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) January 18, 1996
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 or former address, if changed since last report)
Item 5. Other Events
In conjunction with an upcoming private debt placement by NRG Energy, Inc.
(NRG), a wholly owned subsidiary of Northern States Power Company (NSP), NRG
will be releasing information on its 1995 financial results. The following
table sets forth, based on preliminary operating results, certain unaudited
data for NRG for the fiscal quarters ended December 31, 1994 and 1995 and for
the full years ended December 31, 1994 and 1995. NSP is expected to report
its corporate earnings for 1995 on January 24, 1996.
($ in Thousands)
Year Ended Quarter Ended
December 31, December 31,
1994 1995 1994 1995
Operating revenues $63,970 $64,180 $15,213 $16,689
Total operating cost
and expense 63,529 75,465 17,883 22,927
Equity in earnings of
projects 36,014 35,626 15,366 8,082
Net income 29,538 31,201 12,015 534
For the fourth quarter, NRG's net income decreased by $11.5 million. The
fourth quarter was affected by a combination of higher development expenses,
which increased overall operating expenses, and lower equity in earnings of
projects. Equity in earnings of projects were down, reflecting more
normalized earnings at the German MIBRAG project in 1995 and the impact of
the San Joaquin project plant shutdown due to a buyout of the contract. For
the fiscal year ended 1995, NRG's net income was $31.2 million, an increase
of $1.7 million compared to 1994.
"The decline in fourth quarter earnings was primarily attributable to three
factors," said Len Bluhm, NRG Chief Financial Officer. "In mid-1994 we
closed on MIBRAG and booked earnings in the second and third quarters based
on the knowledge we had at the time. As we improved financial reporting and
control systems throughout the year, we incorporated new information each
quarter." Consequently, the fourth quarter 1994 earnings contribution from
MIBRAG included year-to-date adjustments to income and expenses attributable
to prior quarters. In addition, coal production from MIBRAG is phasing down
in 1995 in preparation for the closing of one mine and opening of another.
"Another factor affecting earnings was a significant increase in project
development costs," Bluhm said. "NRG is currently pursuing a number of
projects and until we are reasonably assured the projects will come to
financial closure, we expense developments costs." Finally, Bluhm indicated
"the shutdown of the four San Joaquin plants, earlier in 1995, resulted in
lower earnings compared to the fourth quarter of 1994".
"We are still on track to contributing 20% of NSP's earnings by the year
2000," Bluhm added.
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 (Edward J. McIntyre)
Edward J. McIntyre
Vice President and Chief
Financial Officer
Dated: January 18, 1996
