Xcel Energy Subsidiary Southwestern Public Service Company Announces Debt Financing

Xcel Energy Inc. (NYSE: XEL) subsidiary Southwestern Public Service Company (SPS) today announced that it closed an offering of $100.0 million in aggregate principal amount of its 4.50% first mortgage bonds due August 15, 2041 (the Bonds). The Bonds are redeemable at any time subject to certain “make whole” provisions prior to February 15, 2041. On and after this date, the Bonds are callable at par.

SPS intends to use a portion of the net proceeds from the sale of the Bonds to repay short-term debt borrowings incurred to fund its daily operational needs. The balance of the net proceeds will be used for general corporate purposes.

Citigroup Global Markets Inc. and Deutsche Bank Securities Inc., acted as joint book-running managers for the offering.

This announcement does not constitute an offer to sell or the solicitation of an offer to buy these securities nor shall there be any sale of these securities in any jurisdiction in which an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. The offering is being made only by means of a prospectus and related prospectus supplement. A prospectus supplement related to the offering has been filed with the Securities and Exchange Commission. Copies of the prospectus supplement and accompanying prospectus for the offering may be obtained on the Securities and Exchange Commission’s website at www.sec.gov. Alternatively, any underwriter or dealer participating in the offering will send you the prospectus if you request it by calling (i) Citigroup Global Markets Inc., toll free at 1-877-858-5407 and (ii) Deutsche Bank Securities Inc., toll free at 1-800-503-4611.

This announcement contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that reflect management’s current views with respect to future events, based on what SPS believes are reasonable assumptions. No assurance can be given, however, that these events will occur,. Such forward-looking statements are intended to be identified in this document by the words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “objective,” “outlook,” “plan,” “project,” “possible,” “potential,” “should” and similar expressions. Actual results may vary materially. Factors that could cause actual results to differ materially include, but are not limited to: general economic conditions, including inflation rates, monetary fluctuations and their impact on capital expenditures and the ability of SPS to obtain financing on favorable terms; business conditions in the energy industry, including the risk of a slow down in the U.S. economy or delay in growth recovery; trade, fiscal, taxation and environmental policies in areas where SPS has a financial interest; customer business conditions; actions of credit rating agencies; competitive factors, including the extent and timing of the entry of additional competition in the markets served by SPS; unusual weather; effects of geopolitical events, including war and acts of terrorism; state, federal and foreign legislative and regulatory initiatives that affect cost and investment recovery, have an impact on rates or have an impact on asset operation or ownership or impose environmental compliance conditions; structures that affect the speed and degree to which competition enters the electric market; costs and other effects of legal and administrative proceedings, settlements, investigations and claims; financial or regulatory accounting policies imposed by regulatory bodies; availability of cost of capital; employee work force factors; and the other risk factors listed from time to time by SPS in reports filed with the Securities and Exchange Commission (SEC), including Risk Factors in Item 1A and Exhibit 99.01 of SPS’ Annual Report on Form 10-K for the year ended December 31, 2011 and on SPS’ Quarterly Reports on Form 10-Q for the quarter ended March 31, 2012. SPS assumes no obligation to update any forward-looking information contained in this news release.

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