDTH="72%"><FONT SIZE=1>Other operation</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=1>106,274</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=1>101,127</FONT></TD> <TD WIDTH="1%"><FONT SIZE=1> </FONT></TD> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="TOP"> <TD WIDTH="72%"><FONT SIZE=1>Maintenance</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=1>51,789</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=1>44,990</FONT></TD> <TD WIDTH="1%"><FONT SIZE=1> </FONT></TD> </TR> <TR BGCOLOR="White" VALIGN="TOP"> <TD WIDTH="72%"><FONT SIZE=1>Administrative and general</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=1>38,100</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=1>30,563</FONT></TD> <TD WIDTH="1%"><FONT SIZE=1> </FONT></TD> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="TOP"> <TD WIDTH="72%"><FONT SIZE=1>Conservation and energy management</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=1>11,287</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=1>17,238</FONT></TD> <TD WIDTH="1%"><FONT SIZE=1> </FONT></TD> </TR> <TR BGCOLOR="White" VALIGN="TOP"> <TD WIDTH="72%"><FONT SIZE=1>Depreciation and amortization</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=1>92,013</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=1>87,485</FONT></TD> <TD WIDTH="1%"><FONT SIZE=1> </FONT></TD> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="TOP"> <TD WIDTH="72%"><FONT SIZE=1>Taxes: Property and general</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=1>57,857</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=1>57,632</FONT></TD> <TD WIDTH="1%"><FONT SIZE=1> </FONT></TD> </TR> <TR BGCOLOR="White" VALIGN="TOP"> <TD WIDTH="72%"><FONT SIZE=1>Current income</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=1>32,826</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=1>42,546</FONT></TD> <TD WIDTH="1%"><FONT SIZE=1> </FONT></TD> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="TOP"> <TD WIDTH="72%"><FONT SIZE=1>Deferred income</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=1>(2,619</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1>)</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=1>(4,035</FONT></TD> <TD WIDTH="1%"><FONT SIZE=1>)</FONT></TD> </TR> <TR BGCOLOR="White" VALIGN="TOP"> <TD WIDTH="72%"><FONT SIZE=1>Investment tax credits recognized</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=1>(2,261</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1>)</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=1>(2,223</FONT></TD> <TD WIDTH="1%"><FONT SIZE=1>)</FONT></TD> </TR> <TR VALIGN="TOP"> <TD WIDTH="72%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="11%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="11%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD> <TD WIDTH="1%"><FONT SIZE=1> </FONT></TD> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="TOP"> <TD WIDTH="72%"><FONT SIZE=1>Total</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=1>709,218</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=1>655,529</FONT></TD> <TD WIDTH="1%"><FONT SIZE=1> </FONT></TD> </TR> <TR VALIGN="TOP"> <TD WIDTH="72%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="11%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="11%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD> <TD WIDTH="1%"><FONT SIZE=1> </FONT></TD> </TR> <TR BGCOLOR="White" VALIGN="TOP"> <TD WIDTH="72%"><FONT SIZE=1>Utility operating income</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=1>83,787</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=1>87,654</FONT></TD> <TD WIDTH="1%"><FONT SIZE=1> </FONT></TD> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="TOP"> <TD WIDTH="72%"><FONT SIZE=1><B>Other income (expense)</B></FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="9%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="9%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="1%"><FONT SIZE=1> </FONT></TD> </TR> <TR BGCOLOR="White" VALIGN="TOP"> <TD WIDTH="72%"><FONT SIZE=1>Income (loss) from nonregulated businesses—before interest and taxes</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=1>52,381</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=1>(7,353</FONT></TD> <TD WIDTH="1%"><FONT SIZE=1>)</FONT></TD> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="TOP"> <TD WIDTH="72%"><FONT SIZE=1>Allowance for funds used during construction—equity</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=1>1,277</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=1>3,175</FONT></TD> <TD WIDTH="1%"><FONT SIZE=1> </FONT></TD> </TR> <TR BGCOLOR="White" VALIGN="TOP"> <TD WIDTH="72%"><FONT SIZE=1>Write-down of investment in CellNet stock</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=1>(938</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1>)</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=1>(2,600</FONT></TD> <TD WIDTH="1%"><FONT SIZE=1>)</FONT></TD> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="TOP"> <TD WIDTH="72%"><FONT SIZE=1>Other utility income (deductions)—net</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=1>(1,832</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1>)</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=1>(2,411</FONT></TD> <TD WIDTH="1%"><FONT SIZE=1>)</FONT></TD> </TR> <TR BGCOLOR="White" VALIGN="TOP"> <TD WIDTH="72%"><FONT SIZE=1>Income tax benefits on nonregulated operations and nonoperating items</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=1>5,680</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=1>16,142</FONT></TD> <TD WIDTH="1%"><FONT SIZE=1> </FONT></TD> </TR> <TR VALIGN="TOP"> <TD WIDTH="72%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="11%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="11%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD> <TD WIDTH="1%"><FONT SIZE=1> </FONT></TD> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="TOP"> <TD WIDTH="72%"><FONT SIZE=1>Total</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=1>56,568</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=1>6,953</FONT></TD> <TD WIDTH="1%"><FONT SIZE=1> </FONT></TD> </TR> <TR VALIGN="TOP"> <TD WIDTH="72%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="11%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="11%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD> <TD WIDTH="1%"><FONT SIZE=1> </FONT></TD> </TR> <TR BGCOLOR="White" VALIGN="TOP"> <TD WIDTH="72%"><FONT SIZE=1>Income before financing costs</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=1>140,355</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=1>94,607</FONT></TD> <TD WIDTH="1%"><FONT SIZE=1> </FONT></TD> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="TOP"> <TD WIDTH="72%"><FONT SIZE=1>Financing costs</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="9%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="9%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="1%"><FONT SIZE=1> </FONT></TD> </TR> <TR BGCOLOR="White" VALIGN="TOP"> <TD WIDTH="72%"><FONT SIZE=1>Interest on utility long-term debt</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=1>27,985</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=1>23,965</FONT></TD> <TD WIDTH="1%"><FONT SIZE=1> </FONT></TD> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="TOP"> <TD WIDTH="72%"><FONT SIZE=1>Other utility interest and amortization</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=1>8,378</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=1>5,552</FONT></TD> <TD WIDTH="1%"><FONT SIZE=1> </FONT></TD> </TR> <TR BGCOLOR="White" VALIGN="TOP"> <TD WIDTH="72%"><FONT SIZE=1>Nonregulated interest and amortization</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=1>53,984</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=1>12,141</FONT></TD> <TD WIDTH="1%"><FONT SIZE=1> </FONT></TD> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="TOP"> <TD WIDTH="72%"><FONT SIZE=1>Allowance for funds used during construction—debt</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=1>(1,931</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1>)</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=1>(3,310</FONT></TD> <TD WIDTH="1%"><FONT SIZE=1>)</FONT></TD> </TR> <TR VALIGN="TOP"> <TD WIDTH="72%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="11%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="11%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD> <TD WIDTH="1%"><FONT SIZE=1> </FONT></TD> </TR> <TR BGCOLOR="White" VALIGN="TOP"> <TD WIDTH="72%"><FONT SIZE=1>Total interest charges</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=1>88,416</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=1>38,348</FONT></TD> <TD WIDTH="1%"><FONT SIZE=1> </FONT></TD> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="TOP"> <TD WIDTH="72%"><FONT SIZE=1>Distributions on redeemable preferred securities of subsidiary trust</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=1>3,938</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=1>3,938</FONT></TD> <TD WIDTH="1%"><FONT SIZE=1> </FONT></TD> </TR> <TR VALIGN="TOP"> <TD WIDTH="72%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="11%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="11%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD> <TD WIDTH="1%"><FONT SIZE=1> </FONT></TD> </TR> <TR BGCOLOR="White" VALIGN="TOP"> <TD WIDTH="72%"><FONT SIZE=1>Total financing costs</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=1>92,354</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=1>42,286</FONT></TD> <TD WIDTH="1%"><FONT SIZE=1> </FONT></TD> </TR> <TR VALIGN="TOP"> <TD WIDTH="72%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="11%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="11%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD> <TD WIDTH="1%"><FONT SIZE=1> </FONT></TD> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="TOP"> <TD WIDTH="72%"><FONT SIZE=1>Net income</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=1>48,001</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=1>52,321</FONT></TD> <TD WIDTH="1%"><FONT SIZE=1> </FONT></TD> </TR> <TR BGCOLOR="White" VALIGN="TOP"> <TD WIDTH="72%"><FONT SIZE=1>Preferred stock dividends</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=1>1,060</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=1>1,060</FONT></TD> <TD WIDTH="1%"><FONT SIZE=1> </FONT></TD> </TR> <TR VALIGN="TOP"> <TD WIDTH="72%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="11%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="11%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD> <TD WIDTH="1%"><FONT SIZE=1> </FONT></TD> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="TOP"> <TD WIDTH="72%"><FONT SIZE=1>Earnings available for common stock</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1>$</FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=1>46,941</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1>$</FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=1>51,261</FONT></TD> <TD WIDTH="1%"><FONT SIZE=1> </FONT></TD> </TR> <TR VALIGN="TOP"> <TD WIDTH="72%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="11%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="11%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD> <TD WIDTH="1%"><FONT SIZE=1> </FONT></TD> </TR> <TR BGCOLOR="White" VALIGN="TOP"> <TD WIDTH="72%"><FONT SIZE=1>Average number of common shares outstanding (000's)</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=1>155,891</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=1>152,392</FONT></TD> <TD WIDTH="1%"><FONT SIZE=1> </FONT></TD> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="TOP"> <TD WIDTH="72%"><FONT SIZE=1>Average number of common and potentially dilutive shares outstanding (000's)</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=1>155,906</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=1>152,553</FONT></TD> <TD WIDTH="1%"><FONT SIZE=1> </FONT></TD> </TR> <TR BGCOLOR="White" VALIGN="TOP"> <TD WIDTH="72%"><FONT SIZE=1>Earnings per average common share—basic</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1>$</FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=1>0.30</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1>$</FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=1>0.34</FONT></TD> <TD WIDTH="1%"><FONT SIZE=1> </FONT></TD> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="TOP"> <TD WIDTH="72%"><FONT SIZE=1>Earnings per average common share—diluted</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1>$</FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=1>0.30</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1>$</FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=1>0.34</FONT></TD> <TD WIDTH="1%"><FONT SIZE=1> </FONT></TD> </TR> <TR BGCOLOR="White" VALIGN="TOP"> <TD WIDTH="72%"><FONT SIZE=1>Common dividends declared per share</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1>$</FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=1>0.3625</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1>$</FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=1>0.3575</FONT></TD> <TD WIDTH="1%"><FONT SIZE=1> </FONT></TD> </TR> <TR VALIGN="BOTTOM"> <TH WIDTH="72%" ALIGN="CENTER"><FONT SIZE=1> <BR></FONT> <FONT SIZE=1><B>Consolidated Statements of Retained Earnings (Unaudited)</B></FONT><HR NOSHADE></TH> <TH WIDTH="2%"><FONT SIZE=1><B> <BR> </B></FONT></TH> <TH WIDTH="11%" COLSPAN=2 ALIGN="LEFT"><FONT SIZE=1><B> <BR> </B></FONT><BR></TH> <TH WIDTH="2%"><FONT SIZE=1><B> <BR> </B></FONT></TH> <TH WIDTH="11%" COLSPAN=2 ALIGN="LEFT"><FONT SIZE=1><B> <BR> </B></FONT><BR></TH> <TH WIDTH="1%"><FONT SIZE=1><B> <BR> </B></FONT></TH> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="TOP"> <TD WIDTH="72%"><FONT SIZE=1>Balance at beginning of period</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1>$</FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=1>1,434,247</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1>$</FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=1>1,432,696</FONT></TD> <TD WIDTH="1%"><FONT SIZE=1> </FONT></TD> </TR> <TR BGCOLOR="White" VALIGN="TOP"> <TD WIDTH="72%"><FONT SIZE=1>Net income for period</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=1>48,001</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=1>52,321</FONT></TD> <TD WIDTH="1%"><FONT SIZE=1> </FONT></TD> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="TOP"> <TD WIDTH="72%"><FONT SIZE=1>Dividends declared:</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="9%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="9%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="1%"><FONT SIZE=1> </FONT></TD> </TR> <TR BGCOLOR="White" VALIGN="TOP"> <TD WIDTH="72%"><FONT SIZE=1>Cumulative preferred stock</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=1>(1,060</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1>)</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=1>(1,060</FONT></TD> <TD WIDTH="1%"><FONT SIZE=1>)</FONT></TD> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="TOP"> <TD WIDTH="72%"><FONT SIZE=1>Common stock</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=1>(56,682</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1>)</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=1>(54,547</FONT></TD> <TD WIDTH="1%"><FONT SIZE=1>)</FONT></TD> </TR> <TR VALIGN="TOP"> <TD WIDTH="72%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="11%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="11%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD> <TD WIDTH="1%"><FONT SIZE=1> </FONT></TD> </TR> <TR BGCOLOR="White" VALIGN="TOP"> <TD WIDTH="72%"><FONT SIZE=1>Balance at end of period</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1>$</FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=1>1,424,506</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1>$</FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=1>1,429,410</FONT></TD> <TD WIDTH="1%"><FONT SIZE=1> </FONT></TD> </TR> <TR VALIGN="TOP"> <TD WIDTH="72%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="11%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="11%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD> <TD WIDTH="1%"><FONT SIZE=1> </FONT></TD> </TR> </TABLE> <!-- end of user-specified TAGGED TABLE --> <P ALIGN="CENTER"><FONT SIZE=2>The Notes to Consolidated Financial Statements are an integral part of the Statements of Income and Retained Earnings.</FONT></P> <P ALIGN="CENTER"><FONT SIZE=2>1</FONT></P> <P><FONT SIZE=2><HR NOSHADE></FONT></P> <!-- ZEQ.=1,SEQ=2,EFW="2013583",CP="NORTHERN STATES POWER CO /MN/",DN="1",CHK=709727,FOLIO=1,FILE='DISK014:[00STP0.00STP1600]DE1600A.;13',USER='VDESIO',CD=';5-MAY-2000;11:31 --> <!-- Generated by Merrill Corporation (www.merrillcorp.com) --> <P ALIGN="CENTER"><FONT SIZE=2><B>Northern States Power Company (Minnesota) and Subsidiaries</B></FONT></P> <P ALIGN="CENTER"><FONT SIZE=2><B>Consolidated Statements of Cash Flows (Unaudited)</B></FONT></P> <!-- User-specified TAGGED TABLE --> <TABLE WIDTH="86%" BORDER=0 CELLSPACING=0 CELLPADDING=0> <TR VALIGN="BOTTOM"> <TH WIDTH="67%" ALIGN="LEFT"><FONT SIZE=2> </FONT><BR></TH> <TH WIDTH="2%"><FONT SIZE=1> </FONT></TH> <TH WIDTH="29%" COLSPAN=5 ALIGN="CENTER"><FONT SIZE=1><B>Three Months Ended<BR> March 31,</B></FONT><HR NOSHADE></TH> <TH WIDTH="1%"><FONT SIZE=1> </FONT></TH> </TR> <TR VALIGN="BOTTOM"> <TH WIDTH="67%" ALIGN="LEFT"><FONT SIZE=1> </FONT><BR></TH> <TH WIDTH="2%"><FONT SIZE=1> </FONT></TH> <TH WIDTH="15%" COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>2000</B></FONT><HR NOSHADE></TH> <TH WIDTH="2%"><FONT SIZE=1> </FONT></TH> <TH WIDTH="13%" COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>1999</B></FONT><HR NOSHADE></TH> <TH WIDTH="1%"><FONT SIZE=1> </FONT></TH> </TR> <TR VALIGN="BOTTOM"> <TH WIDTH="67%" ALIGN="LEFT"><FONT SIZE=1> </FONT><BR></TH> <TH WIDTH="2%"><FONT SIZE=1> </FONT></TH> <TH WIDTH="29%" COLSPAN=5 ALIGN="CENTER"><FONT SIZE=1><B>(Thousands of dollars)<BR></B></FONT><BR></TH> <TH WIDTH="1%"><FONT SIZE=1> </FONT></TH> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="TOP"> <TD WIDTH="67%"><FONT SIZE=2><B>Cash Flows from Operating Activities:</B></FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="12%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="10%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="1%"><FONT SIZE=2> </FONT></TD> </TR> <TR BGCOLOR="White" VALIGN="TOP"> <TD WIDTH="67%"><FONT SIZE=2>Net Income</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD> <TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>48,001</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD> <TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2>52,321</FONT></TD> <TD WIDTH="1%"><FONT SIZE=2> </FONT></TD> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="TOP"> <TD WIDTH="67%"><FONT SIZE=2>Adjustments to reconcile net income to cash from operating activities:</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="12%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="10%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="1%"><FONT SIZE=2> </FONT></TD> </TR> <TR BGCOLOR="White" VALIGN="TOP"> <TD WIDTH="67%"><FONT SIZE=2>Depreciation and amortization</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>123,444</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2>98,698</FONT></TD> <TD WIDTH="1%"><FONT SIZE=2> </FONT></TD> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="TOP"> <TD WIDTH="67%"><FONT SIZE=2>Nuclear fuel amortization</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>9,227</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2>12,944</FONT></TD> <TD WIDTH="1%"><FONT SIZE=2> </FONT></TD> </TR> <TR BGCOLOR="White" VALIGN="TOP"> <TD WIDTH="67%"><FONT SIZE=2>Deferred income taxes</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>10,626</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2>(5,529</FONT></TD> <TD WIDTH="1%"><FONT SIZE=2>)</FONT></TD> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="TOP"> <TD WIDTH="67%"><FONT SIZE=2>Deferred investment tax credits recognized</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>(2,298</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2>(2,237</FONT></TD> <TD WIDTH="1%"><FONT SIZE=2>)</FONT></TD> </TR> <TR BGCOLOR="White" VALIGN="TOP"> <TD WIDTH="67%"><FONT SIZE=2>Allowance for funds used during construction—equity</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>(1,277</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2>(3,175</FONT></TD> <TD WIDTH="1%"><FONT SIZE=2>)</FONT></TD> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="TOP"> <TD WIDTH="67%"><FONT SIZE=2>Distributions in excess of equity in earnings of unconsolidated affiliates</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>17,524</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2>2,975</FONT></TD> <TD WIDTH="1%"><FONT SIZE=2> </FONT></TD> </TR> <TR BGCOLOR="White" VALIGN="TOP"> <TD WIDTH="67%"><FONT SIZE=2>Cash provided by changes in certain working capital items</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>92,496</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2>95,781</FONT></TD> <TD WIDTH="1%"><FONT SIZE=2> </FONT></TD> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="TOP"> <TD WIDTH="67%"><FONT SIZE=2>Cash provided by changes in other assets and liabilities</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>53,019</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2>9,800</FONT></TD> <TD WIDTH="1%"><FONT SIZE=2> </FONT></TD> </TR> <TR VALIGN="TOP"> <TD WIDTH="67%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="15%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="13%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD> <TD WIDTH="1%"><FONT SIZE=2> </FONT></TD> </TR> <TR BGCOLOR="White" VALIGN="TOP"> <TD WIDTH="67%"><FONT SIZE=2>Net cash provided by operating activities</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>350,762</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2>261,578</FONT></TD> <TD WIDTH="1%"><FONT SIZE=2> </FONT></TD> </TR> <TR VALIGN="TOP"> <TD WIDTH="67%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="15%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="13%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD> <TD WIDTH="1%"><FONT SIZE=2> </FONT></TD> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="TOP"> <TD WIDTH="67%"><FONT SIZE=2><B>Cash Flows from Investing Activities:</B></FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="12%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="10%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="1%"><FONT SIZE=2> </FONT></TD> </TR> <TR BGCOLOR="White" VALIGN="TOP"> <TD WIDTH="67%"><FONT SIZE=2>Capital expenditures:</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="12%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="10%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="1%"><FONT SIZE=2> </FONT></TD> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="TOP"> <TD WIDTH="67%"><FONT SIZE=2>Nonregulated property additions and asset acquisitions</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>(1,780,073</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2>(7,389</FONT></TD> <TD WIDTH="1%"><FONT SIZE=2>)</FONT></TD> </TR> <TR BGCOLOR="White" VALIGN="TOP"> <TD WIDTH="67%"><FONT SIZE=2>Utility plant additions</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>(99,763</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2>(88,684</FONT></TD> <TD WIDTH="1%"><FONT SIZE=2>)</FONT></TD> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="TOP"> <TD WIDTH="67%"><FONT SIZE=2>Increase (decrease) in construction payables</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>(8,529</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2>5,547</FONT></TD> <TD WIDTH="1%"><FONT SIZE=2> </FONT></TD> </TR> <TR BGCOLOR="White" VALIGN="TOP"> <TD WIDTH="67%"><FONT SIZE=2>Allowance for funds used during construction—equity</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>1,277</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2>3,175</FONT></TD> <TD WIDTH="1%"><FONT SIZE=2> </FONT></TD> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="TOP"> <TD WIDTH="67%"><FONT SIZE=2>Investment in external decommissioning fund</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>(8,927</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2>(12,280</FONT></TD> <TD WIDTH="1%"><FONT SIZE=2>)</FONT></TD> </TR> <TR BGCOLOR="White" VALIGN="TOP"> <TD WIDTH="67%"><FONT SIZE=2>Equity investments, loans and deposits for nonregulated projects</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>(17,844</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2>(23,145</FONT></TD> <TD WIDTH="1%"><FONT SIZE=2>)</FONT></TD> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="TOP"> <TD WIDTH="67%"><FONT SIZE=2>Collection of loans made to nonregulated projects</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>302</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2>6,030</FONT></TD> <TD WIDTH="1%"><FONT SIZE=2> </FONT></TD> </TR> <TR BGCOLOR="White" VALIGN="TOP"> <TD WIDTH="67%"><FONT SIZE=2>Other investments—net</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>(7,468</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2>(9,785</FONT></TD> <TD WIDTH="1%"><FONT SIZE=2>)</FONT></TD> </TR> <TR VALIGN="TOP"> <TD WIDTH="67%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="15%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="13%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD> <TD WIDTH="1%"><FONT SIZE=2> </FONT></TD> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="TOP"> <TD WIDTH="67%"><FONT SIZE=2>Net cash used for investing activities</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>(1,921,025</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2>(126,531</FONT></TD> <TD WIDTH="1%"><FONT SIZE=2>)</FONT></TD> </TR> <TR VALIGN="TOP"> <TD WIDTH="67%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="15%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="13%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD> <TD WIDTH="1%"><FONT SIZE=2> </FONT></TD> </TR> <TR BGCOLOR="White" VALIGN="TOP"> <TD WIDTH="67%"><FONT SIZE=2><B>Cash Flows from Financing Activities:</B></FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="12%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="10%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="1%"><FONT SIZE=2> </FONT></TD> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="TOP"> <TD WIDTH="67%"><FONT SIZE=2>Increase in short-term debt—net issuances</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>215,411</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2>129,802</FONT></TD> <TD WIDTH="1%"><FONT SIZE=2> </FONT></TD> </TR> <TR BGCOLOR="White" VALIGN="TOP"> <TD WIDTH="67%"><FONT SIZE=2>Proceeds from issuance of long-term debt—net</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>2,215,844</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2>—</FONT></TD> <TD WIDTH="1%"><FONT SIZE=2> </FONT></TD> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="TOP"> <TD WIDTH="67%"><FONT SIZE=2>Repayment of long-term debt</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>(688,897</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2>(206,710</FONT></TD> <TD WIDTH="1%"><FONT SIZE=2>)</FONT></TD> </TR> <TR BGCOLOR="White" VALIGN="TOP"> <TD WIDTH="67%"><FONT SIZE=2>Proceeds from issuance of common stock—net</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>17,351</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2>12,905</FONT></TD> <TD WIDTH="1%"><FONT SIZE=2> </FONT></TD> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="TOP"> <TD WIDTH="67%"><FONT SIZE=2>Dividends paid</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>(57,435</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2>(55,128</FONT></TD> <TD WIDTH="1%"><FONT SIZE=2>)</FONT></TD> </TR> <TR VALIGN="TOP"> <TD WIDTH="67%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="15%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="13%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD> <TD WIDTH="1%"><FONT SIZE=2> </FONT></TD> </TR> <TR BGCOLOR="White" VALIGN="TOP"> <TD WIDTH="67%"><FONT SIZE=2>Net cash provided by (used for) financing activities</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>1,702,274</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2>(119,131</FONT></TD> <TD WIDTH="1%"><FONT SIZE=2>)</FONT></TD> </TR> <TR VALIGN="TOP"> <TD WIDTH="67%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="15%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="13%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD> <TD WIDTH="1%"><FONT SIZE=2> </FONT></TD> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="TOP"> <TD WIDTH="67%"><FONT SIZE=2>Net increase in cash and cash equivalents</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>132,011</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2>15,916</FONT></TD> <TD WIDTH="1%"><FONT SIZE=2> </FONT></TD> </TR> <TR BGCOLOR="White" VALIGN="TOP"> <TD WIDTH="67%"><FONT SIZE=2>Cash and cash equivalents at beginning of period</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>55,968</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2>42,364</FONT></TD> <TD WIDTH="1%"><FONT SIZE=2> </FONT></TD> </TR> <TR VALIGN="TOP"> <TD WIDTH="67%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="15%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="13%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD> <TD WIDTH="1%"><FONT SIZE=2> </FONT></TD> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="TOP"> <TD WIDTH="67%"><FONT SIZE=2>Cash and cash equivalents at end of period</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD> <TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>187,979</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD> <TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2>58,280</FONT></TD> <TD WIDTH="1%"><FONT SIZE=2> </FONT></TD> </TR> <TR VALIGN="TOP"> <TD WIDTH="67%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="15%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="13%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD> <TD WIDTH="1%"><FONT SIZE=2> </FONT></TD> </TR> </TABLE> <!-- end of user-specified TAGGED TABLE --> <P ALIGN="CENTER"><FONT SIZE=2>The Notes to Consolidated Financial Statements are an integral part of the Statements of Cash Flows.</FONT></P> <P ALIGN="CENTER"><FONT SIZE=2>2</FONT></P> <P><FONT SIZE=2><HR NOSHADE></FONT></P> <!-- ZEQ.=1,SEQ=3,EFW="2013583",CP="NORTHERN STATES POWER CO /MN/",DN="1",CHK=288068,FOLIO=2,FILE='DISK014:[00STP0.00STP1600]DF1600A.;9',USER='MGUZA',CD=';5-MAY-2000;13:26 --> <!-- Generated by Merrill Corporation (www.merrillcorp.com) --> <H2><FONT SIZE=2> </FONT></H2> <P ALIGN="CENTER"><FONT SIZE=2><A NAME="dg1600_northern_states_power_company___nor03764"> </A></FONT> <FONT SIZE=2><B>Northern States Power Company (Minnesota) and Subsidiaries<BR> Consolidated Balance Sheets (Unaudited) </B></FONT></P> <!-- User-specified TAGGED TABLE --> <TABLE WIDTH="91%" BORDER=0 CELLSPACING=0 CELLPADDING=0> <TR VALIGN="BOTTOM"> <TH WIDTH="68%" ALIGN="LEFT"><FONT SIZE=1> </FONT><BR></TH> <TH WIDTH="2%"><FONT SIZE=1> </FONT></TH> <TH WIDTH="12%" COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>March 31,<BR> 2000</B></FONT><HR NOSHADE></TH> <TH WIDTH="2%"><FONT SIZE=1> </FONT></TH> <TH WIDTH="15%" COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>December 31,<BR> 1999</B></FONT><HR NOSHADE></TH> <TH WIDTH="1%"><FONT SIZE=1> </FONT></TH> </TR> <TR VALIGN="BOTTOM"> <TH WIDTH="68%" ALIGN="LEFT"><FONT SIZE=1> </FONT><BR></TH> <TH WIDTH="2%"><FONT SIZE=1> </FONT></TH> <TH WIDTH="29%" COLSPAN=5 ALIGN="CENTER"><FONT SIZE=1><B>(Thousands of dollars)<BR></B></FONT><BR></TH> <TH WIDTH="1%"><FONT SIZE=1> </FONT></TH> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM"> <TD WIDTH="99%" COLSPAN=7 ALIGN="CENTER"><FONT SIZE=1><B>ASSETS</B></FONT></TD> <TD WIDTH="1%"><FONT SIZE=1> </FONT></TD> </TR> <TR BGCOLOR="White" VALIGN="BOTTOM"> <TD WIDTH="68%"><FONT SIZE=1>Utility Plant</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="10%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="13%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="1%"><FONT SIZE=1> </FONT></TD> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM"> <TD WIDTH="68%"><FONT SIZE=1>Electric</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1>$</FONT></TD> <TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=1>7,481,137</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1>$</FONT></TD> <TD WIDTH="13%" ALIGN="RIGHT"><FONT SIZE=1>7,430,686</FONT></TD> <TD WIDTH="1%"><FONT SIZE=1> </FONT></TD> </TR> <TR BGCOLOR="White" VALIGN="BOTTOM"> <TD WIDTH="68%"><FONT SIZE=1>Gas</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=1>956,047</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="13%" ALIGN="RIGHT"><FONT SIZE=1>952,131</FONT></TD> <TD WIDTH="1%"><FONT SIZE=1> </FONT></TD> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM"> <TD WIDTH="68%"><FONT SIZE=1>Other</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=1>382,468</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="13%" ALIGN="RIGHT"><FONT SIZE=1>375,058</FONT></TD> <TD WIDTH="1%"><FONT SIZE=1> </FONT></TD> </TR> <TR VALIGN="TOP"> <TD WIDTH="68%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="12%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="15%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD> <TD WIDTH="1%"><FONT SIZE=1> </FONT></TD> </TR> <TR BGCOLOR="White" VALIGN="BOTTOM"> <TD WIDTH="68%"><FONT SIZE=1>Total</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=1>8,819,652</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="13%" ALIGN="RIGHT"><FONT SIZE=1>8,757,875</FONT></TD> <TD WIDTH="1%"><FONT SIZE=1> </FONT></TD> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM"> <TD WIDTH="68%"><FONT SIZE=1>Accumulated provision for depreciation</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=1>(4,477,701</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1>)</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="13%" ALIGN="RIGHT"><FONT SIZE=1>(4,409,151</FONT></TD> <TD WIDTH="1%"><FONT SIZE=1>)</FONT></TD> </TR> <TR BGCOLOR="White" VALIGN="BOTTOM"> <TD WIDTH="68%"><FONT SIZE=1>Nuclear fuel</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=1>1,039,213</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="13%" ALIGN="RIGHT"><FONT SIZE=1>1,026,063</FONT></TD> <TD WIDTH="1%"><FONT SIZE=1> </FONT></TD> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM"> <TD WIDTH="68%"><FONT SIZE=1>Accumulated provision for amortization</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=1>(932,564</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1>)</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="13%" ALIGN="RIGHT"><FONT SIZE=1>(923,336</FONT></TD> <TD WIDTH="1%"><FONT SIZE=1>)</FONT></TD> </TR> <TR VALIGN="TOP"> <TD WIDTH="68%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="12%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="15%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD> <TD WIDTH="1%"><FONT SIZE=1> </FONT></TD> </TR> <TR BGCOLOR="White" VALIGN="BOTTOM"> <TD WIDTH="68%"><FONT SIZE=1>Net utility plant</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=1>4,448,600</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="13%" ALIGN="RIGHT"><FONT SIZE=1>4,451,451</FONT></TD> <TD WIDTH="1%"><FONT SIZE=1> </FONT></TD> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM"> <TD WIDTH="68%"><FONT SIZE=1>Current Assets</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="10%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="13%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="1%"><FONT SIZE=1> </FONT></TD> </TR> <TR BGCOLOR="White" VALIGN="BOTTOM"> <TD WIDTH="68%"><FONT SIZE=1>Cash and cash equivalents</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=1>187,979</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="13%" ALIGN="RIGHT"><FONT SIZE=1>55,968</FONT></TD> <TD WIDTH="1%"><FONT SIZE=1> </FONT></TD> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM"> <TD WIDTH="68%"><FONT SIZE=1>Customer accounts receivable—net</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=1>386,258</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="13%" ALIGN="RIGHT"><FONT SIZE=1>370,270</FONT></TD> <TD WIDTH="1%"><FONT SIZE=1> </FONT></TD> </TR> <TR BGCOLOR="White" VALIGN="BOTTOM"> <TD WIDTH="68%"><FONT SIZE=1>Unbilled utility revenues</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=1>127,087</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="13%" ALIGN="RIGHT"><FONT SIZE=1>144,261</FONT></TD> <TD WIDTH="1%"><FONT SIZE=1> </FONT></TD> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM"> <TD WIDTH="68%"><FONT SIZE=1>Other receivables</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=1>32,700</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="13%" ALIGN="RIGHT"><FONT SIZE=1>58,680</FONT></TD> <TD WIDTH="1%"><FONT SIZE=1> </FONT></TD> </TR> <TR BGCOLOR="White" VALIGN="BOTTOM"> <TD WIDTH="68%"><FONT SIZE=1>Fossil fuel inventories—at average cost</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=1>43,890</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="13%" ALIGN="RIGHT"><FONT SIZE=1>59,600</FONT></TD> <TD WIDTH="1%"><FONT SIZE=1> </FONT></TD> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM"> <TD WIDTH="68%"><FONT SIZE=1>Materials and supplies inventories—at average cost</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=1>276,856</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="13%" ALIGN="RIGHT"><FONT SIZE=1>231,503</FONT></TD> <TD WIDTH="1%"><FONT SIZE=1> </FONT></TD> </TR> <TR BGCOLOR="White" VALIGN="BOTTOM"> <TD WIDTH="68%"><FONT SIZE=1>Prepayments and other</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=1>101,701</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="13%" ALIGN="RIGHT"><FONT SIZE=1>113,524</FONT></TD> <TD WIDTH="1%"><FONT SIZE=1> </FONT></TD> </TR> <TR VALIGN="TOP"> <TD WIDTH="68%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="12%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="15%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD> <TD WIDTH="1%"><FONT SIZE=1> </FONT></TD> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM"> <TD WIDTH="68%"><FONT SIZE=1>Total current assets</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=1>1,156,471</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="13%" ALIGN="RIGHT"><FONT SIZE=1>1,033,806</FONT></TD> <TD WIDTH="1%"><FONT SIZE=1> </FONT></TD> </TR> <TR BGCOLOR="White" VALIGN="BOTTOM"> <TD WIDTH="68%"><FONT SIZE=1><B>Other Assets</B></FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="10%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="13%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="1%"><FONT SIZE=1> </FONT></TD> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM"> <TD WIDTH="68%"><FONT SIZE=1>Nonregulated property—net of accumulated depreciation</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=1>3,852,053</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="13%" ALIGN="RIGHT"><FONT SIZE=1>2,086,476</FONT></TD> <TD WIDTH="1%"><FONT SIZE=1> </FONT></TD> </TR> <TR BGCOLOR="White" VALIGN="BOTTOM"> <TD WIDTH="68%"><FONT SIZE=1>Equity investments in nonregulated projects</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=1>960,369</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="13%" ALIGN="RIGHT"><FONT SIZE=1>1,047,248</FONT></TD> <TD WIDTH="1%"><FONT SIZE=1> </FONT></TD> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM"> <TD WIDTH="68%"><FONT SIZE=1>External decommissioning fund and other investments</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=1>581,650</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="13%" ALIGN="RIGHT"><FONT SIZE=1>561,682</FONT></TD> <TD WIDTH="1%"><FONT SIZE=1> </FONT></TD> </TR> <TR BGCOLOR="White" VALIGN="BOTTOM"> <TD WIDTH="68%"><FONT SIZE=1>Regulatory assets</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=1>229,643</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="13%" ALIGN="RIGHT"><FONT SIZE=1>248,127</FONT></TD> <TD WIDTH="1%"><FONT SIZE=1> </FONT></TD> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM"> <TD WIDTH="68%"><FONT SIZE=1>Notes receivable from nonregulated projects</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=1>66,766</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="13%" ALIGN="RIGHT"><FONT SIZE=1>66,876</FONT></TD> <TD WIDTH="1%"><FONT SIZE=1> </FONT></TD> </TR> <TR BGCOLOR="White" VALIGN="BOTTOM"> <TD WIDTH="68%"><FONT SIZE=1>Long-term prepayments, deferred charges and receivables</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=1>182,213</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="13%" ALIGN="RIGHT"><FONT SIZE=1>158,096</FONT></TD> <TD WIDTH="1%"><FONT SIZE=1> </FONT></TD> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM"> <TD WIDTH="68%"><FONT SIZE=1>Intangible assets—net of accumulated amortization</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=1>118,528</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="13%" ALIGN="RIGHT"><FONT SIZE=1>113,969</FONT></TD> <TD WIDTH="1%"><FONT SIZE=1> </FONT></TD> </TR> <TR VALIGN="TOP"> <TD WIDTH="68%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="12%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="15%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD> <TD WIDTH="1%"><FONT SIZE=1> </FONT></TD> </TR> <TR BGCOLOR="White" VALIGN="BOTTOM"> <TD WIDTH="68%"><FONT SIZE=1>Total other assets</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=1>5,991,222</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="13%" ALIGN="RIGHT"><FONT SIZE=1>4,282,474</FONT></TD> <TD WIDTH="1%"><FONT SIZE=1> </FONT></TD> </TR> <TR VALIGN="TOP"> <TD WIDTH="68%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="12%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="15%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD> <TD WIDTH="1%"><FONT SIZE=1> </FONT></TD> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM"> <TD WIDTH="68%"><FONT SIZE=1>TOTAL ASSETS</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1>$</FONT></TD> <TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=1>11,596,293</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1>$</FONT></TD> <TD WIDTH="13%" ALIGN="RIGHT"><FONT SIZE=1>9,767,731</FONT></TD> <TD WIDTH="1%"><FONT SIZE=1> </FONT></TD> </TR> <TR VALIGN="TOP"> <TD WIDTH="68%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="12%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="15%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD> <TD WIDTH="1%"><FONT SIZE=1> </FONT></TD> </TR> <TR BGCOLOR="White" VALIGN="BOTTOM"> <TD WIDTH="99%" COLSPAN=7 ALIGN="CENTER"><FONT SIZE=1><B>LIABILITIES AND EQUITY</B></FONT></TD> <TD WIDTH="1%"><FONT SIZE=1> </FONT></TD> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM"> <TD WIDTH="68%"><FONT SIZE=1>Capitalization</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="10%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="13%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="1%"><FONT SIZE=1> </FONT></TD> </TR> <TR BGCOLOR="White" VALIGN="BOTTOM"> <TD WIDTH="68%"><FONT SIZE=1>Common stock equity:</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="10%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="13%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="1%"><FONT SIZE=1> </FONT></TD> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM"> <TD WIDTH="68%"><FONT SIZE=1>Common stock and premium—authorized: 2000 350,000,000 and 1999 350,000,000 shares of $2.50 par value, issued shares: 2000 156,607,592 and 1999 155,729,663</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1>$</FONT></TD> <TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=1>1,227,743</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1>$</FONT></TD> <TD WIDTH="13%" ALIGN="RIGHT"><FONT SIZE=1>1,210,359</FONT></TD> <TD WIDTH="1%"><FONT SIZE=1> </FONT></TD> </TR> <TR BGCOLOR="White" VALIGN="BOTTOM"> <TD WIDTH="68%"><FONT SIZE=1>Retained earnings</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=1>1,424,506</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="13%" ALIGN="RIGHT"><FONT SIZE=1>1,434,247</FONT></TD> <TD WIDTH="1%"><FONT SIZE=1> </FONT></TD> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM"> <TD WIDTH="68%"><FONT SIZE=1>Leveraged common stock held by ESOP</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=1>(9,874</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1>)</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="13%" ALIGN="RIGHT"><FONT SIZE=1>(11,606</FONT></TD> <TD WIDTH="1%"><FONT SIZE=1>)</FONT></TD> </TR> <TR BGCOLOR="White" VALIGN="BOTTOM"> <TD WIDTH="68%"><FONT SIZE=1>Accumulated other comprehensive income</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=1>(105,750</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1>)</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="13%" ALIGN="RIGHT"><FONT SIZE=1>(75,470</FONT></TD> <TD WIDTH="1%"><FONT SIZE=1>)</FONT></TD> </TR> <TR VALIGN="TOP"> <TD WIDTH="68%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="12%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="15%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD> <TD WIDTH="1%"><FONT SIZE=1> </FONT></TD> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM"> <TD WIDTH="68%"><FONT SIZE=1>Total common stock equity</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=1>2,536,625</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="13%" ALIGN="RIGHT"><FONT SIZE=1>2,557,530</FONT></TD> <TD WIDTH="1%"><FONT SIZE=1> </FONT></TD> </TR> <TR BGCOLOR="White" VALIGN="BOTTOM"> <TD WIDTH="68%"><FONT SIZE=1>Cumulative preferred stock and premium—authorized 7,000,000 shares of $100 par value; outstanding shares: 2000 1,050,000 and 1999 1,050,000 without mandatory redemption</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=1>105,340</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="13%" ALIGN="RIGHT"><FONT SIZE=1>105,340</FONT></TD> <TD WIDTH="1%"><FONT SIZE=1> </FONT></TD> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM"> <TD WIDTH="68%"><FONT SIZE=1>Mandatorily redeemable preferred securities of subsidiary trust—guaranteed by NSP*</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=1>200,000</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="13%" ALIGN="RIGHT"><FONT SIZE=1>200,000</FONT></TD> <TD WIDTH="1%"><FONT SIZE=1> </FONT></TD> </TR> <TR BGCOLOR="White" VALIGN="BOTTOM"> <TD WIDTH="68%"><FONT SIZE=1>Long-term debt</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=1>4,983,910</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="13%" ALIGN="RIGHT"><FONT SIZE=1>3,453,364</FONT></TD> <TD WIDTH="1%"><FONT SIZE=1> </FONT></TD> </TR> <TR VALIGN="TOP"> <TD WIDTH="68%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="12%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="15%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD> <TD WIDTH="1%"><FONT SIZE=1> </FONT></TD> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM"> <TD WIDTH="68%"><FONT SIZE=1>Total capitalization</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=1>7,825,875</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="13%" ALIGN="RIGHT"><FONT SIZE=1>6,316,234</FONT></TD> <TD WIDTH="1%"><FONT SIZE=1> </FONT></TD> </TR> <TR BGCOLOR="White" VALIGN="BOTTOM"> <TD WIDTH="68%"><FONT SIZE=1><B>Current Liabilities</B></FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="10%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="13%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="1%"><FONT SIZE=1> </FONT></TD> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM"> <TD WIDTH="68%"><FONT SIZE=1>Long-term debt due within one year</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=1>145,790</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="13%" ALIGN="RIGHT"><FONT SIZE=1>153,231</FONT></TD> <TD WIDTH="1%"><FONT SIZE=1> </FONT></TD> </TR> <TR BGCOLOR="White" VALIGN="BOTTOM"> <TD WIDTH="68%"><FONT SIZE=1>Other long-term debt potentially due within one year</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=1>141,600</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="13%" ALIGN="RIGHT"><FONT SIZE=1>141,600</FONT></TD> <TD WIDTH="1%"><FONT SIZE=1> </FONT></TD> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM"> <TD WIDTH="68%"><FONT SIZE=1>Short-term debt—utility</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=1>408,442</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="13%" ALIGN="RIGHT"><FONT SIZE=1>420,443</FONT></TD> <TD WIDTH="1%"><FONT SIZE=1> </FONT></TD> </TR> <TR BGCOLOR="White" VALIGN="BOTTOM"> <TD WIDTH="68%"><FONT SIZE=1>Short-term debt—nonregulated</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=1>606,128</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="13%" ALIGN="RIGHT"><FONT SIZE=1>378,716</FONT></TD> <TD WIDTH="1%"><FONT SIZE=1> </FONT></TD> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM"> <TD WIDTH="68%"><FONT SIZE=1>Accounts payable</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=1>315,577</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="13%" ALIGN="RIGHT"><FONT SIZE=1>321,382</FONT></TD> <TD WIDTH="1%"><FONT SIZE=1> </FONT></TD> </TR> <TR BGCOLOR="White" VALIGN="BOTTOM"> <TD WIDTH="68%"><FONT SIZE=1>Taxes accrued</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=1>226,323</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="13%" ALIGN="RIGHT"><FONT SIZE=1>172,059</FONT></TD> <TD WIDTH="1%"><FONT SIZE=1> </FONT></TD> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM"> <TD WIDTH="68%"><FONT SIZE=1>Interest accrued</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=1>66,049</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="13%" ALIGN="RIGHT"><FONT SIZE=1>49,327</FONT></TD> <TD WIDTH="1%"><FONT SIZE=1> </FONT></TD> </TR> <TR BGCOLOR="White" VALIGN="BOTTOM"> <TD WIDTH="68%"><FONT SIZE=1>Dividends payable on common and preferred stocks</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=1>57,831</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="13%" ALIGN="RIGHT"><FONT SIZE=1>57,523</FONT></TD> <TD WIDTH="1%"><FONT SIZE=1> </FONT></TD> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM"> <TD WIDTH="68%"><FONT SIZE=1>Accrued payroll, vacation and other</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=1>91,312</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="13%" ALIGN="RIGHT"><FONT SIZE=1>131,855</FONT></TD> <TD WIDTH="1%"><FONT SIZE=1> </FONT></TD> </TR> <TR VALIGN="TOP"> <TD WIDTH="68%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="12%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="15%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD> <TD WIDTH="1%"><FONT SIZE=1> </FONT></TD> </TR> <TR BGCOLOR="White" VALIGN="BOTTOM"> <TD WIDTH="68%"><FONT SIZE=1>Total current liabilities</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=1>2,059,052</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="13%" ALIGN="RIGHT"><FONT SIZE=1>1,826,136</FONT></TD> <TD WIDTH="1%"><FONT SIZE=1> </FONT></TD> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM"> <TD WIDTH="68%"><FONT SIZE=1><B>Other Liabilities</B></FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="10%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="13%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="1%"><FONT SIZE=1> </FONT></TD> </TR> <TR BGCOLOR="White" VALIGN="BOTTOM"> <TD WIDTH="68%"><FONT SIZE=1>Deferred income taxes</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=1>819,660</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="13%" ALIGN="RIGHT"><FONT SIZE=1>811,638</FONT></TD> <TD WIDTH="1%"><FONT SIZE=1> </FONT></TD> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM"> <TD WIDTH="68%"><FONT SIZE=1>Deferred investment tax credits</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=1>116,092</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="13%" ALIGN="RIGHT"><FONT SIZE=1>118,582</FONT></TD> <TD WIDTH="1%"><FONT SIZE=1> </FONT></TD> </TR> <TR BGCOLOR="White" VALIGN="BOTTOM"> <TD WIDTH="68%"><FONT SIZE=1>Regulatory liabilities</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=1>495,750</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="13%" ALIGN="RIGHT"><FONT SIZE=1>461,569</FONT></TD> <TD WIDTH="1%"><FONT SIZE=1> </FONT></TD> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM"> <TD WIDTH="68%"><FONT SIZE=1>Postretirement and other benefit obligations</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=1>139,148</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="13%" ALIGN="RIGHT"><FONT SIZE=1>143,905</FONT></TD> <TD WIDTH="1%"><FONT SIZE=1> </FONT></TD> </TR> <TR BGCOLOR="White" VALIGN="BOTTOM"> <TD WIDTH="68%"><FONT SIZE=1>Other long-term obligations and deferred income</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=1>140,716</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="13%" ALIGN="RIGHT"><FONT SIZE=1>89,667</FONT></TD> <TD WIDTH="1%"><FONT SIZE=1> </FONT></TD> </TR> <TR VALIGN="TOP"> <TD WIDTH="68%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="12%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="15%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD> <TD WIDTH="1%"><FONT SIZE=1> </FONT></TD> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM"> <TD WIDTH="68%"><FONT SIZE=1>Total other liabilities</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=1>1,711,366</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="13%" ALIGN="RIGHT"><FONT SIZE=1>1,625,361</FONT></TD> <TD WIDTH="1%"><FONT SIZE=1> </FONT></TD> </TR> <TR VALIGN="TOP"> <TD WIDTH="68%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="12%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="15%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD> <TD WIDTH="1%"><FONT SIZE=1> </FONT></TD> </TR> <TR BGCOLOR="White" VALIGN="BOTTOM"> <TD WIDTH="68%"><FONT SIZE=1>Commitments and Contingent Liabilities (See Note 4)</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="10%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="13%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="1%"><FONT SIZE=1> </FONT></TD> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM"> <TD WIDTH="68%"><FONT SIZE=1>TOTAL LIABILITIES AND EQUITY</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1>$</FONT></TD> <TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=1>11,596,293</FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1>$</FONT></TD> <TD WIDTH="13%" ALIGN="RIGHT"><FONT SIZE=1>9,767,731</FONT></TD> <TD WIDTH="1%"><FONT SIZE=1> </FONT></TD> </TR> <TR VALIGN="TOP"> <TD WIDTH="68%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="12%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD> <TD WIDTH="2%"><FONT SIZE=1> </FONT></TD> <TD WIDTH="15%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD> <TD WIDTH="1%"><FONT SIZE=1> </FONT></TD> </TR> </TABLE> <!-- end of user-specified TAGGED TABLE --> <P ALIGN="CENTER"><FONT SIZE=2>The Notes to Consolidated Financial Statements are an integral part of the Balance Sheets.</FONT></P> <P><FONT SIZE=2>* The primary asset of NSP Financing I, a subsidiary trust of NSP, is $200 million principal amount of the Company's 7.875% Junior Subordinated Debentures due 2037.</FONT></P> <P ALIGN="CENTER"><FONT SIZE=2>3</FONT></P> <P><FONT SIZE=2><HR NOSHADE></FONT></P> <!-- ZEQ.=1,SEQ=4,EFW="2013583",CP="NORTHERN STATES POWER CO /MN/",DN="1",CHK=507030,FOLIO=3,FILE='DISK014:[00STP0.00STP1600]DG1600A.;16',USER='VDESIO',CD=';5-MAY-2000;11:31 --> <!-- Generated by Merrill Corporation (www.merrillcorp.com) --> <H2><FONT SIZE=2> </FONT></H2> <P ALIGN="CENTER"><FONT SIZE=2><B>Northern States Power Company (Minnesota) and Subsidiaries</B></FONT></P> <P ALIGN="CENTER"><FONT SIZE=2><B>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</B></FONT></P> <P><FONT SIZE=2> In the opinion of management, the accompanying unaudited financial statements contain all adjustments necessary to present fairly the financial position of Northern States Power Company (Minnesota) (NSP-Minnesota) and its subsidiaries (collectively, NSP) as of March 31, 2000 and Dec. 31, 1999, the results of its operations for the three months ended March 31, 2000 and 1999, and its cash flows for the three months ended March 31, 2000 and 1999. Due to the seasonality of NSP's electric and gas sales and variability of nonregulated operations, quarterly results are not necessarily an appropriate base from which to project annual results.</FONT></P> <P><FONT SIZE=2> The accounting policies followed by NSP are set forth in Note 1 to the financial statements in NSP's Annual Report on Form 10-K for the year ended Dec. 31, 1999 (1999 Form 10-K). The following notes should be read in conjunction with such policies and other disclosures in the 1999 Form 10-K.</FONT></P> <P><FONT SIZE=2><B><I>1. Proposed Business Combination</I></B></FONT></P> <P><FONT SIZE=2> On March 24, 1999, NSP and New Century Energies, Inc. (NCE) agreed to merge and form a new entity, Xcel Energy Inc. For more discussion of this proposed business combination, see Part II, Item 5—Other Information of this report.</FONT></P> <P><FONT SIZE=2><B><I>2. Business Developments</I></B></FONT></P> <P><FONT SIZE=2> </FONT><FONT SIZE=2><B>NRG Energy, Inc. (NRG)</B></FONT><FONT SIZE=2>—In March 2000, NRG purchased 1,708 Mw of fossil-fueled generation from Cajun Electric Power Cooperative for approximately $1 billion. The output from the base-load Cajun facility will be sold principally under long-term contracts. NRG owns 100 percent of this project.</FONT></P> <P><FONT SIZE=2> In March 2000, NRG purchased the 680-Mw Killingholme A station from National Power plc. for approximately 390 million pounds sterling (approximately $615 million at end-of-quarter exchange rates). Killingholme A was commissioned in 1994 and is a combined-cycle, gas-turbine power station located in England. NRG owns 100 percent of this project.</FONT></P> <P><FONT SIZE=2> In January 2000, NRG reached agreement to purchase 1,875 Mw of fossil-fueled electric generation assets in the Northeast region of the United States from Conectiv. The purchase price is approximately $800 million. NRG will sell 500 Mw of energy around the clock to Delmarva Power and Light Company under a five-year agreement. The remaining energy and capacity will be sold into the markets in the Northeast region of the United States. NRG will own a 100 percent interest in the project. NRG expects to close the acquisition in the fourth quarter of 2000.</FONT></P> <P><FONT SIZE=2><B><I>3. Regulation and Rate Matters</I></B></FONT></P> <P><FONT SIZE=2> On Feb. 14, 2000, NSP-Wisconsin filed an application with the Public Service Commission of Wisconsin (PSCW) to increase electric rates for fuel costs. This application was subsequently updated with additional information on March 17, 2000. The increase is primarily the result of higher than forecast purchased power costs. The surcharge factor is expected to increase revenues by approximately $6.5 million in 2000 and represents an increase for a typical residential electric customer of approximately 3 percent. The PSCW issued their order granting the surcharge on May 2, 2000. The surcharge factor is expected to be effective through Dec. 31, 2001.</FONT></P> <P><FONT SIZE=2> On April 3, 2000, the Minnesota Office of Attorney General (OAG) filed a petition with the Minnesota Public Utilities Commission (MPUC) asking the MPUC to initiate an investigation of NSP's fuel and purchased energy cost recoveries under the Fuel Clause Adjustment (FCA) provisions of NSP's tariffs. The OAG alleges NSP could be improperly diverting low-cost NSP generation supplies to the wholesale market to increase profits, while recovering higher cost energy purchases through the FCA. On</FONT></P> <P ALIGN="CENTER"><FONT SIZE=2>4</FONT></P> <P><FONT SIZE=2><HR NOSHADE></FONT></P> <!-- ZEQ.=1,SEQ=5,EFW="2013583",CP="NORTHERN STATES POWER CO /MN/",DN="1",CHK=749187,FOLIO=4,FILE='DISK014:[00STP0.00STP1600]DI1600A.;7',USER='VDESIO',CD=';5-MAY-2000;11:31 --> <P><FONT SIZE=2>April 27, 2000, NSP filed its initial comments opposing the OAG request. NSP contends that it has followed the appropriate FCA rules and regulations. On April 27, 2000, the Minnesota Department of Commerce also filed comments indicating that an investigation was not necessary. NSP does not expect an MPUC decision on the OAG investigation request until later in 2000.</FONT></P> <P><FONT SIZE=2><B><I>4. Commitments and Contingent Liabilities</I></B></FONT></P> <P><FONT SIZE=2> As of March 31, 2000, Seren had approximately $5 million of intangible assets related to CellNet Data Systems, Inc. In February 2000, CellNet filed for Chapter 11 bankruptcy protection. Although recovery of these assets is not assured at this time, pending the resolution of CellNet's financial difficulties, NSP is working with CellNet to restructure our contracts with them to provide recovery.</FONT></P> <P><FONT SIZE=2> On March 30, 2000, NRG received notification from the New York Independent System Operator (NYISO) of the NYISO's petition to the Federal Energy Regulatory Commission (FERC) to place a $2.52 per megawatt hour market cap on ancillary service revenues. The NYISO also requested authority to impose this cap on a retroactive basis to March 1, 2000.</FONT></P> <P><FONT SIZE=2> Noting that FERC orders have not, to date, adjusted rates retroactively to address market operations or market power concerns, in the context of an ISO or otherwise, NRG's internal legal counsel have no reason to believe that NRG will not ultimately collect all of the amounts due from the NYISO for ancillary services provided in March 2000.</FONT></P> <P><FONT SIZE=2> If the FERC authorizes the NYISO to impose the market cap on a retroactive basis, NRG would record an $8.2 million pretax reduction in earnings related to first quarter 2000 impacts of the cap.</FONT></P> <P><FONT SIZE=2> </FONT><FONT SIZE=2><B>Nuclear Insurance</B></FONT><FONT SIZE=2>—The circumstances set forth in Note 14 to NSP's financial statements in NSP's 1999 Form 10-K appropriately represent, in all material respects, the current status of commitments and contingent liabilities regarding public liability for claims resulting from any nuclear incident.</FONT></P> <P><FONT SIZE=2><B><I>5. Short-Term Borrowings</I></B></FONT></P> <P><FONT SIZE=2> At March 31, 2000, NSP and its subsidiaries had approximately $1.0 billion of short-term debt outstanding at a weighted average interest rate of 6.45 percent. NSP-Minnesota had $408 million in short-term commercial paper borrowings outstanding at a composite rate of 5.94 percent. NSP's subsidiaries had approximately $606 million of short-term debt outstanding at a weighted average interest rate of 6.79 percent. NSP has regulatory approval for up to $1.5 billion in short-term debt levels.</FONT></P> <P><FONT SIZE=2> As of March 31, 2000, NSP-Minnesota had a $300 million revolving credit facility under a commitment fee arrangement. This facility provides short-term financing in the form of bank loans, letters of credit and support for commercial paper sales. In addition to NSP-Minnesota lines, at March 31, 2000, commercial banks provided credit lines of approximately $806 million to wholly owned subsidiaries of NSP with approximately $606 million in borrowings outstanding, mainly to NRG.</FONT></P> <P ALIGN="CENTER"><FONT SIZE=2>5</FONT></P> <P><FONT SIZE=2><HR NOSHADE></FONT></P> <!-- ZEQ.=2,SEQ=6,EFW="2013583",CP="NORTHERN STATES POWER CO /MN/",DN="1",CHK=594299,FOLIO=5,FILE='DISK014:[00STP0.00STP1600]DI1600A.;7',USER='VDESIO',CD=';5-MAY-2000;11:31 --> <P><FONT SIZE=2><B><I>6. Other Comprehensive Income</I></B></FONT></P> <P><FONT SIZE=2> NSP's other comprehensive income consists of foreign currency translation adjustments related to NRG's investments in international projects and changes in the fair value of investments in certain marketable securities. Other comprehensive income for the first quarter of 2000 and 1999 are listed below.</FONT></P> <!-- User-specified TAGGED TABLE --> <CENTER><TABLE WIDTH="71%" BORDER=0 CELLSPACING=0 CELLPADDING=0> <TR VALIGN="BOTTOM"> <TH WIDTH="71%" ROWSPAN=2 ALIGN="LEFT"><FONT SIZE=1><B>Millions of Dollars<BR></B></FONT><HR NOSHADE></TH> <TH WIDTH="2%"><FONT SIZE=1> </FONT></TH> <TH WIDTH="12%" COLSPAN=2 ALIGN="LEFT"><FONT SIZE=1> </FONT><BR></TH> <TH WIDTH="2%"><FONT SIZE=1> </FONT></TH> <TH WIDTH="12%" COLSPAN=2 ALIGN="LEFT"><FONT SIZE=1> </FONT><BR></TH> </TR> <TR VALIGN="BOTTOM"> <TH WIDTH="2%" ROWSPAN=2><FONT SIZE=1> </FONT></TH> <TH WIDTH="26%" COLSPAN=5 ROWSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>3 Mos. Ended</B></FONT><HR NOSHADE></TH> </TR> <TR VALIGN="BOTTOM"> <TH WIDTH="71%" ROWSPAN=2 ALIGN="LEFT"><FONT SIZE=1><B>Increase / (decrease) in Equity<BR></B></FONT><HR NOSHADE></TH> </TR> <TR VALIGN="BOTTOM"> <TH WIDTH="2%"><FONT SIZE=1> </FONT></TH> <TH WIDTH="12%" COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>3/31/00</B></FONT><HR NOSHADE></TH> <TH WIDTH="2%"><FONT SIZE=1> </FONT></TH> <TH WIDTH="12%" COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>3/31/99</B></FONT><HR NOSHADE></TH> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="TOP"> <TD WIDTH="71%"><FONT SIZE=2>Currency translation adjustments</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2>($</FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>30.3</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD> <TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>1.6</FONT></TD> </TR> <TR BGCOLOR="White" VALIGN="TOP"> <TD WIDTH="71%"><FONT SIZE=2>Marketable securities:</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="9%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="9%"><FONT SIZE=2> </FONT></TD> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="TOP"> <TD WIDTH="71%"><FONT SIZE=2>Holding gain (loss) during period—net of tax</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>(0.6</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>0.4</FONT></TD> </TR> <TR BGCOLOR="White" VALIGN="TOP"> <TD WIDTH="71%"><FONT SIZE=2>Loss realized during period—net of tax</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>0.6</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>1.5</FONT></TD> </TR> <TR VALIGN="TOP"> <TD WIDTH="71%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="12%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="12%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="TOP"> <TD WIDTH="71%"><FONT SIZE=2>Total</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2>($</FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>30.3</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD> <TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>3.5</FONT></TD> </TR> <TR VALIGN="TOP"> <TD WIDTH="71%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="12%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="12%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD> </TR> </TABLE></CENTER> <!-- end of user-specified TAGGED TABLE --> <P><FONT SIZE=2><B>7. Segment Information</B></FONT></P> <P><FONT SIZE=2> NSP has four reportable segments: Electric Utility, Gas Utility and two of its wholly owned, nonregulated subsidiaries, NRG and EMI. Segment information for the first quarter 2000 and 1999 are as follows:</FONT></P> <BR> <P><FONT SIZE=2><A NAME="di1600_business_segments"> </A></FONT> <FONT SIZE=2><B>Business Segments </B></FONT></P> <!-- User-specified TAGGED TABLE --> <CENTER><TABLE WIDTH="80%" BORDER=0 CELLSPACING=0 CELLPADDING=0> <TR VALIGN="BOTTOM"> <TH WIDTH="45%" ALIGN="LEFT"><FONT SIZE=1><B>3 Mos. Ended 3/31/00<BR> (Thousands of dollars)<BR></B></FONT><HR NOSHADE></TH> <TH WIDTH="2%"><FONT SIZE=1> </FONT></TH> <TH WIDTH="19%" COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>Operating<BR> Revenues from<BR> External<BR> Customers</B></FONT><HR NOSHADE></TH> <TH WIDTH="2%"><FONT SIZE=1> </FONT></TH> <TH WIDTH="12%" COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>Inter-<BR> Segment<BR> Revenues</B></FONT><HR NOSHADE></TH> <TH WIDTH="2%"><FONT SIZE=1> </FONT></TH> <TH WIDTH="15%" COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>Segment<BR> Net Income<BR> (Loss)</B></FONT><HR NOSHADE></TH> <TH WIDTH="2%"><FONT SIZE=1> </FONT></TH> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="TOP"> <TD WIDTH="45%"><FONT SIZE=2>Electric Utility</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD> <TD WIDTH="17%" ALIGN="RIGHT"><FONT SIZE=2>582,722</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD> <TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2>202</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD> <TD WIDTH="13%" ALIGN="RIGHT"><FONT SIZE=2>24,265</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> </TR> <TR BGCOLOR="White" VALIGN="TOP"> <TD WIDTH="45%"><FONT SIZE=2>Gas Utility</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="17%" ALIGN="RIGHT"><FONT SIZE=2>210,015</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2>1,211</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="13%" ALIGN="RIGHT"><FONT SIZE=2>19,634</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="TOP"> <TD WIDTH="45%"><FONT SIZE=2>NRG</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="17%" ALIGN="RIGHT"><FONT SIZE=2>332,370</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2>301</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="13%" ALIGN="RIGHT"><FONT SIZE=2>8,746</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> </TR> <TR BGCOLOR="White" VALIGN="TOP"> <TD WIDTH="45%"><FONT SIZE=2>EMI</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="17%" ALIGN="RIGHT"><FONT SIZE=2>6,730</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2>0</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="13%" ALIGN="RIGHT"><FONT SIZE=2>(1,959</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="TOP"> <TD WIDTH="45%"><FONT SIZE=2>All Other</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="17%" ALIGN="RIGHT"><FONT SIZE=2>14,311</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2>0</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="13%" ALIGN="RIGHT"><FONT SIZE=2>(2,685</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD> </TR> <TR BGCOLOR="White" VALIGN="TOP"> <TD WIDTH="45%"><FONT SIZE=2>Reconciling Eliminations</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="17%" ALIGN="RIGHT"><FONT SIZE=2>0</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2>(1,446</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="13%" ALIGN="RIGHT"><FONT SIZE=2>0</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> </TR> <TR VALIGN="TOP"> <TD WIDTH="45%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="19%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="12%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="15%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="TOP"> <TD WIDTH="45%"><FONT SIZE=2>Consolidated Total (a)</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD> <TD WIDTH="17%" ALIGN="RIGHT"><FONT SIZE=2>1,146,148</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD> <TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2>268</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD> <TD WIDTH="13%" ALIGN="RIGHT"><FONT SIZE=2>48,001</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> </TR> <TR VALIGN="TOP"> <TD WIDTH="45%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="19%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="12%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="15%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> </TR> </TABLE></CENTER> <!-- end of user-specified TAGGED TABLE --> <BR> <!-- User-specified TAGGED TABLE --> <CENTER><TABLE WIDTH="80%" BORDER=0 CELLSPACING=0 CELLPADDING=0> <TR VALIGN="BOTTOM"> <TH WIDTH="45%" ALIGN="LEFT"><FONT SIZE=1><B>3 Mos. Ended 3/31/99<BR> (Thousands of dollars)<BR></B></FONT><HR NOSHADE></TH> <TH WIDTH="2%"><FONT SIZE=1> </FONT></TH> <TH WIDTH="19%" COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>Operating<BR> Revenues from<BR> External<BR> Customers</B></FONT><HR NOSHADE></TH> <TH WIDTH="2%"><FONT SIZE=1> </FONT></TH> <TH WIDTH="12%" COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>Inter-<BR> Segment<BR> Revenues</B></FONT><HR NOSHADE></TH> <TH WIDTH="2%"><FONT SIZE=1> </FONT></TH> <TH WIDTH="15%" COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>Segment<BR> Net Income<BR> (Loss)</B></FONT><HR NOSHADE></TH> <TH WIDTH="2%"><FONT SIZE=1> </FONT></TH> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="TOP"> <TD WIDTH="45%"><FONT SIZE=2>Electric Utility</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD> <TD WIDTH="17%" ALIGN="RIGHT"><FONT SIZE=2>556,654</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD> <TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2>202</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD> <TD WIDTH="13%" ALIGN="RIGHT"><FONT SIZE=2>35,951</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> </TR> <TR BGCOLOR="White" VALIGN="TOP"> <TD WIDTH="45%"><FONT SIZE=2>Gas Utility</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="17%" ALIGN="RIGHT"><FONT SIZE=2>186,257</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2>1,132</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="13%" ALIGN="RIGHT"><FONT SIZE=2>18,781</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="TOP"> <TD WIDTH="45%"><FONT SIZE=2>NRG</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="17%" ALIGN="RIGHT"><FONT SIZE=2>37,522</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2>324</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="13%" ALIGN="RIGHT"><FONT SIZE=2>(940</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD> </TR> <TR BGCOLOR="White" VALIGN="TOP"> <TD WIDTH="45%"><FONT SIZE=2>EMI</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="17%" ALIGN="RIGHT"><FONT SIZE=2>17,578</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2>0</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="13%" ALIGN="RIGHT"><FONT SIZE=2>(1,512</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="TOP"> <TD WIDTH="45%"><FONT SIZE=2>All Other</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="17%" ALIGN="RIGHT"><FONT SIZE=2>7,335</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2>0</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="13%" ALIGN="RIGHT"><FONT SIZE=2>41</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> </TR> <TR BGCOLOR="White" VALIGN="TOP"> <TD WIDTH="45%"><FONT SIZE=2>Reconciling Eliminations</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="17%" ALIGN="RIGHT"><FONT SIZE=2>0</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2>(1,386</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="13%" ALIGN="RIGHT"><FONT SIZE=2>0</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> </TR> <TR VALIGN="TOP"> <TD WIDTH="45%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="19%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="12%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="15%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="TOP"> <TD WIDTH="45%"><FONT SIZE=2>Consolidated Total (a)</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD> <TD WIDTH="17%" ALIGN="RIGHT"><FONT SIZE=2>805,346</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD> <TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2>272</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD> <TD WIDTH="13%" ALIGN="RIGHT"><FONT SIZE=2>52,321</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> </TR> <TR VALIGN="TOP"> <TD WIDTH="45%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="19%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="12%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="15%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> </TR> </TABLE></CENTER> <!-- end of user-specified TAGGED TABLE --> <HR NOSHADE ALIGN=LEFT WIDTH="120"> <UL> <DL compact> <DT><FONT SIZE=2>(a)</FONT></DT><DD><FONT SIZE=2>The consolidated total revenue amounts represent the sum of utility and nonregulated amounts.</FONT></DD></DL> </UL> <P ALIGN="CENTER"><FONT SIZE=2>6</FONT></P> <P><FONT SIZE=2><HR NOSHADE></FONT></P> <!-- ZEQ.=3,SEQ=7,EFW="2013583",CP="NORTHERN STATES POWER CO /MN/",DN="1",CHK=302145,FOLIO=6,FILE='DISK014:[00STP0.00STP1600]DI1600A.;7',USER='VDESIO',CD=';5-MAY-2000;11:31 --> <UL> <UL> </UL> </UL> <BR> <P><FONT SIZE=2><B>8. Pro Forma—NRG's Cajun Acquisition</B></FONT></P> <P><FONT SIZE=2> During March 2000, NRG completed the acquisition of two fossil fueled generating plants from Cajun Electric Power Cooperative, Inc. for approximately $1 billion. The following information summarizes the pro forma results of operations as if the acquisition had occurred as of the beginning of the three-month periods ended March 31.</FONT></P> <!-- User-specified TAGGED TABLE --> <CENTER><TABLE WIDTH="70%" BORDER=0 CELLSPACING=0 CELLPADDING=0> <TR VALIGN="BOTTOM"> <TH WIDTH="71%" ROWSPAN=2 ALIGN="LEFT"><FONT SIZE=1><B>Millions of Dollars except earnings per share<BR></B></FONT><HR NOSHADE></TH> <TH WIDTH="2%"><FONT SIZE=1> </FONT></TH> <TH WIDTH="12%" COLSPAN=2 ALIGN="LEFT"><FONT SIZE=1> </FONT><BR></TH> <TH WIDTH="2%"><FONT SIZE=1> </FONT></TH> <TH WIDTH="12%" COLSPAN=2 ALIGN="LEFT"><FONT SIZE=1> </FONT><BR></TH> </TR> <TR VALIGN="BOTTOM"> <TH WIDTH="2%" ROWSPAN=2><FONT SIZE=1> </FONT></TH> <TH WIDTH="26%" COLSPAN=5 ROWSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>3 Mos. Ended</B></FONT><HR NOSHADE></TH> </TR> <TR VALIGN="BOTTOM"> <TH WIDTH="71%" ROWSPAN=2 ALIGN="LEFT"><FONT SIZE=1><B>Actual Results<BR></B></FONT><HR NOSHADE></TH> </TR> <TR VALIGN="BOTTOM"> <TH WIDTH="2%"><FONT SIZE=1> </FONT></TH> <TH WIDTH="12%" COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>3/31/00</B></FONT><HR NOSHADE></TH> <TH WIDTH="2%"><FONT SIZE=1> </FONT></TH> <TH WIDTH="12%" COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>3/31/99</B></FONT><HR NOSHADE></TH> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="TOP"> <TD WIDTH="71%"><FONT SIZE=2>Utility operating revenues</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>793.0</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>743.2</FONT></TD> </TR> <TR BGCOLOR="White" VALIGN="TOP"> <TD WIDTH="71%"><FONT SIZE=2>Nonregulated operating revenues</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>353.4</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>62.4</FONT></TD> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="TOP"> <TD WIDTH="71%"><FONT SIZE=2>Net income</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>48.0</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>52.2</FONT></TD> </TR> <TR BGCOLOR="White" VALIGN="TOP"> <TD WIDTH="71%"><FONT SIZE=2>Available for common</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>46.9</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>51.3</FONT></TD> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="TOP"> <TD WIDTH="71%"><FONT SIZE=2>Earnings per share</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>0.30</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>0.34</FONT></TD> </TR> </TABLE></CENTER> <!-- end of user-specified TAGGED TABLE --> <BR> <!-- User-specified TAGGED TABLE --> <CENTER><TABLE WIDTH="70%" BORDER=0 CELLSPACING=0 CELLPADDING=0> <TR VALIGN="BOTTOM"> <TH WIDTH="71%" ROWSPAN=2 ALIGN="LEFT"><FONT SIZE=1><B>Millions of Dollars except earnings per share<BR></B></FONT><HR NOSHADE></TH> <TH WIDTH="2%"><FONT SIZE=1> </FONT></TH> <TH WIDTH="12%" COLSPAN=2 ALIGN="LEFT"><FONT SIZE=1> </FONT><BR></TH> <TH WIDTH="2%"><FONT SIZE=1> </FONT></TH> <TH WIDTH="12%" COLSPAN=2 ALIGN="LEFT"><FONT SIZE=1> </FONT><BR></TH> </TR> <TR VALIGN="BOTTOM"> <TH WIDTH="2%" ROWSPAN=2><FONT SIZE=1> </FONT></TH> <TH WIDTH="26%" COLSPAN=5 ROWSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>3 Mos. Ended</B></FONT><HR NOSHADE></TH> </TR> <TR VALIGN="BOTTOM"> <TH WIDTH="71%" ROWSPAN=2 ALIGN="LEFT"><FONT SIZE=1><B>Pro Forma Results<BR></B></FONT><HR NOSHADE></TH> </TR> <TR VALIGN="BOTTOM"> <TH WIDTH="2%"><FONT SIZE=1> </FONT></TH> <TH WIDTH="12%" COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>3/31/00</B></FONT><HR NOSHADE></TH> <TH WIDTH="2%"><FONT SIZE=1> </FONT></TH> <TH WIDTH="12%" COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>3/31/99</B></FONT><HR NOSHADE></TH> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="TOP"> <TD WIDTH="71%"><FONT SIZE=2>Utility operating revenues</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>793.0</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>743.2</FONT></TD> </TR> <TR BGCOLOR="White" VALIGN="TOP"> <TD WIDTH="71%"><FONT SIZE=2>Nonregulated operating revenues</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>433.4</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>141.0</FONT></TD> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="TOP"> <TD WIDTH="71%"><FONT SIZE=2>Net income</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>47.1</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>50.5</FONT></TD> </TR> <TR BGCOLOR="White" VALIGN="TOP"> <TD WIDTH="71%"><FONT SIZE=2>Available for common</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>46.0</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>49.4</FONT></TD> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="TOP"> <TD WIDTH="71%"><FONT SIZE=2>Earnings per share</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>0.30</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>0.32</FONT></TD> </TR> </TABLE></CENTER> <!-- end of user-specified TAGGED TABLE --> <P ALIGN="CENTER"><FONT SIZE=2>7</FONT></P> <P><FONT SIZE=2><HR NOSHADE></FONT></P> <!-- ZEQ.=4,SEQ=8,EFW="2013583",CP="NORTHERN STATES POWER CO /MN/",DN="1",CHK=255348,FOLIO=7,FILE='DISK014:[00STP0.00STP1600]DI1600A.;7',USER='VDESIO',CD=';5-MAY-2000;11:31 --> <!-- Generated by Merrill Corporation (www.merrillcorp.com) --> <H2><FONT SIZE=2> </FONT></H2> <BR> <P><FONT SIZE=2><A NAME="dj1600_item_2._management_s_discussio__ite03663"> </A></FONT> <FONT SIZE=2><B>Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS </B></FONT></P> <P><FONT SIZE=2> Except for the historical statements contained in this report, the matters discussed in the following discussion and analysis 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", "estimate", "expect", "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:</FONT></P> <UL> <DL compact> <DT><FONT SIZE=2>•</FONT></DT><DD><FONT SIZE=2>general economic conditions, including their impact on capital expenditures; <BR><BR></FONT></DD><DT><FONT SIZE=2>•</FONT></DT><DD><FONT SIZE=2>business conditions in the energy industry; <BR><BR></FONT></DD><DT><FONT SIZE=2>•</FONT></DT><DD><FONT SIZE=2>competitive factors; <BR><BR></FONT></DD><DT><FONT SIZE=2>•</FONT></DT><DD><FONT SIZE=2>unusual weather; <BR><BR></FONT></DD><DT><FONT SIZE=2>•</FONT></DT><DD><FONT SIZE=2>changes in federal or state legislation; <BR><BR></FONT></DD><DT><FONT SIZE=2>•</FONT></DT><DD><FONT SIZE=2>regulation; <BR><BR></FONT></DD><DT><FONT SIZE=2>•</FONT></DT><DD><FONT SIZE=2>issues relating to Year 2000 remediation efforts; <BR><BR></FONT></DD><DT><FONT SIZE=2>•</FONT></DT><DD><FONT SIZE=2>the higher degree of risk associated with NSP's nonregulated businesses as compared to NSP's regulated business; <BR><BR></FONT></DD><DT><FONT SIZE=2>•</FONT></DT><DD><FONT SIZE=2>the items set forth below under "Factors Affecting Results of Operations"; <BR><BR></FONT></DD><DT><FONT SIZE=2>•</FONT></DT><DD><FONT SIZE=2>currency translation and transaction adjustments; <BR><BR></FONT></DD><DT><FONT SIZE=2>•</FONT></DT><DD><FONT SIZE=2>regulatory delays or conditions imposed by regulatory agencies in approving the proposed merger with NCE; <BR><BR></FONT></DD><DT><FONT SIZE=2>•</FONT></DT><DD><FONT SIZE=2>and the other risk factors listed from time to time by NSP in reports filed with the SEC, including Exhibit 99.01 to the report on this Form 10-Q for the quarter ended March 31, 2000.</FONT></DD></DL> </UL> <BR> <P><FONT SIZE=2><A NAME="dj1600_results_of_operations"> </A></FONT> <FONT SIZE=2><B>RESULTS OF OPERATIONS </B></FONT></P> <P><FONT SIZE=2> On March 24, 1999, NSP and NCE agreed to merge and form a new entity, Xcel. For more discussion of this proposed business combination, see Part II, Item 5—Other Information. The following discussion and analysis is based on the financial condition and operations of NSP and does not reflect the potential effects of the combination between NSP and NCE.</FONT></P> <P><FONT SIZE=2> NSP's earnings per share, assuming dilution, (EPS) for the three months ended March 31, 2000 and 1999 were as follows:</FONT></P> <!-- User-specified TAGGED TABLE --> <CENTER><TABLE WIDTH="72%" BORDER=0 CELLSPACING=0 CELLPADDING=0> <TR VALIGN="BOTTOM"> <TH WIDTH="70%" ALIGN="LEFT"><FONT SIZE=2> </FONT><BR></TH> <TH WIDTH="2%" ROWSPAN=2><FONT SIZE=1> </FONT></TH> <TH WIDTH="26%" COLSPAN=5 ROWSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>3 Mos. Ended</B></FONT><HR NOSHADE></TH> <TH WIDTH="2%"><FONT SIZE=1> </FONT></TH> </TR> <TR VALIGN="BOTTOM"> <TH WIDTH="70%" ROWSPAN=2 ALIGN="LEFT"><FONT SIZE=1><B>Earnings per share:<BR></B></FONT><HR NOSHADE></TH> <TH WIDTH="2%"><FONT SIZE=1> </FONT></TH> </TR> <TR VALIGN="BOTTOM"> <TH WIDTH="2%"><FONT SIZE=1> </FONT></TH> <TH WIDTH="12%" COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>3/31/00</B></FONT><HR NOSHADE></TH> <TH WIDTH="2%"><FONT SIZE=1> </FONT></TH> <TH WIDTH="12%" COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>3/31/99</B></FONT><HR NOSHADE></TH> <TH WIDTH="2%"><FONT SIZE=1> </FONT></TH> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="TOP"> <TD WIDTH="70%"><FONT SIZE=2>Regulated</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>0.28</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>0.36</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> </TR> <TR BGCOLOR="White" VALIGN="TOP"> <TD WIDTH="70%"><FONT SIZE=2>Nonregulated</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>0.02</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>(0.01</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="TOP"> <TD WIDTH="70%"><FONT SIZE=2>CellNet Write-down</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>0.00</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>(0.01</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD> </TR> <TR VALIGN="TOP"> <TD WIDTH="70%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="12%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="12%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> </TR> <TR BGCOLOR="White" VALIGN="TOP"> <TD WIDTH="70%"><FONT SIZE=2>Total</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>0.30</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>0.34</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> </TR> <TR VALIGN="TOP"> <TD WIDTH="70%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="12%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="12%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> </TR> </TABLE></CENTER> <!-- end of user-specified TAGGED TABLE --> <P ALIGN="CENTER"><FONT SIZE=2>8</FONT></P> <P><FONT SIZE=2><HR NOSHADE></FONT></P> <!-- ZEQ.=1,SEQ=9,EFW="2013583",CP="NORTHERN STATES POWER CO /MN/",DN="1",CHK=43906,FOLIO=8,FILE='DISK014:[00STP0.00STP1600]DJ1600A.;9',USER='VDESIO',CD=';5-MAY-2000;12:00 --> <BR> <P><FONT SIZE=2><A NAME="dj1600_factors_affecting_results_of_operations"> </A></FONT> <FONT SIZE=2><B>Factors Affecting Results of Operations </B></FONT></P> <P><FONT SIZE=2> In addition to items noted in the 1999 Form 10-K and the Notes to the Financial Statements, the historical and future trends of NSP's operating results are affected by the following factors:</FONT></P> <P><FONT SIZE=2> </FONT><FONT SIZE=2><B>Estimated Impact of Weather on Regulated Earnings</B></FONT><FONT SIZE=2>—NSP estimates electric and gas utility sales levels under normal weather conditions and analyzes the approximate effect of variations from historical average temperatures on actual sales levels. The following summarizes the estimated impact of weather on actual utility operating results (in relation to sales under normal weather conditions):</FONT></P> <!-- User-specified TAGGED TABLE --> <CENTER><TABLE WIDTH="74%" BORDER=0 CELLSPACING=0 CELLPADDING=0> <TR VALIGN="BOTTOM"> <TH WIDTH="59%" ALIGN="LEFT"><FONT SIZE=2> </FONT><BR></TH> <TH WIDTH="2%"><FONT SIZE=1> </FONT></TH> <TH WIDTH="37%" COLSPAN=8 ALIGN="CENTER"><FONT SIZE=1><B>Increase (Decrease)</B></FONT><HR NOSHADE></TH> <TH WIDTH="2%"><FONT SIZE=1> </FONT></TH> </TR> <TR VALIGN="BOTTOM"> <TH WIDTH="59%" ALIGN="LEFT"><FONT SIZE=1><B>Earnings per Share<BR> For Periods Ending March 31:<BR></B></FONT><HR NOSHADE></TH> <TH WIDTH="2%"><FONT SIZE=1> </FONT></TH> <TH WIDTH="11%" COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>Actual<BR> 2000 vs<BR> Normal</B></FONT><HR NOSHADE></TH> <TH WIDTH="2%"><FONT SIZE=1> </FONT></TH> <TH WIDTH="11%" COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>Actual<BR> 1999 vs<BR> Normal</B></FONT><HR NOSHADE></TH> <TH WIDTH="2%"><FONT SIZE=1> </FONT></TH> <TH WIDTH="10%" COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>Actual<BR> 2000 vs<BR> 1999</B></FONT><HR NOSHADE></TH> <TH WIDTH="2%"><FONT SIZE=1> </FONT></TH> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="TOP"> <TD WIDTH="59%"><FONT SIZE=2>Quarter Ended</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2>($</FONT></TD> <TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>0.06</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD> <TD WIDTH="3%"><FONT SIZE=2>($</FONT></TD> <TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>0.04</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD> <TD WIDTH="3%"><FONT SIZE=2>($</FONT></TD> <TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>0.02</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD> </TR> </TABLE></CENTER> <!-- end of user-specified TAGGED TABLE --> <P><FONT SIZE=2> </FONT><FONT SIZE=2><B>Sales Growth</B></FONT><FONT SIZE=2>—The following table summarizes NSP's growth in actual electric and gas sales and growth on a weather normalized (W/N) basis for the three-month period ended March 31, 2000, as compared with the same period in 1999. NSP's weather normalization process removes the estimated impact on sales of temperature variations from historical averages. First quarter sales growth for 2000 reflects an additional day of sales due to leap year.</FONT></P> <!-- User-specified TAGGED TABLE --> <CENTER><TABLE WIDTH="67%" BORDER=0 CELLSPACING=0 CELLPADDING=0> <TR VALIGN="BOTTOM"> <TH WIDTH="78%" ALIGN="LEFT"><FONT SIZE=2> </FONT><BR></TH> <TH WIDTH="3%"><FONT SIZE=1> </FONT></TH> <TH WIDTH="17%" COLSPAN=3 ALIGN="CENTER"><FONT SIZE=1><B>3 Mos. Ended</B></FONT><HR NOSHADE></TH> <TH WIDTH="2%"><FONT SIZE=1> </FONT></TH> </TR> <TR VALIGN="BOTTOM"> <TH WIDTH="78%" ALIGN="LEFT"><FONT SIZE=1> </FONT><BR></TH> <TH WIDTH="3%"><FONT SIZE=1> </FONT></TH> <TH WIDTH="8%" ALIGN="CENTER"><FONT SIZE=1><B>Actual</B></FONT><HR NOSHADE></TH> <TH WIDTH="3%"><FONT SIZE=1> </FONT></TH> <TH WIDTH="6%" ALIGN="CENTER"><FONT SIZE=1><B>W/N</B></FONT><HR NOSHADE></TH> <TH WIDTH="2%"><FONT SIZE=1> </FONT></TH> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="TOP"> <TD WIDTH="78%"><FONT SIZE=2>Electric Residential</FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>2.0</FONT></TD> <TD WIDTH="3%"><FONT SIZE=2>%</FONT></TD> <TD WIDTH="6%" ALIGN="RIGHT"><FONT SIZE=2>3.3</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2>%</FONT></TD> </TR> <TR BGCOLOR="White" VALIGN="TOP"> <TD WIDTH="78%"><FONT SIZE=2>Electric Industrial and Commercial</FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>4.8</FONT></TD> <TD WIDTH="3%"><FONT SIZE=2>%</FONT></TD> <TD WIDTH="6%" ALIGN="RIGHT"><FONT SIZE=2>5.2</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2>%</FONT></TD> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="TOP"> <TD WIDTH="78%"><FONT SIZE=2>Total Electric Retail</FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>4.0</FONT></TD> <TD WIDTH="3%"><FONT SIZE=2>%</FONT></TD> <TD WIDTH="6%" ALIGN="RIGHT"><FONT SIZE=2>4.6</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2>%</FONT></TD> </TR> <TR BGCOLOR="White" VALIGN="TOP"> <TD WIDTH="78%"><FONT SIZE=2>Electric Resale</FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>3.4</FONT></TD> <TD WIDTH="3%"><FONT SIZE=2>%</FONT></TD> <TD WIDTH="6%" ALIGN="RIGHT"><FONT SIZE=2>NA</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="TOP"> <TD WIDTH="78%"><FONT SIZE=2>Firm Gas Sales</FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>(4.9</FONT></TD> <TD WIDTH="3%"><FONT SIZE=2>)%</FONT></TD> <TD WIDTH="6%" ALIGN="RIGHT"><FONT SIZE=2>3.2</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2>%</FONT></TD> </TR> </TABLE></CENTER> <!-- end of user-specified TAGGED TABLE --> <P><FONT SIZE=2> </FONT><FONT SIZE=2><B>Accounting Change—</B></FONT><FONT SIZE=2>In June 1998, the FASB issued Statement of Financial Accounting Standard (SFAS) No. 133, "Accounting for Derivative Instruments and Hedging Activities." This statement requires that all derivatives be recognized at fair value in the balance sheet and all changes in fair value be recognized currently in earnings or deferred as a component of other comprehensive income, depending on the intended use of the derivative, its resulting designation and its effectiveness. NSP plans to adopt this standard in 2001, as required. NSP has not yet determined the potential impact of implementing this statement.</FONT></P> <P><FONT SIZE=2><B><I>First Quarter 2000 vs. First Quarter 1999</I></B></FONT></P> <P><FONT SIZE=2><B><I>Utility Operating Results</I></B></FONT></P> <P><FONT SIZE=2> Electric revenues for the first quarter of 2000 increased $26.1 million, or 4.7 percent, compared with the first quarter of 1999. The following table summarizes the change in electric revenues.</FONT></P> <!-- User-specified TAGGED TABLE --> <CENTER><TABLE WIDTH="64%" BORDER=0 CELLSPACING=0 CELLPADDING=0> <TR VALIGN="BOTTOM"> <TH WIDTH="83%" ALIGN="LEFT"><FONT SIZE=1><B>Millions of dollars<BR></B></FONT><HR NOSHADE></TH> <TH WIDTH="3%"><FONT SIZE=1> </FONT></TH> <TH WIDTH="12%" COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>2000 vs. 1999</B></FONT><HR NOSHADE></TH> <TH WIDTH="2%"><FONT SIZE=1> </FONT></TH> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="TOP"> <TD WIDTH="83%"><FONT SIZE=2>Retail sales growth (excluding weather impact)</FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>20.2</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> </TR> <TR BGCOLOR="White" VALIGN="TOP"> <TD WIDTH="83%"><FONT SIZE=2>Weather impact</FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>(1.4</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="TOP"> <TD WIDTH="83%"><FONT SIZE=2>Sales for resale</FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>5.7</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> </TR> <TR BGCOLOR="White" VALIGN="TOP"> <TD WIDTH="83%"><FONT SIZE=2>Conservation incentive recovery—accruals</FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>(8.8</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="TOP"> <TD WIDTH="83%"><FONT SIZE=2>Fuel cost recovery</FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>13.4</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> </TR> <TR BGCOLOR="White" VALIGN="TOP"> <TD WIDTH="83%"><FONT SIZE=2>Transmission and other</FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>(3.0</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD> </TR> <TR VALIGN="TOP"> <TD WIDTH="83%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="12%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="TOP"> <TD WIDTH="83%"><FONT SIZE=2>Total electric revenue increase</FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>26.1</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> </TR> <TR VALIGN="TOP"> <TD WIDTH="83%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="12%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> </TR> </TABLE></CENTER> <!-- end of user-specified TAGGED TABLE --> <P ALIGN="CENTER"><FONT SIZE=2>9</FONT></P> <P><FONT SIZE=2><HR NOSHADE></FONT></P> <!-- ZEQ.=2,SEQ=10,EFW="2013583",CP="NORTHERN STATES POWER CO /MN/",DN="1",CHK=741901,FOLIO=9,FILE='DISK014:[00STP0.00STP1600]DJ1600A.;9',USER='VDESIO',CD=';5-MAY-2000;12:00 --> <P><FONT SIZE=2> Electric margin equals electric revenue minus electric fuel and purchased power costs. The table below summarizes the change in electric margin for the first quarter.</FONT></P> <!-- User-specified TAGGED TABLE --> <CENTER><TABLE WIDTH="64%" BORDER=0 CELLSPACING=0 CELLPADDING=0> <TR VALIGN="BOTTOM"> <TH WIDTH="83%" ALIGN="LEFT"><FONT SIZE=1><B>Millions of dollars<BR></B></FONT><HR NOSHADE></TH> <TH WIDTH="3%"><FONT SIZE=1> </FONT></TH> <TH WIDTH="12%" COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>2000 vs. 1999</B></FONT><HR NOSHADE></TH> <TH WIDTH="2%"><FONT SIZE=1> </FONT></TH> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="TOP"> <TD WIDTH="83%"><FONT SIZE=2>Retail sales growth (excluding weather impact)</FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>12.4</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> </TR> <TR BGCOLOR="White" VALIGN="TOP"> <TD WIDTH="83%"><FONT SIZE=2>Weather impact</FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>(0.7</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="TOP"> <TD WIDTH="83%"><FONT SIZE=2>Sales for resale</FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>8.0</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> </TR> <TR BGCOLOR="White" VALIGN="TOP"> <TD WIDTH="83%"><FONT SIZE=2>Conservation incentive recovery—accruals</FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>(8.8</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="TOP"> <TD WIDTH="83%"><FONT SIZE=2>Unrecoverable energy and capacity costs</FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>(4.1</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD> </TR> <TR BGCOLOR="White" VALIGN="TOP"> <TD WIDTH="83%"><FONT SIZE=2>Transmission and other</FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>(1.4</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD> </TR> <TR VALIGN="TOP"> <TD WIDTH="83%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="12%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="TOP"> <TD WIDTH="83%"><FONT SIZE=2>Total electric margin increase</FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>5.4</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> </TR> <TR VALIGN="TOP"> <TD WIDTH="83%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="12%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> </TR> </TABLE></CENTER> <!-- end of user-specified TAGGED TABLE --> <P><FONT SIZE=2> Gas revenues for the first quarter of 2000 increased $23.8 million, or 12.7 percent, compared with 1999. The following table summarizes the change in gas revenues for the first quarter.</FONT></P> <!-- User-specified TAGGED TABLE --> <CENTER><TABLE WIDTH="64%" BORDER=0 CELLSPACING=0 CELLPADDING=0> <TR VALIGN="BOTTOM"> <TH WIDTH="83%" ALIGN="LEFT"><FONT SIZE=1><B>Millions of dollars<BR></B></FONT><HR NOSHADE></TH> <TH WIDTH="3%"><FONT SIZE=1> </FONT></TH> <TH WIDTH="12%" COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>2000 vs. 1999</B></FONT><HR NOSHADE></TH> <TH WIDTH="2%"><FONT SIZE=1> </FONT></TH> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="TOP"> <TD WIDTH="83%"><FONT SIZE=2>Sales growth (excluding weather impact)</FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>7.1</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> </TR> <TR BGCOLOR="White" VALIGN="TOP"> <TD WIDTH="83%"><FONT SIZE=2>Weather impact</FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>(11.0</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="TOP"> <TD WIDTH="83%"><FONT SIZE=2>Cost of gas recovery</FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>24.4</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> </TR> <TR BGCOLOR="White" VALIGN="TOP"> <TD WIDTH="83%"><FONT SIZE=2>Other</FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>3.3</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> </TR> <TR VALIGN="TOP"> <TD WIDTH="83%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="12%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="TOP"> <TD WIDTH="83%"><FONT SIZE=2>Total gas revenue increase</FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>23.8</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> </TR> <TR VALIGN="TOP"> <TD WIDTH="83%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="12%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> </TR> </TABLE></CENTER> <!-- end of user-specified TAGGED TABLE --> <P><FONT SIZE=2> Gas margin equals gas revenue minus the cost of purchased gas. The table below summarizes the change in gas margin for the first quarter.</FONT></P> <!-- User-specified TAGGED TABLE --> <CENTER><TABLE WIDTH="64%" BORDER=0 CELLSPACING=0 CELLPADDING=0> <TR VALIGN="BOTTOM"> <TH WIDTH="83%" ALIGN="LEFT"><FONT SIZE=1><B>Millions of dollars<BR></B></FONT><HR NOSHADE></TH> <TH WIDTH="3%"><FONT SIZE=1> </FONT></TH> <TH WIDTH="12%" COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>2000 vs. 1999</B></FONT><HR NOSHADE></TH> <TH WIDTH="2%"><FONT SIZE=1> </FONT></TH> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="TOP"> <TD WIDTH="83%"><FONT SIZE=2>Sales growth (excluding weather impact)</FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>2.3</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> </TR> <TR BGCOLOR="White" VALIGN="TOP"> <TD WIDTH="83%"><FONT SIZE=2>Weather impact</FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>(4.1</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="TOP"> <TD WIDTH="83%"><FONT SIZE=2>Other</FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>2.5</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> </TR> <TR VALIGN="TOP"> <TD WIDTH="83%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="12%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> </TR> <TR BGCOLOR="White" VALIGN="TOP"> <TD WIDTH="83%"><FONT SIZE=2>Total gas margin increase</FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>0.7</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> </TR> <TR VALIGN="TOP"> <TD WIDTH="83%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="12%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> </TR> </TABLE></CENTER> <!-- end of user-specified TAGGED TABLE --> <P><FONT SIZE=2> Other operation, Maintenance and Administrative and general expenses together increased $19.5 million, or 11.0 percent, compared with the first quarter of 1999. The increases are primarily due to $11 million of scheduled outage and project work at NSP's Monticello nuclear plant and a $5 million credit recorded in 1999 to estimated pension accruals.</FONT></P> <P><FONT SIZE=2> Depreciation and amortization expense increased $4.5 million, or 5.2 percent, compared with the first quarter of 1999. The increase is mainly due to increased plant in service.</FONT></P> <P><FONT SIZE=2> Allowance for funds used during construction (AFC) declined $3.3 million primarily due to reductions in carrying charges and other adjustments related to conservation incentive adjustments.</FONT></P> <P><FONT SIZE=2> Utility interest expense increased $6.8 million in the first quarter of 2000 compared with the first quarter of 1999, primarily due to issuance of $250 million of long-term debt in July 1999 and higher commercial paper balances.</FONT></P> <P ALIGN="CENTER"><FONT SIZE=2>10</FONT></P> <P><FONT SIZE=2><HR NOSHADE></FONT></P> <!-- ZEQ.=3,SEQ=11,EFW="2013583",CP="NORTHERN STATES POWER CO /MN/",DN="1",CHK=721047,FOLIO=10,FILE='DISK014:[00STP0.00STP1600]DJ1600A.;9',USER='VDESIO',CD=';5-MAY-2000;12:00 --> <P><FONT SIZE=2><I>Nonregulated Business Results</I></FONT></P> <P><FONT SIZE=2> The following table summarizes NSP's nonregulated business results in the aggregate, including consolidated subsidiaries and unconsolidated affiliates.</FONT></P> <!-- User-specified TAGGED TABLE --> <CENTER><TABLE WIDTH="71%" BORDER=0 CELLSPACING=0 CELLPADDING=0> <TR VALIGN="BOTTOM"> <TH WIDTH="65%" ALIGN="LEFT"><FONT SIZE=2> </FONT><BR></TH> <TH WIDTH="2%" ROWSPAN=2><FONT SIZE=1> </FONT></TH> <TH WIDTH="31%" COLSPAN=5 ROWSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>3 Mos. Ended</B></FONT><HR NOSHADE></TH> <TH WIDTH="2%"><FONT SIZE=1> </FONT></TH> </TR> <TR VALIGN="BOTTOM"> <TH WIDTH="65%" ROWSPAN=2 ALIGN="LEFT"><FONT SIZE=1><B>(Thousands of dollars, except EPS)<BR></B></FONT><HR NOSHADE></TH> <TH WIDTH="2%"><FONT SIZE=1> </FONT></TH> </TR> <TR VALIGN="BOTTOM"> <TH WIDTH="2%"><FONT SIZE=1> </FONT></TH> <TH WIDTH="15%" COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>3/31/00</B></FONT><HR NOSHADE></TH> <TH WIDTH="2%"><FONT SIZE=1> </FONT></TH> <TH WIDTH="14%" COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>3/31/99</B></FONT><HR NOSHADE></TH> <TH WIDTH="2%"><FONT SIZE=1> </FONT></TH> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="TOP"> <TD WIDTH="65%"><FONT SIZE=2>Operating revenues</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD> <TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>353,411</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD> <TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>62,435</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> </TR> <TR BGCOLOR="White" VALIGN="TOP"> <TD WIDTH="65%"><FONT SIZE=2>Equity in project earnings</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>(10,239</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>8,031</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="TOP"> <TD WIDTH="65%"><FONT SIZE=2>Operating and development expenses</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>(291,376</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>(78,626</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD> </TR> <TR BGCOLOR="White" VALIGN="TOP"> <TD WIDTH="65%"><FONT SIZE=2>Other income (expense)</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>585</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>807</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> </TR> <TR VALIGN="TOP"> <TD WIDTH="65%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="15%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="14%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="TOP"> <TD WIDTH="65%"><FONT SIZE=2>Income (loss) before interest & taxes</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>52,381</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>(7,353</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD> </TR> <TR BGCOLOR="White" VALIGN="TOP"> <TD WIDTH="65%"><FONT SIZE=2>Interest expense</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>(53,984</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>(12,141</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="TOP"> <TD WIDTH="65%"><FONT SIZE=2>Income tax benefit and credits</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>5,705</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>17,083</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> </TR> <TR VALIGN="TOP"> <TD WIDTH="65%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="15%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="14%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> </TR> <TR BGCOLOR="White" VALIGN="TOP"> <TD WIDTH="65%"><FONT SIZE=2>Net income (loss)</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD> <TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>4,102</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD> <TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>(2,411</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD> </TR> <TR VALIGN="TOP"> <TD WIDTH="65%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="15%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="14%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="TOP"> <TD WIDTH="65%"><FONT SIZE=2>Earnings (loss) per share from nonregulated subsidiaries</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD> <TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>0.02</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD> <TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>(0.01</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD> </TR> <TR VALIGN="TOP"> <TD WIDTH="65%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="15%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="14%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> </TR> </TABLE></CENTER> <!-- end of user-specified TAGGED TABLE --> <P><FONT SIZE=2> NSP's nonregulated operations include diversified businesses, as described below.</FONT></P> <UL> <DL compact> <DT><FONT SIZE=2>•</FONT></DT><DD><FONT SIZE=2>NRG's primary business is independent power production, commercial and industrial heating and cooling, and refuse-derived fuel production. <BR><BR></FONT></DD><DT><FONT SIZE=2>•</FONT></DT><DD><FONT SIZE=2>Seren Innovations provides communications and data services. <BR><BR></FONT></DD><DT><FONT SIZE=2>•</FONT></DT><DD><FONT SIZE=2>Eloigne invests in affordable housing projects. <BR><BR></FONT></DD><DT><FONT SIZE=2>•</FONT></DT><DD><FONT SIZE=2>EMI's primary business is custom energy services.</FONT></DD></DL> </UL> <BR> <P><FONT SIZE=2> The following table summarizes the earnings contributions of NSP's nonregulated businesses:</FONT></P> <!-- User-specified TAGGED TABLE --> <CENTER><TABLE WIDTH="72%" BORDER=0 CELLSPACING=0 CELLPADDING=0> <TR VALIGN="BOTTOM"> <TH WIDTH="70%" ALIGN="LEFT"><FONT SIZE=2> </FONT><BR></TH> <TH WIDTH="2%"><FONT SIZE=1> </FONT></TH> <TH WIDTH="26%" COLSPAN=5 ALIGN="CENTER"><FONT SIZE=1><B>3 Mos. Ended</B></FONT><HR NOSHADE></TH> <TH WIDTH="2%"><FONT SIZE=1> </FONT></TH> </TR> <TR VALIGN="BOTTOM"> <TH WIDTH="70%" ALIGN="LEFT"><FONT SIZE=1> </FONT><BR></TH> <TH WIDTH="2%"><FONT SIZE=1> </FONT></TH> <TH WIDTH="12%" COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>3/31/00</B></FONT><HR NOSHADE></TH> <TH WIDTH="2%"><FONT SIZE=1> </FONT></TH> <TH WIDTH="12%" COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>3/31/99</B></FONT><HR NOSHADE></TH> <TH WIDTH="2%"><FONT SIZE=1> </FONT></TH> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="TOP"> <TD WIDTH="70%"><FONT SIZE=2>NRG</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>0.06</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>(0.01</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD> </TR> <TR BGCOLOR="White" VALIGN="TOP"> <TD WIDTH="70%"><FONT SIZE=2>Seren</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>(0.03</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>(0.01</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="TOP"> <TD WIDTH="70%"><FONT SIZE=2>Eloigne</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>0.01</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>0.01</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> </TR> <TR BGCOLOR="White" VALIGN="TOP"> <TD WIDTH="70%"><FONT SIZE=2>EMI</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>(0.01</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>(0.01</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="TOP"> <TD WIDTH="70%"><FONT SIZE=2>Other</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>(0.01</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>0.01</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> </TR> <TR VALIGN="TOP"> <TD WIDTH="70%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="12%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="12%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> </TR> <TR BGCOLOR="White" VALIGN="TOP"> <TD WIDTH="70%"><FONT SIZE=2>Nonregulated</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>0.02</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>(0.01</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD> </TR> <TR VALIGN="TOP"> <TD WIDTH="70%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="12%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="12%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="TOP"> <TD WIDTH="70%"><FONT SIZE=2>Cellnet Write-down</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>0.00</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>(0.01</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD> </TR> <TR VALIGN="TOP"> <TD WIDTH="70%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="12%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="12%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> </TR> <TR BGCOLOR="White" VALIGN="TOP"> <TD WIDTH="70%"><FONT SIZE=2>Total</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>0.02</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>(0.02</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD> </TR> <TR VALIGN="TOP"> <TD WIDTH="70%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="12%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="12%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> </TR> </TABLE></CENTER> <!-- end of user-specified TAGGED TABLE --> <P><FONT SIZE=2> </FONT><FONT SIZE=2><B><I>NRG</I></B></FONT><FONT SIZE=2>—NRG's earnings for the first quarter of 2000, were significantly influenced by the acquisitions of generating facilities in the Northeast United States. These acquisitions closed at various times from April through December of 1999. Earnings for 2000 also reflected earnings from the Killingholme project, which was acquired during the first quarter of 2000. These increased earnings were partially offset by lower equity earnings and higher financing costs to fund the acquisitions.</FONT></P> <P><FONT SIZE=2> The acquisition of the Northeast generating assets increased NRG's first quarter revenues by approximately $228 million and increased NRG's operating expenses by approximately $146 million. The acquisitions also increased NRG's administrative and general costs, depreciation and interest expense.</FONT></P> <P ALIGN="CENTER"><FONT SIZE=2>11</FONT></P> <P><FONT SIZE=2><HR NOSHADE></FONT></P> <!-- ZEQ.=4,SEQ=12,EFW="2013583",CP="NORTHERN STATES POWER CO /MN/",DN="1",CHK=434564,FOLIO=11,FILE='DISK014:[00STP0.00STP1600]DJ1600A.;9',USER='VDESIO',CD=';5-MAY-2000;12:00 --> <P><FONT SIZE=2> NRG's earnings for the first quarter of 1999, were decreased by approximately 3 cents per share due to a foreign currency transaction adjustment, relating to the Kladno project, a 345-megawatt generating plant in the Czech Republic. NRG owns 44.5 percent of the Kladno project.</FONT></P> <P><FONT SIZE=2> NRG is a public company and is subject to the informational reporting requirements of the Securities Exchange Act of 1934. Further information about NRG may be obtained from its Form 10-K for the year ended Dec. 31, 1999 and its Form 10-Q for the quarter ended March 31, 2000.</FONT></P> <P><FONT SIZE=2> </FONT><FONT SIZE=2><B><I>Seren</I></B></FONT><FONT SIZE=2>—Seren's build-out of its broadband communications network in St. Cloud, Minn., and initial construction in northern California resulted in losses, consistent with Seren's business plan.</FONT></P> <P ALIGN="CENTER"><FONT SIZE=2>12</FONT></P> <P><FONT SIZE=2><HR NOSHADE></FONT></P> <!-- ZEQ.=5,SEQ=13,EFW="2013583",CP="NORTHERN STATES POWER CO /MN/",DN="1",CHK=973972,FOLIO=12,FILE='DISK014:[00STP0.00STP1600]DJ1600A.;9',USER='VDESIO',CD=';5-MAY-2000;12:00 --> <!-- Generated by Merrill Corporation (www.merrillcorp.com) --> <H2><FONT SIZE=2> </FONT></H2> <BR> <P><FONT SIZE=2><A NAME="dk1600_liquidity_and_capital_resources"> </A></FONT> <FONT SIZE=2><B>LIQUIDITY AND CAPITAL RESOURCES </B></FONT></P> <P><FONT SIZE=2> For a discussion of short-term borrowings, see Note 5 to the Financial Statements.</FONT></P> <P><FONT SIZE=2> In January 2000, stock options for 1,443,009 shares were awarded under NSP's Executive Long-Term Incentive Award Stock Plan (the Long-Term Plan). These options cannot be exercised for approximately twelve months after the award date. Effective in January 1999, stock options granted to NSP officers vest at a rate of one-third each year for three years. As of March 31, 2000, a total of 4,675,824 options were outstanding, which were considered potentially dilutive common shares for calculating earnings per share.</FONT></P> <P><FONT SIZE=2> During the first three months of 2000, NSP issued 877,929 new shares of common stock under the Long-Term Plan (pursuant to the exercise of options and awards granted in prior years), the Dividend Reinvestment and Stock Purchase Plan and the Employee Stock Ownership Plan.</FONT></P> <P><FONT SIZE=2> NSP-Minnesota may file a universal debt shelf registration during 2000. The timing and size of the debt shelf registration are dependent on the timing of the pending merger and cash requirements.</FONT></P> <P><FONT SIZE=2> The board of directors of NSP-Wisconsin authorized the issuance of up to $80 million of long-term debt in 1999 or 2000. NSP-Wisconsin currently expects to issue up to $80 million of unsecured long-term debt in the fourth quarter of 2000, primarily to reduce short-term debt levels.</FONT></P> <P><FONT SIZE=2> In March 2000, NRG South Central Generating LLC, a subsidiary of NRG, issued $800 million of senior secured bonds in a two-part offering. The first tranche was for $500 million with a coupon of 8.962 percent and a maturity of 2016. The second tranche was for $300 million with a coupon of 9.479 percent and a maturity of 2024. The proceeds were used to finance a portion of NRG's investment in the Cajun generating facilities.</FONT></P> <P><FONT SIZE=2> In March 2000, NRG issued 160 million pound sterling (approximately $250 million at the time of issuance) of 7.97% reset senior notes due 2020, principally to finance NRG's equity investment in the Killingholme facility. On March 15, 2005, these senior notes may be remarketed by Bank of America, N.A. at a fixed rate of interest through the maturity date or, at a floating rate of interest for up to one year and then at a fixed rate of interest through 2020. Interest is payable semi-annually on these securities beginning Sept. 15, 2000 through March 15, 2005, and then at intervals and interest rates established in the remarketing process.</FONT></P> <P><FONT SIZE=2> In March 2000, three of NRG's foreign subsidiaries entered into a 335 million pound sterling ($533 million) secured borrowing facility agreement with Bank of America International Limited, as arranger. Under this facility, the financial institutions have made available to NRG's subsidiaries various term loans totaling 235 million pound sterling ($374 million) for purposes of financing the acquisition of the Killingholme facility and 100 million pound sterling ($159 million) of revolving credit and letter of credit facilities to provide working capital for operating the Killingholme facility. The final maturity date of the facility is the earlier of June 30, 2019, or the date on which all borrowings and commitments under the largest tranche of the term facility have been repaid or cancelled.</FONT></P> <P><FONT SIZE=2> In March 2000, NSP's Board of Directors approved the potential sale in a public offering by NRG of up to 18 percent interest in the common stock of NRG. NSP has concluded that this offering of NRG stock will not affect NSP's ability to use the pooling of interests method of accounting for its pending merger with NCE. In April 2000, NRG filed a registration statement with the SEC, regarding this offering. The maximum aggregate offering price of the common stock covered by the registration statement is $600 million. No proceeds of this offering will be received by NSP. Approximately $300 million of the proceeds are expected to be used to repay NRG's short-term bridge loan from Citicorp USA, Inc., which matures in August 2000 and was used to finance a portion of the acquisition of the Cajun facilities. Any remaining net proceeds are expected to be used for general corporate purposes, which may include funding of capital expenditures and potential acquisitions, the development and construction of new facilities and additions to working capital. Funds not immediately required for such purposes may be used to temporarily reduce any outstanding balances under NRG's revolving credit facility.</FONT></P> <P ALIGN="CENTER"><FONT SIZE=2>13</FONT></P> <P><FONT SIZE=2><HR NOSHADE></FONT></P> <!-- ZEQ.=1,SEQ=14,EFW="2013583",CP="NORTHERN STATES POWER CO /MN/",DN="1",CHK=372425,FOLIO=13,FILE='DISK014:[00STP0.00STP1600]DK1600A.;7',USER='VDESIO',CD=';5-MAY-2000;11:31 --> <BR> <BR> <P ALIGN="CENTER"><FONT SIZE=2><A NAME="dk1600_part_ii._other_information"> </A></FONT> <FONT SIZE=2><B>Part II. OTHER INFORMATION </B></FONT></P> <P><FONT SIZE=2><A NAME="dk1600_item_1._legal_proceedings"> </A></FONT> <FONT SIZE=2><B>Item 1. Legal Proceedings </B></FONT></P> <P><FONT SIZE=2> In the normal course of business, various lawsuits and claims have arisen against NSP. Management, after consultation with legal counsel, has recorded an estimate of the probable cost of settlement or other disposition for such matters.</FONT></P> <P><FONT SIZE=2> See Notes 3 and 4 of the Financial Statements for further discussion of legal proceedings, including Regulatory Matters and Commitments and Contingent Liabilities, incorporated by reference.</FONT></P> <P ALIGN="CENTER"><FONT SIZE=2>14</FONT></P> <P><FONT SIZE=2><HR NOSHADE></FONT></P> <!-- ZEQ.=2,SEQ=15,EFW="2013583",CP="NORTHERN STATES POWER CO /MN/",DN="1",CHK=204087,FOLIO=14,FILE='DISK014:[00STP0.00STP1600]DK1600A.;7',USER='VDESIO',CD=';5-MAY-2000;11:31 --> <!-- Generated by Merrill Corporation (www.merrillcorp.com) --> <H2><FONT SIZE=2> </FONT></H2> <BR> <P><FONT SIZE=2><A NAME="dm1600_item_5._other_information"> </A></FONT> <FONT SIZE=2><B>Item 5. Other Information </B></FONT></P> <P><FONT SIZE=2><A NAME="dm1600_proposed_business_combination"> </A></FONT> <FONT SIZE=2><B>Proposed Business Combination </B></FONT></P> <P><FONT SIZE=2> As previously reported in NSP's Report on Form 8-K, dated March 24, 1999, which was filed on March 25, 1999, NSP and NCE agreed to merge and form Xcel Energy. At the time of the merger, each share of NCE common stock will be exchanged for 1.55 shares of Xcel Energy common stock. NSP shares need not be exchanged and will become Xcel Energy shares on a one-for-one basis. Cash will be paid in lieu of any fractional shares of Xcel Energy common stock. The merger agreement was filed as Exhibit 2.1 to NSP's March 24, 1999 Form 8-K, and is incorporated by reference.</FONT></P> <P><FONT SIZE=2> The merger requires approval or regulatory review by certain state utilities regulators, the SEC, the FERC, the Nuclear Regulatory Commission and the Federal Communications Commission, and expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act. During June 1999, shareholders of both NSP and NCE approved the merger. The FERC approved the merger in January 2000. In March 2000, the waiting period under the Hart-Scott-Rodino Act expired. The states of Kansas, Colorado, Arizona, North Dakota, Minnesota and Wyoming have approved the merger. Merger approval is not required in Michigan, Oklahoma, South Dakota or Wisconsin. The merger awaits the approval of the SEC, NRC and the states of New Mexico and Texas. While NSP cannot guarantee the timing or receipt of the necessary regulatory approvals, NSP currently expects the merger to be completed by the middle of 2000.</FONT></P> <P><FONT SIZE=2> The merger is expected to be a tax-free, stock-for-stock exchange for shareholders of both companies (except for fractional shares), and to be accounted for as a pooling of interests. NSP and NCE have agreed to certain undertakings and limitations regarding the conduct of their businesses prior to the closing of the transaction. At the time of the merger, Xcel Energy will register as a holding company under the Public Utility Holding Company Act of 1935.</FONT></P> <P><FONT SIZE=2> At March 31, 2000, NSP had deferred approximately $28 million of merger costs, pending the consumation of the business combination and consistent with NSP's filed request for regulatory amortization over future periods.</FONT></P> <BR> <P><FONT SIZE=2><A NAME="dm1600_xcel_summarized_pro_forma_information"> </A></FONT> <FONT SIZE=2><B>Xcel Summarized Pro Forma Information </B></FONT></P> <P><FONT SIZE=2> The following summary of unaudited pro forma financial information for Xcel Energy gives effect to the merger using the pooling of interests method of accounting. Under this accounting method, NSP's and NCE's balance sheets and income statements are treated as if they have always been combined for financial reporting purposes. This unaudited pro forma summarized financial information should be read in conjunction with the historical financial statements and related notes of NSP and NCE, which are included in the 1999 Annual Reports on Form 10-K of the respective companies.</FONT></P> <P><FONT SIZE=2> The unaudited pro forma balance sheet information at March 31, 2000, assumes the merger had been completed on March 31, 2000. The unaudited pro forma income statement information assumes the merger had been completed on Jan.1, 2000, the beginning of the earliest period presented.</FONT></P> <P><FONT SIZE=2> These summarized pro forma amounts do not include any of the estimated cost savings expected to result from the merger of NCE and NSP. Such cost savings, net of the costs incurred to achieve such savings and to complete the merger transaction, are subject to regulatory review and approval. However, the pro forma amounts for NSP and NCE include approximately $28 million and $20 million, respectively, of deferred nonrecurring merger costs as of March 31, 2000, mainly those directly attributable to the merger transaction. Assuming the business combination is accounted for as a pooling of interests, these costs will be expensed upon the consummation of the NCE/NSP merger. The pro forma income statement information amounts do not reflect any of these costs. The pro forma balance sheet information has been adjusted to reflect a write off of the deferred costs and a related reduction of retained earnings.</FONT></P> <P ALIGN="CENTER"><FONT SIZE=2>15</FONT></P> <P><FONT SIZE=2><HR NOSHADE></FONT></P> <!-- ZEQ.=1,SEQ=16,EFW="2013583",CP="NORTHERN STATES POWER CO /MN/",DN="1",CHK=155024,FOLIO=15,FILE='DISK014:[00STP0.00STP1600]DM1600A.;7',USER='VDESIO',CD=';5-MAY-2000;11:31 --> <BR> <P><FONT SIZE=2> In addition to the pro forma balance sheet adjustment discussed above, adjustments have also been made to the historical amounts for NCE and NSP to conform their presentation for pro forma combined reporting, mainly to group nonregulated property with utility plant, and to report nonregulated revenue and operating income with utility amounts.</FONT></P> <P><FONT SIZE=2> The unaudited summarized pro forma financial information does not necessarily indicate what the combined company's financial position or operating results would have been if the merger had been completed on the assumed completion dates and does not necessarily indicate future operating results of the combined company.</FONT></P> <!-- User-specified TAGGED TABLE --> <CENTER><TABLE WIDTH="77%" BORDER=0 CELLSPACING=0 CELLPADDING=0> <TR VALIGN="BOTTOM"> <TH WIDTH="42%" ALIGN="LEFT"><FONT SIZE=1><B>Xcel Energy<BR></B></FONT><HR NOSHADE></TH> <TH WIDTH="2%"><FONT SIZE=1> </FONT></TH> <TH WIDTH="56%" COLSPAN=11 ALIGN="CENTER"><FONT SIZE=1><B>$Millions</B></FONT><HR NOSHADE></TH> </TR> <TR VALIGN="BOTTOM"> <TH WIDTH="42%" ALIGN="LEFT"><FONT SIZE=1><B>As of March 31, 2000:<BR></B></FONT><HR NOSHADE></TH> <TH WIDTH="2%"><FONT SIZE=1> </FONT></TH> <TH WIDTH="12%" COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>NSP</B></FONT><HR NOSHADE></TH> <TH WIDTH="2%"><FONT SIZE=1> </FONT></TH> <TH WIDTH="10%" COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>NCE</B></FONT><HR NOSHADE></TH> <TH WIDTH="2%"><FONT SIZE=1> </FONT></TH> <TH WIDTH="16%" COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>Adjustments</B></FONT><HR NOSHADE></TH> <TH WIDTH="2%"><FONT SIZE=1> </FONT></TH> <TH WIDTH="12%" COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>Pro<BR> Forma</B></FONT><HR NOSHADE></TH> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="TOP"> <TD WIDTH="42%"><FONT SIZE=2>Utility Plant—Net</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>4,449</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD> <TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>6,286</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD> <TD WIDTH="13%" ALIGN="RIGHT"><FONT SIZE=2>3,852</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>14,587</FONT></TD> </TR> <TR BGCOLOR="White" VALIGN="TOP"> <TD WIDTH="42%"><FONT SIZE=2>Current Assets</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>1,156</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>810</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="13%" ALIGN="RIGHT"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>1,966</FONT></TD> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="TOP"> <TD WIDTH="42%"><FONT SIZE=2>Other Assets</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>5,991</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>1,075</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="13%" ALIGN="RIGHT"><FONT SIZE=2>(3,900</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>3,166</FONT></TD> </TR> <TR VALIGN="TOP"> <TD WIDTH="42%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="12%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="10%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="16%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="12%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD> </TR> <TR BGCOLOR="White" VALIGN="TOP"> <TD WIDTH="42%"><FONT SIZE=2>Total Assets</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>11,596</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD> <TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>8,171</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD> <TD WIDTH="13%" ALIGN="RIGHT"><FONT SIZE=2>(48</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD> <TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>19,719</FONT></TD> </TR> <TR VALIGN="TOP"> <TD WIDTH="42%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="12%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="10%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="16%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="12%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="TOP"> <TD WIDTH="42%"><FONT SIZE=2>Common Equity</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>2,537</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD> <TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>2,785</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD> <TD WIDTH="13%" ALIGN="RIGHT"><FONT SIZE=2>(48</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD> <TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>5,274</FONT></TD> </TR> <TR BGCOLOR="White" VALIGN="TOP"> <TD WIDTH="42%"><FONT SIZE=2>Pref. Securities</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>305</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>294</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="13%" ALIGN="RIGHT"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>599</FONT></TD> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="TOP"> <TD WIDTH="42%"><FONT SIZE=2>Long-Term Debt</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>4,984</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>2,314</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="13%" ALIGN="RIGHT"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>7,298</FONT></TD> </TR> <TR VALIGN="TOP"> <TD WIDTH="42%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="12%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="10%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="16%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="12%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD> </TR> <TR BGCOLOR="White" VALIGN="TOP"> <TD WIDTH="42%"><FONT SIZE=2>Tot Capitalization</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>7,826</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>5,393</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="13%" ALIGN="RIGHT"><FONT SIZE=2>(48</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>13,171</FONT></TD> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="TOP"> <TD WIDTH="42%"><FONT SIZE=2>Current Liabilities</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>2,059</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>1,510</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="13%" ALIGN="RIGHT"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>3,569</FONT></TD> </TR> <TR BGCOLOR="White" VALIGN="TOP"> <TD WIDTH="42%"><FONT SIZE=2>Other Liabilities</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>1,711</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>1,268</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="13%" ALIGN="RIGHT"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>2,979</FONT></TD> </TR> <TR VALIGN="TOP"> <TD WIDTH="42%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="12%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="10%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="16%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="12%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="TOP"> <TD WIDTH="42%"><FONT SIZE=2>Tot Equity & Liabilities</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>11,596</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD> <TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>8,171</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD> <TD WIDTH="13%" ALIGN="RIGHT"><FONT SIZE=2>(48</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD> <TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD> <TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>19,719</FONT></TD> </TR> <TR VALIGN="TOP"> <TD WIDTH="42%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="12%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="10%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="16%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="12%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD> </TR> </TABLE></CENTER> <!-- end of user-specified TAGGED TABLE --> <!-- User-specified TAGGED TABLE --> <CENTER><TABLE WIDTH="76%" BORDER=0 CELLSPACING=0 CELLPADDING=0> <TR VALIGN="BOTTOM"> <TH WIDTH="47%" ALIGN="LEFT"><FONT SIZE=1><B>Xcel Energy<BR></B></FONT><HR NOSHADE></TH> <TH WIDTH="2%"><FONT SIZE=1> </FONT></TH> <TH WIDTH="51%" COLSPAN=11 ALIGN="CENTER"><FONT SIZE=1><B>$Millions except for earnings per share</B></FONT><HR NOSHADE></TH> </TR> <TR VALIGN="BOTTOM"> <TH WIDTH="47%" ALIGN="LEFT"><FONT SIZE=1><B>For the Three Months Ended<BR> March 31, 2000:<BR></B></FONT><HR NOSHADE></TH> <TH WIDTH="2%"><FONT SIZE=1> </FONT></TH> <TH WIDTH="9%" COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>NSP</B></FONT><HR NOSHADE></TH> <TH WIDTH="2%"><FONT SIZE=1> </FONT></TH> <TH WIDTH="9%" COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>NCE</B></FONT><HR NOSHADE></TH> <TH WIDTH="2%"><FONT SIZE=1> </FONT></TH> <TH WIDTH="16%" COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>Adjustments</B></FONT><HR NOSHADE></TH> <TH WIDTH="2%"><FONT SIZE=1> </FONT></TH> <TH WIDTH="11%" COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>Pro<BR> Forma</B></FONT><HR NOSHADE></TH> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="TOP"> <TD WIDTH="47%"><FONT SIZE=2>Revenue</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD> <TD WIDTH="6%" ALIGN="RIGHT"><FONT SIZE=2>793</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD> <TD WIDTH="6%" ALIGN="RIGHT"><FONT SIZE=2>939</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD> <TD WIDTH="13%" ALIGN="RIGHT"><FONT SIZE=2>366</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD> <TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>2,098</FONT></TD> </TR> <TR BGCOLOR="White" VALIGN="TOP"> <TD WIDTH="47%"><FONT SIZE=2>Operating Income</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="6%" ALIGN="RIGHT"><FONT SIZE=2>84</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="6%" ALIGN="RIGHT"><FONT SIZE=2>183</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="13%" ALIGN="RIGHT"><FONT SIZE=2>102</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>369</FONT></TD> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="TOP"> <TD WIDTH="47%"><FONT SIZE=2>Net Income</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="6%" ALIGN="RIGHT"><FONT SIZE=2>48</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="6%" ALIGN="RIGHT"><FONT SIZE=2>105</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="13%" ALIGN="RIGHT"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>153</FONT></TD> </TR> <TR BGCOLOR="White" VALIGN="TOP"> <TD WIDTH="47%"><FONT SIZE=2>Available for Common</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD> <TD WIDTH="6%" ALIGN="RIGHT"><FONT SIZE=2>47</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD> <TD WIDTH="6%" ALIGN="RIGHT"><FONT SIZE=2>105</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="13%" ALIGN="RIGHT"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD> <TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>152</FONT></TD> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="TOP"> <TD WIDTH="47%"><FONT SIZE=2>Earnings per Share—diluted</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD> <TD WIDTH="6%" ALIGN="RIGHT"><FONT SIZE=2>0.30</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD> <TD WIDTH="6%" ALIGN="RIGHT"><FONT SIZE=2>0.91</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="13%" ALIGN="RIGHT"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD> <TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>0.45</FONT></TD> </TR> <TR VALIGN="TOP"> <TD WIDTH="47%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="9%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="9%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="16%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="11%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD> </TR> </TABLE></CENTER> <!-- end of user-specified TAGGED TABLE --> <BR> <P><FONT SIZE=2><A NAME="dm1600_new_nsp_utility_sub_summarized_pro_forma_information"> </A></FONT> <FONT SIZE=2><B>New NSP Utility Sub Summarized Pro Forma Information </B></FONT></P> <P><FONT SIZE=2> The following summary of unaudited pro forma financial information for New NSP Utility Sub adjusts the historical financial statements of NSP after the transfer of ownership. Upon completion of the merger, all NSP-Minnesota utility assets (other than investments in and assets of subsidiaries) and liabilities associated with the assets will be transferred to New NSP Utility Sub.</FONT></P> <P><FONT SIZE=2> The unaudited pro forma balance sheet information at March 31, 2000, assumes the merger had been completed on March 31, 2000. The unaudited pro forma income statement information assumes the merger had been completed on Jan.1, 2000, the beginning of the earliest period presented.</FONT></P> <P><FONT SIZE=2> The unaudited summarized pro forma financial information does not necessarily indicate what New NSP Utility Sub's financial position or operating results would have been if the merger had been</FONT></P> <P ALIGN="CENTER"><FONT SIZE=2>16</FONT></P> <P><FONT SIZE=2><HR NOSHADE></FONT></P> <!-- ZEQ.=2,SEQ=17,EFW="2013583",CP="NORTHERN STATES POWER CO /MN/",DN="1",CHK=846376,FOLIO=16,FILE='DISK014:[00STP0.00STP1600]DM1600A.;7',USER='VDESIO',CD=';5-MAY-2000;11:31 --> <P><FONT SIZE=2>completed on the assumed completion dates and does not necessarily indicate future operating results of New NSP Utility Sub.</FONT></P> <!-- User-specified TAGGED TABLE --> <CENTER><TABLE WIDTH="72%" BORDER=0 CELLSPACING=0 CELLPADDING=0> <TR VALIGN="BOTTOM"> <TH WIDTH="53%" ALIGN="LEFT"><FONT SIZE=1><B>New NSP Utility Sub<BR></B></FONT><HR NOSHADE></TH> <TH WIDTH="2%"><FONT SIZE=1> </FONT></TH> <TH WIDTH="45%" COLSPAN=8 ALIGN="CENTER"><FONT SIZE=1><B>$Millions</B></FONT><HR NOSHADE></TH> </TR> <TR VALIGN="BOTTOM"> <TH WIDTH="53%" ALIGN="LEFT"><FONT SIZE=1><B>As of March 31, 2000:<BR></B></FONT><HR NOSHADE></TH> <TH WIDTH="2%"><FONT SIZE=1> </FONT></TH> <TH WIDTH="12%" COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>NSP</B></FONT><HR NOSHADE></TH> <TH WIDTH="2%"><FONT SIZE=1> </FONT></TH> <TH WIDTH="17%" COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>Adjustments</B></FONT><HR NOSHADE></TH> <TH WIDTH="2%"><FONT SIZE=1> </FONT></TH> <TH WIDTH="11%" COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>Pro Forma</B></FONT><HR NOSHADE></TH> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="TOP"> <TD WIDTH="53%"><FONT SIZE=2>Utility Plant—Net</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD> <TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2>4,449</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD> <TD WIDTH="14%" ALIGN="RIGHT"><FONT SIZE=2>(867</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD> <TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD> <TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>3,582</FONT></TD> </TR> <TR BGCOLOR="White" VALIGN="TOP"> <TD WIDTH="53%"><FONT SIZE=2>Current Assets</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2>1,156</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="14%" ALIGN="RIGHT"><FONT SIZE=2>(610</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>546</FONT></TD> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="TOP"> <TD WIDTH="53%"><FONT SIZE=2>Other Assets</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2>5,991</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="14%" ALIGN="RIGHT"><FONT SIZE=2>(5,102</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>889</FONT></TD> </TR> <TR VALIGN="TOP"> <TD WIDTH="53%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="12%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="17%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="11%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD> </TR> <TR BGCOLOR="White" VALIGN="TOP"> <TD WIDTH="53%"><FONT SIZE=2>Total Assets</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD> <TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2>11,596</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD> <TD WIDTH="14%" ALIGN="RIGHT"><FONT SIZE=2>(6,579</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD> <TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD> <TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>5,017</FONT></TD> </TR> <TR VALIGN="TOP"> <TD WIDTH="53%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="12%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="17%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="11%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="TOP"> <TD WIDTH="53%"><FONT SIZE=2>Common Equity</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD> <TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2>2,537</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD> <TD WIDTH="14%" ALIGN="RIGHT"><FONT SIZE=2>(1,395</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD> <TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD> <TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>1,142</FONT></TD> </TR> <TR BGCOLOR="White" VALIGN="TOP"> <TD WIDTH="53%"><FONT SIZE=2>Pref. Securities</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2>305</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="14%" ALIGN="RIGHT"><FONT SIZE=2>(305</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="8%"><FONT SIZE=2> </FONT></TD> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="TOP"> <TD WIDTH="53%"><FONT SIZE=2>Long-Term Debt</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2>4,984</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="14%" ALIGN="RIGHT"><FONT SIZE=2>(3,605</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>1,379</FONT></TD> </TR> <TR VALIGN="TOP"> <TD WIDTH="53%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="12%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="17%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="11%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD> </TR> <TR BGCOLOR="White" VALIGN="TOP"> <TD WIDTH="53%"><FONT SIZE=2>Total Capitalization</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2>7,826</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="14%" ALIGN="RIGHT"><FONT SIZE=2>(5,305</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>2,521</FONT></TD> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="TOP"> <TD WIDTH="53%"><FONT SIZE=2>Current Liabilities</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2>2,059</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="14%" ALIGN="RIGHT"><FONT SIZE=2>(952</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>1,107</FONT></TD> </TR> <TR BGCOLOR="White" VALIGN="TOP"> <TD WIDTH="53%"><FONT SIZE=2>Other Liabilities</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2>1,711</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="14%" ALIGN="RIGHT"><FONT SIZE=2>(322</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>1,389</FONT></TD> </TR> <TR VALIGN="TOP"> <TD WIDTH="53%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="12%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="17%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="11%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="TOP"> <TD WIDTH="53%"><FONT SIZE=2>Tot Equity & Liabilities</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD> <TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2>11,596</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD> <TD WIDTH="14%" ALIGN="RIGHT"><FONT SIZE=2>(6,579</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD> <TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD> <TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>5,017</FONT></TD> </TR> <TR VALIGN="TOP"> <TD WIDTH="53%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="12%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="17%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="11%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD> </TR> </TABLE></CENTER> <!-- end of user-specified TAGGED TABLE --> <BR> <!-- User-specified TAGGED TABLE --> <CENTER><TABLE WIDTH="71%" BORDER=0 CELLSPACING=0 CELLPADDING=0> <TR VALIGN="BOTTOM"> <TH WIDTH="56%" ALIGN="LEFT"><FONT SIZE=1><B>New NSP Utility Sub<BR></B></FONT><HR NOSHADE></TH> <TH WIDTH="2%"><FONT SIZE=1> </FONT></TH> <TH WIDTH="41%" COLSPAN=8 ALIGN="CENTER"><FONT SIZE=1><B>$Millions</B></FONT><HR NOSHADE></TH> </TR> <TR VALIGN="BOTTOM"> <TH WIDTH="56%" ALIGN="LEFT"><FONT SIZE=1><B>For the three Months Ended March 31, 2000:<BR></B></FONT><HR NOSHADE></TH> <TH WIDTH="2%"><FONT SIZE=1> </FONT></TH> <TH WIDTH="9%" COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>NSP</B></FONT><HR NOSHADE></TH> <TH WIDTH="2%"><FONT SIZE=1> </FONT></TH> <TH WIDTH="17%" COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>Adjustments</B></FONT><HR NOSHADE></TH> <TH WIDTH="2%"><FONT SIZE=1> </FONT></TH> <TH WIDTH="11%" COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>Pro Forma</B></FONT><HR NOSHADE></TH> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="TOP"> <TD WIDTH="56%"><FONT SIZE=2>Revenue</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD> <TD WIDTH="6%" ALIGN="RIGHT"><FONT SIZE=2>793</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD> <TD WIDTH="14%" ALIGN="RIGHT"><FONT SIZE=2>(79</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD> <TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD> <TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>714</FONT></TD> </TR> <TR BGCOLOR="White" VALIGN="TOP"> <TD WIDTH="56%"><FONT SIZE=2>Operating Income</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="6%" ALIGN="RIGHT"><FONT SIZE=2>84</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="14%" ALIGN="RIGHT"><FONT SIZE=2>(21</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>63</FONT></TD> </TR> <TR BGCOLOR="#CCEEFF" VALIGN="TOP"> <TD WIDTH="56%"><FONT SIZE=2>Net Income</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="6%" ALIGN="RIGHT"><FONT SIZE=2>48</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="14%" ALIGN="RIGHT"><FONT SIZE=2>(19</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD> <TD WIDTH="3%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>29</FONT></TD> </TR> <TR BGCOLOR="White" VALIGN="TOP"> <TD WIDTH="56%"><FONT SIZE=2>Available for Common</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD> <TD WIDTH="6%" ALIGN="RIGHT"><FONT SIZE=2>47</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD> <TD WIDTH="14%" ALIGN="RIGHT"><FONT SIZE=2>(18</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2>)</FONT></TD> <TD WIDTH="3%"><FONT SIZE=2>$</FONT></TD> <TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>29</FONT></TD> </TR> <TR VALIGN="TOP"> <TD WIDTH="56%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="9%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="17%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="11%" COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE SIZE=4></TD> </TR> </TABLE></CENTER> <!-- end of user-specified TAGGED TABLE --> <BR> <P><FONT SIZE=2><A NAME="dm1600_item_6._exhibits_and_reports_on_form_8-k"> </A></FONT> <FONT SIZE=2><B>Item 6. Exhibits and Reports on Form 8-K </B></FONT></P> <P><FONT SIZE=2><B>(a) Exhibits</B></FONT></P> <P><FONT SIZE=2> The following Exhibits are filed with this report:</FONT></P> <!-- User-specified TAGGED TABLE --> <TABLE WIDTH="77%" BORDER=0 CELLSPACING=0 CELLPADDING=0> <TR VALIGN="TOP"> <TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>2.01</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="90%"><FONT SIZE=2>Agreement and Plan of Merger, dated as of March 24, 1999, by and between Northern States Power Company and New Century Energies, Inc. (Incorporated by reference to Exhibit 2.1 to the Current Report on Form 8-K (File No. 1-12907) of New Century Energies, Inc. dated March 24, 1999).</FONT></TD> </TR> <TR VALIGN="TOP"> <TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>27.01</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="90%"><FONT SIZE=2>Financial Data Schedule for the three months ended March 31, 2000.</FONT></TD> </TR> <TR VALIGN="TOP"> <TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>99.01</FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="90%"><FONT SIZE=2>Statement pursuant to Private Securities Litigation Reform Act of 1995.</FONT></TD> </TR> </TABLE> <!-- end of user-specified TAGGED TABLE --> <P><FONT SIZE=2><B>(b) Reports on Form 8-K</B></FONT></P> <P><FONT SIZE=2> The following reports on Form 8-K were filed either during the three months ended March 31, 2000, or between March 31, 2000 and the date of this report:</FONT></P> <P><FONT SIZE=2> Jan. 12, 2000, (Filed Jan. 13, 2000)—Item 5. Other Events. Item 7. Financial Statements and Exhibits. Re: Disclosure of NSP's 1999 earnings.</FONT></P> <P><FONT SIZE=2> Feb. 23, 2000, (Filed Feb. 23, 2000)—Item 5. Other Events. Re: Disclosure of NSP and NCE's filing of a Form U-1 associated with the merger approval process.</FONT></P> <P ALIGN="CENTER"><FONT SIZE=2>17</FONT></P> <P><FONT SIZE=2><HR NOSHADE></FONT></P> <!-- ZEQ.=3,SEQ=18,EFW="2013583",CP="NORTHERN STATES POWER CO /MN/",DN="1",CHK=469899,FOLIO=17,FILE='DISK014:[00STP0.00STP1600]DM1600B.;7',USER='VDESIO',CD=';5-MAY-2000;11:31 --> <P><FONT SIZE=2> March 3, 2000, (Filed Mar. 3, 2000)—Item 5. Other Events. Item 7. Financial Statements and Exhibits. Re: Disclosure of NSP's Dec. 31, 1999, year-ended financial statements and the related management's discussion and analysis.</FONT></P> <P><FONT SIZE=2> March 29, 2000, (Filed Mar. 29, 2000)—Item 5. Other Events. Item 7. Financial Statements and Exhibits. Re: Disclosure of NSP's Board of Director approved the potential sale of up to 18 percent of the common stock of NRG.</FONT></P> <P ALIGN="CENTER"><FONT SIZE=2>18</FONT></P> <P><FONT SIZE=2><HR NOSHADE></FONT></P> <!-- ZEQ.=4,SEQ=19,EFW="2013583",CP="NORTHERN STATES POWER CO /MN/",DN="1",CHK=375210,FOLIO=18,FILE='DISK014:[00STP0.00STP1600]DM1600B.;7',USER='VDESIO',CD=';5-MAY-2000;11:31 --> <!-- Generated by Merrill Corporation (www.merrillcorp.com) --> <H2><FONT SIZE=2> </FONT></H2> <BR> <P ALIGN="CENTER"><FONT SIZE=2><A NAME="jc1600_signatures"> </A></FONT> <FONT SIZE=2><B>SIGNATURES </B></FONT></P> <P><FONT SIZE=2> Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.</FONT></P> <!-- User-specified TAGGED TABLE --> <TABLE WIDTH="76%" BORDER=0 CELLSPACING=0 CELLPADDING=0> <TR VALIGN="TOP"> <TD WIDTH="48%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> </FONT></TD> <TD WIDTH="50%"><FONT SIZE=2>NORTHERN STATES POWER COMPANY</FONT><HR NOSHADE><FONT SIZE=2> (Registrant)</FONT></TD> </TR> <TR VALIGN="TOP"> <TD WIDTH="48%"><FONT SIZE=2> <BR> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> <BR> </FONT></TD> <TD WIDTH="50%"><FONT SIZE=2> <BR> /s/</FONT><HR NOSHADE></TD> </TR> <TR VALIGN="TOP"> <TD WIDTH="48%"><FONT SIZE=2> <BR> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> <BR> </FONT></TD> <TD WIDTH="50%"><FONT SIZE=2> <BR> Roger D. Sandeen<BR> Vice President and Controller</FONT></TD> </TR> <TR VALIGN="TOP"> <TD WIDTH="48%"><FONT SIZE=2> <BR> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> <BR> </FONT></TD> <TD WIDTH="50%"><FONT SIZE=2> <BR> /s/</FONT><HR NOSHADE></TD> </TR> <TR VALIGN="TOP"> <TD WIDTH="48%"><FONT SIZE=2> <BR> </FONT></TD> <TD WIDTH="2%"><FONT SIZE=2> <BR> </FONT></TD> <TD WIDTH="50%"><FONT SIZE=2> <BR> John P. Moore, Jr.<BR> Vice President and Corporate Secretary<BR></FONT> </TD> </TR> </TABLE> <!-- end of user-specified TAGGED TABLE --> <P><FONT SIZE=2>Date: <U>May 5, 2000</U></FONT></P> <P ALIGN="CENTER"><FONT SIZE=2>19</FONT></P> <P><FONT SIZE=2><HR NOSHADE></FONT></P> <!-- ZEQ.=1,SEQ=20,EFW="2013583",CP="NORTHERN STATES POWER CO /MN/",DN="1",CHK=757876,FOLIO=19,FILE='DISK014:[00STP0.00STP1600]JC1600A.;9',USER='VDESIO',CD=';5-MAY-2000;11:31 --> <!-- Generated by Merrill Corporation (www.merrillcorp.com) --> <BR> <H2><FONT SIZE=2><A NAME="00STP1600_1">QuickLinks</A></FONT></H2> <!-- TOC_BEGIN --> <FONT SIZE=2><A HREF="#de1600_part_1._financial_information">PART 1. FINANCIAL INFORMATION</A></FONT><BR> <UL> <FONT SIZE=2><A HREF="#de1600_item_1._financial_statements">Item 1. Financial Statements</A></FONT><BR> </UL> <!-- TOC_END --> <!-- TOC_BEGIN --> <FONT SIZE=2><A HREF="#dg1600_northern_states_power_company___nor03764">Northern States Power Company (Minnesota) and Subsidiaries Consolidated Balance Sheets (Unaudited)</A></FONT><BR> <!-- TOC_END --> <!-- TOC_BEGIN --> <UL> <FONT SIZE=2><A HREF="#di1600_business_segments">Business Segments</A></FONT><BR> </UL> <!-- TOC_END --> <!-- TOC_BEGIN --> <UL> <FONT SIZE=2><A HREF="#dj1600_item_2._management_s_discussio__ite03663">Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS</A></FONT><BR> <FONT SIZE=2><A HREF="#dj1600_results_of_operations">RESULTS OF OPERATIONS</A></FONT><BR> <FONT SIZE=2><A HREF="#dj1600_factors_affecting_results_of_operations">Factors Affecting Results of Operations</A></FONT><BR> </UL> <!-- TOC_END --> <!-- TOC_BEGIN --> <UL> <FONT SIZE=2><A HREF="#dk1600_liquidity_and_capital_resources">LIQUIDITY AND CAPITAL RESOURCES</A></FONT><BR> </UL> <FONT SIZE=2><A HREF="#dk1600_part_ii._other_information">Part II. OTHER INFORMATION</A></FONT><BR> <UL> <FONT SIZE=2><A HREF="#dk1600_item_1._legal_proceedings">Item 1. Legal Proceedings</A></FONT><BR> </UL> <!-- TOC_END --> <!-- TOC_BEGIN --> <UL> <FONT SIZE=2><A HREF="#dm1600_item_5._other_information">Item 5. Other Information</A></FONT><BR> <FONT SIZE=2><A HREF="#dm1600_proposed_business_combination">Proposed Business Combination</A></FONT><BR> <FONT SIZE=2><A HREF="#dm1600_xcel_summarized_pro_forma_information">Xcel Summarized Pro Forma Information</A></FONT><BR> <FONT SIZE=2><A HREF="#dm1600_new_nsp_utility_sub_summarized_pro_forma_information">New NSP Utility Sub Summarized Pro Forma Information</A></FONT><BR> <FONT SIZE=2><A HREF="#dm1600_item_6._exhibits_and_reports_on_form_8-k">Item 6. Exhibits and Reports on Form 8-K</A></FONT><BR> </UL> <!-- TOC_END --> <!-- TOC_BEGIN --> <FONT SIZE=2><A HREF="#jc1600_signatures">SIGNATURES</A></FONT><BR> <!-- TOC_END --> <!-- SEQ=,FILE='QUICKLINK',USER=VDESIO,SEQ=,EFW="2013583",CP="NORTHERN STATES POWER CO /MN/",DN="1" --> </BODY> </HTML>