NOTE: Daniels is representing Xcel Energy Inc. in the following transaction.

OR IMMEDIATE RELEASE
CONTACT: Xcel Energy, Minneapolis Investor Relations: R J Kolkmann, 612-215-4559 or P A Johnson, 612-215-4535 or News media inquiries: Xcel Energy media relations, 612-215-5300 www.xcelenergy.com
May 25, 2005

XCEL ENERGY INC. BOARD INCREASES COMMON DIVIDEND 3.6%; APPROVES SALE OF SEREN'S CALIFORNIA ASSETS; DECLARES DIVIDEND ON ALL OUTSTANDING PREFERRED STOCK

MINNEAPOLIS-- The Xcel Energy Inc. (NYSE:XEL) Board of Directors today raised the quarterly dividend on the company's common stock from 20.75 cents per share to 21.5 cents per share, which is equivalent to an annual rate of 86 cents per share. The Board declared the second quarter common stock dividend payable July 20, 2005 to shareholders of record on June 30, 2005.

"Last year we said that it is our goal to deliver results that would enable the board to consider annual dividend increases that balance, among other things, our ability to grow earnings, our plans to invest significant additional capital into the business, our goal to improve our credit rating and our desire to provide our shareholders with an appropriate return on their investment in the company." said Wayne H. Brunetti, chairman and chief executive officer. "The Board's dividend increase is a vote of confidence that the company's strategy is on solid financial footing and will continue to deliver value to our shareholders and customers."

"I'm also pleased to announce that the Board today approved the sale of Seren's California assets to WaveDivision Holdings, LLC. headquartered in Kirkland, Washington," Brunetti said. Terms of the transaction, while not being disclosed, will not have a material impact on 2005 financial results.

The Board declared regular quarterly dividends on all series of outstanding preferred stock, which are payable on July 15, 2005 to shareholders of record on June 30, 2005.

         Series of Cumulative         Dividend
            Preferred Stock           Per Share
            ---------------           ---------
                 $3.60                 $0.90
                 $4.08                 $1.02
                 $4.10                 $1.025
                 $4.11                 $1.0275
                 $4.16                 $1.04
                 $4.56                 $1.14
          

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

This information is not given in connection with any sale or offer for sale or offer to buy any securities.

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