The rating on Public Service Co. of Colorado (PSCo) is based on the consolidated credit profile of utility holding company Xcel Energy Inc. and its vertically integrated utility subsidiaries, PSCo, Northern States Power Co. (NSP-Minnesota), Northern States Power Wisconsin (NSP-Wisconsin), and Southwestern Public Service Co. (SPS). Minneapolis, Minn.-based Xcel had $7.4 billion of debt and $105 million of preferred stock outstanding as of March 31, 2007, of which PSCo had $2.2 billion of debt outstanding. The rating on Xcel reflects its consolidated business profile of '5' (satisfactory) that incorporates its utilities' generally supportive state regulation, the relatively low-cost power supply and overall fuel diversity, and the diverse geographic service territories. The business risk profile of PSCo is '4' (strong). (Business
