The rating on Public Service Co. of Colorado is based on the consolidated credit profile of Xcel Energy Inc., parent company of Northern States Power Co. (NSP-Minnesota), Northern States Power Wisconsin (NSP-Wisconsin), Public Service of Colorado, and Southwestern Public Service Co. The rating reflects the utilities' solid business profile, which incorporates the generally supportive state regulation that governs each utility's rates, the relatively low-cost power supply and overall fuel diversity, and the diverse geographic region encompassed by the combined service territories of Xcel's subsidiaries. The rating also reflects a heavily leveraged financial profile in which adjusted debt represents 62% of total capital, well above the 55% benchmark for a solid 'BBB' rating. This degree of leverage is due, in nearly
