Second Quarter 2004 Financial Results

1. Second Quarter 2004 Financial Results August 5, 2004

2. Safe 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 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, out 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 today’s date, August 5, 2004 and is based on assumptions believed to be reasonable as of this date. NRG disclaims any current intention to update such guidance. 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. Agenda • Operational Update • Q2 Financial Results and Outlook • Q&A

4. Financial Highlights • Second quarter performance • Adjusted EBITDA of $232 million • Reported net income of $83 million • YTD performance • Adjusted EBITDA of $489 million • Reported net income of $113 million • Free cash flow of $355 million

5. Operating Highlights • The Company exhibited continued strength in all phases of operating performance: • Safety 20% lower injury frequency rate than industry average with continuing improvement • Plant availability 96% in-market availability through May 2004 • Environmental Met and exceeded environmental standards for compliance with air, waste, and water regulations • Summer Maintenance at 12 plants preparedness completed on time and within budget

6. Actual or expected cash proceeds (Millions) Balance Sheet Debt (Millions) Name Location Status Calpine Cogen Various, U.S. $3 N/A Completed Q1 PERC Maine $18 $25 Completed Q2 Loy Yang A Australia $27 N/A Completed Q2 Cobee Bolivia $50 $24 Completed Q2 McClain Oklahoma N/A $157 Completed Q3 Batesville Mississippi $27 $292 Executed PSA Others (4)* Various $20 $45 Completed/PSA TOTAL $145 $543 * Others include Hsin Yu (Completed) and CALP (Executed PSA) Asset Sales - 2004 We continue to make progress rationalizing nonsupported assets for value:

7. MW Revenue New RMR 1,392 $5.10/kW-mo Middletown Montville Devon 11-14 Devon 7 RMR 107 $6.09/kW-mo (through May) $10.15/kW-mo (June-September) Norwalk/CT Jets 462 Market prices through PUSH bidding Connecticut Update 8

8. California Update • CPUC interim procurement order directed at California utilities • Aging power plant study to be released, expected to have a positive impact • Continued dialogue with California utilities regarding 2005 and beyond

9. Financial Results

10. Key Financial Highlights Operating revenues 574 1,174 Gross margin 349 683 Net income 83 113 EBITDA 282 529 Adjusted EBITDA 233 489 $ millions YTD Q2

11. 2nd Quarter 2004 Spark Spreads Dark Gas Dual Fuel/Oil Spread1,2 SpreadSpread North America: Gross Margin (000s) $71,220 $2,027 $7,351 Spark Spread $/MWh $25.03 $7.94 $43.61 1 Dark spread is the spread between energy prices and coal-fired generation costs 2 Does not include LaGen contracted output

12. NRG Generation by Fuel 2nd Quarter North American Generation by Fuel Type Versus Net North American Capacity Owned

13. EBITDA by Operating Segment - YTD ($ millions)Q2 Q2 Q2 Adj Q1 Adj YTD Adj EBITDAAdj EBITDA EBITDAEBITDA Northeast 79.2 .3 79.5 114.8 194.3 South Central 30.3 1.6 31.9 29.7 61.6 West Coast 54.9 -- 54.9 33.4 88.3 Other NA 23.2 (2.6) 20.6 12.3 32.9 International 48.2(12.9)35.2 54.2 89.4 Alt. Energy & Services 54.4 (38.9) 15.5 17.0 32.5 Corp – Unallocated (8.6) 3.5 (5.1) (4.5) (9.6) Total281.6 (49.0) 232.6 256.9 489.4

14. Cash Flow YTD

15. Liquidity $ millions 06/30/0403/31/04 Unrestricted Cash: Domestic 676 665 International 145 169 Restricted Cash: Domestic 97 90 International 55 52 Total Cash973 976 Letter of Credit Availability 118 137 Revolver Availability 250 250 Total Current Liquidity$1,341 $1,363

16. 2004 EBITDA and FCF Outlook

17. 2004 Forecast Sensitivity Analysis Results in the following change to2004 pre-tax income: Factor Increased by: Factors $1.00/mmbtu $35.7 million Natural Gas Coal $1.00/ton -- Oil $1.00/bbl -- Interest rates 100 bps ($4.7) million Sensitivities are for the remaining 6 months of 2004, assuming current hedged positions

18. Enterprise Value How we look at equity value: 1) Includes expected asset sales

19. Conclusion • Continued focus on operating performance • Continued focus on rationalizing our businesses • Continued focus on maintaining strong leverage ratios

21. Supplemental information

22. Adjusted Net Income Reconciliation NRG ENERGY, INC. AND SUBSIDIARIES Reconciliation of NonGAAP Financial Measures Adjusted Net Income Reconciliation

23. Adjusted EBITDA Reconciliation NRG ENERGY, INC. AND SUBSIDIARIES Reconciliation of NonGAAP Financial Measures Adjusted EBITDA Reconciliation

24. 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.