8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): May 1, 2008

RELIANT ENERGY, INC.
(Exact name of registrant as specified in its charter)

Delaware	1-16455	76-0655566
(State or other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)

1000 Main Street Houston, Texas	77002
(Address of Principal Executive Offices)	(Zip Code)

Registrant’s telephone number, including area code: (713) 497-3000

(Former name or former address if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

In this Current Report on Form 8-K (Form 8-K) and in the exhibit included as part of this report, “Reliant Energy” refers to Reliant Energy, Inc., and “we,” “us” and “our” refer to Reliant Energy and its subsidiaries.

Item 2.02. Results of Operations and Financial Condition.

On May 1, 2008, we issued a press release (earnings release) setting forth our results of operations for the three months ended March 31, 2008. A copy of the earnings release is furnished as Exhibit 99.1 to this Form 8-K. Copies of this Form 8-K and the earnings release are available at http://www.reliant.com/corporate in the investor relations section.

In analyzing and planning for our business, we supplement our use of financial measures that are calculated and presented in accordance with accounting principles generally accepted in the United States of America (GAAP) with a number of non-GAAP financial measures. Non-GAAP financial measures are not standardized; therefore, it may not be possible to compare these financial measures with other companies’ non-GAAP financial measures having the same or similar names. These non-GAAP financial measures reflect an additional way of viewing aspects of our operations that, when viewed with our GAAP results and the accompanying reconciliations to corresponding GAAP financial measures, may provide a more complete understanding of factors and trends affecting our business. These non-GAAP financial measures should not be relied upon without considering the GAAP financial measures. We strongly encourage investors to review our consolidated financial statements and publicly filed reports in their entirety and not rely on any single financial measure.

In this Form 8-K, we discuss the non-GAAP financial measures included in or attached to the earnings release, including the reasons that we believe that these measures provide useful information regarding our financial condition, results of operations, cash flows and financial position, as applicable and, to the extent material, the additional purposes, if any, for which these measures are used. Reconciliations of non-GAAP financial measures to the most directly comparable GAAP financial measures are contained in the earnings release or its attachment. We note that, where non-GAAP financial measures are presented on a forward-looking basis, certain factors that could affect GAAP financial measures are not accessible or estimable on a forward-looking basis. These factors include future unrealized gains/losses on energy derivatives and could include other items that may be material, such as mothballs/retirements and legal and regulatory settlements.

Non-GAAP Margin Measures.

We believe that retail gross margin, retail contribution margin, open wholesale gross margin, open energy gross margin and open wholesale contribution margin are meaningful to us, investors, analysts and others because our management uses these measures in addition to GAAP measures, in evaluating the performance and outlook of our business segments, retail energy and wholesale energy. In addition, we believe that these measures are useful to parties evaluating our segment performance and comparing our segment financial results to other companies that have similar business operations. We use these non-GAAP financial measures in communications with investors, analysts, rating agencies, banks and other parties.

“Retail Gross Margin.” We define “retail gross margin” as revenues less cost of sales for our retail energy segment adjusted to exclude the impact of unrealized gains/losses on energy derivatives, as described below.

• Unrealized Gains/Losses on Energy Derivatives. We use derivative instruments to manage operational or market constraints and to execute our retail energy segment’s supply procurement strategy. We are required to record in our consolidated statement of operations non-cash gains/losses related to future periods based on current changes in forward commodity prices for derivative instruments receiving mark-to-market accounting treatment. We refer to these gains and losses prior to settlement, as well as ineffectiveness on cash flow hedges, as “unrealized gains/losses on energy derivatives.” In substantially all cases, the underlying transactions being hedged receive accrual accounting treatment, resulting in a mismatch of accounting treatments. Since the application of mark-to-market accounting has the effect of pulling forward into current periods non-cash gains/losses relating to and reversing in future delivery periods, analysis of results of operations from one period to another can be difficult. We believe that excluding these unrealized gains/losses on energy derivatives provides a more meaningful representation of our economic performance in the reporting period and is therefore useful to us, investors, analysts and others in facilitating the analysis of our results of operations from one period to another.

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The most directly comparable GAAP financial measure is contribution margin, including unrealized gains/losses on energy derivatives (our segment measure) for the retail energy segment.

“Retail Contribution Margin.” We define “retail contribution margin” as revenues less cost of sales, operation and maintenance, selling and marketing and bad debt expense, adjusted to exclude the impact of unrealized gains/losses on energy derivatives, as described above under “Retail Gross Margin.” The most directly comparable GAAP financial measure is contribution margin, including unrealized gains/losses on energy derivatives (our segment measure) for the retail energy segment.

“Open Wholesale Gross Margin” and “Open Energy Gross Margin.” Open wholesale gross margin involves two components: “open energy gross margin” and “other margin.” Open energy gross margin is calculated using the power sales prices received by the plants less delivered spot fuel prices. This figure excludes the effects of other margin, our historical and operational wholesale hedges and unrealized gains/losses on energy derivatives. Other margin represents power purchase agreements, capacity payments, ancillary services revenues and selective commercial hedge strategies. Open wholesale gross margin excludes the effect of the following:

• Historical and Operational Wholesale Hedges. We exclude the recurring effect of certain historical wholesale hedges that were entered into in order to hedge the economics of a portion of our wholesale operations. These amounts primarily relate to settlements of forward power hedges, long-term tolling purchases, long-term natural gas transportation contracts not serving our generation assets and our legacy energy trading. We also exclude the effect of certain on-going operational wholesale hedges that were entered into primarily to mitigate certain operational risks at our generation assets. These amounts primarily relate to settlements of fuel hedges, long-term natural gas transportation contracts and storage contracts. Operational wholesale hedges are derived based on methodology consistent with the calculation of open energy gross margin. We believe that it is useful to us, investors, analysts and others to show our results in the absence of both historical and operational hedges. The impact of these hedges on our financial results is not a function of the operating performance of our generation assets, and excluding the impact better reflects the operating performance of our generation assets based on prevailing market conditions.

• Unrealized Gains/Losses on Energy Derivatives. We use derivative instruments to manage operational or market constraints and to increase the return on our generation assets. We are required to record in our consolidated statement of operations non-cash gains/losses related to future periods based on current changes in forward commodity prices for derivative instruments receiving mark-to-market accounting treatment. We refer to these gains and losses prior to settlement, as well as ineffectiveness on cash flow hedges, as “unrealized gains/losses on energy derivatives.” In some cases, the underlying transactions being hedged receive accrual accounting treatment, resulting in a mismatch of accounting treatments. Since the application of mark-to-market accounting has the effect of pulling forward into current periods non-cash gains/losses relating to and reversing in future delivery periods, analysis of results of operations from one period to another can be difficult. We believe that excluding these unrealized gains/losses on energy derivatives provides a more meaningful representation of our economic performance in the reporting period and is therefore useful to us, investors, analysts and others in facilitating the analysis of our results of operations from one period to another. These gains/losses are also not a function of the operating performance of our generation assets, and excluding their impact helps isolate the operating performance of our generation assets under prevailing market conditions.

The most directly comparable GAAP measure is contribution margin, including historical and operational wholesale hedges and unrealized gains/losses on energy derivatives (our segment measure) for the wholesale energy segment.

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“Open Wholesale Contribution Margin.” We define “open wholesale contribution margin” as revenues less cost of sales, operation and maintenance and bad debt expense, adjusted to exclude the impact of historical and operational wholesale hedges and unrealized gains/losses on energy derivatives, as described above under “Open Wholesale Gross Margin” and “Open Energy Gross Margin.” The most directly comparable GAAP financial measure is contribution margin, including historical and operational wholesale hedges and unrealized gains/losses on energy derivatives (our segment measure) for the wholesale energy segment.

Non-GAAP EBITDA Measures

“EBITDA” and “Adjusted EBITDA.” We believe that earnings (loss) before interest, taxes, depreciation and amortization (EBITDA) and adjusted EBITDA provide meaningful representations of our consolidated operating performance. We consider EBITDA and adjusted EBITDA as performance measures rather than liquidity measures. In addition, many analysts and investors use EBITDA to evaluate financial performance. Adjusted EBITDA includes the following adjustments:

• Unrealized Gains/Losses on Energy Derivatives. Described above under “Retail Gross Margin” and “Open Wholesale Gross Margin” and “Open Energy Gross Margin.”

• Western States Litigation and Similar Settlements. We exclude charges related to settlement of civil and criminal actions in our legacy western states and similar litigation. Because these charges are not representative of our ongoing business operations, our management believes that excluding them provides a more meaningful representation of our results of operations.  For additional information, see note 14(a) to our consolidated financial statements in our most recent Form 10-K and note 11(a) to our interim financial statements in our Form 10-Q.

The most directly comparable GAAP financial measure to EBITDA and adjusted EBITDA is income (loss) from continuing operations before income taxes.

“Open EBITDA.” Open EBITDA includes the adjustments described above under “EBITDA” and “Adjusted EBITDA” as well as the following adjustments, which we believe help to provide a meaningful representation of our consolidated operating performance:

• Historical and Operational Wholesale Hedges. Described above under “Open Wholesale Gross Margin” and “Open Energy Gross Margin.”

• Gains on Sales of Emission Allowances. As part of our effort to operate our business efficiently, we periodically sell emission allowances inventory in excess of our forward power sales commitments if the price is above our view of their value. We believe that excluding the gains from such sales is useful because these gains are not directly tied to the operating performance of our generation assets, and excluding them helps to isolate the operating performance of our generation assets under prevailing market conditions.

• Gains or Losses on Sales of Assets. We exclude gains or losses on asset sales because we believe that these gains or losses are not directly tied to the operating performance of our generation assets, and excluding them helps to isolate the operating performance of our generation assets under prevailing market conditions.

The most directly comparable GAAP financial measure to open EBITDA is income (loss) from continuing operations before income taxes.

Non-GAAP Free Cash Flow Measures

Our non-GAAP cash flow measures may not be representative of the amount of residual cash flow that is available to us for discretionary expenditures, since they may not include deductions for all non-discretionary expenditures. We believe, however, that our non-GAAP cash flow measures are useful because they provide a representation of our cash level available to service debt on a normalized basis, both before and after capital expenditures and emission allowances activity.

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“Adjusted Cash Flow Provided By (Used In) Continuing Operations.” We define adjusted cash flow provided by (used in) continuing operations as operating cash flow from continuing operations (which is the most directly comparable GAAP financial measure) excluding:

• Western States Litigation and Similar Settlements Payments. We exclude the cash outflows related to settlement of civil and criminal actions in our legacy western states and similar litigation. Because these payments are not representative of our ongoing business operations, we believe that excluding these outflows provides a more meaningful representation of our cash flow on an ongoing basis. For additional information, see note 14(a) to our consolidated financial statements in our most recent Form 10-K.

• Change in Margin Deposits, Net. We post collateral to support a portion of our commodity sales and purchase transactions.  The collateral provides assurance to counterparties that contractual obligations will be fulfilled.  As the obligations are fulfilled, the collateral is returned.  We commonly use both cash and letters of credit as collateral.  The use of cash as collateral appears as an asset on the balance sheet and as a use of cash in operating cash flow.  When cash collateral is returned, the asset is eliminated from the balance sheet and it appears as a source of cash in operating cash flow. We believe that it is useful to exclude changes in margin deposits, since changes in margin deposits reflect the net inflows and outflows of cash collateral and are driven by hedging levels and changes in commodity prices, not by the cash flow generated by the business related to sales and purchases in the reporting period.

“Free Cash Flow Provided By (Used In) Continuing Operations.” Free cash flow provided by (used in) continuing operations is the same as adjusted cash flow provided by (used in) continuing operations but is further adjusted for capital expenditures and the following item:

• Net Sales (Purchases) of Emission Allowances. The cash flows from sales and purchases of emission allowances are classified as investing cash flows for GAAP purposes; however, we purchase and sell emission allowances in connection with the operation of our generating assets. As part of our effort to operate our business efficiently, we periodically sell emission allowances inventory in excess of our forward power sales commitments if the price is above our view of their value. Consistent with subtracting capital expenditures (which is a GAAP investing cash flow activity) in calculating free cash flow, we add sales and subtract purchases of emission allowances.

The most directly comparable GAAP financial measure to free cash flow provided by (used in) continuing operations is operating cash flow from continuing operations.

Other Non-GAAP Measures

“GrossDebt.” Gross debt is total GAAP debt plus certain off balance sheet debt. We believe that gross debt is a useful measure of our progress towards our strategic corporate objective of establishing and maintaining a strong, flexible capital structure that ensures a competitive cost of capital with an ability to invest in value creating opportunities throughout the cycle.

Item 9.01. Financial Statements and Exhibits.

(d) We furnish the following exhibit:

99.1—Press Release dated May 1, 2008

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CAUTIONARY STATEMENTS REGARDING FORWARD-LOOKING INFORMATION

The earnings release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are statements that contain projections, assumptions or estimates about our revenues, income, capital structure and other financial items, our plans and objectives for future operations or about our future economic performance, transactions and dispositions and financings and approvals related thereto. In many cases you can identify forward-looking statements by terminology such as “anticipate,” “estimate,” “believe,” “continue,” “could,” “intend,” “may,” “plan,” “potential,” “predict,” “should,” “will,” “expect,” “objective,” “projection,” “forecast,” “goal,” “guidance,” “outlook,” “effort,” “target” and other similar words. However, the absence of these words does not mean that the statements are not forward-looking.

Actual results may differ materially from those expressed or implied by forward-looking statements as a result of many factors or events, including, but not limited to, legislative, regulatory and/or market developments, the outcome of pending lawsuits, governmental proceedings and investigations, the effects of competition, financial market conditions, access to capital, the timing and extent of changes in commodity prices and interest rates, weather conditions and other factors we discuss or refer to in the “Risk Factors” section of our most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission.

Each forward-looking statement speaks only as of the date of the particular statement and we undertake no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

INFORMATION FURNISHED

The information in Item 2.02 and Exhibit 99.1 of this Form 8-K is being furnished, not filed. Accordingly, the information will not be incorporated by reference into any registration statement filed by Reliant Energy under the Securities Act of 1933, as amended, unless specifically identified as being incorporated by reference therein.

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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

RELIANT ENERGY, INC.
      (Registrant)

Date: May 1, 2008

By:/s/ Thomas C. Livengood              
Thomas C. Livengood
Senior Vice President and Controller

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EXHIBIT INDEX

Exhibit Number	Exhibit Description
99.1	Press Release dated May 1, 2008

EX-99.1

Exhibit 99.1

FOR FURTHER INFORMATION:	Dennis Barber, investors	(713) 497-3042
	Pat Hammond, media	(713) 497-7723
FOR IMMEDIATE RELEASE:	May 1, 2008

Reliant Energy Reports First Quarter 2008 Results

• Continued improvement in financial results

• Committed to deliver top quartile operating performance

• Accelerated investment in Smart Energy

• Entered New York market for sales to commercial and industrial customers

• Announced sale of Bighorn generating facility for $500 million

HOUSTON — Reliant Energy, Inc. reported open EBITDA of $172 million for the first quarter of 2008, compared to $114 million for the first quarter of 2007 driven by improvements in open wholesale contribution margin.

Adjusted EBITDA, which includes the effect of historical and operational wholesale hedges and gains on sales of assets and emission allowances, was $218 million for the first quarter of 2008, compared to $81 million for the first quarter of 2007. The increase was due to significant improvement in historical and operational hedges and improvements in open wholesale contribution margin.

Free cash flow provided by continuing operations was $241 million in the first quarter of 2008, compared to a free cash flow used in continuing operations of $37 million for the same period in 2007. The improvement was primarily due to higher adjusted EBITDA, as described above, and the timing of interest payments resulting from a debt refinancing in 2007.

“We are executing on our distinctive strategy for creating long-term value for shareholders,” said Mark Jacobs, president and chief executive officer. “Financial results for the first quarter improved along with market conditions. Going forward, we remain focused on operations excellence, financial flexibility and a disciplined approach to capital investment.”

On a GAAP basis, income from continuing operations before income taxes for the first quarter of 2008 was $600 million, compared to $412 million for the first quarter of 2007. 2008 GAAP results include net unrealized gains from energy derivatives of $558 million and a $34 million charge related to western states litigation and similar settlements. The reported numbers for 2007 include net unrealized gains from energy derivatives of $522 million and a $22 million charge for western states litigation and similar settlements. On a GAAP basis, operating cash flow from continuing operations was $302 million for the first quarter of 2008, compared to $35 million for the same period of 2007. Interest expense, net declined to $53 million for the first quarter of 2008, compared to $77 million for the first quarter of 2007. The decline was primarily related to lower debt levels in 2008.

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OUTLOOK

Reliant Energy’s outlook for open EBITDA is $1,107 million, $1,257 million and $1,383 million for the years ending December 31, 2008, 2009 and 2010, respectively. Adjusted EBITDA, which includes the impact of historical and operational wholesale hedges and gains on the sales of assets and emission allowances, net is $1,368 million, $1,253 million and $1,354 million for the same periods. The outlook for free cash flow provided by continuing operations is $631 million, $637 million and $905 million for the years ending December 31, 2008, 2009 and 2010, respectively.

This outlook is based on forward commodity prices as of March 21, 2008, assumptions and estimates by Reliant Energy, and excludes Bighorn financial results beginning in the fourth quarter of 2008.

Open EBITDA
Outlook Reconciliation

($ millions)	2007A			2008E			2009E		2010E
Income from continuing operations before income taxes	$	493		$	906		$	564	$	741
Unrealized (gains) losses on energy derivatives		(445	)		(202	)		44		(12	)
Western states litigation and similar settlements		22			34			—		—
Debt extinguishments		73			1			—		—
Depreciation and amortization		424			419			477		465
Interest expense, net		315			210			168		160
Adjusted EBITDA	$	882		$	1,368		$	1,253	$	1,354
Historical and operational wholesale hedges		92			(220	)		4		29
Gains on sales of assets and emission allowances, net		(26	)		(41	)		—		—
Open EBITDA	$	948		$	1,107		$	1,257	$	1,383

Free Cash Flow from Continuing Operations
Outlook Reconciliation

($ millions)	2007A			2008E			2009E			2010E
Operating cash flow from continuing operations 1	$	755		$	1,112		$	1,074		$	1,185
Western states litigation and similar settlements payments		57			34			—			—
Change in margin deposits, net		(297	)		(37	)		(16	)		(17	)
Adjusted cash flow provided by continuing operations	$	515		$	1,109		$	1,058		$	1,168
Maintenance capital expenditures and capitalized interest		(89	)		(103	)		(124	)		(90	)
Environmental capital expenditures 2		(100	)		(264	)		(125	)		(26	)
Emission allowances activity, net		(85	)		(111	)		(172	)		(147	)
Free cash flow provided by continuing operations	$	241		$	631		$	637		$	905

1.	Outlook assumes no changes in working capital.
2.	Based on existing laws and regulations. Estimate represents the low end of the range.

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NON-GAAP FINANCIAL MEASURES

This press release and the attached financial tables include the following non-GAAP financial measures:

Retail gross margin
Retail contribution margin
Open energy gross margin
Open wholesale gross margin
Open wholesale contribution margin
EBITDA
Adjusted EBITDA
Open EBITDA
Adjusted cash flow provided by continuing operations
Free cash flow provided by continuing operations
Gross debt

A reconciliation of these financial measures and the most directly comparable GAAP measures is included above or in the attached financial tables. Additional information regarding these measures, including a discussion of their usefulness and purpose, is included in the Form 8-K furnished along with this press release. Certain factors that could affect GAAP financial measures are not accessible on a forward-looking basis, but could be material to future reported earnings and cash flows.

WEBCAST OF EARNINGS CONFERENCE CALL

Reliant Energy has scheduled its first quarter 2008 earnings conference call for Thursday, May 1, 2008, at 10 a.m. CT. Interested parties may listen to a live audio broadcast of the conference call at www.reliant.com in the investors section. A replay of the call can be accessed approximately two hours after the completion of the call. A copy of the presentation accompanying the call is also available at this Website address.

Reliant Energy, Inc. (NYSE: RRI) based in Houston, Texas, provides electricity and energy services to retail and wholesale customers in the United States. In Texas, the company provides service to approximately 1.8 million retail electricity customers, including residential and small business customers and commercial, industrial, governmental and institutional customers. Reliant also serves commercial, industrial, governmental and institutional customers in the PJM (Pennsylvania, New Jersey and Maryland), Illinois and New York markets.

The company is one of the largest independent power producers in the nation with approximately 16,000 megawatts of power generation capacity across the United States. These strategically located generating assets utilize natural gas, fuel oil and coal. For more information, visit www.reliant.com.

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This news release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are statements that contain projections, estimates or assumptions about our revenues, income, capital structure and other financial items, and our plans and objectives for future operations or about our future economic performance, transactions and dispositions and financings and approvals related thereto. In many cases you can identify forward-looking statements by terminology such as “anticipate,” “estimate,” “believe,” “continue,” “could,” “intend,” “may,” “plan,” “potential,” “predict,” “should,” “will,” “expect,” “objective,” “projection,” “forecast,” “goal,” “guidance,” “outlook,” “effort,” “target” and other similar words. However, the absence of these words does not mean that the statements are not forward-looking.

Actual results may differ materially from those expressed or implied by forward-looking statements as a result of many factors or events, including, but not limited to, legislative, regulatory and/or market developments, the outcome of pending lawsuits, governmental proceedings and investigations, the effects of competition, financial market conditions, access to capital, the timing and extent of changes in commodity prices and interest rates, weather conditions and other factors we discuss or refer to in the “Risk Factors” section of our most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission.

Each forward-looking statement speaks only as of the date of the particular statement and we undertake no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

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Reliant Energy, Inc. and Subsidiaries
Consolidated Statements of Operations
(Unaudited)

	Three Months Ended March 31,
	2008			2007
	(thousands of dollars, except per share amounts)
Revenues:
Revenues (including $(12,584) and $14,570 unrealized gains (losses)) (including $107,409 and $0 from affiliates)	$	2,815,424		$	2,362,601
Expenses:
Cost of sales (including $570,883 and $507,659 unrealized gains) (including $78,996 and $0 from affiliates)		1,751,672			1,443,491
Operation and maintenance		212,478			230,741
Selling, general and administrative		75,650			87,597
Western states litigation and similar settlements		34,000			22,000
Gains on sales of assets and emission allowances, net		(611	)		—
Depreciation and amortization		88,594			91,969
Total operating expense		2,161,783			1,875,798
Operating Income		653,641			486,803
Other Income (Expense):
Income of equity investment, net		207			1,160
Debt extinguishments		(423	)		—
Other, net		(64	)		1,068
Interest expense		(63,101	)		(87,070	)
Interest income		9,504			10,464
Total other expense		(53,877	)		(74,378	)
Income from Continuing Operations Before Income Taxes		599,764			412,425
Income tax expense		228,787			152,062
Income from Continuing Operations		370,977			260,363
Income (loss) from discontinued operations		6,235			(1,652	)
Net Income	$	377,212		$	258,711
Basic Earnings Per Share:
Income from continuing operations	$	1.07		$	0.77
Income (loss) from discontinued operations		0.02			(0.01	)
Net income	$	1.09		$	0.76
Diluted Earnings Per Share:
Income from continuing operations	$	1.05		$	0.75
Income (loss) from discontinued operations		0.02			(0.01	)
Net income	$	1.07		$	0.74
Weighted Average Common Shares Outstanding (in thousands):
- Basic		345,419			339,345
- Diluted		354,103			349,452

Reference is made to Reliant Energy, Inc.’s Annual Report
on Form 10-K for the year ended December 31, 2007.

Reliant Energy, Inc. and Subsidiaries
Results of Operations by Segment — Adjusted and Open
(Unaudited)

	Three Months Ended March 31,
	2008			2007			Change
	(millions of dollars)
Retail Energy:
Revenues	$	1,935		$	1,701		$	234
Cost of sales		1,242			909			333
Unrealized gains on energy derivatives		(528	)		(616	)		88
Retail gross margin (1)		165			176			(11	)
Operation and maintenance		60			61			(1	)
Selling and marketing		32			30			2
Bad debt expense		7			17			(10	)
Retail contribution margin		66			68			(2	)
Unrealized gains on energy derivatives		528			616			(88	)
Contribution margin, including unrealized gains/losses on energy derivatives (2)		594			684			(90	)
Wholesale Energy:
Revenues	$	927		$	748		$	179
Cost of sales		557			621			(64	)
Historical and operational wholesale hedges		(45	)		33			(78	)
Unrealized (gains) losses on energy derivatives		(30	)		94			(124	)
Open wholesale gross margin (1)		295			254			41
Operation and maintenance		152			170			(18	)
Bad debt expense		1			(1	)		2
Open wholesale contribution margin		142			85			57
Historical and operational wholesale hedges		45			(33	)		78
Unrealized gains (losses) on energy derivatives		30			(94	)		124
Contribution margin, including historical and operational wholesale hedges and unrealized gains/losses on energy derivatives (2)		217			(42	)		259
Other Operations:
Revenues	$	4		$	3		$	1
Cost of sales		—			—			—
Operation and maintenance		3			1			2
Other operations contribution margin (2)		1			2			(1	)
Eliminations:
Revenues	$	(51	)	$	(90	)	$	39
Cost of sales		(48	)		(87	)		39
Operation and maintenance		(2	)		(1	)		(1	)
Total		(1	)		(2	)		1
Consolidated:
Retail contribution margin	$	66		$	68		$	(2	)
Open wholesale contribution margin		142			85			57
Other operations contribution margin		1			2			(1	)
Eliminations		(1	)		(2	)		1
Total		208			153			55
Other general and administrative		(36	)		(41	)		5
Income of equity investment, net		—			1			(1	)
Other, net		—			1			(1	)
Open EBITDA		172			114			58
Historical and operational wholesale hedges		45			(33	)		78
Gains on sales of assets and emission allowances, net		1			—			1
Adjusted EBITDA		218			81			137
Unrealized gains on energy derivatives		558			522			36
Western states litigation and similar settlements		(34	)		(22	)		(12	)
EBITDA		742			581			161
Depreciation and amortization		(89	)		(92	)		3
Interest expense		(63	)		(87	)		24
Interest income		10			10			—
Income from continuing operations before income taxes	$	600		$	412		$	188

(1)	Gross margin (revenues less cost of sales) excludes depreciation, amortization, labor and other product costs.
(2)	Segment profit and loss measure.

Reference is made to Reliant Energy, Inc.’s Annual Report
on Form 10-K for the year ended December 31, 2007.

Reliant Energy, Inc. and Subsidiaries
Consolidated Balance Sheets
(Unaudited)

	March 31, 2008			December 31, 2007
ASSETS	(thousands of dollars)
Current Assets:
Cash and cash equivalents	$	964,780		$	754,962
Restricted cash		4,938			3,251
Accounts and notes receivable, principally customer, net of allowance of $27,118 and $36,724		982,690			1,082,746
Inventory		258,146			285,408
Derivative assets		2,096,201			663,049
Margin deposits		130,880			139,834
Investment in and receivables from Channelview, net		89,405			83,253
Prepayments and other current assets		128,538			218,873
Current assets of discontinued operations		6,235			2,133
Total current assets		4,661,813			3,233,509
Property, plant and equipment, gross		6,899,925			6,852,170
Accumulated depreciation		(1,695,217	)		(1,629,953	)
Property, Plant and Equipment, net		5,204,708			5,222,217
Other Assets:
Goodwill, net		379,644			379,644
Other intangibles, net		394,455			405,338
Derivative assets		584,837			376,535
Prepaid lease		277,246			270,133
Other		277,589			304,424
Total other assets		1,913,771			1,736,074
Total Assets	$	11,780,292		$	10,191,800
LIABILITIES AND EQUITY
Current Liabilities:
Current portion of long-term debt and short-term borrowings	$	11,668		$	52,546
Accounts payable, principally trade		713,323			687,046
Derivative liabilities		1,752,840			885,346
Margin deposits		500			250
Other		490,293			426,839
Total current liabilities		2,968,624			2,052,027
Other Liabilities:
Derivative liabilities		665,652			473,516
Other		368,711			278,641
Long-term liabilities of discontinued operations		4,000			3,542
Total other liabilities		1,038,363			755,699
Long-term Debt		2,895,429			2,902,346
Commitments and Contingencies
Temporary Equity Stock-based Compensation		6,068			4,694
Stockholders’ Equity:
Preferred stock; par value $0.001 per share (125,000,000 shares authorized; none outstanding)		—			—
Common stock; par value $0.001 per share (2,000,000,000 shares authorized; 345,606,056 and 344,579,508 issued)		107			106
Additional paid-in capital		6,222,618			6,215,512
Accumulated deficit		(1,258,314	)		(1,635,526	)
Accumulated other comprehensive loss		(92,603	)		(103,058	)
Total stockholders’ equity		4,871,808			4,477,034
Total Liabilities and Equity	$	11,780,292		$	10,191,800

Reference is made to Reliant Energy, Inc.’s Annual Report
on Form 10-K for the year ended December 31, 2007.

Reliant Energy, Inc. and Subsidiaries
Consolidated Statements of Cash Flows
(Unaudited)

	Three Months Ended March 31,
	2008			2007
	(thousands of dollars)
Cash Flows from Operating Activities:
Net income	$	377,212		$	258,711
(Income) loss from discontinued operations		(6,235	)		1,652
Net income from continuing operations		370,977			260,363
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:
Depreciation and amortization		88,594			91,969
Deferred income taxes		214,681			147,422
Net changes in energy derivatives		(547,565	)		(508,770	)
Amortization of deferred financing costs		2,638			3,666
Western states litigation and similar settlements		34,000			—
Other, net		789			5,643
Changes in other assets and liabilities:
Accounts and notes receivable, net		78,660			45,811
Change in notes, receivables and payables, with affiliates, net		(6,152	)		—
Inventory		27,262			22,263
Margin deposits, net		9,204			86,379
Net derivative assets and liabilities		(17,533	)		(19,944	)
Western states litigation and similar settlements payments		—			(35,000	)
Accounts payable		28,743			24,385
Other current assets		(12,552	)		(4,741	)
Other assets		(2,234	)		(11,974	)
Taxes payable/receivable		36,449			4,790
Other current liabilities		(5,490	)		(82,471	)
Other liabilities		1,826			5,691
Net cash provided by continuing operations from operating activities		302,297			35,482
Net cash provided by (used in) discontinued operations from operating activities		1,757			(1,664	)
Net cash provided by operating activities		304,054			33,818
Cash Flows from Investing Activities:
Capital expenditures		(49,644	)		(42,167	)
Proceeds from sales of emission allowances		1,717			1
Purchases of emission allowances		(4,073	)		(990	)
Restricted cash		(1,687	)		14,142
Net cash used in investing activities		(53,687	)		(29,014	)
Cash Flows from Financing Activities:
Payments of long-term debt		(45,193	)		(3,466	)
Increase in short-term borrowings and revolving credit facilities, net		—			6,554
Payments of financing costs		—			(440	)
Payments of debt extinguishments		(423	)		—
Proceeds from issuances of stock		5,067			16,685
Net cash provided by (used in) financing activities		(40,549	)		19,333
Net Change in Cash and Cash Equivalents		209,818			24,137
Cash and Cash Equivalents at Beginning of Period		754,962			463,909
Cash and Cash Equivalents at End of Period	$	964,780		$	488,046

Free Cash Flow Reconciliation
(Unaudited)

	Three Months Ended March 31,
	2008			2007
	(millions of dollars)
Operating cash flow from continuing operations	$	302		$	35
Western states litigation and similar settlements payments		—			57
Change in margin deposits, net		(9	)		(86	)
Adjusted cash flow provided by continuing operations		293			6
Capital expenditures		(50	)		(42	)
Proceeds from sales of emission allowances		2			—
Purchases of emission allowances		(4	)		(1	)
Free cash flow provided by (used in) continuing operations	$	241		$	(37	)

Reference is made to Reliant Energy, Inc.’s Annual Report
on Form 10-K for the year ended December 31, 2007.

Reliant Energy, Inc. and Subsidiaries
Retail Energy Data
(Unaudited)

	Three Months Ended March 31,
	2008			2007			Change
	(in millions)
Mass gross margin	$	127		$	160		$	(33	)
Commercial and industrial gross margin		39			20			19
Market usage adjustments		(1	)		(4	)		3
Retail gross margin		165			176			(11	)
Operation and maintenance		(60	)		(61	)		1
Selling and marketing		(32	)		(30	)		(2	)
Bad debt expense		(7	)		(17	)		10
Retail contribution margin		66			68			(2	)
Unrealized gains on energy derivatives		528			616			(88	)
Total retail energy contribution margin, including unrealized gains/losses on energy derivatives (1)	$	594		$	684		$	(90	)

	Three Months Ended March 31,
	2008			2007
	(gigawatt hours)
Electricity Sales to End-Use Retail Customers:
Mass:
Residential:
Houston		2,381			2,690
Non-Houston		1,828			1,952
Small Business:
Houston		593			725
Non-Houston		303			333
Total Mass		5,105			5,700
Commercial and Industrial:
ERCOT (2)		8,635			7,857
Non-ERCOT		1,324			1,006
Total Commercial and Industrial		9,959			8,863
Market usage adjustments		(73	)		(86	)
Total		14,991			14,477

	Three Months Ended March 31,
	2008		2007
	(in thousands, metered locations)
Weighted Average Retail Customer Count:
Mass:
Residential:
Houston		1,003		1,083
Non-Houston		550		555
Small Business:
Houston		108		121
Non-Houston		38		33
Total Mass		1,699		1,792
Commercial and Industrial:
ERCOT (2)		90		83
Non-ERCOT		2		1
Total Commercial and Industrial		92		84
Total		1,791		1,876

	March 31,		December 31,
	2008		2007
	(in thousands, metered locations)
Retail Customers:
Mass:
Residential:
Houston		993		1,016
Non-Houston		546		555
Small Business:
Houston		108		109
Non-Houston		38		38
Total Mass		1,685		1,718
Commercial and Industrial:
ERCOT (2)		89		91
Non-ERCOT		2		2
Total Commercial and Industrial		91		93
Total		1,776		1,811

(1)	Retail energy segment profit and loss measure.
(2)	Includes customers of the Texas General Land Office for whom we provide services.

Reference is made to Reliant Energy, Inc.’s Annual Report
on Form 10-K for the year ended December 31, 2007.

Reliant Energy, Inc. and Subsidiaries
Wholesale Energy Data
(Unaudited)

	Three Months Ended March 31,
	2008						2007
	GWh			% Economic (1)			GWh			% Economic (1)
Economic Generation (2) (3):
PJM Coal		5,963.9			82	%		6,098.5			84	%
MISO Coal		2,048.4			74	%		2,181.5			81	%
PJM/MISO Gas		60.8			1	%		74.8			1	%
West		238.4			3	%		8.5			0	%
Other		—			0	%		1,336.9			65	%
Total		8,311.5			34	%		9,700.2			37	%
Commercial Capacity Factor (4):
PJM Coal		84.9	%					79.2	%
MISO Coal		75.3	%					61.3	%
PJM/MISO Gas		93.9	%					64.4	%
West		76.3	%					100.0	%
Other		0.0	%					90.8	%
Total		82.3	%					76.7	%
Generation (3):	GWh						GWh
PJM Coal		5,062.9						4,832.3
MISO Coal		1,542.3						1,336.3
PJM/MISO Gas		57.1						48.2
West		181.8						8.5
Other		—						1,214.1
Total		6,844.1						7,439.4
Open Energy Unit Margin ($/MWh) (5):
PJM Coal	$	33.78					$	30.83
MISO Coal		29.83						27.69
PJM/MISO Gas		87.57						20.75
West		NM	(6)					NM	(6)
Other		—						5.77
Weighted average total	$	31.71					$	25.54

	Three Months Ended March 31,
	2008			2007			Change
Open energy gross margin (7):	(in millions)
PJM Coal	$	171		$	149		$	22
MISO Coal		46			37			9
PJM/MISO Gas		5			1			4
West		(5	)		(4	)		(1	)
Other		—			7			(7	)
Total		217			190			27
Other margin (8):
PJM Coal		18			7			11
MISO Coal		2			2			—
PJM/MISO Gas		27			11			16
West		22			23			(1	)
Other		9			21			(12	)
Total		78			64			14
Open wholesale gross margin		295			254			41
Operation and maintenance		(152	)		(170	)		18
Bad debt expense		(1	)		1			(2	)
Open wholesale contribution margin		142			85			57
Historical and operational wholesale hedges
Power		(18	)		(56	)		38
Fuel		45			5			40
Tolling/Other		18			18			—
Total historical and operational wholesale hedges		45			(33	)		78
Unrealized gains (losses) on energy derivatives		30			(94	)		124
Total wholesale energy contribution margin, including historical and operational wholesale hedges and unrealized gains/losses on energy derivatives (9)	$	217		$	(42	)	$	259

(1)	Represents economic generation (hours) divided by maximum generation hours (maximum plant capacity multiplied by 8,760 hours).
(2)	Estimated generation at 100% plant availability based on an hourly analysis of when it is economical to generate based on the price of power, fuel, emission allowances and variable operating costs.
(3)	Excludes generation related to power purchase agreements, including tolling agreements.
(4)	Generation divided by economic generation.
(5)	Represents open energy gross margin divided by generation.
(6)	NM is not meaningful.
(7)	Open energy gross margin is calculated using the power sales prices received by the plants less delivered spot fuel prices.
	This figure excludes the effects of other margin, our historical and operational wholesale hedges and unrealized gains/losses on energy derivatives.
(8)	Other margin represents power purchase agreements, capacity payments, ancillary services revenues and selective commercial hedge strategies.
(9)	Wholesale energy segment profit and loss measure.

Reference is made to Reliant Energy, Inc.’s Annual Report
on Form 10-K for the year ended December 31, 2007.

Reliant Energy, Inc. and Subsidiaries
PJM Coal and MISO Coal (1)
(Unaudited)

	Summer/Winter
	Average				Q1 economic				Q1 commercial
	Capacity		Heat Rate		generation (GWh)				capacity factor						Q1 generation (GWh)
Unit Name	(MW)		(MMBtu/MWh)		2008		2007		2008			2007			2008		2007
Cheswick		580		10.0		841.0		918.1		90.7	%		92.2	%		762.7		846.3
Conemaugh (2)		280		9.4		599.7		595.8		93.8	%		92.5	%		562.8		550.9
Elrama		465		11.3		698.1		847.5		82.3	%		72.0	%		574.8		609.8
Keystone (2)		282		9.5		609.2		586.8		96.9	%		67.5	%		590.6		395.8
Portland		400		9.8		717.2		679.7		88.0	%		79.4	%		631.0		539.8
Seward		521		9.6		1,084.8		1,066.1		67.2	%		53.5	%		728.8		570.8
Shawville (2)		566		10.3		1,053.2		1,044.9		83.2	%		94.5	%		876.3		987.7
Titus		246		10.8		360.7		359.6		93.1	%		92.1	%		335.9		331.2
PJM Coal Total		3,340				5,963.9		6,098.5		84.9	%		79.2	%		5,062.9		4,832.3

	Summer/Winter
	Average				Q1 economic				Q1 commercial
	Capacity		Heat Rate		generation (GWh)				capacity factor						Q1 generation (GWh)
Unit Name	(MW)		(MMBtu/MWh)		2008		2007		2008			2007			2008		2007
Avon Lake		721		9.3		1,162.7		1,304.6		66.7	%		47.5	%		775.4		619.7
New Castle		328		10.6		495.5		507.7		89.5	%		77.8	%		443.7		394.9
Niles		216		10.5		390.2		369.2		82.8	%		87.1	%		323.2		321.7
MISO Coal Total		1,265				2,048.4		2,181.5		75.3	%		61.3	%		1,542.3		1,336.3

(1)	Unless otherwise indicated, the Company owns a 100% interest in each facility listed.
(2)	The Company leases a 100% interest in the Shawville facility, a 16.67% interest in the Keystone facility and a 16.45% interest in the Conemaugh facility under facility interest lease agreements, which expire in 2026, 2034 and 2034, respectively.

Reference is made to Reliant Energy, Inc.’s Annual Report
on Form 10-K for the year ended December 31, 2007.

Reliant Energy, Inc. and Subsidiaries
PJM/MISO Gas (1)
(Unaudited)

	Summer/Winter
	Average				Q1 economic				Q1 commercial
	Capacity		Heat Rate		generation (GWh)				capacity factor						Q1 generation (GWh)
Unit Name	(MW)		(MMBtu/MWh)		2008		2007		2008			2007			2008		2007
Aurora (2)		942		10.5		4.0		3.7		100.0	%		0.0	%		4.0		—
Blossburg		23		14.6		6.6		3.3		90.9	%		100.0	%		6.0		3.3
Brunot Island		315		10.4		—		0.8		0.0	%		100.0	%		—		0.8
Gilbert		614		11.0		4.2		15.8		100.0	%		82.9	%		4.2		13.1
Glen Gardner		184		14.6		0.3		0.2		100.0	%		100.0	%		0.3		0.2
Hamilton		23		14.8		0.2		—		100.0	%		0.0	%		0.2		—
Hunterstown		71		14.8		0.4		—		100.0	%		0.0	%		0.4		—
Hunterstown CCGT		833		7.0		7.7		44.2		100.0	%		55.7	%		7.7		24.6
Mountain		47		14.3		2.2		1.2		100.0	%		100.0	%		2.2		1.2
Orrtanna		23		14.4		0.3		0.4		100.0	%		100.0	%		0.3		0.4
Portland		185		11.2		5.4		3.2		100.0	%		100.0	%		5.4		3.2
Sayreville		264		13.8		25.6		0.6		88.3	%		0.0	%		22.6		—
Shawnee		23		14.0		—		0.1		0.0	%		100.0	%		—		0.1
Shawville 5-7 (3)		6		10.2		—		—		0.0	%		0.0	%		—		—
Titus		35		17.4		—		—		0.0	%		0.0	%		—		—
Tolna		47		14.2		0.4		0.8		100.0	%		100.0	%		0.4		0.8
Warren		252		12.8		—		—		0.0	%		0.0	%		—		—
Werner		68		13.8		3.5		0.5		97.1	%		100.0	%		3.4		0.5
Shelby		356		9.8		—		—		0.0	%		0.0	%		—		—
PJM/MISO Gas Total		4,311				60.8		74.8		93.9	%		64.4	%		57.1		48.2

(1)	Unless otherwise indicated, the Company owns a 100% interest in each facility listed.
(2)	Excludes generation during periods the unit operated under power purchase agreements.
(3)	The Company leases a 100% interest in the Shawville facility under a facility interest lease agreement, which expires in 2026.

Reference is made to Reliant Energy, Inc.’s Annual Report
on Form 10-K for the year ended December 31, 2007.

Reliant Energy, Inc. and Subsidiaries
West and Other (1)
(Unaudited)

West

	Summer/Winter
	Average				Q1 economic				Q1 commercial
	Capacity		Heat Rate		generation (GWh)				capacity factor						Q1 generation (GWh)
Unit Name	(MW)		(MMBtu/MWh)		2008		2007		2008			2007			2008		2007
Bighorn		598		7.2		—		—		0.0	%		0.0	%		—		—
Coolwater		622		10.1		94.1		—		80.2	%		0.0	%		75.5		—
Ellwood (2)		54		13.3		—		—		0.0	%		0.0	%		—		—
Etiwanda (2)		640		10.0		—		—		0.0	%		0.0	%		—		—
Mandalay (2)		560		10.9		60.6		8.5		100.0	%		100.0	%		60.6		8.5
Ormond Beach		1,516		9.6		83.7		—		54.6	%		0.0	%		45.7		—
West Total		3,990				238.4		8.5		76.3	%		100.0	%		181.8		8.5

Other

	Summer/Winter
	Average				Q1 economic				Q1 commercial
	Capacity		Heat Rate		generation (GWh)				capacity factor						Q1 generation (GWh)
Unit Name	(MW)		(MMBtu/MWh)		2008		2007		2008			2007			2008		2007
Channelview (3)		830		6.1		—		1,336.9		0.0	%		90.8	%		—		1,214.1
Choctaw		800		7.0		—		—		0.0	%		0.0	%		—		—
Indian River (2)		587		10.5		—		—		0.0	%		0.0	%		—		—
Osceola (2)		470		11.0		—		—		0.0	%		0.0	%		—		—
Other Total		2,687				—		1,336.9		0.0	%		90.8	%		—		1,214.1

(1)	Unless otherwise indicated, the Company owns a 100% interest in each facility listed.
(2)	Excludes generation during periods the unit operated under power purchase agreements.
(3)	Channelview was deconsolidated on August 20, 2007.

Reference is made to Reliant Energy, Inc.’s Annual Report
on Form 10-K for the year ended December 31, 2007.

Reliant Energy, Inc. and Subsidiaries
Capital Expenditures Forecast
(Unaudited)

	2008E		2009E		2010E
	(in millions)
Maintenance capital expenditures:
Retail energy	$	21	$	14	$	14
Wholesale energy		55		62		54
Other operations		4		7		6
		80		83		74
Environmental (1)		264		125		26
Capitalized interest		23		41		16
Total capital expenditures	$	367	$	249	$	116

(1) Based on existing laws and regulations; estimate represents the low end of the range.

Reference is made to Reliant Energy, Inc.’s Annual Report
on Form 10-K for the year ended December 31, 2007.

Reliant Energy, Inc. and Subsidiaries
Gross Debt
(Unaudited)

	March 31, 2008
	(in millions)
Debt:
Senior secured revolver	$	—
Senior secured notes		667
Senior unsecured notes		1,313
Convertible senior subordinated notes		2
Orion Power 12% notes (1)		425
PEDFA fixed-rate bonds for Seward plant		500
Channelview (2)		—
Retail working capital facility		—
Warrants		(1	)
Other (3)		1
Total GAAP debt		2,907
REMA operating leases (off-balance sheet)		461
Gross Debt (4)	$	3,368

(1)	Orion 12% notes include purchase accounting adjustments of $25 million.
(2)	Channelview was deconsolidated on August 20, 2007.
(3)	Other subsidiary debt.
(4)	Gross debt includes off-balance sheet REMA leases of $461 million.

Reference is made to Reliant Energy, Inc.’s Annual Report
on Form 10-K for the year ended December 31, 2007.

FOR ADDITIONAL INQUIRIES PLEASE CONTACT:

Dennis Barber
(713) 497-3042