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**Exhibit 99.01**

 

**Public Service Company of Colorado 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 in written documents and oral presentationsof PSCo. These statements are based on management’s beliefs as well asassumptions and information currently available to management. When used inPSCo’s documents or oral presentations, the words “anticipate,” “estimate,” “expect,”“projected,” objective,” “outlook,” “forecast,” “possible,” “potential” andsimilar expressions are intended to identify forward-looking statements. Inaddition to any assumptions and other factors referred to specifically in connectionwith such forward-looking statements, factors that could cause PSCo’s actualresults to differ materially from those contemplated in any forward-lookingstatements include, among others, the following:

 

·             Economic conditions, including inflation rates,monetary fluctuations and their impact on 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;

 

·             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 Securities and Exchange Commission, the FederalEnergy Regulatory Commission and similar entities with regulatory oversight;

 

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

 

·             Factorsaffecting utility 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;

 

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

 

·             Increasedcompetition in the utility industry;

 

·             State andfederal legislative 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 and natural gas markets; industryrestructuring initiatives; transmission system operation and/or administrationinitiatives; recovery of investments made under traditional regulation; natureof competitors entering the industry; retail wheeling; a new pricing structure;and former customers entering the generation market;

 

·             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;

 

·             Risksassociated with the California power market;

 

·             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;

 

·             Risks associated withimplementation of new technologies; and

 

·             Other businessor investment considerations that may be disclosed from time to time in PSCo’sSEC filings or in other publicly disseminated written documents.

 

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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