MINNEAPOLIS, March 01, 2001 (BUSINESS WIRE)—NRG Energy, Inc. (NYSE:NRG) has signed an asset purchase agreement with Duke Energy North America, LLC for a 720 megawatt (MW) winter-rated/640 MW summer-rated simple-cycle plant that employs natural gas and has dual- fuel capability.

"This acquisition complements NRG's strategy of developing a significant portfolio of generation assets located near major metropolitan areas experiencing substantial load growth," said David H. Peterson, NRG chairman, president and CEO. "It also serves to strengthen our presence in the North Central region of the United States and upon commercial operation will be immediately earnings accretive."

On an ongoing basis the company expects the project to contribute 3 to 5 cents to earnings on an annual basis and to be a contributor to the company's 25 percent earnings growth objective.

The project, expected to close by the end of the first quarter, pending regulatory approval, is under construction on a greenfield site 90 miles northwest of St. Louis, in Audrain County, Missouri. The project consists of eight simple-cycle combustion turbine generators that use natural gas as the primary fuel and are equipped with environmentally friendly dry low nitrous oxide combustors. Construction began May 15, 2000 and the facility is expected to enter into commercial operation by June 2001, in time for the summer peak season.

"This facility has excellent access to high voltage transmission systems and major gas pipelines in the Chicago-St. Louis-New Orleans corridor which will give us greater flexibility in trading around our current assets and those in development," said Craig A. Mataczynski, president and CEO of NRG North America. "The project is dual-fuel capable, meaning it may use both natural gas and oil, which gives us the ability to switch fuels during times of volatile fuel prices."

NRG Energy is a leading global energy company primarily engaged in the acquisition, development, construction, ownership and operation of power generation facilities. NRG owns all or a portion of 66 power generation projects and its net ownership interest in these projects is 16,704 MW. 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.

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. 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, the business or investment considerations disclosed from time to time in NRG's Securities and Exchange Commission filings or in other publicly disseminated written documents.

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

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

NRG Energy, Inc.

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