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                                                        EXHIBIT 10.03

                              AMENDED AND RESTATED
                        EFFECTIVE AS OF JANUARY 28, 1998

                        SUMMARY OF TERMS AND CONDITIONS
                                 OF EMPLOYMENT

                                JAMES J. HOWARD

     This document is a complete summary of oral and written
arrangements made between Northern States Power Company, a
Minnesota corporation, hereinafter called "NSP," and James J.
Howard, hereinafter called "Howard," effective February 1, 1987,
relating to the employment of Howard by NSP.

     1.   NSP employs Howard, and Howard will work for NSP as
President and Chief Executive Officer, effective February 1,
1987.  Howard also will be a member of the Board of Directors of
NSP.  Howard will devote his full time and efforts to his duties
on behalf of NSP for the profit, benefit and advantages of the
business of NSP.

     2.   NSP will pay Howard a basic salary at the rate of
$375,000 per year, payable in semi-monthly installments, and paid
at the monthly rate of $4,000 for February through December of
1987, and the balance of $331,000 payable in January of 1988.

     3.   After completing 12 months of employment on January 1,
1988, Howard will receive a one-time cash payment of $187,500 as
his sole award for the executive incentive program for 1987.

     4.   To offset the loss of income Howard would have earned
from performance units and stock options from American
Technologies and Information Corporation ("Ameritech"), Howard
will receive a one-time payment of $230,000 from NSP upon
completion of 12 months of employment on January 31, 1988.

     5.   Howard may defer all or any specified portion of the
foregoing amounts due and payable in 1988 under the NSP Deferred
Compensation Plan if he files a written election in that regard
with the Secretary of NSP prior to February 1, 1987.  He will be
eligible to defer under the provisions of that Plan any other
compensation to be earned during 1988 at the same time as
elections are filed by other Participants in the Plan.

     6.   Howard will be eligible for a 50% executive incentive
plan participation beginning on and after January 1, 1988, based
upon mutually established criteria and pending approval by the
NSP Board of Directors.

     7.   Howard will receive six weeks of vacation per year
accrued on a pro rata basis, and the same paid holidays and sick
leave as is made available to other full-time benefit non-union
employees of NSP.

     8.   NSP will purchase for Howard disability insurance to
provide Howard with a 50% of base pay benefit in the event of
disability during the first year of employment.  After one year
of employment, Howard will be eligible for the disability
benefits provided under the Northern States Power Company Pension
Plan.

     9.   Howard shall be eligible to elect, in accordance with
the provisions of the plans, coverage for himself and his
dependents, in the same manner as any other newly hired full-time
non-union employee, under the life insurance, medical and dental
programs provided by NSP.  In like manner, Howard will be
eligible to participate in all other benefits provided to NSP
full-time benefit non-union employees such as the NSP Retirement
Savings Plan and the NSP-ESOP.  (Eligibility under the latter
Plans will commence in 1988.)  In lieu of the commitment by NSP
to provide additional life insurance coverage, NSP will pay
Howard $12,250 on January 31, 1988.

     10.  NSP will pay initiation fees and monthly dues at the
Minneapolis Club for Howard as well as for a country club of his
choice.

     11.  NSP will provide Howard with a fully-equipped leased
American car of his choice and a heated garage space at work.
Personal travel outside the NSP territory will be subject to
reimbursement at the rates periodically established by NSP.

     12.  NSP will provide to Howard an annual physical by a
doctor of his choice and a reasonable allowance for financial
planning expenses, including tax and asset management, as
requested by Howard.

     13.  If Howard leaves NSP prior to age 60, Howard will
receive payments equivalent to the NSP Pension Plan's formula for
his period of service from
February 1, 1987, to date of termination ignoring any limitations
on benefits, service, or compensation.  After completion of one
year of employment, the minimum payment will be $22,535 annually.
If Howard works past age 60, NSP will determine his combined
benefits from the Northern States Power Company Pension Plan and
supplemental NSP payments, as though he had completed 30 years of
service; provided, however, that those combined benefits shall be
reduced by the excess, if any, of the annual retirement benefits
of $151,296 he earned from Ameritech over the annual retirement
benefit that the Pension Plan's actuaries reasonably estimate is
equivalent to the accumulated value, at the time Howard's pension
benefit payments begin, of the monthly benefit payments he would
have received prior to that time if monthly benefit payments had
commenced at the end of the month following the month he attained
age 60.  This benefit shall be paid in a lump sum at retirement.
The amount of the lump sum shall be determined using the interest
rate for valuing immediate annuities used by the Pension Benefit
Guaranty Corporation at January 1 of the year in which such
payment is being made, or if no such rate has been established
then the PBGC rate in effect for the previous December.  The
mortality rates to be used shall be the mortality rates set forth
in the Appendix to the NSP Pension Plan in effect at the time the
payment is made.

     14.  If Howard is terminated involuntarily by NSP within the
first three years of employment, except for misconduct, NSP will
pay Howard severance pay according to the following schedule:


          During 1st year     -    remaining pay for the
                              12 months (net of $375,000
                              + $187,500 + $230,000) plus
                              two years annual base pay;

          During 2nd year     -    remaining base pay for the 12-
                              month period plus one year
                              annual base pay;

          During 3rd year     -    one year annual base pay.

If Howard resigns voluntarily, no severance pay will be provided.

     15.  NSP will provide to Howard relocation expenses to
include third party purchase, mortgage interest differential,
physical move, temporary living expenses up to 180 days, house
hunting trips (including expenses of spouse) as needed and one
month base pay for miscellaneous moving expenses.

     16.  All compensation, perks and employee benefits provided
to Howard by NSP will be subject to all applicable tax laws.

     This document is a summary of the terms and conditions of
the employment of Howard by NSP and it is not intended to replace
and supercede the offers and communications with respect to this
subject matter.


