Document:

artdimen10q63010x10_8102010.htm

 

EXHIBIT 10.1

 

PROMISSORY NOTE

 

	
$250,000.00

	
Englewood, Colorado

	  	
June 1, 2010

 

FOR VALUE RECEIVED, and at the times hereinafter specified, the undersigned (“Maker”) hereby promises to pay to the order of Spyglass Investment Partnership (hereinafter referred to, together with each subsequent holder hereof, as “Holder”), at such address as may be designated from time to time hereafter by any Holder, the principal sum of TWO HUNDRED FIFTY THOUSAND AND NO/100THS DOLLARS ($250,000.00), or so much thereof as shall have been advanced to or for the benefit of Maker, whichever is less, together with interest on the principal balance outstanding from time to time, as hereinafter provided, in lawful money of the United States of America.

 

The term of this note shall commence as of the date hereof and, if not sooner paid, the entire unpaid principal indebtedness, all accrued and unpaid interest, and all other sums payable in connection with this note shall be due and payable on December 31, 2010 (the “Maturity Date”).  In no event shall the maturity date of this note be later than December 31, 2010.

 

During the period commencing on the date hereof and continuing until this note is paid in full, (a) interest on the principal balance of this note shall accrue at the rate of 15% per annum and (b) interest payments shall be made every 90 days, beginning 90 days for the date hereof.  Interest shall be computed on the basis of a 360-day year, calculated for the actual number of days elapsed.

 

Whenever any payment to be made hereunder is due on a day other than a Business Day, such payment may be made on the next succeeding Business Day, and such extension of time shall in such case be included in the computation of payment of interest.  “Business Day” shall mean a day on which Holder’s offices are open for business in Denver, Colorado.

 

Maker may prepay this note in whole or in part.

 

All payments hereunder shall, at Holder’s option, be applied first to the payment of accrued interest at the rate specified below, if any, second, to accrued interest first specified above, and the balance applied in reduction of the principal amount.  If any payment is not paid when due hereunder, then the entire outstanding balance hereunder, including the interest component of the delinquent payment, shall bear interest from the date such payment was due until such payment is paid at a rate equal to 24.00% per annum (the “Default Rate”).  In addition, upon the maturity date hereof, by acceleration or otherwise, the entire balance of principal, interest, and other sums due shall bear interest from such maturity date until paid at the Default Rate.

 

 

  

Exhibit 10.3 Page 1

  

 

Any default in payment of any sum required hereunder or performance of any other covenant or agreement herein contained shall constitute an “Event of Default” hereunder and under each document securing this note, and any Event of Default under any of such documents securing this Note shall constitute an Event of Default hereunder.  Any default in payment or other terms of any other indebtedness owed by Maker to Holder shall constitute an Event of Default hereunder, and any default hereunder shall constitute a default under any other such indebtedness.  Upon the occurrence of any Event of Default, the entire balance of principal, accrued interest, and other sums owing hereunder shall, at the option of Holder, become at once due and payable without notice or demand.

 

Maker and all parties now or hereafter liable for the payment hereof, primarily or secondarily, directly or indirectly, and whether as endorser, guarantor, surety, or otherwise, hereby severally (a) waive presentment, demand, protest, notice of protest and/or dishonor, and all other demands or notices of any sort whatever with respect to this note, (b) waive any defenses that might be available to a surety or accommodation maker, (c) consent to impairment or release of collateral, extensions of time for payment, and acceptance of partial payments before, at, or after maturity, (d) waive any right to require Holder to proceed against any security for this note before proceeding hereunder, (e) consent to the release of any other party liable hereunder, without diminishing or in any way affecting their liability hereunder, and (f) agree to pay all costs and expenses, including attorneys’ fees and expenses, which may be incurred in the collection of this note or any part thereof or in preserving, securing possession of, and realizing upon any security for this note.

 

The provisions of this note and of all agreements between Maker and Holder are hereby expressly limited so that in no contingency or event whatever shall the amount paid, or agreed to be paid, to Holder for the use, forbearance, or detention of the money to be loaned hereunder exceed the maximum amount permissible under applicable law.  If from any circumstance whatever, the performance or fulfillment of any provision hereof or of any other agreement between Maker and Holder shall, at the time performance or fulfillment of such provision is due, involve or purport to require any payment in excess of the limits prescribed by law, then the obligation to be performed or fulfilled is hereby reduced to the limit of such validity, and if from any circumstance whatever Holder should ever receive as interest an amount which would exceed the highest lawful rate, the amount which would be excessive interest shall be applied to the reduction of the principal balance owing hereunder (or, at Holder’s option, be paid over to Maker) and shall not be counted as interest.

 

If any provision hereof or of any other document securing or related to the indebtedness evidenced hereby is, for any reason and to any extent, invalid or unenforceable, then neither the remainder of the document in which such provision is contained, nor the application of the provision to other persons, entities, or circumstances, nor any other document referred to herein, shall be affected thereby, but instead shall be enforceable to the maximum extent permitted by law.

 

Each provision of this note shall be and remain in full force and effect notwithstanding any negotiation or transfer hereof to any other Holder or participant.

 

 

  

Exhibit 10.3 Page 2

  

 

MAKER HEREBY WAIVES THE RIGHT TO A TRIAL BY JURY IN ANY DISPUTE ARISING IN CONNECTION WITH THIS NOTE, OR IN ANY WAY RELATED TO THE NEGOTIATION, ADMINISTRATION, MODIFICATION, EXTENSION OR COLLECTION OF THE INDEBTEDNESS EVIDENCED HEREBY.  MAKER STATES THAT IT HAS CONFERRED SPECIFICALLY WITH HOLDER WITH RESPECT TO THIS WAIVER, AND MAKER HAS AGREED TO THIS WAIVER AFTER CONSULTATION WITH ITS COUNSEL AND WITH FULL UNDERSTANDING OF THE IMPLICATIONS HEREOF.

 

Regardless of the place of its execution, this note shall be construed and enforced in accordance with the laws of the State of Colorado.

 

 

	  	  
	  	
ART DIMENSIONS, INC.

	  	  
	  By:   	
 /s/ Kathy Sheehan

	  	
Its: Chief Financial Officer

 

 

 

 

 

 

 

 

 

Exhibit 10.3 Page 3stratum10q63010ex101_8910.htm

 

 

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

 

  

 

  

 

  

 

  

.Exhibit 4.01

 

SUPPLEMENTAL
TRUST INDENTURE

 

FROM

 

NORTHERN
STATES POWER COMPANY

(A MINNESOTA CORPORATION)

 

TO

 

THE BANK OF
NEW YORK MELLON TRUST COMPANY, N.A.

 

DATED
AUGUST 1, 2010

 

SUPPLEMENTAL
TO TRUST INDENTURE

DATED FEBRUARY 1, 1937

 

AND

 

SUPPLEMENTAL
AND RESTATED 

TRUST INDENTURE

DATED MAY 1, 1988

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  PARTIES

  	
   

  	
  1

  
	
   

  	
   

  	
   

  
	
  RECITALS

  	
   

  	
  1

  
	
   

  	
   

  	
   

  
	
  ARTICLE I

  	
  SPECIFIC
  SUBJECTION OF ADDITIONAL PROPERTY TO THE LIEN OF THE INDENTURE

  	
  10

  
	
   

  	
   

  	
   

  
	
  Section 1.01

  	
   

  	
  10

  
	
   

  	
   

  	
   

  
	
  ARTICLE II

  	
  FORM AND
  EXECUTION OF SERIES 2015 BONDS AND SERIES 2040 BONDS

  	
  11

  
	
   

  	
   

  	
   

  
	
  Section 2.01

  	
   

  	
  11

  
	
  Section 2.02

  	
   

  	
  13

  
	
  Section 2.03

  	
   

  	
  15

  
	
  Section 2.04

  	
   

  	
  17

  
	
  Section 2.05

  	
   

  	
  17

  
	
  Section 2.06

  	
   

  	
  17

  
	
  Section 2.07

  	
   

  	
  17

  
	
   

  	
   

  	
   

  
	
  ARTICLE III

  	
  APPOINTMENT OF AUTHENTICATING AGENT

  	
  20

  
	
   

  	
   

  	
   

  
	
  Section 3.01

  	
   

  	
  20

  
	
  Section 3.02

  	
   

  	
  20

  
	
  Section 3.03

  	
   

  	
  21

  
	
  Section 3.04

  	
   

  	
  22

  
	
   

  	
   

  	
  23

  
	
  ARTICLE IV

  	
  FINANCING
  STATEMENT TO COMPLY WITH THE UNIFORM COMMERCIAL CODE

  	
  23

  
	
   

  	
   

  	
   

  
	
  Section 4.01

  	
   

  	
  23

  
	
  Section 4.02

  	
   

  	
  23

  
	
  Section 4.03

  	
   

  	
  23

  
	
  Section 4.04

  	
   

  	
  24

  
	
  Section 4.05

  	
   

  	
  24

  
	
  Section 4.06

  	
   

  	
  26

  
	
   

  	
   

  	
   

  
	
  ARTICLE V

  	
  MISCELLANEOUS

  	
  26

  
	
   

  	
   

  	
   

  
	
  Section 5.01

  	
   

  	
  26

  
	
  Section 5.02

  	
   

  	
  26

  
	
  Section 5.03

  	
   

  	
  26

  
	
  Section 5.04

  	
   

  	
  26

  
	
  Section 5.05

  	
   

  	
  26

  
	
  Section 5.06

  	
   

  	
  27

  
	
  SCHEDULE A — PROPERTIES

  	
   

  
				

 

i

 

Supplemental Trust
Indenture,  made effective as of the 1st day of
August, 2010, by and between NORTHERN STATES POWER COMPANY (formerly Northern
Power Corporation), a corporation duly organized and existing under and by
virtue of the laws of the State of Minnesota, having its principal office in
the City of Minneapolis, Minnesota (the “Company”), party of the first part,
and THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A., a national banking
association organized and existing under and by virtue of the laws of the
United States, having its principal office in the City of Chicago, Illinois
(as successor trustee to Harris Trust and Savings Bank and BNY Midwest Trust
Company), as trustee (the “Trustee”), party of the second part;

 

WITNESSETH:

 

WHEREAS, a predecessor in
interest to the Company, Xcel Energy Inc. (formerly Northern States Power
Company), a corporation duly organized and existing under and by virtue of the
laws of the State of Minnesota (the “Predecessor Company”) has heretofore
executed and delivered to the Trustee its Trust Indenture (the “1937 Indenture”),
made as of February 1, 1937, whereby the Predecessor Company granted,
bargained, sold, warranted, released, conveyed, assigned, transferred,
mortgaged, pledged, set over and confirmed to the Trustee and to its respective
successors in trust, all property, real, personal and mixed then-owned or
thereafter acquired or to be acquired by the Predecessor Company (except as
therein excepted from the lien thereof) and subject to the rights reserved by
the Predecessor Company in and by the provisions of the 1937 Indenture, to be
held by said Trustee in trust in accordance with the provisions of the 1937
Indenture for the equal pro rata benefit and security of all and each of the
bonds issued and to be issued thereunder in accordance with the provisions
thereof; and

 

WHEREAS, the Predecessor
Company heretofore has executed and delivered to the Trustee a Supplemental
Trust Indenture, made as of June 1, 1942, whereby the Predecessor Company
conveyed, assigned, transferred, mortgaged, pledged, set over and confirmed to
the Trustee, and its respective successors in said trust, additional property
acquired by it subsequent to the date of the 1937 Indenture; and

 

WHEREAS, the Predecessor
Company heretofore has executed and delivered to the Trustee the following
additional Supplemental Trust Indentures which, in addition to conveying,
assigning, transferring, mortgaging, pledging, setting over and confirming to
the Trustee, and its respective successors in said trust, additional property
acquired by it subsequent to the preparation of the next preceding Supplemental
Trust Indenture and adding to the covenants, conditions and agreements of the
1937 Indenture certain additional covenants, conditions and agreements to be
observed by the Predecessor Company, created the following series of First
Mortgage Bonds:

 

 

	
  Date of Supplemental

  Trust
  Indenture

  	
   

  	
  Designation
  of Series

  
	
   

  	
   

  	
   

  
	
  February 1, 1944

  	
   

  	
  Series due
  February 1, 1974 (retired)

  
	
  October 1, 1945

  	
   

  	
  Series due
  October 1, 1975 (retired)

  
	
  July 1, 1948

  	
   

  	
  Series due
  July 1, 1978 (retired)

  
	
  August 1, 1949

  	
   

  	
  Series due
  August 1, 1979 (retired)

  
	
  June 1, 1952

  	
   

  	
  Series due
  June 1, 1982 (retired)

  
	
  October 1, 1954

  	
   

  	
  Series due
  October 1, 1984 (retired)

  
	
  September 1, 1956

  	
   

  	
  Series due 1986
  (retired)

  
	
  August 1, 1957

  	
   

  	
  Series due
  August 1, 1987 (redeemed)

  
	
  July 1, 1958

  	
   

  	
  Series due
  July 1, 1988 (retired)

  
	
  December 1, 1960

  	
   

  	
  Series due
  December 1, 1990 (retired)

  
	
  August 1, 1961

  	
   

  	
  Series due
  August 1, 1991 (retired)

  
	
  June 1, 1962

  	
   

  	
  Series due
  June 1, 1992 (retired)

  
	
  September 1, 1963

  	
   

  	
  Series due
  September 1, 1993 (retired)

  
	
  August 1, 1966

  	
   

  	
  Series due
  August 1, 1996 (redeemed)

  
	
  June 1, 1967

  	
   

  	
  Series due
  June 1, 1995 (redeemed)

  
	
  October 1, 1967

  	
   

  	
  Series due
  October 1, 1997 (redeemed)

  
	
  May 1, 1968

  	
   

  	
  Series due
  May 1, 1998 (redeemed)

  
	
  October 1, 1969

  	
   

  	
  Series due
  October 1, 1999 (redeemed)

  
	
  February 1, 1971

  	
   

  	
  Series due
  March 1, 2001 (redeemed)

  
	
  May 1, 1971

  	
   

  	
  Series due
  June 1, 2001 (redeemed)

  
	
  February 1, 1972

  	
   

  	
  Series due
  March 1, 2002 (redeemed)

  
	
  January 1, 1973

  	
   

  	
  Series due
  February 1, 2003 (redeemed)

  
	
  January 1, 1974

  	
   

  	
  Series due
  January 1, 2004 (redeemed)

  
	
  September 1, 1974

  	
   

  	
  Pollution Control
  Series A (redeemed)

  
	
  April 1, 1975

  	
   

  	
  Pollution Control
  Series B (redeemed)

  
	
  May 1, 1975

  	
   

  	
  Series due
  May 1, 2005 (redeemed)

  
	
  March 1, 1976

  	
   

  	
  Pollution Control
  Series C (retired)

  
	
  June 1, 1981

  	
   

  	
  Pollution Control
  Series D, E and F (redeemed)

  
	
  December 1, 1981

  	
   

  	
  Series due
  December 1, 2011 (redeemed)

  
	
  May 1, 1983

  	
   

  	
  Series due
  May 1, 2013 (redeemed)

  
	
  December 1, 1983

  	
   

  	
  Pollution Control
  Series G (redeemed)

  
	
  September 1, 1984

  	
   

  	
  Pollution Control
  Series H (redeemed)

  
	
  December 1, 1984

  	
   

  	
  Resource Recovery
  Series I (redeemed)

  
	
  May 1, 1985

  	
   

  	
  Series due
  June 1, 2015 (redeemed)

  
	
  September 1, 1985

  	
   

  	
  Pollution Control
  Series J, K and L (redeemed)

  
	
  July 1, 1989

  	
   

  	
  Series due
  July 1, 2019 (redeemed)

  
	
  June 1, 1990

  	
   

  	
  Series due
  June 1, 2020 (redeemed)

  
	
  October 1, 1992

  	
   

  	
  Series due
  October 1, 1997 (retired)

  
	
  April 1, 1993

  	
   

  	
  Series due
  April 1, 2003 (retired)

  
	
  December 1, 1993

  	
   

  	
  Series due
  December 1, 2000 (retired), and December 1, 2005 (retired)

  
	
  February 1, 1994

  	
   

  	
  Series due
  February 1, 1999 (retired)

  
	
  October 1, 1994

  	
   

  	
  Series due
  October 1, 2001 (retired)

  

 

2

 

	
  Date of Supplemental

  Trust
  Indenture

  	
   

  	
  Designation
  of Series

  
	
   

  	
   

  	
   

  
	
  June 1, 1995

  	
   

  	
  Series due
  July 1, 2025

  
	
  April 1, 1997

  	
   

  	
  Pollution Control
  Series M (redeemed), N, O and P

  
	
  March 1, 1998

  	
   

  	
  Series due
  March 1, 2003 (retired), and  March 1, 2028

  
	
  May 1, 1999

  	
   

  	
  Resource Recovery
  Series Q (retired)

  
	
  June 1, 2000

  	
   

  	
  Resource Recovery
  Series R (retired); and

  

 

WHEREAS, on August 18, 2000, New Centuries
Energies, Inc. was merged with and into the Predecessor Company and the
Predecessor Company changed its corporate name from Northern States Power
Company to Xcel Energy Inc.; and

 

WHEREAS, pursuant to an Assignment and Assumption
Agreement dated as of August 18, 2000 between the Predecessor Company and
the Company, substantially all the assets of the Predecessor Company (other
than the stock of the Predecessor Company’s subsidiaries) were conveyed to, and
substantially all the liabilities of the Predecessor Company, including
liabilities created under the Indenture (as hereinafter defined), were assumed
by, the Company (the “Assignment”); and

 

WHEREAS, pursuant to the Supplemental Trust
Indenture dated as of August 1, 2000 among the Predecessor Company, the
Company and Harris Trust and Savings Bank, as trustee, the requirements and
conditions precedent set forth in the Original Indenture and the Restated
Indenture (each as hereinafter defined) with respect to the Assignment were
satisfied; and

 

WHEREAS, the Company
heretofore has executed and delivered to the Trustee the following additional
Supplemental Trust Indentures, which, in addition to conveying, assigning,
transferring, mortgaging, pledging, setting over and confirming to the Trustee,
and its respective successors in said trust, additional property acquired by it
(or, as the case may be, the Predecessor Company) subsequent to the preparation
of the next preceding Supplemental Trust Indenture and adding to the covenants,
conditions and agreements of the 1937 Indenture certain additional covenants,
conditions and agreements to be observed by the Company, created the following
series of First Mortgage Bonds:

 

	
  Date of Supplemental

  Trust Indenture

  	
   

  	
  Designation
  of Series

  
	
   

  	
   

  	
   

  
	
  June 1, 2002

  	
   

  	
  Series due
  August 15, 2003 (retired)

  
	
  July 1, 2002

  	
   

  	
  Pollution Control
  Series S

  
	
  August 1, 2002

  	
   

  	
  Series A and
  Series B due August 28, 2012

  
	
  May 1, 2003

  	
   

  	
  Series due
  2004, extendible through 2006 (retired)

  
	
  August 1, 2003

  	
   

  	
  Series due
  August 1, 2006 (retired) and Series due August 1, 2010
  (retired)

  
	
  July 1, 2005

  	
   

  	
  Series due
  July 15, 2035

  
	
  May 1, 2006

  	
   

  	
  Series due
  June 1, 2036

  
	
  June 1, 2007

  	
   

  	
  Series due
  July 1, 2037

  
	
  March 1, 2008

  	
   

  	
  Series due
  March 1, 2018

  
	
  November 1, 2009

  	
   

  	
  Series due
  November 1, 2039

  

 

3

 

WHEREAS, the 1937
Indenture and all of the foregoing Supplemental Trust Indentures are referred
to herein collectively as the “Original Indenture”; and

 

WHEREAS, the Predecessor
Company heretofore has executed and delivered to the Trustee a Supplemental and
Restated Trust Indenture, dated May 1, 1988 (the “Restated Indenture”),
which, in addition to conveying, assigning, transferring, mortgaging, pledging,
setting over and confirming to the Trustee, and its respective successors in
said trust, additional property acquired by it subsequent to the preparation of
the next preceding Supplemental Trust Indenture, amended and restated the
Original Indenture (except for those Supplemental Trust Indentures executed
after May 1, 1988); and

 

WHEREAS, the Restated
Indenture became effective and operative on July 20, 2005; and

 

WHEREAS, the Original
Indenture, the Restated Indenture and all trust indentures supplemental thereto
are referred to herein collectively as the “Indenture”; and

 

WHEREAS, pursuant to the Agreement of Resignation,
Appointment and Acceptance dated as of May 1, 2002 among the Company, BNY
Midwest Trust Company, as successor trustee, and Harris Trust and Savings Bank,
BNY Midwest Trust Company accepted the rights, powers, duties and obligations
of the trustee under the Indenture effective as of May 9, 2002; and

 

WHEREAS, pursuant to the Transfer and Assumption
Agreement dated as of January 1, 2007 between BNY Midwest Trust Company
and The Bank of New York Trust Company, N.A., The Bank of New York Trust
Company accepted the rights, titles and interests of the trustee under the
Indenture effective as of January 1, 2007; and

 

WHEREAS, the Indenture
provides that bonds may be issued thereunder in one or more series, each series
to have such distinctive designation as the Board of Directors of the Company
may select for such series; and

 

WHEREAS, the Company is
desirous of providing for the creation of (a) a new series of First
Mortgage Bonds, said new series of bonds to be designated “First Mortgage
Bonds, Series due August 15, 2015 (the “Series 2015 Bonds”)” and
(b) a new series of First Mortgage Bonds, said new series to be designated
“First Mortgage Bonds, Series due August 15, 2040 (the “Series 2040
Bonds” and, collectively with the Series 2015 Bonds, the “Bonds”)  the bonds of each series to be issued as registered bonds
without coupons in denominations of a multiple of $1,000, and the bonds of each
series to be substantially in the form and of the tenor following with the
redemption prices inserted therein in conformity with the provisions of Section 2.03
hereof, to-wit:

 

4

 

(Form of Series 2015
Bonds and Series 2040 Bonds)

NORTHERN STATES POWER COMPANY

(Incorporated under the laws of the State of Minnesota)

First Mortgage Bond

Series due August 15, [2015] [2040]

 

	
  No.

  	
  $

  

 

 

[Unless
this certificate is presented by an authorized representative of The Depository
Trust Company, a New York corporation, to the Company or its agent for
registration of transfer, exchange or payment, and any certificate issued is
registered in the name of Cede & Co. or such other name as is
requested by an authorized representative of The Depository Trust Company (and
any payment is made to Cede & Co. or to such other entity as is
requested by an authorized representative of The Depository Trust Company), ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON
IS WRONGFUL since the registered owner hereof, Cede & Co., has an
interest herein.]*

 

NORTHERN STATES POWER
COMPANY, a corporation organized and existing under the laws of the State of
Minnesota (the “Company”), for value received, hereby promises to pay to
[                          ]
or its registered assigns, at the office of the Trustee, in the City of Chicago, Illinois,
or, at the option of the registered owner, at the agency of the Company in the
Borough of Manhattan, City and State of New York, an amount equal to
[                                            ]
Dollars in lawful money of the United States of America, on the 15th day of
August, [2015]**
[2040]*** and to pay
interest hereon from the date hereof at the rate of [1.950]** [4.850]***
percent per annum, in like money, until the Company’s obligation with respect
to the payment of such principal sum shall be discharged; said interest being
payable at the option of the person entitled to such interest either at the
office of the Trustee, in Chicago, Illinois, or at the agency of the
Company in the Borough of Manhattan, City and State of New York, on the 15th
day of February and on the 15th day of August in each year,
commencing February 15, 2011 provided that as long as there is no existing
default in the payment of interest and except for the payment of defaulted
interest, the interest payable on any February 15 or August 15 will
be paid to the person in whose name this bond was registered at the close of
business on the record date (the February 1 prior to such February 15
or the August 1 prior to such August 15 (whether or not a business
day)).  If any interest payment date or date on which the
principal of this bond is required to be paid is not a business day, then
payment of principal, premium or interest need not be made on such date but may
be made on the next succeeding business day with the same force and effect as
if made on such interest payment date or date on which the principal of this
bond is required to be paid and, in the case of timely payment thereof, no
interest shall accrue for the period from and after such interest payment date
or the date on which the principal of this bond is required to be paid.  The term “business day” shall mean any day other
than a Saturday or Sunday or a day on which the offices of the Trustee in the
City of Chicago, Illinois, are closed pursuant to authorization of law.

 

* This legend to be
included if the Bonds are issued as a global bond in book-entry form.

** To be inserted in
Series 2015 Bonds.

*** To be inserted
in Series 2040 Bonds.

 

5

 

[EXCEPT
UNDER THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE, THESE GLOBAL BONDS MAY NOT
BE TRANSFERRED EXCEPT AS A WHOLE BY THE REGISTERED DEPOSITORY OR BY A NOMINEE
OF THE REGISTERED DEPOSITORY TO THE REGISTERED DEPOSITORY, ANOTHER NOMINEE OF
THE REGISTERED DEPOSITORY, A SUCCESSOR OF THE REGISTERED DEPOSITORY OR A
NOMINEE OF SUCH SUCCESSOR.]*

 

This bond is one of a
duly authorized issue of bonds of the Company, of the series and designation
indicated on the face hereof, which issue of bonds consists, or may consist, of
several series of varying denominations, dates and tenor, all issued and to be
issued under and equally secured (except insofar as a sinking fund, or similar
fund, established in accordance with the provisions of the Indenture may afford
additional security for the bonds of any specific series) by a Trust Indenture
dated February 1, 1937 (the “1937 Indenture”), as supplemented by 60
supplemental trust indentures (collectively, the “Supplemental Indentures”), a
Supplemental and Restated Trust Indenture dated May 1, 1988 (the “Restated
Indenture”) and a new supplemental trust indenture for the bonds of this series
(the “Supplemental Trust Indenture”), executed by the Company to THE BANK OF
NEW YORK MELLON TRUST COMPANY, N.A. (as successor trustee to Harris Trust and
Savings Bank and BNY Midwest Trust Company), as trustee (the “Trustee”).  The 1937 Indenture, as supplemented by the
Supplemental Indentures, the Restated Indenture and the Supplemental Trust
Indenture, is referred to herein as the “Indenture.”  The Restated Indenture amends and restates
the 1937 Indenture and certain of the Supplemental Indentures and became
effective and operative on July 20,
2005.  Reference hereby is made to the
Indenture for a description of the property mortgaged and pledged, the nature
and extent of the security, the rights of the holders of the bonds as to such
security and the terms and conditions upon which the bonds may be issued under
the Indenture and are secured.  The
principal hereof may be declared or may become due on the conditions, in the
manner and at the time set forth in the Indenture upon the happening of a
default as provided in the Indenture.

 

With the consent of the
Company and to the extent permitted by and as provided in the Indenture, the
rights and obligations of the Company and of the holders of the bonds and the
terms and provisions of the Indenture and of any instruments supplemental
thereto may be modified or altered by affirmative vote of the holders of at
least 66 2/3% in principal amount of the bonds then outstanding under the
Indenture and any instruments supplemental thereto (excluding bonds challenged and
disqualified from voting by reason of the Company’s interest therein as
provided in the Indenture); provided that without the consent of all holders of
all bonds affected no such modification or alteration shall permit the
extension of the maturity of the principal of any bond or the reduction in the
rate of interest thereon or any other modification in the terms of payment of
such principal or interest.

 

The Company and the
Trustee may deem and treat the person in whose name this bond is registered as the
absolute owner hereof for the purpose of receiving payment and for all other
purposes and shall not be affected by any notice to the contrary.

 

[At any time prior
to May 15, 2015, the Company may redeem the bonds of this series, in whole
or in part, at a redemption price equal to the greater of (i) 100% of the
principal amount of 

 

* This legend to be
included if the bonds are issued as a global bond in book-entry form.

 

6

 

such bonds of this
series being redeemed or (ii) the sum of
the present values of the remaining scheduled payments of principal and
interest on the bonds of this series
being redeemed (excluding the portion of any such interest accrued to
the date fixed for redemption), discounted to
the date fixed for redemption on a semi-annual basis (assuming a 360-day year
consisting of twelve 30-day months) at the Treasury Yield (as defined below)
plus 5 basis points, plus, in each case, accrued and unpaid interest thereon to
but excluding the date of redemption. 
At any time on or after May 15, 2015, the Company may redeem, in
whole or in part, the bonds of this series at 100% of the principal amount
being redeemed plus accrued and unpaid interest thereon to but excluding the
date of redemption.]**

 

[At any time prior
to February 15, 2040, the Company may redeem the bonds of this series, in
whole or in part, at a redemption price equal to the greater of (i) 100%
of the principal amount of such bonds of this series being redeemed or (ii) the sum of the present values of the remaining
scheduled payments of principal and interest on the bonds of this series
being redeemed (excluding the portion of
any such interest accrued to the date fixed for redemption), discounted to the date fixed for redemption on a
semi-annual basis (assuming a 360-day year consisting of twelve 30-day months)
at the Treasury Yield (as defined below) plus 10 basis points, plus, in each
case, accrued and unpaid interest thereon to but excluding the date of
redemption.  At any time on or after February 15,
2040, the Company may redeem, in whole or in part, the bonds of this series at
100% of the principal amount being redeemed plus accrued and unpaid interest
thereon to but excluding the date of redemption.]***

 

“Comparable Treasury
Issue” means the U.S. Treasury security selected by an Independent Investment
Banker as having a maturity comparable to the remaining term of the bonds of
this series being redeemed that would be utilized, at the time of selection and
in accordance with customary financial practice, in pricing new issues of
corporate debt securities of comparable maturity to the remaining term of the
bonds of this series being redeemed.

 

“Comparable Treasury
Price” means (i) the average of the Reference Treasury Dealer Quotations
for the date fixed for redemption, after excluding the highest and lowest
Reference Treasury Dealer Quotations for the date fixed for redemption, or (ii) if
the Company obtains fewer than four Reference Treasury Dealer Quotations for
the date fixed for redemption, the average of all such Reference Treasury
Dealer Quotations for the date fixed for redemption.

 

“Independent
Investment Banker” means each of BNY Mellon Capital Markets, LLC, Citigroup
Global Markets Inc. and RBS Securities Inc. or their respective successors or,
if such firms or their respective successors are unwilling or unable to select
the Comparable Treasury Issue, an independent investment banking institution of
national standing appointed by the Company.

 

“Reference Treasury
Dealer” means (i) each of Citigroup Global Markets Inc. and RBS Securities
Inc. and any other primary U.S. Government securities dealer in the United
States, or a Primary Treasury Dealer, designated by, and not affiliated with,
Citigroup Global Markets Inc. or RBS Securities Inc. and their respective
successors, provided, however, that if Citigroup 

 

** To be inserted in
Series 2015 Bonds.

*** To be inserted
in Series 2040 Bonds.

 

7

 

Global Markets Inc.
or RBS Securities Inc. or any of their respective designees ceases to be a
Primary Treasury Dealer, the Company shall appoint another Primary Treasury
Dealer as a substitute and (ii) any other Primary Treasury Dealer selected
by the Company after consultation with an Independent Investment Banker.

 

“Reference Treasury
Dealer Quotations” means, for each Reference Treasury Dealer and any date fixed
for redemption, the average, as determined by an Independent Investment Banker,
of the bid and asked prices for the Comparable Treasury Issue (expressed in
each case as a percentage of its principal amount) quoted in writing to an
Independent Investment Banker by the Reference Treasury Dealer at 5:00 p.m.,
Eastern time, on the third business day preceding the date fixed for redemption.

 

“Treasury Yield”
means, for any date fixed for redemption, (i) the yield, under the heading
which represents the average for the immediately preceding week, appearing in
the most recently published statistical release designated “H.15(519)” or any
successor publication which is published weekly by the Board of Governors of
the Federal Reserve System and which establishes yields on actively traded U.S.
Treasury securities adjusted to constant maturity under the caption “Treasury
Constant Maturities,” for the maturity corresponding to the Comparable Treasury
Issue (if no maturity is within three months before or after the remaining
term, yields for the two published maturities most closely corresponding to the
Comparable Treasury Issue will be determined and the Treasury Yield will be
interpolated or extrapolated from such yields on a straight line basis,
rounding to the nearest month); or (ii) if such release (or any successor
release) is not published during the week preceding the calculation date or
does not contain such yields, the rate per annum equal to the semi-annual
equivalent yield to maturity of the Comparable Treasury Issue, calculated using
a price for the Comparable Treasury Issue (expressed as a percentage of its
principal amount) equal to the Comparable Treasury Price for the date fixed for
redemption.  The Treasury Yield will be
calculated on the third business day preceding the date fixed for redemption.

 

Bonds of this series
are not subject to a sinking fund.

 

This bond is transferable
as prescribed in the Indenture by the registered owner hereof in person, or by
his duly authorized attorney, at the office of the Trustee in the City of
Chicago, Illinois, or at the option of the owner at the agency of the
Company in the Borough of Manhattan, City and State of New York, or elsewhere
if authorized by the Company, upon surrender and cancellation of this bond, and
thereupon a new bond or bonds of the same series and of a like aggregate
principal amount will be issued to the transferee in exchange therefor as
provided in the Indenture, upon payment of taxes or other governmental charges,
if any, that may be imposed in relation thereto.

 

Bonds of this series are
interchangeable as to denominations in the manner and upon the conditions
prescribed in the Indenture.

 

No charge shall be made
by the Company for any exchange or transfer of bonds of this series, other than
for taxes or other governmental charges, if any, that may be imposed in
relation thereto.

 

8

 

The Company shall
not be required to issue, transfer or exchange any bond of this series during a
period of 10 days immediately preceding any selection of bonds of this series
to be redeemed.  The Company shall not be
required to transfer or exchange any bond of this series called or being called
for redemption in its entirety or to transfer or exchange the called portion of
a bond of this series which has been called for partial redemption.

 

No recourse shall be had
for the payment of the principal of or the interest on this bond, or any part
thereof, or of any claim based hereon or in respect hereof or of said
Indenture, against any incorporator, or any past, present or future
shareholder, officer or director of the Company or of any predecessor or
successor corporation, either directly or through the Company, or through any
such predecessor or successor corporation, or through any receiver or a trustee
in bankruptcy, whether by virtue of any constitution, statute or rule of
law or by the enforcement of any assessment or penalty or otherwise, all such
liability being, by the acceptance hereof and as part of the consideration for
the issue hereof, expressly waived and released, as more fully provided in the
Indenture.

 

This bond shall not be
valid or become obligatory for any purpose unless and until the certificate of
authentication hereon shall have been signed by or on behalf of The Bank of New
York Mellon Trust Company, N.A. (as successor trustee to Harris Trust and
Savings Bank and BNY Midwest Trust Company), as Trustee under the Indenture, or
its successor thereunder.

 

IN WITNESS WHEREOF,
NORTHERN STATES POWER COMPANY has caused this bond to be executed in its name
by its President or a Vice President and its corporate seal, or a facsimile thereof,
to be hereto affixed and attested by its Secretary or an Assistant Secretary.

 

	
  Dated:

  	
   

  	
   

  	
  NORTHERN STATES
  POWER COMPANY

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Attest:

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Vice President

  

 

(Form of
Trustee’s Certificate)

 

This bond is one of the
bonds of the Series designated thereon, described in the within-mentioned
Indenture.

 

	
   

  	
  THE BANK OF NEW
  YORK MELLON TRUST COMPANY, N.A., as Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Authorized Officer

  
	
   

  	
   

  
	
   

  	
  Dated:

  

 

and

 

9

 

WHEREAS, the Company is
desirous of conveying, assigning, transferring, mortgaging, pledging, setting
over and confirming to the Trustee and to its respective successors in trust,
additional property acquired by it subsequent to the date of the preparation of
the Supplemental Trust Indenture dated as of August 1, 2010; and

 

WHEREAS, the Indenture
provides in substance that the Company and the Trustee may enter into
indentures supplemental thereto for the purposes, among others, of creating and
setting forth the particulars of any new series of bonds and of providing the
terms and conditions of the issue of the bonds of any series not expressly
provided for in the Indenture and of conveying, assigning, transferring,
mortgaging, pledging, setting over and confirming to the Trustee additional
property of the Company, and for any other purpose not inconsistent with the
terms of the Indenture; and

 

WHEREAS, the execution
and delivery of this Supplemental Trust Indenture have been duly authorized by
a resolution adopted by the Board of Directors of the Company; and

 

WHEREAS, the Trustee has
duly determined to execute this Supplemental Trust Indenture and to be bound,
insofar as it may lawfully do so, by the provisions hereof;

 

NOW, THEREFORE, Northern
States Power Company, in consideration of the premises and of one dollar duly
paid to it by the Trustee at or before the ensealing and delivery of these
presents, the receipt of which is hereby acknowledged, and other good and
valuable considerations, does hereby covenant and agree to and with The Bank of
New York Mellon Trust Company, N.A. (as successor trustee to Harris Trust and
Savings Bank and BNY Midwest Trust Company), as Trustee, and its successors in
the trust under the Indenture for the benefit of those who hold or shall hold
the bonds, or any of them, issued or to be issued thereunder, as follows:

 

ARTICLE I

SPECIFIC SUBJECTION OF ADDITIONAL PROPERTY

TO THE LIEN OF THE INDENTURE

 

SECTION 1.01. 
The Company, in order to better secure the payment, of both the principal
and interest, of all bonds of the Company at any time outstanding under the
Indenture according to their tenor and effect and the performance of and
compliance with the covenants and conditions contained in the Indenture, has
granted, bargained, sold, warranted, released, conveyed, assigned, transferred,
mortgaged, pledged, set over and confirmed, and by these presents does grant,
bargain, sell, warrant, release, convey, assign, transfer, mortgage, pledge,
set over and confirm, to the Trustee and to its respective successors in said
trust forever, subject to the rights reserved by the Company in and by the
provisions of the Indenture, all of the property described and mentioned or
enumerated in the schedule annexed hereto and marked Schedule A, reference to
said schedule being made hereby with the same force and effect as if the same
were incorporated herein at length; together with all and singular the
tenements, hereditaments and appurtenances belonging and in any way
appertaining to the aforesaid property or any part thereof with the reversion
and reversions, remainder and remainders, tolls, rents and revenues, issues,
income, products and profits thereof;

 

Also, in order to subject
the personal property and chattels of the Company to the lien of the Indenture
and to conform with the provisions of the Uniform Commercial Code, all fossil, 

 

10

 

nuclear, hydro and other
electric generating plants, including buildings and other structures, turbines,
generators, exciters, boilers, reactors, nuclear fuel, other boiler plant
equipment, condensing equipment and all other generating equipment;
substations; electric transmission and distribution systems, including
structures, poles, towers, fixtures, conduits, insulators, wires, cables,
transformers, services and meters; steam heating mains and equipment; gas
transmission and distribution systems, including structures, storage
facilities, mains, compressor stations, purifier stations, pressure holders,
governors, services and meters; telephone plant and related distribution
systems; trucks and trailers; office, shop and other buildings and structures,
furniture and equipment; apparatus and equipment of all other kinds and
descriptions; materials and supplies; all municipal and other franchises,
leaseholds, licenses, permits, privileges, patents and patent rights; all
shares of stock, bonds, evidences of indebtedness, contracts, claims, accounts
receivable, choses in action and other intangibles, all books of account and
other corporate records;

 

Excluding, however, all
merchandise and appliances heretofore or hereafter acquired for the purpose of
sale to customers and others;

 

All the estate, right,
title, interest and claim, whatsoever, at law as well as in equity, which the
Company now has or hereafter may acquire in and to the aforesaid property and
every part and parcel thereof subject, however, to the right of the Company,
upon the occurrence and continuation of a Completed Default as defined in the
Indenture, to retain in its possession all shares of stock, notes, evidences of
indebtedness, other securities and cash not expressly required by the
provisions hereof to be deposited with the Trustee, to retain in its possession
all contracts, bills and accounts receivable, motor cars, any stock of goods,
wares and merchandise, equipment or supplies acquired for the purpose of
consumption in the operation, construction or repair of any of the properties
of the Company, and to sell, exchange, pledge, hypothecate or otherwise dispose
of any or all of such property so retained in its possession, free from the
lien of the Indenture, without permission or hindrance on the part of the
Trustee, or any of the bondholders. No person in any dealings with the Company
in respect of any such property shall be charged with any notice or knowledge
of any such Completed Default under the Indenture while the Company is in
possession of such property.  Nothing
contained herein or in the Indenture shall be deemed or construed to require
the deposit with, or delivery to, the Trustee of any of such property, except
such as is specifically required to be deposited with the Trustee by some
express provision of the Indenture;

 

To have and to hold all
said property, real, personal and mixed, granted, bargained, sold, warranted,
released, conveyed, assigned, transferred, mortgaged, pledged, set over or
confirmed by the Company as aforesaid, or intended so to be, to the Trustee and
its successors and assigns forever, subject, however, to Permitted Encumbrances  and to the further reservations, covenants, conditions,
uses and trusts set forth in the Indenture; in trust nevertheless for the same
purposes and upon the same conditions as are set forth in the Indenture.

 

ARTICLE II

FORM AND EXECUTION OF SERIES 2015 BONDS AND SERIES 2040 BONDS

 

SECTION 2.01.  There is
hereby created, for issuance under the Indenture, a series of bonds designated Series due August 15, 2015, each of which shall
bear the descriptive title “First Mortgage Bonds, Series due August 15,
2015,” (such bonds, the “Series 2015 Bonds”) and the 

 

11

 

form
thereof shall contain suitable provisions with respect to the matters hereafter
specified in this Section.  The Series 2015 Bonds may forthwith be executed by the Company
substantially in the form set forth in the recitals, including the relevant
provisions as indicated therein, and delivered to the Trustee for
authentication and delivery by the Trustee in accordance with the provisions of
the Indenture and this Supplemental Trust Indenture.  The Series 2015 Bonds shall initially be
authenticated and delivered in the aggregate principal amount of
$250,000,000.  The Series 2015 Bonds
may be reopened and additional bonds of said series may be issued in excess of
the amount initially authenticated and delivered, provided that such additional
bonds of said series will contain the same terms (including the maturity date
and interest rate), except for the public offering price and the issue date, as
the other Series 2015 Bonds. Any such additional Series 2015 Bonds,
together with the Series 2015 Bonds initially authenticated, shall
constitute a single series for purposes of the Indenture and shall be limited
to an aggregate principal amount of $350,000,000.  The Series 2015 Bonds shall mature on August 15, 2015, and shall
be issued as registered bonds without coupons in denominations of $1,000.  The Series 2015 Bonds shall bear
interest at a rate of 1.950% per annum on the principal amount thereof payable
semi-annually on February 15 and August 15 of each year, commencing February 15,
2011, and the principal shall be payable at the office of the Trustee in the
City of Chicago, Illinois, or at the option of the registered owner at the
agency of the Company in the Borough of Manhattan, City and State of New York,
in lawful money of the United States of America, and the interest shall be
payable in like money at the option of the person entitled to such interest
either at said office of the Trustee in the City of Chicago, Illinois, or
at the agency of the Company in the Borough of Manhattan, City and State of New
York.  Interest on the Series 2015 Bonds shall be calculated on the basis of a 360-day year consisting of twelve
30-day months.  If any interest payment
date or date on which the principal of this bond is required to be paid is not
a business day, then payment of principal, premium or interest need not be made
on such date but may be made on the next succeeding business day with the same
force and effect as if made on such interest payment date or date on which the
principal of this bond is required to be paid and, in the case of timely
payment thereof, no interest shall accrue for the period from and after such
interest payment date or the date on which the principal of this bond is
required to be paid.  The Series 2015 Bonds shall be dated as of the date of authentication
thereof by the Trustee.  The term “business
day” shall mean any day other than a Saturday or Sunday or a day on which the
offices of the Trustee in the City of Chicago, Illinois, are closed
pursuant to authorization of law.

 

As long as there is
no existing default in the payment of interest on the Series 2015 Bonds, the person in whose name any Series 2015
Bond is registered at the close of business on any Record Date with respect to
any interest payment date shall be entitled to receive the interest payable on
such interest payment date notwithstanding any transfer or exchange of any such
Series 2015 Bond subsequent to the Record Date and on or prior to such
interest payment date, except as and to the extent the Company shall default in
the payment of the interest due on such interest payment date, in which case
such defaulted interest shall be paid to the person in whose name such Series 2015
Bond is registered on the Special Record Date for the payment of such defaulted
interest to be fixed by the Trustee, notice thereof shall be given to the
registered holder of any Series 2015 Bond not less than 10 days prior to
such Special Record Date, or may be paid at any time in any other lawful manner
not inconsistent with the requirements of any securities exchange on which the Series 2015
Bond may be listed, and upon such notice as may be required by such exchange.

 

12

 

The term “Record Date” as
used in this Section 2.01 with respect to any interest payment date (February 15
or August 15) shall mean the February 1 prior to such February 15
or the August 1 prior to such August 15 (whether or not a business
day).

 

As used in this Section 2.01,
the term “default in the payment of interest” means failure to pay interest on
the applicable interest payment date disregarding any period of grace permitted
by the Indenture.

 

The “Special Record Date”
as used in this Section 2.01 shall be fixed in the following manner.  The Company shall notify the Trustee in
writing of the amount of defaulted interest proposed to be paid on each Series 2015
Bond  and the date of the proposed payment,
and at the same time the Company shall deposit with the Trustee an amount of
money equal to the aggregate amount proposed to be paid in respect of such
defaulted interest or shall make arrangements satisfactory to the Trustee for
such deposit prior to the date of the proposed payment, such money when
deposited to be held in trust for the benefit of the persons entitled to such
defaulted interest as provided in this Section 2.01.  Thereupon the Trustee shall fix a Special
Record Date for the payment of such defaulted interest which shall be not more
than 15 nor less than 10 days prior to the date of the proposed payment and not
less than 10 days after the receipt by the Trustee of the notice of the
proposed payment.  The Trustee shall promptly
notify the Company of such Special Record Date and, in the name and at the
expense of the Company, shall cause notice of the proposed payment of such
defaulted interest and the Special Record Date therefor to be mailed, first
class postage prepaid, to each holder of the Series 2015 Bonds, at his,
her or its address as it appears in the bond register, not less than 10 days
prior to such Special Record Date. 
Notice of the proposed payment of such defaulted interest and the
Special Record Date therefor having been mailed as aforesaid, such defaulted
interest shall be paid to the persons in whose names the Series 2015 Bonds
are registered on such Special Record Date and shall not be payable pursuant to
the paragraph immediately following in this Section 2.01.

 

The Company may make
payment of any defaulted interest in any other lawful manner not inconsistent
with the requirements of any securities exchange on which the Series 2015
Bonds may be listed, and upon such notice as may be required by such exchange,
if, after notice is given by the Company to the Trustee of the proposed payment
pursuant to this Section 2.01, such payment shall be deemed practicable by
the Trustee.

 

SECTION 2.02. 
There is
hereby created, for issuance under the Indenture, a series of bonds designated Series due August 15, 2040, each of which shall
bear the descriptive title “First Mortgage Bonds, Series due August 15,
2040,” (such bonds, the “Series 2040 Bonds”) and the form thereof shall
contain suitable provisions with respect to the matters hereafter specified in
this Section.  The Series 2040 Bonds may forthwith be executed by the Company
substantially in the form set forth in the recitals, including the relevant
provisions as indicated therein, and delivered to the Trustee for
authentication and delivery by the Trustee in accordance with the provisions of
the Indenture and this Supplemental Trust Indenture.  The Series 2040 Bonds shall initially be
authenticated and delivered in the aggregate principal amount of
$250,000,000.  The Series 2040 Bonds
may be reopened and additional bonds of said series may be issued in excess of
the amount initially authenticated and delivered, provided that such additional
bonds of said series will contain the same terms (including the maturity date
and interest rate), except for the public offering price and the issue date, as
the other Series 2040 Bonds. Any such additional Series 2040 Bonds,
together with the Series 2040 Bonds initially authenticated, shall
constitute a 

 

13

 

single series for purposes of the Indenture and shall be limited to an
aggregate principal amount of $500,000,000. 
The Series 2040 Bonds shall mature on August 15, 2040, and shall
be issued as registered bonds without coupons in denominations of $1,000.  The Series 2040 Bonds shall bear
interest at a rate of 4.850% per annum on the principal amount thereof payable
semi-annually on February 15 and August 15 of each year, commencing February 15,
2011, and the principal shall be payable at the office of the Trustee in the City
of Chicago, Illinois, or at the option of the registered owner at the
agency of the Company in the Borough of Manhattan, City and State of New York,
in lawful money of the United States of America, and the interest shall be
payable in like money at the option of the person entitled to such interest
either at said office of the Trustee in the City of Chicago, Illinois, or
at the agency of the Company in the Borough of Manhattan, City and State of New
York.  Interest on the Series 2040 Bonds shall be calculated on the basis of a 360-day year consisting of twelve
30-day months.  If any interest payment
date or date on which the principal of this bond is required to be paid is not
a business day, then payment of principal, premium or interest need not be made
on such date but may be made on the next succeeding business day with the same
force and effect as if made on such interest payment date or date on which the
principal of this bond is required to be paid and, in the case of timely
payment thereof, no interest shall accrue for the period from and after such
interest payment date or the date on which the principal of this bond is
required to be paid.  The Series 2040 Bonds shall be dated as of the date of authentication
thereof by the Trustee.  The term “business
day” shall mean any day other than a Saturday or Sunday or a day on which the
offices of the Trustee in the City of Chicago, Illinois, are closed
pursuant to authorization of law.

 

As long as there is
no existing default in the payment of interest on the Series 2040 Bonds, the person in whose name any Series 2040
Bond is registered at the close of business on any Record Date with respect to
any interest payment date shall be entitled to receive the interest payable on
such interest payment date notwithstanding any transfer or exchange of any such
Series 2040 Bond subsequent to the Record Date and on or prior to such
interest payment date, except as and to the extent the Company shall default in
the payment of the interest due on such interest payment date, in which case
such defaulted interest shall be paid to the person in whose name such Series 2040
Bond is registered on the Special Record Date for the payment of such defaulted
interest to be fixed by the Trustee, notice thereof shall be given to the
registered holder of any Series 2040 Bond not less than 10 days prior to
such Special Record Date, or may be paid at any time in any other lawful manner
not inconsistent with the requirements of any securities exchange on which the Series 2040
Bond may be listed, and upon such notice as may be required by such exchange.

 

The term “Record Date” as
used in this Section 2.02 with respect to any interest payment date (February 15
or August 15) shall mean the February 1 prior to such February 15
or the August 1 prior to such August 15 (whether or not a business
day).

 

As used in this Section 2.02,
the term “default in the payment of interest” means failure to pay interest on
the applicable interest payment date disregarding any period of grace permitted
by the Indenture.

 

The “Special Record Date”
as used in this Section 2.02 shall be fixed in the following manner.  The Company shall notify the Trustee in
writing of the amount of defaulted interest proposed to be paid on each Series 2040
Bond and the date of the proposed payment, and at the same time the Company
shall deposit with the Trustee an amount of money equal to the 

 

14

 

aggregate amount proposed
to be paid in respect of such defaulted interest or shall make arrangements
satisfactory to the Trustee for such deposit prior to the date of the proposed
payment, such money when deposited to be held in trust for the benefit of the
persons entitled to such defaulted interest as provided in this Section 2.02.  Thereupon the Trustee shall fix a Special
Record Date for the payment of such defaulted interest which shall be not more
than 15 nor less than 10 days prior to the date of the proposed payment and not
less than 10 days after the receipt by the Trustee of the notice of the
proposed payment.  The Trustee shall
promptly notify the Company of such Special Record Date and, in the name and at
the expense of the Company, shall cause notice of the proposed payment of such
defaulted interest and the Special Record Date therefor to be mailed, first
class postage prepaid, to each holder of the Series 2040 Bonds, at his,
her or its address as it appears in the bond register, not less than 10 days
prior to such Special Record Date. 
Notice of the proposed payment of such defaulted interest and the
Special Record Date therefor having been mailed as aforesaid, such defaulted
interest shall be paid to the persons in whose names the Series 2040 Bonds
are registered on such Special Record Date and shall not be payable pursuant to
the paragraph immediately following in this Section 2.02.

 

The Company may make
payment of any defaulted interest in any other lawful manner not inconsistent
with the requirements of any securities exchange on which the Series 2040
Bonds may be listed, and upon such notice as may be required by such exchange,
if, after notice is given by the Company to the Trustee of the proposed payment
pursuant to this Section 2.02, such payment shall be deemed practicable by
the Trustee.

 

SECTION 2.03. 
At any time prior to May 15, 2015, the Company may redeem the Series 2015
Bonds, in whole or in part, at a redemption price equal to the greater of (i) 100%
of the principal amount of such Series 2015 Bonds being redeemed or (ii) the sum of the present values of the remaining
scheduled payments of principal and interest on the Series 2015
Bonds being redeemed (excluding the
portion of any such interest accrued to the date fixed for redemption), discounted to the date fixed for redemption on a
semi-annual basis (assuming a 360-day year consisting of twelve 30-day months)
at the Treasury Yield (as defined below) plus 5 basis points, plus, in each
case, accrued and unpaid interest thereon to but excluding the date of
redemption.  At any time on or after May 15,
2015, the Company may redeem, in whole or in part, the Series 2040 Bonds
at 100% of the principal amount being redeemed plus accrued and unpaid interest
thereon to but excluding the date of redemption.

 

At any time prior to
February 15, 2040, the Company may redeem the Series 2040 Bonds, in
whole or in part, at a redemption price equal to the greater of (i) 100%
of the principal amount of such Series 2040 Bonds being redeemed or (ii) the sum of the present values of the
remaining scheduled payments of principal and interest on the Series 2040
Bonds being redeemed (excluding the
portion of any such interest accrued to the date fixed for redemption), discounted to the date fixed for redemption on a
semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at
the Treasury Yield (as defined below) plus 10 basis points, plus, in each case,
accrued and unpaid interest thereon to but excluding the date of
redemption.  At any time on or after February 15,
2040, the Company may redeem, in whole or in part, the Series 2040 Bonds
at 100% of the principal amount being redeemed plus accrued and unpaid interest
thereon to but excluding the date of redemption.

 

“Comparable Treasury
Issue” means the U.S. Treasury security selected by an Independent Investment
Banker as having a maturity comparable to the remaining term of the 

 

15

 

Bonds of the series
being redeemed that would be utilized, at the time of selection and in
accordance with customary financial practice, in pricing new issues of
corporate debt securities of comparable maturity to the remaining term of the
Bonds of the series being redeemed.

 

“Comparable Treasury
Price” means (i) the average of the Reference Treasury Dealer Quotations
for the date fixed for redemption, after excluding the highest and lowest
Reference Treasury Dealer Quotations for the date fixed for redemption, or (ii) if
the Company obtains fewer than four Reference Treasury Dealer Quotations for
the date fixed for redemption, the average of all of the Reference Treasury
Dealer Quotations for the date fixed for redemption.

 

“Independent
Investment Banker” means each of BNY Mellon Capital Markets, LLC, Citigroup
Global Markets Inc. and RBS Securities Inc. or their respective successors or,
if such firms or their respective successors are unwilling or unable to select
the Comparable Treasury Issue, an independent investment banking institution of
national standing appointed by the Company.

 

“Reference Treasury
Dealer” means (i) each of Citigroup Global Markets Inc. or RBS Securities
Inc. and any other primary U.S. Government securities dealer in the United
States, or a Primary Treasury Dealer, designated by, and not affiliated with,
Citigroup Global Markets Inc. or RBS Securities Inc. or their respective
successors, provided, however, that if Citigroup Global Markets Inc. or RBS
Securities Inc. or any of their respective designees ceases to be a Primary
Treasury Dealer, the Company shall appoint another Primary Treasury Dealer as a
substitute and (ii) any other Primary Treasury Dealer selected by the
Company after consultation with an Independent Investment Banker.

 

“Reference Treasury
Dealer Quotations” means, for each Reference Treasury Dealer and any date fixed
for redemption, the average, as determined by an Independent Investment Banker,
of the bid and asked prices for the Comparable Treasury Issue (expressed in
each case as a percentage of its principal amount) quoted in writing to an
Independent Investment Banker by the Reference Treasury Dealer at 5:00 p.m.,
Eastern time, on the third business day preceding the date fixed for
redemption.

 

“Treasury Yield”
means, for any date fixed for redemption, (i) the yield, under the heading
which represents the average for the immediately preceding week, appearing in
the most recently published statistical release designated “H.15(519)” or any
successor publication which is published weekly by the Board of Governors of
the Federal Reserve System and which establishes yields on actively traded U.S.
Treasury securities adjusted to constant maturity under the caption “Treasury
Constant Maturities,” for the maturity corresponding to the Comparable Treasury
Issue (if no maturity is within three months before or after the remaining
term, yields for the two published maturities most closely corresponding to the
Comparable Treasury Issue will be determined and the Treasury Yield will be
interpolated or extrapolated from such yields on a straight line basis,
rounding to the nearest month); or (ii) if such release (or any successor
release) is not published during the week preceding the calculation date or
does not contain such yields, the rate per annum equal to the semi-annual
equivalent yield to maturity of the Comparable Treasury Issue, calculated using
a price for the Comparable Treasury Issue (expressed as a percentage of its
principal amount) equal to the Comparable Treasury Price for the date fixed for
redemption.  The Treasury Yield will be
calculated on the third business day preceding the date fixed for redemption.

 

16

 

The Company may
redeem, in whole or in part, the Series 2015 Bonds without redeeming the Series 2040
Bonds or the Series 2040 Bonds without redeeming the Series 2015
Bonds.

 

Neither the Series 2015
Bonds nor the Series 2040 Bonds are subject to a sinking fund.

 

The redemption
prices of the Bonds need not be specified in any temporary bond
of said series if an appropriate reference be made in said temporary bond to
the provision of this Section.

 

SECTION 2.04. 
The registered owner of any Bonds, at his, her or its option, may
surrender the same with other Bonds of such series at the office of the Trustee
in the City of Chicago, Illinois, or at the agency of the Company in the
Borough of Manhattan, City and State of New York, or elsewhere if authorized by
the Company, for cancellation, in exchange for other Bonds of such series of
higher or lower authorized denominations, but of the same aggregate principal
amount, bearing interest from its date, and upon receipt of any payment
required under the provisions of Section 2.05 hereof.  Thereupon the Company shall execute and
deliver to the Trustee and the Trustee shall authenticate and deliver such
other registered Bonds to such registered owner at its office or at any other
place specified as aforesaid.

 

Notwithstanding any
other provisions of the Indenture to the contrary, the Company shall not be
required to issue, transfer or exchange any Bond during a period of ten (10) days next
preceding any selection of Bonds of such series to be redeemed.  The Company shall not be required to transfer
or exchange any Bond called or being called for redemption in its entirety or
to transfer or exchange the called portion of a Bond which has been called for
partial redemption.

 

SECTION 2.05. 
No charge shall be made by the Company for any exchange or transfer of Bonds  other than for taxes or other governmental charges, if any, that may be
imposed in relation thereto.

 

SECTION 2.06. 
The Bonds shall be executed on behalf of the Company
by its President or one of its Vice Presidents, and its corporate seal shall be
thereunto affixed, or printed, lithographed or engraved thereon, in facsimile,
and attested by the signature of its Secretary or one of its Assistant
Secretaries.  Any such signatures may be
manual or facsimile signatures and may be imprinted or otherwise
reproduced.  In case any of the officers
who shall have signed any Bonds or attested the seal thereon shall cease to be
such officers of the Company before the Bonds so signed and sealed actually
shall have been authenticated by the Trustee or delivered by the Company, such
Bonds nevertheless may be issued, authenticated and delivered with the same
force and effect as though the person or persons who signed such Bonds and
attested the seal thereon had not ceased to be such officer or officers of the
Company.  Any Bond issuable hereunder may
be signed or attested on behalf of the Company by such person as at the actual
date of the execution of such Bond shall be the proper officer of the Company,
although at the date of such Bond such person shall not have been an officer of
the Company.

 

SECTION 2.07. 
(a) Except as provided in subsections (c) and (g) of this
Section 2.07, the registered holder of all of the Series 2015 Bonds
and the Series 2040 Bonds shall be The
Depository Trust Company (“DTC”) and such Bonds shall be registered in the name of Cede & Co., as nominee for
DTC.  Payment of principal of, premium,
if any, and interest on any Bonds registered
in the name of Cede & Co. shall be made by transfer of New York
Federal or 

 

17

 

equivalent immediately available funds with respect to the Bonds to the account of Cede & Co. on each such
payment date for the Bonds at the address indicated for Cede &
Co. in the bond register kept by the Trustee.

 

(b)           The
Series 2015 Bonds and the Series 2040 Bonds shall each be initially issued in the form of one or more separate
single authenticated fully registered certificates in the respective aggregate
principal amount of such series of Bonds. 
Upon initial issuance, the ownership of such Bonds shall be registered in the bond register kept by the Trustee in the
name of Cede & Co., as nominee of DTC. 
The Trustee and the Company may treat DTC (or its nominee) as the sole
and exclusive registered holder of the Bonds registered in its name for the purposes of payment of the principal of,
premium, if any, and interest on the Bonds and of giving any notice permitted or required to be given to holders
under the Indenture, except as provided in subsection (g) below of this Section 2.07;
and neither the Trustee nor the Company shall be affected by any notice to the
contrary.  Neither the Trustee nor the
Company shall have any responsibility or obligation to any of DTC’s
participants (each a “Participant”), any person claiming a beneficial ownership
in the Bonds under or through DTC or any Participant
(each a “Beneficial Owner”) or any other person which is not shown on the bond
register maintained by the Trustee as being a registered holder, with respect
to (1) the accuracy of any records maintained by DTC or any Participant;
(2) the payment by DTC or any Participant of any amount in respect of the
principal of, premium, if any, or interest on the Bonds; (3) the delivery by DTC or any Participant of any notice to any
Beneficial Owner which is permitted or required to be given to registered
holders under the Indenture of the Bonds; (4) the selection of the Beneficial Owners to receive payment in
the event of any partial redemption of the Bonds; or (5) any consent given or other action taken by DTC as
bondholder.  The Trustee shall pay all
principal of, premium, if any, and interest on the Bonds registered in the name of Cede & Co. only to or “upon the order
of” (as that term is used in the Uniform Commercial Code as adopted in
Minnesota and New York) DTC, and all such payments shall be valid and effective
to fully satisfy and discharge the Company’s obligations with respect to the
principal of, premium, if any, and interest on such Bonds to the extent of the sum or sums so paid.  Except as otherwise provided in subsections (c) and
(g) below of this Section 2.07, no person other than DTC shall
receive authenticated bond certificates evidencing the obligation of the
Company to make payments of principal of and interest on the Bonds.  Upon
delivery by DTC to the Trustee of written notice to the effect that DTC has
determined to substitute a new nominee in place of Cede & Co., and
subject to the provisions of the Indenture with respect to transfers of bonds,
the word “Cede & Co.” in this Supplemental Trust Indenture shall refer
to such new nominee of DTC.

 

(c)           If
the Company in its discretion determines that it is in the best interest of the
Beneficial Owners that they be able to obtain bond certificates for the Series 2015
Bonds or Series 2040 Bonds or there shall have occurred and be continuing a Completed Default with
respect to one or both series of Bonds, the Company shall notify DTC and the Trustee, whereupon DTC will
notify the Participants of the availability through DTC of bond certificates
for such series of Bonds.  In such event,
the Trustee shall issue, transfer and exchange bond certificates as requested
by DTC in appropriate amounts pursuant to Article II of the Restated
Indenture and Section 2.04 of this Supplemental Trust Indenture.  The Company shall pay all costs in connection
with the production of bond certificates if the Company makes such a
determination under this Section 2.07(c). 
DTC may determine to discontinue providing its 

 

18

 

services with respect to a series of Bonds at any time by giving written notice to the Company and the Trustee and
discharging its responsibilities with respect thereto under applicable
law.  Under such circumstances (if there
is no successor book-entry depository), the Company and the Trustee shall be
obligated (at the sole cost and expense of the Company) to deliver bond certificates
for such series of Bonds as described in this Supplemental Trust
Indenture.  If bond certificates are
issued, the provisions of the Indenture shall apply to, among other things, the
transfer and exchange of such certificates and the method of payment of
principal of, premium, if any, and interest on such certificates.  Whenever DTC requests the Company and the
Trustee to do so, the Company will direct the Trustee (at the sole cost and
expense of the Company) to cooperate with DTC in taking appropriate action
after reasonable notice (i) to make available one or more separate
certificates evidencing the Bonds to any
Participant or (ii) to arrange for another book-entry depository to
maintain custody of certificates evidencing the Bonds registered in the name of such depository or its nominee.  Any successor book-entry depository must be a
clearing agency registered with the Securities and Exchange Commission pursuant
to Section 17A of the Securities Exchange Act of 1934, as amended, and
must enter into an agreement with the Company and the Trustee agreeing to act
as the depository and clearing agency for such series of Bonds (except as provided in subsection (g) below
of this Section 2.07).  After such
agreement has become effective, DTC shall present the Bonds for registration of transfer in accordance with Section 2.12
of the Restated Indenture, and the Trustee shall register them in the name of
the successor book-entry depository or its nominee and all references
thereafter to DTC shall be to such successor book-entry depository.  If a successor book-entry depository has not
accepted such position before the effective date of DTC’s termination of its
services, the book-entry system shall automatically terminate and may not be
reinstated without the consent of all registered holders of the Bonds.

 

(d)           Notwithstanding
any other provision of this Supplemental Trust Indenture to the contrary, so
long as any Bonds are registered in the name of Cede &
Co., as nominee of DTC, all payments with respect to the principal of, premium,
if any, and interest on such Bonds and all
notices with respect to such Bonds shall be
made and given, respectively, to DTC as provided in the blanket representation
letter among DTC, the Company and the Trustee. 
The Trustee is hereby authorized and directed to comply with all terms
of the representation letter.

 

(e)           In
connection with any notice or other communication to be provided pursuant to
the Indenture for the Bonds by the Company or the Trustee with respect
to any consent or other action to be taken by the registered holders of the Bonds, the Company or the Trustee, as the case may be,
shall seek to establish a record date to the extent permitted by the Indenture
for such consent or other action and give DTC notice of such record date not
less than fifteen (15) calendar days in advance of such record date to the
extent possible. Such notice to DTC shall be given only when DTC is the sole
registered holder.

 

(f)            NEITHER
THE COMPANY NOR THE TRUSTEE WILL HAVE ANY RESPONSIBILITY OR OBLIGATIONS TO THE
PARTICIPANTS OR THE BENEFICIAL OWNERS WITH RESPECT TO (1) THE ACCURACY OF
ANY RECORDS MAINTAINED BY DTC OR ANY PARTICIPANT; (2) THE PAYMENT BY DTC
OR ANY PARTICIPANT OF ANY AMOUNT DUE TO ANY BENEFICIAL OWNER IN RESPECT OF THE
PRINCIPAL OF, PREMIUM, IF ANY, OR INTEREST ON THE BONDS; (3) THE DELIVERY BY DTC OR ANY PARTICIPANT
OF ANY NOTICE TO ANY BENEFICIAL OWNER WHICH IS REQUIRED OR PERMITTED UNDER THE
TERMS OF THE

 

19

 

INDENTURE TO BE GIVEN TO REGISTERED HOLDERS; (4) THE SELECTION OF
THE BENEFICIAL OWNERS TO RECEIVE PAYMENT IN THE EVENT OF ANY PARTIAL REDEMPTION
OF THE BONDS; OR (5) ANY CONSENT GIVEN OR OTHER
ACTION TAKEN BY DTC AS A REGISTERED HOLDER.

 

SO LONG AS CEDE &
CO. IS THE REGISTERED HOLDER OF THE BONDS AS NOMINEE OF DTC, REFERENCES HEREIN TO REGISTERED HOLDERS OF THE BONDS SHALL MEAN CEDE & CO. AND SHALL NOT MEAN
THE BENEFICIAL OWNERS OF THE BONDS NOR THE
PARTICIPANTS.

 

(g)                                 The Company, in its sole discretion, may
terminate the services of DTC with respect to a series of Bonds if the Company determines that: (i) DTC
(x) is unable to discharge its responsibilities with respect to such
series of Bonds or (y) at any time ceases to be a
clearing agency registered under the Securities Exchange Act of 1934, as
amended; or (ii) there shall have occurred and be continuing a Completed
Default with respect to either series of Bonds.  The Company, in its sole
discretion, may terminate the services of DTC with respect to either series of Bonds if the Company determines that a continuation
of the requirement that all of the outstanding Bonds be registered with the
registration books kept by the Trustee in the name of Cede & Co., as
nominee of DTC, is not in the best interest of the Beneficial Owners of the Bonds.  After such
event and if no substitute book-entry depository is appointed by the Company,
the bond certificates for the Series 2015 Bonds and the Series 2040
Bonds will be delivered as described in the Indenture.

 

(h)                                 Upon the termination of the services of DTC
with respect to the Bonds
pursuant to
subsections (c) or (g) of this Section 2.07 after which no
substitute book-entry depository is appointed, the Bonds shall be registered in whatever name or names holders transferring or
exchanging the Bonds
shall
designate in accordance with the provisions of the Indenture.

 

ARTICLE III

APPOINTMENT OF AUTHENTICATING AGENT

 

SECTION 3.01.  The Trustee shall, if requested in writing so to
do by the Company, promptly appoint an agent or agents of the Trustee who shall
have authority to authenticate registered Series 2015 Bonds and Series 2040 Bonds in the name and on behalf of the Trustee.  Such appointment by the Trustee shall be
evidenced by a certificate of a vice-president of the Trustee delivered to the
Company prior to the effectiveness of such appointment.

 

SECTION 3.02.  (a) Any such authenticating agent shall be acceptable to the
Company and at all times shall be a corporation, trust company or banking
association organized and doing business under the laws of the United States or
of any State, is authorized under such laws to act as authenticating agent, has
a combined capital and surplus of at least $10,000,000 and is subject to
supervision or examination by Federal or State authority and to act as
authenticating agent.  If such
corporation, trust company or banking association publishes reports of
condition at least annually, pursuant to law or to the requirements of the
aforesaid supervising or examining authority, then for the purposes of this Section 3.02
the combined capital and surplus of such corporation shall be deemed to be its
combined capital and surplus as set forth in its most recent report of
condition so published.

 

20

 

(b)                                 Any corporation, trust company or banking
association into which any authenticating agent may be merged or converted or
with which it may be consolidated, or any corporation, trust company or banking
association resulting from any merger, conversion or consolidation to which any
authenticating agent shall be a party, or any corporation, trust company or
banking association succeeding to the corporate agency business of any
authenticating agent, shall continue to be the authenticating agent without the
execution or filing of any paper or any further act on the part of the Trustee
or the authenticating agent.

 

(c)                                  Any authenticating agent at any time may resign
by giving written notice of resignation to the Trustee and to the Company.  The Trustee may at any time, and upon written
request of the Company to the Trustee shall, terminate the agency of any
authenticating agent by giving written notice of termination to such
authenticating agent and to the Company. 
Upon receiving such a notice of resignation or upon such a termination,
or in case at any time any authenticating agent shall cease to be eligible in
accordance with the provisions of this Section 3.02, the Trustee, unless
otherwise requested in writing by the Company, promptly shall appoint a
successor authenticating agent, which shall be acceptable to the Company.  Any successor authenticating agent upon
acceptance of its appointment hereunder shall become vested with all the
rights, powers, duties and responsibilities of its predecessor hereunder, with
like effect as if originally named.  No
successor authenticating agent shall be appointed unless eligible under the
provisions of this Section 3.02.

 

(d)                                 The Company agrees to pay to any authenticating
agent, appointed in accordance with the provisions of this Section 3.02,
reasonable compensation for its services.

 

SECTION 3.03.  If an appointment is made pursuant to this Article III,
the registered Series 2015 Bonds and Series 2040 Bonds shall have endorsed thereon, in addition to the
Trustee’s Certificate, an alternate Trustee’s Certificate in the following
form:

 

(Form of Trustee’s Certificate)

 

This bond is one of the
bonds of the Series designated thereon, described in the within-mentioned
Indenture.

 

	
   

  	
  THE BANK OF NEW
  YORK MELLON TRUST COMPANY, N.A., as Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  
	
   

  	
  Authenticating
  Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  
	
   

  	
  Authorized
  Officer

  
	
   

  	
   

  
	
   

  	
  Dated:

  	
   

  

 

21

 

SECTION 3.04.  No provision of this Article III shall
require the Trustee to have at any time more than one such authenticating agent
for any one State or to appoint any such authenticating agent in the State in
which the Trustee has its principal place of business.

 

22

 

ARTICLE IV

FINANCING STATEMENT TO COMPLY WITH

THE UNIFORM COMMERCIAL CODE

 

SECTION 4.01. 
The name and address of the debtor and secured party are set forth
below:

 

	
  Debtor:

  	
   

  	
  Northern States
  Power Company

  
	
   

  	
   

  	
  414 Nicollet Mall

  
	
   

  	
   

  	
  Minneapolis,
  Minnesota 55401

  
	
   

  	
   

  	
   

  
	
  Secured Party:

  	
   

  	
  The Bank of New
  York Mellon Trust Company, N.A., Trustee

  
	
   

  	
   

  	
  2 North LaSalle
  Street

  
	
   

  	
   

  	
  Suite 1020

  
	
   

  	
   

  	
  Chicago, Illinois
  60602

  

 

NOTE:  Northern States Power Company, the debtor
above named, is “a transmitting utility” under the Uniform Commercial Code as
adopted in Minnesota, North Dakota and South Dakota.

 

SECTION 4.02. 
Reference to Article I hereof is made for a description of the
property of the debtor covered by this Financing Statement with the same force
and effect as if incorporated in this Section at length.

 

SECTION 4.03. 
The maturity dates and respective principal amounts of obligations of
the debtor secured and presently to be secured by the Indenture and this
Supplemental Trust Indenture, reference to all of which for the terms and
conditions thereof is hereby made with the same force and effect as if
incorporated herein at length, are as follows:

 

	
  First Mortgage Bonds

  	
   

  	
  Principal
  Amount

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Series due July 1, 2025

  	
   

  	
  $

  	
  250,000,000

  	
   

  
	
  Pollution Control Series N

  	
   

  	
  $

  	
  27,900,000

  	
   

  
	
  Pollution Control Series O

  	
   

  	
  $

  	
  50,000,000

  	
   

  
	
  Pollution Control Series P

  	
   

  	
  $

  	
  50,000,000

  	
   

  
	
  Series due March 1, 2028

  	
   

  	
  $

  	
  150,000,000

  	
   

  
	
  Pollution Control Series S

  	
   

  	
  $

  	
  69,000,000

  	
   

  
	
  Series A and Series B due August 28, 2012

  	
   

  	
  $

  	
  450,000,000

  	
   

  
	
  Series due July 15, 2035

  	
   

  	
  $

  	
  250,000,000

  	
   

  
	
  Series due June 1, 2036

  	
   

  	
  $

  	
  400,000,000

  	
   

  
	
  Series due July 1, 2037

  	
   

  	
  $

  	
  350,000,000

  	
   

  
	
  Series due March 1, 2018

  	
   

  	
  $

  	
  500,000,000

  	
   

  
	
  Series due November 1, 2039

  	
   

  	
  $

  	
  300,000,000

  	
   

  
	
  Series due August 15, 2015

  	
   

  	
  $

  	
  250,000,000

  	
   

  
	
  Series due August 15, 2040

  	
   

  	
  $

  	
  250,000,000

  	
   

  

 

23

 

SECTION 4.04. 
This Financing Statement is hereby adopted for all of the First Mortgage
Bonds of the Series mentioned above secured by said Indenture and this
Supplemental Trust Indenture.

 

SECTION 4.05. 
The 1937 Indenture, the Restated Indenture and the prior Supplemental
Indentures, as set forth below, have been filed or recorded in each and every
office in the States of Minnesota, North Dakota and South Dakota designated by
law for the filing or recording thereof in respect of all property of the
Company subject thereto:

 

	
  Original Indenture

  	
  Supplemental
  Indenture

  
	
  Dated February 1, 1937

  	
  Dated May 1, 1983

  
	
   

  	
   

  
	
  Supplemental Indenture

  	
  Supplemental
  Indenture

  
	
  Dated June 1, 1942

  	
  Dated December 1, 1983

  
	
   

  	
   

  
	
  Supplemental Indenture

  	
  Supplemental
  Indenture

  
	
  Dated February 1, 1944

  	
  Dated September 1, 1984

  
	
   

  	
   

  
	
  Supplemental Indenture

  	
  Supplemental
  Indenture

  
	
  Dated October 1, 1945

  	
  Dated December 1, 1984

  
	
   

  	
   

  
	
  Supplemental Indenture

  	
  Supplemental
  Indenture

  
	
  Dated July 1, 1948

  	
  Dated May 1, 1985

  
	
   

  	
   

  
	
  Supplemental Indenture

  	
  Supplemental
  Indenture

  
	
  Dated August 1, 1949

  	
  Dated September 1, 1985

  
	
   

  	
   

  
	
  Supplemental Indenture

  	
  Supplemental and
  Restated Indenture

  
	
  Dated June 1, 1952

  	
  Dated May 1, 1988

  
	
   

  	
   

  
	
  Supplemental Indenture

  	
  Supplemental
  Indenture

  
	
  Dated October 1, 1954

  	
  Dated July 1, 1989

  
	
   

  	
   

  
	
  Supplemental Indenture

  	
  Supplemental
  Indenture

  
	
  Dated September 1, 1956

  	
  Dated June 1, 1990

  
	
   

  	
   

  
	
  Supplemental Indenture

  	
  Supplemental
  Indenture

  
	
  Dated August 1, 1957

  	
  Dated October 1, 1992

  
	
   

  	
   

  
	
  Supplemental Indenture

  	
  Supplemental
  Indenture

  
	
  Dated July 1, 1958

  	
  Dated April 1, 1993

  
	
   

  	
   

  
	
  Supplemental Indenture

  	
  Supplemental
  Indenture

  
	
  Dated December 1, 1960

  	
  Dated December 1, 1993

  
	
   

  	
   

  
	
  Supplemental Indenture

  	
  Supplemental
  Indenture

  
	
  Dated August 1, 1961

  	
  Dated February 1, 1994

  

 

24

 

	
  Supplemental Indenture

  	
  Supplemental
  Indenture

  
	
  Dated June 1, 1962

  	
  Dated October 1, 1994

  
	
   

  	
   

  
	
  Supplemental Indenture

  	
  Supplemental
  Indenture

  
	
  Dated September 1, 1963

  	
  Dated June 1, 1995

  
	
   

  	
   

  
	
  Supplemental Indenture

  	
  Supplemental
  Indenture

  
	
  Dated August 1, 1966

  	
  Dated April 1, 1997

  
	
   

  	
   

  
	
  Supplemental Indenture

  	
  Supplemental
  Indenture

  
	
  Dated June 1, 1967

  	
  Dated March 1, 1998

  
	
   

  	
   

  
	
  Supplemental Indenture

  	
  Supplemental
  Indenture

  
	
  Dated October 1, 1967

  	
  Dated May 1, 1999

  
	
   

  	
   

  
	
  Supplemental Indenture

  	
  Supplemental
  Indenture

  
	
  Dated May 1, 1968

  	
  Dated June 1, 2000

  
	
   

  	
   

  
	
  Supplemental Indenture

  	
  Supplemental
  Indenture

  
	
  Dated October 1, 1969

  	
  Dated August 1, 2000

  
	
   

  	
   

  
	
  Supplemental Indenture

  	
  Supplemental
  Indenture

  
	
  Dated February 1, 1971

  	
  Dated June 1, 2002

  
	
   

  	
   

  
	
  Supplemental Indenture

  	
  Supplemental
  Indenture

  
	
  Dated May 1, 1971

  	
  Dated July 1, 2002

  
	
   

  	
   

  
	
  Supplemental Indenture

  	
  Supplemental
  Indenture

  
	
  Dated February 1, 1972

  	
  Dated August 1, 2002

  
	
   

  	
   

  
	
  Supplemental Indenture

  	
  Supplemental
  Indenture

  
	
  Dated January 1, 1973

  	
  Dated May 1, 2003

  
	
   

  	
   

  
	
  Supplemental Indenture

  	
  Supplemental
  Indenture

  
	
  Dated January 1, 1974

  	
  Dated August 1, 2003

  
	
   

  	
   

  
	
  Supplemental Indenture

  	
  Supplemental
  Indenture

  
	
  Dated September 1, 1974

  	
  Dated July 1, 2005

  
	
   

  	
   

  
	
  Supplemental Indenture

  	
  Supplemental
  Indenture

  
	
  Dated April 1, 1975

  	
  Dated May 1, 2006

  
	
   

  	
   

  
	
  Supplemental Indenture

  	
  Supplemental
  Indenture

  
	
  Dated May 1, 1975

  	
  Dated June 1, 2007

  
	
   

  	
   

  
	
  Supplemental Indenture

  	
  Supplemental
  Indenture

  
	
  Dated March 1, 1976

  	
  Dated March 1, 2008

  

 

25

 

	
  Supplemental Indenture

  	
  Supplemental
  Indenture

  
	
  Dated June 1, 1981

  	
  Dated November 1, 2009

  
	
   

  	
   

  
	
  Supplemental Indenture

  	
   

  
	
  Dated December 1, 1981

  	
   

  

 

SECTION 4.06. 
The property covered by this Financing Statement also shall secure
additional series of First Mortgage Bonds of the debtor which may be issued
from time to time in the future in accordance with the provisions of the
Indenture.

 

ARTICLE V

MISCELLANEOUS

 

SECTION 5.01. 
The recitals of fact herein, except the recital that the Trustee has
duly determined to execute this Supplemental Trust Indenture and be bound,
insofar as it may lawfully so do, by the provisions hereof and in the bonds
shall be taken as statements of the Company and shall not be construed as made
by the Trustee.  The Trustee makes no
representations as to the value of any of the property subject to the lien of
the Indenture, or any part thereof, or as to the title of the Company thereto,
or as to the security afforded thereby and hereby, or as to the validity of
this Supplemental Trust Indenture or of the bonds issued under the Indenture by
virtue hereof (except the Trustee’s certificate) and the Trustee shall incur no
responsibility in respect of such matters.

 

SECTION 5.02. 
This Supplemental Trust Indenture shall be construed in connection with
and as a part of the Indenture.

 

SECTION 5.03. 
(a) If any provision of the Indenture or this Supplemental Trust
Indenture limits, qualifies or conflicts with another provision of the
Indenture required to be included in indentures qualified under the Trust
Indenture Act of 1939, as amended (as enacted prior to the date of this
Supplemental Trust Indenture) by any of the provisions of Sections 310 to 317,
inclusive, of the said Act, such required provision shall control.

 

(b)                                 In case any one or more of the provisions
contained in this Supplemental Trust Indenture or in the bonds issued hereunder
shall be invalid, illegal or unenforceable in any respect, the validity,
legality and enforceability of the remaining provisions contained herein and
therein shall not in any way be affected, impaired, prejudiced or disturbed
thereby.

 

SECTION 5.04. 
Wherever in this Supplemental Trust Indenture the word “Indenture” is
used without the prefix “1937,” “Original,” “Restated,” or “Supplemental,” such
word was used intentionally to include in its meaning both the 1937 Indenture,
as amended and restated by the Restated Indenture, and all indentures
supplemental thereto.

 

SECTION 5.05. 
Wherever in this Supplemental Trust Indenture either of the parties
hereto is named or referred to, this shall be deemed to include the successors
or assigns of such party, and all the covenants and agreements in this
Supplemental Trust Indenture contained by or on behalf of the Company or by or
on behalf of the Trustee shall bind and inure to the benefit of the respective
successors and assigns of such parties, whether so expressed or not.

 

26

 

SECTION 5.06. 
(a) This Supplemental Trust Indenture may be executed
simultaneously in several counterparts, and all said counterparts executed and
delivered, each as an original, shall constitute but one and the same
instrument.

 

(b)                                 The Table of Contents and the descriptive
headings of the several Articles of this Supplemental Trust Indenture were
formulated, used and inserted in this Supplemental Trust Indenture for
convenience only and shall not be deemed to affect the meaning or construction
of any of the provisions hereof.

 

The total aggregate
amount of obligations to be issued forthwith under this Supplemental Trust
Indenture shall not exceed $500,000,000, consisting of the Series 2015
Bonds in the aggregate principal amount of $250,000,000 and the Series 2040
Bonds in the aggregate principal amount of $250,000,000.

 

 

27

 

IN WITNESS WHEREOF, on
this 4th day of August, A.D. 2010, NORTHERN STATES POWER COMPANY, a Minnesota
corporation, party of the first part, has caused its corporate name and seal to
be hereunto affixed and this Supplemental Trust Indenture effective August 1,
2010, to be signed by its President or a Vice President, and attested by its
Secretary or an Assistant Secretary, for and in its behalf, and THE BANK OF NEW
YORK MELLON TRUST COMPANY, N.A. (as successor trustee to Harris Trust and
Savings Bank and BNY Midwest Trust Company), a national banking association, as
Trustee, party of the second part, to evidence its acceptance of the trust
hereby created, has caused its corporate name to be hereunto affixed, and this
Supplemental Trust Indenture effective August 1, 2010, to be signed by its
President, a Vice President or an Assistant Vice President, and attested by its
Secretary or an Assistant Secretary, for and in its behalf.

 

	
   

  	
   

  	
  NORTHERN STATES
  POWER COMPANY

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By: George E.
  Tyson II

  
	
   

  	
   

  	
  Its: Vice
  President and Treasurer

  
	
  Attest:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By: Patrice D.
  Blaeser

  	
   

  	
   

  
	
  Its: Assistant
  Secretary

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Executed by
  Northern States Power Company in the presence of:

  	
   

  	
  (CORPORATE
  SEAL)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Witness: Mary P.
  Schell

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Witness: Kaydra A.
  Kirtz

  	
   

  	
   

  

 

 

	
   

  	
   

  	
  THE BANK OF NEW
  YORK MELLON TRUST COMPANY, N.A., as Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  Linda Garcia

  
	
   

  	
   

  	
  Its:

  	
  Vice President

  
	
   

  	
   

  	
   

  

 

 

	
  STATE OF MINNESOTA

  	
  )

  	
   

  
	
   

  	
  )

  	
  SS.:

  
	
  COUNTY OF HENNEPIN

  	
  )

  	
   

  

 

George E. Tyson II and Patrice D. Blaeser, being severally duly sworn, each deposes and says
that they are Vice
President and Treasurer and Assistant Secretary, respectively, of Northern
States Power Company, the corporation described in and which executed the
within and foregoing Supplemental Trust Indenture, as mortgagor; and each for
himself or herself further says that said Supplemental Trust Indenture was
executed in good faith, and not for the purpose of hindering, delaying, or
defrauding any creditor of the said mortgagor.

 

 

	
   

  	
   

  	
   

  
	
  George E. Tyson II

  	
   

  	
  Patrice D. Blaeser

  

 

 

	
  STATE OF MINNESOTA

  	
  )

  	
   

  
	
   

  	
  )

  	
  SS.:

  
	
  COUNTY OF HENNEPIN

  	
  )

  	
   

  

 

On this
           day of August,
A.D. 2010, before me, Pamela C. Wilson,
a Notary Public in and for said County in the State aforesaid, personally
appeared George E. Tyson II and Patrice D. Blaeser
to me personally known, and to me known to be the Vice President and Treasurer
and Assistant Secretary, respectively, of Northern States Power Company, one of
the corporations described in and which executed the within and foregoing
instrument, and who, being by me severally duly sworn, each for himself or
herself, did say that he or she, the said George E. Tyson II is a Vice President and Treasurer and Patrice D. Blaeser
is an Assistant Secretary, of said Northern States Power Company, a
corporation; that the seal affixed to the within and foregoing instrument is
the corporate seal of said corporation, and that said instrument was executed
on behalf of said corporation by authority of its stockholders and board of
directors; and said George E. Tyson II and Patrice D. Blaeser each acknowledged said instrument to
be the free act and deed of said corporation and that such corporation executed
the same.

 

WITNESS my hand and
notarial seal, this        day of August, A.D. 2010.

 

 

	
   

  	
   

  	
   

  
	
  Pamela C. Wilson

  	
   

  	
   

  
	
  Notary Public

  	
   

  	
   

  
	
  My commission
  expires: January 31, 2015

  	
   

  	
   

  
	
   

  	
   

  	
  (NOTARY SEAL)

  

 

 

	
  STATE OF ILLINOIS

  	
  )

  	
   

  
	
   

  	
  )

  	
  SS.:

  
	
  COUNTY OF COOK

  	
  )

  	
   

  

 

On this the day of
                                        ,
before me,
                        ,
notary public, the undersigned officer, personally appeared Linda Garcia, is Vice President of The Bank of New York Mellon
Trust Company, N.A., the national banking association; and that said foregoing
instrument was executed on behalf of said association by authority of its board
of directors; and said Linda Garcia acknowledged
said instrument to be the free act and deed of said association and that such
association executed the same.

 

 

	
   

  	
   

  	
   

  
	
   

  	
   

  	
  L. Garcia

  

 

 

	
  STATE OF ILLINOIS

  	
  )

  	
   

  
	
   

  	
  )

  	
  SS.:

  
	
  COUNTY OF COOK

  	
  )

  	
   

  

 

On this
[    ] day of [                            ], A.D. 2010, before me, [                            ], a Notary Public in and for said County in the
State aforesaid, personally appeared [                            ]to me personally known, and to me known to be a
Vice President of The Bank of New York Mellon Trust Company, N.A., the national
banking association described in and which executed the within and foregoing
instrument, and who, being by me severally duly sworn, did say that Linda Garcia is a Vice President of The Bank of New York Mellon
Trust Company, N.A., the national banking association; and that said instrument
was executed on behalf of said association by authority of its board of
directors; and said Linda Garcia
acknowledged said instrument to be the free act and deed of said association
and that such association executed the same.

 

WITNESS my hand and
notarial seal, this [      ] day of [                            ], A.D. 2010.

 

	
   

  	
   

  	
   

  
	
  [                            ]

  	
   

  	
   

  
	
  Notary Public,
  State of
  [                            ]

  	
   

  	
   

  
	
  My commission
  expires:
  [                            ]

  	
   

  	
   

  
	
   

  	
   

  	
  (NOTARY SEAL)

  

 

 

SCHEDULE
A

 

The property
referred to in Article I of the foregoing Supplemental Trust Indenture
from Northern States Power Company to The Bank of New York Mellon Trust Company
N.A. as successor trustee to Harris Trust and Savings Bank, effective as of August 1,
2010, includes the following property hereafter more specifically described.
Such description, however, is not intended to limit or impair the scope or
intention of the general description contained in the granting clauses or
elsewhere in the Indenture.

 

I.              PROPERTIES IN THE STATE OF
MINNESOTA

 

1.             The following described real
property, situate, lying and being in the County of Dodge, to wit:

 

Dodge Center Service
Center (expansion)

 

Lots Five (5) and
Six (6) of Block Six (6) except the northerly fifteen feet (15’)
thereof, Village of Dodge Center, Dodge County, Minnesota

 

2.      The following described real property,
situate, lying and being in the County of Sibley, to wit:

 

Kelso Substation

 

That part of the
Southwest Quarter of the Southwest Quarter (SW 1⁄4 of SW 1⁄4) of Section Thirty-five
(35), Township One Hundred Twelve (112) North, Range Twenty-seven (27) West,
Sibley County, Minnesota, described as follows:

 

Beginning at the
northeast corner of said Southwest Quarter of the Southwest Quarter of Section 35;
thence South 00 degrees 41 minutes 04 seconds East 445.00 feet along the east
line of said Southwest Quarter of the Southwest Quarter of Section 35;
thence South 89 degrees 18 minutes 56 seconds West 475.00 feet; thence North 00
degrees 41 minutes 04 seconds West 449.04 feet to the north line of said
Southwest Quarter of the Southwest Quarter of Section 35; thence North 89
degrees 48 minutes 12 seconds East 475.02 feet along the north line of said
Southwest Quarter of the Southwest Quarter of Section 35 to the point of
beginning.

 

Subject to a public
road over the easterly portion thereof.

 

3.             The following described real
property, situate, lying and being in the County of Stearns, to wit:

 

Paynesville
Switching Station

 

 

All that part of the
Southeast Quarter of the Northwest Quarter (SE 1⁄4 of NW 1⁄4) of Section 9,
Township 122 North, Range 32 West described as follows:

 

Beginning at the
Southeast corner of said Southeast Quarter of the Northwest Quarter (SE 1⁄4 of NW
1⁄4); thence West, assumed bearing, along the South line of said Southeast
Quarter of the Northwest Quarter (SE 1⁄4 of NW 1⁄4) a distance of 600.00 feet;
thence North at a right angle to said South line a distance of 763.00 feet;
thence East at a right angle and running to the East line of said Southeast
Quarter of the Northwest Quarter (SE 1⁄4 of NW 1⁄4); thence Southerly along said
East line to the point of beginning, and there terminating; EXCEPTING THEREFROM
the South 363.00 feet thereof.

 

4.             The following described real
property, situate, lying and being in the County of Washington, to wit:

 

Alan S. King Plant
(buffer)

 

Lots 1, 2, 3, 4 and
5, 2nd Point Addition, Washington County, Minnesota, according to the plat
thereof on file and of record.

 

III. TRANSMISSION
LINES OF THE COMPANY

 

The electric
transmission lines of the Company, including towers, poles, pole lines, wire
switch racks, switchboards, insulators, and other appliances and equipment, and
all other property forming a part thereof or appertaining thereto, and all
service lines extending therefrom; together with all rights for or relating to
the construction, maintenance of operation thereof, through, over, under, or
upon any private property of public streets or highways within as well as
without the corporate limits of any municipal corporation, and particularly the
following described lines, to wit:

 

IN THE STATE
OF MINNESOTA

 

1. Line 5550    16.08 miles Chisago Sub to Lindstrom Sub to
Lawrence Creek Sub

 

Chisago County

Sections 1, 12, 13,
24, and 25, Township 34 North, Range 21 West

Sections 25, 26, 27,
28, 29 and 30, Township 34 North, Range 20 West

Sections 26, 27, 28,
29 and 30, Township 34 North, Range 19 West.

 

2. Line 5549    16.35 miles Wilmarth Sub to South Bend Sub
to Stoney Creek Sub (GRE owned) to GRE Interconnection.

 

Blue Earth County

Section 31,
Township 109 North, Range 26 West

 

 

Sections 15, 22, 27,
29, 30, 34, and 36, Township 108 North, Range 27 West

Sections 1, 2 and 3,
Township 107 North, Range 27 West

Sections 20 and 29,
Township 108 North, Range 26 West

 

Nicollet County

Sections 35 and 36,
Township 109 North, Range 27 West

Sections 2, 11 and
15, Township 108 North, Range 27 West

 

 

This instrument was
drafted by Northern States Power Company, 414 Nicollet Mall, Minneapolis,
Minnesota 55401.

 

Tax statements for
the real property described in this instrument should be sent to Northern
States Power Company, 414 Nicollet Mall, Minneapolis, Minnesota 55401.

 

Return recorded
document(s) to David W. Hughes, Xcel Energy, 414 Nicollet Mall (MP-8),
Minneapolis, Minnesota 55401.

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