Northern States Power Company
| Company type | Public |
|---|---|
| Industry | Electric and natural gas utility |
| Founded | 1910 |
| Founder | Henry Marison Byllesby |
| Defunct | 1998 |
| Fate | Merged to form Xcel Energy |
| Headquarters | Minneapolis , United States |
Area served | Minnesota, North Dakota, South Dakota, Wisconsin, Michigan’s Upper Peninsula |
Key people | Henry Marison Byllesby (founder), James J. Howard (chairman and CEO at merger attempt) |
| Products | Electricity, natural gas |
| Parent | Xcel Energy (since 1998) |
| Website | www |
Northern States Power Company () was a publicly held electric and natural gas utility holding corporation based in Minneapolis, Minnesota. It is currently a subsidiary of Xcel Energy () and was once part of the S&P 500 index.
History
Henry Marison Byllesby, the company's founder, brought with him significant expertise gained from working alongside industry innovators such as Thomas Edison and George Westinghouse. His prior experience included positions at Westinghouse Electric & Manufacturing Co. and Thomson-Houston Co., before he established H. M. Byllesby Co. in 1902 to provide engineering and management consulting services to electric utilities.
The acquisition of Stillwater Gas & Electric Co. by Byllesby in 1909 laid the foundation for Consumers Power Co., which expanded swiftly by purchasing numerous utilities across Minnesota and North Dakota between 1910 and 1916. This expansion created a network connecting major cities like Minneapolis and St. Paul through transmission infrastructure. To avoid confusion with a Michigan-based company, the firm was renamed Northern States Power Co. in 1916, the same year it acquired Minneapolis General Electric Co. Over the following seven years, it added 42 additional systems. The company demonstrated steady financial health, distributing cash dividends every year since 1910.
Although its core operations were centered in Minnesota, Northern States Power extended its service territory into North Dakota, southeastern South Dakota, Wisconsin, and Michigan’s Upper Peninsula. Due to regulatory requirements mandating local ownership of utilities, operations within Wisconsin were conducted through its subsidiary Northern States Power-Wisconsin.
To meet the demands of its broad service region, NSP developed several power generation facilities. Presently operational nuclear plants include Prairie Island (commissioned in 1974) and Monticello (commissioned in 1971). Coal-fired plants such as Sherburne County Generating Station (Sherco) and Allen S. King remain active, while other facilities have been converted to utilize natural gas.
By 1986, Northern States Power ranked among the largest corporations on the S&P 500 list, carrying nearly $1.2 billion in long-term debt. Its NSP-Minnesota subsidiary primarily served agricultural communities throughout Minnesota, North Dakota, and South Dakota.
Primergy merger
On May 3, 1995, Northern States Power Company and Wisconsin Energy Corporation () declared a merger-of-equals intended to create Primergy Corporation, a publicly traded utility holding company that would rank as the tenth largest investor-owned electric and gas utility in the United States. The combined entity had an estimated market value of approximately US$6.0 billion, with consolidated revenues of US$4.2 billion for 1994 and assets exceeding US$10 billion. Shareholders of NSP were to receive 1.626 shares of Primergy for each NSP share owned, while WEC shareholders would exchange shares on a one-to-one basis.
At that time, Wisconsin Energy was led by chairman, president, and CEO Richard A. Abdoo, whereas Northern States Power's chairman and CEO was James J. Howard. Under Primergy’s leadership structure, Howard would assume the roles of chairman and CEO, with Abdoo serving as vice chairman, president, and COO; Abdoo was designated to succeed Howard as chairman upon Howard's planned retirement in July 2000.
Wisconsin Energy's subsidiaries—Wisconsin Electric Power Company (WEPCO) and Wisconsin Natural Gas Company (WNG)—were slated to merge under Wisconsin Energy Company along with Northern States Power Company as Primergy’s main operating units. NSP-Wisconsin was planned to be integrated into Wisconsin Energy Company. While each utility would retain separate headquarters in Milwaukee and Minneapolis respectively, Primergy’s corporate headquarters would be located in Minneapolis but incorporated in Wisconsin. The board of directors was to be evenly divided between representatives from both companies. The merger anticipated completion by late 1996.
By 1997, regulatory approvals had been obtained from Michigan and North Dakota authorities; however, clearance from Minnesota and Wisconsin regulators remained pending alongside approvals from the Securities & Exchange Commission and the U.S. Department of Justice.
On May 16, 1997, boards from both firms voted to abandon the merger due to evolving regulatory conditions—particularly actions by the Federal Energy Regulatory Commission that sent the matter back for further negotiations without a defined timeline for resolution. CEO Howard described the indefinite postponement as unacceptable, while Abdoo emphasized that an additional six-month delay would diminish the transaction’s value after already enduring two years of deferment.
The delay had already pushed back completion by five months and reduced combined earnings by US$58 million for both companies without transferring costs to customers. Furthermore, by early 1997 Wisconsin Energy’s stock had dropped approximately 13%, impacted by operational challenges including issues at its Point Beach Nuclear Generating Station; conversely, Northern States Power’s stock increased by about 6%. The failed merger marked a significant shift within the utility sector, effectively ending the wave of consolidations that had dominated during that period.
Xcel merger
In 1998, after the unsuccessful attempt to merge with Primergy, NSP combined forces with Denver-based New Century Energies, the parent company of Public Service Company of Colorado and Southwestern Public Service. This consolidation led to the creation of Xcel Energy, significantly increasing its market presence and reinforcing its strategic position within the energy sector.
See also
Tracing its roots back to 1852 at St. Anthony Falls in Minneapolis, NSP, which eventually became part of Xcel Energy, was originally formed by entities involved in hydroelectric power generation. By 1908, the company operated three hydroelectric facilities, one of which remains operational today, highlighting its longstanding commitment to renewable energy infrastructure.
External links
Additional resources
- The Minnesota Historical Society houses archival materials related to the predecessors of Northern States Power Company.
- Articles with short description
- Xcel Energy
- Defunct companies based in Minneapolis
- Defunct natural gas companies of the United States
- Defunct electric power companies of the United States
- Nuclear power companies of the United States
- Economy of the Midwestern United States
- American companies established in 1910
- Energy companies established in 1910
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- Companies of the United States by year of establishment