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NRG Makes Gains In First Week on NYSE

NRG Makes Gains In First Week on NYSE

NRG Energy Inc. pulled off a respectable first three days on the New York Stock Exchange, as the independent power subsidiary of Northern States Power saw its initial public offering (IPO) close well above its set price of $15 when the markets closed last Friday. NRG opened at $15.88 on Wednesday, and closed on Friday at $17 1/4 on a volume of 913,000 shares.

NRG jumped in where others have backpedaled recently in light of stock market uncertainty and lagging interest in IPOs. Duke Energy Field Services (DEFS), a wholly owned subsidiary of Duke Energy and Phillips Petroleum, announced the postponement May 26 of its IPO because of "volatile market conditions."

The net proceeds to NRG are expected to be approximately $449 million, which will be used to repay a loan from Citicorp USA Inc. The loan was used to fund a portion of the purchase price of the Cajun facilities acquired in March 2000. The remaining net proceeds will be used for pending acquisition of generation assets from Conectiv, the development and construction of new facilities and additions to working capital (see NGI, April 24).

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

Carolyn Davis, Houston

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