Xcel Energy Unveils New Utility Innovations Initiatives at DistribuTECH 2006; Innovative Partnership Captures Project of the Year Award

The latest UI prototypes align information technology investmentswith targeted business improvement objectives in the areas ofrenewable energy, predictive maintenance, communications and automateddesign:

-- A Web portal for builders and developers that reduces project design time from 20 weeks to two weeks;

-- A predictive maintenance program for power plants that uses analytics to predict incidents before they occur;

-- A partnership with the National Renewable Energy Laboratory that provides more effective placements of solar power to have a more significant impact on a given service territory;

-- A communications architecture model that supports Advanced Meter Management and evaluates technologies such as WiFi, WiMax and BPL.

"Utility Innovations is proving that truly successful innovationcan be achieved through collaboration in a utility environment," saidXcel Energy Vice President and Chief Information Officer Ray Gogel."The evolution of the partnership has given Utility Innovations theflexibility to seamlessly continue with initiatives that meet changingbusiness goals. The program is putting research and development intothe business model of the utility industry. And that is creatingopportunities for improved reliability, customer satisfaction andother value propositions for our customers."

In 2004, Xcel Energy brought together leading technology companiesto leverage the creativity, knowledge and skills of each firm todevelop innovations that improve customer service and operationalefficiency. Since that time, the Utility Innovations program hasevolved as new partners joined Xcel Energy to work on a new series ofinitiatives.

Joining Xcel Energy in 2005 and 2006 are:

-- IBM (NYSE:IBM), the provider of deep industry expertise, broad-base technology and software solutions, as well as project management and systems integration;

-- Indus (Nasdaq:IINT), the provider of Indus Asset Suite, the company's work management and supply chain system, and also Indus Service Suite, which provides resource optimization, scheduling and mobility solutions;

-- Itron (Nasdaq:ITRI), the provider of meters and meter reading automation in Xcel Energy, Colorado, as well as the provider of software applications in meter data management, billing and asset management areas;

-- Lennar Homes (NYSE:LEN) is the provider of residential development land design and C.A.D. drawings, and through Nolte Engineering, provides civil engineering services for integration of technology and management systems;

-- Meridium provides asset performance management software solutions to the process and power industries for increasing equipment reliability and improving the performance of production assets;

-- SmartSignal is the leader in equipment-performance-improvement solutions providing real-time insights into equipment health at Xcel Energy;

-- The U.S. National Renewable Energy Laboratory (NREL) is the nation's primary laboratory for renewable energy and energy efficiency research and development.

"Xcel Energy already has realized financial savings in 2005 withthe initial implementation of a UI workforce optimization initiative,"said Utility Innovations Executive Director Corey Hessen, P.E. "It'sthe strength of these kind of results that has led to the creation ofUtility Innovations as an Xcel Energy program that seeks new solutionsfor higher operational performance."

"Xcel Energy continues to pursue achieving the maximum value fromits technology investments, and has gained the attention of otherutilities attempting to extend the value of advanced metering beyondbilling and customer service," said Patti Harper-Slaboszewicz,Director AMR and Demand Response of UtiliPoint International, a marketresearch and consulting company. "Utility Innovations is one very goodexample of a utility pushing the energy market to reach the level ofsophistication seen in other industries and this is at the heart ofthe smart metering provisions in the Energy Policy Act of 2005. Whatis interesting is that competitors who would normally directly faceoff in responding to utility RFPs are instead working together toforge a new approach, and doing it successfully. At this point in themarket development for advanced metering, vendors have much to gainfrom working together to continue to expand their market."

For more information about Utility Innovations and the partners,please visit www.xcelenergy.com and click on the Utility Innovationslink, located in Newsroom.

"Utility Innovations is a key component of Xcel Energy's plans tomeet the growing needs of our customers," said Xcel Energy Chairmanand CEO Richard Kelly. "The program's success is a testament to ourpartners' expertise, and willingness to work outside the bounds ofconventional thinking."

For more information, contact:
Indus: Gary Frazier: 770-989-4188 Gary.Frazier@indus.com
www.indus.com

Itron: Christina Kelly 509-891-3268 Christina.Kelly@Itron.com
www.itron.com

IBM: Natalie Fine 646-598-3155 nfine@us.ibm.com
www.ibm.com

Lennar Homes: Bill Robison 303-754-0657 Bill.Robison@Lennar.com
www.lennar.com

Meridium: Jane Bailey 540-344-9205 JBailey@Meridium.com
www.meridium.com

SmartSignal: John Kerastas 630-829-4020 jkerastas@smartsignal.com
www.smartsignal.com

U.S. National Renewable
Energy Laboratory
(NREL): Keith Boyle 303-275-3654 keith_boyle@nrel.gov
www.nrel.gov

Xcel Energy: Doug Wiest 303-294-2350 douglas.a.wiest@xcelenergy.com
www.xcelenergy.com

Xcel Energy is a major U.S. electricity and natural gas company,with operations in 10 Western and Midwestern states. Xcel Energyprovides a comprehensive portfolio of energy-related products andservices to 3.3 million electricity customers and 1.8 million naturalgas customers through its regulated operating companies. In terms ofcustomers, it is the fourth-largest combination natural gas andelectricity company in the nation. Company headquarters are located inMinneapolis. More information is available at www.xcelenergy.com.