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

2. 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.

3. 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

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

5. 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

6. 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.

7. 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, (2007); NH HB 873-FN-LOCAL
Approximately 10.8% of regional load in 2012, rising to approximately 15.8% by 2020

8. 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

9. 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

10. 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