**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” 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:

 

·   Economicconditions, including their impact on capital expenditures and the ability ofPSCo to obtain financing on favorable terms, inflation rates and monetaryfluctuations;

 

·   Businessconditions in the energy business;

 

·   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;

 

·   Financialor regulatory 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;

 

·   Availabilityor cost of capital such as changes in: interest rates; market perceptions ofthe utility 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;

 

·   Stateand federal 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/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;

 

·   Costand other effects of legal and administrative proceedings, settlements,investigations and claims;

 

·   Technologicaldevelopments that result in competitive disadvantages and create the potentialfor impairment of existing assets;

 

·   Significantslowdown in growth or decline in the U.S. economy, delay in growth or recoveryof the U.S. economy or increased cost for insurance premiums, security andother items;

 

·   Risksassociated with implementation of new technologies; and

 

·   Otherbusiness or investment considerations that may be disclosed from time to timein 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.

 

1

----