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) May 20, 1994
Northern States Power Company
(Exact name of registrant as specified in its charter)
Minnesota
(State or other jurisdiction of incorporation)
1-3034 41-0448030
(Commission File Number) (IRS Employer Identification No.)
414 Nicollet Mall, Mpls, MN 55401
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code 612-330-5500
(Former name of former address, if changed since last report)
Item 5. Other Events
On May 20, 1994, Moody's Investors Service downgraded the credit ratings of
Northern States Power Company (Minnesota), (the Company) and Northern States
Power Company (Wisconsin), a wholly owned subsidiary of the Company.
The Moody's news release is quoted from the Dow Jones News Wire as follows:
05/20/94
DOW JONES NEWS WIRE (DJ)
NSP
BOND MARKET NEWS (BON), SECURITIES RATINGS (RTG)
NEW YORK-DJ-Moody's Investors Service downgraded the credit
ratings of Northern States Power Co. (NSP), concluding the
rating review initiated on April 18.
About $2.0 billion of debt securities is affected, the
rating agency said.
Moody's said: "The rating action is based on provisions of
a Minnesota law that will adversely impact the company's future
competitive position.
"A recently adopted state law permits NSP to build up to 17
casks for the storage of spent nuclear fuel at the Prairie
Island nuclear power plant, but allows no additional storage
casks, except to decommission the plant. Consequently, NSP
will be forced to shut down Prairie Island in the year 2002
unless it can provide alternative storage outside of Minnesota.
"The legislation also requires the company to construct or
purchase 425 megawatts of wind power, an additional 400
megawatts of wind power subject to resource planning and least
cost planning requirements in Minnesota statutes, and 125
megawatts of bio-mass power over the next eight years. Since
these forms of power are considerably more costly than the
power currently generated by the company, NSP's power
production costs will increase materially over current levels.
In addition, the company must spend at least 2% of its revenues
on energy conservation improvement measures.
"The 1000 megawatt Prairie Island nuclear plant, built in
1974, represents an investment excluding depreciation of $827
million. According to a 1990 study, it will cost $420 million
in 1993 dollars to decommission the plant.
"Ratings downgraded are:
"Northern States Power Co.'s (Minnesota)-first mortgage
bonds and secured pollution control bonds to A1 from Aa2 -
shelf registration of senior secured debt to (P) A1 from (P)
Aa2 - unsecured pollution control bonds to A2 from Aa3 -
preferred stock to "a2" from "aa3" - and shelf registration for
preferred stock to (P) "a2" from (P) "aa3". The commercial
paper rating of the company remains unchanged at P-1.
"Northern States Power Co.'s (Wisconsin) - first mortgage
bonds to A1 from Aa2 and senior unsecured pollution control
bonds to A2 from Aa3," the rating agency said.
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.
Northern States Power Company
(a Minnesota Corporation)
By (Roger D. Sandeen)
Roger D. Sandeen
Vice President, Controller and
Chief Information Officer
Dated: May 26, 1994
