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NRG Energy to Buy Southern Energy's Interest in Louisiana Generating LLC

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NRG Energy to Buy Southern Energy's Interest in Louisiana Generating LLC

September 10, 1999 at 12:00 AM EDT

MINNEAPOLIS (September 10, 1999) -- NRG Energy, Inc. (NRG), a wholly owned subsidiary of Northern States Power Company (NYSE: NSP), announced today that it has exercised its option to purchase Southern Company (NYSE: SO) unit Southern Energy Inc.'s (Southern Energy) 50-percent share of Louisiana Generating LLC (Louisiana Generating).

An agreement reached earlier this year granted NRG the option to acquire Southern Energy's ownership interest in Louisiana Generating, and granted Southern Energy the option to require NRG to purchase its interest in Louisiana Generating. U.S. Bankruptcy Judge Gerald H. Schiff's confirmation of the Creditors' Plan of Reorganization for Cajun Electric Power Cooperative, Inc. selling Cajun's 1,708-megawatt fossil generating assets to Louisiana Generating gave NRG the opportunity to exercise its option.

NRG, a wholly owned subsidiary of Northern States Power Company (NYSE: NSP), is one of the world's leading independent power producers, specializing in the development, construction, operation, maintenance and ownership of electric generation facilities. Established in 1989, NRG is involved in over 19,000 MW of high quality projects throughout the United States, Europe, the Pacific Rim, and Latin America, utilizing diverse fuel types including natural and landfill gas, hydro, and solid fuels such as coal, lignite, biomass and refuse-derived fuel. Cajun Electric Power will be NRG's first asset in Louisiana. NRG has projects in 22 other states totaling over 8,800 MW in net equity ownership.

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. For more information regarding these risks and uncertainties, review NRG's filings with the Securities and Exchange Commission.

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Media Contact:

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