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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) SEPTEMBER 14, 1999
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NRG ENERGY, INC.
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(Exact name of registrant as specified in its charter)
DELAWARE
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(State or other jurisdiction of incorporation)
333-33397 41-1724239
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(Commission File Number) (IRS Employer Identification No.)
1221 NICOLLET MALL, SUITE 700 MINNEAPOLIS, MN 55403
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code 612-373-5300
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(Former name or former address, if changed since last report)
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ITEM 5. OTHER EVENTS
In connection with Northern States Power Company's (NSP) September 14, 1999
meeting with financial analysts, NRG indicated that earnings for the year ended
December 31, 1999 are expected to be approximately $62 million or 40 cents per
NSP common share.
NRG also indicated that earnings for the year 2000 are expected to be 80 cents
or more per NSP common share. The growth in earnings is expected to come
primarily in North America and Europe as shown below:
NRG EARNINGS ANALYSIS (CENTS/NSP SHARE)
<TABLE>
<CAPTION>
ACTUAL ESTIMATE ESTIMATE ESTIMATE
FIRST SECOND TOTAL YEAR
HALF 1999 HALF 1999 1999 2000
- --------------------------------- ----------------- ---------------- ----------------- -----------------
<S> <C> <C> <C> <C>
North America 11 45 56 +
Australia 3 4 7 Flat
Europe 1 11 12 +
Emerging Markets 3 2 5 +
Interest Expense -7 -13 -20 -
Corporate Services/
Business Development -10 -10 -20 -
--- --- --- -
Total 1 39 40 > 80(cent)
--
</TABLE>
Note: the "+" designations in the year 2000 indicate an expected increase due
to the full year impact of projects that were closed in 1999 as well as projects
that are expected to close and contribute to earnings prior to December 31,
2000. The "-" designations indicate an expected decrease due to the full
year impact of 1999 financing activities and proposed 2000 financing activities
as well as the increased support costs associated with a larger asset base.
NRG also provided a summary of acquisitions that have closed or reached full
commercial operation in 1999 or are expected to close or reach full commercial
operation before December 31, 2000 along with estimated ranges of full year
earnings for each project in cents per NSP common share:
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<TABLE>
<CAPTION>
NRG
NRG SHARE OF PROJECT FULL YEAR
PROJECT COST EQUITY EPS RANGE
PROJECT MW ($ MILLION) ($ MILLION) ((CENT)/NSP Share)
- -------------------------------------- ----------- -------------------- ---------------- ---------------------
<S> <C> <C> <C> <C> <C>
Huntley/Dunkirk 1,360 392 153 6 8
Astoria/Arthur Kill 1,456 562 220 16 20
Encina/Ct's 609 222 104 5 7
Somerset 229 66 25 1 2
Oswego * 1,700 101 47 3 5
CL&P * 2,235 503 258 16 20
Cajun * 853 537 172 6 8
ECKG ** 154 173 44 1 2
Enfield ** 99 73 10 1 3
Other developing projects * 8 12
</TABLE>
Note: EPS forecasts are based on a corporate capital structure with an assumed
equity ratio of 50% to 60%. The EPS ranges shown do not include corporate
interest and overhead allocations.
* - NRG does not yet own this project but has entered into an agreement to
acquire the project
**- NRG owns this project, but the project has not yet
achieved full commercial operation
FORWARD-LOOKING STATEMENTS
Forward looking statements above include but are not limited to the future
performance of various facilities and expected operating results for future
periods.
In addition to any assumptions and other factors referred to specifically in
connection with such forward-looking statements, factors that could cause NRG's
actual results to differ materially from those contemplated in any
forward-looking statements include, among others, the following:
- - Economic conditions including inflation rates and monetary or currency
exchange rate fluctuations;
- - Trade, monetary, fiscal, taxation, and environmental policies of
governments, agencies and similar organizations in geographic areas where
NRG has a financial interest;
- - Customer business conditions including demand for their products or
services and supply of labor and materials used in creating their products
and services;
- - Financial or regulatory accounting principles or policies imposed by the
Financial Accounting Standards Board, the Securities and Exchange
Commission, the Federal Energy Regulatory Commission and similar entities
with regulatory oversight;
- - Availability or cost of capital such as changes in: interest rates; market
perceptions of the power generation industry, NRG or any of its
subsidiaries; or security ratings;
- - Factors affecting power generation operations such as unusual weather
conditions; catastrophic weather-related damage; unscheduled generation
outages, maintenance or repairs; unanticipated changes to fossil fuel, or
gas supply costs or availability due to
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higher demand, shortages, transportation problems or other developments;
environmental incidents; or electric transmission or gas pipeline system
constraints;
- - Employee workforce factors including loss or retirement of key executives,
collective bargaining agreements with union employees, or work stoppages;
- - Volatility of energy prices in a deregulated market environment;
- - Increased competition in the power generation industry;
- - Cost and other effects of legal and administrative proceedings,
settlements, investigations and claims;
- - Technological developments that result in competitive disadvantages and
create the potential for impairment of existing assets;
- - Factors associated with various investments including conditions of final
legal closing, partnership actions, competition, operating risks,
dependence on certain suppliers and customers, domestic and foreign
environmental and energy regulations;
- - Limitations on NRG's ability to control the development or operation of
projects in which NRG has less than 100% interest;
- - The lack of operating history at development projects, the lack of NRG
operating history at the projects not yet owned and the limited operating
history at the remaining projects provide only a limited basis for
management to project the results of future operations;
- - Risks associated with timely completion of projects located at ECKG and
Enfield, including obtaining competitive contracts, obtaining regulatory
and permitting approvals, local opposition, construction delays and other
factors beyond NRG's control;
- - The failure to timely satisfy the closing conditions contained in the
definitive agreements for the acquisitions of projects subject to
definitive agreements but not yet closed, many of which are beyond NRG's
control;
- - Factors challenging the successful integration of projects not previously
owned or operated by NRG, including the ability to obtain operating
synergies;
- - Factors associated with operating in foreign countries including: delays in
permitting and licensing, construction delays and interruption of business,
political instability, risk of war, expropriation, nationalization,
renegotiation, or nullification of existing contracts, changes in law, and
the ability to convert foreign currency into United States dollars;
- - Other business or investment considerations that may be disclosed from time
to time in NRG's Securities and Exchange Commission filings or in other
publicly disseminated written documents, including NRG's Registration
Statement No. 333-33397, as amended.
NRG undertakes no obligation to publicly update or revise any forward-looking
statements, whether as a result of new information, future events or otherwise.
The foregoing review of factors pursuant to the Act should not be construed as
exhaustive.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
NRG Energy, Inc
(Registrant)
By /s/
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Leonard A. Bluhm
Executive Vice President and
Chief Financial Officer
(Principal Financial Officer)
Dated: September 14, 1999
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