The rating on utility holding company Xcel Energy Inc. is based on the company's consolidated credit profile and its vertically integrated utility subsidiaries, Northern States Power Co. (NSP-Minnesota), Northern States Power Wisconsin (NSP-Wisconsin), Public Service Co. of Colorado, and Southwestern Public Service Co. The rating on Minneapolis, Minn.-based Xcel 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 service territories. 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 equal measure,
