Date: Thu, 20 Nov 1997 19:15:25 GMT Server: NCSA/1.5.2 Last-modified: Mon, 24 Feb 1997 22:16:27 GMT Content-type: text/html Content-length: 4249 Zeigler / NRG Confirms Proposal to Purchase Cajun Assets

FOR IMMEDIATE RELEASE April 8, 1996


Zeigler / NRG Confirms Proposal
to Purchase Cajun Assets


Zeigler Coal Holding Company (NYSE: ZEI) and NRG Energy, Inc., the non-regulated affiliate of Minneapolis-based Northern States Power Company, confirmed today that they have submitted a joint proposal to purchase the non-nuclear assets of Cajun Electric Power Cooperative, Inc. of Baton Rouge, Louisiana.

Cajun Electric filed for Chapter 11 bankruptcy in December 1994. The Zeigler/NRG proposal was made in response to a request for proposals from the bankruptcy trustee. Zeigler/NRG has learned that their submittal was named lead proposal by the bankruptcy trustee. The trustee today stated that it was his intention to file a plan of reorganization that incorporates the Zeigler/NRG proposal on April 22, 1996.

According to a statement from the Zeigler/NRG team, While we are still in the early stages of what may be a lengthy process, we are delighted to have been selected as the lead proposal for the purchase of Cajun's assets.

We believe that our proposal represents the best option for the trustee to balance the interests of all stakeholders in Cajun's bankruptcy. These stakeholders include the customers of Cajun and its member co-ops, the Rural Utilities Service (formerly the Rural Electrification Administration), the Louisiana Public Service Commission, the secured and unsecured creditors, owners and employees of Cajun and other parties. We look forward to working closely with the trustee to confirm a plan of reorganization that allows Cajun to emerge from Chapter 11 bankruptcy.

NRG is one of the leading participants in the independent power generation industry. Established in 1989, and wholly owned by Northern States Power, NRG is principally engaged in the acquisition, development and operation of independent power production and transmission facilities, thermal energy production and transmission facilities and resource recovery facilities. NRG has a proven track record in operating, maintaining and owning interests in large, coal-fired generation facilities.

The Zeigler family of companies is among the largest coal producers and marketers in the United States, and controls more than 1.3 billion tons of economically recoverable coal reserves, including 1 billion tons of low sulfur coal. The Zeigler family of companies currently operates 11 underground and surface coal mining complexes, located in Illinois, Kentucky, Ohio, West Virginia and Wyoming, which mine primarily steam coal. In addition, the company operates two East Coast import/export terminals and a clean coal technology corporation. A Zeigler subsidiary has supplied more than 90% of the coal provided to Cajun since 1982.

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