MINNEAPOLIS, May 02, 2001 (BUSINESS WIRE)—NRG Energy, Inc. (NYSE:NRG) signed an asset purchase agreement with Duke Energy North America for its 77 percent interest in the McClain Energy Generating Facility--a 520 megawatt winter-rated (500 MW summer-rated) combined-cycle, natural gas-fired facility. The Oklahoma Municipal Power Authority owns the remaining 23 percent interest.

"This acquisition follows NRG's strategy of developing an expanded presence in its core regions—in this case the South Central United States," said David H. Peterson, NRG chairman, president and CEO."

The merchant generation facility is in the final stages of construction on a greenfield site in Newcastle, Oklahoma, just south of Oklahoma City in McClain County. Construction of the facility began in March 2000, with commercial operations scheduled to commence this summer to meet peak summer demand. NRG will operate the McClain facility.

"The project's location on the transmission grid allows NRG to get an enhanced project return while adding generation near a high density population area with substantial projected load growth," said Craig A. Mataczynski, president and CEO of NRG North America. "Located in the Southwest Power Pool, the McClain facility will enhance regional reliability by providing new power sources to meet peak demand needs."

NRG is a leading global energy company engaged primarily in the acquisition, development, construction, ownership and operation of power generation facilities. NRG owns all or a portion of 66 projects (188 facilities) in operation and under construction. Its net ownership interest in these projects is 18,678 MW. In addition, the company has 5,782 MW of projects under signed acquisition agreement and 6,421 MW of projects in advanced development, for a total of 30,881 MW of capacity from identifiable projects. 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. 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 business or investment considerations 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. For more information, review NRG's filings with the Securities and Exchange Commission.

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

NRG Energy, Inc.

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