Standard&Poor's Ratings Services bases its rating on Public Service Co. of Colorado (PSCo) on the consolidated credit profile of holding company Xcel Energy Inc. This includes what we consider to be an excellent business risk profile and significant financial risk profile. Xcel is an integrated electric and natural gas utility holding company that owns vertically integrated utility subsidiaries PSCo, Northern States Power Wisconsin, Northern States Power Co. (NSP), and Southwestern Public Service Co. Xcel has geographic and economic diversity because its utilities operate in eight states, from the upper Midwest down to New Mexico. We assume that the service territories of NSP and PSCo, the largest utilities, will remain economically robust. Xcel's rating reflects a fully regulated utility
