Document:

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                                                                   EXHIBIT 4.125

                          REGISTRATION RIGHTS AGREEMENT

                                  BY AND AMONG

                                XCEL ENERGY INC.

                                    AS ISSUER

                                       AND

               MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED

                                       AND

                           LAZARD FRERES & CO. L.L.C.

                              AS INITIAL PURCHASERS

                          DATED AS OF NOVEMBER 21, 2002

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                  THIS REGISTRATION RIGHTS AGREEMENT (the "Agreement") is made
and entered into as of November 21, 2002, by and between Xcel Energy Inc., a
Minnesota corporation (the "Company") and Merrill Lynch, Pierce, Fenner & Smith
Incorporated and Lazard Freres & Co. L.L.C. (the "Initial Purchasers"), pursuant
to that certain Purchase Agreement, dated November 19, 2002 (the "Purchase
Agreement") between the Company and the Initial Purchasers.

                  In order to induce the Initial Purchasers to enter into the
Purchase Agreement, the Company has agreed to provide the registration rights
set forth in this Agreement. The execution of this Agreement is a condition to
the closing under the Purchase Agreement.

                  The Company agrees with the Initial Purchasers (i) for their
benefit as Initial Purchasers and (ii) for the benefit of the beneficial owners
(including the Initial Purchasers) from time to time of the Registrable
Securities (as defined herein) (each of the foregoing a "Holder" and together
the "Holders"), as follows:

                  Section 1. Definitions. Capitalized terms used herein without
definition shall have their respective meanings set forth in the Purchase
Agreement. As used in this Agreement, the following terms shall have the
following meanings:

                  "Affiliate" means with respect to any specified person, an
"affiliate," as defined in Rule 144, of such person.

                  "Amendment Effectiveness Deadline Date" has the meaning set
forth in Section 2(d) hereof.

                  "Applicable Conversion Price" as of any date of determination
means the Conversion Price in effect as of such date of determination or, if no
Notes are then outstanding, the Conversion Price that would be in effect were
Notes then outstanding.

                  "Business Day" means each Monday, Tuesday, Wednesday, Thursday
and Friday that is not a day on which banking institutions in The City of New
York are authorized or obligated by law or executive order to close.

                  "Common Stock" means the shares of Common Stock, par value
$2.50 per share, of the Company and any other shares of common stock as may
constitute "Common Stock" for purposes of the Indenture, including the
Underlying Common Stock.

                  "Conversion Price" has the meaning assigned to such term in
the Indenture.

                  "Damages Accrual Period" has the meaning set forth in Section
2(e) hereof.

                  "Damages Payment Date" means, in the case of the Notes and the
Underlying Common Stock, May 21 and November 21 of each year.

                  "Deferral Notice" has the meaning set forth in Section 3(i)
hereof.

                  "Deferral Period" has the meaning set forth in Section 3(i)
hereof.

                  "Effectiveness Deadline Date" has the meaning set forth in
Section 2(a) hereof.

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                  "Effectiveness Period" means the period commencing on the last
date of original issuance of the Notes and terminating upon the earliest of the
following: (A) when all the Notes covered by the Shelf Registration Statement
have been sold pursuant to the Shelf Registration Statement or when all shares
of Underlying Common Stock have been sold pursuant to the Shelf Registration
Statement and (B) when all outstanding Registrable Securities held by persons
that are not Affiliates of the Company may be resold without registration under
the Securities Act pursuant to Rule 144(k) under the Securities Act or any
successor provision thereto.

                  "Event" has the meaning set forth in Section 2(e) hereof.

                  "Event Date" has the meaning set forth in Section 2(e) hereof.

                  "Exchange Act" means the Securities Exchange Act of 1934, as
amended, and the rules and regulations of the SEC promulgated thereunder.

                  "Filing Deadline Date" has the meaning set forth in Section
2(a) hereof.

                  "Holder" has the meaning set forth in the third paragraph of
this Agreement.

                  "Indenture" means the Indenture, dated as of November 21,
2002, between the Company and Wells Fargo Bank Minnesota, National Association,
as trustee, pursuant to which the Notes are being issued.

                  "Initial Purchasers" means Merrill Lynch, Pierce, Fenner &
Smith Incorporated and Lazard Freres & Co. L.L.C.

                  "Initial Shelf Registration Statement" has the meaning set
forth in Section 2(a) hereof.

                  "Issue Date" means the first date of original issuance of the
Notes.

                  "Liquidated Damages Amount" has the meaning set forth in
Section 2(e) hereof.

                  "Material Event" has the meaning set forth in Section 3(i)
hereof.

                  "Notes" means the 7 1/2% Convertible Senior Notes due 2007 of
the Company to be purchased pursuant to the Purchase Agreement.

                  "Notice and Questionnaire" means a written notice delivered to
the Company containing substantially the information called for by the Selling
Securityholder Notice and Questionnaire attached as Annex A to the Offering
Memorandum of the Company dated November 19, 2002 relating to the Notes.

                  "Notice Holder" means, on any date, any Holder that has
delivered a Notice and Questionnaire to the Company on or prior to such date, so
long as all of their Registrable Securities that have been registered for resale
pursuant to a Notice and Questionnaire have not been sold in accordance with a
Registration Statement.

                  "Purchase Agreement" has the meaning set forth in the preamble
hereof.

                  "Prospectus" means the prospectus included in any Registration
Statement (including, without limitation, a prospectus that discloses
information previously omitted from a

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prospectus filed as part of an effective registration statement in reliance upon
Rule 415 promulgated under the Securities Act), as amended or supplemented by
any amendment or prospectus supplement, including post-effective amendments, and
all materials incorporated by reference or explicitly deemed to be incorporated
by reference in such Prospectus.

                  "Record Holder" means (i) with respect to any Damages Payment
Date relating to any Notes as to which any such Liquidated Damages Amount has
accrued, the holder of record of such Note on the record date with respect to
the interest payment date under the Indenture on which such Damages Payment Date
shall occur and (ii) with respect to any Damages Payment Date relating to the
Underlying Common Stock as to which any such Liquidated Damages Amount has
accrued, the registered holder of such Underlying Common Stock fifteen (15) days
prior to such Damages Payment Date.

                  "Registrable Securities" means the Notes until such Notes have
been converted into or exchanged for the Underlying Common Stock and, at all
times the Underlying Common Stock and any securities into or for which such
Underlying Common Stock has been converted or exchanged, and any security issued
with respect thereto upon any stock dividend, split or similar event until, in
the case of any such security, (A) the earliest of (i) its effective
registration under the Securities Act and resale in accordance with the
Registration Statement covering it, (ii) such security may be resold without
registration under the Securities Act pursuant to Rule 144(k) under the
Securities Act or any successor provision thereto, or (iii) its sale to the
public pursuant to Rule 144 (or any similar provision then in force, but not
Rule 144A) under the Securities Act, and (B) as a result of the event or
circumstance described in any of the foregoing clauses (A)(i) through (iii), the
legend with respect to transfer restrictions required under the Indenture are
removed or removable in accordance with the terms of the Indenture or such
legend, as the case may be.

                  "Registration Expenses" has the meaning set forth in Section 5
hereof.

                  "Registration Statement" means any registration statement of
the Company that covers any of the Registrable Securities pursuant to the
provisions of this Agreement including the Prospectus, amendments and
supplements to such registration statement, including post-effective amendments,
all exhibits, and all materials incorporated by reference or deemed to be
incorporated by reference in such registration statement.

                  "Restricted Securities" has the meaning given such term in
Rule 144.

                  "Rule 144" means Rule 144 under the Securities Act, as such
Rule may be amended from time to time, or any similar rule or regulation
hereafter adopted by the SEC.

                  "Rule 144A" means Rule 144A under the Securities Act, as such
Rule may be amended from time to time, or any similar rule or regulation
hereafter adopted by the SEC.

                  "SEC" means the Securities and Exchange Commission.

                  "Securities Act" means the Securities Act of 1933, as amended,
and the rules and regulations promulgated by the SEC thereunder.

                  "Shelf Registration Statement" has the meaning set forth in
Section 2(a) hereof.

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                  "Subsequent Shelf Registration Statement" has the meaning set
forth in Section 2(b) hereof.

                  "TIA" means the Trust Indenture Act of 1939, as amended.

                  "Trustee" means Wells Fargo Bank Minnesota, National
Association, the Trustee under the Indenture.

                  "Underlying Common Stock" means the Common Stock into which
the Notes are convertible or issued upon any such conversion.

                  Section 2. Shelf Registration. (a) The Company shall prepare
and file or cause to be prepared and filed with the SEC, as soon as practicable
but in any event by the date (the "Filing Deadline Date") that is ninety (90)
days after the Issue Date, a Registration Statement for an offering to be made
on a delayed or continuous basis pursuant to Rule 415 of the Securities Act (a
"Shelf Registration Statement") registering the resale from time to time by
Holders thereof of all of the Registrable Securities (the "Initial Shelf
Registration Statement"). The Initial Shelf Registration Statement shall be on
Form S-1 or another appropriate form permitting registration of such Registrable
Securities for resale by such Holders in accordance with the reasonable methods
of distribution elected by the Holders, and set forth in the Initial Shelf
Registration Statement. The Company shall use its best efforts to cause the
Initial Shelf Registration Statement to be declared effective under the
Securities Act as promptly as is practicable but in any event by the date (the
"Effectiveness Deadline Date") that is one hundred eighty (180) days after the
Issue Date, and to keep the Initial Shelf Registration Statement (or any
Subsequent Shelf Registration Statement) continuously effective under the
Securities Act until the expiration of the Effectiveness Period. At the time the
Initial Shelf Registration Statement is declared effective, each Holder that
became a Notice Holder on or prior to the date that is ten (10) Business Days
prior to such time of effectiveness shall be named as a selling securityholder
in the Initial Shelf Registration Statement and the related Prospectus in such a
manner as to permit such Holder to deliver such Prospectus to purchasers of
Registrable Securities in accordance with applicable law to the extent that such
Holder has delivered a Notice and Questionnaire to the Company as contemplated
by Section 2(d) below. Notwithstanding the foregoing, if a Holder fails to
provide the Company with the information requested by the Notice and
Questionnaire within the period specified in Section 2(d) below, then the Filing
Deadline Date and the Effectiveness Deadline Date, with respect to such Holder,
shall be extended by one day for each day after the twenty (20) Business Day
period that such Holder fails to provide such Notice and Questionnaire;
provided, however, that the failure of a Holder to provide such Notice and
Questionnaire shall not otherwise affect the Company's obligations under this
Agreement to any other Holder.

                           (b) If the Initial Shelf Registration Statement or
any Subsequent Shelf Registration Statement ceases to be effective for any
reason at any time during the Effectiveness Period, the Company shall use its
best efforts to obtain the prompt withdrawal of any order suspending the
effectiveness thereof, and in any event shall within five (5) Business Days of
such cessation of effectiveness amend the Shelf Registration Statement in a
manner reasonably expected to obtain the withdrawal of the order suspending the
effectiveness thereof, or file an additional Shelf Registration Statement
covering all of the securities that as of the date of such filing are
Registrable Securities (a "Subsequent Shelf Registration Statement"). If a
Subsequent Shelf Registration Statement is filed, the Company shall use its best
efforts to cause the Subsequent Shelf Registration Statement to become effective
as promptly as is practicable after such filing and to keep such Registration
Statement (or subsequent Shelf Registration Statement) continuously effective
until the end of the Effectiveness Period.

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                           (c) The Company shall supplement and amend the Shelf
Registration Statement if required by the rules, regulations or instructions
applicable to the registration form used by the Company for such Shelf
Registration Statement, if required by the Securities Act or as reasonably
requested by the Initial Purchasers or by the Trustee on behalf of the Holders
of the Registrable Securities covered by such Shelf Registration Statement.

                           (d) Each Holder of Registrable Securities agrees that
if such Holder wishes to sell Registrable Securities pursuant to a Shelf
Registration Statement and related Prospectus, it will do so only in accordance
with this Section 2(d) and Section 3(i). Each Holder of Registrable Securities
wising to sell Registrable Securities pursuant to a Shelf Registration Statement
and related Prospectus agrees to deliver a Notice and Questionnaire, but shall
have at least twenty (20) Business Days from the date on which the Notice and
Questionnaire is first received by such Holders to return a completed and signed
Notice and Questionnaire to the Company. From and after the date the Initial
Shelf Registration Statement is declared effective, the Company shall, as
promptly as practicable after the date a Notice and Questionnaire is delivered,
whether before of after the (20) Business Day Period described above, and in any
event within the later of (x) five (5) Business Days after such date or (y) five
(5) Business Days after the expiration of any Deferral Period in effect when the
Notice and Questionnaire is delivered or put into effect within five (5)
Business Days of such delivery date, (i) if required by applicable law, file
with the SEC a post-effective amendment to the Shelf Registration Statement or,
if required by applicable law, prepare and file a supplement to the related
Prospectus or a supplement or amendment to any document incorporated therein by
reference or file any other required document so that the Holder delivering such
Notice and Questionnaire is named as a selling securityholder in the Shelf
Registration Statement and the related Prospectus in such a manner as to permit
such Holder to deliver such Prospectus to purchasers of the Registrable
Securities in accordance with applicable law and, if the Company shall file a
post-effective amendment to the Shelf Registration Statement, use its best
efforts to cause such post-effective amendment to be declared effective under
the Securities Act as promptly as is practicable, but in any event by the date
(the "Amendment Effectiveness Deadline Date") that is thirty (30) days after the
date such post-effective amendment is required by this clause to be filed; (ii)
provide such Holder copies of any documents filed pursuant to Section 2(d)(i);
and (iii) notify such Holder as promptly as practicable after the effectiveness
under the Securities Act of any post-effective amendment filed pursuant to
Section 2(d)(i); provided that if such Notice and Questionnaire is delivered
during a Deferral Period, or a Deferral Period is put into effect within five
(5) Business Days after such delivery date, the Company shall so inform the
Holder delivering such Notice and Questionnaire and shall take the actions set
forth in clauses (i), (ii) and (iii) above within five (5) Business Days after
expiration of the Deferral Period in accordance with Section 3(i); provided
further that if under applicable law, the Company has more than one option as to
the type or manner of making any such filing, the Company will make the required
filing or filings in the manner or of a type that is reasonably expected to
result in the earliest availability of the Prospectus for effecting resales of
Registrable Securities. Notwithstanding anything contained herein to the
contrary, the Company shall be under no obligation to name any Holder that is
not a Notice Holder as a selling securityholder in any Registration Statement or
related Prospectus; provided, however, that any Holder that becomes a Notice
Holder pursuant to the provisions of this Section 2(d) (whether or not such
Holder was a Notice Holder at the time the Registration Statement was declared
effective) shall be named as a selling securityholder in the Registration
Statement or related Prospectus in accordance with the requirements of this
Section 2(d).

                           (e) The parties hereto agree that the Holders of
Registrable Securities will suffer damages, and that it would not be feasible to
ascertain the extent of such damages with

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precision, if (i) the Initial Shelf Registration Statement has not been filed on
or prior to the Filing Deadline Date, (ii) the Initial Shelf Registration
Statement has not been declared effective under the Securities Act on or prior
to the Effectiveness Deadline Date, (iii) the Company has failed to perform its
obligations set forth in Section 2(b) within the time period required therein,
(iv) the Company has failed to perform its obligations set forth in Section 2(d)
within the time periods required therein or (v) the aggregate duration of
Deferral Periods in any period exceeds the number of days permitted in respect
of such period pursuant to Section 3(i) hereof (each of the events of a type
described in any of the foregoing clauses (i) through (v) are individually
referred to herein as an "Event," and the Filing Deadline Date in the case of
clause (i), the Effectiveness Deadline Date in the case of clause (ii), the date
by which the Company is required to perform its obligations set forth in Section
2(b) in the case of clause (iii), the date by which the Company is required to
perform its obligations set forth in Section 2(d) in the case of clause (iv)
(including the filing of any post-effective amendment prior to the Amendment
Effectiveness Deadline Date), and the date on which the aggregate duration of
Deferral Periods in any period exceeds the number of days permitted by Section
3(i) hereof in the case of clause (v), being referred to herein as an "Event
Date"). Events shall be deemed to continue until the following dates with
respect to the respective types of Events: the date the Initial Shelf
Registration Statement is filed in the case of an Event of the type described in
clause (i), the date the Initial Shelf Registration Statement is declared
effective under the Securities Act in the case of an Event of the type described
in clause (ii), the date the Company performs its obligations set forth in
Section 2(b) in the case of an Event of the type described in clause (iii), the
date the Company performs its obligations set forth in Section 2(d) in the case
of an Event of the type described in clause (iv) (including, without limitation,
the date the relevant post-effective amendment to the Shelf Registration
Statement is declared effective under the Securities Act), and termination of
the Deferral Period that caused the limit on the aggregate duration of Deferral
Periods in a period set forth in Section 3(i) to be exceeded in the case of the
commencement of an Event of the type described in clause (v).

                  Accordingly, commencing on (and including) any Event Date and
ending on (but excluding) the next date on which there are no Events that have
occurred and are continuing (a "Damages Accrual Period"), the Company agrees to
pay, as liquidated damages and not as a penalty, an amount (the "Liquidated
Damages Amount"), payable on the Damages Payment Dates to Record Holders of
Notes that are Registrable Securities and of shares of Underlying Common Stock
issued upon conversion of Notes that are Registrable Securities, as the case may
be, accruing, for each portion of such Damages Accrual Period beginning on and
including a Damages Payment Date (or, if the first date of any Damages Accrual
Period for which the Liquidated Damages Amount is to be paid to Holders as a
result of the occurrence of any particular Event is other than a Damages Payment
Date, then the Event Date) and ending on but excluding the first to occur of (A)
the date of the end of the Damages Accrual Period or (B) the next Damages
Payment Date, at a rate per annum equal to one-quarter of one percent (0.25%)
for the first 90-day period from the Event Date, and thereafter at a rate per
annum equal to one-half of one percent (0.5%) of (i) the aggregate principal
amount of such Notes or, without duplication, (ii) in the case of Notes that
have been converted into or exchanged for Underlying Common Stock, the
Applicable Conversion Price of such shares of Underlying Common Stock on the
date of conversion, as the case may be, in each case determined as of the
Business Day immediately preceding the next Damages Payment Date; provided that
any Liquidated Damages Amount accrued with respect to any Note or portion
thereof called for redemption on a redemption date or converted into Underlying
Common Stock on a conversion date prior to the Damages Payment Date, shall, in
any such event, be paid instead to the Holder who submitted such Note or portion
thereof for redemption or conversion on the applicable redemption date or
conversion date, as the case may be, on such date (or promptly following the
conversion date, in the case of conversion). Notwithstanding the foregoing, no
Liquidated Damages Amounts shall accrue as to any

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Registrable Security from and after the earlier of (x) the date such security is
no longer a Registrable Security and (y) expiration of the Effectiveness Period.
The rate of accrual of the Liquidated Damages Amount with respect to any period
shall not exceed 0.5% notwithstanding the occurrence of multiple concurrent
Events. Following the cure of all Events requiring the payment by the Company of
Liquidated Damages Amounts to the Holders of Registrable Securities pursuant to
this Section, the accrual of Liquidated Damages Amounts will cease (without in
any way limiting the effect of any subsequent Event requiring the payment of
Liquidated Damages Amount by the Company).

                  The Trustee shall be entitled, on behalf of Holders of Notes,
to seek any available remedy for the enforcement of this Agreement, including
for the payment of any Liquidated Damages Amount. Nothing shall preclude a
Holder of registrable Securities from pursuing or obtaining specific performance
or other equitable relief with respect to this Agreement.

                  All of the Company's obligations set forth in this Section
2(e) that are outstanding with respect to any Registrable Security at the time
such security ceases to be a Registrable Security shall survive until such time
as all such obligations with respect to such security have been satisfied in
full (notwithstanding termination of this Agreement pursuant to Section 8(k)).

                  The parties hereto agree that the liquidated damages provided
for in this Section 2(e) constitute a reasonable estimate of the damages that
may be incurred by Holders of Registrable Securities by reason of the failure of
the Shelf Registration Statement to be filed or declared effective or available
for effecting resales of Registrable Securities in accordance with the
provisions hereof.

                  Section 3. Registration Procedures. In connection with the
registration obligations of the Company under Section 2 hereof, the Company
shall:

                           (a) Prepare and file with the SEC a Registration
Statement or Registration Statements on any appropriate form under the
Securities Act available for the sale of the Registrable Securities by the
Holders thereof in accordance with the intended method or methods of
distribution thereof, and use its best efforts to cause each such Registration
Statement to become effective and remain effective as provided herein; provided
that before filing any Registration Statement or Prospectus or any amendments or
supplements thereto with the SEC, the Company shall furnish to the Initial
Purchasers and counsel for the Holders and for the Initial Purchasers (or, if
applicable, separate counsel for the Holders) copies of all such documents
proposed to be filed and use its best efforts to reflect in each such document
when so filed with the SEC such comments as such counsel reasonably shall
propose within three (3) Business Days of the delivery of such copies to the
Initial Purchasers and such counsel.

                           (b) Prepare and file with the SEC such amendments and
post-effective amendments to each Registration Statement as may be necessary to
keep such Registration Statement continuously effective until the expiration of
the Effectiveness Period; cause the related Prospectus to be supplemented by any
required Prospectus supplement, and as so supplemented to be filed pursuant to
Rule 424 (or any similar provisions then in force) under the Securities Act; and
use its best efforts to comply with the provisions of the Securities Act
applicable to them with respect to the disposition of all securities covered by
such Registration Statement during the Effectiveness Period in accordance with
the intended methods of disposition by the sellers thereof set forth in such
Registration Statement as so amended or such Prospectus as so supplemented.

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                           (c) As promptly as practicable give notice to the
Notice Holders, the Initial Purchasers and counsel for the Holders and for the
Initial Purchasers (or, if applicable, separate counsel for the Holders) (i)
when any Prospectus, Prospectus supplement, Registration Statement or
post-effective amendment to a Registration Statement has been filed with the SEC
and, with respect to a Registration Statement or any post-effective amendment,
when the same has been declared effective, (ii) of any request, following the
effectiveness of the Initial Shelf Registration Statement under the Securities
Act, by the SEC or any other federal or state governmental authority for
amendments or supplements to any Registration Statement or related Prospectus or
for additional information, (iii) of the issuance by the SEC or any other
federal or state governmental authority of any stop order suspending the
effectiveness of any Registration Statement or the initiation or threatening of
any proceedings for that purpose, (iv) of the receipt by the Company of any
notification with respect to the suspension of the qualification or exemption
from qualification of any of the Registrable Securities for sale in any
jurisdiction or the initiation or threatening of any proceeding for such purpose
and (v) of the determination by the Company that a post-effective amendment to a
Registration Statement will be filed with the SEC, which notice may, at the
discretion of the Company (or as required pursuant to Section 3(i)), state that
it constitutes a Deferral Notice, in which event the provisions of Section 3(i)
shall apply.

                           (d) Use its best efforts to prevent the issuance of,
and, if issued, to obtain the withdrawal of any order suspending the
effectiveness of a Registration Statement or the lifting of any suspension of
the qualification (or exemption from qualification) of any of the Registrable
Securities for sale in any jurisdiction in which they have been qualified for
sale, in either case as promptly as practicable, and provide prompt notice to
each Notice Holder and the Initial Purchasers of the withdrawal of any such
order.

                           (e) If reasonably requested by the Initial Purchasers
or any Notice Holder, as promptly as practicable incorporate in a Prospectus
supplement or post-effective amendment to a Registration Statement such
information as the Initial Purchasers, such Notice Holder or counsel for the
Holders and for the Initial Purchasers (or, if applicable, separate counsel for
the Holders) shall, on the basis of a written opinion of nationally-recognized
counsel experienced in such matters, determine to be required to be included
therein by applicable law and make any required filings of such Prospectus
supplement or such post-effective amendment provided that the Company shall not
be required to take any actions under this Section 3(e) that, in the written
opinion of counsel for the Company, are not in compliance with appliance law.

                           (f) As promptly as practicable furnish to each Notice
Holder, counsel for the Holders and for the Initial Purchasers (or, if
applicable, separate counsel for the Holders) and the Initial Purchasers,
without charge, at least one (1) conformed copy of the Registration Statement
and any amendment thereto, including financial statements but excluding
schedules, all documents incorporated or deemed to be incorporated therein by
reference and all exhibits (unless requested in writing to the Company by such
Notice Holder, such counsel or the Initial Purchasers).

                           (g) During the Effectiveness Period, deliver to each
Notice Holder, counsel for the Holders and for the Initial Purchasers (or, if
applicable, separate counsel for the Holders) and the Initial Purchasers, in
connection with any sale of Registrable Securities pursuant to a Registration
Statement, without charge, as many copies of the Prospectus or Prospectuses
relating to such Registrable Securities (including each preliminary prospectus)
and any amendment or supplement thereto as such Notice Holder may reasonably
request; and the Company hereby consents (except during such periods that a
Deferral Notice is outstanding and

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has not been revoked) to the use of such Prospectus or each amendment or
supplement thereto by each Notice Holder, in connection with any offering and
sale of the Registrable Securities covered by such Prospectus or any amendment
or supplement thereto in the manner set forth therein.

                           (h) Prior to any public offering of the Registrable
Securities pursuant to the Shelf Registration Statement, use its best efforts to
register or qualify or cooperate with the Notice Holders in connection with the
registration or qualification (or exemption from such registration or
qualification) of such Registrable Securities for offer and sale under the
securities or Blue Sky laws of such jurisdictions within the United States as
any Notice Holder reasonably requests in writing (which request may be included
in the Notice and Questionnaire); prior to any public offering of the
Registrable Securities pursuant to the Shelf Registration Statement, use its
best efforts to keep each such registration or qualification (or exemption
therefrom) effective during the Effectiveness Period in connection with such
Notice Holder's offer and sale of Registrable Securities pursuant to such
registration or qualification (or exemption therefrom) and do any and all other
acts or things reasonably necessary or advisable to enable the disposition in
such jurisdictions of such Registrable Securities in the manner set forth in the
relevant Registration Statement and the related Prospectus; provided that the
Company will not be required to (i) qualify as a foreign corporation or as a
dealer in securities in any jurisdiction where they would not otherwise be
required to qualify but for this Agreement or (ii) take any action that would
subject it to general service of process in suits or to taxation in any such
jurisdiction where they are not then so subject.

                           (i) Upon (A) the issuance by the SEC of a stop order
suspending the effectiveness of the Shelf Registration Statement or the
initiation of proceedings with respect to the Shelf Registration Statement under
Section 8(d) or 8(e) of the Securities Act, (B) the occurrence of any event or
the existence of any fact as a result of which any Registration Statement shall
contain any untrue statement of a material fact required to be stated therein or
omit to state any material fact required to be stated therein or necessary in
order to make the statements therein not misleading, or any Prospectus shall
contain any untrue statement of a material fact or omit to state any material
fact necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading, or (C) the occurrence
or existence of any pending corporate development (a "Material Event") that, in
the reasonable discretion of the Company, makes it appropriate to suspend the
availability of the Shelf Registration Statement and the related Prospectus, (i)
in the case of clause (B) above, subject to the next sentence, as promptly as
practicable prepare and file a post-effective amendment to such Registration
Statement or a supplement to the related Prospectus or any document incorporated
therein by reference, if applicable or file any other required document that
would be incorporated by reference into such Registration Statement and
Prospectus so that such Registration Statement does not contain any untrue
statement of a material fact required to be stated therein or omit to state any
material fact required to be stated therein or necessary in order to make the
statements therein not misleading, and such Prospectus does not contain any
untrue statement of a material fact or omit to state any material fact necessary
in order to make the statements therein, in the light of the circumstances under
which they were made, not misleading (it being understood that the Company may
rely on information provided by each Notice Holder with respect to such Notice
Holder), as thereafter delivered to the purchasers of the Registrable Securities
being sold thereunder, and, in the case of a post-effective amendment to a
Registration Statement, subject to the next sentence, use its best efforts to
cause it to be declared effective as promptly as is practicable, and (ii) give
notice to the Notice Holders and counsel for the Holders and for the Initial
Purchasers (or, if applicable, separate counsel for the Holders) that the
availability of the Shelf Registration Statement is suspended (a "Deferral
Notice") and, upon

                                       10
<PAGE>

receipt of any Deferral Notice, each Notice Holder agrees not to sell any
Registrable Securities pursuant to the Registration Statement until such Notice
Holder's receipt of copies of the supplemented or amended Prospectus provided
for in clause (i) above, or until it is advised in writing by the Company that
the Prospectus may be used, and has received copies of any additional or
supplemental filings that are incorporated or deemed incorporated by reference
in such Prospectus. The Company will use its best efforts to ensure that the use
of the Prospectus may be resumed (x) in the case of clause (A) above, as
promptly as is practicable, (y) in the case of clause (B) above, as soon as, in
the reasonable judgment of the Company, the Registration Statement does not
contain any untrue statement of a material fact or omits to state any material
fact required to be stated therein or necessary to make the statements therein
not misleading and the Prospectus does not contain any untrue statement of a
material fact or omits to state any material fact necessary in order to make the
statements therein, in the light of the circumstances under which they were
made, not misleading, and (z) in the case of clause (C) above, as soon as, in
the reasonable discretion of the Company, such suspension is no longer
appropriate. The period during which the availability of the Registration
Statement and any Prospectus is suspended (the "Deferral Period") without the
Company incurring any obligation to pay liquidated damages pursuant to Section
2(e), shall not exceed thirty (30) days in any ninety- (90-) day period and
ninety (90) days in any twelve- (12-) month period.

                           (j) Make available for inspection during normal
business hours by a representative for the Notice Holders of such Registrable
Securities, and any broker-dealers, attorneys and accountants retained by such
Notice Holders, all reasonably requested financial and other records and
pertinent corporate documents and properties of the Company and its
subsidiaries, and cause the appropriate executive officers, directors and
employees of the Company and its subsidiaries to make available for inspection
during normal business hours all relevant information reasonably requested by
such representative for the Notice Holders, or any such broker-dealers,
attorneys or accountants in connection with such disposition, in each case as is
customary for similar "due diligence" examinations; provided, however, that such
persons shall first agree in writing with the Company that any information that
is reasonably and in good faith designated by the Company in writing as
confidential at the time of delivery of such information shall be kept
confidential by such persons and shall be used solely for the purposes of
exercising rights under this Agreement, unless (i) disclosure of such
information is required by court or administrative order or is necessary to
respond to inquiries of regulatory authorities, (ii) disclosure of such
information is required by law (including any disclosure requirements pursuant
to federal securities laws in connection with the filing of any Registration
Statement or the use of any Prospectus referred to in this Agreement), (iii)
such information becomes generally available to the public other than as a
result of a disclosure or failure to safeguard by any such person or (iv) such
information becomes available to any such person from a source other than the
Company and such source is not bound by a confidentiality agreement or is not
otherwise under a fiduciary or other duty of trust to the Company, and provided
that the foregoing inspection and information gathering shall, to the fullest
extent possible, be coordinated on behalf of all the Notice Holders and the
other parties entitled thereto by the counsel referred to in Section 5.

                           (k) Comply with all applicable rules and regulations
of the SEC and make generally available to its securityholders earning
statements (which need not be audited) satisfying the provisions of Section
11(a) of the Securities Act and Rule 158 thereunder (or any similar rule
promulgated under the Securities Act) no later than 45 days after the end of any
12-month period (or 90 days after the end of any 12-month period if such period
is a fiscal year) commencing on the first day of the first fiscal quarter of the
Company commencing after the effective date of a Registration Statement, which
statements shall cover said 12-month periods.

                                       11
<PAGE>

                           (l) Cooperate with each Notice Holder to facilitate
the timely preparation and delivery of certificates representing Registrable
Securities sold pursuant to a Registration Statement, which certificates shall
not bear any restrictive legends, and cause such Registrable Securities to be in
such denominations as are permitted by the Indenture and registered in such
names as such Notice Holder may request in writing at least (2) Business Days
prior to any sale of such Registrable Securities.

                           (m) Provide a CUSIP number for all Registrable
Securities covered by each Registration Statement not later than the effective
date of such Registration Statement and provide the Trustee and the transfer
agent for the Common Stock with printed certificates for the Registrable
Securities that are in a form eligible for deposit with The Depository Trust
Company.

                           (n) Prior to any public offering of Underlying Common
Stock which are Registrable Securities, use its best efforts to cause all such
Underlying Common Stock to be listed, or approved for listing, on the New York
Stock Exchange or any other stock exchange on which securities of the same class
issued by the Company are then listed.

                           (o) Cooperate and assist in any filings required to
be made with the National Association of Securities Dealers, Inc.

                           (p) Upon (i) the filing of the Initial Registration
Statement and (ii) the effectiveness of the Initial Registration Statement,
announce the same, in each case by press release to a nationally recognized wire
service.

                           (q) Enter into such customary agreements and take all
such other necessary actions in connection therewith (including those requested
by the holders of a majority of the Registrable Securities being sold) in order
to expedite or facilitate disposition of such Registrable Securities.

                           (r) Cause the Indenture to be qualified under the TIA
not later than the effective date of any Registration Statement; and in
connection therewith, cooperate with the Trustee to effect such changes to the
Indenture as may be required for the Indenture to be so qualified in accordance
with the terms of the TIA and execute, and use its best efforts to cause the
Trustee to execute, all documents as may be required to effect such changes, and
all other forms and documents required to be filed with the SEC to enable the
Indenture to be so qualified in a timely manner.

                  Section 4. Holder's Obligations. Each Holder agrees, by
acquisition of the Registrable Securities, that no Holder of Registrable
Securities shall be entitled to sell any of such Registrable Securities pursuant
to a Registration Statement or to receive a Prospectus relating thereto, unless
such Holder has furnished the Company with a Notice and Questionnaire as
required pursuant to Section 2(d) hereof (including the information required to
be included in such Notice and Questionnaire) and the information set forth in
the next sentence. Each Notice Holder agrees promptly to furnish to the Company
all information required to be disclosed in order to make the information
previously furnished to the Company by such Notice Holder not misleading and any
other information regarding such Notice Holder and the distribution of such
Registrable Securities as may be required to be to disclosed in the Registration
Statement under applicable law.

                  Section 5. Registration Expenses. The Company shall bear all
fees and expenses incurred in connection with the performance by the Company of
its obligations under

                                       12

<PAGE>

Sections 2 and 3 of this Agreement whether or not any of the Registration
Statements are declared effective. Such fees and expenses ("Registration
Expenses") shall include, without limitation, (i) all registration and filing
fees (including, without limitation, fees and expenses (x) with respect to
filings required to be made with the National Association of Securities Dealers,
Inc. and (y) of compliance with federal and state securities or Blue Sky laws
(including, without limitation, reasonable fees and disbursements of one counsel
for the Holders, not to exceed $10,000 in connection with Blue Sky
qualifications of the Registrable Securities under the laws of such
jurisdictions as the Notice Holders of a majority of the Registrable Securities
being sold pursuant to a Registration Statement may designate), (ii) printing
expenses (including, without limitation, expenses of printing certificates for
Registrable Securities in a form eligible for deposit with The Depository Trust
Company), (iii) duplication expenses relating to copies of any Registration
Statement or Prospectus delivered to any Holders hereunder, (iv) fees and
disbursements of counsel for the Company, (v) the reasonable fees and expenses
of the Initial Purchasers, including the reasonable fees and expenses of one
counsel to the Initial Purchasers and the Holders in connection therewith, (vi)
fees and disbursements of the Trustee and its counsel and of the registrar and
transfer agent for the Common Stock and (vii) Securities Act liability insurance
obtained by the Company in its sole discretion. In addition, the Company shall
pay the internal expenses of the Company (including, without limitation, all
salaries and expenses of officers and employees performing legal or accounting
duties), the expense of any annual audit, the fees and expenses incurred in
connection with the listing by the Company of the Registrable Securities on any
securities exchange on which similar securities of the Company are then listed
and the fees and expenses of any person, including special experts, retained by
the Company.

                  Section 6. Indemnification; Contribution.

                           (a) The Company agrees to indemnify and hold harmless
each of the Initial Purchasers, each Holder and each person, if any, who
controls each such Initial Purchaser or Holder within the meaning of Section 15
of the 1933 Act or Section 20 of the 1934 Act as follows:

                                (i) against any and all loss, liability, claim,
         damage and expense whatsoever, as incurred, arising out of any untrue
         statement or alleged untrue statement of a material fact contained in
         any Registration Statement (or any amendment or supplement thereto)
         pursuant to which Registrable Securities were registered under the 1933
         Act, including all documents incorporated therein by reference, or the
         omission or alleged omission therefrom of a material fact required to
         be stated therein or necessary to make the statements therein not
         misleading, or arising out of any untrue statement or alleged untrue
         statement of a material fact contained in any preliminary prospectus or
         the Prospectus (or any amendment or supplement thereto) or the omission
         or alleged omission therefrom of a material fact necessary in order to
         make the statements therein, in the light of the circumstances under
         which they were made, not misleading;

                                (ii) against any and all loss, liability, claim,
         damage and expense whatsoever, as incurred, to the extent of the
         aggregate amount paid in settlement of any litigation, or any
         investigation or proceeding by any governmental agency or body,
         commenced or threatened, or of any claim whatsoever based upon any such
         untrue statement or omission, or any such alleged untrue statement or
         omission; provided that (subject to Section 6(d)

                                       13

<PAGE>

         below) any such settlement is effected with the written consent of the
         Company; and

                                (iii) against any and all expense whatsoever, as
         incurred (including the fees and disbursements of counsel chosen by any
         indemnified party), reasonably incurred in investigating, preparing or
         defending against any litigation, or any investigation or proceeding by
         any governmental agency or body, commenced or threatened, or any claim
         whatsoever based upon any such untrue statement or omission, or any
         such alleged untrue statement or omission, to the extent that any such
         expense is not paid under subparagraph (i) or (ii) above; provided,
         however, that this indemnity agreement shall not apply to any loss,
         liability, claim, damage or expense to the extent arising out of any
         untrue statement or omission or alleged untrue statement or omission
         made in reliance upon and in conformity with written information
         furnished to the Company by the Initial Purchasers or such Holder
         expressly for use in a Registration Statement (or any amendment
         thereto) or any Prospectus (or any amendment or supplement thereto);

provided, however, that this indemnity does not apply to any loss, liability,
claim, damage or expense to the extent arising out of (i) an untrue statement or
omission or alleged untrue statement or omission made in reliance upon and in
conformity with written information with respect to a Holder furnished in
writing to the Company by such Holder expressly for use in a Shelf Registration
Statement (or any amendment thereto) or any Prospectus (or any amendment or
supplement thereto) and (ii) the failure of any Holder to comply with Section
3(i).

                           (b) In connection with any shelf registration
statement in which a Holder of Registrable securities is participating, in
furnishing information relating to such Holder to the Company expressly for use
in the Registration Statement, each Holder severally, but not jointly, agrees to
indemnify and hold harmless the Company, the Initial Purchasers, the other
selling Holders, and each of their respective directors and officers, and each
person, if any, who controls the any Company, the Initial Purchasers or any
other selling Holder within the meaning of Section 15 of the 1933 Act or Section
20 of the 1934 Act, against any and all loss, liability, claim, damage and
expense described in the indemnity contained in Section 6(a) hereof, as
incurred, but only with respect to untrue statements or omissions, or alleged
untrue statements or omissions, made in the Shelf Registration Statement (or any
amendment thereto) or any Prospectus included therein (or any amendment or
supplement thereto) in reliance upon and in conformity with written information
with respect to such Holder furnished to the Company by such Holder expressly
for use in the Shelf Registration Statement (or any amendment thereto) or such
Prospectus (or any amendment or supplement thereto); provided, however, that no
such Holder shall be liable for any claims hereunder in excess of the amount of
net proceeds received by such Holder from the sale of Registrable Securities
pursuant to such Shelf Registration Statement.

                           (c) Each indemnified party shall give notice as
promptly as reasonably practicable to each indemnifying party of any action
commenced against it in respect of which indemnity may be sought hereunder, but
failure to so notify an indemnifying party shall not relieve such indemnifying
party from any liability hereunder to the extent it is not materially prejudiced
as a result thereof and in any event shall not relieve it from any liability
which it may have otherwise than on account of this indemnity agreement. In the
case of parties indemnified pursuant to Section 6(a) above, counsel to the
indemnified parties shall be selected by the Initial

                                       14

<PAGE>

Purchasers, and, in the case of parties indemnified pursuant to Section 6(b)
above, counsel to the indemnified parties shall be selected by the Company. An
indemnifying party may participate at its own expense in the defense of any such
action; provided, however, that counsel to the indemnifying party shall not
(except with the consent of the indemnified party) also be counsel to the
indemnified party. In no event shall the indemnifying parties be liable for fees
and expenses of more than one counsel (in addition to any local counsel)
separate from their own counsel for all indemnified parties in connection with
any one action or separate but similar or related actions in the same
jurisdiction arising out of the same general allegations or circumstances. No
indemnifying party shall, without the prior written consent of the indemnified
parties, settle or compromise or consent to the entry of any judgment with
respect to any litigation, or any investigation or proceeding by any
governmental agency or body, commenced or threatened, or any claim whatsoever in
respect of which indemnification or contribution could be sought under this
Section 6 (whether or not the indemnified parties are actual or potential
parties thereto), unless such settlement, compromise or consent (i) includes an
unconditional release of each indemnified party from all liability arising out
of such litigation, investigation, proceeding or claim and (ii) does not include
a statement as to or an admission of fault, culpability or a failure to act by
or on behalf of any indemnified party.

                           (d) If at any time an indemnified party shall have
requested an indemnifying party to reimburse the indemnified party for fees and
expenses of counsel, such indemnifying party agrees that it shall be liable for
any settlement of the nature contemplated by Section 6(a)(ii) effected without
its written consent if (i) such settlement is entered into more than 45 days
after receipt by such indemnifying party of the aforesaid request, (ii) such
indemnifying party shall have received notice of the terms of such settlement at
least 30 days prior to such settlement being entered into and (iii) such
indemnifying party shall not have reimbursed such indemnified party in
accordance with such request prior to the date of such settlement.

                           (e) If the indemnification provided for in this
Section 6 is for any reason unavailable to or insufficient to hold harmless an
indemnified party in respect of any losses, liabilities, claims, damages or
expenses referred to therein, then each indemnifying party shall contribute to
the aggregate amount of such losses, liabilities, claims, damages and expenses
incurred by such indemnified party, as incurred, in such proportion as is
appropriate to reflect the relative fault of the indemnifying party or parties
on the one hand and the indemnified party on the other hand in connection with
the statements or omissions that resulted in such losses, liabilities, claims,
damages or expenses, as well as any other relevant equitable considerations.

                  The relative fault of the Company on the one hand and the
Holders and the Initial Purchasers on the other hand shall be determined by
reference to, among other things, whether any such untrue or alleged untrue
statement of a material fact or omission or alleged omission to state a material
fact relates to information supplied by the Company, the Holders or the Initial
Purchaser and the parties' relative intent, knowledge, access to information and
opportunity to correct or prevent such statement or omission.

                  The Company, the Holders and the Initial Purchasers agree that
it would not be just and equitable if contribution pursuant to this Section 6(e)
were determined by pro rata allocation or by any other method of allocation that
does not take account of the equitable considerations referred to above in this
Section 6(e). The aggregate amount of losses, liabilities, claims, damages and
expenses incurred by an indemnified party and referred to above in this Section
6(e) shall be deemed to include any legal or other expenses reasonably incurred
by such indemnified party in investigating, preparing or defending against any
litigation, or any investigation or proceeding by any governmental agency or
body, commenced or threatened, or

                                       15

<PAGE>

any claim whatsoever based upon any such untrue or alleged untrue statement or
omission or alleged omission.

                  Notwithstanding the provisions of this Section 6, neither any
of the Initial Purchasers nor any Holder shall be required to indemnify or
contribute any amount in excess of the amount by which the total price at which
the Registrable Securities sold by such Holder or underwritten by such Initial
Purchaser, as the case may be, and distributed to the public were offered to the
public exceeds the amount of any damages that such Holder or Initial Purchaser
has otherwise been required to pay by reason of such untrue or alleged untrue
statement or omission or alleged omission.

                  No person guilty of fraudulent misrepresentation (within the
meaning of Section 11(f) of the 1933 Act) shall be entitled to contribution from
any person who was not guilty of such fraudulent misrepresentation.

                  For purposes of this Section 6, each person, if any, who
controls any of the Initial Purchasers or any Holder within the meaning of
Section 15 of the Securities Act or Section 20 of the Exchange Act shall have
the same rights to contribution as such Initial Purchasers or Holder, and each
director of the Company, and each person, if any, who controls the Company
within the meaning of Section 15 of the Securities Act or Section 20 of the
Exchange Act shall have the same rights to contribution as the Company.

                  Section 7. Information Requirements. (a) The Company covenants
that, if at any time before the end of the Effectiveness Period the Company is
not subject to the reporting requirements of the Exchange Act, it will cooperate
with any Holder of Registrable Securities and take such further reasonable
action as any Holder of Registrable Securities may reasonably request in writing
(including, without limitation, making such reasonable representations as any
such Holder may reasonably request), all to the extent required from time to
time to enable such Holder to sell Registrable Securities without registration
under the Securities Act within the limitation of the exemptions provided by
Rule 144 and Rule 144A under the Securities Act and customarily taken in
connection with sales pursuant to such exemptions. Upon the written request of
any Holder of Registrable Securities, the Company shall deliver to such Holder a
written statement as to whether it has complied with such filing requirements,
unless such a statement has been included in the Company's most recent report
filed pursuant to Section 13 or Section 15(d) of Exchange Act. Notwithstanding
the foregoing, nothing in this Section 7 shall be deemed to require the Company
to register any of its securities (other than the Common Stock) under any
section of the Exchange Act.

                           (b) The Company shall file the reports required to be
filed by it under the Exchange Act and shall comply with all other requirements
set forth in the Exchange Act and the rules and regulations thereunder.

                  Section 8. Miscellaneous.

                           (a) No Conflicting Agreements. The Company is not, as
of the date hereof, a party to, nor shall it, on or after the date of this
Agreement, enter into, any agreement with respect to its securities that
conflicts with the rights granted to the Holders of Registrable Securities in
this Agreement. The Company represents and warrants that the rights granted to
the Holders of Registrable Securities hereunder do not in any way conflict with
the rights granted to the holders of such Company's securities under any other
agreements. Notwithstanding the
                                       16

<PAGE>

foregoing, the Initial Purchasers acknowledges that the Company is obligated,
and may obligate itself from time to time in the future, to register its
securities for other holders.

                           (b) Amendments and Waivers. The provisions of this
Agreement, including the provisions of this sentence, may not be amended,
modified or supplemented, and waivers or consents to departures from the
provisions hereof may not be given, unless the Company has obtained the written
consent of Holders of a majority of the then outstanding Underlying Common Stock
constituting Registrable Securities (with Holders of Notes deemed to be the
Holders, for purposes of this Section, of the number of outstanding shares of
Underlying Common Stock into which such Notes are or would be convertible or
exchangeable as of the date on which such consent is requested). Notwithstanding
the foregoing, a waiver or consent to depart from the provisions hereof with
respect to a matter that relates exclusively to the rights of Holders of
Registrable Securities whose securities are being sold pursuant to a
Registration Statement and that does not directly or indirectly affect the
rights of other Holders of Registrable Securities may be given by Holders of at
least a majority of the Registrable Securities being sold by such Holders
pursuant to such Registration Statement; provided that the provisions of this
sentence may not be amended, modified, or supplemented except in accordance with
the provisions of the immediately preceding sentence. Each Holder of Registrable
Securities outstanding at the time of any such amendment, modification,
supplement, waiver or consent or thereafter shall be bound by any such
amendment, modification, supplement, waiver or consent effected pursuant to this
Section 8(b), whether or not any notice, writing or marking indicating such
amendment, modification, supplement, waiver or consent appears on the
Registrable Securities or is delivered to such Holder.

                           (c) Notices. All notices and other communications
provided for or permitted hereunder shall be made in writing by hand delivery,
by telecopier, by courier guaranteeing overnight delivery or by first-class
mail, return receipt requested, and shall be deemed given (i) when made, if made
by hand delivery, (ii) upon confirmation, if made by telecopier, (iii) one (1)
Business Day after being deposited with such courier, if made by overnight
courier or (iv) on the date indicated on the notice of receipt, if made by
first- class mail, to the parties as follows:

                  (x) if to a Holder of Registrable Securities, at the most
                  current address given by such Holder to the Company in a
                  Notice and Questionnaire or any amendment thereto;

                  (y) if to the Company, to:

                  Xcel Energy Inc.
                  800 Nicollet Mall
                  Minneapolis, MN 55401
                  Attention: General Counsel
                  Telecopy No.: (612) 215-4501

                  (z) if to the Initial Purchasers, to:

                  Merrill Lynch, Pierce, Fenner & Smith Incorporated
                  Four World Financial Center
                  New York, New York 10080
                  Attention: Investment Banking Group

                                       17
<PAGE>
or to such other address as such person may have furnished to the other persons
identified in this Section 8(c) in writing in accordance herewith.

                  (d) Approval of Holders. Whenever the consent or approval of
Holders of a specified percentage of Registrable Securities is required
hereunder, Registrable Securities held by the Company or its affiliates (as such
term is defined in Rule 405 under the Securities Act) (other than the Initial
Purchasers or subsequent Holders of Registrable Securities if such subsequent
Holders are deemed to be such affiliates solely by reason of their holdings of
such Registrable Securities) shall not be counted in determining whether such
consent or approval was given by the Holders of such required percentage.

                  (e) Successors and Assigns. Any person who purchases any
Registrable Securities from the Initial Purchasers shall be deemed, for purposes
of this Agreement, to be an assignee of the Initial Purchasers. This Agreement
shall inure to the benefit of and be binding upon the successors and assigns of
each of the parties and shall inure to the benefit of and be binding upon each
Holder of any Registrable Securities.

                  (f) Counterparts. This Agreement may be executed in any number
of counterparts and by the parties hereto in separate counterparts, each of
which when so executed shall be deemed to be original and all of which taken
together shall constitute one and the same agreement.

                  (g) Headings. The headings in this Agreement are for
convenience of reference only and shall not limit or otherwise affect the
meaning hereof.

                  (h) Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD
TO CONFLICTS OF LAWS PRINCIPLES THEREOF THAT WOULD REQUIRE THE APPLICATION OF
THE LAW OF ANY OTHER JURISDICTION.

                  (i) Severability. If any term, provision, covenant or
restriction of this Agreement is held to be invalid, illegal, void or
unenforceable, the remainder of the terms, provisions, covenants and
restrictions set forth herein shall remain in full force and effect and shall in
no way be affected, impaired or invalidated thereby, and the parties hereto
shall use their best efforts to find and employ an alternative means to achieve
the same or substantially the same result as that contemplated by such term,
provision, covenant or restriction, it being intended that all of the rights and
privileges of the parties shall be enforceable to the fullest extent permitted
by law.

                  (j) Entire Agreement. This Agreement is intended by the
parties as a final expression of their agreement and is intended to be a
complete and exclusive statement of the agreement and understanding of the
parties hereto in respect of the subject matter contained herein and the
registration rights granted by the Company with respect to the Registrable
Securities. Except as provided in the Purchase Agreement, there are no
restrictions, promises, warranties or undertakings, other than those set forth
or referred to herein, with respect to the registration rights granted by the
Company with respect to the Registrable Securities. This Agreement supersedes
all prior agreements and undertakings among the parties with respect to such
registration rights. No party hereto shall have any rights, duties or
obligations other than those specifically set forth in this Agreement. In no
event will such methods of distribution take the form of an underwritten
offering of the Registrable Securities without the prior agreement of the
Company.

                  (k) Termination. This Agreement and the obligations of the
parties hereunder shall terminate upon the end of the Effectiveness Period,
except for any liabilities or obligations under Section 4, 5 or 6 hereof and the
obligations to make payments of and provide for liquidated damages under Section
2(e) hereof to the extent such damages accrue prior to the end of the
Effectiveness Period, each of which shall remain in effect in accordance with
its terms.

                                       18
<PAGE>

                  IN WITNESS WHEREOF, the parties have executed this Agreement
as of the date first written above.

                                              XCEL ENERGY INC.

                                              By: /s/ Benjamin G.S. Fowke III
                                                 ----------------------------
                                                 Benjamin G.S. Fowke III
                                                 Vice President and Treasurer

Confirmed and accepted as of the date first above written:

MERRILL LYNCH, PIERCE, FENNER & SMITH
INCORPORATED

By: /s/ Robert Craig
   --------------------------------------
   Robert Craig
   Managing Director

For itself and as Representative of the other Initial Purchaser named in
Schedule A to the Purchase Agreement.

                                       19<PAGE>
                                                                   EXHIBIT 4.136

                                    AGREEMENT

         AGREEMENT (the "AGREEMENT"), dated as of November 25, 2002, by and
among XCEL ENERGY INC., a Minnesota corporation, with headquarters located at
800 Nicollet Mall, Minneapolis, MN 55401 (the "COMPANY"), and the entities party
hereto (individually, a "BUYER" and collectively, the "BUYERS").

                                    WHEREAS:

         A. The Company and the Buyers entered into a Securities Purchase
Agreement, dated as of November 8, 2002 (the "PURCHASE AGREEMENT");

         B. Pursuant to the terms of the Purchase Agreement, the Buyers
purchased senior convertible notes of the Company (the "FIRST NOTES") in an
aggregate principal amount of $100 million;

         C. The Company consummated a Qualified 144A Offering (as defined in the
First Notes) on November 21, 2002, in which the Company issued an aggregate
principal amount of $230 million of its 7 1/2% Convertible Senior Notes due 2007
(the "144A NOTES") pursuant to the Indenture between the Company and Wells Fargo
Bank Minnesota, National Association, dated as of November 21, 2002 (the
"INDENTURE");

         D. Pursuant to the terms of the First Notes, the Company is now
obligated to provide the Buyers with the Company Optional Redemption
Consideration (as defined in the First Notes);

         E. The Company and the Buyers now desire to amend certain of the terms
and conditions of the First Notes;

         F. Capitalized terms not otherwise defined herein shall have the
meanings attributable to such term in the First Notes;

         NOW THEREFORE, the Company and each Buyer hereby agree that
notwithstanding any provision in the First Notes to the contrary, the Company
and each Buyer hereby agree as follows:

               1. Definitions.

                  (a) The definition of "COMPANY OPTIONAL REDEMPTION DATE" set
forth in Section (10)(c)(ii) of the First Notes shall mean November 25, 2002.

                  (b) The definition of "CASH OPTIONAL REDEMPTION CONSIDERATION"
set forth in Section 28(b) of the First Notes shall be replaced in its entirety
and shall mean each Buyer's pro rata portion of an aggregate amount equal to One
Hundred Seven Million Three Hundred Seventy-Two Thousand Six Hundred Two Dollars
and Seventy-Four Cents ($107,372,602.74). Upon surrender of its First Notes to
the Company or to Company's counsel, each Buyer shall receive on the date hereof
the amount set forth opposite such Buyer's name on

<PAGE>

Exhibit A attached hereto pursuant to the wire transfer instructions set forth
on such Exhibit A. Upon redemption, the parties acknowledge that, pursuant to
the terms of the Purchase Agreement, the Company has no further obligations to
issue Notes or Conversion Shares.

         2. Non-Cash Optional Redemption Consideration. The parties hereto agree
that the following provisions shall apply to the Non-Cash Optional Redemption
Consideration required to be delivered by the Company to the Buyers on the date
hereof pursuant to the terms of the First Notes:

                  (a) At any time and from time to time on or after the date
hereof and on or prior to November 25, 2003 (the "EXERCISE PERIOD"), each of the
Buyers shall have the right (the "PURCHASE RIGHT") to purchase up to its pro
rata portion (based on the principal amount of First Notes each Buyer purchased
in relation to the aggregate principal amount of First Notes issued) of $57.5
million aggregate principal amount of 7 1/2% Convertible Senior Notes of the
Company (the "BUYER NOTES"), which Buyer Notes and any related indenture (the
"BUYER INDENTURE") shall be identical to the 144A Notes and the terms of the
Indenture, other than as set forth herein, and the form of such Buyer Notes and
any Buyer Indenture to be delivered as set forth in Section 2(e) below.

                  (b) During the Exercise Period, a Buyer may exercise on one
occasion or on multiple occasions up to an aggregate of its pro rata portion of
the Purchase Right by (i) delivery of a written notice, in the form of the
notice attached as Exhibit B hereto or a reasonable facsimile thereof (an
"EXERCISE NOTICE"), to the Company of such Buyer's election to exercise its
Purchase Right, which Exercise Notice shall specify the aggregate principal
amount of Buyer Notes to be purchased and the date for the closing (a "CLOSING")
of such exercise, which date shall be five (5) Business Days after delivery of
the Exercise Notice (a "CLOSING DATE"), and (ii) payment to the Company on the
Closing Date of an amount equal to the aggregate principal amount of Buyer Notes
to be purchased (the "PURCHASE PRICE") in cash or delivery of a certified check
or bank draft payable to the order of the Company or wire transfer of
immediately available funds. In the event of any exercise of the rights
represented by the Purchase Right in compliance with this Section 2(b), the
Company shall on the applicable Closing Date issue and deliver to the address as
specified in the Exercise Notice, a Buyer Note or Buyer Notes in such
denominations as may be requested by the applicable Buyer in the Exercise
Notice, registered in the name of such Buyer or its designee, for the aggregate
principal amount of Buyer Notes to which such Buyer shall be entitled upon such
exercise. The time of each Closing shall be 10:00 A.M. Central Time, on the
applicable Closing Date (or such later time or date as is mutually agreed to by
the Company and the Buyer). Each Closing shall occur on the applicable Closing
Date at the offices of Schulte Roth & Zabel LLP, 919 Third Avenue, New York, New
York 10022.

                  (c) If the Company shall fail for any reason or for no reason
to issue to an exercising Buyer on a Closing Date the Buyer Notes being
purchased by such Buyer, the Company shall, in addition to any other remedies
available to such Buyer, be required to pay as additional damages for each day
after a Closing Date such Buyer Notes are not delivered, interest on the
aggregate principal amount of such Buyer Notes at the rate of 12% per annum from
the date such Buyer Notes were due until the aggregate principal amount of such
Buyer Notes are issued in full.

                                       2
<PAGE>

                  (d) Notwithstanding the requirement of Section 2(a) hereof
that the Buyer Notes and any Buyer Indenture be identical to the 144A Notes and
the terms of the Indenture, the parties hereto acknowledge and agree that the
following provisions shall apply to the Buyer Notes and any Buyer Indenture:

                           (i) The issuance date of any Buyer Note shall be the
         date on which such Buyer Note is issued by the Company and the maturity
         date of any Buyer Note shall be the fifth anniversary thereof; and

                           (ii) The Company shall either (A) provide for
         registration rights relating to the Buyer Notes in conjunction with the
         registration rights relating to the 144A Notes or (B) provide similar
         registration rights by filing a registration statement within 90 days
         of a Closing Date which registration statement shall be declared
         effective within 180 days of such Closing Date.

                  (e) The Company agrees to deliver to the Buyers an initial
draft of the form of Buyer Notes and any Buyer Indenture within 10 Business Days
after the date hereof. Upon receipt of such initial drafts, the Company and the
Buyers shall negotiate in good faith the final form of the Buyer Notes and any
Buyer Indenture (both of which shall contain terms substantially identical to
the 144A Notes and the Indenture) and shall finalize such forms within 30
Business Days of the date hereof.

         3. Representations and Warranties.

                  (a) Representations of Buyers. Each Buyer represents and
warrants that this Agreement has been duly and validly authorized, executed and
delivered on behalf of such Buyer and is a valid and binding agreement of such
Buyer enforceable against such Buyer in accordance with its terms, subject as to
enforceability to general principles of equity and to applicable bankruptcy,
insolvency, reorganization, moratorium, liquidation and other similar laws
relating to, or affecting generally, the enforcement of applicable creditors'
rights and remedies. Each Buyer represents that it will acquire the Buyer Notes
for its own account for investment only and not with a view towards, or for
resale in connection with, the public sale or distribution of the Buyer Notes,
except pursuant to sales registered or exempted under the Securities Act of
1933, as amended (the "1933 ACT"); provided, however, that by making the
representations herein, such Buyer does not agree to hold any Buyer Notes for
any minimum or other specific term and reserves the right to dispose of the
Buyer Notes at any time in accordance with or pursuant to a registration
statement or an exemption under the 1933 Act. Each Buyer further represents, by
acceptance hereof, that, as of this date, such Buyer is an "accredited investor"
as such term is defined in Rule 501(a) of Regulation D promulgated by the
Securities and Exchange Commission under the 1933 Act.

                  (b) Representations of the Company. The Company represents and
warrants to each of the Buyers that:

                           (i) Authorization; Enforcement; Validity. The Company
has the requisite corporate power and authority to enter into and perform its
obligations under this Agreement, the Buyer Notes, any Buyer Indenture and each
of the other agreements entered into

                                       3
<PAGE>

by the parties hereto in connection with the transactions contemplated by this
Agreement (collectively, the "TRANSACTION DOCUMENTS") and to issue the Buyer
Notes in accordance with the terms hereof and thereof. The execution and
delivery of the Transaction Documents by the Company and the consummation by the
Company of the transactions contemplated hereby and thereby, including without
limitation the issuance of the Buyer Notes, have been duly authorized by the
Company's Board of Directors and no further consent or authorization is required
by the Company, its Board of Directors or its stockholders. This Agreement and
the other Transaction Documents of even date herewith have been duly executed
and delivered by the Company, and constitute the valid and binding obligations
of the Company enforceable against the Company in accordance with their terms,
except as such enforceability may be limited by general principles of equity or
applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or
similar laws relating to, or affecting generally, the enforcement of creditors'
rights and remedies.

                           (ii) Issuance of Buyer Notes. The Buyer Notes are
duly authorized and, upon issuance in accordance with the terms hereof, shall be
free from all taxes, liens and charges with respect to the issue thereof.
Assuming the accuracy of the representations, warranties and covenants of the
Buyers set forth herein, the issuance by the Company of the Buyer Notes shall be
exempt from registration under the 1933 Act.

                           (iii) No Conflicts. The execution, delivery and
performance of the Transaction Documents by the Company and the consummation by
the Company of the transactions contemplated hereby and thereby (including,
without limitation, the issuance of the Buyer Notes) will not (i) result in a
violation of the certificate of incorporation, any certificate of designations,
preferences and rights of any outstanding series of preferred stock or bylaws of
the Company or any subsidiary of the Company or (ii) conflict with, or
constitute a default (or an event which with notice or lapse of time or both
would become a default) under, or give to others any rights of termination,
amendment, acceleration or cancellation of, any material agreement, indenture or
instrument to which the Company or any of its subsidiaries is a party, or (iii)
result in a violation of any law, rule, regulation, order, judgment or decree
(including federal and state utilities and securities laws and regulations and
the rules and regulations of the Principal Market) applicable to the Company or
any of its subsidiaries or by which any property or asset of the Company or any
of its subsidiaries is bound or affected.

                           (iv) Consents. The Company is not required to obtain
any consent, authorization or order of, or make any filing or registration with,
any court, governmental agency or any regulatory or self-regulatory agency or
any other Person in order for it to execute, deliver or perform any of its
obligations under or contemplated by the Transaction Documents, in each case in
accordance with the terms hereof or thereof, except for such consents,
authorizations, orders, filings and registrations which have been obtained or
effected on or prior to the date hereof.

                           (v) No General Solicitation; No Integrated Offering.
Neither the Company, nor any of its affiliates, nor any Person acting on its or
their behalf, has engaged in any form of general solicitation or general
advertising (within the meaning of Regulation D under the 1933 Act) in
connection with entering into this Agreement or the offer or sale of the Buyer
Notes. None of the Company, its subsidiaries, any of their affiliates, and any
Person acting on their behalf has, directly or indirectly, made any offers or
sales of any security or

                                       4
<PAGE>

solicited any offers to buy any security, under circumstances that would require
registration of the Purchase Right or any of the Buyer Notes under the 1933 Act
or cause the entering into of this Agreement or the issuance of the Buyer Notes
to be integrated with prior offerings by the Company for purposes of the 1933
Act or any applicable stockholder approval provisions, including, without
limitation, under the rules and regulations of any exchange or automated
quotation system on which any of the securities of the Company are listed or
designated. None of the Company, its subsidiaries, their affiliates and any
Person acting on their behalf will take any action or steps referred to in the
preceding sentence that would require such registration under the 1933 Act or
cause entering into this Agreement or the offering or issuance of the Purchase
Right or the Buyer Notes to be integrated with other offerings.

         4. Miscellaneous.

                  (a) Governing Law; Jurisdiction; Jury Trial. All questions
concerning the construction, validity, enforcement and interpretation of this
Agreement shall be governed by the internal laws of the State of Illinois,
without giving effect to any choice of law or conflict of law provision or rule
(whether of the State of Illinois or any other jurisdictions) that would cause
the application of the laws of any jurisdictions other than the State of
Illinois. Each party hereby irrevocably submits to the non-exclusive
jurisdiction of the state and federal courts sitting in the City of Chicago for
the adjudication of any dispute hereunder or in connection herewith or with any
transaction contemplated hereby or discussed herein, and hereby irrevocably
waives, and agrees not to assert in any suit, action or proceeding, any claim
that it is not personally subject to the jurisdiction of any such court, that
such suit, action or proceeding is brought in an inconvenient forum or that the
venue of such suit, action or proceeding is improper. Each party hereby
irrevocably waives personal service of process and consents to process being
served in any such suit, action or proceeding by mailing a copy thereof to such
party at the address for such notices to it under this Agreement and agrees that
such service shall constitute good and sufficient service of process and notice
thereof. Nothing contained herein shall be deemed to limit in any way any right
to serve process in any manner permitted by law. EACH PARTY HEREBY IRREVOCABLY
WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE
ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION WITH OR ARISING OUT OF
THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY.

                  (b) Counterparts. This Agreement may be executed in two or
more identical counterparts, all of which shall be considered one and the same
agreement and shall become effective when counterparts have been signed by each
party and delivered to the other party; provided that a facsimile signature
shall be considered due execution and shall be binding upon the signatory
thereto with the same force and effect as if the signature were an original, not
a facsimile signature.

                  (c) Severability. If any provision of this Agreement shall be
invalid or unenforceable in any jurisdiction, such invalidity or
unenforceability shall not affect the validity or enforceability of the
remainder of this Agreement in that jurisdiction or the validity or
enforceability of any provision of this Agreement in any other jurisdiction.

                                       5
<PAGE>

                  (d) Amendments. No provision of this Agreement may be amended
other than by an instrument in writing signed by the Company and the Buyers, and
no provision hereof may be waived other than by an instrument in writing signed
by the party against whom enforcement is sought. No such amendment shall be
effective to the extent that it applies to less than all of the Buyers. No
consideration shall be offered or paid to any Person to amend or consent to a
waiver or modification of any provision of any of the Transaction Documents
unless the same consideration also is offered to all of the parties to the
Transaction Documents.

                  (e) Successors and Assigns. This Agreement shall be binding
upon and inure to the benefit of the parties and their respective successors and
assigns.

                  (f) Further Assurances. Each party shall do and perform, or
cause to be done and performed, all such further acts and things, and shall
execute and deliver all such other agreements, certificates, instruments and
documents, as the other party may reasonably request in order to carry out the
intent and accomplish the purposes of this Agreement and the consummation of the
transactions contemplated hereby.

                  [Remainder of Page Intentionally Left Blank.]

                                       6
<PAGE>

         IN WITNESS WHEREOF, each Buyer and the Company have caused this
Agreement to be duly executed as of the date first written above.

COMPANY:                      BUYERS:

XCEL ENERGY INC.              CITADEL EQUITY FUND LTD.
                                     By: Citadel Limited Partnership, Portfolio
                                         Manager
                                     By: GLB Partners, L.P., its General Partner
                                     By: Citadel Investment Group, L.L.C., its
                                         General Partner
By: /s/ Benjamin G.S. Fowke III
   ------------------------------
   Name:  Benjamin G.S. Fowke III
   Title: Vice President
          and Treasurer      By: /s/ Kenneth A. Simpler
                                 -----------------------------------------------
                                 Name:  Kenneth A. Simpler
                                 Title:    Managing Director

                              CITADEL CREDIT TRADING LTD.

                                     By: Citadel Limited Partnership, Portfolio
                                         Manager
                                     By: GLB Partners, L.P., its General Partner
                                     By: Citadel Investment Group, L.L.C., its
                                         General Partner

                              By: /s/ Kenneth A. Simpler
                                 ------------------------------------------
                                 Name:  Kenneth A. Simpler
                                 Title:    Managing Director

                              JACKSON INVESTMENT FUND LTD.

                                     By: Citadel Limited Partnership, Portfolio
                                         Manager
                                     By: GLB Partners, L.P., its General Partner
                                     By: Citadel Investment Group, L.L.C., its
                                         General Partner

                              By: /s/ Kenneth A. Simpler
                                 ------------------------------------------
                                 Name:  Kenneth A. Simpler
                                 Title:    Managing Director

                                       7
<PAGE>

                                                                       EXHIBIT A

                               SCHEDULE OF BUYERS

<TABLE>
<CAPTION>
                                                                    CASH OPTIONAL
                                                                      REDEMPTION
           BUYER                 ADDRESS AND FACSIMILE NUMBER       CONSIDERATION                  WIRE INSTRUCTIONS
----------------------------  ------------------------------------  -------------          -------------------------------------
<S>                           <C>                                   <C>                    <C>
Citadel Equity Fund Ltd.      c/o Citadel Investment Group,         $85,898,082.18         Bank of New York
                              L.L.C.                                                       ABA 021000018
                              225 West Washington Street                                   Swift: IRVTUS3N
                              Chicago, Illinois 60606                                      Acct:8900-472-545
                              Attention:  Kenneth A. Simpler                               ACCT NAME: CITADEL EQUITY FUND LTD.
                              Facsimile: (312) 338-0780
                              Telephone: (312) 696-2100
                              Residence: Cayman Islands

Citadel Credit Trading Ltd.   c/o Citadel Investment Group,         $10,737,260.28         Bank of New York
                              L.L.C.                                                       ABA 021000018
                              225 West Washington Street                                   Swift: IRVTUS3N
                              Chicago, Illinois 60606                                      Acct:8900-472-936
                              Attention:  Kenneth A. Simpler                               ACCT NAME: CITADEL CREDIT TRADING LTD.
                              Facsimile: (312) 338-0780
                              Telephone: (312) 696-2100
                              Residence: Cayman Islands

Jackson Investment Fund       c/o Citadel Investment Group,         $10,737,260.28         Bank of New York
Ltd.                          L.L.C.                                                       ABA 021000018
                              225 West Washington Street                                   Swift: IRVTUS3N
                              Chicago, Illinois 60606                                      Acct:8900-419-253
                              Attention:  Kenneth A. Simpler                               ACCT NAME: JACKSON INVESTMENT
                              Facsimile: (312) 338-0780                                               FUND LTD.
                              Telephone: (312) 696-2100
                              Residence: Cayman Islands
</TABLE>

<PAGE>

                                                                       EXHIBIT B

                                 EXERCISE NOTICE

                                XCEL ENERGY INC.

The undersigned holder hereby exercises the right to purchase an aggregate
principal amount of $_________ of the 7 1/2% Convertible Senior Notes (the
"BUYER NOTES") of Xcel Energy Inc., a Minnesota corporation (the "COMPANY"),
pursuant to the Purchase Right granted to the undersigned in that certain
agreement dated as of November 25, 2002 by and among the Company, the
undersigned and the other parties thereto (the "AGREEMENT"). The Closing Date
(as defined in the Agreement) shall be ______, __ 200_.

Please issue the Buyer Notes being purchased hereunder in the following name(s)
and denominations:

-------------------------

-------------------------

-------------------------

Please deliver the Buyer Notes to the following address:

-------------------------

-------------------------

-------------------------

Date: _______________ __, 200_

Name of Buyer: _____________________
By:________________________________
Name:_____________________________
Title:______________________________

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