6 August 2002 – NRG Energy, Inc., a wholly owned subsidiary of Xcel Energy announced Monday that it has reached an agreement with Shaw Group Inc., its contractor for the Pike Energy, LLC (Pike) power plant construction project in Holmesville, Mississippi, to transfer the project’s assets to Shaw. As a result of the transfer NRG will receive $43m and the forgiveness of approximately $75m owed to Shaw.
“This agreement is consistent with our business plan to strengthen NRG’s balance sheet and improve liquidity through the divestiture of our international portfolio and selected domestic assets,” said Richard C. Kelly, president and chief operating officer of NRG. “We believe this transaction significantly reduces NRG’s capital requirements in the second half of 2002 and beyond.”
The agreement is subject to Xcel Energy Board and lender approvals as well as certain conditions.
NRG Energy, a wholly owned and unregulated subsidiary of Xcel Energy, develops and operates power-generating facilities. NRG’s operations include competitive energy productionEand cogeneration facilities, thermal energy production and energy resource recovery facilities.
Xcel Energy is a major US electricity and natural gas company with regulated operations in 11 Western and Midwestern states. The company provides a comprehensive portfolio of energy-related products and services to 3.2 million electricity customers and 1.7 million natural gas customers through its regulated operating companies. In terms of customers, it is the fourth-largest combination natural gas and electricity company in the US Company headquarters are located in Minneapolis.