Utilities Preview 07-24-12.pdf

Please refer to page 20 of this report for detailed disclosure and certification information.
*D.A. Davidson & Co. makes a market in this security.
INDUSTRY UPDATE
Institutional Equity Research

July 23, 2012 Utilities Update

Prices: 7/23/12

Industry:
Utilities

James L. Bellessa, Jr., CFA
406.791.7230
[e-mail]

Michael Bates
503.603.3045
[e-mail]

Utilities Earnings Previews: Weeks of 7/23/12 and 7/30/12

This earnings preview covers twelve utility companies reporting 2Q’12 results in the
next two weeks.

In addition to normal variances related to the timing of customer demand, rate relief,
and operating expenses, weather conditions likely influenced 2Q’12 earnings. In
general, very mild spring temperatures had a negative impact on demand for natural
gas and electricity in the first half of the quarter, and above average temperatures in
the second half of the quarter had a positive impact on sales. The magnitude of these
earnings impacts will vary by location. Pacific Northwest utilities should have
benefitted from favorable hydrogeneration conditions, but not to the extent reached
during last year’s exceptional strong streamflows.

Managements will likely highlight efforts at expense controls, which in many cases
should offset the negative margin impacts tied to 1H weather conditions (assuming
near-normal weather for the remainder of the year). Hot temperatures so far this
summer will also likely provide support for 2H margin/earnings improvements.

Looking past the temporary impacts of weather, investors should generally be focusing
on changes to capital spending timelines, as expectations in virtually all aspects of the
industry (particularly relating to electric generating capacity, emissions benchmarks,
and transmission upgrades) continue to evolve.

See Table 1 below and our commentary and earnings models on each utility on the
following pages. For more detailed company information, please refer to our most
recent research reports.
Table 1: Utilities 2Q Earnings Preview
Source: D.A. Davidson & Co. estimates and Capital IQ consensus
Symbol Rating Price
(7/23/12)
EPS
Estimate
Consensus
Estimate
Prior Year
Qtr
Report
Date Call Date
Scheduled to Report the Week of 7/23/12
NWE* N $37.42 $0.28 $0.29 $0.28 7/24 7/24
STR* N $20.97 $0.22 $0.23 $0.22 7/25 7/26
Scheduled to Report the Week of 7/30/12
ALE* N $41.26 $0.37 $0.37 $0.40 8/2 8/2
HE* N $28.55 $0.42 $0.36 $0.28 8/2 8/3
IDA* B $42.54 $0.51 $0.51 $0.42 8/2 8/2
ITC* B $72.94 $1.00 $1.00 $0.83 7/31 8/1
LNT* B $46.96 $0.43 $0.45 $0.44 8/3 8/3
MDU* N $22.54 $0.20 $0.20 $0.24 8/1 8/2
NWN* N $48.40 $0.13 $0.15 $0.25 8/3 8/3
UNS* B $41.29 $0.60 $0.62 $0.71 7/30 7/30
WEC* N $40.88 $0.43 $0.44 $0.41 8/1 8/1
XEL* N $29.00 $0.36 $0.35 $0.33 8/2 8/2
Scheduled to Report the Week of 8/6/12
AVA* N $27.26 $0.42 $0.43 $0.39 8/7 8/7
BKH* N $31.79 $0.35 $0.37 $0.22 8/6 8/7
GXP* N $22.29 $0.34 $0.35 $0.37 8/8 8/9
MGEE* U $48.35 $0.55 $0.55 $0.55 8/7 n/a
OTTR* N $23.19 $0.26 $0.21 $0.14 8/6 n/a
POR* B $27.05 $0.34 $0.34 $0.29 8/7 8/7
TEG* N $59.75 $0.40 $0.40 $0.38 8/8 8/9
WR* B $30.49 $0.43 $0.43 $0.41 8/7 8/8
D.A. Davidson & Co.
2
ALLETE is scheduled to report 2Q’12 earnings on Thursday, August 2nd, before the market
opens, and conduct a conference the same day at 10:00 AM ET/7:00 AM PT.

Earnings estimates, guidance & expectations. We are forecasting EPS of $0.37 for the
quarter, which is down moderately from (non-GAAP) $0.40 reported last year and matches the
consensus estimate. ALE has provided an EPS guidance range of $2.45-$2.65 for 2012. Our
forecast of $2.56 matches the Street consensus.

Key Drivers and Areas of Focus:
Back-end loaded year. ALLETE’s revenues should be more back-end loaded in 2012
than in 2011. Due to the Bison II and III wind farm build out, a larger portion of capital
expenditures eligible for current cost recovery should be posted in the 2H’12 than in
1H’12. We also believe utility O&M will be more evenly distributed in 2012 than in 2010
and 2011, when it was disproportionately weighted in the fourth quarters.
Temperatures. 2Q temperatures (as measured by heating-degree days) in Minnesota
Power’s service territory were ~25% warmer than normal and last year, but we do not
believe electric usage was radically changed, as usage by weather-sensitive residential
customers makes up a relatively small proportion of the utility’s load (13% versus the 37%
national average).
Industrial demand. We believe the company’s 12 large industrial users – especially
taconite producers – continued to require electricity at near full production rates.
Additionally, we expect the economy within the company’s service territory continued to
grow in the recent quarter.
New load possibilities. We expect management will continue to discuss the company’s
multi-year, multi-faceted growth opportunities.

NEUTRAL rated. Our $42.50 price target equates to ~15x the average of our 2012 and 2013
EPS forecast of non-real estate EPS, plus an estimated $2.50 per share value for ALLETE
Properties.

Alliant is scheduled to report 2Q’12 earnings on Friday, August 3rd before the market opens. A
conference call with management will be held the same day at 10:00 AM ET/7:00 AM PT.

Earnings estimates, guidance & expectations. We are forecasting EPS from continuing
operations of $0.43 for the quarter, compared to last year’s GAAP and non-GAAP EPS of
$0.45 and $0.43, respectively, when the contribution of renewable energy contracting
subsidiary RMT is removed (RMT is on the sales block, now accounted for in discontinued
operations). The consensus estimate is $0.45. LNT has provided an earnings guidance range
of $2.75-$3.05 for 2012, with a recent notation that results are likely to be the low end of that
range. We are forecasting adjusted EPS of $2.78, compared to the $2.83 Street consensus.

Key Drivers and Areas of Focus:
 Regulated operations. Overall temperatures were warmer than normal in 2Q’12. We
expect the drag from mild spring temperatures in the first half of the quarter more than
offset the benefits of hotter temperatures in the last half of the quarter, modestly
pressuring utility gross margin. However, lower O&M expenses and absence of a drag a
year ago from timing issues with an Iowa tax benefit rider should push utility EPS upward
moderately.
 Riverside acquisition. WPL’s purchase of the 600 MW gas-fired Riverside Energy
Center for $392 million is on track to be consummated by year-end 2012. The purchase
should produce a significant portion of Alliant’s earnings growth in 2013 (~$0.18 per
share), and should be accomplished without a measurable increase in customer rates.
 Columbia Energy Center. Capex tied to the installation of emissions controls at the
Columbia plant are ramping up sharply, which translates to higher AFUDC in 2012-2013.
The retrofit will generate cash earnings once completed and rate based (expected in
2014).

BUY rated. Our 12-18 month price target of $49 equates to 15.7x our 2013 estimate of $3.12.

ALLETE, Inc.
(ALE – NEUTRAL – $42.50 target)
Alliant Energy Corp.
(LNT – BUY – $49 target)
D.A. Davidson & Co.
3
Hawaiian Electric Industries is scheduled to report 2Q’12 earnings from American Savings
Bank on Monday, July 30th, which will be followed by the firm’s consolidated earnings report on
Thursday, August 2nd, after the market closes. Management will conduct a conference call to
review the report on Friday, August 3, 2012, at 2:00 PM ET/11:00 AM PT.

Earnings estimates, guidance & expectations. We are forecasting EPS of $0.42 for the
quarter versus $0.28 reported a year ago. The consensus estimate is $0.36. We are
forecasting full-year EPS of $1.65 in 2012, which compares to the $1.60 consensus and $1.44
reported in 2011. HE does not provide a specific annual EPS guidance range.

Key Drivers and Areas of Focus:
 Bank results. We are forecasting an EPS contribution of $0.14 from ASB, versus $0.16 a
year ago, as the low interest rate environment continues to pressure the net interest rate
margin.
 Weather. 2Q’12 temperatures (as measured by cooling-degree days) in Hawaiian
Electric’s service territory were 6%-9% milder than last year. However, decoupling
mechanisms that have been put into place in the past year should mitigate most of the
adverse impacts of weather-reduced electric sales.
 Fuel prices. Hawaii has the highest electric rates in the nation because of the state’s
dependence on imported fuel oil. High oil prices in the second quarter (which are passed
along to customers) likely reduced electric usage. We believe any drags on earnings from
fuel oil prices and the weather were offset by rate decisions granted in the past year and
the benefits of an improved economy.
 Narrowing regulatory lag. Management forecasts 2012 utility operations on Oahu (the
utility’s largest jurisdiction) will earn an ~8.5% ROE, as regulatory rules collectively create
a shortfall from the allowed level (10.0%). Decoupling and other regulatory mechanisms
should eventually help the utility move closer to earning its allowed ROE.

NEUTRAL rated. Our 12-18 month price target of $26 equates to ~17x the average of our
2012 and 2013 non-bank estimates of $1.06 and $1.14 per share, respectively, plus ~1.7x the
$4.28 tangible book value of the bank.

IDACORP is scheduled to report 2Q’12 earnings on Thursday, August 2nd before the market
opens. Management’s conference call will be held the same day at 4:30 PM ET/1:30 PM PT.

Earnings estimates, guidance & expectations. We are forecasting EPS of $0.51, which
matches the consensus and compares to $0.42 reported last year. IDA has provided an EPS
guidance range of $3.00-$3.15 for 2012, compared to $3.36 reported for 2011. We are
currently forecasting $3.08 per share for 2012, which matches the consensus estimate.

Key Drivers and Areas of Focus:
 Uplift from temperatures. The tailwind from 2Q’12 cooling-degree days that were
~100%-200% higher than a year ago (depending on the location within Idaho Power’s
service territory), should have more than offset the headwind from 2Q’12 heating-degree
days that were warmer than last year. We believe this lift should be augmented by
improved cost recovery rules and an improved economy.
 Hydroelectric generation. Reservoir levels and soil moisture were above average going
into the year within Idaho Power’s Snake River drainage, which should translate to near
normal hydro conditions in 2012 even though mountain snowpacks were below normal.
The annual hydroelectric generation comparison for 2012, however, should be lower than
2011, as last year’s hydro power conditions were at a generational high.
 Langley Gulch. Key to our 2012 and 2013 earnings forecast is the mid-2012 commercial
operation of the Langley Gulch power plant, which occurred, and reasonable regulatory
treatment of the related single-issue rate case, which happened when the Idaho PUC
approved a settlement agreement in late June.

BUY rated. Our $48.50 price target equates to 15.2x our 2013 EPS estimate of $3.20.

Hawaiian Electric Industries, Inc.
(HE – NEUTRAL – $26 target)
IDACORP, Inc.
(IDA – BUY – $48.50 target)
D.A. Davidson & Co.
4
ITC is scheduled to report 2Q’12 earnings on Tuesday, July 31st, after the market closes. A
conference call with management will be held the following day at 11:00 AM ET/8:00 AM PT.

Earnings estimates, guidance & expectations. We are forecasting EPS of $1.00 for the
quarter, which matches consensus and marks a 21% increase from $0.83 reported last
year. Our estimate excludes costs associated with ITC’s proposed acquisition of Entergy’s
(ETR - $70.91) transmission assets. ITC has provided an earnings guidance range of $3.90-
$4.05 for 2012. We are forecasting $3.98 per share, compared to the $4.01 consensus.

Key Drivers and Areas of Focus:
 Regulatory filings pending for transmission transaction. ITC’s focus remains on its
proposed acquisition of Entergy’s transmission assets. Formal requests for approval with
state and federal regulators will likely accumulate through the summer.
 Capital projects. ITC continues to make progress in developing its key projects.
Construction of the 140-mile high voltage Thumb Loop transmission project in Michigan
(the largest single project ITC has ever undertaken) began in July 2012, with capital
spending further ramping up in 2013 and 2014. Also, ITC just placed its Hugo-Valiant
project in Oklahoma into operation, and its KETA project in Kansas is slated for
completion by year-end.
 Sensitivity to renewable tax credits. Expiration of the wind energy production tax credit
(PTC) at year-end 2012 remains a possibility; and removal of these incentives would scale
back some transmission development opportunities in the Upper Midwest. Although most
of ITC’s projects are geared toward reliability upgrades rather than wind farm
interconnections, the issue represents an important potential growth driver.

BUY rated. Our $88 price target equates to ~18x our 2013 EPS estimate of $4.90. Shares
continue to trade at multiples below historical levels as investors remain skeptical of whether
FERC will continue incentivizing high voltage transmission development. Despite this element
of risk, it is our view that ITC’s industry-leading growth potential and constructive regulatory
backdrop merit a premium valuation.

MDU Resources is scheduled to report 2Q’12 earnings on Wednesday, August 1st, after the
market closes, followed by a conference call the next day at 11:00 AM ET/8:00 AM PT.

Earnings estimates, guidance & expectations. We are forecasting EPS of $0.20 for the
quarter, which matches consensus and marks a decline from $0.24 reported last year. MDU
has provided 2012 EPS guidance of $1.00-$1.25. We are currently forecasting $1.21 per
share, which compares to the $1.14 Street consensus among seven analysts.

Key Drivers and Areas of Focus:
 Modeling flat to down earnings from Natural Gas & Oil segment. We are forecasting
2Q’12 EPS of $0.10 from Fidelity E&P, versus $0.11 a year earlier, based on a 25%
increase in oil production to ~1.0 million barrels and an average realized oil price of
$83.50/bbl, essentially unchanged from a year ago. We are also projecting a 15%
production decline in natural gas to ~9.6 Bcf, with a price decline of ~24% to
$2.60/mcf. Management has been guiding this year to an oil production increase of 20%-
30% and a curtailment of natural gas production. We have been forecasting an average
price increase of 5% for oil and a 33% decrease for gas.
 Regulated segments. We believe 2Q’12 temperatures in the utility’s dispersed service
territories moderately held back natural gas sales and benefitted electric sales. Earnings
from the utilities were likely flat on an EPS basis ($0.04), despite a slight increase in net
income. We expect lower earnings from the Pipeline & Energy Services segment ($0.02
versus $0.03), held back by narrower pricing differentials for natural gas storage.
 Construction segments. Last quarter, management said it had made personnel and
operation changes at its Construction Materials group to improve results. We forecast a
flat earnings contribution of $0.03 from Construction Materials and a one penny
improvement to $0.04 from Construction Services.

NEUTRAL rated. Our $23 price target equates to an EV/EBITDA ratio of 6.9x the average of
our 2012 and 2013 estimates.
ITC Holdings Corporation.
(ITC – BUY – $88 target)
MDU Resources Group, Inc.
(MDU – NEUTRAL – $23 target)
D.A. Davidson & Co.
5
NorthWestern is scheduled to report 2Q’12 earnings on Tuesday, July 24th before the market
opens, with a conference call with management the same day at 4:00 PM ET/1:00 PM PT.

Earnings estimates, guidance & expectations. We are forecasting EPS of $0.28 for the
seasonally lowest quarter of the year, flat with last year’s (non-GAAP) results and a penny
below the Street consensus. NWE has provided a 2012 earnings guidance range of $2.35-
$2.50. We are currently forecasting $2.43 per share compared to the $2.44 Street consensus.

Key Drivers and Areas of Focus:
 Utility. Electric utility margins likely moved higher due to an early onset of summer,
particularly in the South Dakota service territory, and remained relatively flat on the gas
side, due to mild temperatures during the first half of the quarter. This improvement in
margins was likely to be partially offset by higher operating expenses.
 Gas reserve opportunity for ratepayers and shareholders. On March 30th NWE
requested Montana Public Service Commission (MPSC) approval to rate base a
$12.4 million investment in gas reserves (including a 10% allowed ROE capitalized with
48% equity ratio). While the Battle Creek investment provides only a small portion of the
utility’s natural gas requirements, its regulatory treatment could be a determining factor in
considering similar investments going forward, which could total $100-$200 million through
2013.
 Spion Kop wind farm. Construction of the 40 MW Spion Kop wind farm should be well
underway, with the $86 million project expected to be operational by year-end. Montana’s
renewable portfolio standard (15% by 2015) drove the decision to construct the wind farm,
which the MPSC pre-approved with a 10.0% allowed ROE and 48% equity ratio until the
project undergoes a prudency review and rate basing scrutiny.

NEUTRAL rated. Our $37 price target equates to 14.6x our 2013 EPS estimate of $2.53.

NW Natural is scheduled to report 2Q’12 earnings on Friday, August 3rd before the market
opens. A conference call will be held the same day at 11:00 AM ET/8:00 AM PT.

Earnings estimates, guidance & expectations. We are forecasting EPS of $0.13 for the
quarter, down from $0.25 reported last year. The consensus estimate is $0.15. NWN has
provided an earnings guidance range of $2.35-$2.55 for 2012. We are currently forecasting
$2.46 per share, compared to the $2.51 Street consensus.

Key Drivers and Areas of Focus:
 Core utility. Second quarter earnings at the utility were likely lower due to mild
temperatures (heating-degree days were 25% lower than in 2Q’11, when favorable weather
drove a $0.12 per share benefit). Weather normalization covers a majority of the utility’s
customer base, but this mechanism does not apply for the latter portion of 2Q.
 General rate case. Investors will be focusing on the utility’s general rate case in Oregon,
in which NW Natural is now seeking a $35.9 million (+5.1%) increase in retail rates, down
from its original request for a $44 million (+6.2%) increase following the filing of a partial
settlement on July 9th. The rate case also includes a request by the utility to continue the
weather normalization and decoupling mechanisms (both set to expire in October 2012) for
three years as it implements a new fixed cost recovery rate designs for residential and
commercial customers. Parties remain divided on certain issues in the case, including rate
of return, capital structure, and other issues. Based on the current schedule, a final order
should be handed down by October 22nd, in time for rates to take effect on January 1, 2013.
 Investment in gas reserves. NWN’s joint venture with Encana Corporation (ECA -
$20.65) to develop Wyoming-based natural gas reserves remains a key growth driver,
equating to ~$50 million of rate-based assets per year through 2015.
 Gas storage. NWN’s Gas Storage segment continues to perform well from an operational
standpoint, but has been disappointing financially. Low volatility in natural gas prices and
the uncertain timing of the next expansion of Gill Ranch will likely hold back earnings from
this segment for the foreseeable future.

NEUTRAL rated. Our 12-18 month target price of $46 equates to 17.3x our 2013 EPS
estimate of $2.65.
NorthWestern Corp.
(NWE – NEUTRAL – $37 target)
Northwest Natural Gas Co.
(NWN – NEUTRAL – $46 target)
D.A. Davidson & Co.
6
Questar plans to report 2Q’12 earnings on Wednesday, July 25th after the market closes. A
conference call with management will be held the next day at 9:30 AM ET/6:30 AM PT.

Earnings estimates, guidance & expectations. We are forecasting EPS of $0.22 for the
quarter, flat with 2Q’11 and a penny below the consensus. STR has provided an earnings
guidance range of $1.15-$1.19 for 2012. We are currently forecasting $1.20 per share,
compared to the $1.19 consensus.

Key Drivers and Areas of Focus:
 Wexpro. Higher production volumes and an expanded investment base should drive EPS
upward, but could be partially offset by lower commodity prices. We are forecasting $0.14
per share versus $0.13. Low natural gas prices will likely continue to be a headwind to
Wexpro’s growth, but low finding costs in its world-class drilling region should continue to
protect its long-term economic viability. We view an expansion of Wexpro’s development
footprint through the ‘Wexpro 2’ proposal as the most likely catalyst for an acceleration of
STR’s long-term growth. Regulatory approval of the ‘Wexpro 2’ agreement could be
handed down in 3Q’12.
 Questar Pipeline. Higher transportation volumes and revenue collections on a per unit
basis, offset in part by lower contracted capacity, should push the segment’s contribution
higher. Our forecast calls for EPS of $0.10, versus $0.09 one year ago. Aside from some
growth fueled by the addition of new gas-fired electric generation in the region, the current
environment of low-priced natural gas is expected to limit Questar Pipeline’s growth
opportunities for the foreseeable future. However, the segment represents a useful
source of cash flow to fund growth at Wexpro.
 Utility. Margins should have moved slightly higher due to an expanded customer base,
but we believe these benefits were more than offset by higher operating expenses,
producing a seasonal loss of $0.02 per share versus near-break results a year
ago. Temperatures in the second quarter were materially milder than normal and a year
ago, but weather normalization should have offset any financial impact. We assume the
utility’s earnings growth trajectory will remain intact through 2016, driven by an expanding
rate base and customer growth of ~1% per year. Looking longer term, an acceleration of
the build out of the utility’s CNG infrastructure could provide additional upside.

NEUTRAL rated. Our $20 price target equates to 15.8x our 2013 EPS estimates of $1.26.

UNS Energy plans to report 2Q’12 earnings on Monday, July 30th before the market opens. A
conference call with management will be held the same day at 11:00 AM ET/8:00 AM PT.

Earnings estimates, guidance & expectations. We are forecasting EPS of $0.60 for the
quarter, down from $0.71 reported a year ago. The consensus estimate is $0.62 among five
analysts. UNS has provided an earnings guidance range of $2.05-$2.35 for 2012. We are
currently forecasting $2.16 per share, compared to the $2.21 consensus of six analysts.

Key Drivers and Areas of Focus:
 TEP general rate case. Tucson Electric filed a request to increase base rates by
$128 million (+15.3%) on July 2nd, marking the end of a multi-year rate freeze. With
~$500 million of system investments poised to move into the utility’s rate base with this
proceeding, the utility’s ongoing financial wherewithal is closely tied to a fair
outcome. The request is premised on a 2011 test year, a 46% equity ratio, and a 10.75%
ROE (we note TEP’s current authorized ROE is 10.25%). Sans a settlement agreement,
new rates would be expected to go into effect in August 2013. An early resolution to the
TEP rate case could represent a source of upside potential to our 2013 EPS forecast.
 Growing expenses likely to overwhelm weather benefits. Modest improvement in
gross margin is likely due to the quarter’s hotter temperatures than a year ago (cooling
degree days were 13% above 2Q’11). However, increased expenses are likely to drive a
reduction in operating and net income.

BUY rated. Our $43.50 price target equates to 16.4x our 2013 EPS estimate of $2.65.

Questar Corp.
(STR – NEUTRAL – $20 target)
UNS Energy Corp.
(UNS – BUY – $43.50 target)
D.A. Davidson & Co.
7
Wisconsin Energy is scheduled to report 2Q’12 earnings on Wednesday, August 1st before the
market opens. A conference call with management will be held the same day at 2:00 PM
ET/11:00 AM PT.

Earnings estimates, guidance & expectations. We are forecasting EPS of $0.43 for the
quarter, up from $0.41 (non-GAAP) reported last year. The consensus estimate is $0.44
among eight analysts. WEC has provided an earnings guidance range of $2.24-$2.29 for
2012. We are currently forecasting $2.26 per share, compared to the $2.28 consensus of 17
analysts.

Key Drivers and Areas of Focus:
 General rate case update. Wisconsin Energy filed its 2013 test year general rate cases
for its Wisconsin-based operations in March, requesting a $236 million (+5.5%) annual
revenue increase, based on an electric and gas rate base of $5.5 billion. Neither the utility
nor the PSCW staff intend to pursue a change to the currently allowed ROEs (electric:
10.4%; gas: 10.5%) or equity ratio ranges (electric: 48%-53%; gas: 45%-50%).
Wisconsin’s relatively constructive regulatory environment gives us confidence the rate
cases should be resolved in time for new rates to take effect by January 1, 2013. Also, in
June, the utility was granted a $9 million base rate increase for its Michigan jurisdiction.
 July temperatures in June. Margin pressures from mild early spring temperatures
(heating degree days were ~25% below average and 2Q’11) were likely offset by the
benefits of hot temperatures in the latter part of the quarter (cooling degree days were
110% above average and 2Q’11). Full-year guidance is likely to remain unchanged
despite the overall earnings drag from weather in 1H’12, as management expects
improved recovery of fuel costs, reduced interest expenses, and cost controls.

NEUTRAL rated. Our 12-18 month price target is $37.00, which equates to 15.6x our 2013
EPS estimate of $2.38.

Xcel is scheduled to report 2Q’12 earnings on Thursday, August 2nd before the market opens.
A conference call with management will be held the same day at 10:00 AM ET/7:00 AM PT.

Earnings estimates, guidance & expectations. We are forecasting EPS of $0.36 for the
quarter, up from $0.33 reported last year and a penny above consensus. XEL expects 2012
earnings to be in the lower half of its $1.75-$1.85 guidance range. We are currently
forecasting $1.75 per share, which compares to the $1.77 consensus.

Key Drivers and Areas of Focus:
 Weather benefits likely overcame cost pressures. Margins likely moved higher as
reduced gas utility demand from mild shoulder mouth temperatures was likely offset by
increased electric sales due to a hotter than normal May and June temperatures.
Headwinds for the quarter likely included increased operating expenses and lower electric
rates in Colorado.
 Multi-year rate making. Colorado regulators accepted a settlement submitted in April for
an electric revenue increase of $73 million (+2.1%) in May 2012, followed by incremental
increases of $13 million and $25 million in January 2013 and January 2014, respectively.
The settlement includes a rate case moratorium until 2015 and a provision that the utility
will record AFUDC for investments tied to the Colorado Clean Air Clean Jobs Act through
2014 (forecasted to be $870 million). The utility plans to pursue such multi-year rate
making in Minnesota.
 Capital investment pipeline. Management expects $13.4 billion in capex from 2012-
2016, which is expected to drive rate base growth of ~7% per year. The biggest year of
spending under the plan is $3.3 billion in 2013. Diluted by an estimated $1.2 billion in
secondary and DRIP issuances of common equity to fund the capex budget, management
envisions EPS growth of 5%-7%.

NEUTRAL rated. Our $27 price target equates to 14.6x our 2013 EPS estimate of $1.85.

Wisconsin Energy Corp.
(WEC – NEUTRAL – $37 target)
Xcel Energy, Inc.
(XEL – NEUTRAL – $27 target)
D.A. Davidson & Co.

8
ALLETE, Inc. - Historical and Projected Operating Results

*Results are adjusted to exclude the impact of nonrecurring items and discontinued operations.
Source: D.A. Davidson & Co. estimates and company reports
$ in millions -- Fiscal year ends 12/31 2010* 1Q'11* 2Q'11* 3Q'11 4Q'11 2011 1Q'12 2Q'12E 3Q'12E 4Q'12E 2012E 2013E
Operating Revenue:
Regulated Operations $835.5 $223.0 $201.8 $207.4 $219.7 $851.9 $218.6 $202.2 $224.1 $229.5 $874.4 $921.5
Investments & Other 71.5 19.2 18.1 19.5 19.5 76.3 21.4 21.0 21.5 21.5 85.4 87.0
Total Operating Revenue $907.0 $242.2 $219.9 $226.9 $239.2 $928.2 $240.0 $223.2 $245.6 $251.0 $959.8 $1,008.5
Operating Expenses:
Fuel and Purchased Power 325.1 79.0 76.0 74.8 76.8 306.6 77.1 75.2 79.6 79.6 311.5 326.1
Operating and Other Expenses 365.6 90.1 95.7 90.5 104.9 381.2 99.9 99.5 99.8 99.8 399.0 403.8
Depreciation 80.5 22.3 22.1 22.7 23.3 90.4 24.6 24.8 25.0 25.2 99.6 108.4
Operating Expenses 771.2 191.4 193.8 188.0 205.0 778.2 201.6 199.5 204.4 204.6 810.1 838.3
EBITD $216.3 $73.1 $48.2 $61.6 $57.5 $240.4 $63.0 $48.5 $66.3 $71.6 $249.3 $278.6
Operating Income $135.8 $50.8 $26.1 $38.9 $34.2 $150.0 $38.4 $23.7 $41.3 $46.4 $149.7 $170.2
Interest Expense (39.2) (10.7) (11.0) (10.9) (11.0) (43.6) (11.0) (11.0) (11.0) (11.0) (44.0) (45.4)
Equity Earnings in ATC 17.9 4.4 4.6 4.7 4.7 18.4 4.6 4.8 4.9 5.0 19.3 21.0
Other Income (Expense) 4.6 0.8 1.0 0.5 2.1 4.4 0.7 0.9 0.9 0.9 3.4 3.6
Pretax Income $119.1 $45.3 $20.7 $33.2 $30.0 $129.2 $32.7 $18.4 $36.1 $41.3 $128.4 $149.4
Income Tax Expense 40.3 8.2 6.7 12.7 10.9 38.5 8.3 4.6 9.1 10.2 32.2 38.1
Effective Tax Rate 33.8% 18.1% 32.4% 38.3% 36.3% 29.8% 25.4% 24.8% 25.3% 24.6% 25.0% 25.5%
Minority Interest (0.5) (0.1) (0.1) 0.0 0.0 (0.2) 0.0 0.0 0.0 0.0 0.0 0.0
Income From Continuing Operations $79.3 $37.2 $14.1 $20.5 $19.1 $90.9 $24.4 $13.8 $26.9 $31.1 $96.3 $111.3
Discontinued Operations
Net Income $79.3 $37.2 $14.1 $20.5 $19.1 $90.9 $24.4 $13.8 $26.9 $31.1 $96.3 $111.3
Average Diluted Shares 34.3 34.7 35.1 35.7 36.1 35.4 36.9 37.4 37.9 38.4 37.7 39.7
EPS - Continuing Operations $2.31 $1.07 $0.40 $0.57 $0.53 $2.57 $0.66 $0.37 $0.71 $0.81 $2.56 $2.81
Segment EPS:
Regulated Operations $2.43 $1.11 $0.44 $0.67 $0.55 $2.76 $0.66 $0.40 $0.74 $0.84 $2.66 $2.93
Investments & Other (0.12) (0.03) (0.04) (0.09) (0.02) (0.19) (0.00) (0.03) (0.03) (0.03) (0.10) (0.12)
EPS - Continuing Operations $2.31 $1.07 $0.40 $0.57 $0.53 $2.57 $0.66 $0.37 $0.71 $0.81 $2.56 $2.81
D.A. Davidson & Co.

9
Alliant Energy Corp. - Historical and Projected Operating Results

Source: D.A. Davidson & Co. estimates and company reports
$ in millions -- Fiscal year ends 12/31 1Q'11 2Q'11 3Q'11 4Q'11 2011 1Q'12 2Q'12e 3Q'12e 4Q'12e 2012e 2013e
Total Operating Revenues $945.0 $819.5 $1,021.6 $879.2 $3,665.3 $765.7 $688.0 $850.4 $769.1 $3,073.2 $3,284.9
Resource Costs 481.8 362.8 404.2 391.9 1,640.7 407.6 343.0 387.3 399.8 1,537.7 1,583.9
Gross Margin $463.2 $456.7 $617.4 $487.3 $2,024.6 $358.1 $344.9 $463.1 $369.3 $1,535.5 $1,701.0
Other Operation and Maintenance 160.6 168.9 147.1 153.6 630.2 150.0 147.5 136.7 150.0 584.2 616.3
Non-Regulated Operation and Maintenance 69.9 108.0 178.5 134.5 490.9 4.2 4.3 4.3 4.3 17.1 19.2
Depreciation and Amortization 78.8 82.2 81.3 81.5 323.8 83.0 85.6 85.1 85.1 338.7 370.6
Taxes Other Than Income Taxes 26.1 25.6 25.4 24.2 101.3 25.3 25.9 25.7 26.1 102.9 112.8
Total Operating Expenses $335.4 $384.7 $432.3 $393.8 $1,546.2 $262.5 $263.3 $251.7 $265.4 $1,042.9 $1,118.9
EBITDA $216.8 $163.1 $276.1 $186.1 $842.1 $180.1 $178.5 $309.5 $200.6 $868.7 $1,007.3
Operating Income $127.8 $72.0 $185.1 $93.5 $478.4 $95.6 $81.7 $211.4 $103.9 $492.6 $582.1
Interest Expense $40.6 $40.4 $38.7 $38.6 $158.3 $38.9 $38.5 $38.6 $43.6 $159.6 $194.4
Equity (Income) Loss from Investments, net (9.9) (9.6) (10.1) (9.7) (39.3) (9.4) (10.1) (10.3) (10.1) (39.8) (42.6)
AFUDC (3.1) (2.7) (2.8) (3.4) (12.0) (3.8)(4.4) (6.0) (4.8)(19.0) (24.9)
Interest Income and Other (0.8) (0.8) (0.7) (2.0) (4.3) (1.1)(0.8) (0.8) (0.8)(3.4) (3.0)
Pretax Income $101.0 $44.7 $160.0 $70.0 $375.7 $71.0 $58.4 $189.8 $75.8 $395.1 $458.2
Income Taxes 22.6 (10.6) 34.1 9.0 55.1 27.7 6.6 41.1 10.7 86.1 96.2
Effective Tax Rate 22.4% -23.7% 21.3% 12.9% 14.7% 39.0% 11.3% 21.7% 14.1% 21.8% 21.0%
Income from Continuing Operations $78.4 $55.3 $125.9 $61.0 $320.6 $43.3 $51.8 $148.7 $65.2 $309.0 $362.0
Discontinued Operations 1.3 1.3 (4.4) (4.4)
Preferred Dividend 6.2 4.2 3.9 4.0 18.3 4.0 4.0 4.0 4.0 15.9 15.9
Net Income for Common $73.5 $51.1 $122.0 $57.0 $303.6 $34.9 $47.9 $144.7 $61.2 $288.7 $346.1
Average Diluted Shares Outstanding 110.6 110.7 110.7 110.7 110.7 110.7 111.0 111.0 111.0 111.0 111.0
Diluted EPS - GAAP $0.66 $0.46 $1.10 $0.51 $2.74 $0.32 $0.43 $1.30 $0.55 $2.60 $3.12
Non-GAAP Adjustments to EPS:
Nonrecurring Tax Events (0.17) (0.17) 0.14 0.14
Impairments 0.03 0.04 0.07
Discontinued Operations (0.01) (0.01) 0.04 0.04
Cash Balance Pension Plan Charges 0.05 0.05
Regulatory Credits/Charges 0.06 0.02 0.08
Diluted EPS - Adjusted $0.68 $0.44 $1.12 $0.51 $2.76 $0.50 $0.43 $1.30 $0.55 $2.78 $3.12
Ratio Analysis:
Return on Equity (ttm) 11.4% 11.4% 10.5% 10.2% 10.2% 9.1% 8.9% 9.6% 9.6% 9.6% 10.9%
Return on Assets (ttm) 3.5% 3.5% 3.3% 3.2% 3.2% 2.8% 2.8% 3.0% 3.0% 3.0% 3.3%
Return on Capital (ttm) 2.2% 2.2% 1.8% 1.6% 1.6% 1.1% 0.9% 1.3% 1.2% 1.2% 1.7%
Gross Margin 49.0% 55.7% 60.4% 55.4% 55.2% 46.8% 50.1% 54.5% 48.0% 50.0% 51.8%
EBITDA Margin 22.9% 19.9% 27.0% 21.2% 23.0% 23.5% 25.9% 36.4% 26.1% 28.3% 30.7%
Operating Margin 13.5% 8.8% 18.1% 10.6% 13.1% 12.5% 11.9% 24.9% 13.5% 16.0% 17.7%
Pretax Margin 10.7% 5.5% 15.7% 8.0% 10.3% 9.3% 8.5% 22.3% 9.9% 12.9% 13.9%
Net Margin 7.8% 6.2% 11.9% 6.5% 8.3% 4.6% 7.0% 17.0% 8.0% 9.4% 10.5%
Dividends Per Common Share $0.425 $0.425 $0.425 $0.425 $1.70 $0.45 $0.45 $0.45 $0.45 $1.80 $1.89
Dividend Payout Ratio (ttm) 54.1% 55.0% 59.7% 61.5% 61.5% 67.0% 68.3% 64.7% 64.7% 64.7% 60.6%
Dividend Growth Rate 7.6% 5.9% 5.0%
D.A. Davidson & Co.

10
Hawaiian Electric Industries - Historical and Projected Operating Results

Source: D.A. Davidson & Co. estimates and company reports
$ in thousands -- Fiscal year ends 12/31 2010 1Q11 2Q11 3Q11 4Q11 2011 1Q12 2Q12E 3Q12E 4Q12E 2012E 2013E
Revenues:
Electric Utility $2,382,366 $645,335 $728,738 $820,254 $784,363 $2,978,690 $749,610 $786,133 $815,905 $795,834 $3,147,482 $3,174,009
Bank 282,693 65,313 66,318 66,100 66,676 264,407 65,279 64,454 64,732 65,011 259,449 272,335
Other (77) (15) (737) 1 (11) (762) (2) (5) (5) (5) (17) (25)
Total Revenues $2,664,982 $710,633 $794,319 $886,355 $851,028 $3,242,335 $814,887 $850,582 $880,632 $860,841 $3,406,915 $3,446,319
Operating Expenses:
Electric Utility $2,203,978 $600,127 $686,220 $745,298 $731,911 $2,763,556 $692,356 $723,973 $747,775 $738,413 $2,902,517 $2,902,224
Bank 190,105 43,559 42,498 42,931 43,818 172,806 42,340 42,734 43,183 43,333 171,039 177,866
Other 14,688 3,572 1,940 3,636 7,129 16,277 4,348 5,000 5,000 5,000 19,348 18,500
Total Expenses $2,408,771 $647,258 $730,658 $791,865 $782,858 $2,952,639 $739,044 $771,707 $795,958 $786,747 $3,092,904 $3,098,590
Operating Income:
Electric Utility $178,388 $45,208 $42,518 $74,956 $52,452 $215,134 $57,254 $62,160 $68,130 $57,421 $244,965 $271,785
Bank 92,588 21,754 23,820 23,169 22,858 91,601 22,939 21,720 21,549 21,678 88,411 94,469
Other (14,765) (3,587) (2,677) (3,635) (7,140) (17,039)(4,350) (5,005) (5,005) (5,005) (19,365) (18,525)
Total Operating Income $256,211 $63,375 $63,661 $94,490 $68,170 $289,696 $75,843 $78,875 $84,674 $74,094 $314,011 $347,729
Non-bank interest expense (81,538) (20,140) (24,177) (19,949) (17,840) (82,106) (18,539) (18,639) (18,739) (18,839) (74,756) (85,000)
AFUDC - Debt 2,558 520 553 658 767 2,498 870 900 900 900 3,570 2,900
AFUDC - Equity 6,016 1,244 1,317 1,570 1,833 5,964 1,940 2,000 2,000 2,000 7,940 7,500
Pre-Tax Income $183,247 $44,999 $41,354 $76,769 $52,930 $216,052 $60,114 $63,136 $68,835 $58,155 $250,765 $273,129
Income Taxes 67,822 16,064 13,742 27,894 18,232 75,932 21,298 22,350 24,368 20,587 88,603 96,688
Effective Tax Rate 37.0% 35.7% 33.2% 36.3%35.4% 35.1% 35.4% 35.4% 35.4% 35.4% 35.3% 35.4%
Income from Continuing Operations $115,425 $28,935 $27,612 $48,875 $34,698 $140,120 $38,816 $40,786 $44,468 $37,568 $162,162 $176,441
Noncontrollin interest and referred stock 1,890 473 473 471 473 1,890 473 473 471 473 1,890 1,890
Net income for common stock $113,535 $28,462 $27,139 $48,404 $34,225 $138,230 $38,343 $40,313 $43,997 $37,095 $160,272 $174,551
Applicable Shares 93,693 95,182 95,555 95,873 96,199 95,820 96,561 97,011 97,461 97,911 97,236 99,636
Diluted EPS - GAAP $1.21 $0.30 $0.28 $0.50 $0.36 $1.44 $0.40 $0.42 $0.45 $0.38 $1.65 $1.75
Segment Net Income for Common Stock
Electric Utility $76,589 $19,189 $17,024 $37,959 $25,814 $99,986 $27,300 $29,885 $33,498 $26,836 $117,519 $131,920
Bank 58,456 13,851 15,195 15,457 15,340 59,843 15,904 14,009 13,899 13,982 57,768 60,932
Other (21,510) (4,578) (5,080) (5,012) (6,929) (21,599)(4,861) (3,581) (3,400) (3,723) (15,014) (18,301)
Unallocated Parent Company
Total Net Income for Common (Cont. Ops.)$113,535 $28,462 $27,139 $48,404 $34,225 $138,230 $38,343 $40,313 $43,997 $37,095 $160,272 $174,551
EPS By Segment
Electric Utility $0.82 $0.20 $0.18 $0.40 $0.27 $1.04 $0.28 $0.31 $0.34 $0.27 $1.21 $1.32
Bank 0.62 0.15 0.16 0.16 0.16 0.62 0.16 0.14 0.14 0.14 0.59 0.61
Other (0.23) (0.05) (0.05) (0.05) (0.07) (0.23) (0.05) (0.04) (0.03) (0.04) (0.15) (0.18)
Diluted EPS - GAAP $1.21 $0.30 $0.28 $0.50 $0.36 $1.44 $0.40 $0.42 $0.45 $0.38 $1.65 $1.75
D.A. Davidson & Co.

11
IDACORP, Inc. - Historical and Projected Operating Results

Source: D.A. Davidson & Co. estimates and company reports
$ millions -- Fiscal year ends 12/31 2010 1Q'11 2Q'11 3Q'11 4Q'11 2011 1Q'12 2Q'12E 3Q'12E 4Q'12E 2012E 2013E
Operating Revenues:
Electric Utility $1,033.1 $251.1 $233.9 $308.0 $229.7 $1,022.7 $240.5 $239.6 $340.7 $243.7 $1,064.5 $1,125.8
Diversified Operations 3.0 0.4 1.1 1.6 1.0 4.0 0.7 1.0 1.0 1.0 3.7 4.0
Total Revenues $1,036.0 $251.5 $235.0 $309.6 $230.6 $1,026.8 $241.1 $240.6 $341.7 $244.7 $1,068.2 $1,129.8
Operating Expenses:
Power Supply Expenses $354.7 $86.3 $71.6 $97.1 $78.3 $333.4 $76.0 $67.1 $78.7 $69.5 $291.3 $323.0
Other Operations And Maintenance 293.9 70.7 85.5 84.6 97.9 338.6 78.5 85.0 93.7 79.2 336.5 332.1
Energy Efficiency Programs 44.2 6.7 5.8 18.5 6.7 37.7 4.5 5.0 18.0 6.0 33.5 36.0
Depreciation 115.9 29.5 29.7 30.1 30.5 119.8 30.5 30.9 33.0 33.3 127.7 135.0
Taxes Other Than Income Taxes 24.0 7.2 7.2 7.3 7.2 28.9 8.1 5.3 5.8 5.4 24.5 24.8
Diversified Operations 4.6 1.1 0.9 0.6 1.6 4.1 1.1 1.2 1.2 1.2 4.7 4.8
Total Operating Expenses $837.4 $201.4 $200.7 $238.2 $222.2 $862.5 $198.8 $194.5 $230.4 $194.5 $818.3 $855.6
EBITD $335.7 $86.2 $69.1 $108.7 $46.1 $310.1 $80.8 $84.5 $151.8 $91.0 $408.1 $450.2
Operating Income $198.7 $50.1 $34.3 $71.4 $8.5 $164.2 $42.3 $46.1 $111.3 $50.2 $249.9 $274.2
Other Income 15.2 4.5 5.0 6.0 5.6 21.2 6.6 5.0 5.0 5.0 21.6 21.0
Earnings Of Uncons. Eq-Method Inv. 3.0 (1.3) (4.4) 2.1 4.5 0.8 1.4 1.0 1.0 1.0 4.4 (3.0)
Interest On Long-Term Debt 80.5 20.8 19.5 19.5 19.5 79.3 19.5 20.9 21.1 21.3 82.8 85.0
Other Interest (5.4) (1.9) (1.9) (2.1) (2.0) (7.8) (2.3) (2.1) (2.1) (2.1) (8.6) (8.0)
Income Before Income Taxes: $141.7 $34.4 $17.3 $62.0 $1.0 $114.7 $33.2 $33.3 $98.3 $37.0 $201.7 $215.2
Income Taxes: (0.7) 4.9 (3.7) (45.4) (8.0) (52.1) 8.3 7.8 23.1 8.7 47.9 53.8
Effective Tax Rate -0.5% 14.2% -21.1% -73.1% -803.7% -45.4% 25.1% 23.5% 23.5% 23.5% 23.8% 25.0%
Income From Continuing Operations $142.5 $29.5 $21.0 $107.4 $9.0 $166.9 $24.8 $25.4 $75.2 $28.3 $153.8 $161.4
Noncontrolling Interest 0.3 0.3 (0.1) (0.3) 0.0 (0.2) 0.1 0.1 0.1 0.1 0.3 0.3
Net Income Available For Common $142.8 $29.7 $20.9 $107.1 $9.0 $166.7 $24.9 $25.5 $75.3 $28.4 $154.1 $161.7
Average Diluted Shares Outstanding 48.3 49.4 49.5 49.6 49.7 49.6 49.9 50.0 50.1 50.2 50.1 50.6
Diluted EPS $2.95 $0.60 $0.42 $2.16 $0.18 $3.36 $0.50 $0.51 $1.50 $0.57 $3.08 $3.20
D.A. Davidson & Co.

12
ITC Holdings Corporation - Historical and Projected Operating Results

Source: D.A. Davidson & Co. estimates and company reports
$ in millions -- Fiscal year ends 12/31 1Q'11 2Q'11 3Q'11 4Q'11 2011 1Q'12 2Q'12e 3Q'12e 4Q'12e 2012e 2013e
Operating Revenues $179.4 $185.1 $191.3 $201.6 $757.4 $196.7 $209.8 $220.9 $232.3 $859.6 $1,000.1
Operating Expenses:
Operation & Maintenance 26.3 28.8 37.4 36.8 129.3 28.7 33.5 41.5 45.7 149.5 153.8
General & Administrative 16.6 19.3 19.0 27.9 82.8 23.0 21.2 21.5 25.5 91.2 107.0
Depreciation & Amortization 23.1 23.4 23.9 24.6 95.0 25.0 26.2 27.0 27.8 106.0 116.6
Taxes Other Than Income Taxes 13.6 13.6 12.5 13.8 53.4 14.3 14.1 13.8 14.5 56.7 68.5
Other, Net (0.1) (0.2) (0.3) (0.2) (0.8) (0.2) (0.2)
Operating Expenses $79.4 $84.9 $92.5 $102.9 $359.6 $90.8 $95.0 $103.9 $113.5 $403.3 $445.8
EBITD $126.1 $126.6 $127.8 $127.8 $508.4 $136.0 $147.2 $150.4 $152.8 $586.4 $697.7
Operating Income $100.0 $100.2 $98.8 $98.7 $397.8 $105.9 $114.7 $117.0 $118.7 $456.4 $554.2
Interest Expense 36.3 36.5 37.2 36.9 146.9 37.9 39.5 40.6 41.7 159.7 179.8
AFUDC (3.5) (4.1) (4.5) (4.6) (16.7) (5.6) (6.5) (6.5) (6.5) (25.3) (27.9)
Other Income (0.3) (0.5) (1.4) (0.7) (2.9) (0.3) (0.5) (0.5) (0.5) (1.8) (2.0)
Other Expense 0.7 1.6 0.8 0.9 4.0 0.8 0.8 0.8 0.8 3.1 3.0
Pretax Income $66.8 $66.7 $66.7 $66.2 $266.4 $73.1 $81.5 $82.7 $83.3 $320.7 $401.4
Income Tax Provision 24.8 23.8 22.7 23.6 94.7 27.0 29.9 30.4 30.6 117.9 147.3
Effective Tax Rate 37.1% 35.6% 34.0% 35.6% 35.6% 37.0% 36.7% 36.7% 36.7% 36.8% 36.7%
Net Income $42.0 $43.0 $44.0 $42.7 $171.7 $46.1 $51.6 $52.4 $52.7 $202.8 $254.1
Average Diluted Shares Outstanding 50.7 51.0 51.2 51.2 51.1 51.4 51.5 51.6 51.7 51.5 51.9
Diluted EPS - GAAP $0.81 $0.83 $0.85 $0.82 $3.31 $0.88 $1.00 $1.02 $1.02 $3.93 $4.90
Non-GAAP Adjustments to EPS:
Merger-Related Expenses $0.13 $0.13 $0.05 $0.05
Adoption of Michigan CIT ($0.09) ($0.09)
Diluted EPS $0.81 $0.83 $0.85 $0.86 $3.35 $0.93 $1.00 $1.02 $1.02 $3.98 $4.90
D.A. Davidson & Co.

13
MDU Resources Group, Inc. - Historical and Projected Operating Results

Results are adjusted to exclude the impact of nonrecurring items and discontinued operations.
Source: D.A. Davidson & Co. estimates and company reports
$ in millions -- Fiscal year ends 12/31 2010* 1Q'11* 2Q'11 3Q'11 4Q'11 2011 1Q'12 2Q'12e 3Q'12e 4Q'12e 2012e 2013e
Operating Revenues:
Electric $211.5 $57.8 $50.0 $61.9 $55.7 $225.5 $58.0 $52.1 $62.2 $59.5 $231.7 $242.7
Natural Gas Distribution 892.7 370.4 164.6 92.4 280.0 907.4 307.9 164.6 92.4 286.0 850.9 868.0
Construction Services 789.1 203.4 198.1 226.2 226.7 854.4 218.2 200.1 230.7 229.0 877.9 823.1
Pipeline And Energy Services 329.8 74.0 72.4 69.1 62.9 278.3 49.6 56.8 55.1 62.4 223.9 255.5
Construction Materials And Contracting 1,445.1 143.5 375.6 619.1 371.7 1,510.0 149.4 348.7 576.4 345.3 1,419.9 1,444.7
Natural Gas And Oil Production 434.4 104.0 112.8 120.8 116.1 453.6 99.8 110.6 129.3 127.1 466.8 512.4
Other 7.7 2.5 2.8 2.6 3.5 11.4 2.1 2.5 2.5 2.5 9.6 10.0
Less Intercompany Transactions (200.7) (53.8) (45.6) (39.9) (50.9) (190.2) (32.2) (45.0) (40.0) (50.0) (167.2) (202.0)
Total Operating Revenues $3,909.7 $901.8 $930.8 $1,152.2 $1,065.7 $4,050.5 $852.8 $890.3 $1,108.7 $1,061.7 $3,913.6 $3,954.5
Operating Expenses:
Fuel And Purchased Power $63.1 $17.0 $14.5 $17.4 $15.7 $64.5 $18.4 $12.9 $15.5 $16.4 $63.3 $66.4
Purchased Natural Gas Sold 567.8 244.7 101.5 50.1 175.9 572.2 185.4 81.0 32.5 162.8 459.3 461.9
Operation And Maintenance - Regulated 291.5 68.0 70.0 69.5 68.4 275.9 68.4 71.1 70.7 70.3 280.7 286.4
Operation And Maintenance - Nonregulated 2,084.4 359.8 536.6 767.5 551.3 2,215.3 376.1 519.0 715.6 541.0 2,152.5 2,115.9
Depreciation, Depletion And Amortization 328.8 84.7 83.3 88.9 86.5 343.4 85.4 86.7 90.4 88.9 351.5 346.9
Taxes, Other Than Income Taxes 163.4 49.7 42.5 39.4 41.3 172.9 48.0 42.1 41.6 42.9 174.6 176.1
Total Operating Expenses $3,499.0 $823.7 $848.5 $1,032.8 $939.2 $3,644.1 $781.8 $812.8 $966.4 $922.3 $3,481.8 $3,453.5
EBITD $766.2 $162.7 $165.6 $208.3 $213.1 $749.8 $156.4 $164.3 $232.8 $228.3 $783.2 $847.8
Operating Income $437.3 $78.1 $82.3 $119.4 $126.5 $406.4 $71.1 $77.5 $142.4 $139.4 $431.7 $500.9
Other Income-Net 16.1 2.4 2.9 2.1 3.9 11.2 2.4 2.0 2.0 2.0 8.4 8.8
Interest Expense-Net 83.0 22.0 20.0 19.6 19.7 81.4 19.4 22.0 22.0 22.0 85.4 90.2
Income Before Income Taxes $370.5 $58.4 $65.1 $101.9 $110.7 $336.2 $54.0 $57.5 $122.4 $119.4 $354.6 $419.5
Income Taxes 123.7 15.9 19.9 37.8 36.6 110.3 18.1 19.0 43.7 41.8 122.5 149.5
Effective Tax Rate 33.4% 27.2% 30.5% 37.1% 33.1% 32.8% 33.5% 33.0% 35.7% 35.0% 34.6% 35.6%
Net Income from Continuing Operations $246.8 $42.5 $45.2 $64.1 $74.0 $226.0 $35.9 $38.5 $78.7 $77.6 $230.7 $270.0
Dividends On Preferred Stocks 0.7 0.2 0.2 0.2 0.2 0.7 0.2 0.2 0.2 0.2 0.7 0.7
Continuing Earnings for Common $246.1 $42.4 $45.1 $63.9 $73.9 $225.3 $35.7 $38.4 $78.5 $77.5 $230.0 $269.3
Average Diluted Shares 188.2 188.8 189.0 189.5 190.0 189.3 189.2 189.7 190.2 190.7 189.9 191.9
Diluted EPS - GAAP $1.27 $0.23 $0.24 $0.34 $0.32 $1.12 $0.19
Diluted EPS - Adjusted $1.30 $0.22 $0.24 $0.34 $0.39 $1.19 $0.19 $0.20 $0.41 $0.41 $1.21 $1.40
Adjusted EPS By Segment:
Electric $0.15 $0.05 $0.03 $0.04 $0.04 $0.15 $0.04 $0.03 $0.05 $0.04 $0.15 $0.17
Natural Gas Distribution 0.20 0.15 0.01 (0.06) 0.11 0.20 0.13 0.01 (0.05) 0.11 0.20 0.21
Construction Services 0.10 0.02 0.03 0.03 0.03 0.11 0.06 0.04 0.04 0.04 0.18 0.15
Pipeline And Energy Services 0.21 0.04 0.03 0.03 0.03 0.12 0.01 0.02 0.02 0.03 0.08 0.11
Construction Materials And Contracting 0.16 (0.11) 0.03 0.17 0.05 0.14 (0.13) 0.03 0.21 0.05 0.16 0.24
Oil And Natural Gas Production 0.45 0.09 0.11 0.12 0.11 0.42 0.07 0.10 0.14 0.14 0.45 0.59
Other & Eliminations 0.04 (0.00) 0.01 0.00 0.02 0.03 0.00 (0.02) 0.01 (0.01) (0.01) (0.07)
Total EPS - Adjusted $1.30 $0.22 $0.24 $0.34 $0.39 $1.19 $0.19 $0.20 $0.41 $0.41 $1.21 $1.40
D.A. Davidson & Co.

14
NorthWestern Corp. - Historical and Projected Operating Results

Source: D.A. Davidson & Co. estimates and company reports
($ in millions -- Fiscal year ends 12/31)1Q'11 2Q'11 3Q'11 4Q'11 2011 1Q'12 2Q12e 3Q12e 4Q12e 2012e 2013e
Operating Revenues:
Electric - Regulated $208.6 $186.8 $206.6 $195.5 $797.6 $207.1 $195.6 $215.6 $209.1 $827.3 $858.2
Natural Gas - Regulated 129.2 64.7 37.1 87.4 318.3 101.7 65.5 38.2 97.7 303.1 312.4
Other 0.4 0.3 0.4 0.3 1.4 0.3 0.3 0.3 0.3 1.2 1.2
Total Operating Revenues $338.3 $251.8 $244.0 $283.2 $1,117.3 $309.1 $261.4 $254.0 $307.1 $1,131.6 $1,171.8
Cost Of Sales 162.1 110.4 98.0 124.0 494.6 138.4 114.9 101.2 134.5 489.0 484.5
Gross Margin $176.2 $141.4 $146.0 $159.2 $622.8 $170.7 $146.5 $152.8 $172.6 $642.5 $687.3
Operating, General And Administrative 67.4 69.5 66.3 63.9 267.2 65.6 70.5 67.1 67.8 271.0 277.9
Property And Other Taxes 25.4 20.6 22.6 20.6 89.1 23.7 22.6 23.4 23.3 93.0 102.2
Depreciation 25.3 25.1 25.2 25.4 100.9 26.4 25.8 25.8 25.9 103.9 114.1
Other Operating Expenses $118.1 $115.2 $114.1 $109.8 $457.2 $115.7 $118.9 $116.3 $117.0 $467.9 $494.2
EBITD $83.4 $51.3 $57.1 $74.7 $266.5 $81.5 $53.4 $62.3 $81.5 $278.6 $307.1
Operating Income $58.1 $26.2 $31.9 $49.3 $165.5 $55.0 $27.6 $36.5 $55.6 $174.6 $193.1
Interest Expense (17.1) (16.9) (16.7) (16.1) (66.9) (16.0) (16.3) (16.7) (17.2) (66.2) (73.5)
Investment & Other Income 0.8 1.1 0.3 1.7 3.9 1.0 1.3 1.3 1.3 4.8 4.2
Pretax Income $41.8 $10.5 $15.5 $34.9 $102.6 $40.1 $12.6 $21.1 $39.6 $113.4 $123.8
Income Tax Benefit (Expense)(9.2) 0.5 (0.6) (0.8) (10.1) (8.0) (2.4) (4.0) (7.5) (21.9) (24.8)
Effective Tax Rate 22.0% -4.9% 4.1% 2.2% 9.8% 20.0% 19.0% 19.0% 19.0% 19.4% 20.0%
Income From Continuing Operations $32.6 $11.0 $14.9 $34.1 $92.6 $32.0 $10.2 $17.1 $32.1 $91.4 $99.0
Average Diluted Shares Outstanding 36.5 36.5 36.5 36.3 36.5 36.5 36.6 37.0 37.5 36.9 39.1
Diluted EPS - GAAP $0.89 $0.30 $0.41 $0.93 $2.53 $0.88 $0.28 $0.46 $0.86 $2.48 $2.53
Non-GAAP Adjustments to EPS:
High Hydro/Lower Transmission Revenue ($0.05) ($0.05)
Montana NOL Valuation Allowance $0.07 $0.07
Insurance Reserves/Settlements ($0.05) ($0.05)
Income Tax - Return to Accrual $0.10 $0.10
Reversal of DGGS Deferral $0.05 $0.05
Diluted EPS - Adjusted $0.89 $0.28 $0.46 $0.83 $2.46 $0.83 $0.28 $0.46 $0.86 $2.43 $2.53
D.A. Davidson & Co.

15
Northwest Natural Gas Co. - Historical and Projected Operating Results

Source: D.A. Davidson & Co. estimates and company reports
($ in millions -- Fiscal year ends 12/31)2010 1Q'11 2Q'11 3Q'11 4Q'11 2011 1Q'12 2Q'12e 3Q'12e 4Q'12e 2012e 2013e
Operating Revenues:
Gross Utility Revenues $790.6 $317.7 $161.3 $86.6 $264.0 $829.6 $310.8 $152.1 $96.9 $253.0 $812.7 $817.0
Less: Utility Cost of Sales 424.5 180.6 90.1 43.1 144.7 458.6 169.8 78.2 44.0 127.6 419.6 410.2
Less: Utility Revenue Taxes 20.0 8.0 3.8 2.4 6.5 20.7 7.9 4.2 3.0 7.1 22.1 23.0
Net Utility Revenues $346.1 $129.1 $67.4 $41.1 $112.7 $350.3 $133.2 $69.7 $49.8 $118.3 $371.0 $383.7
Gas Storage Operating Revenues 21.5 5.3 7.3 6.7 7.2 26.6 6.7 6.7 6.7 7.0 27.1 27.3
Total Net Revenues $367.6 $134.5 $74.6 $47.8 $119.9 $376.8 $139.9 $76.4 $56.5 $125.3 $398.1 $411.0
Operations & Maintenance 121.0 31.2 30.4 28.4 35.4 125.3 34.4 34.0 34.1 36.5 138.9 142.5
General Taxes 23.9 8.2 6.7 7.5 6.9 29.3 8.8 9.0 9.0 9.5 36.2 38.3
Depreciation & Amortization 65.1 17.3 17.5 17.4 17.7 70.0 18.0 17.8 17.8 18.8 72.4 75.3
Other Operating Expenses $210.0 $56.6 $54.6 $53.3 $60.0 $224.6 $61.2 $60.8 $60.9 $64.8 $247.6 $256.1
EBITD $222.7 $95.1 $37.6 $11.9 $77.6 $222.2 $96.6 $33.5 $13.5 $79.3 $223.0 $230.2
Operating Income $157.6 $77.8 $20.1 ($5.6) $59.9 $152.2 $78.7 $15.7 ($4.3) $60.5 $150.6 $154.9
Net Other Income & Expense 7.1 1.2 1.1 1.8 0.4 4.5 1.0 1.2 1.2 1.2 4.6 4.8
Net Interest Charges 42.6 10.4 10.3 10.2 11.1 42.1 11.2 11.0 10.9 10.8 43.9 39.7
Pretax Income $122.1 $68.6 $10.9 ($14.0) $49.2 $114.6 $68.5 $5.9 ($14.0) $50.9 $111.3 $120.0
Income Tax Expense 49.5 27.9 4.3 (5.7) 19.9 43.4 27.9 2.3 (5.8) 20.9 45.3 48.7
Effective Tax Rate 40.5% 40.6% 39.6% 40.7%40.5% 37.8% 40.7% 39.5% 41.0% 41.0% 40.7% 40.6%
Net Income $72.7 $40.7 $6.6 ($8.3) $29.2 $68.3 $40.6 $3.6 ($8.3) $30.0 $65.9 $71.3
Average Shares Outstanding - Diluted 26.7 26.7 26.7 26.7 26.8 26.7 26.9 26.8 26.8 26.8 26.8 26.9
Diluted EPS - GAAP $2.73 $1.53 $0.08 ($0.31) $1.09 $2.39 $1.51 $0.13 ($0.31) $1.12 $2.46 $2.65
Non-GAAP Adjustments to EPS:
Charge for Repeal of SB 408 ($0.17) ($0.17)
Diluted EPS - Adjusted $2.59 $1.53 $0.25 ($0.31)$1.09 $2.56 $1.51 $0.13 ($0.31) $1.12 $2.46 $2.65
Adjusted EPS by Segment:
Core Utility $2.35 $1.50 $0.21 ($0.36) $1.08 $2.43 $1.48 $0.09 ($0.35) $1.08 $2.31 $2.48
Gas Storage 0.23 0.03 0.05 0.04 0.03 0.15 0.03 0.04 0.04 0.04 0.15 0.18
Other 0.01 (0.00) (0.01) 0.00 (0.02)(0.03) 0.00 0.00 0.00 0.00 0.00 0.00
D.A. Davidson & Co.

16
Questar Corp. - Historical and Projected Operating Results

Source: D.A. Davidson & Co. estimates and company reports
$ in millions -- Fiscal year ends 12/31 1Q'11 2Q'11 3Q'11 4Q'11 2011 1Q'12 2Q'12e 3Q'12e 4Q'12e 2012e 2013e
Revenues:
Questar Gas $413.9 $164.0 $89.8 $297.8 $965.5 $366.0 $157.6 $85.8 $314.9 $924.3 $962.7
Questar Pipeline 48.3 50.5 50.0 48.6 197.4 50.5 49.6 51.8 52.1 204.0 201.7
Wexpro 7.8 8.4 6.9 8.4 31.5 9.2 8.9 8.9 9.4 36.4 37.9
Total Revenues $470.0 $222.9 $146.7 $354.8 $1,194.4 $425.7 $216.1 $146.6 $376.3 $1,164.7 $1,202.4
Cost of Sales 209.9 31.2 (30.0) 110.4 321.5 152.7 18.9 (36.6) 120.2 255.2 264.8
Gross Margin $260.1 $191.7 $176.7 $244.4 $872.9 $273.0 $197.2 $183.2 $256.1 $909.5 $937.5
Operating Expenses:
Operating & Maintenance 51.4 39.8 35.4 49.3 175.9 56.7 43.9 35.7 53.5 189.8 193.7
General & Administrative 33.0 26.2 24.1 34.6 117.9 29.1 27.4 27.4 34.3 118.3 124.7
Production & Other Taxes 13.6 13.1 13.5 12.3 52.5 14.3 13.3 13.4 12.6 53.6 55.0
Depreciation, Depletion & Amortization 39.4 38.9 40.1 41.5 159.9 44.2 42.0 42.8 44.0 173.0 175.3
Total Operating Expenses $137.4 $118.0 $113.1 $137.7 $506.2 $144.3 $126.6 $119.3 $144.4 $534.7 $548.7
EBITD $165.9 $115.9 $108.4 $150.6 $540.8 $175.2 $116.0 $110.0 $159.0 $560.2 $577.6
Operating Income $122.8 $73.7 $63.8 $106.6 $366.9 $130.9 $70.6 $63.8 $111.7 $377.0 $388.8
Net Gain from Asset Sales 0.1 0.2 (0.1) 0.2 2.2 2.2
Interest & Other Income 2.9 2.3 3.7 1.5 10.4 1.4 2.5 2.5 2.5 8.9 10.0
Income from Unconsolidated Affiliates 0.9 1.0 1.0 0.9 3.8 0.9 0.9 0.9 0.9 3.5 3.4
Interest Expense (16.0) (14.8) (13.3) (12.7) (56.8) (14.7) (13.0) (13.6) (13.6) (55.0) (53.4)
Income Before Income Taxes $110.6 $62.2 $55.2 $96.3 $324.3 $118.5 $60.9 $53.6 $101.4 $334.4 $348.9
Income Taxes (40.7) (21.9) (19.1) (34.7) (116.4) (43.3) (21.4) (19.1) (36.9) (120.6) (126.3)
Effective Tax Rate 36.8% 35.2% 34.6% 36.0% 35.9% 36.5% 35.1% 35.6% 36.4% 36.1% 36.2%
Net Income Attributable to Questa $69.9 $40.3 $36.1 $61.6 $207.9 $75.2 $39.6 $34.5 $64.5 $213.8 $222.5
Average Diluted Shares Outstanding 178.5 178.8 178.9 179.0 178.8 179.3 177.3 176.7 176.1 177.4 176.1
Diluted EPS $0.39 $0.22 $0.20 $0.34 $1.16 $0.42 $0.22 $0.20 $0.37 $1.20 $1.26
Segment EPS:
Wexpro $0.12 $0.13 $0.14 $0.13 $0.53 $0.14 $0.14 $0.14 $0.15 $0.56 $0.59
Questar Pipeline 0.09 0.09 0.11 0.10 0.38 0.09 0.10 0.10 0.10 0.39 0.39
Questar Gas 0.19 0.00 (0.04) 0.11 0.26 0.19 (0.02) (0.04) 0.12 0.26 0.29
Corporate (0.01) (0.00) (0.00) 0.00 (0.01) (0.00) 0.01 (0.00) (0.00) (0.00) (0.01)
Total Diluted EPS $0.39 $0.22 $0.20 $0.34 $1.16 $0.42 $0.22 $0.20 $0.37 $1.20 $1.26
Dividends per Common Share $0.153 $0.153 $0.153 $0.163 $0.620 $0.163 $0.163 $0.163 $0.171 $0.658 $0.715
Dividend Payout Ratio (ttm) 50.7% 51.6% 50.9% 53.3% 53.3% 52.9% 53.8% 55.0% 54.6% 54.6% 56.6%
Dividend Growth Rate 14.8% 6.1% 10.0%
Ratio Analysis:
Return on Equity (ttm) 12.5% 19.6% 19.8% 19.4% 19.4% 19.7% 19.8% 19.9% 20.2% 20.2% 19.9%
Return on Assets (ttm) 4.5% 6.3% 6.4% 6.2% 6.2% 6.3% 6.2% 6.0% 5.9% 5.9% 5.9%
Return on Capital (ttm) 3.6% 4.5% 4.6% 4.3% 4.3% 4.5% 4.4% 4.2% 4.2% 4.2% 4.1%
Gross Margin 55.3% 86.0% 120.4% 68.9% 73.1% 64.1% 91.2% 125.0% 68.1% 78.1% 78.0%
EBITDA Margin 35.3% 52.0% 73.9% 42.4% 42.4% 41.2% 53.7% 75.0% 42.2% 42.2% 41.9%
Operating Margin 26.1% 33.1% 43.5% 30.0% 30.0% 30.7% 32.7% 43.6% 29.7% 29.7% 29.4%
PreTax Margin 23.5% 27.9% 37.6% 27.1% 27.1% 27.8% 28.2% 36.5% 26.9% 26.9% 26.8%
Net Margin 14.9% 18.1% 24.6% 17.4% 17.4% 17.7% 18.3% 23.5% 17.1% 17.1% 17.3%
D.A. Davidson & Co.

17
UNS Energy Corporation - Historical and Projected Operating Results

Source: D.A. Davidson & Co. estimates and company reports
$ in millions -- Fiscal year ends 12/31 2010R 1Q'11R 2Q'11 3Q'11 4Q'11 2011 1Q'12 2Q'12e 3Q'12e 4Q'12e 2012e 2013e
Operating Revenues $1,454.0 $344.8 $369.7 $450.9 $344.1 $1,509.5 $318.9 $373.2 $433.7 $316.9 $1,442.6 $1,522.5
Fuel & Purchased Energy Costs 584.3 146.6 155.5 182.8 149.5 634.3 134.3 158.5 175.3 121.8 589.9 606.0
Gross Margin $869.7 $198.2 $214.1 $268.2 $194.7 $875.2 $184.6 $214.6 $258.4 $195.1 $852.7 $916.5
Other Operation & Maintenance 370.0 101.0 90.1 90.8 97.4 379.2 94.3 89.9 92.4 101.5 378.1 392.7
Depreciation & Amortization 156.3 40.2 40.6 41.5 42.7 164.8 43.6 44.1 44.6 45.2 177.5 189.1
Taxes Other Than Income Taxes 46.2 12.1 12.2 12.2 12.9 49.5 12.2 12.2 12.2 12.2 48.7 50.8
Non-Fuel Operating Expenses $572.6 $153.4 $142.9 $144.5 $153.0 $593.5 $150.2 $146.1 $149.2 $158.8 $604.3 $632.6
EBITD $457.0 $88.2 $114.5 $167.4 $84.0 $454.1 $80.9 $114.5 $156.5 $84.8 $436.8 $493.3
Operating Income $297.1 $44.8 $71.3 $123.7 $41.7 $281.7 $34.4 $68.5 $109.2 $36.2 $248.4 $283.9
Other Income (Deductions) 3.6 3.2 2.7 2.2 (0.4) 7.6 2.9 2.0 2.7 3.4 11.0 20.3
Interest Expense, Net 110.8 27.1 28.0 28.1 29.1 112.4 27.6 28.9 28.5 29.1 114.0 119.9
Pretax Income $189.9 $20.9 $45.9 $97.8 $12.2 $176.9 $9.7 $41.6 $83.4 $10.6 $145.3 $184.2
Income Tax Expense 76.9 7.5 17.3 38.1 4.0 67.0 3.2 16.5 33.1 4.2 57.1 73.1
Effective Tax Rate 40.5% 35.7% 37.7% 39.0%33.1% 37.8% 33.1% 39.7% 39.7% 39.7% 39.3% 39.7%
Net Income $113.0 $13.4 $28.6 $59.6 $8.1 $110.0 $6.5 $25.1 $50.3 $6.4 $88.3 $111.1
Average Diluted Shares 41.0 41.4 41.6 41.8 41.7 41.6 38.3 41.8 41.8 41.8 40.9 41.9
Diluted EPS - GAAP $2.86 $0.35 $0.71 $1.46 $0.20 $2.75 $0.17 $0.60 $1.20 $0.15 $2.16 $2.65
Nonrecurring Items:
Tax Adjustment $0.08 $0.08
Gain from Settlement $0.11 $0.11
Diluted EPS - Adjusted $3.08 $0.27 $0.71 $1.35 $0.20 $2.56 $0.17 $0.60 $1.20 $0.15 $2.16 $2.65
D.A. Davidson & Co.

18
Wisconsin Energy Corp. - Historical and Projected Operating Results

Source: D.A. Davidson & Co. estimates and company reports
$ in millions -- Fiscal year ends 12/31 2010R 1Q'11 2Q'11 3Q'11 4Q'11 2011 1Q'12 2Q'12e 3Q'12e 4Q'12e 2012e 2013e
Operating Revenues $4,202.5 $1,328.7 $991.7 $1,052.8 $1,113.2 $4,486.4 $1,191.2 $982.2 $1,087.4 $1,090.2 $4,351.1 $4,775.5
Fuel and Purchased Power 1,099.9 267.6 286.0 350.9 265.2 1,169.7 253.8 287.5 368.6 241.7 1,151.6 1,187.4
Cost of Gas Sold 751.5 342.4 121.8 69.2 195.3 728.7 237.5 106.9 61.6 182.2 588.2 624.8
Gross Margin $2,351.1 $718.7 $583.9 $632.7 $652.7 $2,588.0 $699.9 $587.9 $657.2 $666.4 $2,611.4 $2,963.2
Other Operation & Maintenance 1,327.5 313.5 298.9 296.9 347.5 1,256.8 286.3 270.1 273.0 295.1 1,124.4 1,376.1
Depreciation & Amortization 305.6 81.3 82.3 82.6 84.0 330.2 87.6 92.6 97.8 100.0 378.0 404.9
Property and Revenue Taxes 106.0 28.3 28.3 28.9 28.2 113.7 30.3 34.5 36.3 37.3 138.5 160.0
Amortization of Gain (198.4)0.0 0.0 0.0
Non-Fuel Operating Expenses $1,540.7 $423.1 $409.5 $408.4 $459.7 $1,700.7 $404.2 $397.1 $407.1 $432.4 $1,640.9 $1,941.0
EBITD $1,230.2 $407.8 $300.5 $335.9 $318.1 $1,362.3 $414.9 $304.8 $365.1 $351.0 $1,435.7 $1,498.9
Operating Income $810.4 $295.6 $174.4 $224.3 $193.0 $887.3 $295.7 $190.8 $250.0 $233.9 $970.5 $1,022.3
Equity in Earnings of Transmission Affiliate 60.1 15.5 15.2 15.7 16.1 62.5 15.6 15.7 15.9 15.7 62.9 66.2
Other Income, Net 40.2 12.5 14.4 16.2 19.6 62.7 16.0 5.8 1.3 1.3 24.4 5.6
Interest Expense, Net 206.4 63.4 57.4 56.8 58.2 235.8 58.9 59.4 61.4 61.8 241.5 252.2
Pretax Income $704.3 $260.2 $146.6 $199.4 $170.5 $776.7 $268.4 $152.9 $205.8 $189.1 $816.2 $841.9
Income Taxes 249.9 89.3 48.6 69.6 56.4 263.9 96.3 52.7 74.6 66.1 289.7 295.1
Effective Tax Rate 35.5% 34.3% 33.2% 34.9% 33.1% 34.0% 35.9% 34.4% 36.2% 34.9% 35.5% 35.1%
Income from Continuing Operations $454.4 $170.9 $98.0 $129.8 $114.1 $512.8 $172.1 $100.2 $131.2 $123.0 $526.6 $546.7
Discontinued Operations 2.1 11.5 1.9 13.4 0.0 0.0
Net Income $456.5 $170.9 $109.5 $129.8 $116.0 $526.2 $172.1 $100.2 $131.2 $123.0 $526.6 $546.7
Average Diluted Shares 236.8 236.6 236.6 234.9 233.6 235.4 233.2 233.1 232.4 231.7 232.6 230.0
Diluted EPS - GAAP $3.86 $0.72 $0.46 $0.55 $0.50 $2.24 $0.74 $0.43 $0.56 $0.53 $2.26 $2.38
Special Items:
Discontinued Operations $0.01 $0.05 $0.01 $0.06
Diluted EPS - Adjusted $3.85 $0.72 $0.41 $0.55 $0.49 $2.18 $0.74 $0.43 $0.56 $0.53 $2.26 $2.38
D.A. Davidson & Co.

19
Xcel Energy Corp. - Historical and Projected Operating Results

Source: D.A. Davidson & Co. estimates and company reports
$ in millions -- Fiscal year ends 12/31 2010* 1Q'11 2Q'11 3Q'11 4Q'11 2011 1Q'12 2Q'12e 3Q'12e 4Q'12e 2012e 2013e
Operating Revenues:
Electric $8,451.8 $2,030.0 $2,128.4 $2,619.4 $1,988.8 $8,766.6 $1,936.8 $2,186.2 $2,596.5 $2,060.5 $8,780.0 $9,010.1
Gas 1,782.6 765.3 291.5 194.9 560.1 1,811.9 621.0 289.5 192.4 557.8 1,660.8 1,732.8
Other 76.5 21.2 18.3 17.2 19.5 76.3 20.3 17.0 17.0 23.5 77.8 80.0
Total Operating Revenues $10,310.9 $2,816.5 $2,438.2 $2,831.6 $2,568.4 $10,654.8 $2,578.1 $2,492.8 $2,805.9 $2,641.8 $10,518.5 $10,822.8
Electric Fuel & Purchased Power 4,010.7 931.8 989.4 1,150.3 920.3 3,991.8 864.0 1,008.8 1,150.3 917.2 3,940.3 3,977.5
Cost of Gas Sold & Transported 1,162.9 543.4 163.1 87.1 370.4 1,163.9 417.9 162.2 86.2 367.8 1,034.1 1,069.4
Cost of Sales - Other 29.5 8.1 6.9 7.2 8.3 30.4 7.3 8.7 9.8 9.2 35.1 36.1
Gross Margin $5,107.8 $1,333.3 $1,278.9 $1,587.1 $1,269.5 $5,468.7 $1,288.8 $1,313.1 $1,559.6 $1,347.5 $5,509.0 $5,739.9
Other Operating & Maintenance Expenses 2,057.2 510.0 532.2 533.0 565.1 2,140.3 510.7 537.2 536.3 568.8 2,153.0 2,176.7
Conservation & DSM Program Expenses 239.8 75.3 65.5 71.3 69.3 281.4 63.7 62.3 70.1 66.0 262.2 270.6
Depreciation & Amortization 858.9 224.7 229.3 242.3 194.3 890.6 228.7 238.8 241.3 237.6 946.3 1,017.9
Taxes Other than Income Taxes 331.9 96.6 92.5 89.0 96.7 374.8 105.6 90.2 87.1 93.5 376.4 383.4
Total Operating Expenses $3,487.9 $906.6 $919.4 $935.6 $925.5 $3,687.1 $908.7 $928.4 $934.9 $966.0 $3,738.0 $3,848.6
EBITD $2,595.0 $683.5 $617.7 $917.3 $566.1 $2,784.6 $639.8 $659.7 $899.4 $653.8 $2,852.7 $3,050.8
Operating Income $1,620.0 $426.7 $359.4 $651.5 $344.0 $1,781.6 $380.2 $384.6 $624.7 $381.6 $1,771.0 $1,891.3
Other Income, Net 5.7 4.8 1.0 2.6 1.0 9.3 3.7 1.5 1.5 1.5 8.2 6.0
Equity Earnings of Unconsolidated Subsidiaries 29.9 7.7 7.7 7.4 7.7 30.5 7.2 7.8 7.6 7.9 30.4 31.8
AFUDC - Equity 56.2 13.2 13.6 11.8 12.5 51.2 13.5 18.2 15.9 16.7 64.2 72.7
Interest Charges 575.0 144.4 146.3 148.0 152.4 591.1 151.8 151.0 152.9 148.4 604.0 614.6
AFUDC - Debt (28.7) (7.4) (7.8) (6.3) (6.6) (28.2) (6.6) (8.7) (8.5) (8.6) (32.4) (31.1)
Income Before Income Taxes $1,165.4 $315.5 $243.2 $531.6 $219.4 $1,309.7 $259.3 $269.9 $505.3 $267.8 $1,302.3 $1,418.2
Income Tax Expense 411.9 112.0 84.5 193.3 78.5 468.3 75.5 95.8 179.4 95.1 445.8 496.4
Effective Tax Rate 35.3% 35.5% 34.8% 36.4%35.8% 35.8% 29.1% 35.5% 35.5% 35.5% 34.2% 35.0%
Income from Continuing Operations $753.5 $203.5 $158.7 $338.3 $140.9 $841.4 $183.8 $174.1 $325.9 $172.8 $856.5 $921.8
Income from Discontinued Operations 3.9 0.1 0.1 0.0 (0.4) (0.2) 0.1 0.1 0.0
Preferred Dividends & Redemptions 4.2 1.1 1.1 4.7 6.8
Net Income for Common $753.1 $202.5 $157.7 $333.7 $140.5 $834.4 $183.9 $174.1 $325.9 $172.8 $856.7 $921.8
Average Diluted Shares Outstanding 463.4 484.3 485.2 485.9 487.0 485.6 488.0 487.5 487.9 489.0 488.1 499.5
Diluted EPS $1.62 $0.42 $0.33 $0.69 $0.29 $1.72 $0.38 $0.36 $0.67 $0.35 $1.75 $1.85
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Ratings Information

D.A. Davidson & Co. Institutional Research Ratings Buy Neutral Underperform
Risk adjusted return potential azbycx
Over 15% total return
expected on a risk adjusted
basis over next 12-18 months
>0-15% return potential
on a risk adjusted basis over next 12-18 months
Likely to remain flat or lose
value on a risk adjusted basis over next 12-18 months
Distribution of Ratings (as of 6/30/12) Buy Hold Sell
Corresponding Institutional Research Ratings Buy Neutral Underperform
and Distribution 58% 40% 2%
Corresponding Individual Investor Group Ratings Outperform Market Perform Underperform
and Distribution 80% 20% 0%
Distribution of Combined Ratings 58% 40% 2%
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