Reliant Energy said its subsidiary Reliant Resources, Inc., whichincludes all of its unregulated energy operations, has filed aregistration statement with the Securities and Exchange Commission foran initial public offering of common stock. The IPO was announced inJuly as part of a corporate reorganization plan designed to separatethe company’s regulated and unregulated businesses into two publiclytraded companies (see Daily GPI, July28).

Upon receipt of necessary regulatory approvals, the companyplans an initial public offering (IPO) of 20% of the common stockof its unregulated operations late this year or early in 2001,assuming market conditions remain favorable. The company expectsthe IPO to be followed by a distribution to shareholders of theremaining stock of the unregulated company within 12 months.

Reliant Resources will be the company in charge of Reliant’sunregulated power generation (13,000 MW and another 2,800 MW underconstruction) and related energy trading and marketing operations.It also intends to become a significant player in the retail marketin Texas when electric choice begins in 2002 and elsewhere. Thecompany also will be involved in telecommunications, Internetservices, and European electric generating and trading/marketingoperations.

The regulated company will include Reliant Energy’s electricityand natural gas companies, which serve about four million customersin the U.S. and include Reliant Energy HL&P/Entex, ReliantEnergy Arkla and Reliant Energy Minnegasco. Other operations in theentity will include its U.S. interstate pipelines, its interests inLatin America and, initially, its Texas regulated generation.

Goldman, Sachs & Co. will act as sole book runner andco-lead manager, and Credit Suisse First Boston will act as co-leadmanager in the planned offering.

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