Restructuring Roundtable Peter D. Fuller February 29, 2008 Power from the North Restructuring Roundtable Peter D. Fuller February 29, 2008

NRG Company Overview 3rd Fastest Growing Co. in Fortune 500 Listed: NYSE (NRG) Market Cap.: ~$9 billion Employees: 3,640 Generating Assets: 23,000 MW, primarily in four domestic regions Northeast Western Gas Gas 1,555 MW 1,965 MW Oil 21% 100% 3,555 MW Coal 50% 2,130 MW 29% Texas South Central Nuclear Combined Scale 1 1,100 MW 10% Gas Coal 1,360 MW 48% Oil Gas Coal 1,490 Nuclear 3,555 MW 5,480 MW 52% 4,180 MW 1,100 MW 15% 51% 5% 39% Gas 10,470 MW 46% Coal 7,815 MW 34% 1 Includes 125 MW as part of NRG ’ s Thermal assets. For combined scale, approximately 3,430 MW is dual - fueled capable. Reflects only domestic generation capacity as of December 31, 2006 MW data as of December 31, 2006 NRG: The center of the power industry value chain.

NRG Capabilities & Strategies NRG Energy Develop and finance a large range of power projects Padoma Wind Power NRG wind team –– focused on developing projects across the nation NRG Thermal CHP and district heating installations across the country Repowering NRG Nuclear Advanced Coal Carbon Capture and Sequestration Wind Natural Gas US Climate Action Partnership advocating federal legislation to reduce greenhouse gas emissions Combating Climate Change (“3C”) advocating for the global business community to lead on creating a low-carbon society NRG is committed to leadership in addressing carbon emissions

A Comprehensive Development Program that Meets the Growing Energy Needs of our Domestic Markets

NRG’s Low/No Carbon Lineup PADOMA WIND POWER NRG wind team – Padoma Wind Power – focused on projects across the nation. Plan to develop over 500MW by the beginning of the next decade. IGCC (Gasified Coal) Convert coal to synthesis gas via partial oxidation; Removes pollutants from gas prior to combustion Removes 95% of SO2, NOx and 65% of CO2 with carbon capture and sequestration. ECO2 POWERSPAN Partnership with Powerspan to implement pre-combustion carbon capture large-scale test at WA Parish coal plant in Texas. PLASMA Plasma torches break coal down into its molecular structure to become synthetic gas; similar emissions profile to IGCC. Can be used on smaller plants that might not otherwise be retrofitted

Power System Economics Power system managers historically have found the least-cost way to satisfy the service, reliability and environmental needs of their customers Scenario Analysis (2007) found that gas-fired generation is among the only economically-viable options RPS, RGGI, and other cap-and-trade programs are efforts to internalize in power system economics the societal externalities related to fuel sources, climate change, etc.

RPS Requirements are Increasing 2008 2009 2010 2011 2012 Notes/Future Connecticut Class 1 Cl. 1 or 2 Class 3 5% 3% 2% 6% 7% 4% Maine 30% of LSE sales 10% increase in renewables as a share of total gen in Maine by 2017 Massachusetts 3.5% Max % to be determined by DOER New Hampshire Class I Class II Class III Class IV 0% 4.5% 1% 0.5% 5.5% 0.04% 6.5% 0.08% 0.15% 16% by 2025 0.3% by 2025 Rhode Island 16% by 2019 and beyond Source: Compiled from Union of Concerned Scientists data, www.ucsusa.org/clean_energy (2007); NH HB 873-FN-LOCAL Approximately 10.8% of regional load in 2012, rising to approximately 15.8% by 2020

Market Response RGGI and RPS alter the economics in favor of low/zero emission sources, but how much? RGGI auction rules yet to be finalized; price estimates vary widely RPS According to ISO’s RSP07, the projects currently in the queue could satisfy 81% of new RPS requirements CT Clean Energy Fund has testified that the current project pipeline can meet the region’s RPS in 2012, and is robust into the future State and regional siting policies will be critical in meeting the requirements

Tie Benefits ‘Leaning’ on neighbors may no longer be the right model Source: New England Power Generators Association ‘Leaning’ on neighbors may no longer be the right model Placing a market value on capacity benefits from neighboring regions will ensure efficient decisions

Expanded Imports vs. Internal Development Economics of new transmission and generation development in Canada All-in costs not yet considered Any new resources should be tested against the market Any new resources should be contractual, not tie benefits Economic Development impacts Imports create operational challenges, contingency considerations