Diversity of geography, fuel, and economy, Regulatory support, Plant operating efficiency, and Continuing cost reduction program. Parent debt increases debt service burden on its utilities, and Purchased-power obligations add more than $1 billion debt equivalent to consolidated balance sheet. The rating on utility holding company Xcel Energy Inc. is based on the consolidated credit profile of Xcel and its vertically integrated utility subsidiaries, Northern States Power Co. (NSP-Minnesota), Northern States Power Wisconsin (NSP-Wisconsin), Public Service Co. of Colorado (PSCo), and Southwestern Public Service Co. (SPS). Minneapolis, Minn.-based Xcel had $7.4 billion of debt and $105 million of preferred stock as of March 31, 2007. The rating on Xcel reflects its consolidated business profile of '5' (satisfactory) that incorporates its utilities'
