Form 8-K for RELIANT ENERGY INC
22-Apr-2008
Entry into a Material Definitive Agreement
Item 1.01 Entry into a Material Definitive Agreement.
In this Current Report on Form 8-K, "Reliant Energy" refers to Reliant Energy, Inc., and "we," "us" and "our" refer to Reliant Energy and its subsidiaries.
On April 21, 2008, Reliant Energy Wholesale Generation, LLC and Reliant Energy Asset Management, LLC, each an indirect wholly-owned subsidiary of Reliant Energy, entered into an agreement with Nevada Power Company to sell our natural gas-fired combined-cycle electric generation facility located in Clark County, Nevada with a nominal capacity of 598 megawatts (the "Bighorn Facility") and assign related contracts, including the real property lease where the Bighorn Facility is located. The $500 million purchase price is subject to certain adjustments, which are not expected to be material. We expect to recognize a small gain on the sale. The sale is subject to customary closing conditions, including the approval of the Federal Energy Regulatory Commission and the Public Utilities Commission of Nevada. We expect to close in the second half of 2008.
CAUTIONARY STATEMENTS REGARDING FORWARD-LOOKING INFORMATION
This report contains "forward-looking statements" that contain projections, estimates or assumptions about the sale of the Bighorn Facility and plans and objectives for transactions and dispositions. In many cases you can identify forward-looking statements by terminology such as "intend," "may," "plan," "will," "expect," and other similar words. However, the absence of these words does not mean that the statements are not forward-looking.
Actual results may differ materially from those expressed or implied by forward-looking statements as a result of many factors or events, including, but not limited to, regulatory developments and approvals, legal, governmental and bankruptcy proceedings, financial market conditions, access to capital, changes in commodity prices and interest rates, and other factors we discuss or refer to in the "Risk Factors" section of our filings with the Securities and Exchange Commission.
Each forward-looking statement speaks only as of the date of the particular statement and we undertake no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
