MINNEAPOLIS, April 25, 2001 (BUSINESS WIRE)—NRG Energy, Inc. (NYSE:NRG):

Highlights

• Earnings per share of $0.19 increased 217 percent compared to $0.06 (pro forma) in first quarter 2000.

• Net income increased 305 percent to $35.2 million from $8.7 million in first quarter 2000.

• Total revenues for the three months ended March 31, 2001 increased 99 percent to $643.2 million, versus $323 million in the previous comparable period.

• Megawatt (MW) net ownership increased 35 percent to 18,379 versus 13,664 at the end of March 2000.

• NRG increases earnings projections for 2001.

NRG Energy, Inc. (NYSE:NRG) today reported record net income and earnings per share (EPS) for the first quarter of 2001. Earnings per share increased by 217 percent to $0.19 in the first quarter 2001 from $0.06 (pro forma) in 2000. Net income increased by 305 percent to $35.2 million in the first quarter 2001 from $8.7 million the first quarter 2000. Total revenues for first quarter 2001 grew to $643.2 million from $323 million in the previous comparable period, an increase of 99 percent.

NRG today also revised its annual earnings guidance for 2001 upward from $1.30 to $1.35.

"NRG's outstanding performance in the first quarter is the result of our diversified and well-positioned business platform, and our focus on building, buying and operating power generation assets in attractive markets in the United States and in select markets abroad," said David H. Peterson, NRG chairman, president and CEO. "NRG continues to build on our proven track record of strong and sustained growth."

NRG's key strengths in the evolving power markets include: 1) one of the industry's most diversified generation portfolios, which reduces business and volatility risks; 2) NRG's substantial coal-fired generation assets, which provide earnings upside in an environment of rising natural gas prices; and 3) NRG's peaking assets, which provide significant pricing upside in key U.S. markets.

"NRG has also benefited from a focused effort to reduce operating costs and to increase availability over our entire generation portfolio in our quest for additional margin expansion," said Peterson. "NRG's power marketing capabilities are adding significantly to our overall portfolio return by trading around NRG's assets and mitigating operational risk."

Addressing the situation in California, NRG reported its share of gross receivables due from the California Independent System Operator/PX at the end of March was approximately $305 million. In addition, NRG has another $39 million due from Pacific Gas and Electric as a result of sales under QF contracts. The company has established reserves against these amounts, which it believes are adequate to cover collection issues and other disputes.

In March, NRG and Dynegy, its partner in West Coast Power LLC, entered into an agreement with the California Department of Water Resources to provide the state with up to 2,300 MW of energy through 2004.

During the first quarter of 2001, NRG completed a follow-on equity offering of 18,400,000 shares priced at $27 per share and a concurrent offering of 11,500,000 equity units priced at $25 per unit. From the date of NRG's initial public offering in May 2000 to the end of the first quarter 2001, the price per share of NRG's common stock has increased by 143 percent.

"We were very pleased with our highly successful follow-on equity offering in March during an especially turbulent stock market," Leonard A. Bluhm, NRG's chief financial officer said. "The offering validates our strategy and underscores our efforts to increase the value of NRG for our stockholders. The new equity combined with attractively priced debt from a recent capital markets offering provides the capital needed to help meet our goals of at least 25 percent earnings growth per year and increasing capacity to at least 50,000 megawatts by 2005."

During the first quarter 2001, NRG continued its disciplined growth program by acquiring the 6,193 MW LS Power project portfolio. This includes 2,898 MW of projects in advanced development. By year end, NRG expects to close an additional 6,866 MW of generation--including the recently announced intended acquisitions of the Audrain (720 MW winter rated/640 MW summer rated) and PowerGen assets (668 MW).

NRG is a leading global energy company engaged primarily in the acquisition, development, construction, ownership and operation of power generation facilities. The company's operations utilize such diverse fuel sources as natural gas, oil, coal and coal seam methane, biomass, landfill gas, and hydro, as well as refuse-derived fuel.

Earnings Conference Call

A first quarter 2001 earnings conference call is scheduled for 1:00 p.m. (eastern) on Wednesday, April 25, 2001. You may access the live conference call by calling (800) 230-1074 in the United States or (612) 332-0718 outside the U.S. The conference call will be simulcast over the Internet and can be accessed through the Investor Relations area of NRG Energy's web site at www.nrgenergy.com. A replay of the conference call will be available through Tuesday, May 1 by calling (800) 475-6701 in the United States or (320) 365-3844 outside the United States with an access code of 579555.

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, expected earnings and future growth and financial performance. Although NRG believes that its expectations are reasonable, it can give no assurance that these expectations will prove to have been correct. Factors that could cause NRG's actual results to differ materially from those contemplated in the forward-looking statements above include, among others, factors affecting power generation operations such as unusual weather conditions, unscheduled generator outages, unanticipated changes to fuel costs or availability and environmental incidents; changes in government regulation or the implementation of government regulations, including pending changes within or outside of California as a result of the California energy crisis, which could result in NRG's failure to obtain regulatory approvals required to close project acquisitions, and which could adversely affect the continued deregulation of the electric industry; risks associated with the timely completion of development projects, including obtaining competitive contracts and construction delays; and factors affecting the availability or cost of capital, such as changes in interest rates and market perceptions of the power generation industry, NRG or any of its subsidiaries.

NRG undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The foregoing review of factors that could cause NRG's actual results to differ materially from those contemplated in the forward-looking statements included in this news release should not be construed as exhaustive. For more information regarding these risks and uncertainties, review NRG's filings with the Securities and Exchange Commission.

More information on NRG Energy is available at www.nrgenergy.com.

Consolidated Statement of Income
NRG Energy, Inc. and Subsidiaries
(Unaudited)
                                                   Three Months Ended
                                                       March 31,
(In thousands, except per share amounts)           2001        2000
----------------------------------------         ---------------------
Operating Revenues and Equity Earnings
 Revenues from majority-owned operations         $ 624,262  $ 332,671
 Equity in earnings of unconsolidated affiliates    18,904     (9,644)
                                                 ---------------------
  Total operating revenues and equity earnings     643,166    323,027
                                                 ---------------------
Operating Costs and Expenses
 Cost of majority-owned operations                 444,601    214,923
 Unrealized (gains)/losses on energy contracts     (20,742)      --
 Depreciation and amortization                      38,092     19,987
 General, administrative and development            54,191     25,180
                                                 ---------------------
  Total operating costs and expenses               516,142    260,090
                                                 ---------------------
Operating Income                                   127,024     62,937
                                                 ---------------------
Other Income (Expense)
 Minority interest in earnings of consolidated
  subsidiaries                                      (2,059)    (1,798)
 Other income, net                                   2,082      1,531
 Interest expense                                  (86,992)   (52,317)
                                                 ---------------------
  Total other expense                              (86,969)   (52,584)
                                                 ---------------------
Income Before Income Taxes                          40,055     10,353
Income Tax Expense                                   4,877      1,607
                                                 ---------------------
Net Income                                       $  35,178  $   8,746
                                                 ---------------------

Weighted Average Number of Common Shares
 Outstanding - Basic                               183,925    147,605

Earnings per Weighted Average Common Share
 - Basic                                         $    0.19  $    0.06

Weighted Average Number of Common Shares
 Outstanding - Diluted                             185,878    147,605

Earnings per Weighted Average Common Share
 - Diluted                                       $    0.19  $    0.06



Consolidated Balance Sheet
NRG Energy, Inc. and Subsidiaries
(Unaudited)
                                              March 31,     Dec. 31,
(In thousands)                                  2001          2000
--------------                               ------------------------
Assets
Current Assets
 Cash and cash equivalents                   $   126,588  $    95,243
 Restricted cash                                  91,785       12,135
 Accounts receivable-trade, less allowance
  for doubtful accounts                          293,945      360,075
 Accounts receivable-affiliates                  117,779           --
 Inventory                                       213,382      174,864
 Current portion of notes receivable               1,690          267
 Prepayments and other current assets             93,752       30,074
                                             ------------------------
   Total current assets                          938,921      672,658
                                             ------------------------
Property, Plant and Equipment, at Original
 Cost
 In service                                    4,494,023    4,106,653
 Under construction                            1,133,829      206,992
                                             ------------------------
   Total property, plant and equipment         5,627,852    4,313,645
 Less accumulated depreciation                  (305,088)    (271,977)
                                             ------------------------
   Net property, plant and equipment           5,322,764    4,041,668
                                             ------------------------
Other Assets
 Investments in projects                         909,236      973,261
 Capitalized project costs                        24,773       10,262
 Notes receivable, less current portion           86,517       76,745
 Decommissioning fund investments                  3,937        3,863
 Intangible assets, net                           59,406       61,352
 Debt issuance costs, net                         65,680       48,773
 Other assets, net                               243,776       90,410
                                             ------------------------
   Total other assets                          1,393,325    1,264,666
                                             ------------------------
Total Assets                                 $ 7,655,010  $ 5,978,992
                                             ------------------------


Consolidated Balance Sheet
NRG Energy, Inc. and Subsidiaries
(Unaudited)
                                              March 31,      Dec. 31,
(In thousands)                                  2001          2000
--------------
                                             ------------------------
Liabilities and Stockholders' Equity
Current Liabilities
   Current portion long-term debt            $   141,306  $   146,469
   Revolving line of credit                      467,000        8,000
   Revolving line of credit, non-recourse         40,000         --
   Accounts payable-trade                        239,559      255,917
   Accounts payable-affiliate                       --          7,191
   Accrued income taxes                           31,260       43,870
   Accrued property and sales taxes               12,672       10,531
   Accrued salaries, benefits and related
    costs                                         15,532       24,830
   Accrued interest                               60,112       51,962
   Other current liabilities                      50,688       14,220
                                             ------------------------
         Total current liabilities             1,058,129      562,990
                                             ------------------------
Other Liabilities
   Consolidated project-level, long-term,
    non-recourse debt                          2,468,289    2,146,953
   Corporate-level, long-term, recourse debt   1,775,023    1,503,896
   Deferred income taxes                         141,175       55,642
   Postretirement and other benefit
    obligations                                   78,988       83,098
   Other long-term obligations and deferred
    income                                       167,024      149,640
   Minority interest                              36,455       14,685
                                             ------------------------
         Total liabilities                     5,725,083    4,516,904
                                             ------------------------
Stockholders' Equity
  Class A - Common stock; $.01 par value;
   250,000 shares authorized;
   147,605 shares issued and outstanding           1,476        1,476
  Common stock; $.01 par value; 550,000
   shares authorized;50,889 shares issued
   and outstanding                                   509          324
  Additional paid-in capital                   1,712,482    1,233,833
  Retained earnings                              405,323      370,145
  Accumulated other comprehensive loss          (189,863)    (143,690)
                                             ------------------------
  Total stockholders' equity                   1,929,927    1,462,088
                                             ------------------------
  Commitments and contingencies
                                             ------------------------
Total Liabilities and Stockholders' Equity   $ 7,655,010  $ 5,978,992
                                             ------------------------

Contacts:

NRG Energy, Inc.

Media Relations
Meredith Moore, 612/373-8892

Investor Relations
Rick Huckle, 612/313-8900