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) DECEMBER 15, 1999
--------------------
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)
<PAGE>
Item 5 - Other Events
- -------------------------
On December 15, 1999, Northern States Power Company (NSP) signed separate
agreements with the Minnesota Office of Attorney General (OAG) and the Minnesota
Energy Consumers (MEC) related to stipulated terms under which those parties
would support NSP's proposed merger with New Century Energies, Inc. (NCE).
Under the agreements, which contained substantially the same financial terms,
NSP agreed to reduce its Minnesota electric rates by $10 million per year, or
approximately 0.6% less than current levels, for the five-year period 2001-2005.
The rate reduction will be based on 2000 budgeted revenues and will be
accomplished through two steps. In the first step, base rates will be reduced,
no later than Jan. 1, 2001, by a level sufficient to deliver revenue decreases
of $9 million (or 90% of the total annual reduction) through the period Dec. 31,
2001. At NSP's election, this first step can be put into effect as early as two
months after the merger closes. In the second step, base rates will be further
reduced, no later than Jan. 1, 2002, by an additional amount so that a
cumulative annual reduction of $10 million (or 100% of the agreed to reduction)
is delivered. This lower level of base rates would then continue without
further adjustment through Dec. 31, 2005.
In the agreements, OAG and MEC stipulated and agreed to request that the
Minnesota Public Utilities Commission (MPUC) approve NSP's pending merger with
NCE. In addition, the agreements provided that (a) NSP's rates otherwise not be
increased through 2005 except under a number of circumstances set forth in the
agreements, (b) certain service quality and other commitments be met, and (c)
other specified operating plans and opportunities be analyzed. The agreements
are subject to the approval of the MPUC and can be terminated in the event the
merger does not proceed.
These agreements represent significant progress in the merger-approval process.
Resolution of these parties' merger issues will move the regulatory process
forward. In that regard, NSP has also entered into an agreement with a
coalition of environmental organizations which resolves their merger issues.
The only party who has filed direct testimony in the Minnesota merger proceeding
is the Minnesota Department of Commerce (DOC). In testimony filed on December
10, 1999, DOC found that merger savings exceed merger costs, and recommended
several conditions to merger approval.
NSP anticipates that the successful completion of its merger with NCE will, over
the period of the rate freeze, provide cost savings sufficient to offset the
agreed-to rate reductions. NSP believes that the agreements result in an
appropriate sharing of merger-related savings between ratepayers and
shareholders.
<PAGE>
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/
---
John P. Moore, Jr.
Vice President & Corporate Secretary
Dated: December 22, 1999
