1
================================================================================
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) JUNE 22, 2001
-------------
NRG ENERGY, INC.
------------------------------------------------------
(Exact name of registrant as specified in its charter)
DELAWARE
----------------------------------------------
(State or other jurisdiction of incorporation)
001-15891 41-1724239
------------------------ ---------------------------------
(Commission File Number) (IRS Employer Identification No.)
901 MARQUETTE AVENUE, SUITE 2300 MINNEAPOLIS, MN 55402
- ------------------------------------------------- ----------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code 612-373-5300
------------
(Former name or former address, if changed since last report)
================================================================================
2
ITEM 2. ACQUISITION OR DISPOSITION OF ASSETS
On June 22, 2001, subsidiaries of NRG Energy, Inc. acquired 1,081 megawatts of
baseload electric generating plants from Delmarva Power and Light, a subsidiary
of Wilmington, Delaware-based Conectiv for approximately $643 million, subject
to purchase price adjustments. The facilities acquired are the 784 MW coal-fired
Indian River generating station and the 170 MW coal-fired Vienna generating
station. Also acquired were a 63 MW interest in the 1,711 MW coal-fired Keystone
station and a 64 MW interest in the 1,711 MW coal-fired Conemaugh station. The
acquisition was financed under a $580 million term loan agreement between NRG
Midatlantic Generating LLC, a wholly-owned subsidiary of NRG Energy and Chase
Manhattan Bank, as Administrative Agent and equity contributions from NRG
Energy.
The press release reporting the acquisition from Conectiv is filed with this
Form 8-K as Exhibit 99.7 See "Item 7. Exhibits."
Item 7. Exhibits.
The following exhibits are filed with this report on Form 8-K:
Exhibit No. Description
- ---------- -----------
99.7 Press release issued June 25, 2001, of NRG Energy, Inc.
3
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.
NRG Energy, Inc.
(Registrant)
By /s/ Leonard A. Bluhm
--------------------------------------
Leonard A. Bluhm
Executive Vice President and
Chief Financial Officer
(Principal Financial Officer)
Dated: June 29, 2001
1
EXHIBIT 99.7
[NRG LOGO]
NEWS
RELEASE
FOR IMMEDIATE RELEASE
NRG ENERGY ENTERS PJM MARKET WITH ACQUISITION OF 1,081 MW
OF GENERATION CAPACITY FROM CONECTIV
MINNEAPOLIS; (June 25, 2001)--NRG Energy, Inc. (NYSE: NRG) acquired 1,081
megawatts (MW) of baseload electric generating plants from Delmarva Power and
Light, a subsidiary of Wilmington, Del.-based Conectiv (NYSE: CIV). As part of
the agreement, NRG entered into both short- and long-term purchase power
contracts with Delmarva Power to provide energy and capacity for the Delmarva
Peninsula.
"We are pleased to have a strong presence in the PJM market--a vibrant,
relatively mature and well-functioning market for electricity," said David H.
Peterson, chairman, president and CEO of NRG Energy. "This acquisition gives us
a strong base from which to expand into a top three generator in this market."
The generating facilities acquired last Friday include those owned by Delmarva
Power. The assets include the Indian River and Vienna Generating Stations and a
partial interest in the Keystone and Conemaugh stations. A parcel of land in
Dorchester County, Md. was also included in the purchase.
"Since we signed the purchase agreement in January 2000, it has been a long and
difficult period of uncertainty for the employees who run these plants and we
are glad to welcome them to NRG Energy," said Craig A. Mataczynski, president
and chief executive officer of NRG North America. "We look forward to welcoming
the employees from the New Jersey-based plants in the near future."
NRG has extended its signed purchase agreement for an additional 794 MW of
assets it intends to acquire from Conectiv subsidiary, Atlantic City Electric
Company (ACE). These assets include the BL England and Deepwater Generating
Stations as well as additional partial ownership interests in Conemaugh and
Keystone Stations. NRG expects to receive New Jersey Board of Public Utilities
(NJBPU) approval in the third quarter 2001 for the purchase of these assets.
Previously disclosed earnings guidance of $1.35 per share remains unchanged.
PLANT INFORMATION
The 784 MW coal-fired INDIAN RIVER GENERATING STATION is located on the Delmarva
Peninsula near Millsboro, Del.
The VIENNA GENERATING STATION is a 170 MW oil-fired generating station located
along the Nanticoke River in the town of Vienna, Md.
2
Of the 1,711 MW coal-fired CONEMAUGH GENERATING STATION, NRG acquired 64 MW
Friday and has plans to acquire another 66 MW after receiving NJBPU approval.
The plant is located on the Conemaugh River, approximately 60 miles east of
Pittsburgh, Pa.
NRG also acquired 63 MW of the 1,711 MW coal-fired KEYSTONE GENERATING STATION,
located approximately 50 miles east of Pittsburgh. NRG intends to acquire
another 42 MW pending approval by the NJBPU.
The BL ENGLAND GENERATING STATION is a 447 MW coal- and oil-fired generating
facility on Great Egg Harbor Bay in the town of Beesley's Point, N.J.
The DEEPWATER GENERATING STATION, a 239 MW gas, oil and coal facility, sits
along the Delaware River near the town of Pennsville, N.J.
Certain statements included in this news release are forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933 and Section 21E
of the Securities Exchange Act of 1934. Forward-looking statements above
include, but are not limited to, expected earnings and future growth and
financial performance. Although NRG believes that its expectations are
reasonable, it can give no assurance that these expectations will prove to have
been correct. Factors that could cause NRG's actual results to differ materially
from those contemplated in the forward-looking statements above include, among
others, factors affecting power generation operations such as unusual weather
conditions, unscheduled generator outages, unanticipated changes to fuel costs
or availability and environmental incidents; changes in government regulation or
the implementation of government regulations, including pending changes within
or outside of California as a result of the California energy crisis, which
could result in NRG's failure to obtain regulatory approvals required to close
project acquisitions, and which could adversely affect the continued
deregulation of the electric industry; risks associated with the timely
completion of development projects, including obtaining competitive contracts
and construction delays; and factors affecting the availability or cost of
capital, such as changes in interest rates and market perceptions of the power
generation industry, NRG or any of its subsidiaries.
NRG undertakes no obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise. The
foregoing review of factors that could cause NRG's actual results to differ
materially from those contemplated in the forward-looking statements included in
this news release should not be construed as exhaustive. For more information
regarding these risks and uncertainties, please review NRG's registration
statement on Form S-3, filed June 14, our annual report on Form 10-K and our
other filings with the Securities and Exchange Commission.
MORE INFORMATION ON NRG ENERGY IS AVAILABLE AT WWW.NRGENERGY.COM.
# # #
Contacts: Meredith Moore
Media Relations
612.373.8892
Rick Huckle
Investor Relations
612.313.8900