June 12, 2007

The Michigan Public Service Commission (MPSC) today approved a settlement agreement authorizing Xcel Energy to incorporate into its rates a uniform gas cost recovery (GCR) factor of $0.89860 per therm for the months of April 2007 through March 2008.

This is a decrease of 9.98 percent compared to last year's GCR factor. As a result of today's order, the typical residential customer using 120 Mcf per year will see an annual decrease of $119.64.

The settlement agreement also authorizes the utility to adjust its GCR factor on a quarterly basis, which may increase or decrease the GCR factor based on future gas price fluctuations.

Xcel Energy filed an application with the MPSC on Dec. 28, 2006 seeking approval of its GCR plan and factors for the 12-month period ending March 31, 2008

The MPSC is an agency within the Department of Labor & Economic Growth.

Case No. U-15044