Portfolio Management and Capital Allocation Highlights

$500 million long-lead time material financing executed by Nuclear Innovation North America LLC (NINA) with Toshiba America Nuclear Energy, Inc. (TANE);

$58.5 million tax-exempt financing closed at Dunkirk;

$534 million financing closed for GenConn peakers projects;

Reliant retail acquisition on track to close May 1, 2009, one month ahead of schedule;

MIBRAG sale transaction on target to close in second quarter of 2009;

Construction begins on the 150 megawatt (MW) Langford Wind Project;

550 MW Cedar Bayou unit 4 combined cycle project on target for June 2009 startup; and

Around 500 MW of solar project development rights acquired from eSolar.

Income from continuing operations before taxes was $496 million for the first three months of 2009, a $397 million increase over the $99 million in the first quarter of 2008. The increase in income from continuing operations was driven by $271 million in unrealized mark-tomarket (MtM) gains in the current quarter compared with $160 million in unrealized MtM losses in the first quarter of 2008. Operating expenses for the first quarter of 2009 included $5 million in Exelon defense costs and $12 million associated with the company’s pending acquisition of Reliant Energy’s Texas retail energy business.

Adjusted EBITDA, excluding MtM impacts, was $477 million for the first quarter of 2009 compared to $525 million in the prior year’s first quarter. Increased quarter-over-quarter adjusted EBITDA in our Texas region, from higher hedged prices, was offset by a decline in the Northeast region, which experienced lower generation and lower capacity revenues. South Central’s adjusted EBITDA, down $34 million, was negatively impacted by lower generation and merchant pricing, and the $16 million adjusted EBITDA decline in the West region reflects increased planned maintenance and expiration of a tolling agreement at El Segundo Generating Station in April of 2008.

“NRG’s active portfolio and prudent balance sheet management have enabled the company once again to deliver strong financial results in the midst of deteriorating economic conditions and falling commodity prices, particularly in our Northeast Region,” commented David Crane, NRG Energy president and chief executive officer. “During this period, the company continued to advance on all frontsin our efforts to create value for our shareholders via the acquisition of Reliant’s Texas retail business, the acquisition of a portfolio of large-scale solar development projects, the sale of a noncore asset in Europe and the issuance of project financing to further RepoweringNRG efforts.”

Cash flow from operations was $139 million during the first three months of 2009, a $79 million increase compared to the first quarter of 2008. The increase in cash flow from operations in 2009 was driven primarily by the close-out of commercial trade positions and lower commodity prices. Other movements in working capital during the first quarter included increased inventory of $29 million and the balance due to various changes in other assets and liabilities.

Plant reliability continued to improve, achieving an EFOR, or Equivalent Forced Outage Rate, of 2.2% in the first quarter of 2009 versus 2.8% during the same period last year. Total generation however, declined by 12% and 39% in our coal and gas fleets, respectively, as lower demand along with increased wind generation in Texas and a declining commodity price environment led to lower power prices and generation. Planned outages to install environmental back-end controls at the Huntley station and transmission system line outages in western New York also contributed to lower coal generation. Our nuclear generation increased by 1% for the first three months of 2009, as the South Texas Project (STP) extended its streak to 16 consecutive quarters without an unplanned outage. This builds upon STP’s exceptional performance, as it was also announced during the quarter that in 2008, for the fifth consecutive year, STP produced more electricity than any other two-unit nuclear power plant in the nation.

MtM Impacts of Hedging Activities

The company, in the normal course of business, enters into contracts to lock in forward prices for a significant portion of its expected power generation. Although these transactions are predominantly economic hedges of our generation portfolio, a portion of these forward sales are not afforded hedge accounting treatment and the MtM change in value of these transactions are recorded to current period earnings. For the first quarter of 2009, we recorded a $345 million forward net domestic MtM gain representing the increase in fair value on our economic hedges, of which $354 million was attributable to forward sales contracts of electricity and fuel in response to declining power and natural gas prices, compared to a $115 million net domestic MtM loss recorded in the first quarter of 2008 during a period of increasing power and natural gas prices. For the first quarter of 2009, $217 million of the gain was due to certain hedges not meeting the volumetric requirement for cash flow hedge accounting due to the decline in coal-fueled generation. In connection with this decline in coal generation, and in order to manage the company’s coal position, coal supply contracts may, in the future, be subject to financial settlement. Accordingly, they have been reclassified from accrual to MtM accounting treatment during the quarter which resulted in the recognition of an unrealized loss of $29 million.

Texas: Texas adjusted EBITDA increased by $28 million to $320 million in the first quarter of 2009 compared to $292 million in 2008. Adjusted EBITDA increased by $45 million from a $4.50/MWh increase in realized prices as our hedged prices on our baseload units were higher in 2009 than in 2008. This was offset by a 6% decrease in generation, mostly from our coal units, which reduced 2009 adjusted EBITDA by $28 million compared to 2008. In addition, 2008 results included a $15 million reserve for the settlement of a coal contract dispute resolved that same year.

Northeast: The Northeast region’s adjusted EBITDA declined $26 million to $106 million during the first quarter of 2009. Despite the declines in power generation and market power prices for the region, our active hedging program and higher contract margins on load obligations resulted in $4 million higher energy margins in the first quarter of 2009 compared to 2008. Capacity revenues for the region declined by $14 million driven by lower prices in New York as a result of NYISO’s reductions in Installed Reserve Margins and ICAP in-city mitigation rules that were put into effect in March of 2008. This quarter’s results were further impacted by transmission system line outages, increased carbon emissions allowance expenses of $5 million as a result of the January 1, 2009, implementation of Regional Greenhouse Gas Initiative (RGGI) legislation, as well as fewer emission allowance sales.