**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 inconnection with such forward-looking statements, factors that could cause PSCo’sactual results to differ materially from those contemplated in anyforward-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, Xcel Energy  or any of its other subsidiaries; or security ratings;                                                                                                                                                                                                                                                                                                                                                                |
| · |   | Factors affecting utility 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 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;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| · |   | State and federal 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;                                                                                                                                                                                                                                                                                                                                                                      |
| · |   | 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 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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