Xcel Energy 2001 Annual Report Download - page 17

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In February 2002, Xcel Energy’s board of directors approved plans to initiate
an exchange offer by which Xcel Energy would acquire all of the outstanding
publicly held shares of NRG. At the same time, Xcel Energy announced its
plans to refocus NRG’s current business model. The plans include reducing
NRG’s rate of growth, strengthening its balance sheet, managing costs and
reducing its dependence on external financing.
Xcel Energy expects to capture other benefits by:
– Consolidating marketing and trading organizations while honoring all
regulatory requirements;
– Integrating power plant management across the Xcel Energy system; and
– Capturing infrastructure savings to maximize available synergies.
Xcel Energy believes that its decision to acquire the public shares of NRG is in
the best interest of both the NRG and Xcel Energy shareholders, and expects
NRG to continue to contribute to Xcel Energy’s earnings growth.
Utility Engineering (UE), another Xcel Energy subsidiary, also is contributing
to earnings growth. UE is an engineering and design firm with projects in more
than 35 states as well as Mexico and Canada. In 2001, the company provided
engineering support services and system analysis software to more than 82 percent
of U.S. nuclear operating plants. UE also won major contracts for new gas turbine
plants from a number of prominent companies. Among the top 500 design firms
in the nation, UE ranks 20 in the fossil fuel subcategory and 25 in the power
subcategory.
Viking Gas Transmission Co. is one more subsidiary with strong and steady growth.
Viking operates a 662-mile interstate natural gas pipeline located in Minnesota,
North Dakota and Wisconsin. In 2001, Viking and two partners received final
approval from the Federal Energy Regulatory Commission for the Guardian Pipeline,
a 140-mile pipeline that will connect Wisconsin customers with a natural gas hub
in Illinois.
Xcel Energy’s regulated business, marketing and trading effort, nonregulated
subsidiaries and savings achieved through the merger are strong contributors to
earnings growth. With those sustainable growth strategies in place, the company
can ensure long-term value for you.
THE NRG ENERGY CENTER-
MINNEAPOLIS SERVES MORE
THAN 100 COMMERCIAL HEATING
CUSTOMERS AND APPROXIMATELY
40 COMMERCIAL COOLING CUS-
TOMERS. ITS COOLING SYSTEM IS
THE SECOND LARGEST DISTRICT
COOLING SYSTEM IN THE
COUNTRY, BASED ON CAPACITY.
A MAIN PLANT AND A HOST OF
SATELLITE PLANTS SUPPLY THE
HEATING AND COOLING.