MINNEAPOLIS, Jan 30, 2001 (BUSINESS WIRE)—NRG Energy, Inc. (NYSE:NRG) yesterday closed its acquisition of a 5,633(1) megawatt (MW) portfolio of operating projects and projects in construction and advanced development from LS Power, LLC and its partners.

"This acquisition of operating and greenfield development projects allows NRG to expand its United States generation portfolio significantly," said Craig A. Mataczynski, president of NRG North America. "We will use our expertise in construction, finance and operations to integrate these projects into NRG and create additional value for our shareholders."

NRG acquired net ownership interests totaling 1,697 MW in four facilities in operation and construction. An additional two projects--totaling 2,336 MW--are expected to reach construction financial close early in 2001. The remaining four projects, totaling 1,600 MW, are in advanced development. (See Exhibit A) All facilities employ highly efficient, natural gas-fueled combustion technology.

The facilities are located in Illinois, Mississippi, Florida and Texas, and provide access to fast-growing electricity markets. These regions are geographically diverse with very different weather and load characteristics. The facilities integrate well with other NRG assets in North America and provide significant power marketing opportunities.

NRG Energy is a leading global energy company primarily engaged in the acquisition, development, construction, ownership and operation of power generation facilities. At the end of 2000, NRG owned all or a portion of 63 power generation projects and its net ownership interest in these projects is 15,007 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. Forward-looking statements above include, but are not limited to, projected growth and future 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, the following: factors affecting power generation operations such as unusual weather conditions, generator outages, changes in fuel costs or availability and environmental incidents; factors affecting the availability or cost of capital, such as, for example, changes in interest rates or changes in investor perceptions of the power generation industry, NRG or any of its subsidiaries; workforce factors; the volatility of energy prices in a deregulated market environment and the adverse impacts on the profitability of our generation facilities that may result from the imposition of price limitations and other mechanisms to address such volatility; and other business or investment considerations that may be 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. 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. (1) In order to preserve qualified facility status, ownership interest of Borger (58 MW) was sold to a third party, thereby reducing project portfolio from 5,691 to 5,633 MW.

                               Exhibit A

                           Project Portfolio
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                                                               CURRENT
                                                                STATUS
                 LOCATION/POWER    PLANT     NET   FACILITY (OPERATION
   PROJECT            MARKET     CAPACITY OWNERSHIP TYPE         DATE)
----------------------------------------------------------------------
Mustang               Texas
                      /SPP           487    122     CCGT     Operating

Batesville            Mississippi
                      /SERC          837   407(2)   CCGT     Operating

Kendall               Illinois                            Construction
                      /MAIN        1,168  1,168     CCGT      (2/2002)
----------------------------------------------------------------------
Nelson                Illinois                            Financing 2Q
                      /MAIN        1,168  1,168    CCGT   2001(6/2003)

Pike                  Mississippi                         Financing 3Q
                      /SERC        1,168  1,168    CCGT   2001(6/2003)
----------------------------------------------------------------------
Kendall Expansion     Illinois                             Development
                      /MAIN         584    584     CCGT      (2003)

Batesville Expansion  Mississippi                          Development
                      /SERC         292    146     CCGT      (2002)

Hardee                Florida                     Simple-  Development
                      /FRCC         510    510     cycle     (2003)

Hardee Conversion to
Combined Cycle        Florida                              Development
                      /FRCC         360    360     CCGT      (2005)

----------------------------------------------------------------------
Total Current
 Portfolio                        6,574   5,633
----------------------------------------------------------------------

(2) Subject to minor adjustment in accordance with the terms of the
project company's organizational documents.

CCGT = Combined Cycle Gas Turbine

Contacts:

NRG Energy, Inc.

Media Relations
Meredith Moore, 612/373-8892

Investor Relations
Rick Huckle, 612/313-8900