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NRG Energy, Inc. Reports Full-Year and Fourth Quarter Results; Increases Merger Synergies; Increases Dividend and Announces

  NRG Energy, Inc. Reports Full-Year and Fourth Quarter Results; Increases
  Merger Synergies; Increases Dividend and Announces Share Buyback Program

Full-Year 2012 Financial and Business Highlights^1

  *$1,917 million of Adjusted EBITDA, including $656 million delivered by
    NRG’s retail businesses;
  *$898 million of Free Cash Flow (FCF) before growth investments;
  *$0.36 per share annualized dividend initiated in the third quarter of
    2012;
  *$310 million/year^2 in total annual synergies ^ arising out of GenOn
    merger;

       *Cost synergies increased to $185 million from $175 million

  *142,000 increase in Retail customer count during 2012; 91,000 in the East
    market and 51,000 in the Texas market; and
  *290 MW of solar generation came online during 2012

Reaffirming 2013 and 2014 Guidance

  *Reaffirming guidance for Adjusted EBITDA and FCF before growth
    investments:

       *Adjusted EBITDA guidance: $2,535-$2,735 million and $2,700 -$2,900
         million, for 2013 and 2014 respectively
       *FCF before growth investments of $900-$1,100 million for each of 2013
         and 2014

Capital Allocation

  *Planning a 33% increase in annual common stock dividend (from $0.36 to
    $0.48 per share) commencing with the next quarterly payment; and

  *$200 million share repurchase program authorized

Business Wire

PRINCETON, N.J. -- February 27, 2013

NRG Energy, Inc. (NYSE: NRG) today reported 2012 full-year adjusted EBITDA of
$1,917 million with Wholesale contributing $1,175 million, Retail contributing
$656 million and Solar contributing $86 million. Full-year adjusted cash flow
from operations totaled $1,127 million while 2012 net income was $559 million,
or $2.35 per diluted common share compared to 2011 net income of $197 million,
or $0.78 per diluted common share. These results include seventeen days of
performance from the GenOn business which became part of NRG on December 15,
2012.

Fourth quarter adjusted EBITDA was $420 million and adjusted cash flow from
operations was $134 million. Wholesale contributed $245 million of fourth
quarter adjusted EBITDA, Retail contributed $152 million and Solar contributed
$23 million. Net income for the fourth quarter of 2012 totaled $516 million,
or $2.06 per diluted common share, compared to a 2011 net loss of $109 million
or ($0.48) per diluted common share. Included in the $516 million of net
income is $560 million of bargain purchase gain associated with the GenOn
merger.

“NRG withstood a weak commodity price environment in 2012 to achieve solid
financial results and robust free cash flow,” commented David Crane, NRG’s
President and Chief Executive Officer. “With the GenOn integration now well
underway and proceeding smoothly we are in a strong position to both reinvest
in the growth of our own businesses and step up our capital allocation program
for 2013.”

Segment Results


Table 1: Adjusted EBITDA
($ in            Three Months Ended               Twelve Months Ended
millions)
Segment          12/31/12      12/31/11      12/31/12      12/31/11
Retail                152           160                656           664
Wholesale
Gulf Coast
- Texas               190                200                880                842
- South               16                 19                 99                 125
Central
East                  34                 (6)                117                88
West                  18                 14                 87                 73
Other                 13                 13                 65                 56
Alternative           17                 (6)                52                 (15)
Energy^(1)
Corporate        (20)          (4)           (39)          (13)
Adjusted         420           390           1,917         1,820
EBITDA^(2)

(1) Alternative Energy includes the results of the Company’s Solar projects
(2) Detailed adjustments by region are shown in Appendix A

                                                   
Table 2: Net Income/(Loss)
($ in                   Three Months Ended                    Twelve Months Ended
millions)
Segment            12/31/12      12/31/11      12/31/12      12/31/11
Retail                  37            19                 541           369
Wholesale
Gulf Coast
- Texas                 108                123                (94)               316
- South                 2                  (60)               2                  (14)
Central
East                    (19)               (73)               (39)               (86)
West                    17                 3                  59                 54
Other                   8                  5                  33                 19
Alternative             (14)               (15)               (54)               (57)
Energy^(1)
Corporate          377           (111)         111           (404)
Net                516           (109)         559           197
Income/(Loss)

(1) Alternative Energy includes the results of the Company’s Solar projects

Retail: Full-year 2012 adjusted EBITDA totaled $656 million; $8 million lower
than in 2011. Gross margin was favorable by $124 million driven by the
acquisition of Energy Plus which added $112 million, with the remaining
difference primarily due to additional load resulting from increased customer
count and usage. Offsetting the higher margin realized in 2012 was an increase
in operating costs, which was primarily the result of the Energy Plus
acquisition and increased marketing and selling expense.

Fourth-quarter adjusted EBITDA was $152 million; $8 million lower than the
fourth quarter 2011. Gross margin was unfavorable by $10 million primarily
driven by the impact of lower margin on acquisitions and renewals in both
ERCOT and Northeast markets. Partially offsetting lower margins was a decrease
in bad debt from improved customer payment behavior compared to the fourth
quarter 2011.

Gulf Coast – Texas:  Full year adjusted EBITDA totaled $880 million; $38
million higher compared to 2011. Gross margin increased $126 million, driven
by a combination of higher realized energy margin and improved bi-lateral
capacity contracts with load serving entities. The year-over-year increase in
realized energy margin was largely attributable to the combination of the
unprecedented August 2011 hot weather—that resulted in power price spikes—and
lower coal transportation costs in 2012. Meanwhile, unplanned outages
contributed to a nearly 7.5 million MWh decline in generation combined with an
increase in operations and maintenance costs which partially offset the
improvement in gross margin.

Fourth-quarter adjusted EBITDA was $190 million; $10 million lower than the
fourth quarter 2011. The lower results were attributable to higher operating
costs as a result of increased planned outages in the fourth quarter of 2012
as compared to 2011 partially offset by a $24 million increase in gross margin
due primarily to higher realized energy margin, largely attributable to higher
realized average power prices and lower coal transportation costs.

Gulf Coast - South Central: Full-year adjusted EBITDA totaled $99 million; $26
million lower than 2011. Gross margin in 2012 decreased by $24 million due to
12% lower average realized prices as a result of lower natural gas prices. An
18% decline in coal generation at Big Cajun II was partially offset by a 36%
increase in generation at Cottonwood.

Fourth-quarter adjusted EBITDA was $16 million; $3 million lower than the
fourth quarter 2011. Gross margins declined $10 million driven by lower
realized prices and a decline in volumes related to mild weather offset by
lower operating expenses resulting from a maintenance outage performed on Big
Cajun unit 1 in the fall of 2011.

East: Full-year adjusted EBITDA totaled $117 million; $29 million higher
compared to 2011. For the year, gross margin was higher by $57 million as the
region benefited from increased revenues resulting from the Reliability
Support Services (RSS) Agreement in Western New York, additional energy sales
to the Company’s retail providers and the GenOn merger. Meanwhile, lower
realized capacity prices and higher delivered coal prices partially offset the
gains. The GenOn transaction led to higher operating expenses; however, this
was partially offset by favorable equity earnings with a full year of
contribution from the GenConn Middletown facility, which became operational in
June 2011.

Fourth-quarter adjusted EBITDA was $34 million; $40 million higher than the
fourth quarter 2011. The improvement was the result of a $68 million increase
in gross margin due to the addition of GenOn and contributions from the RSS
Agreement in Western New York. Offsetting the increase in gross margin were
higher operating expenses resulting from the GenOn acquisition.

West: Full-year adjusted EBITDA totaled $87 million; $14 million higher than
2011. Favorable gross margin of $24 million was due to an over 900% increase
in generation as our facilities were needed for system reliability as a result
of the extended outage at the San Onofre nuclear plant. Also contributing to
the higher gross margin was contingent rental income related to the Long Beach
power purchase agreement (PPA) and contributions from the GenOn acquisition.
Partially offsetting the gains in gross margin were higher operating expenses,
which resulted from the addition of the GenOn assets.

Fourth-quarter adjusted EBITDA was $18 million; $4 million higher than the
fourth quarter 2011. Gross margin improved $13 million due to a nearly 1,900%
increase in generation at our Encina facility. Offsetting the increase in
gross margin were higher operating expenses resulting from the GenOn
acquisition.

Alternative Energy: Full-year adjusted EBITDA totaled $52 million, up $67
million from 2011. Solar gross margin was $117 million, a $106 million
increase driven by the addition of the Company’s Agua Caliente solar facility,
which as of December 31, ^ 2012 had reached commercial operations on 253 MW,
and the addition of the Roadrunner facility, which began commercial operations
in late 2011. Offsetting the improved margin were NRG’s continued development
efforts in new businesses.

Fourth-quarter adjusted EBITDA was $17 million; $23 million higher than the
fourth quarter 2011. Solar gross margin was $30 million, a $26 million
increase driven by the addition of the Company’s Agua Caliente solar facility,
which had $19 million in gross margin and CVSR which had $2 million in gross
margin in the fourth quarter of 2012.

GenOn stand-alone results: Full-year adjusted EBITDA for GenOn totaled $543
million. This calculation is based on GenOn’s previous methodology. See
appendix for a detailed reconciliation.

Liquidity and Capital Resources

                                                      
Table 3: Corporate Liquidity
($ in millions)             12/31/12      9/30/12      12/31/11
Cash and Cash                    2,087              1,610             1,105
Equivalents
Funds deposited by               271                76                258
counterparties
Restricted cash             217           237          292
Total Cash and Funds             2,575              1,923             1,655
Deposited
Revolver Availability       1,058         1,133        673
Total Liquidity                  3,633              3,056             2,328
Less: Funds deposited
as collateral by hedge      (271)         (76)         (258)
counterparties
Total Current               3,362         2,980        2,070
Liquidity
Less: Reserve for 2017      -             (270)        -
bond redemption^(1)
Total Current               3,362         2,710        2,070
Liquidity, adjusted

^(1) On October 24^th, NRG redeemed the remaining $270 million outstanding of
the 2017 Senior Notes

Total current liquidity, as of December 31, 2012, was $3,362 million, an
increase of $1,292 million from December 31, 2011 driven largely by NRG’s free
cash flow, the GenOn acquisition and a $385 million increase in Revolver
availability primarily due to the sell-down of the Agua Caliente project. The
$75 million decrease in restricted cash is primarily due to reduced collateral
requirements for the Company’s solar projects as NRG continues to contribute
equity. Cash and cash equivalents increased by $982 million due to the
following items:

  *$1,127 million of adjusted cash flow from operations;
  *$983 million cash acquired in the GenOn transaction, net of $686 million
    used to retire the GenOn term loan at closing;
  *$174 million in gross proceeds from the sale of Schkopau, partially offset
    by $42 million of cash remaining on Schkopau’s balance sheet on date of
    sale;
  *$122 million in proceeds from the sell down of the Agua Caliente project;
  *Partially offset by $1,382 million of cash outflows consisting of the
    following items:

       *$733 million for solar and conventional growth investments (net of
         debt and third party funding of $2,337 million);
       *$220 million of cash paid for maintenance and environmental capital
         expenditures (net of financing of $47 million);
       *$172 million net paydown of Senior Notes and $79 million of scheduled
         debt amortization;
       *$50 million in payments of dividends to preferred and common
         shareholders;
       *$46 million in merger related payments; and
       *$82 million in other investing and financing activities

Growth Initiatives and Developments

NRG continued to advance its leadership position in sustainable energy
including:

Solar

  *Agua Caliente – As of December 31, 2012, 253 MW of generation capacity
    have achieved commercial operation making Agua Caliente the largest
    operating solar photovoltaic (PV) project in the United States. Overall,
    construction at Agua Caliente is several months ahead of schedule and
    currently is expected to reach completion in early 2014. Power generated
    by Agua Caliente is being sold under a 25-year PPA with Pacific Gas and
    Electric Co (PG&E).
  *CVSR – Construction of the California Valley Solar Ranch project is ahead
    of schedule with 127 MW having achieved operation by December 31, 2012,
    with the remaining 123 MW expected to come on line by the fourth quarter
    of 2013. Power from this project is being sold to PG&E under a 25-year
    PPA.
  *Ivanpah – Unit 1 (124 MW) is expected to reach commercial operations in
    August 2013. The remaining two units (each at 127 MW) currently are
    expected to be completed in the third and fourth quarter of 2013. Power
    from Units 1 and 3 will be sold to Pacific Gas & Electric via two 25-year
    PPAs, and power from Unit 2 will be sold to Southern California Edison
    under a 20-year PPA.
  *Other Solar – Avra Valley (25 MW under a 20-year PPA with Tucson Electric
    Power) reached commercial operation in December 2012. The Borrego project
    (26 MW under a 25-year PPA with San Diego Gas & Electric) and Alpine (66
    MW under a 20 year PPA with Pacific Gas & Electric) reached commercial
    operation in the first quarter of 2013. Our Distributed Generation scale
    installations continued with Gillette Stadium achieving commercial
    operation in December 2012 and Lincoln Financial Field achieving
    commercial operation in February 2013.

Conventional

  *Marsh Landing –The Company is continuing construction of the Marsh Landing
    project, a 720 MW natural gas-fueled peaking facility adjacent to the
    Company's Contra Costa generating facility near Antioch, California. The
    facility is being constructed pursuant to a 10 year PPA with PG&E. The
    Company expects to achieve commercial operation in the second quarter of
    2013.
  *El Segundo –The Company is continuing construction, at its El Segundo
    Power Generating Station, of a 550 MW fast-start, combined-cycle plant.
    The plant is being constructed pursuant to a 10 year, 550 MW PPA with
    Southern California Edison. The Company expects a commercial operation
    date in the third quarter of 2013.
  *Petra Nova –Petra Nova continues with the development of its peaking unit
    at NRG’s WA Parish Generating Station and on August 14, 2012, signed a $24
    million lump-sum, turnkey EPC contract. Petra Nova is targeting a second
    quarter 2013 commercial operation date and it is anticipated that the unit
    will eventually be used as a cogeneration facility dedicated to a Carbon
    Capture Utilization and Storage Project, funded in part by the U.S.
    Department of Energy, at the Parish facility. The peaking unit is being
    financed, largely with the proceeds of a $54 million tax-exempt bond
    financing that was completed on May 3, 2012, of which NRG has drawn $23
    million through December 31, 2012.

Outlook for 2013 and 2014

NRG is reaffirming the guidance announced by the Company on January 22, 2013
for both adjusted EBITDA and FCF before growth investments for 2013 and 2014.

                                                       
Table 4: 2013 and 2014 Adjusted EBITDA and Free Cash Flow before growth
investment Guidance (Current)
                                2013 Guidance          2014
                                                                  Guidance
(dollars in millions)            2/27/2013              2/27/2013
Adjusted EBITDA                       2,535 – 2,735               2,700 –
                                                                  2,900
Interest payments                     (920)                       (1,000)
Income tax                            (30)                        40
Collateral/working               (50)                   (200)
capital/other changes
Cash flow from                        1,525 – 1,725               1,550 –
operations                                                        1,750
Maintenance capital                   (420)-(440)                 (390)-(410)
expenditures, net
Environmental capital                 (175)-(195)                 (230)-(250)
expenditures, net
Preferred dividends              (9)                    (9)
Free cash flow –
before growth                    900 – 1,100            900 – 1,100
investments

Notes:

  *Current guidance, including all components thereof, is identical to the
    guidance provided on January 22, 2013.
  *Subtotals and totals are rounded

Change in Methodology for Adjusted EBITDA and Free Cash Flow before growth
investments

Beginning in 2013, NRG will modify the calculation of both Adjusted EBITDA and
FCF before growth investments primarily to provide greater clarity for
partially owned investments, including solar projects such as Agua Caliente
and Ivanpah:

  *Adjusted EBITDA (Revised)

       *Increase adjusted EBITDA to reflect pro rata portion of Adjusted
         EBITDA from NRG’s equity investments in unconsolidated subsidiaries
         (previously adjusted EBITDA included only GAAP equity earnings
         attributed to such investments);
       *Discontinue deduction of non-controlling interest (GAAP earnings) and
         disclose non-controlling pro rata EBITDA (and debt) for such
         investments separately;
       *Exclude plant deactivation costs; and
       *Exclude interest income (now included as a reduction to interest
         expense)

  *Free Cash Flow Before Growth (Revised)

       *Reduce FCF Before Growth Investments by distributions to
         non-controlling interests

The following tables reflect the change in our guidance ranges as we implement
our new methodology of calculating adjusted EBITDA (Revised) and FCF before
growth investments (Revised):

                                                         
Table 5: 2013 Adjusted EBITDA and Free Cash Flow before growth Guidance –
Revised vs. Current
($ in millions)                        Revised^(1)         Current
Adjusted EBITDA                           2,615– 2,815           2,535– 2,735
Free cash flow – before                900 – 1,100         900 – 1,100
growth investments


Table 6: 2014 Reconciliation of Adjusted EBITDA Guidance – Revised vs. Current
($ in millions)                       Revised^(1)       Current
Adjusted EBITDA                       2,760– 2,960      2,700– 2,900
Free cash flow – before growth        900 – 1,100       900 – 1,100
investments

(1) The pro-rata amount of Adjusted EBITDA associated with non-controlling
interests is $60 million and $105 million in 2013 and 2014, respectively. A
detailed reconciliation is shown in Appendix A

A detailed reconciliation of adjusted EBITDA and FCF before Growth Investments
from our current to revised methodology can be found in Appendix A.

2013 Capital Allocation Program

While NRG deployed a substantial amount of its excess capital in 2012 to
invest in new growth projects ($733 million), to pay down corporate debt ($172
million), and to pay common stock dividends ($41 million), the Company’s
substantial ongoing Free Cash Flow generation continues to contribute to a
significant cash surplus in excess of its core operating requirements.

Having substantially completed its $1 billion debt reduction target announced
in connection with the GenOn transaction, placing key credit ratios in line
with the Company’s long held prudent balance sheet management targets and with
de facto constraints on paying down significantly more of its debt at this
time, NRG wants to return more of its excess capital to shareholders.
Accordingly, the Company hereby announces its intentions to increase its
common stock dividend in 2013 by 33% to $0.48 per share annually, representing
approximately a 2% yield against our current market price per share. In
addition, NRG is authorized to repurchase $200 million of its common stock.
These actions do not foreclose the possibility of further or different capital
allocation actions later in 2013.

Earnings Conference Call

On February 27, 2013, NRG will host a conference call at 9:00 am eastern to
discuss these results. Investors, the news media and others may access the
live webcast of the conference call and accompanying presentation materials by
logging on to NRG’s website at http://www.nrgenergy.com and clicking on
“Investors.” The webcast will be archived on the site for those unable to
listen in real time.

About NRG

NRG is at the forefront of changing how people think about and use energy. We
deliver cleaner and smarter energy choices for our customers, backed by the
nation’s largest independent power generation portfolio of fossil fuel,
nuclear, solar and wind facilities. A Fortune 300 company, NRG is challenging
the U.S. energy industry by becoming the largest developer of solar power,
building the first privately funded electric vehicle charging infrastructure,
and providing customers with the most advanced smart energy solutions to
better manage their energy use. In addition to 47,000 megawatts of generation
capacity, enough to supply nearly 40 million homes, our retail electricity
providers – Reliant, Green Mountain Energy and Energy Plus – serve more than
two million customers. More information is available at www.nrgenergy.com.
Connect with NRG Energy on Facebook and follow us on Twitter @nrgenergy.

Safe Harbor Disclosure

This news release contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. Such forward-looking statements are subject to certain
risks, uncertainties and assumptions and include our Adjusted EBITDA, free
cash flow guidance, expected earnings, future growth, financial performance,
capital allocation, environmental capital expenditures, expected benefits from
the GenOn acquisition and development projects, and typically can be
identified by the use of words such as “will,” “expect,” “estimate,”
“anticipate,” “forecast,” “plan,” “believe” and similar terms. Although NRG
believes that its expectations are reasonable, it can give no assurance that
these expectations will prove to have been correct, and actual results may
vary materially. Factors that could cause actual results to differ materially
from those contemplated above include, among others, general economic
conditions, hazards customary in the power industry, weather conditions,
successful partnering relationships, government loan guarantees, competition
in wholesale and retail power markets, the volatility of energy and fuel
prices, failure of customers to perform under contracts, changes in the
wholesale power markets, changes in government regulation of markets and of
environmental emissions, our ability to utilize tax incentives, the condition
of capital markets generally, our ability to access capital markets,
unanticipated outages at our generation facilities, adverse results in current
and future litigation, our inability to implement value enhancing improvements
to plant operations and companywide processes, the ability to successfully
integrate the businesses of NRG and GenOn, the ability to realize anticipated
benefits of the transaction (including expected cost savings and other
synergies) or the risk that anticipated benefits may take longer to realize
than expected, our ability to maintain retail customers, and our ability to
achieve the expected benefits and timing of development projects. Furthermore,
any common stock dividend or share repurchases are subject to available
capital, market conditions, and compliance with associated laws and
regulations.

NRG undertakes no obligation to update or revise any forward-looking
statements, whether as a result of new information, future events or
otherwise. The Adjusted EBITDA guidance and free cash flows are estimates as
of today’s date, February 27, 2013 and are based on assumptions believed to be
reasonable as of this date. NRG expressly disclaims any current intention to
update such guidance. The foregoing review of factors that could cause NRG’s
actual results to differ materially from those contemplated in the
forward-looking statements included in this news release should be considered
in connection with information regarding risks and uncertainties that may
affect NRG’s future results included in NRG’s filings with the Securities and
Exchange Commission at www.sec.gov. In addition, NRG makes available free of
charge at www.nrgenergy.com (in the “Investors” section), copies of materials
it files with, or furnishes to, the SEC.

                      NRG ENERGY, INC. AND SUBSIDIARIES
               CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

                           (Unaudited)
                                                   Twelve months ended
                           Three months ended             December 31,
                           December 31,
                           2012        2011            2012      2011
(In millions, except
for per share
amounts)
Operating Revenues
Total operating            $2,063         $2,132          $8,422       $9,079
revenues
Operating Costs and
Expenses
Cost of operations         1,469          1,690           6,087        6,675
Depreciation and           247            231             950          896
amortization
Impairment charge on       —              —               —            160
emissions allowance
Selling, general and       211            189             892          668
administrative
Acquisition-related
transaction and            89             —               107          —
integration costs
Development costs          10             13              36           45
Total operating            2,026          2,123           8,072        8,444
costs and expenses
Operating Income           37             9               350          635
Other
Income/(Expense)
Equity in earnings
of unconsolidated          11             9               37           35
affiliates
Bargain purchase
gain related to            560            —               560          —
GenOn acquisition
Impairment charge on       —              —               (2)          (495)
investment
Other income, net          5              6               19           19
Loss on debt               (10)           —               (51)         (175)
extinguishment
Interest expense           (166)          (161)           (661)        (665)
Total other expense        400            (146)           (98)         (1,281)
Income/(Loss) Before       437            (137)           252          (646)
Income Taxes
Income tax benefit         (81)           (28)            (327)        (843)
Net Income/(Loss)          518            (109)           579          197
Less: Net income
attributable to            2              —               20           —
non-controlling
interest
Net Income /(Loss)
Attributable to NRG        516            (109)           559          197
Energy, Inc.
Dividends for              2              2               9            9
preferred shares
Income/(Loss)
Available for Common       $514           ($111)          $550         $188
Stockholders
Earnings/(Loss) Per
Share Attributable
to NRG Energy, Inc.
Common Stockholders
                                                                       
Weighted average
number of common           247            229             232          240
shares outstanding —
basic
Net Income/(Loss)
per weighted average       $2.08          ($0.48)         $2.37        $0.78
common share — basic
Weighted average
number of common           249            229             234          241
shares outstanding
—diluted
Net Income/(Loss)
per weighted average       $2.06          ($0.48)         $2.35        $0.78
common share
—diluted
Dividends Per Common       $0.18          $—              $0.18        $—
Share
                                                                       
                                                                       
                                                                       

                      NRG ENERGY, INC. AND SUBSIDIARIES
       CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME/(LOSS)

                                (Unaudited)
                                                    Twelve months ended
                                Three months ended        December 31,
                                December 31,
                                2012      2011          2012       2011
Net Income/(Loss)               $518        ($109)        $579         $197
Other Comprehensive
Income/(Loss) net of tax
Unrealized loss on
derivatives, net of
income tax benefit of           (31)        (84)          (163)        (309)
$18, $50, $94 and

$181
Foreign currency
translation adjustments,
net of income tax benefit       —           3             (1)          (2)
(expense) of $0,( $3) $1
and $1
Reclassification
adjustment for
translation gain realized       —           —             (11)         —
upon sale of Schkopau,
net of income tax benefit
of $0,$0,$6 and $0
Available – for-sale
securities, net of income       1           1             3            (1)
tax benefit of $2, ($1),
$1 and $0
Defined benefit plan, net
of income tax benefit of        (52)        (47)          (52)         (46)
$22, $27, $21 and $27
Other comprehensive loss        (82)        (127)         (224)        (358)
Comprehensive Income/(          436         (236)         355          (161)
Loss)
Less: Comprehensive
income attributable to          2           —             20           —
non-controlling interest
Comprehensive Income
/(Loss) Attributable to         434         (236)         335          (161)
NRG Energy, Inc.
Dividends for preferred         2           2             9            9
shares
Comprehensive Income
/(Loss) available for           $432        ($238)        $326         ($170)
common stockholders
                                                                       
                                                                       
                                                                       

                      NRG ENERGY, INC. AND SUBSIDIARIES
                    CONDENSED CONSOLIDATED BALANCE SHEETS

                                   December 31, 2012     December 31, 2011
(In millions, except shares)
ASSETS
Current Assets
Cash and cash equivalents          $    2,087                $    1,105
Funds deposited by counterparties  271                       258
Restricted cash                    217                       292
Accounts receivable — trade, less
allowance for doubtful accounts of 986                       834
$32 and $23
Inventory                          931                       308
Derivative instruments             2,644                     4,427
Cash collateral paid in support of 229                       311
energy risk management activities
Deferred income taxes              56                        -
Prepayments and other current      535                       214
assets
Total current assets               7,956                     7,749
Property, plant and equipment, net
of accumulated depreciation of     20,268                    13,621
$5,417 and $4,570
Other Assets
Equity investments in affiliates   676                       640
Note receivable — affiliate and
capital leases, less current       79                        342
portion
Goodwill                           1,956                     1,886
Intangible assets, net of
accumulated amortization of $1,706 1,200                     1,419
and $1,452
Nuclear decommissioning trust fund 473                       424
Derivative instruments             662                       483
Deferred income taxes              1,261                     -
Other non-current assets           597                       336
Total other assets                 6,904                     5,530
Total Assets                       $    35,128               $    26,900
LIABILITIES AND STOCKHOLDERS’
EQUITY
Current Liabilities
Current portion of long-term debt  $    147                  $    87
and capital leases
Accounts payable                   1,170                     808
Derivative instruments             1,981                     4,029
Deferred income taxes              -                         127
Cash collateral received in
support of energy risk management  271                       258
activities
Accrued interest                   191                       165
Other accrued expense              567                       281
Other current liabilities          350                       106
Total current liabilities          4,677                     5,861
Other Liabilities
Long-term debt and capital leases  15,733                    9,745
Nuclear decommissioning reserve    354                       335
Nuclear decommissioning trust      273                       254
liability
Postretirement and other benefit   803                       400
obligations
Deferred income taxes              55                        1,389
Derivative instruments             500                       459
Out-of-market commodity contracts  1,216                     183
Other non-current liabilities      735                       356
Total non-current liabilities      19,669                    13,121
Total Liabilities                  24,346                    18,982
3.625% convertible perpetual
preferred stock; $0.01 par value;
250,000 shares issued and          249                       249
outstanding (at liquidation value
of $250, net of issuance costs)
Commitments and Contingencies
Stockholders’ Equity
Common stock; $0.01 par value;
500,000,000 shares authorized;
399,112,616 and 304,183,720 shares 4                         3
issued and 322,606,898 and
227,519,521 shares outstanding at
December 31, 2012 and 2011
Additional paid-in capital         7,587                     5,346
Retained earnings                  4,494                     3,987
Less treasury stock, at cost —
76,505,718 and 76,664,199 shares   (1,920        )           (1,924        )
at December 31, 2012 and 2011
Accumulated other comprehensive    (150          )           74
(loss) income
Non-controlling interest           518                       183
Total Stockholders’ Equity         10,533                    7,669
Total Liabilities and              $    35,128               $    26,900
Stockholders’ Equity
                                                                           
                                                                           
                                                                           

                      NRG ENERGY, INC. AND SUBSIDIARIES
               CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

                                                   Year Ended December 31,
                                                   2012           2011
                                                   (In millions)
Cash Flows from Operating Activities
Net income                                         $ 579             $ 197
Adjustments to reconcile net loss to net cash
provided by operating activities:
Distributions and equity in earnings of              2               9
unconsolidated affiliates
Gain on bargain purchase                             (560)           —
Depreciation and amortization                        950             896
Provision for bad debts                              45              59
Amortization of nuclear fuel                         39              39
Amortization of financing costs and debt             31              32
discount/premiums
Loss on debt extinguishment                          9               58
Amortization of intangibles and out-of-market        146             167
commodity contracts
Amortization of unearned equity compensation         41              28
Loss on disposals and sale of assets                 11              14
Impairment charges and asset write downs             —               657
Changes in derivative instruments                    124             (138)
Changes in deferred income taxes and liability for   (353)          (859)
uncertain tax benefits
Changes in nuclear decommissioning trust liability   37              20
Cash (used)/provided by changes in other working
capital, net of acquisition and disposition
effects:
Accounts receivable – trade                          (131)          (119)
Inventory                                            (172)           145
Prepayments and other current assets                 (26)            59
Accounts payable                                     (132)          9)
Accrued expenses and other current liabilities       231             (111)
Other assets and liabilities                        278         4
Net Cash Provided by Operating Activities           1,149       1,166
Cash Flows from Investing Activities
Acquisitions of business, net of cash acquired       (81)            (377)
Cash acquired in GenOn acquisition                   983             —
Capital expenditures                                 (3,396)        (2,310)
Increase in restricted cash, net                     (66)           (35)
Decrease /(increase) in restricted cash to support   164             (215)
equity requirements for U.S. DOE funded projects
(Increase)/Decrease in notes receivable              (24)           12
Proceeds from renewable energy grants                62              —
Purchases of emission allowances, net of proceeds    (1)             (19)
Investments in nuclear decommissioning trust fund    (436)           (406)
securities
Proceeds from sales of nuclear decommissioning       399            385
trust fund securities
Proceeds from sale of assets, net                    137             7
Investments in unconsolidated affiliates             (25)            (66)
Other                                               22          (23)
Net Cash Used by Investing Activities               (2,262)     (3,047)
Cash Flows from Financing Activities
Payment of dividends to preferred and common         (50)    )       (9)
stockholders
(Payments for)/net receipts from settlement of
acquired derivatives that include financing          (68)            (83)
elements
Payment for treasury stock                           —              (430)
Sale proceeds and other contributions from           347             29
non-controlling interests in subsidiaries
Proceeds from issuance of common stock               —               2
Proceeds from issuance of long-term debt             3,165           6,224
Payments for term loan for funded letter of credit   —               (1,300)
Decrease in restricted cash supporting funded        —               1,300
letter of credit
Payment of debt issuance and hedging costs           (35)           (207)
Payments for short and long-term debt               (1,260)     (5,493)
Net Cash Provided by Financing Activities           2,099       33
Effect of exchange rate changes on cash and cash    (4)         2
equivalents
Net Increase/( Decrease) in Cash and Cash            982            (1,846)
Equivalents
Cash and Cash Equivalents at Beginning of Period    1,105       2,951
Cash and Cash Equivalents at End of Period         $ 2,087       $  1,105
                                                                         
                                                                         
                                                                         

Appendix Table A-1: Fourth Quarter 2012 Regional Adjusted EBITDA
Reconciliation
The following table summarizes the calculation of Adjusted EBITDA and provides
a reconciliation to net income/ (loss)

                                                                                                   
(dollars in        Retail    Texas    South      East    West    Other           Alt.      Corp.    Total
millions)                                      Central                             Conventional       Energy
Net                   37           108         2             (19)       17         8                  (12)         377         518
Income/(Loss)
Plus:
Net Income
Attributable to       -            -           -             -          -          -                  (2)          -           (2)
Non-Controlling
Interest
Income Tax            -            -           -             -          -          (1)                -            (80)        (81)
Interest              1            -           4             7          1          1                  12           140         166
Expense
Depreciation,
Amortization          36           116         24            43         5          5                  18           4           251
and ARO Expense
Loss on Debt          -            -           -             -          -          -                  -            10          10
Extinguishment
Amortization of    32        9        (5)        (1)     -       -               -         -        35
Contracts
EBITDA                106          233         25            30         23         13                 16           451         897
Merger &
Transaction           -            -           -             -          -          -                  -            89          89
Costs
Bargain               -            -           -             -          -          -                  -            (560)       (560)
Purchase Gain
Asset and
Investment            -            -           9             -          -          -                  -            -           9
Write-offs
MtM                   46           (43)        (18)          4          (5)        -                  1            -           (15)
losses/(gains)
                                                                                           
Adjusted EBITDA    152       190      16         34      18      13              17        (20)     420
                                                                                                                               
                                                                                                                               

Appendix Table A-2: Fourth Quarter 2011 Regional Adjusted EBITDA
Reconciliation
The following table summarizes the calculation of Adjusted EBITDA and provides
a reconciliation to net income/ (loss)

                                                                                                  
(dollars in       Retail    Texas    South      East    West    Other           Alt.      Corp.    Total
millions)                                     Central                             Conventional       Energy
Net               19        123      (60)       (73)    3       5               (15)      (111)    (109)
Income/(Loss)
Plus:
Income Tax           -            -           -             -          -          1                  -            (29)        (28)
Interest             1            -           9             9          1          3                  4            134         161
Expense
Depreciation,
Amortization         45           117         24            30         4          3                  9            2           234
and ARO
Expense
Amortization      51        13       (4)                      1                        -        61
of Contracts
EBITDA               116          253         (31)          (34)       8          13                 (2)          (4)         319
Asset and
Investment           -            2           -             12         -          -                  -            -           14
Write-offs
MtM                  44           (55)        50            16         6          -                  (4)          -           57
losses/(gains)
                                                                                          
Adjusted          160       200      19         (6)     14      13              (6)       (4)      390
EBITDA
                                                                                                                              
                                                                                                                              

Appendix Table A-3: YTD 2012 Regional Adjusted EBITDA Reconciliation
The following table summarizes the calculation of Adjusted EBITDA and provides
a reconciliation to net income/(loss)

                                                                                                   
(dollars in        Retail    Texas    South      East    West    Other           Alt.      Corp.    Total
millions)                                      Central                             Conventional       Energy
Net                541       (94)     2          (39)    59      33              (34)      111      579
Income/(Loss)
Plus:
Net Income
Attributable to       -            -           -             -          -          -                  (20)         -           (20)
Non-Controlling
Interest
Income Tax            -            -           -             -          -          3                  -            (330)       (327)
Interest              4            -           18            20         2          11                 46           560         661
Expense
Depreciation,
Amortization          162          461         93            140        16         17                 59           12          960
and ARO Expense
Loss on Debt          -            -           -             -          -          -                               51          51
Extinguishment
Amortization of    115       41       (20)       (1)     -       1               -         -        136
Contracts
EBITDA                822          408         93            120        77         65                 51           404         2,040
Merger &
Transaction           -            -           -             -          -          -                  -            112         112
Costs
Bargain               -            -           -             -          -          -                  -            (560)       (560)
Purchase Gain
Legal                 -            -           14            -          20         -                  -            -           34
Settlement
Asset and
Investment            -            8           9             -          -          -                  -            5           22
Write-offs
MtM                   (166)        464         (17)          (3)        (10)       -                  1            -           269
losses/(gains)
                                                                                           
Adjusted EBITDA    656       880      99         117     87      65              52        (39)     1,917
                                                                                                                               
                                                                                                                               

Appendix Table A-4: YTD 2011 Regional Adjusted EBITDA Reconciliation
The following table summarizes the calculation of Adjusted EBITDA and provides
a reconciliation to net income/ (loss)

                                                                                                  
(dollars in       Retail    Texas    South      East    West    Other           Alt.      Corp.    Total
millions)                                     Central                             Conventional       Energy
Net               369       316      (14)       (86)    54      19              (57)      (404)    197
Income/(Loss)
Plus:
Income Tax           (3)          -           -             -          -          7                  -            (847)       (843)
Interest             4            (16)        41            47         2          15                 16           556         665
Expense
Depreciation,
Amortization         159          466         89            120        13         14                 31           12          904
and ARO
Expense
Loss on Debt         -            -           -             -          -          -                  -            175         175
Extinguishment
Amortization      169       56       (20)       -       -       1               -         -        206
of Contracts
EBITDA               698          822         96            81         69         56                 (10)         (508)       1,304
Asset and
Investment           -            170         -             12         -          -                  -            495         677
Write-offs
MtM                  (34)         (150)       29            (5)        4          -                  (5)          -           (161)
losses/(gains)
                                                                                          
Adjusted          664       842      125        88      73      56              (15)      (13)     1,820
EBITDA
                                                                                                                              
                                                                                                                              

Appendix Table A-5: 2012, 2013 and 2014 Adjusted EBITDA and FCF before Growth
Investments (Current) to Adjusted EBITDA and FCF before Growth Investments
(Revised)
The following table summarizes the calculation of Adjusted EBITDA (Current) to
Adjusted EBITDA (Revised) and FCF before Growth Investments (Current) to FCF
before Growth Investments (Revised)

                                                   
(dollars in              2012              2013                    2014
millions)
Adjusted EBITDA          1,917             2,535-2,735             2,700—2,900
(Current)
+ GAAP Net income
attributable to
non-controlling          19                10                      15
interests e.g.
Agua Caliente,
Ivanpah
+ Adjustment to
reflect NRG Share
of Adjusted EBITDA
in unconsolidated        55                50                      50
affiliates, e.g.
GenConn, Saguaro,
Gladstone
+ Deactivation           3                 30                      5
costs
— Interest income     (9)         (10)              (10)
Adjusted EBITDA       1,985       2,615-2,815       2,760-2,960
(Revised)
Free Cash Flow
Before Growth            898               900-1,100               900-1,100
Investments
(Current)
— Distributions to
non-controlling
shareholders
                      —           —                 —
e.g. Agua
Caliente1, Ivanpah
1
Free Cash Flow
Before Growth         898         900-1,100         900-1,100
Investments
(Revised)
^1 Distributions to minority shareholders for Agua Caliente and Ivanpah will
only begin in 2015 per terms of underlying credit agreements



Appendix Table A-6: 2012, 2013 and 2014 Pro rata Adjusted EBITDA and Pro-rata
Debt apportioned to Non-controlling interests
The following table summarizes the pro-rata Adjusted EBITDA and Debt
associated with the Non-controlling interests, as well as the addition of
NRG’s pro-rata debt in unconsolidated affiliates

                                                     
(dollars in                2012              2013                  2014
millions)
Adjusted EBITDA            1,997             2,615—2,815           2,760—2,960
(Revised)
—Pro-rata Adjusted
EBITDA associated
with non-controlling
interests               (19)         (60)             (105)

e.g. Agua Caliente,
Ivanpah
NRG Adjusted EBITDA        1,978             2,555-2,755           2,655-2,855
(Revised)
                                                                   
Consolidated Debt          15,485            15,860                15,865
Less Short-term debt
to finance cash         (470)        (290)            —
grant
Consolidated Debt
net of short-term          15,015            15,570                15,865
debt to finance cash
grant
—Pro-rata Debt
associated with
non-controlling
interests                  (1,033)           (1,045)               (1,040)

e.g. Agua Caliente,
Ivanpah
+ Pro-rata Debt
associated with         233          225              210
unconsolidated
affiliates
NRG associated Debt        14,215            14,750                15,035
                                                                   
                                                                   

Appendix Table A-7: 2012 Full-Year Adjusted Cash Flow from Operations
Reconciliation
The following table summarizes the calculation of adjusted cash flow operating
activities providing a reconciliation to net cash provided by operating
activities

                                                         
                                     Twelve months           Twelve months
(dollars in millions)                ended                   ended
                                     December 31, 2012
                                                             December 31, 2011
Net Cash Provided by Operating       1,149                   1,166
Activities
Less: Reclassifying of net payments
for settlement of acquired           (68)                    (83)
derivatives that include financing
elements
Add: Genon Merger and integration    46                   —
costs
Adjusted Cash Flow from Operating    1,127                1,083
Activities
                                                             
                                                             

Appendix Table A-8: YTD 2012 GenOn Energy, Inc. Adjusted EBITDA Reconciliation
The following table summarizes the calculation of Adjusted EBITDA and provides
a reconciliation to net loss

(dollars in millions)                              GenOn Energy, Inc.
Net Loss                                           (486)
Plus:                                             
Income Tax                                            15
Interest Expense, net                                 338
Depreciation, Amortization and ARO Expense         349
EBITDA                                                216
Asset and Investment Write-offs and impairments       68
MtM losses                                            180
Merger related costs                                  71
Plant deactivation costs                              54
Legal settlements                                     (52)
Other, net                                            6
                                                  
Adjusted EBITDA                                    543
                                                      
                                                      

EBITDA, Adjusted EBITDA and Adjusted EBITDAR are non-GAAP financial measures.
These measurements are not recognized in accordance with GAAP and should not
be viewed as an alternative to GAAP measures of performance. The presentation
of Adjusted EBITDA should not be construed as an inference that NRG’s future
results will be unaffected by unusual or non-recurring items.

EBITDA represents net income before interest (including loss on debt
extinguishment), taxes, depreciation and amortization. EBITDA is presented
because NRG considers it an important supplemental measure of its performance
and believes debt-holders frequently use EBITDA to analyze operating
performance and debt service capacity. EBITDA has limitations as an analytical
tool, and you should not consider it in isolation, or as a substitute for
analysis of our operating results as reported under GAAP. Some of these
limitations are:

  *EBITDA does not reflect cash expenditures, or future requirements for
    capital expenditures, or contractual commitments;
  *EBITDA does not reflect changes in, or cash requirements for, working
    capital needs;
  *EBITDA does not reflect the significant interest expense, or the cash
    requirements necessary to service interest or principal payments, on debt
    or cash income tax payments;
  *Although depreciation and amortization are non-cash charges, the assets
    being depreciated and amortized will often have to be replaced in the
    future, and EBITDA does not reflect any cash requirements for such
    replacements; and
  *Other companies in this industry may calculate EBITDA differently than NRG
    does, limiting its usefulness as a comparative measure.

Because of these limitations, EBITDA should not be considered as a measure of
discretionary cash available to use to invest in the growth of NRG’s business.
NRG compensates for these limitations by relying primarily on our GAAP results
and using EBITDA and Adjusted EBITDA only supplementally. See the statements
of cash flow included in the financial statements that are a part of this news
release.

Adjusted EBITDA is presented as a further supplemental measure of operating
performance. Adjusted EBITDA represents EBITDA adjusted for mark-to-market
gains or losses, asset write offs and impairments; and factors which we do not
consider indicative of future operating performance. The reader is encouraged
to evaluate each adjustment and the reasons NRG considers it appropriate for
supplemental analysis. As an analytical tool, Adjusted EBITDA is subject to
all of the limitations applicable to EBITDA. In addition, in evaluating
Adjusted EBITDA, the reader should be aware that in the future NRG may incur
expenses similar to the adjustments in this news release.

Adjusted cash flow from operating activities is a non-GAAP measure NRG
provides to show cash from operations with the reclassification of net
payments of derivative contracts acquired in business combinations from
financing to operating cash flow, as well as the add back of merger and
integration related costs. The Company provides the reader with this
alternative view of operating cash flow because the cash settlement of these
derivative contracts materially impact operating revenues and cost of sales,
while GAAP requires NRG to treat them as if there was a financing activity
associated with the contracts as of the acquisition dates. The Company adds
back merger and integration related costs as they are one time and unique in
nature do not reflect ongoing cash from operations and they are fully
disclosed to investors.

Free cash flow (before growth investments) is adjusted cash flow from
operations less maintenance and environmental capital expenditures, net of
financing and preferred stock dividends and is used by NRG predominantly as a
forecasting tool to estimate cash available for debt reduction and other
capital allocation alternatives. The reader is encouraged to evaluate each of
these adjustments and the reasons NRG considers them appropriate for
supplemental analysis. Because we have mandatory debt service requirements
(and other non-discretionary expenditures) investors should not rely on free
cash flow as a measure of cash available for discretionary expenditures.

^1 Results include GenOn activity from December 15 through December 31 of 2012
^2 Projected for the full year of operations in 2014

Contact:

NRG Energy, Inc.
Media:
Lori Neuman, 609-524-4525
or
Karen Cleeve, 609-524-4608
or
David Knox, 713-537-2130
or
Investors:
Chad Plotkin, 609-524-4526
or
Stefan Kimball, 609-524-4527