MINNEAPOLIS, Dec 4, 2001 (BUSINESS WIRE) --NRG Energy, Inc. (NYSE:NRG) issued a statement regarding Moody's Investors Service's decision to place NRG's corporate securities under review for possible downgrade following the company's November 29 announcement that it plans to acquire 2,535 megawatts of generating assets from FirstEnergy Corporation for approximately $1.5 billion. Moody's indicated the review was "likely to continue until NRG arranges permanent acquisition funding".

"Moody's acknowledges a strategic fit between the announced FirstEnergy asset acquisition and NRG's U.S. business, however the rating agency expresses concerns about NRG's financing an acquisition of such magnitude," said Leonard A. Bluhm, chief financial officer of NRG. "Although this action by Moody's was unexpected, we understand that these notices often accompany such large transaction announcements."

"NRG will use this review time to secure financing and work with the rating agencies to familiarize them with our financing plan," Bluhm continued. "We are confident that once this transaction--including the transitional power purchase, and NRG's finance plan--is better understood, NRG will be able to maintain its current investment grade rating."

NRG is a leading global energy company engaged primarily in the development, construction, acquisition, ownership and operation of power generation facilities. NRG owns 24,352 MW of generating assets in operation and under construction. 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, NRG's expected 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, changes in government regulation or the implementation of government regulations, which could result in NRG's failure to obtain regulatory approvals required to close project acquisitions, and factors affecting the availability or cost of capital, such as changes in interest rates and market perceptions of the independent 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 risks and uncertainties that may affect NRG's future results, review NRG's filings with the Securities and Exchange Commission.

Contacts:

NRG Energy, Inc.

Media Relations
Meredith Moore, 612/373-8892

Investor Relations
Rick Huckle, 612/313-8900