Northern States Power sold a $400 million 30-year tranche of 6.25% first mortgage bonds in order to refinance an August maturity for a $200 million, 2.875% three-year bond as well as a number of smaller municipal offerings and short-term debt. The offering was co-led by Bank of New York, UBS, and Credit Suisse. Jake Mercer, assistant treasurer at Xcel Energy, the parent company of the Eau Claire, Wis.-based utility, says all three firms provide credit to both Northern States and to Xcel.

Mercer says in addition to the favorable pricing available on 30-year debt, the long tenor matches up well with the company's generation assets. He says the offering was oversubscribed by about two times, but there was no consideration given to upsizing the offering because the utility would have needed regulatory approval.

Northern States is in the midst of a capital expenditure program that includes an effort to reduce emissions from its plants. Part of that plan involves Northern States switching some coal-fired generation to natural gas, and increasing generation capacity.

Mercer says there are no plans for future offerings at Northern States at this time.