----

----

| x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|---|-----------------------------------------------------------------------------------------|

|  ̈ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|--------|------------------------------------------------------------------------------------------|

|  Entity                             | CommissionFile Number | State ofIncorporation | I.R.S. EmployerIdentification No. |
|------------------------------------------|-----------------------|-----------------------|-----------------------------------|
| Dynegy Inc.                              | 001-33443             | Delaware              | 20-5653152                        |
| Dynegy Holdings Inc.                     | 000-29311             | Delaware              | 94-3248415                        |
|                                     |                  |                  |                              |
|                                     |                  |                  |                              |
| 1000 Louisiana, Suite 5800               |                  |                  |                              |
| Houston, Texas                           |                  |                  | 77002                             |
| (Address of principal executive offices) |                  |                  | (Zip Code)                        |

| Dynegy Inc.          |   |   | Yes x No  ̈ |
|----------------------|--------|--------|-----------------|
| Dynegy Holdings Inc. |   |   | Yes x No  ̈ |

| Dynegy Inc.          |   |   | Yes  ̈ No  ̈ |
|----------------------|--------|--------|----------------------|
| Dynegy Holdings Inc. |   |   | Yes  ̈ No  ̈ |

|                 | Large accelerated filer | Accelerated filer | Non-accelerated filer(Do not check if a smaller reporting company) | Smaller reporting company |
|----------------------|-------------------------|-------------------|--------------------------------------------------------------------|---------------------------|
| Dynegy Inc.          | x                       |  ̈            |  ̈                                                             |  ̈                    |
| Dynegy Holdings Inc. |  ̈                  |  ̈            | x                                                                  |  ̈                    |

| Dynegy Inc.          |   |   | Yes  ̈ No x |
|----------------------|--------|--------|-----------------|
| Dynegy Holdings Inc. |   |   | Yes  ̈ No x |

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TABLE OF CONTENTS

|                                                                                                                                                                        | Page   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| PART I. FINANCIAL INFORMATION                                                                                                                                               |   |
|                                                                                                                                                                        |   |
| Item 1.     FINANCIAL STATEMENTS—DYNEGY INC. AND DYNEGY HOLDINGS INC.:                                                                       |   |
|                                                                                                                                                                        |   |
| Condensed Consolidated Balance Sheets—Dynegy Inc.:                                                                                                                    |   |
| March 31, 2010 and December 31, 2009                                                                                                                                        | 4      |
| Condensed Consolidated Statements of Operations—Dynegy Inc.:                                                                                                          |   |
| For the three months ended March 31, 2010 and 2009                                                                                                                          | 5      |
| Condensed Consolidated Statements of Cash Flows—Dynegy Inc.:                                                                                                          |   |
| For the three months ended March 31, 2010 and 2009                                                                                                                          | 6      |
| Condensed Consolidated Statements of Comprehensive Income (Loss)—Dynegy Inc.:                                                                                    |   |
| For the three months ended March 31, 2010 and 2009                                                                                                                          | 7      |
| Condensed Consolidated Balance Sheets—Dynegy Holdings Inc.:                                                                                                           |   |
| March 31, 2010 and December 31, 2009                                                                                                                                        | 8      |
| Condensed Consolidated Statements of Operations—Dynegy Holdings Inc.:                                                                                                 |   |
| For the three months ended March 31, 2010 and 2009                                                                                                                          | 9      |
| Condensed Consolidated Statements of Cash Flows—Dynegy Holdings Inc.:                                                                                                 |   |
| For the three months ended March 31, 2010 and 2009                                                                                                                          | 10     |
| Condensed Consolidated Statements of Comprehensive Income (Loss)—Dynegy Holdings Inc.:                                                                                |   |
| For the three months ended March 31, 2010 and 2009                                                                                                                          | 11     |
| Notes to Condensed Consolidated Financial Statements                                                                                                                        | 12     |
|                                                                                                                                                                        |   |
| Item 2.     MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS—DYNEGY INC. AND DYNEGY HOLDINGS INC. | 29     |
| Item 3.     QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK—DYNEGY INC. AND DYNEGY HOLDINGS INC.                                  | 42     |
| Item 4.     CONTROLS AND PROCEDURES—DYNEGY INC. AND DYNEGY HOLDINGS INC.                                                                     | 44     |
|                                                                                                                                                                        |   |
| PART II. OTHER INFORMATION                                                                                                                                                  |   |
|                                                                                                                                                                        |   |
| Item 1.     LEGAL PROCEEDINGS—DYNEGY INC. AND DYNEGY HOLDINGS INC.                                                                      | 45     |
| Item 1A.  RISK FACTORS—DYNEGY INC. AND DYNEGY HOLDINGS INC.                                                                                                 | 45     |
| Item 2.     UNREGISTERED SALES OF SECURITIES AND USE OF PROCEEDS—DYNEGY INC.                                                                 | 45     |
| Item 6.     EXHIBITS—DYNEGY INC. AND DYNEGY HOLDINGS INC.                                                                                    | 46     |

----

Table of Contents

| BART        | Best Available Retrofit Technology                                       |
|-------------|--------------------------------------------------------------------------|
| BTA         | Best technology available                                                |
| CAA         | Clean Air Act                                                            |
| CAISO       | The California Independent System Operator                               |
| CCR         | Coal Combustion Residuals                                           |
| CFTC        | Commodity Futures Trading Commission                                     |
| CO2         | Carbon Dioxide                                                           |
| CUSA        | Chevron U.S.A. Inc., a wholly owned subsidiary of Chevron Corporation    |
| DHI         | Dynegy Holdings Inc., Dynegy’s primary financing subsidiary        |
| DMSLP       | Dynegy Midstream Services L.P.                                           |
| EBITDA      | Earnings before interest, taxes, depreciation and amortization           |
| EPA         | Environmental Protection Agency                                          |
| FERC        | Federal Energy Regulatory Commission                                     |
| FTR         | Financial Transmission Rights                                            |
| GAAP        | Generally Accepted Accounting Principles of the United States of America |
| GEN         | Our power generation business                                            |
| GEN-MW      | Our power generation business - Midwest segment                          |
| GEN-NE      | Our power generation business - Northeast segment                        |
| GEN-WE      | Our power generation business - West segment                             |
| GHG         | Greenhouse Gas                                                           |
| ICC         | Illinois Commerce Commission                                             |
| IMA         | In-market asset availability                                             |
| ISO         | Independent System Operator                                              |
| ISO-NE      | Independent System Operator New England                                  |
| MISO        | Midwest Independent Transmission Operator, Inc.                          |
| MMBtu       | One million British thermal units                                        |
| MW          | Megawatts                                                                |
| MWh         | Megawatt hour                                                            |
| NOx         | Nitrogen oxide                                                           |
| NPDES       | National Pollutant Discharge Elimination System                          |
| NRG         | NRG Energy, Inc.                                                         |
| NYISO       | New York Independent System Operators                                    |
| NYSDEC      | New York State Department of Environmental Conservation                  |
| OAL    | Office of Administrative Law                                   |
| PJM         | PJM Interconnection, LLC                                                 |
| PPEA        | Plum Point Energy Associates, LLC                                        |
| RCRA   | Resource Conservation and Recovery Act                         |
| RMR         | Reliability Must Run                                                     |
| RSG         | Revenue Sufficiency Guarantee                                            |
| SCEA        | Sandy Creek Energy Associates, LP                                        |
| SC Services | Sandy Creek Services, LLC                                                |
| SEC         | U.S. Securities and Exchange Commission                                  |
| SFAS        | Statement of Financial Accounting Standards                              |
| SO2         | Sulfur dioxide                                                           |
| SPDES       | State Pollutant Discharge Elimination System                             |
| VaR         | Value at Risk                                                            |
| VIE         | Variable Interest Entity                                                 |

----

Table of Contents

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | March 31,2010 |    |   | December 31,2009 |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|---------|--------|------------------|--------|
| ASSETS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |          |    |   |             |   |
| Current Assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |          |    |   |             |   |
| Cash and cash equivalents                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | $             | 688     |   |             | $      | 471 |   |
| Restricted cash and investments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |          | 112     |   |             |   | 78 |   |
| Short-term investments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |          | 114     |   |             |   | 9 |   |
| Accounts receivable, net of allowance for doubtful accounts of $36 and $22, respectively                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |          | 164     |   |             |   | 212 |   |
| Accounts receivable, affiliates                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |          | 2       |   |             |   | 2 |   |
| Inventory                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |          | 138     |   |             |   | 141 |   |
| Assets from risk-management activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |          | 1,746   |   |             |   | 713 |   |
| Deferred income taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |          | 7       |   |             |   | 6 |   |
| Broker margin account                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |          | — |   |             |   | 286 |   |
| Prepayments and other current assets                                                                                                                |   |          | 126     |   |             |   | 120 |   |
| Total Current Assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |          | 3,097   |   |             |   | 2,038 |   |
| Property, Plant and Equipment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |          | 8,548   |   |             |   | 9,071 |   |
| Accumulated depreciation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |          | (2,026  | )      |             |   | (1,954 | ) |
| Property, Plant and Equipment, Net                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |          | 6,522   |   |             |   | 7,117 |   |
| Other Assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |          |    |   |             |   |   |   |
| Restricted cash and investments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |          | 859     |   |             |   | 877 |   |
| Assets from risk-management activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |          | 430     |   |             |   | 163 |   |
| Intangible assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |          | 177     |   |             |   | 380 |   |
| Other long-term assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |          | 372     |   |             |   | 378 |   |
| Total Assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | $             | 11,457  |   |             | $      | 10,953 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |          |    |   |             |   |   |   |
| LIABILITIES AND STOCKHOLDERS’ EQUITY                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |          |    |   |             |   |   |   |
| Current Liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |          |    |   |             |   |   |   |
| Accounts payable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | $             | 124     |   |             | $      | 181 |   |
| Accounts payable, affiliates                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |          | 4       |   |             |   | — |   |
| Accrued interest                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |          | 111     |   |             |   | 36 |   |
| Accrued liabilities and other current liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |          | 148     |   |             |   | 127 |   |
| Liabilities from risk-management activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |          | 1,532   |   |             |   | 696 |   |
| Notes payable and current portion of long-term debt                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |          | 63      |   |             |   | 807 |   |
| Total Current Liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |          | 1,982   |   |             |   | 1,847 |   |
| Long-term debt                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |          | 4,575   |   |             |   | 4,575 |   |
| Long-term debt, affiliates                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |          | 200     |   |             |   | 200 |   |
| Long-Term Debt                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |          | 4,775   |   |             |   | 4,775 |   |
| Other Liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |          |    |   |             |   |   |   |
| Liabilities from risk-management activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |          | 374     |   |             |   | 213 |   |
| Deferred income taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |          | 878     |   |             |   | 780 |   |
| Other long-term liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |          | 346     |   |             |   | 359 |   |
| Total Liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |          | 8,355   |   |             |   | 7,974 |   |
| Commitments and Contingencies (Note 11)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |          |    |   |             |   |   |   |
| Stockholders’ Equity                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |          |    |   |             |   |   |   |
| Class A Common Stock, $0.01 par value, 2,100,000,000 shares authorized at March 31, 2010 and December 31, 2009; 604,496,381 and 603,577,577 shares issued and outstanding at March 31, 2010 and December 31, 2009, respectively                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |          | 6       |   |             |   | 6 |   |
| Additional paid-in capital                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |          | 6,058   |   |             |   | 6,056 |   |
| Subscriptions receivable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |          | (2      | )      |             |   | (2 | ) |
| Accumulated other comprehensive loss, net of tax                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |          | (71     | )      |             |   | (150 | ) |
| Accumulated deficit                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |          | (2,818  | )      |             |   | (2,937 | ) |
| Treasury stock, at cost, 2,890,833 and 2,788,383 shares at March 31, 2010 and December 31, 2009, respectively                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |          | (71     | )      |             |   | (71 | ) |
| Total Dynegy Inc. Stockholders’ Equity                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |          | 3,102   |   |             |   | 2,902 |   |
| Noncontrolling interests                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |          | — |   |             |   | 77 |   |
| Total Stockholders’ Equity                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |          | 3,102   |   |             |   | 2,979 |   |
| Total Liabilities and Stockholders’ Equity                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | $             | 11,457  |   |             | $      | 10,953 |   |

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Table of Contents

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | Three Months EndedMarch 31, |    |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------|---------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | 2010                        |    |   | 2009 |   |
| Revenues                                                                                                                                                       |   | $                           | 858     |   |   | $ | 904 |   |
| Cost of sales                                                                                                                                                  |   |                        | (308    | ) |   |   | (378 | ) |
| Operating and maintenance expense, exclusive of depreciation and amortization shown separately below                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                        | (113    | ) |   |   | (115 | ) |
| Depreciation and amortization expense                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                        | (75     | ) |   |   | (86 | ) |
| Goodwill impairments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                        | — |   |   |   | (433 | ) |
| General and administrative expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                        | (31     | ) |   |   | (38 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                        |    |   |   |   |   |   |
| Operating income (loss)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                        | 331     |   |   |   | (146 | ) |
| Earnings (losses) from unconsolidated investments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                        | (34     | ) |   |   | 8 |   |
| Interest expense                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                        | (89     | ) |   |   | (98 | ) |
| Other income and expense, net                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                        | 1       |   |   |   | 4 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                        |    |   |   |   |   |   |
| Income (loss) from continuing operations before income taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                        | 209     |   |   |   | (232 | ) |
| Income tax expense (Note 13)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                        | (65     | ) |   |   | (91 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                        |    |   |   |   |   |   |
| Income (loss) from continuing operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                        | 144     |   |   |   | (323 | ) |
| Income (loss) from discontinued operations, net of tax benefit of zero and $6, respectively (Note 2)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                        | 1       |   |   |   | (14 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                        |    |   |   |   |   |   |
| Net income (loss)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                        | 145     |   |   |   | (337 | ) |
| Less: Net loss attributable to the noncontrolling interests                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                        | — |   |   |   | (2 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                        |    |   |   |   |   |   |
| Net income (loss) attributable to Dynegy Inc.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | $                           | 145     |   |   | $ | (335 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                        |    |   |   |   |   |   |
| Earnings (Loss) Per Share (Note 10):                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                        |    |   |   |   |   |   |
| Basic earnings (loss) per share:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                        |    |   |   |   |   |   |
| Earnings (loss) from continuing operations attributable to Dynegy Inc.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | $                           | 0.24    |   |   | $ | (0.38 | ) |
| Loss from discontinued operations attributable to Dynegy Inc.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                        | — |   |   |   | (0.02 | ) |
| Basic earnings (loss) per share attributable to Dynegy Inc.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | $                           | 0.24    |   |   | $ | (0.40 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                        |    |   |   |   |   |   |
| Diluted earnings (loss) per share:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                        |    |   |   |   |   |   |
| Earnings (loss) from continuing operations attributable to Dynegy Inc.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | $                           | 0.24    |   |   | $ | (0.38 | ) |
| Loss from discontinued operations attributable to Dynegy Inc.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                        | — |   |   |   | (0.02 | ) |
| Diluted earnings (loss) per share attributable to Dynegy Inc.                                                                                                  |   | $                           | 0.24    |   |   | $ | (0.40 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                        |    |   |   |   |   |   |
| Basic shares outstanding                                                                                                                                       |   |                        | 599     |   |   |   | 841 |   |
| Diluted shares outstanding                                                                                                                                     |   |                        | 604     |   |   |   | 843 |   |

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Table of Contents

|                                                                                   |   | Three Months EndedMarch 31, |    |
|----------------------------------------------------------------------------------------|--------|-----------------------------|---------|
|                                                                                   |   | 2010                        |    |   | 2009 |   |
| CASH FLOWS FROM OPERATING ACTIVITIES:                                                  |   |                        |    |   |   |   |
| Net income (loss)                                                                      |   | $                           | 145     |   |   | $ | (337 | ) |
| Adjustments to reconcile net loss to net cash flows from operating activities:         |   |                        |    |   |   |   |   |   |
| Depreciation and amortization                                                          |   |                        | 79      |   |   |   | 94 |   |
| Goodwill impairments                                                                   |   |                        | — |   |   |   | 433 |   |
| Impairment and other charges, exclusive of goodwill impairments shown separately above |   |                        | — |   |   |   | 5 |   |
| (Earnings) losses from unconsolidated investments, net of cash distributions           |   |                        | 34      |   |   |   | (8 | ) |
| Risk-management activities                                                             |   |                        | (253    | ) |   |   | (168 | ) |
| Deferred income taxes                                                                  |   |                        | 62      |   |   |   | 79 |   |
| Other                                                                                  |   |                        | 12      |   |   |   | 16 |   |
| Changes in working capital:                                                            |   |                        |    |   |   |   |   |   |
| Accounts receivable                                                                    |   |                        | 47      |   |   |   | 56 |   |
| Inventory                                                                              |   |                        | 1       |   |   |   | (6 | ) |
| Broker margin account                                                                  |   |                        | 310     |   |   |   | (36 | ) |
| Prepayments and other assets                                                           |   |                        | (12     | ) |   |   | (2 | ) |
| Accounts payable and accrued liabilities                                               |   |                        | 31      |   |   |   | 42 |   |
| Changes in non-current assets                                                          |   |                        | 2       |   |   |   | (7 | ) |
| Changes in non-current liabilities                                                     |   |                        | — |   |   |   | 4 |   |
| Net cash provided by operating activities                                              |   |                        | 458     |   |   |   | 165 |   |
|                                                                                   |   |                        |    |   |   |   |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES:                                                  |   |                        |    |   |   |   |   |   |
| Capital expenditures                                                                   |   |                        | (101    | ) |   |   | (138 | ) |
| Unconsolidated investments                                                             |   |                        | — |   |   |   | 1 |   |
| Distribution from short-term investments                                               |   |                        | 9       |   |   |   | 8 |   |
| Purchases of marketable securities                                                     |   |                        | (114    | ) |   |   | — |   |
| Increase in restricted cash                                                            |   |                        | (35     | ) |   |   | (32 | ) |
| Net cash used in investing activities                                                  |   |                        | (241    | ) |   |   | (161 | ) |
|                                                                                   |   |                        |    |   |   |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES:                                                  |   |                        |    |   |   |   |   |   |
| Proceeds from long-term borrowings, net                                                |   |                        | — |   |   |   | 25 |   |
| Net cash provided by financing activities                                              |   |                        | — |   |   |   | 25 |   |
|                                                                                   |   |                        |    |   |   |   |   |   |
| Net increase in cash and cash equivalents                                              |   |                        | 217     |   |   |   | 29 |   |
| Cash and cash equivalents, beginning of period                                         |   |                        | 471     |   |   |   | 693 |   |
| Cash and cash equivalents, end of period                                               |   | $                           | 688     |   |   | $ | 722 |   |
|                                                                                   |   |                        |    |   |   |   |   |   |
| Other non-cash investing activity:                                                     |   |                        |    |   |   |   |   |   |
| Non-cash capital expenditures                                                          |   | $                           | 9       |   |   | $ | 23 |   |
| Non-cash unconsolidated investment                                                     |   | $                           | 15      |   |   | $ | — |   |

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Table of Contents

|                                                                                                          |   | Three Months EndedMarch 31, |    |
|---------------------------------------------------------------------------------------------------------------|--------|-----------------------------|---------|
|                                                                                                          |   | 2010                        |    |   | 2009 |   |
|                                                                                                          |   |                        |    |   |   |   |
| Net income (loss)                                                                                             |   | $                           | 145     |   |   | $ | (337 | ) |
| Cash flow hedging activities, net:                                                                            |   |                        |    |   |   |   |   |   |
| Unrealized mark-to-market gains arising during period, net                                                    |   |                        | — |   |   |   | 34 |   |
| Deferred losses on cash flow hedges, net                                                                      |   |                        | — |   |   |   | (3 | ) |
|                                                                                                          |   |                        |    |   |   |   |   |   |
| Changes in cash flow hedging activities, net (net of tax expense of zero and $9, respectively)                |   |                        | — |   |   |   | 31 |   |
| Amortization of unrecognized prior service cost and actuarial gain (loss) (net of tax expense of zero and $2) |   |                        | 2       |   |   |   | (1 | ) |
| Unconsolidated investments other comprehensive income, net (net of tax expense of zero and $1)                |   |                        | — |   |   |   | 1 |   |
|                                                                                                          |   |                        |    |   |   |   |   |   |
| Other comprehensive income, net of tax                                                                        |   |                        | 2       |   |   |   | 31 |   |
|                                                                                                          |   |                        |    |   |   |   |   |   |
| Comprehensive income (loss)                                                                                   |   |                        | 147     |   |   |   | (306 | ) |
| Less: Comprehensive income attributable to the noncontrolling interests                                       |   |                        | — |   |   |   | 26 |   |
|                                                                                                          |   |                        |    |   |   |   |   |   |
| Comprehensive income (loss) attributable to Dynegy Inc.                                                       |   | $                           | 147     |   |   | $ | (332 | ) |

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Table of Contents

|                                                                                         |   | March 31,2010 |    |   | December 31,2009 |   |
|----------------------------------------------------------------------------------------------|--------|---------------|---------|--------|------------------|--------|
| ASSETS                                                                                       |   |          |    |   |             |   |
| Current Assets                                                                               |   |          |    |   |             |   |
| Cash and cash equivalents                                                                    |   | $             | 635     |   |             | $      | 419 |   |
| Restricted cash and investments                                                              |   |          | 112     |   |             |   | 78 |   |
| Short-term investments                                                                       |   |          | 114     |   |             |   | 8 |   |
| Accounts receivable, net of allowance for doubtful accounts of $17 and $20, respectively     |   |          | 166     |   |             |   | 214 |   |
| Accounts receivable, affiliates                                                              |   |          | 2       |   |             |   | 2 |   |
| Inventory                                                                                    |   |          | 138     |   |             |   | 141 |   |
| Assets from risk-management activities                                                       |   |          | 1,746   |   |             |   | 713 |   |
| Deferred income taxes                                                                        |   |          | 6       |   |             |   | 7 |   |
| Broker margin account                                                                        |   |          | — |   |             |   | 286 |   |
| Prepayments and other current assets                                                         |   |          | 126     |   |             |   | 120 |   |
| Total Current Assets                                                                         |   |          | 3,045   |   |             |   | 1,988 |   |
| Property, Plant and Equipment                                                                |   |          | 8,548   |   |             |   | 9,071 |   |
| Accumulated depreciation                                                                     |   |          | (2,026  | )      |             |   | (1,954 | ) |
| Property, Plant and Equipment, Net                                                           |   |          | 6,522   |   |             |   | 7,117 |   |
| Other Assets                                                                                 |   |          |    |   |             |   |   |   |
| Restricted cash and investments                                                              |   |          | 859     |   |             |   | 877 |   |
| Assets from risk-management activities                                                       |   |          | 430     |   |             |   | 163 |   |
| Intangible assets                                                                            |   |          | 177     |   |             |   | 380 |   |
| Other long-term assets                                                                       |   |          | 372     |   |             |   | 378 |   |
| Total Assets                                                                                 |   | $             | 11,405  |   |             | $      | 10,903 |   |
|                                                                                         |   |          |    |   |             |   |   |   |
| LIABILITIES AND STOCKHOLDERS’ EQUITY                                                   |   |          |    |   |             |   |   |   |
| Current Liabilities                                                                          |   |          |    |   |             |   |   |   |
| Accounts payable                                                                             |   | $             | 124     |   |             | $      | 181 |   |
| Accounts payable, affiliates                                                                 |   |          | 4       |   |             |   | — |   |
| Accrued interest                                                                             |   |          | 111     |   |             |   | 36 |   |
| Accrued liabilities and other current liabilities                                            |   |          | 148     |   |             |   | 128 |   |
| Liabilities from risk-management activities                                                  |   |          | 1,532   |   |             |   | 696 |   |
| Notes payable and current portion of long-term debt                                          |   |          | 63      |   |             |   | 807 |   |
| Total Current Liabilities                                                                    |   |          | 1,982   |   |             |   | 1,848 |   |
| Long-term debt                                                                               |   |          | 4,575   |   |             |   | 4,575 |   |
| Long-term debt, affiliates                                                                   |   |          | 200     |   |             |   | 200 |   |
| Long-Term Debt                                                                               |   |          | 4,775   |   |             |   | 4,775 |   |
| Other Liabilities                                                                            |   |          |    |   |             |   |   |   |
| Liabilities from risk-management activities                                                  |   |          | 374     |   |             |   | 213 |   |
| Deferred income taxes                                                                        |   |          | 812     |   |             |   | 704 |   |
| Other long-term liabilities                                                                  |   |          | 346     |   |             |   | 360 |   |
| Total Liabilities                                                                            |   |          | 8,289   |   |             |   | 7,900 |   |
| Commitments and Contingencies (Note 11)                                                      |   |          |    |   |             |   |   |   |
| Stockholders’ Equity                                                                   |   |          |    |   |             |   |   |   |
| Capital Stock, $1 par value, 1,000 shares authorized at March 31, 2010 and December 31, 2009 |   |          | — |   |             |   | — |   |
| Additional paid-in capital                                                                   |   |          | 5,135   |   |             |   | 5,135 |   |
| Affiliate receivable                                                                         |   |          | (779    | )      |             |   | (777 | ) |
| Accumulated other comprehensive loss, net of tax                                             |   |          | (71     | )      |             |   | (150 | ) |
| Accumulated deficit                                                                          |   |          | (1,169  | )      |             |   | (1,282 | ) |
| Total Dynegy Holdings Inc. Stockholder’s Equity                                        |   |          | 3,116   |   |             |   | 2,926 |   |
| Noncontrolling interests                                                                     |   |          | — |   |             |   | 77 |   |
| Total Stockholders’ Equity                                                             |   |          | 3,116   |   |             |   | 3,003 |   |
| Total Liabilities and Stockholders’ Equity                                             |   | $             | 11,405  |   |             | $      | 10,903 |   |

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|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | Three Months EndedMarch 31, |    |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------|---------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | 2010                        |    |   | 2009 |   |
| Revenues                                                                                                       |   | $                           | 858     |   |   | $ | 904 |   |
| Cost of sales                                                                                                  |   |                        | (308    | ) |   |   | (378 | ) |
| Operating and maintenance expense, exclusive of depreciation and amortization shown separately below                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                        | (113    | ) |   |   | (117 | ) |
| Depreciation and amortization expense                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                        | (75     | ) |   |   | (86 | ) |
| Goodwill impairments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                        | — |   |   |   | (433 | ) |
| General and administrative expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                        | (31     | ) |   |   | (38 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                        |    |   |   |   |   |   |
| Operating income (loss)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                        | 331     |   |   |   | (148 | ) |
| Earnings (losses) from unconsolidated investments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                        | (34     | ) |   |   | 7 |   |
| Interest expense                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                        | (89     | ) |   |   | (98 | ) |
| Other income and expense, net                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                        | 1       |   |   |   | 4 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                        |    |   |   |   |   |   |
| Income (loss) from continuing operations before income taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                        | 209     |   |   |   | (235 | ) |
| Income tax expense (Note 13)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                        | (72     | ) |   |   | (88 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                        |    |   |   |   |   |   |
| Income (loss) from continuing operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                        | 137     |   |   |   | (323 | ) |
| Income (loss) from discontinued operations, net of tax benefit of zero and $6, respectively (Note 2)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                        | 1       |   |   |   | (14 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                        |    |   |   |   |   |   |
| Net income (loss)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                        | 138     |   |   |   | (337 | ) |
| Less: Net loss attributable to the noncontrolling interests                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                        | — |   |   |   | (2 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                        |    |   |   |   |   |   |
| Net income (loss) attributable to Dynegy Holdings Inc.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | $                           | 138     |   |   | $ | (335 | ) |

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Table of Contents

|                                                                                   |   | Three Months EndedMarch 31, |    |
|----------------------------------------------------------------------------------------|--------|-----------------------------|---------|
|                                                                                   |   | 2010                        |    |   | 2009 |   |
| CASH FLOWS FROM OPERATING ACTIVITIES:                                                  |   |                        |    |   |   |   |
| Net income (loss)                                                                      |   | $                           | 138     |   |   | $ | (337 | ) |
| Adjustments to reconcile net loss to net cash flows from operating activities:         |   |                        |    |   |   |   |   |   |
| Depreciation and amortization                                                          |   |                        | 79      |   |   |   | 94 |   |
| Goodwill impairments                                                                   |   |                        | — |   |   |   | 433 |   |
| Impairment and other charges, exclusive of goodwill impairments shown separately above |   |                        | — |   |   |   | 5 |   |
| (Earnings) losses from unconsolidated investments, net of cash distributions           |   |                        | 34      |   |   |   | (7 | ) |
| Risk-management activities                                                             |   |                        | (253    | ) |   |   | (168 | ) |
| Deferred income taxes                                                                  |   |                        | 73      |   |   |   | 80 |   |
| Other                                                                                  |   |                        | 11      |   |   |   | 16 |   |
| Changes in working capital:                                                            |   |                        |    |   |   |   |   |   |
| Accounts receivable                                                                    |   |                        | 47      |   |   |   | 56 |   |
| Inventory                                                                              |   |                        | 1       |   |   |   | (6 | ) |
| Broker margin account                                                                  |   |                        | 310     |   |   |   | (36 | ) |
| Prepayments and other assets                                                           |   |                        | (12     | ) |   |   | (2 | ) |
| Accounts payable and accrued liabilities                                               |   |                        | 31      |   |   |   | 58 |   |
| Changes in non-current assets                                                          |   |                        | 2       |   |   |   | (7 | ) |
| Changes in non-current liabilities                                                     |   |                        | — |   |   |   | 4 |   |
| Net cash provided by operating activities                                              |   |                        | 461     |   |   |   | 183 |   |
|                                                                                   |   |                        |    |   |   |   |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES:                                                  |   |                        |    |   |   |   |   |   |
| Capital expenditures                                                                   |   |                        | (101    | ) |   |   | (138 | ) |
| Distribution from short-term investments                                               |   |                        | 8       |   |   |   | 8 |   |
| Purchases of marketable securities                                                     |   |                        | (114    | ) |   |   | — |   |
| Increase in restricted cash                                                            |   |                        | (35     | ) |   |   | (32 | ) |
| Affiliate transactions                                                                 |   |                        | (3      | ) |   |   | (2 | ) |
| Net cash used in investing activities                                                  |   |                        | (245    | ) |   |   | (164 | ) |
|                                                                                   |   |                        |    |   |   |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES:                                                  |   |                        |    |   |   |   |   |   |
| Proceeds from long-term borrowings, net                                                |   |                        | — |   |   |   | 25 |   |
| Dividend to affiliate                                                                  |   |                        | — |   |   |   | (175 | ) |
| Net cash used in financing activities                                                  |   |                        | — |   |   |   | (150 | ) |
|                                                                                   |   |                        |    |   |   |   |   |   |
| Net increase (decrease) in cash and cash equivalents                                   |   |                        | 216     |   |   |   | (131 | ) |
| Cash and cash equivalents, beginning of period                                         |   |                        | 419     |   |   |   | 670 |   |
| Cash and cash equivalents, end of period                                               |   | $                           | 635     |   |   | $ | 539 |   |
|                                                                                   |   |                        |    |   |   |   |   |   |
| Other non-cash investing activity:                                                     |   |                        |    |   |   |   |   |   |
| Non-cash capital expenditures                                                          |   | $                           | 9       |   |   | $ | 23 |   |
| Non-cash unconsolidated investment                                                     |   | $                           | 15      |   |   | $ | — |   |

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Table of Contents

|                                                                                                          |   | Three Months EndedMarch 31, |    |
|---------------------------------------------------------------------------------------------------------------|--------|-----------------------------|---------|
|                                                                                                          |   | 2010                        |    |   | 2009 |   |
|                                                                                                          |   |                        |    |   |   |   |
| Net income (loss)                                                                                             |   | $                           | 138     |   |   | $ | (337 | ) |
| Cash flow hedging activities, net:                                                                            |   |                        |    |   |   |   |   |   |
| Unrealized mark-to-market gains arising during period, net                                                    |   |                        | — |   |   |   | 34 |   |
| Deferred losses on cash flow hedges, net                                                                      |   |                        | — |   |   |   | (3 | ) |
|                                                                                                          |   |                        |    |   |   |   |   |   |
| Changes in cash flow hedging activities, net (net of tax expense of zero and $9, respectively)                |   |                        | — |   |   |   | 31 |   |
| Amortization of unrecognized prior service cost and actuarial gain (loss) (net of tax expense of zero and $2) |   |                        | 2       |   |   |   | (1 | ) |
| Unconsolidated investments other comprehensive income, net (net of tax expense of zero and $1)                |   |                        | — |   |   |   | 1 |   |
|                                                                                                          |   |                        |    |   |   |   |   |   |
| Other comprehensive income, net of tax                                                                        |   |                        | 2       |   |   |   | 31 |   |
|                                                                                                          |   |                        |    |   |   |   |   |   |
| Comprehensive income (loss)                                                                                   |   |                        | 140     |   |   |   | (306 | ) |
| Less: Comprehensive income attributable to the noncontrolling interests                                       |   |                        | — |   |   |   | 26 |   |
|                                                                                                          |   |                        |    |   |   |   |   |   |
| Comprehensive income (loss) attributable to Dynegy Holdings Inc.                                              |   | $                           | 140     |   |   | $ | (332 | ) |

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Note 1—Accounting Policies

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Table of Contents

| Current assets                       |   | $      | 6    |   |
|--------------------------------------|--------|--------|------|--------|
| Property, plant and equipment, net   |   |   | 611  |   |
| Intangible asset                     |   |   | 190  |   |
| Other non-current asset              |   |   | 20   |   |
| Total assets                         |   |   | 827  |   |
| Current portion of long-term debt    |   |   | 744  |   |
| Current liabilities                  |   |   | 74   |   |
| Noncontrolling interest              |   |   | 77   |   |
| Accumulated other comprehensive loss |   |   | (157 | )      |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | GEN-MW        |    |   | GEN-WE |   |    | Total  |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|---------|--------|--------|--------|---------|--------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | (in millions) |    |
| Three Months Ended March 31, 2010                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |          |    |   |   |   |    |   |   |
| Revenues                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | $             | — |   |   | $      | — |   |   | $ | — |   |
| Income from operations before taxes                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |          | — |   |   |   | 1       |   |   |   | 1 |   |
| Income from operations after taxes                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |          | — |   |   |   | 1       |   |   |   | 1 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |          |    |   |   |   |    |   |   |   |   |   |
| Three Months Ended March 31, 2009                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |          |    |   |   |   |    |   |   |   |   |   |
| Revenues                                                                                                     |   | $             | 1       |   |   | $      | 1       |   |   | $ | 2 |   |
| Loss from operations before taxes (1)                                                                        |   |          | (6      | )      |   |   | (14     | )      |   |   | (20 | ) |
| Loss from operations after taxes                                                                             |   |          | (4      | )      |   |   | (10     | )      |   |   | (14 | ) |

| (1)   | Includes $5 million of impairment charges related to our Bluegrass power generation facility in the GEN-MW segment. |
|-----------------|---------------------------------------------------------------------------------------------------------------------|

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|                                                                             |   | Three Months EndedMarch 31, 2009 |
|----------------------------------------------------------------------------------|--------|----------------------------------|
|                                                                             |   | Dynegy Inc                       |   |   | Dynegy Holdings Inc |   |
|                                                                             |   | (in millions)                    |   |
| Loss from continuing operations                                                  |   | $                                | (321 | ) |   | $ | (321 | ) |
| Loss from discontinued operations, net of tax benefit of $6 and $6, respectively |   |                             | (14 | ) |   |   | (14 | ) |
|                                                                             |   |                             |   |   |   |   |   |   |
| Net loss                                                                         |   | $                                | (335 | ) |   | $ | (335 | ) |

|                                                               |   | ControllingInterest |    |   | Noncontrolling Interest |   |    | Total  |   |
|--------------------------------------------------------------------|--------|---------------------|---------|--------|-------------------------|--------|---------|--------|--------|
|                                                               |   | (in millions)       |    |
| December 31, 2008                                                  |   | $                   | 4,515   |   |                    | $      | (30     | )      |   | $ | 4,485 |   |
| Net loss                                                      |   |                | (335    | )      |                    |   | (2      | )      |   |   | (337 | ) |
| Other comprehensive loss, net of tax:                              |   |                |    |   |                    |   |    |   |   |   |   |   |
| Unrealized mark-to-market gains arising during period              |   |                | 4       |   |                    |   | 30      |   |   |   | 34 |   |
| Reclassification of mark-to-market (gains) losses to earnings      |   |                | (1      | )      |                    |   | 1       |   |   |   | — |   |
| Deferred losses on cash flow hedges                                |   |                | — |   |                    |   | (3      | )      |   |   | (3 | ) |
| Amortization of unrecognized prior service cost and actuarial loss |   |                | (1      | )      |                    |   | — |   |   |   | (1 | ) |
| Unconsolidated investments other comprehensive loss                |   |                | 1       |   |                    |   | — |   |   |   | 1 |   |
|                                                               |   |                |    |   |                    |   |    |   |   |   |   |   |
| Total other comprehensive income, net of tax                       |   |                | 3       |   |                    |   | 28      |   |   |   | 31 |   |
| Other equity activity:                                             |   |                |    |   |                    |   |    |   |   |   |   |   |
| Options and restricted stock granted                               |   |                | 2       |   |                    |   | — |   |   |   | 2 |   |
| 401(k) plan and profit sharing stock                               |   |                | 1       |   |                    |   | — |   |   |   | 1 |   |
| Board of directors stock compensation                              |   |                | (2      | )      |                    |   | — |   |   |   | (2 | ) |
|                                                               |   |                |    |   |                    |   |    |   |   |   |   |   |
| March 31, 2009                                                     |   | $                   | 4,184   |   |                    | $      | (4      | )      |   | $ | 4,180 |   |

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Table of Contents

|                                                               |   | ControllingInterest |    |   | Noncontrolling Interest |   |    | Total  |   |
|--------------------------------------------------------------------|--------|---------------------|---------|--------|-------------------------|--------|---------|--------|--------|
|                                                               |   | (in millions)       |    |
| December 31, 2008                                                  |   | $                   | 4,613   |   |                    | $      | (30     | )      |   | $ | 4,583 |   |
| Net loss                                                      |   |                | (335    | )      |                    |   | (2      | )      |   |   | (337 | ) |
| Other comprehensive loss, net of tax:                              |   |                |    |   |                    |   |    |   |   |   |   |   |
| Unrealized mark-to-market gains arising during period              |   |                | 4       |   |                    |   | 30      |   |   |   | 34 |   |
| Reclassification of mark-to-market (gains) losses to earnings      |   |                | (1      | )      |                    |   | 1       |   |   |   | — |   |
| Deferred losses on cash flow hedges                                |   |                | — |   |                    |   | (3      | )      |   |   | (3 | ) |
| Amortization of unrecognized prior service cost and actuarial loss |   |                | (1      | )      |                    |   | — |   |   |   | (1 | ) |
| Unconsolidated investments other comprehensive loss                |   |                | 1       |   |                    |   | — |   |   |   | 1 |   |
|                                                               |   |                |    |   |                    |   |    |   |   |   |   |   |
| Total other comprehensive income, net of tax                       |   |                | 3       |   |                    |   | 28      |   |   |   | 31 |   |
| Other equity activity:                                             |   |                |    |   |                    |   |    |   |   |   |   |   |
| Dividend to Dynegy                                                 |   |                | (175    | )      |                    |   | — |   |   |   | (175 | ) |
| Contribution from Dynegy                                           |   |                | 36      |   |                    |   | — |   |   |   | 36 |   |
| Affiliate activity                                                 |   |                | (2      | )      |                    |   | — |   |   |   | (2 | ) |
|                                                               |   |                |    |   |                    |   |    |   |   |   |   |   |
| March 31, 2009                                                     |   | $                   | 4,140   |   |                    | $      | (4      | )      |   | $ | 4,136 |   |

|                                         |   | Cost Basis    |   |   | Gross Unrealized Gains |   |    | Gross Unrealized Losses |   |   | Fair Value |   |
|----------------------------------------------|--------|---------------|--------|--------|------------------------|--------|---------|-------------------------|--------|--------|------------|--------|
|                                         |   | (in millions) |   |
| Available for Sale investments:              |   |          |   |   |                   |   |    |                    |   |   |       |   |
| Commercial Paper                             |   | $             | 14     |   |                   | $      | — |                    |   | $      | —    |   |   | $ | 14 |   |
| Certificates of Deposit                      |   |          | 29     |   |                   |   | — |                    |   |   | —    |   |   |   | 29 |   |
| Corporate Securities                         |   |          | 11     |   |                   |   | — |                    |   |   | —    |   |   |   | 11 |   |
| U.S. Treasury and Government Securities |   |          | 60     |   |                   |   | — |                    |   |   | —    |   |   |   | 60 |   |
|                                         |   |          |   |   |                   |   |    |                    |   |   |       |   |   |   |   |   |
| Total                                        |   | $             | 114    |   |                   | $      | — |                    |   | $      | —    |   |   | $ | 114 |   |

----

Table of Contents

| Contract Type            |   | Hedge Designation |   | Quantity      |   | Unit of Measure |     | Net Fair Value |   |
|--------------------------|--------|-------------------|--------|---------------|--------|-----------------|----------|----------------|--------|
|                     |   |              |   | (in millions) |   |            |     | (in millions)  |   |
| Commodity contracts:     |   |              |   |          |   |            |     |           |   |
| Electric energy (1)      |   | Not designated    |   |          | (94    | )               | MW       |           | $      | 495 |   |
| Natural gas (1)          |   | Not designated    |   |          | 248    |            | MMBtu    |           | $      | (237 | ) |
| Heat rate derivatives    |   | Not designated    |   |          | (5)/39 |            | MW/MMBtu |           | $      | 20 |   |
| Other (2)                |   | Not designated    |   |          | 1      |            | Misc.    |           | $      | (8 | ) |
|                     |   |              |   |          |   |            |     |           |   |   |   |
| Interest rate contracts: |   |              |   |          |   |            |     |           |   |   |   |
| Interest rate swaps      |   | Fair value hedge  |   |          | (25    | )               | Dollars  |           | $      | 2 |   |
| Interest rate swaps      |   | Not designated    |   |          | 231    |            | Dollars  |           | $      | (16 | ) |
| Interest rate swaps      |   | Not designated    |   |          | (206   | )               | Dollars  |           | $      | 14 |   |

| (1)   | Mainly comprised of swaps, options and physical forwards. |
|-----------------|-----------------------------------------------------------|

| (2)   | Comprised of emissions, coal, crude oil, fuel oil options, swaps and physical forwards. |
|-----------------|-----------------------------------------------------------------------------------------|

| Contract Type                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | Balance Sheet Location                      |   | March 31,2010 |    |   | December 31,2009 |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------|--------|---------------|---------|--------|------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                        |   | (in millions) |    |
| Derivatives designated as hedging instruments:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                                        |   |          |    |   |
| Derivative Assets:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                                        |   |          |    |   |             |   |
| Interest rate contracts                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | Assets from risk management activities      |   | $             | 2       |   |             | $      | 2 |   |
| Derivative Liabilities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                        |   |          |    |   |             |   |   |   |
| Interest rate contracts                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | Liabilities from risk management activities |   |          | — |   |             |   | — |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                        |   |          |    |   |             |   |   |   |
| Total derivatives designated as hedging instruments                                                                                                       |   |                                        | 2      |          |    |   | 2                |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                        |   |          |    |   |             |   |   |   |
| Derivatives not designated as hedging instruments:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                                        |   |          |    |   |             |   |
| Derivative Assets:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                                        |   |          |    |   |             |   |   |   |
| Commodity contracts                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | Assets from risk management activities      |   |          | 2,160   |   |             |   | 861 |   |
| Interest rate contracts                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | Assets from risk management activities      |   |          | 14      |   |             |   | 13 |   |
| Derivative Liabilities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                        |   |          |    |   |             |   |   |   |
| Commodity contracts                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | Liabilities from risk management activities |   |          | (1,890  | )      |             |   | (844 | ) |
| Interest rate contracts                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | Liabilities from risk management activities |   |          | (16     | )      |             |   | (65 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                        |   |          |    |   |             |   |   |   |
| Total derivatives not designated as hedging instruments                                                                                                   |   |                                        | 268    |          |    |   | (35              | )      |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                        |   |          |    |   |             |   |   |   |
| Total derivatives, net                                                                                                                                    |   | $                                           | 270    |          |    | $      | (33              | )      |

----

Table of Contents

|                                              |   |                                                        |   | Amount of Gain (Loss) Recognized in Income on Derivatives for theThree Months Ended March 31, |    |
|---------------------------------------------------|--------|-------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------|---------|
| Derivatives Not Designated as Hedging Instruments |   | Location of Gain (Loss) Recognized in Income on Derivatives |   | 2010                                                                                          |    |   | 2009 |   |
|                                              |   |                                                        |   | (in millions)                                                                                 |    |
| Commodity contracts                               |   | Revenues                                                    |   | $                                                                                             | 325     |   |   | $ | 266 |   |
| Interest rate contracts                           |   | Interest expense                                            |   |                                                                                          | — |   |   |   | (1 | ) |

|                                                   |   | Fair Value as of March 31, 2010 |    |
|--------------------------------------------------------|--------|---------------------------------|---------|
|                                                   |   | Level 1                         |    |   | Level 2 |   |   | Level 3 |   |   | Total |   |
|                                                   |   | (in millions)                   |    |
| Assets:                                                |   |                            |    |   |   |   |   |   |   |   |   |   |
| Assets from commodity risk management activities:      |   |                            |    |   |   |   |   |   |   |   |   |   |
| Electricity derivatives                                |   | $                               | — |   |   | $ | 1,142 |   |   | $ | 108 |   |   | $ | 1,250 |   |
| Natural gas derivatives                                |   |                            | — |   |   |   | 864 |   |   |   | 5 |   |   |   | 869 |   |
| Heat rate derivatives                                  |   |                            | — |   |   |   | — |   |   |   | 22 |   |   |   | 22 |   |
| Other derivatives                                      |   |                            | — |   |   |   | 19 |   |   |   | — |   |   |   | 19 |   |
|                                                   |   |                            |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total assets from commodity risk                       |   |                            | — |   |   |   | 2,025 |   |   |   | 135 |   |   |   | 2,160 |   |
| Assets from interest rate swaps                        |   |                            | — |   |   |   | 16 |   |   |   | — |   |   |   | 16 |   |
| Marketable securities:                                 |   |                            |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial paper                                       |   |                            | — |   |   |   | 14 |   |   |   | — |   |   |   | 14 |   |
| Certificates of deposit                                |   |                            | — |   |   |   | 29 |   |   |   | — |   |   |   | 29 |   |
| Corporate securities                                   |   |                            | — |   |   |   | 11 |   |   |   | — |   |   |   | 11 |   |
| U.S. Treasury and government securities           |   |                            | — |   |   |   | 60 |   |   |   | — |   |   |   | 60 |   |
|                                                   |   |                            |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total marketable securities                            |   |                            | — |   |   |   | 114 |   |   |   | — |   |   |   | 114 |   |
|                                                   |   |                            |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total—Dynegy and DHI                             |   | $                               | — |   |   | $ | 2,155 |   |   | $ | 135 |   |   | $ | 2,290 |   |
|                                                   |   |                            |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities:                                           |   |                            |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities from commodity risk management activities: |   |                            |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Electricity derivatives                                |   | $                               | — |   |   | $ | (717 | ) |   | $ | (38 | ) |   | $ | (755 | ) |
| Natural gas derivatives                                |   |                            | — |   |   |   | (1,106 | ) |   |   | — |   |   |   | (1,106 | ) |
| Heat rate derivatives                                  |   |                            | — |   |   |   | — |   |   |   | (2 | ) |   |   | (2 | ) |
| Other derivatives                                      |   |                            | — |   |   |   | (27 | ) |   |   | — |   |   |   | (27 | ) |
|                                                   |   |                            |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total liabilities from commodity risk                  |   |                            | — |   |   |   | (1,850 | ) |   |   | (40 | ) |   |   | (1,890 | ) |
| Liabilities from interest rate swaps                   |   |                            | — |   |   |   | (16 | ) |   |   | — |   |   |   | (16 | ) |
|                                                   |   |                            |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total—Dynegy and DHI                             |   | $                               | — |   |   | $ | (1,866 | ) |   | $ | (40 | ) |   | $ | (1,906 | ) |

----

Table of Contents

|                                                   |   | Fair Value as of December 31, 2009 |    |
|--------------------------------------------------------|--------|------------------------------------|---------|
|                                                   |   | Level 1                            |    |   | Level 2 |   |   | Level 3 |   |   | Total |   |
|                                                   |   | (in millions)                      |    |
| Assets:                                                |   |                               |    |   |   |   |   |   |   |   |   |   |
| Assets from commodity risk management activities:      |   |                               |    |   |   |   |   |   |   |   |   |   |
| Electricity derivatives                                |   | $                                  | — |   |   | $ | 442 |   |   | $ | 57 |   |   | $ | 499 |   |
| Natural gas derivatives                                |   |                               | — |   |   |   | 302 |   |   |   | 5 |   |   |   | 307 |   |
| Heat rate derivatives                                  |   |                               | — |   |   |   | — |   |   |   | 19 |   |   |   | 19 |   |
| Other derivatives                                      |   |                               | — |   |   |   | 36 |   |   |   | — |   |   |   | 36 |   |
|                                                   |   |                               |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total assets from commodity risk                       |   |                               | — |   |   |   | 780 |   |   |   | 81 |   |   |   | 861 |   |
| Assets from interest rate swaps                        |   |                               | — |   |   |   | 15 |   |   |   | — |   |   |   | 15 |   |
| Other—DHI (1)                                    |   |                               | — |   |   |   | 8 |   |   |   | — |   |   |   | 8 |   |
|                                                   |   |                               |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total—DHI                                        |   |                               | — |   |   |   | 803 |   |   |   | 81 |   |   |   | 884 |   |
| Other—Dynegy (1)                                 |   |                               | — |   |   |   | 1 |   |   |   | — |   |   |   | 1 |   |
|                                                   |   |                               |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total—Dynegy and DHI                             |   | $                                  | — |   |   | $ | 804 |   |   | $ | 81 |   |   | $ | 885 |   |
|                                                   |   |                               |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities:                                           |   |                               |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities from commodity risk management activities: |   |                               |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Electricity derivatives                                |   | $                                  | — |   |   | $ | (361 | ) |   | $ | (51 | ) |   | $ | (412 | ) |
| Natural gas derivatives                                |   |                               | — |   |   |   | (401 | ) |   |   | — |   |   |   | (401 | ) |
| Heat rate derivatives                                  |   |                               | — |   |   |   | — |   |   |   | (2 | ) |   |   | (2 | ) |
| Other derivatives                                      |   |                               | — |   |   |   | (29 | ) |   |   | — |   |   |   | (29 | ) |
|                                                   |   |                               |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total liabilities from commodity risk                  |   |                               | — |   |   |   | (791 | ) |   |   | (53 | ) |   |   | (844 | ) |
| Liabilities from interest rate swaps                   |   |                               | — |   |   |   | (15 | ) |   |   | (50 | ) |   |   | (65 | ) |
|                                                   |   |                               |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total—Dynegy and DHI                             |   | $                                  | — |   |   | $ | (806 | ) |   | $ | (103 | ) |   | $ | (909 | ) |

| (1)   | Other represents short-term investments. |
|-----------------|------------------------------------------|

|                                                                     |   | Electricity Derivatives |    |   | Natural Gas Derivatives |   |    | Heat Rate Derivatives |   |   | Interest RateSwaps |   |   | Total  |    |
|--------------------------------------------------------------------------|--------|-------------------------|---------|--------|-------------------------|--------|---------|-----------------------|--------|--------|--------------------|--------|--------|--------|---------|
|                                                                     |   | (in millions)           |    |
| Balance at December 31, 2009                                             |   | $                       | 6       |   |                    | $      | 5       |                  |   | $      | 17                 |   |   | $      | (50     | ) |   | $ | (22 | ) |
| Deconsolidation of Plum Point                                            |   |                    | — |   |                    |   | — |                  |   |   | —            |   |   |   | 50      |   |   |   |  50 |   |
| Realized and unrealized gains, net                                       |   |                    | 69      |   |                    |   | — |                  |   |   | 18                 |   |   |   | — |   |   |   | 87 |   |
| Purchases, issuances and settlements                                     |   |                    | (5      | )      |                    |   | — |                  |   |   | (15                | )      |   |   | — |   |   |   | (20 | ) |
|                                                                     |   |                    |    |   |                    |   |    |                  |   |   |               |   |   |   |    |   |   |   |   |   |
| Balance at March 31, 2010                                                |   | $                       | 70      |   |                    | $      | 5       |                  |   | $      | 20                 |   |   | $      | — |   |   | $ | 95 |   |
|                                                                     |   |                    |    |   |                    |   |    |                  |   |   |               |   |   |   |    |   |   |   |   |   |
| Unrealized gains relating to instruments still held as of March 31, 2010 |   | $                       | 64      |   |                    | $      | — |                  |   | $      | 14                 |   |   | $      | — |   |   | $ | 78 |   |

|                                                                           |   | Electricity Derivatives |    |   | Natural Gas Derivatives |   |    | Heat Rate Derivatives |   |   | Interest RateSwaps |   |   | Total  |    |
|--------------------------------------------------------------------------------|--------|-------------------------|---------|--------|-------------------------|--------|---------|-----------------------|--------|--------|--------------------|--------|--------|--------|---------|
|                                                                           |   | (in millions)           |    |
| Balance at December 31, 2008                                                   |   | $                       | 7       |   |                    | $      | 7       |                  |   | $      | 46                 |   |   | $      | — |   |   | $ | 60 |   |
| Realized and unrealized gains, net                                             |   |                    | — |   |                    |   | (1      | )                     |   |   | (4                 | )      |   |   | — |   |   |   | (5 | ) |
| Purchases, issuances and settlements                                           |   |                    | (6      | )      |                    |   | — |                  |   |   | (16                | )      |   |   | — |   |   |   | (22 | ) |
|                                                                           |   |                    |    |   |                    |   |    |                  |   |   |               |   |   |   |    |   |   |   |   |   |
| Balance at March 31, 2009                                                      |   | $                       | 1       |   |                    | $      | 6       |                  |   | $      | 26                 |   |   | $      | — |   |   | $ | 33 |   |
|                                                                           |   |                    |    |   |                    |   |    |                  |   |   |               |   |   |   |    |   |   |   |   |   |
| Unrealized losses relating to instruments still held as of March 31, 2009 |   | $                       | (5      | )      |                    | $      | (1      | )                     |   | $      | (4                 | )      |   | $      | — |   |   | $ | (10 | ) |

----

Table of Contents

|                 |   | Fair Value Measurements as of March 31, 2009 |    |   |    |   |
|----------------------|--------|----------------------------------------------|---------|--------|---------|--------|
|                 |   | Level 1                                      |    |   | Level 2 |   |   | Level 3 |   |   | Total |   |   | Total Losses |   |
|                 |   | (in millions)                                |    |
| Assets:              |   |                                         |    |   |    |   |   |   |   |   |   |   |   |   |   |
| Goodwill             |   | $                                            | — |   |    | $      | — |   |   | $ | — |   |   | $ | — |   |   | $ | (433 | ) |
| Assets held and used |   |                                         | — |   |    |   | — |   |   |   | 58 |   |   |   | 58 |   |   |   | (5 | ) |
|                 |   |                                         |    |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                |   | $                                            | — |   |    | $      | — |   |   | $ | 58 |   |   | $ | 58 |   |   | $ | (438 | ) |

|                                                                         |   | March 31, 2010 |    |   | December 31, 2009 |   |
|------------------------------------------------------------------------------|--------|----------------|---------|--------|-------------------|--------|
|                                                                         |   | CarryingAmount |    |   | FairValue         |   |   | CarryingAmount |   |   | FairValue |   |
|                                                                         |   | (in millions)  |    |
| Interest rate derivatives designated as fair value accounting hedges (1)     |   | $              | 2       |   |              | $      | 2 |   |   | $ | 2 |   |   | $ | 2 |   |
| Interest rate derivatives not designated as accounting hedges (1)            |   |           | (2      | )      |              |   | (2 | ) |   |   | (52 | ) |   |   | (52 | ) |
| Commodity-based derivative contracts not designated as accounting hedges (1) |   |           | 270     |   |              |   | 270 |   |   |   | 17 |   |   |   | 17 |   |
| Term Loan B, due 2013                                                        |   |           | 68      |   |              |   | 67 |   |   |   | 68 |   |   |   | 66 |   |
| Term Facility, floating rate due 2013                                        |   |           | 850     |   |              |   | 838 |   |   |   | 850 |   |   |   | 814 |   |
| Senior Notes and Debentures:                                                 |   |           |    |   |              |   |   |   |   |   |   |   |   |   |   |   |
| 6.875 percent due 2011                                                       |   |           | 81      |   |              |   | 80 |   |   |   | 81 |   |   |   | 82 |   |
| 8.75 percent due 2012                                                        |   |           | 89      |   |              |   | 89 |   |   |   | 89 |   |   |   | 92 |   |
| 7.5 percent due 2015 (2)                                                     |   |           | 765     |   |              |   | 639 |   |   |   | 764 |   |   |   | 737 |   |
| 8.375 percent due 2016 (3)                                                   |   |           | 1,043   |   |              |   | 858 |   |   |   | 1,043 |   |   |   | 998 |   |
| 7.125 percent due 2018                                                       |   |           | 172     |   |              |   | 122 |   |   |   | 172 |   |   |   | 140 |   |
| 7.75 percent due 2019                                                        |   |           | 1,100   |   |              |   | 822 |   |   |   | 1,100 |   |   |   | 950 |   |
| 7.625 percent due 2026                                                       |   |           | 171     |   |              |   | 109 |   |   |   | 171 |   |   |   | 119 |   |
| Subordinated Debentures payable to affiliates, 8.316 percent, due 2027       |   |           | 200     |   |              |   | 115 |   |   |   | 200 |   |   |   | 107 |   |
| PPEA Credit Agreement Facility, floating rate, due 2010 (4)                  |   |           | — |   |              |   | — |   |   |   | 644 |   |   |   | 334 |   |
| PPEA Tax Exempt Bonds, floating rate, due 2036 (4)                           |   |           | — |   |              |   | — |   |   |   | 100 |   |   |   | 100 |   |
| Sithe Senior Notes, 9.0 percent due 2013 (5)                                 |   |           | 299     |   |              |   | 296 |   |   |   | 300 |   |   |   | 294 |   |
| Other (6)                                                                    |   |           | 114     |   |              |   | 114 |   |   |   | 9 |   |   |   | 9 |   |

| (1)   | Included in both current and non-current assets and liabilities on the unaudited condensed consolidated balance sheets. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------|

| (2)   | Includes unamortized discounts of $20 million and $21 million at March 31, 2010 and December 31, 2009, respectively. |
|-----------------|----------------------------------------------------------------------------------------------------------------------|

| (3)   | Includes unamortized discounts of $4 million at March 31, 2010 and December 31, 2009. |
|-----------------|---------------------------------------------------------------------------------------|

| (4)   | As discussed in Note 1—Accounting Policies—Accounting Policies Adopted—Variable Interest Entities, effective January 1, 2010, we deconsolidated our investment in PPEA Holding, and as a result, PPEA’s debt is no longer included in our unaudited condensed consolidated balance sheets. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5)   | Includes unamortized premiums of $12 million and $13 million at March 31, 2010 and December 31, 2009, respectively. |
|-----------------|---------------------------------------------------------------------------------------------------------------------|

| (6)   | Other represents short-term investments. |
|-----------------|------------------------------------------|

----

Table of Contents

|                                                                                          |   | March 31,2010 |    |   | December 31,2009 |   |
|-----------------------------------------------------------------------------------------------|--------|---------------|---------|--------|------------------|--------|
|                                                                                          |   | (in millions) |    |
| Cash flow hedging activities, net                                                             |   | $             | 3       |   |             | $      | (24 | ) |
| Unrecognized prior service cost and actuarial loss, net                                       |   |          | (57     | )      |             |   | (59 | ) |
| Accumulated other comprehensive loss—unconsolidated investments, net (1)                |   |          | (17     | )      |             |   | — |   |
|                                                                                          |   |          |    |   |             |   |   |   |
| Accumulated other comprehensive loss, net of tax                                              |   |          | (71     | )      |             |   | (83 | ) |
| Less: Accumulated other comprehensive income attributable to the noncontrolling interests (1) |   |          | — |   |             |   | 67 |   |
|                                                                                          |   |          |    |   |             |   |   |   |
| Accumulated other comprehensive loss attributable to Dynegy and DHI, net of tax               |   | $             | (71     | )      |             | $      | (150 | ) |

| __________  |   |
|------------------|--------|

| (1)   | As discussed in Note 1—Accounting Policies—Accounting Policies Adopted—Variable Interest Entities, effective January 1, 2010, we deconsolidated our investment in PPEA Holding, and as a result, there are no longer any noncontrolling interests in any of our consolidated subsidiaries. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                              |   | March 31,2010 |    |
|---------------------------------------------------|--------|---------------|---------|
|                                              |   | (in millions) |    |
| Unconsolidated investments                        |   | $             | — |   |
| Accrued liabilities and other current liabilities |   |          | 15      |   |
| Accumulated other comprehensive loss, net of tax  |   |          | 17      |   |

----

Table of Contents

|             |   | Three Months Ended March 31, 2010 |    |
|------------------|--------|-----------------------------------|---------|
|             |   | Total                             |    |   | Equity Share |   |
|             |   | (in millions)                     |    |
| Revenues         |   | $                                 | — |   |   | $ | — |   |
| Operating income |   |                              | (1      | ) |   |   | — |   |
| Net income       |   |                              | 9       |   |   |   | 3 |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | Three Months Ended March 31,            |    |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------|---------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | 2010                                    |    |   | 2009 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | (in millions, except per share amounts) |    |
| Income (loss) from continuing operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | $                                       | 144     |   |   | $ | (323 | ) |
| Less:  Net loss attributable to the noncontrolling interest                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                    | — |   |   |   | (2 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                                    |    |   |   |   |   |   |
| Income (loss) from continuing operations attributable to Dynegy Inc. for basic and diluted loss per share                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | $                                       | 144     |   |   | $ | (321 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                                    |    |   |   |   |   |   |
| Basic weighted-average shares                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                    | 599     |   |   |   | 841 |   |
| Effect of dilutive securities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                    |    |   |   |   |   |   |
| Stock options and restricted stock                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                    | 5       |   |   |   | 2 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                                    |    |   |   |   |   |   |
| Diluted weighted-average shares                                                                                    |   |                                    | 604     |   |   |   | 843 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                                    |    |   |   |   |   |   |
| Earnings (loss) per share from continuing operations attributable to Dynegy Inc:                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                                    |    |   |   |   |   |   |
| Basic                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | $                                       | 0.24    |   |   | $ | (0.38 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                                    |    |   |   |   |   |   |
| Diluted (1)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | $                                       | 0.24    |   |   | $ | (0.38 | ) |

| (1)   | Entities with a net loss from continuing operations are prohibited from including potential common shares in the computation of diluted per-share amounts.  Accordingly, Dynegy Inc. has utilized the basic shares outstanding amount to calculate both basic and diluted loss per share for the three months ended March 31, 2009. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| ·   | In February 2007, the Tennessee state court dismissed a class action on defendants’ motion.  Plaintiffs appealed and, in October 2008, the appellate court reversed the dismissal.  Thereafter, defendants appealed to the Tennessee Supreme Court which, in April 2010, reversed the appellate court ruling and dismissed all of plaintiffs’ claims.  The decision is subject to appeal to the U.S. Supreme court. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | In February 2008, the United States District Court in Las Vegas, Nevada granted defendants’ motion for summary judgment in a Colorado class action and, ultimately, dismissed the case and all of plaintiffs’ claims.  The decision is subject to appeal once the remaining defendants’ claims are adjudicated. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The remaining five cases, three of which seek class certification, are also pending in Nevada federal court.  All of the cases contain similar claims that individually, and in conjunction with other energy companies, we engaged in an illegal scheme to inflate natural gas prices in four states by providing false information to natural gas index publications.  In November 2009, following defendants’ motion for reconsideration, the court invited defendants to renew their motions for summary judgment, which were filed shortly thereafter.  Now fully briefed, we await an order or further instruction from the court.  In the interim, discovery and plaintiffs’ class certification motion are stayed. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Roseton SPDES Permit — In April 2005, the NYSDEC issued a Draft SPDES Permit renewal for the Roseton plant.  The permit is opposed by environmental groups challenging the BTA determination.  The hearing will be scheduled after the Commissioner rules on appeals of procedural matters.  We believe that the petitioners’ claims lack merit and we plan to oppose those claims vigorously. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Moss Landing NPDES Permit — The California Regional Water Quality Control Board (“Water Board”) issued an NPDES permit for the Moss Landing Power Plant in 2000 that did not require closed cycle cooling.  A local environmental group challenged the BTA determination of the permit.  The Water Board’s decision was affirmed by the Superior Court in 2004 and by the Court of Appeals in 2007.  The Supreme Court of California granted review in March 2008.  The petitioner’s brief was filed in December 2009.  We filed a motion to dismiss and our responsive brief in March 2010.  The petitioner’s reply brief is due on May 28, 2010.  We believe that petitioner’s claims lack merit and we plan to oppose those claims vigorously. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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Table of Contents

|                                          |   | Pension Benefits             |   |   | Other Benefits |   |
|-----------------------------------------------|--------|------------------------------|--------|--------|----------------|--------|
|                                          |   | Three Months Ended March 31, |   |
|                                          |   | 2010                         |   |   | 2009           |   |   | 2010 |   |   | 2009 |   |
|                                          |   | (in millions)                |   |
| Service cost benefits earned during period    |   | $                            | 3      |   |           | $      | 3 |   |   | $ | 1 |   |   | $ | 1 |   |
| Interest cost on projected benefit obligation |   |                         | 3      |   |           |   | 3 |   |   |   | 1 |   |   |   | 1 |   |
| Expected return on plan assets                |   |                         | (4     | )      |           |   | (3 | ) |   |   | — |   |   |   | — |   |
| Recognized net actuarial loss                 |   |                         | 1      |   |           |   | 1 |   |   |   | — |   |   |   | — |   |
|                                          |   |                         |   |   |           |   |   |   |   |   |   |   |   |   |   |   |
| Net periodic benefit cost                     |   | $                            | 3      |   |           | $      | 4 |   |   | $ | 2 |   |   | $ | 2 |   |

|               |   | Three Months EndedMarch 31, |   |
|--------------------|--------|-----------------------------|--------|
|               |   | 2010                        |   |   | 2009 |   |
|               |   | (in millions, except rates) |   |
| Income tax expense |   | $                           | (65    | ) |   | $ | (91 | ) |
|               |   |                        |   |   |   |   |   |   |
| Effective tax rate |   |                        | 31     | % |   |   | (39 | %) |

|               |   | Three Months Ended March 31, |   |
|--------------------|--------|-----------------------------------|--------|
|               |   | 2010                              |   |   | 2009 |   |
|               |   | (in millions, except rates)       |   |
| Income tax expense |   | $                                 | (72    | ) |   | $ | (88 | ) |
|               |   |                              |   |   |   |   |   |   |
| Effective tax rate |   |                              | 34     | % |   |   | (37 | %) |

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Table of Contents

|                                                  |   | Power Generation |    |   |   |   |    |   |   |
|-------------------------------------------------------|--------|------------------|---------|--------|--------|--------|---------|--------|--------|
|                                                  |   | GEN-MW           |    |   | GEN-WE |   |    | GEN-NE |   |   | Other |   |   | Total |   |
| Unaffiliated revenues:                                |   |             |    |   |   |   |    |   |   |   |   |   |   |   |   |
| Domestic                                              |   | $                | 486     |   |   | $      | 143     |   |   | $ | 229 |   |   | $ | — |   |   | $ | 858 |   |
|                                                  |   |             |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total revenues                                        |   | $                | 486     |   |   | $      | 143     |   |   | $ | 229 |   |   | $ | — |   |   | $ | 858 |   |
|                                                  |   |             |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Depreciation and amortization                         |   | $                | (50     | )      |   | $      | (16     | )      |   | $ | (8 | ) |   | $ | (1 | ) |   | $ | (75 | ) |
|                                                  |   |             |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating income (loss)                               |   | $                | 260     |   |   | $      | 45      |   |   | $ | 60 |   |   | $ | (34 | ) |   | $ | 331 |   |
|                                                  |   |             |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Losses from unconsolidated investments                |   |             | (34     | )      |   |   | — |   |   |   | — |   |   |   | — |   |   |   | (34 | ) |
| Other items, net                                      |   |             | — |   |   |   | — |   |   |   | 1 |   |   |   | — |   |   |   | 1 |   |
| Interest expense                                      |   |             |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   | (89 | ) |
|                                                  |   |             |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income from continuing operations before income taxes |   |             |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   | 209 |   |
| Income tax expense                                    |   |             |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   | (65 | ) |
|                                                  |   |             |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income from continuing operations                     |   |             |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   | 144 |   |
| Income from discontinued operations, net of taxes     |   |             |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   | 1 |   |
|                                                  |   |             |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income                                            |   |             |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   | $ | 145 |   |
|                                                  |   |             |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Identifiable assets:                                  |   |             |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Domestic                                              |   | $                | 5,705   |   |   | $      | 2,061   |   |   | $ | 2,003 |   |   | $ | 1,664 |   |   | $ | 11,433 |   |
| Other                                                 |   |             | — |   |   |   | — |   |   |   | — |   |   |   | 24 |   |   |   | 24 |   |
|                                                  |   |             |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                                                 |   | $                | 5,705   |   |   | $      | 2,061   |   |   | $ | 2,003 |   |   | $ | 1,688 |   |   | $ | 11,457 |   |
|                                                  |   |             |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Capital expenditures                                  |   | $                | (89     | )      |   | $      | (8      | )      |   | $ | (3 | ) |   | $ | (1 | ) |   | $ | (101 | ) |

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Table of Contents

|                                                       |   | Power Generation |    |   |   |   |    |   |   |
|------------------------------------------------------------|--------|------------------|---------|--------|--------|--------|---------|--------|--------|
|                                                       |   | GEN-MW           |    |   | GEN-WE |   |    | GEN-NE |   |   | Other |   |   | Total |   |
| Unaffiliated revenues:                                     |   |             |    |   |   |   |    |   |   |   |   |   |   |   |   |
| Domestic                                                   |   | $                | 524     |   |   | $      | 83      |   |   | $ | 297 |   |   | $ | — |   |   | $ | 904 |   |
|                                                       |   |             |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total revenues                                             |   | $                | 524     |   |   | $      | 83      |   |   | $ | 297 |   |   | $ | — |   |   | $ | 904 |   |
|                                                       |   |             |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Depreciation and amortization                              |   | $                | (51     | )      |   | $      | (17     | )      |   | $ | (15 | ) |   | $ | (3 | ) |   | $ | (86 | ) |
| Goodwill impairments                                       |   |             | (76     | )      |   |   | (260    | )      |   |   | (97 | ) |   |   | — |   |   |   | (433 | ) |
|                                                       |   |             |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating income (loss)                                    |   | $                | 206     |   |   | $      | (272    | )      |   | $ | (43 | ) |   | $ | (37 | ) |   | $ | (146 | ) |
|                                                       |   |             |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Earnings from unconsolidated investments                   |   |             | — |   |   |   | 7       |   |   |   | — |   |   |   | 1 |   |   |   | 8 |   |
| Other items, net                                           |   |             | 2       |   |   |   | — |   |   |   | — |   |   |   | 2 |   |   |   | 4 |   |
| Interest expense                                           |   |             |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   | (98 | ) |
|                                                       |   |             |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loss from continuing operations before income taxes        |   |             |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   | (232 | ) |
| Income tax expense                                         |   |             |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   | (91 | ) |
|                                                       |   |             |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loss from continuing operations                            |   |             |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   | (323 | ) |
| Loss from discontinued operations, net of taxes            |   |             |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   | (14 | ) |
|                                                       |   |             |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss                                                   |   |             |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   | (337 | ) |
| Less: Net loss attributable to the noncontrolling interest |   |             |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   | (2 | ) |
|                                                       |   |             |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss attributable to Dynegy Inc.                       |   |             |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   | $ | (335 | ) |
|                                                       |   |             |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Identifiable assets:                                       |   |             |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Domestic                                                   |   | $                | 6,992   |   |   | $      | 3,118   |   |   | $ | 2,513 |   |   | $ | 1,489 |   |   | $ | 14,112 |   |
| Other                                                      |   |             | — |   |   |   | — |   |   |   | — |   |   |   | 19 |   |   |   | 19 |   |
|                                                       |   |             |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                                                      |   | $                | 6,992   |   |   | $      | 3,118   |   |   | $ | 2,513 |   |   | $ | 1,508 |   |   | $ | 14,131 |   |
|                                                       |   |             |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Capital expenditures                                       |   | $                | (128    | )      |   | $      | (1      | )      |   | $ | (7 | ) |   | $ | (2 | ) |   | $ | (138 | ) |

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Table of Contents

|                                                  |   | Power Generation |    |   |   |   |    |   |   |
|-------------------------------------------------------|--------|------------------|---------|--------|--------|--------|---------|--------|--------|
|                                                  |   | GEN-MW           |    |   | GEN-WE |   |    | GEN-NE |   |   |  Other  |   |   |  Total |   |
| Unaffiliated revenues:                                |   |             |    |   |   |   |    |   |   |   |   |   |   |   |   |
| Domestic                                              |   | $                | 486     |   |   | $      | 143     |   |   | $ | 229 |   |   | $ | — |   |   | $ | 858 |   |
|                                                  |   |             |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total revenues                                        |   | $                | 486     |   |   | $      | 143     |   |   | $ | 229 |   |   | $ | — |   |   | $ | 858 |   |
|                                                  |   |             |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Depreciation and amortization                         |   | $                | (50     | )      |   | $      | (16     | )      |   | $ | (8 | ) |   | $ | (1 | ) |   | $ | (75 | ) |
|                                                  |   |             |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating income (loss)                               |   | $                | 260     |   |   | $      | 45      |   |   | $ | 60 |   |   | $ | (34 | ) |   | $ | 331 |   |
|                                                  |   |             |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Losses from unconsolidated investments                |   |             | (34     | )      |   |   | — |   |   |   | — |   |   |   | — |   |   |   | (34 | ) |
| Other items, net                                      |   |             | — |   |   |   | — |   |   |   | 1 |   |   |   | — |   |   |   | 1 |   |
| Interest expense                                      |   |             |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   | (89 | ) |
|                                                  |   |             |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income from continuing operations before income taxes |   |             |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   | 209 |   |
| Income tax expense                                    |   |             |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   | (72 | ) |
|                                                  |   |             |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income from continuing operations                     |   |             |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   | 137 |   |
| Income from discontinued operations, net of taxes     |   |             |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   | 1 |   |
|                                                  |   |             |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income                                            |   |             |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   | $ | 138 |   |
|                                                  |   |             |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Identifiable assets:                                  |   |             |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Domestic                                              |   | $                | 5,705   |   |   | $      | 2,061   |   |   | $ | 2,003 |   |   | $ | 1,612 |   |   | $ | 11,381 |   |
| Other                                                 |   |             | — |   |   |   | — |   |   |   | — |   |   |   | 24 |   |   |   | 24 |   |
|                                                  |   |             |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                                                 |   | $                | 5,705   |   |   | $      | 2,061   |   |   | $ | 2,003 |   |   | $ | 1,636 |   |   | $ | 11,405 |   |
|                                                  |   |             |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Capital expenditures                                  |   | $                | (89     | )      |   | $      | (8      | )      |   | $ | (3 | ) |   | $ | (1 | ) |   | $ | (101 | ) |

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Table of Contents

|                                                       |   | Power Generation |    |   |   |   |    |   |   |
|------------------------------------------------------------|--------|------------------|---------|--------|--------|--------|---------|--------|--------|
|                                                       |   | GEN-MW           |    |   | GEN-WE |   |    | GEN-NE |   |   | Other |   |   | Total |   |
| Unaffiliated revenues:                                     |   |             |    |   |   |   |    |   |   |   |   |   |   |   |   |
| Domestic                                                   |   | $                | 524     |   |   | $      | 83      |   |   | $ | 297 |   |   | $ | — |   |   | $ | 904 |   |
|                                                       |   |             |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total revenues                                             |   | $                | 524     |   |   | $      | 83      |   |   | $ | 297 |   |   | $ | — |   |   | $ | 904 |   |
|                                                       |   |             |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Depreciation and amortization                              |   | $                | (51     | )      |   | $      | (17     | )      |   | $ | (15 | ) |   | $ | (3 | ) |   | $ | (86 | ) |
| Goodwill impairments                                       |   |             | (76     | )      |   |   | (260    | )      |   |   | (97 | ) |   |   | — |   |   |   | (433 | ) |
|                                                       |   |             |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating income (loss)                                    |   | $                | 206     |   |   | $      | (272    | )      |   | $ | (43 | ) |   | $ | (39 | ) |   | $ | (148 | ) |
|                                                       |   |             |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Earnings from unconsolidated investments                   |   |             | — |   |   |   | 7       |   |   |   | — |   |   |   | — |   |   |   | 7 |   |
| Other items, net                                           |   |             | 2       |   |   |   | — |   |   |   | — |   |   |   | 2 |   |   |   | 4 |   |
| Interest expense                                           |   |             |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   | (98 | ) |
|                                                       |   |             |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loss from continuing operations before income taxes        |   |             |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   | (235 | ) |
| Income tax expense                                         |   |             |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   | (88 | ) |
|                                                       |   |             |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loss from continuing operations                            |   |             |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   | (323 | ) |
| Loss from discontinued operations, net of taxes            |   |             |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   | (14 | ) |
|                                                       |   |             |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss                                                   |   |             |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   | (337 | ) |
| Less: Net loss attributable to the noncontrolling interest |   |             |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   | (2 | ) |
|                                                       |   |             |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss attributable to Dynegy Holdings Inc.              |   |             |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   | $ | (335 | ) |
|                                                       |   |             |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Identifiable assets:                                       |   |             |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Domestic                                                   |   | $                | 6,992   |   |   | $      | 3,118   |   |   | $ | 2,513 |   |   | $ | 1,307 |   |   | $ | 13,930 |   |
| Other                                                      |   |             | — |   |   |   | — |   |   |   | — |   |   |   | 19 |   |   |   | 19 |   |
|                                                       |   |             |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                                                      |   | $                | 6,992   |   |   | $      | 3,118   |   |   | $ | 2,513 |   |   | $ | 1,326 |   |   | $ | 13,949 |   |
|                                                       |   |             |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Capital expenditures                                       |   | $                | (128    | )      |   | $      | (1      | )      |   | $ | (7 | ) |   | $ | (2 | ) |   | $ | (138 | ) |

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Table of Contents

Item 2—MANAGEMENT’S DISCUSSION 

|                                                     |   | May 3,2010    |    |   | March 31,2010 |   |    | December 31,2009 |   |
|----------------------------------------------------------|--------|---------------|---------|--------|---------------|--------|---------|------------------|--------|
|                                                     |   | (in millions) |    |
| Revolver capacity (1)                                    |   | $             | 1,080   |   |          | $      | 1,080   |             |   | $ | 1,080 |   |
| Borrowings against revolver capacity                     |   |          | — |   |          |   | — |             |   |   | — |   |
| Term letter of credit capacity, net of required reserves |   |          | 825     |   |          |   | 825     |             |   |   | 825 |   |
| Plum Point letter of credit capacity (2)                 |   |          | — |   |          |   | — |             |   |   | 102 |   |
| Outstanding letters of credit (2)                        |   |          | (375    | )      |          |   | (369    | )                |   |   | (536 | ) |
|                                                     |   |          |    |   |          |   |    |             |   |   |   |   |
| Unused capacity                                          |   |          | 1,530   |   |          |   | 1,536   |             |   |   | 1,471 |   |
|                                                     |   |          |    |   |          |   |    |             |   |   |   |   |
| Cash—DHI                                           |   |          | 554     |   |          |   | 635     |             |   |   | 419 |   |
| Marketable securities—DHI (3)                      |   |          | 139     |   |          |   | 114     |             |   |   | — |   |
|                                                     |   |          |    |   |          |   |    |             |   |   |   |   |
| Total available liquidity—DHI                      |   |          | 2,223   |   |          |   | 2,285   |             |   |   | 1,890 |   |
| Cash—Dynegy                                        |   |          | 40      |   |          |   | 53      |             |   |   | 52 |   |
| Marketable securities—Dynegy (3)                   |   |          | 13      |   |          |   | — |             |   |   | — |   |
|                                                     |   |          |    |   |          |   |    |             |   |   |   |   |
| Total available liquidity—Dynegy                   |   | $             | 2,276   |   |          | $      | 2,338   |             |   | $ | 1,942 |   |

| (1)   | We currently have a syndicate of lenders participating in the revolving portion of our Credit Facility with commitments ranging from $10 million to $165 million. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | Reflects the reduction of $102 million of capacity and corresponding outstanding letters of credit as of March 31, 2010 due to the deconsolidation of PPEA Holding.  Please read Note 1—Accounting Policies—Accounting Policies Adopted—Variable Interest Entities for further discussion. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3)   | We invest our available cash balances in certain investments permitted by our internal policies and external financing agreements.  Please read Note 1—Accounting Policies—Marketable Securities and Note 4—Investments for further discussion. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                               |   | May 3,2010    |   |   | March 31,2010 |   |   | December 31,2009 |   |
|------------------------------------|--------|---------------|--------|--------|---------------|--------|--------|------------------|--------|
|                               |   | (in millions) |   |
| By Business:                       |   |          |   |   |          |   |   |             |   |
| Generation business                |   | $             | 415    |   |          | $      | 421    |             |   | $ | 638 |   |
| Other (1)                          |   |          | 104    |   |          |   | 103    |             |   |   | 189 |   |
|                               |   |          |   |   |          |   |   |             |   |   |   |   |
|  Total                        |   | $             | 519    |   |          | $      | 524    |             |   | $ | 827 |   |
|                               |   |          |   |   |          |   |   |             |   |   |   |   |
| By Type:                           |   |          |   |   |          |   |   |             |   |   |   |   |
| Cash and marketable securities (2) |   | $             | 144    |   |          | $      | 155    |             |   | $ | 291 |   |
| Letters of credit (1)              |   |          | 375    |   |          |   | 369    |             |   |   | 536 |   |
|                               |   |          |   |   |          |   |   |             |   |   |   |   |
| Total                              |   | $             | 519    |   |          | $      | 524    |             |   | $ | 827 |   |

| (1)   | Reflects the reduction of $102 million of capacity and corresponding outstanding letters of credit as of March 31, 2010 due to the deconsolidation of PPEA Holding.  Please read Note 1—Accounting Policies—Accounting Policies Adopted—Variable Interest Entities for further discussion. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | Includes Collateral included in Accrued liabilities and Broker margin account on our consolidated balance sheets at March 31, 2010 and December 31, 2009, respectively, as well as other collateral postings included in Prepayments and other current assets. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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Table of Contents

|   |   | For the Three Months Ended |   |
|--------|--------|----------------------------|--------|
|   |   | March 31,                  |   |
|   |   | 2010                       |   |   | 2009 |   |
|   |   | (in millions)              |   |
| GEN-MW |   | $                          | 89     |   |   | $ | 128 |   |
| GEN-WE |   |                       | 8      |   |   |   | 1 |   |
| GEN-NE |   |                       | 3      |   |   |   | 7 |   |
| Other  |   |                       | 1      |   |   |   | 2 |   |
|   |   |                       |   |   |   |   |   |   |
| Total  |   | $                          | 101    |   |   | $ | 138 |   |

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Table of Contents

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Table of Contents

|                                                                                                         |   | Power Generation |    |   |   |   |    |   |   |
|--------------------------------------------------------------------------------------------------------------|--------|------------------|---------|--------|--------|--------|---------|--------|--------|
|                                                                                                         |   | GEN-MW           |    |   | GEN-WE |   |    | GEN-NE |   |   | Other |   |   | Total |   |
|                                                                                                         |   |             |    |   |   |   |    |   |   |   |   |   |   |   |   |
| Revenues                                                                                                     |   | $                | 486     |   |   | $      | 143     |   |   | $ | 229 |   |   | $ | — |   |   | $ | 858 |   |
| Cost of sales                                                                                                |   |             | (127    | )      |   |   | (59     | )      |   |   | (122 | ) |   |   | — |   |   |   | (308 | ) |
| Operating and maintenance expense, exclusive of depreciation and amortization expense shown separately below |   |             | (49     | )      |   |   | (23     | )      |   |   | (39 | ) |   |   | (2 | ) |   |   | (113 | ) |
| Depreciation and amortization expense                                                                        |   |             | (50     | )      |   |   | (16     | )      |   |   | (8 | ) |   |   | (1 | ) |   |   | (75 | ) |
| General and administrative expense                                                                           |   |             | — |   |   |   | — |   |   |   | — |   |   |   | (31 | ) |   |   | (31 | ) |
|                                                                                                         |   |             |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating income (loss)                                                                                      |   | $                | 260     |   |   | $      | 45      |   |   | $ | 60 |   |   | $ | (34 | ) |   | $ | 331 |   |
| Losses from unconsolidated investments                                                                       |   |             | (34     | )      |   |   | — |   |   |   | — |   |   |   | — |   |   |   | (34 | ) |
| Other items, net                                                                                             |   |             | — |   |   |   | — |   |   |   | 1 |   |   |   | — |   |   |   | 1 |   |
| Interest expense                                                                                             |   |             |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   | (89 | ) |
|                                                                                                         |   |             |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income from continuing operations before income taxes                                                        |   |             |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   | 209 |   |
| Income tax expense                                                                                           |   |             |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   | (65 | ) |
|                                                                                                         |   |             |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income from continuing operations                                                                            |   |             |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   | 144 |   |
| Income from discontinued operations, net of taxes                                                            |   |             |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   | 1 |   |
|                                                                                                         |   |             |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income                                                                                                   |   |             |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   | $ | 145 |   |

|                                                                                                         |   | Power Generation |    |   |   |   |    |   |   |
|--------------------------------------------------------------------------------------------------------------|--------|------------------|---------|--------|--------|--------|---------|--------|--------|
|                                                                                                         |   | GEN-MW           |    |   | GEN-WE |   |    | GEN-NE |   |   | Other |   |   | Total |   |
|                                                                                                         |   |             |    |   |   |   |    |   |   |   |   |   |   |   |   |
| Revenues                                                                                                     |   | $                | 524     |   |   | $      | 83      |   |   | $ | 297 |   |   | $ | — |   |   | $ | 904 |   |
| Cost of sales                                                                                                |   |             | (140    | )      |   |   | (52     | )      |   |   | (186 | ) |   |   | — |   |   |   | (378 | ) |
| Operating and maintenance expense, exclusive of depreciation and amortization expense shown separately below |   |             | (51     | )      |   |   | (26     | )      |   |   | (42 | ) |   |   | 4 |   |   |   | (115 | ) |
| Depreciation and amortization expense                                                                        |   |             | (51     | )      |   |   | (17     | )      |   |   | (15 | ) |   |   | (3 | ) |   |   | (86 | ) |
| Goodwill impairments                                                                                         |   |             | (76     | )      |   |   | (260    | )      |   |   | (97 | ) |   |   | — |   |   |   | (433 | ) |
| General and administrative expense                                                                           |   |             | — |   |   |   | — |   |   |   | — |   |   |   | (38 | ) |   |   | (38 | ) |
|                                                                                                         |   |             |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating income (loss)                                                                                      |   | $                | 206     |   |   | $      | (272    | )      |   | $ | (43 | ) |   | $ | (37 | ) |   | $ | (146 | ) |
| Earnings from unconsolidated investments                                                                     |   |             | — |   |   |   | 7       |   |   |   | — |   |   |   | 1 |   |   |   | 8 |   |
| Other items, net                                                                                             |   |             | 2       |   |   |   | — |   |   |   | — |   |   |   | 2 |   |   |   | 4 |   |
| Interest expense                                                                                             |   |             |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   | (98 | ) |
|                                                                                                         |   |             |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loss from continuing operations before income taxes                                                          |   |             |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   | (232 | ) |
| Income tax expense                                                                                           |   |             |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   | (91 | ) |
|                                                                                                         |   |             |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loss from continuing operations                                                                              |   |             |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   | (323 | ) |
| Loss from discontinued operations, net of taxes                                                              |   |             |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   | (14 | ) |
| Net loss                                                                                                     |   |             |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   | (337 | ) |
|                                                                                                         |   |             |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Less: Net loss attributable to the noncontrolling interest                                                   |   |             |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   | (2 | ) |
|                                                                                                         |   |             |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss attributable to Dynegy Inc.                                                                         |   |             |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   | $ | (335 | ) |

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Table of Contents

|                                                                                                         |   | Power Generation |    |   |   |   |    |   |   |
|--------------------------------------------------------------------------------------------------------------|--------|------------------|---------|--------|--------|--------|---------|--------|--------|
|                                                                                                         |   | GEN-MW           |    |   | GEN-WE |   |    | GEN-NE |   |   | Other |   |   | Total |   |
|                                                                                                         |   |             |    |   |   |   |    |   |   |   |   |   |   |   |   |
| Revenues                                                                                                     |   | $                | 486     |   |   | $      | 143     |   |   | $ | 229 |   |   | $ | — |   |   | $ | 858 |   |
| Cost of sales                                                                                                |   |             | (127    | )      |   |   | (59     | )      |   |   | (122 | ) |   |   | — |   |   |   | (308 | ) |
| Operating and maintenance expense, exclusive of depreciation and amortization expense shown separately below |   |             | (49     | )      |   |   | (23     | )      |   |   | (39 | ) |   |   | (2 | ) |   |   | (113 | ) |
| Depreciation and amortization expense                                                                        |   |             | (50     | )      |   |   | (16     | )      |   |   | (8 | ) |   |   | (1 | ) |   |   | (75 | ) |
| General and administrative expense                                                                           |   |             | — |   |   |   | — |   |   |   | — |   |   |   | (31 | ) |   |   | (31 | ) |
|                                                                                                         |   |             |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating income (loss)                                                                                      |   | $                | 260     |   |   | $      | 45      |   |   | $ | 60 |   |   | $ | (34 | ) |   | $ | 331 |   |
| Losses from unconsolidated investments                                                                       |   |             | (34     | )      |   |   | — |   |   |   | — |   |   |   | — |   |   |   | (34 | ) |
| Other items, net                                                                                             |   |             | — |   |   |   | — |   |   |   | 1 |   |   |   | — |   |   |   | 1 |   |
| Interest expense                                                                                             |   |             |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   | (89 | ) |
|                                                                                                         |   |             |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income from continuing operations before income taxes                                                        |   |             |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   | 209 |   |
| Income tax expense                                                                                           |   |             |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   | (72 | ) |
|                                                                                                         |   |             |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income from continuing operations                                                                            |   |             |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   | 137 |   |
| Income from discontinued operations, net of taxes                                                            |   |             |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   | 1 |   |
|                                                                                                         |   |             |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income                                                                                                   |   |             |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   | $ | 138 |   |

|                                                                                                         |   | Power Generation |    |   |   |   |    |   |   |
|--------------------------------------------------------------------------------------------------------------|--------|------------------|---------|--------|--------|--------|---------|--------|--------|
|                                                                                                         |   | GEN-MW           |    |   | GEN-WE |   |    | GEN-NE |   |   | Other |   |   | Total |   |
|                                                                                                         |   |             |    |   |   |   |    |   |   |   |   |   |   |   |   |
| Revenues                                                                                                     |   | $                | 524     |   |   | $      | 83      |   |   | $ | 297 |   |   | $ | — |   |   | $ | 904 |   |
| Cost of sales                                                                                                |   |             | (140    | )      |   |   | (52     | )      |   |   | (186 | ) |   |   | — |   |   |   | (378 | ) |
| Operating and maintenance expense, exclusive of depreciation and amortization expense shown separately below |   |             | (51     | )      |   |   | (26     | )      |   |   | (42 | ) |   |   | 2 |   |   |   | (117 | ) |
| Depreciation and amortization expense                                                                        |   |             | (51     | )      |   |   | (17     | )      |   |   | (15 | ) |   |   | (3 | ) |   |   | (86 | ) |
| Goodwill impairments                                                                                         |   |             | (76     | )      |   |   | (260    | )      |   |   | (97 | ) |   |   | — |   |   |   | (433 | ) |
| General and administrative expense                                                                           |   |             | — |   |   |   | — |   |   |   | — |   |   |   | (38 | ) |   |   | (38 | ) |
|                                                                                                         |   |             |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating income (loss)                                                                                      |   | $                | 206     |   |   | $      | (272    | )      |   | $ | (43 | ) |   | $ | (39 | ) |   | $ | (148 | ) |
| Earnings from unconsolidated investments                                                                     |   |             | — |   |   |   | 7       |   |   |   | — |   |   |   | — |   |   |   | 7 |   |
| Other items, net                                                                                             |   |             | 2       |   |   |   | — |   |   |   | — |   |   |   | 2 |   |   |   | 4 |   |
| Interest expense                                                                                             |   |             |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   | (98 | ) |
|                                                                                                         |   |             |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loss from continuing operations before income taxes                                                          |   |             |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   | (235 | ) |
| Income tax expense                                                                                           |   |             |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   | (88 | ) |
|                                                                                                         |   |             |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loss from continuing operations                                                                              |   |             |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   | (323 | ) |
| Loss from discontinued operations, net of taxes                                                              |   |             |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   | (14 | ) |
| Net loss                                                                                                     |   |             |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   | (337 | ) |
|                                                                                                         |   |             |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Less: Net loss attributable to the noncontrolling interest                                                   |   |             |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   | (2 | ) |
|                                                                                                         |   |             |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss attributable to Dynegy Holdings Inc.                                                                |   |             |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   | $ | (335 | ) |

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|                                                      |   | Three Months EndedMarch 31, |    |
|-----------------------------------------------------------|--------|-----------------------------|---------|
|                                                      |   | 2010                        |    |   | 2009 |   |
| GEN-MW                                                    |   |                        |    |   |   |   |
| Million Megawatt Hours Generated (1)                      |   |                        | 6.4     |   |   |   | 6.5 |   |
| In Market Availability for Coal Fired Facilities (2)      |   |                        | 94      | % |   |   | 86 | % |
| Average Capacity Factor for Combined Cycle Facilities (3) |   |                        | 16      | % |   |   | 30 | % |
| Average Quoted On-Peak Market Power Prices ($/MWh) (4):   |   |                        |    |   |   |   |   |   |
| Cinergy (Cin Hub)                                         |   | $                           | 42      |   |   | $ | 39 |   |
| Commonwealth Edison (NI Hub)                              |   | $                           | 42      |   |   | $ | 40 |   |
| PJM West                                                  |   | $                           | 52      |   |   | $ | 55 |   |
| Average Market Spark Spreads ($/MWh) (5):                 |   |                        |    |   |   |   |   |   |
| PJM West                                                  |   | $                           | 9       |   |   | $ | 11 |   |
|                                                      |   |                        |    |   |   |   |   |   |
| GEN-WE                                                    |   |                        |    |   |   |   |   |   |
| Million Megawatt Hours Generated (6) (7)                  |   |                        | 1.4     |   |   |   | 1.5 |   |
| Average Capacity Factor for Combined Cycle Facilities (3) |   |                        | 58      | % |   |   | 54 | % |
| Average Quoted On-Peak Market Power Prices ($/MWh) (4):   |   |                        |    |   |   |   |   |   |
| North Path 15 (NP 15)                                     |   | $                           | 47      |   |   | $ | 40 |   |
|                                                      |   |                        |    |   |   |   |   |   |
| Average Market Spark Spreads ($/MWh) (5):                 |   |                        |    |   |   |   |   |   |
| North Path 15 (NP 15)                                     |   | $                           | 7       |   |   | $ | 6 |   |
|                                                      |   |                        |    |   |   |   |   |   |
| GEN-NE                                                    |   |                        |    |   |   |   |   |   |
| Million Megawatt Hours Generated                          |   |                        | 1.5     |   |   |   | 3.1 |   |
| In Market Availability for Coal Fired Facilities (2)      |   |                        | 92      | % |   |   | 97 | % |
| Average Capacity Factor for Combined Cycle Facilities (3) |   |                        | 28      | % |   |   | 48 | % |
| Average Quoted On-Peak Market Power Prices ($/MWh) (4):   |   |                        |    |   |   |   |   |   |
| New York—Zone G                                     |   | $                           | 57      |   |   | $ | 62 |   |
| New York—Zone A                                     |   | $                           | 40      |   |   | $ | 47 |   |
| Mass Hub                                                  |   | $                           | 55      |   |   | $ | 59 |   |
| Average Market Spark Spreads ($/MWh) (5):                 |   |                        |    |   |   |   |   |   |
| New York—Zone A                                     |   | $                           | — |   |   | $ | 10 |   |
| Mass Hub                                                  |   | $                           | 9       |   |   | $ | 15 |   |
| Fuel Oil                                                  |   | $                           | (72     | ) |   | $ | (9 | ) |
|                                                      |   |                        |    |   |   |   |   |   |
| Average natural gas price—Henry Hub ($/MMBtu) (8)   |   | $                           | 5.15    |   |   | $ | 4.58 |   |

| (1)   | Excludes less than 0.1 million MWh generated by our former Bluegrass power generation facility, which we sold on November 30, 2009 and is reported in discontinued operations, for the three months ended March 31, 2009. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | Reflects the percentage of generation available during periods when market prices are such that these units could be profitably dispatched. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------|

| (3)   | Reflects actual production as a percentage of available capacity.  Excludes the Arizona power generation facilities which are reported as discontinued operations with respect to the GEN-WE segment. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4)   | Reflects the average of day-ahead quoted prices for the periods presented and does not necessarily reflect prices we realized. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------|

| (5)   | Reflects the simple average of the spark spread available to a 7.0 MMBtu/MWh heat rate generator selling power at day-ahead prices and buying delivered natural gas or fuel oil at a daily cash market price and does not reflect spark spreads available to us. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (6)   | Includes our ownership percentage in the MWh generated by our GEN-WE investment in the Black Mountain power generation facility for the three months ended March 31, 2010 and 2009, respectively. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (7)   | Excludes less than 0.1 million MWh generated by our Heard County power generation facility, which we sold on April 30, 2009, and is reported in discontinued operations for the three months ended March 31, 2009.  Excludes less than 0.1 million MWh generated by our Arizona power generation facilities, which we sold on November 30, 2009 and is reported in discontinued operations, for the three months ended March 31, 2009. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (8)   | Reflects the average of daily quoted prices for the periods presented and does not reflect costs incurred by us. |
|-----------------|------------------------------------------------------------------------------------------------------------------|

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|                                                                                                                                                                                                                                                                                                                          |   | Three Months Ended March 31, 2010 |    |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------|---------|
|                                                                                                                                                                                                                                                                                                                          |   | Power Generation                  |    |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                          |   | GEN-MW                            |    |   | GEN-WE |   |   | GEN-NE |   |   | Other |   |   | Total |   |
|                                                                                                                                                                                                                                                                                                                          |   | (in millions)                     |    |
| PPEA Holding impairment                                                                                                                                                                                                                                                                                                       |   | $                                 | (37     | ) |   | $ | — |   |   | $ | — |   |   | $ | — |   |   | $ | (37 | ) |
| Taxes                                                     |   |                              | — |   |   |   | — |   |   |   | — |   |   |   | 11 |   |   |   | 11 |   |
|                                                                                                                                                                                                                                                                                                                          |   |                              |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total—DHI                                                                                                                                                                                                                                                                                                               |   |                              | (37     | ) |   |   | — |   |   |   | — |   |   |   | 11 |   |   |   | (26 | ) |
| Taxes                                                                                                                                                                                                                                                                                                                         |   |                              | — |   |   |   | — |   |   |   | — |   |   |   | 5 |   |   |   | 5 |   |
|                                                                                                                                                                                                                                                                                                                          |   |                              |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total—Dynegy                                                                                                                                                                                                                                                                                                            |   | $                                 | (37     | ) |   | $ | — |   |   | $ | — |   |   | $ | 16 |   |   | $ | (21 | ) |

|                                                                                                                                                                                                                                                                                                                          |   | Three Months Ended March 31, 2009 |    |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------|---------|
|                                                                                                                                                                                                                                                                                                                          |   | Power Generation                  |    |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                          |   | GEN-MW                            |    |   | GEN-WE |   |   | GEN-NE |   |   | Other |   |   | Total |   |
|                                                                                                                                                                                                                                                                                                                          |   | (in millions)                     |    |
| Impairments                                                                                                                                                                                                                                                                                                                   |   | $                                 | (76     | ) |   | $ | (260 | ) |   | $ | (97 | ) |   | $ | — |   |   | $ | (433 | ) |
| Sandy Creek mark-to-market gains (1)                                                                                                                                                                                                                                                                                          |   |                              | — |   |   |   | 10 |   |   |   | — |   |   |   | — |   |   |   | 10 |   |
| Discontinued operations                                                                                                                                                                                                                                                                                                       |   |                              | (6      | ) |   |   | (14 | ) |   |   | — |   |   |   | — |   |   |   | (20 | ) |
| Taxes                                                     |   |                              | — |   |   |   | — |   |   |   | — |   |   |   | (15 | ) |   |   | (15 | ) |
|                                                                                                                                                                                                                                                                                                                          |   |                              |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total—DHI                                                                                                                                                                                                                                                                                                               |   |                              | (82     | ) |   |   | (264 | ) |   |   | (97 | ) |   |   | (15 | ) |   |   | (458 | ) |
| Taxes                                                                                                                                                                                                                                                                                                                         |   |                              | — |   |   |   | — |   |   |   | — |   |   |   | (6 | ) |   |   | (6 | ) |
|                                                                                                                                                                                                                                                                                                                          |   |                              |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total—Dynegy                                                                                                                                                                                                                                                                                                            |   | $                                 | (82     | ) |   | $ | (264 | ) |   | $ | (97 | ) |   | $ | (21 | ) |   | $ | (464 | ) |

| (1)   | These mark-to-market gains represent our 50 percent share. |
|-----------------|------------------------------------------------------------|

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| ·   | Energy sales – GEN-MW’s results from energy sales, including both physical and financial transactions, decreased from $185 million for the three months ended March 31, 2009 to $132 million for the three months ended March 31, 2010 primarily as a result of lower realized prices, including the impact of financial transactions, for the three months ended March 31, 2010 compared to the three months ended March 31, 2009.  Additionally, lower spark spreads for our combined-cycle facilities resulted in decreased volumes at the combined cycle facilities.  These decreases were partially offset by higher volumes at our coal-fired power generation facilities due to fewer forced outages. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Increased tolling/capacity revenues of $22 million – Tolling revenues increased by $18 million primarily as a result of a termination fee received for exiting our Kendall tolling contract early.  Capacity revenues also increased by $13 million due to previously contracted PJM capacity at higher prices than the prior year and due to the additional capacity we were able to sell from previously tolled power generation facilities.  These increases were partially offset by the reduction in tolling/capacity revenues from the Midwest assets that were sold to LS Power in the fourth quarter of 2009.  We recorded $9 million in tolling/capacity revenues from these assets during the three months ended March 31, 2009; and |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Mark-to-market gains – GEN-MW’s results for the three months ended March 31, 2010 included mark-to-market gains of $179 million related to forward sales and other derivative contracts, compared to $169 million of mark-to-market gains for the three months ended March 31, 2009.  Of the $179 million in 2010 mark-to-market gains, $74 million related to positions that settled or will settle in 2010, and the remaining $105 million related to positions that will settle in 2011 and beyond. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Mark-to-market gains – GEN-WE’s results for the three months ended March 31, 2010 included mark-to-market gains of $23 million related to forward sales and other derivative contracts, compared to $29 million of mark-to-market losses for the three months ended March 31, 2009.  Of the $23 million in 2010 mark-to-market gains, $22 million related to positions that settled or will settle in 2010, and the remaining $1 million related to positions that will settle in 2011 and beyond. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Energy sales – GEN-NE’s results from energy sales, including both physical and financial transactions, decreased from $33 million for the three months ended March 31, 2009 to $15 million for the three months ended March 31, 2010 primarily as a result of lower market spark spreads, which contributed to reduced volumes at our New York assets, and the sale of our Bridgeport power generation facility in the fourth quarter 2009; and |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Emissions sales – Decreased sales of emissions of $7 million due to lower sale volumes and market prices of emissions credits in the first quarter 2010. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Mark-to-market gains – GEN-NE’s results for the three months ended March 31, 2010 included mark-to-market gains of $51 million related to forward sales and other derivative contracts, compared to gains of $29 million for the three months ended March 31, 2009.  Of the $51 million in 2010 mark-to-market gains, $26 million related to positions that settled or will settle in 2010, and the remaining $25 million related to positions that will settle in 2011 and beyond. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| ·   | On March 29, 2010, the EPA and the Department of Transportation issued a final joint rule that will regulate GHG emissions from passenger cars and light trucks.  The rule establishes a fleet-wide average CO2 emission standard for cars and trucks, and will take effect on January 2, 2011. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The EPA proposed to “phase in” new GHG emissions applicability thresholds for its PSD permit program and for the operating permit program under Title V of the CAA.  PSD permits for new major sources of GHG, and for GHG sources that undergo major modification on or after January 2, 2011, will be required to implement BACT for the control of GHG emissions. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                                                             |   | As of and for theThree Months Ended March 31, 2010 |    |
|----------------------------------------------------------------------------------|--------|----------------------------------------------------|---------|
|                                                                             |   | (in millions)                                      |    |
| Balance Sheet Risk-Management Accounts                                           |   |                                               |    |
| Fair value of portfolio at December 31, 2009                                     |   | $                                                  | (33     | ) |
| Risk-management gains recognized through the income statement in the period, net |   |                                               | 299     |   |
| Cash received related to risk-management contracts settled in the period, net    |   |                                               | (46     | ) |
| Changes in fair value as a result of a change in valuation technique (1)         |   |                                               | — |   |
| Non-cash adjustments and other (2)                                               |   |                                               | 50      |   |
|                                                                             |   |                                               |    |   |
| Fair value of portfolio at March 31, 2010                                        |   | $                                                  | 270     |   |

| (1)   | Our modeling methodology has been consistently applied. |
|-----------------|---------------------------------------------------------|

| (2)   | Reflects the reduction of $50 million of risk management activity as of January 1, 2010 due to the deconsolidation of PPEA Holding.  Please read Note 1—Accounting Policies—Accounting Policies Adopted—Variable Interest Entities for further discussion. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                   |   | Total         |   |   | 2010   |   |   | 2011   |   |   | 2012   |   |   | 2013   |   |   | 2014   |   |    | Thereafter |   |
|------------------------|--------|---------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|---------|------------|--------|
|                   |   | (in millions) |   |
| Market quotations (1)  |   | $             | 175    |   |   | $      | 122    |   |   | $      | 67     |   |   | $      | (14    | )      |   | $      | — |       |   | $ | — |   |   | $ | — |   |
| Prices based on models |   |          | 95     |   |   |   | 67     |   |   |   | 30     |   |   |   | (6     | )      |   |   | 1       |       |   |   | 1 |   |   |   | 2 |   |
|                   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |    |       |   |   |   |   |   |   |   |   |
| Total (2)              |   | $             | 270    |   |   | $      | 189    |   |   | $      | 97     |   |   | $      | (20    | )      |   | $      | 1       |       |   | $ | 1 |   |   | $ | 2 |   |

| (1)   | Prices obtained from actively traded, liquid markets for commodities. |
|-----------------|-----------------------------------------------------------------------|

| (2)   | The market quotations and prices based on models categorization differs from the fair value accounting standards’ categories of Level 1, Level 2 and Level 3 due to the application of the different methodologies.  Please see Note 6—Fair Value Measurements for further discussion. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| ·   | the timing and anticipated benefits to be achieved through our 2010-2013 company-wide cost savings program; |
|--------------------|-------------------------------------------------------------------------------------------------------------|

| ·   | beliefs and assumptions relating to liquidity, available borrowing capacity and capital resources generally; |
|--------------------|--------------------------------------------------------------------------------------------------------------|

| ·   | expectations regarding environmental matters, including costs of compliance, availability and adequacy of emission credits, and the impact of ongoing proceedings and potential regulations or changes to current regulations, including those relating to climate change, air emissions, cooling water intake structures, coal combustion byproducts, and other laws and regulations to which we are, or could become, subject; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | beliefs about the overall economy, demand for power, commodity pricing and generation volumes; |
|--------------------|------------------------------------------------------------------------------------------------|

| ·   | anticipated liquidity in the regional power and fuel markets in which we transact, including the extent to which such liquidity could be affected by poor economic and financial market conditions or new regulations and any resulting impacts on financial institutions and other current and potential counterparties; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | sufficiency of, access to and costs associated with coal, fuel oil and natural gas inventories and transportation thereof, including our efforts to contract for coal volumes beyond 2010; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | beliefs and assumptions about market competition, generation capacity and regional supply and demand characteristics of the wholesale power generation market, including the anticipation of higher market pricing over the longer term; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | the effectiveness of our strategies to capture opportunities presented by changes in commodity prices and to manage our exposure to energy price volatility; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | beliefs and assumptions about weather and general economic conditions; |
|--------------------|------------------------------------------------------------------------|

| ·   | projected operating or financial results, including anticipated cash flows from operations, revenues and profitability; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------|

| ·   | expectations regarding our revolver capacity, credit facility compliance, financial covenants, collateral demands, capital expenditures, interest expense and other payments; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | beliefs or expectations regarding the potential amendment, extension or refinancing of our Credit Facility; |
|--------------------|-------------------------------------------------------------------------------------------------------------|

| ·   | our focus on safety and our ability to efficiently operate our assets so as to maximize our revenue generating opportunities and operating margins; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | beliefs about the outcome of legal, regulatory, administrative and legislative matters; and |
|--------------------|---------------------------------------------------------------------------------------------|

| ·   | expectations and estimates regarding capital and maintenance expenditures, including the Midwest Consent Decree and its associated costs. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------|

Item 3—QUANTITATIVE AND QUALITATIVE 

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|                                                                      |   | March 31,2010 |   |   | December 31,2009 |   |
|---------------------------------------------------------------------------|--------|---------------|--------|--------|------------------|--------|
|                                                                      |   | (in millions) |   |
| One day VaR—95 percent confidence level                             |   | $             | 26     |   |             | $      | 41 |   |
| One day VaR—99 percent confidence level                             |   | $             | 37     |   |             | $      | 57 |   |
| Average VaR for the year-to-date period—95 percent confidence level |   | $             | 33     |   |             | $      | 34 |   |

|                                 |   | InvestmentGrade Quality |   |   | Non-Investment Grade Quality |   |    | Total  |   |
|--------------------------------------|--------|-------------------------|--------|--------|------------------------------|--------|---------|--------|--------|
|                                 |   | (in millions)           |   |
| Type of Business:                    |   |                    |   |   |                         |   |    |   |   |
| Financial institutions               |   | $                       | 64     |   |                         | $      | — |   |   | $ | 64 |   |
| Utility and power generators         |   |                    | 16     |   |                         |   | — |   |   |   | 16 |   |
| Commercial, industrial and end users |   |                    | 4      |   |                         |   | 13      |   |   |   | 17 |   |
|                                 |   |                    |   |   |                         |   |    |   |   |   |   |   |
| Total                                |   | $                       | 84     |   |                         | $      | 13      |   |   | $ | 97 |   |

|                                                                 |   | March 31,2010 |   |   | December 31,2009 |   |
|----------------------------------------------------------------------|--------|---------------|--------|--------|------------------|--------|
| Fair value hedge interest rate swaps (in millions of U.S. dollars)   |   | $             | 25     |   |             | $      | 25 |   |
| Fixed interest rate received on swaps (percent)                      |   |          | 5.70   |   |             |   | 5.70 |   |
| Interest rate risk-management contract (in millions of U.S. dollars) |   | $             | 231    |   |             | $      | 784 |   |
| Fixed interest rate paid on swaps (percent)                          |   |          | 5.35   |   |             |   | 5.33 |   |
| Interest rate risk-management contract (in millions of U.S. dollars) |   | $             | 206    |   |             | $      | 206 |   |
| Fixed interest rate received on swaps (percent)                      |   |          | 5.28   |   |             |   | 5.28 |   |

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Item 4—CONTROLS AND PROCEDURES

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Item 1—LEGAL PROCEEDINGS

Item 1A—RISK FACTORS—

Item 2—UNREGISTERED 

| Period        |   | (a)Total Number of Shares Purchased |    |   | (b)AveragePrice Paidper Share |   |    | (c)Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs |   |   | (d)Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs |   |
|---------------|--------|-------------------------------------|---------|--------|-------------------------------|--------|---------|-------------------------------------------------------------------------------------|--------|--------|-----------------------------------------------------------------------------------|--------|
| January 1-31  |   |                                | 1,265   |   |                          | $      | 1.81    |                                                                                |   |   | —                                                                           |   |   |   | N/A |   |
| February 1-28 |   |                                | — |   |                          | $      | — |                                                                                |   |   | —                                                                           |   |   |   | N/A |   |
| March 1-31    |   |                                | 101,185 |   |                          | $      | 1.46    |                                                                                |   |   | —                                                                           |   |   |   | N/A |   |
|          |   |                                |    |   |                          |   |    |                                                                                |   |   |                                                                              |   |   |   |   |   |
| Total         |   |                                | 102,450 |   |                          | $      | 1.47    |                                                                                |   |   | —                                                                           |   |   |   | N/A |   |

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Item 6—EXHIBITS—DYNEGY 

| ExhibitNumber  |   | Description                                                                                                                                                                                                                             |
|----------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.1           |   | Form of Performance Award Agreement with Bruce A. Williamson, dated March 3, 2010 (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K of Dynegy Inc. filed on March 5, 2010, File No. 1-33443).                |
| 10.2           |   | Form of Performance Award Agreement, dated March 3, 2010 (incorporated by reference to Exhibit 10.2 to the Current Report on Form 8-K of Dynegy Inc. filed on March 5, 2010, File No. 1-33443).                                         |
| 10.3           |   | Form of Restricted Stock Award Agreement with Bruce A. Williamson, dated March 3, 2010 (incorporated by reference to Exhibit 10.3 to the Current Report on Form 8-K of Dynegy Inc. filed on March 5, 2010, File No. 1-33443).           |
| 10.4           |   | Form of Restricted Stock Award Agreement, dated March 3, 2010 (incorporated by reference to Exhibit 10.4 to the Current Report on Form 8-K of Dynegy Inc. filed on March 5, 2010, File No. 1-33443).                                    |
| 10.5           |   | Form of Non-Qualified Stock Option Award Agreement with Bruce A. Williamson, dated March 3, 2010 (incorporated by reference to Exhibit 10.5 to the Current Report on Form 8-K of Dynegy Inc. filed on March 5, 2010, File No. 1-33443). |
| 10.6           |   | Form of Non-Qualified Stock Option Award Agreement, dated March 3, 2010 (incorporated by reference to Exhibit 10.6 to the Current Report on Form 8-K of Dynegy Inc. filed on March 5, 2010, File No. 1-33443).                          |
| 10.7           |   | First Amendment to the 2009 Form of Performance Award Agreement, effective as of March 3, 2010 (incorporated by reference to Exhibit 10.7 to the Current Report on Form 8-K of Dynegy Inc. filed on March 5, 2010, File No. 1-33443).   |
| **31.1         |   | Chief Executive Officer Certification Pursuant to Rule 13a-14(a) and 15d-14(a), As Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                                                                   |
| **31.1(a)      |   | Chief Executive Officer Certification Pursuant to Rule 13a-14(a) and 15d-14(a), As Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                                                                   |
| **31.2         |   | Chief Financial Officer Certification Pursuant to Rule 13a-14(a) and 15d-14(a), As Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                                                                   |
| **31.2(a)      |   | Chief Financial Officer Certification Pursuant to Rule 13a-14(a) and 15d-14(a), As Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                                                                   |
| †32.1    |   | Chief Executive Officer Certification Pursuant to 18 United States Code Section 1350, As Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.                                                                             |
| †32.1(a) |   | Chief Executive Officer Certification Pursuant to 18 United States Code Section 1350, As Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.                                                                             |
| †32.2    |   | Chief Financial Officer Certification Pursuant to 18 United States Code Section 1350, As Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.                                                                             |
| †32.2(a) |   | Chief Financial Officer Certification Pursuant to 18 United States Code Section 1350, As Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.                                                                             |

|   | † | Pursuant to Securities and Exchange Commission Release No. 33-8238, this certification will be treated as “accompanying” this report and not “filed” as part of such report for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or the Exchange Act, or otherwise subject to the liability of Section 18 of the Exchange Act, and this certification will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act. |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|               |   | DYNEGY INC.                                                                                                                   |
|--------------------|--------|-------------------------------------------------------------------------------------------------------------------------------|
|               |   |                                                                                                                          |
| Date: May 10, 2010 | By:    | /s/    HOLLI C. NICHOLS                                                                                   |
|               |   | Holli C. NicholsExecutive Vice President and Chief Financial Officer(Duly Authorized Officer and Principal Financial Officer) |

|               |   | DYNEGY HOLDINGS INC.                                                                                                          |
|--------------------|--------|-------------------------------------------------------------------------------------------------------------------------------|
|               |   |                                                                                                                          |
| Date: May 10, 2010 | By:    | /s/    HOLLI C. NICHOLS                                                                                   |
|               |   | Holli C. NicholsExecutive Vice President and Chief Financial Officer(Duly Authorized Officer and Principal Financial Officer) |

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