**Exhibit99.01**

 

## **PSCo’s CAUTIONARYFACTORS**

 

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 PSCo.  These statements are based on management’sbeliefs as well as assumptions and information currently available tomanagement. When used in PSCo’s documents or oral presentations, the words “anticipate,”“estimate,” “expect,” “projected,” objective,” “outlook,” “forecast,” “possible,”“potential” and similar expressions are intended to identify forward-lookingstatements. In addition to any assumptions and other factors referred tospecifically in connection with such forward-looking statements, factors thatcould cause PSCo’s actual results to differ materially from those contemplatedin any forward-looking statements include, among others, the following:

 
| • |   | Economic conditions,  including their impact on capital expenditures and the ability of PSCo to  obtain financing on favorable terms, inflation rates and monetary  fluctuations;                                                                                                                                                                                                                                                                                                                                                                                  |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • |   | Business conditions in  the energy business;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| • |   | Trade, monetary,  fiscal, taxation and environmental policies of governments, agencies and  similar organizations in geographic areas where PSCo has a financial  interest;                                                                                                                                                                                                                                                                                                                                                                                        |
| • |   | Customer business  conditions, including demand for their products or services and supply of  labor and materials used in creating their products and services;                                                                                                                                                                                                                                                                                                                                                                                                    |
| • |   | Financial or regulatory  accounting principles or policies imposed by the Financial Accounting  Standards Board, the SEC, the Federal Energy Regulatory Commission and  similar entities with regulatory oversight;                                                                                                                                                                                                                                                                                                                                                |
| • |   | Availability or cost of  capital such as changes in: interest rates; market perceptions of the utility  industry, PSCo; or security ratings;                                                                                                                                                                                                                                                                                                                                                                                                                       |
| • |   | Factors affecting  utility and nonutility operations such as unusual weather conditions;  catastrophic weather-related damage; unscheduled generation outages,  maintenance or repairs; unanticipated changes to fossil fuel or natural gas  supply costs or availability due to higher demand, shortages, transportation  problems or other developments; environmental incidents; or electric  transmission or natural gas pipeline constraints;                                                                                                                 |
| • |   | Employee workforce  factors, including loss or retirement of key executives, collective  bargaining agreements with union employees, or work stoppages;                                                                                                                                                                                                                                                                                                                                                                                                            |
| • |   | Increased competition  in the utility industry or additional competition in the markets served by  PSCo;                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| • |   | State, federal and  foreign legislative and regulatory initiatives that affect cost and  investment recovery, have an impact on rate structures and affect the speed  and degree to which competition enters the electric and natural gas markets;  industry restructuring initiatives; transmission system operation and/or  administration initiatives; recovery of investments made under traditional  regulation; nature of competitors entering the industry; retail wheeling; a  new pricing structure; and former customers entering the generation market; |
| • |   | Rate-setting policies  or procedures of regulatory entities, including environmental externalities,  which are values established by regulators assigning environmental costs to  each method of electricity generation when evaluating generation resource  options;                                                                                                                                                                                                                                                                                              |
| • |   | Social attitudes  regarding the utility and power industries;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| • |   | Risks associated with  the California power market;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| • |   | Cost and other effects  of legal and administrative proceedings, settlements, investigations and  claims;                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| • |   | Technological  developments that result in competitive disadvantages and create the  potential for impairment of existing assets;                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| • |   | Significant slowdown in  growth or decline in the U.S. economy, delay in growth or recovery of the  U.S. economy or increased cost for insurance premiums, security and other  items as a consequence of the Sept. 11, 2001 terrorist attacks;                                                                                                                                                                                                                                                                                                                     |
| • |   | Risks associated with  implementation of new technologies; and                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| • |   | Other business or  investment considerations that may be disclosed from time to time in PSCo’s  SEC filings or in other publicly disseminated written documents.                                                                                                                                                                                                                                                                                                                                                                                              |

 

PSCo 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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