Document:

<PAGE>

                                                                    EXHIBIT 4.10

                                                                  EXECUTION COPY

          -------------------------------------------------------------

                 AMENDED AND RESTATED SECURITY DEPOSIT AGREEMENT

                                      among

                         NRG PEAKER FINANCE COMPANY LLC
                                    (Issuer)

                        EACH PROJECT COMPANY PARTY HERETO
                               (Project Companies)

                              THE BANK OF NEW YORK
                               (Collateral Agent)

                                       and

                              THE BANK OF NEW YORK
                               (Depositary Agent)

                           DATED AS OF JANUARY 6, 2004

          -------------------------------------------------------------

<PAGE>

                                                                  EXECUTION COPY

                                TABLE OF CONTENTS
<TABLE>
<S>                                                                                    <C>
ARTICLE I.       DEFINITIONS; RULES OF INTERPRETATION...............................     2

         1.1     Common Agreement and UCC Definitions...............................     2
         1.2     Rules of Interpretation............................................     2

ARTICLE II.      ESTABLISHMENT AND ADMINISTRATION OF ACCOUNTS.......................     2

         2.1     Establishment of Accounts..........................................     2
         2.2     Agreement of Depositary Agent......................................     5
         2.3     Deposit of Funds...................................................     6
         2.4     Issuer Event of Default............................................     6
         2.5     Unspecified Funds; Insufficient Funds..............................     6
         2.6     Powers of Collateral Agent and Depositary Agent....................     6
         2.7     Valuation of Account Funds and Any Acceptable Letter of Credit.....     7
         2.8     Disputes...........................................................     7
         2.9     Account Statements; Other Information..............................     7

ARTICLE III.     SECURITY INTEREST; REMEDIES........................................     7

         3.1     Grant of Security Interest; Dominion and Control...................     7
         3.2     UCC Provisions.....................................................     8
         3.3     Entitlement Orders.................................................     8
         3.4     Other Liens; Adverse Claims........................................     9
         3.5     Further Assurances.................................................     9
         3.6     Location of Account Records........................................     9
         3.7     Remedies...........................................................     9

ARTICLE IV.      DEPOSITS INTO AND DISBURSEMENTS FROM ACCOUNTS......................    10

         4.1     Revenue Account....................................................    10
         4.2     Debt Payment Account...............................................    14
         4.3     Debt Service Reserve Account.......................................    16
         4.4     Intentionally Omitted..............................................    17
         4.5     Acquisition Indemnity/Performance LD Reserve Account...............    17
         4.6     Distribution Account...............................................    18
         4.7     Loss Proceeds Account..............................................    19
         4.8     Completion Account.................................................    23
         4.9     Peaker Collateralization Account...................................    23
         4.10    Major Maintenance Reserve Account..................................    24
         4.11    Corporate Services Payment Account.................................    25
         4.12    Operating Accounts.................................................    25
         4.13    Fuel Accounts......................................................    26
         4.14    NRG Claim Settlement Account.......................................    26
         4.15    Excess Cash Flow Account...........................................    27
         4.16    EMS Letter of Credit Account.......................................    27
</TABLE>

                                       i
<PAGE>

<TABLE>
<S>                                                                                    <C>
ARTICLE V.       PERMITTED INVESTMENTS; ACCEPTABLE LETTERS OF CREDIT................    28

         5.1     Permitted Investments..............................................    28
         5.2     Acceptable Letters of Credit:  EMS Letter of Credit................    29

ARTICLE VI.      DEPOSITARY AGENT...................................................    30

         6.1     Appointment; Powers and Immunities.................................    30
         6.2     Reliance by Depositary Agent.......................................    31
         6.3     Indemnification....................................................    32
         6.4     Resignation and Removal............................................    32
         6.5     Directions to Depositary Agent.....................................    33
         6.6     Payment of Fees and Expenses to Depositary Agent...................    33

ARTICLE VII.     MISCELLANEOUS......................................................    33

         7.1     Termination and Release............................................    33
         7.2     Notices............................................................    34
         7.3     Benefit of Agreement...............................................    36
         7.4     Delay and Waiver...................................................    36
         7.5     Amendments.........................................................    36
         7.6     Governing Law......................................................    36
         7.7     Consent to Jurisdiction............................................    36
         7.8     WAIVER OF JURY TRIAL...............................................    37
         7.9     Severability.......................................................    37
         7.10    Headings...........................................................    37
         7.11    Successors and Assigns.............................................    37
         7.12    Entire Agreement...................................................    37
         7.13    Consequential Damages..............................................    37
         7.14    Survival of Agreements.............................................    38
         7.15    Counterparts.......................................................    38
         7.16    Ownership of Account Funds.........................................    38
         7.17    Rights of Collateral Agent.........................................    39
</TABLE>

Exhibit A:  Form of Disbursement Request
Exhibit B:  Form of Acceptable Letter of Credit
Exhibit C:  Form of Fuel and Operating Accounts Disbursement Request
Exhibit D:  Form of Spare Parts Disbursement Request

                                       ii

<PAGE>

                                                                  EXECUTION COPY

                  This AMENDED AND RESTATED SECURITY DEPOSIT AGREEMENT, dated as
of January 6, 2004 (as amended, amended and restated, supplemented or otherwise
modified from time to time, this "Agreement"), is entered into among (1) NRG
PEAKER FINANCE COMPANY LLC, a Delaware limited liability company (the "Issuer"),
(2) BAYOU COVE PEAKING POWER, LLC, BIG CAJUN I PEAKING POWER LLC, NRG ROCKFORD
LLC, NRG ROCKFORD II LLC and NRG STERLINGTON POWER LLC (each a "Project
Company," collectively, the "Project Companies" and together with the Issuer,
the "Financing Parties"), (3) THE BANK OF NEW YORK, as collateral agent (the
"Collateral Agent"), and (4) THE BANK OF NEW YORK, as depositary agent hereunder
(the "Depositary Agent").

                                    RECITALS

WHEREAS:

                  A.       Reference is made to that certain Amended and
Restated Common Agreement, dated as of the date hereof (the "Common Agreement"),
among the Issuer, each of the Project Companies, XLCA, the Swap Counterparty,
the Trustee and the Collateral Agent, and to the original Common Agreement,
dated as of June 18, 2002 (the "Original Common Agreement"), among the Issuer,
each of the Project Companies, XLCA, the Swap Counterparty, the Original Trustee
and the Collateral Agent.

                  B.       Pursuant to that certain Indenture, dated as of June
18, 2002, the Issuer issued $325 million of Series A Floating Rate Senior
Secured Bonds due 2019 (the "Series A Bonds"). The full and timely payment of
regularly scheduled payments of principal and interest on the Series A Bonds is
unconditionally and irrevocably guaranteed by XLCA pursuant to that certain
Financial Guaranty Insurance Policy, dated as of June 18, 2002 (including the
endorsement thereto, the "Policy"), between XLCA and the Original Trustee.

                  C.       Reference is made to that certain ISDA Master
Agreement, dated as of June 18, 2002 (including the schedules, the credit
support annex and the confirmation thereto) (the "Swap Agreement"), between the
Issuer and Goldman Sachs Mitsui Marine Derivative Products, L.P. (the "Swap
Counterparty"). The full and timely payment of regularly scheduled net payments
due to the Swap Counterparty under the Swap Agreement is unconditionally and
irrevocably guaranteed by XLCA pursuant to that certain Financial Guaranty
Insurance Policy, dated as of June 18, 2002 (the "Swap Policy"), between XLCA
and the Swap Counterparty.

                  D.       Pursuant to the Common Agreement, each of the Project
Companies guarantees the payment by the Issuer of all of the Issuer's
obligations under (a) the Indenture and the Series A Bonds, (b) the Swap
Agreement and (c) that certain Financial Guaranty Insurance and Reimbursement
Agreement dated as of as of June 18, 2002 (the "Insurance and Reimbursement
Agreement"), among XLCA, the Issuer and the Project Companies.

                  E.       As a condition precedent to (a) the issuance of the
Series A Bonds, the Policy and the Swap Policy and (b) the execution of the Swap
Agreement by the Swap Counterparty, the parties hereto executed and delivered a
Security Deposit Agreement, dated as of June 18, 2002 (the "Original Depositary
Agreement").

<PAGE>

                  F.       On May 12, 2003, as a consequence of certain Issuer
Events of Default under the Original Common Agreement, XLCA, as Controlling
Party, declared and made all sums of accrued and outstanding principal, accrued
but unpaid interest and accrued but unpaid premium remaining under the Financing
Documents, together with all unpaid amounts, fees, costs and charges due under
any Financing Documents, immediately due and payable (the "Acceleration").

                  G.       On May 14, 2003, NRG Energy and certain of its
subsidiaries filed voluntary petitions for bankruptcy under Chapter 11 of the
United States Bankruptcy Code (the "NRG Bankruptcy").

                  H.       Following the Acceleration and the NRG Bankruptcy,
NRG Energy, NRG Power Marketing Inc., the Issuer, the Project Companies and XLCA
agreed to implement a financial restructuring of the Obligations (the
"Restructuring") substantially on the terms set forth in a Restructuring
Agreement, dated as of September 18, 2003, by and among NRG Energy, NRG Power
Marketing, the Issuer, the Project Companies and XLCA (the "Restructuring
Agreement").

                  I.       On October 1, 2003, the United States District Court
for the Southern District of New York entered an order (the "Approval Order") in
the NRG Bankruptcy authorizing and approving the transactions provided in the
Restructuring including the execution and delivery of this Agreement by the
parties hereto. The Approval Order became a Final Order (as defined in the
Restructuring Agreement) on October 11, 2003.

                  J.       It is a condition precedent to the consummation of
the Restructuring that the parties hereto shall have executed and delivered this
Agreement.

                  NOW, THEREFORE, in consideration of the premises contained
herein and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged and as an inducement to the
consummation of the Restructuring, the Financing Parties hereby agree with the
Collateral Agent, for the benefit of the Secured Parties and the Depositary
Agent as follows:

                                   ARTICLE I.
                      DEFINITIONS; RULES OF INTERPRETATION

         1.1      Common Agreement and UCC Definitions. Unless otherwise defined
herein or unless the context otherwise requires, terms used in this Agreement
have the meanings provided in Annex A to the Common Agreement or, if not defined
therein, the UCC.

         1.2      Rules of Interpretation. Unless otherwise provided herein, the
rules of interpretation set forth in Annex A to the Common Agreement shall apply
to this Agreement.

                                  ARTICLE II.
                  ESTABLISHMENT AND ADMINISTRATION OF ACCOUNTS

         2.1      Establishment of Accounts. Each Financing Party hereby directs
the Depositary Agent to establish on or prior to the Closing Date and maintain
until the termination of this

                                       2

<PAGE>

Agreement in accordance with Section 7.1 or as otherwise expressly set forth
herein, at its office located at 101 Barclay Street, New York, NY 10286, the
following special, segregated and irrevocable non-interest bearing trust
accounts (collectively, including any sub-accounts contained therein, the
"Accounts"), in the name of the Issuer but under the exclusive dominion and
control of the Collateral Agent as contemplated by Section 3.1:

<TABLE>
<CAPTION>
     Name of Account at Depositary Agent          Account Number      Defined Term for Account
----------------------------------------------    --------------    ---------------------------
<S>                                               <C>               <C>
NRG Peaker Finance Company LLC Acquisition             269087       "Acquisition
Indemnity/Performance LD Reserve Account                            Indemnity/Performance LD
Subject to the Security Interest of The Bank                        Reserve Account"
of New York, as Collateral Agent
-----------------------------------------------------------------------------------------------
NRG Peaker Finance Company LLC Bayou Cove Fuel         269526       "Bayou Cove Fuel Account"
Account Subject to the Security Interest of
The Bank of New York, as Collateral Agent
-----------------------------------------------------------------------------------------------
NRG Peaker Finance Company LLC Bayou Cove              269527       "Bayou Cove Operating
Operating Account Subject to the Security                           Account"
Interest of The Bank of New York, as
Collateral Agent
-----------------------------------------------------------------------------------------------
NRG Peaker Finance Company LLC Big Cajun Fuel          269528       "Big Cajun Fuel Account"
Account Subject to the Security Interest of
The Bank of New York, as Collateral Agent
-----------------------------------------------------------------------------------------------
NRG Peaker Finance Company LLC Big Cajun               269529       "Big Cajun Operating
Operating Account Subject to the Security                           Account"
Interest of The Bank of New York, as
Collateral Agent
-----------------------------------------------------------------------------------------------
NRG Peaker Finance Company LLC Completion              269530       "Completion Account"
Account Subject to the Security Interest of
The Bank of New York, as Collateral Agent
-----------------------------------------------------------------------------------------------
NRG Peaker Finance Company LLC Corporate               269531       "Corporate Services Payment
Services Payment Account Subject to the                             Account"
Security Interest of The Bank of New York, as
Collateral Agent
-----------------------------------------------------------------------------------------------
NRG Peaker Finance Company LLC Debt Payment            268784       "Debt Payment Account"
Account Subject to the Security Interest of
The Bank of New York, as Collateral Agent
-----------------------------------------------------------------------------------------------
NRG Peaker Finance Company LLC Debt Service            269532       "Debt Service Reserve
Reserve Account Subject to the Security                             Account"
Interest of The Bank of New York, as
Collateral Agent
-----------------------------------------------------------------------------------------------
</TABLE>

                                       3

<PAGE>

<TABLE>
<CAPTION>
     Name of Account at Depositary Agent          Account Number     Defined Term for Account
----------------------------------------------    --------------    --------------------------
<S>                                               <C>               <C>
NRG Peaker Finance Company LLC Distribution            268786       "Distribution Account"
Account Subject to the Security Interest of
The Bank of New York, as Collateral Agent
----------------------------------------------------------------------------------------------
NRG Peaker Finance Company LLC Excess Cash             269533       "Excess Cash Flow Account"
Flow Account Subject to the Security Interest
of The Bank of New York, as Collateral Agent
----------------------------------------------------------------------------------------------
NRG Peaker Finance Company LLC Loss Proceeds           268787       "Loss Proceeds Account"
Account Subject to the Security Interest of
The Bank of New York, as Collateral Agent
----------------------------------------------------------------------------------------------
NRG Peaker Finance Company LLC Major                   269534       "Major Maintenance Reserve
Maintenance Reserve Account Subject to the                          Account"
Security Interest of The Bank of New York, as
Collateral Agent
----------------------------------------------------------------------------------------------
NRG Peaker Finance Company LLC NRG Claim               269535       "NRG Claim Settlement
Settlement Account Subject to the Security                          Account"
Interest of The Bank of New York, as
Collateral Agent
----------------------------------------------------------------------------------------------
NRG Peaker Finance Company LLC Peaker                  269088       "Peaker Collateralization
Collateralization Account Subject to the                            Account"
Security Interest of The Bank of New York, as
Collateral Agent
----------------------------------------------------------------------------------------------
NRG Peaker Finance Company LLC Revenue Account         268783       "Revenue Account"
Subject to the Security Interest of The Bank
of New York, as Collateral Agent
----------------------------------------------------------------------------------------------
NRG Peaker Finance Company LLC Rockford I Fuel         269536       "Rockford I Fuel Account"
Account Subject to the Security Interest of
The Bank of New York, as Collateral Agent
----------------------------------------------------------------------------------------------
NRG Peaker Finance Company LLC Rockford I              269537       "Rockford I Operating
Operating Account Subject to the Security                           Account"
Interest of The Bank of New York, as
Collateral Agent
----------------------------------------------------------------------------------------------
NRG Peaker Finance Company LLC Rockford II             269538       "Rockford II Fuel Account"
Fuel Account Subject to the Security Interest
of The Bank of New York, as Collateral Agent
----------------------------------------------------------------------------------------------
</TABLE>

                                       4

<PAGE>

<TABLE>
<CAPTION>
     Name of Account at Depositary Agent          Account Number     Defined Term for Account
----------------------------------------------    --------------    --------------------------
<S>                                               <C>               <C>
NRG Peaker Finance Company LLC Rockford II             269539       "Rockford II Operating
Operating Account Subject to the Security                           Account"
Interest of The Bank of New York, as
Collateral Agent
----------------------------------------------------------------------------------------------
NRG Peaker Finance Company LLC Sterlington             269540       "Sterlington Fuel Account"
Fuel Account Subject to the Security Interest
of The Bank of New York, as Collateral Agent
----------------------------------------------------------------------------------------------
NRG Peaker Finance Company LLC Sterlington             269543       "Sterlington Operating
Operating Account Subject to the Security                           Account"
Interest of The Bank of New York, as
Collateral Agent
----------------------------------------------------------------------------------------------
NRG Peaker Finance Company LLC EMS Letter of           273558       "EMS Letter of Credit
Credit Account Subject to the Security                              Account"
Interest of The Bank of New York, as
Collateral Agent
----------------------------------------------------------------------------------------------
</TABLE>

The complete wire instructions for the Accounts are as follows:

The Bank of New York
ABA #021000018
Corporate Trust GLA 111-565
TAS Account No:  [PROJECT ACCOUNT NUMBER]
Ref:  NRG Peaker Finance Company LLC

The Depositary Agent may (but shall not be obligated to unless requested by the
Collateral Agent) establish sub-accounts within the Accounts listed above from
time to time as necessary for the Depositary Agent to comply with and carry out
the terms of this Agreement.

Issuer, each of the Project Companies and XLCA (if XLCA is the Controlling
Party) shall have unlimited access to any information relating to any of the
Accounts (including, without limitation, electronic access).

         2.2      Agreement of Depositary Agent. The Depositary Agent agrees to
(i) establish and maintain the Accounts set forth in Section 2.1, (ii) accept
all Account Funds to be delivered to or held by the Depositary Agent pursuant to
the terms of this Agreement and (iii) to make the disbursements from such
Account Funds contemplated by this Agreement as and when directed by the
Collateral Agent in accordance with the terms hereof. The Depositary Agent shall
hold and safeguard the Accounts and the Account Funds during the term of this
Agreement and shall treat the Accounts and the Account Funds as pledged by the
Financing Parties (to the extent of their respective rights and interests
therein) to the Collateral Agent for the benefit of the Secured Parties, to be
held by the Depositary Agent in trust for the Secured Parties in accordance with
the provisions hereof and of the other Financing Documents.

                                       5

<PAGE>

         2.3      Deposit of Funds. In the event that any Financing Party
receives any Project Revenues, Loss Proceeds or other amounts required to be
deposited into the Accounts in accordance with the terms hereof, such Financing
Party shall hold the same in precisely the form received in trust for and on
behalf of the Secured Parties, segregated from other funds of such Financing
Party, and without any notice or demand whatsoever shall promptly deliver the
same to the Depositary Agent for application in accordance with the terms of
this Agreement. Any deposit made into the Accounts hereunder shall be
irrevocable.

         2.4      Issuer Event of Default. At any time when no Issuer Event of
Default has occurred and is continuing, the Collateral Agent shall direct the
Depositary Agent to administer the Accounts and disburse Account Funds therefrom
in accordance with the express terms of this Agreement. Upon the occurrence and
during the continuation of an Issuer Event of Default (a) the Collateral Agent
shall direct the Depositary Agent to administer the Accounts and disburse
Account Funds therefrom as directed by the Controlling Party in accordance with
the Common Agreement and (b) the Depositary Agent shall execute and deliver (or
cause to be executed and delivered) to the Collateral Agent all proxies and
other instruments as the Collateral Agent may reasonably request for the purpose
of enabling the Collateral Agent to exercise any voting or other consensual
rights pertaining to the Accounts and the Account Funds.

         2.5      Unspecified Funds; Insufficient Funds. In the event that the
Depositary Agent receives any funds without adequate instruction as to the
Account into which such funds are to be deposited, the Depositary Agent shall
promptly deposit such funds into the Revenue Account and notify the Collateral
Agent and the Issuer of the receipt of such funds. If at any time there are
insufficient Account Funds in any Account to make any disbursement in accordance
with this Agreement, the Depositary Agent shall inform the Issuer as to such
insufficiency on the same date that a Disbursement Request is received by the
Depositary Agent. The Issuer shall be required to promptly submit a revised
Disbursement Request, but no later than the following Business Day, upon receipt
of notice of any such insufficiency from the Depositary Agent.

         2.6      Powers of Collateral Agent and Depositary Agent. The
Collateral Agent and, where appropriate, the Depositary Agent shall have the
right (but not the obligation) to (unless otherwise directed by XLCA (if XLCA is
the Controlling Party)) (a) refuse any item for credit to any Account except as
required by the terms of this Agreement and (b) refuse to honor any request for
a disbursement of Account Funds that is not consistent with the terms of this
Agreement. If any Financing Party fails to perform any of its agreements
contained herein, the Collateral Agent may itself perform, or cause the
performance of, such agreement, and the expenses of the Collateral Agent
incurred in connection therewith shall be payable by the Issuer upon demand and
shall be part of the Obligations. The powers conferred on the Collateral Agent
and the Depositary Agent in this Agreement are solely to protect the interests
of the Collateral Agent, for the benefit of the Secured Parties, in the Accounts
and the Account Funds and shall not impose any duty on the Collateral Agent or
the Depositary Agent to exercise any of such powers. Except for the reasonable
care of any Account in its possession or under its control and the accounting of
funds received by it hereunder, neither the Collateral Agent nor the Depositary
Agent shall have any duty with respect to the Accounts or Account Funds, or with
respect to the taking of any necessary steps to preserve rights against prior
parties or any other rights pertaining to the Accounts or Account Funds.

                                       6

<PAGE>

         2.7      Valuation of Account Funds and Any Acceptable Letter of
Credit. Account Funds and any Acceptable Letter of Credit shall be valued as
follows:

                  (a) cash shall be valued at the face amount thereof;

                  (b) each Permitted Investment shall be valued at the market
         value thereof (excluding accrued interest) at the time of
         determination, but, if such market value cannot then be determined,
         such Permitted Investment shall be valued at the purchase price
         thereof, plus earned interest; and

                  (c) any Acceptable Letter of Credit shall be valued at the
         Stated Amount thereof.

         2.8      Disputes. In the event of any dispute as to any amount to be
disbursed by the Depositary Agent from the Accounts, the Depositary Agent is
authorized and directed to retain in its possession, without liability to any
Financing Party, any Secured Party or any other Person, all or any part of the
Account Funds until such dispute shall have been settled by a mutual agreement
of the Issuer and the Collateral Agent or by a final order, decree or judgment
of a Federal or state court of competent jurisdiction located in the State of
New York, but the Depositary Agent shall be under no duty whatsoever to
institute or defend any such proceedings.

         2.9      Account Statements; Other Information. Not later than the 20th
day of each calendar month, the Depositary Agent shall provide to the Issuer and
the Collateral Agent a statement of the Account Funds held in each of the
Accounts open as of the last day of the prior calendar month. The Depositary
Agent shall also promptly provide the Collateral Agent and the Issuer with any
information reasonably requested by the Collateral Agent or the Issuer
concerning deposits to, balances in and disbursements from the Accounts.

                                  ARTICLE III.
                           SECURITY INTEREST; REMEDIES

         3.1      Grant of Security Interest; Dominion and Control. In order to
secure the Obligations, each Financing Party hereby grants, pledges and assigns
to the Collateral Agent, and grants in favor of the Collateral Agent, for the
benefit of the Secured Parties, a security interest in and to, all of its right,
title and interest, whether now owned or hereafter acquired and whether now
existing or hereafter coming into existence, in, to and under this Agreement and
in and to each of the Accounts and all Account Funds and all proceeds thereof.
Each Financing Party hereby confirms its pledges and assignments to the
Collateral Agent effected by, and the security interests in favor of the
Collateral Agent created by, the other Collateral Documents in and to the
Projects and all Project Revenues and Loss Proceeds. The Accounts and Account
Funds shall, subject to the provisions of this Agreement and the other Financing
Documents, be subject to the exclusive dominion and control of the Collateral
Agent, and the Collateral Agent shall have the sole and exclusive right to
direct the Depositary Agent to disburse Account Funds from the Accounts, and
each Financing Party hereby appoints the Collateral Agent as its true and lawful
attorney, with full power of substitution, for the purpose of directing the
Depositary Agent to make any such disbursement of Account Funds from any
Account, which appointment is coupled with an interest and is irrevocable. None
of the Financing Parties shall have any rights or powers

                                       7

<PAGE>

with respect to the Accounts or Account Funds, except as expressly provided
herein. None of the Financing Parties shall make, attempt to make or consent to
the making of any disbursement from any Account, except in strict adherence to
the terms of this Agreement.

         3.2      UCC Provisions. The parties hereto hereby agree that: (a) each
Account is and will be maintained as a "securities account" (as defined in
Section 8-501(a) of the UCC), and, to the extent that credit balances not
constituting financial assets are credited thereto, as a "deposit account" (as
defined in Section 9-102(a)(29) of the UCC); (b) the Depositary Agent is acting
in the capacity of "securities intermediary" (as defined in Section 102(a)(14)
of the UCC) with respect to the Accounts to the extent of financial assets
deposited therein or credited thereto, and as a "bank" (as defined in Section
9-102(a)(8) of the UCC) with respect to the Accounts to the extent of credit
balances not constituting financial assets credited thereto; (c) each item of
property (whether cash, cash equivalents, instruments, investments, investment
property or other) credited to the Accounts shall be treated as a "financial
asset" within the meaning of Section 8-102(a)(9) of the UCC; (d) the Issuer is
an "entitlement holder" (as defined in Section 8-102(a)(7) of the UCC) with
respect to the "financial assets" (as defined in Section 8-102(a)(9) of the UCC)
credited to the Accounts; (e) the "securities intermediary's jurisdiction" (as
defined in Section 8-110(e) of the UCC) and the "bank's jurisdiction" (as
defined in Section 9-304(b) of the UCC) shall be the State of New York; (f) all
securities and other property underlying any financial assets credited to the
Accounts shall be registered in the name of the Depositary Agent or endorsed to
the Depositary Agent or in blank, and in no case whatsoever will any financial
asset credited to an Account be registered in the name of any Financing Party,
payable to the order of any Financing Party or specially endorsed to any
Financing Party except to the extent that the foregoing have been specially
endorsed to the Depositary Agent or in blank; and (g) the Depositary Agent shall
not change the name of or account number for any Account without the prior
written consent of the Collateral Agent.

         3.3      Entitlement Orders. Notwithstanding any provision to the
contrary contained herein or in any other Financing Document, if at any time the
Depositary Agent shall receive any entitlement order or any other order or
instruction from or originated by the Collateral Agent directing the transfer,
redemption or other disposition of any financial asset relating to, or credit
balances or funds carried in, the Accounts, the Depositary Agent shall comply
with such entitlement order or other order or instruction without further
consent by any Financing Party or any other Person. If any Financing Party is
otherwise entitled to issue any orders directing the transfer, redemption or
other disposition of any financial asset credited to an Account or instructions
with respect to the disposition of funds of credit balances in an Account and
such orders or instructions conflict with any orders or instruction issued by
the Collateral Agent, the Depository Agent shall follow the orders and/or
instructions issued by the Collateral Agent. The parties hereto agree that until
the Depositary Agent's obligations under this Agreement shall terminate in
accordance with the terms hereof, the Collateral Agent shall have control of
each of the Financing Parties' security entitlements with respect to the
financial assets credited to the Accounts and credit balances carried therein.
The Depositary Agent hereby represents that it has not entered into, and agrees
that, until the termination of this Agreement, it will not enter into, any
agreement with any other Person (other than the Collateral Agent) in respect of
the Accounts pursuant to which it agrees to comply with entitlement orders made
by, or disposition instructions originated by, such Person.

                                       8

<PAGE>

         3.4      Other Liens; Adverse Claims.

                  3.4.1    Each Financing Party represents and warrants, as of
the date hereof, that: (a) it has not granted a security interest in, or
assigned its right, title and interest in, all or any part of the Accounts or
the Account Funds or any proceeds thereof, other than the Liens in favor of the
Collateral Agent for the benefit of the Secured Parties granted hereunder and
under the other Financing Documents and other Permitted Liens; (b) it has not
executed and is not aware of any effective financing statement, security
agreement, control agreement or other instrument similar in effect covering all
or any part of the Accounts or the Account Funds or any proceeds thereof, except
such as may have been filed in connection with this Agreement and the other
Financing Documents or in connection with Permitted Liens and (c) it has full
power and authority to grant a security interest in, and assign its right, title
and interest in, the Accounts and the Account Funds and all proceeds thereof
pursuant to this Agreement. Each Financing Party covenants that it will not
grant a security interest in, or assign its right, title and interest in, the
Accounts or the Account Funds or any proceeds thereof, other than the Liens
granted hereunder and under the other Financing Documents and other Permitted
Liens.

                  3.4.2    The Depositary Agent, to the best of its knowledge
without any independent investigation, has no knowledge of any Lien on the
Accounts or the Account Funds other than the interests of the Collateral Agent,
the Depositary Agent and the Financing Parties as provided herein. In the event
that the Depositary Agent has or subsequently obtains by agreement, operation of
law or otherwise a security interest in any Account or Account Funds, the
Depositary Agent hereby agrees that such security interest shall be subordinate
to the security interest of the Collateral Agent for the benefit of the Secured
Parties.

                  3.4.3    Each of the Collateral Agent and the Depositary
Agent, to the best of its knowledge without any independent investigation, has
no notice of any adverse claim to the Account Funds, any Account or any
financial asset credited thereto, or to security entitlements with respect
thereto.

                  3.4.4    The Account Funds shall not be subject to deduction,
set-off, banker's lien or any other right in favor of any Person other than the
Liens in favor of the Collateral Agent and other Permitted Liens.

         3.5      Further Assurances. Each Financing Party agrees that from time
to time it shall promptly execute and deliver all instruments and documents, and
take all actions, that may be reasonably necessary, or that the Collateral Agent
may reasonably request, in order to perfect and protect the assignment and
security interest granted or intended to be granted hereby or to enable the
Collateral Agent to exercise and enforce its rights and remedies hereunder with
respect to the Accounts and the Account Funds and all proceeds thereof.

         3.6      Location of Account Records. Each Financing Party agrees that
all records of such Financing Party concerning the Accounts shall be kept at 901
Marquette Avenue, Suite 2300, Minneapolis, MN 55402.

         3.7      Remedies. If an Issuer Event of Default shall have occurred
and be continuing: (a) the Collateral Agent may exercise, in respect of the
Accounts and the Account Funds, in

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<PAGE>

addition to other rights and remedies provided for in the Financing Documents or
otherwise available to it, all the rights and remedies of a secured party on
default under the UCC at that time and consistent with the provisions of the
other Financing Documents, including the right to proceed to protect and enforce
the rights vested in it by this Agreement, to sell, liquidate or otherwise
dispose of all or any part of the Accounts and the Account Funds, and to cause
the Accounts and the Account Funds to be sold, liquidated or otherwise disposed
of, in each case in such manner as the Collateral Agent may elect (acting at the
direction of the Controlling Party in accordance with the Common Agreement) and
(b) the proceeds of Account Funds and all cash proceeds received by the
Collateral Agent in respect of any sale of, collection from or other realization
upon all or any part of the Accounts and Account Funds may, in the discretion of
the Collateral Agent (acting at the direction of the Controlling Party in
accordance with the Common Agreement), then or at any time thereafter, be
applied (after payment of any amounts payable to the Depositary Agent pursuant
to the terms hereof) in whole or in part by the Collateral Agent against all or
any part of the Obligations in accordance with the Financing Documents. No
right, power or remedy herein conferred upon or reserved to the Collateral Agent
is intended to be exclusive of any other right, power or remedy and every such
right, power and remedy shall, to the extent permitted by law, be cumulative and
in addition to every other right, power and remedy given hereunder or now or
hereafter existing at law or in equity or otherwise. The assertion or employment
of any right, power or remedy hereunder or otherwise shall not prevent the
concurrent assertion or employment of any other appropriate right, power or
remedy. Resort to any or all security now or hereafter held by the Collateral
Agent may be taken concurrently or successively and in one or several
consolidated or independent judicial actions or lawfully taken nonjudicial
proceedings, or both.

                                  ARTICLE IV.
                  DEPOSITS INTO AND DISBURSEMENTS FROM ACCOUNTS

         4.1      Revenue Account.

                  4.1.1    Deposits into the Revenue Account.

                           (a)      Each Financing Party shall promptly deposit,
or cause to be deposited, the following amounts in the Revenue Account:

                                    (i)      all Project Revenues (other than
Loss Proceeds) received or receivable by such Financing Party;

                                    (ii)     all unscheduled amounts, such as
termination payments received in connection with a Partial Early Termination
Event (as defined in the Swap Agreement), received by the Issuer from the Swap
Counterparty or any guarantor thereof under the Swap Agreement;

                                    (iii)    all amounts received from any
replacement swap provider in connection with its entry into a Replacement Swap
Agreement (other than to the extent such proceeds are required to be otherwise
applied in accordance with Section 2.11 of the Common Agreement); and

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<PAGE>

                                    (iv)     all other amounts (other than
Excluded Revenues and amounts required to be deposited into other Accounts in
accordance with the terms hereof) received or receivable by such Financing
Party.

                           (b)      The Collateral Agent shall direct the
Depositary Agent to transfer all Account Funds remaining in the Distribution
Account to the Revenue Account on the 30th day following each Scheduled Payment
Date or on such later date to the extent permitted in accordance with Section
4.6.2.

                           (c)      The Collateral Agent shall direct the
Depositary Agent to transfer all earnings on Permitted Investments credited to
any Account from such Account to the Revenue Account.

                           (d)      The Collateral Agent shall direct the
Depositary Agent to transfer Casualty Insurance Proceeds and Condemnation
Proceeds from the Loss Proceeds Account to the Revenue Account in accordance
with Section 4.7.2.

                           (e)      The Collateral Agent shall direct the
Depositary Agent to transfer the excess Account Funds from the Major Maintenance
Reserve Account to the Revenue Account in accordance with Section 4.10.2.

                  4.1.2    Disbursements from the Revenue Account. Account Funds
in the Revenue Account shall be used only for the purposes described in this
Section 4.1.2. At least 3 Business Days prior to each Monthly Date or Designated
Monthly Date, as applicable, the Issuer shall deliver a Disbursement Request or
a Fuel and Operating Accounts Disbursement Request to the Collateral Agent, as
applicable, specifying the disbursements to be made from the Revenue Account on
such Monthly Date or Designated Monthly Date, as applicable, in accordance with
the following priority, to the extent of the Account Funds in the Revenue
Account on such Monthly Date or Designated Monthly Date, as applicable:

                  First , transfer, on each Designated Monthly Date, to the Fuel
                  Account of each Project Company an amount of immediately
                  available funds in Dollars equal to (a) the aggregate of all
                  Energy Transaction Costs for such Project Company's Project
                  that are due and payable on such Designated Monthly Date or
                  that will be due and payable prior to the next Designated
                  Monthly Date minus (b) Available Fuel Funds on such Designated
                  Monthly Date;

                  Second , transfer, on each Designated Monthly Date, to the
                  Operating Account of each Project Company an amount of
                  immediately available funds in Dollars equal to the O&M
                  Expenses for such month for such Project Company that are due
                  and payable prior to the next Designated Monthly Date in an
                  aggregate amount of up to (a) 110% of the (x) aggregate O&M
                  Expenses for such month for such Project Company provided in
                  the Annual Operations Budget plus (y) any year-to-date O&M
                  Expenses provided for in the Annual Operations Budget not used
                  as of such Designated Monthly Date minus (b) Available
                  Operating Funds on such Designated Monthly Date;

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<PAGE>

                  Third , transfer, on each Designated Monthly Date, to the
                  Energy Manager, an amount of immediately available funds in
                  Dollars equal to the Energy Manager Fee that is due and
                  payable on such Designated Monthly Date;

                  Fourth , transfer, on each Monthly Date to the Collateral
                  Agent for payment to the Secured Parties, the Trustee, the
                  Collateral Agent and/or the Depositary Agent in accordance
                  with the Financing Documents, an amount of immediately
                  available funds in Dollars equal to the aggregate of all
                  unscheduled costs, fees, additional premium payments and
                  expenses that are due and payable to any such Persons under
                  the Financing Documents as of such Monthly Date (it being
                  understood that such unscheduled costs shall not include any
                  Swap Breakage Costs, any Redemption Premium or any indemnity
                  payment under any Financing Document);

                  Fifth , transfer, on each Monthly Date which is also a
                  Scheduled Payment Date, to the Collateral Agent for payment to
                  the Secured Parties, the Trustee, the Collateral Agent and/or
                  the Depositary Agent in accordance with the Financing
                  Documents, an amount of immediately available funds in Dollars
                  equal to the amount of all scheduled trustee fees, collateral
                  agent fees, depositary agent fees, premiums to XLCA in respect
                  of the Swap Policy and other scheduled fees that are due and
                  payable on such Scheduled Payment Date;

                  Sixth , transfer, on each Monthly Date which is also a
                  Scheduled Payment Date, to the Debt Payment Account:

                           (A) if such Scheduled Payment Date is not the
                           penultimate Scheduled Payment Date, an amount of
                           Account Funds equal to the difference, if any,
                           between (a) Scheduled Debt Service due and payable on
                           such Scheduled Payment Date less (b) the amount of
                           funds on deposit in the Debt Payment Account on such
                           Scheduled Payment Date; or

                           (B) if such Scheduled Payment Date is the penultimate
                           Scheduled Payment Date, an amount of Account Funds
                           equal to the difference, if any, between (a)
                           Scheduled Debt Service due and payable on such
                           Scheduled Payment Date plus Scheduled Debt Service
                           due and payable on the Final Scheduled Payment Date
                           and (b) the amount of funds on deposit in the Debt
                           Payment Account on such Scheduled Payment Date;

                  Seventh , transfer, on each Monthly Date which is also an
                  Annual Scheduled Payment Date, to XLCA an amount of
                  immediately available funds in Dollars equal to the Accrued
                  Insurer Loss Amount (Swap) (if any) as of such Annual
                  Scheduled Payment Date (after giving effect to all
                  reimbursements to XLCA made on or prior to such Annual
                  Scheduled Payment Date);

                  Eighth , transfer, on each Monthly Date which is also an
                  Annual Scheduled Payment Date, to XLCA an amount of
                  immediately available funds in Dollars equal to the Accrued
                  Insurer Loss Amount (Bond) (if any) as of such Annual

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<PAGE>

                  Scheduled Payment Date (after giving effect to all
                  reimbursements to XLCA made on or prior to such Annual
                  Scheduled Payment Date);

                  Ninth , transfer, on each Monthly Date which is also an Annual
                  Scheduled Payment Date, to the Collateral Agent for payment to
                  the Secured Parties, pro rata based on the amount then owed to
                  each Secured Party under the Financing Documents, an amount of
                  immediately available funds in Dollars equal to the aggregate
                  of all other amounts that are due and payable to the Secured
                  Parties under the Financing Documents as of such Annual
                  Scheduled Payment Date and are not covered by any of
                  priorities First through Eighth above (it being understood
                  that such other amounts shall include any Swap Breakage Costs,
                  any Redemption Premium and any indemnity payment under any
                  Financing Document (to the extent not included in the
                  foregoing) then due and payable);

                  Tenth , transfer, on each Monthly Date which is also an Annual
                  Scheduled Payment Date to the Major Maintenance Reserve
                  Account, an amount of Account Funds equal to the Major
                  Maintenance Reserve Amount as of such Annual Scheduled Payment
                  Date;

                  Eleventh , transfer, on each Monthly Date which is also an
                  Annual Scheduled Payment Date, to the Corporate Services
                  Payment Account an amount of Account Funds equal to the
                  Corporate Services Annual Fee as of such Annual Scheduled
                  Payment Date;

                  Twelfth , transfer, on each Monthly Date which is also an
                  Annual Scheduled Payment Date, to the Debt Service Reserve
                  Account an amount of Account Funds equal to (a) the Debt
                  Service Reserve Amount as of such Annual Scheduled Payment
                  Date minus (b) the amount of Available Debt Service Reserve
                  Funds on such Annual Scheduled Payment Date;

                  Thirteenth , transfer, on each Monthly Date which is also an
                  Annual Scheduled Payment Date, to the Corporate Service
                  Payment Account an amount of Account Funds equal to the
                  Corporate Services Accumulation Amount as of such Annual
                  Scheduled Payment Date; and

                  Fourteenth , transfer, on each Monthly Date which is also an
                  Annual Scheduled Payment Date, Account Funds remaining in the
                  Revenue Account after giving effect to the disbursements
                  described in priorities First through Thirteenth above (A) to
                  the Distribution Account, if the Distribution Test is
                  satisfied as of the Determination Date immediately prior to
                  such Annual Scheduled Payment Date or (B) to the Excess Cash
                  Flow Account, if the Distribution Test is not satisfied as of
                  the Determination Date immediately prior to such Annual
                  Scheduled Payment Date.

Upon receipt of such Disbursement Request or Fuel and Operating Accounts
Disbursement Request, and if no Issuer Event of Default has occurred and is
continuing at the time the disbursements are made (unless otherwise directed by
the Controlling Party pursuant to the

                                       13

<PAGE>

Common Agreement), the Collateral Agent shall provide a copy of such
Disbursement Request or Fuel and Operating Accounts Disbursement Request to the
Depositary Agent and direct the Depositary Agent to make the disbursements
specified in such Disbursement Request or Fuel and Operating Accounts
Disbursement Request. All Account Funds in the Revenue Account that are not
disbursed in accordance with the foregoing shall remain in the Revenue Account.
If the Issuer fails to deliver a Disbursement Request for any Monthly Date in
accordance with this Section 4.1.2, the Collateral Agent shall provide notice
thereof prior to such Monthly Date to the Controlling Party under the Common
Agreement and shall, unless otherwise instructed by the Controlling Party under
the Common Agreement, direct the Depositary Agent to make the disbursements
described in priorities Fourth through Twelfth above on such Monthly Date in an
amount to be determined by the Controlling Party. The Collateral Agent shall be
required to transfer Account Funds on deposit in the Distribution Account to the
Revenue Account on any Monthly Date upon which insufficient funds are available
in the Revenue Account to make the required transfers provided in this Section
4.1.2 to the extent of such insufficiency.

         4.2      Debt Payment Account.

                  4.2.1    Deposits into the Debt Payment Account.

                           (a)      The Collateral Agent shall direct the
Depositary Agent to transfer Account Funds from the Revenue Account to the Debt
Payment Account on any Annual Scheduled Payment Dates in accordance with Section
4.1.2.

                           (b)      The Swap Counterparty shall deposit all
scheduled amounts payable by it to the Issuer pursuant to the Swap Agreement
into the Debt Payment Account.

                           (c)      The Collateral Agent shall direct the
Depositary Agent to transfer Account Funds from the Excess Cash Flow Account to
the Debt Payment Account in accordance with Section 4.15.2.

                           (d)      The Collateral Agent shall direct the
Depositary Agent to transfer Account Funds from the Debt Service Reserve Account
to the Debt Payment Account in accordance with Section 4.3.2.

                           (e)      The Collateral Agent shall direct the
Depositary Agent to transfer Account Funds from the Acquisition
Indemnity/Performance LD Reserve Account to the Debt Payment Account in
accordance with Section 4.5.2.

                           (f)      The Collateral Agent shall direct the
Depositary Agent to transfer Account Funds from the Major Maintenance Reserve
Account to the Debt Payment Account in accordance with Section 4.10.2.

                           (g)      The Collateral Agent shall direct the
Depositary Agent to deposit the Equity Reimbursement Payment made by NRG Energy
on any Annual Scheduled Payment Date pursuant to Section 2.1 of the Parent
Agreement into the Debt Payment Account.

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<PAGE>

                           (h)      The Collateral Agent shall direct the
Depositary Agent to transfer funds from the Cash Collateral Deposit received by
the Collateral Agent pursuant to Section 12.3 of the Parent Agreement to the
Debt Payment Account.

                           (i)      The Collateral Agent shall direct the
Depositary Agent to transfer the Account Funds from the EMS Letter of Credit
Account to the Debt Payment Account in accordance with Section 4.16.2.

                           (j)      The Collateral Agent shall direct the
Depositary Agent to transfer Account Funds from the NRG Claim Settlement Account
to the Debt Payment Account in accordance with Section 4.14.2.

                           (k)      The Collateral Agent shall direct the
Depositary Agent to deposit any amounts drawn under (x) the Policy, in the event
and to the extent not paid directly to the Trustee, and (y) the Swap Policy, in
the event and to the extent not paid directly to the Swap Counterparty, into the
Debt Payment Account.

                           (l)      Other than as set forth in clauses (a)
through (k) of this Section 4.2.1, no deposits shall be made into the Debt
Payment Account.

                  4.2.2    Disbursements from the Debt Payment Account. Account
Funds in the Debt Payment Account shall be used only to pay Scheduled Debt
Service. On each Scheduled Payment Date, the Collateral Agent shall direct the
Depositary Agent to transfer an amount of immediately available funds in Dollars
equal to all Scheduled Debt Service due and payable on such Scheduled Payment
Date from the Debt Payment Account to the Trustee and/or the Swap Counterparty,
pro rata based on the amounts owed to the Trustee and/or the Swap Counterparty
on such Scheduled Payment Date, for payment of such Scheduled Debt Service in
accordance with the applicable Financing Documents.

                  4.2.3    Priority of Funding Sources. Scheduled Debt Service
shall be paid on each Scheduled Payment Date from the following sources to the
extent sufficient funds are available from such sources:

                  First , from Account Funds then on deposit in the Debt Payment
                  Account (before giving effect to the transfers described in
                  priorities Second through Eleventh below);

                  Second , from amounts deposited in the Debt Payment Account by
                  the Swap Counterparty pursuant to the Swap Agreement;

                  Third , from amounts transferred to the Debt Payment Account
                  from the Revenue Account on such Scheduled Payment Date
                  pursuant to Section 4.1.2;

                  Fourth , from amounts transferred to the Debt Payment Account
                  from the Excess Cash Flow Account pursuant to Section 4.15.2;

                  Fifth , from amounts transferred to the Debt Payment Account
                  from the Debt Service Reserve Account pursuant to Section
                  4.3.2;

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<PAGE>

                  Sixth , from amounts transferred to the Debt Payment Account
                  from the Acquisition Indemnity/Performance LD Reserve Account
                  pursuant to Section 4.5.2;

                  Seventh , from amounts transferred to the Debt Payment Account
                  from the Major Maintenance Reserve Account pursuant to Section
                  4.10.2;

                  Eighth , from any Cash Collateral Deposit received by the
                  Collateral Agent pursuant to Section 12.3 of the Parent
                  Agreement;

                  Ninth , from the Equity Reimbursement Payments made to the
                  Collateral Agent by NRG Energy on such Scheduled Payment Date
                  pursuant to Section 2.1 of the Parent Agreement;

                  Tenth , from amounts transferred to the Debt Payment Account
                  from the EMS Letter of Credit Account pursuant to Section
                  4.16.2;

                  Eleventh , from amounts transferred to the Debt Payment
                  Account from the NRG Claim Settlement Account pursuant to
                  Section 4.14.2; and

                  Twelfth , (a) with respect to Scheduled Debt Service under the
                  Indenture, from amounts drawn under the Policy, whether such
                  amounts are paid directly to the Trustee or first deposited
                  into the Debt Payment Account, and (b) with respect to
                  Scheduled Debt Service under the Swap Agreement, from amounts
                  drawn under the Swap Policy, whether such amounts are paid
                  directly to the Swap Counterparty or first deposited into the
                  Debt Payment Account.

                  4.2.4 Claims Under Policies. Within one Business Day following
the receipt of (a) the statement provided by the Depositary Agent to the
Collateral Agent pursuant to Section 2.9 each November and (b) the statement
provided by the Swap Counterparty to the Collateral Agent pursuant to Section
12.21 of the Common Agreement, the Collateral Agent shall determine whether
there will be sufficient funds from the sources specified in clauses First
through Eleventh under Section 4.2.3 to pay in full Scheduled Debt Service due
on the next Annual Scheduled Payment Date. If the Collateral Agent determines
that there will be insufficient funds from such sources, it shall notify XLCA,
the Trustee and the Swap Counterparty at least 3 Business Days prior to such
Annual Scheduled Payment Date of the amount of such shortfall.

         4.3      Debt Service Reserve Account.

                  4.3.1    Deposits into the Debt Service Reserve Account.

                           (a)      On the Closing Date, the Depositary Agent
shall transfer all amounts then on deposit in the Collateralized Experience
Account and the Collateralized Deductible Account (each as defined in the
Original Common Agreement) to the Debt Service Reserve Account. In connection
with any Permitted Peaker Buyout (Peaker Sale / Project Event of Default), the
Issuer shall be required to deliver, or cause to be delivered, to the Depositary
Agent for credit to the Debt Service Reserve Account, the amount of funds
required to be

                                       16

<PAGE>

deposited into the Debt Service Reserve Account pursuant to clause (ii) of the
definition of Permitted Peaker Buyout (Peaker Sale/Project Event of Default).

                           (b)      The Collateral Agent shall direct the
Depositary Agent to transfer Account Funds from the Revenue Account to the Debt
Service Reserve Account on Annual Scheduled Payment Dates in accordance with
Section 4.1.2.

                           (c)      The Collateral Agent shall deposit all
proceeds of drawings under any applicable Acceptable Letter of Credit in the
Debt Service Reserve Account.

                           (d)      Other than as set forth in clauses (a)
through (c) of this Section 4.3.1, no deposits shall be made into the Debt
Service Reserve Account.

                  4.3.2    Disbursements from the Debt Service Reserve Account.
Account Funds in the Debt Service Reserve Account shall be used either (i) to
pay Scheduled Debt Service or (ii) to purchase the Spare Parts. If on any Annual
Scheduled Payment Date there are insufficient Account Funds in the Debt Payment
Account to pay the Scheduled Debt Service due and payable on such Annual
Scheduled Payment Date (after giving effect to funding priority set forth in
Section 4.2.3 on such Annual Scheduled Payment Date), the Collateral Agent shall
direct the Depositary Agent to transfer Account Funds from the Debt Service
Reserve Account to the Debt Payment Account in an amount sufficient to make up
the deficiency in the Debt Payment Account (after making any drawings on an
applicable Acceptable Letter of Credit in accordance with Section 5.2). At any
time on or before the third anniversary of the Closing Date, the Issuer may
request disbursements to purchase any of the Spare Parts from the Debt Service
Reserve Account by submitting a Spare Parts Disbursement Request for such
purpose to the Collateral Agent (with a copy to the Depositary Agent) at least 5
Business Days prior to the requested date for such disbursements. Upon receipt
of a Spare Parts Disbursement Request and if no Issuer Event of Default has
occurred and is continuing at the time the disbursements are made (unless
otherwise directed by XLCA (if XLCA is the Controlling Party) pursuant to the
Common Agreement), the Collateral Agent shall provide a copy of such Spare Parts
Disbursement Request to the Depositary Agent and direct the Depositary Agent to
make the disbursements in accordance with such Spare Parts Disbursement Request.
If on any Scheduled Payment Date or LOC Substitution Date the aggregate of all
Available Debt Service Reserve Funds exceeds the then current Debt Service
Reserve Amount, the Collateral Agent shall direct the Depositary Agent to
transfer an amount of immediately available funds in Dollars equal to such
excess from the Debt Service Reserve Account to the Distribution Account.
Account Funds in the Debt Service Reserve Account that are not disbursed in
accordance with this Section 4.3.2 shall remain in the Debt Service Reserve
Account.

         4.4      Intentionally Omitted

         4.5      Acquisition Indemnity/Performance LD Reserve Account.

                  4.5.1    Deposits into the Acquisition Indemnity/Performance
LD Reserve Account. All (a) Performance Liquidated Damages (including amounts
paid under Section 3.14 of the Common Agreement by the Project Companies to the
extent the Rockford II Contractors' and/or the Bayou Cove Contractors'
limitation of liability provisions in the applicable

                                       17

<PAGE>

agreements reduced their obligation to pay such Performance Liquidated Damages
in full) and (b) Acquisition Indemnity Payments shall be deposited into the
Acquisition Indemnity/Performance LD Reserve Account. Other than as set forth in
the preceding sentence, no deposits shall be made into the Acquisition
Indemnity/Performance LD Reserve Account.

                  4.5.2    Disbursements from the Acquisition
Indemnity/Performance LD Reserve Account. Account Funds in the Acquisition
Indemnity/Performance LD Reserve Account shall be used only to pay Scheduled
Debt Service on any Annual Scheduled Payment Date. If on any Annual Scheduled
Payment Date there are insufficient Account Funds in the Debt Payment Account to
pay the Scheduled Debt Service due and payable on such Annual Scheduled Payment
Date (after giving effect to funding priority set forth in Section 4.2.3 on such
Annual Scheduled Payment Date), the Collateral Agent shall direct the Depositary
Agent to transfer Account Funds from the Acquisition Indemnity/Performance LD
Reserve Account to the Debt Payment Account in an amount sufficient to make up
the deficiency in the Debt Payment Account (after making any drawings on an
applicable Acceptable Letter of Credit in accordance with Section 5.2). Account
Funds in the Acquisition Indemnity/Performance LD Reserve Account that are not
disbursed in accordance with this Section 4.5.2 shall remain in the Acquisition
Indemnity/Performance LD Reserve Account.

         4.6      Distribution Account.

                  4.6.1    Deposits into the Distribution Account.

                           (a)      The Collateral Agent shall direct the
Depositary Agent to transfer Account Funds from the Revenue Account to the
Distribution Account on each Annual Scheduled Payment Date in accordance with
Section 4.1.2.

                           (b)      The Collateral Agent shall direct the
Depositary Agent to transfer Account Funds from the Excess Cash Flow Account to
the Distribution Account on each Annual Scheduled Payment Date in accordance
with Section 4.15.2.

                           (c)      If on any Scheduled Payment Date or LOC
Substitution Date the aggregate of all Available Debt Service Reserve Funds
exceeds the then current Debt Service Reserve Amount, the Collateral Agent shall
direct the Depositary Agent to transfer such excess from the Debt Service
Reserve Account to the Distribution Account in accordance with Section 4.3.2.

                           (d)      Other than as set forth in clauses (a)
through (c) of this Section 4.6.1, no deposits shall be made into the
Distribution Account.

                  4.6.2    Disbursements from the Distribution Account. Account
Funds in the Distribution Account shall either be (a) transferred to the Revenue
Account as provided in the last sentence of Section 4.1.2 or (b) subject to the
conditions set forth in Section 4.5 of the Common Agreement, used to make
Restricted Payments or Tax Distributions in accordance with this Section 4.6.2;
provided that any and all Restricted Payments made pursuant to this Section
4.6.2 shall be subject to Section 2.1 of the Parent Agreement. Restricted
Payments or Tax Distributions may be made from the Distribution Account only on
Annual Scheduled Payment Dates (or within 30 days thereafter (or on such later
date to the extent permitted under

                                       18

<PAGE>

Section 4.5 of the Common Agreement)). The Issuer may request that Restricted
Payments or Tax Distributions be made from the Distribution Account by
submitting a Disbursement Request for such purpose to the Collateral Agent at
least 5 Business Days prior to the proposed Restricted Payment Date. Upon
receipt of such Disbursement Request and the certificate required to be
delivered by the Issuer pursuant to Section 4.5(a)(vii) of the Common Agreement
(provided that no such certificate will be required for Tax Distributions), the
Collateral Agent shall, unless it receives notice from the Controlling Party
under the Common Agreement that such Disbursement Request fails to comply with
the requirements set forth in this Agreement and the other Financing Documents,
direct the Depositary Agent to withdraw Account Funds from the Distribution
Account to make the Restricted Payments or Tax Distributions specified in such
Disbursement Request (and shall provide an executed copy of such Disbursement
Request to the Depositary Agent as part of such direction) on the proposed
Restricted Payment Date so long as each of the conditions set forth in Section
4.5 of the Common Agreement are satisfied as of such Restricted Payment Date.
Account Funds in the Distribution Account that are not disbursed in accordance
with this Section 4.6.2 by the 30th day following an Annual Scheduled Payment
Date shall be transferred to the Revenue Account, or on such later date to the
extent permitted in accordance with Section 4.5 of the Common Agreement.

         4.7      Loss Proceeds Account.

                  4.7.1    Deposits into the Loss Proceeds Account.

                           (a)      Each Financing Party shall promptly deposit,
or cause to be deposited, the following amounts into the Loss Proceeds Account:

                                    (i)      all Casualty Insurance Proceeds;

                                    (ii)     all Condemnation Proceeds;

                                    (iii)    all Net Peaker Buyout Proceeds;

                                    (iv)     any Peaker Buyout Profits remaining
after the deposits into the Debt Service Reserve Account and the Major
Maintenance Reserve Account in accordance with clause (ii) of the definition of
Permitted Peaker Buyout (Peaker Sale/ Project Event of Default); and

                                    (v)      any Account Funds in the Revenue
Account in respect of a Project that is subject to a Project Release Event in
accordance with Section 7.1.2.

                           (b)      Other than as set forth in clause (a) of
this Section 4.7.1, no deposits shall be made into the Loss Proceeds Account.

                  4.7.2    Disbursements from the Loss Proceeds Account. Account
Funds in the Loss Proceeds Account shall not be disbursed other than in
accordance with this Section 4.7.2. Account Funds in the Loss Proceeds Account
that are not disbursed in accordance with this Section 4.7.2 shall remain in the
Loss Proceeds Account.

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<PAGE>

                           (a)      Casualty Insurance Proceeds.

                                    (i)      Promptly upon deposit into the Loss
Proceeds Account of any Casualty Insurance Proceeds in an aggregate amount of
less than $15,000,000, the Collateral Agent shall direct the Depositary Agent to
transfer all or such portion of such Casualty Insurance Proceeds to the affected
Project Company required to restore, rebuild or replace the affected Project or
part thereof as so certified by a Responsible Officer of the Issuer, in such
Responsible Officer's capacity as an officer of the Issuer, to the Collateral
Agent (with a copy to the Depositary Agent). Any such Casualty Insurance
Proceeds not so disbursed after the completion of the restoration, rebuilding or
replacement shall be transferred to the Revenue Account.

                                    (ii)     Any Casualty Insurance Proceeds
other than those described in clause (i) immediately above shall be applied in
accordance with this clause (ii). If such Casualty Insurance Proceeds are with
respect to a Significant Casualty Event, the Issuer may apply such Casualty
Insurance Proceeds to effect a Permitted Peaker Buyout (Completion / Loss Event)
or Peaker Collateralization in order to cure the resulting Issuer Event of
Default pursuant to Section 7.1(o)(i) of the Common  Agreement. If such Casualty
Insurance Proceeds are with respect to a Casualty Event that is not a
Significant Casualty Event and the Issuer elects to use such Casualty Insurance
Proceeds to restore, rebuild or replace the affected Project or part thereof,
the Issuer shall, within 60 days after such Casualty Event, deliver to the
Collateral Agent (with a copy to the Depositary Agent) a certificate of a
Responsible Officer of the Issuer, in such Responsible Officer's capacity as an
officer of the Issuer, stating that (1) such Casualty Event is not a Significant
Casualty Event and (2) the Issuer has reasonably determined and certified (and
XLCA (if XLCA is the Controlling Party) after consultation with the Independent
Engineer has consented thereto or the Independent Engineer (if XLCA is not the
Controlling Party) has confirmed the statements set forth in such certificate)
that (x) the affected Project or part thereof can be restored, rebuilt or
replaced on a commercially feasible basis and (y) such Casualty Insurance
Proceeds, together with any other amounts available to Issuer or the applicable
Project Company for such purpose under the Financing Documents or otherwise
available to the Issuer or such Project Company on terms reasonably satisfactory
to XLCA (if XLCA is the Controlling Party), are sufficient to permit the
restoration, rebuilding or replacement of the Project or part thereof. If the
Issuer delivers such certificate, such Casualty Insurance Proceeds shall be
disbursed from the Loss Proceeds Account from time to time in accordance with
clause (iii) immediately below. If the Issuer does not deliver such certificate
(or XLCA or the Independent Engineer, as applicable, does not consent thereto or
confirm the statements therein, as applicable), it shall be an Issuer Event of
Default under Section 7.1(o)(i) of the Common Agreement unless the Issuer
effects a Permitted Peaker Buyout (Completion / Loss Event) or Peaker
Collateralization under Section 7.1(o)(i) of the Common Agreement.

                                    (iii)    Casualty Insurance Proceeds to be
used to restore, rebuild or replace an affected Project or part thereof as
contemplated by clause (ii) immediately above shall be disbursed in accordance
with this clause (iii). The Issuer may request disbursements of such Casualty
Insurance Proceeds from the Loss Proceeds Account by

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<PAGE>

submitting a Disbursement Request for such purpose to the Collateral Agent (with
a copy to the Depositary Agent) at least 5 Business Days prior to the proposed
date of the requested disbursements. Upon receipt of such Disbursement Request,
the Collateral Agent shall direct the Depositary Agent to withdraw such Casualty
Insurance Proceeds from the Loss Proceeds Account to make the disbursements as
and when specified in such Disbursement Request (and shall provide an executed
copy of such Disbursement Request to the Depositary Agent as part of such
direction) so long as no Issuer Event of Default or, if XLCA is the Controlling
Party, Disbursement Project Event of Default (other than any Disbursement
Project Event of Default waived by XLCA (if XLCA is the Controlling Party) in
connection with its consent to the Issuer's certification as described in clause
(ii) immediately above) has occurred and is continuing at the time the
disbursements are made. The applicable Project Company shall use such Casualty
Insurance Proceeds to restore, rebuild or replace the affected Project or part
thereof and shall promptly and diligently restore, rebuild or replace the
affected Project or part thereof using the as-built plans and specifications for
such Project or part thereof (as modified to give effect to any subsequent
modifications to such Project in accordance with the Financing Documents and all
applicable Legal Requirements) so as to restore, rebuild or replace such Project
or part thereof to substantially the same condition, operation, function and
value as existed immediately prior to such Casualty Event. If any Casualty
Insurance Proceeds remain after completion of the restoration, rebuilding or
replacement, the Collateral Agent shall direct the Depositary Agent to transfer
such Casualty Insurance Proceeds to the Revenue Account.

                           (b)      Condemnation Proceeds.

                                    (i)      Promptly upon deposit into the Loss
Proceeds Account of any Condemnation Proceeds in an aggregate amount of less
than $15,000,000, the Collateral Agent shall direct the Depositary Agent to
transfer all or such portion of such Condemnation Proceeds to the affected
Project Company required to restore, rebuild or replace the affected Project or
part thereof as so certified by a Responsible Officer of the Issuer, in such
Responsible Officer's capacity as an officer of the Issuer, to the Collateral
Agent (with a copy to the Depositary Agent). Any such Condemnation Proceeds not
so disbursed after the completion of the restoration, rebuilding or replacement
shall be transferred to the Revenue Account.

                                    (ii)     Any Condemnation Proceeds other
than those described in clause (i) immediately above shall be applied in
accordance with this clause (ii). If such Condemnation Proceeds are with respect
to a Significant Condemnation Event, the Issuer may apply such Condemnation
Proceeds to effect a Permitted Peaker Buyout (Completion / Loss Event) or Peaker
Collateralization in order to cure the resulting Issuer Event of Default
pursuant to Section 7.1(o)(i) of the Common Agreement. If such Condemnation
Proceeds are with respect to a Condemnation Event that is not a Significant
Condemnation Event and the Issuer elects to use such Condemnation Proceeds to
restore, rebuild or replace the affected Project or part thereof, the Issuer
shall, within 60 days after such Condemnation Event, deliver to the Collateral
Agent (with a copy to the Depositary Agent) a certificate of a Responsible
Officer of the Issuer, in such Responsible Officer's capacity as an officer of
the Issuer, stating that (1) such

                                       21

<PAGE>

Condemnation Event is not a Significant Condemnation Event and (2) the Issuer
has reasonably determined and certified (and XLCA (if XLCA is the Controlling
Party) after consultation with the Independent Engineer has consented thereto or
the Independent Engineer (if XLCA is not the Controlling Party) has confirmed
the statements set forth in such certificate) that (x) the affected Project or
part thereof can be restored, rebuilt or replaced on a commercially feasible
basis and (y) such Condemnation Proceeds, together with any other amounts
available to Issuer or the applicable Project Company for such purpose under the
Financing Documents or otherwise available to the Issuer or such Project Company
on terms reasonably satisfactory to XLCA (if XLCA is the Controlling Party), are
sufficient to permit the restoration, rebuilding or replacement of the Project
or part thereof. If the Issuer delivers such certificate, such Condemnation
Proceeds shall be disbursed from the Loss Proceeds Account from time to time in
accordance with clause (iii) immediately below. If the Issuer does not deliver
such certificate (or XLCA or the Independent Engineer, as applicable, do not
consent thereto or confirm the statements therein, as applicable), it shall be
an Issuer Event of Default under Section 7.1(o)(ii) of the Common Agreement
unless the Issuer effects a Permitted Peaker Buyout (Completion / Loss Event) or
Peaker Collateralization under Section 7.1(o)(i) of the Common Agreement.

                                    (iii)    Condemnation Proceeds to be used to
restore, rebuild or replace an affected Project or part thereof as contemplated
by clause (ii) immediately above shall be disbursed in accordance with this
clause (iii). The Issuer may request disbursements of such Condemnation Proceeds
from the Loss Proceeds Account by submitting a Disbursement Request for such
purpose to the Collateral Agent (with a copy to the Depositary Agent) at least 5
Business Days prior to the proposed date of the requested disbursements. Upon
receipt of such Disbursement Request, the Collateral Agent shall direct the
Depositary Agent to withdraw such Condemnation Proceeds from the Loss Proceeds
Account to make the disbursements as and when specified in such Disbursement
Request (and shall provide an executed copy of such Disbursement Request to the
Depositary Agent as part of such direction) so long as no Issuer Event of
Default or, if XLCA is the Controlling Party, Disbursement Project Event of
Default (other than any Disbursement Project Event of Default waived by XLCA (if
XLCA is the Controlling Party) in connection with its consent to the Issuer's
certification as described in clause (ii) immediately above) has occurred and is
continuing at the time the disbursements are made. The Issuer and the applicable
Project Company shall use such Condemnation Proceeds to restore, rebuild or
replace the affected Project and shall promptly and diligently restore, rebuild
or replace the affected Project or part thereof using the as-built plans and
specifications for such Project (as modified to give effect to any subsequent
modifications to such Project in accordance with the Financing Documents and all
applicable Legal Requirements) so as to restore, rebuild or replace such Project
or part thereof to substantially the same condition, operation, function and
value as existed immediately prior to such Condemnation Event. If any
Condemnation Proceeds remain after completion of the restoration, rebuilding or
replacement, the Collateral Agent shall direct the Depositary Agent to transfer
such Condemnation Proceeds to the Revenue Account.

                                       22

<PAGE>

                           (c)      Net Peaker Buyout Proceeds and Peaker Buyout
Profits. The Issuer shall deposit into the Loss Proceeds Account (i) any Net
Peaker Buyout Proceeds received in connection with a Permitted Peaker Buyout and
(ii) any Peaker Buyout Profits remaining following the deposits into the Debt
Service Reserve Account and the Major Maintenance Reserve Account pursuant to
clause (ii) of the definition of Permitted Peaker Buyout (Peaker Sale / Project
Event of Default). The Depositary Agent shall transfer any Account Funds in the
Revenue Account in respect of a Project to the Loss Proceeds Account in
accordance with Section 7.1.2. Upon any such deposit, the Collateral Agent shall
direct the Depositary Agent to transfer such Net Peaker Buyout Proceeds, Peaker
Buyout Profits or the Account Funds, pro rata, to the Trustee for application to
the prepayment of Bonds in accordance with Section 12 of the Indenture and to
the Swap Counterparty for payment of any Swap Breakage Costs in accordance with
Section 15 of the Swap Agreement.

         4.8      Completion Account. Account Funds in the Completion Account
shall be used only (i) to make payments for the purpose of effectuating
Completion of the Rockford II Project or the Bayou Cove Project or (ii) to pay
for any costs, damages or other liabilities in connection with the Bayou Cove
EPC Agreement (Electric Interconnection Facility). The Issuer may request
disbursements of Account Funds from the Completion Account by submitting a
Disbursement Request for such purpose to the Collateral Agent (with a copy to
the Depositary Agent) at least 5 Business Days prior to the proposed date of the
requested disbursements specifying the disbursements to be made. Upon receipt of
such Disbursement Request ,the Collateral Agent shall direct the Depositary
Agent to withdraw such Account Funds from the Completion Account to make the
disbursements as and when specified in such Disbursement Request (and shall
provide an executed copy of such Disbursement Request to the Depositary Agent as
part of such direction) so long as no Issuer Event of Default has occurred and
is continuing at the time the disbursements are made. The Collateral Agent shall
direct the Depositary Agent to disburse Account Funds remaining on deposit in
the Completion Account following the Completion of the Rockford II Project and
the Bayou Cove Project to NRG Energy or any Affiliate thereof as directed by the
Issuer.

         4.9      Peaker Collateralization Account. If the Issuer elects to
effect a Peaker Collateralization, the Issuer shall deposit the amount described
in the definition thereof into the Peaker Collateralization Account. The Issuer
may at any time replace cash on deposit in the Peaker Collateralization Account
with an Acceptable Letter of Credit. Account Funds in the Peaker
Collateralization Account shall be applied solely in connection with an exercise
of remedies by the Collateral Agent following the occurrence and during the
continuation of an Issuer Event of Default. If (a) the event for which the
Issuer effected a Peaker Collateralization is cured or waived or (b) the Issuer
elects not to continue such Peaker Collateralization in respect of such event,
as evidenced by a certificate of a Responsible Officer of the Issuer delivered
to the Collateral Agent, the Collateral Agent shall instruct the Depositary
Agent to disburse the related Account Funds (or any Acceptable Letter of Credit
held in lieu thereof) on deposit in the Peaker Collateralization Account to NRG
Energy or any Affiliate thereof as directed by the Issuer, provided, however,
that at the time of such disbursement no Issuer Event of Default shall have
occurred and be continuing.

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<PAGE>

         4.10     Major Maintenance Reserve Account.

                  4.10.1   Deposits into the Major Maintenance Reserve Account.

                           (a)      On the Closing Date, the Issuer shall
deliver to the Depositary Agent for credit to the Major Maintenance Reserve
Account an amount equal to $1,647,127. In connection with any Permitted Peaker
Buyout (Peaker Sale/Project Event of Default), the Issuer shall deliver, or
cause to be delivered, to the Depositary Agent for credit to the Major
Maintenance Reserve Account, the amount of funds required to be deposited into
the Major Maintenance Reserve Account pursuant to clause (ii) of the definition
of Permitted Peaker Buyout (Peaker Sale/Project Event of Default). The
Collateral Agent shall direct the Depositary Agent to transfer Account Funds
from the Revenue Account to the Major Maintenance Reserve Account on each Annual
Scheduled Payment Date in accordance with Section 4.1.2.

                           (b)      Other than as set forth in clause (a) of
this Section 4.10.1, no deposits shall be made into the Major Maintenance
Reserve Account.

                  4.10.2   Disbursements from the Major Maintenance Reserve
Account. Account Funds in the Major Maintenance Reserve Account shall either be
used to (i) make a Major Maintenance Payment on each Designated Monthly Date in
accordance with the Annual Operations Budget and the Common Agreement or (ii)
pay Scheduled Debt Service on any Annual Scheduled Payment Date. The Issuer may
request disbursements of such Major Maintenance Payment from the Major
Maintenance Reserve Account by submitting a Disbursement Request for such
purpose to the Collateral Agent (with a copy to the Depositary Agent) at least 3
Business Days prior to such Designated Monthly Date. Upon receipt of such
Disbursement Request and if no Issuer Event of Default has occurred and is
continuing at the time the disbursements are made (unless otherwise directed by
XLCA (if XLCA is the Controlling Party) pursuant to the Common Agreement), the
Collateral Agent shall provide a copy of such Disbursement Request to the
Depositary Agent and direct the Depositary Agent to make the disbursements in
accordance with such Disbursement Request. If on any Annual Scheduled Payment
Date there are insufficient Account Funds in the Debt Payment Account to pay the
Scheduled Debt Service due and payable on such Annual Scheduled Payment Date
(after giving effect to funding priority set forth in Section 4.2.3 on such
Annual Scheduled Payment Date), the Collateral Agent shall direct the Depositary
Agent to transfer Account Funds from the Major Maintenance Reserve Account
(prior to making any disbursements for the Major Maintenance Reserve Payment
payable on such Annual Scheduled Payment Date) to the Debt Payment Account in an
amount sufficient to make up the deficiency in the Debt Payment Amount. Account
Funds in the Major Maintenance Reserve Account that are not disbursed in
accordance with this Section 4.10.2 shall remain in the Major Maintenance
Reserve Account. In the event that the Independent Engineer determines that the
Major Maintenance Reserve Account is overfunded and such over funding is greater
than $500,000 pursuant to Section 2.7(d) of the Common Agreement, such excess
Account Funds shall be disbursed to the Revenue Account within 15 days following
the date of such determination.

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<PAGE>

         4.11     Corporate Services Payment Account.

                  4.11.1   Deposits into the Corporate Services Payment Account.

                           (a)      The Collateral Agent shall direct the
Depositary Agent to transfer Account Funds from the Revenue Account to the
Corporate Services Payment Account on each Annual Scheduled Payment Date in an
amount equal to the Corporate Services Annual Fee and the Corporate Services
Accumulation Amount in accordance with Section 4.1.2.

                           (b)      Other than as set forth in clause (a) of
this Section 4.11.1, no deposits shall be made into the Corporate Services
Payment Account.

                  4.11.2   Disbursements from the Corporate Services Payment
Account. Account Funds in the Corporate Services Payment Account shall only be
used to make the Corporate Services Payment in accordance with the Corporate
Services Agreement on each Annual Scheduled Debt Payment Date; provided that any
and all Corporate Services Payments made under this Section 4.11.2 shall be
subject to Section 2.1 of the Parent Agreement. The Issuer may request that a
Corporate Services Payment that is due and payable on an Annual Scheduled Debt
Payment Date be made from the Corporate Services Payment Account by submitting a
Disbursement Request for such purpose to the Collateral Agent at least 5
Business Days prior to the Annual Scheduled Debt Payment Date. Upon receipt of
such Disbursement Request and if no Issuer Event of Default has occurred and is
continuing at the time the disbursements are made (unless otherwise directed by
XLCA (if XLCA is the Controlling Party) pursuant to the Common Agreement), the
Collateral Agent shall provide a copy of such Disbursement Request to the
Depositary Agent and direct the Depositary Agent to make the disbursements in
accordance with such Disbursement Request. Account Funds in the Corporate
Services Payment Account that are not disbursed in accordance with this Section
4.11.2 shall remain in the Corporate Services Payment Account.

         4.12     Operating Accounts.

                  4.12.1   Deposits into the Operating Accounts.

                           (a)      The Collateral Agent shall direct the
Depositary Agent to transfer Account Funds from the Revenue Account to the
Operating Account of each Project Company on each Designated Monthly Date in
accordance with Section 4.1.2.

                           (b)      Other than as set forth in clause (a) of
this Section 4.12.1, no deposits shall be made into the Operating Accounts.

                  4.12.2   Disbursements from the Operating Accounts.

                           (a)      Account Funds in the Operating Account of
each Project Company shall only be used by each Project Company to make payments
for Total O&M Expenses in accordance with the Annual Operations Budget and the
Common Agreement; provided, that no Issuer Event of Default has occurred and is
continuing at the time the disbursements are made (unless otherwise directed by
XLCA (if XLCA is the Controlling Party) pursuant to the Common

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<PAGE>

Agreement). Account Funds in the Operating Accounts that are not disbursed in
accordance with this Section 4.12.2 shall remain in such Operating Accounts.

         4.13     Fuel Accounts.

                  4.13.1   Deposits into the Fuel Accounts.

                           (a)      The Collateral Agent shall direct the
Depositary Agent to transfer Account Funds from the Revenue Account to the Fuel
Account of each Project Company on each Designated Monthly Date in accordance
with Section 4.1.2.

                           (b)      Other than as set forth in clause (a) of
this Section 4.13.1, no deposits shall be made into the Fuel Accounts.

                  4.13.2   Disbursements from the Fuel Accounts. Account Funds
in the Fuel Account of each Project Company shall only be used by each Project
Company to make payments for Energy Transaction Costs pursuant to the Project
Company's Energy Marketing Services Agreement, provided that no Issuer Event of
Default has occurred and is continuing at the time the disbursements are made
(unless otherwise directed by XLCA (if XLCA is the Controlling Party) pursuant
to the Common Agreement). Account Funds in the Fuel Accounts that are not
disbursed in accordance with this Section 4.13.2 shall remain in such Fuel
Accounts.

         4.14     NRG Claim Settlement Account.

                  4.14.1   Deposits into the NRG Claim Settlement Account.

                           (a)      The Collateral Agent shall deposit all
amounts received pursuant to Section 2.6 of the Parent Agreement in the NRG
Claim Settlement Account.

                           (b)      Other than as set forth in clause (a) of
this Section 4.14.1, no deposits shall be made into the NRG Claim Settlement
Account.

                  4.14.2   Disbursements from the NRG Claim Settlement Account.
The Acceptable Letter of Credit in the NRG Claim Settlement Account shall be
used only to pay Scheduled Debt Service on any Annual Scheduled Payment Date. If
on any Annual Scheduled Payment Date there are not sufficient Account Funds in
the Debt Payment Account to pay the Scheduled Debt Service due and payable on
such Annual Scheduled Payment Date (after giving effect to funding priority set
forth in Section 4.2.3 on such Annual Scheduled Payment Date), the Collateral
Agent shall draw on the Acceptable Letter of Credit in the NRG Claim Settlement
Account in an amount sufficient to make up such deficiency and direct the
Depositary Agent to transfer such amount to the Debt Payment Account. The
Acceptable Letter of Credit in the NRG Claim Settlement Account that are not
disbursed in accordance with this Section 4.14.2 shall remain in the NRG Claim
Settlement Account.

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<PAGE>

         4.15     Excess Cash Flow Account.

                  4.15.1   Deposits into the Excess Cash Flow Account.

                           (a)      The Collateral Agent shall direct the
Depositary Agent to transfer Account Funds from the Revenue Account to the
Excess Cash Flow Account on each Annual Scheduled Payment Date in accordance
with Section 4.1.2.

                           (b)      Other than as set forth in clause (a) of
this Section 4.15.1, no deposits shall be made into the Excess Cash Flow
Account.

                  4.15.2   Disbursements from the Excess Cash Flow Account.
Account Funds in the Excess Cash Flow Account shall first be used to pay
Scheduled Debt Service on any Annual Scheduled Payment Date. If on any Annual
Scheduled Payment Date there are insufficient Account Funds in the Debt Payment
Account to pay the Scheduled Debt Service due and payable on such Annual
Scheduled Payment Date (after giving effect to funding priority set forth in
Section 4.2.3 on such Annual Scheduled Payment Date), the Collateral Agent shall
direct the Depositary Agent to transfer Account Funds from the Excess Cash Flow
Account to the Debt Payment Account in an amount sufficient to make up the
deficiency in the Debt Payment Amount. 50% of any Account Funds remaining in the
Excess Cash Flow Account after making Scheduled Debt Service Payment on such
Annual Scheduled Payment Date may be disbursed to the Distribution Account if
the Distribution Test shall have been met for each of the previous 3
Determination Periods ending on the Determination Date immediately prior to such
Annual Scheduled Payment Date. The remaining 50% of such Account Funds may be
disbursed on the next Annual Scheduled Payment Date only if the Distribution
Test is met on the Determination Date immediately prior to such next Annual
Scheduled Payment Date. The Issuer may request that Account Funds in the Excess
Cash Flow Account be disbursed to the Distribution Account by submitting a
Disbursement Request for such purpose to the Collateral Agent at least 5
Business Days prior to any Annual Scheduled Payment Date. Upon receipt of such
Disbursement Request and if no Issuer Event of Default has occurred and is
continuing at the time the disbursement is to be made (unless otherwise directed
by XLCA (if XLCA is the Controlling Party) pursuant to the Common Agreement),
the Collateral Agent shall provide a copy of such Disbursement Request to the
Depositary Agent and direct the Depositary Agent to make the disbursement from
the Excess Cash Flow Account to the Distribution Account in accordance with such
Disbursement Request. Account Funds in the Excess Cash Flow Account that are not
disbursed in accordance with this Section 4.15.2 shall remain in the Excess Cash
Flow Account.

         4.16     EMS Letter of Credit Account.

                  4.16.1   Deposits into the EMS Letter of Credit Account.

                           (a)      The Collateral Agent shall deposit all
letters of credit received pursuant to the Energy Marketing Services Agreements
in the EMS Letter of Credit Account.

                           (b)      Other than as set forth in clause (a) of
this Section 4.16.1, no deposits shall be made into the EMS Letter of Credit
Account.

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<PAGE>

                  4.16.2   Disbursements from the EMS Letter of Credit Account.
Any drawing on the letter of credit in the EMS Letter of Credit Account shall be
used only to pay Scheduled Debt Service on any Annual Scheduled Payment Date.
Upon the satisfaction of the conditions to draw on the letter of credit in the
EMS Letter of Credit Account pursuant to the Energy Marketing Services
Agreements, the Collateral Agent shall draw on such letter of credit and deposit
the amount so drawn in the EMS Letter of Credit Account. If on any Annual
Scheduled Payment Date there are not sufficient Account Funds in the Debt
Payment Account to pay the Scheduled Debt Service due and payable on such Annual
Scheduled Payment Date (after giving effect to funding priority set forth in
Section 4.2.3 on such Annual Scheduled Payment Date), the Collateral Agent shall
direct the Depositary Agent to transfer Account Funds in the EMS Letter of
Credit Account in an amount sufficient to make up such deficiency to the Debt
Payment Account. The letter of credit and Account Funds in the EMS Letter of
Credit Account that are not disbursed in accordance with this Section 4.16.2
shall remain in the EMS Letter of Credit Account.

                                   ARTICLE V.
               PERMITTED INVESTMENTS; ACCEPTABLE LETTERS OF CREDIT

         5.1      Permitted Investments.

                  5.1.1    Making of Permitted Investments. Cash held in the
Accounts shall be invested and reinvested in Permitted Investments by the
Depositary Agent, which shall make such Permitted Investments (a) when no Issuer
Event of Default has occurred and is continuing, at the written direction of the
Issuer, and (b) when an Issuer Event of Default has occurred and is continuing,
at the written direction of XLCA (if XLCA is the Controlling Party). If there is
no direction from the Issuer or XLCA (if XLCA is the Controlling Party), any
cash held in any Account shall be deposited in the Cash Reserve Account at The
Bank of New York, an interest bearing demand cash account at the Depositary
Agent. The Depositary Agent shall have no obligation to invest or reinvest any
amounts held hereunder in the absence of written investment instructions, and in
no event shall the Depositary Agent be liable for the selection of Permitted
Investments or for investment losses, if any, incurred thereon. Any and all
commissions, broker fees or other charges, penalties, fees or expenses incurred
in connection with the investment in, or liquidation of, any Permitted
Investment shall be solely for the account of the Issuer, and shall be debited
against the cash balance in the applicable Account.

                  5.1.2    Liquidation of Permitted Investments. The Depositary
Agent shall sell or liquidate all or any portion of the Permitted Investments
held in any Account at any time the proceeds thereof are required to make any
disbursement from such Account in accordance with the terms of this Agreement.
Unless the Depositary Agent is otherwise instructed by the Collateral Agent, any
such sale or liquidation shall be in the order of maturity of the applicable
Permitted Investments, with Permitted Investments closest to maturity being sold
or liquidated first. In no event shall the Depositary Agent be liable for any
losses incurred as a result of the liquidation of any Permitted Investment prior
to its stated maturity (including, without limitation, any early withdrawal or
liquidation penalty) or the failure of any Person to provide timely written
investment instructions.

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<PAGE>

                  5.1.3    Crediting of Permitted Investments; Earnings. Each
Permitted Investment and the net proceeds of the sale or liquidation thereof
shall be held in the same Account from which the cash was taken to purchase such
Permitted Investment. All earnings on Permitted Investments shall be transferred
to the Revenue Account.

                  5.1.4    Further Assurances. The Issuer shall take or cause to
be taken all actions reasonably requested by the Collateral Agent that are
necessary to perfect the security interests in the Permitted Investments created
or purported to be created hereby.

         5.2      Acceptable Letters of Credit: EMS Letter of Credit.

                  5.2.1    Posting of Acceptable Letters of Credit. The Issuer
may satisfy its obligation to make or maintain a deposit of Account Funds in the
Debt Service Reserve Account, the Acquisition Indemnity/Performance LD Reserve
Account, the Peaker Collateralization Account and the NRG Claim Settlement
Account or to make or maintain a Cash Collateral Deposit pursuant to the Parent
Agreement by posting an Acceptable Letter of Credit in lieu thereof. Except as
provided in Section 4.3.2, if after giving effect to the posting of any such
Acceptable Letter of Credit the amount of Account Funds in the applicable
Account or Cash Collateral Deposit in the applicable Cash Collateral Account, as
the case may be, exceeds the amount required to be maintained on deposit therein
pursuant to this Agreement or the Parent Agreement, the Collateral Agent shall
direct to the Depositary Agent to disburse an amount of immediately available
funds in Dollars equal to such excess from such Account or Cash Collateral
Account to NRG Energy or any Affiliate thereof as directed by the Issuer.

                  5.2.2    Drawings on Acceptable Letters of Credit or EMS
Letter of Credit. At any time when an Acceptable Letter of Credit or the EMS
Letter of Credit is outstanding for an Account or a Cash Collateral Account, the
Collateral Agent shall request drawings under such Acceptable Letter of Credit
or the EMS Letter of Credit as follows:

                                    (a)      if on any date there are
         insufficient funds in such Account or Cash Collateral Account to make
         the disbursements required to be made therefrom in accordance with this
         Agreement or the Parent Agreement, the Collateral Agent shall request a
         drawing under such Acceptable Letter of Credit in an amount equal to
         such deficiency;

                                    (b)      if the Collateral Agent receives a
         notice from the issuer of an Acceptable Letter of Credit or the EMS
         Letter of Credit that such Acceptable Letter of Credit or the EMS
         Letter of Credit will terminate on a specified date and the Issuer or
         NRG Energy, as the case may be, does not provide to the Collateral
         Agent, at least 5 Business Days prior to the termination date set forth
         in the termination notice or at least 15 Business Days with respect to
         the EMS Letter of Credit, a replacement Acceptable Letter of Credit,
         the replacement EMS Letter of Credit and/or immediately available funds
         in Dollars in an amount (the "Replacement Amount") sufficient to
         achieve the balance required to be maintained in such Account or Cash
         Collateral Account pursuant to this Agreement, the Energy Marketing
         Services Agreement or the Parent Agreement, the Collateral Agent shall,
         prior to such termination date, request a drawing under such Acceptable
         Letter of Credit or the EMS Letter of Credit in an amount equal to the
         lesser

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<PAGE>

         of (i) the then current Stated Amount of such Acceptable Letter of
         Credit or the EMS Letter of Credit and (ii) the Replacement Amount;

                                    (c)      if the Issuer or NRG Energy, as the
         case may be, has not provided to the Collateral Agent, at least 15 days
         prior to the scheduled expiration date of such Acceptable Letter of
         Credit or the EMS Letter of Credit, a replacement Acceptable Letter of
         Credit or the replacement EMS Letter of Credit, as applicable, and/or
         immediately available funds in Dollars in an amount equal to the then
         current Replacement Amount, the Collateral Agent shall promptly request
         a drawing under such Acceptable Letter of Credit or the EMS Letter of
         Credit in an amount equal to the lesser of (i) the then current Stated
         Amount of such Acceptable Letter of Credit or the EMS Letter of Credit
         and (ii) such Replacement Amount; and

                                    (d)      if the Collateral Agent obtains
         notice that the long-term debt rating of the issuer of such Acceptable
         Letter of Credit or the EMS Letter of Credit has fallen below A2 as
         determined by Moody's or A as determined by S&P and the Issuer or NRG
         Energy, as the case may be, does not provide to the Collateral Agent,
         prior to the date which is 30 days after the date of such ratings
         decrease, a replacement Acceptable Letter of Credit, the replacement
         EMS Letter of Credit and/or immediately available funds in Dollars in
         an amount equal to the then current Replacement Amount, the Collateral
         Agent shall promptly request a drawing under such Acceptable Letter of
         Credit or the EMS Letter of Credit in an amount equal to the lesser of
         (i) the then current Stated Amount of such Acceptable Letter of Credit
         or the EMS Letter of Credit and (ii) such Replacement Amount.

         The Collateral Agent shall deposit the proceeds of drawings under an
Acceptable Letter of Credit or the EMS Letter of Credit into the Account or Cash
Collateral Account for such Acceptable Letter of Credit or the EMS Letter of
Credit is posted.

                  5.2.3    Priority of Funding Sources. Unless otherwise
directed in writing by the Issuer, the Collateral Agent shall first apply
amounts on deposit in an Account or a Cash Collateral Account prior to drawing
on any Acceptable Letter of Credit or the EMS Letter of Credit posted therefor.
On any date on which a drawing under an Acceptable Letter of Credit or the EMS
Letter of Credit posted for an Account may otherwise be made pursuant to clause
(b), (c) or (d) of Section 5.2.2, the Collateral Agent shall, upon the written
request of the Issuer, direct the Depositary Agent to first transfer Account
Funds (if any) from the Distribution Account to such Account in an amount equal
to the lesser of (i) the amount of such proposed drawing and (ii) the amount of
Account Funds in the Distribution Account on such date.

                                  ARTICLE VI.
                                DEPOSITARY AGENT

         6.1      Appointment; Powers and Immunities. The Collateral Agent
hereby appoints and authorizes the Depositary Agent to act as depositary agent
hereunder with such powers as are expressly delegated to the Depositary Agent by
the terms of this Agreement. The Depositary Agent hereby accepts such
appointment and each Financing Party hereby acknowledges such appointment. The
Depositary Agent shall not have any duties or responsibilities except those

                                       30

<PAGE>

expressly set forth in this Agreement, nor shall it be a trustee or a fiduciary
for any Financing Party or any Secured Party. Notwithstanding anything to the
contrary contained herein, the Depositary Agent shall not be required to take
any action which is contrary to this Agreement or any other Financing Document
or any Legal Requirement or which exposes the Depositary Agent to any liability.
The Depositary Agent and its directors, officers, employees and agents shall not
be responsible or held liable for any action taken or omitted to be taken by it
or them hereunder or in connection herewith, except for its or their own gross
negligence or willful misconduct. The Depositary Agent may employ agents,
custodians, nominees and attorneys-in-fact and shall not be responsible for the
negligence or misconduct of any such agents, custodians, nominees or
attorneys-in-fact selected by it with reasonable care. Except as otherwise
provided under this Agreement, the Depositary Agent shall take only such action
with respect to the Accounts and Account Funds as shall be directed by the
Collateral Agent. None of the provisions of this Agreement shall require the
Depositary Agent to expend or risk its own funds or otherwise to incur any
liability, financial or otherwise, in the performance of any of its duties
hereunder, or in the exercise of any of its rights or powers, if it shall have
reasonable grounds for believing that repayment of such funds or indemnity
satisfactory to it against such risk or liability is not assured to it.

         6.2      Reliance by Depositary Agent. The Depositary Agent shall be
fully entitled to conclusively rely upon any certificate, notice, resolution,
statement, instrument, opinion, report, request, consent, order, approval or
other paper or document (including facsimile) believed by it to be genuine and
correct and to have been signed or sent by or on behalf of the proper Person or
Persons, and upon advice and statements of legal counsel, independent
accountants and other experts selected by the Depositary Agent. The Depositary
Agent shall not be bound to make any investigation into the facts or matters
stated in any resolution, certificate, statement, instrument, opinion, report,
notice, request, consent, entitlement order, approval or other paper or
document. Whenever in the administration of the provisions of this Agreement the
Depositary Agent shall deem it necessary or desirable that a matter be proved or
established prior to taking or suffering any action to be taken hereunder, such
matter (unless other evidence in respect thereof be herein specifically
prescribed) may, in the absence of gross negligence or bad faith on the part of
the Depositary Agent, be deemed to be conclusively proved and established by a
certificate signed by a Responsible Officer of any Financing Party or the
Collateral Agent, and delivered to the Depositary Agent and such certificate, in
the absence of gross negligence or bad faith on the part of the Depositary
Agent, shall be full warrant to the Depositary Agent for any action taken,
suffered or omitted by it under the provisions of this Agreement upon the faith
thereof. As to any other matters not expressly provided for by this Agreement,
the Depositary Agent shall not be required to take any action or exercise any
discretion, but shall be required to act or to refrain from acting upon
instructions of the Collateral Agent (except the Depositary Agent shall not be
required to take any action which exposes the Depositary Agent to personal
liability or which is contrary to this Agreement, any other Financing Document
or any Legal Requirement) and shall in all cases be fully protected in acting,
or in refraining from acting, hereunder in accordance with the instructions of
the Collateral Agent. The Depositary Agent shall not be deemed to have knowledge
or notice of the occurrence of any Issuer Inchoate Default, Issuer Event of
Default, Project Event of Default or Project Inchoate Default unless a
Responsible Officer of the Depositary Agent has received a written notice from
the Collateral Agent or a Financing Party, referring to this Agreement,
describing such Issuer Inchoate Default, Issuer Event of Default, Project Event
of Default or Project Inchoate Default and indicating that such written notice
is a

                                       31

<PAGE>

notice of default. In addition, the Depositary Agent may conclusively rely, as
to the correctness of the mathematical calculations and any dollar amounts set
forth in any Disbursement Request or contained in any other instructions,
directions and certificates, and need not confirm or investigate the accuracy of
such mathematical calculations, dollar amounts or other facts stated therein.

         6.3      Indemnification. The Issuer assumes all liabilities for, and
agrees to indemnify, protect, save and keep harmless the Depositary Agent and
its successors, assigns, agents, attorneys and servants from and against, any
and all claims, liabilities, obligations, losses, damages, penalties, costs and
reasonable expenses that may be imposed on, incurred by, or asserted against, at
any time, the Depositary Agent and in any way relating to or arising out of the
execution, delivery and performance of this Agreement, the establishment of the
Accounts, the acceptance of deposits, the purchase or sale of Permitted
Investments, the retention of cash and Permitted Investments or the proceeds
thereof, draws on an Acceptable Letter of Credit and any payment, transfer or
other application of cash, Permitted Investments or the proceeds of draws on an
Acceptable Letter of Credit by the Depositary Agent in accordance with the
provisions of this Agreement, or as may arise by reason of any act, omission or
error of the Depositary Agent made in good faith in the conduct of its duties;
except that the Issuer shall not be required to indemnify, protect, save and
keep harmless the Depositary Agent against its own gross negligence or willful
misconduct. The indemnities contained in this Section 6.3 shall survive the
termination of this Agreement or removal or resignation of the Depositary Agent.

         6.4      Resignation and Removal.

                  6.4.1    Resignation. The Depositary Agent may at any time
resign by giving notice to each other party to this Agreement, such resignation
to be effective upon the appointment of a successor depositary agent as provided
below. The Collateral Agent (upon the direction of the Controlling Party) may
remove the Depositary Agent at any time by giving written notice to each other
party to this Agreement, such removal to be effective upon the appointment of a
successor depositary agent as provided below.

                  6.4.2    Removal. In the event of any resignation or removal
of the Depositary Agent, a successor depositary agent, which shall be a bank or
trust company organized under the laws of the United States of America or of the
State of New York, having a corporate trust office in New York City and capital
and surplus of not less than $50,000,000, shall be promptly appointed by the
Collateral Agent with (so long as no Issuer Event of Default has occurred and is
continuing) the approval of Issuer. If a successor depositary agent shall not
have been appointed and accepted its appointment as depositary agent within 45
days after such notice of resignation of the Depositary Agent or such notice of
removal of the Depositary Agent, the Depositary Agent, the Collateral Agent or
any Financing Party may apply (at the sole cost and expense of the Issuer) to
any court of competent jurisdiction to appoint a successor depositary agent to
act until such time, if any, as a successor depositary agent shall have accepted
its appointment as provided above. A successor depositary agent so appointed by
such court shall immediately and without further act be superseded by any
successor depositary agent appointed by the Collateral Agent as provided above.
Any successor depositary agent shall be capable of acting as a "securities
intermediary" (within the meaning of Section 8-102(14) of the UCC) and a "bank"
(within the meaning of Section 9-102(a)(8) of the UCC) and shall promptly
deliver to each party

                                       32

<PAGE>

to this Agreement a written instrument accepting such position and thereupon
such successor depositary agent shall succeed to all the rights and duties of
the Depositary Agent, and release the Depositary Agent from its obligations,
under this Agreement and shall be entitled to receive the Accounts and the
Account Funds from the Depositary Agent upon executing a security deposit
agreement substantially in the form of this agreement.

                  6.4.3    Transfer of Funds. Upon the replacement of the
Depositary Agent hereunder, all Account Funds in the Accounts shall be
transferred to the successor depositary agent. In the event of the resignation
or removal of the Depositary Agent, the Depositary Agent shall be entitled to
its fees and expenses in accordance with the terms hereof up to the time such
resignation or removal becomes effective in accordance with this Section 6.4.

         6.5      Directions to Depositary Agent. All written directions and
instructions (which may be provided by facsimile transmission) by the Issuer and
the Collateral Agent to the Depositary Agent pursuant to this Agreement shall be
executed by an authorized signatory (each, an "Authorized Signatory") of the
Issuer or the Collateral Agent, as applicable. No Person shall be deemed to be
an Authorized Signatory of the Issuer unless such person is named on a
certificate of incumbency delivered to the Depositary Agent on the Closing Date
or is otherwise named in a written notice signed by an Authorized Signatory and
delivered by the Issuer to the Depositary Agent at any time subsequent to the
Closing Date. All directions, orders and other instructions provided by the
Collateral Agent to the Depositary Agent hereunder shall be in writing.

         6.6      Payment of Fees and Expenses to Depositary Agent. The Issuer
covenants and agrees to pay to the Depositary Agent from time to time, or, if
the Issuer fails to make such payment, the Depositary Agent may reimburse itself
for from the Revenue Account, and the Depositary Agent shall be entitled to, the
fees and expenses agreed in writing between the Issuer and the Depositary Agent,
and will further pay or reimburse the Depositary Agent, or, if the Issuer fails
to make such payment, the Depositary Agent may reimburse itself from the Revenue
Account, upon its request for all expenses, disbursements and advances incurred
or made by the Depositary Agent in accordance with any of the provisions hereof
or any other documents executed in connection herewith (including the reasonable
compensation and the reasonable expenses and disbursements of its counsel and of
all persons not regularly in its employ). The obligations of the Issuer under
this Section 6.6 to compensate the Depositary Agent and to pay or reimburse the
Depositary Agent for reasonable expenses, disbursements and advances shall
survive the satisfaction and discharge of this Agreement or the earlier
resignation or removal of the Depositary Agent.

                                  ARTICLE VII.
                                  MISCELLANEOUS

         7.1      Termination and Release.

                  7.1.1    Termination. The rights and powers granted herein to
the Collateral Agent have been granted in order to, among other things, perfect
its security interest in the Accounts and Account Funds, are powers coupled with
an interest, and will be affected neither by the bankruptcy of any Financing
Party nor by the lapse of time. Except as otherwise provided

                                       33

<PAGE>

herein, the obligations of the Depositary Agent hereunder shall continue in
effect until the security interest of the Collateral Agent in the Accounts and
Account Funds have been terminated pursuant to the terms of this Agreement and
the other Financing Documents and the Collateral Agent has notified the
Depositary Agent of such termination in writing. When the Common Agreement has
expired or has otherwise earlier terminated and all Obligations have been paid
or satisfied in full in cash, all right, title and interest of the Collateral
Agent in the Accounts and Account Funds shall revert to the Financing Parties.
At such time, the Collateral Agent shall direct the Depositary Agent to, and
upon such direction the Depositary Agent shall, pay any Account Funds (including
Permitted Investments) then remaining in the Accounts to the Issuer. No
termination of any Secured Party's interest hereunder shall affect the rights of
any other Secured Party hereunder.

                  7.1.2    Release. Upon the occurrence of a Project Release
Event with respect to a Project, the applicable Project Company shall be
released from its obligations hereunder and the Collateral Agent shall direct
the Depositary Agent to transfer any Account Funds then remaining in the Revenue
Account in respect of such Project (after giving effect to all payments required
to be made in connection with such Project Release Event under the Financing
Documents) to the Loss Proceeds Account to be disbursed in accordance with
Section 4.7.2(c). The Collateral Agent and the Depository Agent agree to execute
such documents and take such other actions as are reasonably requested by, and
at the expense of, the Issuer to effect or evidence the releases described in
this Section 7.1.2.

         7.2      Notices. Any communications between the parties hereto or
notices provided herein to be given may be given to the following addresses:

                  If to the Collateral Agent:   The Bank of New York
                                                101 Barclay Street, Floor 8 West
                                                New York, NY  10286
                                                Attention: Corporate Trust
                                                Administration
                                                Telephone No.: (212) 815-4816
                                                Facsimile No.: (212) 815-5707

                  If to the Issuer:             901 Marquette Avenue
                                                Suite 2300
                                                Minneapolis, Minnesota  55402
                                                Attn: General Counsel
                                                Telephone No.: (612) 373-5300
                                                Telecopy No.: (612) 373-5392

                                       34

<PAGE>

                                                with a copy to:

                                                Kirkland & Ellis LLP
                                                153 East 53rd Street
                                                New York, New York  10022
                                                Attention: Lisa M. Anastos
                                                Telephone No.: (212) 446-4761
                                                Telecopy No.: (212) 446-4900

                  If to any Project Company:    901 Marquette Avenue
                                                Suite 2300
                                                Minneapolis, Minnesota  55402
                                                Attn: General Counsel
                                                Telephone No.: (612) 373-5300
                                                Telecopy No.: (612) 373-5392

                                                with a copy to:

                                                Kirkland & Ellis LLP
                                                153 East 53rd Street
                                                New York, New York  10022
                                                Attention:  Lisa M. Anastos
                                                Telephone No.: (212) 446-4761
                                                Telecopy No.: (212) 446-4900

                  If to the Depositary Agent:   The Bank of New York
                                                101 Barclay Street, Floor 8 West
                                                New York, NY 10286
                                                Attention: Corporate Trust
                                                Administration
                                                Telephone No.: (212) 815-4816
                                                Facsimile No.: (212) 815-5707

All notices, directions or other communications required or permitted to be
given hereunder shall be in writing and shall be considered as properly given
(a) if delivered in person, (b) if sent by overnight delivery service (including
Federal Express, UPS, ETA, Emery, DHL, AirBorne and other similar overnight
delivery services), (c) in the event overnight delivery services are not readily
available, if mailed by first class United States Mail, postage prepaid,
registered or certified with return receipt requested, (d) if sent by prepaid
telegram or by facsimile or (e) if sent by other electronic means (including
electronic mail) confirmed by facsimile or telephone (provided that notices in
the form described in clause (e) shall not be considered properly given to the
extent such notice is provided to the Collateral Agent or the Depositary Agent).
Notice so given shall be effective upon receipt by the addressee, except that
communication or notice so transmitted by facsimile or other direct electronic
means shall be deemed to have been validly and effectively given on the day (if
a Business Day and, if not, on the next following Business Day) on which it is
transmitted if transmitted before 4:00 p.m., recipient's time, and if
transmitted after that time, on the next following Business Day; provided,
however, that if any

                                       35

<PAGE>

notice is tendered to an addressee and the delivery thereof is refused by such
addressee, such notice shall be effective upon such tender. Any party shall have
the right to change its address for notice hereunder to any other location
within the continental United States by giving of 30 days' notice to the other
parties in the manner set forth above.

         7.3      Benefit of Agreement. Nothing in this Agreement, expressed or
implied, shall give or be construed to give to any Person other than the parties
hereto and the Secured Parties any legal or equitable right, remedy or claim
under this Agreement, or under any covenants and provisions of this Agreement,
each such covenant and provision being for the sole benefit of the parties
hereto and the Secured Parties.

         7.4      Delay and Waiver. No failure or delay by the Collateral Agent
or the Depositary Agent in exercising any right or power hereunder shall operate
as a waiver thereof, nor shall any single or partial exercise of any such right
or power, or any abandonment or discontinuance of steps to enforce any such
right or power, preclude any other or further exercise thereof or the exercise
of any other right or power. The rights and remedies of the Collateral Agent and
the Depositary Agent hereunder are cumulative and are not exclusive of any
rights or remedies that they would otherwise have. No waiver of any provision of
this Agreement or consent to any departure by any Financing Party therefrom
shall in any event be effective unless the same shall be permitted by Section
7.5, and then such waiver or consent shall be effective only in the specific
instance and for the purpose for which given.

         7.5      Amendments. This Agreement may not be terminated, amended,
amended and restated, supplemented or otherwise modified, except pursuant to a
writing signed by each of the parties hereto.

         7.6      Governing Law. This Agreement, including all matters of
construction, validity and performance and the creation, validity, enforcement
or priority of the lien of, and security interests created by, this Agreement in
or upon the Accounts and Account Funds shall be governed by the laws of the
State of New York, without reference to conflicts of law (other than Section
5-1401 of the New York General Obligations Law), except as required by mandatory
provisions of law and except to the extent that the validity or perfection of
the lien and security interests hereunder, or remedies hereunder, in respect of
any particular Account are governed by the laws of a jurisdiction other than the
State of New York. Regardless of any provision herein or in any other agreement,
for purposes of the UCC, the "securities intermediary's jurisdiction and the
"bank's jurisdiction" of the Depositary Agent with respect to the Accounts is
the State of New York.

         7.7      Consent to Jurisdiction. The Collateral Agent, the Depositary
Agent and each Financing Party agree that any legal action or proceeding by or
against any Financing Party or with respect to or arising out of this Agreement
may be brought in or removed to the courts of the State of New York, in and for
the County of New York, or of the United States of America for the Southern
District of New York, as the Collateral Agent may elect. By execution and
delivery of this Agreement, the Collateral Agent, the Depositary Agent and each
Financing Party accept, for themselves and in respect of their property,
generally and unconditionally, the jurisdiction of the aforesaid courts. The
Collateral Agent, the Depositary Agent and each Financing Party irrevocably
consent to the service of process out of any of the aforementioned

                                       36

<PAGE>

courts in any manner permitted by law. Nothing herein shall affect the right of
the Collateral Agent or the Depositary Agent to bring legal action or
proceedings in any other competent jurisdiction. The Collateral Agent, the
Depositary Agent and each Financing Party hereby waive any right to stay or
dismiss any action or proceeding under or in connection with this Agreement
brought before the foregoing courts on the basis of forum non conveniens.

         7.8      WAIVER OF JURY TRIAL. EACH FINANCING PARTY, THE DEPOSITARY
AGENT AND THE COLLATERAL AGENT HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY
WAIVE ANY RIGHTS THEY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION
BASED HEREON, OR ARISING OUT OF, UNDER OR IN CONNECTION WITH, THIS AGREEMENT, OR
ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER VERBAL OR WRITTEN)
OR ACTIONS OF ANY FINANCING PARTY, THE DEPOSITARY AGENT OR THE COLLATERAL AGENT.
THIS PROVISION IS A MATERIAL INDUCEMENT FOR EACH PARTY TO ENTER INTO THIS
AGREEMENT.

         7.9      Severability. The provisions of this Agreement are severable,
and if any clause or provision shall be held invalid or unenforceable in whole
or in part in any jurisdiction, then such invalidity or unenforceability shall
affect only such clause or provision, or part thereof, in such jurisdiction and
shall not in any manner affect such clause or provision in any other
jurisdiction, or any other clause or provision of this Agreement in any
jurisdiction.

         7.10     Headings. Article and Section headings have been inserted in
this Agreement as a matter of convenience for reference only and it is agreed
that such article and section headings are not parts of this Agreement and shall
not be used in the interpretation of any provision of this Agreement.

         7.11     Successors and Assigns. This Agreement shall be binding upon
and inure to the benefit of the parties hereto and their respective successors
and assigns, provided that (a) no Financing Party may assign or otherwise
transfer any of its rights or obligations hereunder without the prior written
consent of the Collateral Agent (in accordance with Section 9.2 of the Common
Agreement) or as otherwise expressly permitted by the Financing Documents and
(b) the Depositary Agent may only assign or otherwise transfer any of its rights
or obligations hereunder in accordance with the terms of this Agreement
(including Article VI).

         7.12     Entire Agreement. This Agreement and any agreement, document
or instrument attached hereto or referred to herein among the parties hereto
integrate all the terms and conditions mentioned herein or incidental hereto and
supersede all oral negotiations and prior writings in respect of the subject
matter hereof.

         7.13     Consequential Damages. In no event shall the Depositary Agent
or the Collateral Agent be liable for special, indirect, punitive or
consequential loss or damage of any kind whatsoever (including lost profits), in
connection with, arising out of or in any way related to the transactions
contemplated by this Agreement, even if the Depositary Agent has been advised of
the likelihood of such loss or damage and regardless of the form of action.

                                       37

<PAGE>

         7.14     Survival of Agreements. All covenants, agreements,
representations and warranties made by the Financing Parties herein and in the
certificates or other instruments delivered in connection with or pursuant to
this Agreement shall be considered to have been relied upon by the other parties
hereto and shall survive the execution and delivery of this Agreement and shall
continue in full force and effect as long as any of the Obligations are
outstanding and unpaid. The provisions of this Agreement regarding the payment
of expenses and indemnification obligations, including Sections 6.3 and 6.6,
shall survive and remain in full force and effect regardless of the consummation
of the transactions contemplated hereby, the payment of all Obligations or the
termination of this Agreement or any provision hereof.

         7.15     Counterparts. This Agreement and any amendments, waivers,
consents or supplements hereto or in connection herewith may be executed in any
number of counterparts and by different parties hereto in separate counterparts,
each of which when so executed and delivered shall be deemed an original, but
all such counterparts together shall constitute but one and the same instrument;
signature pages may be detached from multiple separate counterparts and attached
to a single counterpart so that all signature pages are physically attached to
the same document.

         7.16     Ownership of Account Funds. On any day each Project Company
shall be deemed to own an amount of Account Funds in each Account determined in
accordance with the following:

                  (a)      With respect to the Revenue Account, the Debt Payment
         Account, the Excess Cash Flow Account and the Distribution Account,
         each Project Company will be deemed to own on any given day an amount
         of Account Funds in such Account equal to (i)(A) the aggregate amount
         of Project Revenues deposited into the Revenue Account in respect of
         such Project Company on or prior to such day divided by (B) the
         aggregate amount of Project Revenues deposited into the Revenue Account
         in respect of all Project Companies on or prior to such day, multiplied
         by (ii) the aggregate amount of Account Funds in such Account on such
         day.

                  (b)      With respect to the Debt Service Reserve Account,
         each Project Company will be deemed to own on any given day an amount
         of Account Funds in such Account equal to (i) such Project Company's
         Allocation Percentage multiplied by (ii) the aggregate amount of
         Account Funds in such Account on such day.

                  (c)      With respect to the Completion Account, the Loss
         Proceeds Account and the Peaker Collateralization Account and the Major
         Maintenance Reserve Account, each Project Company will be deemed to own
         on any given day an amount of Account Funds in such Account equal to
         (i) the amount of funds deposited into such Account in respect of such
         Project Company on or prior to such day minus (b) the amount of funds
         disbursed from such Account in respect of such Project Company on or
         prior to such day.

                  (d)      With respect to the Acquisition Indemnity/Performance
         LD Reserve Account, each Project Company will be deemed to own any
         given day an amount of Account Funds in such Account equal to (i) the
         amount of funds deposited into such Account in respect of such Project
         Company on or prior to such day minus (ii)(A) (1) the

                                       38

<PAGE>

         amount of funds deposited into such Account in respect of such Project
         Company on or prior to such day divided by (2) the aggregate amount of
         funds deposited into such Account in respect of all Project Companies
         on or prior to such day multiplied by (B) the aggregate amount of funds
         withdrawn from such Account on or prior to such day.

                  (e)      With respect to the Fuel Accounts and the Operating
         Accounts, each Project Company owns its own Fuel Account and Operating
         Account.

                  (f)      With respect to the Corporate Services Payment
         Account, each Project Company will be deemed to own on any given day an
         amount of Account Funds in such Account equal to such Project Company's
         pro rata share of the aggregate amount of Account Funds in such Account
         on such day.

                  Notwithstanding the foregoing, Project Revenues paid by a
Project Company to the Issuer constituting a mandatory prepayment of amounts
evidenced by a Project Loan Note executed by such Project Company, shall be the
property of the Issuer.

         7.17     Rights of Collateral Agent. In acting under or by virtue of
this Agreement, the Collateral Agent shall be entitled to all the rights,
privileges, and immunities provided to it in the Common Agreement, all of which
are incorporated by reference herein with the same force and effect as if set
forth herein in their entirety.

                            [SIGNATURE PAGE FOLLOWS]

                                       39

<PAGE>

                  IN WITNESS WHEREOF, the parties hereto, by their officers duly
authorized, intending to be legally bound, have caused this Security Deposit
Agreement to be duly executed and delivered as of the date first above written.

                                              NRG PEAKER FINANCE COMPANY LLC,
                                              as Issuer

                                              By:_______________________________
                                                 Name:
                                                 Title:

                                              BAYOU COVE PEAKING POWER, LLC,
                                              as Project Company

                                              By:_______________________________
                                                 Name:
                                                 Title:

                                              BIG CAJUN I PEAKING POWER LLC,
                                              as Project Company

                                              By:_______________________________
                                                 Name:
                                                 Title:

                                              NRG ROCKFORD LLC,
                                              as Project Company

                                              By:_______________________________
                                                 Name:
                                                 Title:

                                              NRG ROCKFORD II LLC,
                                              as Project Company

                                              By:_______________________________
                                                 Name:
                                                 Title:

                                              NRG STERLINGTON POWER LLC,
                                              as Project Company

                                              By:_______________________________
                                                 Name:
                                                 Title:

<PAGE>

                                              THE BANK OF NEW YORK,
                                              as Collateral Agent

                                              By:_______________________________
                                                 Name:
                                                 Title:

                                              THE BANK OF NEW YORK,
                                              as Depositary Agent

                                              By:_______________________________
                                                 Name:
                                                 Title:

<PAGE>

                                                                       EXHIBIT A
                                                   to Security Deposit Agreement

                        FORM OF DISBURSEMENT REQUEST(1)

                                                                          [Date]

The Bank of New York, as Collateral Agent
101 Barclay Street, Floor 8 West
New York, New York  10286
Attention:  Corporate Trust Department

The Bank of New York, as Depositary Agent
101 Barclay Street, Floor 8 West
New York, New York  10286
Attention:  Corporate Trust Department

                  Re:  NRG Peaker Finance Company LLC

Ladies and Gentlemen:

                  NRG Peaker Finance Company LLC (the "Issuer") is delivering
         this Disbursement Request pursuant to the Amended and Restated Security
         Deposit Agreement, dated January 6, 2004 (the "Depositary Agreement"),
         among the Issuer, each Project Company party thereto, The Bank of New
         York, as Collateral Agent and The Bank of New York, as Depositary
         Agent. Capitalized terms used but not defined herein shall have the
         meanings given to such terms in Annex A to the Common Agreement (as
         defined in the Depositary Agreement).

                  [Insert the following, as applicable in accordance with
         Section 4.1.2 of the Depositary Agreement, for disbursements from the
         Revenue Account --

                  Pursuant to Section 4.1.2 of the Depositary Agreement, we
hereby request that the following disbursements be made from the Revenue
Account:

                  (1)      On [INSERT MONTHLY DATE], transfer $__________ to the
         Collateral Agent for payment to the Secured Parties, the Trustee, the
         Collateral Agent and/or the Depositary Agent, in accordance with
         priority Fourth in Section 4.1.2 of the Depositary Agreement, the
         following amounts:

---------------------------
(1)  To the extent there are not sufficient Account Funds in the Accounts to
       make the disbursements therefrom, such disbursements will be made in
       accordance with the Depositary Agreement.

                                      A-1

<PAGE>

         (a)      $______, to XLCA [Insert wire/account information];

         (b)      $______, to the Trustee for the benefit of the Bondholders;

         (c)      $______, to the Swap Counterparty [Insert wire/account
         information];

         (d)      $______, to the Trustee in its trust capacity;

         (e)      $______, to the Collateral Agent in its trust capacity; and

         (f)      $______, to the Depositary Agent.

                  (2)      On [INSERT APPLICABLE MONTHLY DATE THAT IS ALSO A
         SCHEDULED PAYMENT DATE], transfer $__________ to the Collateral Agent
         for payment to the Secured Parties, the Trustee, the Collateral Agent
         and/or the Depositary Agent, in accordance with priority Fifth in
         Section 4.1.2 of the Depositary Agreement, the following amounts:

         (a)      $______, to XLCA [Insert wire/account information];

         (b)      $______, to the Trustee for the benefit of the Bondholders;

         (c)      $______, to the Swap Counterparty [Insert wire/account
         information];

         (d)      $______, to the Trustee in its trust capacity;

         (e)      $______, to the Collateral Agent in its trust capacity; and

         (f)      $______, to the Depositary Agent.

                  (3)      On [INSERT APPLICABLE MONTHLY DATE THAT IS ALSO A
         SCHEDULED PAYMENT DATE], transfer $__________ to the Debt Payment
         Account in accordance with priority Sixth in Section 4.1.2 of the
         Depositary Agreement.

                  (4)      On [INSERT APPLICABLE MONTHLY DATE THAT IS ALSO AN
         ANNUAL SCHEDULED PAYMENT DATE], transfer $__________ to XLCA in
         accordance with priority Seventh in Section 4.1.2 of the Depositary
         Agreement.

                                      A-2

<PAGE>

                  (5)      On [INSERT APPLICABLE MONTHLY DATE THAT IS ALSO AN
         ANNUAL SCHEDULED PAYMENT DATE], transfer $__________ to XLCA in
         accordance with priority Eighth in Section 4.1.2 of the Depositary
         Agreement.

                  (6)      On [INSERT APPLICABLE MONTHLY DATE THAT IS ALSO AN.
         ANNUAL SCHEDULED PAYMENT DATE], transfer $__________ to the Collateral
         Agent for payment to the Secured Parties, in accordance with priority
         Ninth in Section 4.1.2 of the Depositary Agreement, the following
         amounts:

         (a)      $______, to XLCA [Insert wire/account information];

         (b)      $______, to the Trustee for the benefit of the Bondholders;

         (c)      $______, to the Swap Counterparty [Insert wire/account
         information];

         (d)      $______, to the Trustee in its trust capacity;

         (e)      $______, to the Collateral Agent in its trust capacity; and

         (f)      $______, to the Depositary Agent.

                  (7)      On [INSERT APPLICABLE MONTHLY DATE THAT IS ALSO AN
         ANNUAL SCHEDULED PAYMENT DATE], transfer $__________ to the Major
         Maintenance Reserve Account in accordance with priority Tenth in
         Section 4.1.2 of the Depositary Agreement.

                  (8)      On [INSERT APPLICABLE MONTHLY DATE THAT IS ALSO AN
         ANNUAL SCHEDULED PAYMENT DATE], transfer $__________ to the Corporate
         Service Payment Account in accordance with priority Eleventh in Section
         4.1.2 of the Depositary Agreement.

                  (9)      On [INSERT APPLICABLE MONTHLY DATE THAT IS ALSO AN
         ANNUAL SCHEDULED PAYMENT DATE], transfer $__________ to the Debt
         Service Reserve Account in accordance with priority Twelfth in Section
         4.1.2 of the Depositary Agreement.

                  (10)     On [INSERT APPLICABLE MONTHLY DATE THAT IS ALSO AN
                  ANNUAL SCHEDULED PAYMENT DATE], transfer $__________ to the
                  Corporate Service Payment

                                       A-3

<PAGE>

                  Account in accordance with priority Thirteenth in Section
                  4.1.2 of the Depositary Agreement.

         (11)     On [INSERT APPLICABLE MONTHLY DATE THAT IS ALSO AN ANNUAL
SCHEDULED PAYMENT DATE], transfer $__________ to [DELETE AS APPLICABLE] [the
Distribution Account] [the Excess Cash Flow Account] in accordance with priority
Fourteenth in Section 4.1.2 of the Depositary Agreement.

         We hereby certify, as of [INSERT THE MONTHLY DATE], that (a) no Issuer
Event of Default has occurred and is continuing or will result from the
disbursements requested hereby and (b) we have complied with all applicable
provisions of the relevant Financing Documents relating to the disbursements
requested hereby.]

         [Insert the following for disbursements from the Distribution Account--

         Pursuant to Section 4.6.2 of the Depositary Agreement, we hereby
request that the [Restricted Payments] [Tax Distributions] specified on Part A
of Schedule I hereto be made from the Distribution Account on [INSERT PROPOSED
[RESTRICTED PAYMENT DATE] [SUBSEQUENT RESTRICTED PAYMENT DATE] [SUBSEQUENT
PROJECT RESTRICTED PAYMENT DATE]] (the "Restricted Payment Date").

         [INSERT AS APPLICABLE- [Attached hereto is the certificate required to
be delivered pursuant to Section 4.5(a)(vii) of the Common Agreement.] [The
Issuer hereby certifies that the Tax Distributions requested hereby are of the
kind described in Section 4.5[e][f] of the Common Agreement and each of the
conditions set forth in Section 4.5[e][f] are satisfied.]]

         We hereby [FURTHER] certify that we have complied with all applicable
provisions of the relevant Financing Documents relating to the disbursements
requested hereby.]

         [Insert the following for disbursements from the Excess Cash Flow
Account--

         Pursuant to Section 4.15.2 of the Depositary Agreement, we hereby
request that the disbursement be made from the Excess Cash Flow Account to the
Distribution Account on [INSERT ANNUAL SCHEDULED PAYMENT DATE].

         The total amount of the requested disbursements is $______.

         We hereby certify, as of [INSERT ANNUAL SCHEDULED PAYMENT DATE], that
(a) no Issuer Event of Default has occurred and is continuing or will result
from the disbursements requested hereby and (b) we have complied with all
applicable provisions of the relevant Financing Documents relating to the
disbursements requested hereby.]

                                      A-4

<PAGE>

         [Insert the following for disbursements of Casualty Insurance Proceeds
or Condemnation Proceeds from the Loss Proceeds Account --

         Pursuant to Section 4.7.2([a][b](iii)) of the Depositary Agreement, we
hereby request that the disbursements specified on Part B of Schedule I hereto
be made from the Loss Proceeds Account on [INSERT DATE(S) OF REQUESTED
DISBURSEMENT] (the "Disbursement Date"). Such disbursements are being requested
for the [NAME OF AFFECTED PROJECT] (the "Project") and are due and payable on or
prior to the Disbursement Date, and all invoices with respect thereto are
attached. The total amount of the requested disbursements is $__________, which
amount does not exceed the cost of restoration work completed or incurred since
the prior Disbursement Request.

         Attached hereto is the certificate described in Section 4.7.2[a][b](ii)
of the Depositary Agreement, which certificate is hereby made a part hereof.

         We hereby further certify, as of the Disbursement Date, as follows:

         (1)      the funds requested by this Disbursement Request will be used
solely to pay the costs related to the restoration, rebuilding or replacement of
the Project. [insert if the Project has not achieved Completion

         [(2)     the work performed to date has been satisfactorily performed
in a good and workmanlike manner and in accordance with the applicable
Construction Contracts for the Project;]

         [insert if the Project has achieved Completion---

         [(2)     the work performed to date has been satisfactorily performed
in a good and workmanlike manner and in accordance with the as-built plans and
specifications for the Project;]

         (3)      all undisbursed Account Funds in the Loss Proceeds Account to
be used for the restoration, rebuilding or replacement of the Project, and any
other amounts available to [NAME OF APPLICABLE PROJECT COMPANY] under the
Operative Documents for

                                      A-5

<PAGE>

such purpose or otherwise available for such purpose, are sufficient to restore,
rebuild or replace the Project;

         (4)      all disbursements requested in prior Disbursement Requests, if
any, in respect of the restoration, rebuilding or replacement of the Project
have been expended or applied pursuant to the provisions of the Financing
Documents and (b) the items for which amounts are requested in this Disbursement
Request have not been the basis of a previous Disbursement Request;

         (5)      no Issuer Event of Default [INSERT IF XLCA IS THE CONTROLLING
PARTY-- or Disbursement Project Event of Default (other than any Disbursement
Project Event of Default waived by XLCA (if XLCA is then the Controlling Party)
in connection with its consent to the Issuer's certification as described in
Section 4.7.2[a][b](ii) of the Depositary Agreement)] has occurred and is
continuing; and

         (6)      the insurance required under Section 3.10 of the Common
Agreement to which the Project Company is a party is in full force and effect.

         (7)      we have complied with all applicable provisions of the
relevant Financing Documents relating to the disbursements requested hereby.

         [Insert  the following for disbursements from the Completion Account--

         Pursuant to Section 4.8 of the Depositary Agreement, we hereby request
that the disbursements specified on Part C of Schedule I hereto be made from the
Completion Account on [INSERT DATE]. Such disbursements are being requested for
the [NAME OF APPLICABLE PROJECT].

         We hereby certify, as of [INSERT DATE UPON WHICH DISBURSEMENT FROM
COMPLETION ACCOUNT IS TO BE MADE] that (a) no Issuer Event of Default has
occurred and is continuing or will result from the disbursements requested
hereby, and (b) we have complied with all applicable provisions of the relevant
Financing Documents relating to the disbursements requested hereby.]

         [Insert the following for disbursements from the Major Maintenance
Reserve Account--

                                      A-6

<PAGE>

         Pursuant to Section 4.10 of the Depositary Agreement, we hereby request
that the disbursements specified on Part D of Schedule I and on the Request for
Expenditure attached as Exhibit I hereto be made from the Major Maintenance
Reserve Account on [INSERT THE DESIGNATED MONTHLY DATE].

         Such disbursements are being requested for the [NAME OF THE PROJECT
COMPANY] in accordance with the Annual Operations Budget.

         We hereby certify, as of [INSERT THE DESIGNATED MONTHLY DATE], that (a)
the funds requested by this Disbursement Request will be used solely to pay the
costs related to the major maintenance of [THE NAME OF THE PROJECT COMPANY]; (b)
no Issuer Event of Default has occurred and is continuing or will result from
the disbursements requested hereby, and (c) we have complied with all applicable
provisions of the relevant Financing Documents relating to the disbursements
requested hereby.

         [Insert the following for disbursements from the Corporate Services
Payment Account--

         Pursuant to Section 4.11 of the Depositary Agreement, we hereby request
that the disbursements be made from the Corporate Services Payment Account on
[INSERT THE ANNUAL SCHEDULED PAYMENT DATE].

         The total amount of the requested disbursements is $______.

         We hereby certify, as of [INSERT THE ANNUAL SCHEDULED PAYMENT DATE],
that (a) the funds requested by this Disbursement Request will be used solely to
make the Corporate Services Payment under the Corporate Services Agreement; (b)
no Issuer Event of Default has occurred and is continuing or will result from
the disbursements requested hereby, and (c) we have complied with all applicable
provisions of the relevant Financing Documents relating to the disbursements
requested hereby.

         The agreements, statements, certifications, representations and
warranties contained in this Disbursement Request shall survive and remain
effective until the Obligations are paid or otherwise satisfied in full.

                            [SIGNATURE PAGES FOLLOW]

                                      A-7

<PAGE>

         IN WITNESS WHEREOF, the Issuer has caused this Disbursement Request to
be duly executed and delivered by a Responsible Officer of the Issuer as of the
date first above written.

                                              NRG PEAKER FINANCE COMPANY LLC

                                              By:_______________________________
                                                 Name:
                                                 Title:

                                      A-8

<PAGE>

[insert for disbursements of Casualty Insurance Proceeds or Condemnation
Proceeds from the Loss Proceeds Account pursuant to Section 4.7.2(a)(ii) of the
Depositary Agreement or Section 4.7.2 (b)(ii) of the Depositary Agreement, as
the case may be--

                  I, the undersigned, hereby confirm that, to the best of my
         knowledge, the certification set forth in Item 4(2) above are accurate.

Dated:  ________________ ___, ______

                  For and on behalf of:

                  [NAME OF INDEPENDENT ENGINEER]

                  By:_______________________________
                     Name:
                     Title:]

                                      A-9

<PAGE>

         The Collateral Agent hereby directs the Depositary Agent to make the
disbursements specified in this Disbursement Request.

                                              THE BANK OF NEW YORK,
                                              as Collateral Agent

                                              By:_______________________________
                                                 Name:
                                                 Title:

                                      A-10

<PAGE>

                                                                      Schedule I
                                                         to Disbursement Request

PART A

Disbursements from the Distribution Account:

<TABLE>
<CAPTION>
                                                  AMOUNT OF       PAYEE AND WIRE INSTRUCTIONS
                                                   PAYMENT      (OR ADDRESS FOR DISBURSEMENTS
APPLICABLE PROJECT      DESCRIPTION OF PAYMENT                         BY CHECK)
------------------      ----------------------    ---------     ------------------------------
<S>                     <C>                       <C>           <C>
------------------      ----------------------    ---------     ------------------------------

------------------      ----------------------    ---------     ------------------------------

------------------      ----------------------    ---------    -------------------------------

------------------      ----------------------    ---------     ------------------------------

------------------      ----------------------    ---------     ------------------------------

------------------      ----------------------    ---------     ------------------------------
</TABLE>

PART B

Disbursements from the Loss Proceeds Account:

<TABLE>
<CAPTION>
                                                  AMOUNT OF       PAYEE AND WIRE INSTRUCTIONS
                                                   PAYMENT      (OR ADDRESS FOR DISBURSEMENTS
APPLICABLE PROJECT      DESCRIPTION OF PAYMENT                         BY CHECK)
------------------      ----------------------    ---------     ------------------------------
<S>                     <C>                       <C>           <C>
------------------      ----------------------    ---------     ------------------------------

------------------      ----------------------    ---------     ------------------------------

------------------      ----------------------    ---------    -------------------------------

------------------      ----------------------    ---------     ------------------------------

------------------      ----------------------    ---------     ------------------------------

------------------      ----------------------    ---------     ------------------------------
</TABLE>

                                      A-11

<PAGE>

PART C

Disbursements from the Completion Account:

<TABLE>
<CAPTION>
                                                  AMOUNT OF       PAYEE AND WIRE INSTRUCTIONS
                                                   PAYMENT      (OR ADDRESS FOR DISBURSEMENTS
APPLICABLE PROJECT      DESCRIPTION OF PAYMENT                         BY CHECK)
------------------      ----------------------    ---------     ------------------------------
<S>                     <C>                       <C>           <C>
------------------      ----------------------    ---------     ------------------------------

------------------      ----------------------    ---------     ------------------------------

------------------      ----------------------    ---------    -------------------------------

------------------      ----------------------    ---------     ------------------------------

------------------      ----------------------    ---------     ------------------------------

------------------      ----------------------    ---------     ------------------------------
</TABLE>

                                      A-12

<PAGE>

PART D

Disbursements from the Major Maintenance Reserve Account:

<TABLE>
<CAPTION>
                                                  AMOUNT OF       PAYEE AND WIRE INSTRUCTIONS
                                                   PAYMENT      (OR ADDRESS FOR DISBURSEMENTS
APPLICABLE PROJECT      DESCRIPTION OF PAYMENT                         BY CHECK)
------------------      ----------------------    ---------     ------------------------------
<S>                     <C>                       <C>           <C>
------------------      ----------------------    ---------     ------------------------------

------------------      ----------------------    ---------     ------------------------------

------------------      ----------------------    ---------    -------------------------------

------------------      ----------------------    ---------     ------------------------------

------------------      ----------------------    ---------     ------------------------------

------------------      ----------------------    ---------     ------------------------------
</TABLE>

                                      A-13

<PAGE>

                                                                       EXHIBIT I
                                                                    TO EXHIBIT A

                         FORM OF REQUEST FOR EXPENDITURE

                                       I-1

<PAGE>

                                                                       EXHIBIT B
                                                   to Security Deposit Agreement

                       FORM OF ACCEPTABLE LETTER OF CREDIT

                                       B-1

<PAGE>

                                                                       EXHIBIT C
                                                   to Security Deposit Agreement

          FORM OF FUEL AND OPERATING ACCOUNTS DISBURSEMENT REQUEST(1)

                                                                          [Date]

The Bank of New York, as Collateral Agent
101 Barclay Street
New York, New York  10286
Attention:  Corporate Trust Department

The Bank of New York, as Depositary Agent
101 Barclay Street, Floor 8 West
New York, New York  10286
Attention:  Corporate Trust Department

                  Re:  NRG Peaker Finance Company LLC

Ladies and Gentlemen:

                  NRG Peaker Finance Company LLC (the "Issuer") is delivering
         this Disbursement Request pursuant to the Amended and Restated Security
         Deposit Agreement, dated January 6, 2004 (the "Depositary Agreement"),
         among the Issuer, each Project Company party thereto, The Bank of New
         York, as Collateral Agent and The Bank of New York, as Depositary
         Agent. Capitalized terms used but not defined herein shall have the
         meanings given to such terms in Annex A to the Common Agreement (as
         defined in the Depositary Agreement).

                  [Insert the following, as applicable in accordance with
         Section 4.1.2 of the Depositary Agreement, for disbursements from the
         Revenue Account --

                  Pursuant to Section 4.1.2 of the Depositary Agreement, we
         hereby request that the following disbursements be made from the
         Revenue Account:

                  (1)      On [INSERT THE APPLICABLE DESIGNATED MONTHLY DATE];
         transfer to the Fuel Account of each Project Company, in accordance
         with priority First in Section 4.1.2 of the Depositary Agreement, the
         following amounts:

------------------------
(1)  To the extent there are not sufficient Account Funds in the Revenue Account
     to make the disbursements therefrom, such disbursements will be made in
     accordance with the Depositary Agreement.

                                       C-1

<PAGE>

         (a)      $_____ to the Bayou Cove Project Company Fuel Account [Insert
         account number];

         (b)      $_____ to the Big Cajun Project Company Fuel Account [Insert
         account number];

         (c)      $_____ to the Rockford I Project Company Fuel Account [Insert
         account number];

         (d)      $_____ to the Rockford II Project Company Fuel Account [Insert
         account number]; and

         (e)      $_____ to the Sterlington Project Company Fuel Account [Insert
         account number].

                  (2)      On [INSERT THE APPLICABLE DESIGNATED MONTHLY DATE];
         transfer to the Operating Account of each Project Company, in
         accordance with priority Second in Section 4.1.2 of the Depositary
         Agreement, the following amounts:

         (a)      $_____ to the Bayou Cove Project Company Operating Account
         [Insert account number];

         (b)      $_____ to the Big Cajun Project Company Operating Account
         [Insert account number];

         (c)      $_____ to the Rockford I Project Company Operating Account
         [Insert account number];

         (d)      $_____ to the Rockford II Project Company Operating Account
         [Insert account number]; and

                           (e)      $_____ to the Sterlington Project Company
                           Operating Account [Insert account number].

                  (3)      On [INSERT APPLICABLE DESIGNATED MONTHLY DATE],
         transfer $__________ to the Energy Manager in accordance with priority
         Third in Section 4.1.2 of the Depositary Agreement.

                  We hereby certify, as of [INSERT THE DESIGNATED MONTHLY DATE],
that (a) the funds requested by this Disbursement Request will be used solely to
pay the Energy Transaction Costs, operating costs and the Energy Manager Fee of
[THE NAME OF THE PROJECT COMPANY]; (b) no Issuer Event of Default has occurred
and is continuing or will result from the disbursements requested hereby, and
(c) we have complied with all applicable provisions of the relevant Financing
Documents relating to the disbursements requested hereby.

                                       C-2

<PAGE>

         The agreements, statements, certifications, representations and
warranties contained in this Fuel and Operating Accounts Disbursement Request
shall survive and remain effective until the Obligations are paid or otherwise
satisfied in full.

                            [SIGNATURE PAGES FOLLOW]

                                       C-3

<PAGE>

         IN WITNESS WHEREOF, the Issuer has caused this Fuel and Operating
Accounts Disbursement Request to be duly executed and delivered by a Responsible
Officer of the Issuer as of the date first above written.

                                              NRG PEAKER FINANCE COMPANY LLC

                                              By:_______________________________
                                                 Name:
                                                 Title:

                                       C-4

<PAGE>

         The Collateral Agent hereby directs the Depositary Agent to make the
disbursements specified in this Disbursement Request.

                                              THE BANK OF NEW YORK,
                                              as Collateral Agent

                                              By:_______________________________
                                                 Name:
                                                 Title:

                                       C-5

<PAGE>

                                                                       EXHIBIT D
                                                   to Security Deposit Agreement

                      SPARE PARTS DISBURSEMENT REQUEST(1)

                                                                          [Date]

The Bank of New York, as Collateral Agent
101 Barclay Street, Floor 8 West
New York, New York  10286
Attention:  Corporate Trust Department

The Bank of New York, as Depositary Agent
101 Barclay Street, Floor 8 West
New York, New York  10286
Attention:  Corporate Trust Department

                  Re:  NRG Peaker Finance Company LLC

Ladies and Gentlemen:

                  NRG Peaker Finance Company LLC (the "Issuer") is delivering
         this Disbursement Request on behalf of the Rockford II Project Company
         pursuant to the Amended and Restated Security Deposit Agreement, dated
         January 6, 2004 (the "Depositary Agreement"), among the Issuer, the
         Rockford II Project Company and each of the other Project Companies
         party thereto, The Bank of New York, as Collateral Agent and The Bank
         of New York, as Depositary Agent. Capitalized terms used but not
         defined herein shall have the meanings given to such terms in Annex A
         to the Common Agreement (as defined in the Depositary Agreement).

                  [Insert the following, as applicable in accordance with
         Section 4.3.2 of the Depositary Agreement, for disbursements from the
         Debt Service Reserve Account --

                  Pursuant to Section 4.3.2 of the Depositary Agreement, we
         hereby request that the disbursements specified on Schedule I hereto be
         made from the Debt Service Reserve Account on [INSERT DATE(S) OF
         REQUESTED DISBURSEMENT] (the "Disbursement Date"). Such disbursements
         are due and payable on or prior to the Disbursement Date and all
         invoices with respect thereto are attached. The total

------------------------
(1)  To the extent there are not sufficient Account Funds in the Debt Service
     Reserve Account to make the disbursements therefrom, such disbursements
     will be made in accordance with the Depositary Agreement.

                                       D-1

<PAGE>

amount of the requested disbursements is $__________, which amount does not
exceed the cost of the Spare Parts to be paid.

         We hereby certify, as of [INSERT THE DATE(S) OF REQUESTED
DISBURSEMENT], that (a) the funds requested by this Spare Parts Disbursement
Request will be used solely to pay the costs of the Spare Parts; (b) no Issuer
Event of Default has occurred and is continuing or will result from the
disbursements requested hereby, and (c) we have complied with all applicable
provisions of the relevant Financing Documents relating to the disbursements
requested hereby.

         The agreements, statements, certifications, representations and
warranties contained in this Spare Parts Disbursement Request shall survive and
remain effective until the Obligations are paid or otherwise satisfied in full.

                            [SIGNATURE PAGES FOLLOW]

                                       D-2

<PAGE>

         IN WITNESS WHEREOF, the Issuer has caused this Spare Parts Disbursement
Request to be duly executed and delivered by a Responsible Officer of the Issuer
as of the date first above written.

                                              NRG PEAKER FINANCE COMPANY LLC

                                              By:_______________________________
                                                 Name:
                                                 Title:

                                       D-3

<PAGE>

         The Collateral Agent hereby directs the Depositary Agent to make the
disbursements specified in this Spare Parts Disbursement Request.

                                              THE BANK OF NEW YORK,
                                              as Collateral Agent

                                              By:_______________________________
                                                 Name:
                                                 Title:

                                       D-4

<PAGE>

                                                                      SCHEDULE I
                                                                  To Spare Parts
                                                            Disbursement Request

<TABLE>
<CAPTION>
                                                     Payee and wire Instructions
                                                    (or address for disbursements
   Description of Payment      Amount of Payment           by check)
---------------------------    -----------------    -----------------------------
<S>                            <C>                  <C>
---------------------------    -----------------    -----------------------------

---------------------------    -----------------    -----------------------------

---------------------------    -----------------    -----------------------------

---------------------------    -----------------    -----------------------------

---------------------------    -----------------    -----------------------------

---------------------------    -----------------    -----------------------------

---------------------------    -----------------    -----------------------------
</TABLE>

                                       D-5<PAGE>

                                                                    EXHIBIT 4.11

                                                                  EXECUTION COPY

                              NRG PARENT AGREEMENT

                                       BY

                                NRG ENERGY, INC.

                                   IN FAVOR OF

                              THE BANK OF NEW YORK
                               (Collateral Agent)

                           DATED AS OF JANUARY 6, 2004

<PAGE>

                                Table of Contents

<TABLE>
<CAPTION>
                                                                                                              Page
                                                                                                              ----
<S>                                                                                                           <C>
SECTION 1  DEFINITIONS; RULES OF INTERPRETATION...........................................................       2

SECTION 2  NRG OBLIGATIONS................................................................................       3

         Section 2.1       Equity Reimbursement Payments; Corporate Services Accumulation Amount..........       3
         Section 2.2       Claim Swap.....................................................................       3
         Section 2.3       Interconnection Solution.......................................................       4
         Section 2.4       Rockford Compressor............................................................       5
         Section 2.5       Completion.....................................................................       5
         Section 2.6       Deposit in the NRG Claim Settlement Account....................................       5
         Section 2.7       Deposit in the Major Maintenance Reserve Account...............................       5
         Section 2.8       Cash Reconciliation............................................................       5
         Section 2.9       Intercompany Account Balances..................................................       6
         Section 2.10      Pledge of Membership Interests.................................................       6
         Section 2.11      Energy Marketing Services Agreement............................................       7

SECTION 3  REPRESENTATIONS AND WARRANTIES.................................................................       7

         Section 3.1       Organization and Qualification.................................................       7
         Section 3.2       Authorization and Enforceability...............................................       7
         Section 3.3       No Conflict; No Default........................................................       7
         Section 3.4       No Consent.....................................................................       8
         Section 3.5       Compliance with Law............................................................       8
         Section 3.6       Financing Documents............................................................       8
         Section 3.7       Financial Statements...........................................................       8
         Section 3.8       Taxes..........................................................................       8
         Section 3.9       Regulatory Matters.............................................................       8

SECTION 4  COVENANTS......................................................................................       9

         Section 4.1       Corporate Existence; Business..................................................       9
         Section 4.2       Compliance with Legal Requirements.............................................       9
         Section 4.3       Taxes..........................................................................       9
         Section 4.4       Ranking........................................................................      10
         Section 4.5       Reporting Requirements.........................................................      10
         Section 4.6       Financial and Other Information................................................      10

SECTION 5  OBLIGATIONS ABSOLUTE, ETC......................................................................      12

SECTION 6  SPECIFIC PROVISIONS............................................................................      13

         Section 6.1       Reinstatement..................................................................      13
         Section 6.2       Specific Performance...........................................................      13
         Section 6.3       Bankruptcy Code Waiver.........................................................      13
         Section 6.4       Cash Collateral Accounts.......................................................      14
</TABLE>

<PAGE>

                                Table of Contents

<TABLE>
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         Section 6.5       Set-Off........................................................................      15

SECTION 7  DEDUCTIONS/WITHHOLDING.........................................................................      15

SECTION 8  NOTICES........................................................................................      16

         Section 8.1       Notices........................................................................      16

SECTION 9  TERMINATION....................................................................................      18

SECTION 10 SUCCESSORS AND ASSIGNS.........................................................................      18

SECTION 11 AMENDMENT......................................................................................      18

SECTION 12 EVENTS OF DEFAULT AND REMEDIES.................................................................      18

         Section 12.1      Events of Default..............................................................      18
         Section 12.2      Remedies.......................................................................      20
         Section 12.3      Cash Collateralization in Connection with Issuer Event of
                           Default........................................................................      21

SECTION 13 HEADINGS.......................................................................................      21

SECTION 14 GOVERNING LAW..................................................................................      21

SECTION 15 CONSENT TO JURISDICTION; APPOINTMENT OF AGENT FOR SERVICE OF PROCESS...........................      22

SECTION 16 WAIVER OF JURY TRIAL...........................................................................      22

SECTION 17 EXPENSES.......................................................................................      22

SECTION 18 MISCELLANEOUS..................................................................................      23

         Section 18.1      Counterparts...................................................................      23
         Section 18.2      Severability...................................................................      23
         Section 18.3      Limitation of Liability........................................................      23
         Section 18.4      Third Party Rights.............................................................      23
         Section 18.5      Survival of Obligations........................................................      23
         Section 18.6      Rights of Collateral Agent.....................................................      23

SECTION 19 Restricted Payment Amount......................................................................       2

         Section 19.1      ...............................................................................       2
         Section 19.2      ...............................................................................       2

SECTION 20 Corporate Services Annual Fee..................................................................       2

         Section 20.1      ...............................................................................       2
         Section 20.2      ...............................................................................       2
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                               Table of Contents

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SECTION 21 Corporate Services Accumulation Amount.........................................................       2

         Section 21.1      ...............................................................................       2
         Section 21.2      ...............................................................................       2
         Section 21.3      ...............................................................................       2
         Section 21.4      ...............................................................................       3
         Section 21.5      ...............................................................................       3

SECTION 22 Equity Reimbursement Amount....................................................................       3

         Section 22.1      ...............................................................................       3
         Section 22.2      ...............................................................................       3
         Section 22.3      ...............................................................................       3
         Section 22.4      ...............................................................................       3

SECTION 23 Supporting Documentation.......................................................................       3
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Exhibit A                  Form of Equity Reimbursement Certificate
Exhibit B                  Form of Interconnection Solution Transfer Documents
Schedule A, B & C          Intercompany Account Balances
Schedule D                 Regulatory Matters

<PAGE>

                              NRG PARENT AGREEMENT

                  This NRG PARENT AGREEMENT dated as of January 6, 2004 (as
amended, amended and restated, supplemented or otherwise modified from time to
time, this "Agreement"), is made by NRG ENERGY, INC. ("NRG Energy") in favor of
THE BANK OF NEW YORK, as collateral agent on behalf of the Secured Parties
referred to herein (the "Collateral Agent"). Capitalized terms used herein and
not otherwise defined shall be defined as provided in Section 1 hereof.

                                    RECITALS

WHEREAS:

                  1. NRG Energy (a) indirectly owns 100% of the membership
interests in NRG Peaker Finance Company LLC (the "Issuer") and (b) indirectly
owns 100% of the membership interests in each of the Project Companies (as
defined in the Common Agreement referred to below).

                  2. Reference is made to that certain Amended and Restated
Common Agreement, dated as of the date hereof (the "Common Agreement"), among
the Issuer, each of the Project Companies, XL Capital Assurance Inc. ("XLCA"),
the Swap Counterparty, the Trustee and the Collateral Agent, and to the original
Common Agreement, dated as of June 18, 2002 (the "Original Common Agreement"),
among the Issuer, each of the Project Companies, XLCA, the Swap Counterparty and
the Original Trustee.

                  3. Pursuant to that certain Indenture, dated as of June 18,
2002, the Issuer issued $325 million of Series A Floating Rate Senior Secured
Bonds due 2019 (the "Series A Bonds"). The full and timely payment of regularly
scheduled payments of principal and interest on the Series A Bonds is
unconditionally and irrevocably guaranteed by XLCA pursuant to that certain
Financial Guaranty Insurance Policy dated as of June 18, 2002 (including the
endorsement thereto, the "Policy"), between XLCA and the Original Trustee.

                  4. Reference is made to that certain ISDA Master Agreement,
dated as of June 18, 2002 (including the schedule, the credit support annex and
the confirmation thereto) (the "Swap Agreement"), between the Issuer and Goldman
Sachs Mitsui Marine Derivative Products, L.P. (the "Swap Counterparty"). The
full and timely payment of regularly scheduled net payments due to the Swap
Counterparty under the Swap Agreement is unconditionally and irrevocably
guaranteed by XLCA pursuant to that certain Financial Guaranty Insurance Policy
dated as of June 18, 2002 (the "Swap Policy"), between XLCA and the Swap
Counterparty.

                  5. Pursuant to the Common Agreement, each of the Project
Companies guarantees the payment by the Issuer of all of the Issuer's
obligations under (a) the Indenture and the Series A Bonds and (b) the Swap
Agreement and (c) that certain Financial Guaranty Insurance and Reimbursement
Agreement, dated as of June 18, 2002 (the "Insurance and Reimbursement
Agreement"), among XLCA, the Issuer and the Project Companies.
<PAGE>

                  6. As a condition precedent to (a) the issuance of the Series
A Bonds, the Policy and the Swap Policy and (b) the execution of the Swap
Agreement by the Swap Counterparty, NRG Energy executed and delivered a
Contingent Guaranty Agreement, dated June 18, 2002 (the "Contingent Guaranty
Agreement"), in favor of the Collateral Agent on behalf of the Secured Parties
providing for certain guarantees and performance obligations.

                  7. On May 12, 2003, as a consequence of certain Issuer Events
of Default under the Original Common Agreement, XLCA, as Controlling Party,
declared and made all sums of accrued and outstanding principal, accrued but
unpaid interest and accrued but unpaid premium remaining under the Financing
Documents, together with all unpaid amounts, fees, costs and charges due under
any Financing Documents, immediately due and payable (the "Acceleration"), which
Acceleration gave rise to an Early Termination Date under the Contingent
Guaranty Agreement.

                  8. On May 14, 2003, NRG Energy and certain of its subsidiaries
filed voluntary petitions for bankruptcy under Chapter 11 of the United States
Bankruptcy Code (the "NRG Bankruptcy").

                  9. Following the Acceleration and the NRG Bankruptcy, NRG
Energy, NRG Power Marketing Inc., the Issuer, the Project Companies and XLCA
agreed to implement a financial restructuring of the Obligations (the
"Restructuring") substantially on the terms set forth in a Restructuring
Agreement, dated September 18, 2003 (the "Restructuring Agreement"), by and
among NRG Energy, NRG Power Marketing Inc., the Issuer, the Project Companies
and XLCA.

                  10. On October 1, 2003, the United States District Court for
the Southern District of New York entered an order (the "Approval Order") in the
NRG Bankruptcy authorizing and approving the transactions provided in the
Restructuring including the execution and delivery of this Agreement by NRG
Energy. The Approval Order became a Final Order (as defined in the Restructuring
Agreement) on October 11, 2003.

                  11. It is a condition precedent to the consummation of the
Restructuring that the parties hereto shall have executed and delivered this
Agreement.

                  NOW THEREFORE, in consideration of the premises contained
herein and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, and as an inducement to the
consummation of the Restructuring, the parties agree:

                                   SECTION 1
                      DEFINITIONS; RULES OF INTERPRETATION

         All capitalized terms used but not defined in this Agreement shall have
the meanings attributed to them in Annex A to the Common Agreement. The rules of
interpretation set forth in Annex A to the Common Agreement shall apply hereto
as though fully set forth herein.

                                       2

<PAGE>

                                   SECTION 2

                                NRG OBLIGATIONS

                  Section 2.1 Equity Reimbursement Payments; Corporate Services
Accumulation Amount.

                  (a) If on any Annual Scheduled Payment Date, there exists a
Debt Service Shortfall, then NRG Energy agrees to pay, or cause to be paid, on
such Annual Scheduled Payment Date, an amount in Dollars equal to the lesser of
(x) the Debt Service Shortfall and (y) the Equity Reimbursement Amount, in
immediately available funds (the "Equity Reimbursement Obligation"). Any amount
which is not paid when due pursuant to this Section 2.1 shall bear interest at
the Late Payment Rate, as in effect from time to time, until paid in full.
Equity Reimbursement Payments (plus any accrued interest thereon (if any)) shall
be paid to the Collateral Agent and applied on the applicable Annual Scheduled
Payment Date in accordance with the Depositary Agreement, provided, however,
that any Equity Reimbursement Payment received by the Collateral Agent following
the Annual Scheduled Payment Date on which such Equity Reimbursement Payment was
due in accordance with this Section 2.1 shall be immediately paid by the
Collateral Agent (i) first, to XLCA in respect of the Accrued Insurer Loss
Amount (Swap) (if any), (ii) second, to XLCA in respect of the Accrued Insurer
Loss Amount (Bond) (if any) and (iii) third, to the Debt Payment Account.

                  (b) The Equity Reimbursement Amount shall be immediately due
and payable upon the occurrence of an NRG Event of Default and no further
Restricted Payments under the Financing Documents shall be permitted upon the
occurrence thereof.

                  (c) Upon the occurrence and during the continuation of an NRG
Event of Default no payments or distributions of the Corporate Services
Accumulation Amount under the Financing Documents and the Corporate Services
Agreement shall be permitted.

                  Section 2.2 Claim Swap.

                  (a) NRG Energy shall use commercially reasonable efforts to
cause an Acceptable Assumption of the Big Cajun PPA and the Sterlington PPA by
Louisiana Generating and the reinstatement of the guarantee by
NRG South Central to occur by March 31, 2004.

                  (b) NRG Energy hereby unconditionally and irrevocably agrees
that: (i) if an Acceptable Assumption has not occurred by March 31, 2004 and
until an Acceptable Assumption has occurred with respect to the Big Cajun PPA
(including the reinstatement of the guarantee by NRG South Central), it shall,
for the benefit of the Secured Parties, make prompt and complete payment to the
Collateral Agent three (3) days following the date on which payment is due from
Louisiana Generating and NRG South Central under the Big Cajun I PPA, of an
amount in Dollars, in immediately available funds, equal to the amount of any
Big Cajun PPA Shortfall for the month with respect to which such shortfall
relates and (ii) if an Acceptable Assumption has not occurred by March 31, 2004
and until an Acceptable Assumption has occurred with respect to the Sterlington
PPA (including the reinstatement of the guarantee by

                                       3

<PAGE>

NRG South Central), it shall, for the benefit of the Secured Parties, make
prompt and complete payment to the Collateral Agent three (3) days following the
date on which payment is due from Louisiana Generating and NRG South Central, of
an amount in Dollars, in immediately available funds, equal to the amount of any
Sterlington PPA Shortfall for the month with respect to which such shortfall
relates (such payments under clauses (i) and (ii) hereof, collectively a "PPA
Shortfall Payment"); provided that a PPA Shortfall Payment shall not include any
amounts of any Big Cajun I PPA Shortfall and/or any Sterlington PPA Shortfall
relating to any time period on or prior to December 31, 2003. Any amount which
is not paid when due pursuant to this Section 2.1 shall bear interest at the
Late Payment Rate, as in effect from time to time, until paid in full. PPA
Shortfall Payments (plus any accrued interest thereon) shall be paid to the
Collateral Agent and deposited in the Revenue Account.

                  (c) NRG Energy shall, upon making any PPA Shortfall Payment,
be subrogated to any claim of Big Cajun Project Company or Sterlington Project
Company, as applicable, against Louisiana Generating or NRG South Central to the
extent of such PPA Shortfall Payments and such right of subrogation shall
survive any termination of this Agreement. Payments to NRG Energy in respect of
the foregoing subrogation shall in all cases be subject to and subordinate to
the rights of Big Cajun Project Company or Sterlington Project Company, as
applicable, to receive payment of all amounts due or to become due (other than
with respect to such subrogated claim) from Louisiana Generating or NRG South
Central and NRG Energy agrees that it shall not be entitled to take any action
to enforce such subrogated claim until such amounts are paid in full.

                  Section 2.3 Interconnection Solution.

                  (a) NRG Energy shall take, or cause to be taken, in a timely
manner, all commercially reasonable steps necessary to cause the Interconnection
Solution to be in full force and effect by May 31, 2004, including, without
limitation, (i) by the Closing Date, preparing a deed of transfer and any other
documents appropriate or necessary to transfer title in order to effect the
Interconnection Solution, to be executed upon the transfer of title in
substantially the form attached hereto as Exhibit B, (ii) by January 31, 2004,
make, or cause to be made, filings required to receive any necessary consents
and approvals from FERC or any other Governmental Authority with respect to the
Interconnection Solution and (iii) by April 30, 2004, use commercially
reasonable efforts to obtain any necessary consents and approvals from FERC or
any other Governmental Authority with respect to the Interconnection Solution.

                  (b) NRG Energy shall pay for (i) all reasonable out-of-pocket
expenses of the Secured Parties and Big Cajun Project Company in connection with
the negotiation, preparation and implementation of the Interconnection Solution,
(ii) all transfer, stamp, documentary or other similar taxes, assessments or
charges levied by any governmental or revenue authority in respect of the
Interconnection Solution and all costs and expenses, taxes, assessments and
other charges incurred in connection with any filing, registration, recording or
perfection of any security interest in favor of the Secured Parties and (iii)
all costs, expenses and other charges in respect of title insurance procured
with respect to liens created pursuant to any mortgage in favor of the

                                       4

<PAGE>

Secured Parties in connection with the Interconnection Solution. For the
avoidance of doubt, Big Cajun Project Company shall pay to Louisiana Generating
$200,000 as consideration for the actual assets being transferred in connection
with the Interconnection Solution.

                  Section 2.4 Rockford Compressor. NRG Energy agrees to
pay, or cause to be paid, to, or for the benefit of, each of Rockford I Project
Company and Rockford II Project Company an amount in Dollars which will enable
such Project Company to install (a) a permanent gas compressor at such Project
(i) adequate to maintain a minimum gas pressure of 490 psig or such other
pressure as may be acceptable under the Manufacturer's Guidelines (as defined in
the Rockford I Tolling Agreement) at all times or (ii) as otherwise specified in
the Rockford I Tolling Agreement, if (A) the Independent Engineer determines
that the gas pressure falls below the Manufacturer's Guidelines (as defined in
the Rockford I Tolling Agreement) to operate at full load, (B) if the gas
pressure falls below the minimum pressure of 490 psig or such minimum pressure
as otherwise specified in the Rockford I Tolling Agreement or (C) upon a notice
of default by Exelon to the Collateral Agent in connection with the Rockford I
Tolling Agreement, provided that the obligation under this clause (a) shall
terminate on September 1, 2004, or (b) if a permanent gas compressor has not
previously been installed pursuant to clause (a) hereof, a temporary gas
compressor for the period commencing on May 1, 2004 and ending on September 1,
2004 (collectively, the "Rockford Compressors").

                  Section 2.5 Completion. In the event that Completion has not
occurred by the Closing Date:

                  (a) NRG Energy shall pay the Completion Expenses and the costs
associated with the Completion Items; and

                  (b) NRG shall (x) cause Bayou Cove Project Company to transfer
or assign certain assets to Entergy Gulf States, Inc. in accordance with Section
6.1 of the Bayou Cove EPC Agreement (Electric Interconnection Facilities) and
(y) take, or cause to be taken, any other actions necessary for the Bayou Cove
Project Company to comply with the Bayou Cove EPC Agreement (Electric
Interconnection Facilities).

                  Section 2.6 Deposit in the NRG Claim Settlement Account. On
the Closing Date, NRG Energy shall deliver, or cause to be delivered, to the
Depositary Agent for credit to the NRG Claim Settlement Account an Acceptable
Letter of Credit with a stated amount equal to $36,236,137.33.

                  Section 2.7 Deposit in the Major Maintenance Reserve Account.
On the Closing Date, NRG Energy shall deliver to the Depositary Agent for credit
to the Major Maintenance Reserve Account an amount equal to $3,000,000 in
immediately available funds.

                  Section 2.8 Cash Reconciliation.

                  (a) NRG Energy shall take, or cause to be taken, all
reasonable steps necessary to (i) perform a cash reconciliation among the
Issuer, the Project Companies, NRG Energy and

                                       5

<PAGE>

their Affiliates (to the extent such cash reconciliation with respect to such
Affiliates relates to the Issuer and/or any of the Project Companies) covering
the period from September 30, 2003 to December 31, 2003 (the "Cash
Reconciliation III"), in a manner substantially similar in substance and form to
the methodology, which was agreed to by the parties, used to perform a cash
reconciliation for the period from November 1, 2002 to September 30, 2003 ("Cash
Reconciliation II") and any other period prior to December 31, 2003 ("Cash
Reconciliation I"), and (ii) cause the payment of any amounts due in connection
with such Cash Reconciliation III to be paid to the Issuer or the applicable
Project Company and deposited in the Revenue Account, provided that, regardless
of whether NRG Energy succeeds in the correction of the Issuer and the Project
Companies' books, the amounts that would have been due if such corrections would
have been made would still be paid to the Issuer or the applicable Project
Company by January 31, 2004.

                  (b) NRG Energy shall provide all operating, financial and any
other information, including supporting documentation, regarding the actual O&M
Expenses and Fuel Costs relating to the Cash Reconciliation III as reasonably
requested by XLCA (if XLCA is the Controlling Party) and necessary to effect
such Cash Reconciliation III consistently with historical practices.

                  (c) NRG Energy shall pay, or cause to paid, an amount equal to
$16,162,852.08 to the Issuer with respect to Cash Reconciliation I and Cash
Reconciliation II to be deposited in the Revenue Account within 30 days
following the Closing Date.

                  Section 2.9 Intercompany Account Balances.

                  (a) NRG Energy shall take, within 30 days of the Closing Date,
or cause to be taken, all reasonable steps necessary to (i) clear all
Intercompany Account Balances listed on Schedule A as consideration for the
payment of the Cash Reconciliation I and the Cash Reconciliation II pursuant to
Section 2.8, (ii) reclassify the Intercompany Account Balances listed on
Schedule B as an equity account on the Issuer or the respective Project
Company's balance sheet, (iii) with respect to each Intercompany Account Balance
listed on Schedule C, either (x) clear such Intercompany Account Balance, or (y)
settle such Intercompany Account Balance by reclassifying such balance as an
equity account on the respective Project Company's balance sheet and (iv) clear
all other Intercompany Account Balances which remain outstanding on the Issuer
or the Project Companies' balance sheet as of December 31, 2003, except for the
Intercompany Account Balances that, subject to XLCA's (if XLCA is the
Controlling Party) written consent, may remain outstanding following such
period.

                  (b) NRG Energy shall provide all operating, financial and any
other information reasonably requested by XLCA (if XLCA is the Controlling
Party) that supports any calculation made in connection with Section 2.9(a)
above and any additional information reasonably requested by XLCA (if XLCA is
the Controlling Party) in connection therewith.

                  Section 2.10 Pledge of Membership Interests. NRG Energy shall
take, or cause to be taken, all commercially reasonable steps necessary to cause
the membership interests in the

                                       6

<PAGE>

Big Cajun Project Company and the Sterlington Project Company to be pledged to
the Collateral Agent for the benefit of the Secured Parties within 90 days
following the Closing Date.

                  Section 2.11 Energy Marketing Services Agreement.

                  (a) NRG Energy shall provide for letters of credit for the
benefit of the Collateral Agent substantially in the form of Exhibit K to the
Energy Marketing Services Agreements (the "EMS Letter of Credit") in accordance
with the terms, conditions and limitations set forth in the Energy Marketing
Services Agreements to be deposited in the EMS Letter of Credit Account under
the Depositary Agreement. NRG Energy shall provide the initial EMS Letter of
Credit to the Depositary Agent for the benefit of the Collateral Agent on or
before the later of (i) February 1, 2004 or (ii) five (5) Business Days after
the amount of the initial EMS Letter of Credit is determined, but not later than
February 15, 2004.

                  (b) NRG Energy shall not allow any Person other than Energy
Manager or its permitted successors or assigns under the Energy Marketing
Services Agreement to engage in the wholesale purchase and sale of electric
power on behalf of the Project Companies during the term of the Energy Marketing
Services Agreements, except as otherwise specified in the Energy Marketing
Services Agreement.

                                    SECTION 3
                         REPRESENTATIONS AND WARRANTIES

                  NRG Energy represents and warrants to the Collateral Agent for
the benefit of the Secured Parties that, as of the date hereof:

                  Section 3.1 Organization and Qualification. It is a
corporation, duly organized and validly existing under the laws of the
jurisdiction of its formation, with full right, power and authority under its
certificate of incorporation and bylaws and under the laws of the jurisdiction
of its formation to enter into this Agreement, to perform its obligations
hereunder and to consummate the transactions contemplated hereby.

                  Section 3.2 Authorization and Enforceability. It has taken all
necessary corporate action to authorize the execution, delivery and performance
by it of this Agreement and no consent of any shareholder of NRG Energy is
required therefore which has not already been obtained. This Agreement has been
duly executed and delivered by NRG Energy and constitutes a legal, valid and
binding obligation of NRG Energy enforceable against it in accordance with its
terms, except as the enforceability thereof may be limited by (i) bankruptcy,
insolvency, reorganization or other similar laws affecting the enforcement of
creditors' rights generally and (ii) general equitable principles regardless of
whether the issue of enforceability is considered in a proceeding in equity or
at law.

                  Section 3.3 No Conflict; No Default. Neither the execution and
delivery of this Agreement nor compliance with any of the terms and provisions
hereof (a) violates any Legal Requirement, (b) violates the provisions of its
certificate of incorporation and bylaws or

                                       7

<PAGE>

(c) results in the creation or imposition of any Liens upon any of its property
or assets or in a condition or an event that constitutes (or that, upon notice
or lapse of time or both, would constitute) an event of default under any
material contractual obligation of NRG Energy.

                  Section 3.4 No Consent. No consent, authorization, filing or
other act by or in respect of any other Person or any Governmental Authority is
required in connection with the execution, delivery or performance by NRG Energy
of this Agreement or the validity or enforceability hereof as to NRG Energy,
except such consents or authorizations which have already been obtained or such
consents or authorizations that the failure to obtain could not reasonably be
expected to have an NRG Energy Material Adverse Effect.

                  Section 3.5 Compliance with Law. It is in compliance with
applicable Legal Requirements, except to the extent any non-compliance could not
reasonably be expected to have an NRG Energy Material Adverse Effect.

                  Section 3.6 Financing Documents. In connection with its f
execution of this Agreement, it has received and reviewed copies of the
Operative Documents.

                  Section 3.7 Financial Statements. In the case of NRG Energy's
delivery on the Closing Date of its (i) Form 10-K for the year ended December
31, 2002 and (ii) Form 10-Q for each of the periods ended March 31, June 30 and
September 30, 2003 (in each of case (i) and (ii), as such may be amended from
time to time (including by Form 8-K or 10-Q/A) and as filed with the Securities
and Exchange Commission) pursuant to the terms of this Agreement, each such
financial statement shall have been prepared in conformity with GAAP and fairly
present, in all material respects, the financial position (on a consolidated
basis) of NRG Energy as of the respective dates thereof and the results of
operations and cash flows (on a consolidated basis) of NRG Energy for each of
the periods ended, subject, in the case of any such unaudited financial
statements, to changes resulting from audit and normal year end adjustments and
the absence of footnotes; provided, the parties acknowledge and agree that in
the event any such financial statements listed in (i) and (ii) above have been
filed with the Securities and Exchange Commission prior to the Closing Date,
such financial statements shall be deemed delivered pursuant to this Agreement.

                  Section 3.8 Taxes. It has filed all material United States
federal tax returns, and all other material tax returns, required to be filed
and has paid all taxes due pursuant to such returns or pursuant to any
assessment received by it, except such taxes, if any, as are being contested in
good faith and for which adequate reserves have been provided. No notices of tax
liens have been filed and no claims are being asserted concerning any such
taxes, which liens or claims are material to the financial condition of NRG
Energy. The charges, accruals and reserves on the books of NRG Energy for any
taxes or other governmental charges are adequate.

                  Section 3.9 Regulatory Matters. It is not an investment
company or a company controlled by an investment company, within the meaning of
the Investment Company Act of 1940, as amended. NRG Energy is not a "public
utility company," an "electric utility company" or a "holding company" within
the meaning of PUHCA. The execution, delivery and

                                       8

<PAGE>

performance of this Agreement by NRG Energy does not violate any provision of
PUHCA or any rule or regulation thereunder. Except as set forth on Schedule D,
NRG Energy is not subject to regulation as a "public utility," an "electric
utility" or a "transmitting utility" under the FPA.

                                    SECTION 4
                                    COVENANTS

                  Until this Agreement is terminated in accordance with Section
9 hereof, NRG Energy covenants and agrees with the Collateral Agent, for the
benefit of the Secured Parties, as follows:

                  Section 4.1 Corporate Existence; Business. NRG Energy shall
preserve and maintain (i) its legal existence and form and (ii) all of its
rights, privileges and franchises, if any, necessary to perform its obligations
under this Agreement; provided, however, that NRG Energy may merge or
consolidate with or into, or may sell, convey, transfer or lease all or
substantially all of its properties and assets, as an entirety, to any Person so
long as (A) NRG Energy is the surviving or continuing corporation, or the
surviving or continuing corporation that acquires by sale, conveyance, transfer
or lease is incorporated in the United States of America or Canada and expressly
assumes the payment and performance of all obligations of NRG Energy under this
Agreement and (B) immediately prior to and immediately following such
consolidation, merger, sale, conveyance, transfer or lease, no NRG Event of
Default shall have occurred and be continuing.

                  Section 4.2 Compliance with Legal Requirements. NRG Energy
shall comply in all material respects with all Legal Requirements binding on it,
except where failure to do so could not reasonably be expected to have an NRG
Energy Material Adverse Effect.

                  Section 4.3 Taxes.

                  (a) Other than as provided for in clause (b) below with
respect to taxes of Affiliates, NRG Energy shall duly pay and discharge all
material taxes, rates, assessments, fees and governmental charges upon or
against it or against its properties, in each case before the same becomes
delinquent and before penalties accrue thereon, unless and to the extent that
the same is being contested in good faith by appropriate proceedings and
reserves in conformity with GAAP have been provided therefore on the books of
NRG Energy.

                  (b) NRG Energy shall cause the due payment and discharge of
all taxes, rates, assessments, fees and governmental charges with respect to
taxes that are payable by an Affiliate of NRG Energy and NRG Energy is not
directly liable for, in each case before the same becomes delinquent and before
penalties accrue thereon, to the extent that a failure to take any such action
shall result in an NRG Energy Material Adverse Effect, unless and to the extent
that the same is being contested in good faith by appropriate proceedings and
reserves in conformity with GAAP have been provided therefor.

                                        9

<PAGE>

                  Section 4.4 Ranking. NRG Energy shall cause its obligations
hereunder to at all times rank at least pari passu with all other senior
unsecured obligations of NRG Energy.

                  Section 4.5 Reporting Requirements. NRG Energy shall, deliver,
or cause to be delivered to the Collateral Agent, the Trustee, the Swap
Counterparty and XLCA (if XLCA is the Controlling Party) with such information
and other documents (it being acknowledged that XLCA shall have no obligation to
provide any notices or other information provided to it pursuant to this Section
4.5 to any other Person): within 20 days following an Annual Scheduled Payment
Date, an Equity Reimbursement Certificate in the form of Exhibit A setting forth
the information required therein. If XLCA is the Controlling Party, XLCA shall
notify NRG Energy of any errors in any of the calculations set forth in such
certificate within 10 days following the receipt of such certificate and NRG
Energy and XLCA shall diligently work to reach a mutual agreement with respect
to the correction of any such errors.

                  Section 4.6 Financial and Other Information. NRG shall
deliver, or cause to be delivered, to the Collateral Agent, the Trustee, the
Swap Counterparty and XLCA (if XLCA is the Controlling Party) with such other
information and other documents (it being acknowledged that XLCA shall have no
obligation to provide any notices or other information provided to it pursuant
to this Section 4.6 to any other Person):

                  (a) as soon as available and in any event within 120 days
after the end of each fiscal year of NRG Energy, an audited consolidated balance
sheet of NRG Energy as of the end of such fiscal year and the related audited
statements of income, retained earnings and cash flows for such fiscal year,
setting forth in each case in comparative form the figures for the previous
fiscal year, to the extent available, all reported by an independent public
accountant of nationally recognized standing; provided that NRG Energy shall be
deemed to have satisfied this covenant if it files its annual report on Form
10-K for the applicable fiscal year with the Securities and Exchange Commission
within the period set forth in this Section 4.6(a).

                  (b) as soon as available and in any event within 60 days after
the end of its first three fiscal quarters, a consolidated balance sheet of NRG
Energy as of the end of such fiscal quarter and the related statements of
income, retained earnings and cash flows for such fiscal quarter; provided that
NRG Energy shall be deemed to have satisfied this covenant if it files its
quarterly report on Form 10-Q for the applicable fiscal quarter with the
Securities and Exchange Commission within the period set forth in this Section
4.6(b).

                  (c) Concurrently with the delivery of each of the financial
statements referred to in Sections 4.6(a) and (b), an officer's certificate,
executed by the chief financial officer, treasurer, assistant chief financial
officer or assistant treasurer of NRG Energy, stating that (x) such officer, on
behalf of NRG Energy, has reviewed the terms of this Agreement and has made, or
caused to be made under its supervision, a review in reasonable detail of the
transactions and condition of NRG Energy during the accounting period covered by
such financial statements and that such review has not disclosed the existence
during or at the end of such accounting period, and that such officer does not
have knowledge of the existence as at the date of such officer's certificate, of
any condition or event that constitutes a default hereunder, including without

                                       10

<PAGE>

limitation in respect of the Specified Financial Covenants referred to in
Section 12.1(e), or, if any such condition or event existed or exits, specifying
the nature and period of the existence thereof and what action NRG Energy has
taken, is taking and proposes to take with respect thereto and (y) each
financial statement and accompanying information delivered by NRG Energy
pursuant to the terms of this Agreement, other than those delivered pursuant to
Section 3.7, each such financial statement and accompanying information has been
prepared in conformity with GAAP and fairly present, in all material respects,
the financial position (on a consolidated basis) of the Persons described in
such financial statements as at the respective dates thereof and the results of
operations and cash flows (on a consolidated basis) of the Persons described
therein for each of the periods then ended, subject, in the case of any such
unaudited financial statements, to changes resulting from audit and normal year
end adjustments and the absence of footnotes.

                  (d) promptly, upon acquiring notice or giving notice, as the
case may be, or obtaining knowledge thereof, written notice (together with
copies of any underlying notices or other documentation) of:

                           (i)      any action, suit, arbitration or litigation
                  pending or threatened against NRG Energy and involving claims
                  against NRG Energy in excess of $50,000,000, in the aggregate,
                  or involving any injunctive, declaratory or other equitable
                  relief that, if determined adversely to NRG Energy, could
                  reasonably be expected to have an NRG Material Adverse Effect,
                  such notice to include, if requested by the Controlling Party,
                  copies of all material papers filed in such litigation
                  involving NRG Energy, and such notice to be given monthly if
                  any such papers have been filed since the last notice given;

                           (ii)     any dispute or disputes which may exist
                  between NRG Energy and any Governmental Authority and which
                  involve (A) claims against NRG Energy which exceed $50,000,000
                  in the aggregate or, (B) injunctive or declaratory relief
                  that, if determined adversely to NRG Energy, could reasonably
                  be expected to have an NRG Material Adverse Effect;

                           (iii)    any material amendment, modification or
                  alteration to the NRG Credit Risk Policy (it being understood
                  that any change to Appendix I (Enterprise Limits And
                  Authorization) or Appendix J (Counterparty Credit Risk Policy)
                  thereof will be deemed to be material); and

                           (iv)     any change in ratings given to NRG Energy by
                  Moody's or S&P, including the placement of NRG Energy on
                  "credit watch negative" or similar status.

                  Notwithstanding the foregoing, NRG Energy shall not be
required to give notice of any matter described in this Section 4.6(d) that is
described in any form 10-K, 10-Q, or 8-K or other form or document filed by NRG
Energy or any of its Affiliates with the Securities and Exchange Commission and
available on the Commission's Electronic Data Gathering, Analysis and Retrieval
(EDGAR) system which shall be deemed to be a timely notice under this Section

                                       11

<PAGE>

4.6(d) so long as such document is filed with the Securities and Exchange
Commission in a timely manner.

                                   SECTION 5
                           OBLIGATIONS ABSOLUTE, ETC.

                  All rights of the Secured Parties and all obligations of NRG
Energy hereunder shall be absolute and unconditional irrespective of:

                  (a) any lack of validity, legality or enforceability of this
Agreement or any other Financing Document;

                  (b) the failure of any Secured Party:

                           (i)      to assert any claim or demand or to enforce
                  any right or remedy against the Issuer, NRG Energy, any
                  Project Company or any other Person (including any guarantor)
                  under the provisions of any Financing Document or otherwise,
                  or

                           (ii)     to exercise any right or remedy against any
                  guarantor of, or collateral securing, any of the Obligations;

                  (c) any change in the time, manner or place of payment, any
change of another term of any of the Obligations or any extension or renewal of
any of the Obligations;

                  (d) any reduction, limitation, impairment or termination of
any of the Obligations for any reason other than the written agreement of the
Secured Parties to terminate the Obligations in full, including any claim of
waiver, release, surrender, alteration or compromise, and shall not be subject
to, and NRG Energy hereby waives any right to or claim of, any defense or
setoff, counterclaim, recoupment or termination whatsoever by reason of the
invalidity, illegality, nongenuineness, irregularity, compromise,
unenforceability of, or any other event or occurrence affecting, any of the
Obligations;

                  (e) any amendment, rescission, waiver or other modification
of, or any consent to departure from, any of the terms of this Agreement or any
other Financing Document;

                  (f) any addition, exchange, release, surrender or
non-perfection of any collateral, or any amendment to or waiver, release or
addition of, or consent to departure from, any other security interest held by
any Secured Party;

                  (g) the Bankruptcy, dissolution or receivership of the Issuer
or any Project Company and the occurrence of any other proceeding as a result of
such Bankruptcy, any other disposition of all or any portion of the assets of
the Issuer or any Project Company, or the consolidation or merger of the Issuer
or any Project Company;

                                       12

<PAGE>

                  (h) any sale, transfer or other disposition by NRG Energy or
any other Person of any capital stock or other voting rights or ownership or
direct or indirect economic interest, including debt, that it may have in the
Issuer and/or the Project Companies; or

                  (i) any other circumstance which might otherwise constitute a
defense available to, or a legal or equitable discharge of, the Issuer, any
Project Company, NRG Energy, any surety or any guarantor.

                                   SECTION 6
                               SPECIFIC PROVISIONS

                  Section 6.1 Reinstatement. This Agreement and the obligations
of NRG Energy hereunder shall be reinstated automatically if and to the extent
that for any reason any payment made pursuant to this Agreement is rescinded or
otherwise restored to NRG Energy, whether as a result of any proceeding in
bankruptcy, reorganization or otherwise with respect to Issuer or any other
Person or as a result of any settlement or compromise with any Person (including
NRG Energy) in respect of such payment. Upon written demand, NRG Energy shall
pay the Collateral Agent all of its reasonable costs and expenses (including
reasonable fees of counsel) incurred by the Collateral Agent in connection with
such rescission or restoration.

                  Section 6.2 Specific Performance. NRG Energy hereby
irrevocably waives, to the extent it may do so under applicable Legal
Requirements, any defense based on the adequacy of a remedy at law that may be
asserted as a bar to the remedy of specific performance in any action brought
against NRG Energy for specific performance of this Agreement by the Issuer or
any successor or assign thereof (including the Collateral Agent) or for their
benefit by a receiver, custodian or trustee appointed for the Issuer or in
respect of all or a substantial part of its assets, under the bankruptcy or
insolvency laws of any jurisdiction to which the Issuer or its assets are
subject.

                  Section 6.3 Bankruptcy Code Waiver. NRG Energy hereby
irrevocably waives, to the extent it may do so under applicable Legal
Requirements, any protection to which it may be entitled under Sections
365(c)(l), 365(c)(2) and 365(e)(2) of the Bankruptcy Law or equivalent
provisions of the laws or regulations of any other jurisdiction with respect to
any proceedings, or any successor provision of law of similar import, in the
event of any Bankruptcy Event of it, the Issuer or any Project Company.
Specifically, in the event that the trustee (or similar official) in a
Bankruptcy Event of NRG Energy, the Issuer or any Project Company or the
debtor-in-possession takes any action, NRG Energy shall not assert any defense,
claim or counterclaim denying liability hereunder on the basis that this
Agreement is an executory contract or a "financial accommodation" that cannot be
assumed, assigned or enforced or on any other theory directly or indirectly
based on Section 365(c)(1), 365(c)(2) or 365(e)(2) of the Bankruptcy Law, or
equivalent provisions of the laws or regulations of any other jurisdiction with
respect to any proceedings or any successor provision of law of similar import.
If a Bankruptcy Event of NRG Energy, the Issuer or any Project Company shall
occur, NRG Energy agrees, after the occurrence of such Bankruptcy Event, to
reconfirm in writing, to the extent permitted by applicable Legal Requirements,
its pre-petition waiver of any protection to which it

                                       13

<PAGE>

may be entitled under Sections 365(c)(l), 365(c)(2) and 365(e)(2) of the
Bankruptcy Law or equivalent provisions of the laws or regulations of any other
jurisdiction with respect to proceedings and, to give effect to such waiver, NRG
Energy consents to the assumption and enforcement of each provision of this
Agreement by the debtor-in-possession or the Issuer's or any Project Company's
trustee in bankruptcy, as the case may be.

                  Section 6.4 Cash Collateral Accounts.

                  (a) All amounts deposited as cash collateral with the
Collateral Agent pursuant to Section 12.3 shall be deposited in separate cash
collateral accounts (such accounts, and any replacement or supplemental account
into which any such cash collateral may at any time be deposited, collectively,
the "Cash Collateral Accounts") established by NRG Energy with the Collateral
Agent and under the dominion and control of the Collateral Agent, to be held or
applied, or released for application, as provided in this Section 6.4. NRG
Energy hereby grants to the Collateral Agent, for the benefit of Secured
Parties, as security for the payment and performance of the NRG's obligations
hereunder, a security interest in and lien on (i) the Cash Collateral Accounts,
(ii) all amounts now or at any time on deposit therein, (iii) all investment
property or other financial assets from time to time credited thereto, and (iv)
all proceeds of any of the foregoing, in whatever form. In connection with the
making of the initial deposit in any Cash Collateral Account, NRG Energy shall
be required to (a) execute such documentation as may be necessary, or that is
reasonably requested by the Collateral Agent, in order to grant to the
Collateral Agent, for the benefit of the Secured Parties, a first priority
perfected security interest in the Cash Collateral Accounts (subject to NRG
Permitted Liens), including, without limitation, an account control agreement
containing control provisions substantially similar to those contained in the
Depositary Agreement and (b) deliver an opinion of counsel with respect to the
Cash Collateral Accounts substantially similar to the opinion given with respect
to the Accounts on the Closing Date. Upon the earlier to occur of (i)
termination of this Agreement in accordance with Section 9 or (ii) the cure of
the NRG Event of Default which triggered the making of a Cash Collateral
Deposit, the Collateral Agent shall take, at NRG Energy's expense, such actions
as NRG Energy may reasonably request to effect the release of such Cash
Collateral Deposit and the security interest and lien granted pursuant to this
clause (a), provided, however, that in the case of clause (ii) of this sentence,
at the time of such proposed release no other NRG Event of Default shall have
occurred and be continuing.

                  (b) Interest and other payments and distributions made on or
with respect to the cash collateral held by the Collateral Agent pursuant to
clause (a) of this Section 6.4 shall be for the account of NRG Energy and shall
constitute cash collateral to be held by the Collateral Agent or returned to NRG
Energy in accordance with clause (a) of this Section 6.4 or in accordance with
Section 12.3.

                  (c) NRG Energy may at any time replace cash on deposit in any
         Cash Collateral Account with an Acceptable Letter of Credit. Such
Acceptable Letter of Credit shall be administered in accordance with Section 5.2
of the Depositary Agreement.

                                       14

<PAGE>

                  (d) Cash held in any Cash Collateral Account shall be invested
and reinvested in Permitted Investments (which Permitted Investments shall be
only those described in clauses (a), (b), (e), (f) or (g) of the definition
thereof) by the Collateral Agent, which shall make such Permitted Investments
(a) when no Issuer Event of Default has occurred and is continuing, at the
written direction of NRG Energy, and (b) when an Issuer Event of Default has
occurred and is continuing, at the written direction of XLCA (if XLCA is the
Controlling Party). If there is no direction from NRG Energy or XLCA (if XLCA is
the Controlling Party), any cash held in any Cash Collateral Account shall be
deposited in the Cash Reserve Account at The Bank of New York, an interest
bearing demand cash account at the Depositary Agent. The Collateral Agent shall
have no obligation to invest or reinvest any amounts held hereunder in the
absence of written investment instructions, and in no event shall the Collateral
Agent be liable for the selection of Permitted Investments or for investment
losses, if any, incurred thereon. Any and all commissions, broker fees or other
charges, penalties, fees or expenses incurred in connection with the investment
in, or liquidation of, any Permitted Investment shall be solely for the account
of NRG Energy, and shall be debited against the cash balance in the applicable
Cash Collateral Account.

                  (e) The Collateral Agent shall sell or liquidate all or any
portion of the Permitted Investments held in any Cash Collateral Account at any
time the proceeds thereof are required to make any disbursement from such Cash
Collateral Account in accordance with the terms of this Agreement. Any such sale
or liquidation shall be in the order of maturity of the applicable Permitted
Investments, with Permitted Investments closest to maturity being sold or
liquidated first. In no event shall the Collateral Agent be liable for any
losses incurred as a result of the liquidation of any Permitted Investment prior
to its stated maturity (including, without limitation, any early withdrawal or
liquidation penalty) or the failure of any Person to provide timely written
investment instructions.

                  Section 6.5 Set-Off. In addition to any rights now or
hereafter granted under applicable Legal Requirements or otherwise, and not by
way of limitation of any such rights, upon the failure of NRG Energy to make any
payments as required by Section 2 hereunder, the Collateral Agent is hereby
authorized at any time or from time to time, without presentment, demand,
protest or other notice of any kind to NRG Energy or to any other Person, any
such notice being hereby expressly waived, to set off and to appropriate and
apply any and all deposits (general or special) and any other indebtedness at
any time held or owing by any Secured Party (including by branches and agencies
of each of the Secured parties wherever located) to or for the credit or the
account of NRG Energy, against and on account of the obligations of NRG Energy
then due under this Agreement, irrespective of whether or not the Collateral
Agent shall have made any demand hereunder.

                                   SECTION 7
                             DEDUCTIONS/WITHHOLDING

                  All sums, if any, payable by NRG Energy hereunder shall be
paid in full, free of any deductions or withholdings for any and all Taxes
imposed by any governmental authority of

                                       15

<PAGE>

any jurisdiction through which payment is made. In the event that NRG Energy is
prohibited by law from making any such payments hereunder free of such
deductions or withholdings, then NRG Energy shall pay such additional amount as
may be necessary in order that the actual amount received after such deduction
or withholding shall equal the full amount stated to be payable hereunder. NRG
Energy shall pay directly to all appropriate taxing authorities any and all
Taxes, and all liabilities with respect to such Taxes imposed by law or by any
taxing authority on or with regard to any payment required to be made by NRG
Energy hereunder. Notwithstanding the foregoing, if a payment due from NRG
Energy hereunder relates to a payment which, if directly made by the Issuer or
other primary obligor, would have been subject to deduction or withholding of
Taxes without any gross-up obligation (or an obligation to pay an additional
amount) on the part of the Issuer or other primary obligor, NRG Energy shall not
be required to pay additional amounts under this Section 7.

                                   SECTION 8
                                    NOTICES

                  Section 8.1 Notices. Any communication between the parties
hereto or notices provided herein to be given may be given to the following
addresses:

                  (a) If to NRG Energy, at:

                                    NRG Energy, Inc.
                                    901 Marquette Avenue
                                    Suite 2300
                                    Minneapolis, Minnesota  55402
                                    Attn:  General Counsel
                                    Telephone No.:  (612) 373-5300
                                    Telecopy No.:  (612) 373-5392

                                    with copy to:

                                    Kirkland & Ellis LLP
                                    153 East 53rd Street
                                    New York, NY  10022
                                    Attention:  Lisa M. Anastos
                                    Telephone No.:  (212) 446-4761
                                    Telecopy No.:  (212) 446-4900

                                    and

                                       16

<PAGE>

                                    XL Capital Assurance Inc.
                                    1221 Avenue of the Americas
                                    New York, New York  10020
                                    Attention:  Surveillance
                                    Telecopy:  (212) 478-3587
                                    Confirmation:  (212) 478-3400

                  (b) If to the Collateral Agent, at:

                                    The Bank of New York
                                    101 Barclay Street, Floor 8 West
                                    New York, NY  10286
                                    Attn:  Corporate Trust Administration
                                    Telephone No.:  (212) 815-4816
                                    Telecopy No.:  (212) 815-5707

                                    with copy to:

                                    Kirkland & Ellis LLP
                                    153 East 53rd Street
                                    New York, NY  10022
                                    Attention:  Lisa M. Anastos
                                    Telephone No.:  (212) 446-4761
                                    Telecopy No.:  (212) 446-4900

                                    and

                                    XL Capital Assurance Inc.
                                    1221 Avenue of the Americas
                                    New York, New York  10020
                                    Attention:  Surveillance
                                    Telecopy:  (212) 478-3587
                                    Confirmation:  (212) 478-3400

                  All notices or other communications required or permitted to
be given hereunder shall be in writing and shall be considered as properly given
(a) if delivered in person, (b) if sent by overnight delivery services
(including Federal Express, UPS, ETA, Emery, DHL, Airborne and other similar
overnight delivery services), (c) in the event overnight delivery services are
not readily available, if mailed by first class United States Mail, postage
prepaid, registered or certified with return receipt requested, (d) if sent by
prepaid telegram or by facsimile or (e) other electronic means (including
electronic mail) confirmed by facsimile or telephone (except to the Collateral
Agent). Notice so given shall be effective upon receipt by the addressee, except
that communication or notice so transmitted by facsimile or other direct
electronic means shall be deemed to have been validly and effectively given on
the day (if a Business Day and, if not, on the next following Business Day) on
which it is transmitted if transmitted before 4:00 p.m.,

                                       17

<PAGE>

recipient's time, and if transmitted after that time, on the next following
Business Day; provided, however, that if any notice is tendered to an addressee
and the delivery thereof is refused by such addressee, such notice shall be
effective upon such tender. Any party shall have the right to change its address
for notice hereunder to any other location within the continental United States
by giving of 30 days' notice to the other parties in the manner set forth above.

                                   SECTION 9
                                  TERMINATION

                  This Agreement shall terminate upon the payment in full of the
Obligations and any obligations hereunder.

                                   SECTION 10
                             SUCCESSORS AND ASSIGNS

                  This Agreement shall be binding upon and inure to the benefit
of the parties hereto and their respective successors and permitted assigns.
This Agreement may not be assigned by NRG Energy except with the consent of the
Collateral Agent (in accordance with Section 9.2 of the Common Agreement) unless
assigned, in part, in connection with a Permitted Change of Control in
accordance with the Common Agreement, in which case the Associated Parent
Obligations (if any) in respect of the transferred assets or ownership
interests, as the case may be, shall be assumed by a party (an "Acceptable
Assignee") that either (x) is rated at least A3 by Moody's and A- by S&P or (y)
is rated at least Baa2 by Moody's and BBB by S&P and has provided cash,
Acceptable Letters of Credit or other credit support acceptable to the
Controlling Party in its sole discretion in an amount of the Equity
Reimbursement Amount assumed by the Acceptable Assignee.

                                   SECTION 11
                                   AMENDMENT

                  No amendment or waiver of any provision of this Agreement nor
any consent to any departure by NRG Energy herefrom shall in any event be
effective unless the same shall be in writing and signed by NRG Energy and the
Collateral Agent (in accordance with Section 9.2 of the Common Agreement), and
then such waiver or consent shall be effective only in the specific instance and
for the specific purpose for which given.

                                   SECTION 12
                         EVENTS OF DEFAULT AND REMEDIES

                  Section 12.1 Events of Default. The occurrence of any of the
following events shall constitute an event of default hereunder (an "NRG Event
of Default"):

                  (a) NRG Energy shall fail to make any payment as and when due
under this Agreement;

                                       18

<PAGE>

                  (b) any representation or warranty by NRG Energy set forth in
this Agreement or in any document entered into in connection herewith in favor
of or for the benefit of any Secured Party or in any certificate, financial
statement or other document delivered in connection herewith for the benefit of
any Secured Party shall prove to have been incorrect in any material respect (in
the case of any representation or warranty without any materiality
qualification) or in any respect (in the case of any representation or warranty
containing any materiality qualification) when made (or deemed made) and the
facts or events underlying such incorrect representation or warranty shall not
be changed so as to correct such representation or warranty in all material
respects for a period of 30 days (or so long as the facts or events underlying
such incorrect representation or warranty are capable of being changed so as to
correct such incorrect representation or warranty in all material respects and
NRG Energy is diligently proceeding to change such events or facts, such longer
period but in no event for an aggregate period in excess of 90 days) after a
Responsible Officer of NRG Energy becomes aware thereof or NRG Energy first
received a notice from or on behalf of the Controlling Party specifying such
material inaccuracy and requiring that facts or events underlying such incorrect
representation or warranty be changed so as to correct such incorrect
representation or warranty in all material respects;

                  (c) NRG Energy shall default in the due observance or
performance of any agreement contained in Sections 2.5 through 2.7, 2.11 or 4.1;

                  (d) NRG Energy shall default in the due observance or
performance of any covenant, condition or agreement contained in this Agreement
(other than Section 2.10 and those specified in Section 12.1(c) above) and such
default shall continue unremedied for a period of 30 days after notice thereof
from the Collateral Agent, provided, however, if (i) such failure does not
consist of a failure to pay money and cannot be cured within such 30 day period,
(ii) such failure is susceptible of cure within 90 days, (iii) NRG Energy is
proceeding with diligence and in good faith to cure such failure, (iv) the
existence of such failure has not had and cannot, after considering the nature
of the cure, be reasonably expected to have an NRG Energy Material Adverse
Effect, and (v) the Collateral Agent shall have received an officer's
certificate signed by a Responsible Officer of NRG Energy, in such Responsible
Officer's capacity as an officer of NRG Energy, to the effect of clauses (i),
(ii), (iii) and (iv) above and stating what action NRG Energy is taking to cure
such failure, then such 30 day cure period shall be extended to such date, not
to exceed a total of 90 days, as shall be necessary for NRG Energy diligently to
cure such failure; provided, further, that in the case of a default in the due
observance or performance of Sections 2.3, 2.4, 2.8 and 2.9 the applicable cure
period shall not exceed a total of 60 days;

                  (e) NRG Energy shall default for a period beyond any
applicable grace period (i) in the payment of any principal, interest or other
amount due on any Debt for Borrowed Money of NRG Energy (other than amounts
under the Financing Documents) and such defaulted amount, together with any
other principal, interest or other amount due and unpaid on any Debt for
Borrowed Money of NRG Energy (other than amounts under the Financing Documents)
equals or exceeds $50,000,000, or in the performance of any Specified Financial
Covenant; or (ii) in the payment of any amount then due or performance of any
obligation then required under any agreement evidencing Debt of NRG Energy
(other than the Financing Documents) if

                                       19

<PAGE>

because of such default, the holder of such Debt accelerates the payment thereof
and such accelerated amount, together with the amount of any other Debt of NRG
Energy then so accelerated (other than the obligations under the Financing
Documents) equals or exceeds $50,000,000, provided, that it shall not constitute
an NRG Event of Default as set forth in clause (i) with respect to a breach of
any Specified Financial Covenant if, and for so long as, NRG Energy provides an
officer's certificate from a responsible officer stating that either NRG Energy
and the holder(s) of the relevant obligation(s) under the relevant agreement(s)
in which such Specified Financial Covenant appears are, and continue to be, in
active discussions with respect to the waiver of such default (such officer's
certificate to be renewed every 10 Business Days) or that a default no longer
exists under such relevant agreements as a result of a breach of any Specified
Financial Covenant;

                  (f) NRG Energy itself shall be subject to a Bankruptcy Event;
or

                  (g) One or more final judgments for the payment of money (if
such payments are not fully covered by insurance) in excess of $50,000,000 in
the aggregate shall be rendered against NRG Energy, and NRG Energy shall fail to
discharge the same or provide for its discharge in accordance with its terms, or
procure a stay of execution thereof, within 60 days after the date of entry
thereof; provided, however, that any such judgment shall not be (and shall not
constitute part of) an NRG Event of Default under this Section 12.1(g) if and
for so long as either (i)(A) the amount of such judgment is fully covered by a
valid and binding policy of insurance between the defendant and the insurer
covering payment thereof and (B) such insurer has been notified of, and has not
disputed the claim made for payment of, the amount of such judgment, or (ii)
such judgment if left unstayed could not reasonably be expected to have an NRG
Material Adverse Effect.

                  Section 12.2 Remedies. Upon the occurrence of an NRG Event of
Default, the Collateral Agent (acting at the direction of the Controlling Party)
shall (a) have the right to declare all obligations pursuant to Sections 2.1
under this Agreement to be immediately due and payable and require NRG Energy to
immediately pay to the Collateral Agent in immediately available funds an amount
equal to the Equity Reimbursement Amount (provided that in the event of an NRG
Event of Default under Section 12.l(f) of this Agreement, such obligations shall
be automatically accelerated) and any amounts due and payable that accrued under
this Agreement prior to such date, and (b) have all the rights and remedies
available to it at law or in equity in respect of any default or breach by NRG
Energy of its obligations under this Agreement. Other than as expressly provided
herein, no remedy conferred upon or reserved to any party is intended to be
exclusive of any other available remedy or remedies, but each and every such
remedy shall be cumulative and shall be in addition to every other remedy given
under this Agreement or now or hereafter existing at law or in equity. In order
to entitle any party to exercise any remedy reserved to it in this Agreement, it
shall not be necessary to give any notice, other than such notice as may be
expressly required by this Agreement. No failure or delay on the part of any
party in exercising any right, power or privilege hereunder and no course of
dealing between NRG Energy and any Secured Party shall operate as a waiver
thereof; nor shall any single or partial exercise of any right, power or
privilege hereunder preclude any other

                                       20

<PAGE>

or further exercise thereof or the exercise of any other right, power or
privilege hereunder or thereunder.

                  Section 12.3 Cash Collateralization in Connection with Issuer
Event of Default.

                  (a) On any date upon which there exists and is continuing an
NRG Event of Default hereunder (other than an NRG Event of Default pursuant to
Section 12.1(a) hereof), NRG Energy may, in order to cure the Issuer Event of
Default resulting therefrom as contemplated by Section 7.l(m)(iii) of the Common
Agreement, at its sole option, pay, or to cause to be paid in Dollars, in
immediately available funds on such date, an amount equal to (i) the Equity
Reimbursement Amount and (ii) any amounts due and payable that accrued under
this Agreement prior to such date (such payment, a "Cash Collateral Deposit").
Cash Collateral Deposits shall be paid by NRG Energy to the Collateral Agent,
for immediate deposit into a segregated cash collateral account maintained by
the Collateral Agent for the benefit of the Secured Parties as further described
in Section 6.4.

                  (b) No Issuer Event of Default under Section 7.1(m)(iii) of
the Common Agreement shall occur upon the occurrence and during the continuation
of an NRG Event of Default if at such time (i) there are no amounts due and
payable under this Agreement and (ii) the Equity Reimbursement Amount equals
zero.

                  (c) No Issuer Event of Default under Section 7.1(m)(iii) of
the Common Agreement shall occur upon the occurrence and during the continuation
of any NRG Event of Default under Section 12.1(e)(i), if at such time, the
Equity Reimbursement Amount and any other amounts due and payable under this
Agreement are less than $3,000,000.

                                   SECTION 13
                                    HEADINGS

                  The headings herein are included for convenience of reference
only and shall be ignored in the construction or interpretation hereof.

                                   SECTION 14
                                  GOVERNING LAW

                  THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK (WITHOUT GIVING EFFECT TO THE
PRINCIPLES THEREOF RELATING TO CONFLICTS OF LAW EXCEPT SECTION 5-1401 OF THE NEW
YORK GENERAL OBLIGATIONS LAW).

                                       21

<PAGE>

                                   SECTION 15
                            CONSENT TO JURISDICTION;
                   APPOINTMENT OF AGENT FOR SERVICE OF PROCESS

                  With respect to any legal action or proceeding against NRG
Energy arising out of or in connection with this Agreement, NRG Energy hereby
irrevocably (i) consents to the jurisdiction of the courts of the State of New
York, in and for the County of New York, and of the United States of America for
the Southern District of New York, (ii) consents to the service of process
outside the territorial jurisdiction of said courts in any such action or
proceeding by mailing copies thereof by registered United States mail, postage
prepaid, to the address specified pursuant to Section 8 hereof, and (iii) to the
fullest extent permitted by Applicable Law, waives any objection to the venue of
the aforesaid courts and any objection that the aforesaid courts are an
inconvenient forum. NRG Energy hereby designates, appoints and empowers
Corporation Service Company, with offices on the date hereof at 1177 Avenue of
the Americas, 17th Floor, New York, New York 10036-2721, as its designee,
appointee and agent with respect to any action or proceeding in New York to
receive for and on its behalf service of any and all legal process, summons,
notices and documents which may be served in any such action or proceeding and
agrees that the failure of such agent to give any advice of any such service of
process to such person shall not impair or affect the validity of such service
or of any judgment based thereon. If for any reason such designee, appointee and
agent shall cease to be available to act as such, NRG Energy agrees to designate
a new designee, appointee and agent in New York City on the terms and for the
purposes of this provision.

                                   SECTION 16
                              WAIVER OF JURY TRIAL

                  THE PARTIES HERETO HEREBY KNOWINGLY, VOLUNTARILY AND
INTENTIONALLY WAIVE ANY RIGHTS THEY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF
ANY LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER OR IN CONNECTION WITH,
THIS AGREEMENT OR ANY OTHER FINANCING DOCUMENT, OR ANY COURSE OF CONDUCT, COURSE
OF DEALING, STATEMENTS (WHETHER VERBAL OR WRITTEN) OR ACTIONS OF THE PARTIES
HERETO. THIS PROVISION IS A MATERIAL INDUCEMENT FOR THE COLLATERAL AGENT TO
ENTER INTO THIS AGREEMENT.

                                   SECTION 17
                                    EXPENSES

                  Upon written demand, NRG Energy shall pay to the Collateral
Agent, for itself and on behalf of the Secured Parties, any and all reasonable
expenses, including reasonable attorneys' fees and expenses, which the
Collateral Agent or the Controlling Party may incur in connection with the
exercise or enforcement of any of the rights or interests of the Collateral
Agent, on behalf of the Secured Parties, hereunder as a result of a breach of
this Agreement by NRG Energy.

                                       22

<PAGE>

                                   SECTION 18
                                  MISCELLANEOUS

                  Section 18.1 Counterparts. This Agreement and any amendments,
waivers, consents or supplements hereto or in connection herewith may be
executed in any number of counterparts and by different parties hereto in
separate counterparts, each of which when so executed and delivered shall be
deemed an original, but all such counterparts together shall constitute but one
and the same instrument; signature pages may be detached from multiple separate
counterparts and attached to a single counterpart so that all signature pages
are physically attached to the same document.

                  Section 18.2 Severability. In case any one or more of the
provisions contained in this Agreement should be invalid, illegal or
unenforceable in any respect, the validity, legality and enforceability of the
remaining provisions shall not in any way be affected or impaired thereby.

                  Section 18.3 Limitation of Liability. Except as is
specifically provided in this Agreement, neither Collateral Agent nor any other
Secured Party shall have any recourse to NRG Energy in respect of the
Obligations. The provisions of Article 8 of the Common Agreement shall apply to
this Agreement.

                  Section 18.4 Third Party Rights. Except to the extent set
forth in Section 6.5, nothing in this Agreement, expressed or implied, is
intended or shall be construed to confer upon, or give to any Person (other than
Issuer, Collateral Agent and the Secured Parties) any security, rights, remedies
or claims, legal or equitable, under or by reason hereof, or any covenant or
condition hereof; and this Agreement and the covenants and agreements herein
contained are and shall be held to be for the sole and exclusive benefit of
Issuer, Collateral Agent and the Secured Parties.

                  Section 18.5 Survival of Obligations. All representations,
warranties, covenants and agreements made herein and in the certificates or
other instruments delivered in connection with or pursuant to this Agreement
shall be considered to have been relied upon by the parties hereto and shall
survive the execution and delivery of this Agreement, the termination of this
Agreement and the making of the payments required under Section 2.
Notwithstanding anything in this Agreement or implied by law to the contrary,
the agreements of NRG Energy set forth in Sections 6.1, 8 and 17 shall survive
the making of the payments required under Section 2 and the termination of this
Agreement.

                  Section 18.6 Rights of Collateral Agent. In acting under or by
virtue of this Agreement, the Collateral Agent shall be entitled to all the
rights, privileges, and immunities provided to it in the Common Agreement, all
of which are incorporated by reference herein with the same force and effect as
if set forth herein in their entirety.

                                       23

<PAGE>

                  IN WITNESS WHEREOF, the undersigned have caused this Agreement
to be executed by their duly authorized officer(s) or representative(s) all as
of the date first above written.

                                    NRG ENERGY, INC.,

                                    By: ________________________________________
                                        Name:
                                        Title:

                                    THE BANK OF NEW YORK,
                                    as Collateral Agent

                                    By: ________________________________________
                                        Name:
                                        Title:

<PAGE>

                                                                      EXHIBIT  A

                    FORM OF EQUITY REIMBURSEMENT CERTIFICATE

                                                       __________ ___, _____ (1)

XL Capital Assurance Inc.
1221 Avenue of the Americas
New York, New York  10022
Attention:  Surveillance

Law Debenture Trust Company of New York, as Trustee
767 Third Avenue, 31st Floor
New York, New York  10017
Attention:  Daniel R. Fisher

The Bank of New York, as Collateral Agent
101 Barclay Street, Floor 8 West
New York, New York 10286
Attention:  Corporate Trust Department

Goldman Sachs Mitsui Marine Derivations Products, L.P., as Swap Counterparty
85 Broad Street
New York, New York  10004
Attention:  Swap Administration (with a copy to Treasury Administration)

                  Re:      Equity Reimbursement Amount

Ladies and Gentlemen:

                  NRG Energy, Inc. ("NRG Energy") is delivering this certificate
         pursuant to Section 4.5(a) of the Parent Agreement, dated as of January
         6, 2004, by NRG Energy in favor of the Collateral Agent (as amended,
         amended and restated, supplemented or otherwise modified from time to
         time, the "Parent Agreement"). Capitalized terms used but not defined
         herein shall have the meanings given in Annex A to the Amended and
         Restated Common Agreement, dated as of January 6, 2004, among XL
         Capital Assurance Inc., Swap Counterparty, Trustee, Collateral Agent,
         the Issuer, and each party thereto identified as a Project Company on
         the signature pages thereto (as amended, amended and restated,
         supplemented or otherwise modified from time to time, the "Common
         Agreement").

------------------
(1)      Certificate to be dated and delivered within 20 days following the
         Annual Scheduled Payment Date and subsequently in accordance with
         Section 4.5(a) of the Parent Agreement.

<PAGE>

                     SECTION 19 Restricted Payment Amount.

                  Section 19.1 The aggregate amount of the Restricted Payment
that had been made or distributed to NRG Energy prior to [INSERT THE ANNUAL
SCHEDULED PAYMENT DATE THAT IS IMMEDIATELY PRIOR TO THE DATE HEREOF] is:
$[PROVIDE THE CUMULATIVE AMOUNT OF THE RESTRICTED PAYMENT EXCLUDING PAYMENTS
MADE ON SUCH ANNUAL SCHEDULED PAYMENT DATE].

                  Section 19.2 The amount of the Restricted Payment that was
made and distributed to NRG Energy on [INSERT THE ANNUAL SCHEDULED PAYMENT DATE
THAT IS IMMEDIATELY PRIOR TO THE DATE HEREOF] is: $[PROVIDE THE AMOUNT OF THE
RESTRICTED PAYMENT MADE ON SUCH ANNUAL SCHEDULED PAYMENT DATE].

                   SECTION 20 Corporate Services Annual Fee.

                  Section 20.1 The aggregate amount of the Corporate Services
Annual Fee that had been paid to NRG Energy prior to [INSERT THE ANNUAL
SCHEDULED PAYMENT DATE THAT IS IMMEDIATELY PRIOR TO THE DATE HEREOF] is:
$[PROVIDE THE CUMULATIVE AMOUNT OF THE CORPORATE SERVICES ANNUAL FEE EXCLUDING
PAYMENTS MADE ON SUCH ANNUAL SCHEDULED PAYMENT DATE].

                  Section 20.2 The amount of the Corporate Services Annual Fee
that was paid to NRG Energy on [INSERT THE ANNUAL SCHEDULED PAYMENT DATE THAT IS
IMMEDIATELY PRIOR TO THE DATE HEREOF] is: $[PROVIDE THE AMOUNT OF THE CORPORATE
SERVICES ANNUAL FEE PAID ON SUCH ANNUAL SCHEDULED PAYMENT DATE].

                  SECTION 21 Corporate Services Accumulation Amount.

                  Section 21.1 The aggregate Corporate Services Accumulation
Amount that was outstanding prior to [INSERT THE ANNUAL SCHEDULED PAYMENT DATE
THAT IS IMMEDIATELY PRIOR TO THE DATE HEREOF] is: $[PROVIDE THE CUMULATIVE
AMOUNT OF THE CORPORATE SERVICES SHORTFALL EXCLUDING THE AMOUNT THAT AROSE ON
SUCH ANNUAL SCHEDULED PAYMENT DATE].

                  Section 21.2 The amount of the Corporate Services Payment
Shortfall that arose on [INSERT THE ANNUAL SCHEDULED PAYMENT DATE THAT IS
IMMEDIATELY PRIOR TO THE DATE HEREOF] is: $[PROVIDE THE AMOUNT OF THE CORPORATE
SERVICES PAYMENT SHORTFALL THAT AROSE ON SUCH ANNUAL SCHEDULED PAYMENT DATE].

                  Section 21.3 The aggregate amount of the Corporate Services
Payment that had been made pursuant to priority Thirteen of Section 4.1.2 of the
Depositary Agreement in respect of such Corporate Services Accumulation Amount
prior to [INSERT THE ANNUAL SCHEDULED PAYMENT DATE THAT IS IMMEDIATELY PRIOR TO
THE DATE HEREOF] is: $[PROVIDE THE CUMULATIVE AMOUNT OF THE CORPORATE SERVICES
PAYMENT MADE IN RESPECT OF THE CORPORATE SERVICES ACCUMULATION AMOUNT PRIOR TO
SUCH ANNUAL SCHEDULED PAYMENT DATE].

<PAGE>

                  Section 21.4 The amount of the Corporate Services Payment that
was made pursuant to priority Thirteen of Section 4.1.2 of the Depositary
Agreement in respect of such Corporate Services Accumulation Amount on [INSERT
THE ANNUAL SCHEDULED PAYMENT DATE THAT IS IMMEDIATELY PRIOR TO THE DATE HEREOF]
is: $[PROVIDE THE AMOUNT OF THE CORPORATE SERVICES PAYMENT MADE IN RESPECT OF
THE CORPORATE SERVICES ACCUMULATION AMOUNT ON SUCH ANNUAL SCHEDULED PAYMENT
DATE].

                  Section 21.5 The Corporate Services Accumulation Amount as of
the date hereof is: $[PROVIDE THE CORPORATE SERVICES ACCUMULATION AMOUNT BY
ADDING AMOUNTS UNDER 3(a) AND 3(b) ABOVE AND SUBTRACTING AMOUNTS UNDER 3(c) AND
3(d)].

                    SECTION 22 Equity Reimbursement Amount.

                  Section 22.1 The aggregate Equity Reimbursement Amount that
had been made or distributed to NRG Energy prior to [INSERT THE ANNUAL SCHEDULED
PAYMENT DATE THAT IS IMMEDIATELY PRIOR TO THE DATE HEREOF] is: $[PROVIDE THE
AMOUNT OF THE EQUITY REIMBURSEMENT AMOUNT PRIOR TO THE ANNUAL SCHEDULED PAYMENT
DATE BY ADDING AMOUNTS UNDER 1(a), 2(a) AND 3(c)].

                  Section 22.2 The Equity Reimbursement Amount that was made and
distributed to NRG Energy on [INSERT THE ANNUAL SCHEDULED PAYMENT DATE THAT IS
IMMEDIATELY PRIOR TO THE DATE HEREOF] is: $[PROVIDE THE EQUITY REIMBURSEMENT
AMOUNT MADE ON SUCH ANNUAL SCHEDULED PAYMENT DATE BY ADDING AMOUNTS UNDER 1(b),
2(b) AND 3(d)].].

                  Section 22.3 The aggregate amount of the Equity Reimbursement
Payments that had been made or paid by NRG Energy pursuant to Section 2.1 of the
Parent Agreement (including that made on such date) as of [INSERT THE ANNUAL
SCHEDULED PAYMENT DATE THAT IS IMMEDIATELY PRIOR TO THE DATE HEREOF] is:
$[PROVIDE THE CUMULATIVE AMOUNT OF THE EQUITY REIMBURSEMENT PAYMENTS ON SUCH
ANNUAL SCHEDULED PAYMENT DATE].

                  Section 22.4 The Equity Reimbursement Amount of NRG Energy as
of the date hereof is: $[PROVIDE THE EQUITY REIMBURSEMENT AMOUNT BY ADDING
AMOUNTS UNDER 4(a) AND 4(b) ABOVE AND SUBTRACTING AMOUNTS UNDER 4(c)].

                      SECTION 23 Supporting Documentation.

                  The following documentation is attached hereto as Annex A in
         support of the calculations set forth above: [INSERT DESCRIPTION OF
         SUPPORTING DOCUMENTATION].

                            [SIGNATURE PAGE FOLLOWS]

<PAGE>

                  IN WITNESS WHEREOF, NRG Energy has caused this Equity
         Reimbursement Amount Certificate to be duly executed and delivered by a
         Responsible Officer of NRG Energy as of the date first above written.

                                    NRG Energy, Inc.

                                    By:________________________________________
                                       Name:
                                       Title:

<PAGE>

                                                            Annex A to Exhibit A

                            Supporting Documentation

<PAGE>

                                                                      EXHIBIT  B

               FORM OF INTERCONNECTION SOLUTION TRANSFER DOCUMENTS

<PAGE>

                                                                      SCHEDULE A

                          INTERCOMPANY ACCOUNT BALANCES
<TABLE>
<CAPTION>
                                       COUNTER
                                       PARTY                                           PEAKER
          COUNTER PARTY              ACCOUNT NO               PEAKER                 ACCOUNT NO       BALANCE
---------------------------------    ----------    -----------------------------     ----------     -----------
<S>                                  <C>           <C>                               <C>            <C>
Arthur Kill Power LLC                     01372    Bayou Cove Peaking Power LLC           01442     $   147,748
Arthur Kill Power LLC                     01372    Bayou Cove Peaking Power LLC           01442    ($       118)
Arthur Kill Power LLC                     01372    Big Cajun 1 Peaking Power LLC          01408    ($   469,912)
Kendall                                   01417    NRG Rockford II LLC                    01277    ($   504,918)
Louisiana Generating                      01386    Sterlington                                      $ 5,194,640
Louisiana Generating                      01386    Sterlington                                      $    21,794
Louisiana Generating                      01386    Sterlington                                     ($ 4,990,298)
Louisiana Generating                      01386    Bayou Cove Peaking Power LLC           01442    ($   688,941)
Louisiana Generating                      01386    Bayou Cove Peaking Power LLC           01442     $   211,101
Louisiana Generating                      01386    Big Cajun 1 Peaking Power LLC          01408     $ 7,810,642
Louisiana Generating                      01386    Big Cajun 1 Peaking Power LLC          01408    ($   556,687)
Louisiana Generating                      01386    NRG Bayou Cove LLC                              ($       431)
Louisiana Generating                      01386    NRG Rockford LLC                       01274    ($       888)
Middletown Power LLC                      01382    Bayou Cove Peaking Power LLC           01442    ($     6,576)
Middletown Power LLC                      01382    Big Cajun 1 Peaking Power LLC          01408    ($   121,625)
None Noted - Louisiana
Generating                              [Blank]    Bayou Cove Peaking Power LLC           01442    ($   107,469)
None Noted - Louisiana
Generating                              [Blank]    Big Cajun 1 Peaking Power LLC          01408     $14,712,001
None Noted - Louisiana
Generating                              [Blank]    NRG Rockford II LLC                    01277     $    43,655
None Noted - Louisiana
Generating                              [Blank]    NRG Sterlington Power LLC              01388     $ 8,528,333
Power Marketing                           01350    Bayou Cove Peaking Power LLC           01442    ($   831,517)
Power Marketing                           01350    Big Cajun 1 Peaking Power LLC          01408    ($ 2,003,576)
Power Marketing                           01350    NRG Rockford II LLC                    01277     $ 1,355,328
Power Marketing                           01350    NRG Sterlington Power LLC              01388     $   181,519
Power Marketing                           01350    NRG Rockford LLC                       01274    ($ 1,072,380)

                                                                                                    -----------
TOTAL SCHEDULE C                                                                                    $26,851,424
                                                                                                    ===========
</TABLE>

<PAGE>

                                                                      SCHEDULE B

                          INTERCOMPANY ACCOUNT BALANCES
<TABLE>
<CAPTION>
                      COUNTER                                      PEAKER
                      PARTY                                        ACCOUNT
 COUNTER PARTY      ACCOUNT NO               PEAKER                  NO          BALANCE
----------------    ----------    -----------------------------    -------    ------------
<S>                 <C>           <C>                              <C>       <C>
Kendall                  01417                                               ($     45,936)
Meriden                  01437    NRG Rockford II LLC                01277   ($    443,061)
NRG Energy               00001    Bayou Cove Peaking Power LLC       01442   ($ 39,148,297)
NRG Energy               00001    Big Cajun 1 Peaking Power LLC      01408    $  5,715,496
NRG Energy               00001    NRG Peaking Finance Co LLC         01249   ($ 95,092,537)
NRG Energy               00001    NRG Rockford Equipment II LLC      01278    $    218,863
NRG Energy               00001    NRG Rockford II LLC                01277    $  3,851,758
NRG Energy               00001    NRG Rockford LLC                   01274    $ 36,115,844
NRG Energy               00001    NRG Sterlington Power LLC          01388   ($ 15,651,242)
NRG Ilion LP             11210    NRG Rockford LLC                   01274    $   1681,556

                                                                              ------------
TOTAL SCHEDULE C                                                             ($103,797,556)
                                                                              ============
</TABLE>

<PAGE>

                                                                      SCHEDULE C

                          INTERCOMPANY ACCOUNT BALANCES

<TABLE>
<CAPTION>
                                       COUNTER                                      PEAKER
                                       PARTY                                        ACCOUNT
          COUNTER PARTY              ACCOUNT NO               PEAKER                  NO        BALANCE
---------------------------------    ----------    -----------------------------    -------    --------
<S>                                  <C>           <C>                              <C>        <C>
Louisiana Generating                      01386    Bayou Cove Peaking Power LLC       01442   ($ 87,755)
Power Marketing                           01350    NRG Rockford II LLC                01277    $218,016
NRG Operating  Services                   01100    Bayou Cove Peaking Power LLC       01442   ($    279)
NRG Operating Services                    01100    Big Cajun 1 Peaking Power LLC      01408    $117,884
NRG Operating Services                    01100    NRG Peaking Finance Co LLC         01249   ($  1,200)
NRG Operating Services                    01100    NRG Rockford II LLC                01277   ($    376)
NRG Operating Services                    01100    NRG Rockford LLC                   01274   ($  1,299)
Vienna Operations, Inc                    01407    Big Cajun 1 Peaking Power LLC      01408   ($123,667)
Huntley Power LLC.                        01298    Bayou Cove Peaking Power LLC       01442   ($  2,293)
Indian River Power LLC                    01394    Bayou Cove Peaking Power LLC       01442    $  4,524
Kaufman Cogen LP                          01436    Big Cajun 1 Peaking Power LLC      01408   ($  5,365)
LSP Energy LP                             01427    Big Cajun I                                ($    108)
LSP-Nelson Energy LLC                     01414    Various Peakers                            ($  2,612)
LSP-Pike Energy LLC                       01413    Various Peakers                             $  8,274
NRG Audrain Generating LLC                01426    NRG Sterlington Power LLC          01388   ($ 13,719)
NRG Bourbonnais LLC                       01276    NRG Rockford LLC                   01274   ($  3,103)
NRG Dunkirk Operations Inc.               01297    Bayou Cove Peaking Power LLC       01442   ($  3,821)
NRG Energy Center Dover LLC               01036    Bayou Cove Peaking Power LLC       01442    $  1,391
NRG Energy Center Harrisburg Inc.         01030    Various Peakers                            ($  3,858)
NRG Energy Center Minneapolis
LLC                                       01001    Various Peakers                            ($    978)
NRG Energy Center Pittsburgh LLC          01013    Bayou Cove Peaking Power LLC       01442   ($  2,212)
NRG McClain LLC                           01389    Various Peakers                            ($  1,237)
NRG Services Inc.                         01120    Various Peakers                            ($  2,179)
NRG South Central LLC                     01390    Bayou Cove Peaking Power LLC       01442    $  1,000
NRG South Central Operations Inc.         01115    Bayou Cove Peaking Power LLC       01442    $  3,796
NRG Turbine LLC                           01247    NRG Rockford LLC                   01274   ($     36)
Oswego Harbor Power LLC                   01370    Various Peakers                            ($ 10,282)
Power Marketing                           01350    Big Cajun 1 Peaking Power LLC      01408    $  4,520
Power Marketing                           01350    NRG Rockford II LLC                01277    $ 33,270
Power Marketing                           01350    NRG Sterlington Power LLC          01388   ($  1,050)
Vienna Power LLC                          01396    Bayou Cove Peaking Power LLC       01442    $    696
Louisiana Generating                      01386    Sterlington                                 $      0
Louisiana Generating                      01386    Bayou Cove Peaking Power LLC       01442    $      0
Louisiana Generating                      01386    Big Cajun 1 Peaking Power LLC      01408    $      0
Power Marketing                           01350    NRG Rockford II LLC                01277    $  6,391

                                                                                               --------
TOTAL SCHEDULE C                                                                               $132,336
                                                                                               ========
</TABLE>

<PAGE>

                                                                      SCHEDULE D

                               REGULATORY MATTERS

FERC has indicated in the following orders that it will treat the Company as a
"public utility" for purposes of Section 204 of the FPA:

                  1. Letter from Michael C. McLaughlin to Scott J. Davido,
Docket No. ES03-59-000, 105 FERC p. 62,006 (Oct. 2, 2003);

                  2. Letter from Michael C. McLaughlin to Scott J. Davido,
Docket Nos. ES03-59-000, ES03-59-001, 105 FERC p. 62,037 (Oct. 22, 2003); and

                  3. Letter from Michael C. McLaughlin to Scott J. Davido,
Docket Nos. ES03-59-003, 105 FERC p. 62,177 (Dec. 12, 2003).

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00063-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00063-of-00352.parquet"}]]