**Exhibit 99.01**

 

## **PSCo’s CAUTIONARY FACTORS**

##  

The Private SecuritiesLitigation Reform Act provides a “safe harbor” for forward-looking statementsto encourage such disclosures without the threat of litigation, providing thosestatements are identified as forward-looking and are accompanied by meaningful,cautionary statements identifying important factors that could cause the actualresults to differ materially from those projected in the statement.  Forward-looking statements are made inwritten documents and oral presentations of PSCo.  These statements are based on management’sbeliefs as well as assumptions and information currently available tomanagement. Such forward-looking statements are intended to be identified inthis document by the words “anticipate,” “believe,” “estimate,” “expect,” “intend,”“may,” “objective,” “outlook,” “plan,” “project,” “possible,” “potential,” “should”and similar expressions. In addition to any assumptions and other factorsreferred to specifically in connection with such forward-looking statements,factors that could cause PSCo’s actual results to differ materially from thosecontemplated in any forward-looking statements include, among others, thefollowing:

 

·                  Economicconditions, including inflation rates, monetary fluctuations and their impacton capital expenditures;

·                  The risk of asignificant slowdown in growth or decline in the U. S. economy, the risk ofdelay in growth recovery in the U. S. economy or the risk of increased cost forinsurance premiums, security and other items as a consequence of past or futureterrorist attacks;

·                  Trade,monetary, fiscal, taxation and environmental policies of governments, agenciesand similar organizations in geographic areas where PSCo has a financialinterest;

·                  Customerbusiness conditions, including demand for their products or services and supplyof labor and materials used in creating their products and services;

·                  Financial orregulatory accounting principles or policies imposed by the FinancialAccounting Standards Board, the SEC, the Federal Energy Regulatory Commissionand similar entities with regulatory oversight;

·                  Availability orcost of capital such as changes in: interest rates; market perceptions of theutility industry, PSCo; or security ratings;

·                  Factorsaffecting 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 gassupply costs or availability due to higher demand, shortages, transportationproblems or other developments; environmental incidents; or electrictransmission or natural gas pipeline constraints;

·                  Employeeworkforce factors, including loss or retirement of key executives, collectivebargaining agreements with union employees, or work stoppages;

·                  Increasedcompetition in the utility industry or additional competition in the marketsserved by PSCo;

·                  State, federaland foreign legislative and regulatory initiatives that affect cost andinvestment recovery, have an impact on rate structures and affect the speed anddegree to which competition enters the electric and natural gas markets;industry restructuring initiatives; transmission system operation and/oradministration initiatives; recovery of investments made under traditionalregulation; nature of competitors entering the industry; retail wheeling; a newpricing structure; and former customers entering the generation market;

·                  Environmentallaws and regulations;

·                  Rate-settingpolicies or procedures of regulatory entities, including environmentalexternalities, which are values established by regulators assigningenvironmental costs to each method of electricity generation when evaluatinggeneration resource options;

·                  Socialattitudes regarding 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;

·                  Risksassociated with implementations of new technologies; and

·                  Other businessor investment considerations that may be disclosed from time to time in PSCo’sSEC filings,including “RiskFactors” in this Form 10-K, or in other publicly disseminated writtendocuments.

 

PSCo undertakes noobligation to publicly update or revise any forward-looking statements, whetheras a result of new information, future events or otherwise. The foregoingreview of factors should not be construed as exhaustive.

 

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