FOR IMMEDIATE RELEASE 

NEWS 

RELEASE 

NRG Energy, Inc. Reports Full-Year and Fourth Quarter 2010 Results 

Full-Year 2010 Financial Highlights 

• $2,514 million of adjusted EBITDA, second best result ever 

• $1,760 million of adjusted cash from operating activities 

• $476 million of net income and $1.84 per diluted common share 

• $180 million of common stock, or 8.5 million shares, repurchased 

Fomth Quartet 2010 Financial Highlights 

• $444 million of adjusted EBITDA 

• $200 million pre-payment of debt on the Term Loan B Facility 

• $4,252 million of liquidity, including $2,959 million in cash, at year end 

Announcing 2011 Capital Allocation Plan. and Reaffirming 2011 EBITDA Guidance 

• Launching 2011 Capital Allocation Plan at $180 million of share repurchases, in line with our goal 

to retum to shareholders 3% of market capitalization annually 

• Reaffirming 2011 EBITDA guidance range of $1,750 - $1,950 million 

PRINCETON, NJ; February 22, 2011-NRG Energy, 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 net income 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 of adjusted EBITDA in 2010 which marked its first full year of ownership as compared 

to $642 million in 2009 during which NRG owned Reliant Energy for eight months. Wholesale 

adjusted EBITDA was lower by $173 million in 2010 as compared to 2009, mostly due to lower 

hedge prices and increased fuel costs in the Northeast and Texas .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 of the Blythe solar project. 

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 net loss of 

$15 million, or ($0.07) per diluted common share, compared to net income of $33 million, or $0.11 

ptt diluted common share, for the fourth quarter 1ast year. Wholesale adjusted EBTIDA was 

$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 lower wholesale results were the acquisition of 

assets and a $13 million increase at Reliant Energy which benefited from an improvement in 

customer retention and customer payment patterns. 

"In 2010, NRG was able to post near record results while successfully repositioning the Company to 

take advantage of the enotmous opportunities which we 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, NRG President and Chief Executive Officer. "NRG's acquisition of 

Green Mountain Energy and South Trent Wmd, and the considerable success we have had in 

advancing our solar development pipeline will over time enhance our financial performance, reduce 

1 
our environmental exposure, and establish NRG as the premier new energy company for the 21" 

century." 

NRG recorded its safest year of operations in 2010 with an OSHA recordable rate of0.75. Overall 

generation production was 5% lower in the fourth quarter of 2010 compared to the fourth quarter 

of 2009. Highlighting this quarter's plant performance was the Huntley coal generating asset in West 

New York with an equivalent availability factor of 94%. 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 of 2009, 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 by increased 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 of Green Mountain Energy, acquired in the fourth quarter of 2010, and profit elimination on 

intercompany revenue 

~) Detruled adjustments by region are shown in Appendix 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 of Green Mountain Energy, acquired in the fourth quarter of 2010, 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. Excluding January through April2010 results, Reliant Energy's adjusted 

2 
EBTIDA 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 of 2009. Gross margin was unchanged versus the prior quarter as a decline in 

volumes, a result of lower 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 of 2009 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 of operations from Langford and the acquisition of South Trent in 

June. 

Adjusted EBTIDA for the foutth quarter of 2010 decreased by $27 million to $237 million 

compared to the foutth quarter of 2009. Energy margins were lower by $43 million due to a 

combination of compressed 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 of 2009. 

Northeast: Annual adjusted EBITDA decreased $153 million over the prior year to $315 million. 

Energy margins decreased $177 million as a result of a 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 on May 31, 2010, as well as lower merchant sales volumes 

due to the retirement of the Somerset facility in January 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 of changes in regulation in 2009. 

Adjusted EBITDA for the foutth quarter of 2010 was $35 million, a decrease of $42 million 

compared to the foutth quarter of 2009. 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 of RMR 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 $4 7 million, driven by the addition 

of a 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 of generation 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 of 2009. 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 of credit availability 

Revolver availability 

Total Liquidity 

Less: Funds deposited as collateral by hedge 

counterpatties 

Total Current Liquidity 

December 31, 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 of adjusted 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 of debt payments; $706 million of capital expenditures; and 

$180 million of stock repurchases. Meanwbile, letters of credit and revolver availability declined $195 

million principally due to the reduction in our Revolver capacity upon its refinancing in June 2010. 

On January 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 - of which approximately $945 million 

tendered as of January 25, 2011. On January 26, 2011, the Company announced that the required 

notice was given to redeem, for cash, all of the 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 of which 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 of intent 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 of Energy 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 of Ivanpah and we expect to own approximately 50% of the facility. 

California Valley Solar Ranch- NRG and SunPower Corp., on November 30, 2010, signed an 

agreement to build California Valley Solar Ranch (CVSR), one of the 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. On January 20, 2011, the U.S. Department of Energy announced the offer of 

a conditional commitment to Agua Caliente for a loan guarantee of up to $967 million. 

Repowering Projects 

Nuclear Innovation North America (NINA)- On November 29, 2010, NINA awarded the EPC 

contract for the development of STP 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 of certain 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 of a conditional loan 

guarantee from the Department of Energy and to the satisfaction of certain conditions, most 

notably, the arrangement of long term PPAs for a significant portion of the plant's capacity. It is 

anticipated that the pace of development 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 of 2011. As a result, NRG expects to make a final decision 

with respect to its continued funding of STP 3&4 during the third quarter of 2011. 

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 of the new units is anticipated to begin in the second half of 2011, 

with a summer 2013 commercial operation date. 

5 
Acquisitions 

NRG made a number of acquisitions in 2010 including the purchase ofNorthwind Phoenix (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 of the Cottonwood Generating Station, a 1,265 MW natural gas-fueled plant 

in the Entergy zone of east Texas, from Kelson Limited Partnership for $507 million on 

November 15, 2010. Adding Cottonwood in the South Central portfolio allows for future 

contracting opportunities and will enable NRG to provide additional balancing and ancillary 

services. 

• The acquisition of Green Mountain Energy Company, a leading retail provider of clean 

energy products and services, for $357 million in cash, net of cash acquired on November 5, 

2010. Green Mountain, which is run as a standalone retail business within NRG, offers its 

customers the choice of cleaner energy and carbon offset products. 

2011 Capital .Allocation Plan 

NRG's Board of Directors approved $180 million of share repurchases for 2011, in line with our goal 

to return 3% of our market capitalization to our shareholders on an annual basis so long as we have 

the requisite capacity projected to be available under our restricted payment basket. 

As part of the 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 of 2011, the Company 

expects to offer its first-lien lenders 50% of the "2010 Excess Cash Flow'' as defined in the 

Company's Credit Agreement less the $200 million pre-payment made in November of 2010. This 

amount is currently anticipated to result in an additional payment of approximately $214 million 

resulting in a total excess cash flow offer of approximately $414 million to the Term Loan B facility 

following our strong results in 2010. 

Oudook for 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 of the 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 of the cash grant to renewable projects that 

begin construction during 2011. Coupled with the fact that we did not reach the milestones for 

closing on Department of Energy loan guarantees for our large solar investments, approximately 

$267 million of solar expenditures will be spent in 2011 as opposed to the fourth quarter of 2010. 

This amount relates primarily to our Ivanpah and CVSR solar projects. 

6 
Table 5: 2011 Reconciliation of adjusted 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 

Cash flow 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 are rounded 

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 of the conference call and 

accompanying presentation materials by logging on to 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 of the 

country's largest and most diverse power generation portfolios. Headquartered in Princeton, NJ, the 

Company's power plants provide 25,000 megawatts of generation 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 of Section 27 A 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 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 be identified by the use of words 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 may vary materially. Factors that could cause actual results to differ 

materially from those contemplated above include, among others, general economic conditions, hazards 

customary in the power industry, weather conditions, successful partnering relationships, government loan 

guarantees competition in wholesale and retail power markets, the volatility of energy and fuel prices, failure 

of customers to perform under contracts, changes in the wholesale power markets, changes in government 

regulation of markets and of environmental emissions, the condition of capital markets generally, our ability 

to access capital markets, unanticipated outages at our generation 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 

7 
benefits and timing of development 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 of new 

information, future events or otherwise. The adjusted EBITDA guidance and free cash flows are estimates as 

of today's date, February 22, 2011 and are based on assumptions believed to be reasonable as of this date. 

NRG expressly disclaims any current intention to update such guidance. 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. 

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 

8 
NRG 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 of operations ....................................................................................................................................... . 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 

Development costs ...................................................................................................................................... ____ .)1' 19 14 55 48 

Total operating costs and expenses ....................................................................................................... . 1,664 1,827 7,564 6,793 

G-ain on sale of assets ............................................................................................................................... -----'= 2~ 

Operating Income ........................................................................................................................................... ___ _..!.;!6 152 314 1 308 2159 

Other Income/ (Expense) 

Equity in earnings of unconsolidated affiliates ...................................................................................... . 3 8 44 41 

G-ains on sales of equity method investDlents ........................................................................................ . 128 

Other income/ (expense), net .................................................................................................................... . (1) 4 33 (5) 

Refinancing expenses ................................................................................................................................ .. (20) (20) 

Interest expense ............................................................................................................................................ ___ J,!!!dl,l. (163) (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 

Income tax expense ..................................................................................................................................... ____ ....!! 6 114 2II 728 

Income From Continuing Operations .................................................................................................... .. (15) 33 476 941 

Income from discontinued operations, net of income taxes ................................................................ -----'= 

Net Income .................................................................................................................................................... .. (15) 33 476 941 

Less: Net loss attributable to nonconttolling interest ............................................................................ ----== 

Net Income attributable to NRG Energy, Inc ..................................................................................... . 

(1) (1) 

(15) 33 477 942 

Dividends f01: preferred shares ................................................................................................................. ____ ..J, 2 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 of common shares outstanding- basic ................................................ .. 248 242 252 246 

Income from continuing operations per weighted average common share- basic ..................... .. $ (0.07) $ 0.11 $ 1.86 $3.70 

Income from discontinued operations per weighted average common share- basic ................... --,...--= 

Net Income per Weighted Average Common Share- Basic ......................................................... . $ (0.07) $ 0.11 $ 1.86 $ 3.70 

Weighted average number of common shares outstanding- diluted ............................................. . 248 244 254 271 

Income from continuing operations per weighted average common share- diluted .................. .. $ (0.07) $ 0.11 $ 1.84 $ 3.44 

Income from discontinued operations per weighted average common share- diluted ................ ----= 

Net Income per Weighted Average 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 of income taxes ............................................................... .. $ (15) $ 33 477 942 

Income from discontinued operations, net of income taxes ............................................................. ----= 

Net Income ....................................................................................................................................................... _ _JIL__..!!.2). $ (15) $ 33 s 1II i 942 

9 
Current 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 of note receivable - affiliate and capital leases .................................................... . 

Inventory .................................................................................................................................................. . 

Derivative instruments valuation .......................................................................................................... . 

Cash collateral paid in support of energy 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 of accumulated amortization of $1,064 and $648 ........................................ . 

Nuclear decommissioning trust fund ................................................................................................... . 

Derivative instruments valuation .......................................................................................................... . 

Restricted cash supporting funded letter of credit facility .............................................................. ... 

Other non-current assets ....................................................................................................................... . 

Total other assets .................................................................................................................................... . 

Total Assets ............................................................................................................................................ . 

.&1 2fll"'wh~ Jl 

2010 2009 

(In millions) 

$ 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 

s 26 826 $23318 

10 
NRG 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 of energy 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 of credit ................................................................................................................. . 

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 of issuance 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 of issuance 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 .............................................................................. . 

Noncontrolling interest ................................................................................................................ . 

Total Stockholders' Equity ..................................................................................................... . 

Total Liabilities and Stockholders' Equity .......................................................................... . 

As of December ,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 

11 
Cash 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 of unconsolidated affiliates ......................................................... . 

Depreciation and amortization .............................................................................................................. . 

Provision for bad debts ......................................................................................................................... . 

Amortization of nuclear fuel... .............................................................................................................. . 

Amortization of financing costs and debt discount/premiums .............................................................. . 

Amort!za~on of intangibles ~d out-of-mar~et contracts ..................................................................... . 

Amortization of unearned eqwty compensation ................................................................................... . 

Loss on disposals and sales of assets .................................................................................................... . 

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 of equity method investments ......................................................................................... . 

Loss/(gain) on sale of emission 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 ...................................... . 

Cash provided!( used) by changes in other working capital, net of acquisition 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 of businesses, net of cash acquired .................................................................................... . 

Capital expenditures .............................................................................................................................. . 

(Increase)/decrease in restricted cash, net ............................................................................................. . 

Decrease/(increase) in notes receivable ................................................................................................ . 

Proceeds from renewable energy grants ................................................................................................ . 

Purchases of emission allowances ........................................................................................................ . 

Proceeds from sale of emission allowances .......................................................................................... . 

Investments in nuclear decommissiouing trust fund securities ............................................................. . 

Proceeds from sales of nuclear decommissiouing trust fund securities ................................................ . 

Proceeds from sale of assets, net ........................................................................................................... . 

Proceeds from sale of equity method investment. ................................................................................. . 

Equity investment in unconsolidated affiliate ....................................................................................... . 

Other ..................................................................................................................................................... . 

Net Cash Used by Investing Activities ................................................................................................ . 

Cash Flows from Financing Activities 

Payment of dividends to preferred stockholders ................................................................................... . 

Net receipt /(payments) to settle acquired derivatives that include financing elements ........................ . 

Payment for treasury stock .................................................................................................................... . 

Instalhnent proceeds from sale of noncontrolling interest in subsidiary ............................................... . 

Proceeds from issuance of common stock ............................................................................................ . 

Proceeds from issuance of long-term debt ............................................................................................ . 

Proceeds from issuance of tenn loan for funded letter of credit facility ............................................... . 

Increase in restricted cash supporting funded letter of credit facility ................................................... . 

Payment of deferred debt issuance costs ............................................................................................... . 

Payments for short and long-tenn debt ................................................................................................. . 

Net Cash Provided By/(Used by) Financing Activities ...................................................................... . 

Effect of exchange rate changes on cash and cash equivalents ............................................................. . 

Net Increase in Cash and Cash Equivalents ...................................................................................... . 

Cash and Cash Equivalents at Beginuing of Period .......................................................................... . 

Cash and Cash Equivalents at End of Period .................................................................................... . 

$ 

$ 

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 of adjusted 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 of Finance Costs 7 7 

Amortization of Debt (Discount)/Premium) 2 2 

Depreciation Expense 26 126 30 18 3 4 11 218 

ARO Accretion Expense 2 

Amortization of Powet Contracts 60 (1) (5) 4 58 

Amortization of Fuel Contracts (9) 4 (5) 

Amortization of Emission Allowances 12 12 

EBITDA 367 27 (14) 10 10 13 5 21 439 

Dynegy /Cottonwood Acquisition and 

Integration Costs (3) (3) 

Impairment of a 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 of adjusted 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 of Finance Costs 6 6 

Amortization of Debt (Discount) /Premium 2 2 4 

Depreciation Expense 52 119 30 17 2 3 224 

ARO Accretion Expense 1 1 2 

Amortization of Power Contracts 98 (8) (3) 87 

Amortization of Fuel Contracts (25) 4 (21) 

Amortization of Emission Allowances 9 9 

EBITDA 289 274 33 27 11 12 6 (25) 627 

Early T crnllnatio.n of CSRA 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 Regional Adjusted EBITDA Reconciliation 

The following table summarizes the calculation of adjusted 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 of Finance Cos~ 25 25 

Amortization of Debt (Discount) /Premium) 6 7 

Depreciation Expense 117 491 122 67 II 12 18 838 

ARO Accretion Expense 3 (3) 3 3 

Amortization of Power Contracts 219 (7) (21) 4 195 

Amortization of Fuel Contracts (36) (36) 

Amortization of Emission Allowances 51 51 

EBITDA 663 1,348 189 85 56 69 23 4 2,437 

Dynegy I Cottonwood Acquisition and 

Integration Costs 

Impairment of a 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 

15 
Appendix Table A-4: YTD 2009 Regional Adjusted EBITDA Reconciliation 

The following table summarizes the calculation of adjusted 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 of Finance Costs 30 31 

Amortization of Debt (Discount) /Premium 6 8 14 

Depreciation Expense 137 472 118 67 8 10 6 818 

ARO Accretion Expense 3 2 3 8 

Amortization of Powet Contracts 258 (57) (22) 179 

Amortization of Fuel Contracts (49) 7 (42) 

Amortization of Emission Allowances 38 38 

EBITDA 1,347 1,311 465 52 53 167 23 (93) 3,325 

Early Termination of CSRA 89 (4) 85 

Exelon Defense Costs 31 31 

Reliant Integration Costs 54 54 

Currency Loss on MIBRAG Sale Proceeds 20 20 

Settlement of Pre-Existing Contract with Reliant 

ilne<gy (31) (31) 

Gain on Sale of Equity Method 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 Operating Activities Reconciliation 

The following table summarizes the calculation of adjusted cash flow from operations and provides a reconciliation 

to cash from operations. 

(m millioruo) 

Cash Flow from Operating Activities 

Reclassifying of receipts (paymeots) ofFinaocing Elemeot of Acquired 

Derivatives 

Adjusted Cash Flow from Operating Activities 

Year ended 

December 31, 

2010 

1,623 

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 of performance. The 

presentation of adjusted EBITDA should not be construed as an inference that NRG's future results will be 

unaffected by unusual or non-recurring items. 

EBITDA represents net income before interest, taxes, depreciation and amortization. EBITDA is presented because 

NRG considers it an important supplemental measure of its 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 it in isolation, or as a substitute for analysis of our operating results as reported under 

GAAP. Some of these 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 not reflect 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 of these limitations, EBITDA should not be considered as a measure of discretionary cash available to use to 

invest in the growth of NRG'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 of cash flow included in 

the financial statements that are a part of this news release. 

Adjusted EBITDA is presented as a further supplemental measure of operating performance. Adjusted EBITDA 

represents EBITDA adjusted for gains or losses on the sales of equity 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 of the 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 of net payments of derivative contracts acquired in business combinations from financing 

to operating cash flow. The Company provides the reader with this alternative view of operating cash flow because 

17 
the cash settlement of these derivative contracts materially impact operating revenues and cost of sales, while 

GAAP requires NRG to treat them as if there was a financing activity associated with the contracts as of the 

acquisition dates. 

Free cash flow is cash flow from operations less capital expenditures, preferred stock dividends and repowering 

capital expenditures net of project 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 of cash available for discretionary 

expenditures. 

18