NRG Energy: Past, Present and FutureDavid Crane, President and Chief Executive Officer

Robert Flexon, EVP and Chief Financial Officer

NRG Energy: Past, Present and FutureDavid Crane, President and Chief Executive Officer

Robert Flexon, EVP and Chief Financial Officer

Deutsche Bank Global High-Yield ConferenceOctober 6, 2004Scottsdale, AZ

Deutsche Bank Global High-Yield ConferenceOctober 6, 2004Scottsdale, AZ

2

Safe Harbor StatementSafe Harbor Statement

This Investor Presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are subject to certain risks, uncertainties and assumptions and typically can be identified by the use of words such as “expect,” “estimate,” “anticipate,” “forecast,” “plan,” “believe” and similar terms. Such forward-looking statements include, but are not limited to, expected earnings, future growth and financial performance, the sufficiency in the disputed claims reserve, the successful closing of announced transactions, the successful closing of the coal transportation agreement, the successful implementation of our acquisition and repowering strategy, the outcome of hearings on our RMR agreements and cost tracker for scheduled expenses. Although NRG believes that its expectations are reasonable, it can give no assurance that these expectations will prove to have been correct, and actual results may vary materially. Factors that could cause actual results to differ materially from those contemplated above include, among others, general economic conditions, hazards customary in the power industry, competition in wholesale power markets, the volatility of energy and fuel prices, failure of customers to perform under contracts, changes in the wholesale power markets and related government regulation, the condition of capital markets generally, our ability to access capital markets, unanticipated outages at generation facilities, our ability to convert facilities to western coal, our substantial indebtedness and the possibility that we may incur additional indebtedness, adverse results in current and future litigation, delays in or failure to meet closing conditions in announced transactions, failure to identify or successfully implement acquisitions and repowerings, the amount of proceeds from asset sales and adverse rulings on our RMR agreements and cost tracker for scheduled expenses, resulting in us refunding certain payments received to date.

NRG undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The adjusted EBITDA guidance is an estimate as of August 5, 2004 and is based on assumptions believed to be reasonable as of that date. NRG disclaims any current intention to update such guidance from August 5, 2004. The foregoing review of factors that could cause NRG’s actual results to differ materially from those contemplated in the forward-looking statements included in this Investor Presentation should be considered in connection with information regarding risks and uncertainties that may affect NRG's future results included in NRG's filings with the Securities and Exchange Commission at www.sec.gov.

3

AgendaAgenda

NRG in the Past

NRG in the Present

NRG in the Future

NRG in the Past

NRG in the Present

NRG in the Future

4

NRG – A Merchant GeneratorNRG – A Merchant Generator

We are a nonutility electric generation company We are a nonutility electric generation company providing value through competitive markets.providing value through competitive markets.

5

NRG HistoryNRG History

The “old” NRG committed the same blunders as the rest of the wholesale power industry:

Overpaid for acquisitions Overleveraged balance sheet Overextended via turbine orders Over hyped market prospects

The “old” NRG committed the same blunders as the rest of the wholesale power industry:

Overpaid for acquisitions Overleveraged balance sheet Overextended via turbine orders Over hyped market prospects

Xcel subsidiary, NRG completes series of

domestic and international acquisitions leading to

partial IPO in June 2000.

Confidence in energy industry

falters post-Enron. Energy prices fall.

Xcel Energy completes tender offer to acquire

NRG’s outstanding stock

Unable to serve debt accumulated through

acquisitions, NRG files under Chapter

11.

NRG emerges

from Chapter 11

$2.7 bn Exit

Financing

New NRGNew NRGOld NRGOld NRG

Emergence from Chapter 11 marks the birth of the “new” NRG, a very different company:

New balance sheet New strategy New management No legacy issues

Emergence from Chapter 11 marks the birth of the “new” NRG, a very different company:

New balance sheet New strategy New management No legacy issues

1991-2001 2002 2003 2004 Year to Date

Relisted on NYSE

New CFO ’04 Adj.

EBITDA Guidance $850 mn

With Kendall, Total Asset

Sales: $1 bn+

6

New NRG – New StrategyNew NRG – New Strategy

South CentralSouth Central

WestWest

NortheastNortheast

Gas 980 MW

40% Coal 1,489 MW

60%

Gas 693 MW

56%

Dual Fuel 628 MW

44%

Regional Regional concentrations concentrations with fuel and with fuel and dispatch-level dispatch-level

diversitydiversityOur Competitive AdvantagesSizeable asset base in the right marketsLong-term contracts / relationships with retail cooperatives in South CentralLocational advantageHealthy balance sheetFlexibility to act in best interest of stakeholders

Our Competitive AdvantagesSizeable asset base in the right marketsLong-term contracts / relationships with retail cooperatives in South CentralLocational advantageHealthy balance sheetFlexibility to act in best interest of stakeholders

* Other North America includes 2,934 MW outside of core regions

GasGas842 MW 842 MW

11%11%

Coal 2,407 MW

30%

Dual Fuel 2,284 MW

29%

Oil2,350 MW

30%

Leverage off the strength of the asset baseLeverage off the strength of the asset base

7

The New NRGThe New NRG

New CEO and CFO

Best practices approach to Corporate Governance

– Non-executive Chairman

– Board of Directors are independent*

– All Directors selected by NRG Creditors Committee

New CEO and CFO

Best practices approach to Corporate Governance

– Non-executive Chairman

– Board of Directors are independent*

– All Directors selected by NRG Creditors Committee

California settled

CL&P contract expired

McClain sold

Turbine purchase obligations resolved

California settled

CL&P contract expired

McClain sold

Turbine purchase obligations resolved

New Management No Legacy Issues

*Excluding CEO

8

New NRG – Post-emergence focusNew NRG – Post-emergence focus

Objectives met– Noncore assets continue

to be sold– Strong liquidity

maintained– Restructured corporate

organization– 2004 financial guidance

provided– Conversion of New York

coal-fired plants to PRB and initial steps in Delaware

Objectives met– Noncore assets continue

to be sold– Strong liquidity

maintained– Restructured corporate

organization– 2004 financial guidance

provided– Conversion of New York

coal-fired plants to PRB and initial steps in Delaware

Focus remains– Building regional

businesses with customer focus

– Increasing operational efficiencies in maintenance and fuel procurement

– Solving for California– Allocating capital among

shareholders, debt service and growth

– Strengthening trading and marketing platform

Focus remains– Building regional

businesses with customer focus

– Increasing operational efficiencies in maintenance and fuel procurement

– Solving for California– Allocating capital among

shareholders, debt service and growth

– Strengthening trading and marketing platform

New NRG: Significant progress since bankruptcy, but plenty of work still remains

9

New NRG - Early Returns are GoodNew NRG - Early Returns are Good

Operating revenues 574 1,174

Gross margin 349683

Net income 83113

EBITDA 282529

Adjusted EBITDA* 233489

Free Cash Flow 37355

Operating revenues 574 1,174

Gross margin 349683

Net income 83113

EBITDA 282529

Adjusted EBITDA* 233489

Free Cash Flow 37355

$ millions$ millions YTDYTDQ2Q2

While we plan and organize for the future, the Company has stayed focused on

delivering the present:

*Full-year guidance for 2004 Adjusted EBITDA is $850 million*Full-year guidance for 2004 Adjusted EBITDA is $850 million

10

Enterprise ValueEnterprise Value

As of 6/30/04 As of 6/30/04 $ in millions$ in millions TotalTotal Nonsupported Nonsupported 11 SupportedSupported

Consolidated DebtConsolidated Debt $ 4,037$ 4,037 $ 1,003$ 1,003 $ 3,034$ 3,034

Unrestricted CashUnrestricted Cash 821821 3131 790790

Restricted CashRestricted Cash 152152 6363 8989

Total CashTotal Cash 973973 9494 879879

Net DebtNet Debt $ 3,064$ 3,064 $ 909$ 909 $ 2,155$ 2,155

Equity ValueEquity Value $ 2,700$ 2,700 -- $ 2,700$ 2,700

Enterprise ValueEnterprise Value $ 5,764$ 5,764 $ 909$ 909 $ 4,855$ 4,855

Forecasted Adjusted EBITDA Forecasted Adjusted EBITDA $ 850 $ 100 $ 850 $ 100

$ 750 $ 750

TEV / FY Adjusted EBITDATEV / FY Adjusted EBITDA 6.47x6.47x

Net Debt / FY Adj. EBITDANet Debt / FY Adj. EBITDA 2.87x2.87x

1) Includes expected asset sales1) Includes expected asset sales

How we look at equity value:How we look at equity value:

11

Portfolio ManagementPortfolio Management Strengthening the Balance SheetStrengthening the Balance Sheet

A 2004 PriorityA 2004 Priority

Targeted Unproductive CapitalTargeted Unproductive CapitalInvested CapitalInvested Capital Net DebtNet Debt

Asset Sale

Debt

EBITDA1

Leverage Ratio

McClain $156.5m $10m 15.65x

Batesville $289.1m $39m 7.41x

Kendall $447.4m $43m 10.40x

Subtotal $893.0m $92m

9.71x

Other $ 94.2m N/A2

N/A

$0

$1,000

$2,000

$3,000

$4,000

12/ 03A 12/ 04E$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

12/ 03A 12/ 04E

18% Decline in Capital

34% Decline in Net Debt

1Full-year 2004 estimate 2Break-even at time of sale

New NRG – Balance Sheet ManagementNew NRG – Balance Sheet Management

Asset sales announced year-to-date also generated close to $150mn of cash proceeds

Total liquidity now exceeds $1.6 billion Corporate maturities due over the next

five years are less than $50 million in aggregate

Asset sales announced year-to-date also generated close to $150mn of cash proceeds

Total liquidity now exceeds $1.6 billion Corporate maturities due over the next

five years are less than $50 million in aggregate

12

NRG PerformanceNRG Performance

40.00%

60.00%

80.00%

100.00%

120.00%

140.00%

160.00%

1/2/

2004

1/16

/200

4

1/30

/200

4

2/13

/200

4

2/27

/200

4

3/12

/200

4

3/26

/200

4

4/9/

2004

4/23

/200

4

5/7/

2004

5/21

/200

4

6/4/

2004

6/18

/200

4

7/2/

2004

7/16

/200

4

7/30

/200

4

8/13

/200

4

8/27

/200

4

9/10

/200

4

9/24

/200

4

NRG %

DYN %

RRI %

AES %

CPN %

NRG versus Peer Group

13

NRG PerformanceNRG Performance

78.000

80.000

82.000

84.000

86.000

88.000

90.000

92.000

94.000

96.000

98.000

100.000

102.000

104.000

106.000

108.000

110.000

112.000

114.000

116.000

118.000

12/1

8/200

3

1/1/

2004

1/15

/200

4

1/29

/200

4

2/12

/200

4

2/26

/200

4

3/11

/200

4

3/25

/200

4

4/8/

2004

4/22

/200

4

5/6/

2004

5/20

/200

4

6/3/

2004

6/17

/200

4

7/1/

2004

7/15

/200

4

7/29

/200

4

8/12

/200

4

8/26

/200

4

9/9/

2004

(Pri

ce,

% o

f Pa

r)

NRG 8% due '13 ($1,725MM)

Dynegy 10.125% due '13 ($900MM)

Reliant Res. 9.5% due '13 ($550MM)

AES 8.75% due '13 ($1,200MM)

Calpine 8.75% due '13 ($900MM)

CSFB High Yield Index78.000

80.000

82.000

84.000

86.000

88.000

90.000

92.000

94.000

96.000

98.000

100.000

102.000

104.000

106.000

108.000

110.000

112.000

114.000

116.000

118.000

12/1

8/200

3

1/1/

2004

1/15

/200

4

1/29

/200

4

2/12

/200

4

2/26

/200

4

3/11

/200

4

3/25

/200

4

4/8/

2004

4/22

/200

4

5/6/

2004

5/20

/200

4

6/3/

2004

6/17

/200

4

7/1/

2004

7/15

/200

4

7/29

/200

4

8/12

/200

4

8/26

/200

4

9/9/

2004

(Pri

ce,

% o

f Pa

r)

NRG 8% due '13 ($1,725MM)

Dynegy 10.125% due '13 ($900MM)

Reliant Res. 9.5% due '13 ($550MM)

AES 8.75% due '13 ($1,200MM)

Calpine 8.75% due '13 ($900MM)

CSFB High Yield Index

Secondary Market Performance: NRG versus Peer Group

14

NRG: Working Towards a Super-Regional Business ModelNRG: Working Towards a Super-Regional Business Model

We are transitioning NRG from a loose collection of power plants into three coherent regional businesses, each focused on developing as a foundation to their businesses, commercial relationships with the in-market retail load providers

We are transitioning NRG from a loose collection of power plants into three coherent regional businesses, each focused on developing as a foundation to their businesses, commercial relationships with the in-market retail load providers

Locational advantageLocational advantageBase load coal /Base load coal /long term contractslong term contracts

Base load coalBase load coalPrincipal StrengthPrincipal Strength

2% (4% gross)2% (4% gross)5%5%4%4%Market ShareMarket Share

1,321 (2,692 gross)1,321 (2,692 gross)2,4692,4697,8847,884Our MWsOur MWs

Lack of capacityLack of capacitymarketmarket

Shortfall of our Shortfall of our generation relative generation relative to load we serveto load we serve

Reduction inReduction intransmission transmission constraintsconstraints

PrincipalPrincipalVulnerabilityVulnerability

60,00060,00050,00050,000180,000180,000Total MWsTotal MWs

WestWestSouth CentralSouth CentralNortheastNortheastRegionRegion

15

NRG Strategy – Beyond Back to BasicsNRG Strategy – Beyond Back to Basics

WestCoast

SouthCentral

NortheastExtracting maximum value from existing

fleet

Reinvestment in repowering of key

assets

Selective acquisitions to fill out regional lineups

Our Objective: to be a multi-regional, multi-fuel, scale generator with assets across the merit order in each of our core regional businesses and with the capability to procure, transport and trade all of the commodities involved in our business.

17

Supplemental informationSupplemental information

18

Adjusted EBITDA ReconciliationAdjusted EBITDA Reconciliation

NRG ENERGY, INC. AND SUBSIDIARIES

Reconciliation of NonGAAP Financial Measures

Adjusted EBITDA Reconciliation

Reorganized NRG Predessor NRG Reorganized NRG YTD

(Dollars in thousands, except per share amounts) 6/ 30/ 04 6/ 30/ 03 3/ 31/ 04 6/ 30/ 04

Net Income / (Loss) $83,024 ($608,401) $30,235 $113,259

Plus:

Income Tax Expense 36,322 4,305 14,280 50,602

Interest expense, excluding amortization of

debt issuance costs and debt discount/

(premium) noted below 60,210 88,168 71,989 132,199

Depreciation and amortization 53,168 63,768 55,006 108,174

WCP CDWR contract amortization (included in

equity in earnings of unconsolidated affiliates) 30,638 - 30,968 61,606

Amortization of power contracts 8,614 - 16,965 25,579

Amortization of emission credits 3,648 - 6,270 9,918

Amortization of debt issuance costs

and debt discount/ (premium) 6,015 3,919 21,157 27,172

EBITDA $281,639 ($448,241) $246,870 $528,509

Plus:

(Income) Loss from Discontinued Operations,

net of Income taxes (2,257) 97,285 865 (1,392)

(Gain) Loss from Discontinued Operations (11,898) 2,066 - (11,898)

Corporate relocation charges 5,645 - 1,116 6,761

Reorganization items (2,661) 6,334 6,250 3,589

Restructuring and impairment charges 1,676 269,631 - 1,676

FERC-authorized settlement with Connecticut Light

and Power (38,357) - - (38,357)

Write downs and (gains)/ losses on sales of equity

method investments (1,205) 132,436 1,738 533

Adjusted EBITDA $232,582 $59,511 $256,839 $489,421

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2004 EBITDA and FCF Outlook2004 EBITDA and FCF Outlook

$ in millions$ in millions ReportedReported

OutlookOutlook

AdjustmentAdjustment AdjustedAdjusted

OutlookOutlook

EBITDAEBITDA 837837 1313 850850

Interest PaymentsInterest Payments (278)(278) 1515 (263)(263)

Income TaxIncome Tax (36)(36) ---- (36)(36)

Other Cash Used by OperationsOther Cash Used by Operations (50)(50) ---- (50)(50)

FFOFFO 473473 2828 501501

Working Capital ChangesWorking Capital Changes (60)(60) ---- (60)(60)

Xcel Settlement, netXcel Settlement, net 100100 (100)(100) ----

CFOCFO 513513 (72)(72) 441441

Asset DivestituresAsset Divestitures 145145 (145)(145) ----

CapExCapEx (130)(130) ---- (130)(130)

Other Cash used by InvestingOther Cash used by Investing (7)(7) ---- (7)(7)

FCFFCF 521521 (217)(217) 304304

20

GAAP Reconciliation (cont.)GAAP Reconciliation (cont.)

EBITDA, Adjusted EBITDA and adjusted net income are non-GAAP financial measures. These measurements are not recognized in accordance with GAAP and should not be viewed as an alternative to GAAP measures of performance. The presentation of Adjusted EBITDA and adjusted net income should not be construed as an inference that NRG’s future results will be unaffected by unusual or nonrecurring items.EBITDA represents net income before interest, taxes, depreciation and amortization. EBITDA is presented because NRG considers it an important supplemental measure of its performance and believe debt-holders frequently use EBITDA to analyze operating performance and debt service capacity. EBITDA has limitations as an analytical tool, and you should not consider it in isolation, or as a substitute for analysis of our operating results as reported under GAAP. Some of these limitations are:

• EBITDA does not reflect cash expenditures, or future requirements for capital expenditures, or contractual commitments;

• EBITDA does not reflect changes in, or cash requirements for, working capital needs;• EBITDA does not reflect the significant interest expense, or the cash requirements necessary to service

interest or principal payments, on debts;• Although depreciation and amortization are noncash charges, the assets being depreciated and amortized will

often have to be replaced in the future, and EBITDA does not reflect any cash requirements for such replacements; and

• Other companies in this industry may calculate EBITDA differently than NRG does, limiting its usefulness as a comparative measure.

Because of these limitations, EBITDA should not be considered as a measure of discretionary cash available to use to invest in the growth of NRG’s business. NRG compensates for these limitations by relying primarily on our GAAP results and using EBITDA and Adjusted EBITDA only supplementally. See the statements of cash flow included in the financial statements that are a part of this press release.Adjusted EBITDA is presented as a further supplemental measure of operating performance. Adjusted EBITDA represents EBITDA adjusted for reorganization, restructuring, impairment and corporate relocation charges, discontinued operations, and write downs and losses on the sales of equity method investments; factors which we do not consider indicative of future operating performance. The reader is encouraged to evaluate each adjustment and the reasons NRG considers it appropriate for supplemental analysis. As an analytical tool, Adjusted EBITDA is subject to all of the limitations applicable to EBITDA. In addition, in evaluating Adjusted EBITDA, the reader should be aware that in the future NRG may incur expenses similar to the adjustments in this presentation.