MINNEAPOLIS, Jan 30, 2001 (BUSINESS WIRE)—NRG Energy (NYSE:NRG):

Highlights

• Year-end earnings per share increased 182 percent to $1.10 in 2000, versus $0.39 in 1999

• Net income for 2000 more than doubled to $182.9 million, versus $57.2 million in 1999

• Total revenues increased threefold to $2.16 billion in 2000, versus $500 million in 1999

• Megawatt ownership increased 37 percent to 15,007 in 2000, versus 10,990 MW in 1999

NRG Energy, Inc. (NYSE:NRG) reported record net income and earnings per share for 2000 that far exceeds the company's stated 25 percent minimum growth target. Earnings per share for 2000 increased to $1.10, representing a 182 percent increase from 1999 reported earnings per share of $0.39 (proforma), both on a basic and a diluted basis. Year 2000 net income increased 220 percent to $182.9 million, versus $57.2 million in 1999. Total revenues for 2000 grew 332 percent to $2.16 billion from $500 million the previous year. In addition, NRG's megawatt ownership increased 37 percent in 2000 from the prior year.

"NRG has exceeded the goals we stated when we went public last year. Those goals include at least 25 percent growth in annualized earnings and megawatts, maintaining our investment grade credit rating, and developing our power marketing function," said David H. Peterson, NRG chairman, president and CEO. "The company's exceptional results are due to our successful execution of core business strategies and a well-positioned business platform.

"We continued to build megawatt capacity by both acquisitions, which are immediately accretive to earnings upon close, and greenfield and brownfield development. Our disciplined growth program further diversifies our market, fuel and plant dispatch characteristics," Peterson continued. "We significantly expanded our power marketing area in 2000, allowing us to significantly increase returns on our portfolio.

"Consistent with our strategy of being among the top-three competitive energy providers in each of our markets, our goal is to increase capacity megawatt ownership to at least 50,000 MWs by 2005." Looking to the future, Peterson said, "We are very optimistic about the power generation business' prospects for continued growth and are comfortable with the guidance of at least $1.30 earnings per share for 2001."

For the fourth quarter, NRG achieved earnings of $0.23 per share, a 21 percent increase over $0.19 per share in the comparable quarter of 1999. Net income for fourth quarter 2000 increased to $42.0 million on total revenues of $690.6 million, versus net income of $28.2 million and total revenues of $216.4 million in the comparable quarter of 1999.

Earlier today, the company announced it had closed the 5,633 MW LS Power project portfolio acquisition ahead of schedule. The company has an additional 5,704 MW of acquisitions expected to close in 2001, 448 MW of projects under construction and 1,395 MW of projects expected to begin construction in 2001. (See Attachment A)

During the second quarter of 2000, NRG completed an initial public offering of 32,395,500 shares priced at $15 per share. From the date of the initial public offering to year end, the price per share of NRG's common stock increased by 85 percent.

NRG Energy, Inc. (NYSE:NRG) 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 currently owned all or a portion of 63 power generation projects and its net ownership interest in these projects was 15,007 MW. The company's operating project portfolio will total approximately 30,000 MW once projects under construction are in operation and those in advanced development, construction and under acquisition agreements have closed.

Earnings Conference Call

A year-end 2000 earnings conference call is scheduled for 11:00 a.m. (eastern) on Wednesday, January 31, 2001. The live conference call may be accessed by calling (800) 230-1766 in the United States or (612) 322-0226 outside the United States. The conference call will also be simulcast over the Internet and can be accessed through the Investor Relations area of NRG Energy's web site at www.nrgenergy.com. A replay of the conference call will be available through Tuesday, February 6, 2001, by calling (800) 475-6701 in the United States or (320) 365-3844 outside the United States with an access code of 566314.

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; delay in closing or the failure to close project acquisitions, our failure to timely identify, construct and acquire power generation projects, 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.

Attachment A (In addition to 5,633 MW LS Power Project Portfolio)

Acquisitions expected to close in 2001:

• Conectiv (1,875 MW) in N.J., Del., Md. and Pa.;

• Bridgeport Harbor and New Haven Harbor Stations (1,051 MW) located in Conn.;

• Reid Gardner and Clark (665 MW net ownership) near Las Vegas, Nev.;

• Narva Power (1,323 MW net ownership) in Estonia;

• Seyitomer and Kangal (504 MW net ownership) in Turkey; and

• North Valmy (286 MW) in Valmy, Nev.

Projects that have closed and are under construction:

• Sabine River Works (210 MW net ownership) located near Orange, Texas; and

• Big Cajun I Expansion Project (238 MW) in New Roads, La.;

Projects expected to begin construction in 2001:

• Meriden (540 MW) located in Meriden, Conn.;

• Brazos Valley (310 MW net ownership) in Fort Bend County, Texas; and

• Kaufman (545 MW) in Kaufman County, Texas.

Consolidated Balance Sheets
NRG Energy, Inc. and Subsidiaries
(Unaudited)
                                                   Dec. 31,   Dec. 31,
(In thousands)                                       2000       1999
----------------------------------------------------------------------
Assets
Current Assets
 Cash and cash equivalents                     $    95,243 $   31,483

 Restricted cash                                    12,135     17,441

 Accounts receivable-trade, less allowance
  for doubtful accounts                            356,442    126,376

 Current portion of notes receivable -
  affiliates                                           207        287

 Current portion of notes receivable                    60          -

 Inventory                                         159,601    119,181

 Prepayments and other current assets               30,074     29,202
----------------------------------------------------------------------
       Total current assets                        653,762    323,970
----------------------------------------------------------------------
Property, Plant and Equipment, at Original Cost

 In service                                      4,109,700  2,078,804

 Under construction                                207,237     53,448
----------------------------------------------------------------------
                                                 4,316,937  2,132,252

 Less accumulated depreciation                   (272,428)  (156,849)
----------------------------------------------------------------------
       Net property, plant and equipment         4,044,509  1,975,403
----------------------------------------------------------------------
Other Assets

 Investments in projects                           975,182    932,591

 Capitalized project costs                          10,262      2,592

 Notes receivable, less current portion -
  affiliates                                        70,920     65,494

 Notes receivable, less current portion              5,825      5,787

 Decommissioning fund investments                    3,863          -

 Intangible assets, net                             61,352     55,586

 Debt issuance costs, net                           48,773     20,081

 Other assets, net                                  90,410     50,180
----------------------------------------------------------------------
       Total other assets                        1,266,587  1,132,311
----------------------------------------------------------------------
Total Assets                                   $ 5,964,858 $3,431,684
----------------------------------------------------------------------


Consolidated Balance Sheets
NRG Energy, Inc. and Subsidiaries
(Unaudited)
                                                   Dec. 31,   Dec. 31,
(In thousands)                                      2000        1999
----------------------------------------------------------------------
Liabilities and Stockholders' Equity
Current Liabilities
 Current portion of project level long-term
  non-recourse debt                            $   137,657 $   30,462

 Revolving line of credit                            8,000    340,000

 Revolving line of credit, non-recourse                  -     35,766

 Accounts payable-trade                            233,187     61,211

 Accounts payable-affiliate                          7,191      6,404

 Accrued income taxes                               43,605      4,730

 Accrued property and sales taxes                   10,531      4,998

 Accrued salaries, benefits and related costs       29,428      9,648

 Accrued interest                                   52,526     13,479

 Other current liabilities                          17,919     17,657
----------------------------------------------------------------------
       Total current liabilities                   540,044    524,355

Minority interest                                   14,685     14,373

Consolidated Project-Level, Long-Term,
 Non-Recourse Debt                               2,155,765  1,026,398

Corporate-Level Long-Term, Recourse Debt         1,503,896    915,000

Capital Lease Obligation, Long-Term                    825          -

Deferred Income Taxes                               55,642     16,940

Deferred Investment Tax Credits                        833      1,088

Postretirement and Other Benefit Obligations        83,098     24,613

Deferred Income and Other Long-Term Obligations    147,982     15,263
----------------------------------------------------------------------

            Total liabilities                    4,502,770  2,538,030
----------------------------------------------------------------------
Stockholders' Equity
 Class A - common stock; $.01 par value;
  250,000 shares authorized; 147,605 shares
  issued and outstanding                             1,476      1,476
 Common stock; $.01 par value; 550,000 shares
  authorized; 32,396 shares issued and
  outstanding                                          324          -

 Additional paid-in capital                      1,233,833    780,438

 Retained earnings                                 370,145    187,210

 Accumulated other comprehensive income          (143,690)   (75,470)
----------------------------------------------------------------------
 Total Stockholders' Equity                      1,462,088    893,654
----------------------------------------------------------------------
 Commitments and Contingencies
----------------------------------------------------------------------
Total Liabilities and Stockholders' Equity     $ 5,964,858 $3,431,684
----------------------------------------------------------------------


Consolidated Statements of Income
NRG Energy, Inc. and Subsidiaries
(Unaudited)
                             Twelve Months Ended    Three Months Ended
(In thousands,                   December 31,          December 31,
except per share data)         2000        1999      2000        1999
----------------------------------------------------------------------
Operating Revenues

 Revenues from wholly-owned
  operations               $2,019,179 $  432,518 $  679,516 $  194,663
 Equity in operating
  earnings of
  unconsolidated affiliates   141,286     67,500     11,115     21,774
----------------------------------------------------------------------
       Total operating
        revenues            2,160,465    500,018    690,631    216,437
----------------------------------------------------------------------
Operating Costs and
 Expenses

 Cost of wholly-owned
  operations                1,291,199    269,900    450,930    121,689

 Depreciation and
  amortization                123,404     37,026     36,128     13,338

 General, administrative,
  and development             172,489     83,572     74,474     30,649
----------------------------------------------------------------------
       Total operating
        costs and expenses  1,587,092    390,498    561,532    165,676
----------------------------------------------------------------------

Operating Income              573,373    109,520    129,099     50,761
----------------------------------------------------------------------
Other Income (Expense)
 Minority interest in
  earnings of consolidated
  subsidiary                 (11,335)    (2,456)    (4,177)      (919)

 Gain on sale of interests
  in projects                    --       10,994       --       10,994

 Other income, net              7,857      6,432      5,946        928

 Interest expense           (294,486)   (93,376)   (79,061)   (35,769)
----------------------------------------------------------------------
       Total other expense  (297,964)   (78,406)   (77,292)   (24,766)
----------------------------------------------------------------------
Income before Income Taxes    275,409     31,114     51,807     25,995

Income Taxes - Expense
 (Benefit)                     92,474   (26,081)      9,803    (2,192)
----------------------------------------------------------------------
Net Income                 $  182,935 $   57,195 $   42,004 $   28,187
----------------------------------------------------------------------

Weighted Average Number of
 Common Shares
 Outstanding - Basic          165,861    147,605    180,000    147,605


Earnings per Average Common
 Share - Basic             $     1.10 $     0.39 $     0.23 $     0.19

Weighted Average Number of
 Common Shares
 Outstanding - Diluted        166,995    147,605    182,030    147,605

Earnings per Average Common
 Share - Diluted           $     1.10 $     0.39 $     0.23 $     0.19

Contacts:

NRG Energy, Inc.

Media Relations
Meredith Moore, 612/373-8892

Investor Relations
Rick Huckle, 612/313-8900