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) October 6, 1998
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 October 6, 1998, NSP's subsidiary, NRG Energy, Inc. (NRG), announced
that it will write down its accumulated project development expenditures for the
West Java, Indonesia project as of the end of the third quarter, due to the
current uncertainties surrounding all infrastructure projects in Indonesia. The
write-down for this project will be $20 million on a pre-tax basis and $13.3
million after tax. The project involves a 400 megawatt, coal-fired power
station in Cilegon, West Java, Indonesia.
NRG has also reviewed all international projects in development and has
created a reserve of $2 million against third quarter 1998 earnings ($3.3
million pre-tax) for other project write-downs that may be required. Other
details are contained in the news release attached as Exhibit 99.01.
Item 7. Financial Statements and Exhibits
(c) EXHIBITS
Exhibit
No. Description
99.01 October 6, 1998 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/
Edward J. McIntyre
Vice President and Chief
Financial Officer
Dated: October 6, 1998
EXHIBIT INDEX
Method of Exhibit
Filing No. Description
DT 99.01 October 6, 1998 News Release from NRG
DT = Filed electronically with direct transmission of this Form 8-K.
EXHIBIT 99.01
NRG Energy Announces Indonesian Project Write-down
Minneapolis, October 6, 1998 - NRG Energy, Inc. (NRG), a wholly-owned
subsidiary of Northern States Power Company (NYSE:NSP), announced that it will
write down its accumulated project development expenditures for the West Java,
Indonesia project, due to the current uncertainties surrounding all
infrastructure projects in Indonesia. The write-down for this project will be
$20 million on a pre-tax basis and $13.3 million after tax. The project
involves a 400 megawatt, coal-fired power station in Cilegon, West Java,
Indonesia
NRG has also reviewed all international projects in development and has created
a reserve of $2 million against 1998 earnings ($3.3 million pre-tax) for other
project write-downs that may be required.
The West Java transaction will be characterized as a nonrecurring event.
Similarly, NRG recorded nonrecurring gains and losses in 1995 and 1997 from
project settlements and sale of projects. NRG's earnings from ongoing
operations for the third quarter and for the year continue to be strong.
David Peterson, chairman, president and CEO of NRG, indicated that while NRG
actively pursues development in certain emerging markets, the company
continually assesses its portfolio relative to company guidelines. As of the
end of June 1998, NRG's investment portfolio was weighted as follows:
United States 39%
Australia 36%
Germany 12%
South America 10%
Canada 1%
Czech Republic 1%
Indonesia 1%
Certain information included in this press release contains statements that are
forward-looking. Such forward-looking information involves important risks and
uncertainties that could significantly affect anticipated results in the future
and, accordingly, such results may differ from those expressed in any forward-
looking statements made by or on behalf of NRG. For more information regarding
these risks and uncertainties, review NRG's filings with the Securities and
Exchange Commission.
Contact:
Trudy Marshall
Director Communications
612/373-5410
