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NRG Energy Proposes Repowering Project for North San Diego Area

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NRG Energy Proposes Repowering Project for North San Diego Area

September 19, 2007 at 2:14 PM EDT

New, Efficient Power Plant Would Provide Much-Needed Electricity

                  Generation in the San Diego Region

PRINCETON, N.J.--(BUSINESS WIRE)--Sept. 19, 2007--On Friday, September 14, 2007 NRG Energy, Inc. (NYSE:NRG) filed an "Application for Certification" with the California Energy Commission (CEC) to modernize the Encina Power Station in Carlsbad, California. The project would be the first phase of NRG's plan to replace the existing Encina Power Station with a cleaner and more efficient generating facility to be located on site, adjacent to the current power plant.

The project, to be known as the Carlsbad Energy Center, will include the retirement of three older generating units but nonetheless will increase the net output of the facility by 200 megawatts, enough additional power to supply over 160,000 homes.

"Southern California's recent heat wave made very clear the need for additional clean and reliable energy resources in the region," said David Crane, the President and CEO of NRG Energy, Inc. "By modernizing this plant and offering additional capacity, NRG is able to provide much-needed power generation during these peak times and to do so in an environmentally superior way."

Originally constructed in 1954, the Encina Power Station has five steam generating units and one peaking combustion turbine. The proposed modernization would replace the three oldest steam generating units with a high efficiency power plant. Generating units 4 and 5, built in 1974, will continue to operate.

The Carlsbad Energy Center is designed to support the renewable energy resources being added to the California grid. The plant will use air-cooled condensers instead of ocean water for its cooling requirements, reducing the impact on the adjacent Agua Hedionda Lagoon and the Pacific Ocean. The new units are 30% more fuel efficient than the steam generating units, resulting in a significant reduction in carbon emissions from the plant. Emissions from the new plant will be well below California's newly imposed greenhouse gas standard.

Policy initiatives in California and the San Diego region call for the eventual replacement of the State's aging power generating fleet with cleaner, more efficient technologies. The Carlsbad Energy Center is the first phase of the eventual replacement of the existing Encina Power Station. The project is designed to have a low visual profile and compliment the future commercial development of the Encina site.

"The Carlsbad Energy Center is an important step in the transition of the current generating station. The project helps meet the region's need for reliable, efficient power. We look forward to working with the California Energy Commission and community leaders in Carlsbad to implement this important energy project." said Steve Hoffmann, NRG's western regional president.

Pending issuance of necessary permits and contingent up securing a long term sales contract for the power, NRG anticipates a 19-month construction schedule to complete the project, with the goal of bringing the facility online by summer 2010. The project will create over 350 construction jobs in the San Diego region.

The Carlsbad Energy Center is part of the Company's Repowering NRG initiative--a plan to build approximately 10,000 MW of new, highly efficient, clean power generation units at NRG's existing facilities. The program focuses on fuel diversity to reduce energy independence and implement best available technologies to reduce carbon intensity and promote environmentally responsible practices.

About NRG

A Fortune 500 company, NRG Energy, Inc. owns and operates a diverse portfolio of power generating facilities, primarily in Texas and the Northeast, South Central and West regions of the United States. Its operations include baseload, intermediate, peaking, and cogeneration and thermal energy production facilities. NRG also has ownership interests in generating facilities in Australia, Germany and Brazil.

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

This news release contains 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. Such forward-looking statements are subject to certain risks, uncertainties and assumptions and include NRG's expectations regarding the Encina Power Station project and typically can be identified by the use of words such as "will," "expect," "believe," and similar terms. Although NRG believes that its expectations are reasonable, it can give no assurance that these expectations will prove to have been correct, and actual results may vary materially. Factors that could cause actual results to differ materially from those contemplated above include, among others, general economic conditions, permitting and regulatory obstacles, and construction delays.

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 be considered in connection with information regarding risks and uncertainties that may affect NRG's future results included in NRG's filings with the Securities and Exchange Commission at www.sec.gov.


    CONTACT: NRG Energy, Inc.
             Investors:
             Nahla Azmy, 609-524-4526
             or
             Kevin Kelly, 609-524-4527
             or
             Media:
             Meredith Moore, 609-524-4522
             or
             Lori Neuman, 609-524-4525

    SOURCE: NRG Energy, Inc.