Document:

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                                                                   EXHIBIT 10.43

                                (NRG LETTERHEAD)

January 30, 2003

Mr. Ershel Redd Jr.
Senior Vice President, Commercial Operations
NRC Energy, Inc.
901 Marquette Avenue
Suite 2500
Minneapolis, MN 55402

Dear Ershel:

I refer you to my employment offer letter to you dated October 8, 2002, and
countersigned by you on October 9, 2002 ("Offer Letter") and specifically to the
"Severance Benefit" provision therein.

As is set forth in that Severance Benefit provision, NRG Energy, Inc. ("NRG")
recognizes that as of the time you were still employed by Xcel Energy, Inc., you
were eligible for benefits under the Xcel Energy Business Unit Vice President
Severance Plan (the "Plan") and that you agreed to withdraw from eligibility
under the Plan upon your commencement of employment with NRG and in
consideration for the benefits set forth in the Severance Benefit provision of
the Offer Letter. A copy of the Plan is appended hereto as Exhibit 1.

NRG has not adopted the Plan and does not hereby adopt the Plan. However, in
keeping with the intentions set forth in the Offer Letter, and for good and
valuable consideration herein acknowledged by NRG and Xcel Energy, Inc., NRG
does hereby agree that it shall -- in your case alone and without adopting the
Plan -- assume all of the obligations set forth in the Plan as if you, Ershel
Redd alone were the "Participant" and "Employee" under the Plan and NRG were the
"Employer," "Corporation" and "Company" under the terms of the Plan.
Specifically, NRG hereby incorporates all of the terms of the Plan into its
Employment relationship with you, as if NRG were the "Employer," "Corporation"
and "Company therein and you were the "Participant" and "Employee" therein.
Please note, however, that for your purposes we have substituted a new Exhibit A
-- Form of Release Agreement as an attachment to the Plan, and it is this
substituted Exhibit A which you will have to execute and not revoke in order to
receive the Severance Benefits contemplated herein.

In further keeping with the intent of the Severance Benefit provision of the
Offer Letter, and in my capacity as an officer of Xcel Energy, Inc., by my
separate signature below Xcel Energy, Inc., hereby guarantees that in the event
and to the extent NRG fails to provide you all benefits under the Plan it hereby
promises you, Xcel Energy, Inc. guarantees that it shall provide those promised
benefits to you.

<PAGE>

Mr. Ershel Redd
January 30, 2003
Page 2

Ershel, in order to confirm your agreement to these terms, please execute and
return to Denise Wilson an original version of this letter agreement in the
envelope attached.

Sincerely,

/s/ RICHARD C. KELLY

Richard C. Kelly
President and COO
NRG Energy, Inc

With respect to the guarantee set forth above:

/s/ RICHARD C. KELLY

Richard C. Kelly
Vice President and CFO
Xcel Energy, Inc.

-----------------------------------------                   -----------------
Ershel Redd Jr.                                                    Date

<PAGE>
                                                                       EXHIBIT 1

             XCEL ENERGY BUSINESS UNIT VICE PRESIDENT SEVERANCE PLAN

                                    ARTICLE I
                              ESTABLISHMENT OF PLAN

         As of the Effective Date, the Corporation hereby establishes a
separation compensation plan known as the Xcel Energy Business Unit Vice
President Severance Plan.

                                   ARTICLE II
                                   DEFINITIONS

         As used herein, the following words and phrases shall have the
following respective meanings unless the context clearly indicates otherwise.

                  (a) Annual Salary. The Participant's regular annual base
salary immediately prior to his or her termination of employment, including
compensation converted to other benefits under a flexible pay arrangement
maintained by the Corporation or deferred pursuant to a written plan or
agreement with the Corporation, but excluding overtime pay, allowances, premium
pay, compensation paid or payable under any Corporation long-term or short-term
incentive plan or any similar payment.

                  (b) Change in Control. The same meaning as given to it in,
Section 2, subsections (a) through (d) in the Xcel Energy Inc. Omnibus Incentive
Plan, as amended from time to time.

                  (c) Code. The Internal Revenue Code of 1986, as amended from
time to time.

                  (d) Corporation. Xcel Energy Inc. and any successor thereto.

                  (e) Date of Termination. The date on which a Participant
ceases to be an Employee.

                  (f) Effective Date. April 1, 2002.

                  (g) Employee. Any full-time, regular-benefit, non-bargaining
employee of an Employer. The term shall exclude all individuals employed as
independent contractors, temporary employees, other benefit employees,
non-benefit employees, leased employees, even if it is subsequently determined
that such classification is incorrect.

                  (h) Employer. The Corporation or a Subsidiary which has
adopted the Plan pursuant to Article V hereof.

                  (i) Participant. An individual who is designated as such
pursuant to Section 3.1.

<PAGE>

                  (j) Plan. The Xcel Energy Business Unit Vice President
Severance Plan.

                  (k) Release Agreement. An agreement substantially in the form
set forth in Exhibit A to this Plan, with such amendments as the Corporation
may determine to be necessary in order for such agreement to constitute a valid
release by the Participant in question of all claims described therein.

                  (l) Separation Benefits. The payments are benefits described
in Section 4.3 that are provided to qualifying Participants under the Plan.

                  (m) Separation Period. The period beginning on a Participant's
Date of Termination and ending upon expiration of one and one-half years.

                  (n) Subsidiary. Any corporation in which the Corporation,
directly or indirectly, holds a majority of the voting power of such
corporation's outstanding shares of capital stock.

                  (o) Target Annual Incentive. The Annual Incentive Award that
the Participant would have received for the year in which his or her Date of
Termination occurs, if the target goals had been achieved.

                                  ARTICLE III
                                  ELIGIBILITY

         3.1 PARTICIPATION. Employees classified in salary grade BVP shall be
Participants in the Plan.

         3.2 DURATION OF PARTICIPATION. A Participant shall only cease to be a
Participant in the Plan as a result of an amendment or termination of the Plan
complying with Article VII of the Plan, or when he or she ceases to be an
Employee of any Employer, unless, at the time he or she ceases to be an
Employee, such Participant is entitled to payment of a Separation Benefit as
provided in the Plan or there has been an event or occurrence described in
Section 4.2(a) which would enable the Participant to terminate employment and
receive a Separation Benefit. A Participant entitled to payment of a Separation
Benefit or any other amounts under the Plan shall remain a Participant in the
Plan until the full amount of the Separation Benefit and any other amounts
payable under the Plan have been paid to the Participant.

                                   ARTICLE IV
                              SEPARATION BENEFITS

         4.1 RIGHT TO SEPARATION BENEFIT. A Participant shall be entitled to
receive Separation Benefits in accordance with Section 4.3 if the Participant
ceases to be an Employee for any reason specified in Section 4.2(a).

                                      -2-
<PAGE>

         4.2 TERMINATION OF EMPLOYMENT.

                  (a} Terminations Which Give Rise to Separation Benefits Under
This Plan. Except as set forth in subsection (b) below, a Participant shall be
entitled to Separation Benefits if,

                           (i) The Participant ceases to be an Employee by
                  action of the Employer or any of its affiliates (excluding any
                  transfer to another employer); or

                           (ii) The Participant's position is eliminated without
                  a comparable position becoming available, or being offered to
                  the Participant; or

                           (iii) The Employee's Annual Salary is reduced by 10%
                  or more; or

                           (iv) The Employee is required to relocate to a
                  location greater than fifty miles from his or her current
                  working location; or

                           (v) The Employee ceases to be classified as a
                  Business Unit Vice President, and within the twelve month
                  period following such event, (i), (ii), (iii) or (iv) above
                  occurs.

                  (b) Terminations Which Do Not Give Rise to Separation Benefits
Under This Plan. If a Participant's employment is terminated for Cause, death,
disability, retirement, or a qualified sale of business (as those terms are
defined below), or voluntarily by the Participant in the absence of an event
described in subsection (a)(ii) of this Section 4.2, the Participant shall not
be entitled to Separation Benefits under the Plan.

                           (i) A termination for disability shall have occurred
                  where a Participant is terminated because of an illness or
                  injury and the Participant has become eligible to receive
                  long-term disability benefits under, or would have become so
                  eligible if such Participant were covered by, the
                  Corporation's long-term disability plan, as it exists at the
                  time of termination of employment.

                           (ii) A termination by retirement shall have occurred
                  where a Participant's termination is due to his voluntary
                  late, normal or early retirement under a pension plan
                  sponsored by his Employer or its affiliates, as defined in
                  such plan.

                           (iii) A termination for Cause shall have occurred
                  where a Participant is terminated because of:

                                    (A) the willful and continued failure of the
                           Participant to perform substantially the
                           Participant's duties with the

                                      -3-
<PAGE>

                           Corporation or one of its affiliates (other than any
                           such failure resulting from incapacity due to
                           physical or mental illness), after a written demand
                           for substantial performance is delivered to the
                           Participant by an elected officer of the Corporation
                           which specifically identifies the manner in which the
                           elected officer believes that the Participant has not
                           substantially performed the Participant's duties, or

                                    (B) the willful engaging by the Participant
                           in illegal conduct or gross misconduct which is
                           materially and demonstrably injurious to the
                           Corporation.

For purposes of this provision, no act or failure to act, on the part of the
Participant, shall be considered "willful" unless it is done, or omitted to be
done, by the Participant in bad faith or without reasonable belief that the
Participant's action or omission was in the best interests of the Corporation.
Any act or failure to act, based upon authority given pursuant to a resolution
duly adopted by the Board, or upon the advice of counsel for the Corporation,
shall be conclusively presumed to be done, or omitted to be done, by the
Participant in good faith and in the best interests of the Corporation.

         4.3 SEPARATION BENEFITS.

                  (a) If a Participant's employment is terminated in
circumstances entitling him to a separation benefit as provided in Section
4.2(a)(i), or if the circumstances under Section 4.2(a)(ii),(iii), or (iv) occur
and the Participant (or representative) notifies the Company in writing within
sixty days of such occurrence, and the Participant executes and does not revoke
a Release Agreement, the Participant's Employer shall pay such Participant,
within a reasonable and administratively practicable time following the Date of
Termination, or if later, upon the date such Release Agreement becomes
irrevocable, a cash lump sum as set forth in subsection (b) below and the
continued benefits set forth in subsection (c) below, subject to Section 4.6
below. For purposes of determining the benefits set forth in subsection (b) and
(c), if the termination of the Participant's employment is based upon a
reduction of the Participant's Annual Salary as described in subsection (iii) of
Section 4.2, such reduction shall be ignored.

                  (b) The cash lump sum referred to in Section 4.3(a) shall
equal the aggregate of the following amounts:

                           (i) the sum of, (1) the Participant's Annual Salary
                  through the Date of Termination to the extent not theretofore
                  paid, (2) the product of (x) the Target Annual Incentive and
                  (y) a fraction; the numerator of which is the number of days
                  in such year through the Date of Termination, and the
                  denominator of which is 365, and (3) any compensation
                  previously deferred by the Participant (together with any
                  accrued interest or earnings thereon) and any accrued but
                  unused Paid-Time-Off pay, in each case to the extent not
                  theretofore paid and in full satisfaction of the rights of the
                  Participant thereto;

                                      -4-
<PAGE>

                           (ii) an amount equal to the product of 1.5 times the
                  sum of (x) the Participant's Annual Salary, plus (y) the
                  Target Annual Incentive Award.

                           (iii) an amount equal to the difference between (a)
                  the actuarial equivalent of the benefit under the
                  Corporation's qualified defined benefit retirement plan (the
                  "Retirement Plan") and any excess or supplemental retirement
                  plans in which the Participant would receive if his or her
                  employment continued during the Separation Period, assuming
                  that the Participant's compensation during the Separation
                  Period would have been equal to his or her compensation as in
                  effect immediately before the termination or, if higher, on
                  the Effective Date, and (b) the actuarial equivalent of the
                  Participant's actual benefit (paid or payable), if any, under
                  the Retirement Plan as of the Date of Termination. The
                  actuarial assumptions used for purposes of determining
                  actuarial equivalence shall be no less favorable to the
                  Participant than the most favorable of those in effect under
                  the Retirement Plan on the Date of Termination and the
                  Effective Date; and

                           (iv) the sum of the additional contributions (other
                  than pre-tax salary deferral contributions by the Participant)
                  that would have been made or credited by the Company to the
                  Participant's accounts under each qualified defined
                  contribution plan and non-qualified supplemental executive
                  savings plan, if any, that covered the Participant on the date
                  the termination of employment occurred, determined by assuming
                  that:

                                    (A) The Participant's employment had
                           continued for the Separation Period;

                                    (B) The Participant's rate of compensation
                           being recognized by each plan immediately prior to
                           the Date of Termination had continued in effect
                           during the Separation Period;

                                    (C) In the case of matching contributions,
                           the Participant's rate of pre-tax salary deferral
                           contributions in effect for the last plan year
                           beginning prior to the Date of Termination had
                           remained in effect throughout the Separation Period;
                           and

                                    (D) In the case of discretionary
                           contributions by the Company, the Company continued
                           to make such contributions during the Separation
                           Period at the rate that applied to the most recent
                           plan year that ended prior to the Date of
                           Termination.

                  (c) The continued benefits referred to above shall be as
                      follows:

                  (i) During the Separation Period, the Participant and his
         family shall be provided with medical, dental, vision and life
         insurance benefits as if the Participant's employment had not been
         terminated;

                                      -5-
<PAGE>

         provided, however, that if the Participant becomes reemployed with
         another employer and is eligible to receive medical or other welfare
         benefits under another employer-provided plan, the medical and other
         welfare benefits described herein shall be secondary to those provided
         under such other plan during such applicable period of eligibility; and
         for purposes of determining eligibility (but not the time of
         commencement of benefits) of the Participant for retiree medical,
         dental, vision and life insurance benefits under the Corporation's
         plans, practices, programs and policies, the Participant shall be
         considered to have remained employed during the Separation Period and
         to have retired on the last day of such period;

                  (ii) The Corporation shall, at its sole expense as incurred,
         provide the Participant with outplacement services the scope and
         provider of which shall be selected by the Participant in his or her
         sole discretion (but at a cost to the Corporation of not more than
         $15,000);

                  (iii) The Corporation shall continue to provide the
         Participant with financial planning counseling benefits through the one
         year anniversary of the Date of Termination; on the same terms and
         conditions as were in effect immediately before the termination or, if
         more favorable, on the Effective Date and

                  (iv) The Corporation will pay the business unit vice president
         with his or her "flexible perquisite allowance" through the Separation
         Period. At the election of the Corporation, such amount may be paid as
         a lump sum;

To the extent any benefits described in this Section 4.3(c) cannot be provided
pursuant to the appropriate plan or program maintained for Employees, the
Employer shall provide such benefits outside such plan or program at no
additional cost (including without limitation tax cost) to the Participant.
Notwithstanding the foregoing, if a group insurance carrier refuses to provide
the coverage described in this Section 4.3(c) under its contract issued to the
Corporation, or if the Corporation reasonably determines tat the coverage
required under this Section 4.3(c) would cause a welfare plan sponsored by the
Corporation to violate any provision of the Code prohibiting discrimination in
favor of highly compensated employees or key employees, the Corporation will use
its best efforts to obtain for the Participant an individual insurance policy
providing comparable coverage. However, if the Corporation determines in good
faith that comparable coverage cannot be obtained for less than two times the
premium or premium equivalent for such coverage under the Corporation's welfare
plan or plans, the Corporation's sole obligation under this Section 4.3(c) with
respect to that coverage will be limited to paying the Participant a monthly
amount equal to two times the monthly premium or premium equivalent for that
coverage under the Corporation's plans.

         4.4 OTHER BENEFITS PAYABLE. The cash lump sum and continuing benefits
described in Section 4.3 above shall be payable in addition to, and not in lieu
of, all other accrued or vested or, earned but deferred compensation, rights,
options or other benefits which

                                      -6-
<PAGE>

may be owed to a Participant upon or following termination, including but not
limited to accrued Paid-Time-Off, vacation or sick pay, amounts or benefits
payable under any bonus or other compensation plans, stock option plan, stock
ownership plan, stock purchase plan, life insurance plan, health plan,
disability plan or similar or successor plan, except as provided in Section 4.6
below.

         4.5 LIMITATIONS ON PAYMENTS. In the event it shall be determined that
any Payment would be subject to the Excise Tax, then such Payment shall be
reduced to one dollar below the Safe Harbor Amount.

                  (a) Definitions. The following terms shall have the following
meanings for purposes of this Section 4.5.

                           (i) "Excise Tax" shall mean the excise tax imposed by
                  Section 4999 of the Code, together with any interest or
                  penalties imposed with respect to such excise tax.

                           (ii) A "Payment" shall mean any payment or
                  distribution in the nature of compensation to or for the
                  benefit of a Participant, whether paid or payable pursuant to
                  this Plan or otherwise.

                           (iii) The "Safe Harbor Amount" means the maximum
                  Parachute Value, as defined under Section 280G(b)(2) of the
                  Code, of all Payments that a Participant can receive without
                  any Payments being subject to the Excise Tax.

                           (iv) A "Separation Payment" shall mean a Payment paid
                  or payable pursuant to this Plan (disregarding this Section
                  4.5).

         4.6 CONDITIONS TO PAYMENT OBLIGATIONS.

                  (a) Except as provided in Section 4.6(b) below, the
obligations of the Corporation and the Employers to pay the Separation Benefits
shall be absolute and unconditional and shall not be affected by any
circumstances, including, without limitation, any set-off, counterclaim,
recoupment, defense or other right which the Corporation or any of its
Subsidiaries may have against any Participation.

                  (b) Notwithstanding any other provision of this Plan or any
other plan, program, practice or policy of any Employer: (i) any cash Separation
Benefits that a Participant becomes entitled to receive under Section 4.3(b) of
this Plan shall be reduced (but not below zero) by the aggregate amount of cash
severance, separation, or similar benefits that the Participant may be entitled
to receive under any other plan, program, policy, contract, agreement or
arrangement of any Employer (including without limitation the Xcel Energy Inc.
Senior Executive Severance Policy), except to the extent the Participant waives
his or her right thereto,

                                      -7-
<PAGE>

and by the aggregate amount of such cash benefits or pay in lieu of notice that
the Participant may be entitled to receive under applicable law; and (ii) any
continued benefits that a Participant becomes entitled to receive under Section
4.3(c) of this Plan shall be provided concurrently (not consecutively) with any
such benefits that such Participant may be entitled to receive under any other
plan, program, policy, contract, agreement or arrangement of any Employer or
applicable law (including without limitation the health continuation coverage
required by Section 4980B of the Code and Section 601 et seq. of the Employee
Retirement Income Security Act of 1974, as amended). In no event shall a
Participant be obligated to seek other employment or take any other action by
way of mitigation of the amounts payable to a Participant under any of the
provisions of this Plan, nor shall the amount of any payment hereunder be
reduced by any compensation earned by a Participant as a result of employment by
another employer, except as specifically provided in Section 4.3(c)(i).

                                    ARTICLE V
                             PARTICIPATING EMPLOYERS

         This Plan may be adopted by any Subsidiary of the Corporation. Upon
such adoption, the Subsidiary shall become an Employer hereunder and the
provisions of the Plan shall be fully applicable to the Employees of that
Subsidiary who are Participants pursuant to Section 3.1.

                                   ARTICLE VI
                            SUCCESSOR TO CORPORATION

         This Plan shall bind any successor of the Corporation, its assets or
its businesses (whether direct or indirect, by purchase, merger, consolidation
or otherwise), in the same manner and to the same extent that the Corporation
would be obligated under this Plan if no succession had taken place.

         In the case of any transaction in which a successor would not by the
foregoing provision or by operation of law be bound by this Plan, the
Corporation shall require such successor expressly and unconditionally to assume
and agree to perform the Corporation's obligations under this Plan, in the same
manner and to the same extent that the Corporation would be required to perform
if no such succession had taken place. The term "Corporation," as used in this
Plan, shall mean the Corporation as hereinbefore defined and any successor or
assignee to the business or assets which by reason hereof becomes bound by this
Plan.

                                   ARTICLE VII
                      DURATION, AMENDMENT AND TERMINATION

         7.1 DURATION. The Employer reserves the right to terminate this plan at
any time. Notwithstanding the foregoing, this Plan shall continue in full force
and effect and shall not terminate or expire until after all Participants who
become entitled to any payments hereunder shall have received such payments in
full and all payments and adjustments required to be made pursuant to Section
4.5 have been made.

         7.2 AMENDMENT. Except as provided in Section 7.1, the Plan shall not be
subject to amendment, change, substitution, deletion, revocation or termination
in any respect

                                      -8-
<PAGE>

which adversely affects the rights of Participants; provided, that this Plan may
be amended if and to the extent necessary to permit the use of the "pooling of
interests" accounting method with respect to the Combination (assuming that such
accounting method is otherwise applicable to the Combination).

         7.3 FORM OF AMENDMENT. The form of any amendment of the Plan shall be a
written instrument signed by a duly authorized officer or officers of the
Corporation, certifying that the amendment has been approved by the Board.

                                  ARTICLE VIII
                                 MISCELLANEOUS

         8.1 EMPLOYMENT STATUS. This Plan does not constitute a contract of
employment or impose on the Participant or the Participant's Employer any
obligation to retain the Participant as an Employee, to change the status of the
Participant's employment, or to change the Corporation's policies or those of
its Subsidiaries regarding termination of employment.

         8.2 CLAIM PROCEDURE. If an Employee or former Employee makes a written
request alleging a right to receive benefits under this Plan or alleging a right
to receive an adjustment in benefits being paid under the Plan, the Corporation
shall treat it as a claim for benefit. All claims for benefit under the Plan
shall be sent to the Human Resources Department of the Corporation and must be
received within 30 days after termination of employment. If the Corporation
determines that any individual who has claimed a right to receive benefits, or
different benefits, under the Plan is not entitled to receive all or any part of
the benefits claimed, it will inform the claimant in writing of its
determination and the reasons therefor in terms calculated to be understood by
the claimant. The notice will be sent within 90 days of the claim unless the
Corporation determines additional time, not exceeding 90 days, is needed. The
notice shall make specific reference to the pertinent Plan provisions on which
the denial is based, and describe any additional material or information is
necessary. Such notice shall, in addition, inform the claimant what procedure
the claimant should follow to take advantage of the review procedures set forth
below in the event the claimant desires to contest the denial of the claim. The
claimant may within 90 days thereafter submit in writing to the Corporation a
notice that the claimant contests the denial of his or her claim by the
Corporation and desires a further review. The Corporation shall within 60 days
thereafter review the claim and authorize the claimant to appear personally and
review pertinent documents and submit issues and comments relating to the claim
to the persons responsible for making the determination on behalf of the
Corporation. The Corporation will render its final decision with specific
reasons therefor in writing and will transmit it to the claimant within 60 days
of the written request for review, unless the Corporation determines additional
time, not exceeding 60 days, is needed, and so notifies the Participant. If the
Corporation fails to respond to a claim filed in accordance with the foregoing
within 60 days or any such extended period, the Corporation shall be deemed to
have denied the claim.

                                      -9-
<PAGE>

         8.3 VALIDITY AND SEVERABILITY. The invalidity or unenforceability of
any provision of the Plan shall not affect the validity or enforceability of any
other provision of the Plan, which shall remain in full force and effect, and
any prohibition or unenforceability in any jurisdiction shall not invalidate or
render unenforceable such provision in any other jurisdiction.

         8.4 GOVERNING LAW. The validity, interpretation, construction and
performance of the Plan shall in all respects be governed by the laws of
Minnesota, without reference to principles of conflict of law, except to the
extent pre-empted by federal law.

         8.5 WITHHOLDING. The Corporation may withhold from any and all amounts
payable under this Plan all federal, state, local and foreign taxes that may be
required to be withheld by applicable laws or regulations.

                                         XCEL ENERGY INC.

                                         11/12/02

                                         /s/ Cynthia L. Lesher
                                         -----------------------------
                                         By: Cynthia L. Lesher
                                         Chief Administrative Officer

                                      -10-
<PAGE>
                                                                      EXHIBIT A

                            FORM OF RELEASE AGREEMENT

         THIS AGREEMENT is entered into this ___ day of _________________,
______ by and between NRG Energy, Inc. and Xcel Energy Inc. (the "Company"), a
Delaware corporation, and employee name (the "Participant").

         WHEREAS, the Participant has become entitled to receive Separation
Benefits as defined in the Xcel Energy Business Unit Vice President Severance
Plan (the "Plan") on the condition that the Participant enter into this Release
Agreement (the "Agreement"); and

         WHEREAS, the Participant freely and willfully desires to enter into
this Agreement.

         NOW, THEREFORE, in consideration of the mutual covenants and other
valuable consideration, the Participant, intending to be legally bound, agrees
as follows:

         1. Acknowledgment.

         (a) The Participant understands and agrees that, in addition to the
Participant's below-described exposure to the Company's Confidential
Information or Trade Secrets, the Participant may, in her capacity as an
employee, at times have met with the Company's customers and suppliers, and that
as a consequence of using and associating with the Company's name, goodwill, and
professional reputation, the Participant has been in a position to develop
personal and professional relationships with the Company's past, current, and
prospective customers and suppliers. The Participant further acknowledges that
during the course and as a result of employment by the Company, the Participant
may have been provided certain specialized training or know-how. The Participant
understands and agrees that this goodwill and reputation, as well as the
Participant's knowledge of Confidential Information or Trade Secrets and
specialized training and know-how, could be used unfairly in competition against
the Company.

         (b) Accordingly, the Participant agrees that during the period of one
year after the Date of Termination (the "Covenant Period"), the Participant
shall not:

                  (i) Directly or indirectly own, manage, consult, associate
         with, operate, join, work for, control or participate in the ownership,
         management, operation or control of, or be connected in any manner
         with, any business (whether in corporate, proprietorship, or
         partnership form or otherwise), as more than a 10% owner in such
         business or member of a group controlling such business, which is
         engaged in any activity which competes with the business of the Company
         as conducted one (1) year prior to (and up through) the date of the
         Participant's termination of employment with the Company or which will
         compete with any proposed business activity of the Company in the
         planning stage on such date of termination. The Participant and the
         Company agree that this provision is reasonably enforced as to any
         geographic area.

<PAGE>

                  (ii) Directly or indirectly solicit, service, contract with,
         or otherwise engage any past (one (1) year prior), existing or
         prospective customer, client, or account who then has a relationship
         with the Company for current or prospective business on behalf of an
         individual or entity that is engaged in a competing business, or on the
         Participant's own behalf for a competing business;

                  (iii) Cause or attempt to cause any existing or prospective
         customer, client, or account, who then has a relationship with the
         Company for current or prospective business, to divert, terminate,
         limit or in any manner modify, or fail to enter into any actual or
         potential business relationship with the Company; and the Participant
         and the Company agree that this clause (iii) is reasonably enforced
         with reference to any geographic area applicable to such relationships
         with the Company; and

                  (iv) Directly or indirectly solicit, employ or conspire with
         others to employ any of the Company's employees; the term "employ" for
         purposes of this clause (iv) meaning to enter into an arrangement for
         services as a full-time or part-time employee, independent contractor,
         consultant, agent or otherwise; and the Participant and the Company
         agree that this clause (iv) is reasonably enforced as too any
         geographic area.

         (c) The Participant further agrees to inform any new employer or other
person or entity with whom the Participant enters into a business relationship
during the Covenant Period, before accepting such employment or entering into
such a business relationship, of the existence of this Agreement and give such
employer, person or other entity a copy of this Agreement.

             2. RETURN OF PROPERTY. The Participant agrees that upon the Date
of Termination, the originals and all copies of any and all documents (including
computer data, diskettes, programs, or printouts) that contain any customer
information, financial information, product information, or other information
that in any way relates to the Company, its products or services, its clients,
its suppliers, or other aspects of its business that are in the Participant's
possession shall be immediately returned to the Company. The Participant further
agrees to not retain any summary of such information. The Participant agrees to
return any of the Company's equipment in his or her possession.

         3. CONFIDENTIAL INFORMATION/TRADE SECRETS.

         (a) The Participant acknowledges that during the course and as a result
of his or her employment, the Participant may receive or otherwise have access
to, or contribute to the production of, Confidential Information or Trade
Secrets. "Confidential Information or Trade Secrets" means information that is
proprietary to or in the unique knowledge of the Company (including information
discovered or developed in whole or in part by the Participant); the Company's
business methods and practices; or information that derives independent economic
value, actual or potential, from not being generally known to, and not being
readily ascertainable by proper means by, other persons who can obtain economic
value from its disclosure or use, and is the subject of efforts that are
reasonable under the circumstances to maintain its secrecy. It includes, among
other things, strategies, procedures, manuals, confidential reports, lists of
clients,

                                      -2-
<PAGE>

customers, suppliers, past, current or possible future products or services, and
information concerning research, development, accounting, marketing, selling or
leases and the prices or charges paid by the Company's customers to the Company,
or by the Company to its suppliers. The Participant acknowledges her continuing
agreement to abide by the terms of the Company's Code of Conduct.

                  (b)      The Participant further acknowledges and appreciates
                  that any Confidential Information or Trade Secret constitutes
                  a valuable asset of the Company and that the Company intends
                  any such information to remain secret and confidential. The
                  Participant therefore specifically agrees that except to the
                  extent required by the Participant's duties to the Company or
                  as permitted by the express written consent of the Board of
                  Directors, the Participant shall never, either during
                  employment with the Company or at any time thereafter,
                  directly or indirectly use, discuss or disclose any
                  Confidential Information or Trade Secrets of the Company or
                  otherwise use such information to his or her own or a third
                  party's benefit.

         3A. NON-DISPARAGEMENT. The Participant agrees to refrain from making
any statements or communications which in any way allege that the Company acted
in any manner which is wrongful, tortious or unlawful or which gave rise to any
liability or fault. The Participant further agrees the he or she will not
disparage the Company or its employees in any manner. The Company agrees that
neither it, or its agents or employees will disparage the participant in any
manner.

         4. CONSIDERATION. The Participant and the Company agree that the above
provisions of this Agreement are reasonable and necessary for the protection of
the Company and its business. In exchange for the Participant's agreement to be
bound by the terms of this Agreement, the Company has provided the Participant
the Severance Benefits under the Plan. The Participant accepts and
acknowledges the adequacy of such consideration for this Agreement.

         5. REMEDIES FOR BREACH. The Participant acknowledges that a breach of
the above provisions of this Agreement will cause the Company irreparable harm
that would not be fully remedied by monetary damages. Accordingly, the
Participant agrees that the Company shall, in addition to the requirement to
return the Severance Benefits and any other Consideration to the Company and any
relief afforded by law, be entitled to injunctive relief. The Participant agrees
that both damages at law and injunctive relief shall be proper modes of relief
and are not to be considered alternative remedies.

         6. RELEASE.

         (a)  In consideration of the Separation Benefits, the Participant does
hereby fully and completely release and waive any and all claims, complaints,
causes of action or demands of whatever kind which the Participant has or may
have against the Company, Xcel Energy Inc. or NRG Energy, Inc. and their
predecessors, successors, subsidiaries and affiliates and all officers,
employees and agents of those persons and companies arising out of any actions,
conduct, decisions, behavior or events occurring to the date of his or her
execution of this Release of which the Participant is or has been made aware or
has been reasonably put on notice.

                                      -3-
<PAGE>

         (b) The Participant understands and accepts that this release
specifically covers but is not limited to any and all claims, complaints, causes
of action or demands of whatever kind which the Participant has or may have
against the above-referenced released parties relating in any way to the terms,
conditions and circumstances of his or her employment to date, whether based on
statutory, regulatory or common law claims for employment discrimination,
including but not limited to discrimination on the basis of race, color, sex,
age, national origin, handicap, religion or reprisal discrimination, arising
under the Federal Civil Rights Act of 1964, as amended, the 1866 Civil Rights
Act, 42 U.S.C 1981, the Americans with Disabilities Act, the Rehabilitation Act
of 1973, the Worker Adjustment and Retraining Notification Act Executive Order
11246, the Age Discrimination in Employment Act, as amended, the Colorado Civil
Rights Act, Minnesota Human Rights Act, or any other administrative order,
federal or state statute or local ordinance, wrongful discharge, breach of
contract, breach of any express or implied promise, misrepresentation, fraud,
reprisal, retaliation, breach of public policy, infliction of emotional
distress, defamation, promissory estoppel, invasion of privacy, negligence, or
any other theory, whether legal or equitable; except that this release will not
impair any existing rights the Participant may have under any presently existing
pension, retirement or employee benefit plan of the Company.

         (c) By signing below, the Participant acknowledges that he or she fully
understands and accepts the terms of this release, and represents and agrees
that his or her signature is freely, voluntarily and knowingly given and that he
or she has been provided a full opportunity to review and reflect on the terms
of this release for at least twenty-one (21) days and to seek the advice of
legal counsel of his or her choice, which advice the Participant has been
encouraged to obtain.

         7. THE PARTICIPANT'S ACKNOWLEDGMENT OF REVIEW; RIGHT TO REVOKE.

         (a) The Participant represents that the Participant has carefully
read and fully understands all provisions of this Agreement and that the
Participant has had a full opportunity to review this Agreement before signing
and to have all the terms of this Agreement explained to him or her by counsel.

         (b) This Agreement may be revoked by the Participant by written notice
given to

                Scott Davido
                Senior Vice President and General Counsel
                NRG Energy, Inc.
                901 Marquette Avenue
                Suite 2300
                Minneapolis, MN 55402, or

                Gary Johnson
                Vice President and General Counsel
                Xcel Energy Inc.
                800 Nicollet Mall
                Suite 3000
                Minneapolis, MN 55402

                                       -4-
<PAGE>

Within fifteen (15) business days after being signed by the Participant.

         8. GENERAL PROVISIONS. The Participant and the Company acknowledge and
agree as follows:

         (a) This Agreement contains the entire understanding of the parties
with regard to all matters contained herein. There are no other agreements,
conditions, or representations, oral or written, express or implied, with regard
to such matters;

         (b) This Agreement may be amended or modified only by a writing signed
by both parties;

         (c) Waiver by either the Company or the Participant of a breach of any
provision, term or condition hereof shall not be deemed or construed as a
further or continuing waiver thereof or a waiver of any breach of any other
provision, term or condition of this Agreement;

         (d) This Agreement shall inure to the benefit of and be binding upon
the Company and its successors and assigns. The Company shall require any
successor (whether direct or indirect, by purchase, merger, consolidation or
otherwise) to all or substantially all of the business and/or assets of the
Company expressly to assume and agree to perform this Agreement in the same
manner and to the same extent that the Company would have been required to
perform it if no such succession had taken place. As used in this Agreement,
"the Company" shall mean the Company and its affiliates or assigns and any such
successor that assumes and agrees to perform this Agreement, by operation of law
or otherwise. No assignment of this Agreement shall be made by the Participant,
and any purported assignment shall be null and void;

         (e) If any court finds any provision or part of this Agreement to be
unreasonable, in whole or in part, such provision shall be deemed and construed
to be reduced to the maximum duration, scope or subject matter allowable under
applicable law. Any invalidation of any provision or part of this Agreement will
not invalidate any other part of this Agreement;

         (f) This Agreement will be construed and enforced in accordance with
the laws and legal principles of the State of Minnesota. The Participant
consents to the jurisdiction of the Minnesota courts for the enforcement of this
Agreement; and

         (g) This Agreement may be executed in one or more counterparts, each of
which shall be deemed to be an original, but all of which together will
constitute one and the same instrument.

                                      -5-
<PAGE>

THIS AGREEMENT IS INTENDED TO BE A LEGALLY BINDING DOCUMENT FULLY ENFORCEABLE IN
ACCORDANCE WITH ITS TERMS. IF IN DOUBT, SEEK COMPETENT LEGAL ADVICE BEFORE
SIGNING.

---------------------------------                       -----------------------
        First MI Last                                   Date

NRG ENERGY, INC.

By
  -------------------------------                       -----------------------
                                                        Date
  Its
     ----------------------------

Xcel Energy Inc.

By
  -------------------------------                       -----------------------
                                                        Date

  Its
     ----------------------------

The Participant acknowledges that he or she has received a copy of this
Agreement.

                                       -6-<PAGE>
                                                                   EXHIBIT 10.44

                           NRG EXECUTIVE OFFICER AND
                                  KEY PERSONNEL

                                 SEVERANCE PLAN

                                                                  WILLIAM PIEPER

<PAGE>

CONTENTS

<Table>
<S>        <C>                                                                 <C>
Article 1.  Establishment, Term, and Purpose .................................. 1
Article 2.  Definitions ....................................................... 1
Article 3.  Participation ..................................................... 4
Article 4.  Severance Benefits Other Than Upon Change in Control .............. 4
Article 5.  Severance Benefits Upon Change in Control ......................... 6
Article 6.  Excise Tax ........................................................ 7
Article 7.  Outplacement Assistance ........................................... 9
Article 8.  The Company's Payment Obligation .................................. 9
Article 9.  Withholding ....................................................... 9
Article 10. Non-Competition Other Than Upon Change in Control ................. 9
Article 11. Non-Disparagement .................................................11
Article 12. Successors and Assignment .........................................11
Article 13. Miscellaneous .....................................................11
</Table>

                                       i
<PAGE>

NRG ENERGY, INC.
EXECUTIVE OFFICER AND KEY PERSONNEL SEVERANCE PLAN

ARTICLE 1. ESTABLISHMENT, TERM, AND PURPOSE

      1.1 ESTABLISHMENT OF THE PLAN. NRG Energy, Inc., (hereinafter referred to
as the "Company"), hereby establishes a seVerance plan to be known as the NRG
Executive Officer and Key Personnel Severance Plan (the "Plan"). The Plan
provides severance benefits to certain executive officers and key personnel (the
"Participants") of the Company upon a termination of employment from the
Company, including termination of employment as a result of a Change in Control
of the Company. The Plan is intended to supersede any and all plans, programs,
or agreements providing for severance-related payments. This specifically
includes, but is not limited to, the NRG and NSP Employment Agreements for
Executive Officers which the Company has previously terminated.

      1.2 TERM OF THE PLAN. This plan shall be effective on the Effective Date
and shall remain in effect until the third anniversary of the Effective Date.
This plan shall thereafter automatically be renewed for successive one-year
terms each commencing on an Effective Date anniversary and ending on the day
immediately preceding the succeeding Effective Date anniversary.
Notwithstanding the foregoing, the Company may at any time and in its sole
discretion terminate this Plan at the end of the initial term or any renewal
term by giving the Participant six (6) months written notice prior to the end of
a term.

      1.3 PURPOSE OF THE PLAN. The purpose of the Plan is to provide certain
executive officers and key personnel of the Company financial security in the
event of a termination of employment from the Company, including termination of
employment as a result of a Change in Control of the Company.

ARTICLE 2. DEFINITIONS

      Whenever used in this Plan, the following terms shall have the meanings
set forth below:

      2.1 "BASE SALARY" means an amount equal to the Participant's base annual
salary as of the date of a termination. For this purpose, "Base Salary" shall
not include bonuses, long-term incentive compensation, or any remuneration other
than base annual salary.

      2.2 "BENEFICIAL OWNER" shall have the meaning ascribed to such term in
Rule 13d-3 of the General Rules and Regulations under the Exchange Act.

      2.3 "BENEFICIARY" means the persons or entities designated or deemed
designated by the Participant pursuant to Section 13.1 hereof.

      2.4 "BOARD" means the Board of Directors of the Company.

      2.5 "CAUSE" shall mean the occurrence of any one or more of the following
events:

                                        1

<PAGE>

      (a)   The willful (as defined in 2.5[c]) and continued failure by the
            Participant to substantially perform his normal duties (other than
            any such failure resulting from the Participant's Disability), after
            a written demand for substantial performance, signed by the CEO or
            the Participant's immediate supervisor, is delivered to the
            Participant, that identifies the manner in which the Participant has
            not substantially performed his duties, and the Participant has
            failed to remedy the situation within thirty (30) business days of
            receiving such notice; or

      (b)   The Participant's conviction for committing an act of fraud,
            embezzlement, theft, or other act constituting a felony; or the
            Participant's violation of the Company Code of Conduct; or

      (c)   The engaging by the Participant in willful, reckless or grossly
            negligent conduct materially and demonstrably injurious to the
            Company. However, no act, or failure to act on the Participant's
            part, shall be considered "willful, reckless or grossly negligent"
            unless done, or omitted to be done, by the Participant not in good
            faith and without reasonable belief that his action or omission was
            in the best interest of the Company.

      2.6 "CODE" means the United States Internal Revenue Code of 1986, as
amended.

      2.7 "CHANGE IN CONTROL" means a Change in Control as defined in the NRG
Energy, Inc. 2000 Long-Term Incentive Compensation Plan, which may be amended
from time to time as directed by the Board of Directors.

      2.8 "COMMITTEE" means the Compensation Committee of the Board, or any
other committee appointed by the Board to perform the functions of the
Compensation Committee.

      2.9 "COMPANY" means NRG Energy, Inc., a Delaware corporation (including
any and all subsidiaries), or any successor thereto as provided in Article 12
herein.

      2.10 "DISABILITY" means the definition provided in the NRG Energy, Inc.
2000 Long-Term Incentive Compensation Plan.

      2.11 "EFFECTIVE DATE" means January 15, 2001.

      2.12 "EFFECTIVE DATE OF TERMINATION" means the date on which a termination
occurs which triggers the payment of Severance Benefits or Change in Control
Severance Benefits hereunder.

      2.13 "EXCHANGE ACT" means the United States Securities Exchange Act of
1934, as amended.

      2.14 "GOOD REASON" means, without the Participant's express written
consent, the occurrence of any one or more of the following:

      (a)   Any material reduction in the Participant's Base Salary or Targeted
            Bonus Opportunity below the amount in effect as of the Change in
            Control Effective Date (including all increases following the Change
            in Control Effective Date).

                                       2
<PAGE>

      (b)   Any significant reduction in the Participant's benefits package,
            except in the case of a reduction, which similarly applies to all
            executives on a nondiscriminatory basis.

      (c)   Any material reduction in the Participant's long-term incentive
            opportunity with the Company.

      (d)   Any assignment of new duties that requires the Participant to
            relocate his domicile more than fifty (50) miles from the
            Participant's current work location.

      (e)   Any dissolution or liquidation of the Company.

      (f)   Any significant reduction or diminution in the duties,
            responsibilities, or position of the Participant from that in
            effect, as of the Effective Date (including subsequent increases in
            duties, responsibilities, or position), provided that the sale of a
            Company division will not automatically be deemed to result in the
            significant reduction or diminution in the duties, responsibilities,
            or position of the Participant without a specific showing of such
            reduction or diminution.

      (g)   Any significant increase in responsibility without corresponding
            compensation.

      The Participant's right to terminate employment for Good Reason shall not
      be affected by the Participant's incapacity due to Disability. The
      Participant's continued employment shall not constitute consent to, or a
      waiver of rights with respect to, any circumstance constituting Good
      Reason herein.

      2.15 "NOTICE OF TERMINATION" shall mean a written notice which shall
indicate the specific termination provision in this Plan relied upon, and shall
set forth in reasonable detail the facts and circumstances claimed to provide a
basis for termination of the Participant's employment under the provision so
indicated.

      2.16 "PARTICIPANT" means the executive officers (other than the CEO) and
key personnel as designated by the CEO.

      2.17 "PERSON" shall have the meaning ascribed to such term in Section
3(a)(9) of the Exchange Act and used in Sections 13(d) and 14(d) thereof,
including a "group" as defined in Section 13(d).

      2.18 "PLAN" means NRG Executive Officer and Key Personnel Severance Plan.

      2.19 "RETENTION PERIOD" means the period of time beginning on the
Effective Date of this Plan, and ending on the earlier to occur of: (a) the
termination of the Plan; or (b) six (6) months prior to the effective date of a
Change in Control. The retention period is only applicable in the event of
general severance.

      2.20 "RETIREMENT" means retirement as defined in the applicable NRG
Energy, Inc. and/or NSP/Xcel programs in which the Participant is eligible,
which may be amended from time to time as directed by the Board of Directors.

                                       3
<PAGE>

      2.21 "SEVERANCE BENEFITS" means the payment of severance compensation as
provided in Article 4 or 5 herein.

ARTICLE 3. PARTICIPATION

      All executive officers and key personnel as defined by CEO shall be
eligible to participate in the Plan.

ARTICLE 4. SEVERANCE BENEFITS OTHER THAN UPON CHANGE IN CONTROL

      4.1 RIGHT TO SEVERANCE BENEFITS. Subject to the provisions herein, the
Participant shall be entitled to receive from the Company Severance Benefits as
described in Section 4.2 herein, if, during the Retention Period, the
Participant's employment with the Company shall be terminated by the Company
without Cause or if the Participant terminates employment:

      (a)   within 3 months of a material change or reduction in the
            Participant's job responsibilities with the Company, unless such
            action is remedied by the Company promptly upon receipt of written
            notice thereof from Participant, or

      (b)   as a result of a material breach by the Company of the compensation
            or benefit terms of this Agreement, provided that the Participant
            has given the Company written notice of, and a reasonable
            opportunity to cure, such breach.

      The Participant shall not be entitled to receive Severance Benefits under
Section 4.2 hereof if he is terminated for Cause, or if his employment with the
Company ends due to death, Disability, Retirement, or due to a voluntary
termination of employment by the Participant.

      4.2 DESCRIPTION OF SEVERANCE BENEFITS. In the event that the Participant
becomes entitled to receive Severance Benefits, as provided in Section 4.1
herein, the Participant shall receive the following Severance Benefits:

      (a)   One and one-half (1.5) time(s) the sum of: (i) the Participant's
            Base Salary; and (ii) the greater of: (a) the Participant's average
            annual bonus earned over the two (2) full fiscal years prior to the
            Effective Date of Termination; or (b) the Participant's target
            annual bonus established for the bonus plan year in which the
            Participant's Effective Date of Termination occurs.

      (b)   An amount equal to the Participant's unpaid targeted annual
            incentive, established for the plan year in which the Participant's
            Effective Date of Termination occurs, multiplied by a fraction, the
            numerator of which is the number of days completed in the then
            existing fiscal year through the Effective Date of Termination, and
            the denominator of which is three hundred sixty-five (365).

      (c)   A net cash payment equivalent to the COBRA rates of the welfare
            benefits of medical insurance, dental insurance, and group term life
            insurance for a period of twelve (12) months. This cash payment
            shall be made in one lump sum (net of applicable withholding) as
            prospective reimbursement for the participant's COBRA coverage costs
            for the number of months stated.

                                       4
<PAGE>

            COBRA election and continuation enforced shall be the responsibility
            of the participant and/or qualified beneficiaries.

            In the event the premium cost shall change for all employees of the
            Company, the cost, likewise, shall change for the Participant in a
            corresponding manner.

      (d)   A cash payment of vacation earned prior to the Effective Date of
            Termination, but not taken by the Participant.

      (e)   Notwithstanding the provisions of the Long-term Incentive and
            Compensation Plan (including any options granted thereunder)
            regarding excercisability of options following termination of
            employment, in the event that the Participant receives general
            severance benefits under Article 4, options granted under the NRG
            Energy, Inc. Long-term Incentive and Compensation Plan prior to the
            termination date will continue to vest in accordance with the
            existing vesting schedule for a period of two (2) years following
            the termination date.

      4.3 TERMINATION DUE TO DISABILITY. If the Participant's employment is
terminated due to Disability during the term of this Plan, the Participant shall
receive his Base Salary and accrued vacation through the Effective Date of
Termination and continuation of the welfare benefits of medical insurance,
dental insurance, and group term life insurance shall be subject to the
treatment provided under the applicable disability plan of the Company.

      4.4 TERMINATION DUE TO RETIREMENT OR DEATH. If the Participant's
employment is terminated by reason of Retirement or death, the Participant or,
where applicable, the Participant's Beneficiaries, shall receive the
Participant's Base Salary and accrued vacation through the Effective Date of
Termination, and continuation of the welfare benefits of medical insurance,
dental insurance, and group term life insurance shall be subject to the
treatment provided under the applicable retirement plan of the Company.

      4.5 TERMINATION FOR CAUSE OR BY THE PARTICIPANT OTHER THAN FOR GOOD
REASON. If the Participant's employment is terminated either: (a) by the Company
for Cause; or (b) by the Participant other than for Good Reason, the Company
shall pay the Participant his unpaid Base Salary and accrued vacation through
the Effective Date of Termination, at the rate then in effect, plus all other
amounts to which the Participant is entitled under any compensation plans of the
Company, at the time such payments are due, and the Company shall have no
further obligations to the Participant under this Plan.

      4.6 NOTICE OF TERMINATION. Notice of Termination shall communicate any
termination by the Company for Cause or by the Participant for Good Reason at
least sixty (60) days prior to the date on which such termination shall be
effective. The Company can terminate the employment of the Participant with no
notice in which case the Company shall provide the Participant with continuation
of pay for sixty (60) days.

      4.7 FORM AND TIMING OF SEVERANCE BENEFITS. At the discretion of the
Company, all cash payments set forth in Section 4.2 shall be made as a
continuance of pay net of appropriate

                                       5
<PAGE>

withholdings, for the defined severance period, or in one (1) lump sum net of
appropriate withholdings, within forty-five (45) days after the Effective Date
of Termination.

ARTICLE 5. SEVERANCE BENEFITS UPON CHANGE IN CONTROL

      5.1 RIGHT TO CHANGE IN CONTROL SEVERANCE BENEFITS. The Participant shall
be entitled to receive from the Company Change in Control Severance Benefits, as
described in Section 5.2 herein, if there has been a Change in Control of the
Company and if, within the six (6) full calendar month period prior to the
effective date of a Change in Control, or within twelve (12) calendar months
following the effective date of a Change in Control, the Participant's
employment with the Company shall end as a result of either an involuntary
termination of the Participant's employment by the Company for reasons other
than Cause, or by voluntary termination by the Participant for Good Reason.

      The Participant shall not be entitled to receive Change in Control
Severance Benefits if he is terminated for Cause, or if his employment with the
Company ends due to death, Disability, or Retirement, or due to a voluntary
termination of employment by the Participant without Good Reason.

      5.2 DESCRIPTION OF CHANGE IN CONTROL SEVERANCE BENEFITS. In the event that
the Participant becomes entitled to receive Change in Control Severance
Benefits, as provided in Section 5.1 herein, the Company shall pay to the
Participant and provide him with the following:

      (a)   An amount equal to two and one-half (2.5) time(s) the sum of (i) the
            Participant's Base Salary; and (ii) the greater of: (a) the
            Participant's average annual bonus earned over the two (2) full
            fiscal years prior to the Effective Date of Termination; or (b) the
            Participant's target annual bonus established for the bonus plan
            year in which the Participant's Effective Date of Termination
            occurs.

      (b)   An amount equal to the Participant's unpaid targeted annual
            incentive, established for the plan year in which the Participant's
            Effective Date of Termination occurs, multiplied by a fraction, the
            numerator of which is the number of days completed in the then
            existing fiscal year through the Effective Date of Termination, and
            the denominator of which is three hundred sixty-five (365).

      (c)   A cash payment of vacation earned prior to the Effective Date of
            Termination, but not taken by the Participant.

      (d)   A net cash payment equivalent to the COBRA rates of the welfare
            benefits of medical insurance, dental insurance, and group term life
            insurance for a period of twelve (12) months. This cash payment
            shall be made in one lump sum (net of applicable withholding) as
            prospective reimbursement for the participant's COBRA coverage costs
            for the number of months stated.

            COBRA election and continuation enforced shall be the responsibility
            of the participant and/or qualified beneficiaries.

                                       6
<PAGE>

      (e)   All outstanding long-term incentive awards shall be subject to the
            treatment provided under the applicable long-term incentive plan of
            the Company.

      5.3 TERMINATION FOR DISABILITY. Following a Change in Control of the
Company, if the Participant's employment is terminated due to Disability during
the term of this Plan, the Participant shall receive his Base Salary and accrued
vacation through the Effective Date of Termination and continuation of the
welfare benefits of medical insurance, dental insurance, and group term life
insurance shall be subject to the treatment provided under the applicable
disability plan of the Company.

      5.4 TERMINATION FOR RETIREMENT OR DEATH. Following a Change in Control of
the Company, if the Participant's employment is terminated by reason of his
Retirement or death, the Participant or, where applicable, the Participant's
Beneficiaries, shall receive the Participant's Base Salary and accrued vacation
through the Effective Date of Termination, and continuation of the welfare
benefits of medical insurance, dental insurance, and group term life insurance
shall be subject to the treatment provided under the applicable retirement plan
of the Company.

      5.5 TERMINATION FOR CAUSE OR BY THE PARTICIPANT OTHER THAN FOR GOOD REASON
OR RETIREMENT. Following a Change in Control of the Company, if the
Participant's employment is terminated either: (i) by the Company for Cause; or
(ii) by the Participant (other than for Retirement) and other than for Good
Reason, the Company shall pay the Participant his full Base Salary and accrued
vacation through the Effective Date of Termination, at the rate then in effect,
plus all other amounts to which the Participant is entitled under any
compensation plans of the Company, at the time such payments are due, and the
Company shall have no further obligations to the Participant under this Plan.

      5.6 NOTICE OF TERMINATION. Notice of Termination shall communicate any
termination by the Company for Cause or by the Participant for Good Reason at
least sixty (60) days prior to the date on which such termination shall be
effective. The Company can terminate the employment of the Participant with no
notice in which case the Company shall provide the Participant with continuation
of pay for sixty (60) days.

      5.7 FORMS AND TIMING OF CHANGE IN CONTROL SEVERANCE BENEFITS. At the
discretion of the Company, all cash payments set forth in Section 5.2 shall be
made as a continuance of pay net of appropriate withholdings, for the defined
severance period, or in one (1) lump sum net of appropriate withholdings,
within forty-five (45) days after the Effective Date of Termination.

ARTICLE 6. EXCISE TAX

      6.1 EXCISE TAX EQUALIZATION PAYMENT. In the event that the Participant
becomes entitled to severance benefits or any other payment or benefit under
this Plan, or under any other agreement or plan of the Company (in the
aggregate, the "Total Payments"), if any of the Total Payments will be subject
to the tax (the "Excise Tax") imposed by Section 4999 of the Code (or any
similar tax that may hereafter be imposed), the Company shall pay to the
Participant in cash an additional amount (the "Gross-Up Payment") such that the
net amount retained by the Participant after deduction of any Excise Tax upon
the Total Payments and any federal, state and local income tax and Excise Tax
upon the Gross-Up Payment provided for by this Section 6.1 (including FICA and
FUTA), shall be equal to the Total Payments. Such payment shall be made by the
Company to the Participant as soon

                                       7
<PAGE>

as practical following the effective date of termination, but in no event beyond
forty-five (45) days from such date.

      6.2 TAX COMPUTATION. For purposes of determining whether any of the Total
Payments will be subject to the Excise Tax and the amounts of such Excise Tax:

      (a)   Any other payments or benefits received or to be received by the
            Participant in connection with a Change in Control of the Company or
            the Participant's termination of employment (whether pursuant to the
            terms of this Plan or any other plan, arrangement, or agreement with
            the Company, or with any person (which shall have the meaning set
            forth in Section 3(a)(9) of the Securities Exchange Act of 1934,
            including a "group" as defined in Section 13(d) therein) whose
            actions result in a Change in Control of the Company or any person
            affiliated with the Company or such persons) shall be treated as
            "parachute payments" within the meaning of Section 280G(b)(2) of the
            Code, and all "excess parachute payments" within the meaning of
            Section 280G(b)(l) shall be treated as subject to the Excise Tax,
            unless in the opinion of tax counsel as supported by the Company's
            independent auditors and acceptable to the Participant, such other
            payments or benefits (in whole or in part) do not constitute
            parachute payments, or unless such excess parachute payments (in
            whole or in part) represent reasonable compensation for services
            actually rendered within the meaning of Section 280G(b)(4) of the
            Code in excess of the base amount within the meaning of Section
            280G(b)(3) of the Code, or are otherwise not subject to the Excise
            Tax;

      (b)   The amount of the Total Payments which shall be treated as subject
            to the Excise Tax shall be equal to the lesser of: (i) the total
            amount of the Total Payments; or (ii) the amount of excess parachute
            payments within the meaning of Section 280G(b)(1) (after applying
            clause (a) above); and

      (c)   The value of any non-cash benefits or any deferred payment or
            benefit shall be determined by the Company's independent auditors in
            accordance with the principles of Sections 280G(d)(3) and (4) of the
            Code.

      For purposes of determining the amount of the Gross-Up Payment, the
Participant shall be deemed to pay federal income taxes at the highest marginal
rate of federal income taxation in the calendar year in which the Gross-Up
Payment is to be made, and state and local income taxes at the highest marginal
rate of taxation in the state and locality of the Participant's residence on the
effective date of termination, net of the maximum reduction in federal income
taxes which could be obtained from deduction of such state and local taxes.

      6.3 SUBSEQUENT RECALCULATION. In the event the Internal Revenue Service
adjusts the computation of the Company under Section 6.2 herein so that the
Participant did not receive the greatest net benefit, the Company shall
reimburse the Participant for the full amount necessary to make the Participant
whole, plus a market rate of interest, as determined by the Committee.

                                       8
<PAGE>

ARTICLE 7. OUTPLACEMENT ASSISTANCE

      Following a termination of employment in which Severance Benefits or
Change in Control Severance Benefits are payable hereunder, the Participant
shall be reimbursed by the Company for the costs of all outplacement services
obtained by the Participant within the two (2) year period after the Effective
Date of Termination; provided, however, that the total reimbursement shall be
limited to an amount equal to $10,000.

ARTICLE 8. THE COMPANY'S PAYMENT OBLIGATION

      8.1 PAYMENT OBLIGATIONS ABSOLUTE. The Company's obligation to make the
payments and the arrangements provided for herein shall be absolute and
unconditional, and shall not be affected by any circumstances, including,
without limitation, any offset, counterclaim, recoupment, defense, or other
right which the Company may have against the Participant or anyone else. All
amounts payable by the Company hereunder shall be paid without notice or demand.
Each and every payment made hereunder by the Company shall be final, and the
Company shall not seek to recover all or any part of such payment from the
Participant or from whomsoever may be entitled thereto, for any reasons
whatsoever.

      The Participant shall not be obligated to seek other employment in
mitigation of the amounts payable or arrangements made under any provision of
this Plan, and the obtaining of any such other employment shall in no event
effect any reduction of the Company's obligations to make the payments and
arrangements required to be made under this Plan, except to the extent provided
in Sections 4.2(c) and 5.2(d) herein.

      8.2 CONTRACTUAL RIGHTS TO BENEFITS. This Plan establishes and vests in the
Participant a contractual right to the benefits to which he is entitled
hereunder. However, nothing herein contained shall require or be deemed to
require, or prohibit or be deemed to prohibit, the Company to segregate,
earmark, or otherwise set aside any funds or other assets, in trust or
otherwise, to provide for any payments to be made or required hereunder.

ARTICLE 9. WITHHOLDING

      The Company shall be entitled to withhold from any amounts payable under
this Plan all taxes as legally shall be required (including, without limitation,
any United States federal taxes, and any other state, city, or local taxes).

ARTICLE 10. NON-COMPETITION OTHER THAN UPON CHANGE IN CONTROL

      10.1 PROHIBITION ON COMPETITION. Unless there has been a Change in
Control, the Participant agrees that during the course of the Participant's
employment with the Company, without the prior written consent of the Company,
and for one (1) year from the date of the Participant's voluntary or involuntary
termination of employment with the Company, the Participant shall not:

      (a)   Directly or indirectly own, manage, consult, associate with,
            operate, join, work for, control or participate in the ownership,
            management, operation or control of, or be connected in any manner
            with, any business (whether in corporate, proprietorship,

                                       9
<PAGE>

            or partnership form or otherwise), as more than a 10% owner in such
            business or member of a group controlling such business, which is
            engaged in any activity which competes with the business of the
            Company as conducted one (1) year prior to (and up through) the date
            of the Participant's involuntary or voluntary termination of
            employment with the Company or which will compete with any proposed
            business activity of the Company in the planning stage on such date
            of involuntary or voluntary termination. The participant and the
            Company agree that this provision is reasonably enforced as to any
            geographic area.

      (b)   Directly or indirectly solicit, service, contract with or otherwise
            engage any past (one year prior), existing or prospective customer,
            client, or account who then has a relationship with the Company for
            current or prospective business on behalf of a competitor of the
            Company, or on the Participant's own behalf for a competing
            business. The Participant and the Company agree that this provision
            is reasonably enforced with reference to any geographic area
            applicable to such relationships with the Company.

      (c)   Cause or attempt to cause any existing or prospective customer,
            client, or account, who then has a relationship with the Company for
            current or prospective business, to divert, terminate, limit or in
            any manner modify, or fail to enter into any actual or potential
            business relationship with the Company. The Participant and the
            Company agree that this provision is reasonably enforced with
            reference to any geographic area applicable to such relationships
            with the Company.

      (d)   The Company agrees that the terms "activity which competes with the
            business of the Company," "competitor of the Company," "competing
            business," and "relationship with the Company" as used in this
            Agreement shall be narrowly applied and that it is not the belief of
            the Company that all companies in the energy business are
            competitors of the Company. The Company further agrees that this
            Agreement shall not be so broadly construed that the Participant is
            prevented during the non-compete period from obtaining all other
            employment in the energy industry.

      10.2 DISCLOSURE OF INFORMATION. The Participant recognizes that he has
access to and knowledge of certain confidential and proprietary information of
the Company, which is essential to the performance of his duties as an employee
of the Company. The Participant will not, during or after the term of his
employment by the Company, in whole or in part, disclose such information to any
person, firm, corporation, association, or other entity for any reason or
purpose whatsoever, nor shall he make use of any such information for his own
purposes.

      10.3 COVENANTS REGARDING OTHER EMPLOYEES. During the period ending one (1)
year following the payment of Severance Benefits or Change in Control Severance
Benefits under this Plan, the Participant agrees to not directly or indirectly
solicit, employ or conspire with others to employ any of the Company's
employees. The term "employ" for purposes of this paragraph means to enter into
an arrangement for services as a full-time or part-time employee, independent
contractor, consultant, agent or otherwise. The Participant and the Company
agree that this provision is reasonably enforced as to any geographic area.

                                       10
<PAGE>

ARTICLE 11. NON-DISPARAGEMENT

      11.1 DISPARAGEMENT. The Participant and the Company, each agrees not to
make any disparaging or negative statements about the Company or the
Participant, including but not limited to its products, services or management
to any person or entity whatsoever, including but not limited to past, present
and prospective employees or employers, customers, clients, analysts, investors,
vendors and suppliers.

      11.2 RELEASE. In order to receive the severance benefits provided under
the Plan, the Participant will be required to provide the Company with a release
in a form to be provided by the Company. Such release shall fully release the
Company and all of its officers, agents, directors, employees, and
representatives, any affiliated companies, businesses or entities, and all other
persons and entities from each and every legal claim or demand of any kind that
the Participant ever had or might have arising out of any action, conduct or
decision taking place during the Participant's employment with the Company, or
arising out of the Participant's separation from that employment, whether or not
any such claim is known at the time of separation. The Company will provide the
Participant with a release in a form provided by the Company. Such release shall
release the Participant from each and every legal claim or demand excluding acts
of fraud, embezzlement, theft or other acts constituting a felony.

ARTICLE 12. SUCCESSORS AND ASSIGNMENT

      12.1 SUCCESSORS TO THE COMPANY. The Company will require any successor
(whether direct or indirect, by purchase, merger, consolidation, or otherwise)
of all or substantially all of the business and/or assets of the Company or of
any division or subsidiary thereof to expressly assume and agree to perform the
Company's obligations under this Plan in the same manner and to the same extent
that the Company would be required to perform them if no such succession had
taken place. Failure of the Company to obtain such assumption and agreement
prior to the effective date of any such succession shall be a breach of this
Plan and shall entitle the Participant to compensation from the Company in the
same amount and on the same terms as he would be entitled to hereunder if he had
terminated his employment with the Company voluntarily for Good Reason. Except
for the purposes of implementing the foregoing, the date on which any such
succession becomes effective shall be deemed the Effective Date of Termination.

      12.2 ASSIGNMENT BY THE PARTICIPANT. This Plan shall inure to the benefit
of and be enforceable by the Participant's personal or legal representatives,
executors, administrators, successors, heirs, distributees, devisees, and
legatees. If the Participant dies while any amount would still be payable to him
hereunder had he continued to live, all such amounts, unless otherwise provided
herein, shall be paid in accordance with the terms of this Plan, to the
Participant's Beneficiary. If the Participant has not named a Beneficiary, then
such amounts shall be paid to the Participant's devisee, legatee, or other
designee, or if there is no such designee, to the Participant's estate.

ARTICLE 13. MISCELLANEOUS

      13.1 BENEFICIARIES. The Participant may designate one or more persons or
entities as the primary and/or contingent Beneficiaries of any Severance
Benefits or Change in Control Severance

                                       11
<PAGE>

Benefits owing to the Participant under this Plan. Such designation must be in
the form of a signed writing acceptable to the Company. The Participant may make
or change such designations at any time.

      13.2 GENDER AND NUMBER. Except where otherwise indicated by the context,
any masculine term used herein also shall include the feminine, the feminine
shall include the masculine; the plural shall include the singular, and the
singular shall include the plural.

      13.3 SEVERABILITY. In the event any provision of this Plan shall be held
illegal or invalid for any reason, the illegality or invalidity shall not affect
the remaining parts of the Plan, and the Plan shall be construed and enforced as
if the illegal or invalid provision had not been included. Further, the captions
of this Plan are not part of the provisions hereof and shall have no force and
effect.

      13.4 MODIFICATION. No provision of this Plan may be modified, waived, or
discharged unless such modification, waiver, or discharge is agreed to in
writing and signed by the Participant and by an authorized member of the
Committee, or by the respective parties' legal representatives and successors.

      13.5 APPLICABLE LAW. To the extent not preempted by the laws of the United
States, the laws of the State of Minnesota, shall be the controlling law in all
matters relating to this Plan.

                                       William Pieper
                                       -----------------------------------------
                                       Participant's Name

                                           /s/ WILLIAM PIEPER
                                       -----------------------------------------
                                       Participant's Signature

                                               7/16/01
                                       -----------------------------------------
                                       Date

                                       NRG Energy, Inc.

                                       By: /s/ David H. Peterson
                                          --------------------------------------

                                       Title: Chairman, President and CEO
                                             -----------------------------------
                                       Date:  7/17/01
                                            ------------------------------------

                                       12

<PAGE>
                                                                      MEMORANDUM
(XCEL ENERGY LOGO)

                                                       Personal and Confidential

Date:        7/16/2002

To:          William Pieper

From:        David E. Ripka

Reference:   NRG Executive Officer and Key Personnel Severance Plan

Dear Bill:

This note is designed to recognize the extraordinary efforts you have given to
NRG Energy, Inc. (the "Company") over the past years. You have been key in the
management and financial operations of that organization, and your position has
placed you in many of the executive level benefits offered by NRG and Xcel
Energy Inc.

We value you and wish to count on you for your continued contribution in the
financial functions of the Company as it transitions to a wholly-owned
subsidiary of Xcel Energy Inc. We also realize that you may be contemplating
your role in the new organization, and weighing it against your eligibility for
an immediate benefit under Section 4.1 of the NRG Executive Officer and Key
Personnel Severance Plan due to a material change and reduction in your job
responsibilities that occurred on June 3, 2002. It is with this backdrop that I
am pleased to be able to offer you the opportunity to modify the terms of the
Severance Agreement you had entered into under the NRG Executive Officer and Key
Personnel Severance Plan (the "Plan").

Our offer to modify the Plan terms is as follows:

We will extend the time frame to assert a "material change or reduction in the
Participant's job responsibilities with the Company" for an additional 15 months
from the date of this memo. You, in turn, agree to not voluntarily terminate and
assert a severance eligibility claim against the Company for a 12-month period.
At the end of the 12-month period you will have 3 months to voluntarily
terminate and receive severance benefits as calculated under Section 4.2 of the
Plan.

The balance of the Severance Agreement will continue to remain in full force and
effect, but may in the future be modified with our mutual consent. If you
ultimately assert a severance claim and, for any reason, the Company fails or is
unable to fulfill its obligation under this agreement on a timely basis, Xcel
Energy Inc. agrees to pay any and all sums that have not been paid by the
Company (as if

<PAGE>

Xcel Energy Inc. were the primary obligor). In addition, we agree not to reduce
your base salary, perquisite allowance or target annual bonus during the term of
this agreement. We also agree that the severance benefit you will receive if you
ultimately assert a claim under this agreement will not be less than the amount
you would have received if you had voluntarily terminated as of the date of this
letter. I hope you agree that these modifications will allow you a better
opportunity to understand your role in Xcel Energy Inc.

If you agree with the modifications we have proposed, please indicate your
approval in the space below. Return the signed copy to my attention within the
next ten business days. I will have a countersigned copy returned to you. Thank
you in advance for your consideration.

Agreed to this 16th day of July, 2002.
              ------      -----

By: /s/ WILLIAM PIEPER
   ----------------------------------

Accepted on behalf of NRG Energy, Inc. and Xcel Energy Inc.

By: /s/ Eduard J. McIntyre
   ----------------------------------

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