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) April 22, 1997
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
On April 22, 1997, NRG Energy, Inc. (NRG) (a wholly owned subsidiary of
Northern States Power Company, a Minnesota corporation), CMS Energy
Corporation and Horizon Energy Australia Investments announced their
consortium as the successful bidder in the purchase of the Australian State
of Victoria's Loy Yang A power plant for $3.67 billion. The Loy Yang A power
plant is Victoria's largest and Australia's lowest-cost electric generating
facility. NRG will own a 25% interest in the plant. Other details are
contained in the news release attached hereto as Exhibit 99.01.
Item 7. Financial Statements and Exhibits
(c) EXHIBITS
Exhibit
No. Description
99.01 April 22, 1997 News Release from NRG
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 /s/
E J McIntyre
Vice President and Chief
Financial Officer
Dated: April 22, 1997
EXHIBIT INDEX
Method of Exhibit
Filing No. Description
DT 99.01 April 22, 1997 News Release
from NRG
DT = Filed electronically with this direct transmission.
NRG Energy, Inc. Exhibit 99.01
1221 Nicollet Mall
Suite 700 News Release
Minneapolis, MN 55403-2445
Telephone (612) 373-5300
Fax (612) 373-5340
NRG Energy Consortium Announced As Successful Bidder
of Loy Yang A
Minneapolis, MN (U.S.) April 22, 1997 - NRG Energy, Inc. (NRG), a subsidiary
of Northern States Power Company (NYSE: NSP), CMS Energy Corporation (NYSE:
CMS), and Horizon Energy Australia Investments today announced their
consortium as the successful bidder in the Australian State of Victoria's
privatization of its Loy Yang A power plant, Victoria's largest and
Australia's lowest-cost electric generating facility.
The consortium agreed to purchase, own and operate the 2,000-megawatt (MW),
brown coal-fired Loy Yang A plant and an associated coal mine. The purchase
price was (U.S.) $3.67 billion. The companies said 75 percent of the
acquisition is underwritten to be financed by a consortium of banks
coordinated by ANZ Investment Bank (ANZIB), with the remainder comprised of
equity. The bank debt was lead arranged and underwritten by ANZIB,
NationsBank, Banc National de Paris (BNP), Sumitomo, WestLB, First Chicago NBD
Bank, Indosuez, ABN Amro Bank, Deutsche Bank, National Australia Bank (NAB)
and AMP.
NRG will hold a 25 percent ownership interest in the acquired assets. CMS
Energy's independent power subsidiary, CMS Generation, will hold a 50 percent
ownership interest, with an Australian investment group called Horizon Energy
Investments holding the balance of 25 percent interest. The companies expect
to close the transaction and assume ownership and operating responsibility in
less than one month.
Loy Yang A is one of the newest and most modern of Victoria's brown coal-
fueled generating plants, with a high proportion of its electric output
committed under power supply contracts through the year 2000. The coal mine
included in the privatization has two billion tons of proven coal reserves,
enough to serve the coal supply needs for 50 years of the Loy Yang A and Loy
Yang B plants. The mine has a profitable supply contract with the 1,000 MW
Loy Yang B electric generating plant and the exclusive right to provide coal
supplies for a third Loy Yang generating plant, should it be built.
Loy Yang A will be jointly managed and operated by CMS and NRG.
"The Loy Yang investment is right in line with our growth strategies of
leveraging our market presence to create new opportunities and sticking to
what we know best," commented David Peterson, Chairman, President and CEO of
NRG. "NRG's strategy for Australia has been to identify opportunities that
complement our core strengths and expand our international presence. Loy Yang
A will become a key part of our company's future."
NRG is one of the world's leading independent power producers with nearly
5,000 MW of operating and ownership interests in 25 projects in the United
States, Europe, Latin America, UK, Indonesia and Australia. NRG project
involvement encompasses not only electric power generation processes using
solid fuel, natural gas and hydro, but mining, thermal and landfill gas
operations as well. NRG is the largest private power producer in Australia.
CMS Generation Co. is the independent power production unit of CMS Energy
Corporation. CMS is one of America's top independent power producers with
interests in 5,000 MW of generating capacity from more than 30 power plants
in operation or under construction in the United States, Argentina, India,
Jamaica, Morocco and the Philippines.
Horizon Energy Australia Investments is an institutional investment group
including Macquarie Bank, ANZ Investment Bank, Infrastructure Trust of
Australia and UniSuper.
Contact:
Trudy Marshall
Director of Communications
1-612-373-5410
