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XCEL ENERGY 2003 ANNUAL REPORT 41
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors and Stockholder of NRG Energy, Inc.:
In our opinion, the consolidated balance sheets and the related consolidated statements of operations, cash flows and stockholder’s (deficit)/equity (not
presented separately herein) present fairly, in all material respects, the financial position of NRG Energy, Inc. and its subsidiaries at December 31, 2002,
and the results of their operations and their cash flows for each of the two 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 consolidated financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 1 and
Note 29 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, the Company and certain of its subsidiaries filed 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 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, except as to Notes 29 and 30, which are as of December 3, 2003.