## FOR IMMEDIATE RELEASE 

# NEWS RELEASE

NRGEnergy, Inc. Reports Full-Year andFourthQuarter2010 Results Full-Year2010 Financial Highlights 

### • $2,514 million ofadjusted EBITDA, second best result ever • $1,760 million ofadjusted cash from operating activities • $476 million ofnetincome and $1.84 per diluted common share • $180 million ofcommon stock, 

### or 8.5 million shares, repurchased Fomth Quartet

### 2010 

### FinancialHighlights • $444 million ofadjusted EBITDA • $200 million pre-payment ofdebt onthe Term Loan

### B Facility • $4,252 million ofliquidity, including $2,959 million in cash, at year end 

### Announcing 2011 

### CapitalAllocation Plan. 

### andReaffirming 

### 2011 EBITDA

### Guidance • Launching 2011 Capital Allocation Plan at $180 million ofshare repurchases, inline with ourgoal to retum to shareholders 3% ofmarket capitalization annually • Reaffirming 2011 EBITDAguidance range of$1,750

- $1,950 million 

### PRINCETON,

## NJ; February22, 

### 2011-NRGEnergy, Inc. (NYSE: NRG) today .reported 2010 

### full year adjusted EBITDA of$2,514 million; 4% lower than a record 2009 EBITDA of$2,618 million while 2010 full

### year netincome totaled $476 million, or $1.84 

### per diluted common share, compared to $941 million, or$3.44 per diluted common share, fo.r 2009. Reliant Energy contributed $711 million ofadjusted EBITDA in 2010 which marked its first 

### full 

### year ofownership as compared to 

### $642 million in

### 2009 during which NRGowned Reliant Energy for 

### eight months. Wholesale adjusted EBITDAwas 

### lower by $173 million in2010 as compared to 2009, mostly due tolower hedge prices and 

### increased fuel costs in 

### the Northeast andTexas .regions, respectively. Pattially offsetting the decline were contributions from newly acquired assets including Green Mountain Energy Company, Cottonwood, No.rtb.wind Phoenix, and South Trent as well 

### as a full 

### year of operation ofthe Blythe solarproject. Fourth quarter 2010 adjusted EBITDA totaled $444 million, $45 million lower than 

### 2009 fourth quarter adjusted EBTIDA of$489 million, while fourth quarter 

### 2010 reflects a netloss of $15 million, or ($0.07) per 

### diluted common share, compared to netincome of$33 million, 

### or $0.11 pttdiluted common share, for the fourth quarter 1ast

### year. Wholesale adjusted EBTIDAwas $58 million lowtt at $327 million driven by a decline in

### energy ma.tgins resulting from lower hedge prices and increased fuel 

### costs. Partially offsetting the lowerwholesale results were the acquisition of assets and a $13 million increase atReliant Energy which benefited from an improvementin customer retention and customer payment patterns. "In

### 2010, NRGwas able to postnear record results while successfullyrepositioning the Company to take advantage ofthe enotmous opportunities whichwe expect to 

### arise in the months and years to come as the electricity and 

### transportation sectors, and society at large, trend toward 

### sustainability," commented David Crane, NRGPresident and ChiefExecutive Officer. "NRG's acquisition of Green 

### Mountain Energy and SouthTrentWmd, and the considerable success we have had in advancing our solar development pipeline will 

### over time enhance our financial performance, reduce

1our environmental exposure, and establish NRG as the premier new energy company for the 21" century." NRG recorded its safest year ofoperations in 2010 with an OSHA recordable rate of0.75. Overall generation production was 5% lower in the fourth quarter of2010 compared to the fourth quarter of2009. Highlighting this quarter's plant performance was the Huntley coal generating asset in West NewYork with an equivalent availability factor of94%. For 2010, NRG's coal assets performed above the industry's top quartile level for availability with WA Parish generating station in Texas leading with a 93% equivalent availability factor. When compared to the 

### full year of2009, generation remained at approximately 66.8 terawatt-hours 

### (TWh). Year-over-year declines in generation from our Texas plants and the West region were offset byincreased generation at Big Cajun II, the Cottonwood acquisition in November, and increased production from the Northeast gas and oil fleet. Regional Segment Results Table 1: Adjusted EBITDA



### ($ in millions) Three Months Ended Twelve Months Ended Segment 12/31/10 12/31/09 12/31/10 12/31/09 Reliant Energy<') 117 104 711 642 Texas 237 264 1,241 1,329 Northeast 35 77 315 468 South Centtal 24 25 109 81 West 15 11 60 53 International 13 12 69 59 Thermal 5 8 25 25 Co!_Eorate(2)**~2l ~12l** **~16l ~39l**  Adjusted EBITDA (3) 444 489 2,514 2,618 Q) Reliant Energy acquired May 1, 2009 (2) Corporate includes the results ofGreen Mountain Energy, acquired in the fourth quarter of2010, and profit elimination on intercompany revenue**~)** Detruled adjustments by region are shown inAppendix A Table 2: Net Income/(Loss)



### ($ in millions) Segment Reliant Energy Texas Northeast South Centtal West International Thermal Co!_Eorate<'l Net Income/(Loss) Three Months Ended 12/31/10 289 (95) (60) (15)



### 5 9 

### (1) (147) (15) 12/31/09 159 162 (12)

1 8 

### 7 2 (294)

33 Twelve Months Ended 12/31/10 358 876 13 

### (7) 39 45 4 (852) 476 12/31/09 966 672 291 (41) 40 150



### 8 (1,145)

941 (1) Corporate IDcludes the results ofGreenMountain Energy, acquired in the fourth quarter of2010, and profit elimination on intercompany revenue Reliant Energy: Full-year 2010 adjusted EBIIDA totaled $711 million, an increase of$69 million from 2009, which included results for eight months as NRG completed the Reliant Energy acquisition on May 1, 2009. ExcludingJanuary through April2010 results, Reliant Energy's adjusted

2EBTIDA decreased $158 million due to a $175 million decline in gross margin. The decline in gross margin was driven by price reductions enacted following the acquisition and lower margins on acquired and renewed customers which resulted in a 13% decline in unit margins. Lower attrition rates and favorable economic conditions led to an improvement in customer payment patterns in 2010 that resulted in $23 million favorable bad debt expense, which partly offset the lower margins. During 2010, net customer attrition rates improved to 0.4% from 0.7% in 2009 with 1.5 million total customers at year end. During the foutth quarter, Reliant Energy's adjusted EBITDA was $117 million, $13 million higher than the foutth quarter of2009. Gross margin was unchanged versus the prior quarter as a decline in volumes, a result oflower Mass customer count and slightly warmer weather, were offset by favorable supply costs. Meanwhile, bad debt expense improved $19 million as compared to the foutth quarter of2009 due to the improvement in customer payment patterns. Texas: Annual adjusted EBITDA decreased by $88 million from 2009 to 2010 to $1,241 million. Energy margins decreased $104 million year-over-year due largely to increased fuel and transportation costs arising from a new transportation contract for W A Parish Coal, as well as an increase in natural gas prices. Generation was slightly less in 2010 as compared to 2009 driven by unplanned outages at both South Texas Project (STP) and Limestone, offset by higher wind generation due to a full year ofoperations from Langford and the acquisition ofSouth Trent in June. Adjusted EBTIDA for the foutth quarter of2010 decreased by $27 million to $237 million compared to the foutth quarter of2009. Energy margins were lower by $43 million due to a combination ofcompressed dark spreads, driven by lower natural gas prices and increased coal transportation costs, and a 6% decline in generation. O&M costs were favorable driven by a $6 million 

### gain on land sales, as well as by lower major maintenance costs at STP due to a refueling outage in the foutth quarter of2009. Northeast: Annual adjusted EBITDA decreased $153 million over the prior year to $315 million. Energy margins decreased $177 million as a result ofa 32% decrease in hedge prices in 2010 compared to 2009. In addition, capacity revenues decreased $11 million driven by the expiration of the region's NEPOOL RMR contracts onMay 31, 2010, as well as lower merchant sales volumes due to the retirement ofthe Somerset facility inJanuary 2010. Partially offsetting the decreased gross margins were $32 million in favorable operating expenses, including lower maintenance expenses at Indian River, Arthur Kill and Dunkirk, which had major outages performed in 2009. In addition, property taxes were lower by $7 million in 2010 due to the impact ofchanges in regulation in 2009. Adjusted EBITDA for the foutth quarter of2010 was $35 million, a decrease of$42 million compared to the foutth quarter of2009. Energy margins declined by $57 million due to a 25% decline in generation partially due to increased outages in the quarter along with a 35% decrease in hedge prices and increased coal costs. Futthermore, capacity revenues decreased $7 million as the loss ofRMR revenue in NEPOOL and the decline in FCM prices were only partially offset by higher cleared prices in New York City. Favorable operating expenses partially offset these declines as December 2009 results included a $12 million charge associated with the cancellation of environmental construction work at our Indian River unit 3. South Central: For the year, adjusted EBITDA increased $28 million to $109 million from $81 million in 2009. Co-Op and long term contract margins increased $47 million, driven by the addition ofa new contract with a regional municipality which led to a 12% increase in megawatt-hours
3

### (MWh) sold. Improved plant performance at the region's Big Cajun II facility led to a 5% increase in total generation benefiting the contract load. Meanwbile, our Cottonwood Generating Station added an additional265,000 MWh ofgeneration since it was acquired on November 15, 2010. Pattially offsetting the 

### gain was a decline in merchant activity of$8 million and increased maintenance work of$10 million primarily driven by a planned major overhaul on Big Cajun II unit 2. Adjusted EBITDA for the fourth quatter totaled $24 million, $1 million lower as compared to the fourth quatter of2009. Co-op and contract sales increased nearly 9% to 2.4 million MWh sold wbile generation at Big Cajun II increased 10% to 2.8 million MWh. The higher load requirements combined with increased coal costs led to a $3 million decline in long term contract margins. However, the decline was offset by favorable operating expenses with less maintenance work performed in the quatter as compared to 2009. 

### Liquidity and Capital Resources Table 3: Corporate Liquidity ($ in millions) Cash and cash equivalents Funds deposited by counterpatties Restricted cash 

### Total Cash and Funds Deposited Letter ofcredit availability Revolver availability 

### Total Liquidity Less: Funds deposited as collateral by hedge counterpatties 

### Total Current Liquidity December31, 2010 2,951

408 

### 8 3,367



### 440 853 

### 4,660 (408) 

### 4,252 December31,2009 2,304

177 2 2,483

583 905 

### 3,971 (177) 

### 3,794 Total liquidity on December 31, 2010, stood at $4,252 million, an increase of$458 million from December 31, 2009, driven primarily by the higher cash and cash equivalent balances of $647 million, excluding funds deposited by counterpatties. The change in cash and cash equivalents was due to the following: $1,760 million ofadjusted cash flow from operations; $1,484 million in debt proceeds including the $1,100 million 2020 senior note issuance; pattially offset by asset acquisitions totaling $1,006 million; $758 million ofdebt payments; $706 million ofcapital expenditures; and $180 million ofstock repurchases. Meanwbile, letters ofcredit and revolver availability declined $195 million principally due to the reduction in our Revolver capacity upon its refinancing inJune 2010. OnJanuary 11,2011, NRG announced the issuance of$1.2 billion 7.625% senior notes due 2018 and a cash tender for the outstanding 2014 senior notes
- ofwhich approximately $945 million tendered as ofJanuary 25, 2011. OnJanuary 26, 2011, the Company announced that the required notice was given to redeem, for cash, all ofthe remaining 7.250% senior notes due 2014 on February 25, 2011. 

### Growth Initiatives and Developments Solar developments- NRG's more than 900 MW near-term solar development pipeline includes multiple projects and investment opportunities for solar facilities utilizing various technologies ranging from concentrated solar thermal to photovoltaic 

### (PV). Progress has been made across our entire solar development portfolio in 2010, the most noteworthy ofwhich are as follows:

4

### Roadrunner- On December 10, 2010, NRG announced it would break ground on Roadrunner, a 20 MW PV solar project in New Mexico. The generation 

### will be sold to El Paso Electric under a 20- year purchase power agreement and is expected to be operational by 2011 year end. Ivanpah NRG executed a letter ofintent with BrightSource Energy, Inc. on October 27, 2010, to construct, finance and operate the Ivanpah Solar Electric Generating System. Ivanpah 

### will use solar thermal technology in three adjacent, but separate facilities in California totaling 392 MW and is expected to be fully operational by mid-2013. The project has received a $1.375 billion conditional commitment from the U.S. Department ofEnergy for a loan guarantee, has obtained all necessary permits and approvals, and has signed long term power purchase agreements with Southern California Edison and Pacific Gas & Electric. NRG is partnering with BrightSource and other investors in the ownership ofIvanpah and we expect to own approximately 50% ofthe facility. California Valley Solar Ranch- NRG and SunPower Corp., on November 30, 2010, signed an agreement to build California Valley Solar Ranch (CVSR), one ofthe largest PV solar facilities in the world. The 250 MW project is on track to be fully operational by 2013. Under the agreement, NRG 

### will assume all ownership and financing responsibilities for CVSR, while SunPower 

### will continue to develop the project, and build, operate and maintain the facility. Power from CVSR 

### will be sold to Pacific Gas & Electric under two 25-year power purchase agreements (PPAs) that were approved by the California Public Utilities Commission. 1\g:ua Caliente- On December 14, 2010, the Company announced an agreement to acquire from First Solar a 290 MW PV solar project under development called Agua Caliente. The facility, located in Arizona, is scheduled to be completed by 2014 and upon completion, is expected to be the largest operational PV site in the world. Power 

### will be sold under a 25-year power purchase agreement with Pacific Gas & Electric. OnJanuary 20, 2011, the U.S. Department ofEnergy announced the offer of a conditional commitment to Agua Caliente for a loan guarantee ofup to $967 million. Repowering Projects Nuclear Innovation North America (NINA)- On November 29, 2010, NINA awarded the EPC contract for the development ofSTP Units 3 and 4 to a restructured EPC consortium formed by Toshiba America Nuclear Energy Corporation and The Shaw Group Inc. Shaw is providing a $100 million credit facility to NINA to assist in financing 

### STP. The credit facility 

### will convett to equity in NINA upon the satisfaction ofcertain conditions including the project receiving full notice to proceed, which is expected in mid-2012. The project is presently scheduled to come online with one unit in 2016 and the second in 2017. The project remains subject to receipt ofa conditional loan guarantee from the Department ofEnergy and to the satisfaction ofcertain conditions, most notably, the arrangement oflong term PPAs for a significant portion ofthe plant's capacity. It is anticipated that the pace ofdevelopment and pre-construction work required to meet the 2016/2017 online schedule dictates that the loan guarantee needs to be received and critical conditions satisfied in the third quarter of2011. As a result, NRG expects to make a final decision with respect to its continued funding ofSTP 3&4 during the third quarter of2011. El Segundo TheEl Segundo repowering project-a proposed 550 MW natural gas-fueled combined cycle facility at our existing facility-received final approvals from the California Public Utilities Commission on October 28, 2010, for a 10-year power purchase agreement with Southern California Edison. Construction ofthe new units is anticipated to begin in the second halfof2011, with a summer 2013 commercial operation date.



### 5Acquisitions NRG made a number ofacquisitions in 2010 including the purchase ofNorthwindPhoenix (now named NRG Energy Center Phoenix) and South Trent wind farm, both announced earlier in the year, and in the fourth quarter the company completed the following acquisitions:

• The acquisition ofthe Cottonwood Generating Station, a 1,265 MWnatural gas-fueled plant in the Entergy zone ofeast Texas, from Kelson Limited Partnership for $507 million on November 15, 2010. Adding Cottonwoodin the South Central portfolio allows for future contracting opportunities and 

### will enable NRG to provide additional balancing and ancillary services. • The acquisition ofGreen Mountain Energy Company, a leading retail provider ofclean energyproducts and services, for $357 million in cash, net ofcash acquired on November 5, 2010. Green Mountain, which is run as a standalone retail business within NRG, offers its customers the choice ofcleaner energy and carbon offset products. 2011 Capital .Allocation Plan NRG's Board ofDirectors approved $180 million ofshare repurchases for 2011, in line with our goal to return 3% ofour market capitalization to our shareholders on an annual basis so long as we have the requisite capacity projected to be available under ourrestricted payment basket. As part ofthe 2011 Capital Allocation Plan, the Company 

### will invest $190 million in maintenance capital expenditures, $108 million in net environmental expenditures in its existing assets, and $640 million, net, in growth investments and projects under 

### R.poweringNRG. In addition to scheduled debt amortization payments, in the first quarter of2011, the Company expects to offer its first-lien lenders 50% ofthe "2010 Excess Cash Flow'' as defined in the Company's CreditAgreement less the $200 million pre-payment made in November of2010. This amountis currently anticipated to result in an additional payment ofapproximately $214 million resulting in a total excess cash flow offer ofapproximately $414 million to the TermLoan B facility following our strongresults in 2010
. Oudookfor 2011 NRG's 2011 adjusted EBITDA guidance remains unchanged with a range of$1,750 to $1,950 million with Reliant Energy contributing $480 to $570 million, Wholesale $1,200 to $1,300 million and Green Mountain $70 to $80 million. Free cash flow before growth investments remains unchanged at $825 to $1,025 million. Due to a net increase in the Company's growth investments, primarily related to the expansion ofthe solar project pipeline, the 2011 projected free cash flow now stands at a range of$150 to $350 million. In December 2010 Congress extended the availability ofthe cash grant to renewable projects that begin construction during 2011. Coupled with the fact thatwe did not reach the milestones for closing onDepartment ofEnergyloan guarantees for our large solarinvestments, approximately $267 million ofsolar expenditures 

### will be spentin 2011 as opposed to the fourth quarter of2010. This amount relates primarily to our Ivanpah and CVSR solar projects.



### 6Table 

### 5: 2011 Reconciliation ofadjusted EBITDA Guidance**~$** in millions 

## 2 2/22/2011 11/24/2010 Adjusted EBITDA guidance 

### 1,750- 1,950 1,750- 1,950 Interest payments (677) (692) Income tax (50) (50) Collateral/Workins: caEital/other changes 177 154 Cashflow from operations 

### 1,150

- 1,350 1,150

- 1,350 Maintenance capital expenditures (190) (223) Environmental capital expenditures, net (108) (111) Preferred dividends**~9~ ~9~**  Free cash flow- before growth investments 

### 825-1,025 825-1,025 Growth investments, net (590) (343) NINA caEital calls**~50~ ~50~**  Free cash flow 

### 150-350 425-625

Note: Subtot2ls and tDt2ls arerounded Earnings Conference Call On February 22, 2011, NRG will host a conference call at 9:00 a.m. eastern to discuss these results. Investors, the news media and others may access the live webcast ofthe conference call and accompanying presentation materials by logging onto NRG's website at http://www.nrgenergy.com and clicking on "Investors." The webcast will be archived on the site for those unable to listen in real time. AboutNRG NRG Energy, Inc. is a Fortune 500 and S&P 500 Index company that owns and operates one ofthe country's largest and most diverse power generation portfolios. Headquartered in Princeton, NJ, the Company's power plants provide 25,000 megawatts ofgeneration capacity--enough to supply approximately 20 million homes. NRG's retail businesses, Reliant Energy and Green Mountain Energy Company, combined serve more than 1.8 million residential, business, commercial and industrial customers. With investments in solar, wind and nuclear power, as well as electric vehicle infrastructure, NRG is working to help America transition to a clean energy economy. More information is available at www.nrgenergy.com. Safe Harbor Disclosure This news release contains forward-looking statements within the meaning ofSection 27 A ofthe Securities Act of 1933 and Section 21E ofthe Securities Exchange Act of 1934. Such forward-looking statements are subject to certain risks, uncertainties and assumptions and include our adjusted EBITDA, free cash flow guidance, expected earnings, future growth, financial performance, environmental capital expenditures, and nuclear and other clean energy development, and typically can beidentified bytheuse ofwords such as "will," "expect," "estimate," "anticipate," "forecast," "plan," "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 mayvary materially. Factors that could cause actual results to differ materially from those contemplated above include, among others, general economic conditions, hazards customaryin the powerindustry, weather conditions, successful partnering relationships, government loan guarantees competition inwholesale and retail power markets, the volatility ofenergy and fuel prices, failure ofcustomers to perform under contracts, changes in the wholesale powermarkets, changes in government regulation ofmarkets and ofenvironmental emissions, the condition ofcapital markets generally, our ability to access capital markets, unanticipated outages at ourgeneration facilities, adverse results in current and future litigation, the inability to implement value enhancing improvements to plant operations and companywide processes, the inability to maintain retail customers, the inability to achieve the expected
7benefits and timing ofdevelopment projects, and the 2011 Capital Allocation Plan, and share repurchase under the Capital Allocation Plan may be made from time to time subject to market conditions and other factors, including as permitted by United States securities laws. NRG undertakes no obligation to update or revise any forward-looking statements, whether as a result ofnew information, future events or otherwise. The adjusted EBITDA guidance and free cash flows are estimates as oftoday's date, February 22, 2011 and are based on assumptions believed to be reasonable as ofthis date. NRG expressly disclaims any currentintention to update such guidance. The foregoing review offactors 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.
Contacts: Media: Meredith Moore 609.524.4522 Lori Neuman 609.524.4525 Dave Knox 713.537.2130 

### ###
Investors: NahlaAzmy 609.524.4526 Stefan Kimball 609.524.4527 Erin Gilli 609.524.4528

8NRG ENERGY, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS Three months ended December 31, Twelve months ended December 31, (In millions except per share amounts) 2010 2009 2010 2009 Operating Revenues

Total operating revenues............................................................................................................................. _ _Jc...JWlJl.!! $ 1 816 $ 2141 $ 8 849 $ 8952 Operating Coats and Expenses Cost ofoperations
........................................................................................................................................ 1,270 1,422 6,073 5,323 Depreciation and amortization •.....•.....••.....•.....••....••.....•.....••.....•.....••....••.....•.....••.....•.....••....••.•.....••....••. 218 224 838 818 Sdlmg, gcn=l and .dmini.tntive
............................................................................................................ 157 159 598 550 Reliant Acquisition-related transaction and integration costs............................................................... 8 54 19 Development costs ...................................................................................................................................... ____ .)1' 14 55 48 Total operating costs and expenses ........................................................................................................ 1,664 1,827 7,564 6,793 G-ain on sale ofassets ............................................................................................................................... -----'=**2~** 152 Operating Income
........................................................................................................................................... ___ _..!.;!6 314 1 308 2159 Other Income/(Expense)

Equityin earnings ofunconsolidated affiliates
....................................................................................... 3 8 44 41 G-ains on sales ofequitymethod investDlents
......................................................................................... 128 Other income/(expense), net..................................................................................................................... (1) 4 33 (5) Refinancing expenses.................................................................................................................................. (20) (20) (163) Interest expense............................................................................................................................................ ___ J,!!!dl,l. (159) (632) (634) Total other expenses................................................................................................................................. ---J.!!!l,l. Income From Continuing Operations Before Income Taxes
........................................................... (161)**(1~1)** (555) 

### (12Q) (9) 147 753 1,669 6 Income tax expense ..................................................................................................................................... ____ ....!! 114 2II 728 Income From Continuing Operations
...................................................................................................... (15) 33 476 941

Income from discontinued operations, net ofincome taxes ................................................................ -----'= NetIncome
...................................................................................................................................................... (15) 33 476 941

Less: Net loss attributable to nonconttollinginterest
............................................................................

# ----== Net Income attributable to NRG Energy, Inc
...................................................................................... (1) (1) (15) 33 477 942

2 Dividends f01: preferred shares
................................................................................................................. ____ ..J, 6 9 33 Income Available for Common Stockholders
......................................................................................... _ _jL-_..!!.1). $ (11) $ 27 $ 468 $ 909 Eamings per share attributable to NRG Energy, Inc. Common Stockholden
...........................

Weighted average number ofcommon shares outstanding- basic
.................................................. 248 242 252 246 Income from continuing operations perweighted average common share- basic
....................... $ (0.07) $ 0.11 $ 1.86 $3.70 Income from discontinued operations perweighted average common share- basic
................... 

### --,...--= Net IncomeperWeightedAverage Common Share- Basic
.......................................................... $ (0.07) $ 0.11 $ 1.86 $ 3.70

Weighted average number ofcommon shares outstanding- diluted
.............................................. 248 244 254 271 Income from continuing operations perweighted average common share- diluted
.................... $ (0.07) $ 0.11 $ 1.84 $ 3.44 Income from discontinued operations perweighted average common share- diluted
................ 

### ----= Net IncomeperWeightedAverage Common Share- Diluted
...................................................... _ _;L_.!)i,Y.l). $ (0.01) $ 0.11 $ 1.84 $ 3.44 Amounts Attributable to NRG Energy, Inc.: Income from continuing operations, net ofincome taxes ................................................................. $ (15) $ 33 477 942 Income from discontinued operations, net ofincome taxes ............................................................. 

### ----= Net Income
....................................................................................................................................................... _ _JIL__..!!.2). $ (15) $ 33 

# s 1II i 942

9Current Assets NRG ENERGY, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS

ASSETS 

### Cash and cash equivalents
...................................................................................................................... Funds deposited by counterparties
....................................................................................................... Restricted cash
.......................................................................................................................................... Accounts receivable- trade, less allowance for doubtful accounts of$25 and $29
.................... Current portion ofnote receivable

- affiliate and capital leases
..................................................... Inventory
................................................................................................................................................... Derivative instruments valuation
........................................................................................................... Cash collateral paid in support ofenergy risk management activities
............................................. Prepayments and other current assets .................................................................................................. Total current assets.................................................................................................................................. Property, Plant and Equipment 

### In service
................................................................................................................................................... Under construction
.................................................................................................................................. Total property, plant and equipment
.................................................................................................... Less accumulated depreciation
.............................................................................................................. Net property, plant and equipment
....................................................................................................... Other Assets 

### Equity investments in affiliates
.............................................................................................................. Note receivable

- affiliate and capital leases, less current portion
................................................. Goodwill
................................................................................................................................................... Intangible assets, net ofaccumulated amortization of$1,064 and $648
......................................... Nuclear decommissioning trust fund
.................................................................................................... Derivative instruments valuation
........................................................................................................... Restricted cash supporting funded letter ofcredit facility
................................................................. Other non-current assets ........................................................................................................................ Total other assets ..................................................................................................................................... Total Assets
............................................................................................................................................. .&1**2fll"'wh~** Jl 2010 2009 (Inmillions) 

### $ 2,951 $ 2,304 408 177 8 2 734 876

29 32 453 541 1,964 1,636

323 361 267 279 7137 6.208 14,913 14,083

1400 533 16,313 14,616 (3 796) (3 052) 12.517 11.564 

### 536 409 384 504 1,868 1,718 1,776 1,777

412 

### 367 758 683 1,300

208 148 7,242 5,606 

# s26 826 $23318

10NRG ENERGY, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS



### LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities Current portion oflong-term debt and capital leases
............................................................... Accounts payable

- trade
........................................................................................................... Accounts payable

- affiliates
...................................................................................................... Derivative instrwnents valuation
................................................................................................. Deferred income taxes .................................................................................................................. Cash collateral received in support ofenergy risk management activities
............................ Accrued interest expense .............................................................................................................. Other accrued expenses ................................................................................................................ Other current liabilities
................................................................................................................. Total current liabilities
.................................................................................................................. 

### Other Liabilities Long-term debt and capital leases
............................................................................................... Funded letter ofcredit
.................................................................................................................. Nuclear decommissioning reserve .............................................................................................. Nuclear decommissioning ttust liability
..................................................................................... Postretirement and other benefit obligations
............................................................................ Deferred income taxes .................................................................................................................. Derivative instrwnents valuation
................................................................................................. Out-of-market contracts............................................................................................................... Other non-current liabilities
......................................................................................................... Total non-current liabilities
.......................................................................................................... 

### Total Liabilities
............................................................................................................................ 3.625% convertible perpetual preferred stock; $0.01 par value; 250,000 shares issued and

outstanding (at liquidation value of$250, net ofissuance costs)
.......................................... 

### Commitments and Contingencies Stockholders' Equity 4% convertible perpetual preferred stock; $0.01 par value; no shares issued and

outstanding at December 31, 2010 and 154,057 shares issued and outstanding at December 31, 2009 (at liquidation value of$154, net ofissuance costs)
............................. Common stock; $0.01 par value; 500,000,000 shares authorized; 304,006,027 and

295,861,759 shares issued and 247,197,355 and 253,995,308 shares outstanding at December 31,2010 and 2009
..................................................................................................... Additional paid-in capital
.............................................................................................................. Retained earuings
............................................................................................................................ Less treasury stock, at cost- 56,808,672 and 41,866,451 shares at December 31, 2010

and 2009
......................................................................................................................................... Accumulated other comprehensive income
............................................................................... Noncontrollinginterest
................................................................................................................. 

### Total Stockholders' Equity
...................................................................................................... Total Liabilities and Stockholders' Equity
........................................................................... As ofDecember ,31, 2010 2009 (In millions, except share data) $ 463 783 1,685

108 408 192 307 274 4.220 8,748 1,300

317 272 322 1,989

365 223 820 14,356 18,576 248



### 3 5,323 3,800 (1,503) 432

17 8,072 $26 896 $ 571 693 4 1,473

197 177 207 298 142 3.762 7,847

300 255 287 1,783

387 294 519 11,672 15.434 247

149


### 3 4,948 3,332 (1,163) 416

12 7 697 $23 378

11Cash Flows from Operating Activities NRG ENERGY, INC. AND SUBSIDIARIES CONSOliDATED CASH FLOW STATEMENTS

Net income
.............................................................................................................................................. Adjustments to reconcile net income to net cash provided by operating activities: Distrib':'ti?ns and equio/ in**~arnings** ofunconsolidated affiliates
.......................................................... Depreciation and amortization
............................................................................................................... Provision for bad debts
.......................................................................................................................... Amortization ofnuclear fuel...
............................................................................................................... Amortization offinancing costs and debt discount/premiums
...............................................................**Amort!za~on** ofintangibles**~d out-of-mar~et**  contracts ...................................................................... Amortization ofunearned eqwty compensation
.................................................................................... Loss on disposals and sales ofassets ..................................................................................................... Impainno:nt**ch~ge~** and asset write downs
............................................................................................ Changes m denvatives
........................................................................................................................... Changes in deferred income taxes and liability for uncertain tax benefits
............................................. Gain on sales ofequity method investments
.......................................................................................... Loss/(gain) on sale ofemission allowances
........................................................................................... Gain**re~gnized** on**settlem~t** 

### ?f**J?Te-exis~g** r.e!ationship
................................................................... Changes m nuclear decomm1ssmnmg trust hab1lity
............................................................................... Changes in collateral deposits supporting energy risk management activities
....................................... Cashprovided!( used) by changes in other working capital, net ofacquisition and disposition effects: Accounts receivable, net ........................................................................................................................ Inventory
................................................................................................................................................ Prepayments and other current assets .................................................................................................... Accounts payable
................................................................................................................................... Change in option premiums collected
.................................................................................................... Accrued expenses and other current liabilities
....................................................................................... Other assets and liabilities
...................................................................................................................... Net Cash Provided by Operating Activities
........................................................................................ Cash Flows from Investing Activities Acquisition ofbusinesses, net ofcash acquired
..................................................................................... Capital expenditures
............................................................................................................................... (Increase)/decrease inrestricted cash, net.............................................................................................. Decrease/(increase) in notes receivable
................................................................................................. Proceeds from renewable energy grants................................................................................................. Purchases ofemission allowances
......................................................................................................... Proceeds from sale ofemission allowances
........................................................................................... Investments in nuclear decommissiouing trust fund securities
.............................................................. Proceeds from sales ofnuclear decommissiouing trust fund securities
................................................. Proceeds from sale ofassets, net............................................................................................................ Proceeds from sale ofequity method investment.
.................................................................................. Equity investment in unconsolidated affiliate
........................................................................................ Other
...................................................................................................................................................... Net Cash Used by Investing Activities
................................................................................................. Cash Flows from Financing Activities Payment ofdividends to preferred stockholders
.................................................................................... Net receipt /(payments) to settle acquired derivatives that include financing elements
......................... Payment for treasury stock
..................................................................................................................... Instalhnent proceeds from sale ofnoncontrolling interest in subsidiary
................................................ Proceeds from issuance ofcommon stock
............................................................................................. Proceeds from issuance oflong-term debt
............................................................................................. Proceeds from issuance oftenn loan for funded letter ofcredit facility
................................................ Increase inrestricted cash supporting funded letter ofcredit facility
.................................................... Payment ofdeferred debt issuance costs................................................................................................ Payments for short and long-tenn debt
.................................................................................................. Net Cash Provided By/(Used by) Financing Activities
....................................................................... Effect ofexchange rate changes on cash and cash equivalents
.............................................................. Net Increase in Cash and Cash Equivalents
....................................................................................... Cash and Cash Equivalents at Beginuing ofPeriod
........................................................................... Cash and Cash Equivalents at End ofPeriod
..................................................................................... $

$ 476 (19) 838

54 40 32

4 30

2 25 (114) 255

2 34 38 138 91 (51) (261)

47 (48)

10 1,623 (1,006)

(706) (4) 39 102 (71) 37 (341) 307

43 (23) (1,623) (9) 137 (180)

50

2 1,484 1,300 (1,300) (75) (758) 651

(4) 647 2,304 2 251 $ 941 (41) 818

61 36 44 !53 26 17 (225) 689 (128) (4) (31) 26 127

88 (83) 26 (176) (282)

48 (24) 2,106

(427) (734)

14 (22) (78) 40 (305) 279 6 284

(6) (5) (954)

(33) (79) (500)

50

2 892 (31) (644) (343) I 810 1494 $ 2304



### 12

### Appendix Table A-1: Fourth Quarter 2010 Regional Adjusted EBITDA Reconciliation The following table summarizes the calculation ofadjusted EBIIDA and provides a reconciliation to net income/Qoss)

Reliant South (m millions) Ener& Texas Northeast Centml 

### w ... International Thermal Corporate Total
Net**lncome/~asl** 289 125! !60!**~** 5 9 

### !!! Q4Zl**~** Plus:

Net (Gain)/Loss Attributable to NonControlling Interest Income Tax 2 4 6 Interest Expense (20) 16 10 2 2 142 154 Amortization ofFinance Costs 7 7 Amortization ofDebt (Discount)/Premium) 2 2 Depreciation Expense 26 126 30 18 3 4 11 218 ARO Accretion Expense 2 Amortization ofPowet Contracts 60 (1) (5) 4 58 Amortization ofFuel Contracts (9) 4 (5) Amortization ofEmissionAllowances 12 12 EBITDA 367 27 (14) 10 10 13 5 21 439

Dynegy /CottonwoodAcquisition and Integration Costs (3) (3) Impairment ofa Passive Portfolio

Inve.tment 5 5 Less: MtM forward position accrua.J.s 192 (182) (26) (18) (5) 12 (27) Add: Prior period MtM reversals (58) 29 23 (4) (13) (23) Less: Hedge Ineffectiveness Adjusted EBITDA 117 237 35 24 15 13 5 (2) 444

13

### Appendix Table A-2: Fourth Quarter 2009 Regional Adjusted EBITDA Reconciliation The following table summarizes the calculation ofadjusted EBIIDA and provides a reconciliation to net income/Qoss).

lkllimt South (m millions) En"& Tex"' Northeast Conttal West International Thcrmal <:o:po:ate Tot>! Net Income/(Loss) 159 162 (12) 1 8 7 2 (294) 33
Plus:

Net (Gain)/Loss Attributable to NonContro.lline: Interest Income Tax 3 111 114 Interest Expense 5 (12) 14 10 2 149 169 Amortization ofFinance Costs 6 6 Amortization ofDebt (Discount)/Premium 2 2 4 Depreciation Expense 52 119 30 17 2 3 224 ARO Accretion Expense 1 1 2 Amortization ofPower Contracts 98 (8) (3) 87 Amortization of Fuel Contracts (25) 4 (21) Amortization ofEmissionAllowances 9 9 EBITDA 289 274 33 27 11 12 6 (25) 627

Early Tcrnllnatio.n ofCSRA 89 (4) 85 Exelon Defense Costs Reliant Integration Costs 13 13 Less: MtM forwud position accruals 67 (2) (32) 2 1 (1) 35 Add: Prior period MtM revttsals (207) 21 11 (173) Less: Hedge Ineffectiveness 29 (1) 28 Adjusted EBITDA 104 264 77 2S 11 12 8**~l** 489



### 14

### Appendix Table A-3: YTD 2010 RegionalAdjusted EBITDA Reconciliation The following table summarizes the calculation ofadjusted EBIIDA and provides a reconciliation to net income/(loss). Rdiant South (m millions) 

## Ens Texas Northeast Centtal 

### w.,, International Thetmal Corporate Total
Net Income/(Loss) 358 876 13 (7) 39 45 4 (852) 476 Plus:

Net (Gain)/Loss Attributable to NonControlling Interest Income Tax 17 260 277 Interest Expense 5 (67) 57 40 3 7 7 548 600 Amortization ofFinance**Cos~** 25 25 Amortization ofDebt (Discount)/Premium) 6 7 Depreciation Expense 117 491 122 67 II 12 18 838 ARO Accretion Expense 3 (3) 3 3 Amortization ofPower Contracts 219 (7) (21) 4 195 Amortization ofFuel Contracts (36) (36) Amortization ofEmissionAllowances 51 51 EBITDA 663 1,348 189 85 56 69 23 4 2,437

DynegyICottonwoodAcquisition and

Integration Costs Impairment ofa Passive Portfolio

Investment 5 5 Less: MtM forward position accruals (210) 139 (31) (43) (4) 12 (137) Add: Prior period MtM reversals (162) 32 95 (19) 2 (13) (65) Less: Hedge Ineffectiveness
Adiusted EBITDA 711**1~1** 315 109 60 69 25**~** =514



### 15Appendix Table A-4: YTD 2009 Regional Adjusted EBITDA Reconciliation The following table summarizes the calculation ofadjusted EBIIDA and provides a reconciliation to net income/(loss). Reliant South (m**millions~ En~**  Texas Northeast Cen<nl West International Thermal**Co~orate** Total Net Income**~s}** 966 672 291 !411 40 ISO 8 !1,1451 941 Plus:

Net (Gain)/Loss Attributable to Non-Controlling

lote=t Income Tax 171 9 548 728 Interest Expense 34 4 54 42 2 8 5 460 609 Amortization ofFinance Costs 30 31 Amortization ofDebt (Discount)/Premium 6 8 14 Depreciation Expense 137 472 118 67 8 10 6 818 ARO Accretion Expense 3 2 3 8 Amortization ofPowet Contracts 258 (57) (22) 179 Amortization of Fuel Contracts (49) 7 (42) Amortization ofEmissionAllowances 38 38 EBITDA 1,347 1,311 465 52 53 167 23 (93) 3,325

EarlyTermination ofCSRA 89 (4) 85 Exelon Defense Costs 31 31 Reliant Integration Costs 54 54 CurrencyLoss on MIBRAG Sale Proceeds 20 20 Settlement ofPre-Existing Contractwith Reliant

ilne<gy (31) (31) Gain on Sale ofEquityMethod Investments (128) (128) Less: MtM forward position acttuals 138 (43) 38 (29) 105 Add: Prior period MtM reversals (656) 26 39 3 (588) Less: Hedge Ineffectiveness 47 (2) 45 Adiusted EBITDA 642 1,329 468 81 53 59 25**~39~** 2,618

16

### Appendix Table A-5: Full Year 

### 2010 Adjusted Cash Flow from OperatingActivities Reconciliation The following table summarizes the calculation ofadjusted cash flow from operations and provides a reconciliation to cash from operations.

(m millioruo) Cash Flow from OperatingActivities Reclassifying ofreceipts (paymeots) ofFinaocing Elemeot ofAcquired Derivatives Adjusted Cash Flowfrom OperatingActivities Year ended December 31, 20101,623 137 1,760

EBITDA and adjusted EBITDA are non-GAAP financial measures. These measurements are not recognized in accordance with GAAP and should not be viewed as an alternative to GAAP measures ofperformance. The presentation ofadjusted EBITDA should not be construed as an inference that NRG's future results 

### will be unaffected by unusual or non-recurringitems. EBITDA represents net income before interest, taxes, depreciation and amortization. EBITDA is presented because NRG considers it an important supplemental measure ofits performance and believes debt-holders frequendy use EBITDA to analyze operating performance and debt service capacity. EBITDA has limitations as an analytical tool, and you should not consider itin isolation, or as a substitute for analysis ofour operating results as reported under GAAP. Some ofthese limitations are: • EBITDA does not reflect cash expenditures, or future requirements for capital expenditures, or contractual

commitments; • EBITDA does not reflect changes in, or cash requirements for, working capital needs; • EBITDA does notreflect the significant interest expense, or the cash requirements necessary to service interest

or principal payments, on debt or cash income tax payments; • Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized 

### will

often have to be replaced in the future, and EBITDA does not reflect any cash requirements for such replacements; and • Other companies in this industry may calculate EBITDA differendy than NRG does, limiting its usefulness as a

comparative measure. Because ofthese limitations, EBITDA should not be considered as a measure ofdiscretionary cash available to use to invest in the growth ofNRG's business. NRG compensates for these limitations by relying primarily on our GAAP results and using EBITDA and adjusted EBITDA only supplementally. See the statements ofcash flow included in the financial statements that are a part ofthis news release. Adjusted EBITDA is presented as a further supplemental measure ofoperating performance. Adjusted EBITDA represents EBITDA adjusted for gains orlosses on the sales ofequity method investments; currency loss; Exelon defense costs, and Reliant retail acquisition and integration costs; and factors which we do not consider indicative of future operating performance. The reader is encouraged to evaluate each adjustment and the reasons NRG considers it appropriate for supplemental analysis. As an analytical tool, adjusted EBITDA is subject to all ofthe limitations applicable to EBITDA. In addition, in evaluating adjusted EBITDA, the reader should be aware that in the future NRG may incur expenses similar to the adjustments in this news release. Adjusted cash flow from operating activities is a non-GAAP measure NRG provides to show cash from operations with the reclassification ofnet payments ofderivative contracts acquired in business combinations from financing to operating cash flow. The Company provides the reader with this alternative view ofoperating cash flow because 

### 17the cash settlement ofthese derivative contracts materially impact operating revenues and cost of sales, while GAAP requires NRG to treat them as ifthere was a financing activity associated with the contracts as ofthe acquisition dates. Free cash flow is cash flow from operations less capital expenditures, preferred stock dividends and repowering capital expenditures net ofproject funding and is used by NRG predominantly as a forecasting tool to estimate cash available for debt reduction and other capital allocation alternatives. The reader is encouraged to evaluate each of these adjustments and the reasons NRG considers them appropriate for supplemental analysis. Because we have mandatory debt service requirements (and other non-discretionary expenditures) investors should not rdy on adjusted cash flow from operating activities or free cash flow as a measure ofcash available for discretionary expenditures.

18