NRG Energy Inc., which has evidenced some pretty big capitalplans of late, is going public. The Minneapolis-based subsidiary ofNorthern States Power filed for an offering of 18% of its commonstock. The maximum aggregate price of the offer is $600 million.All proceeds will remain with NRG Energy.

In March Northern States approved the NRG stock issue and saidthe offering would raise capital intended to fund a portion ofNRG’s project investments and other capital requirements for thisyear. None of the proceeds are to go to Northern States.

Also last month, NRG completed the purchase from National Powerof the 680 MW gas-fired Killingholme A combined-cycle gas-turbinepower station in North Lincolnshire, England, for about US$620million. The company also bought 1,708 MW of fossil fuel generatingassets from Cajun Electric Power Cooperative Inc. in Louisiana for$1.026 billion.

This month NRG subsidiary NRG Thermal Corp. agreed to buy theHarrisburg Steam Works and Statoil Energy Power/Paxton LP, both inHarrisburg, PA, from Statoil Energy Inc. In February, NRG Energysigned up with GE Power Systems to buy 11 gas turbine generatorsand five steam turbine generators for about $500 million over thenext five years.

NRG Energy is primarily engaged in the acquisition, development,ownership and operation of power generation facilities. NRG Energyowns all or a portion of 57 power generation projects with a totalgenerating capacity of more than 23,000 MW; its net ownershipinterest in these projects exceeds 13,000 MW.

The offering will be managed by Salomon Smith Barney Inc.Additional underwriters include Credit Suisse First Boston; ABNAMRO Rothschild; Banc of America Securities LLC; Goldman, Sachs& Co.; Lehman Brothers; Merrill Lynch & Co.; and MorganStanley Dean Witter. A registration statement has been filed withthe SEC but has not yet become effective.

Joe Fisher, Houston

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