MINNEAPOLIS (November 1, 2002) -- NRG Energy, Inc., a wholly owned subsidiary of Xcel Energy (NYSE: XEL), announced it will not make a $9.6 million interest payment due today on $240 million in eight percent senior unsecured notes. NRG has until December 1 to make payment on the corporate level bond to avoid default.

In addition, on October 1, 2002, NRG did not make payments on two debt issues, a $13 million interest payment on $350 million in 7.75 percent senior unsecured notes due 2011 and a $21.6 million interest payment on $500 million in 8.625 percent senior unsecured notes due in 2031. The 30-day grace period to make payment ended today and NRG did not make the required payments. As a result, NRG is in default on these bonds.

As with all NRG debt issues, these are non-recourse to the parent company, Xcel Energy. NRG plans to address this payment in a broader restructuring plan and is working with bondholders to resolve this issue.

NRG Energy, a wholly owned and unregulated subsidiary of Xcel Energy, develops and operates power generating facilities. NRG's operations include competitive energy production and cogeneration facilities, thermal energy production and energy resource recovery facilities.

Xcel Energy is a major U.S. electricity and natural gas company with regulated operations in 12 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 U.S. Company headquarters are located in Minneapolis.

Certain statements included in this news release are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements above include, but are not limited to, the status and planned result of negotiations with lenders. Although NRG believes that its expectations are reasonable, it can give no assurance that its negotiations with its lenders will be successful or what impact such negotiations will have on securityholders of NRG.

NRG undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. For more information regarding risks and uncertainties that may affect NRG's future results, review NRG's filings with the Securities and Exchange Commission.

Financial and Investor Relations
Adam Carte, 612.373.5359
Nicole Miller, 612.373.8815

Media Relations
Meredith Moore, 612.373.8892
Lesa Bader, 612.373.6992