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Stocks X / Xcel Energy, Inc.


Subject:  Re: dead board ? Date:  4/4/2003  4:20 PM
Author:  Coloraska Number:  98 of 117

I'm holding out hope for Xcel as well. I have some experience in the independent power industry, wind generation in particular. I know Xcel is still signing long term contracts for wind projects. Very few companies balance sheet their generating projects, it is simply a more efficient use of capital to leverage debt. So this means that these companies must be able to obtain financing for the projects they are building. This is interesting because typically Power Purchase Agreements require the generator to sell all power produced to the Utility...Xcel in this case. Lenders are usually pretty skittish about financing a project whose sole customer is in trouble. I take this to mean that the financial community has confidence in Xcel's long term stability.

Now growth is another question. Just because the lenders believe that Xcel will be able to pay their bills doesn't really say anything for the long term growth potential. Any thoughts?

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