Exhibit 99.1
FOR FURTHER INFORMATION: |
| Dennis Barber |
| (713) 497-3042 |
|
| Kevin Kremke |
| (713) 497-5468 |
|
|
|
|
|
FOR IMMEDIATE RELEASE: |
| February 21, 2005 |
|
|
Reliant Energy Reports Fourth Quarter Results
HOUSTON – Reliant Energy, Inc. reported a loss from continuing operations before income taxes of $255 million for the fourth quarter of 2005, compared to $324 million for the same period of 2004. The reported numbers include net losses from unrealized energy derivatives of $86 million and $138 million, respectively for 2005 and 2004. Loss from continuing operations before income taxes was $668 million for the twelve months ended December 31, 2005, compared to $392 million for the same period of 2004. The reported numbers include net losses from unrealized energy derivatives of $177 million and $224 million, respectively for 2005 and 2004.
“Since our third-quarter call, we have undertaken an in-depth review of our strategy and have identified several elements that are critical to unlocking the value of the company,” said Joel Staff, chairman and chief executive officer. “Our priorities for 2006 will include completing the transition to a fully competitive retail market in Texas, converting to an open model in our wholesale business, improving the commercial capacity factor of our generating plants and managing our collateral exposure to reduce postings by $1 billion by year end. These measures, combined with recent commodity prices, are expected to yield more than $1 billion in annual open EBITDA.”
Open EBITDA (earnings before interest, income taxes, depreciation and amortization) was $200 million for the fourth quarter of 2005, compared to $50 million for the fourth quarter of 2004. The company believes that open EBITDA provides a meaningful representation of the earnings power of the company as it excludes the impact of historical wholesale hedging activity, gains on the sales of emission allowances, gains or losses on the sales of assets and gains or losses on the sales of equity method investments. The increase was primarily related to improvements in wholesale unit margins and increased economic hours, partially offset by lower retail gross margin and a reduction in the commercial capacity factor for the wholesale generation assets.
Adjusted EBITDA was $47 million for the fourth quarter of 2005, compared to $95 million for the fourth quarter of 2004. The reduction was primarily related to lower gross margin, partially offset by net gains from the sales of emission allowances and lower expenses. Adjusted EBITDA for the year ended December 31, 2005 was $697 million compared to $719 million for the same period of 2004. The reduction was primarily related to lower retail gross margin, partially offset by net gains from the sales of emission allowances and lower expenses.
During the year ended December 31, 2005, the company reported a $1,110 million use of cash in continuing operations from operating activities, compared to cash provided in continuing operations of $5 million in 2004. The reported numbers include increases in cash margin deposits totaling $1,214 million in 2005 and $451 million for 2004. Free cash flow from continuing operations for the year ended December 31, 2005 was $22 million, compared to $274 million in 2004. The decrease in free cash flow was primarily related to lower gross margin and changes in working capital.
1
Open EBITDA
Outlook Reconciliation
($ millions) |
| 2006 |
| 2007 |
| 2008 |
| |||
Income (loss) from continuing operations before income taxes (a) |
| $ | (62 | ) | $ | 136 |
| $ | 186 |
|
Delivery of product underlying the unrealized (gains) losses on energy derivatives |
| (126 | ) | (27 | ) | 1 |
| |||
Depreciation and amortization |
| 378 |
| 466 |
| 579 |
| |||
Interest expense, net |
| 380 |
| 317 |
| 283 |
| |||
Adjusted EBITDA (a) |
| $ | 570 |
| $ | 892 |
| $ | 1,049 |
|
Historical wholesale hedges (b) |
| 643 |
| 250 |
| 108 |
| |||
Gains on sales of emission allowances (a),(c) |
| (122 | ) | — |
| — |
| |||
Open EBITDA (a) |
| $ | 1,091 |
| $ | 1,142 |
| $ | 1,157 |
|
(a) Certain factors that could affect GAAP financial measures are not accessible on a forward-looking basis, but could be material to future reported earnings.
(b) Historical wholesale hedges excluded from Open EBITDA are primarily related to closed and remaining power hedges, fuel hedges, long-term tolling purchases and gas transportation and are calculated using forward commodity prices as of December 29, 2005.
(c) Sales as of February 2, 2006.
Adjusted EBITDA Reconciliation
|
| Three Months Ended |
| Twelve Months Ended |
| ||||||||
($ millions) |
| 2005 |
| 2004 |
| 2005 |
| 2004 |
| ||||
Loss from continuing operations before income taxes |
| $ | (255 | ) | $ | (324 | ) | $ | (668 | ) | $ | (392 | ) |
Depreciation and amortization |
| 110 |
| 104 |
| 446 |
| 453 |
| ||||
Interest expense, net |
| 98 |
| 144 |
| 376 |
| 383 |
| ||||
EBITDA |
| (47 | ) | (76 | ) | 154 |
| 444 |
| ||||
Changes in California-related receivables and reserves |
| — |
| 33 |
| (1 | ) | 11 |
| ||||
Western states and Cornerstone settlements |
| 8 |
| — |
| 359 |
| — |
| ||||
Unrealized losses on energy derivatives (a) |
| 86 |
| 138 |
| 177 |
| 224 |
| ||||
Settlement of shareholder class action lawsuits |
| — |
| — |
| 8 |
| — |
| ||||
October 2003 FERC settlement |
| — |
| — |
| — |
| 12 |
| ||||
Gain on sale of counterparty claim |
| — |
| — |
| — |
| (30 | ) | ||||
Gain on sale of ICE |
| — |
| (9 | ) | — |
| (9 | ) | ||||
Gains recorded prior to 2003 that were realized/collected (EITF No. 02-03) |
| — |
| 5 |
| — |
| 21 |
| ||||
2004 accrual for payment to CenterPoint Energy, Inc. |
| — |
| — |
| — |
| 2 |
| ||||
2004 severance and restructuring costs |
| — |
| 4 |
| — |
| 44 |
| ||||
Adjusted EBITDA |
| $ | 47 |
| $ | 95 |
| $ | 697 |
| $ | 719 |
|
(a) Reliant Energy’s hedging activities include buying power supply for its retail business, selling the output of and buying fuel for its power plants, as well as winding down legacy trading positions and optimization of gas transport and storage positions. Some of these hedging transactions use mark-to-market accounting, which requires the company to record gains/losses related to future periods based on current changes in forward commodity prices. The company refers 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 related underlying transactions being hedged receive accrual accounting treatment, resulting in a mismatch of accounting treatments.
2
Free Cash Flow Reconciliation
|
| Twelve Months Ended |
| ||||
($ millions) |
| 2005 |
| 2004 |
| ||
Operating cash flow from continuing operations |
| $ | (1,110 | ) | $ | 5 |
|
|
|
|
|
|
| ||
Accounts receivable factoring |
| — |
| (232 | ) | ||
Payment to CenterPoint Energy |
| — |
| 177 |
| ||
Change in margin deposits (a) |
| 1,214 |
| 451 |
| ||
2004 cash severance costs |
| — |
| 33 |
| ||
Capital expenditures |
| (82 | ) | (160 | ) | ||
Free cash flow from continuing operations |
| $ | 22 |
| $ | 274 |
|
(a) Reliant Energy posts collateral to support most 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. Reliant Energy commonly uses 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. 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.
NON-GAAP FINANCIAL MEASURES
This press release and the attached financial tables include the following non-GAAP financial measures:
Contribution margin
Adjusted contribution margin
Adjusted gross margin
Free cash flow
Open wholesale gross margin
EBITDA
Adjusted EBITDA
Open EBITDA
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 filed along with this press release.
3
WEBCAST OF EARNINGS CONFERENCE CALL
Reliant Energy has scheduled its fourth-quarter 2005 earnings conference call for Tuesday, February 21, 2006, at 10:00 a.m., Central time. Interested parties may listen to a live audio broadcast of the conference call at www.reliant.com/corporate. 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 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 1.9 million retail electricity customers, including residential and small business customers and large commercial, industrial, governmental and institutional customers. Reliant also serves commercial, industrial, governmental and institutional customers in the PJM (Pennsylvania, New Jersey and Maryland) market.
The company is one of the largest independent power producers in the nation with approximately 16,000 megawatts of power generation capacity from continuing operations across the United States. These strategically located generating assets utilize natural gas, fuel oil and coal. For more information, visit www.reliant.com/corporate.
This news release contains “forward-looking statements.” Forward-looking statements are statements that contain projections, estimates or assumptions about our revenues, income and other financial items, our plans for the future, future economic performance, transactions and dispositions and financings related thereto. Forward-looking statements relate to future events and anticipated revenues, earnings, business strategies, competitive position or other aspects of our operations or operating results. 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.
We have based our forward-looking statements on management’s beliefs and assumptions based on information available to management at the time the statements are made. Actual results may differ materially from those expressed or implied by forward-looking statements as a result of many factors or events, including legislative and regulatory 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, changes in our business plan and other factors we discuss in our filings 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 in this release is subject to adjustment resulting from further review and the obtaining of additional information that impacts the consolidated financial statements.
###
4
Reliant Energy, Inc. and Subsidiaries
Consolidated Statements of Operations
(Thousands of Dollars, except per share amounts)
(Unaudited)
|
| Three Months Ended December 31, |
| Tweleve Months Ended December 31, |
| ||||||||
|
| 2005 |
| 2004 |
| 2005 |
| 2004 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Revenues: |
|
|
|
|
|
|
|
|
| ||||
Revenues (including $123,768, $(16,455), $(203,081) and $(32,007) unrealized gains (losses)) |
| $ | 2,615,265 |
| $ | 1,953,826 |
| $ | 9,726,995 |
| $ | 8,098,222 |
|
|
|
|
|
|
|
|
|
|
| ||||
Expenses: |
|
|
|
|
|
|
|
|
| ||||
Purchased power, fuel and cost of gas sold (including $(209,637), $(121,550), $25,846 and $(192,395) unrealized gains (losses)) |
| 2,477,475 |
| 1,772,244 |
| 8,354,921 |
| 6,564,137 |
| ||||
Operation and maintenance |
| 180,849 |
| 194,900 |
| 736,954 |
| 782,462 |
| ||||
Selling and marketing |
| 28,930 |
| 20,041 |
| 95,256 |
| 81,741 |
| ||||
Bad debt expense |
| 14,181 |
| 8,703 |
| 58,008 |
| 45,707 |
| ||||
Total |
| 2,701,435 |
| 1,995,888 |
| 9,245,139 |
| 7,474,047 |
| ||||
Contribution Margin |
| (86,170 | ) | (42,062 | ) | 481,856 |
| 624,175 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Other general and administrative |
| 7,393 |
| 47,049 |
| 139,222 |
| 198,723 |
| ||||
Western states and Cornerstone settlements |
| 8,631 |
| — |
| 359,436 |
| — |
| ||||
Loss on sales of receivables |
| — |
| — |
| — |
| 33,741 |
| ||||
Accrual for payment to CenterPoint Energy, Inc. |
| — |
| — |
| — |
| 1,600 |
| ||||
Gain on sale of counterparty claim |
| — |
| — |
| — |
| (30,000 | ) | ||||
Gains on sales of assets and emission allowances, net |
| (52,322 | ) | (4,954 | ) | (168,114 | ) | (19,834 | ) | ||||
Depreciation and amortization |
| 109,341 |
| 104,512 |
| 445,871 |
| 453,042 |
| ||||
Total |
| 73,043 |
| 146,607 |
| 776,415 |
| 637,272 |
| ||||
Operating Loss |
| (159,213 | ) | (188,669 | ) | (294,559 | ) | (13,097 | ) | ||||
|
|
|
|
|
|
|
|
|
| ||||
Other Income (Expense): |
|
|
|
|
|
|
|
|
| ||||
Income (loss) of equity investments, net |
| 2,273 |
| (234 | ) | 25,458 |
| (9,478 | ) | ||||
Other, net |
| 146 |
| 9,021 |
| (22,672 | ) | 13,455 |
| ||||
Loss Before Interest and Taxes |
| (156,794 | ) | (179,882 | ) | (291,773 | ) | (9,120 | ) | ||||
|
|
|
|
|
|
|
|
|
| ||||
Interest expense |
| (105,601 | ) | (149,970 | ) | (399,281 | ) | (417,514 | ) | ||||
Interest income |
| 7,947 |
| 5,952 |
| 23,227 |
| 34,960 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Loss from Continuing Operations Before Income Taxes |
| (254,448 | ) | (323,900 | ) | (667,827 | ) | (391,674 | ) | ||||
Income tax benefit |
| (47,851 | ) | (110,914 | ) | (203,080 | ) | (115,214 | ) | ||||
|
|
|
|
|
|
|
|
|
| ||||
Loss from Continuing Operations |
| (206,597 | ) | (212,986 | ) | (464,747 | ) | (276,460 | ) | ||||
Income (loss) from discontinued operations |
| 49,145 |
| (51,372 | ) | 110,799 |
| 239,800 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Loss Before Cumulative Effect of Accounting Changes |
| (157,452 | ) | (264,358 | ) | (353,948 | ) | (36,660 | ) | ||||
Cumulative effect of accounting changes, net of tax |
| (608 | ) | — |
| (608 | ) | 7,290 |
| ||||
Net Loss |
| $ | (158,060 | ) | $ | (264,358 | ) | $ | (354,556 | ) | $ | (29,370 | ) |
|
|
|
|
|
|
|
|
|
| ||||
Basic and Diluted Earnings (Loss) Per Share: |
|
|
|
|
|
|
|
|
| ||||
Loss from continuing operations |
| $ | (0.68 | ) | $ | (0.71 | ) | $ | (1.54 | ) | $ | (0.93 | ) |
Income (loss) from discontinued operations |
| 0.16 |
| (0.17 | ) | 0.37 |
| 0.81 |
| ||||
Cumulative effect of accounting changes, net of tax |
| — |
| — |
| — |
| 0.02 |
| ||||
Net Loss |
| $ | (0.52 | ) | $ | (0.88 | ) | $ | (1.17 | ) | $ | (0.10 | ) |
|
|
|
|
|
|
|
|
|
| ||||
Weighted Average Common Shares Outstanding (in thousands): |
|
|
|
|
|
|
|
|
| ||||
• Basic |
| 304,849 |
| 298,979 |
| 302,409 |
| 297,527 |
| ||||
• Diluted |
| 304,849 |
| 298,979 |
| 302,409 |
| 297,527 |
|
Reference is made to Reliant Energy, Inc.’s Annual Report
on Form 10-K for the year ended December 31, 2004.
Reliant Energy, Inc. and Subsidiaries
Results of Operations by Segment - As Reported
(Millions of Dollars)
(Unaudited)
|
| Three Months Ended |
|
|
| |||||
|
| December 31, 2005 |
| December 31, 2004 |
| Change |
| |||
Retail Energy: |
|
|
|
|
|
|
| |||
Revenues: |
|
|
|
|
|
|
| |||
Revenues |
| $ | 1,736 |
| $ | 1,466 |
| $ | 270 |
|
|
|
|
|
|
|
|
| |||
Operating Expenses: |
|
|
|
|
|
|
| |||
Purchased power, fuel and cost of gas sold |
| 1,781 |
| 1,418 |
| 363 |
| |||
Gross margin |
| (45 | ) | 48 |
| (93 | ) | |||
|
|
|
|
|
|
|
| |||
Operation and maintenance |
| 48 |
| 50 |
| (2 | ) | |||
Selling and marketing |
| 29 |
| 20 |
| 9 |
| |||
Bad debt expense |
| 14 |
| 8 |
| 6 |
| |||
Contribution margin - Retail Energy |
| (136 | ) | (30 | ) | (106 | ) | |||
|
|
|
|
|
|
|
| |||
Wholesale Energy: |
|
|
|
|
|
|
| |||
Revenues: |
|
|
|
|
|
|
| |||
Revenues |
| 1,059 |
| 584 |
| 475 |
| |||
|
|
|
|
|
|
|
| |||
Operating Expenses: |
|
|
|
|
|
|
| |||
Purchased power, fuel and cost of gas sold |
| 878 |
| 450 |
| 428 |
| |||
Gross margin |
| 181 |
| 134 |
| 47 |
| |||
|
|
|
|
|
|
|
| |||
Operation and maintenance |
| 132 |
| 145 |
| (13 | ) | |||
Bad debt expense |
| — |
| 1 |
| (1 | ) | |||
Contribution margin - Wholesale Energy |
| 49 |
| (12 | ) | 61 |
| |||
|
|
|
|
|
|
|
| |||
Other Operations: |
|
|
|
|
|
|
| |||
Revenues: |
|
|
|
|
|
|
| |||
Revenues |
| 2 |
| — |
| 2 |
| |||
|
|
|
|
|
|
|
| |||
Gross margin |
| 2 |
| — |
| 2 |
| |||
|
|
|
|
|
|
|
| |||
Operation and maintenance |
| 1 |
| — |
| 1 |
| |||
Contribution margin - Other Operations |
| 1 |
| — |
| 1 |
| |||
|
|
|
|
|
|
|
| |||
Eliminations: |
|
|
|
|
|
|
| |||
Revenues: |
|
|
|
|
|
|
| |||
Revenues |
| (182 | ) | (96 | ) | (86 | ) | |||
|
|
|
|
|
|
|
| |||
Operating Expenses: |
|
|
|
|
|
|
| |||
Purchased power, fuel and cost of gas sold |
| (182 | ) | (96 | ) | (86 | ) | |||
Gross margin |
| — |
| — |
| — |
| |||
|
|
|
|
|
|
|
| |||
Consolidated: |
|
|
|
|
|
|
| |||
Revenues: |
|
|
|
|
|
|
| |||
Revenues |
| 2,615 |
| 1,954 |
| 661 |
| |||
|
|
|
|
|
|
|
| |||
Operating Expenses: |
|
|
|
|
|
|
| |||
Purchased power, fuel and cost of gas sold |
| 2,477 |
| 1,772 |
| 705 |
| |||
Gross margin |
| 138 |
| 182 |
| (44 | ) | |||
|
|
|
|
|
|
|
| |||
Operation and maintenance |
| 181 |
| 195 |
| (14 | ) | |||
Selling and marketing |
| 29 |
| 20 |
| 9 |
| |||
Bad debt expense |
| 14 |
| 9 |
| 5 |
| |||
Contribution margin - Consolidated |
| (86 | ) | (42 | ) | (44 | ) | |||
|
|
|
|
|
|
|
| |||
Other general and administrative |
| 8 |
| 48 |
| (40 | ) | |||
Western states and Cornerstone settlements |
| 8 |
| — |
| 8 |
| |||
Gains on sales of assets and emission allowances, net |
| (52 | ) | (5 | ) | (47 | ) | |||
Depreciation and amortization |
| 110 |
| 104 |
| 6 |
| |||
Total |
| 74 |
| 147 |
| (73 | ) | |||
Operating Loss |
| (160 | ) | (189 | ) | 29 |
| |||
|
|
|
|
|
|
|
| |||
Income of equity investments, net |
| 3 |
| — |
| 3 |
| |||
Other, net |
| — |
| 9 |
| (9 | ) | |||
Loss before interest and income taxes |
| (157 | ) | (180 | ) | 23 |
| |||
|
|
|
|
|
|
|
| |||
Interest expense |
| (106 | ) | (150 | ) | 44 |
| |||
Interest income |
| 8 |
| 6 |
| 2 |
| |||
Loss from continuing operations before income taxes |
| (255 | ) | (324 | ) | 69 |
| |||
Income tax benefit |
| (48 | ) | (111 | ) | 63 |
| |||
Loss from continuing operations |
| (207 | ) | (213 | ) | 6 |
| |||
Income (loss) from discontinued operations |
| 49 |
| (51 | ) | 100 |
| |||
Cumulative effect of accounting change, net of tax |
| (1 | ) | — |
| (1 | ) | |||
Net Loss |
| $ | (159 | ) | $ | (264 | ) | $ | 105 |
|
Reference is made to Reliant Energy, Inc.’s Annual Report
on Form 10-K for the year ended December 31, 2004.
Reliant Energy, Inc. and Subsidiaries
Results of Operations by Segment - As Reported
(Millions of Dollars)
(Unaudited)
|
| Twelve Months Ended |
|
|
| |||||
|
| December 31, 2005 |
| December 31, 2004 |
| Change |
| |||
Retail Energy: |
|
|
|
|
|
|
| |||
Revenues: |
|
|
|
|
|
|
| |||
Revenues |
| $ | 7,045 |
| $ | 6,064 |
| $ | 981 |
|
|
|
|
|
|
|
|
| |||
Operating Expenses: |
|
|
|
|
|
|
| |||
Purchased power, fuel and cost of gas sold |
| 6,351 |
| 5,335 |
| 1,016 |
| |||
Gross margin |
| 694 |
| 729 |
| (35 | ) | |||
|
|
|
|
|
|
|
| |||
Operation and maintenance |
| 190 |
| 222 |
| (32 | ) | |||
Selling and marketing |
| 95 |
| 82 |
| 13 |
| |||
Bad debt expense |
| 56 |
| 48 |
| 8 |
| |||
Contribution margin - Retail Energy |
| 353 |
| 377 |
| (24 | ) | |||
|
|
|
|
|
|
|
| |||
Wholesale Energy: |
|
|
|
|
|
|
| |||
Revenues: |
|
|
|
|
|
|
| |||
Revenues |
| 3,301 |
| 2,374 |
| 927 |
| |||
|
|
|
|
|
|
|
| |||
Operating Expenses: |
|
|
|
|
|
|
| |||
Purchased power, fuel and cost of gas sold |
| 2,630 |
| 1,569 |
| 1,061 |
| |||
Gross margin |
| 671 |
| 805 |
| (134 | ) | |||
|
|
|
|
|
|
|
| |||
Operation and maintenance |
| 544 |
| 560 |
| (16 | ) | |||
Bad debt expense |
| 2 |
| (2 | ) | 4 |
| |||
Contribution margin - Wholesale Energy |
| 125 |
| 247 |
| (122 | ) | |||
|
|
|
|
|
|
|
| |||
Other Operations: |
|
|
|
|
|
|
| |||
Revenues: |
|
|
|
|
|
|
| |||
Revenues |
| 6 |
| — |
| 6 |
| |||
|
|
|
|
|
|
|
| |||
Operating Expenses: |
|
|
|
|
|
|
| |||
Purchased power, fuel and cost of gas sold |
| (1 | ) | — |
| (1 | ) | |||
Gross margin |
| 7 |
| — |
| 7 |
| |||
|
|
|
|
|
|
|
| |||
Operation and maintenance |
| 3 |
| — |
| 3 |
| |||
Contribution margin - Other Operations |
| 4 |
| — |
| 4 |
| |||
|
|
|
|
|
|
|
| |||
Eliminations: |
|
|
|
|
|
|
| |||
Revenues: |
|
|
|
|
|
|
| |||
Revenues |
| (625 | ) | (340 | ) | (285 | ) | |||
|
|
|
|
|
|
|
| |||
Operating Expenses: |
|
|
|
|
|
|
| |||
Purchased power, fuel and cost of gas sold |
| (625 | ) | (340 | ) | (285 | ) | |||
Gross margin |
| — |
| — |
| — |
| |||
|
|
|
|
|
|
|
| |||
Consolidated: |
|
|
|
|
|
|
| |||
Revenues: |
|
|
|
|
|
|
| |||
Revenues |
| 9,727 |
| 8,098 |
| 1,629 |
| |||
|
|
|
|
|
|
|
| |||
Operating Expenses: |
|
|
|
|
|
|
| |||
Purchased power, fuel and cost of gas sold |
| 8,355 |
| 6,564 |
| 1,791 |
| |||
Gross margin |
| 1,372 |
| 1,534 |
| (162 | ) | |||
|
|
|
|
|
|
|
| |||
Operation and maintenance |
| 737 |
| 782 |
| (45 | ) | |||
Selling and marketing |
| 95 |
| 82 |
| 13 |
| |||
Bad debt expense |
| 58 |
| 46 |
| 12 |
| |||
Contribution margin - Consolidated |
| 482 |
| 624 |
| (142 | ) | |||
|
|
|
|
|
|
|
| |||
Other general and administrative |
| 140 |
| 198 |
| (58 | ) | |||
Western states and Cornerstone settlements |
| 359 |
| — |
| 359 |
| |||
Loss on sales of receivables |
| — |
| 34 |
| (34 | ) | |||
Accrual for payment to CenterPoint Energy, Inc. |
| — |
| 2 |
| (2 | ) | |||
Gain on sale of counterparty claim |
| — |
| (30 | ) | 30 |
| |||
Gains on sales of assets and emission allowances, net |
| (168 | ) | (20 | ) | (148 | ) | |||
Depreciation and amortization |
| 446 |
| 453 |
| (7 | ) | |||
Total |
| 777 |
| 637 |
| 140 |
| |||
Operating Loss |
| (295 | ) | (13 | ) | (282 | ) | |||
|
|
|
|
|
|
|
| |||
Income (loss) of equity investments, net |
| 26 |
| (9 | ) | 35 |
| |||
Other, net |
| (23 | ) | 13 |
| (36 | ) | |||
Loss before interest and income taxes |
| (292 | ) | (9 | ) | (283 | ) | |||
|
|
|
|
|
|
|
| |||
Interest expense |
| (399 | ) | (418 | ) | 19 |
| |||
Interest income |
| 23 |
| 35 |
| (12 | ) | |||
Loss from continuing operations before income taxes |
| (668 | ) | (392 | ) | (276 | ) | |||
Income tax benefit |
| (203 | ) | (116 | ) | (87 | ) | |||
Loss from continuing operations |
| (465 | ) | (276 | ) | (189 | ) | |||
Income from discontinued operations |
| 111 |
| 240 |
| (129 | ) | |||
Cumulative effect of accounting changes, net of tax |
| (1 | ) | 7 |
| (8 | ) | |||
Net Loss |
| $ | (355 | ) | $ | (29 | ) | $ | (326 | ) |
Reference is made to Reliant Energy, Inc.’s Annual Report
on Form 10-K for the year ended December 31, 2004.
Reliant Energy, Inc. and Subsidiaries
Results of Operations by Segment - Adjusted
(Millions of Dollars)
(Unaudited)
|
| Three Months Ended |
|
|
| |||||
|
| December 31, 2005 |
| December 31, 2004 |
| Change |
| |||
Retail Energy: |
|
|
|
|
|
|
| |||
Revenues: |
|
|
|
|
|
|
| |||
Revenues |
| $ | 1,736 |
| $ | 1,471 |
| $ | 265 |
|
|
|
|
|
|
|
|
| |||
Operating Expenses: |
|
|
|
|
|
|
| |||
Purchased power, fuel and cost of gas sold |
| 1,631 |
| 1,289 |
| 342 |
| |||
Gross margin |
| 105 |
| 182 |
| (77 | ) | |||
|
|
|
|
|
|
|
| |||
Operation and maintenance |
| 48 |
| 49 |
| (1 | ) | |||
Selling and marketing |
| 29 |
| 20 |
| 9 |
| |||
Bad debt expense |
| 14 |
| 8 |
| 6 |
| |||
Contribution margin - Retail Energy |
| 14 |
| 105 |
| (91 | ) | |||
|
|
|
|
|
|
|
| |||
Wholesale Energy: |
|
|
|
|
|
|
| |||
Revenues: |
|
|
|
|
|
|
| |||
Revenues |
| 936 |
| 634 |
| 302 |
| |||
|
|
|
|
|
|
|
| |||
Operating Expenses: |
|
|
|
|
|
|
| |||
Purchased power, fuel and cost of gas sold |
| 819 |
| 458 |
| 361 |
| |||
Gross margin |
| 117 |
| 176 |
| (59 | ) | |||
|
|
|
|
|
|
|
| |||
Operation and maintenance |
| 132 |
| 145 |
| (13 | ) | |||
Bad debt expense |
| — |
| 1 |
| (1 | ) | |||
Contribution margin - Wholesale Energy |
| (15 | ) | 30 |
| (45 | ) | |||
|
|
|
|
|
|
|
| |||
Other Operations: |
|
|
|
|
|
|
| |||
Revenues: |
|
|
|
|
|
|
| |||
Revenues |
| 2 |
| — |
| 2 |
| |||
|
|
|
|
|
|
|
| |||
Operating Expenses: |
|
|
|
|
|
|
| |||
Purchased power, fuel and cost of gas sold |
| — |
| — |
| — |
| |||
Gross margin |
| 2 |
| — |
| 2 |
| |||
|
|
|
|
|
|
|
| |||
Operation and maintenance |
| 1 |
| — |
| 1 |
| |||
Contribution margin - Other Operations |
| 1 |
| — |
| 1 |
| |||
|
|
|
|
|
|
|
| |||
Eliminations: |
|
|
|
|
|
|
| |||
Revenues: |
|
|
|
|
|
|
| |||
Revenues |
| (182 | ) | (96 | ) | (86 | ) | |||
|
|
|
|
|
|
|
| |||
Operating Expenses: |
|
|
|
|
|
|
| |||
Purchased power, fuel and cost of gas sold |
| (182 | ) | (96 | ) | (86 | ) | |||
Gross margin |
| — |
| — |
| — |
| |||
|
|
|
|
|
|
|
| |||
Consolidated: |
|
|
|
|
|
|
| |||
Revenues: |
|
|
|
|
|
|
| |||
Revenues |
| 2,492 |
| 2,009 |
| 483 |
| |||
|
|
|
|
|
|
|
| |||
Operating Expenses: |
|
|
|
|
|
|
| |||
Purchased power, fuel and cost of gas sold |
| 2,268 |
| 1,651 |
| 617 |
| |||
Gross margin |
| 224 |
| 358 |
| (134 | ) | |||
|
|
|
|
|
|
|
| |||
Operation and maintenance |
| 181 |
| 194 |
| (13 | ) | |||
Selling and marketing |
| 29 |
| 20 |
| 9 |
| |||
Bad debt expense |
| 14 |
| 9 |
| 5 |
| |||
Contribution margin - Consolidated |
| — |
| 135 |
| (135 | ) | |||
|
|
|
|
|
|
|
| |||
Other general and administrative |
| 8 |
| 45 |
| (37 | ) | |||
Gains on sales of assets and emission allowances, net |
| (52 | ) | (5 | ) | (47 | ) | |||
Depreciation and amortization |
| 110 |
| 104 |
| 6 |
| |||
Total |
| 66 |
| 144 |
| (78 | ) | |||
Operating Loss |
| (66 | ) | (9 | ) | (57 | ) | |||
|
|
|
|
|
|
|
| |||
Income of equity investments, net |
| 3 |
| — |
| 3 |
| |||
Other, net |
| — |
| — |
| — |
| |||
Loss before interest and income taxes |
| (63 | ) | (9 | ) | (54 | ) | |||
|
|
|
|
|
|
|
| |||
Interest expense |
| (106 | ) | (150 | ) | 44 |
| |||
Interest income |
| 8 |
| 3 |
| 5 |
| |||
Loss from continuing operations before income taxes |
| (161 | ) | (156 | ) | (5 | ) | |||
Income tax benefit |
| (12 | ) | (47 | ) | 35 |
| |||
Loss from continuing operations |
| (149 | ) | (109 | ) | (40 | ) | |||
Income (loss) from discontinued operations |
| 49 |
| (51 | ) | 100 |
| |||
Cumulative effect of accounting change, net of tax |
| (1 | ) | — |
| (1 | ) | |||
Net Loss |
| $ | (101 | ) | $ | (160 | ) | $ | 59 |
|
Reference is made to Reliant Energy, Inc.’s Annual Report
on Form 10-K for the year ended December 31, 2004.
Reliant Energy, Inc. and Subsidiaries
Results of Operations by Segment - Adjusted
(Millions of Dollars)
(Unaudited)
|
| Twelve Months Ended |
|
|
| |||||
|
| December 31, 2005 |
| December 31, 2004 |
| Change |
| |||
Retail Energy: |
|
|
|
|
|
|
| |||
Revenues: |
|
|
|
|
|
|
| |||
Revenues |
| $ | 7,045 |
| $ | 6,085 |
| $ | 960 |
|
|
|
|
|
|
|
|
| |||
Operating Expenses: |
|
|
|
|
|
|
| |||
Purchased power, fuel and cost of gas sold |
| 6,282 |
| 5,063 |
| 1,219 |
| |||
Gross margin |
| 763 |
| 1,022 |
| (259 | ) | |||
|
|
|
|
|
|
|
| |||
Operation and maintenance |
| 190 |
| 216 |
| (26 | ) | |||
Selling and marketing |
| 95 |
| 80 |
| 15 |
| |||
Bad debt expense |
| 56 |
| 48 |
| 8 |
| |||
Contribution margin - Retail Energy |
| 422 |
| 678 |
| (256 | ) | |||
|
|
|
|
|
|
|
| |||
Wholesale Energy: |
|
|
|
|
|
|
| |||
Revenues: |
|
|
|
|
|
|
| |||
Revenues |
| 3,503 |
| 2,429 |
| 1,074 |
| |||
|
|
|
|
|
|
|
| |||
Operating Expenses: |
|
|
|
|
|
|
| |||
Purchased power, fuel and cost of gas sold |
| 2,725 |
| 1,649 |
| 1,076 |
| |||
Gross margin |
| 778 |
| 780 |
| (2 | ) | |||
|
|
|
|
|
|
|
| |||
Operation and maintenance |
| 544 |
| 549 |
| (5 | ) | |||
Bad debt expense |
| 2 |
| (2 | ) | 4 |
| |||
Contribution margin - Wholesale Energy |
| 232 |
| 233 |
| (1 | ) | |||
|
|
|
|
|
|
|
| |||
Other Operations: |
|
|
|
|
|
|
| |||
Revenues: |
|
|
|
|
|
|
| |||
Revenues |
| 6 |
| — |
| 6 |
| |||
|
|
|
|
|
|
|
| |||
Operating Expenses: |
|
|
|
|
|
|
| |||
Purchased power, fuel and cost of gas sold |
| (1 | ) | — |
| (1 | ) | |||
Gross margin |
| 7 |
| — |
| 7 |
| |||
|
|
|
|
|
|
|
| |||
Operation and maintenance |
| 3 |
| — |
| 3 |
| |||
Contribution margin - Other Operations |
| 4 |
| — |
| 4 |
| |||
|
|
|
|
|
|
|
| |||
Eliminations: |
|
|
|
|
|
|
| |||
Revenues: |
|
|
|
|
|
|
| |||
Revenues |
| (625 | ) | (340 | ) | (285 | ) | |||
|
|
|
|
|
|
|
| |||
Operating Expenses: |
|
|
|
|
|
|
| |||
Purchased power, fuel and cost of gas sold |
| (625 | ) | (340 | ) | (285 | ) | |||
Gross margin |
| — |
| — |
| — |
| |||
|
|
|
|
|
|
|
| |||
Consolidated: |
|
|
|
|
|
|
| |||
Revenues: |
|
|
|
|
|
|
| |||
Revenues |
| 9,929 |
| 8,174 |
| 1,755 |
| |||
|
|
|
|
|
|
|
| |||
Operating Expenses: |
|
|
|
|
|
|
| |||
Purchased power, fuel and cost of gas sold |
| 8,381 |
| 6,372 |
| 2,009 |
| |||
Gross margin |
| 1,548 |
| 1,802 |
| (254 | ) | |||
|
|
|
|
|
|
|
| |||
Operation and maintenance |
| 737 |
| 765 |
| (28 | ) | |||
Selling and marketing |
| 95 |
| 80 |
| 15 |
| |||
Bad debt expense |
| 58 |
| 46 |
| 12 |
| |||
Contribution margin - Consolidated |
| 658 |
| 911 |
| (253 | ) | |||
|
|
|
|
|
|
|
| |||
Other general and administrative |
| 132 |
| 173 |
| (41 | ) | |||
Loss on sales of receivables |
| — |
| 34 |
| (34 | ) | |||
Gains on sales of assets and emission allowances, net |
| (168 | ) | (20 | ) | (148 | ) | |||
Depreciation and amortization |
| 446 |
| 425 |
| 21 |
| |||
Total |
| 410 |
| 612 |
| (202 | ) | |||
Operating income |
| 248 |
| 299 |
| (51 | ) | |||
|
|
|
|
|
|
|
| |||
Income (loss) of equity investments, net |
| 26 |
| (9 | ) | 35 |
| |||
Other, net |
| (23 | ) | 4 |
| (27 | ) | |||
Earnings before interest and income taxes |
| 251 |
| 294 |
| (43 | ) | |||
|
|
|
|
|
|
|
| |||
Interest expense |
| (399 | ) | (418 | ) | 19 |
| |||
Interest income |
| 17 |
| 19 |
| (2 | ) | |||
Loss from continuing operations before income taxes |
| (131 | ) | (105 | ) | (26 | ) | |||
Income tax benefit |
| (1 | ) | (7 | ) | 6 |
| |||
Loss from continuing operations |
| (130 | ) | (98 | ) | (32 | ) | |||
Income from discontinued operations |
| 111 |
| 240 |
| (129 | ) | |||
Cumulative effect of accounting changes, net of tax |
| (1 | ) | 7 |
| (8 | ) | |||
Net Income (loss) |
| $ | (20 | ) | $ | 149 |
| $ | (169 | ) |
Reference is made to Reliant Energy, Inc.’s Annual Report
on Form 10-K for the year ended December 31, 2004.
Reliant Energy, Inc. and Subsidiaries
Results of Operations by Segment - Adjustments
(Millions of Dollars)
(Unaudited)
|
| Three Months Ended |
|
|
| |||||
|
| December 31, 2005 |
| December 31, 2004 |
| Change |
| |||
|
|
|
|
|
|
|
| |||
Retail Energy: |
|
|
|
|
|
|
| |||
Gross Margin (1) Adjustments: |
|
|
|
|
|
|
| |||
Gains recorded prior to 2003 to be realized/collected in current period |
| $ | — |
| $ | 5 |
| $ | (5 | ) |
Unrealized (gains)/losses on energy derivatives |
| 150 |
| 129 |
| 21 |
| |||
Total gross margin adjustments |
| 150 |
| 134 |
| 16 |
| |||
|
|
|
|
|
|
|
| |||
Operating Expenses Adjustments: |
|
|
|
|
|
|
| |||
Operation and maintenance adjustment - severance and restructuring |
| — |
| (1 | ) | 1 |
| |||
Total operating expenses adjustments |
| — |
| (1 | ) | 1 |
| |||
|
|
|
|
|
|
|
| |||
Wholesale Energy: |
|
|
|
|
|
|
| |||
Gross Margin (1) Adjustments: |
|
|
|
|
|
|
| |||
Changes in California-related receivables and reserves |
| — |
| 33 |
| (33 | ) | |||
Unrealized (gains)/losses on energy derivatives |
| (64 | ) | 9 |
| (73 | ) | |||
Total gross margin adjustments |
| (64 | ) | 42 |
| (106 | ) | |||
|
|
|
|
|
|
|
| |||
Consolidated: |
|
|
|
|
|
|
| |||
Selling, general and administrative adjustment - severance and restructuring |
| — |
| (1 | ) | 1 |
| |||
Selling, general and administrative adjustment - restructuring costs associated with lease on corporate headquarters |
| — |
| (2 | ) | 2 |
| |||
Western states and Cornerstone settlements |
| (8 | ) | — |
| (8 | ) | |||
Interest income adjustment - California-related interest income |
| — |
| (3 | ) | 3 |
| |||
Gain on sale of non-marketable investment - ICE |
| — |
| 9 |
| (9 | ) | |||
|
|
|
|
|
|
|
| |||
Income tax expense - tax adjustments, net |
| 36 |
| 64 |
| (28 | ) | |||
(1) Revenues less purchased power, fuel and cost of gas sold.
Reference is made to Reliant Energy, Inc.’s Annual Report
on Form 10-K for the year ended December 31, 2004.
Reliant Energy, Inc. and Subsidiaries
Results of Operations by Segment - Adjustments
(Millions of Dollars)
(Unaudited)
|
| Twelve Months Ended |
|
|
| |||||
|
| December 31, 2005 |
| December 31, 2004 |
| Change |
| |||
|
|
|
|
|
|
|
| |||
Retail Energy: |
|
|
|
|
|
|
| |||
Gross Margin (1) Adjustments: |
|
|
|
|
|
|
| |||
Gains recorded prior to 2003 to be realized/collected in current period |
| $ | — |
| $ | 21 |
| $ | (21 | ) |
Unrealized losses on energy derivatives |
| 69 |
| 272 |
| (203 | ) | |||
Total gross margin adjustments |
| 69 |
| 293 |
| (224 | ) | |||
|
|
|
|
|
|
|
| |||
Operating Expenses Adjustments: |
|
|
|
|
|
|
| |||
Operation and maintenance adjustment - severance and restructuring |
| — |
| (6 | ) | 6 |
| |||
Selling and marketing adjustment - severance and restructuring |
| — |
| (2 | ) | 2 |
| |||
Total operating expenses adjustments |
| — |
| (8 | ) | 8 |
| |||
|
|
|
|
|
|
|
| |||
Wholesale Energy: |
|
|
|
|
|
|
| |||
Gross Margin (1) Adjustments: |
|
|
|
|
|
|
| |||
Changes in California-related receivables and reserves |
| (1 | ) | 11 |
| (12 | ) | |||
Adjustment to October 2003 FERC settlement |
| — |
| 12 |
| (12 | ) | |||
Unrealized (gains)/losses on energy derivatives |
| 108 |
| (48 | ) | 156 |
| |||
Total gross margin adjustments |
| 107 |
| (25 | ) | 132 |
| |||
|
|
|
|
|
|
|
| |||
Operating Expenses Adjustments: |
|
|
|
|
|
|
| |||
Operation and maintenance adjustment - severance and restructuring |
| — |
| (11 | ) | 11 |
| |||
|
|
|
|
|
|
|
| |||
Consolidated: |
|
|
|
|
|
|
| |||
Selling, general and administrative adjustment - severance and restructuring |
| — |
| (12 | ) | 12 |
| |||
Selling, general and administrative adjustment - settlement of shareholder class action lawsuits |
| (8 | ) | — |
| (8 | ) | |||
Selling, general and administrative adjustment - restructuring costs associated with lease on corporate headquarters |
| — |
| (13 | ) | 13 |
| |||
Western states and Cornerstone settlements |
| (359 | ) | — |
| (359 | ) | |||
Accrual for payment to CenterPoint Energy, Inc. adjustment |
| — |
| (2 | ) | 2 |
| |||
Gain on sale of counterparty claim |
| — |
| 30 |
| (30 | ) | |||
Depreciation and amortization adjustment - accelerated depreciation on retired generation assets |
| — |
| (12 | ) | 12 |
| |||
Depreciation and amortization adjustment - equipment impairment related to turbines and generators |
| — |
| (16 | ) | 16 |
| |||
Interest income adjustment - California-related interest income |
| (6 | ) | (16 | ) | 10 |
| |||
Gain on sale of non-marketable investment - ICE |
| — |
| 9 |
| (9 | ) | |||
|
|
|
|
|
|
|
| |||
Income tax expense - tax adjustments, net |
| 202 |
| 109 |
| 93 |
| |||
(1) Revenues less purchased power, fuel and cost of gas sold.
Reference is made to Reliant Energy, Inc.’s Annual Report
on Form 10-K for the year ended December 31, 2004.
Reliant Energy, Inc. and Subsidiaries
Open EBITDA Reconciliations
(Millions of Dollars)
(Unaudited)
|
| Three Months Ended |
| ||||||||
|
| December 31, 2005 |
| December 31, 2004 |
| ||||||
|
|
|
|
|
|
|
|
|
| ||
Adjusted loss before interest and income taxes |
|
|
| $ | (63 | ) |
|
| $ | (9 | ) |
|
|
|
|
|
|
|
|
|
| ||
Adjusted depreciation and amortization |
|
|
| 110 |
|
|
| 104 |
| ||
|
|
|
|
|
|
|
|
|
| ||
Adjusted EBITDA |
|
|
| 47 |
|
|
| 95 |
| ||
|
|
|
|
|
|
|
|
|
| ||
Gains on sales of assets and emission allowances, net |
|
|
| (52 | ) |
|
| (5 | ) | ||
Historical wholesale hedges (included in wholesale gross margin): |
|
|
|
|
|
|
|
|
| ||
Power (closed) |
| 47 |
|
|
| — |
|
|
| ||
Fuel |
| (28 | ) |
|
| (50 | ) |
|
| ||
Tolling/other |
| 186 |
|
|
| 10 |
|
|
| ||
|
|
|
| 205 | (a) |
|
| (40 | )(b) | ||
|
|
|
|
|
|
|
|
|
| ||
Open EBITDA |
|
|
| $ | 200 |
|
|
| $ | 50 |
|
|
|
|
|
|
|
|
|
|
| ||
Loss from continuing operations before income taxes |
|
|
| $ | (255 | ) |
|
| (324 | ) | |
|
|
|
|
|
|
|
|
|
| ||
Adjustments: |
|
|
|
|
|
|
|
|
| ||
General and administrative adjustment - severance and restructuring |
|
|
| — |
|
|
| 4 |
| ||
Western states and Cornerstone settlements |
|
|
| 8 |
|
|
| — |
| ||
Interest income adjustment - California-related interest income |
|
|
| — |
|
|
| (3 | ) | ||
Unrealized (gains)/losses on energy derivatives |
|
|
| 86 |
|
|
| 138 |
| ||
Changes in California-related receivables and reserves |
|
|
| — |
|
|
| 33 |
| ||
Gain on sale of non-marketable investment - ICE |
|
|
| — |
|
|
| (9 | ) | ||
Gains recorded prior to 2003 to be realized/collected in current period |
|
|
| — |
|
|
| 5 |
| ||
|
|
|
|
|
|
|
|
|
| ||
Adjusted depreciation and amortization |
|
|
| 110 |
|
|
| 104 |
| ||
Adjusted interest expense, net |
|
|
| 98 |
|
|
| 147 |
| ||
|
|
|
|
|
|
|
|
|
| ||
Adjusted EBITDA |
|
|
| 47 |
|
|
| 95 |
| ||
|
|
|
|
|
|
|
|
|
| ||
Gains on sales of assets, net |
|
|
| (52 | ) |
|
| (5 | ) | ||
Historical wholesale hedges (included in wholesale gross margin): |
|
|
|
|
|
|
|
|
| ||
Power (closed) |
| 47 |
|
|
| — |
|
|
| ||
Fuel |
| (28 | ) |
|
| (50 | ) |
|
| ||
Tolling/other |
| 186 |
|
|
| 10 |
|
|
| ||
|
|
|
| 205 | (a) |
|
| (40 | )(b) | ||
|
|
|
|
|
|
|
|
|
| ||
Open EBITDA |
|
|
| $ | 200 |
|
|
| $ | 50 |
|
(a) Open wholesale gross margin is $322 million ($117 million of adjusted wholesale gross margin excluding historical hedges of $205 million).
(b) Open wholesale gross margin is $136 million ($176 million of adjusted wholesale gross margin excluding historical hedges of $(40) million).
Reference is made to Reliant Energy, Inc.’s Annual Report
on Form 10-K for the year ended December 31, 2004.
Reliant Energy, Inc. and Subsidiaries
Open EBITDA Reconciliations
(Millions of Dollars)
(Unaudited)
|
| Twelve Months Ended |
| |||
|
| December 31, 2005 |
| |||
|
|
|
|
|
| |
Adjusted earnings before interest and income taxes |
| $ |
|
| 251 |
|
|
|
|
|
|
| |
Depreciation and amortization |
|
|
| 446 |
| |
|
|
|
|
|
| |
Adjusted EBITDA |
|
|
| 697 |
| |
|
|
|
|
|
| |
Gains on sales of assets and emission allowances, net |
|
|
| (168 | ) | |
Gain on sale of equity method investment |
|
|
| (25 | ) | |
Historical wholesale hedges (included in wholesale gross margin): |
|
|
|
|
| |
Power (closed) |
| 441 |
|
|
| |
Fuel |
| (110 | ) |
|
| |
Tolling/other |
| 84 |
|
|
| |
|
|
|
| 415 | (a) | |
|
|
|
|
|
| |
Open EBITDA |
| $ |
|
| 919 |
|
|
|
|
|
|
| |
Loss from continuing operations before income taxes |
| $ |
|
| (668 | ) |
|
|
|
|
|
| |
Adjustments: |
|
|
|
|
| |
General and administrative adjustment - settlement of shareholder class action lawsuits |
|
|
| 8 |
| |
General and administrative adjustment - severance and restructuring |
|
|
| — |
| |
Western states and Cornerstone settlements |
|
|
| 359 |
| |
Interest income adjustment - California-related interest income |
|
|
| (6 | ) | |
Unrealized (gains)/losses on energy derivatives |
|
|
| 177 |
| |
Changes in California-related receivables and reserves |
|
|
| (1 | ) | |
Gain on sale of non-marketable investment - ICE |
|
|
| — |
| |
Gains recorded prior to 2003 to be realized/collected in current period |
|
|
| — |
| |
Adjustment to October 2003 FERC settlement |
|
|
|
|
| |
Gain on sale of counterparty claim |
|
|
| — |
| |
Accrual for payment to CenterPoint Energy, Inc. adjustment |
|
|
| — |
| |
Depreciation and amortization adjustment - accelerated depreciation on retired generation assets |
|
|
| — |
| |
Depreciation and amortization adjustment - equipment impairment related to turbines and generators |
|
|
| — |
| |
|
|
|
|
|
| |
Depreciation and amortization |
|
|
| 446 |
| |
Adjusted interest expense, net |
|
|
| 382 |
| |
|
|
|
|
|
| |
Adjusted EBITDA |
|
|
| 697 |
| |
|
|
|
|
|
| |
Gains on sales of assets, net |
|
|
| (168 | ) | |
Gain on sale of equity method investment |
|
|
| (25 | ) | |
Historical wholesale hedges (included in wholesale gross margin): |
|
|
|
|
| |
Power (closed) |
| 441 |
|
|
| |
Fuel |
| (110 | ) |
|
| |
Tolling/other |
| 84 |
|
|
| |
|
|
|
| 415 | (a) | |
|
|
|
|
|
| |
Open EBITDA |
| $ |
|
| 919 |
|
(a) Open wholesale gross margin is $1,193 million ($778 million of adjusted wholesale gross margin excluding historical hedges of $415 million).
Reference is made to Reliant Energy, Inc.’s Annual Report
on Form 10-K for the year ended December 31, 2004.
Reliant Energy, Inc. and Subsidiaries
Diluted EPS from Continuing Operations Reconciliation
(Dollars per diluted share)
(Unaudited)
|
| Three Months Ended December 31, |
| Twelve Months Ended December 31, |
| ||||||||
|
| 2005 |
| 2004 |
| 2005 |
| 2004 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Diluted: |
|
|
|
|
|
|
|
|
| ||||
Net Loss (per GAAP) |
| $ | (0.52 | ) | $ | (0.88 | ) | $ | (1.17 | ) | $ | (0.10 | ) |
|
|
|
|
|
|
|
|
|
| ||||
Cumulative effect of accounting changes, net of tax |
| — |
| — |
| — |
| (0.02 | ) | ||||
|
|
|
|
|
|
|
|
|
| ||||
(Income) loss from discontinued operations |
| (0.16 | ) | 0.17 |
| (0.37 | ) | (0.81 | ) | ||||
|
|
|
|
|
|
|
|
|
| ||||
Loss from continuing operations (on GAAP basis) |
| (0.68 | ) | (0.71 | ) | (1.54 | ) | (0.93 | ) | ||||
|
|
|
|
|
|
|
|
|
| ||||
Adjustments: |
|
|
|
|
|
|
|
|
| ||||
Gains recorded prior to 2003 to be realized/collected in current period |
| — |
| 0.01 |
| — |
| 0.04 |
| ||||
Unrealized losses on energy derivatives |
| 0.17 |
| 0.30 |
| 0.37 |
| 0.47 |
| ||||
Changes in California-related receivables and reserves (including interest) |
| — |
| 0.06 |
| (0.02 | ) | (0.02 | ) | ||||
Adjustment to October 2003 FERC settlement |
| — |
| — |
| — |
| 0.03 |
| ||||
Severance and restructuring |
| — |
| — |
| — |
| 0.07 |
| ||||
Restructuring costs associated with lease on corporate headquarters |
| — |
| — |
| — |
| 0.03 |
| ||||
Settlement of shareholder class action lawsuits |
| — |
| — |
| 0.02 |
| — |
| ||||
Western states and Cornerstone settlements |
| 0.02 |
| — |
| 0.74 |
| — |
| ||||
Gain on sale of counterparty claim |
| — |
| — |
| — |
| (0.06 | ) | ||||
Accelerated depreciation on retired generation assets |
| — |
| — |
| — |
| 0.03 |
| ||||
Equipment impairment related to turbines and generators |
| — |
| — |
| — |
| 0.03 |
| ||||
Gain on sale of non-marketable investment - ICE |
| — |
| (0.02 | ) | — |
| (0.02 | ) | ||||
Adjusted loss from continuing operations |
| $ | (0.49 | ) | $ | (0.36 | ) | $ | (0.43 | ) | $ | (0.33 | ) |
Reference is made to Reliant Energy, Inc.’s Annual Report
on Form 10-K for the year ended December 31, 2004.
Reliant Energy, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(Thousands of Dollars)
(Unaudited)
|
| December 31, 2005 |
| December 31, 2004 |
| ||
ASSETS |
|
|
|
|
| ||
Current Assets: |
|
|
|
|
| ||
Cash and cash equivalents |
| $ | 88,397 |
| $ | 105,054 |
|
Restricted cash |
| 26,906 |
| 15,610 |
| ||
Accounts and notes receivable, principally customer, net |
| 1,171,673 |
| 1,071,312 |
| ||
Inventory |
| 299,099 |
| 245,682 |
| ||
Derivative assets |
| 725,964 |
| 305,924 |
| ||
Margin deposits on energy trading and hedging activities |
| 1,716,035 |
| 505,547 |
| ||
Other current assets |
| 478,045 |
| 304,446 |
| ||
Current assets of discontinued operations |
| 203,332 |
| 104,276 |
| ||
Total current assets |
| 4,709,451 |
| 2,657,851 |
| ||
Property, Plant and Equipment, net |
| 5,934,060 |
| 6,437,761 |
| ||
|
|
|
|
|
| ||
Other Assets: |
|
|
|
|
| ||
Goodwill |
| 386,594 |
| 440,534 |
| ||
Other intangibles, net |
| 510,582 |
| 540,583 |
| ||
Net California receivables subject to refund |
| — |
| 200,086 |
| ||
Equity investments |
| 29,524 |
| 83,819 |
| ||
Derivative assets |
| 527,799 |
| 272,254 |
| ||
Restricted cash |
| — |
| 25,547 |
| ||
Other long-term assets |
| 565,000 |
| 502,830 |
| ||
Long-term assets of discontinued operations |
| 880,796 |
| 1,032,759 |
| ||
Total other assets |
| 2,900,295 |
| 3,098,412 |
| ||
Total Assets |
| $ | 13,543,806 |
| $ | 12,194,024 |
|
|
|
|
|
|
| ||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
| ||
|
|
|
|
|
| ||
Current Liabilities: |
|
|
|
|
| ||
Current portion of long-term debt and short-term borrowings |
| $ | 789,325 |
| $ | 618,854 |
|
Accounts payable, principally trade |
| 875,965 |
| 566,104 |
| ||
Derivative liabilities |
| 1,219,954 |
| 401,881 |
| ||
Margin deposits on energy trading and hedging activities |
| 15,588 |
| 19,040 |
| ||
Other current liabilities |
| 402,942 |
| 463,528 |
| ||
Current liabilities of discontinued operations |
| 96,456 |
| 29,184 |
| ||
Total current liabilities |
| 3,400,230 |
| 2,098,591 |
| ||
|
|
|
|
|
| ||
Other Liabilities: |
|
|
|
|
| ||
Derivative liabilities |
| 812,695 |
| 311,222 |
| ||
Other long-term liabilities |
| 403,083 |
| 616,575 |
| ||
Long-term liabilities of discontinued operations |
| 779,678 |
| 842,425 |
| ||
Total other liabilities |
| 1,995,456 |
| 1,770,222 |
| ||
|
|
|
|
|
| ||
Long-term Debt |
| 4,317,427 |
| 3,938,857 |
| ||
Commitments and Contingencies |
|
|
|
|
| ||
Total Stockholders’ Equity |
| 3,830,693 |
| 4,386,354 |
| ||
Total Liabilities and Stockholders’ Equity |
| $ | 13,543,806 |
| $ | 12,194,024 |
|
Reference is made to Reliant Energy, Inc.’s Annual Report
on Form 10-K for the year ended December 31, 2004.
Reliant Energy, Inc. and Subsidiaries
Consolidated Statements of Cash Flows
(Thousands of Dollars)
(Unaudited)
|
| Twelve Months Ended December 31, |
| ||||
|
| 2005 |
| 2004 |
| ||
|
|
|
|
|
| ||
Cash Flows from Operating Activities: |
|
|
|
|
| ||
Net loss |
| $ | (354,556 | ) | $ | (29,370 | ) |
Income from discontinued operations |
| (110,799 | ) | (239,800 | ) | ||
Net loss from continuing operations and cumulative effect of accounting changes |
| (465,355 | ) | (269,170 | ) | ||
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: |
|
|
|
|
| ||
Cumulative effect of accounting changes |
| 608 |
| (7,290 | ) | ||
Depreciation and amortization |
| 445,871 |
| 453,042 |
| ||
Deferred income taxes |
| (228,992 | ) | (108,688 | ) | ||
Net unrealized losses on energy derivatives |
| 177,235 |
| 224,402 |
| ||
Amortization of deferred financing costs |
| 15,110 |
| 77,881 |
| ||
Gains on sales of assets and emission allowances, net |
| (168,114 | ) | (19,834 | ) | ||
Western states and Cornerstone settlements |
| 359,436 |
| — |
| ||
(Income) loss of equity investments, net |
| (25,458 | ) | 9,478 |
| ||
Other, net |
| 27,498 |
| (5,458 | ) | ||
Changes in other assets and liabilities: |
|
|
|
|
| ||
Accounts and notes receivable and unbilled revenue, net |
| (109,736 | ) | (59,723 | ) | ||
Receivables facility proceeds, net |
| — |
| 232,000 |
| ||
Inventory |
| (42,253 | ) | (14,744 | ) | ||
Margin deposits on energy trading and hedging activities, net |
| (1,213,940 | ) | (450,851 | ) | ||
Net derivative assets and liabilities |
| 10,978 |
| 12,547 |
| ||
Accounts payable |
| 133,466 |
| 59,233 |
| ||
Payment to CenterPoint Energy, Inc. |
| — |
| (176,600 | ) | ||
Other current assets |
| 33,071 |
| (37,399 | ) | ||
Other assets |
| (32,605 | ) | (5,562 | ) | ||
Taxes payable/ receivable |
| 3,053 |
| 47,652 |
| ||
Other current liabilities |
| (34,479 | ) | 1,815 |
| ||
Other liabilities |
| 4,495 |
| 42,617 |
| ||
Net cash provided by (used in) continuing operations from operating activities |
| (1,110,111 | ) | 5,348 |
| ||
Net cash provided by discontinued operations from operating activities |
| 192,948 |
| 100,165 |
| ||
Net cash provided by (used in) operating activities |
| (917,163 | ) | 105,513 |
| ||
Cash Flows from Investing Activities: |
|
|
|
|
| ||
Capital expenditures |
| (82,296 | ) | (159,671 | ) | ||
Proceeds from sales of assets, net |
| 149,345 |
| 11,325 |
| ||
Proceeds from sales of emission allowances |
| 234,421 |
| 59,662 |
| ||
Purchases of emission allowances |
| (145,769 | ) | (124,241 | ) | ||
Restricted cash |
| 14,251 |
| 178,885 |
| ||
Other, net |
| 5,500 |
| 16,207 |
| ||
Net cash provided by (used in) continuing operations from investing activities |
| 175,452 |
| (17,833 | ) | ||
Net cash provided by discontinued operations from investing activities |
| 130,700 |
| 919,043 |
| ||
Net cash provided by investing activities |
| 306,152 |
| 901,210 |
| ||
Cash Flows from Financing Activities: |
|
|
|
|
| ||
Proceeds from long-term debt |
| 299,000 |
| 1,512,000 |
| ||
Payments of long-term debt |
| (148,333 | ) | (1,597,568 | ) | ||
Increase (decrease) in short-term borrowings and revolving credit facilities, net |
| 407,000 |
| (108,350 | ) | ||
Proceeds from issuances of stock |
| 37,885 |
| 24,618 |
| ||
Payments of financing costs |
| (1,198 | ) | (71,884 | ) | ||
Other, net |
| — |
| 9,156 |
| ||
Net cash provided by (used in) continuing operations from financing activities |
| 594,354 |
| (232,028 | ) | ||
Net cash used in discontinued operations from financing activities |
| — |
| (815,885 | ) | ||
Net cash provided by (used in) financing activities |
| 594,354 |
| (1,047,913 | ) | ||
Net Change in Cash and Cash Equivalents |
| (16,657 | ) | (41,190 | ) | ||
Cash and Cash Equivalents at Beginning of Period |
| 105,054 |
| 146,244 |
| ||
Cash and Cash Equivalents at End of Period |
| $ | 88,397 |
| $ | 105,054 |
|
Reference is made to Reliant Energy, Inc.’s Annual Report
on Form 10-K for the year ended December 31, 2004.
Reliant Energy, Inc. and Subsidiaries
Retail Operational Data
(Unaudited)
Retail Energy Revenues:
|
| Three Months Ended December 31, |
| Twelve Months Ended December 31, |
| ||||||||
|
| 2005 |
| 2004 |
| 2005 |
| 2004 |
| ||||
|
| (in millions) |
| (in millions) |
| ||||||||
Retail energy revenues from end-use retail customers: |
|
|
|
|
|
|
|
|
| ||||
Texas: |
|
|
|
|
|
|
|
|
| ||||
Residential and small business |
| $ | 906 |
| $ | 766 |
| $ | 4,005 |
| $ | 3,531 |
|
Large commercial, industrial and governmental/institutional |
| 588 |
| 521 |
| 2,185 |
| 1,957 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Outside of Texas: |
|
|
|
|
|
|
|
|
| ||||
Commercial, industrial and governmental/institutional |
| 115 |
| 67 |
| 404 |
| 204 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Total |
| 1,609 |
| 1,354 |
| 6,594 |
| 5,692 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Retail Energy revenues from resales of purchased power and other hedging activities |
| 121 |
| 133 |
| 474 |
| 374 |
| ||||
Market usage adjustments |
| 6 |
| (21 | ) | (23 | ) | (2 | ) | ||||
Total retail energy revenues |
| $ | 1,736 |
| $ | 1,466 |
| $ | 7,045 |
| $ | 6,064 |
|
Retail Energy Operating Data:
|
| Three Months Ended December 31, |
| Twelve Months Ended December 31, |
| ||||
|
| 2005 |
| 2004 |
| 2005 |
| 2004 |
|
|
| (gigawatt hours) |
| (gigawatt hours) |
| ||||
Electricity Sales to End-Use Retail Customers: |
|
|
|
|
|
|
|
|
|
Texas: |
|
|
|
|
|
|
|
|
|
Residential: |
|
|
|
|
|
|
|
|
|
Price-to-beat |
| 3,606 |
| 3,958 |
| 17,981 |
| 19,315 |
|
Non price-to-beat |
| 1,524 |
| 1,184 |
| 6,470 |
| 4,516 |
|
Total residential |
| 5,130 |
| 5,142 |
| 24,451 |
| 23,831 |
|
Small business: |
|
|
|
|
|
|
|
|
|
Price-to-beat |
| 1,208 |
| 1,495 |
| 5,183 |
| 7,166 |
|
Non price-to-beat |
| 722 |
| 488 |
| 2,882 |
| 1,924 |
|
Total small business |
| 1,930 |
| 1,983 |
| 8,065 |
| 9,090 |
|
Large commercial, industrial and governmental/institutional (1) |
| 6,488 |
| 7,889 |
| 28,604 |
| 31,278 |
|
Total Texas |
| 13,548 |
| 15,014 |
| 61,120 |
| 64,199 |
|
Outside of Texas: |
|
|
|
|
|
|
|
|
|
Commercial, industrial and governmental/institutional |
| 1,634 |
| 1,187 |
| 6,155 |
| 3,635 |
|
Total Outside of Texas |
| 1,634 |
| 1,187 |
| 6,155 |
| 3,635 |
|
Total |
| 15,182 |
| 16,201 |
| 67,275 |
| 67,834 |
|
|
| December 31, |
| December 31, |
|
|
|
|
|
|
| 2005 |
| 2004 |
|
|
|
|
|
|
| (in thousands, metered locations) |
|
|
|
|
| ||
Retail Customers: |
|
|
|
|
|
|
|
|
|
Texas: |
|
|
|
|
|
|
|
|
|
Residential: |
|
|
|
|
|
|
|
|
|
Price-to-beat |
| 1,191 |
| 1,313 |
|
|
|
|
|
Non price-to-beat |
| 483 |
| 334 |
|
|
|
|
|
Total residential |
| 1,674 |
| 1,647 |
|
|
|
|
|
Small business: |
|
|
|
|
|
|
|
|
|
Price-to-beat |
| 137 |
| 163 |
|
|
|
|
|
Non price-to-beat |
| 66 |
| 30 |
|
|
|
|
|
Total small business |
| 203 |
| 193 |
|
|
|
|
|
Large commercial, industrial and governmental/institutional (1) |
| 34 |
| 40 |
|
|
|
|
|
Total Texas |
| 1,911 |
| 1,880 |
|
|
|
|
|
Outside of Texas: |
|
|
|
|
|
|
|
|
|
Commercial, industrial and governmental/institutional |
| 2 |
| 1 |
|
|
|
|
|
Total Outside of Texas |
| 2 |
| 1 |
|
|
|
|
|
Total |
| 1,913 |
| 1,881 |
|
|
|
|
|
|
| Three Months Ended December 31, |
| Twelve Months Ended December 31, |
| ||||
|
| 2005 |
| 2004 |
| 2005 |
| 2004 |
|
|
| (in thousands, metered locations) |
| (in thousands, metered locations) |
| ||||
Weighted Average Retail Customer Count: |
|
|
|
|
|
|
|
|
|
Texas: |
|
|
|
|
|
|
|
|
|
Residential: |
|
|
|
|
|
|
|
|
|
Price-to-beat |
| 1,194 |
| 1,326 |
| 1,250 |
| 1,360 |
|
Non price-to-beat |
| 461 |
| 319 |
| 396 |
| 271 |
|
Total residential |
| 1,655 |
| 1,645 |
| 1,646 |
| 1,631 |
|
Small business: |
|
|
|
|
|
|
|
|
|
Price-to-beat |
| 137 |
| 165 |
| 147 |
| 174 |
|
Non price-to-beat |
| 57 |
| 29 |
| 43 |
| 26 |
|
Total small business |
| 194 |
| 194 |
| 190 |
| 200 |
|
Large commercial, industrial and governmental/institutional (1) |
| 33 |
| 40 |
| 36 |
| 40 |
|
Total Texas |
| 1,882 |
| 1,879 |
| 1,872 |
| 1,871 |
|
Outside of Texas: |
|
|
|
|
|
|
|
|
|
Commercial, industrial and governmental/institutional |
| 2 |
| 1 |
| 2 |
| 1 |
|
Total Outside of Texas |
| 2 |
| 1 |
| 2 |
| 1 |
|
Total |
| 1,884 |
| 1,880 |
| 1,874 |
| 1,872 |
|
(1) These volumes include customers of the 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, 2004.
Reliant Energy, Inc. and Subsidiaries
Wholesale Operational Data
(Unaudited)
Wholesale Energy Gross Margin:
|
| Three Months Ended December 31, |
| Twelve Months Ended December 31, |
| ||||||||||||||
|
| 2005 |
| 2004 |
| Change |
| 2005 |
| 2004 |
| Change |
| ||||||
|
| (in millions) |
| (in millions) |
| ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
West |
| $ | 40 |
| $ | 45 |
| $ | (5 | ) | $ | 176 |
| $ | 161 |
| $ | 15 |
|
PJM |
| 66 |
| 86 |
| (20 | ) | 384 |
| 440 |
| (56 | ) | ||||||
Southeast |
| (3 | ) | 2 |
| (5 | ) | 27 |
| 15 |
| 12 |
| ||||||
MISO |
| 33 |
| 30 |
| 3 |
| 185 |
| 106 |
| 79 |
| ||||||
ERCOT |
| 19 |
| 16 |
| 3 |
| 76 |
| 70 |
| 6 |
| ||||||
East gas transport |
| (33 | ) | — |
| (33 | ) | (29 | ) | (2 | ) | (27 | ) | ||||||
West gas transport |
| (4 | ) | (2 | ) | (2 | ) | (26 | ) | (7 | ) | (19 | ) | ||||||
Other: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Billings to Texas Genco for support costs |
| — |
| 1 |
| (1 | ) | — |
| 15 |
| (15 | ) | ||||||
Other |
| (1 | ) | (2 | ) | 1 |
| (15 | ) | (18 | ) | 3 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Adjusted Plant Gross Margin |
| 117 |
| 176 |
| (59 | ) | 778 |
| 780 |
| (2 | ) | ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
California-related receivables and reserves |
| — |
| (33 | ) | 33 |
| 1 |
| (11 | ) | 12 |
| ||||||
Adjustment to October 2003 FERC settlement |
| — |
| — |
| — |
| — |
| (12 | ) | 12 |
| ||||||
Unrealized gains/losses on energy derivatives (1) |
| 64 |
| (9 | ) | 73 |
| (108 | ) | 48 |
| (156 | ) | ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Total Wholesale Energy Gross Margin |
| $ | 181 |
| $ | 134 |
| $ | 47 |
| $ | 671 |
| $ | 805 |
| $ | (134 | ) |
Wholesale Power Sales (2):
|
| Three Months Ended December 31, |
| Twelve Months Ended December 31, |
| ||||||||
|
| 2005 |
| 2004 |
| Change |
| 2005 |
| 2004 |
| Change |
|
|
| (gigawatt hours) |
| (gigawatt hours) |
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net power generation volumes |
| 8,596 |
| 7,799 |
| 797 |
| 33,709 |
| 32,562 |
| 1,147 |
|
Power purchase volumes |
| 736 |
| 278 |
| 458 |
| 1,838 |
| 1,840 |
| (2 | ) |
Power sales volumes |
| 9,332 |
| 8,077 |
| 1,255 |
| 35,547 |
| 34,402 |
| 1,145 |
|
(1) Includes ineffectiveness and derivatives not designated as hedges.
(2) These amounts include physically delivered volumes, hedge activity related to our power generation portfolio and volumes associated with our legacy trading activities. These amounts exclude (a) volumes associated with our discontinued operations, (b) generation from facilities where the generation is sold by a third party pursuant to a tolling agreement, (c) generation from facilities that are accounted for as an equity method investment and (d) physical transactions that are settled prior to delivery.
Reference is made to Reliant Energy, Inc.’s Annual Report
on Form 10-K for the year ended December 31, 2004.
Reliant Energy, Inc. and Subsidiaries
Net Generation Volumes (1) (2)
(MWh)
(Unaudited)
|
| Three Months Ended December 31, |
| Twelve Months Ended December 31, |
| ||||
By region: |
| 2005 |
| 2004 |
| 2005 |
| 2004 |
|
|
|
|
|
|
|
|
|
|
|
MISO |
| 1,390,934 |
| 1,273,307 |
| 5,953,391 |
| 5,231,314 |
|
|
|
|
|
|
|
|
|
|
|
PJM |
| 4,851,742 |
| 4,190,744 |
| 19,649,945 |
| 16,710,950 |
|
|
|
|
|
|
|
|
|
|
|
Southeast |
| 275,180 |
| 363,836 |
| 1,907,348 |
| 2,198,244 |
|
|
|
|
|
|
|
|
|
|
|
West |
| 1,134,179 |
| 2,006,245 |
| 5,653,446 |
| 7,437,753 |
|
|
|
|
|
|
|
|
|
|
|
ERCOT |
| 1,310,296 |
| 1,284,026 |
| 5,241,421 |
| 5,468,668 |
|
|
|
|
|
|
|
|
|
|
|
Total |
| 8,962,331 |
| 9,118,158 |
| 38,405,551 |
| 37,046,929 |
|
|
| Three Months Ended December 31, |
| Twelve Months Ended December 31, |
| ||||
By asset type: |
| 2005 |
| 2004 |
| 2005 |
| 2004 |
|
|
|
|
|
|
|
|
|
|
|
Base load |
| 8,119,561 |
| 7,876,021 |
| 33,300,879 |
| 30,984,940 |
|
|
|
|
|
|
|
|
|
|
|
Intermediate |
| 683,763 |
| 1,087,164 |
| 3,609,403 |
| 4,922,200 |
|
|
|
|
|
|
|
|
|
|
|
Peaking |
| 159,007 |
| 154,973 |
| 1,495,269 |
| 1,139,789 |
|
|
|
|
|
|
|
|
|
|
|
Total |
| 8,962,331 |
| 9,118,158 |
| 38,405,551 |
| 37,046,929 |
|
(1) These amounts exclude volumes associated with our discontinued operations.
(2) These amounts include (a) physically delivered volumes, (b) hedge activity related to our power generation portfolio, (c) generation of 325 GWh and 682 GWh for the three months ended December 31, 2005 and 2004, respectively, and 3,647 GWh and 2,388 GWh for the twelve months ended December 31, 2005 and 2004, respectively, from facilities where the generation is sold by a third-party pursuant to a tolling agreement and (d) generation from facilities that are accounted for as an equity method investment.
Reference is made to Reliant Energy, Inc.’s Annual Report
on Form 10-K for the year ended December 31, 2004.
Reliant Energy, Inc. and Subsidiaries
MISO Asset Summary
(Unaudited)
|
| Summer/Winter |
| Heat Rate |
| Q4 net generation volume (1) (MWh) |
| Q4 net capacity factor (2) (MWh) |
| ||||
Unit Name |
| Capacity (MW) |
| (MMBtu/MWh) |
| 2005 |
| 2004 |
| 2005 |
| 2004 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Base Load |
|
|
|
|
|
|
|
|
|
|
|
|
|
Avon Lake 7 & 9 |
| 721 |
| 9.8 |
| 822,843 |
| 822,136 |
| 52 | % | 52 | % |
New Castle 3-5 |
| 328 |
| 10.7 |
| 294,517 |
| 203,015 |
| 41 | % | 28 | % |
Niles 1-2 |
| 208 |
| 10.5 |
| 273,740 |
| 247,749 |
| 60 | % | 54 | % |
|
| 1,257 |
|
|
| 1,391,100 |
| 1,272,900 |
| 50 | % | 46 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Peaking |
|
|
|
|
|
|
|
|
|
|
|
|
|
Avon Lake 10 |
| 24 |
| 17.4 |
| (92 | ) | 462 |
| 0 | % | 1 | % |
New Castle A-B |
| 6 |
| 10.0 |
| 6 |
| 5 |
| 0 | % | 0 | % |
Niles A |
| 28 |
| 21.3 |
| (80 | ) | (60 | ) | 0 | % | 0 | % |
Shelby 1-8 |
| 356 |
| 9.8 |
| — |
| — |
| 0 | % | 0 | % |
|
| 414 |
|
|
| (166 | ) | 407 |
| 0 | % | 0 | % |
MISO Total |
| 1,671 |
|
|
| 1,390,934 |
| 1,273,307 |
| 38 | % | 35 | % |
|
| Summer/Winter |
| Heat Rate |
| Q4 YTD net generation volume (1) (MWh) |
| Q4 YTD net capacity factor (2) (MWh) |
| ||||
Unit Name |
| Capacity (MW) |
| (MMBtu/MWh) |
| 2005 |
| 2004 |
| 2005 |
| 2004 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Base Load |
|
|
|
|
|
|
|
|
|
|
|
|
|
Avon Lake 7 & 9 |
| 721 |
| 9.8 |
| 3,541,512 |
| 2,736,654 |
| 56 | % | 43 | % |
New Castle 3-5 |
| 328 |
| 10.7 |
| 1,314,907 |
| 1,496,868 |
| 46 | % | 52 | % |
Niles 1-2 |
| 208 |
| 10.5 |
| 1,015,015 |
| 985,666 |
| 56 | % | 54 | % |
|
| 1,257 |
|
|
| 5,871,434 |
| 5,219,188 |
| 53 | % | 47 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Peaking |
|
|
|
|
|
|
|
|
|
|
|
|
|
Avon Lake 10 |
| 24 |
| 17.4 |
| 918 |
| 2,940 |
| 0 | % | 1 | % |
New Castle A-B |
| 6 |
| 10.0 |
| 49 |
| 73 |
| 0 | % | 0 | % |
Niles A |
| 28 |
| 21.3 |
| (7 | ) | (176 | ) | 0 | % | 0 | % |
Shelby 1-8 |
| 356 |
| 9.8 |
| 80,997 |
| 9,289 |
| 3 | % | 0 | % |
|
| 414 |
|
|
| 81,957 |
| 12,126 |
| 2 | % | 0 | % |
MISO Total |
| 1,671 |
|
|
| 5,953,391 |
| 5,231,314 |
| 41 | % | 36 | % |
(1) Represents net generation assets only.
(2) Capacity factor is the ratio of the actual net electricity generated to the energy that could have been generated at continuous full-power operation during the period.
Reference is made to Reliant Energy, Inc.’s Annual Report
on Form 10-K for the year ended December 31, 2004.
Reliant Energy, Inc. and Subsidiaries
PJM Asset Summary
(Unaudited)
Unit Name |
| Summer/Winter |
| Heat Rate |
|
|
| Q4 net capacity factor (2) (MWh) |
| ||||
2005 |
| 2004 |
| 2005 |
| 2004 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Base Load |
|
|
|
|
|
|
|
|
|
|
|
|
|
Conemaugh 1-2 (16%) |
| 280 |
| 9.4 |
| 469,051 |
| 531,955 |
| 76 | % | 86 | % |
Cheswick 1 |
| 580 |
| 10.0 |
| 796,127 |
| 893,680 |
| 62 | % | 70 | % |
Deep Creek 1-2 (3) |
| — |
| — |
|
|
| 8,409 |
| 0 | % | 20 | % |
Elrama 1-4 |
| 465 |
| 11.3 |
| 571,907 |
| 394,107 |
| 56 | % | 38 | % |
Keystone 1-2 (16%) |
| 282 |
| 9.5 |
| 598,416 |
| 461,052 |
| 96 | % | 74 | % |
Piney Station 1-3 (3) |
| — |
| — |
|
|
| 16,679 |
| 0 | % | 27 | % |
Portland 1&2 |
| 400 |
| 10.1 |
| 567,222 |
| 406,181 |
| 64 | % | 46 | % |
Seward 1 |
| 520 |
| 9.7 |
| 525,477 |
| 472,936 |
| 46 | % | 41 | % |
Shawville 1-4 |
| 566 |
| 10.3 |
| 846,928 |
| 796,249 |
| 68 | % | 64 | % |
Titus 1-3 |
| 246 |
| 10.8 |
| 341,079 |
| 165,520 |
| 63 | % | 30 | % |
|
| 3,339 |
|
|
| 4,716,207 |
| 4,146,768 |
| 64 | % | 55 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Intermediate |
|
|
|
|
|
|
|
|
|
|
|
|
|
Brunot Island CCGT |
| 293 |
| 9.8 |
| 3,038 |
| (1,964 | ) | 0 | % | 0 | % |
Gilbert CCGT |
| 336 |
| 9.5 |
| (830 | ) | 3,603 |
| 0 | % | 0 | % |
Gilbert 9 |
| 168 |
| 11.1 |
| 6,350 |
| (389 | ) | 2 | % | 0 | % |
Hunterstown CCGT |
| 839 |
| 7.0 |
| 93,786 |
| 16,602 |
| 5 | % | 1 | % |
Portland 5 |
| 145 |
| 10.1 |
| 16,461 |
| 6,693 |
| 5 | % | 2 | % |
|
| 1,781 |
|
|
| 118,805 |
| 24,545 |
| 3 | % | 1 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Peaking |
|
|
|
|
|
|
|
|
|
|
|
|
|
Aurora 1-10 |
| 937 |
| 10.5 |
| 4,188 |
| 644 |
| 0 | % | 0 | % |
Blossburg 1 |
| 23 |
| 14.6 |
| 1,442 |
| 638 |
| 3 | % | 1 | % |
Brunot Island 1A-1C |
| 54 |
| 13.6 |
| (243 | ) | (63 | ) | 0 | % | 0 | % |
Ceredo 1-6 (4) |
| — |
| 12.1 |
| — |
| 505 |
| — |
| 0 | % |
Gilbert 1-4 |
| 111 |
| 15.1 |
| 1,122 |
| (32 | ) | 0 | % | 0 | % |
Glen Gardner 1-8 |
| 184 |
| 14.6 |
| 1,550 |
| (211 | ) | 0 | % | 0 | % |
Hamilton 1 |
| 23 |
| 14.8 |
| 170 |
| 103 |
| 0 | % | 0 | % |
Hunterstown 1-3 |
| 71 |
| 14.8 |
| 1,553 |
| 227 |
| 1 | % | 0 | % |
Mountain 1-2 |
| 47 |
| 14.3 |
| 2,400 |
| 401 |
| 2 | % | 0 | % |
Orrtanna 1 |
| 23 |
| 14.4 |
| 770 |
| — |
| 2 | % | 0 | % |
Portland 3-4 |
| 40 |
| 15.1 |
| 413 |
| 149 |
| 0 | % | 0 | % |
Sayreville A-D |
| 264 |
| 13.8 |
| 1,089 |
| 12,249 |
| 0 | % | 2 | % |
Shawnee 1 |
| 23 |
| 14.0 |
| 2 |
| — |
| 0 | % | 0 | % |
Shawville 5-7 |
| 6 |
| 10.2 |
| (19 | ) | (26 | ) | 0 | % | 0 | % |
Tolna 1-2 |
| 47 |
| 14.2 |
| 169 |
| 143 |
| 0 | % | 0 | % |
Titus 4-5 |
| 35 |
| 17.4 |
| 183 |
| 99 |
| 0 | % | 0 | % |
Warren 3 (5) |
| 68 |
| 12.8 |
| (110 | ) | (114 | ) | 0 | % | 0 | % |
Werner 1-4 |
| 252 |
| 13.8 |
| 2,031 |
| 4,564 |
| 0 | % | 1 | % |
Keystone 3-6 |
| 2 |
| 10.3 |
| 6 |
| 142 |
| 0 | % | 3 | % |
Conemaugh A-D |
| 2 |
| 9.7 |
| 14 |
| 13 |
| 0 | % | 0 | % |
|
| 2,212 |
|
|
| 16,730 |
| 19,431 |
| 0 | % | 0 | % |
PJM Total |
| 7,332 |
|
|
| 4,851,742 |
| 4,190,744 |
| 30 | % | 24 | % |
(1) Represents net generation assets only.
(2) Capacity factor is the ratio of the actual net electricity generated to the energy that could have been generated at continuous full-power operation during the period.
(3) Deep Creek 1-2 and Piney Station 1-3 were sold in April 2005.
(4) Ceredo was sold in December 2005. Prior to January 1, 2005, Ceredo did not qualify for discontinued operations.
(5) Warren 3 was mothballed in October 2004.
Reference is made to Reliant Energy, Inc.’s Annual Report
on Form 10-K for the year ended December 31, 2004.
Reliant Energy, Inc. and Subsidiaries
PJM Asset Summary
(Unaudited)
|
| Summer/Winter |
| Heat Rate |
| Q4 YTD net generation volume (1) (MWh) |
| Q4 YTD net capacity factor (2) (MWh) |
| ||||
Unit Name |
| Capacity (MW) |
| (MMBtu/MWh) |
| 2005 |
| 2004 |
| 2005 |
| 2004 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Base Load |
|
|
|
|
|
|
|
|
|
|
|
|
|
Conemaugh 1-2 (16%) |
| 280 |
| 9.4 |
| 2,128,927 |
| 2,142,413 |
| 87 | % | 87 | % |
Cheswick 1 |
| 580 |
| 10.0 |
| 2,889,720 |
| 3,174,840 |
| 57 | % | 62 | % |
Deep Creek 1-2 (3) |
| — |
|
|
| 13,776 |
| 33,504 |
| 17 | % | 20 | % |
Elrama 1-4 |
| 465 |
| 11.3 |
| 1,592,313 |
| 1,887,544 |
| 39 | % | 46 | % |
Keystone 1-2 (16%) |
| 282 |
| 9.5 |
| 2,245,923 |
| 2,047,909 |
| 91 | % | 83 | % |
Piney Station 1-3 (3) |
| — |
|
|
| 28,569 |
| 75,851 |
| 23 | % | 31 | % |
Portland 1&2 |
| 400 |
| 10.1 |
| 2,169,118 |
| 2,042,007 |
| 62 | % | 58 | % |
Seward 1 |
| 520 |
| 9.7 |
| 2,774,658 |
| 472,936 |
| 61 | % | 41 | % |
Shawville 1-4 |
| 566 |
| 10.3 |
| 3,198,870 |
| 3,119,613 |
| 65 | % | 63 | % |
Titus 1-3 |
| 246 |
| 10.8 |
| 1,273,181 |
| 1,122,860 |
| 59 | % | 52 | % |
|
| 3,339 |
|
|
| 18,315,055 |
| 16,119,477 |
| 62 | % | 59 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Intermediate |
|
|
|
|
|
|
|
|
|
|
|
|
|
Brunot Island CCGT |
| 293 |
| 9.8 |
| 8,037 |
| 3,229 |
| 0 | % | 0 | % |
Gilbert CCGT |
| 336 |
| 9.5 |
| 149,760 |
| 61,791 |
| 5 | % | 2 | % |
Gilbert 9 |
| 168 |
| 11.1 |
| 20,653 |
| 11,542 |
| 1 | % | 1 | % |
Hunterstown CCGT |
| 839 |
| 7.0 |
| 721,781 |
| 283,944 |
| 10 | % | 4 | % |
Sayreville 4-5 (4) |
| — |
| — |
| — |
| 388 |
| 0 | % | 0 | % |
Portland 5 |
| 145 |
| 10.1 |
| 56,238 |
| 38,808 |
| 4 | % | 3 | % |
|
| 1,781 |
|
|
| 956,469 |
| 399,702 |
| 6 | % | 3 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Peaking |
|
|
|
|
|
|
|
|
|
|
|
|
|
Aurora 1-10 |
| 937 |
| 10.5 |
| 309,742 |
| 52,819 |
| 4 | % | 1 | % |
Blossburg 1 |
| 23 |
| 14.6 |
| 4,274 |
| 1,982 |
| 2 | % | 1 | % |
Brunot Island 1A-1C |
| 54 |
| 13.6 |
| (251 | ) | 2,417 |
| 0 | % | 1 | % |
Ceredo 1-6 (5) |
| — |
| 12.1 |
| - |
| 1,550 |
| - |
| 0 | % |
Gilbert 1-4 |
| 111 |
| 15.1 |
| 3,428 |
| 1,044 |
| 0 | % | 0 | % |
Glen Gardner 1-8 |
| 184 |
| 14.6 |
| 8,611 |
| 4,636 |
| 1 | % | 0 | % |
Hamilton 1 |
| 23 |
| 14.8 |
| 1,434 |
| 2,774 |
| 1 | % | 1 | % |
Hunterstown 1-3 |
| 71 |
| 14.8 |
| 8,005 |
| 11,674 |
| 1 | % | 2 | % |
Mountain 1-2 |
| 47 |
| 14.3 |
| 8,214 |
| 3,084 |
| 2 | % | 1 | % |
Orrtanna 1 |
| 23 |
| 14.4 |
| 2,368 |
| 1,551 |
| 1 | % | 1 | % |
Portland 3-4 |
| 40 |
| 15.1 |
| 1,518 |
| 1,398 |
| 0 | % | 0 | % |
Sayreville A-D |
| 264 |
| 13.8 |
| 10,320 |
| 53,497 |
| 0 | % | 2 | % |
Shawnee 1 |
| 23 |
| 14.0 |
| 262 |
| 259 |
| 0 | % | 0 | % |
Shawville 5-7 |
| 6 |
| 10.2 |
| (26 | ) | (74 | ) | 0 | % | 0 | % |
Tolna 1-2 |
| 47 |
| 14.2 |
| 10,615 |
| 5,336 |
| 3 | % | 1 | % |
Titus 4-5 |
| 35 |
| 17.4 |
| 798 |
| 195 |
| 0 | % | 0 | % |
Wayne 1 (6) |
| — |
| — |
| — |
| 486 |
| 0 | % | 0 | % |
Warren 3 (7) |
| 68 |
| 12.8 |
| (444 | ) | 1,029 |
| 0 | % | 0 | % |
Werner 1-4 |
| 252 |
| 13.8 |
| 9,267 |
| 45,607 |
| 0 | % | 2 | % |
Keystone 3-6 |
| 2 |
| 10.3 |
| 250 |
| 439 |
| 1 | % | 2 | % |
Conemaugh A-D |
| 2 |
| 9.7 |
| 36 |
| 68 |
| 0 | % | 0 | % |
|
| 2,212 |
|
|
| 378,421 |
| 191,771 |
| 2 | % | 1 | % |
PJM Total |
| 7,332 |
|
|
| 19,649,945 |
| 16,710,950 |
| 30 | % | 26 | % |
(1) Represents net generation assets only.
(2) Capacity factor is the ratio of the actual net electricity generated to the energy that could have been generated at continuous full-power operation during the period.
(3) Deep Creek 1-2 and Piney Station 1-3 were sold in April 2005.
(4) Sayreville 4-5 of 232 MW was retired in February 2004.
(5) Ceredo was sold in December 2005. Prior to January 1, 2005, Ceredo did not qualify for discontinued operations.
(6) Wayne 1 of 66 MW was retired in May 2004.
(7) Warren 3 was mothballed in October 2004.
Reference is made to Reliant Energy, Inc.’s Annual Report
on Form 10-K for the year ended December 31, 2004.
Reliant Energy, Inc. and Subsidiaries
Southeast Asset Summary
(Unaudited)
|
| Summer/Winter |
|
|
|
|
|
|
|
|
|
|
|
|
| Average |
| Heat Rate |
| Q4 net generation volume (1)(MWh) |
| Q4 net capacity factor (2) (MWh) |
| ||||
Unit Name |
| Capacity (MW) |
| (MMBtu/MWh) |
| 2005 |
| 2004 |
| 2005 |
| 2004 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Base Load |
|
|
|
|
|
|
|
|
|
|
|
|
|
Sabine |
| 54 |
| 10.0 |
| 21,033 |
| 70,320 |
| 18 | % | 59 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Intermediate |
|
|
|
|
|
|
|
|
|
|
|
|
|
Indian River 1-3 |
| 587 |
| 10.5 |
| 112,117 |
| 158,381 |
| 9 | % | 12 | % |
Choctaw (3) |
| 800 |
| 6.9 |
| — |
| — |
| 0 | % | 0 | % |
|
| 1,387 |
|
|
| 112,117 |
| 158,381 |
| 4 | % | 5 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Peaking |
|
|
|
|
|
|
|
|
|
|
|
|
|
Osceola 1-3 |
| 470 |
| 11.0 |
| 64,219 |
| 56,842 |
| 6 | % | 5 | % |
Shady Hills |
| 474 |
| 10.8 |
| 48,988 |
| 62,396 |
| 5 | % | 6 | % |
Vandolah |
| 630 |
| 10.8 |
| 28,823 |
| 15,897 |
| 2 | % | 1 | % |
|
| 1,574 |
|
|
| 142,030 |
| 135,135 |
| 4 | % | 4 | % |
Southeast Total |
| 3,015 |
|
|
| 275,180 |
| 363,836 |
| 4 | % | 5 | % |
|
|
|
|
|
| Q4 YTD net generation volume (1) (MWh) |
| Q4 YTD net capacity factor (2) (MWh) |
| ||||
Unit Name |
|
|
|
|
| 2005 |
| 2004 |
| 2005 |
| 2004 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Base Load |
|
|
|
|
|
|
|
|
|
|
|
|
|
Sabine |
| 54 |
| 10.0 |
| 215,273 |
| 338,739 |
| 46 | % | 71 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Intermediate |
|
|
|
|
|
|
|
|
|
|
|
|
|
Indian River 1-3 |
| 587 |
| 10.5 |
| 659,772 |
| 928,701 |
| 13 | % | 18 | % |
Choctaw (3) |
| 800 |
| 6.9 |
| — |
| (5,088 | ) | 0 | % | 0 | % |
|
| 1,387 |
|
|
| 659,772 |
| 923,613 |
| 5 | % | 8 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Peaking |
|
|
|
|
|
|
|
|
|
|
|
|
|
Osceola 1-3 |
| 470 |
| 11.0 |
| 410,868 |
| 410,597 |
| 10 | % | 10 | % |
Shady Hills |
| 474 |
| 10.8 |
| 331,611 |
| 345,283 |
| 8 | % | 8 | % |
Vandolah |
| 630 |
| 10.8 |
| 289,824 |
| 180,012 |
| 5 | % | 3 | % |
|
| 1,574 |
|
|
| 1,032,303 |
| 935,892 |
| 7 | % | 7 | % |
Southeast Total |
| 3,015 |
|
|
| 1,907,348 |
| 2,198,244 |
| 7 | % | 8 | % |
(1) Represents net generation assets only.
(2) Capacity factor is the ratio of the actual net electricity generated to the energy that could have been generated at continuous full-power operation during the period.
(3) Choctaw was mothballed in May 2004.
Reference is made to Reliant Energy, Inc.’s Annual Report
on Form 10-K for the year ended December 31, 2004.
Reliant Energy, Inc. and Subsidiaries
West Asset Summary
(Unaudited)
|
| Summer/Winter |
|
|
|
|
|
|
|
|
|
|
|
|
| Average |
| Heat Rate (1) |
| Q4 net generation volume (1) (2) (MWh) |
| Q4 net capacity factor (1) (3) (MWh) |
| ||||
Unit Name |
| Capacity (1) (MW) |
| (MMBtu/MWh) |
| 2005 |
| 2004 |
| 2005 |
| 2004 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Base Load |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bighorn CCGT (4) |
| 598 |
| 7.2 |
| 680,925 |
| 597,785 |
| 52 | % | 45 | % |
El Dorado (5) |
| — |
| 7.2 |
| — |
| 504,222 |
| 0 | % | 98 | % |
|
| 598 |
|
|
| 680,925 |
| 1,102,007 |
| 52 | % | 60 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Intermediate |
|
|
|
|
|
|
|
|
|
|
|
|
|
Coolwater 1-2 |
| 146 |
| 10.5 |
| 2,732 |
| (265 | ) | 1 | % | 0 | % |
Coolwater 3-4 |
| 462 |
| 10.0 |
| 87,087 |
| 118,409 |
| 9 | % | 12 | % |
Etiwanda 3-4 |
| 640 |
| 10.0 |
| 227,429 |
| 8,309 |
| 16 | % | 1 | % |
Mandalay 1-2 |
| 430 |
| 9.5 |
| 108,476 |
| 151,382 |
| 11 | % | 16 | % |
Ormond Beach 1-2 |
| 1,516 |
| 9.6 |
| 27,117 |
| 626,403 |
| 1 | % | 19 | % |
|
| 3,194 |
|
|
| 452,841 |
| 904,238 |
| 6 | % | 13 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Peaking |
|
|
|
|
|
|
|
|
|
|
|
|
|
Ellwood |
| 54 |
| 13.3 |
| 225 |
| — |
| 0 | % | 0 | % |
Mandalay 3 |
| 130 |
| 15.8 |
| 188 |
| — |
| 0 | % | 0 | % |
|
| 184 |
|
|
| 413 |
| — |
| 0 | % | 0 | % |
West Total |
| 3,976 |
|
|
| 1,134,179 |
| 2,006,245 |
| 13 | % | 22 | % |
|
|
|
|
|
| Q4 YTD net generation volume (1) (2) (MWh) |
| Q4 YTD net capacity factor (1) (3) (MWh) |
| ||||
Unit Name |
|
|
|
|
| 2005 |
| 2004 |
| 2005 |
| 2004 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Base Load |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bighorn CCGT (4) |
| 598 |
| 7.2 |
| 2,946,536 |
| 2,337,758 |
| 56 | % | 49 | % |
El Dorado (5) |
| — |
| 7.2 |
| 711,160 |
| 1,501,110 |
| 70 | % | 73 | % |
|
| 598 |
|
|
| 3,657,696 |
| 3,838,868 |
| 61 | % | 62 | % |
Intermediate |
|
|
|
|
|
|
|
|
|
|
|
|
|
Coolwater 1-2 |
| 146 |
| 10.5 |
| 29,273 |
| 17,878 |
| 2 | % | 1 | % |
Coolwater 3-4 |
| 462 |
| 10.0 |
| 364,894 |
| 448,872 |
| 9 | % | 11 | % |
Etiwanda 3-4 |
| 640 |
| 10.0 |
| 725,252 |
| 212,821 |
| 13 | % | 4 | % |
Mandalay 1-2 |
| 430 |
| 9.5 |
| 349,027 |
| 670,671 |
| 9 | % | 18 | % |
Ormond Beach 1-2 |
| 1,516 |
| 9.6 |
| 524,716 |
| 2,248,643 |
| 4 | % | 17 | % |
|
| 3,194 |
|
|
| 1,993,162 |
| 3,598,885 |
| 7 | % | 13 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Peaking |
|
|
|
|
|
|
|
|
|
|
|
|
|
Ellwood |
| 54 |
| 13.3 |
| 1,083 |
| — |
| 0 | % | 0 | % |
Mandalay 3 |
| 130 |
| 15.8 |
| 1,505 |
| — |
| 0 | % | 0 | % |
|
| 184 |
|
|
| 2,588 |
| — |
| 0 | % | 0 | % |
West Total |
| 3,976 |
|
|
| 5,653,446 |
| 7,437,753 |
| 14 | % | 21 | % |
(1) Excludes Etiwanda 5 of 118 MW, which was retired in January 2004. Q4 YTD 2005 includes net generation from Ellwood and Mandalay 3 although the units were mothballed in November 2003 and not officially returned to service until April 2005. The net generation from Mandalay 3 and Ellwood was produced during the re-commissioning. Etiwanda 3 and 4 were also mothballed in November 2003 and returned to service in September 2004 and July 2004, respectively, under a reliability-must-run contract with the California Independent System Operator through the end of 2004.
(2) Represents net generation assets only.
(3) Capacity factor is the ratio of the actual net electricity generated to the energy that could have been generated at continuous full-power operation during the period.
(4) Bighorn CCGT began operations in February 2004.
(5) Sold our El Dorado investment in July 2005.
Reference is made to Reliant Energy, Inc.’s Annual Report
on Form 10-K for the year ended December 31, 2004.
Reliant Energy, Inc. and Subsidiaries
ERCOT Asset Summary
(Unaudited)
|
| Summer/Winter |
|
|
|
|
|
|
|
|
|
|
|
|
| Average |
| Heat Rate |
| Q4 net generation volume (1) (MWh) |
| Q4 net capacity factor (2) (MWh) |
| ||||
Unit Name |
| Capacity (MW) |
| (MMBtu/MWh) |
| 2005 |
| 2004 |
| 2005 |
| 2004 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Base Load |
|
|
|
|
|
|
|
|
|
|
|
|
|
Channelview |
| 830 |
| 6.1 |
| 1,310,296 |
| 1,245,954 |
| 71 | % | 68 | % |
Landfill Gas (3) |
| — |
| 10.5 |
| — |
| 38,072 |
| 0 | % | 66 | % |
ERCOT Total |
| 830 |
|
|
| 1,310,296 |
| 1,284,026 |
| 71 | % | 68 | % |
|
|
|
|
|
| Q4 YTD net generation volume (1)(MWh) |
| Q4 YTD net capacity factor (2) (MWh) |
| ||||
Unit Name |
|
|
|
|
| 2005 |
| 2004 |
| 2005 |
| 2004 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Base Load |
|
|
|
|
|
|
|
|
|
|
|
|
|
Channelview |
| 830 |
| 6.1 |
| 5,159,871 |
| 5,318,253 |
| 71 | % | 73 | % |
Landfill Gas (3) |
| — |
| 10.5 |
| 81,550 |
| 150,415 |
| 48 | % | 66 | % |
ERCOT Total |
| 830 |
|
|
| 5,241,421 |
| 5,468,668 |
| 70 | % | 73 | % |
(1) Represents net generation assets only.
(2) Capacity factor is the ratio of the actual net electricity generated to the energy that could have been generated at continuous full-power operation during the period.
(3) Landfill Gas assets were sold in July 2005.
Reference is made to Reliant Energy, Inc.’s Annual Report
on Form 10-K for the year ended December 31, 2004.
Reliant Energy, Inc. and Subsidiaries
Adjusted Net Debt - to - Adjusted EBITDA Ratio
(in millions, except ratio)
(Unaudited)
|
| December 31, 2005 |
| |
|
|
|
| |
Debt: |
|
|
| |
Senior secured revolver |
| $ | 383 |
|
Senior secured term loans |
| 552 | (1)(2) | |
Senior secured notes |
| 1,850 |
| |
Convertible senior subordinated notes |
| 275 |
| |
Orion Power 12% notes (3) |
| 448 |
| |
PEDFA fixed-rate bonds for Seward plant due 2036 |
| 500 |
| |
Channelview |
| 348 |
| |
Receivables facility |
| 450 |
| |
Warrants |
| (1 | ) | |
Other (4) |
| 1 |
| |
REMA operating leases (off-balance sheet) |
| 497 | (5) | |
Total debt and debt equivalents (6) |
| 5,303 |
| |
|
|
|
| |
Less: |
|
|
| |
Cash and cash equivalents |
| (88 | ) | |
Restricted cash |
| (27 | ) | |
Net margin deposits |
| (1,700 | ) | |
Adjusted Net Debt |
| $ | 3,488 |
|
|
|
|
| |
Adjusted EBIT |
| $ | 251 | (7) |
Adjusted depreciation and amortization |
| 446 | (7) | |
Adjusted EBITDA |
| 697 | (7)(8) | |
|
|
|
| |
REMA lease expense |
| 60 | (5)(7) | |
Total Adjusted EBITDA |
| $ | 757 | (7)(8) |
|
|
|
| |
Ratio |
| 4.6 |
|
(1) Excludes $638 million of debt related to NYC Discontinued Operations.
(2) Excludes an additional $300 million related to expected net cash proceeds from the sale of our NYC assets, as we have agreed to utilize all of the net unrestricted proceeds from the sale to pay down debt.
(3) Orion 12% notes includes purchase accounting adjustments of $48 million.
(4) Other subsidiary debt.
(5) For purposes of computing this ratio, the effects of these off-balance sheet items are included.
(6) Debt equivalents include off-balance sheet REMA lease of $497 million.
(7) Represents amounts for the rolling four quarters ended December 31, 2005.
(8) Excludes Discontinued Operations:
(a) NYC adjusted EBITDA of $10 million, which includes $239 million loss on disposition, and
(b) Ceredo adjusted EBITDA of $(27) million, which includes $27 million loss on disposition and
(c) European Energy adjusted EBITDA of $52 million.
Reference is made to Reliant Energy, Inc.’s Annual Report
on Form 10-K for the year ended December 31, 2004.
FOR ADDITIONAL INQUIRIES PLEASE CONTACT:
Dennis Barber
(713) 497-3042