Reliant Energy Reports First Quarter 2008 Results

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. 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. 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. 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. 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   (in millions) Open energy gross margin (7): 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 Capacity Heat Rate Q1 economic generation (GWh) Q1 commercial 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 Capacity Heat Rate Q1 economic generation (GWh) Q1 commercial 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 Capacity Heat Rate Q1 economic generation (GWh) Q1 commercial 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 Capacity Heat Rate Q1 economic generation (GWh) Q1 commercial 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 Capacity Heat Rate Q1 economic generation (GWh) Q1 commercial 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