**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 their impact on capital expenditures and the ability of PSCo toobtain financing on favorable terms, inflation rates and monetary fluctuations;

•               Business conditions in theenergy business;

•               Trade, monetary, fiscal,taxation and environmental policies of governments, agencies and similarorganizations in geographic areas where PSCo 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 or regulatoryaccounting principles or policies imposed by the Financial Accounting StandardsBoard, the Securities and Exchange Commission, the Federal Energy RegulatoryCommission and similar entities with regulatory oversight;

•               Availability or cost ofcapital such as changes in: interest rates; market perceptions of the utilityindustry, PSCo, Xcel Energy or any of its other subsidiaries; or securityratings;

•               Factors affecting utilityoperations such as unusual weather conditions; catastrophic weather-relateddamage; unscheduled generation outages, maintenance or repairs; unanticipatedchanges to fossil fuel or natural gas supply costs or availability due tohigher 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 bargainingagreements with union employees, or work stoppages;

•               Increased competition in theutility 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 and natural gas 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 policies orprocedures of regulatory entities, including environmental externalities, whichare values established by regulators assigning environmental costs to eachmethod of electricity generation when evaluating generation resource options;

•               Social attitudes regardingthe utility and power industries;

•               Risks associated with theCalifornia power market;

•               Cost and other effects oflegal and administrative proceedings, settlements, investigations and claims;

•               Technological developmentsthat result in competitive disadvantages and create the potential forimpairment of existing assets;

•               Significant slowdown ingrowth 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 withimplementation of new technologies; and

•               Other business or investmentconsiderations that may be disclosed from time to time in PSCo’s SEC filings orin 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.

 

 

1

----