NRG Energy, Inc. Reports First Quarter Results; Reaffirms Adjusted EBITDA Guidance and Increases Free Cash Flow (FCF) Before

  NRG Energy, Inc. Reports First Quarter Results; Reaffirms Adjusted EBITDA
  Guidance and Increases Free Cash Flow (FCF) Before Growth Investments
  Guidance

First Quarter Highlights

  *$373 million of Adjusted EBITDA, including $103 million delivered by NRG’s
    retail businesses;
  *Achieved commercial operation at our 720 MW Marsh Landing project on May
    1, 2013, which when combined with the anticipated COD of El Segundo Energy
    Center in the third quarter, is expected to result in over $100 million in
    Adjusted EBITDA over the remainder of 2013;
  *Reduced projected environmental capital expenditures by approximately $100
    million over the next three years primarily as a result of compliance with
    MATS and the recent New Source Review settlement at Big Cajun II;
  *Agreed to acquire the 400 MW, 160 MWt Gregory cogeneration plant in Texas
    for $244 million;
  *Reached commercial operation and fully funded long-term debt financing in
    the first quarter for the Alpine and Borrego solar photovoltaic (PV)
    projects (92 MW);
  *Grew customer count in retail by 21,000 during the quarter

2013 and 2014 Guidance

  *Transaction synergies remain on track:

       *Total cash flow benefits of $310 million by 2014;
       *On track to deliver $150 million and $210 million of Adjusted EBITDA
         from synergies in 2013 and 2014, respectively, including $20 million
         from realized synergies in the first quarter of 2013

  *Reaffirming Adjusted EBITDA guidance:

       *$2,615-$2,815 million for 2013 (Reaffirmed);
       *$2,760-$2,960 million for 2014 (Reaffirmed)

  *Increasing FCF before growth investments guidance for 2013 by $100
    million:

       *$1,000-$1,200 million for 2013 (Increased);
       *$900-$1,100 million for 2014 (Reaffirmed)

Business Wire

PRINCETON, N.J. -- May 7, 2013

NRG Energy, Inc. (NYSE: NRG) today reported first quarter 2013 Adjusted EBITDA
of $373 million with Wholesale contributing $234 million, Retail contributing
$103 million and Solar projects contributing $36 million. First quarter 2013
adjusted cash flow from operations totaled $21 million while net loss was
($328) million, or ($1.02) per diluted common share compared to first quarter
2012 net loss of ($207) million, or ($0.92) per diluted common share.

“As we satisfy our financial targets for the quarter, we remain intensely
focused across our company on fulfilling our strategic objectives for 2013,
particularly in the area of post-GenOn asset synergies and solar
monetization,” said David Crane, NRG President and Chief Executive Officer.
“We look forward to sharing more details with you of our plans in these
important areas by the end of the second quarter.”

Segment Results

Table 1: Adjusted EBITDA                               
($ in millions)                Three Months Ended
Segment                     3/31/13    3/31/12^(3)
Retail                         103        112
Wholesale
Gulf Coast
  *Texas                      72            139
  *South Central              (8)           26
East                           166           9
West                           4             15
Other                          16            21
Alternative Energy^(1)         24            4
Corporate                   (4)        (10)
Adjusted EBITDA^(2)         373        316

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

^(2) Detailed adjustments by region are shown in Appendix A

^(3) Revised to reflect new Adjusted EBITDA methodology

                                                     
Table 2: Net Income/(Loss)
($ in millions)                  Three Months Ended
Segment                       3/31/13    3/31/12
Retail                           369        7
Wholesale
Gulf Coast
  *Texas                        (426)         (74)
  *South Central                (7)           (30)
East                             (155)         (44)
West                             (7)           (14)
Other                            5             8
Alternative Energy^(1)           (24)          (14)
Corporate                     (83)       (46)
Net Loss                      (328)      (207)

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

Retail: First quarter Adjusted EBITDA was $103 million; $9 million lower than
first quarter 2012. Gross Margin was lower by $4 million primarily due to
increased supply costs not fully recovered as a result of competitive renewal
and acquisition pricing, as well as weather impacts, partially offset by
additional margin attributable to higher customer count. Operating expenses
increased $5 million, primarily reflecting an increase in selling and
marketing expenses in line with our growth initiatives, partially offset by a
decrease in general and administrative expenses.

Gulf Coast – Texas: First quarter Adjusted EBITDA was $72 million; $67 million
lower than the first quarter 2012. Gross margin was lower by $67 million due
to lower realized energy margins driven by a 19% decline in baseload hedge
prices. Losses from commercial optimization activities were more than offset
by higher volumes at the coal plants due to fewer planned outage hours and the
elimination of ERCOT nodal fees. Operating costs meanwhile were favorable
driven primarily by a decrease in major maintenance at Limestone, which
incurred costs in 2012 for boiler and generator stator repairs, offset by an
increase in general and administrative expenses.

Gulf Coast - South Central: First quarter Adjusted EBITDA was ($8) million,
$34 million lower than first quarter of 2012. Gross margin declined $25
million as average realized revenue rate increases of 3% which were offset by
(i) a combination of higher natural gas prices as compared to the
unprecedented lows in the first quarter of 2012, (ii) commercial optimization
activities and (iii) one-time transportation costs resulting from route
shipment changes due to the low water conditions on the Mississippi River,
which have since abated. Meanwhile, higher operating expenses were the result
of additional outage work at Cottonwood including a major outage on Cottonwood
Unit 3.

East: First quarter Adjusted EBITDA was $166 million; $157 million higher than
first quarter 2012. The improvement was the result of a $371 million increase
in realized gross margin due to the addition of the GenOn assets,
contributions from the Dunkirk reliability support services agreement in
western New York and an improvement in capacity prices in both New York and
PJM. Offsetting the increase in gross margin was $185 million in higher
operating costs and $29 million higher general and administrative expenses
resulting primarily from the GenOn acquisition.

West: First quarter Adjusted EBITDA was $4 million; $11 million lower than the
first quarter 2012. Outages at non-affiliated local generation in the first
quarter of 2012 resulted in a higher dispatch at our Encina plant compared to
the first quarter of 2013. Despite the ongoing San Onofre outage, market
prices were less impacted due to a combination of improved resource planning
and the activation of the Sunrise transmission line. Overall generation
increased 30% quarter over quarter as the addition of the GenOn portfolio
offset a 25% reduction in generation from legacy NRG assets. Finally, due to
the increased generation in 2012, first quarter 2013 operating expenses
increased as a result of planned maintenance work and the addition of the
GenOn assets.

Alternative Energy: First quarter Adjusted EBITDA was $24 million; $20 million
higher than the first quarter 2012. Solar gross margin was $42 million, a $31
million increase from the prior year driven by the addition of new phases to
the Company’s Agua Caliente solar facility, which contributed $20 million in
gross margin in the first quarter of 2013. Also, the addition of the
California Valley Solar Ranch (CVSR), Alpine, Avra Valley and Borrego
facilities contributed $15 million in gross margin in the first quarter of
2013. Partially offsetting the improved margin were NRG’s continued
development efforts in its new businesses.

Liquidity and Capital Resources

Table 3: Corporate Liquidity                                               
($ in millions)                                 3/31/13    12/31/12
Cash and Cash Equivalents                       1,707      2,087
Funds deposited by counterparties                  105           271
Restricted cash                                 221        217
Total Cash and Funds Deposited                     2,033         2,575
Revolver Availability                           1,157      1,058
Total Liquidity                                    3,190         3,633
Less: Funds deposited as collateral by hedge    (105)      (271)
counterparties
Total Current Liquidity                         3,085      3,362

Total current liquidity, as of March 31, 2013, was $3,085 million, a decrease
of $277 million from December 31, 2012. Increases of $4 million in restricted
cash and $99 million in revolver availability were more than offset by a $380
million decrease in cash and cash equivalents consisting of the following
items:

  *$430 million of cash outflows consisting of the following items:

       *$200 million to repurchase NRG unsecured notes and $18 million of
         scheduled debt amortization;
       *$104 million of cash paid for maintenance and environmental capital
         expenditures;
       *$52 million in merger related payments;
       *$31 million in payments of dividends to common and preferred
         shareholders;
       *$20 million of share repurchases (an additional $5 million was paid
         during April); and
       *$5 million in other investing and financing activities

  *Partially offset by $50 million of cash inflows consisting of the
    following items:

       *$29 million of net cash inflows from our solar and conventional
         growth investments as debt and cash grant proceeds exceeded NRG
         equity contributions; and
       *$21 million of adjusted cash flow from operations

Growth Initiatives and Developments

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

Solar

  *Agua Caliente – As of March 31, 2013, 253 MW of generation capacity had
    achieved commercial operation making Agua Caliente the largest operating
    solar PV project in the United States. Overall, construction at Agua
    Caliente is several months ahead of schedule and is currently expected to
    reach full completion in early 2014 (290 MW). Power generated by Agua
    Caliente is being sold under a 25-year power purchase agreement (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 March 31, 2013, 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 25-year PPAs.
  *Ivanpah – Unit 1 (124 MW) is expected to reach commercial operation in
    September 2013. The remaining two units (each at 127 MW) are currently
    expected to be completed in the fourth quarter of 2013. Power from Units 1
    and 3 will be sold to PG&E via two 25-year PPAs, and power from Unit 2
    will be sold to Southern California Edison (SCE) under a 20-year PPA.
  *Other Solar

       *Alpine, a 66 MW project under a 20-year PPA with PG&E, reached
         commercial operation in the first quarter of 2013 and subsequently
         received funding from non-recourse project financings, net of fees,
         of $222 million;
       *Borrego, a 26 MW project under a 25-year PPA with San Diego Gas and
         Electric, reached commercial operation in the first quarter of 2013
         and subsequently received funding from non-recourse project
         financings, net of fees, of $77 million;
       *In March 2013, the Company acquired High Desert, an operating 20 MW
         utility-scale photovoltaic solar facility located in Lancaster,
         California. The project was acquired for $24 million of equity as
         well as the assumption of non-recourse project financing. The solar
         facility provides electricity to SCE under a 20-year PPA.

Conventional

  *Marsh Landing – On May 1, 2013, the Company declared commercial operation
    of its Marsh Landing project, a 720 MW natural gas-fired peaking facility
    adjacent to the Company's Contra Costa generating facility near Antioch,
    California. The facility is contracted with PG&E under a 10-year PPA.
  *El Segundo –The Company is continuing construction at its El Segundo Power
    Generating Station, a 550 MW fast start, combined-cycle plant. The plant
    has a 10 year PPA with SCE. The Company expects to achieve commercial
    operation in the third quarter of 2013.
  *WA Parish Peaking Unit – The Company is nearing completion of a 75 MW
    peaking unit at Parish, and anticipates achieving commercial operation
    during the second quarter of 2013.
  *Gregory – The Company entered into an agreement to acquire the Gregory
    cogeneration plant in Corpus Christi, Texas, for $244 million (subject to
    working capital adjustments), which will expand NRG’s growing cogeneration
    fleet as it provides NRG with additional cost-effective baseload power in
    ERCOT.

Outlook for 2013 and 2014

NRG is reaffirming the Adjusted EBITDA guidance announced on February 27,
2013; increasing FCF before growth investments guidance for 2013 due to the
acceleration of tax refunds and reduced environmental capital expenditures;
and reaffirming FCF before growth investments guidance for 2014.

Table 4: 2013 and 2014 Adjusted EBITDA and FCF before growth investment Guidance            
                     5/7/2013                         2/27/2013
(dollars in           2013           2014           2013           2014
millions)
Adjusted EBITDA       2,615 –        2,760 –        2,615 –        2,760 –
                         2,815             2,960             2,815             2,960
Interest payments        (935)             (990)             (910)             (990)
Income tax               50                (40)              (30)              40
Collateral/working
capital/other         (150)          (230)          (150)          (260)
changes
Adjusted Cash flow       1,580 –           1,500 –           1,525 –           1,550 –
from operations          1,780             1,700             1,725             1,750
Maintenance
capital                  (420)-(440)       (390)-(410)       (420)-(440)       (390)-(410)
expenditures, net
Environmental
capital                  (155)-(175)       (205)-(225)       (175)-(195)       (230)-(250)
expenditures, net
Preferred             (9)            (9)            (9)            (9)
dividends
Free cash flow –         1,000 –
before growth         1,200          900 – 1,100    900 – 1,100    900 – 1,100
investments

Notes - subtotals and totals are rounded

2013 Capital Allocation Program

During the first quarter of 2013, the Company substantially completed the
previously announced $1 billion deleveraging plan by repurchasing $200 million
of NRG unsecured notes.

On April 19, 2013, the company declared a 33% increase in quarterly dividend
from $0.09 to $0.12 per share, payable May 15, 2013, to shareholders of record
as of May 1, 2013.

During the first quarter of 2013, the Company purchased 972,292 shares of NRG
common stock for $25 million, at an average cost of $25.88 per share, leaving
$175 million remaining in the 2013 common stock repurchase program announced
on our last quarterly earnings call.

The Company's common stock dividend and share repurchases are subject to
available capital, market conditions, and compliance with associated laws and
regulations.

Earnings Conference Call

On May 7, 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 Energyand Energy Plus – serve more than
two million customers. More information is available atwww.nrgenergy.com.
Connect withNRG EnergyonFacebookand 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 “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 due to 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, May 7, 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 furnish to, the SEC.

                                                                       
NRG ENERGY, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)
                                                                             
                                            Three months ended March 31,
                                            2013            2012
(In millions, except for per share
amounts)
Operating Revenues
Total operating revenues                    $ 2,081            $ 1,862
Operating Costs and Expenses
Cost of operations                          1,765              1,583
Depreciation and amortization               298                230
Selling, general and administrative         229                206
Acquisition-related transaction and         32                 —
integration costs
Development activity expenses               16                 13
Total operating costs and expenses          2,340              2,032
Operating Loss                              (259)              (170)
Other Income/(Expense)
Equity in earnings of unconsolidated        3                  8
affiliates
Other income, net                           4                  1
Loss on debt extinguishment                 (28)               —
Interest expense                            (196)              (165)
Total other expense                         (217)              (156)
Loss Before Income Taxes                    (476)              (326)
Income tax benefit                          (149)              (120)
Net Loss                                    (327)              (206)
Less: Net income attributable to            1                  1
non-controlling interest
Net Loss Attributable to NRG Energy,        (328)              (207)
Inc.
Dividends for preferred shares              2                  2
Loss Available for Common                   $ (330)            $ (209)
Stockholders
Loss Per Share Attributable to NRG
Energy, Inc. Common Stockholders
Weighted average number of common
shares outstanding — basic and              323                228
diluted
Net Loss per weighted average common        $ (1.02)           $ (0.92)
share — basic and diluted
Dividends Per Common Share                  $ 0.09             $ —
                                                                             

                                                                       
NRG ENERGY, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE LOSS
                                                                             
                                            Three months ended March 31,
                                            2013             2012
Net Loss                                    $ (327)             $ (206)
Other Comprehensive income/(loss),
net of tax
Unrealized gain/(loss) on
derivatives, net of income tax              7                   (9)
benefit of $9 and $5
Foreign currency translation
adjustments, net of income tax              —                   6
benefit of $0 and $3
Available –for-sale securities, net         2                   —
of income tax benefit of $1 and $0
Defined benefit plans, net of tax           5                   —
benefit of $5 and $0
Other comprehensive income/(loss)           14                  (3)
Comprehensive Loss                          (313)               (209)
Less: Comprehensive income
attributable to non-controlling             1                   1
interest
Comprehensive Loss Attributable to          (314)               (210)
NRG Energy, Inc.
Dividends for preferred shares              2                   2
Comprehensive Loss available for            $ (316)             $ (212)
common stockholders
                                                                             

                                                           
NRG ENERGY, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)
                                                             
                                            March 31, 2013   December 31, 2012
(In millions, except shares)
ASSETS
Current Assets
Cash and cash equivalents                   $  $ 1,707       $   $ 2,087
Funds deposited by counterparties           105              271
Restricted cash                             221              217
Accounts receivable — trade, less allowance 982              1,061
for doubtful accounts of $30 and $32
Inventory                                   904              931
Derivative instruments                      2,805            2,644
Cash collateral paid in support of energy   455              229
risk management activities
Deferred income taxes                       128              56
Prepayments and other current assets        724              460
Total current assets                        8,031            7,956
Property, plant and equipment, net of
accumulated depreciation of $5,680 and      20,404           20,268
$5,417
Other Assets
Equity investments in affiliates            677              676
Note receivable, less current portion       86               79
Goodwill                                    1,954            1,956
Intangible assets, net of accumulated       1,176            1,200
amortization of $1,767 and $1,706
Nuclear decommissioning trust fund          501              473
Derivative instruments                      562              662
Deferred income taxes                       1,435            1,267
Other non-current assets                    545              597
Total other assets                          6,936            6,910
Total Assets                                $  $ 35,371      $   $ 35,134
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities
Current portion of long-term debt and       $  $ 556         $   $ 147
capital leases
Accounts payable                            1,054            1,170
Derivative instruments                      2,493            1,981
Cash collateral received in support of      105              271
energy risk management activities
Accrued expenses and other current          954             1,108
liabilities
Total current liabilities                   5,162           4,677
Other Liabilities
Long-term debt and capital leases           15,914           15,733
Nuclear decommissioning reserve             359              354
Nuclear decommissioning trust liability     293              273
Deferred income taxes                       53               55
Derivative instruments                      477              500
Out-of-market commodity contracts           1,194            1,216
Other non-current liabilities               1,474            1,555
Total non-current liabilities               19,764           19,686
Total Liabilities                           24,926           24,363
3.625% convertible perpetual preferred
stock(at liquidation value, net of issuance 249              249
costs)
Commitments and Contingencies
Stockholders’ Equity
Common Stock                                4                4
Additional paid-in capital                  7,602            7,587
Retained earnings                           4,124            4,483
Less treasury stock, at cost — 77,416,791   (1,944)      )   (1,920)        )
and 76,505,718 shares, respectively
Accumulated other comprehensive loss        (136)            (150)
Non-controlling interest                    546             518
Total Stockholders’ Equity                  10,196          10,522
Total Liabilities and Stockholders’ Equity  $  $ 35,371     $   $ 35,134
                                                                            

                                                                        
NRG ENERGY, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)
                                       
                                          March 31,       March 31, 2012
                                          2013
                                          (In millions)
Cash Flows from Operating
Activities
Net loss                                  $ (327)         $ (206)
Adjustments to reconcile net loss
to net cash provided by operating
activities:
Depreciation and amortization             298             230
Provision for bad debts                   9               7
Amortization of nuclear fuel              6               6
Amortization of financing costs and       (13)            8
debt discount/premiums
Loss on debt extinguishment               2               —
Amortization of intangibles and           31              42
out-of-market commodity contracts
Amortization of unearned equity           18              —
compensation
Changes in deferred income taxes
and liability for uncertain tax           (212)           (129)
benefits
Changes in nuclear decommissioning        10              8
trust liability
Changes in derivative instruments         317             187
Changes in collateral deposits
supporting energy risk management         (226)           (187)
activities
Cash used by changes in other             (37)         (42)
working capital
Net Cash Used by Operating                (124)        (76)
Activities
Cash Flows from Investing
Activities
Acquisitions of business, net of          (18)            —
cash acquired
Capital expenditures                      (813)           (639)
Increase in restricted cash, net          (13)            (20)
Decrease in restricted cash to
support equity requirements for           12              95
U.S. DOE funded projects
Increase in notes receivable              (9)             (7)
Investments in nuclear
decommissioning trust fund                (95)            (126)
securities
Proceeds from sales of nuclear
decommissioning trust fund                85              119
securities
Proceeds from renewable energy            16              28
grants
Other                                     (1)          7
Net Cash Used by Investing                (836)        (543)
Activities
Cash Flows from Financing
Activities
Payment of dividends to common and        (31)            (2)
preferred stockholders
Payment for treasury stock                (20)            —
Net receipts/(payments for)
settlement of acquired derivatives        98              (20)
that include financing elements
Sale proceeds and other
contributions from non-controlling        20              178
interests in subsidiaries
Proceeds from issuance of long-term       736             415
debt
Proceeds from issuance of common          1               —
stock
Payment of debt issuance and              (5)             (10)
hedging costs
Payments for short and long-term          (219)        (34)
debt
Net Cash Provided by Financing            580          527
Activities
Effect of exchange rate changes on        —            1
cash and cash equivalents
Net Decrease in Cash and Cash             (380)           (91)
Equivalents
Cash and Cash Equivalents at              2,087        1,105
Beginning of Period
Cash and Cash Equivalents at End of       $ 1,707          $ 1,014
Period
                                                              

                                                                                                            
Appendix Table A-1: First Quarter 2013 Regional Adjusted EBITDA Reconciliation
The following table summarizes the calculation of Adjusted EBITDA and provides a reconciliation to net income/ (loss)
                                               South                                Other              Alt.
(dollars in        Retail    Texas    Central    East     West    Conventional    Energy    Corp.    Total
millions)
Net                369       (426)    (7)        (155)    (7)     5               (23)      (83)     (327)
Income/(Loss)
Plus:
Net Income
Attributable to       -            -           -             -           -          -                  (1)          -           (1)
Non-Controlling
Interest
Income Tax            -            -           -             -           -          -                  -            (149)       (149)
Interest              1            -           4             13          (1)        2                  10           164         193
Expense, net
Depreciation,
Amortization          32           113         24            80          14         5                  30           4           302
and ARO Expense
Loss on Debt          -            -           -             -           -          -                  -            28          28
Extinguishment
Amortization of    21        9        (5)        (11)     (2)     -               -         (1)      11
Contracts
EBITDA                423          (304)       16            (73)        4          12                 16           (37)        57
Adjustment to
reflect NRG
share of
Adjusted EBITDA       -            -           1             4           1          4                  7            -           17
in
unconsolidated
affiliates
Merger &
Transaction           -            -           -             -           -          -                  -            32          32
Costs
Deactivation          -            -           -             3           -          -                  -            -           3
costs
Asset and
Investment            -            -           -             -           -          -                  -            1           1
Write-offs
MtM                   (320)        376         (25)          232         (1)        -                  1            -           263
losses/(gains)
                                                                                            
Adjusted EBITDA    103       72       (8)        166      4       16              24        (4)      373
                                                                                                                                          

                                                                                                           
Appendix Table A-2: First Quarter 2012 Regional Adjusted EBITDA Reconciliation
The following table summarizes the calculation of Adjusted EBITDA and provides a reconciliation to net income/ (loss)
                                               South                               Other              Alt.
(dollars in        Retail    Texas    Central    East    West    Conventional    Energy    Corp.    Total
millions)
Net                7         (74)     (30)       (44)    (14)    8               (13)      (46)     (206)
Income/(Loss)
Plus:
Net Income
Attributable to       -            -           -             -          -          -                  (1)          -           (1)
Non-Controlling
Interest
Income Tax            -            -           -             -          -          2                  -            (122)       (120)
Interest              1            -           5             4          (1)        3                  7            146         165
Expense, net
Depreciation,
Amortization          41           115         23            32         3          4                  11           3           232
and ARO Expense
Amortization of    34        8        (4)        -       -       -               -         -        38
Contracts
EBITDA                83           49          (6)           (8)        (12)       17                 4            (19)        108
Adjustment to
reflect NRG
share of
Adjusted EBITDA       -            -           -             5          1          4                  3            -           13
in
unconsolidated
affiliates
Transaction fee       -            -           -             -          -          -                  -            8           8
on asset sale
Legal                 -            -           -             -          20         -                  -            -           20
Settlement
Asset and
Investment            -            1           -             -          -          -                  -            1           2
Write-offs
MtM                   29           89          32            12         6          -                  (3)          -           165
losses/(gains)
                                                                                           
Adjusted EBITDA    112       139      26         9       15      21              4         (10)     316
                                                                                                                                         

Appendix Table A-3: 2013 and 2012 First Quarter Adjusted Cash Flow from
Operations Reconciliations
The following table summarizes the calculation of adjusted cash flow operating
activities providing a reconciliation to net cash provided by operating
activities

                                      Three months    Three months  
                                         ended              ended
(dollars in millions)                    March 31,          March 31,
                                         2013               2012
Net Cash Provided by Operating           (124)              (76)
Activities
Reclassifying of net receipts
(payments) for settlement of             98                 (20)
acquired derivatives that include
financing elements
Add: Genon Merger and integration     47              —
costs
Adjusted Cash Flow from Operating     21              (96)
Activities
                                                                             

EBITDA and Adjusted EBITDA 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 and 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
funding, 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 before growth investments as a measure of cash available for
discretionary expenditures.

Contact:

NRG Energy, Inc.
Media:
Karen Cleeve, 609.524.4608
Dave Knox, 713.537.2130
or
Investors:
Chad Plotkin, 609.524.4526
Andy Davis, 609.524.4527
 
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