**Exhibit99.01**

**SPSCautionary Factors**

The Private Securities Litigation Reform Act providesa “safe harbor” for forward-looking statements to encourage such disclosureswithout the threat of litigation, providing those statements are identified asforward-looking and are accompanied by meaningful, cautionary statementsidentifying important factors that could cause the actual results to differmaterially from those projected in the statement. Forward-looking statementsare made in written documents and oral presentations of SPS. These statementsare based on management’s beliefs as well as assumptions and informationcurrently available to management. When used in SPS’ documents or oralpresentations, the words “anticipate,” “estimate,” “expect,” “projected,”objective,” “outlook,” “forecast,” “possible,” “potential” and similarexpressions are intended to identify forward-looking statements. In addition toany assumptions and other factors referred to specifically in connection withsuch forward-looking statements, factors that could cause SPS’ actual resultsto differ materially from those contemplated in any forward-looking statementsinclude, among others, the following:

·             Economic conditions,including their impact on capital expenditures and the ability of SPS to obtainfinancing on favorable terms, inflation rates and monetary fluctuations;

·             Business conditionsin the energy business;

·             Demand forelectricity in the nonregulated marketplace;

·             Trade, monetary,fiscal, taxation and environmental policies of governments, agencies andsimilar organizations in geographic areas where SPS has a financial interest;

·             Customer businessconditions, including demand for their products or services and supply of laborand materials used in creating their products and services;

·             Financial orregulatory accounting principles or policies imposed by the FinancialAccounting Standards Board, the Securities and Exchange Commission, the FederalEnergy Regulatory Commission and similar entities with regulatory oversight;

·             Availability or costof capital such as changes in: interest rates; market perceptions of theutility industry, SPS, Xcel Energy or any of its other subsidiaries; orsecurity ratings;

·             Factors affectingutility operations such as unusual weather conditions; catastrophicweather-related damage; unscheduled generation outages, maintenance or repairs;unanticipated changes to fossil fuel or natural gas supply costs oravailability due to higher demand, shortages, transportation problems or otherdevelopments; environmental incidents; or electric transmission or gas pipelineconstraints;

·             Employee workforcefactors, including loss or retirement of key executives, collective bargainingagreements with union employees, or work stoppages;

·             Increased competitionin the utility industry;

·             State and federallegislative and regulatory initiatives that affect cost and investmentrecovery, have an impact on rate structures and affect the speed and degree towhich competition enters the electric markets; industry restructuringinitiatives; transmission system operation and/or administration initiatives;recovery of investments made under traditional regulation; nature ofcompetitors entering the industry; retail wheeling; a new pricing structure;and former customers entering the generation market;

·             Rate-setting policiesor procedures of regulatory entities, including environmental externalities,which are values established by regulators assigning environmental costs toeach method of electricity generation when evaluating generation resourceoptions;

·             Social attitudesregarding the utility and power industries;

·             Cost and othereffects of legal and administrative proceedings, settlements, investigationsand claims;

·             Technologicaldevelopments that result in competitive disadvantages and create the potentialfor impairment of existing assets;

·             Significant slowdownin growth or decline in the U.S. economy, delay in growth or recovery of theU.S. economy or increased cost for insurance premiums, security and otheritems;

·             Risks associated withimplementation of new technologies; and

·             Otherbusiness or investment considerations that may be disclosed from time to timein SPS’ SEC filings, including “Risk Factors” in Item 1A of SPS’ Annual Reporton Form 10-K for the year ended Dec. 31, 2005, or in other publiclydisseminated written documents.

 

SPS undertakes no obligation to publicly update orrevise any forward-looking statements, whether as a result of new information,future events or otherwise. The foregoing review of factors should not beconstrued as exhaustive.

 

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