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<html> <head></head> <body>  <div style="font-family: 'Times New Roman',Times,serif">  <div align="center" style="font-size: 10pt; margin-top: 0pt"><b> </b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt"><b>Note 1 — Basis of Presentation</b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     NRG Energy, Inc., or NRG or the Company, is primarily a wholesale power generation company with a significant presence in major competitive power markets in the United States, as well as a major retail electricity franchise in the ERCOT (Texas) market. NRG is engaged in the ownership, development, construction and operation of power generation facilities, the transacting in and trading of fuel and transportation services, the trading of energy, capacity and related products in the United States and select international markets, and supply of electricity and energy services to retail electricity customers in the Texas market. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with the SEC’s regulations for interim financial information and with the instructions to Form 10-Q. Accordingly, they do not include all of the information and notes required by generally accepted accounting principles for complete financial statements. The following notes should be read in conjunction with the accounting policies and other disclosures as set forth in the notes to the Company’s financial statements in its Annual Report on Form 10-K for the year ended December 31, 2008. Interim results are not necessarily indicative of results for a full year. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     In the opinion of management, the accompanying unaudited interim condensed consolidated financial statements contain all material adjustments consisting of normal and recurring accruals necessary to present fairly the Company’s consolidated financial position as of June 30, 2009, the results of operations for the three and six months ended June 30, 2009 and 2008, and cash flows for the six months ended June 30, 2009 and 2008. These financial statements and notes reflect the Company’s evaluation of events occurring subsequent to the balance sheet date through July 30, 2009, the date the financial statements were issued. Certain prior-year amounts have been reclassified for comparative purposes. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 1%"><b><i>Use of Estimates</i></b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     The preparation of consolidated financial statements in accordance with generally accepted accounting principles requires management to make estimates and assumptions. These estimates and assumptions impact the reported amount of assets and liabilities and disclosures of contingent assets and liabilities as of the date of the consolidated financial statements. They also impact the reported amount of net earnings during the reporting period. Actual results could be different from these estimates. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 1%"><b><i>Cash and Cash Equivalents</i></b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     Cash and cash equivalents at June 30, 2009, are predominantly held in money market funds invested in treasury securities, treasury repurchase agreements or government agency debt. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 1%"><b><i>Other Cash Flow Information</i></b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     NRG’s non-cash investing activities for the six months ended June 30, 2009 included capital expenditures of $46 million for which the associated liability is reflected within accrued expenses. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 1%"><b><i>Recent Accounting Developments</i></b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     <i>SFAS 141R </i>— The Company adopted SFAS No. 141 (revised 2007), <i>Business Combinations</i>, or SFAS 141R, on January 1, 2009. The provisions of SFAS 141R are applied prospectively to business combinations for which the acquisition date occurs after January 1, 2009. The statement requires an acquirer to recognize and measure in its financial statements the identifiable assets acquired, the liabilities assumed, and any noncontrolling interest in the acquiree at fair value at the acquisition date. It also recognizes and measures the goodwill acquired or a gain from a bargain purchase in the business combination and determines what information to disclose to enable users of an entity’s financial statements to evaluate the nature and financial effects of the business combination. In addition, transaction costs are required to be expensed as incurred. As discussed in Note 3, <i>Business Acquisition</i>, on May 1, 2009 NRG acquired all of the Texas electric retail business operations, or Reliant Energy, of Reliant Energy, Inc., now known as RRI Energy, Inc., or RRI. The Company has applied the provisions of SFAS 141R to the Reliant Energy acquisition. As discussed further in Note 12, <i>Income Taxes</i>, any reductions after January 1, 2009, to existing net deferred tax assets or valuation allowances or changes to uncertain tax benefits, as they relate to Fresh Start or previously completed acquisitions, will be recorded to income tax expense rather than additional paid-in capital or goodwill. </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     <i>FSP FAS 141R-1 </i>— In April 2009, the FASB issued FSP No. FAS 141(R)-1, <i>Accounting for Assets Acquired and Liabilities Assumed in a Business Combination That Arise from Contingencies</i>, or FSP FAS 141R-1, which the Company adopted effective January 1, 2009. This FSP amends and clarifies SFAS 141R<i>, </i>to address application issues on initial recognition and measurement, subsequent measurement and accounting, and disclosure of assets and liabilities arising from contingencies in a business combination. The provisions of FSP FAS 141R-1 are applied prospectively to assets or liabilities arising from contingencies in business combinations for which the acquisition date occurs after January 1, 2009. Accordingly, the Company has applied the provisions of FSP FAS 141R-1 to the Reliant Energy acquisition. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     <i>SFAS 160 </i>— The Company adopted SFAS No. 160, <i>Noncontrolling Interests in Consolidated Financial Statements—an amendment of ARB No. 51, Consolidated Financial Statements</i>, or SFAS 160, on January 1, 2009. This statement amends ARB No. 51 to establish accounting and reporting standards for the minority interest in a subsidiary and for the deconsolidation of a subsidiary. It also amends certain of ARB No. 51’s consolidation procedures for consistency with the requirements of SFAS 141R. This statement is applied prospectively from the date of adoption, except for the presentation and disclosure requirements, which shall be applied retrospectively. Accordingly, the Company has conformed its financial statement presentation and disclosures to the requirements of SFAS 160. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     <i>FSP APB 14-1 </i>— The Company adopted FSP No. APB 14-1, <i>Accounting for Convertible Debt Instruments That May Be Settled in Cash upon Conversion (Including Partial Cash Settlement), </i>or FSP APB 14-1, on January 1, 2009, applying it retrospectively to all periods presented<i>. </i>FSP APB 14-1 clarifies that convertible debt instruments that may be settled in cash upon conversion (including partial cash settlement) do not fall within the scope of paragraph 12 of Accounting Principles Board Opinion No. 14, <i>Accounting for Convertible Debt and Debt Issued with Stock Purchase Warrants,</i> and specifies that issuers of such instruments should separately account for the liability component and the equity component represented by the embedded conversion option in a manner that will reflect the entity’s nonconvertible debt borrowing rate when interest cost is recognized in subsequent periods. Upon settlement, the entity shall allocate consideration transferred and transaction costs incurred to the extinguishment of the liability component and the reacquisition of the equity component. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     During the third quarter 2006, NRG’s unrestricted wholly-owned subsidiaries CSF I and CSF II issued notes and preferred interests, or CSF Debt, which included an embedded derivative requiring NRG to pay to Credit Suisse Group, or CS, at maturity, either in cash or stock at NRG’s option, the excess of NRG’s then current stock price over a threshold price. The CSF Debt and its embedded derivative are accounted for under the guidance in FSP APB 14-1. The fair value of the embedded derivative at the date of issuance was determined to be $32 million and has been recorded as a debt discount to the CSF Debt, with a corresponding credit to Additional Paid-in Capital. This debt discount will be amortized over the terms of the underlying CSF Debt. The cumulative effect of the change in accounting principle for periods prior to December 31, 2008, was recorded as a $7 million decrease to Long-Term Debt, a $13 million decrease to Additional Paid-In Capital, and a $20 million increase to Retained Earnings on the Condensed Consolidated Balance Sheet as of December 31, 2008. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     The following table summarizes the effect of the adoption of FSP APB 14-1 on income and per-share amounts for all periods presented: </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="58%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6"><b>Three months ended</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6"><b>Six months ended</b></td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>June 30,</b></td> <td style="border-bottom: 1px solid #000000"> </td> <td style="border-bottom: 1px solid #000000"> </td> <td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>June 30,</b></td> <td style="border-bottom: 1px solid #000000"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td nowrap="nowrap" align="left"> <div style="margin-left:17px; text-indent:-15px"><b>(In millions, except per share amounts)</b> </div></td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>2009</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>2008</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>2009</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>2008</b></td> <td> </td> </tr>   <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:18px; text-indent:-15px">Increase/(decrease): </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Interest Expense </div></td> <td> </td> <td align="left">$</td> <td align="right">2  </td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">2  </td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">3  </td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">5  </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Income From Continuing Operations </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(2) </td> <td nowrap="nowrap"> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(2) </td> <td nowrap="nowrap"> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(3) </td> <td nowrap="nowrap"> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(5) </td> <td nowrap="nowrap"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Net Income attributable to NRG Energy, Inc. </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(2) </td> <td nowrap="nowrap"> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(2) </td> <td nowrap="nowrap"> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(3) </td> <td nowrap="nowrap"> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(5) </td> <td nowrap="nowrap"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:18px; text-indent:-15px">Basic Earnings Per Share </div></td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(0.01</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(0.01</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(0.01</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(0.02</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:18px; text-indent:-15px">Diluted Earnings Per Share </div></td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(0.01</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(0.01</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(0.01</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(0.02</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 2px solid #000000"> </td> </tr>  </table> </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     <i>FSP FAS 157-4 </i>— In April 2009, the FASB issued FSP No. FAS 157-4, <i>Determining Fair Value When the Volume and Level of Activity for the Asset or Liability Have Significantly Decreased and Identifying Transactions That Are Not Orderly, </i>or FSP FAS 157-4. FSP FAS 157-4 provides additional guidance for estimating fair value in accordance with SFAS Statement No. 157, <i>Fair Value Measurements</i>, when the volume and level of activity for the asset or liability have significantly decreased, includes guidance on identifying circumstances that indicate a transaction is not orderly, and requires disclosures about inputs and valuation techniques used to measure fair value. This FSP applies to all assets and liabilities within the scope of accounting pronouncements that require or permit fair value measurements. FSP FAS 157-4 is effective for interim and annual reporting periods ending after June 15, 2009, and will be applied prospectively. The Company’s adoption of FSP FAS 157-4 beginning with the interim reporting period ended June 30, 2009, did not have a material impact on the Company’s results of operations, financial position, or cash flows. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     <i>FSP 107-1 and APB 28-1 </i>— In April 2009, the FASB issued FSP No. FAS 107-1 and APB 28-1, <i>Interim Disclosures about Fair Value of Financial Instruments, </i>or FSP 107-1 and APB 28-1. This FSP amends FASB Statement No. 107, <i>Disclosures about Fair Value of Financial Instruments, </i>to require disclosures about fair value of financial instruments for interim reporting periods of publicly traded companies as well as in annual financial statements. This FSP also amends APB Opinion No. 28, <i>Interim Financial Reporting, </i>to require those disclosures in summarized financial information at interim reporting periods. This FSP applies to all financial instruments within the scope of FSP 107-1 held by publicly traded companies, as defined by Opinion 28. This FSP is effective for interim reporting periods ending after June 15, 2009. FSP FAS 107-1 and APB 28-1 do not require disclosures for earlier periods presented for comparative purposes at initial adoption. In periods after initial adoption, this FSP requires comparative disclosures only for periods ending after initial adoption. The Company’s adoption of FSP 107-1 and APB 28-1 beginning with the interim period ended June 30, 2009 did not have an impact on the Company’s results of operations, financial position, or cash flows. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     <i>FSP FAS 115-2 and FAS 124-2 </i>— In April 2009, the FASB issued FSP No. FAS 115-2 and FAS 124-2, <i>Recognition and Presentation of Other-Than-Temporary Impairments, </i>or FSP FAS 115-2 and FAS 124-2. This FSP amends the other-than-temporary impairment guidance in U.S. GAAP for debt securities to make the guidance more operational and to improve the presentation and disclosure of other-than-temporary impairments on debt and equity securities in the financial statements. This FSP does not amend existing recognition and measurement guidance related to other-than-temporary impairments of equity securities. FSP FAS 115-2 and FAS 124-2 are effective for interim and annual reporting periods ending after June 15, 2009. This FSP does not require disclosures for earlier periods presented for comparative purposes at initial adoption. In periods after initial adoption, this FSP requires comparative disclosures only for periods ending after initial adoption. The Company’s adoption of FSP FAS 115-2 and FAS 124-2 beginning with the interim period ended June 30, 2009 did not have an impact on the Company’s results of operations, financial position, or cash flows. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     <i>SFAS 165 </i>— In May 2009, the FASB issued SFAS No. 165, <i>Subsequent Events</i>, or SFAS 165. SFAS 165 incorporates the accounting and disclosure requirements related to subsequent events found in auditing standards into U.S. GAAP, effectively making management directly responsible for subsequent events accounting and disclosures. SFAS 165 also requires disclosure of the date through which subsequent events have been evaluated. SFAS 165 is effective for interim and annual reporting periods ending after June 15, 2009, and shall be applied prospectively. The Company’s adoption of SFAS 165 beginning with the interim period ended June 30, 2009 did not have an impact on the Company’s results of operations, financial position, or cash flows. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     <i>SFAS 167 </i>— In June 2009, the FASB issued SFAS No. 167, <i>Amendments to FASB Interpretation No. 46(R)</i>, or SFAS 167. This guidance amends FIN 46(R) by altering how a company determines when an entity that is insufficiently capitalized or not controlled through voting should be consolidated. SFAS 167 is effective at the start of the first fiscal year beginning after November 15, 2009. The Company is presently evaluating the impact of SFAS 167 on its results of operations, financial position, and cash flows. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     <i>SFAS 168 </i>— In June 2009, the FASB issued SFAS No. 168, <i>The FASB Accounting Standards Codification and the Hierarchy of Generally Accepted Accounting Principles</i>, or SFAS 168. This guidance establishes the FASB Accounting Standards Codification, or Codification, as the source of authoritative GAAP recognized by the FASB to be applied by nongovernmental entities. In addition, SFAS 168 also specifies that rules and interpretive releases of the Securities and Exchange Commission under authority of federal securities laws are also sources of authoritative GAAP for SEC registrants. All guidance contained in the Codification carries an equal level of authority. SFAS 168 is effective for financial statements issued for interim and annual reporting periods that end after September 15, 2009. </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     <i>EITF 09-1 </i>— In July 2009, the FASB ratified EITF Issue No. 09-1, <i>Accounting for Own-Share Lending Arrangements in Contemplation of Convertible Debt Issuance or Other Financing, </i>or EITF 09-1. This Issue applies to equity-classified share lending arrangements on an entity’s own shares, when executed in contemplation of a convertible debt offering or other financing. EITF 09-1 addresses how to account for the share-lending arrangement and the effect, if any, that the loaned shares have on earnings-per-share calculations. The share lending arrangement is required to be measured at fair value and recognized as an issuance cost associated with the convertible debt offering or other financing. Earnings-per-share calculations would not be affected by the loaned shares unless the share borrower defaults on the arrangement and does not return the shares. If counterparty default is probable, the share lender is required to recognize an expense equal to the then fair value of the unreturned shares, net of the fair value of probable recoveries. The Company will apply EITF 09-1 for share lending agreements entered into after June 15, 2009 and will apply EITF 09-1 on a retrospective basis for arrangements outstanding as of January 1, 2010. NRG is currently evaluating the impact of this statement upon its adoption on the Company’s results of operations, financial position and cash flows. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     <i>Other </i>— The following accounting standards were adopted on January 1, 2009, with no impact on the Company’s results of operations, financial position, or cash flows: </div> <div style="margin-top: 6pt"> <table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left"> <tr valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <td width="2%" style="background: transparent"> </td> <td width="3%" nowrap="nowrap" align="left"><b>•</b></td> <td width="1%"> </td> <td> <div style="text-align: justify">FSP No. FAS 142-3, <i>Determination of the Useful Life of Intangible Assets</i> </div></td> </tr> <tr> <td style="font-size: 0pt"> </td> </tr> <tr valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <td width="2%" style="background: transparent"> </td> <td width="3%" nowrap="nowrap" align="left"><b>•</b></td> <td width="1%"> </td> <td> <div style="text-align: justify">FSP No. FAS 157-2, <i>Effective Date of FASB Statement No. 157</i> </div></td> </tr> <tr> <td style="font-size: 0pt"> </td> </tr> <tr valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <td width="2%" style="background: transparent"> </td> <td width="3%" nowrap="nowrap" align="left"><b>•</b></td> <td width="1%"> </td> <td> <div style="text-align: justify">SFAS No. 161, <i>Disclosures About Derivative Instruments and Hedging Activities</i> </div></td> </tr> <tr> <td style="font-size: 0pt"> </td> </tr> <tr valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <td width="2%" style="background: transparent"> </td> <td width="3%" nowrap="nowrap" align="left"><b>•</b></td> <td width="1%"> </td> <td> <div style="text-align: justify">FSP No. FAS 132(R)-1, <i>Employers’ Disclosures about Postretirement Benefit Plan Assets</i> </div></td> </tr> <tr> <td style="font-size: 0pt"> </td> </tr> <tr valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <td width="2%" style="background: transparent"> </td> <td width="3%" nowrap="nowrap" align="left"><b>•</b></td> <td width="1%"> </td> <td> <div style="text-align: justify">EITF No. 07-5, <i>Determining Whether an Instrument (or Embedded Feature) Is Indexed to an Entity’s Own Stock</i> </div></td> </tr> <tr> <td style="font-size: 0pt"> </td> </tr> <tr valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <td width="2%" style="background: transparent"> </td> <td width="3%" nowrap="nowrap" align="left"><b>•</b></td> <td width="1%"> </td> <td> <div style="text-align: justify">EITF No. 08-5, <i>Issuer’s Accounting for Liabilities Measured at Fair Value with a Third-Party Credit Enhancement</i> </div></td> </tr> <tr> <td style="font-size: 0pt"> </td> </tr> <tr valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <td width="2%" style="background: transparent"> </td> <td width="3%" nowrap="nowrap" align="left"><b>•</b></td> <td width="1%"> </td> <td> <div style="text-align: justify">EITF No. 08-6, <i>Equity Method Investment Accounting Considerations</i> </div></td> </tr> </table> </div> </div> </body> </html>

<html> <head></head> <body>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="justify" style="font-size: 10pt; margin-top: 18pt"><b>Note 2 — Comprehensive Income/(Loss)</b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     The following table summarizes the components of the Company’s comprehensive income/(loss), net of tax: </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="56%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="3%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6"><b>Three months ended</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6"><b>Six months ended</b></td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>June 30,</b></td> <td style="border-bottom: 1px solid #000000"> </td> <td style="border-bottom: 1px solid #000000"> </td> <td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>June 30,</b></td> <td style="border-bottom: 1px solid #000000"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td nowrap="nowrap" align="left"> <div style="margin-left:18px; text-indent:-15px"><b>(In millions)</b> </div></td> <td> </td> <td nowrap="nowrap" align="right" colspan="2"><b>2009</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2"><b>2008</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2"><b>2009</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2"><b>2008</b></td> <td> </td> </tr>   <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:18px; text-indent:-15px">Net income </div></td> <td> </td> <td align="left">$</td> <td align="right">433</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">127</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">631</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">176</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Changes in derivative activity, net of tax </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(109</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(698</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">64</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(1,000</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Foreign currency translation adjustment, net of tax </div></td> <td> </td> <td> </td> <td align="right">36</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(7</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">18</td> <td> </td> <td> </td> <td> </td> <td align="right">35</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Reclassification adjustment for translation (gain)/loss realized upon sale of foreign investments </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(22</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">15</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(22</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">15</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Unrealized gain on available-for-sale securities, net of tax </div></td> <td> </td> <td> </td> <td align="right">1</td> <td> </td> <td> </td> <td> </td> <td align="right">1</td> <td> </td> <td> </td> <td> </td> <td align="right">2</td> <td> </td> <td> </td> <td> </td> <td align="right">3</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:18px; text-indent:-15px">Other comprehensive (loss)/income, net of tax </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(94</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(689</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">62</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(947</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:18px; text-indent:-15px">Comprehensive income/(loss) attributable to NRG Energy, Inc. </div></td> <td> </td> <td align="left">$</td> <td align="right">339</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(562</td> <td nowrap="nowrap">)</td> <td> </td> <td align="left">$</td> <td align="right">693</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(771</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 2px solid #000000"> </td> </tr>  </table> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     The following table summarizes the changes in the Company’s accumulated other comprehensive income, net of tax: </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr style="font-size: 10pt"> <td width="84%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="5%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td nowrap="nowrap" align="left"> <div style="margin-left:18px; text-indent:-15px"><b>(In millions)</b> </div></td> <td> </td> <td> </td> <td> </td> <td> </td> </tr>   <tr style="font-size: 1px"> <td colspan="5" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:18px; text-indent:-15px">Accumulated other comprehensive income as of December 31, 2008 </div></td> <td> </td> <td align="left">$</td> <td align="right">310</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:18px; text-indent:-15px">Changes in derivative activity </div></td> <td> </td> <td> </td> <td align="right">64</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:18px; text-indent:-15px">Foreign currency translation adjustment </div></td> <td> </td> <td> </td> <td align="right">18</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:18px; text-indent:-15px">Reclassification adjustment for translation gain realized upon sale of foreign investment </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(22</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:18px; text-indent:-15px">Unrealized gain on available-for-sale securities </div></td> <td> </td> <td> </td> <td align="right">2</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="5" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:18px; text-indent:-15px">Accumulated other comprehensive income as of June 30, 2009 </div></td> <td> </td> <td align="left">$</td> <td align="right">372</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="5" align="left" style="border-top: 2px solid #000000"> </td> </tr>  </table> </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> </div> </body> </html>

<html> <head></head> <body>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="justify" style="font-size: 10pt; margin-top: 10pt"><b>Note 3 — Business Acquisition</b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 1%"><b><i>General</i></b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     On May 1, 2009, NRG, through its wholly owned subsidiary NRG Retail LLC, acquired Reliant Energy, which consisted of all of the Texas electric retail business operations of RRI, including the exclusive use of the trade name “Reliant”. Reliant Energy arranges for the transmission and delivery of electricity to customers, bills customers, collects payments for electricity sold and maintains call centers to provide customer service. Reliant Energy is the second largest electricity provider to residential and small business, or mass, customers in Texas, with approximately 1.6 million mass customers as of June 30, 2009. Reliant Energy also sells electricity and energy services to commercial, industrial and governmental/institutional customers, or C&I customers, in Texas with 0.1 million C&I customers based on metered locations as of June 30, 2009. These customers include refineries, chemical plants, manufacturing facilities, hospitals, universities, government agencies, restaurants, and other facilities. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     With its complementary generation portfolio, the Texas region will be a supplier of power to Reliant Energy, thereby creating the potential for a more stable, reliable and competitive business that benefits Texas consumers. By backing Reliant Energy’s load-serving requirements with NRG’s generation and risk management practices, the need to sell and buy power from other financial institutions and intermediaries that trade in the ERCOT market may be reduced, resulting in reduced transaction costs and credit exposures, which will provide for an efficient credit structure. This will also allow for a reduction in actual and contingent collateral, which will be achieved initially through offsetting transactions and over time by reducing the need to hedge the retail power supply through third parties, thus reducing collateral postings. In addition, with Reliant Energy’s base of retail customers, NRG now has a platform to build on the entire class of distributed generation and retail alternative energy technologies. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 1%"><b><i>Credit Support</i></b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     On May 1, 2009, NRG arranged with Merrill Lynch Commodities, Inc. and certain of its affiliates, or Merrill Lynch, the former credit provider of RRI, to provide continuing credit support to Reliant Energy after closing the acquisition. In connection with entering into a transitional credit sleeve facility, or CSRA, NRG contributed $200 million of cash to Reliant Energy. In conjunction with the CSRA, NRG, Reliant Energy, counterparties, and Merrill Lynch novated some of NRG’s in-the-money trades to move collateral from NRG to Merrill Lynch, thereby reducing Merrill Lynch’s actual and contingent collateral supporting Reliant Energy out-of-money positions. As a result, $522 million of cash collateral held by NRG was moved to Merrill Lynch on the novation dates. NRG continues to record unrealized and realized gains/losses for these novated trades in its Texas and Northeast segments. The CSRA is scheduled to provide collateral support for Reliant Energy until November 1, 2010. NRG will also have two potential additional cash contribution obligations: (i) in October 2009 of $250 million if the actual collateral posted by Merrill Lynch exceeded the predetermined threshold as set forth in the CSRA; and (ii) in October 2010 for up to $400 million at the scheduled sleeve unwind. The monthly fee for the CSRA is 5.875% on an annualized basis of the predetermined exposure. As a result of the CSRA, NRG has significant credit risk with Merrill Lynch. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     Additionally, on May 1, 2009, NRG entered into a $50 million working capital facility with Merrill Lynch in connection with the acquisition of Reliant Energy. The facility requires that the Company comply with all terms of the CSRA. The maturity date is November 1, 2010, and NRG initially drew $25 million under the facility. These funds accrue interest at the prime rate. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     Reliant Energy conducts its business through RERH Holdings, LLC and subsidiaries, or RERH, Reliant Energy Texas Retail, LLC, and Reliant Energy Services Texas, LLC. The obligations of Reliant Energy under the CSRA are secured by first liens on substantially all of the assets of RERH. The obligations of RERH under the CSRA are non-recourse to NRG and its other non-pledgor subsidiaries. The CSRA agreement (a) restricts the ability of RERH to, among other actions, (i) encumber its assets; (ii) sell certain assets; (iii) incur additional debt; (iv) pay dividends or pay subordinated debt; (v) make investments or acquisitions; or (vi) enter into certain transactions with affiliates and (b) requires NRG to manage risks related to commodity prices. RERH is designed to maintain the separate nature of its assets in order to ensure that such assets are available first and foremost to satisfy the entities’ creditor claims. At June 30, 2009, the cash balance at RERH was $294 million. </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 1%"><b><i>Acquisition method of accounting</i></b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     The acquisition of Reliant Energy is accounted for under the acquisition method of accounting in accordance with SFAS 141R. Accordingly, NRG has conducted a preliminary assessment of net assets acquired and has recognized provisional amounts for identifiable assets acquired and liabilities assumed at their estimated acquisition date fair values, which are preliminary at June 30, 2009, while transaction and integration costs associated with the acquisition are expensed as incurred. The initial accounting for the business combination is not complete because the appraisals necessary to assess the fair values of the net assets acquired and the amount of goodwill (if any) to be recognized are still in process, and the Company is also in the process of valuing the tax basis of the net assets acquired, which will affect the deferred tax balances. The provisional amounts recognized are subject to revision as more detailed analyses are completed and additional information is obtained about the facts and circumstances that existed as of the acquisition date. Any changes to the fair value assessments and the tax basis values will affect the final balance of goodwill. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     NRG paid RRI $287.5 million in cash at closing, funded from NRG’s cash on hand, and will remit approximately $82 million of acquired net working capital to RRI over the eight months following the closing, bringing cash consideration to approximately $370 million. On June 15, 2009, NRG paid $63 million to RRI as an initial remittance of acquired net working capital. NRG also recognized a $31 million non-cash gain on the settlement of a pre-existing relationship, representing the in-the-money value to NRG of an agreement that permits Reliant Energy to call on certain NRG gas plants when necessary for Reliant Energy to meet its load obligations. NRG has recorded this gain within “Operating Revenues” in its condensed consolidated statement of operations. This non-cash gain is considered a component of consideration in accordance with SFAS 141R, and together with cash consideration, brings total consideration to approximately $401 million. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     The following table summarizes the provisional values assigned to the net assets acquired, including cash acquired of $6 million, as of the acquisition date: </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="88%"> </td> <td width="5%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td nowrap="nowrap" align="left">    <b>(In millions)</b></td> <td> </td> <td> </td> <td> </td> <td> </td> </tr>   <tr style="font-size: 1px"> <td colspan="5" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:18px; text-indent:-15px"><b>Assets</b> </div></td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Current and non-current assets </div></td> <td> </td> <td align="right">$</td> <td align="right">635</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Property, plant and equipment </div></td> <td> </td> <td> </td> <td align="right">72</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Intangible assets subject to amortization: </div></td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:45px; text-indent:-15px">In-market customer contracts </div></td> <td> </td> <td> </td> <td align="right">733</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:45px; text-indent:-15px">Customer relationships </div></td> <td> </td> <td> </td> <td align="right">481</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:45px; text-indent:-15px">Trade names </div></td> <td> </td> <td> </td> <td align="right">178</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:45px; text-indent:-15px">In-market energy supply contracts </div></td> <td> </td> <td> </td> <td align="right">37</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:45px; text-indent:-15px">Other </div></td> <td> </td> <td> </td> <td align="right">6</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Derivative assets </div></td> <td> </td> <td> </td> <td align="right">1,942</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Deferred tax asset, net </div></td> <td> </td> <td> </td> <td align="right">11</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Goodwill </div></td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="5" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:45px; text-indent:-15px">Total assets acquired </div></td> <td> </td> <td> </td> <td align="right">4,095</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="5" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:18px; text-indent:-15px"><b>Liabilities</b> </div></td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Current and non-current liabilities </div></td> <td> </td> <td> </td> <td align="right">550</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Derivative liabilities </div></td> <td> </td> <td> </td> <td align="right">2,996</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Out-of-market energy supply and customer contracts </div></td> <td> </td> <td> </td> <td align="right">148</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="5" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:45px; text-indent:-15px">Total liabilities assumed </div></td> <td> </td> <td> </td> <td align="right">3,694</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="5" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:18px; text-indent:-15px">Net assets acquired </div></td> <td> </td> <td align="right">$</td> <td align="right">401</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="5" align="left" style="border-top: 2px solid #000000"> </td> </tr>  </table> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     No goodwill is expected to be deductible for tax purposes. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     Current assets include accounts receivable with a preliminary fair value of $569 million and gross contractual amounts of $589 million at the time of acquisition. The Company expects to collect the fair value of the contractual cash flows; any difference between fair value and the amount collected will be an adjustment to the acquired working capital payment due to RRI. </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     The Company, through its acquisition of Reliant Energy, is subject to material contingencies relating to Excess Mitigation Credits (see Note 14, <i>Commitments and Contingencies</i>) and Retail Replacement Reserve (see Note 15, <i>Regulatory Matters</i>). Due to the number of variables and assumptions involved in assessing the possible outcome of these matters, sufficient information does not exist to reasonably estimate the fair value of these contingent liabilities. These material contingencies have been evaluated in accordance with SFAS No. 5, <i>Accounting for Contingencies</i>, or SFAS 5, and related guidance, and no provisional amounts for these matters have been recorded at the acquisition date. In addition, NRG provided certain indemnities in connection with the acquisition. See Note 17, <i>Guarantees, </i>to this Form 10-Q for further discussion. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 1%">    <b><i>Fair value measurements</i></b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     The provisional fair values of the intangible assets/liabilities and property, plant and equipment at the acquisition date were measured primarily based on significant inputs that are not observable in the market and thus represent a Level 3 measurement as defined in SFAS No. 157, <i>Fair Value Measurement</i>, or SFAS 157. Significant inputs were as follows: </div> <div style="margin-top: 10pt"> <table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left"> <tr valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <td width="2%" style="background: transparent"> </td> <td width="3%" nowrap="nowrap" align="left"><b>•</b></td> <td width="1%"> </td> <td> <div style="text-align: justify"><i>Customer contracts </i>— The fair value of the customer contracts, representing those with Reliant Energy’s C&I customers, was estimated based on the present value of the above/below market cash flows attributable to the contracts based on contract type, discounted utilizing a current market interest rate consistent with the overall credit quality of the portfolio. The fair values also accounted for Reliant Energy’s historical costs to acquire customers. The above/below market cash flows were estimated by comparing the expected cash flows to be generated based on existing contracted prices and expected volumes with the cash flows from estimated current market contract prices for the same expected volumes. The estimated current market contract prices were derived considering current market costs, such as price of energy, transmission and distribution costs, and miscellaneous fees, plus a normal profit margin. The customer contracts are amortized to revenues, over a weighted average amortization period of five years, based on expected volumes to be delivered for the portfolio. </div></td> </tr> <tr> <td style="font-size: 10pt"> </td> </tr> <tr valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <td width="2%" style="background: transparent"> </td> <td width="3%" nowrap="nowrap" align="left"><b>•</b></td> <td width="1%"> </td> <td> <div style="text-align: justify"><i>Customer relationships </i>— The customer relationships, reflective of Reliant Energy’s residential and small business customer base, or Mass, were valued using a variation of the income approach. Under this approach, the Company estimated the present value of expected future cash flows resulting from the existing customer relationships, considering attrition and charges for contributory assets (such as net working capital, fixed assets, software, workforce and trade names) utilized in the business, discounted at an independent power producer peer group’s weighted average cost of capital. The customer relationships are amortized to depreciation and amortization, over a weighted average amortization period of eight years, based on the expected discounted future net cash flows by year. </div></td> </tr> <tr> <td style="font-size: 10pt"> </td> </tr> <tr valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <td width="2%" style="background: transparent"> </td> <td width="3%" nowrap="nowrap" align="left"><b>•</b></td> <td width="1%"> </td> <td> <div style="text-align: justify"><i>Trade names </i>— The trade names were valued using a “relief from royalty” method, an approach under which fair value is estimated to be the present value of royalties saved because NRG owns the intangible asset and therefore does not have to pay a royalty for its use. The trade names were valued in two parts based on Reliant Energy’s two primary customer segments — Mass customers and C&I customers. The avoided royalty revenues were discounted at an independent power producer peer group’s weighted average cost of capital. The trade names are amortized to depreciation and amortization, on a straight-line basis, over 15 years. </div></td> </tr> <tr> <td style="font-size: 10pt"> </td> </tr> <tr valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <td width="2%" style="background: transparent"> </td> <td width="3%" nowrap="nowrap" align="left"><b>•</b></td> <td width="1%"> </td> <td> <div style="text-align: justify"><i>Energy supply contracts </i>— The fair value of the in-market and out-of-market energy supply contracts was determined in accordance with SFAS 157. These contracts are amortized over periods ranging through 2016, based on the expected delivery under the respective contracts. </div></td> </tr> <tr> <td style="font-size: 10pt"> </td> </tr> <tr valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <td width="2%" style="background: transparent"> </td> <td width="3%" nowrap="nowrap" align="left"><b>•</b></td> <td width="1%"> </td> <td> <div style="text-align: justify"><i>Property, plant and equipment </i>— The fair value of property, plant and equipment were valued using a cost approach, which estimates value by determining the current cost of replacing an asset with another of equivalent economic utility. The cost to replace a given asset reflects the estimated reproduction or replacement cost for the property, less an allowance for loss in value due to depreciation. </div></td> </tr> </table> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     The fair value of derivative assets and liabilities as of the acquisition date were determined in accordance with FAS 157. The breakdown of Level 1, 2 and 3 are as follows: </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr style="font-size: 10pt"> <td width="52%"> </td> <td width="2%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="2%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="3%" nowrap="nowrap">   </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="3%" nowrap="nowrap">   </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="15" style="border-bottom: 1px solid #000000"><b>Fair Value</b></td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td nowrap="nowrap" align="left">   <b>(In millions)</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Level 1</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Level 2</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Level 3</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Total</b></td> </tr>   <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:18px; text-indent:-15px"> Derivative assets </div></td> <td> </td> <td align="right">$     </td> <td align="right">534</td> <td> </td> <td> </td> <td align="right">$</td> <td align="right">1,375</td> <td> </td> <td> </td> <td align="right">$     </td> <td align="right">33</td> <td> </td> <td> </td> <td align="right">$     </td> <td align="right">1,942</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:18px; text-indent:-15px"> Derivative liabilities </div></td> <td> </td> <td align="right">$     </td> <td align="right">534</td> <td> </td> <td> </td> <td align="right">$</td> <td align="right">2,357</td> <td> </td> <td> </td> <td align="right">$     </td> <td align="right">105</td> <td> </td> <td> </td> <td align="right">$     </td> <td align="right">2,996</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 2px solid #000000"> </td> </tr>  </table> </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     <b><i>Amortization of acquired intangible assets and out-of-market contracts</i></b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     The following table presents the estimated amortization related to the acquired intangible assets for 2009 — 2014: </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="46%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="8%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="8%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="3%">     </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td nowrap="nowrap" align="left"><b>Year Ended December 31,</b></td> <td> </td> <td nowrap="nowrap" align="right" colspan="2"><b>Customer</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2"><b>Customer</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2"><b>Trade</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2"><b>Energy Supply</b></td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td nowrap="nowrap" align="left"><b>(in millions)</b></td> <td> </td> <td nowrap="nowrap" align="right" colspan="2"><b>Contracts</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2"><b>Relationships</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2"><b>Names</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2"><b>Contracts</b></td> <td> </td> </tr>   <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:18px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:18px; text-indent:-15px">2009 (six months) </div></td> <td> </td> <td align="left">$</td> <td align="right">178</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">118</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">6</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">12</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:18px; text-indent:-15px">2010 </div></td> <td> </td> <td> </td> <td align="right">208</td> <td> </td> <td> </td> <td> </td> <td align="right">106</td> <td> </td> <td> </td> <td> </td> <td align="right">12</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:18px; text-indent:-15px">2011 </div></td> <td> </td> <td> </td> <td align="right">134</td> <td> </td> <td> </td> <td> </td> <td align="right">63</td> <td> </td> <td> </td> <td> </td> <td align="right">12</td> <td> </td> <td> </td> <td> </td> <td align="right">2</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:18px; text-indent:-15px">2012 </div></td> <td> </td> <td> </td> <td align="right">93</td> <td> </td> <td> </td> <td> </td> <td align="right">47</td> <td> </td> <td> </td> <td> </td> <td align="right">12</td> <td> </td> <td> </td> <td> </td> <td align="right">3</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:18px; text-indent:-15px">2013 </div></td> <td> </td> <td> </td> <td align="right">45</td> <td> </td> <td> </td> <td> </td> <td align="right">33</td> <td> </td> <td> </td> <td> </td> <td align="right">12</td> <td> </td> <td> </td> <td> </td> <td align="right">4</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:18px; text-indent:-15px">2014 </div></td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">26</td> <td> </td> <td> </td> <td> </td> <td align="right">12</td> <td> </td> <td> </td> <td> </td> <td align="right">4</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 2px solid #000000"> </td> </tr>  </table> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     The following table presents the estimated amortization related to the acquired out-of-market contracts for 2009 — 2014: </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="88%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2"><b>Energy Supply</b></td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td nowrap="nowrap" align="left"><b>Year Ended December 31,</b></td> <td> </td> <td nowrap="nowrap" align="right" colspan="2"><b>and Customer</b></td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td nowrap="nowrap" align="left"><b>(in millions)</b></td> <td> </td> <td nowrap="nowrap" align="right" colspan="2"><b>Contracts</b></td> <td> </td> </tr>   <tr style="font-size: 1px"> <td colspan="5" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:18px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:18px; text-indent:-15px">2009 (six months) </div></td> <td> </td> <td align="left"> </td> <td align="right">$        <font style="margin-right: 10px">49</font></td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:18px; text-indent:-15px">2010 </div></td> <td> </td> <td> </td> <td align="right"> <div style="margin-right: 10px">51 </div></td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:18px; text-indent:-15px">2011 </div></td> <td> </td> <td> </td> <td align="right"> <div style="margin-right: 10px">18 </div></td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:18px; text-indent:-15px">2012 </div></td> <td> </td> <td> </td> <td align="right"> <div style="margin-right: 10px">7 </div></td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:18px; text-indent:-15px">2013 </div></td> <td> </td> <td> </td> <td align="right"> <div style="margin-right: 10px">3 </div></td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:18px; text-indent:-15px">2014 </div></td> <td> </td> <td> </td> <td align="right"> <div style="margin-right: 10px">— </div></td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="5" align="left" style="border-top: 2px solid #000000"> </td> </tr>  </table> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     <b><i>Supplemental Pro Forma Information</i></b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     Since the acquisition date, Reliant Energy contributed $1,175 million of operating revenues and $233 million in net income attributable to NRG. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     The following supplemental pro forma information represents the results of operations as if NRG and Reliant Energy had combined at the beginning of the respective reporting periods: </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="40%"> </td> <td width="5%"> </td> <td width="2%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>Three months ended June 30,</b></td> <td style="border-bottom: 1px solid #000000"> </td> <td style="border-bottom: 1px solid #000000"> </td> <td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>Six months ended June 30,</b></td> <td style="border-bottom: 1px solid #000000"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td nowrap="nowrap" align="left"> <div style="margin-left:18px; text-indent:-15px"><b>(In millions, except per share amounts)</b> </div></td> <td> </td> <td nowrap="nowrap" align="right" colspan="2"><b>2009</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2"><b>2008</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2"><b>2009</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2"><b>2008</b></td> <td> </td> </tr>   <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:18px; text-indent:-15px">Operating revenues </div></td> <td> </td> <td align="right">$</td> <td align="right">2,672</td> <td> </td> <td> </td> <td align="right">$</td> <td align="right">3,497</td> <td> </td> <td> </td> <td align="right">$</td> <td align="right">5,716</td> <td> </td> <td> </td> <td align="right">$</td> <td align="right">6,513</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:18px; text-indent:-15px">Net income attributable to NRG Energy, Inc. </div></td> <td> </td> <td> </td> <td align="right">493</td> <td> </td> <td> </td> <td> </td> <td align="right">268</td> <td> </td> <td> </td> <td> </td> <td align="right">578</td> <td> </td> <td> </td> <td> </td> <td align="right">548</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td nowrap="nowrap"> <div style="margin-left:18px; text-indent:-15px">Earnings per share attributable to NRG common stockholders: </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Basic </div></td> <td> </td> <td align="right">$</td> <td align="right">1.92</td> <td> </td> <td> </td> <td align="right">$</td> <td align="right">1.08</td> <td> </td> <td> </td> <td align="right">$</td> <td align="right">2.27</td> <td> </td> <td> </td> <td align="right">$</td> <td align="right">2.20</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Diluted </div></td> <td> </td> <td align="right">$</td> <td align="right">1.78</td> <td> </td> <td> </td> <td align="right">$</td> <td align="right">0.97</td> <td> </td> <td> </td> <td align="right">$</td> <td align="right">2.07</td> <td> </td> <td> </td> <td align="right">$</td> <td align="right">1.91</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 2px solid #000000"> </td> </tr>  </table> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     The supplemental pro forma information has been adjusted to include the pro forma impact of amortization of intangible assets and out-of-market contracts, and depreciation of property, plant and equipment, based on the preliminary purchase price allocations. The pro forma data has also been adjusted to eliminate the non-recurring transaction costs incurred by NRG. Transactions between NRG and Reliant Energy have not been eliminated. The pro forma results are presented for illustrative purposes only and do not reflect the realization of potential cost savings, or any related integration costs. Certain cost savings may result from the acquisition; however, there can be no assurance that these cost savings will be achieved. These pro forma results do not purport to be indicative of the results that would have actually been obtained if the acquisition occurred at the beginning of the respective reporting periods, nor does the pro forma data intend to be a projection of results that may be obtained in the future. </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="justify" style="font-size: 10pt; margin-top: 10pt"><b><i>Significant Accounting Policies</i></b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     The following pertains to Reliant Energy, in addition to NRG’s significant accounting policies referred to in Note 1 to this Form 10-Q: </div> <div style="margin-top: 10pt"> <table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left"> <tr valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <td width="1%" style="background: transparent"> </td> <td width="3%" nowrap="nowrap" align="left"><b>•</b></td> <td width="1%"> </td> <td> <div style="text-align: justify"><i>Revenues </i><b>— </b>Gross revenues for energy sales and services to mass customers and to C&I customers are recognized upon delivery under the accrual method. Energy sales and services that have been delivered but not billed by period end are estimated. Gross revenues also includes energy revenues from resales of purchased power and other hedging activities, which were $52 million for the two months ended June 30, 2009. These revenues represent a sale of excess supply to third parties in the market. </div></td> </tr> </table> </div> <div style="margin-top: 10pt"> <table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left"> <tr valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <td width="1%" style="background: transparent"> </td> <td width="3%" nowrap="nowrap" align="left"> </td> <td width="1%"> </td> <td> <div style="text-align: justify">As of June 30, 2009, Reliant Energy recorded unbilled revenues of $433 million for energy sales and services. Accrued unbilled revenues are based on Reliant Energy’s estimates of customer usage since the date of the last meter reading provided by the independent system operators or electric distribution companies. Volume estimates are based on daily forecasted volumes and estimated customer usage by class. Unbilled revenues are calculated by multiplying these volume estimates by the applicable rate by customer class. Estimated amounts are adjusted when actual usage is known and billed. </div></td> </tr> </table> </div> <div style="margin-top: 10pt"> <table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left"> <tr valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <td width="1%" style="background: transparent"> </td> <td width="3%" nowrap="nowrap" align="left"> </td> <td width="1%"> </td> <td> <div style="text-align: justify">The revenues and the related energy supply costs include the estimates of customer usage based on initial usage information provided by the independent system operators and the distribution companies. Reliant Energy revises these estimates and records any changes in the period as additional settlement information becomes available (collectively referred to as market usage adjustments). </div></td> </tr> </table> </div> <div style="margin-top: 10pt"> <table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left"> <tr valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <td width="1%" style="background: transparent"> </td> <td width="3%" nowrap="nowrap" align="left"><b>•</b></td> <td width="1%"> </td> <td> <div style="text-align: justify"><i>Cost of Energy </i><b>— </b>Reliant Energy records cost of energy for electricity sales and services to retail customers based on estimated supply volumes for the applicable reporting period. A portion of its cost of energy ($93 million as of June 30, 2009) consisted of estimated transmission and distribution charges not yet billed by the transmission and distribution utilities. In estimating supply volumes, Reliant Energy considers the effects of historical customer volumes, weather factors and usage by customer class. Reliant Energy estimates its transmission and distribution delivery fees using the same method that it uses for electricity sales and services to retail customers. In addition, Reliant Energy estimates ERCOT ISO fees based on historical trends, estimates supply volumes and initial ERCOT ISO settlements. Volume estimates are then multiplied by the supply rate and recorded as cost of operations in the applicable reporting period. See the discussion above regarding market usage adjustments. </div></td> </tr> </table> </div> <div style="margin-top: 10pt"> <table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left"> <tr valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <td width="1%" style="background: transparent"> </td> <td width="3%" nowrap="nowrap" align="left"><b>•</b></td> <td width="1%"> </td> <td> <div style="text-align: justify"><i>Allowance for Doubtful Accounts </i><b>— </b>Reliant Energy accrues an allowance for doubtful accounts based on estimates of uncollectible revenues by analyzing counterparty credit ratings (for commercial and industrial customers), historical collections, accounts receivable agings and other factors. Reliant Energy writes-off accounts receivable balances against the allowance for doubtful accounts when it determines a receivable is uncollectible. </div></td> </tr> </table> </div> <div style="margin-top: 10pt"> <table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left"> <tr valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <td width="1%" style="background: transparent"> </td> <td width="3%" nowrap="nowrap" align="left"><b>•</b></td> <td width="1%"> </td> <td> <div style="text-align: justify"><i>Gross Receipts Taxes </i><b>— </b>Reliant Energy records gross receipts taxes on a gross basis in revenues and cost of operations in its condensed consolidated statements of operations. During the two months ended June 30, 2009, Reliant Energy’s revenues and cost of operations included gross receipts taxes of $16 million. </div></td> </tr> </table> </div> <div style="margin-top: 10pt"> <table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left"> <tr valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <td width="1%" style="background: transparent"> </td> <td width="3%" nowrap="nowrap" align="left"><b>•</b></td> <td width="1%"> </td> <td> <div style="text-align: justify"><i>Sales Taxes </i><b>— </b>Reliant Energy records sales taxes collected from its taxable customers and remitted to the various governmental entities on a net basis, thus, there is no impact on the Company’s condensed consolidated statement of operations. </div></td> </tr> </table> </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div style="margin-top: 6pt"> <table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left"> </table> </div> </div> </body> </html>

<html> <head></head> <body>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="justify" style="font-size: 10pt; margin-top: 10pt"><b>Note 4 — Investments Accounted for by the Equity Method</b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     <i>MIBRAG </i>— On June 10, 2009, NRG completed the sale of its 50% ownership interest in Mibrag B.V. to a consortium of Severočeské doly Chomutov, a member of the CEZ Group, and J&T Group. Mibrag B.V.’s principal holding is MIBRAG, which is jointly owned by NRG and URS Corporation. As part of the transaction, URS Corporation also entered into an agreement to sell its 50% stake in MIBRAG. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     For its share, NRG received EUR 203 million ($284 million at an exchange rate of 1.40 US$/EUR), net of transaction costs. During the three and six months ended June 30, 2009, NRG recognized an after-tax gain of $128 million. Prior to completion of the sale, NRG continued to record its share of MIBRAG’s operations to “Equity in earnings of unconsolidated affiliates.” </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     In connection with the transaction, NRG entered into a foreign currency forward contract to hedge the impact of exchange rate fluctuations on the sale proceeds. The foreign currency forward contract had a fixed exchange rate of 1.277 and required NRG to deliver EUR 200 million in exchange for $255 million on June 15, 2009. For the three and six months ended June 30, 2009, NRG recorded an exchange loss of $15 million and $24 million, respectively, on the contract within “Other (loss)/income, net.” </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     NRG provided certain indemnities in connection with its share of the transaction. See Note 17, <i>Guarantees, </i>to this Form 10-Q for further discussion. </div> </div> </body> </html>

<html> <head></head> <body>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="justify" style="font-size: 10pt; margin-top: 20pt"><b>Note 5 — Fair Value of Financial Instruments</b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     The estimated carrying values and fair values of NRG’s recorded financial instruments are as follows: </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="52%"> </td> <td width="5%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td style="border-bottom: 1px solid #000000"> </td> <td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>Carrying Amount</b></td> <td style="border-bottom: 1px solid #000000"> </td> <td style="border-bottom: 1px solid #000000"> </td> <td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>Fair Value</b></td> <td style="border-bottom: 1px solid #000000"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>December 31,</b></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>December 31,</b></td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td style="border-bottom: 1px solid #000000"> </td> <td style="border-bottom: 1px solid #000000"> </td> <td style="border-bottom: 1px solid #000000"> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>June 30, 2009</b></td> <td style="border-bottom: 1px solid #000000"> </td> <td style="border-bottom: 1px solid #000000"> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2008</b></td> <td style="border-bottom: 1px solid #000000"> </td> <td style="border-bottom: 1px solid #000000"> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>June 30, 2009</b></td> <td style="border-bottom: 1px solid #000000"> </td> <td style="border-bottom: 1px solid #000000"> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2008</b></td> <td style="border-bottom: 1px solid #000000"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6"><b>(In millions)</b></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr>   <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:18px; text-indent:-15px">Cash and cash equivalents </div></td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">2,282</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">1,494</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">2,282</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">1,494</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:18px; text-indent:-15px">Funds deposited by counterparties </div></td> <td> </td> <td> </td> <td> </td> <td align="right">468</td> <td> </td> <td> </td> <td> </td> <td align="right">754</td> <td> </td> <td> </td> <td> </td> <td align="right">468</td> <td> </td> <td> </td> <td> </td> <td align="right">754</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:18px; text-indent:-15px">Restricted cash </div></td> <td> </td> <td> </td> <td> </td> <td align="right">19</td> <td> </td> <td> </td> <td> </td> <td align="right">16</td> <td> </td> <td> </td> <td> </td> <td align="right">19</td> <td> </td> <td> </td> <td> </td> <td align="right">16</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:18px; text-indent:-15px">Cash collateral paid in support of energy risk management activities </div></td> <td> </td> <td> </td> <td> </td> <td align="right">243</td> <td> </td> <td> </td> <td> </td> <td align="right">494</td> <td> </td> <td> </td> <td> </td> <td align="right">243</td> <td> </td> <td> </td> <td> </td> <td align="right">494</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:18px; text-indent:-15px">Investment in available-for-sale securities (classified within other non-current assets): </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:18px; text-indent:-15px">Debt securities </div></td> <td> </td> <td> </td> <td> </td> <td align="right">7</td> <td> </td> <td> </td> <td> </td> <td align="right">7</td> <td> </td> <td> </td> <td> </td> <td align="right">7</td> <td> </td> <td> </td> <td> </td> <td align="right">7</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:18px; text-indent:-15px">Marketable equity securities </div></td> <td> </td> <td> </td> <td> </td> <td align="right">4</td> <td> </td> <td> </td> <td> </td> <td align="right">2</td> <td> </td> <td> </td> <td> </td> <td align="right">4</td> <td> </td> <td> </td> <td> </td> <td align="right">2</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:18px; text-indent:-15px">Trust fund investments </div></td> <td> </td> <td> </td> <td> </td> <td align="right">318</td> <td> </td> <td> </td> <td> </td> <td align="right">305</td> <td> </td> <td> </td> <td> </td> <td align="right">318</td> <td> </td> <td> </td> <td> </td> <td align="right">305</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:18px; text-indent:-15px">Notes receivable </div></td> <td> </td> <td> </td> <td> </td> <td align="right">190</td> <td> </td> <td> </td> <td> </td> <td align="right">156</td> <td> </td> <td> </td> <td> </td> <td align="right">204</td> <td> </td> <td> </td> <td> </td> <td align="right">166</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:18px; text-indent:-15px">Derivative assets </div></td> <td> </td> <td> </td> <td> </td> <td align="right">5,582</td> <td> </td> <td> </td> <td> </td> <td align="right">5,485</td> <td> </td> <td> </td> <td> </td> <td align="right">5,582</td> <td> </td> <td> </td> <td> </td> <td align="right">5,485</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:18px; text-indent:-15px">Long-term debt, including current portion </div></td> <td> </td> <td> </td> <td> </td> <td align="right">8,619</td> <td> </td> <td> </td> <td> </td> <td align="right">8,019</td> <td> </td> <td> </td> <td> </td> <td align="right">8,267</td> <td> </td> <td> </td> <td> </td> <td align="right">7,475</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:18px; text-indent:-15px">Cash collateral received in support of energy risk management activities </div></td> <td> </td> <td> </td> <td> </td> <td align="right">468</td> <td> </td> <td> </td> <td> </td> <td align="right">760</td> <td> </td> <td> </td> <td> </td> <td align="right">468</td> <td> </td> <td> </td> <td> </td> <td align="right">760</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:18px; text-indent:-15px">Derivative liabilities </div></td> <td> </td> <td> </td> <td> </td> <td align="right">5,102</td> <td> </td> <td> </td> <td> </td> <td align="right">4,489</td> <td> </td> <td> </td> <td> </td> <td align="right">5,102</td> <td> </td> <td> </td> <td> </td> <td align="right">4,489</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="18" align="left" style="border-top: 2px solid #000000"> </td> </tr>  </table> </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 1%"><b><i>Recurring Fair Value Measurements</i></b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     The following table presents assets and liabilities measured and recorded at fair value on the Company’s condensed consolidated balance sheet on a recurring basis and their level within the fair value hierarchy: </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom" style="font-size: 18pt"> <td width="60%"> </td> <td width="5%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="2%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="2%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="2%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td nowrap="nowrap" align="left"><b>(In millions)</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="15" style="border-bottom: 1px solid #000000"><b>Fair Value</b></td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td nowrap="nowrap" align="left"><b>As of June 30, 2009</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Level 1</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Level 2</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Level 3</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Total</b></td> <td> </td> </tr>   <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:17px; text-indent:-13px">Cash and cash equivalents </div></td> <td> </td> <td align="right">$ </td> <td align="right">2,282</td> <td> </td> <td> </td> <td align="right">$ </td> <td align="right">—</td> <td> </td> <td> </td> <td align="right">$ </td> <td align="right">—</td> <td> </td> <td> </td> <td align="right">$ </td> <td align="right">2,282</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:17px; text-indent:-13px">Funds deposited by counterparties </div></td> <td> </td> <td> </td> <td align="right">468</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">468</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:17px; text-indent:-13px">Restricted cash </div></td> <td> </td> <td> </td> <td align="right">19</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">19</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:17px; text-indent:-13px">Cash collateral paid in support of energy risk management activities </div></td> <td> </td> <td> </td> <td align="right">243</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">243</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:17px; text-indent:-13px">Investment in available-for-sale securities (classified within other non-current assets): </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Debt securities </div></td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">7</td> <td> </td> <td> </td> <td> </td> <td align="right">7</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Marketable equity securities </div></td> <td> </td> <td> </td> <td align="right">4</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">4</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:17px; text-indent:-13px">Trust fund investments </div></td> <td> </td> <td> </td> <td align="right">183</td> <td> </td> <td> </td> <td> </td> <td align="right">101</td> <td> </td> <td> </td> <td> </td> <td align="right">34</td> <td> </td> <td> </td> <td> </td> <td align="right">318</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:17px; text-indent:-13px">Derivative assets </div></td> <td> </td> <td> </td> <td align="right">1,063</td> <td> </td> <td> </td> <td> </td> <td align="right">4,394</td> <td> </td> <td> </td> <td> </td> <td align="right">125</td> <td> </td> <td> </td> <td> </td> <td align="right">5,582</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:45px; text-indent:-15px">Total assets </div></td> <td> </td> <td align="right">$ </td> <td align="right">4,262</td> <td> </td> <td> </td> <td align="right">$ </td> <td align="right">4,495</td> <td> </td> <td> </td> <td align="right">$ </td> <td align="right">166</td> <td> </td> <td> </td> <td align="right">$ </td> <td align="right">8,923</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:17px; text-indent:-13px">Cash collateral received in support of energy risk management activities </div></td> <td> </td> <td align="right">$ </td> <td align="right">468</td> <td> </td> <td> </td> <td align="right">$ </td> <td align="right">—</td> <td> </td> <td> </td> <td align="right">$ </td> <td align="right">—</td> <td> </td> <td> </td> <td align="right">$ </td> <td align="right">468</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:17px; text-indent:-13px">Derivative liabilities </div></td> <td> </td> <td> </td> <td align="right">1,043</td> <td> </td> <td> </td> <td> </td> <td align="right">3,984</td> <td> </td> <td> </td> <td> </td> <td align="right">75</td> <td> </td> <td> </td> <td> </td> <td align="right">5,102</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:45px; text-indent:-15px">Total liabilities </div></td> <td> </td> <td align="right">$ </td> <td align="right">1,511</td> <td> </td> <td> </td> <td align="right">$ </td> <td align="right">3,984</td> <td> </td> <td> </td> <td align="right">$ </td> <td align="right">75</td> <td> </td> <td> </td> <td align="right">$ </td> <td align="right">5,570</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 2px solid #000000"> </td> </tr>  </table> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     The following table reconciles, for the six months ended June 30, 2009, the beginning and ending balances for financial instruments that are recognized at fair value in the consolidated financial statements using significant unobservable inputs: </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="52%"> </td> <td width="2%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="5%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="5%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="5%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td nowrap="nowrap" align="center" colspan="16"><b>Fair Value Measurement Using Significant Unobservable Inputs</b></td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td nowrap="nowrap" align="center" colspan="16" style="border-bottom: 1px solid #000000"><b>(Level 3)</b> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td nowrap="nowrap" align="left"><b>(In millions)</b></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Trust Fund</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td nowrap="nowrap" align="left"><b>Six months ended June 30, 2009</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Debt Securities</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Investments</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Derivatives</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Total</b></td> </tr>   <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:17px; text-indent:-13px">Beginning balance as of January 1, 2009 </div></td> <td> </td> <td align="right">$  </td> <td align="right">7</td> <td> </td> <td> </td> <td align="right">$  </td> <td align="right">31</td> <td> </td> <td> </td> <td align="right">$  </td> <td align="right">49</td> <td> </td> <td> </td> <td align="right">$  </td> <td align="right">87</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Total gains/(losses) (realized and unrealized) </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:45px; text-indent:-15px">Included in earnings </div></td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(30</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(30</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:45px; text-indent:-15px">Included in nuclear decommissioning obligations </div></td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">2</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">2</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Purchases/(sales), net </div></td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">1</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(4</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">(3</td> <td>)</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Transfer into Level 3 </div></td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">35</td> <td> </td> <td> </td> <td> </td> <td align="right">35</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:17px; text-indent:-13px"><b>Ending balance as of June 30, 2009</b> </div></td> <td> </td> <td align="right">$  </td> <td align="right">7</td> <td> </td> <td> </td> <td align="right">$  </td> <td align="right">34</td> <td> </td> <td> </td> <td align="right">$  </td> <td align="right">50</td> <td> </td> <td> </td> <td align="right">$  </td> <td align="right">91</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:17px; text-indent:-13px">The amount of the total gains for the period included in earnings attributable to the change in unrealized gains relating to assets still held as of June 30, 2009 </div></td> <td> </td> <td align="right">$  </td> <td align="right">—</td> <td> </td> <td> </td> <td align="right">$  </td> <td align="right">—</td> <td> </td> <td> </td> <td align="right">$  </td> <td align="right">28</td> <td> </td> <td> </td> <td align="right">$  </td> <td align="right">28</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 2px solid #000000"> </td> </tr>  </table> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     Realized and unrealized gains and losses included in earnings that are related to the energy derivatives are recorded in operating revenues and cost of operations. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     In determining the fair value of NRG’s Level 2 and 3 derivative contracts, NRG applies a credit reserve to reflect credit risk which is calculated based on credit default swaps. As of June 30, 2009, the credit reserve resulted in a $23 million increase in fair value which is composed of a $1 million loss in OCI and a $24 million gain in operating revenue and cost of operations. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     This footnote should be read in conjunction with the complete description under Note 4, <i>Fair Value of Financial Instruments</i>, to the Company’s financial statements in its 2008 Annual Report on Form 10-K. </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> </div> </body> </html>  <html> <head></head> <body>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="justify" style="font-size: 10pt; margin-top: 12pt"><b>Note 6 — Accounting for Derivative Instruments and Hedging Activities</b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     SFAS 133 requires NRG to recognize all derivative instruments on the balance sheet as either assets or liabilities and to measure them at fair value each reporting period unless they qualify for a Normal Purchase Normal Sale, or NPNS, exception. If certain conditions are met, NRG may be able to designate certain derivatives as cash flow hedges and defer the effective portion of the change in fair value of the derivatives to other comprehensive income, or OCI, until the hedged transactions occur and are recognized in earnings. The ineffective portion of a cash flow hedge is immediately recognized in earnings. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     For derivatives designated as hedges of the fair value of assets or liabilities, the changes in fair value of both the derivative and the hedged transaction are recorded in current earnings. The ineffective portion of a hedging derivative instrument’s change in fair value is immediately recognized into earnings. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     For derivatives that are not designated as cash flow hedges or do not qualify for hedge accounting treatment, the changes in the fair value will be immediately recognized in earnings. Under the guidelines established per SFAS 133, certain derivative instruments may qualify for the NPNS exception and are therefore exempt from fair value accounting treatment. SFAS 133 applies to NRG’s energy related commodity contracts, interest rate swaps, and foreign exchange contracts. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     As the Company engages principally in the trading and marketing of its generation assets and retail business, some of NRG’s commercial activities qualify for hedge accounting under the requirements of SFAS 133. In order for the generation assets to qualify, the physical generation and sale of electricity should be highly probable at inception of the trade and throughout the period it is held, as is the case with the Company’s baseload plants. For this reason, many trades in support of NRG’s baseload units normally qualify for NPNS or cash flow hedge accounting treatment, and trades in support of NRG’s peaking units will generally not qualify for hedge accounting treatment, with any changes in fair value likely to be reflected on a mark-to-market basis in the statement of operations. Most of the retail load contracts either qualify for the NPNS exception or fail to meet the criteria for a derivative and the majority of the supply contracts are recorded under mark-to-market accounting. All of NRG’s hedging and trading activities are in accordance with the Company’s Risk Management Policy. </div> <div align="justify" style="font-size: 10pt; margin-top: 12pt"><b><i>Energy-Related Commodities</i></b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     To manage the commodity price risk associated with the Company’s competitive supply activities and the price risk associated with wholesale and retail power sales from the Company’s electric generation facilities, NRG may enter into a variety of derivative and non-derivative hedging instruments, utilizing the following: </div> <div style="margin-top: 10pt"> <table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left"> <tr valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <td width="2%" style="background: transparent"> </td> <td width="2%" nowrap="nowrap" align="left"><b>•</b></td> <td width="1%"> </td> <td> <div style="text-align: justify">Forward contracts, which commit NRG to sell or purchase energy commodities or purchase fuels in the future. </div></td> </tr> </table> </div> <div style="margin-top: 10pt"> <table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left"> <tr valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <td width="2%" style="background: transparent"> </td> <td width="2%" nowrap="nowrap" align="left"><b>•</b></td> <td width="1%"> </td> <td> <div style="text-align: justify">Futures contracts, which are exchange-traded standardized commitments to purchase or sell a commodity or financial instrument. </div></td> </tr> </table> </div> <div style="margin-top: 10pt"> <table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left"> <tr valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <td width="2%" style="background: transparent"> </td> <td width="2%" nowrap="nowrap" align="left"><b>•</b></td> <td width="1%"> </td> <td> <div style="text-align: justify">Swap agreements, which require payments to or from counter-parties based upon the differential between two prices for a predetermined contractual, or notional, quantity. </div></td> </tr> </table> </div> <div style="margin-top: 10pt"> <table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left"> <tr valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <td width="2%" style="background: transparent"> </td> <td width="2%" nowrap="nowrap" align="left"><b>•</b></td> <td width="1%"> </td> <td> <div style="text-align: justify">Option contracts, which convey the right or obligation to buy or sell a commodity. </div></td> </tr> </table> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     The objectives for entering into derivative contracts designated as hedges include: </div> <div style="margin-top: 10pt"> <table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left"> <tr valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <td width="2%" style="background: transparent"> </td> <td width="2%" nowrap="nowrap" align="left"><b>•</b></td> <td width="1%"> </td> <td> <div style="text-align: justify">Fixing the price for a portion of anticipated future electricity sales through the use of various derivative instruments including gas collars and swaps at a level that provides an acceptable return on the Company’s electric generation operations. </div></td> </tr> </table> </div> <div style="margin-top: 10pt"> <table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left"> <tr valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <td width="2%" style="background: transparent"> </td> <td width="2%" nowrap="nowrap" align="left"><b>•</b></td> <td width="1%"> </td> <td> <div style="text-align: justify">Fixing the price of a portion of anticipated fuel purchases for the operation of NRG’s power plants. </div></td> </tr> </table> </div> <div style="margin-top: 10pt"> <table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left"> <tr valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <td width="2%" style="background: transparent"> </td> <td width="2%" nowrap="nowrap" align="left"><b>•</b></td> <td width="1%"> </td> <td> <div style="text-align: justify">Fixing the price of a portion of anticipated energy purchases to supply Reliant Energy’s customers. </div></td> </tr> </table> </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div style="margin-top: 6pt"> <table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left"> </table> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     NRG’s trading activities include contracts entered into to profit from market price changes as opposed to hedging an exposure, and are subject to limits in accordance with the Company’s risk management policy. These contracts are recognized on the balance sheet at fair value and changes in the fair value of these derivative financial instruments are recognized in earnings. These trading activities are a complement to NRG’s competitive wholesale supply and retail operations. </div> <div align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 1%"><b><i>Interest Rate Swaps</i></b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     NRG is exposed to changes in interest rates through the Company’s issuance of variable and fixed rate debt. In order to manage the Company’s interest rate risk, NRG enters into interest-rate swap agreements. As of June 30, 2009, NRG had interest rate derivative instruments extending through June 2019, all of which had been designated as either cash flow or fair value hedges. </div> <div align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 1%"><b>Volumetric Underlying Derivative Transactions</b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     The following table summarizes the net notional volume buy/(sell) of NRG’s derivative transactions broken out by commodity, excluding those derivatives that qualified for the NPNS exception as of June 30, 2009. Option contracts are reflected using delta volume. Delta volume equals the notional volume of an option adjusted for the probability that the option will be in-the-money at its expiration date. </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="15%"> </td> <td width="5%"> </td> <td width="70%"> </td> <td width="5%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Total Volume as</b></td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>of June 30, 2009</b></td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td nowrap="nowrap" align="left"> <div style="margin-left:17px; text-indent:-13px"><b>Commodity</b> </div></td> <td> </td> <td nowrap="nowrap" align="left"><b>Units</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>(In millions)</b></td> </tr>   <tr style="font-size: 1px"> <td colspan="7" valign="top" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="top"> <div style="margin-left:17px; text-indent:-13px">Coal </div></td> <td> </td> <td> <div style="margin-left:15px; text-indent:-15px">Short Ton </div></td> <td> </td> <td> </td> <td align="right">67</td> <td> </td> </tr> <tr valign="bottom"> <td align="left" valign="top"> <div style="margin-left:17px; text-indent:-13px">Natural Gas </div></td> <td> </td> <td> <div style="margin-left:17px; text-indent:-17px">MMBtu </div></td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(572</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="left" valign="top"> <div style="margin-left:17px; text-indent:-13px">Power<sup style="font-size: 85%; vertical-align: text-top">(a<b>)</b></sup> </div></td> <td> </td> <td> <div style="margin-left:17px; text-indent:-17px">MWH </div></td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(30</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom"> <td align="left" valign="top"> <div style="margin-left:17px; text-indent:-13px">Interest </div></td> <td> </td> <td> <div style="margin-left:15px; text-indent:-15px">Dollars </div></td> <td> </td> <td align="right">$  </td> <td align="right">3,306</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="7" valign="top" align="left" style="border-top: 2px solid #000000"> </td> </tr>  </table> </div> <table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left"> <tr style="font-size: 10pt"> <td width="3%"> </td> <td width="1%"> </td> <td width="96"> </td> </tr> <tr valign="top"> <td nowrap="nowrap" align="left"><sup style="font-size: 85%; vertical-align: text-top">(a)</sup></td> <td> </td> <td> <div style="text-align: justify"><i>Power volumes include capacity sales.</i> </div></td> </tr> </table> <div align="justify" style="font-size: 10pt; margin-top: 12pt"><b>Fair Value of Derivative Instruments</b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     The following table summarizes the fair value within the derivative instrument valuation on the balance sheet as of June 30, 2009: </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="76%"> </td> <td width="5%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="5%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>Fair Value</b></td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td nowrap="nowrap" align="left"><b>(In millions)</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Derivatives Asset</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Derivatives Liability</b></td> </tr>   <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:17px; text-indent:-13px"><b>Derivatives Designated as Cash Flow or Fair Value Hedges</b>: </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Interest rate contracts current </div></td> <td> </td> <td align="right">$  </td> <td align="right">—</td> <td> </td> <td> </td> <td align="right">$  </td> <td align="right">6</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Interest rate contracts long term </div></td> <td> </td> <td> </td> <td align="right">11</td> <td> </td> <td> </td> <td> </td> <td align="right">119</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Commodity contracts current </div></td> <td> </td> <td> </td> <td align="right">337</td> <td> </td> <td> </td> <td> </td> <td align="right">7</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Commodity contracts long term </div></td> <td> </td> <td> </td> <td align="right">414</td> <td> </td> <td> </td> <td> </td> <td align="right">47</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:17px; text-indent:-13px"><b>Total Derivatives Designated as Cash Flow or Fair Value Hedges</b> </div></td> <td> </td> <td> </td> <td align="right">762</td> <td> </td> <td> </td> <td> </td> <td align="right">179</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:17px; text-indent:-13px"><b>Derivatives Not Designated as Cash Flow or Fair Value Hedges</b>: </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Commodity contracts current </div></td> <td> </td> <td> </td> <td align="right">4,057</td> <td> </td> <td> </td> <td> </td> <td align="right">4,183</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Commodity contracts long term </div></td> <td> </td> <td> </td> <td align="right">763</td> <td> </td> <td> </td> <td> </td> <td align="right">740</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:17px; text-indent:-13px"><b>Total Derivatives Not Designated as Cash Flow or Fair Value Hedges</b> </div></td> <td> </td> <td> </td> <td align="right">4,820</td> <td> </td> <td> </td> <td> </td> <td align="right">4,923</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:17px; text-indent:-13px"><b>Total Derivatives</b> </div></td> <td> </td> <td align="right">$  </td> <td align="right">5,582</td> <td> </td> <td> </td> <td align="right">$  </td> <td align="right">5,102</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 2px solid #000000"> </td> </tr>  </table> </div> <div align="justify" style="font-size: 10pt; margin-top: 12pt"><b>Impact of Derivative Instruments on the Statement of Financial Performance</b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     The following table summarizes the amount of gain/(loss) resulting from fair value hedges reflected in interest income/(expense) for interest rate contracts: </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom" style="font-size: 18pt" > <td width="76%"> </td> <td width="5%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="5%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td nowrap="nowrap" align="left"><b>Amount of gain/(loss) recognized</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Three months ended </b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Six months ended</b></td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td nowrap="nowrap" align="left"><b>(In millions)</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>June 30, 2009</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>June 30, 2009</b></td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 1px double #000000"> </td> </tr>   <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Derivative </div></td> <td> </td> <td nowrap="nowrap" align="right">$  </td> <td align="right">(7</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="right">$  </td> <td align="right">(8</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Senior Notes (hedged item) </div></td> <td> </td> <td align="right">$  </td> <td align="right">7</td> <td> </td> <td> </td> <td align="right">$  </td> <td align="right">8</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 2px solid #000000"> </td> </tr>  </table> </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     The following table summarizes the location and amount of gain/(loss) resulting from cash flow hedges: </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="30%"> </td> <td width="5%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="5%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="5%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="5%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="5%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Location of</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Amount of</b></td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Amount of</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Location of</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Amount of</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>gain/(loss)</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>gain/(loss)</b></td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>gain/(loss)</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>gain/(loss)</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>gain/(loss)</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>recognized in</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>recognized in</b></td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>recognized in OCI</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>reclassified from</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>reclassified from</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>income</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>income</b></td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td nowrap="nowrap" align="left"><b>(In millions)</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>(effective portion)</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Accumulated</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Accumulated</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>(ineffective</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>(ineffective</b></td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td nowrap="nowrap" align="left"><b>Three months ended June 30, 2009</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>after tax</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>OCI into Income</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>OCI into Income</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>portion)</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>portion)</b></td> </tr>   <tr style="font-size: 1px"> <td colspan="21" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:17px; text-indent:-13px">Interest rate contracts </div></td> <td> </td> <td align="right">$  </td> <td align="right">13</td> <td> </td> <td> </td> <td colspan="3" align="center" nowrap="nowrap">Interest expense</td> <td> </td> <td align="right">$  </td> <td align="right">1</td> <td> </td> <td> </td> <td colspan="3" align="center" nowrap="nowrap">Interest expense</td> <td> </td> <td align="right">$  </td> <td align="right">—</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:17px; text-indent:-13px">Commodity contracts </div></td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(122</td> <td nowrap="nowrap">)</td> <td> </td> <td colspan="3" align="center" nowrap="nowrap">Operating revenue</td> <td> </td> <td> </td> <td align="right">76</td> <td> </td> <td> </td> <td colspan="3" align="center" nowrap="nowrap">Operating revenue</td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(3</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="21" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:17px; text-indent:-13px">Total </div></td> <td> </td> <td nowrap="nowrap" align="right">$  </td> <td align="right">(109</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td align="right">$  </td> <td align="right">77</td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="right">$  </td> <td align="right">(3</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="21" align="left" style="border-top: 2px solid #000000"> </td> </tr> <tr valign="bottom"> <td width="30%"> </td> <td width="5%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="5%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="5%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="5%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="5%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Location of</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Amount of</b></td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Amount of</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Location of</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Amount of</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>gain/(loss)</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>gain/(loss)</b></td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>gain/(loss)</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>gain/(loss)</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>gain/(loss)</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>recognized in</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>recognized in</b></td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>recognized in OCI</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>reclassified from</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>reclassified from</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>income</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>income</b></td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td nowrap="nowrap" align="left"><b>(In millions)</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>(effective portion)</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Accumulated</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Accumulated</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>(ineffective</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>(ineffective</b></td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td nowrap="nowrap" align="left"><b>Six months ended June 30, 2009</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>after tax</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>OCI into Income</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>OCI into Income</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>portion)</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>portion)</b></td> </tr>   <tr style="font-size: 1px"> <td colspan="21" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:17px; text-indent:-13px">Interest rate contracts </div></td> <td> </td> <td align="right">$  </td> <td align="right">25</td> <td> </td> <td> </td> <td colspan="3" align="center" nowrap="nowrap">Interest expense</td> <td> </td> <td align="right">$  </td> <td align="right">—</td> <td> </td> <td> </td> <td colspan="3" align="center" nowrap="nowrap">Interest expense</td> <td> </td> <td align="right">$  </td> <td align="right">—</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:17px; text-indent:-13px">Commodity contracts </div></td> <td> </td> <td> </td> <td align="right">39</td> <td> </td> <td> </td> <td colspan="3" align="center" nowrap="nowrap">Operating revenue</td> <td> </td> <td> </td> <td align="right">323</td> <td> </td> <td> </td> <td colspan="3" align="center" nowrap="nowrap">Operating revenue</td> <td> </td> <td> </td> <td align="right">1</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="21" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:17px; text-indent:-13px">Total </div></td> <td> </td> <td align="right">$  </td> <td align="right">64</td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td align="right">$  </td> <td align="right">323</td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td align="right">$  </td> <td align="right">1</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="21" align="left" style="border-top: 2px solid #000000"> </td> </tr>  </table> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     The following table summarizes the amount of gain/(loss) recognized in income for derivatives not designated as cash flow or fair value hedges on commodity contracts: </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="88%"> </td> <td width="5%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="5%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td nowrap="nowrap" align="left"><b>Amount of gain/(loss) recognized in income or cost of operations for derivatives</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Three months ended</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Six months ended</b></td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td nowrap="nowrap" align="left"><b>(In millions)</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>June 30, 2009</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>June 30, 2009</b></td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 1px solid #000000"> </td> </tr>   <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:17px; text-indent:-13px">Location of gain/(loss) recognized in income for derivatives: </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Operating revenue </div></td> <td> </td> <td nowrap="nowrap" align="right">$ </td> <td align="right">(207</td> <td nowrap="nowrap">)</td> <td> </td> <td align="right">$ </td> <td align="right">116</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Cost of operations </div></td> <td> </td> <td align="right">$ </td> <td align="right">325</td> <td> </td> <td> </td> <td align="right">$ </td> <td align="right">273</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 2px solid #000000"> </td> </tr>  </table> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     <b>Credit Risk Related Contingent Features</b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     Certain of the Company’s hedging agreements contain provisions that require the Company to post additional collateral if the counterparty determines that there has been deterioration in credit quality, generally termed “adequate assurance” under the agreements. Other agreements contain provisions that require the Company to post additional collateral if there was a one notch downgrade in the Company’s credit rating. There are certain marginable agreements where NRG has a net liability position but the counterparty has not called for the collateral due, which was approximately $87 million as of June 30, 2009. The aggregate fair value of all derivative instruments with credit rating contingent features that are in a net liability position as of June 30, 2009 was $54 million. The aggregate fair value of all derivative instruments that have adequate assurance clauses that are in a net liability position as of June 30, 2009 was $18 million. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     Under the CSRA, Merrill Lynch provides guarantees and the posting of collateral to the Company’s counterparties in supply transactions for the Company’s retail energy business. In the event of any unwind of the CSRA with Merrill Lynch, NRG will have to post collateral for any existing out-of-money hedging transactions that support the retail operation. The level of collateral posting would be determined based on the timing of the unwind, and the volume and pricing of the commodity hedging agreements. As of June 30, 2009, Merrill Lynch was providing $630 million in credit support to various counterparties. If Merrill Lynch experiences credit deterioration, NRG’s suppliers may require varying collateral amounts depending on Merrill Lynch’s credit rating, not to exceed $630 million. </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="justify" style="font-size: 10pt; margin-top: 10pt">   <b><i>Concentration of Credit Risk</i></b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     Credit risk relates to the risk of loss resulting from non-performance or non-payment by counterparties pursuant to the terms of their contractual obligations. The Company monitors and manages credit risk through credit policies that include: (i) an established credit approval process; (ii) a daily monitoring of counterparties’ credit limits; (iii) the use of credit mitigation measures such as margin, collateral, credit derivatives or prepayment arrangements; (iv) the use of payment netting agreements; and (v) the use of master netting agreements that allow for the netting of positive and negative exposures of various contracts associated with a single counterparty. Risks surrounding counterparty performance and credit could ultimately impact the amount and timing of expected cash flows. The Company seeks to mitigate counterparty risk with a diversified portfolio of counterparties, including ten participants under its first and second lien structure. The Company also has credit protection within various agreements to call on additional collateral support if and when necessary. Cash margin is collected and held at NRG to cover the credit risk of the counterparty until positions settle. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     Under the current economic downturn in the U.S. and overseas, the Company has heightened its management and mitigation of counterparty credit risk by using credit limits, netting agreements, collateral thresholds, volumetric limits and other mitigation measures, where available. NRG avoids concentration of counterparties whenever possible and applies credit policies that include an evaluation of counterparties’ financial condition, collateral requirements and the use of standard agreements that allow for netting and other security. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     As of June 30, 2009, total credit exposure to substantially all counterparties was $2.1 billion and NRG held collateral (cash and letters of credit) against those positions of $469 million resulting in a net exposure of $1.7 billion, compared with a net exposure of $1.3 billion as of March 31, 2009. This increase is due to Merrill Lynch’s position as credit provider to Reliant Energy and the exposure resulting from novated trades that were completed as part of the acquisition of Reliant Energy, as discussed in Note 3 — <i>Business Acquisition</i>. Total credit exposure is discounted at the risk free rate. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     The following table highlights the credit quality and the net counterparty credit exposure by industry sector. Net counterparty credit exposure is defined as the aggregate net asset position for NRG with counterparties where netting is permitted under the enabling agreement and includes all cash flow, mark-to-market and normal purchase and sale, and non-derivative transactions. The exposure is shown net of collateral held, includes amounts net of receivables or payables and excludes non-affiliate third party exposure under the CSRA. </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="88%"> </td> <td width="5%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Net Exposure</b><sup style="font-size: 85%; vertical-align: text-top"><b>(a)</b></sup> <sup style="font-size: 85%; vertical-align: text-top"><b>(b)</b></sup><b> as of</b></td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>June 30, 2009</b></td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td nowrap="nowrap" align="left"> <div style="margin-left:17px; text-indent:-13px"><b>Category</b> </div></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>(% of Total)</b></td> </tr>   <tr style="font-size: 1px"> <td colspan="5" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:17px; text-indent:-13px">Financial institutions </div></td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">82</td> <td nowrap="nowrap">%</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:17px; text-indent:-13px">Utilities, energy, merchants, marketers and other </div></td> <td> </td> <td> </td> <td align="right">14</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:17px; text-indent:-13px">Coal suppliers </div></td> <td> </td> <td> </td> <td align="right">2</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:17px; text-indent:-13px">ISOs </div></td> <td> </td> <td> </td> <td align="right">2</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="5" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-13px">Total </div></td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">100</td> <td nowrap="nowrap">%</td> </tr> <tr style="font-size: 1px"> <td colspan="5" align="left" style="border-top: 2px solid #000000"> </td> </tr>  </table> </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="88%"> </td> <td width="5%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Net Exposure</b><sup style="font-size: 85%; vertical-align: text-top"><b>(a)</b></sup> <sup style="font-size: 85%; vertical-align: text-top"><b>(b)</b></sup><b> as of</b></td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>June 30, 2009</b></td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td nowrap="nowrap" align="left"> <div style="margin-left:17px; text-indent:-13px"><b>Category</b> </div></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>(% of Total)</b></td> </tr>   <tr style="font-size: 1px"> <td colspan="5" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:17px; text-indent:-13px">Investment grade </div></td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">94</td> <td nowrap="nowrap">%</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:17px; text-indent:-13px">Non-Investment grade </div></td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:17px; text-indent:-13px">Non-rated </div></td> <td> </td> <td> </td> <td align="right">6</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="5" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Total </div></td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">100</td> <td nowrap="nowrap">%</td> </tr> <tr style="font-size: 1px"> <td colspan="5" align="left" style="border-top: 2px solid #000000"> </td> </tr>  </table> </div> <div align="left"> <div style="font-size: 3pt; margin-top: 10pt; width: 10%; border-top: 0px solid #000000">  </div> </div> <table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 8pt; text-align: left"> <tr> <td width="3%"></td> <td width="1%"></td> <td width="96"></td> </tr> <tr valign="top"> <td nowrap="nowrap" align="left"><sup style="font-size: 85%; vertical-align: text-top">(a)</sup></td> <td> </td> <td> <div style="text-align: justify"><i>Credit exposure excludes California tolling,</i> <i>uranium, coal transportation, New England Reliability Must-Run, cooperative load contracts, and Texas Westmoreland coal contracts. The aforementioned exposures were excluded for various reasons including regulatory support or liens held against the contracts which serve to reduce the risk of loss, or credit risks for certain contracts are not readily measurable due to a lack of market reference prices.</i> </div></td> </tr> <tr style="font-size: 0pt"> <td> </td> </tr> <tr valign="top"> <td nowrap="nowrap" align="left"><sup style="font-size: 85%; vertical-align: text-top">(b)</sup></td> <td> </td> <td> <div style="text-align: justify"><i>The exposure amounts presented in the above table</i> <i>do not include non-affiliate third party exposure under the CSRA. The gross credit exposure to third parties under the CSRA is $410 million, and the cash collateral held by Merrill Lynch against this exposure is $312 million.</i> </div></td> </tr> </table>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     NRG has credit risk exposure to certain counterparties representing more than 10% of total net exposure and the aggregate of such counterparties was $707 million. NRG has significant credit risk concentration with Merrill Lynch primarily due to cash collateral held by Merrill Lynch for positions under the CSRA. NRG expects this risk to be significantly reduced when the Company unwinds the CSRA. Approximately 85% of NRG’s positions relating to credit risk roll-off by the end of 2011. Changes in hedge positions and market prices will affect credit exposure and counterparty concentration. Given the credit quality, diversification and term of the exposure in the portfolio, NRG does not anticipate a material impact on the Company’s financial results from nonperformance by a counterparty. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     NRG is exposed to retail credit risk through our competitive electricity supply business, which serves commercial and industrial customers and the mass market in Texas. Retail credit risk results when a customer fails to pay for services rendered. The losses could be incurred from nonpayment of customer accounts receivable and any in-the-money forward value. NRG manages retail credit risk through the use of established credit policies that include monitoring of the portfolio, and the use of credit mitigation measures such as deposits or prepayment arrangement. Retail credit risk is dependent on the overall economy, but is minimized due to the fact that NRG’s portfolio of retail customers is largely diversified, with no significant single name concentration. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 1%"><b><i>Accumulated Other Comprehensive Income</i></b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     The following table summarizes the effects of SFAS 133 on NRG’s accumulated OCI balance attributable to hedged derivatives, net of tax: </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="62%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="2%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="2%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td nowrap="nowrap" align="left"><b>  (In millions)</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Energy</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Interest</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td nowrap="nowrap" align="left"><b>  Three months ended June 30, 2009</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Commodities</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Rate</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Total</b></td> </tr>   <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:20px; text-indent:-15px">Accumulated OCI balance at March 31, 2009 </div></td> <td> </td> <td align="right" nowrap="nowrap">$</td> <td align="right" nowrap="nowrap">567</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right">$</td> <td align="right" nowrap="nowrap">(79</td> <td nowrap="nowrap">)</td> <td> </td> <td align="right" nowrap="nowrap">$</td> <td align="right" nowrap="nowrap">488</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:20px; text-indent:-15px">Realized from OCI during the period: </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:35px; text-indent:-15px">— Due to realization of previously deferred amounts </div></td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right" nowrap="nowrap">(76</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right" nowrap="nowrap">(1</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right" nowrap="nowrap">(77</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:20px; text-indent:-15px">Mark-to-market of cash flow hedge accounting contracts </div></td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right" nowrap="nowrap">(46</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right" nowrap="nowrap">14</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right" nowrap="nowrap">(32</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:20px; text-indent:-15px">Accumulated OCI balance at June 30, 2009 </div></td> <td> </td> <td align="right" nowrap="nowrap">$</td> <td align="right" nowrap="nowrap">445</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right">$</td> <td align="right" nowrap="nowrap">(66</td> <td nowrap="nowrap">)</td> <td> </td> <td align="right" nowrap="nowrap">$</td> <td align="right" nowrap="nowrap">379</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:20px; text-indent:-15px">Gains/(losses) expected to be realized from OCI during the next 12 months, net of $181 tax </div></td> <td> </td> <td align="right" nowrap="nowrap">$</td> <td align="right" nowrap="nowrap">303</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right">$</td> <td align="right" nowrap="nowrap">(3</td> <td nowrap="nowrap">)</td> <td> </td> <td align="right" nowrap="nowrap">$</td> <td align="right" nowrap="nowrap">300</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 2px solid #000000"> </td> </tr> <tr style="font-size: 10pt"> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td><b>  (In millions)</b></td> <td> </td> <td colspan="3" align="center"><b>Energy</b></td> <td> </td> <td colspan="3" align="center"><b>Interest</b></td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> <div style="margin-left:20px; text-indent:-15px"><b>Three months ended June 30, 2008</b> </div></td> <td> </td> <td colspan="3" align="center"><b>Commodities</b></td> <td> </td> <td colspan="3" align="center"><b>Rate</b></td> <td> </td> <td colspan="3" align="center"><b>Total</b></td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:20px; text-indent:-15px">Accumulated OCI balance at March 31, 2008 </div></td> <td> </td> <td nowrap="nowrap" align="right">$</td> <td align="right" nowrap="nowrap">(493</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="right">$</td> <td align="right" nowrap="nowrap">(74</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="right">$</td> <td align="right" nowrap="nowrap">(567</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:20px; text-indent:-15px">Realized from OCI during the period: </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:35px; text-indent:-15px">— Due to realization of previously deferred amounts </div></td> <td> </td> <td> </td> <td align="right" nowrap="nowrap">21</td> <td> </td> <td> </td> <td> </td> <td align="right" nowrap="nowrap">—</td> <td> </td> <td> </td> <td> </td> <td align="right" nowrap="nowrap">21</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:20px; text-indent:-15px">Mark-to-market of cash flow hedge accounting contracts </div></td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right" nowrap="nowrap">(763</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right" nowrap="nowrap">44</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right" nowrap="nowrap">(719</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:20px; text-indent:-15px">Accumulated OCI balance at June 30, 2008 </div></td> <td> </td> <td nowrap="nowrap" align="right">$</td> <td align="right" nowrap="nowrap">(1,235</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="right">$</td> <td align="right" nowrap="nowrap">(30</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="right">$</td> <td align="right" nowrap="nowrap">(1,265</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 2px solid #000000"> </td> </tr> <tr style="font-size: 10pt"> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> <div style="margin-left:20px; text-indent:-15px"><b>(In millions)</b> </div></td> <td> </td> <td colspan="3" nowrap="nowrap" align="center"><b>Energy</b></td> <td> </td> <td colspan="3" nowrap="nowrap" align="center"><b>Interest</b></td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> <div style="margin-left:20px; text-indent:-15px"><b>Six months ended June 30, 2009</b> </div></td> <td> </td> <td colspan="3" align="center"><b>Commodities</b></td> <td> </td> <td colspan="3" align="center"><b>Rate</b></td> <td> </td> <td colspan="3" align="center"><b>Total</b></td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:20px; text-indent:-15px">Accumulated OCI balance at December 31, 2008 </div></td> <td> </td> <td align="right" nowrap="nowrap">$</td> <td align="right" nowrap="nowrap">406</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right">$</td> <td align="right" nowrap="nowrap">(91</td> <td nowrap="nowrap">)</td> <td> </td> <td align="right" nowrap="nowrap">$</td> <td align="right" nowrap="nowrap">315</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:20px; text-indent:-15px">Realized from OCI during the period: </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:35px; text-indent:-15px">— Due to realization of previously deferred amounts </div></td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right" nowrap="nowrap">(188</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right" nowrap="nowrap">—</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right" nowrap="nowrap">(188</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:35px; text-indent:-15px">— Due to discontinuance of cash flow hedge accounting </div></td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right" nowrap="nowrap">(135</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right" nowrap="nowrap">—</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right" nowrap="nowrap">(135</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:20px; text-indent:-15px">Mark-to-market of cash flow hedge accounting contracts </div></td> <td> </td> <td> </td> <td align="right" nowrap="nowrap">362</td> <td> </td> <td> </td> <td> </td> <td align="right" nowrap="nowrap">25</td> <td> </td> <td> </td> <td> </td> <td align="right" nowrap="nowrap">387</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:20px; text-indent:-15px">Accumulated OCI balance at June 30, 2009 </div></td> <td> </td> <td align="right" nowrap="nowrap">$</td> <td align="right" nowrap="nowrap">445</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right">$</td> <td align="right" nowrap="nowrap">(66</td> <td nowrap="nowrap">)</td> <td> </td> <td align="right" nowrap="nowrap">$</td> <td align="right" nowrap="nowrap">379</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 2px solid #000000"> </td> </tr> <tr style="font-size: 10pt"> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> <div style="margin-left:20px; text-indent:-15px">  </div></td> <td> </td> <td colspan="3" align="center"><b>Energy</b></td> <td> </td> <td colspan="3" align="center"><b>Interest</b></td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> <div style="margin-left:20px; text-indent:-15px"><b>(In millions)</b> </div></td> <td> </td> <td colspan="3" align="center"><b>Commodities</b></td> <td> </td> <td colspan="3" align="center"><b>Rate</b></td> <td> </td> <td colspan="3" align="center"><b>Total</b></td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:20px; text-indent:-15px">Accumulated OCI balance at December 31, 2007 </div></td> <td> </td> <td nowrap="nowrap" align="right">$</td> <td align="right" nowrap="nowrap">(234</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="right">$</td> <td align="right" nowrap="nowrap">(31</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="right">$</td> <td align="right" nowrap="nowrap">(265</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:20px; text-indent:-15px">Realized from OCI during the period: </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:35px; text-indent:-15px">— Due to realization of previously deferred amounts </div></td> <td> </td> <td> </td> <td align="right" nowrap="nowrap">6</td> <td> </td> <td> </td> <td> </td> <td align="right" nowrap="nowrap">—</td> <td> </td> <td> </td> <td> </td> <td align="right" nowrap="nowrap">6</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:20px; text-indent:-15px">Mark-to-market of cash flow hedge accounting contracts </div></td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right" nowrap="nowrap">(1,007</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right" nowrap="nowrap">1</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right" nowrap="nowrap">(1,006</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:20px; text-indent:-15px">Accumulated OCI balance at June 30, 2008 </div></td> <td> </td> <td nowrap="nowrap" align="right">$</td> <td align="right" nowrap="nowrap">(1,235</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="right">$</td> <td align="right" nowrap="nowrap">(30</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="right">$</td> <td align="right" nowrap="nowrap">(1,265</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 2px solid #000000"> </td> </tr>  </table> </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     As of June 30, 2009, the net balance in OCI relating to SFAS 133 was an unrecognized gain of approximately $379 million, which is net of $233 million in income taxes. As of June 30, 2008, the net balance in OCI relating to SFAS 133 was an unrecognized loss of approximately $1,265 million, which was net of $829 million in income taxes. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     Accounting guidelines require a high degree of correlation between the derivative and the hedged item throughout the period in order to qualify as a cash flow hedge. As of July 31, 2008, the Company’s regression analysis for natural gas prices to ERCOT power prices while positively correlated did not meet the required threshold for cash flow hedge accounting for calendar years 2012 and 2013. As a result, the Company de-designated its 2012 and 2013 ERCOT cash flow hedges as of July 31, 2008 and prospectively marked these derivatives to market. Since the required threshold for cash flow hedge accounting was achieved for these transactions, on April 1, 2009, these hedges were re-designated as cash flow hedges. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">  <b><i>Statement of Operations</i></b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     In accordance with SFAS 133, unrealized gains and losses associated with changes in the fair value of derivative instruments not accounted for as cash flow hedge derivatives and ineffectiveness of hedge derivatives are reflected in current period earnings. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     The following table summarizes the pre-tax effects of economic hedges that did not qualify for cash flow hedge accounting, ineffectiveness on cash flow hedges, and trading activity on NRG’s statement of operations. These amounts are included within operating revenues and cost of operations. </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="50%"> </td> <td width="2%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="3%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000">  <b>Three Months ended June 30,</b></td> <td style="border-bottom: 1px solid #000000"> </td> <td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>Six months ended June 30,</b></td> <td style="border-bottom: 1px solid #000000"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td nowrap="nowrap" align="left"> <div style="margin-left:18px; text-indent:-15px"><b>(In millions)</b> </div></td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>2009</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>2008</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>2009</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>2008</b></td> <td> </td> </tr>   <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:18px; text-indent:-15px"><b>Unrealized mark-to-market results</b> </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Reversal of previously recognized unrealized losses/(gains) on </div> <div style="margin-left:30px; text-indent:-15px">settled positions related to economic hedges </div></td> <td> </td> <td align="left">$</td> <td align="right">192</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(15</td> <td nowrap="nowrap">)</td> <td> </td> <td align="left">$</td> <td align="right">176</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(25</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Reversal of previously recognized unrealized gains on settled </div> <div style="margin-left:30px; text-indent:-15px">positions related to trading activity </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(35</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(7</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(104</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(12</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Net unrealized (losses)/gains on open positions related to economic </div> <div style="margin-left:30px; text-indent:-15px">hedges </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(40</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(162</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">309</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(259</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">(Losses)/gains on ineffectiveness associated with open positions </div> <div style="margin-left:30px; text-indent:-15px">treated as cash flow hedges </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(3</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(333</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">1</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(378</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Net unrealized gains on open positions related to trading activity </div></td> <td> </td> <td> </td> <td align="right">1</td> <td> </td> <td> </td> <td> </td> <td align="right">15</td> <td> </td> <td> </td> <td> </td> <td align="right">8</td> <td> </td> <td> </td> <td> </td> <td align="right">31</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:18px; text-indent:-15px"><b>Total unrealized gains/(losses)</b> </div></td> <td> </td> <td align="left">$</td> <td align="right">115</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(502</td> <td nowrap="nowrap">)</td> <td> </td> <td align="left">$</td> <td align="right">390</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(643</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 2px solid #000000"> </td> </tr> <tr style="font-size: 10pt"> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="7">   <b>Six months ended</b></td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000">  <b>Three months ended June 30,</b></td> <td style="border-bottom: 1px solid #000000"> </td> <td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000">   <b>June 30,</b></td> <td style="border-bottom: 1px solid #000000"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td nowrap="nowrap" align="left"> <div style="margin-left:18px; text-indent:-15px"><b>(In millions)</b> </div></td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>2009</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>2008</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>2009</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>2008</b></td> <td> </td> </tr>   <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:18px; text-indent:-15px">Revenue from operations — energy commodities </div></td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(210</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(502</td> <td nowrap="nowrap">)</td> <td> </td> <td align="left">$</td> <td align="right">117</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(643</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:18px; text-indent:-15px">Cost of operations </div></td> <td> </td> <td> </td> <td align="right">325</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">273</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px"><b>Total impact to statement of operations</b> </div></td> <td> </td> <td align="left">$</td> <td align="right">115</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(502</td> <td nowrap="nowrap">)</td> <td> </td> <td align="left">$</td> <td align="right">390</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(643</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 2px solid #000000"> </td> </tr>  </table> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     For the six months ended June 30, 2009, the unrealized gain associated with changes in the fair value of derivative instruments not accounted for as hedge derivatives of $390 million was comprised of $309 million of fair value increases in forward sales and purchases of natural gas, electricity and fuel, $1 million gain from ineffectiveness, $72 million gain from the reversal of mark-to-market losses and $8 million of gains associated with the Company’s trading activity. The $309 million gain from economic hedge positions includes $217 million recognized in earnings from previously deferred amounts in OCI as the Company discontinued cash flow hedge accounting for certain 2009 transactions in Texas and New York due to lower expected generation, and $92 million of increase in value of forward purchases and sales of natural gas, electricity and fuel due to decrease in forward power and gas prices. The $1 million gain is primarily from hedge accounting ineffectiveness related to gas trades in Texas which was driven by decreasing forward gas prices while forward power prices decreased at a slower pace. The Company recognized a derivative loss of $29 million resulting from discontinued NPNS designated coal purchases due to expected lower coal consumption and accordingly could not assert taking physical delivery. This amount is included in the Company’s cost of operations. </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     The reversal of previously recognized unrealized losses on settled positions related to economic hedges of $192 million and $176 million for the three months and six months ended June 30, 2009, includes $210 million in gains from Reliant Energy representing roll-off of positions acquired as of May 1, 2009, at the acquisition date’s forward prices. These gains are offset by the losses at the settled prices and are reflected in the cost of operations during the same period. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     For the six months ended June 30, 2008, the unrealized loss associated with changes in the fair value of derivative instruments not accounted for as hedge derivatives of $643 million was comprised of $259 million of fair value decreases in forward sales of electricity and fuel, a $378 million loss due to the ineffectiveness associated with financial forward contracted electric and gas sales, $37 million from the reversal of mark-to-market gains which ultimately settled as financial revenues of which $25 million was related to economic hedges and $12 million was related to trading activity. These decreases were partially offset by $31 million of gains associated with open positions related to trading activity. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     <i>Discontinued Hedge Accounting </i>— During the first half of 2009, a relatively sharp decline in commodity prices resulted in falling power prices and expected lower power generation for the remainder of 2009. As such, NRG discontinued cash flow hedge accounting for certain 2009 contracts previously accounted for as cash flow hedges. These contracts were originally entered into as hedges of forecasted sales by baseload plants in Texas and Northeast. As a result, $217 million of gain previously deferred in OCI was recognized in earnings for the six months ended June 30, 2009. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     <i>Discontinued Normal Purchase and Sale for Coal Purchases </i>— Due to the decline in commodity prices during the first quarter of 2009, the Company’s coal consumption was lower than forecasted, and the Company built-up inventory due to lower baseload plant generation. The Company expected to net settle some of its coal purchases under NPNS designation and thus was no longer able to assert physical delivery under these coal contracts. The forward positions previously treated as accrual accounting have been reclassified into mark-to-market accounting during the first quarter and prospectively. The impact of discontinuance of coal NPNS designated transactions resulted in a derivative loss of $29 million that is reflected in the cost of operations for the six months ended June 30, 2009. </div> </div> </body> </html>

<html> <head></head> <body>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="justify" style="font-size: 10pt; margin-top: 20pt"><b>Note 7 — Long-Term Debt</b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">   <b><i>2019 Senior Notes</i></b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     On June 5, 2009, NRG issued $700 million aggregate principal amount of 8.5% Senior Notes due 2019, or 2019 Senior Notes, at a discount resulting in a yield of 8.75%. The 2019 Senior Notes were issued under an Indenture, dated February 2, 2006, between NRG and Law Debenture Trust Company of New York, as trustee, as amended through Supplemental Indentures, which is discussed in Note 11 — <i>Debt and Capital Leases, </i>in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2008. The Indentures and the form of the notes provide, among other things, that the 2019 Senior Notes will be senior unsecured obligations of NRG. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     The net proceeds of $678 million are intended to be used to facilitate the early termination of NRG’s obligations pursuant to the CSRA, anticipated in the late third or early fourth quarter 2009. Prior to the termination, or in the event NRG does not reach agreement on acceptable terms with either Merrill Lynch or its counterparties, the net proceeds will be available for general corporate purposes. Interest is payable semi-annually on the 2019 Senior Notes beginning on December 15, 2009 until their maturity date of June 15, 2019. As of June 30, 2009, $700 million in principal was outstanding under the 2019 Senior Notes. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     Prior to June 15, 2012, NRG may redeem up to 35% of the aggregate principal amount of the 2019 Senior Notes with the net proceeds of certain equity offerings, at a redemption price of 108.5% of the principal amount. Prior to June 15, 2014, NRG may redeem all or a portion of the 2019 Senior Notes at a price equal to 100% of the principal amount plus a premium and accrued and unpaid interest. The premium is the greater of (i) 1% of the principal amount of the note; or (ii) the excess of the principal amount of the note over the following: the present value of 104.25% of the note, plus interest payments due on the note from the date of redemption through June 15, 2014, discounted at a Treasury rate plus 0.50%. In addition, on or after June 15, 2014, NRG may redeem some or all of the notes at redemption prices expressed as percentages of principal amount as set forth in the following table, plus accrued and unpaid interest on the notes redeemed to the first applicable redemption date: </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="85%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="4%"> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2"><b>Redemption</b></td> <td> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td nowrap="nowrap" align="left"> <div style="margin-left:18px; text-indent:-15px"><b>Redemption Period</b> </div></td> <td> </td> <td nowrap="nowrap" align="right" colspan="2"><b>Percentage</b></td> <td> </td> </tr>   <tr style="font-size: 1px"> <td colspan="5" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:18px; text-indent:-15px">June 15, 2014 to June 14, 2015 </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">104.25%</td> <td nowrap="nowrap"></td> </tr> <tr valign="bottom"> <td> <div style="margin-left:18px; text-indent:-15px">June 15, 2015 to June 14, 2016 </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">102.83%</td> <td nowrap="nowrap"></td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:18px; text-indent:-15px">June 15, 2016 to June 14, 2017 </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">101.42%</td> <td nowrap="nowrap"></td> </tr> <tr valign="bottom"> <td> <div style="margin-left:18px; text-indent:-15px">June 15, 2017 and thereafter </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">100.00%</td> <td nowrap="nowrap"></td> </tr> <tr style="font-size: 1px"> <td colspan="5" align="left" style="border-top: 2px solid #000000"> </td> </tr>  </table> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">   <b><i>Interest Rate Swaps</i></b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     In May 2009, NRG entered into a series of forward-starting interest rate swaps. These interest rate swaps become effective on April 1, 2011 and are intended to hedge the risks associated with floating interest rates. For each of the interest rate swaps, the Company will pay its counterparty the equivalent of a fixed interest payment on a predetermined notional value, and NRG receives the monthly equivalent of a floating interest payment based on a 1-month LIBOR calculated on the same notional value. All interest rate swap payments by NRG and its counterparties are made monthly and the LIBOR is determined in advance of each interest period. The total notional amount of these swaps is $900 million. The swaps mature February 1, 2013. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     <b><i>Reliant Energy Acquisition</i></b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     See discussion in Note 3, <i>Business Acquisition, </i>regarding the CSRA as a result of the acquisition of Reliant Energy on May 1, 2009. Further, see discussion in Note 3, <i>Business Acquisition</i>, regarding the $50 million working capital facility entered into on May 1, 2009, of which $25 million is outstanding as of June 30, 2009. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     <b><i>Senior Credit Facility</i></b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     In March 2009, NRG made a repayment of approximately $197 million to its first lien lenders under the Term Loan Facility. This payment resulted from the mandatory annual offer of a portion of NRG’s excess cash flow (as defined in the Senior Credit Facility) for the prior year. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">   <b><i>TANE Facility</i></b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     On February 24, 2009, Nuclear Innovation North America LLC, or NINA, executed an Engineering, Procurement and Construction, or EPC, agreement with Toshiba American Nuclear Energy Corporation, or TANE, which specifies the terms under which STP Units 3 and 4 will be constructed. Concurrent with the execution of the EPC agreement, NINA and TANE entered into a credit facility, or the TANE Facility, wherein TANE has committed up to $500 million to finance purchases of long-lead materials and equipment for the construction of STP Units 3 and 4. The TANE Facility matures on February 24, 2012, subject to two renewal periods, and provides for customary events of default, which include, among others: nonpayment of principal or interest; default under other indebtedness; the rendering of judgments; and certain events of bankruptcy or insolvency. Outstanding borrowings will accrue interest at LIBOR plus 3%, subject to a ratings grid, and are secured by substantially all of the assets of and membership interests in NINA and its subsidiaries. As of June 30, 2009, no amounts have been borrowed under the TANE Facility. NINA will be required to repay all outstanding amounts associated with its existing $20 million non-recourse revolving credit facility before borrowing under the TANE Facility. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">   <b><i>Debt Related to Capital Allocation Program</i></b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     <i>Share Lending Agreements </i>— On February 20, 2009, CSF I and CSF II, wholly-owned unrestricted subsidiaries of the Company, entered into Share Lending Agreements with affiliates of Credit Suisse Group, or CS, relating to the shares of NRG common stock currently held by CSF I and II in connection with the CSF I and CSF II issued notes and preferred interests agreements, or CSF Debt, originally entered into during the third quarter 2006, by and between CSF I and II and affiliates of CS. The Company entered into Share Lending Agreements due to the current lack of liquidity in the stock borrow market for NRG shares and in order to maintain the intended economic benefits of the CSF Debt agreements. As of June 30, 2009, CSF I and II have lent affiliates of CS 12,000,000 shares of the 21,970,903 shares of NRG common stock held by CSF I and II. The Share Lending Agreements permit affiliates of CS to borrow up to the total number of shares of NRG common stock held by CSF I and II. </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     Shares borrowed by affiliates of CS under the Share Lending Agreements will be used to replace shares borrowed by affiliates of CS from third parties in connection with CS’ hedging activities related to the financing agreements. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     The shares are expected to be returned upon the termination of the financing agreements. Until the shares are returned, the shares will be treated as outstanding for corporate law purposes, and accordingly, the holders of the borrowed shares will have all of the rights of a holder of the Company’s outstanding shares, including the right to vote the shares on all matters submitted to a vote of the Company’s stockholders. However, because the CS affiliates must return all borrowed shares (or identical shares), the borrowed shares are not considered outstanding for the purpose of computing and reporting the Company’s basic or diluted earnings per share. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     <i>Adoption of FSP APB 14-1 </i>— As discussed in Note 1, <i>Basis of Presentation</i>, the Company adopted FSP APB 14-1 on January 1, 2009. The following table summarizes certain information related to the CSF Debt in accordance with FSP APB 14-1: </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="73%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="7%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="3%"> </td> <td width="3%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>June 30,</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>December 31,</b></td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>2009</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>2008</b></td> <td> </td> </tr>   <tr style="font-size: 1px"> <td colspan="10" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:18px; text-indent:-15px"><b>Equity Component</b> </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Additional Paid-in Capital </div></td> <td> </td> <td align="left">$</td> <td align="right">14</td> <td> </td> <td> </td> <td align="left">   $</td> <td align="right">14</td> <td> </td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="10" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:18px; text-indent:-15px"><b>Liability Component</b> </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Principal amount </div></td> <td> </td> <td align="left">$</td> <td align="right">333</td> <td> </td> <td> </td> <td align="left">   $</td> <td align="right">333</td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Unamortized discount </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(5</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(8</td> <td nowrap="nowrap">)</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="10" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:18px; text-indent:-15px"><b>Net carrying amount</b> </div></td> <td> </td> <td align="left">$</td> <td align="right">328</td> <td> </td> <td> </td> <td align="left">   $</td> <td align="right">325</td> <td> </td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="10" align="left" style="border-top: 2px solid #000000"> </td> </tr>  </table> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     The unamortized discount will be amortized through the maturity of the CSF Debt. The CSF I debt has a maturity date of June 2010 and the CSF II debt has a maturity date of October 2009. Interest expense for the CSF Debt, including the debt discount amortization for the three and six months ended June 30, 2009, was $9 million and $18 million, respectively. Interest expense for the CSF Debt, including the debt discount amortization for the three and six months ended June 30, 2008 was $9 million and $19 million, respectively. The effective interest rate as of June 30, 2009, was 11.4% for the CSF I debt and 12.1% for the CSF II debt. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     <b><i>Dunkirk Power LLC Tax-Exempt Bonds </i></b>— On April 15, 2009, NRG executed a $59 million tax-exempt bond financing through its wholly owned subsidiary, Dunkirk Power LLC. The bonds were issued by the County of Chautauqua Industrial Development Agency and will be used for construction of emission control equipment on the Dunkirk Generating Station in Dunkirk, NY. The bonds initially bear weekly interest based on the Securities Industry and Financial Markets Association, or SIFMA, rate, have a maturity date of April 1, 2042, and are enhanced by a letter of credit under the Company’s Revolving Credit Facility covering amounts drawn on the facility. The proceeds received through June 30, 2009 were $34 million with the remaining balance being released over time as construction costs are paid. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     <b><i>GenConn Energy LLC related financings </i></b>— On April 27, 2009, a wholly owned subsidiary of NRG closed on an equity bridge loan facility, or EBL, in the amount of $121.5 million from a syndicate of banks. The purpose of the EBL is to fund the Company’s proportionate share of the project construction costs required to be contributed into GenConn Energy LLC, or GenConn, a 50% equity method investment of the Company. The EBL, which is fully collateralized with a letter of credit issued under the Company’s Synthetic Letter of Credit Facility covering amounts drawn on the facility, will bear interest at a rate of LIBOR plus 2% on drawn amounts. The EBL will mature on the earlier of the commercial operations date of the Middletown project or July 26, 2011. The EBL also requires mandatory prepayment of the portion of the loan utilized to pay costs of the Devon project, of approximately $56 million, on the earlier of Devon’s commercial operations date or January 27, 2011. The proceeds of the EBL received through June 30, 2009 were $70 million and the remaining amounts will be drawn as necessary to fund construction costs. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     In April 2009, GenConn secured financing for 50% of the Devon and Middletown project construction costs through a 7-year term loan facility, and also entered into a 5-year revolving working capital loan and letter of credit facility, which collectively with the term loan is referred to as the GenConn Facility. The aggregate credit amount secured under the GenConn Facility, which is non-recourse to NRG, is $291 million, including $48 million for the revolving facility. </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> </div> </body> </html>

<html> <head></head> <body>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="justify" style="font-size: 10pt; margin-top: 10pt"><b>Note 8 — Changes in Capital Structure</b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     The following table reflects the changes in NRG’s common stock issued and outstanding during the six months ended June 30, 2009: </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="52%"> </td> <td width="5%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="5%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="5%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="5%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="right" colspan="2"><b>Authorized</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Issued</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Treasury</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Outstanding</b></td> </tr>   <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:18px; text-indent:-15px"><b>Balance as of December 31, 2008</b> </div></td> <td> </td> <td> </td> <td align="right">500,000,000</td> <td> </td> <td> </td> <td> </td> <td align="right">263,599,200</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(29,242,483</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">234,356,717</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Shares issued from LTIP </div></td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">216,741</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">216,741</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Shares issued under NRG Employee Stock Purchase Plan, or ESPP </div></td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">41,706</td> <td> </td> <td> </td> <td> </td> <td align="right">41,706</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Shares borrowed by affiliates of CS </div></td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">12,000,000</td> <td> </td> <td> </td> <td> </td> <td align="right">12,000,000</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">4.00% Preferred Stock conversion </div></td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">20,650</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">20,650</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">5.75% Preferred Stock conversion </div></td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">18,601,201</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">18,601,201</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:18px; text-indent:-15px"><b>Balance as of June 30, 2009</b> </div></td> <td> </td> <td> </td> <td align="right">500,000,000</td> <td> </td> <td> </td> <td> </td> <td align="right">282,437,792</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(17,200,777</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">265,237,015</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 2px solid #000000"> </td> </tr>  </table> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 1%"><b><i>Employee Stock Purchase Plan</i></b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     As of June 30, 2009, there were 458,294 shares of treasury stock reserved for issuance under the ESPP. In July 2009, 39,826 shares of common stock were issued to employee accounts from treasury stock. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 1%"><b><i>5.75% Preferred Stock</i></b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     Certain holders of the Company’s 5.75% convertible perpetual preferred stock, or 5.75% Preferred Stock, elected to convert their preferred shares into NRG common shares prior to the mandatory conversion date of March 16, 2009 at the minimum conversion rate of 8.2712. As of March 16, 2009, each remaining outstanding share of the 5.75% Preferred Stock automatically converted into shares of common stock at a rate of 10.2564, based upon the applicable market value of NRG’s common stock. These conversions resulted in a decrease in preferred stock of $447 million, and a corresponding increase in Additional Paid-in Capital. The following table summarizes the conversion of the 5.75% Preferred Stock into NRG Common Stock: </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="70%"> </td> <td width="3%"> </td> <td width="2%"> </td> <td width="1%"> </td> <td width="2%"> </td> <td width="3%"> </td> <td width="2%"> </td> <td width="1%"> </td> <td width="2%"> </td> <td width="3%"> </td> <td width="2%"> </td> <td width="1%"> </td> <td width="2%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Preferred Stock</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Conversion Rate</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Common Stock</b></td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Shares</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>(per share)</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Shares</b></td> </tr>   <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:18px; text-indent:-15px"><b>Balance as of December 31, 2008</b> </div></td> <td> </td> <td> </td> <td align="right">1,841,680</td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Preferred shares converted by the holders prior to March 16, 2009 </div></td> <td> </td> <td> </td> <td align="right">144,975</td> <td> </td> <td> </td> <td> </td> <td align="right">8.2712</td> <td> </td> <td> </td> <td> </td> <td align="right">1,199,116</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Preferred shares automatically converted as of March 16, 2009 </div></td> <td> </td> <td> </td> <td align="right">1,696,705</td> <td> </td> <td> </td> <td> </td> <td align="right">10.2564</td> <td> </td> <td> </td> <td> </td> <td align="right">17,402,085</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:18px; text-indent:-15px"><b>Balance at June 30, 2009</b> </div></td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td align="right">18,601,201</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 2px solid #000000"> </td> </tr>  </table> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 1%"><b><i>4% Preferred Stock</i></b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     As of June 30, 2009, 413 shares of the 4% Preferred Stock were converted into 20,650 shares of common stock in 2009. </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> </div> </body> </html>

<html> <head></head> <body>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="justify" style="font-size: 10pt; margin-top: 10pt"><b>Note 9 — Equity Compensation</b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 1%"><b><i>Non-Qualified Stock Options, or NQSO’s</i></b> </div> <div align="justify" style="font-size: 10pt; margin-top: 8pt">     The following table summarizes the Company’s NQSO activity as of June 30, 2009, and changes during the six months then ended: </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr style="font-size: 8pt" valign="bottom"> <td width="64%"> </td> <td width="5%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="5%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="5%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Weighted</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Aggregate Intrinsic</b></td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Average</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Value</b></td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Shares</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Exercise Price</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>(In millions)</b></td> </tr>   <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:18px; text-indent:-15px"><b>Outstanding as of December 31, 2008</b> </div></td> <td> </td> <td> </td> <td align="right">4,008,188</td> <td> </td> <td> </td> <td align="right">$</td> <td align="right">   25.84</td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Granted </div></td> <td> </td> <td> </td> <td align="right">1,297,300</td> <td> </td> <td> </td> <td> </td> <td align="right">23.37</td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Forfeited </div></td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(103,768</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">27.18</td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:18px; text-indent:-15px"><b>Outstanding at June 30, 2009</b> </div></td> <td> </td> <td> </td> <td align="right">5,201,720</td> <td> </td> <td> </td> <td> </td> <td align="right">25.20</td> <td> </td> <td> </td> <td align="right">$</td> <td align="right">22</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:18px; text-indent:-15px"><b>Exercisable at June 30, 2009</b> </div></td> <td> </td> <td> </td> <td align="right">2,862,448</td> <td> </td> <td> </td> <td align="right">$</td> <td align="right">21.87</td> <td> </td> <td> </td> <td> </td> <td align="right">18</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 2px solid #000000"> </td> </tr>  </table> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     The weighted average grant date fair value of NQSO’s granted for the six months ended June 30, 2009, was $8.48. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     <b><i>Restricted Stock Units, or RSU’s</i></b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     The following table summarizes the Company’s non-vested RSU awards as of June 30, 2009, and changes during the six months then ended: </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr style="font-size: 8pt" valign="bottom"> <td width="76%"> </td> <td width="5%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="5%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Weighted Average</b></td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Grant-Date</b></td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Units</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Fair Value Per Unit</b></td> </tr>   <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:18px; text-indent:-15px"><b>Non-vested as of December 31, 2008</b> </div></td> <td> </td> <td> </td> <td align="right">1,061,996</td> <td> </td> <td> </td> <td align="right">$</td> <td align="right">   32.97</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Granted </div></td> <td> </td> <td> </td> <td align="right">160,100</td> <td> </td> <td> </td> <td> </td> <td align="right">23.35</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Vested </div></td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(293,312</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">23.76</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Forfeited </div></td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(36,040</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">33.00</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:18px; text-indent:-15px"><b>Non-vested as of June 30, 2009</b> </div></td> <td> </td> <td> </td> <td align="right">892,744</td> <td> </td> <td> </td> <td align="right">$</td> <td align="right">34.27</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 2px solid #000000"> </td> </tr>  </table> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     <b><i>Performance Units, or PU’s</i></b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     The following table summarizes the Company’s non-vested PU awards as of June 30, 2009, and changes during the six months then ended: </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr style="font-size: 8pt" valign="bottom"> <td width="76%"> </td> <td width="5%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="5%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Weighted Average</b></td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Grant- Date</b></td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Units</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Fair Value Per Unit</b></td> </tr>   <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:18px; text-indent:-15px"><b>Non-vested as of December 31, 2008</b> </div></td> <td> </td> <td> </td> <td align="right">659,564</td> <td> </td> <td> </td> <td align="right">$</td> <td align="right">   22.81</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Granted </div></td> <td> </td> <td> </td> <td align="right">310,800</td> <td> </td> <td> </td> <td> </td> <td align="right">22.52</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Forfeited </div></td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(262,864</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">19.33</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:18px; text-indent:-15px"><b>Non-vested as of June 30, 2009</b> </div></td> <td> </td> <td> </td> <td align="right">707,500</td> <td> </td> <td> </td> <td align="right">$</td> <td align="right">24.15</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 2px solid #000000"> </td> </tr>  </table> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     In the first half of 2009, there were no performance unit payouts in accordance with the terms of the performance units. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     <b><i>Deferral Stock Units, or DSU’s</i></b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     The following table summarizes the Company’s outstanding DSU awards as of June 30, 2009, and changes during the six months then ended: </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr style="font-size: 8pt" valign="bottom"> <td width="76%"> </td> <td width="5%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="5%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Weighted Average</b></td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Grant- Date</b></td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Units</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Fair Value Per Unit</b></td> </tr>   <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:18px; text-indent:-15px"><b>Outstanding as of December 31, 2008</b> </div></td> <td> </td> <td> </td> <td align="right">260,768</td> <td> </td> <td> </td> <td align="right">$</td> <td align="right">   18.50</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Granted </div></td> <td> </td> <td> </td> <td align="right">65,437</td> <td> </td> <td> </td> <td> </td> <td align="right">22.77</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Conversions </div></td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(22,156</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">23.69</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:18px; text-indent:-15px"><b>Outstanding as of June 30, 2009</b> </div></td> <td> </td> <td> </td> <td align="right">304,049</td> <td> </td> <td> </td> <td align="right">$</td> <td align="right">19.34</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 2px solid #000000"> </td> </tr>  </table> </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> </div> </body> </html>

<html> <head></head> <body>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="justify" style="font-size: 10pt; margin-top: 10pt"><b>Note 10 — Earnings Per Share</b> </div> <div align="justify" style="font-size: 10pt; margin-top: 8pt">     Basic earnings per share attributable to NRG common stockholders is computed by dividing net income attributable to NRG adjusted for accumulated preferred stock dividends by the weighted average number of common shares outstanding. Shares issued and treasury shares repurchased during the year are weighted for the portion of the year that they were outstanding. The 12,000,000 shares outstanding under the Share Lending Agreements with CS affiliates are not treated as outstanding for earnings per share purposes because the CS affiliates must return all borrowed shares (or identical shares) upon termination of the Agreements. See Note 7 – <i>Long-Term Debt, </i>for more information on the Share Lending Agreements. Diluted earnings per share attributable to NRG common stockholders is computed in a manner consistent with that of basic earnings per share while giving effect to all potentially dilutive common shares that were outstanding during the period. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     The reconciliation of basic earnings per common share to diluted earnings per share attributable to NRG is as follows: </div> <div align="center"> <table style="font-size: 9pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr style="font-size: 6pt" valign="bottom"> <td width="56%"> </td> <td width="5%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="3%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> </tr> <tr style="font-size: 1pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"> </td> <td style="border-bottom: 1px solid #000000"> </td> <td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>Three Months ended <br /> June 30,</b></td> <td style="border-bottom: 1px solid #000000"> </td> <td align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>Six months ended <br /> June 30,</b></td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td nowrap="nowrap" align="left"><b>(In millions, except per share data)</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>2009</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>2008</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>2009</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>2008</b></td> </tr>   <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:18px; text-indent:-15px"><b><i>Basic earnings per share attributable to NRG common stockholders</i></b> </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:18px; text-indent:-15px"><b>Numerator:</b> </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Income/(loss) from continuing operations, net of income taxes </div></td> <td> </td> <td align="right">$</td> <td align="right">433</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right">$</td> <td align="right">(41</td> <td nowrap="nowrap">)</td> <td> </td> <td align="right">$</td> <td align="right">631</td> <td> </td> <td> </td> <td align="right">$</td> <td align="right">4</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Dividends for preferred shares </div></td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(7</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(14</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(21</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(28</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Net income/(loss) available to common stockholders from continuing operations </div></td> <td> </td> <td> </td> <td align="right">426</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(55</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">610</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(24</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Income from discontinued operations, net of income taxes </div></td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">168</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">172</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:50px; text-indent:-15px">Net income attributable to NRG Energy, Inc. available to common stockholders </div></td> <td> </td> <td align="right">$</td> <td align="right">426</td> <td> </td> <td> </td> <td align="right">$</td> <td align="right">113</td> <td> </td> <td> </td> <td align="right">$</td> <td align="right">610</td> <td> </td> <td> </td> <td align="right">$</td> <td align="right">148</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:18px; text-indent:-15px"><b>Denominator:</b> </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Weighted average number of common shares outstanding </div></td> <td> </td> <td> </td> <td align="right">   253.2</td> <td> </td> <td> </td> <td> </td> <td align="right">   235.9</td> <td> </td> <td> </td> <td> </td> <td align="right">   245.2</td> <td> </td> <td> </td> <td> </td> <td align="right">   236.1</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:18px; text-indent:-15px"><b><i>Basic earnings per share:</i></b> </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Income/(loss) from continuing operations </div></td> <td> </td> <td align="right">$</td> <td align="right">1.68</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right">$</td> <td align="right">(0.23</td> <td nowrap="nowrap">)</td> <td> </td> <td align="right">$</td> <td align="right">2.49</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right">$</td> <td align="right">(0.10</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Income from discontinued operations, net of income taxes </div></td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">0.71</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">0.73</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:50px; text-indent:-15px">Net income attributable to NRG Energy, Inc. </div></td> <td> </td> <td align="right">$</td> <td align="right">1.68</td> <td> </td> <td> </td> <td align="right">$</td> <td align="right">0.48</td> <td> </td> <td> </td> <td align="right">$</td> <td align="right">2.49</td> <td> </td> <td> </td> <td align="right">$</td> <td align="right">0.63</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:18px; text-indent:-15px"><b><i>Diluted earnings per share attributable to NRG common stockholders</i></b> </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:18px; text-indent:-15px"><b>Numerator:</b> </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Net income/(loss) available to common stockholders from continuing operations </div></td> <td> </td> <td align="right">$</td> <td align="right">426</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right">$</td> <td align="right">(55</td> <td nowrap="nowrap">)</td> <td> </td> <td align="right">$</td> <td align="right">610</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right">$</td> <td align="right">(24</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Add preferred stock dividends for dilutive preferred stock </div></td> <td> </td> <td> </td> <td align="right">4</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">14</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Adjusted income/(loss) from continuing operations </div></td> <td> </td> <td> </td> <td align="right">430</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(55</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">624</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(24</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Income from discontinued operations, net of income taxes </div></td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">168</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">172</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:50px; text-indent:-15px">Net income attributable to NRG Energy, Inc. available to common stockholders </div></td> <td> </td> <td align="right">$</td> <td align="right">430</td> <td> </td> <td> </td> <td align="right">$</td> <td align="right">113</td> <td> </td> <td> </td> <td align="right">$</td> <td align="right">624</td> <td> </td> <td> </td> <td align="right">$</td> <td align="right">148</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:18px; text-indent:-15px"><b>Denominator:</b> </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Weighted average number of common shares outstanding </div></td> <td> </td> <td> </td> <td align="right">253.2</td> <td> </td> <td> </td> <td> </td> <td align="right">235.9</td> <td> </td> <td> </td> <td> </td> <td align="right">245.2</td> <td> </td> <td> </td> <td> </td> <td align="right">236.1</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Incremental shares attributable to the issuance of equity compensation (treasury stock method) </div></td> <td> </td> <td> </td> <td align="right">1.0</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">1.0</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Incremental shares attributable to assumed conversion features of outstanding preferred stock (if-converted method) </div></td> <td> </td> <td> </td> <td align="right">21.0</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">29.1</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Total dilutive shares </div></td> <td> </td> <td> </td> <td align="right">275.2</td> <td> </td> <td> </td> <td> </td> <td align="right">235.9</td> <td> </td> <td> </td> <td> </td> <td align="right">275.3</td> <td> </td> <td> </td> <td> </td> <td align="right">236.1</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:18px; text-indent:-15px"><b><i>Diluted earnings per share:</i></b> </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Income/(loss) from continuing operations </div></td> <td> </td> <td align="right">$</td> <td align="right">1.56</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right">$</td> <td align="right">(0.23</td> <td nowrap="nowrap">)</td> <td> </td> <td align="right">$</td> <td align="right">2.27</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right">$</td> <td align="right">(0.10</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Income from discontinued operations, net of income taxes </div></td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">0.71</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">0.73</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:50px; text-indent:-15px">Net income attributable to NRG Energy, Inc. </div></td> <td> </td> <td align="right">$</td> <td align="right">1.56</td> <td> </td> <td> </td> <td align="right">$</td> <td align="right">0.48</td> <td> </td> <td> </td> <td align="right">$</td> <td align="right">2.27</td> <td> </td> <td> </td> <td align="right">$</td> <td align="right">0.63</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 2px solid #000000"> </td> </tr>  </table> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     For the three and six months ended June 30, 2008, basic and diluted per share amounts were the same within each period reported because potential common shares had an anti-dilutive effect on loss from continuing operations available to common shares and were excluded from the computation. </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 1%"><b>Effects on Earnings per Share</b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     The following table summarizes NRG’s outstanding equity instruments that were anti-dilutive and not included in the computation of the Company’s diluted earnings per share for the three and six months ended June 30: </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr style="font-size: 20pt" valign="bottom"> <td width="52%"> </td> <td width="5%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="5%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="5%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="5%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>Three months ended June 30,</b></td> <td style="border-bottom: 1px solid #000000"> </td> <td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>Six months ended June 30,</b></td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td nowrap="nowrap" align="left"><b>(In millions of shares)</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>2009</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>2008</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>2009</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>2008</b></td> </tr>   <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:18px; text-indent:-15px">Equity compensation (NQSO’s and PU’s) </div></td> <td> </td> <td> </td> <td align="right">5.3</td> <td> </td> <td> </td> <td> </td> <td align="right">7.5</td> <td> </td> <td> </td> <td> </td> <td align="right">5.3</td> <td> </td> <td> </td> <td> </td> <td align="right">7.5</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:18px; text-indent:-15px">4.0% convertible preferred stock </div></td> <td> </td> <td> </td> <td align="center">—</td> <td> </td> <td> </td> <td> </td> <td align="right">21.0</td> <td> </td> <td> </td> <td> </td> <td align="center">—</td> <td> </td> <td> </td> <td> </td> <td align="right">21.0</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:18px; text-indent:-15px">5.75% convertible preferred stock </div></td> <td> </td> <td> </td> <td align="center">—</td> <td> </td> <td> </td> <td> </td> <td align="right">16.5</td> <td> </td> <td> </td> <td> </td> <td align="center">—</td> <td> </td> <td> </td> <td> </td> <td align="right">16.5</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:18px; text-indent:-15px">Embedded derivative of 3.625% redeemable perpetual preferred stock </div></td> <td> </td> <td> </td> <td align="right">16.0</td> <td> </td> <td> </td> <td> </td> <td align="right">16.0</td> <td> </td> <td> </td> <td> </td> <td align="right">16.0</td> <td> </td> <td> </td> <td> </td> <td align="right">16.0</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:18px; text-indent:-15px">Embedded derivative of CSF preferred interests and notes </div></td> <td> </td> <td> </td> <td align="right">7.6</td> <td> </td> <td> </td> <td> </td> <td align="right">18.3</td> <td> </td> <td> </td> <td> </td> <td align="right">7.6</td> <td> </td> <td> </td> <td> </td> <td align="right">18.3</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:45px; text-indent:-15px">Total </div></td> <td> </td> <td> </td> <td align="right">28.9</td> <td> </td> <td> </td> <td> </td> <td align="right">79.3</td> <td> </td> <td> </td> <td> </td> <td align="right">28.9</td> <td> </td> <td> </td> <td> </td> <td align="right">79.3</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 2px solid #000000"> </td> </tr>  </table> </div> </div> </body> </html>

<html> <head></head> <body>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="justify" style="font-size: 10pt; margin-top: 20pt"><b>Note 11 — Segment Reporting</b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     NRG’s segment structure has changed to reflect the Company’s acquisition of Reliant Energy along with the previously reported core areas of operation which are primarily the geographic regions of the Company’s wholesale power generation, thermal and chilled water business, and corporate activities. Within NRG’s wholesale power generation operations, there are distinct components with separate operating results and management structures for the following regions: Texas, Northeast, South Central, West and International. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     In the second quarter 2009, management changed its method for allocating Corporate general and administrative expenses to the segments. Corporate general and administrative expenses had been allocated based on budgeted segment revenues. Beginning in the second quarter 2009, Corporate general and administrative expenses are allocated based on forecasted earnings/(losses) before interest expense, income taxes, depreciation and amortization expense. </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif">  <div align="center"> <table style="font-size: 9pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="20%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="2%"> </td> <td width="3%"> </td> <td width="2%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="19" style="border-bottom: 1px solid #000000"><b>Wholesale Power Generation</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td nowrap="nowrap" align="left"><b>(In millions)</b></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>South</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td nowrap="nowrap" align="left"><b>Three months ended June 30, 2009</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Reliant Energy</b> <sup style="font-size: 85%; vertical-align: text-top"><b>(a)</b></sup></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>    Texas</b> <sup style="font-size: 85%; vertical-align: text-top"><b>(b)</b></sup></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>   Northeast</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>  Central</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>    West</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>International</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>  Thermal</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>  Corporate</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>  Elimination</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>  Total</b></td> </tr>   <tr style="font-size: 1px"> <td colspan="41" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Operating revenues </div></td> <td> </td> <td align="left">$</td> <td align="right">1,175</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">619</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">237</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">139</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">42</td> <td> </td> <td> </td> <td align="right">$</td> <td align="right">34</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">28</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">32</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(69</td> <td nowrap="nowrap">)</td> <td> </td> <td align="left">$</td> <td align="right">2,237</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Depreciation and amortization </div></td> <td> </td> <td> </td> <td align="right">43</td> <td> </td> <td> </td> <td> </td> <td align="right">117</td> <td> </td> <td> </td> <td> </td> <td align="right">30</td> <td> </td> <td> </td> <td> </td> <td align="right">17</td> <td> </td> <td> </td> <td> </td> <td align="right">2</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">3</td> <td> </td> <td> </td> <td> </td> <td align="right">1</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">213</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Equity in earnings/(loss) of unconsolidated affiliates </div></td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(7</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">3</td> <td> </td> <td> </td> <td> </td> <td align="right">9</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">5</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Income/(loss) from continuing operations before income taxes </div></td> <td> </td> <td> </td> <td align="right">414</td> <td> </td> <td> </td> <td> </td> <td align="right">107</td> <td> </td> <td> </td> <td> </td> <td align="right">42</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(9</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">19</td> <td> </td> <td> </td> <td> </td> <td align="right">128</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(119</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">582</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="41" align="left" style="border-top: 0px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Net income/(loss) </div></td> <td> </td> <td> </td> <td align="right">233</td> <td> </td> <td> </td> <td> </td> <td align="right">98</td> <td> </td> <td> </td> <td> </td> <td align="right">42</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(9</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">19</td> <td> </td> <td> </td> <td> </td> <td align="right">125</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(76</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">432</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Net loss attributable to non-controlling interest </div></td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(1</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(1</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="41" align="left" style="border-top: 0px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td nowrap="nowrap"> <div style="margin-left:15px; text-indent:-15px"><b>Net income/(loss) attributable to <br /> NRG Energy, Inc.</b> </div></td> <td> </td> <td align="left">$</td> <td align="right">233</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">99</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">42</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(9</td> <td nowrap="nowrap">)</td> <td> </td> <td align="left">$</td> <td align="right">19</td> <td> </td> <td> </td> <td align="right">$</td> <td align="right">125</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">—</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(76</td> <td nowrap="nowrap">)</td> <td> </td> <td align="left">$</td> <td align="right">—</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">433</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="41" align="left" style="border-top: 2px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px"><b>Total assets</b> </div></td> <td> </td> <td align="left">$ </td> <td align="right">4,405</td> <td> </td> <td> </td> <td align="left">$ </td> <td align="right">13,680</td> <td> </td> <td> </td> <td align="left">$ </td> <td align="right">1,788</td> <td> </td> <td> </td> <td align="left">$ </td> <td align="right">929</td> <td> </td> <td> </td> <td align="left">$ </td> <td align="right">268</td> <td> </td> <td> </td> <td align="right">$</td> <td align="right">766</td> <td> </td> <td> </td> <td align="left">$ </td> <td align="right">197</td> <td> </td> <td> </td> <td align="left">$ </td> <td align="right">22,809</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(17,537</td> <td nowrap="nowrap">)</td> <td> </td> <td align="left">$ </td> <td align="right">27,305</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="41" align="left" style="border-top: 2px solid #000000"> </td> </tr>  </table> </div> <div style="margin-top: 7pt"> <table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 9pt; text-align: left"> <tr valign="top" style="font-size: 8pt; color: #000000; background: transparent"> <td width="2%" nowrap="nowrap" align="left">(a)</td> <td width="1%"> </td> <td> <div style="text-align: justify">Reliant Energy balances are for the two months ended June 30, 2009. </div></td> </tr> <tr> <td style="font-size: 0pt"> </td> </tr> <tr valign="top" style="font-size: 8pt; color: #000000; background: transparent"> <td width="2%" nowrap="nowrap" align="left">(b)</td> <td width="1%"> </td> <td> <div style="text-align: justify">Includes inter-segment sales of $66 million to Reliant Energy. </div></td> </tr> </table> </div> <div align="justify" style="font-size: 10pt; margin-top: 8pt">     If the Company continued using the 2008 allocation method for corporate general and administrative expenses, the effect to net income/(loss) of each segment for the three months ended June 30, 2009 would have been as follows: </div> <div align="center"> <table style="font-size: 9pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="20%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> </tr>   <tr valign="bottom" style="background: #cceeff"> <td nowrap="nowrap"> <div style="margin-left:15px; text-indent:-15px">Net income/(loss) attributable to<br /> NRG Energy, Inc. as reported </div></td> <td> </td> <td align="left">$</td> <td align="right">233</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">99</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">42</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(9</td> <td nowrap="nowrap">)</td> <td> </td> <td align="left">$</td> <td align="right">19</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">125</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">—</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(76</td> <td nowrap="nowrap">)</td> <td> </td> <td align="left">$</td> <td align="right">—</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">433</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Increase/(decrease) in net income/(loss) attributable to<br /> NRG Energy, Inc. </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(11</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">8</td> <td> </td> <td> </td> <td> </td> <td align="right">4</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(1</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="41" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td nowrap="nowrap"> <div style="margin-left:15px; text-indent:-15px"><b>Adjusted net income/(loss) attributable to<br /> NRG Energy, Inc.</b> </div></td> <td> </td> <td align="left">$</td> <td align="right">222</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">107</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">46</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(10</td> <td nowrap="nowrap">)</td> <td> </td> <td align="left">$</td> <td align="right">19</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">125</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">—</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(76</td> <td nowrap="nowrap">)</td> <td> </td> <td align="left">$</td> <td align="right">—</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">433</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="41" align="left" style="border-top: 2px solid #000000"> </td> </tr>  </table> </div> <div align="center"> <table style="font-size: 9pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="19%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="19" style="border-bottom: 1px solid #000000"><b>Wholesale Power Generation</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td nowrap="nowrap" align="left"><b>(In millions)</b></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3">    <b>South</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td nowrap="nowrap" align="left"><b>Three months ended June 30, 2008</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>    Texas</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>    Northeast</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>    Central</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>    West</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>International</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>    Thermal</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>    Corporate</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>  Elimination</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>  Total</b></td> </tr>   <tr style="font-size: 1px"> <td colspan="37" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Operating revenues </div></td> <td> </td> <td align="left">$</td> <td align="right">751</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">265</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">172</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">49</td> <td> </td> <td> </td> <td align="right">$</td> <td align="right">43</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">34</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">3</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(1</td> <td nowrap="nowrap">)</td> <td> </td> <td align="left">$</td> <td align="right">1,316</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Depreciation and amortization </div></td> <td> </td> <td> </td> <td align="right">113</td> <td> </td> <td> </td> <td> </td> <td align="right">25</td> <td> </td> <td> </td> <td> </td> <td align="right">17</td> <td> </td> <td> </td> <td> </td> <td align="right">3</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">2</td> <td> </td> <td> </td> <td> </td> <td align="right">1</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">161</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Equity in (losses)/earnings of </div> <div style="margin-left:25px; text-indent:-15px">unconsolidated affiliates </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(32</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(1</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">14</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(19</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Income/(loss) from continuing operations before income taxes </div></td> <td> </td> <td> </td> <td align="right">14</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(45</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(6</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">13</td> <td> </td> <td> </td> <td> </td> <td align="right">23</td> <td> </td> <td> </td> <td> </td> <td align="right">2</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(85</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(10</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(94</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Income from discontinued operations, net of income taxes </div></td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">168</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">168</td> <td> </td> </tr> <tr valign="bottom"> <td nowrap="nowrap"> <div style="margin-left:15px; text-indent:-15px"><b>Net income/(loss) attributable to <br /> NRG Energy, Inc.</b> </div></td> <td> </td> <td align="left">$</td> <td align="right">13</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(45</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(6</td> <td nowrap="nowrap">)</td> <td> </td> <td align="left">$</td> <td align="right">13</td> <td> </td> <td> </td> <td align="right">$</td> <td align="right">186</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">2</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(26</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(10</td> <td nowrap="nowrap">)</td> <td> </td> <td align="left">$</td> <td align="right">127</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="37" align="left" style="border-top: 2px solid #000000"> </td> </tr>  </table> </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="justify" style="font-size: 10pt; margin-top: 10pt">      </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="20%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="2%"> </td> <td width="3%"> </td> <td width="2%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="19" style="border-bottom: 1px solid #000000"><b>Wholesale Power Generation</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td nowrap="nowrap" align="left"><b>(In millions)</b></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>South</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td nowrap="nowrap" align="left"><b>Six months ended June 30, 2009</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Reliant Energy</b> <sup style="font-size: 85%; vertical-align: text-top"><b>(a)</b></sup></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>  Texas</b> <sup style="font-size: 85%; vertical-align: text-top"><b>(b)</b></sup></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>   Northeast</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>  Central</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>      West</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>International</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>  Thermal</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>  Corporate</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>  Elimination</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>  Total</b></td> </tr>   <tr style="font-size: 1px"> <td colspan="41" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Operating revenues </div></td> <td> </td> <td align="left">$ </td> <td align="right">1,175</td> <td> </td> <td> </td> <td align="left">$ </td> <td align="right">1,544</td> <td> </td> <td> </td> <td align="left">$ </td> <td align="right">701</td> <td> </td> <td> </td> <td align="left">$ </td> <td align="right">301</td> <td> </td> <td> </td> <td align="left">$ </td> <td align="right">70</td> <td> </td> <td> </td> <td align="right">$</td> <td align="right">68</td> <td> </td> <td> </td> <td align="left">$ </td> <td align="right">70</td> <td> </td> <td> </td> <td align="left">$ </td> <td align="right">36</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(70</td> <td nowrap="nowrap">)</td> <td> </td> <td align="left">$ </td> <td align="right">3,895</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Depreciation and amortization </div></td> <td> </td> <td> </td> <td align="right">43</td> <td> </td> <td> </td> <td> </td> <td align="right">234</td> <td> </td> <td> </td> <td> </td> <td align="right">59</td> <td> </td> <td> </td> <td> </td> <td align="right">34</td> <td> </td> <td> </td> <td> </td> <td align="right">4</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">5</td> <td> </td> <td> </td> <td> </td> <td align="right">3</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">382</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Equity in earnings/(losses) of unconsolidated affiliates </div></td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(3</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">4</td> <td> </td> <td> </td> <td> </td> <td align="right">26</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">27</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Income/(loss) from continuing operations before income taxes </div></td> <td> </td> <td> </td> <td align="right">414</td> <td> </td> <td> </td> <td> </td> <td align="right">485</td> <td> </td> <td> </td> <td> </td> <td align="right">253</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(8</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">16</td> <td> </td> <td> </td> <td> </td> <td align="right">142</td> <td> </td> <td> </td> <td> </td> <td align="right">4</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(228</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">1,078</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="41" align="left" style="border-top: 0px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Net income/(loss) </div></td> <td> </td> <td> </td> <td align="right">233</td> <td> </td> <td> </td> <td> </td> <td align="right">315</td> <td> </td> <td> </td> <td> </td> <td align="right">253</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(8</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">16</td> <td> </td> <td> </td> <td> </td> <td align="right">137</td> <td> </td> <td> </td> <td> </td> <td align="right">4</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(320</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">630</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Net loss attributable to non-controlling interest </div></td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(1</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(1</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="41" align="left" style="border-top: 0px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px"><b>Net income/(loss) attributable to <br /> NRG Energy, Inc.</b> </div></td> <td> </td> <td align="left">$</td> <td align="right">233</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">316</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">253</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(8</td> <td nowrap="nowrap">)</td> <td> </td> <td align="left">$</td> <td align="right">16</td> <td> </td> <td> </td> <td align="right">$</td> <td align="right">137</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">4</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(320</td> <td nowrap="nowrap">)</td> <td> </td> <td align="left">$</td> <td align="right">—</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">631</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="41" align="left" style="border-top: 2px solid #000000"> </td> </tr>  </table> </div> <div style="margin-top: 10pt"> <table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left"> <tr valign="top" style="font-size: 8pt; color: #000000; background: transparent"> <td width="2%" nowrap="nowrap" align="left">(a)</td> <td width="1%"> </td> <td> <div style="text-align: justify">Reliant Energy balances are for the two months ended June 30, 2009. </div></td> </tr> <tr> <td style="font-size: 0pt"> </td> </tr> <tr valign="top" style="font-size: 8pt; color: #000000; background: transparent"> <td width="2%" nowrap="nowrap" align="left">(b)</td> <td width="1%"> </td> <td> <div style="text-align: justify">Includes inter-segment sales of $66 million to Reliant Energy. </div></td> </tr> </table> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     If the Company continued using the 2008 allocation method for corporate general and administrative expenses, the effect to net income/(loss) of each segment for the six months ended June 30, 2009 would have been as follows: </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="20%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> </tr>   <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Net income/(loss) attributable to <br /> NRG Energy, Inc. as reported </div></td> <td> </td> <td align="left">$</td> <td align="right">233</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">316</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">253</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(8</td> <td nowrap="nowrap">)</td> <td> </td> <td align="left">$</td> <td align="right">16</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">137</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">4</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(320</td> <td nowrap="nowrap">)</td> <td> </td> <td align="left">$</td> <td align="right">—</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">631</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Increase/(decrease) in net income/(loss) attributable to NRG Energy, Inc. </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(11</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">8</td> <td> </td> <td> </td> <td> </td> <td align="right">4</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(1</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="41" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px"><b>Adjusted net income/(loss) attributable to<br /> NRG Energy, Inc.</b> </div></td> <td> </td> <td align="left">$</td> <td align="right">222</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">324</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">257</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(9</td> <td nowrap="nowrap">)</td> <td> </td> <td align="left">$</td> <td align="right">16</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">137</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">4</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(320</td> <td nowrap="nowrap">)</td> <td> </td> <td align="left">$</td> <td align="right">—</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">631</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="41" align="left" style="border-top: 2px solid #000000"> </td> </tr>  </table> </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="19%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="19" style="border-bottom: 1px solid #000000"><b>Wholesale Power Generation</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td nowrap="nowrap" align="left"><b>(In millions)</b></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>South</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td nowrap="nowrap" align="left"><b>Six months ended June 30, 2008</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>  Texas</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>  Northeast</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>  Central</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>      West</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>  International</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>  Thermal</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>  Corporate</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>  Elimination</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>  Total</b></td> </tr>   <tr style="font-size: 1px"> <td colspan="37" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Operating revenues </div></td> <td> </td> <td align="left">$</td> <td align="right">1,400</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">625</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">351</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">87</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">81</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">78</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(2</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(2</td> <td nowrap="nowrap">)</td> <td> </td> <td align="left">$</td> <td align="right">2,618</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Depreciation and amortization </div></td> <td> </td> <td> </td> <td align="right">226</td> <td> </td> <td> </td> <td> </td> <td align="right">51</td> <td> </td> <td> </td> <td> </td> <td align="right">34</td> <td> </td> <td> </td> <td> </td> <td align="right">4</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">5</td> <td> </td> <td> </td> <td> </td> <td align="right">2</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">322</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Equity in (losses)/earnings of </div> <div style="margin-left:25px; text-indent:-15px">unconsolidated affiliates </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(50</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(3</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">30</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(23</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Income/(loss) from continuing operations before income taxes </div></td> <td> </td> <td> </td> <td align="right">81</td> <td> </td> <td> </td> <td> </td> <td align="right">14</td> <td> </td> <td> </td> <td> </td> <td align="right">33</td> <td> </td> <td> </td> <td> </td> <td align="right">25</td> <td> </td> <td> </td> <td> </td> <td align="right">47</td> <td> </td> <td> </td> <td> </td> <td align="right">7</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(192</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(10</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">5</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Income from discontinued operations, net of income taxes </div></td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">172</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">172</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px"><b>Net income/(loss) attributable to <br /> NRG Energy, Inc.</b> </div></td> <td> </td> <td align="left">$</td> <td align="right">50</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">14</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">33</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">25</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">210</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">7</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(153</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(10</td> <td nowrap="nowrap">)</td> <td> </td> <td align="left">$</td> <td align="right">176</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="37" align="left" style="border-top: 2px solid #000000"> </td> </tr>  </table> </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> </div> </body> </html>

<html> <head></head> <body>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="justify" style="font-size: 10pt; margin-top: 10pt"><b>Note 12 — Income Taxes</b> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt"><b><i>Effective Tax Rate</i></b> </div> <div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 6pt">     Income taxes included in continuing operations were as follows: </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="76%"> </td> <td width="5%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="5%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>Three months ended June 30,</b></td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td nowrap="nowrap" align="left"><b>(In millions except otherwise noted)</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>2009</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>2008</b></td> </tr>   <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Income tax expense (benefit) </div></td> <td> </td> <td align="right">$</td> <td align="right">150</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right">$</td> <td align="right">(53</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Effective tax rate </div></td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">25.8</td> <td nowrap="nowrap">%</td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">56.4</td> <td nowrap="nowrap">%</td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 2px solid #000000"> </td> </tr>  </table> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     For the three months ended June 30, 2009, NRG’s overall effective tax rate on continuing operations was different than the statutory rate of 35% primarily due to a reduction in the state and local income tax rate as a result of the Reliant Energy acquisition and the sale of the MIBRAG facility. For the three months ended June 30, 2008, NRG’s effective tax rate was increased primarily due to the movement of the valuation allowance established as result of capital losses generated in the period for which there is no projected capital gain or available tax planning strategies. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     Income taxes included in continuing operations were as follows: </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="76%"> </td> <td width="5%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="5%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>Six months ended June 30,</b></td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td nowrap="nowrap" align="left"><b>(In millions except otherwise noted)</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>2009</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>2008</b></td> </tr>   <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Income tax expense </div></td> <td> </td> <td align="right">$</td> <td align="right">448</td> <td> </td> <td> </td> <td align="right">$</td> <td align="right">1</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Effective tax rate </div></td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">41.5</td> <td nowrap="nowrap">%</td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">20.0</td> <td nowrap="nowrap">%</td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 2px solid #000000"> </td> </tr>  </table> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     For the six months ended June 30, 2009, NRG’s overall effective tax rate on continuing operations was different than the statutory rate of 35% primarily due to an increase in valuation allowance as a result of capital losses generated in the six month period for which there are no projected capital gains or available tax planning strategies. Furthermore, the effective tax rate is decreased by the sale of the MIBRAG facility as well as a reduction of the state and local income tax rate as a result of the Reliant Energy acquisition. For the six months ended June 30, 2008, NRG’s overall effective tax rate was reduced primarily by foreign earnings that are taxed at rates in foreign jurisdictions lower than the U.S. statutory rate. </div> <p align="center" style="font-size: 10pt"> </p> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt"><b><i>Deferred tax assets, liabilities and valuation allowance</i></b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     On a provisional basis, NRG established deferred tax assets of $1,205 million and deferred tax liabilities of $1,194 million as a result of NRG’s acquisition of Reliant Energy. </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="justify" style="font-size: 10pt; margin-top: 10pt"><b><i>Valuation Allowance</i></b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     As of June 30, 2009, the Company’s valuation allowance was increased by approximately $80 million primarily due to losses generated in the period from derivative trading activity which require capital treatment for tax purposes. The Company increased its foreign valuation allowance by approximately $10 million. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt"><b><i>Uncertain tax benefits</i></b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     As of June 30, 2009, NRG has recorded a $463 million non-current tax liability for unrecognized tax benefits, resulting from taxable earnings for the period for which there are no NOLs available to offset for financial statement purposes. NRG has accrued interest and penalties related to these unrecognized tax benefits of approximately $9 million for the six months ended June 30, 2009, and has accrued approximately $17 million since adoption. The Company recognizes interest and penalties related to unrecognized tax benefits in income tax expense. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     NRG is subject to examination by taxing authorities for income tax returns filed in the U.S. federal jurisdiction and various state and foreign jurisdictions including major operations located in Germany and Australia. The Company is no longer subject to U.S. federal income tax examinations for years prior to 2002. With few exceptions, state and local income tax examinations are no longer open for years before 2002. The Company’s significant foreign operations are also no longer subject to examination by local jurisdictions for years prior to 2000. The Company continues to be under examination by the Internal Revenue Service. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt"><b><i>Tax Receivable and Payable</i></b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     As of June 30, 2009, the Company has recorded a tax receivable of approximately $49 million that represents a domestic federal tax receivable of $9 million and state tax receivable of $40 million, net of $6 million reserve. In addition, the Company has recorded a current payable of approximately $13 million which includes domestic tax payable of approximately $1 million as well as foreign taxes payable of approximately $12 million. </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> </div> </body> </html>

<html> <head></head> <body>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="justify" style="font-size: 10pt; margin-top: 10pt"><b>Note 13 — Benefit Plans and Other Postretirement Benefits</b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">  <b><i>NRG Defined Benefit Plans</i></b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     NRG sponsors and operates three defined benefit pension and other postretirement plans. The NRG Plan for Bargained Employees and the NRG Plan for Non-Bargained Employees are maintained solely for eligible legacy NRG participants. A third plan, the Texas Genco Retirement Plan, is maintained for participation solely by eligible employees. The total amount of employer contributions paid for the six months ended June 30, 2009 was $14 million. NRG expects to make $16 million in further contributions for the remainder of 2009. The total 2009 planned contribution of $30 million was a decrease of $30 million from the expected contributions as disclosed in Note 12 — <i>Benefit Plans and Other Postretirement Benefits</i>, in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2008. This decrease in the 2009 expected contributions is due to the adoption by the Company in March 2009 of the new funding method options now available. The new methods were made allowable under new IRS guidance on the application of recent Congressional legislation on funding requirements. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     The net periodic pension cost related to all of the Company’s defined benefit pension plans include the following components: </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="50%"> </td> <td width="2%"> </td> <td width="3%"> </td> <td width="2%"> </td> <td width="4%"> </td> <td width="2%"> </td> <td width="3%"> </td> <td width="2%"> </td> <td width="4%"> </td> <td width="2%"> </td> <td width="3%"> </td> <td width="2%"> </td> <td width="4%"> </td> <td width="2%"> </td> <td width="3%"> </td> <td width="2%"> </td> <td width="4%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td nowrap="nowrap" align="center" colspan="15" style="border-bottom: 1px solid #000000"><b>Defined Benefit Pension Plans</b></td> <td style="border-bottom: 1px solid #000000"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td style="border-bottom: 1px solid #000000"> </td> <td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>Three months ended June 30,</b></td> <td style="border-bottom: 1px solid #000000"> </td> <td style="border-bottom: 1px solid #000000"> </td> <td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>Six months ended June 30,</b></td> <td style="border-bottom: 1px solid #000000"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td nowrap="nowrap" align="left"><b>(In millions)</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>2009</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>2008</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>2009</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>2008</b></td> </tr>   <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Service cost benefits earned </div></td> <td> </td> <td align="right"> $ </td> <td align="right">3</td> <td> </td> <td> </td> <td align="right"> $ </td> <td align="right">3</td> <td> </td> <td> </td> <td align="right"> $ </td> <td align="right">7</td> <td> </td> <td> </td> <td align="right"> $ </td> <td align="right">7</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Interest cost on benefit obligation </div></td> <td> </td> <td> </td> <td align="right">5</td> <td> </td> <td> </td> <td> </td> <td align="right">4</td> <td> </td> <td> </td> <td> </td> <td align="right">10</td> <td> </td> <td> </td> <td> </td> <td align="right">9</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Prior service cost </div></td> <td> </td> <td> </td> <td align="right">1</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">1</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Net gain </div></td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(1</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(1</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Expected return on plan assets </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(4</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(3</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(8</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(7</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Net periodic benefit cost </div></td> <td> </td> <td align="right"> $ </td> <td align="right">5</td> <td> </td> <td> </td> <td align="right"> $ </td> <td align="right">3</td> <td> </td> <td> </td> <td align="right"> $ </td> <td align="right">10</td> <td> </td> <td> </td> <td align="right"> $ </td> <td align="right">8</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 2px solid #000000"> </td> </tr> <tr valign="bottom"> <td colspan="17"> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     The net periodic cost related to all of the Company’s other postretirement benefits plans includes the following components: </div> </td> </tr> <tr style="font-size: 10pt"> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td nowrap="nowrap" align="center" colspan="15" style="border-bottom: 1px solid #000000"><b>Other Postretirement Benefits Plans</b></td> <td style="border-bottom: 1px solid #000000"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td style="border-bottom: 1px solid #000000"> </td> <td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>Three months ended June 30,</b></td> <td style="border-bottom: 1px solid #000000"> </td> <td style="border-bottom: 1px solid #000000"> </td> <td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>Six months ended June 30,</b></td> <td style="border-bottom: 1px solid #000000"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td nowrap="nowrap" align="left"><b>(In millions)</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>2009</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>2008</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>2009</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>2008</b></td> </tr>   <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Service cost benefits earned </div></td> <td> </td> <td align="right">$</td> <td align="right">1</td> <td> </td> <td> </td> <td align="right">$</td> <td align="right">—</td> <td> </td> <td> </td> <td align="right">$</td> <td align="right">2</td> <td> </td> <td> </td> <td align="right">$</td> <td align="right">1</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Interest cost on benefit obligation </div></td> <td> </td> <td> </td> <td align="right">1</td> <td> </td> <td> </td> <td> </td> <td align="right">2</td> <td> </td> <td> </td> <td> </td> <td align="right">3</td> <td> </td> <td> </td> <td> </td> <td align="right">3</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Net periodic benefit cost </div></td> <td> </td> <td align="right">$</td> <td align="right">2</td> <td> </td> <td> </td> <td align="right">$</td> <td align="right">2</td> <td> </td> <td> </td> <td align="right">$</td> <td align="right">5</td> <td> </td> <td> </td> <td align="right">$</td> <td align="right">4</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 2px solid #000000"> </td> </tr>  </table> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">  <b><i>STP Defined Benefit Plans</i></b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     NRG has a 44% undivided ownership interest in South Texas Project, or STP. South Texas Project Nuclear Operating Company, or STPNOC, which operates and maintains STP, provides its employees a defined benefit pension plan as well as postretirement health and welfare benefits. Although NRG does not sponsor the STP plan, it reimburses STPNOC for 44% of the contributions made towards its retirement plan obligations. The total amount of employer contributions reimbursed to STPNOC for the six months ended June 30, 2009 was $2 million. The Company recognized net periodic costs related to its 44% interest in STP defined benefits plans of $2 million for both the three months ended June 30, 2009 and 2008, respectively. The Company recognized net periodic costs related to its 44% interest in STP defined benefits plans of $5 million and $4 million for the six months ended June 30, 2009 and 2008, respectively. </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> </div> </body> </html>

<html> <head></head> <body>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="justify" style="font-size: 10pt; margin-top: 10pt"><b>Note 14 — Commitments and Contingencies</b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">  <b><i>Operating Lease Commitments</i></b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     As a result of the acquisition of Reliant Energy, the Company’s operating lease commitments have increased primarily due to additional lease agreements for office space through 2021. As of June 30, 2009, eight additional office space locations were under lease for future commitments of approximately $89 million. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">  <b><i>Fuel Commitments</i></b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     NRG enters into long-term contractual arrangements to procure fuel and transportation services for the Company’s generation assets. NRG’s total net coal commitments, which span from 2009 through 2012, decreased by approximately $266 million during the six months ended June 30, 2009 as the 2009 monthly commitments were settled. In addition, NRG’s natural gas purchase commitments decreased by approximately $162 million during the six months ended June 30, 2009, as the 2009 monthly commitments were settled and average natural gas prices decreased. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     <b><i>Purchased Power Commitments</i></b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     As a result of the acquisition of Reliant Energy, NRG is party to purchased power contracts of various quantities and durations that are not classified as derivative assets and liabilities. These contracts are not included in the consolidated balance sheet as of June 30, 2009. Minimum purchase commitment obligations under these agreements are as follows as of June 30, 2009: </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="76%"> </td> <td width="5%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="5%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td nowrap="nowrap" align="left"><b>(In millions)</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Fixed Pricing</b><sup style="font-size: 85%; vertical-align: text-top"><b>(a)</b></sup></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Variable Pricing</b><sup style="font-size: 85%; vertical-align: text-top"><b>(b)</b></sup></td> </tr>   <tr style="font-size: 1px"> <td colspan="9" valign="top" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td valign="top"> <div style="margin-left:0px; text-indent:-0px">Remainder of 2009 </div></td> <td> </td> <td nowrap="nowrap" align="right" valign="top">$</td> <td align="right" valign="top">46</td> <td nowrap="nowrap" valign="top"> </td> <td> </td> <td nowrap="nowrap" align="right" valign="top">$  </td> <td align="right" valign="top">85</td> <td nowrap="nowrap" valign="top"> </td> </tr> <tr valign="bottom"> <td valign="top"> <div style="margin-left:0px; text-indent:-0px">2010 </div></td> <td> </td> <td nowrap="nowrap" align="right" valign="top"> </td> <td align="right" valign="top">42</td> <td nowrap="nowrap" valign="top"> </td> <td> </td> <td colspan="3" align="center" valign="top">8</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td valign="top"> <div style="margin-left:0px; text-indent:-0px">2011 </div></td> <td> </td> <td nowrap="nowrap" align="right" valign="top"> </td> <td align="right" valign="top">24</td> <td nowrap="nowrap" valign="top"> </td> <td> </td> <td colspan="3" align="center" valign="top">—  </td> </tr> <tr valign="bottom"> <td valign="top"> <div style="margin-left:0px; text-indent:-0px">2012 </div></td> <td> </td> <td nowrap="nowrap" align="right" valign="top"> </td> <td align="right" valign="top">20</td> <td nowrap="nowrap" valign="top"> </td> <td> </td> <td colspan="3" align="center" valign="top">—  </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td valign="top"> <div style="margin-left:0px; text-indent:-0px">2013 </div></td> <td> </td> <td nowrap="nowrap" align="right" valign="top"> </td> <td align="right" valign="top">10</td> <td nowrap="nowrap" valign="top"> </td> <td> </td> <td colspan="3" align="center" valign="top">—  </td> </tr> <tr style="font-size: 1px"> <td colspan="9" valign="top" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td valign="top"> <div style="margin-left:0px; text-indent:-0px"><b>Total</b> </div></td> <td> </td> <td nowrap="nowrap" align="right" valign="top">$</td> <td align="right" valign="top">142</td> <td nowrap="nowrap" valign="top"> </td> <td> </td> <td nowrap="nowrap" align="right" valign="top">$  </td> <td align="right" valign="top">93</td> <td nowrap="nowrap" valign="top"> </td> </tr> <tr style="font-size: 1px"> <td colspan="9" valign="top" align="left" style="border-top: 2px solid #000000"> </td> </tr>  </table> </div> <div style="margin-top: 10pt"> <table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left"> <tr valign="top" style="font-size: 8pt; color: #000000; background: transparent"> <td width="2%" nowrap="nowrap" align="left"><sup style="font-size: 85%; vertical-align: text-top">(a)</sup></td> <td width="1%"> </td> <td> <div style="text-align: justify">As of June 30, 2009, the maximum remaining term under any individual purchased power contract is four years. </div></td> </tr> <tr> <td style="font-size: 3pt"> </td> </tr> <tr valign="top" style="font-size: 8pt; color: #000000; background: transparent"> <td width="2%" nowrap="nowrap" align="left"><sup style="font-size: 85%; vertical-align: text-top">(b)</sup></td> <td width="1%"> </td> <td> <div style="text-align: justify">For contracts with variable pricing components, estimated prices are based on forward commodity curves as of June 30, 2009. </div></td> </tr> </table> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">  <b><i>Other</i></b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     As a result of the acquisition of Reliant Energy, the Company acquired the naming rights, including advertising and other benefits, for a football stadium and other convention and entertainment facilities included in the stadium complex in Houston, Texas. Pursuant to this agreement, the Company is required to pay $10 million per year through 2031. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     See discussion in Note 3, <i>Business Acquisition, </i>regarding the CSRA as a result of the acquisition of Reliant Energy on May 1, 2009. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     <b>First and Second Lien Structure</b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     NRG has granted first and second liens to certain counterparties on substantially all of the Company’s assets to reduce the amount of cash collateral and letters of credit that it would otherwise be required to post from time to time to support its obligations under out-of-the-money hedge agreements for forward sales of power or MWh equivalents. The Company’s lien counterparties may have a claim on NRG’s assets to the extent market prices exceed the hedged price. As of June 30, 2009 and July 23, 2009, all hedges under the first and second liens were in-the-money on a counterparty aggregate basis. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">  <b><i>Repowering</i></b><b>NRG Initiatives</b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     NRG has capitalized $32 million through June 30, 2009, for the repowering of its El Segundo generating facility in California. As a result of permitting delays related to on-going Natural Resource Defense Counsel claims, the El Segundo project will not reach its original completion date of June 1, 2011. The Company is contemplating certain PPA modifications including the commercial operations date. </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="justify" style="font-size: 10pt; margin-top: 10pt"><b>Contingencies</b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     Set forth below is a description of the Company’s material legal proceedings. The Company believes that it has valid defenses to these legal proceedings and intends to defend them vigorously. Pursuant to the requirements of SFAS No. 5, <i>Accounting for Contingencies, </i>or SFAS 5, and related guidance, NRG records reserves for estimated losses from contingencies when information available indicates that a loss is probable and the amount of the loss, or range of loss, can be reasonably estimated. In addition, legal costs are expensed as incurred. Management has assessed each of the following matters based on current information and made a judgment concerning its potential outcome, considering the nature of the claim, the amount and nature of damages sought, and the probability of success. Unless specified below, the Company is unable to predict the outcome of these legal proceedings or reasonably estimate the scope or amount of any associated costs and potential liabilities. As additional information becomes available, management adjusts its assessment and estimates of such contingencies accordingly. Because litigation is subject to inherent uncertainties and unfavorable rulings or developments, it is possible that the ultimate resolution of the Company’s liabilities and contingencies could vary from its currently recorded reserves and such differences could be material. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     In addition to the legal proceedings noted below, NRG and its subsidiaries are party to other litigation or legal proceedings arising in the ordinary course of business. In management’s opinion, the disposition of these ordinary course matters will not materially adversely affect NRG’s consolidated financial position, results of operations, or cash flows. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt"> <b><i>Exelon Related Litigation</i></b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">  <b>Delaware Chancery Court</b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     On November 11, 2008, Exelon and its wholly-owned subsidiary Exelon Xchange filed a complaint against NRG and NRG’s Board of Directors. The complaint alleges, among other things, that NRG’s Board of Directors failed to give due consideration and to take appropriate action in response to the acquisition proposal announced by Exelon on October 19, 2008, in which Exelon offered to acquire all of the outstanding shares of NRG common stock at an exchange ratio of 0.485 Exelon shares for each NRG common share. On November 14, 2008, NRG and NRG’s Board of Directors filed a motion to dismiss Exelon’s complaint on the grounds that it failed to state a claim upon which relief can be granted. On March 16, 2009, prior to responding to the motion to dismiss, Exelon and Exelon Xchange filed an amended complaint. The amended complaint seeks, among other things, declaratory and injunctive relief: (i) declaring that NRG and its Board of Directors breached its fiduciary duties by summarily rejecting the October 19, 2008 Exelon offer, by resorting to defensive measures to interfere with Exelon’s tender offer, and by making false and misleading statements to NRG stockholders; (ii) compelling NRG and its Board of Directors to approve the Exelon tender offer by waiving the application of Section 203 of the Delaware General Corporation Law; (iii) compelling NRG and its Board of Directors from taking any actions with respect to regulatory authorities that would thwart or interfere with the Exelon tender offer; and (iv) compelling NRG and its Board of Directors to correct any false and misleading statements to NRG stockholders and to disclose all material facts necessary for NRG stockholders to make informed decisions regarding the October 19, 2008 Exelon offer. On April 17, 2009, NRG and NRG’s Board of Directors filed a partial motion to dismiss the amended complaint asserting that many of the claims are subject to the business judgment rule, are premature, and should be dismissed for failure to state a claim upon which relief can be granted. Briefing on the motion commenced on June 12, 2009, and concluded on July 24, 2009. On July 28, 2009, Exelon, NRG, and NRG’s Board of Directors collectively filed a Stipulation of Dismissal of Exelon’s lawsuit, thereby ending the case. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     On December 11, 2008, the Louisiana Sheriffs’ Pension & Relief Fund and City of St. Claire Shores Police & Fire Retirement System, on behalf of themselves and all others similarly situated, served a previously filed complaint on NRG and its Board of Directors alleging substantially similar allegations as the Exelon complaint. On December 23, 2008, NRG and NRG’s Board of Directors filed a motion to dismiss the complaint on the grounds that it failed to state a claim upon which relief can be granted. On March 16, 2009, prior to responding to the motion to dismiss, these plaintiffs filed an amended complaint against only NRG’s Board of Directors. The amended complaint seeks, among other things, declaratory and injunctive relief: (i) declaring that it is a proper class action; (ii) declaring that the NRG Board of Directors breached its fiduciary duties by summarily rejecting the October 19, 2008 Exelon offer and by resorting to defensive measures designed to prevent any potential acquirer from entering into a value-maximizing transaction with NRG; (iii) compelling NRG’s Board of Directors to engage in a dialogue with Exelon to more fully understand the October 19, 2008 offer and to determine the potential for any improvement thereon; (iv) enjoining NRG from proceeding with the acquisition of Reliant Energy’s retail business; (v) enjoining the NRG’s Board of Directors from taking any actions designed to block a transaction with Exelon; and (vi) awarding plaintiffs their costs and fees. On April 17, 2009, the NRG Board of Directors filed a motion to dismiss the amended complaint asserting that it fails to state a claim upon which relief can be granted. Briefing on the motion commenced on June 11, 2009, and will conclude on a date to be determined at a July 31, 2009, hearing. </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 1%"><b>Mercer County, New Jersey Superior Court</b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     On January 6, 2009, three lawsuits previously filed against NRG and NRG’s Board of Directors on behalf of individual shareholders and all others similarly situated were consolidated into one case in the Law Division of the Superior Court of Mercer County, New Jersey. On January 21, 2009, the plaintiffs filed an Amended Consolidated Complaint in which they allege a single count of breach of fiduciary duty against NRG’s Board of Directors and seek injunctive relief: (i) declaring that the action is a class action and certifying plaintiffs as class plaintiffs and counsel as class counsel; (ii) declaring that defendants breached their fiduciary duties by summarily rejecting the Exelon offer; (iii) ordering defendants to negotiate with respect to the Exelon offer or with respect to another transaction to maximize shareholder value; (iv) ordering defendants to exempt Exelon’s offer from Section 203 of the Delaware General Corporations Law; (v) awarding compensatory damages including interest; (vi) awarding plaintiffs costs and fees; and (vii) granting other relief the Court deems proper. On February 20, 2009, NRG’s Board of Directors filed a motion to dismiss the amended consolidated complaint for failure to state a claim or, in the alternative, to stay the action in favor of the Delaware Chancery Court proceedings. On March 19, 2009, the plaintiffs filed their response and on April 6, 2009, NRG’s Board of Directors filed its reply. On April 17, 2009, and again on May 7, 2009, oral argument was held and on June 18, 2009, the court found in favor of NRG’s Board of Directors and stayed the consolidated lawsuits pending resolution of the purported class-action lawsuit filed in Delaware Chancery court by the Louisiana Sheriffs’ Pension & Relief Fund and City of St. Claire Shores Police & Fire Retirement System. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 1%"><b><i>California Department of Water Resources</i></b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     This matter concerns, among other contracts and other defendants, the California Department of Water Resources, or CDWR, and its wholesale power contract with subsidiaries of WCP (Generation) Holdings, Inc., or WCP. The case originated with a February 2002 complaint filed by the State of California alleging that many parties, including WCP subsidiaries, overcharged the State of California. For WCP, the alleged overcharges totaled approximately $940 million for 2001 and 2002. The complaint demanded that the Federal Energy Regulatory Commission, or FERC, abrogate the CDWR contract and sought refunds associated with revenues collected under the contract. In 2003, the FERC rejected this complaint, denied rehearing, and the case was appealed to the U.S. Court of Appeals for the Ninth Circuit where oral argument was held on December 8, 2004. On December 19, 2006, the Ninth Circuit decided that in the FERC’s review of the contracts at issue, the FERC could not rely on the <i>Mobile-Sierra </i>standard presumption of just and reasonable rates, where such contracts were not reviewed by the FERC with full knowledge of the then existing market conditions. WCP and others sought review by the U.S. Supreme Court. WCP’s appeal was not selected, but instead held by the Supreme Court. In the appeal that was selected by the Supreme Court, on June 26, 2008 the Supreme Court ruled: (i) that the <i>Mobile-Sierra </i>public interest standard of review applied to contracts made under a seller’s market-based rate authority; (ii) that the public interest “bar” required to set aside a contract remains a very high one to overcome; and (iii) that the <i>Mobile-Sierra </i>presumption of contract reasonableness applies when a contract is formed during a period of market dysfunction unless (a) such market conditions were caused by the illegal actions of one of the parties or (b) the contract negotiations were tainted by fraud or duress. In this related case, the U.S. Supreme Court affirmed the Ninth Circuit’s decision agreeing that the case should be remanded to FERC to clarify FERC’s 2003 reasoning regarding its rejection of the original complaint relating to the financial burdens under the contracts at issue and to alleged market manipulation at the time these contracts were formed. As a result, the U.S. Supreme Court then reversed and remanded the WCP CDWR case to the Ninth Circuit for treatment consistent with its June 26, 2008 decision in the related case. On October 20, 2008, the Ninth Circuit asked the parties in the remanded CDWR case, including WCP and the FERC, whether that Court should answer a question the U.S. Supreme Court did not address in its June 26, 2008, decision; whether the <i>Mobile-Sierra</i> doctrine applies to a third-party that was not a signatory to any of the wholesale power contracts, including the CDWR contract, at issue in that case. Without answering that reserved question, on December 4, 2008, the Ninth Circuit vacated its prior opinion and remanded the WCP CDWR case back to the FERC for proceedings consistent with the U.S. Supreme Court’s June 26, 2008, decision. On December 15, 2008, WCP and the other seller-defendants filed with FERC a Motion for Order Governing Proceedings on Remand. On January 14, 2009, the Public Utilities Commission of the State of California filed an Answer and Cross Motion for an Order Governing Procedures on Remand, and on January 28, 2009, WCP and the other seller-defendants filed their reply. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     At this time, while NRG cannot predict with certainty whether WCP will be required to make refunds for rates collected under the CDWR contract or estimate the range of any such possible refunds, a reconsideration of the CDWR contract by the FERC with a resulting order mandating significant refunds could have a material adverse impact on NRG’s financial position, statement of operations, and statement of cash flows. As part of the 2006 acquisition of Dynegy’s 50% ownership interest in WCP, WCP and NRG assumed responsibility for any risk of loss arising from this case, unless any such loss was deemed to have resulted from certain acts of gross negligence or willful misconduct on the part of Dynegy, in which case any such loss would be shared equally between WCP and Dynegy. </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="justify" style="font-size: 10pt; margin-top: 10pt">      On April 27, 2009, the U.S. Supreme Court granted <i>certiorari </i>in an unrelated proceeding involving the <i>Mobile-Sierra </i>doctrine that may affect the standard of review applied to the CDWR contract on remand before the FERC. Specifically, on March 18, 2008, the U.S. Court of Appeals for the DC Circuit rejected the appeals filed by the Attorneys General of the State of Connecticut and Commonwealth of Massachusetts regarding the settlement that established the current New England capacity market. The settlement, filed with FERC on March 7, 2006 provides for interim capacity transition payments for all generators in New England for the period starting December 1, 2006 through May 31, 2010 and for the Forward Capacity Market thereafter. The DC Circuit Court of Appeals rejected all substantive challenges to the settlement, but sustained one procedural argument relating to the applicability of the <i>Mobile-Sierra </i>doctrine to non-settling parties. NRG sought certiorari before the U.S. Supreme Court, which was granted on April 27, 2009, and on July 8, 2009, NRG submitted its brief. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 1%"><b><i>Louisiana Generating, LLC</i></b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     On February 11, 2009, the U.S. Department of Justice acting at the request of the U.S. Environmental Protection Agency, or U.S. EPA, commenced a lawsuit against Louisiana Generating, LLC in federal district court in the Middle District of Louisiana alleging violations of the Clean Air Act, or CAA, at the Big Cajun II power plant. This is the same matter for which Notices of Violation, or NOVs, were issued to Louisiana Generating, LLC on February 15, 2005, and on December 8, 2006. Specifically, it is alleged that in the late 1990’s, several years prior to NRG’s acquisition of the Big Cajun II power plant from the Cajun Electric bankruptcy and several years prior to the NRG bankruptcy, modifications were made to Big Cajun II Units 1 and 2 by the prior owners without appropriate or adequate permits and without installing and employing the best available control technology, or BACT, to control emissions of nitrogen oxides and/or sulfur dioxides. The relief sought in the complaint includes a request for an injunction to: (i) preclude the operation of Units 1 and 2 except in accordance with the CAA; (ii) order the installation of BACT on Units 1 and 2 for each pollutant subject to regulation under the CAA; (iii) obtain all necessary permits for Units 1 and 2; (iv) order the surrender of emission allowances or credits; (v) conduct audits to determine if any additional modifications have been made which would require compliance with the CAA’s Prevention of Significant Deterioration program; (vi) award to the Department of Justice its costs in prosecuting this litigation; and (vii) assess civil penalties of up to $27,500 per day for each CAA violation found to have occurred between January 31, 1997, and March 15, 2004, up to $32,500 for each CAA violation found to have occurred between March 15, 2004, and January 12, 2009, and up to $37,500 for each CAA violation found to have occurred after January 12, 2009. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     On April 27, 2009, Louisiana Generating, LLC made several filings. First, it filed an objection in the Cajun Electric Cooperative Power, Inc.’s bankruptcy proceeding in the U.S. Bankruptcy Court for the Middle District of Louisiana to seek to prevent the bankruptcy from closing. Second, it filed a complaint in the same bankruptcy proceeding in the same court seeking a judgment that: (i) it did not assume liability from Cajun Electric for any claims or other liabilities under environmental laws with respect to Big Cajun II that arose, or are based on activities that were undertaken, prior to the closing date of the acquisition; (ii) it is not otherwise the successor to Cajun Electric; and (iii) Cajun Electric and/or the Bankruptcy Trustee are exclusively liable for the violations alleged in the February 11, 2009 lawsuit to the extent that such claims are determined to have merit. Last, it filed in the federal district court for the Middle District of Louisiana a Motion for an Extension of Time to File Responsive Pleadings arguing that the court should extend the May 11, 2009, deadline to respond to the February 11, 2009 lawsuit until such time as directed by the court following resolution of Louisiana Generating, LLC’s Motion for Stay of Proceedings Pending Resolution of Certain Bankruptcy Actions filed concurrently with the Motion for an Extension of Time. On May 4, 2009, the Department of Justice filed its opposition to the Motion for Stay. On June 4, 2009, after the recusal of the federal bankruptcy judge in this matter, the federal district court for the Middle District of Louisiana issued an order recommending that another bankruptcy judge be appointed to hear the matter. The decision, by the Chief Judge of the U.S. Court of Appeals for the Fifth Circuit, has yet to be made. On June 8, 2009, the parties filed a joint status report setting forth their views of the case and proposing a trial schedule. On June 18, 2009, Louisiana Generating, LLC filed a motion to bifurcate the Department of Justice lawsuit into separate liability and remedy phases, and on June 30, 2009, the Department of Justice filed its opposition. </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 1%"><b><i>Citizens for Clean Power</i></b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     On November 6, 2008, Citizens for Clean Power, or CCP, filed a notice of its intent to file a lawsuit under the CAA against Indian River Power, LLC, or IRP, seeking to enforce opacity limitations applicable to units 1, 2, 3, and 4. On January 5, 2009, the Delaware Department of Natural Resources and Environmental Control, or DNREC, filed a lawsuit relating to opacity issues against IRP in the Superior Court in Kent County, Delaware. On January 6, 2009, DNREC and IRP agreed to a consent order resolving the DNREC action in which IRP agreed to pay a $5,000 civil penalty and agreed to purchase for DNREC’s use an Ultrafine Particle Monitor for approximately $60,000. The consent order was filed with the court on February 6, 2009, and entered by the court on February 13, 2009, thereby precluding CCP’s ability under the CAA to commence its noticed lawsuit. On February 26, 2009, notwithstanding the entry of the consent order, CCP filed a complaint against IRP, in federal district court in Delaware. The complaint seeks injunctive and declarative relief in addition to civil penalties: (i) declaring that IRP violated the CAA through 6,304 opacity violations between 2004 and 2008; (ii) seeking civil penalties of up to $32,500 for each such violation; (iii) enjoining IRP from violating the CAA; (iv) ordering IRP to assess and mitigate any environmental injuries caused by its emissions; and (v) awarding CCP its fees and costs. On March 25, 2009, IRP filed a motion to dismiss the complaint, on April 7, 2009, CCP filed its opposition, and on April 20, 2009, IRP filed its reply. On July 23, 2009, the court dismissed the case thereby ending the matter. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 1%"><b><i>Excess Mitigation Credits</i></b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     From January 2002 to April 2005, CenterPoint Energy applied excess mitigation credits, or EMCs, to its monthly charges to retail electric providers as ordered by the Public Utility Commission of Texas, or PUCT. The PUCT imposed these credits to facilitate the transition to competition in Texas, which had the effect of lowering the retail electric providers’ monthly charges payable to CenterPoint Energy. As indicated in its Petition for Review filed with the Supreme Court of Texas on June 2, 2008, CenterPoint Energy has claimed that the portion of those EMCs credited to Reliant Energy Retail Services, LLC, or RERS, a retail electric provider and NRG subsidiary acquired from RRI, totaled $385 million for RERS’s “Price to Beat” Customers. It is unclear what the actual number may be. “Price to Beat” was the rate RERS was required by state law to charge residential and small commercial customers that were transitioned to RERS from the incumbent integrated utility company commencing in 2002. In its original stranded cost case brought before the PUCT on March 31, 2004, CenterPoint Energy sought recovery of all EMCs that were credited to all retail electric providers, including RERS, and the PUCT ordered that relief in its Order on Rehearing in Docket No. 29526, on December 17, 2004. After an appeal to state district court, the court entered a final judgment on August 26, 2005, affirming the PUCT’s order with regard to EMCs credited to RERS. Various parties filed appeals of that judgment with the Court of Appeals for the Third District of Texas with the first such appeal filed on the same date as the state district court judgment and the last such appeal filed on October 10, 2005. On April 17, 2008, the Court of Appeals for the Third District reversed the lower court’s decision ruling that CenterPoint Energy’s stranded cost recovery should exclude only EMCs credited to RERS for its “Price to Beat” customers. On June 2, 2008, CenterPoint Energy filed a Petition for Review with the Supreme Court of Texas and on June 19, 2009, the Court agreed to consider the CenterPoint Energy appeal as well as two related petitions for review filed by other entities. Oral argument will occur on October 6, 2009. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     In November 2008, CenterPoint Energy and RRI, on behalf of itself and affiliates including RERS, agreed to suspend unexpired deadlines, if any, related to limitations periods that might exist for possible claims against REI and its affiliates if CenterPoint Energy is ultimately not allowed to include in its stranded cost calculation those EMCs previously credited to RERS. Regardless of the outcome of the Texas Supreme Court proceeding, NRG believes that any possible future CenterPoint Energy claim against RERS for EMCs credited to RERS would lack legal merit. No such claim has been filed. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 1%"><b><i>Disputed Claims Reserve</i></b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     As part of NRG’s plan of reorganization, NRG funded a disputed claims reserve for the satisfaction of certain general unsecured claims that were disputed claims as of the effective date of the plan. Under the terms of the plan, as such claims are resolved, the claimants are paid from the reserve on the same basis as if they had been paid out in the bankruptcy. To the extent the aggregate amount required to be paid on the disputed claims exceeds the amount remaining in the funded claims reserve, NRG will be obligated to provide additional cash and common stock to satisfy the claims. Any excess funds in the disputed claims reserve will be reallocated to the creditor pool for the pro rata benefit of all allowed claims. The contributed common stock and cash in the reserves is held by an escrow agent to complete the distribution and settlement process. Since NRG has surrendered control over the common stock and cash provided to the disputed claims reserve, NRG recognized the issuance of the common stock as of December 6, 2003, and removed the cash amounts from the balance sheet. Similarly, NRG removed the obligations relevant to the claims from the balance sheet when the common stock was issued and cash contributed. </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     On April 3, 2006, the Company made a supplemental distribution to creditors under the Company’s Chapter 11 bankruptcy plan, totaling $25 million in cash and 5,082,000 shares of common stock. On December 18, 2008, NRG filed with the U.S. Bankruptcy Court for the Southern District of New York a Closing Report and an Application for Final Decree Closing the Chapter 11 Case for NRG Energy, Inc. et al and on December 29, 2008, the court entered the Final Decree. As of December 21, 2008, the reserve held approximately $9.8 million in cash and 1,282,783 shares of common stock. On December 21, 2008, the Company issued an instruction letter to The Bank of New York Mellon to distribute all remaining cash and stock in the Disputed Claims Reserve to NRG’s creditors. On January 12, 2009, The Bank of New York Mellon commenced the distribution of all remaining cash and stock in the Disputed Claim Reserve to the Company’s creditors pursuant to NRG’s Chapter 11 bankruptcy plan and on July 13, 2009, that distribution was complete. </div> </div> </body> </html>

<html> <head></head> <body>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="justify" style="font-size: 10pt; margin-top: 20pt"><b>Note 15 — Regulatory Matters</b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     NRG operates in a highly regulated industry and is subject to regulation by various federal and state agencies. As such, NRG is affected by regulatory developments at both the federal and state levels and in the regions in which NRG operates. In addition, NRG is subject to the market rules, procedures and protocols of the various ISO markets in which NRG participates. These power markets are subject to ongoing legislative and regulatory changes that may impact NRG’s wholesale and retail businesses. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     In addition to the regulatory proceedings noted below, NRG and its subsidiaries are a party to other regulatory proceedings arising in the ordinary course of business or have other regulatory exposure. In management’s opinion, the disposition of these ordinary course matters will not materially adversely affect NRG’s consolidated financial position, results of operations, or cash flows. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     <i>PJM — </i>By Order dated March 17, 2009, the U.S. Court of Appeals for the DC Circuit denied the remaining appeals of the FERC orders establishing the RPM capacity market. In February of 2009, the entities representing load interests, including the New Jersey Board of Public Utilities, the District of Columbia Office of the People’s Counsel, and the Maryland Office of People’s Counsel, agreed to withdraw their appeals regarding the establishment of the RPM market design. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     On June 18, 2009, FERC denied rehearing of its order dated September 19, 2008 dismissing a complaint filed by the Maryland Public Service Commission, together with other load interests, against PJM challenging the results of the RPM transition Base Residual Auctions for installed capacity, held between April 2007 and January 2008. The complaint had sought to replace the auction-determined results for installed capacity for the 2008/2009, 2009/2010, and 2010/2011 delivery years with administratively-determined prices, and thus the auction prices are expected to be realized. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     <i>Retail (Replacement Reserve) — </i>On November 14, 2006, Constellation Energy Commodities Group, or Constellation, filed a complaint with the PUCT alleging that ERCOT misapplied the Replacement Reserve Settlement, or RPRS, Formula contained in the ERCOT protocols from April 10, 2006, through September 27, 2006. Specifically, Constellation disputed approximately $4 million in under-scheduling charges for capacity insufficiency asserting that ERCOT applied the wrong protocol. Reliant Energy Power Supply, or REPS, other market participants, ERCOT, and PUCT Staff opposed Constellation’s complaint. On January 25, 2008, the PUCT entered an order finding that ERCOT correctly settled the capacity insufficiency charges for the disputed dates in accordance with ERCOT protocols and denied Constellation’s complaint. On April 9, 2008, Constellation appealed the PUCT order to the Civil District Court of Travis County, Texas and on June 19, 2009, the court issued a judgment reversing the PUCT order, finding that the ERCOT protocols were in irreconcilable conflict with each other. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     On July 20, 2009, REPS filed an appeal to the Third Court of Appeals in Travis County, Texas, thereby staying the effect of the trial court’s decision. If all appeals are unsuccessful, on remand to the PUCT, it would determine the appropriate methodology for giving effect to the trial court’s decision. It is not known at this time whether only Constellation’s under-scheduling charges, the under-scheduling charges of all other QSEs that disputed REPS charges for the same time frame, the entire market, or some other approach would be used for any resettlement. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     Under the PUCT ordered formula, Qualified Scheduling Entities, or QSEs, who under-scheduled capacity within any of ERCOT’s four congestion zones were assessed under-scheduling charges which defrayed the costs incurred by ERCOT for RPRS that would otherwise be spread among all load-serving QSEs. Under the Court’s decision, all RPRS costs would be assigned to all load-serving QSEs based upon their load ratio share without assessing any separate charge to those QSEs who under-scheduled capacity. If under-scheduling charges for capacity insufficient QSEs were not used to defray RPRS costs, REPS’s share of the total RPRS costs allocated to QSEs would increase. </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> </div> </body> </html>

<html> <head></head> <body>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="justify" style="font-size: 10pt; margin-top: 12pt"><b>Note 16 — Environmental Matters</b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     The construction and operation of power projects are subject to stringent environmental and safety protection and land use laws and regulation in the U.S. If such laws and regulations become more stringent, or new laws, interpretations or compliance policies apply and NRG’s facilities are not exempt from coverage, the Company could be required to make modifications to further reduce potential environmental impacts. New legislation and regulations to mitigate the effects of greenhouse gases, or GHGs, including CO<sub style="font-size: 85%; vertical-align: text-bottom">2</sub> from power plants, are under consideration at the federal and state levels. In general, the effect of such future laws or regulations is expected to require the addition of pollution control equipment or the imposition of restrictions or additional costs on the Company’s operations. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 1%"><b><i>Environmental Capital Expenditures</i></b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     Based on current rules, technology and plans, NRG has estimated that environmental capital expenditures to be incurred during the remainder of 2009 through 2013 to meet NRG’s environmental commitments will be approximately $1.1 billion and are primarily associated with controls on the Company’s Big Cajun and Indian River facilities. These capital expenditures, in general, are related to installation of particulate, SO<sub style="font-size: 85%; vertical-align: text-bottom">2</sub>, NO<sub style="font-size: 85%; vertical-align: text-bottom">x</sub>, and mercury controls to comply with federal and state air quality rules and consent orders, as well as installation of “Best Technology Available” under the Phase II 316(b) Rule. NRG continues to explore cost effective alternatives that can achieve desired results. This estimate reflects anticipated schedules and controls related to the Clean Air Interstate Rule, or CAIR, Maximum Achievable Control Technology, or MACT, for mercury, and the Phase II 316(b) Rule which are under remand to the U.S. EPA, and, as such, the full impact on the scope and timing of environmental retrofits from any new or revised regulations cannot be determined at this time. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 1%"><b><i>Northeast Region</i></b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     NRG operates electric generating units located in Connecticut, Delaware, Maryland, Massachusetts and New York which are subject to RGGI. These units must surrender one allowance for every U.S. ton of CO<sub style="font-size: 85%; vertical-align: text-bottom">2</sub> emitted with true up for 2009-2011 occurring in 2012. Allowances are partially allocated only in the state of Delaware. In 2008, NRG emitted approximately 12 million tonnes of CO<sub style="font-size: 85%; vertical-align: text-bottom">2</sub> in RGGI states, although 2009 is tracking lower than 2008 year to date. NRG believes that to the extent CO<sub style="font-size: 85%; vertical-align: text-bottom">2</sub> will not be fully reflected in wholesale electricity prices, the direct financial impact on the Company is likely to be negative as costs will be incurred in the course of securing the necessary RGGI allowances and offsets at auction and in the market. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     In January 2006, NRG’s Indian River Operations, Inc. received a letter of informal notification from the DNREC stating that the Company may be a potentially responsible party with respect to a historic captive landfill. On October 1, 2007, NRG signed an agreement with DNREC to investigate the site through the Voluntary Clean-up Program. On February 4, 2008, the DNREC issued findings that no further action is required in relation to surface water and that a previously planned shoreline stabilization project would adequately address shoreline erosion. The landfill itself will require a further Remedial Investigation and Feasibility Study to determine the type and scope of any additional work required. Until the Remedial Investigation and Feasibility Study is completed, the Company is unable to predict the impact of any required remediation. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     On May 29, 2008, the DNREC requested that NRG’s Indian River Operations, Inc. participate in the development and performance of a Natural Resource Damage Assessment, or NRDA, at the Burton Island Old Ash Landfill. NRG is currently working with the DNREC and other trustees to close out the assessment phase. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 1%"><b><i>South Central Region</i></b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     On February 11, 2009, the U.S. Department of Justice acting at the request of the U.S. EPA commenced a lawsuit against Louisiana Generating, LLC in federal district court in the Middle District of Louisiana alleging violations of the CAA at the Big Cajun II power plant. This is the same matter for which NOVs, were issued to Louisiana Generating, LLC on February 15, 2005, and on December 8, 2006. Further discussion on this matter can be found in Note 14 — Commitments and Contingencies, <i>Louisiana Generating, LLC</i>. </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> </div> </body> </html>

<html> <head></head> <body>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 0%"><b>Note 17 — Guarantees</b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     NRG and its subsidiaries enter into various contracts that include indemnification and guarantee provisions as a routine part of the Company’s business activities. Examples of these contracts include asset purchases and sale agreements, commodity sale and purchase agreements, retail contracts, joint venture agreements, EPC agreements, operation and maintenance agreements, service agreements, settlement agreements, and other types of contractual agreements with vendors and other third parties, as well as affiliates. These contracts generally indemnify the counterparty for tax, environmental liability, litigation and other matters, as well as breaches of representations, warranties and covenants set forth in these agreements. In some cases, NRG’s maximum potential liability cannot be estimated, since the underlying agreements contain no limits on potential liability. The Company is also obligated with respect to customer deposits associated with Reliant Energy. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     This Note 17 should be read in conjunction with the complete description under Note 25, <i>Guarantees</i>, to the Company’s financial statements in its Annual Report on Form 10-K for the year ended December 31, 2008. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     In connection with the agreement to sell its 50% ownership interest in Mibrag B.V., NRG executed an agreement guaranteeing the performance of its subsidiary Lambique Beheer under the purchase and sale agreement. This agreement indemnifies the buyer for tax, environmental liability and other matters, as well as breaches of representations and warranties and is limited to EUR 206 million. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     NRG signed a guarantee agreement on behalf of its subsidiary NRG Retail, LLC guaranteeing the payment and performance of its obligations under the LLC Membership Interest Purchase Agreement and related agreements with RRI in connection with the purchase of its retail business, including purchase price and acquired net working capital. In accordance with the LLC Membership Interest Purchase Agreement, on May 1, 2009, NRG signed an agreement guaranteeing payments up to $85 million related to the Restated Power Purchase Agreement with FPL Energy Upton Wind II, LLC. NRG has no reason to believe that the Company currently has any material liability relating to such routine indemnification obligations. </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> </div> </body> </html>

<html> <head></head> <body>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="justify" style="font-size: 10pt; margin-top: 12pt"><b>Note 18 — Condensed Consolidating Financial Information</b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     As of June 30, 2009, the Company had outstanding $1.2 billion of 7.25% Senior Notes due 2014, $2.4 billion of 7.375% Senior Notes due 2016, $1.1 billion of 7.375% Senior Notes due 2017, and $700 million of 8.50% Senior Notes due 2019. These notes are guaranteed by certain of NRG’s current and future wholly-owned domestic subsidiaries, or guarantor subsidiaries. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     Unless otherwise noted below, each of the following guarantor subsidiaries fully and unconditionally guaranteed the Senior Notes as of June 30, 2009: </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="45%"> </td> <td width="5%"> </td> <td width="45%"> </td> </tr>   <tr valign="bottom"> <td valign="top"> <div style="margin-left:0px; text-indent:-0px">Arthur Kill Power LLC </div></td> <td> </td> <td align="left" valign="top">NRG Devon Operations Inc.</td> </tr> <tr valign="bottom"> <td valign="top"> <div style="margin-left:0px; text-indent:-0px">Astoria Gas Turbine Power LLC </div></td> <td> </td> <td align="left" valign="top">NRG Dunkirk Operations, Inc.</td> </tr> <tr valign="bottom"> <td valign="top"> <div style="margin-left:0px; text-indent:-0px">Berrians I Gas Turbine Power LLC </div></td> <td> </td> <td align="left" valign="top">NRG El Segundo Operations Inc.</td> </tr> <tr valign="bottom"> <td valign="top"> <div style="margin-left:0px; text-indent:-0px">Big Cajun II Unit 4 LLC </div></td> <td> </td> <td align="left" valign="top">NRG Generation Holdings, Inc.</td> </tr> <tr valign="bottom"> <td valign="top"> <div style="margin-left:0px; text-indent:-0px">Cabrillo Power I LLC </div></td> <td> </td> <td align="left" valign="top">NRG Huntley Operations Inc.</td> </tr> <tr valign="bottom"> <td valign="top"> <div style="margin-left:0px; text-indent:-0px">Cabrillo Power II LLC </div></td> <td> </td> <td align="left" valign="top">NRG International LLC</td> </tr> <tr valign="bottom"> <td valign="top"> <div style="margin-left:0px; text-indent:-0px">Chickahominy River Energy Corp. </div></td> <td> </td> <td align="left" valign="top">NRG Kaufman LLC</td> </tr> <tr valign="bottom"> <td valign="top"> <div style="margin-left:0px; text-indent:-0px">Commonwealth Atlantic Power LLC </div></td> <td> </td> <td align="left" valign="top">NRG Mesquite LLC</td> </tr> <tr valign="bottom"> <td valign="top"> <div style="margin-left:0px; text-indent:-0px">Conemaugh Power LLC </div></td> <td> </td> <td align="left" valign="top">NRG MidAtlantic Affiliate Services Inc.</td> </tr> <tr valign="bottom"> <td valign="top"> <div style="margin-left:0px; text-indent:-0px">Connecticut Jet Power LLC </div></td> <td> </td> <td align="left" valign="top">NRG Middletown Operations Inc.</td> </tr> <tr valign="bottom"> <td valign="top"> <div style="margin-left:0px; text-indent:-0px">Devon Power LLC </div></td> <td> </td> <td align="left" valign="top">NRG Montville Operations Inc.</td> </tr> <tr valign="bottom"> <td valign="top"> <div style="margin-left:0px; text-indent:-0px">Dunkirk Power LLC </div></td> <td> </td> <td align="left" valign="top">NRG New Jersey Energy Sales LLC</td> </tr> <tr valign="bottom"> <td valign="top"> <div style="margin-left:0px; text-indent:-0px">Eastern Sierra Energy Company </div></td> <td> </td> <td align="left" valign="top">NRG New Roads Holdings LLC</td> </tr> <tr valign="bottom"> <td valign="top"> <div style="margin-left:0px; text-indent:-0px">El Segundo Power, LLC </div></td> <td> </td> <td align="left" valign="top">NRG North Central Operations, Inc.</td> </tr> <tr valign="bottom"> <td valign="top"> <div style="margin-left:0px; text-indent:-0px">El Segundo Power II LLC </div></td> <td> </td> <td align="left" valign="top">NRG Northeast Affiliate Services Inc.</td> </tr> <tr valign="bottom"> <td valign="top"> <div style="margin-left:0px; text-indent:-0px">GCP Funding Company LLC </div></td> <td> </td> <td align="left" valign="top">NRG Norwalk Harbor Operations Inc.</td> </tr> <tr valign="bottom"> <td valign="top"> <div style="margin-left:0px; text-indent:-0px">Hanover Energy Company </div></td> <td> </td> <td align="left" valign="top">NRG Operating Services Inc.</td> </tr> <tr valign="bottom"> <td valign="top"> <div style="margin-left:0px; text-indent:-0px">Hoffman Summit Wind Project LLC </div></td> <td> </td> <td align="left" valign="top">NRG Oswego Harbor Power Operations Inc.</td> </tr> <tr valign="bottom"> <td valign="top"> <div style="margin-left:0px; text-indent:-0px">Huntley IGCC LLC </div></td> <td> </td> <td align="left" valign="top">NRG Power Marketing LLC</td> </tr> <tr valign="bottom"> <td valign="top"> <div style="margin-left:0px; text-indent:-0px">Huntley Power LLC </div></td> <td> </td> <td align="left" valign="top">NRG Rocky Road LLC</td> </tr> <tr valign="bottom"> <td valign="top"> <div style="margin-left:0px; text-indent:-0px">Indian River IGCC LLC </div></td> <td> </td> <td align="left" valign="top">NRG Saguaro Operations Inc.</td> </tr> <tr valign="bottom"> <td valign="top"> <div style="margin-left:0px; text-indent:-0px">Indian River Operations Inc. </div></td> <td> </td> <td align="left" valign="top">NRG South Central Affiliate Services Inc.</td> </tr> <tr valign="bottom"> <td valign="top"> <div style="margin-left:0px; text-indent:-0px">Indian River Power LLC </div></td> <td> </td> <td align="left" valign="top">NRG South Central Generating LLC</td> </tr> <tr valign="bottom"> <td valign="top"> <div style="margin-left:0px; text-indent:-0px">James River Power LLC </div></td> <td> </td> <td align="left" valign="top">NRG South Central Operations Inc.</td> </tr> <tr valign="bottom"> <td valign="top"> <div style="margin-left:0px; text-indent:-0px">Kaufman Cogen LP </div></td> <td> </td> <td align="left" valign="top">NRG South Texas LP</td> </tr> <tr valign="bottom"> <td valign="top"> <div style="margin-left:0px; text-indent:-0px">Keystone Power LLC </div></td> <td> </td> <td align="left" valign="top">NRG Texas LLC</td> </tr> <tr valign="bottom"> <td valign="top"> <div style="margin-left:0px; text-indent:-0px">Lake Erie Properties Inc. </div></td> <td> </td> <td align="left" valign="top">NRG Texas C & I Supply LLC <sup style="font-size: 85%; vertical-align: text-top">(a)</sup></td> </tr> <tr valign="bottom"> <td valign="top"> <div style="margin-left:0px; text-indent:-0px">Langford Wind Power, LLC <sup style="font-size: 85%; vertical-align: text-top">(a)</sup> </div></td> <td> </td> <td align="left" valign="top">NRG Texas Holding Inc. <sup style="font-size: 85%; vertical-align: text-top">(a)</sup></td> </tr> <tr valign="bottom"> <td valign="top"> <div style="margin-left:0px; text-indent:-0px">Louisiana Generating LLC </div></td> <td> </td> <td align="left" valign="top">NRG Texas Power LLC</td> </tr> <tr valign="bottom"> <td valign="top"> <div style="margin-left:0px; text-indent:-0px">Middletown Power LLC </div></td> <td> </td> <td align="left" valign="top">NRG West Coast LLC</td> </tr> <tr valign="bottom"> <td valign="top"> <div style="margin-left:0px; text-indent:-0px">Montville IGCC LLC </div></td> <td> </td> <td align="left" valign="top">NRG Western Affiliate Services Inc.</td> </tr> <tr valign="bottom"> <td valign="top"> <div style="margin-left:0px; text-indent:-0px">Montville Power LLC </div></td> <td> </td> <td align="left" valign="top">Oswego Harbor Power LLC</td> </tr> <tr valign="bottom"> <td valign="top"> <div style="margin-left:0px; text-indent:-0px">NEO Chester-Gen LLC </div></td> <td> </td> <td align="left" valign="top">Padoma Wind Power, LLC</td> </tr> <tr valign="bottom"> <td valign="top"> <div style="margin-left:0px; text-indent:-0px">NEO Corporation </div></td> <td> </td> <td align="left" valign="top">Reliant Energy Services Texas LLC <sup style="font-size: 85%; vertical-align: text-top">(a)</sup></td> </tr> <tr valign="bottom"> <td valign="top"> <div style="margin-left:0px; text-indent:-0px">NEO Freehold-Gen LLC </div></td> <td> </td> <td align="left" valign="top">Reliant Energy Texas Retail LLC <sup style="font-size: 85%; vertical-align: text-top">(a)</sup></td> </tr> <tr valign="bottom"> <td valign="top"> <div style="margin-left:0px; text-indent:-0px">NEO Power Services Inc. </div></td> <td> </td> <td align="left" valign="top">Saguaro Power LLC</td> </tr> <tr valign="bottom"> <td valign="top"> <div style="margin-left:0px; text-indent:-0px">New Genco GP LLC </div></td> <td> </td> <td align="left" valign="top">San Juan Mesa Wind Project II, LLC</td> </tr> <tr valign="bottom"> <td valign="top"> <div style="margin-left:0px; text-indent:-0px">Norwalk Power LLC </div></td> <td> </td> <td align="left" valign="top">Somerset Operations Inc.</td> </tr> <tr valign="bottom"> <td valign="top"> <div style="margin-left:0px; text-indent:-0px">NRG Affiliate Services Inc. </div></td> <td> </td> <td align="left" valign="top">Somerset Power LLC</td> </tr> <tr valign="bottom"> <td valign="top"> <div style="margin-left:0px; text-indent:-0px">NRG Arthur Kill Operations Inc. </div></td> <td> </td> <td align="left" valign="top">Texas Genco Financing Corp.</td> </tr> <tr valign="bottom"> <td valign="top"> <div style="margin-left:0px; text-indent:-0px">NRG Asia-Pacific Ltd. </div></td> <td> </td> <td align="left" valign="top">Texas Genco GP, LLC</td> </tr> <tr valign="bottom"> <td valign="top"> <div style="margin-left:0px; text-indent:-0px">NRG Astoria Gas Turbine Operations Inc. </div></td> <td> </td> <td align="left" valign="top">Texas Genco Holdings, Inc.</td> </tr> <tr valign="bottom"> <td valign="top"> <div style="margin-left:0px; text-indent:-0px">NRG Bayou Cove LLC </div></td> <td> </td> <td align="left" valign="top">Texas Genco LP, LLC</td> </tr> <tr valign="bottom"> <td valign="top"> <div style="margin-left:0px; text-indent:-0px">NRG Cabrillo Power Operations Inc. </div></td> <td> </td> <td align="left" valign="top">Texas Genco Operating Services, LLC</td> </tr> <tr valign="bottom"> <td valign="top"> <div style="margin-left:0px; text-indent:-0px">NRG Cadillac Operations Inc. </div></td> <td> </td> <td align="left" valign="top">Texas Genco Services, LP</td> </tr> <tr valign="bottom"> <td valign="top"> <div style="margin-left:0px; text-indent:-0px">NRG California Peaker Operations LLC </div></td> <td> </td> <td align="left" valign="top">Vienna Operations, Inc.</td> </tr> <tr valign="bottom"> <td valign="top"> <div style="margin-left:0px; text-indent:-0px">NRG Cedar Bayou Development Company LLC </div></td> <td> </td> <td align="left" valign="top">Vienna Power LLC</td> </tr> <tr valign="bottom"> <td valign="top"> <div style="margin-left:0px; text-indent:-0px">NRG Connecticut Affiliate Services Inc. </div></td> <td> </td> <td align="left" valign="top">WCP (Generation) Holdings LLC</td> </tr> <tr valign="bottom"> <td valign="top"> <div style="margin-left:0px; text-indent:-0px">NRG Construction LLC </div></td> <td> </td> <td align="left" valign="top">West Coast Power LLC</td> </tr>  </table> </div> <div style="margin-top: 8pt"> <table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left"> <tr valign="top" style="font-size: 8pt; color: #000000; background: transparent"> <td width="3%" style="background: transparent"> </td> <td width="1%" nowrap="nowrap" align="left"><i>(a)</i></td> <td width="1%"> </td> <td> <div style="text-align: justify"><i>Added as guarantors to the 2019 Notes on July 14, 2009.</i> </div></td> </tr> </table> </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     The non-guarantor subsidiaries include all of NRG’s foreign subsidiaries and certain domestic subsidiaries. NRG conducts much of its business through and derives much of its income from its subsidiaries. Therefore, the Company’s ability to make required payments with respect to its indebtedness and other obligations depends on the financial results and condition of its subsidiaries and NRG’s ability to receive funds from its subsidiaries. Except for NRG Bayou Cove, LLC, which is subject to certain restrictions under the Company’s Peaker financing agreements, there are no restrictions on the ability of any of the guarantor subsidiaries to transfer funds to NRG. In addition, there may be restrictions for certain non-guarantor subsidiaries. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     The following condensed consolidating financial information presents the financial information of NRG, the guarantor subsidiaries and the non-guarantor subsidiaries in accordance with Rule 3-10 under the Securities and Exchange Commission’s Regulation S-X. The financial information may not necessarily be indicative of results of operations or financial position had the guarantor subsidiaries or non-guarantor subsidiaries operated as independent entities. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">     In this presentation, NRG Energy, Inc. consists of parent company operations. Guarantor subsidiaries and non-guarantor subsidiaries of NRG are reported on an equity basis. For companies acquired, the fair values of the assets and liabilities acquired have been presented on a push-down accounting basis. </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="center" style="font-size: 10pt; margin-top: 18pt"><b>NRG ENERGY, INC. AND SUBSIDIARIES</b> </div> <div align="center" style="font-size: 10pt; margin-top: 0pt"><b>CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS</b> </div> <div align="center" style="font-size: 10pt; margin-top: 0pt"><b>For the Three Months Ended June 30, 2009</b> </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="40%"> </td> <td width="5%"> </td> <td width="4%"> </td> <td width="1%"> </td> <td width="2%"> </td> <td width="5%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="5%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="5%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="5%"> </td> <td width="4%"> </td> <td width="1%"> </td> <td width="2%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>NRG Energy,</b></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Guarantor</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Non-Guarantor</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Inc.</b></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Consolidated</b></td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td nowrap="nowrap" align="left" style="border-bottom: 1px solid #ffffff"> <div style="margin-left:18px; text-indent:-15px"><b>(In millions)</b> </div></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Subsidiaries</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Subsidiaries</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>(Note Issuer)</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Eliminations</b><sup style="font-size: 85%; vertical-align: text-top"><b> (a)</b></sup></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Balance</b></td> </tr>   <tr style="font-size: 1px"> <td colspan="21" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:18px; text-indent:-15px"><b>Operating Revenues</b> </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Total operating revenues </div></td> <td> </td> <td align="right">$   </td> <td align="right">1,025</td> <td> </td> <td> </td> <td align="right">$</td> <td align="right">1,254</td> <td> </td> <td> </td> <td align="right">$</td> <td align="right">32</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right">$</td> <td align="right">(74</td> <td nowrap="nowrap">)</td> <td> </td> <td align="right">$   </td> <td align="right">2,237</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="21" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:18px; text-indent:-15px"><b>Operating Costs and Expenses</b> </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Cost of operations </div></td> <td> </td> <td> </td> <td align="right">596</td> <td> </td> <td> </td> <td> </td> <td align="right">719</td> <td> </td> <td> </td> <td> </td> <td align="right">1</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(74</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">1,242</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Depreciation and amortization </div></td> <td> </td> <td> </td> <td align="right">157</td> <td> </td> <td> </td> <td> </td> <td align="right">54</td> <td> </td> <td> </td> <td> </td> <td align="right">2</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">213</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Selling, general and administrative </div></td> <td> </td> <td> </td> <td align="right">17</td> <td> </td> <td> </td> <td> </td> <td align="right">51</td> <td> </td> <td> </td> <td> </td> <td align="right">63</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">131</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:25px; text-indent:-10px">Acquisition related transaction and integration costs </div></td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">23</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">23</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Development costs </div></td> <td> </td> <td> </td> <td align="right">2</td> <td> </td> <td> </td> <td> </td> <td align="right">3</td> <td> </td> <td> </td> <td> </td> <td align="right">4</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">9</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="21" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:45px; text-indent:-15px">Total operating costs and expenses </div></td> <td> </td> <td> </td> <td align="right">772</td> <td> </td> <td> </td> <td> </td> <td align="right">827</td> <td> </td> <td> </td> <td> </td> <td align="right">93</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(74</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">1,618</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="21" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:18px; text-indent:-15px"><b>Operating Income/(Loss)</b> </div></td> <td> </td> <td> </td> <td align="right">253</td> <td> </td> <td> </td> <td> </td> <td align="right">427</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(61</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">619</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:18px; text-indent:-15px"><b>Other Income/(Expense)</b> </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Equity in earnings of consolidated subsidiaries </div></td> <td> </td> <td> </td> <td align="right">120</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">477</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(597</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Equity in earnings of unconsolidated affiliates </div></td> <td> </td> <td> </td> <td align="right">3</td> <td> </td> <td> </td> <td> </td> <td align="right">2</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">5</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Gain on sale of equity method investment </div></td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">128</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">128</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Other income/(loss), net </div></td> <td> </td> <td> </td> <td align="right">2</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(12</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(1</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(11</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Interest expense </div></td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(18</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(38</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(103</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(159</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="21" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:45px; text-indent:-15px">Total other income/(expense) </div></td> <td> </td> <td> </td> <td align="right">107</td> <td> </td> <td> </td> <td> </td> <td align="right">80</td> <td> </td> <td> </td> <td> </td> <td align="right">373</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(597</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(37</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="21" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:18px; text-indent:-15px"><b>Income/(Losses) Before Income Taxes</b> </div></td> <td> </td> <td> </td> <td align="right">360</td> <td> </td> <td> </td> <td> </td> <td align="right">507</td> <td> </td> <td> </td> <td> </td> <td align="right">312</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(597</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">582</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:18px; text-indent:-15px">Income tax expense/(benefit) </div></td> <td> </td> <td> </td> <td align="right">97</td> <td> </td> <td> </td> <td> </td> <td align="right">174</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(121</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">150</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="21" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:18px; text-indent:-15px"><b>Net Income</b> </div></td> <td> </td> <td> </td> <td align="right">263</td> <td> </td> <td> </td> <td> </td> <td align="right">333</td> <td> </td> <td> </td> <td> </td> <td align="right">433</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(597</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">432</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:18px; text-indent:-15px">Less: Net loss attributable to noncontrolling interest </div></td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(1</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(1</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="21" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:18px; text-indent:-15px"><b>Net Income attributable to NRG Energy, Inc.</b> </div></td> <td> </td> <td align="right">$   </td> <td align="right">264</td> <td> </td> <td> </td> <td align="right">$</td> <td align="right">333</td> <td> </td> <td> </td> <td align="right">$</td> <td align="right">433</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right">$</td> <td align="right">(597</td> <td nowrap="nowrap">)</td> <td> </td> <td align="right">$   </td> <td align="right">433</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="21" align="left" style="border-top: 2px solid #000000"> </td> </tr>  </table> </div> <div style="margin-top: 8pt"> <table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left"> <tr valign="top" style="font-size: 8pt; color: #000000; background: transparent"> <td width="1%" nowrap="nowrap" align="left"><i>(a)</i></td> <td width="1%"> </td> <td width="98%"> <div style="text-align: justify"><i>All significant intercompany transactions have been eliminated in consolidation.</i> </div></td> </tr> </table> </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="center" style="font-size: 10pt; margin-top: 18pt"><b>NRG ENERGY, INC. AND SUBSIDIARIES<br /> CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS<br /> For the Six Months Ended June 30, 2009</b> </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="40%"> </td> <td width="5%"> </td> <td width="4%"> </td> <td width="1%"> </td> <td width="2%"> </td> <td width="5%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="5%"> </td> <td width="2%"> </td> <td width="3%"> </td> <td width="2%"> </td> <td width="5%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="5%"> </td> <td width="4%"> </td> <td width="1%"> </td> <td width="2%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>NRG Energy,</b></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Guarantor</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Non-Guarantor</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Inc.</b></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Consolidated</b></td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td nowrap="nowrap" align="left" style="border-bottom: 1px solid #ffffff"> <div style="margin-left:18px; text-indent:-15px"><b>(In millions)</b> </div></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Subsidiaries</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Subsidiaries</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>(Note Issuer)</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Eliminations</b><sup style="font-size: 85%; vertical-align: text-top"><b>(a)</b></sup></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Balance</b></td> </tr>   <tr style="font-size: 1px"> <td colspan="21" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:18px; text-indent:-15px"><b>Operating Revenues</b> </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Total operating revenues </div></td> <td> </td> <td align="right">$   </td> <td align="right">2,591</td> <td> </td> <td> </td> <td align="right">$</td> <td align="right">1,349</td> <td> </td> <td> </td> <td align="right">$</td> <td align="right">32</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"></td> <td align="right">$   (77</td> <td nowrap="nowrap">)</td> <td> </td> <td align="right">$   </td> <td align="right">3,895</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="21" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:18px; text-indent:-15px"><b>Operating Costs and Expenses</b> </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Cost of operations </div></td> <td> </td> <td> </td> <td align="right">1,294</td> <td> </td> <td> </td> <td> </td> <td align="right">787</td> <td> </td> <td> </td> <td> </td> <td align="right">4</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(77</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">2,008</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Depreciation and amortization </div></td> <td> </td> <td> </td> <td align="right">315</td> <td> </td> <td> </td> <td> </td> <td align="right">64</td> <td> </td> <td> </td> <td> </td> <td align="right">3</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">382</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Selling general and administrative </div></td> <td> </td> <td> </td> <td align="right">34</td> <td> </td> <td> </td> <td> </td> <td align="right">54</td> <td> </td> <td> </td> <td> </td> <td align="right">126</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">214</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:25px; text-indent:-10px">Acquisition related transaction and integration costs </div></td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">35</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">35</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Development costs </div></td> <td> </td> <td> </td> <td align="right">4</td> <td> </td> <td> </td> <td> </td> <td align="right">5</td> <td> </td> <td> </td> <td> </td> <td align="right">13</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">22</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="21" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:45px; text-indent:-15px">Total operating costs and expenses </div></td> <td> </td> <td> </td> <td align="right">1,647</td> <td> </td> <td> </td> <td> </td> <td align="right">910</td> <td> </td> <td> </td> <td> </td> <td align="right">181</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(77</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">2,661</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="21" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:18px; text-indent:-15px"><b>Operating Income/(Loss)</b> </div></td> <td> </td> <td> </td> <td align="right">944</td> <td> </td> <td> </td> <td> </td> <td align="right">439</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(149</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">1,234</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:18px; text-indent:-15px"><b>Other Income/(Expense)</b> </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Equity in earnings of consolidated subsidiaries </div></td> <td> </td> <td> </td> <td align="right">129</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">874</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(1,003</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Equity in earnings of unconsolidated affiliates </div></td> <td> </td> <td> </td> <td align="right">4</td> <td> </td> <td> </td> <td> </td> <td align="right">23</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">27</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Gain on sale of equity method investment </div></td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">128</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">128</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Other income/(loss), net </div></td> <td> </td> <td> </td> <td align="right">3</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(19</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">2</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(14</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Interest expense </div></td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(66</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(59</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(172</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(297</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="21" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:45px; text-indent:-15px">Total other income/(expense) </div></td> <td> </td> <td> </td> <td align="right">70</td> <td> </td> <td> </td> <td> </td> <td align="right">73</td> <td> </td> <td> </td> <td> </td> <td align="right">704</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(1,003</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(156</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="21" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:18px; text-indent:-15px"><b>Income/(Losses) Before Income Taxes</b> </div></td> <td> </td> <td> </td> <td align="right">1,014</td> <td> </td> <td> </td> <td> </td> <td align="right">512</td> <td> </td> <td> </td> <td> </td> <td align="right">555</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(1,003</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">1,078</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:18px; text-indent:-15px">Income tax expense/(benefit) </div></td> <td> </td> <td> </td> <td align="right">349</td> <td> </td> <td> </td> <td> </td> <td align="right">175</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(76</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">448</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="21" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:18px; text-indent:-15px"><b>Net Income</b> </div></td> <td> </td> <td> </td> <td align="right">665</td> <td> </td> <td> </td> <td> </td> <td align="right">337</td> <td> </td> <td> </td> <td> </td> <td align="right">631</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(1,003</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">630</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:18px; text-indent:-15px">Less: Net loss attributable to noncontrolling interest </div></td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(1</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(1</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="21" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:18px; text-indent:-15px"><b>Net Income attributable to NRG Energy, Inc.</b> </div></td> <td> </td> <td align="right">$   </td> <td align="right">666</td> <td> </td> <td> </td> <td align="right">$</td> <td align="right">337</td> <td> </td> <td> </td> <td align="right">$</td> <td align="right">631</td> <td> </td> <td> </td> <td> </td> <td align="left" COLSPAN="1">$(1,003</td> <td>)</td> <td> </td> <td align="RIght">$   </td> <td align="right">631</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="21" align="left" style="border-top: 2px solid #000000"> </td> </tr>  </table> </div> <div style="margin-top: 8pt"> <table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left"> <tr valign="top" style="font-size: 8pt; color: #000000; background: transparent"> <td width="1%" nowrap="nowrap" align="left"><i>(a)</i></td> <td width="1%"> </td> <td> <div style="text-align: justify"><i>All significant intercompany transactions have been eliminated in consolidation.</i> </div></td> </tr> </table> </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div style="margin-top: 6pt"> <table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 8pt; text-align: left"> </table> </div> <div align="center" style="font-size: 10pt; margin-top: 18pt"><b>NRG ENERGY, INC. AND SUBSIDIARIES</b> </div> <div align="center" style="font-size: 10pt; margin-top: 0pt"><b>CONDENSED CONSOLIDATING BALANCE SHEETS</b> </div> <div align="center" style="font-size: 10pt; margin-top: 0pt"><b>June 30, 2009</b> </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="39%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="12%"> </td> <td width="1%"> </td> <td width="4%"> </td> <td width="4%"> </td> <td width="1%"> </td> <td width="2%"> </td> <td width="4%"> </td> <td width="4%"> </td> <td width="1%"> </td> <td width="2%"> </td> <td width="4%"> </td> <td width="4%"> </td> <td width="1%"> </td> <td width="2%"> </td> <td width="4%"> </td> <td width="4%"> </td> <td width="1%"> </td> <td width="2%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Guarantor</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Non-Guarantor</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>NRG Energy, Inc.</b></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Consolidated</b></td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td nowrap="nowrap" align="left"> <div style="margin-left:18px; text-indent:-15px"><b>(In millions)</b> </div></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Subsidiaries</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Subsidiaries</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>(Note Issuer)</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Eliminations</b><sup style="font-size: 85%; vertical-align: text-top"><b>(a)</b></sup></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Balance</b></td> </tr>   <tr style="font-size: 1px"> <td colspan="21" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td colspan="21" align="center"><b>ASSETS</b><br /></td> </tr> <tr valign="bottom"> <td> <div style="margin-left:18px; text-indent:-15px"><b>Current Assets</b> </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:25px; text-indent:-10px">Cash and cash equivalents </div></td> <td> </td> <td align="right">$   </td> <td align="right">8</td> <td> </td> <td> </td> <td align="right">$   </td> <td align="right">433</td> <td> </td> <td> </td> <td align="right">$   </td> <td align="right">1,841</td> <td> </td> <td> </td> <td align="right">$  </td> <td align="right">—</td> <td> </td> <td> </td> <td align="right">$   </td> <td align="right">2,282</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:25px; text-indent:-10px">Funds deposited by counterparties </div></td> <td> </td> <td> </td> <td align="right">468</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">468</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:25px; text-indent:-10px">Restricted cash </div></td> <td> </td> <td> </td> <td align="right">1</td> <td> </td> <td> </td> <td> </td> <td align="right">18</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">19</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:25px; text-indent:-10px">Accounts receivable, net </div></td> <td> </td> <td> </td> <td align="right">372</td> <td> </td> <td> </td> <td> </td> <td align="right">814</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">1,186</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:25px; text-indent:-10px">Inventory </div></td> <td> </td> <td> </td> <td align="right">514</td> <td> </td> <td> </td> <td> </td> <td align="right">16</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">530</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:25px; text-indent:-10px">Derivative instruments valuation </div></td> <td> </td> <td> </td> <td align="right">3,360</td> <td> </td> <td> </td> <td> </td> <td align="right">1,308</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(274</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">4,394</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:25px; text-indent:-10px">Cash collateral paid in support of energy risk management activities </div></td> <td> </td> <td> </td> <td align="right">214</td> <td> </td> <td> </td> <td> </td> <td align="right">29</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">243</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:25px; text-indent:-10px">Prepayments and other current assets </div></td> <td> </td> <td> </td> <td align="right">133</td> <td> </td> <td> </td> <td> </td> <td align="right">78</td> <td> </td> <td> </td> <td> </td> <td align="right">200</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(201</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">210</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="21" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:45px; text-indent:-15px">Total current assets </div></td> <td> </td> <td> </td> <td align="right">5,070</td> <td> </td> <td> </td> <td> </td> <td align="right">2,696</td> <td> </td> <td> </td> <td> </td> <td align="right">2,041</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(475</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">9,332</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="21" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:18px; text-indent:-15px"><b>Net property, plant and equipment</b> </div></td> <td> </td> <td> </td> <td align="right">10,653</td> <td> </td> <td> </td> <td> </td> <td align="right">927</td> <td> </td> <td> </td> <td> </td> <td align="right">29</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">11,609</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="21" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:18px; text-indent:-15px"><b>Other Assets</b> </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:25px; text-indent:-10px">Investment in subsidiaries </div></td> <td> </td> <td> </td> <td align="right">421</td> <td> </td> <td> </td> <td> </td> <td align="right">221</td> <td> </td> <td> </td> <td> </td> <td align="right">16,467</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(17,109</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:25px; text-indent:-10px">Equity investments in affiliates </div></td> <td> </td> <td> </td> <td align="right">31</td> <td> </td> <td> </td> <td> </td> <td align="right">332</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">363</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:25px; text-indent:-10px">Capital leases and notes receivable, less current portion </div></td> <td> </td> <td> </td> <td align="right">4,113</td> <td> </td> <td> </td> <td> </td> <td align="right">483</td> <td> </td> <td> </td> <td> </td> <td align="right">3,018</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(7,131</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">483</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:25px; text-indent:-10px">Goodwill </div></td> <td> </td> <td> </td> <td align="right">1,718</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">1,718</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:25px; text-indent:-10px">Intangible assets, net </div></td> <td> </td> <td> </td> <td align="right">800</td> <td> </td> <td> </td> <td> </td> <td align="right">1,308</td> <td> </td> <td> </td> <td> </td> <td align="right">34</td> <td> </td> <td> </td> <td> </td> <td align="right">(31</td> <td>)</td> <td> </td> <td> </td> <td align="right">2,111</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:25px; text-indent:-10px">Nuclear decommissioning trust fund </div></td> <td> </td> <td> </td> <td align="right">316</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">316</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:25px; text-indent:-10px">Derivative instruments valuation </div></td> <td> </td> <td> </td> <td align="right">864</td> <td> </td> <td> </td> <td> </td> <td align="right">547</td> <td> </td> <td> </td> <td> </td> <td align="right">11</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(234</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">1,188</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:25px; text-indent:-10px">Other non-current assets </div></td> <td> </td> <td> </td> <td align="right">32</td> <td> </td> <td> </td> <td> </td> <td align="right">10</td> <td> </td> <td> </td> <td> </td> <td align="right">143</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">185</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="21" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:45px; text-indent:-15px">Total other assets </div></td> <td> </td> <td> </td> <td align="right">8,295</td> <td> </td> <td> </td> <td> </td> <td align="right">2,901</td> <td> </td> <td> </td> <td> </td> <td align="right">19,673</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(24,505</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">6,364</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="21" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:18px; text-indent:-15px"><b>Total Assets</b> </div></td> <td> </td> <td align="right">$   </td> <td align="right">24,018</td> <td> </td> <td> </td> <td align="right">$   </td> <td align="right">6,524</td> <td> </td> <td> </td> <td align="right">$   </td> <td align="right">21,743</td> <td> </td> <td> </td> <td align="right">$  </td> <td align="right">(24,980</td> <td nowrap="nowrap">)</td> <td> </td> <td align="right">$   </td> <td align="right">27,305</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="21" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td colspan="21" align="center"><b>LIABILITIES AND STOCKHOLDERS’ EQUITY</b><br /></td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:18px; text-indent:-15px"><b>Current Liabilities</b> </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:25px; text-indent:-10px">Current portion of long-term debt and capital leases </div></td> <td> </td> <td align="right">$   </td> <td align="right">73</td> <td> </td> <td> </td> <td align="right">$   </td> <td align="right">421</td> <td> </td> <td> </td> <td align="right">$   </td> <td align="right">32</td> <td> </td> <td> </td> <td align="right">$  </td> <td align="right">(73</td> <td nowrap="nowrap">)</td> <td> </td> <td align="right">$   </td> <td align="right">453</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:25px; text-indent:-10px">Accounts payable </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(583</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">1,010</td> <td> </td> <td> </td> <td> </td> <td align="right">430</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">857</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:25px; text-indent:-10px">Derivative instruments valuation </div></td> <td> </td> <td> </td> <td align="right">2,593</td> <td> </td> <td> </td> <td> </td> <td align="right">1,871</td> <td> </td> <td> </td> <td> </td> <td align="right">6</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(274</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">4,196</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:25px; text-indent:-10px">Deferred income taxes </div></td> <td> </td> <td> </td> <td align="right">575</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(220</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(309</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">46</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:25px; text-indent:-10px">Cash collateral received in support of energy risk management activities </div></td> <td> </td> <td> </td> <td align="right">468</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">468</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:25px; text-indent:-10px">Accrued expenses and other current liabilities </div></td> <td> </td> <td> </td> <td align="right">176</td> <td> </td> <td> </td> <td> </td> <td align="right">283</td> <td> </td> <td> </td> <td> </td> <td align="right">287</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(128</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">618</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="21" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:45px; text-indent:-15px">Total current liabilities </div></td> <td> </td> <td> </td> <td align="right">3,302</td> <td> </td> <td> </td> <td> </td> <td align="right">3,365</td> <td> </td> <td> </td> <td> </td> <td align="right">446</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(475</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">6,638</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="21" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:18px; text-indent:-15px"><b>Other Liabilities</b> </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:25px; text-indent:-10px">Long-term debt and capital leases </div></td> <td> </td> <td> </td> <td align="right">2,576</td> <td> </td> <td> </td> <td> </td> <td align="right">953</td> <td> </td> <td> </td> <td> </td> <td align="right">11,896</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(7,131</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">8,294</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:25px; text-indent:-10px">Nuclear decommissioning reserve </div></td> <td> </td> <td> </td> <td align="right">292</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">292</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:25px; text-indent:-10px">Nuclear decommissioning trust liability </div></td> <td> </td> <td> </td> <td align="right">217</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">217</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:25px; text-indent:-10px">Deferred income taxes </div></td> <td> </td> <td> </td> <td align="right">684</td> <td> </td> <td> </td> <td> </td> <td align="right">124</td> <td> </td> <td> </td> <td> </td> <td align="right">756</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">1,564</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:25px; text-indent:-10px">Derivative instruments valuation </div></td> <td> </td> <td> </td> <td align="right">275</td> <td> </td> <td> </td> <td> </td> <td align="right">776</td> <td> </td> <td> </td> <td> </td> <td align="right">89</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(234</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">906</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:25px; text-indent:-10px">Out-of-market contracts </div></td> <td> </td> <td> </td> <td align="right">259</td> <td> </td> <td> </td> <td> </td> <td align="right">150</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">(31</td> <td>)</td> <td> </td> <td> </td> <td align="right">378</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:25px; text-indent:-10px">Other non-current liabilities </div></td> <td> </td> <td> </td> <td align="right">419</td> <td> </td> <td> </td> <td> </td> <td align="right">29</td> <td> </td> <td> </td> <td> </td> <td align="right">466</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">914</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="21" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:45px; text-indent:-15px">Total non-current liabilities </div></td> <td> </td> <td> </td> <td align="right">4,722</td> <td> </td> <td> </td> <td> </td> <td align="right">2,032</td> <td> </td> <td> </td> <td> </td> <td align="right">13,207</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(7,396</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">12,565</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="21" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:18px; text-indent:-15px"><b>Total liabilities</b> </div></td> <td> </td> <td> </td> <td align="right">8,024</td> <td> </td> <td> </td> <td> </td> <td align="right">5,397</td> <td> </td> <td> </td> <td> </td> <td align="right">13,653</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(7,871</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">19,203</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="21" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:18px; text-indent:-15px">3.625% Preferred Stock </div></td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">247</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">247</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:18px; text-indent:-15px"><b>Stockholders’ Equity</b> </div></td> <td> </td> <td> </td> <td align="right">15,994</td> <td> </td> <td> </td> <td> </td> <td align="right">1,127</td> <td> </td> <td> </td> <td> </td> <td align="right">7,843</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(17,109</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">7,855</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="21" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:18px; text-indent:-15px"><b>Total Liabilities and Stockholders’ Equity</b> </div></td> <td> </td> <td align="right">$   </td> <td align="right">24,018</td> <td> </td> <td> </td> <td align="right">$   </td> <td align="right">6,524</td> <td> </td> <td> </td> <td align="right">$   </td> <td align="right">21,743</td> <td> </td> <td> </td> <td align="right">$  </td> <td align="right">(24,980</td> <td nowrap="nowrap">)</td> <td> </td> <td align="right">$   </td> <td align="right">27,305</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="21" align="left" style="border-top: 2px solid #000000"> </td> </tr>  </table> </div> <div style="margin-top: 8pt"> <table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left"> <tr valign="top" style="font-size: 8pt; color: #000000; background: transparent"> <td width="2%" nowrap="nowrap" align="left"><i>(a)</i></td> <td width="1%"> </td> <td> <div style="text-align: justify"><i>All significant intercompany transactions have been eliminated in consolidation.</i> </div></td> </tr> </table> </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="center" style="font-size: 10pt; margin-top: 18pt"><b>NRG ENERGY, INC. AND SUBSIDIARIES</b> </div> <div align="center" style="font-size: 10pt; margin-top: 0pt"><b>CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS</b> </div> <div align="center" style="font-size: 10pt; margin-top: 0pt"><b>For the Six Months Ended June 30, 2009</b> </div> <div align="center"> <table style="font-size: 8pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="44%"> </td> <td width="5%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="5%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="5%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="3%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="3%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Non-</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>NRG Energy,</b></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Guarantor</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Guarantor</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Inc.</b></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Consolidated</b></td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td nowrap="nowrap" align="left" style="border-bottom: 1px solid #ffffff"> <div style="margin-left:18px; text-indent:-15px"><b>(In millions)</b> </div></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Subsidiaries</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Subsidiaries</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>(Note Issuer)</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Eliminations</b><sup style="font-size: 85%; vertical-align: text-top"><b>(a)</b></sup></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Balance</b></td> </tr>   <tr style="font-size: 1px"> <td colspan="21" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:18px; text-indent:-15px"><b>Cash Flows from Operating Activities</b> </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:25px; text-indent:-10px">Net income </div></td> <td> </td> <td align="right">$   </td> <td align="right">666</td> <td> </td> <td> </td> <td align="right">$   </td> <td align="right">337</td> <td> </td> <td> </td> <td align="right">$   </td> <td align="right">631</td> <td> </td> <td> </td> <td align="right">$ </td> <td align="right">(1,003</td> <td nowrap="nowrap">)</td> <td> </td> <td align="right">$   </td> <td align="right">631</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:25px; text-indent:-10px">Adjustments to reconcile net income to net cash provided by operating activities: </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:40px; text-indent:-10px">Distributions and equity in (earnings)/losses of unconsolidated affiliates and consolidated subsidiaries </div></td> <td> </td> <td> </td> <td align="right">197</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(23</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(544</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">343</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(27</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:40px; text-indent:-10px">Depreciation and amortization </div></td> <td> </td> <td> </td> <td align="right">315</td> <td> </td> <td> </td> <td> </td> <td align="right">64</td> <td> </td> <td> </td> <td> </td> <td align="right">3</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">382</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:40px; text-indent:-10px">Provision for bad debts </div></td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">9</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">9</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:40px; text-indent:-10px">Amortization of nuclear fuel </div></td> <td> </td> <td> </td> <td align="right">19</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">19</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:40px; text-indent:-10px">Amortization of financing costs and debt discount/premiums </div></td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">7</td> <td> </td> <td> </td> <td> </td> <td align="right">14</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">21</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:40px; text-indent:-10px">Amortization of intangibles and out-of-market contracts </div></td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(49</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">64</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">15</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:40px; text-indent:-10px">Changes in deferred income taxes and liability for unrecognized tax benefits </div></td> <td> </td> <td> </td> <td align="right">100</td> <td> </td> <td> </td> <td> </td> <td align="right">14</td> <td> </td> <td> </td> <td> </td> <td align="right">331</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">445</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:40px; text-indent:-10px">Changes in nuclear decommissioning liability </div></td> <td> </td> <td> </td> <td align="right">15</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">15</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:40px; text-indent:-10px">Changes in derivatives </div></td> <td> </td> <td> </td> <td align="right">(198</td> <td>)</td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(170</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(368</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:40px; text-indent:-10px">Changes in collateral deposits supporting energy risk management activities </div></td> <td> </td> <td> </td> <td align="right">274</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(29</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">245</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:40px; text-indent:-10px">Gain on sale of equity method investment </div></td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">(128</td> <td>)</td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">—</td> <td nowrap="nowrap"> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(128</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:40px; text-indent:-10px">Gain on sale of assets </div></td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(1</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(1</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:40px; text-indent:-10px">Gain on sale of emission allowances </div></td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(9</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(9</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:40px; text-indent:-10px">Gain recognized on settlement of pre-existing relationship </div></td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(31</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(31</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:40px; text-indent:-10px">Amortization of unearned equity compensation </div></td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">13</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">13</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:40px; text-indent:-10px">Changes in option premium collected, net of acquisition </div></td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(265</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(5</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(270</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:40px; text-indent:-10px">Cash provided by/(used by) changes in other working capital, net of acquisition </div></td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">532</td> <td nowrap="nowrap"> </td> <td> </td> <td> </td> <td align="right">170</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(941</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(239</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="21" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:18px; text-indent:-15px"><b>Net Cash Provided/(Used) by Operating Activities</b> </div></td> <td> </td> <td> </td> <td align="right">1,596</td> <td> </td> <td> </td> <td> </td> <td align="right">310</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(524</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(660</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">722</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="21" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:18px; text-indent:-15px"><b>Cash Flows from Investing Activities</b> </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:40px; text-indent:-10px">Intercompany loans to from subsidiaries </div></td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(901</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">160</td> <td> </td> <td> </td> <td> </td> <td align="right">741</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:40px; text-indent:-10px">Acquisition of Reliant Energy, net of cash acquired </div></td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">(57</td> <td>)</td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(288</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(345</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:40px; text-indent:-10px">Investment in Reliant Energy </div></td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">200</td> <td nowrap="nowrap"> </td> <td> </td> <td> </td> <td align="right">(200</td> <td>)</td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">—</td> <td nowrap="nowrap"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:40px; text-indent:-10px">Capital expenditures </div></td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(263</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(109</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(2</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(374</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:40px; text-indent:-10px">(Increase)/decrease in restricted cash, net </div></td> <td> </td> <td> </td> <td align="right">6</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(9</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(3</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:40px; text-indent:-10px">Decrease/(increase) in notes receivable </div></td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(47</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">36</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(11</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:40px; text-indent:-10px">Purchases of emission allowances </div></td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(52</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">—</td> <td nowrap="nowrap"> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(52</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:40px; text-indent:-10px">Proceeds from sale of emission allowances </div></td> <td> </td> <td> </td> <td align="right">15</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">15</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:40px; text-indent:-10px">Investment in nuclear decommissioning trust fund securities </div></td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(172</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(172</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:40px; text-indent:-10px">Proceeds from sales of nuclear decommissioning trust fund securities </div></td> <td> </td> <td> </td> <td align="right">157</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">157</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:40px; text-indent:-10px">Proceeds from sale of assets, net </div></td> <td> </td> <td> </td> <td align="right">6</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">6</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:40px; text-indent:-10px">Other investment </div></td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(5</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(5</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:40px; text-indent:-10px">Proceeds from sale of equity method investment </div></td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">284</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">284</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="21" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:18px; text-indent:-15px"><b>Net Cash Used by Investing Activities</b> </div></td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(1,204</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">262</td> <td nowrap="nowrap"> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(299</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">741</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(500</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="21" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:18px; text-indent:-15px"><b>Cash Flows from Financing Activities</b> </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:40px; text-indent:-10px">Proceeds from intercompany loans </div></td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(188</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">28</td> <td> </td> <td> </td> <td> </td> <td align="right">901</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(741</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:40px; text-indent:-10px">Payment from intercompany dividends </div></td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(330</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(330</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">660</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:40px; text-indent:-10px">Payment of dividends to preferred stockholders </div></td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(21</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(21</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:40px; text-indent:-10px">Receipt from/(payment of) financing element of acquired derivatives </div></td> <td> </td> <td> </td> <td align="right">102</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(124</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(22</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:40px; text-indent:-10px">Proceeds from sale of noncontrolling interest in subsidiary </div></td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">50</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">50</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:40px; text-indent:-10px">Proceeds from issuance of long-term debt </div></td> <td> </td> <td> </td> <td align="right">34</td> <td> </td> <td> </td> <td> </td> <td align="right">98</td> <td> </td> <td> </td> <td> </td> <td align="right">688</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">820</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:40px; text-indent:-10px">Payment of deferred debt issuance costs </div></td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(1</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(1</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(27</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(29</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:40px; text-indent:-10px">Payment of short and long-term debt </div></td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(20</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(213</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(233</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="21" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:18px; text-indent:-15px"><b>Net Cash (Used)/Provided by Financing Activities</b> </div></td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(383</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(299</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">1,328</td> <td> </td> <td> </td> <td> </td> <td align="right">(81</td> <td>)</td> <td> </td> <td> </td> <td align="right">565</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:25px; text-indent:-10px">Effect of exchange rate changes on cash and cash equivalents </div></td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">1</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">1</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="21" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:18px; text-indent:-15px"><b>Net Decrease in Cash and Cash Equivalents</b> </div></td> <td> </td> <td> </td> <td align="right">10</td> <td> </td> <td> </td> <td> </td> <td align="right">274</td> <td> </td> <td> </td> <td> </td> <td align="right">504</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">788</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:18px; text-indent:-15px"><b>Cash and Cash Equivalents at Beginning of Period</b> </div></td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(2</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">159</td> <td> </td> <td> </td> <td> </td> <td align="right">1,337</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">1,494</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="21" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:18px; text-indent:-15px"><b>Cash and Cash Equivalents at End of Period</b> </div></td> <td> </td> <td align="right">$   </td> <td align="right">8</td> <td> </td> <td> </td> <td align="right">$   </td> <td align="right">433</td> <td> </td> <td> </td> <td align="right">$   </td> <td align="right">1,841</td> <td> </td> <td> </td> <td align="right">$   </td> <td align="right">—</td> <td> </td> <td> </td> <td align="right">$ </td> <td align="right">2,282</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="21" align="left" style="border-top: 2px solid #000000"> </td> </tr>  </table> </div> <div style="margin-top: 8pt"> <table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left"> <tr valign="top" style="font-size: 8pt; color: #000000; background: transparent"> <td width="1%" nowrap="nowrap" align="left"><i>(a)</i></td> <td width="1%" nowrap="nowrap" align="left"> </td> <td width="98%"> <div style="text-align: justify"><i>All significant intercompany transactions have been eliminated in consolidation.</i> </div></td> </tr> </table> </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="center" style="font-size: 10pt; margin-top: 18pt"><b>NRG ENERGY, INC. AND SUBSIDIARIES<br /> CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS<br /> For the Three Months Ended June 30, 2008</b> </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="40%"> </td> <td width="5%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="5%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="5%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="5%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="5%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="5%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>NRG Energy,</b></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Guarantor</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Non-Guarantor</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Inc.</b></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Consolidated</b></td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td nowrap="nowrap" align="left"> <div style="margin-left:18px; text-indent:-15px"><b>(In millions)</b> </div></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Subsidiaries</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Subsidiaries</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>(Note Issuer)</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Eliminations</b><sup style="font-size: 85%; vertical-align: text-top"><b>(a)</b></sup></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Balance</b></td> <td> </td> <td> </td> <td> </td> <td> </td> </tr>   <tr style="font-size: 1px"> <td colspan="25" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:18px; text-indent:-15px"> <b>Operating Revenues</b> </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:25px; text-indent:-10px">Total operating revenues </div></td> <td> </td> <td align="right">    $  </td> <td align="right">1,222</td> <td> </td> <td> </td> <td align="right">    $  </td> <td align="right">94</td> <td> </td> <td> </td> <td align="right">    $  </td> <td align="right">—</td> <td> </td> <td> </td> <td align="right">    $  </td> <td align="right">—</td> <td> </td> <td> </td> <td align="right">    $  </td> <td align="right">1,316</td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="25" align="left" style="border-top: 1px solid #000000"> <div style="margin-left:18px; text-indent:-15px">  </div></td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:18px; text-indent:-15px"><b>Operating Costs and Expenses</b> </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:25px; text-indent:-10px">Cost of operations </div></td> <td> </td> <td> </td> <td align="right">946</td> <td> </td> <td> </td> <td> </td> <td align="right">65</td> <td> </td> <td> </td> <td> </td> <td align="right">1</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(1</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">1,011</td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:25px; text-indent:-10px">Depreciation and amortization </div></td> <td> </td> <td> </td> <td align="right">153</td> <td> </td> <td> </td> <td> </td> <td align="right">8</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">161</td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:25px; text-indent:-10px">General and administrative </div></td> <td> </td> <td> </td> <td align="right">18</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(7</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">72</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">83</td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:25px; text-indent:-10px">Development costs </div></td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(5</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">1</td> <td> </td> <td> </td> <td> </td> <td align="right">8</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">4</td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="25" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:45px; text-indent:-15px">Total operating costs and expenses </div></td> <td> </td> <td> </td> <td align="right">1,112</td> <td> </td> <td> </td> <td> </td> <td align="right">67</td> <td> </td> <td> </td> <td> </td> <td align="right">81</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(1</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">1,259</td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="25" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:18px; text-indent:-15px"><b>Operating Income/(Loss)</b> </div></td> <td> </td> <td> </td> <td align="right">110</td> <td> </td> <td> </td> <td> </td> <td align="right">27</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(81</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">1</td> <td> </td> <td> </td> <td> </td> <td align="right">57</td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:18px; text-indent:-15px"><b>Other Income/(Expense)</b> </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:25px; text-indent:-10px">Equity in earnings/(losses) of consolidated subsidiaries </div></td> <td> </td> <td> </td> <td align="right">138</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(32</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">303</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(409</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:25px; text-indent:-10px">Equity in losses of unconsolidated affiliates </div></td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(1</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(18</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(19</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:25px; text-indent:-10px">Other income, net </div></td> <td> </td> <td> </td> <td align="right">14</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(4</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">3</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(1</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">12</td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:25px; text-indent:-10px">Interest expense </div></td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(51</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(18</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(75</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(144</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="25" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:45px; text-indent:-15px">Total other income/(expense) </div></td> <td> </td> <td> </td> <td align="right">100</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(72</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">231</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(410</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(151</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="25" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:18px; text-indent:-15px"><b>Income/(Loss) From Continuing Operations Before Income Taxes</b> </div></td> <td> </td> <td> </td> <td align="right">210</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(45</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">150</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(409</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(94</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:18px; text-indent:-15px">Income tax (benefit)/expense </div></td> <td> </td> <td> </td> <td align="right">46</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(25</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(74</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(53</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="25" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:18px; text-indent:-15px"><b>Income/(Loss) From Continuing Operations</b> </div></td> <td> </td> <td> </td> <td align="right">164</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(20</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">224</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(409</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(41</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:8px; text-indent:-8px">Income from discontinued operations, net of income taxes </div></td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">265</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(97</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">168</td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="25" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px"> <b>Net Income/(Loss) attributable to <br /> NRG Energy, Inc.</b> </div></td> <td> </td> <td align="right">    $  </td> <td align="right">164</td> <td> </td> <td> </td> <td align="right">    $  </td> <td align="right">245</td> <td> </td> <td> </td> <td align="right">    $  </td> <td align="right">127</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right">$</td> <td align="right">(409</td> <td nowrap="nowrap">)</td> <td> </td> <td align="right">    $  </td> <td align="right">127</td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="25" align="left" style="border-top: 2px solid #000000"> </td> </tr>  </table> </div> <div style="margin-top: 8pt"> <table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 8pt; text-align: left"> <tr> <td width="3%"></td> <td width="1%"></td> <td width="96"></td> </tr> <tr valign="top"> <td nowrap="nowrap" align="left"><i>(a)</i></td> <td> </td> <td> <div style="text-align: justify"><i>All significant intercompany transactions have been eliminated in consolidation.</i> </div></td> </tr> </table> </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="center" style="font-size: 10pt; margin-top: 18pt"><b>NRG ENERGY, INC. AND SUBSIDIARIES<br /> CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS<br /> For the Six Months Ended June 30, 2008</b> </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="40%"> </td> <td width="5%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="5%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="5%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="5%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="5%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>NRG Energy,</b></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Guarantor</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Non-Guarantor</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Inc.</b></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Consolidated</b></td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td nowrap="nowrap" align="left"> <div style="margin-left:8px; text-indent:-8px"><b>(In millions)</b> </div></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Subsidiaries</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Subsidiaries</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>(Note Issuer)</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Eliminations</b><sup style="font-size: 85%; vertical-align: text-top"><b>(a)</b></sup></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Balance</b></td> </tr>   <tr style="font-size: 1px"> <td colspan="21" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:8px; text-indent:-8px"><b>Operating Revenues</b> </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:25px; text-indent:-10px">Total operating revenues </div></td> <td> </td> <td align="right">    $  </td> <td align="right">2,423</td> <td> </td> <td> </td> <td align="right">    $  </td> <td align="right">195</td> <td> </td> <td> </td> <td align="right">    $  </td> <td align="right">—</td> <td> </td> <td> </td> <td align="right">    $  </td> <td align="right">—</td> <td> </td> <td> </td> <td align="right">    $  </td> <td align="right">2,618</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="21" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:8px; text-indent:-8px"><b>Operating Costs and Expenses</b> </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:25px; text-indent:-10px">Cost of operations </div></td> <td> </td> <td> </td> <td align="right">1,681</td> <td> </td> <td> </td> <td> </td> <td align="right">132</td> <td> </td> <td> </td> <td> </td> <td align="right">3</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(1</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">1,815</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:25px; text-indent:-10px">Depreciation and amortization </div></td> <td> </td> <td> </td> <td align="right">306</td> <td> </td> <td> </td> <td> </td> <td align="right">14</td> <td> </td> <td> </td> <td> </td> <td align="right">2</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">322</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:25px; text-indent:-10px">General and administrative </div></td> <td> </td> <td> </td> <td align="right">31</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(4</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">131</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">158</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:25px; text-indent:-10px">Development costs </div></td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(5</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">3</td> <td> </td> <td> </td> <td> </td> <td align="right">18</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">16</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="21" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:45px; text-indent:-15px">Total operating costs and expenses </div></td> <td> </td> <td> </td> <td align="right">2,013</td> <td> </td> <td> </td> <td> </td> <td align="right">145</td> <td> </td> <td> </td> <td> </td> <td align="right">154</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(1</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">2,311</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="21" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:8px; text-indent:-8px"><b>Operating Income/(Loss)</b> </div></td> <td> </td> <td> </td> <td align="right">410</td> <td> </td> <td> </td> <td> </td> <td align="right">50</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(154</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">1</td> <td> </td> <td> </td> <td> </td> <td align="right">307</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:8px; text-indent:-8px"><b>Other Income/(Expense)</b> </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:25px; text-indent:-10px">Equity in earnings/(losses) of consolidated subsidiaries </div></td> <td> </td> <td> </td> <td align="right">210</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(50</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">445</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(605</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:25px; text-indent:-10px">Equity in losses of unconsolidated affiliates </div></td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(3</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(20</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(23</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:25px; text-indent:-10px">Other income, net </div></td> <td> </td> <td> </td> <td align="right">15</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(1</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">8</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(1</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">21</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:25px; text-indent:-10px">Interest expense </div></td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(102</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(39</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(159</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(300</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="21" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:45px; text-indent:-15px">Total other income/(expense) </div></td> <td> </td> <td> </td> <td align="right">120</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(110</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">294</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(606</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(302</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="21" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:8px; text-indent:-8px"><b>Income/(Loss) From Continuing Operations Before Income Taxes</b> </div></td> <td> </td> <td> </td> <td align="right">530</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(60</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">140</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(605</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">5</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:8px; text-indent:-8px">Income tax expense/(benefit) </div></td> <td> </td> <td> </td> <td align="right">167</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(33</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(133</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">1</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="21" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:8px; text-indent:-8px"><b>Income/(Loss) From Continuing Operations</b> </div></td> <td> </td> <td> </td> <td align="right">363</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(27</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">273</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(605</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">4</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:8px; text-indent:-8px">Income from discontinued operations, net of income taxes </div></td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">269</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(97</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">172</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="21" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:8px; text-indent:-8px"><b>Net Income/(Loss) attributable to <br />NRG Energy, Inc.</b> </div></td> <td> </td> <td align="right">    $  </td> <td align="right">363</td> <td> </td> <td> </td> <td align="right">    $  </td> <td align="right">242</td> <td> </td> <td> </td> <td align="right">    $  </td> <td align="right">176</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right">$</td> <td align="right">(605</td> <td nowrap="nowrap">)</td> <td> </td> <td align="right">    $  </td> <td align="right">176</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="21" align="left" style="border-top: 2px solid #000000"> </td> </tr>  </table> </div> <div style="margin-top: 8pt"> <table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 8pt; text-align: left"> <tr> <td width="3%"></td> <td width="1%"></td> <td width="96"></td> </tr> <tr valign="top"> <td nowrap="nowrap" align="left"><i>(a)</i></td> <td> </td> <td> <div style="text-align: justify"><i>All significant intercompany transactions have been eliminated in consolidation.</i> </div></td> </tr> </table> </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="center" style="font-size: 10pt; margin-top: 18pt"><b>NRG ENERGY, INC. AND SUBSIDIARIES<br /> CONDENSED CONSOLIDATING BALANCE SHEETS<br /> December 31, 2008</b> </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="40%"> </td> <td width="5%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="5%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="5%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="5%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="5%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Non-</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Guarantor</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Guarantor</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>NRG Energy,</b></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Consolidated</b></td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td nowrap="nowrap" align="left"> <div style="margin-left:8px; text-indent:-8px"><b>(In millions)</b> </div></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Subsidiaries</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Subsidiaries</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Inc.</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Eliminations</b><sup style="font-size: 85%; vertical-align: text-top"><b> (a)</b></sup></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Balance</b></td> </tr>   <tr style="font-size: 1px"> <td colspan="21" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="center" colspan="21"> <div style="margin-left:8px; text-indent:-8px"><b>ASSETS</b> </div></td> </tr> <tr valign="bottom"> <td> <div style="margin-left:8px; text-indent:-8px"><b>Current Assets</b> </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:25px; text-indent:-10px">Cash and cash equivalents </div></td> <td> </td> <td nowrap="nowrap" align="right">$</td> <td align="right">(2</td> <td nowrap="nowrap">)</td> <td> </td> <td align="right">    $  </td> <td align="right">159</td> <td> </td> <td> </td> <td align="right">    $  </td> <td align="right">1,337</td> <td> </td> <td> </td> <td align="right">    $  </td> <td align="right">—</td> <td> </td> <td> </td> <td align="right">    $  </td> <td align="right">1,494</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:25px; text-indent:-10px">Funds deposited by counterparties </div></td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">754</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">754</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:25px; text-indent:-10px">Restricted cash </div></td> <td> </td> <td> </td> <td align="right">7</td> <td> </td> <td> </td> <td> </td> <td align="right">9</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">16</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:25px; text-indent:-10px">Accounts receivable, net </div></td> <td> </td> <td> </td> <td align="right">422</td> <td> </td> <td> </td> <td> </td> <td align="right">42</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">464</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:25px; text-indent:-10px">Inventory </div></td> <td> </td> <td> </td> <td align="right">443</td> <td> </td> <td> </td> <td> </td> <td align="right">12</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">455</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:25px; text-indent:-10px">Derivative instruments valuation </div></td> <td> </td> <td> </td> <td align="right">4,600</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">4,600</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:25px; text-indent:-10px">Cash collateral paid in support of energy risk management activities </div></td> <td> </td> <td> </td> <td align="right">494</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">494</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:25px; text-indent:-10px">Prepayments and other current assets </div></td> <td> </td> <td> </td> <td align="right">130</td> <td> </td> <td> </td> <td> </td> <td align="right">37</td> <td> </td> <td> </td> <td> </td> <td align="right">278</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(230</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">215</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="21" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:40px; text-indent:-10px">Total current assets </div></td> <td> </td> <td> </td> <td align="right">6,094</td> <td> </td> <td> </td> <td> </td> <td align="right">259</td> <td> </td> <td> </td> <td> </td> <td align="right">2,369</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(230</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">8,492</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="21" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:8px; text-indent:-8px"><b>Net Property, Plant and Equipment</b> </div></td> <td> </td> <td> </td> <td align="right">10,725</td> <td> </td> <td> </td> <td> </td> <td align="right">791</td> <td> </td> <td> </td> <td> </td> <td align="right">29</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">11,545</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="21" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:8px; text-indent:-8px"><b>Other Assets</b> </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:25px; text-indent:-10px">Investment in subsidiaries </div></td> <td> </td> <td> </td> <td align="right">651</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">11,949</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(12,600</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:25px; text-indent:-10px">Equity investments in affiliates </div></td> <td> </td> <td> </td> <td align="right">26</td> <td> </td> <td> </td> <td> </td> <td align="right">464</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">490</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:25px; text-indent:-10px">Capital leases and note receivable, less current portion </div></td> <td> </td> <td> </td> <td align="right">598</td> <td> </td> <td> </td> <td> </td> <td align="right">435</td> <td> </td> <td> </td> <td> </td> <td align="right">3,177</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(3,775</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">435</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:25px; text-indent:-10px">Goodwill </div></td> <td> </td> <td> </td> <td align="right">1,718</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">1,718</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:25px; text-indent:-10px">Intangible assets, net </div></td> <td> </td> <td> </td> <td align="right">797</td> <td> </td> <td> </td> <td> </td> <td align="right">16</td> <td> </td> <td> </td> <td> </td> <td align="right">2</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">815</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:25px; text-indent:-10px">Nuclear decommissioning trust fund </div></td> <td> </td> <td> </td> <td align="right">303</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">303</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:25px; text-indent:-10px">Derivative instruments valuation </div></td> <td> </td> <td> </td> <td align="right">870</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">15</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">885</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:25px; text-indent:-10px">Other non-current assets </div></td> <td> </td> <td> </td> <td align="right">9</td> <td> </td> <td> </td> <td> </td> <td align="right">4</td> <td> </td> <td> </td> <td> </td> <td align="right">112</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">125</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="21" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:40px; text-indent:-10px">Total other assets </div></td> <td> </td> <td> </td> <td align="right">4,972</td> <td> </td> <td> </td> <td> </td> <td align="right">919</td> <td> </td> <td> </td> <td> </td> <td align="right">15,255</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(16,375</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">4,771</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="21" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:8px; text-indent:-8px"><b>Total Assets</b> </div></td> <td> </td> <td align="right">    $  </td> <td align="right">21,791</td> <td> </td> <td> </td> <td align="right">    $  </td> <td align="right">1,969</td> <td> </td> <td> </td> <td align="right">    $  </td> <td align="right">17,653</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right">$</td> <td align="right">(16,605</td> <td nowrap="nowrap">)</td> <td> </td> <td align="right">    $  </td> <td align="right">24,808</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="21" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td align="center" colspan="21"> <div style="margin-left:8px; text-indent:-8px"><b>LIABILITIES AND STOCKHOLDERS’ EQUITY</b> </div></td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:8px; text-indent:-8px"><b>Current Liabilities</b> </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:25px; text-indent:-10px">Current portion of long-term debt and capital leases </div></td> <td> </td> <td align="right">    $  </td> <td align="right">67</td> <td> </td> <td> </td> <td align="right">    $  </td> <td align="right">235</td> <td> </td> <td> </td> <td align="right">    $  </td> <td align="right">229</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right">$</td> <td align="right">(67</td> <td nowrap="nowrap">)</td> <td> </td> <td align="right">    $  </td> <td align="right">464</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:25px; text-indent:-10px">Accounts payable </div></td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(1,302</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">429</td> <td> </td> <td> </td> <td> </td> <td align="right">1,324</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">451</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:25px; text-indent:-10px">Derivative instruments valuation </div></td> <td> </td> <td> </td> <td align="right">3,976</td> <td> </td> <td> </td> <td> </td> <td align="right">3</td> <td> </td> <td> </td> <td> </td> <td align="right">2</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">3,981</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:25px; text-indent:-10px">Deferred income taxes </div></td> <td> </td> <td> </td> <td align="right">503</td> <td> </td> <td> </td> <td> </td> <td align="right">31</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(333</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">201</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:25px; text-indent:-10px">Cash collateral received in support of energy risk management activities </div></td> <td> </td> <td> </td> <td align="right">760</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">760</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:25px; text-indent:-10px">Accrued expenses and other current liabilities </div></td> <td> </td> <td> </td> <td align="right">507</td> <td> </td> <td> </td> <td> </td> <td align="right">48</td> <td> </td> <td> </td> <td> </td> <td align="right">333</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(164</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">724</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="21" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:8px; text-indent:-8px">Total current liabilities </div></td> <td> </td> <td> </td> <td align="right">4,511</td> <td> </td> <td> </td> <td> </td> <td align="right">746</td> <td> </td> <td> </td> <td> </td> <td align="right">1,555</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(231</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">6,581</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="21" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:8px; text-indent:-8px"><b>Other Liabilities</b> </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:25px; text-indent:-10px">Long-term debt and capital leases </div></td> <td> </td> <td> </td> <td align="right">2,730</td> <td> </td> <td> </td> <td> </td> <td align="right">1,014</td> <td> </td> <td> </td> <td> </td> <td align="right">7,729</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(3,776</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">7,697</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:25px; text-indent:-10px">Nuclear decommissioning reserve </div></td> <td> </td> <td> </td> <td align="right">284</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">284</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:25px; text-indent:-10px">Nuclear decommissioning trust liability </div></td> <td> </td> <td> </td> <td align="right">218</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">218</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:25px; text-indent:-10px">Deferred income taxes </div></td> <td> </td> <td> </td> <td align="right">705</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(187</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">672</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">1,190</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:25px; text-indent:-10px">Derivative instruments valuation </div></td> <td> </td> <td> </td> <td align="right">348</td> <td> </td> <td> </td> <td> </td> <td align="right">46</td> <td> </td> <td> </td> <td> </td> <td align="right">114</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">508</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:25px; text-indent:-10px">Out-of-market contracts </div></td> <td> </td> <td> </td> <td align="right">291</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">291</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:25px; text-indent:-10px">Other non-current liabilities </div></td> <td> </td> <td> </td> <td align="right">405</td> <td> </td> <td> </td> <td> </td> <td align="right">44</td> <td> </td> <td> </td> <td> </td> <td align="right">220</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">669</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="21" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:40px; text-indent:-10px">Total non-current liabilities </div></td> <td> </td> <td> </td> <td align="right">4,981</td> <td> </td> <td> </td> <td> </td> <td align="right">917</td> <td> </td> <td> </td> <td> </td> <td align="right">8,735</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(3,776</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">10,857</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="21" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:8px; text-indent:-8px"><b>Total liabilities</b> </div></td> <td> </td> <td> </td> <td align="right">9,492</td> <td> </td> <td> </td> <td> </td> <td align="right">1,663</td> <td> </td> <td> </td> <td> </td> <td align="right">10,290</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(4,007</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">17,438</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="21" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:8px; text-indent:-8px"><b>3.625% Preferred Stock</b> </div></td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">247</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">247</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:8px; text-indent:-8px"><b>Stockholders’ Equity</b> </div></td> <td> </td> <td> </td> <td align="right">12,299</td> <td> </td> <td> </td> <td> </td> <td align="right">306</td> <td> </td> <td> </td> <td> </td> <td align="right">7,116</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(12,598</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">7,123</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="21" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:8px; text-indent:-8px"><b>Total Liabilities and Stockholders’ Equity</b> </div></td> <td> </td> <td align="right">    $  </td> <td align="right">21,791</td> <td> </td> <td> </td> <td align="right">    $  </td> <td align="right">1,969</td> <td> </td> <td> </td> <td align="right">    $  </td> <td align="right">17,653</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right">$</td> <td align="right">(16,605</td> <td nowrap="nowrap">)</td> <td> </td> <td align="right">    $  </td> <td align="right">24,808</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="21" align="left" style="border-top: 2px solid #000000"> </td> </tr>  </table> </div> <div style="margin-top: 8pt"> <table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 8pt; text-align: left"> <tr> <td width="1%"></td> <td width="1%"></td> <td width="96"></td> </tr> <tr valign="top"> <td nowrap="nowrap" align="left"><i>(a)</i></td> <td> </td> <td> <div style="text-align: justify"><i>All significant intercompany transactions have been eliminated in consolidation.</i> </div></td> </tr> </table> </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="center" style="font-size: 10pt; margin-top: 12pt"><b>NRG ENERGY, INC. AND SUBSIDIARIES<br /> CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS<br /> For the Six Months Ended June 30, 2008</b> </div> <div align="center"> <table style="font-size: 9pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="40%"> </td> <td width="5%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="5%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="5%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="5%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="5%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Non-</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>NRG Energy,</b></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Guarantor</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Guarantor</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Inc.</b></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Consolidated</b></td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td nowrap="nowrap" align="left"> <div style="margin-left:18px; text-indent:-15px"><b>(In millions)</b> </div></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Subsidiaries</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Subsidiaries</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>(Note Issuer)</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Eliminations</b><sup style="font-size: 85%; vertical-align: text-top"><b>(a)</b></sup></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Balance</b></td> </tr>   <tr style="font-size: 1px"> <td colspan="21" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:18px; text-indent:-15px"><b>Cash Flows from Operating Activities</b> </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:25px; text-indent:-10px">Net income </div></td> <td> </td> <td align="right">    $  </td> <td align="right">363</td> <td> </td> <td> </td> <td align="right">    $  </td> <td align="right">242</td> <td> </td> <td> </td> <td align="right">    $  </td> <td align="right">176</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right">$</td> <td align="right">(605</td> <td nowrap="nowrap">)</td> <td> </td> <td align="right">    $  </td> <td align="right">176</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:25px; text-indent:-10px">Adjustments to reconcile net income to net cash provided by operating activities </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:45px; text-indent:-15px">Distributions and equity (earnings)/losses of unconsolidated affiliates and consolidated subsidiaries </div></td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(207</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">79</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(445</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">605</td> <td> </td> <td> </td> <td> </td> <td align="right">32</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:45px; text-indent:-15px">Depreciation and amortization </div></td> <td> </td> <td> </td> <td align="right">306</td> <td> </td> <td> </td> <td> </td> <td align="right">14</td> <td> </td> <td> </td> <td> </td> <td align="right">2</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">322</td> <td> </td> </tr> <tr valign="bottom"> <td nowrap="nowrap"> <div style="margin-left:45px; text-indent:-15px">Amortization of nuclear fuel </div></td> <td> </td> <td> </td> <td align="right">30</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">30</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:45px; text-indent:-15px">Amortization of financing costs and debt discount/premiums </div></td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">8</td> <td> </td> <td> </td> <td> </td> <td align="right">11</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">19</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:45px; text-indent:-15px">Amortization of intangibles and out-of-market contracts </div></td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(147</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(147</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:45px; text-indent:-15px">Changes in deferred income taxes and liability for unrecognized tax benefits </div></td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(159</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(52</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">307</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">96</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:45px; text-indent:-15px">Changes in nuclear decommissioning liability </div></td> <td> </td> <td> </td> <td align="right">17</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">17</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:45px; text-indent:-15px">Changes in derivatives </div></td> <td> </td> <td> </td> <td align="right">664</td> <td> </td> <td> </td> <td> </td> <td align="right">5</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">669</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:45px; text-indent:-15px">Changes in collateral deposits supporting energy risk management activities </div></td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(328</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(328</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:45px; text-indent:-15px">Loss on disposal and sale of assets </div></td> <td> </td> <td> </td> <td align="right">2</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">2</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:45px; text-indent:-15px">Gain on sale of discontinued operations </div></td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(270</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(270</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:45px; text-indent:-15px">Gain on sale of emission allowances </div></td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(42</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(42</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:45px; text-indent:-15px">Amortization of unearned equity compensation </div></td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">14</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">14</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:45px; text-indent:-15px">Changes in option premium collected </div></td> <td> </td> <td> </td> <td align="right">99</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">99</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:40px; text-indent:-10px">Cash provided by/(used by) changes in other working capital, net of dispositions affects </div></td> <td> </td> <td> </td> <td align="right">185</td> <td> </td> <td> </td> <td> </td> <td align="right">96</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(534</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(253</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="21" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:18px; text-indent:-15px"><b>Net Cash Provided by/Used by Operating Activities</b> </div></td> <td> </td> <td> </td> <td align="right">783</td> <td> </td> <td> </td> <td> </td> <td align="right">122</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(469</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">436</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="21" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:18px; text-indent:-15px"><b>Cash Flows from Investing Activities</b> </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:25px; text-indent:-10px">Intercompany (loans to)/receipts from subsidiaries </div></td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(81</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">444</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(363</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:25px; text-indent:-10px">Capital expenditures </div></td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(201</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(204</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(4</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(409</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:25px; text-indent:-10px">Increase in restricted cash </div></td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(1</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(1</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:25px; text-indent:-10px">Decrease in notes receivable </div></td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">21</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">21</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:25px; text-indent:-10px">Purchases of emission allowances </div></td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(4</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(4</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:25px; text-indent:-10px">Proceeds from sale of emission allowances </div></td> <td> </td> <td> </td> <td align="right">61</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">61</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td nowrap="nowrap"> <div style="margin-left:25px; text-indent:-10px">Investment in nuclear decommissioning trust fund securities </div></td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(285</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(285</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:25px; text-indent:-10px">Proceeds from sales of nuclear decommissioning trust fund securities </div></td> <td> </td> <td> </td> <td align="right">269</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">269</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:25px; text-indent:-10px">Proceeds from sale of discontinued operations and assets, net of cash divested </div></td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(59</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">288</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">229</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:25px; text-indent:-10px">Proceeds from sale of assets </div></td> <td> </td> <td> </td> <td align="right">14</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">14</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:25px; text-indent:-10px">Equity investment in unconsolidated affiliate </div></td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(17</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(17</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="21" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:18px; text-indent:-15px"><b>Net Cash Provided/Used by Investing Activities</b> </div></td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(227</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(243</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">711</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(363</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(122</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="21" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:18px; text-indent:-15px"><b>Cash Flows from Financing Activities</b> </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:25px; text-indent:-10px">(Payments)/proceeds for intercompany loans </div></td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(523</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">79</td> <td> </td> <td> </td> <td> </td> <td align="right">81</td> <td> </td> <td> </td> <td> </td> <td align="right">363</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:25px; text-indent:-10px">Receipt/(Payment) from intercompany dividend </div></td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">17</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(17</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:25px; text-indent:-10px">Payments for dividends to preferred stockholders </div></td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(28</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(28</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:25px; text-indent:-10px">Payment of financing element of acquired derivatives </div></td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(28</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(28</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:25px; text-indent:-10px">Payments for treasury stock </div></td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(55</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(55</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:25px; text-indent:-10px">Proceeds from issuance of common stock, net of issuance costs </div></td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">8</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">8</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:25px; text-indent:-10px">Proceeds from sale of noncontrolling interest on subsidiary </div></td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">50</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">50</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:25px; text-indent:-10px">Proceeds from issuance of long term debt </div></td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">10</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">10</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:25px; text-indent:-10px">Payments for deferred debt issuance costs </div></td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(2</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(2</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:25px; text-indent:-10px">Payments for short and long-term debt </div></td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(30</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(158</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(188</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="21" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:18px; text-indent:-15px"><b>Net Cash Provided by/Used by Financing Activities</b> </div></td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(551</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">126</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(171</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">363</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(233</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:25px; text-indent:-10px">Change in cash from discontinued operations </div></td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">43</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">43</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:25px; text-indent:-10px">Effect of exchange rate changes on cash and cash equivalents </div></td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">7</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">7</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="21" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:18px; text-indent:-15px"><b>Net Increase in Cash and Cash Equivalents</b> </div></td> <td> </td> <td> </td> <td align="right">5</td> <td> </td> <td> </td> <td> </td> <td align="right">55</td> <td> </td> <td> </td> <td> </td> <td align="right">71</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">131</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:18px; text-indent:-15px"><b>Cash and Cash Equivalents at Beginning of Period</b> </div></td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(4</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">124</td> <td> </td> <td> </td> <td> </td> <td align="right">1,012</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">1,132</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="21" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:18px; text-indent:-15px"><b>Cash and Cash Equivalents at End of Period</b> </div></td> <td> </td> <td align="right">    $  </td> <td align="right">1</td> <td> </td> <td> </td> <td align="right">    $  </td> <td align="right">179</td> <td> </td> <td> </td> <td align="right">    $  </td> <td align="right">1,083</td> <td> </td> <td> </td> <td align="right">    $  </td> <td align="right">—</td> <td> </td> <td> </td> <td align="right">    $  </td> <td align="right">1,263</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="21" align="left" style="border-top: 2px solid #000000"> </td> </tr>  </table> </div> <div style="margin-top: 8pt"> <table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 8pt; text-align: left"> <tr> <td width="3%"></td> <td width="1%"></td> <td width="96"></td> </tr> <tr valign="top"> <td nowrap="nowrap" align="left"><i>(a)</i></td> <td> </td> <td> <div style="text-align: justify"><i>All significant intercompany transactions have been eliminated in consolidation.</i> </div></td> </tr> </table> </div> </div> </body> </html> Amended 10Q to include initial XBRL exhibits true --12-31 2009-06-30 10-Q 0001013871 265276841 Yes Large Accelerated Filer 10001849139 NRG Energy, Inc. 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