Xcel Energy 2002 Annual Report Download - page 29

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report of independent accountants
To the Board of Directors and Stockholder of NRG Energy, Inc.:
In our opinion, the accompanying consolidated balance sheets and the related consolidated statements of operations, cash flows and
stockholder’s (deficit)/equity present fairly, in all material respects, the financial position of NRG Energy, Inc. and its subsidiaries at
December 31, 2002 and 2001, and the results of their operations and their cash flows for each of the three years in the period ended
December 31, 2002 in conformity with accounting principles generally accepted in the United States of America. These financial
statements are the responsibility of the Company’s management; our responsibility is to express an opinion on these financial statements
based on our audits. We conducted our audits of these statements in accordance with auditing standards generally accepted in the
United States of America, which require that we plan and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements, assessing the accounting principles used and significant estimates made by management and evaluating the
overall financial statement presentation. We believe our audits provide a reasonable basis for our opinion.
The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern.
As discussed in Note 1 to the consolidated financial statements, the Company is experiencing credit and liquidity constraints and has
various credit arrangements that are in default. As a direct consequence, during 2002 the Company entered into discussions with its creditors
to develop a comprehensive restructuring plan. In connection with its restructuring efforts, it is likely the Company and certain of its
subsidiaries will file for Chapter 11 bankruptcy protection. These conditions raise substantial doubt about the Company’s ability to
continue as a going concern. Management’s plans in regard to these matters are also described in Note 1. The consolidated financial
statements do not include any adjustments that might result from the outcome of this uncertainty.
As discussed in Note 19 to the consolidated financial statements, the Company adopted Statement of Financial Accounting Standards
No. 142, “Goodwill and Other Intangible Assets,” for the year ended December 31, 2002. As discussed in Note 26 to the consolidated
financial statements, the Company adopted Statement of Financial Accounting Standards No. 133, “Accounting for Derivative Instruments
and Hedging Activities,” on January 1, 2001. As discussed in Notes 3 and 5 to the consolidated financial statements, the Company
adopted Statement of Financial Accounting Standards No. 144, “Accounting for the Impairment or Disposal of Long-Lived Assets,”
on January 1, 2002.
pricewaterhousecoopers llp
Minneapolis, Minnesota
March 28, 2003
xcel energy inc. and subsidiaries page 43