MINNEAPOLIS (October 25, 1999) -- NRG Energy, Inc., (NRG Energy) a wholly owned subsidiary of Northern States Power Company (NYSE:NSP), announced today the completion of the acquisition of the 1,700 megawatt (MW) oil- and gas-fired Oswego Generating Station from Niagara Mohawk Power Corp., a wholly owned subsidiary of Niagara Mohawk Holdings, Inc. (NYSE:NMK), and Rochester Gas & Electric. Corp., a wholly owned subsidiary of RGS Energy Group (NYSE:RGS). NRG Energy paid a total of $85 million, which includes an assumed obligation and adjustments for fuel and other items, for the Oswego Station.

In June 1999, NRG Energy acquired the base load, coal-fired Dunkirk and Huntley stations totaling 1,360 MW of generating capacity from Niagara Mohawk, and the gas- and oil-fired Arthur Kill Station and Astoria Gas Turbine Sites totaling 1,456 MW of generating capacity from Consolidated Edison Company of New York. In July 1999, NRG Energy announced the execution of a binding purchase agreement with Connecticut Light & Power to acquire four oil- and gas-fired generating stations and remote gas turbines totaling 2,235 MW of generating capacity. Including the Oswego acquisition, NRG Energy owns, or has executed agreements to acquire, plants representing in excess of 4,500 MW of capacity in the New York Power Pool and more than 2,400 MW in the New England Power Pool.

“The completion of this acquisition ensures the continued operation of the Oswego Station,” said Craig Mataczynski, president and chief executive officer of NRG North America. “The Oswego Station, in combination with NRG Energy’s other New York generating assets, will produce economic benefits for the state and the region.”

The Oswego Station is located on a 93-acre site in Oswego, New York, along the south shore of Lake Ontario. The facility consists of two, 850 MW oil-fired operating units and four retired units. One of the operating units is also capable of generating up to 150 MW utilizing natural gas. The acquisition also includes an oil tank farm and associated rail facilities which give the Oswego facility an alternative year-round fuel delivery system, as well as substantial additional offsite fuel oil storage.

NRG Energy is one of the world's leading independent power producers, specializing in the development, construction, operation, maintenance and ownership of low-cost, environmentally responsible power plants. Established in 1989, NRG Energy has a high quality portfolio of projects in the United States, Europe, the Pacific Rim, and Latin America. NRG Energy is involved in over 21,000 MW of projects utilizing such diverse fuel sources as natural gas, oil, coal and coal seam methane, biomass, landfill gas, and hydro, as well as refuse derived fuel and geothermal energy.

Certain information included in this press release contains statements that are forward-looking. Such forward-looking information involves risks and uncertainties that could significantly affect anticipated results in the future and, accordingly, such results may differ from those expressed in any forward-looking statements made by or on behalf of NRG Energy. For more information regarding these risks and uncertainties, review NRG Energy’s filings with the Securities and Exchange Commission.

Media Contact:

Frank Rapley
NRG Energy, Inc.
(612) 373-8892
e-mail: frank.rapley@nrgenergy.com