EXHIBIT 99.1
FOR FURTHER INFORMATION: Sandy Fruhman, Media (713) 207-3123
Marianne Paulsen, Investors (713) 207-6500
Dennis Barber, Investors (713) 207-3042
FOR IMMEDIATE RELEASE: April 29, 2002
RELIANT ENERGY REPORTS FIRST QUARTER 2002 EARNINGS
HOUSTON, TX. - Reliant Energy, Incorporated (NYSE: REI) today reported net
income for the first quarter of 2002, of $225 million, or $0.76 per diluted
share, compared to net income of $262 million, or $0.90 per diluted share, for
the first quarter of 2001. Reliant Energy's earnings reflect its approximately
83 percent interest in Reliant Resources (NYSE: RRI).
In the 2001 period, there were two unusual items which included a $62
million after-tax, non-cash gain from the implementation of Statement of
Financial Accounting Standards (SFAS) No. 133, "Accounting for Derivative
Instruments and Hedging Activities", and a $65 million after-tax, non-cash
charge related to the redesign of benefit plans for employees of Reliant
Resources.
The decrease in net income for the first quarter of 2002, was largely
driven by a decline in earnings from the company's wholesale energy segment due
to less favorable market conditions somewhat offset by earnings in the retail
energy segment. In addition, milder weather in the 2002 period negatively
impacted earnings from the natural gas distribution segment. Results for the
first quarter of 2002 also reflected the benefit of reduced interest expense
partially offset by a negative impact related to the ZENS securities. On January
1, 2002, the company discontinued amortizing goodwill in accordance with SFAS
No. 142, "Goodwill and Other Intangible Assets". During the first quarter of
2001, $21 million of goodwill amortization expense was recognized.
"This has been a very productive first quarter with the successful
implementation of retail electric competition in the Texas market," said Steve
Letbetter, chairman, president and chief executive officer. "Our business units
handled this transition very well and effectively implemented their strategies
for the restructured environment. Our performance, while negatively affected by
weather, a weaker economy and unfavorable market conditions, remained solid."
EARNINGS BEFORE INTEREST AND TAXES BY SEGMENT DETAILED
ELECTRIC OPERATIONS
During 2001, the company's electric operations segment reflected the
regulated electric utility business, including generation, transmission and
distribution, and retail electric sales. As of January 1, 2002, with the
opening of the Texas market to full retail electric competition, generation and
retail sales were deregulated. Retail electric sales involve the sale of
electricity and related services to end users of electricity and were included
as part of the bundled regulated
service prior to 2002. Retail electric sales are now reported as the retail
energy segment of Reliant Resources.
Beginning in 2002, Reliant Energy will report two new segments for what was
the former electric operations segment:
. Electric Generation, and
. Electric Transmission and Distribution
The previously regulated generation operations in Texas are being reported
in the new electric generation segment.
The electric transmission and distribution segment will report results from
two sources. This segment includes the regulated electric transmission and
distribution operations, which recovers the cost of its service through an
energy delivery charge, as well as impacts of generation-related stranded costs
recoverable by the regulated utility.
As a result of the implementation of deregulation and the corresponding new
segments, there are no meaningful comparisons for these segments against prior
periods.
Although the company's retail sales are now conducted by Reliant Resources,
retail customers remained regulated customers of Reliant Energy HL&P through the
date of their first meter reading in 2002. Sales during this transition period
produced EBIT (earnings before interest and taxes) of $14 million in the first
quarter of 2002, reflected in the electric operations segment. The company
expects to incur transition expenses during the remainder of the year and a
substantial portion of these earnings is expected to be offset.
ELECTRIC GENERATION
The new electric generation segment is comprised of over 14,000 MW of
electric generation located entirely in the state of Texas, and will be called
Texas Genco after the company's restructuring. This segment reported a $52
million loss before interest and taxes for the first quarter of 2002.
ELECTRIC TRANSMISSION & DISTRIBUTION
The new electric transmission & distribution segment reported EBIT of
$245 million for the first quarter of 2002. This reflected EBIT of $104 million
for the regulated electric transmission and distribution business, and EBIT of
$141 million associated with certain generation-related regulatory assets (ECOM,
or Exess Cost Over Market, true-up) recorded pursuant to the Texas restructuring
law as explained below.
Under the deregulation law, each power generator that is unbundled from an
integrated electric utility in Texas has an obligation to conduct state-mandated
capacity auctions of 15 percent of its capacity. In addition, under a master
separation agreement between Reliant Energy
and Reliant Resources, Texas Genco is contractually obligated to auction all
capacity in excess of the state-mandated capacity auctions. The auctions
conducted periodically between September 2001 and March 2002 were consummated at
prices below those assumed by the Texas Public Utility Commission's ECOM model.
Under the Texas restructuring law, a regulated utility may recover any
difference between market prices received through the auction process and the
Texas Public Utility Commission's earlier estimates of those market prices. This
difference, recorded as a regulatory asset, produced the $141 million of EBIT in
the first quarter of 2002.
In the transmission and distribution business, throughput declined 5
percent compared to the first quarter of 2001 due to reduced energy delivery in
the industrial sector. Customer growth was strong with an addition of 7,000
metered customers since December 2001, or approximately 2 percent growth on an
annualized basis.
NATURAL GAS DISTRIBUTION
The natural gas distribution segment reported EBIT of $110 million for
the first quarter of 2002 compared to EBIT of $137 million for the same period
of 2001. The amount of goodwill amortization expense recognized in the first
quarter of 2001 was $8 million. Usage in the natural gas distribution segment
declined 10 percent in the first quarter of 2002 compared to the same period in
2001. This decline was due to milder weather compared to the 2001 period as
well as to reduced consumption.
PIPELINES AND GATHERING
EBIT for the pipelines and gathering segment declined slightly to
$38 million for the first quarter of 2002 compared to $39 million for the same
period of 2001. The amount of goodwill amortization expense recognized in the
first quarter of 2001 was $4 million.
WHOLESALE ENERGY
Earnings before interest and taxes for the wholesale energy segment
were $114 million in the first quarter of 2002, compared to $229 million in the
same period of 2001. The decrease was primarily due to less favorable market
conditions, which resulted in lower operating margins from trading and
marketing, power generation, and ancillary services, partially offset by the
contribution from the Orion Power Holdings acquisition, which closed in
February. The segment also had increased operations and maintenance expenses and
higher depreciation expense, primarily due to the Orion Power acquisition, as
well as lower equity income from an investment in the El Dorado Energy plant in
Nevada.
The quarterly earnings comparison reflects a $38 million reserve
relating to our California receivables taken in the first quarter of 2001, as
well as a release and adjustment of California receivables reserves totaling $33
million in the first quarter of 2002. The segment also had lower emissions
expense in the first quarter of 2002. The Orion Power operations contributed $33
million of EBIT for the quarter.
EUROPEAN ENERGY
The European energy segment produced EBIT of $18 million in the
first quarter of 2002, compared to $21 million in the 2001 comparable period.
The decrease was primarily a result of reduced power generation margins, lower
ancillary services and district heating revenues and increased plant outages in
the first quarter of 2002. Partially offsetting these factors were a $19 million
net gain recognized in fuel expense related to the change in valuation of our
stranded cost contracts, improved trading margins and lower amortization
expense.
RETAIL ENERGY
The company's retail energy segment produced EBIT of $48 million in
the first quarter of 2002, compared to a loss of $3 million in the first quarter
of 2001. The Texas retail electricity market opened to full competition in
January 2002. At that time, the retail energy segment began serving
approximately 1.7 million electricity customers in the greater Houston, Texas
area.
OTHER OPERATIONS
The company's other operations, which include its thermal systems,
power systems, new ventures businesses, various real estate used in business
operations, remaining operations in Latin America and unallocated corporate
costs, reported a loss before interest and taxes for the first quarter of 2002
of $13 million. This compares to a loss before interest and taxes of $131
million for the same period of 2001. The 2001 results include a $101 million
non-cash charge
related to the redesign of benefit plans for employees of the company's
unregulated businesses in anticipation of the spin-off of Reliant Resources.
OUTLOOK FOR 2002
After the spin-off of Reliant Resources, CenterPoint Energy will include
primarily the regulated businesses of electric transmission and distribution,
natural gas distribution and pipelines and gathering. CenterPoint Energy will
also include the Texas power generation assets until at least 2004 when Reliant
Resources has an option to purchase these assets. Reliant Resources provides
competitive energy services activities including nonregulated power generation,
wholesale energy trading and marketing, retail energy services and wholesale
energy in Europe.
Assuming completion of the spin-off of Reliant Resources, 2002 earnings per
share for the segments that will comprise CenterPoint Energy are expected to be
in the range of $1.17 to $1.22, excluding its prior interests in Reliant
Resources. Reliant Resources, Inc. (NYSE: RRI), which completed its initial
public offering of approximately 20 percent of its shares in May 2001, expects
to achieve earnings of $1.80 to $2.00 per share.
WEBCAST OF EARNINGS CONFERENCE CALL
Reliant Energy has scheduled its first quarter 2002 earnings
conference call for Monday April 29, 2002, at 1:30 p.m. Central time.
Interested parties may listen to a live audio broadcast of the conference call
at www.reliantenergy.com/investors. A replay of the call can be accessed
approximately two hours after the completion of the call.
Reliant Energy, based in Houston, Texas, is an international energy
services and energy delivery company with approximately $42 billion in annual
revenue and total assets exceeding $35 billion. The company has nearly 31,000
megawatts of power generation in operation in the U.S. and is one of the largest
marketers of both power and natural gas in North America. The company also has
wholesale trading and marketing operations and nearly 3,500 megawatts of power
generation in Western Europe. Reliant Energy's retail marketing and
distribution operations serve nearly five million electricity and natural gas
customers in the U.S. More information on Reliant Energy can be found on its
web site www.reliantenergy.com.
*****
This news release includes forward-looking statements. Actual events and
results may differ materially from those projected. Factors that could affect
actual results include the timing and impact of future regulatory and
legislative decisions, effects of competition, weather variations, changes in
Reliant Energy's business plans, financial market conditions and other factors
discussed in Reliant Energy's filings with the Securities and Exchange
Commission.
- # # # -
Reliant Energy, Incorporated and Subsidiaries
Statements of Consolidated Income
(Thousands of Dollars)
(Unaudited)
Quarter Ended March 31,
------------------------------------
2002 2001
------------------------------------
Revenues:
Electric Operations $ 158,725 $ 1,389,766
Electric Generation 325,655 -
Electric Transmission & Distribution 466,027 -
Wholesale Energy 5,603,864 9,593,024
Natural Gas Distribution 1,179,873 2,322,694
Pipelines and Gathering 91,943 130,427
European Energy 535,001 247,879
Retail Energy 978,708 27,237
Other Operations 2,793 29,666
Eliminations (615,576) (431,117)
------------------------------------
Total 8,727,013 13,309,576
------------------------------------
Expenses:
Fuel and cost of gas sold 3,552,950 7,682,104
Purchased power 3,657,367 4,107,623
Operation and maintenance 654,032 722,320
Taxes other than income taxes 125,705 140,304
Depreciation and amortization 219,690 196,659
Other 745 2,305
------------------------------------
Total 8,210,489 12,851,315
------------------------------------
Operating Income 516,524 458,261
------------------------------------
Other (Expense) Income:
Unrealized (loss) gain on AOL Time Warner investment (217,597) 137,082
Unrealized gain (loss) on indexed debt securities 203,233 (135,047)
Income from equity investment of unconsolidated subsidiaries 3,784 12,606
Interest (154,056) (178,062)
Distribution on trust preferred securities (13,899) (13,900)
Minority Interest (a) (16,433) 291
Other - net 17,617 27,415
------------------------------------
Total (177,351) (149,615)
------------------------------------
Income Before Income Taxes, Cumulative Effect of Accounting Change
and Preferred Dividends 339,173 308,646
Income Tax Expense 113,821 107,718
------------------------------------
Income Before Cumulative Effect of Accounting Change
and Preferred Dividends 225,352 200,928
Cumulative Effect of Accounting Change, net of tax - 61,666
------------------------------------
Income Before Preferred Dividends 225,352 262,594
Preferred Dividends - 97
------------------------------------
Net Income Attributable to Common Stockholders $ 225,352 $ 262,497
====================================
Reference is made to the Notes to the Consolidated Financial Statements
contained in the Annual Report of Reliant Energy, Incorporated.
(a) Included in minority interest expense for the quarter ended March 31, 2002
is $16.5 million of minority interest expense related to approximately 17%
minority ownership of Reliant Resources, Inc. and its subsidiaries.
Reliant Energy, Incorporated and Subsidiaries
Selected Data From Statements of Consolidated Income
(Thousands of Dollars, Except Per Share Amounts)
(Unaudited)
Quarter Ended
March 31,
-------------------------
2002 2001
-------------------------
Basic Earnings Per Common Share
Income before cumulative effect of accounting change $ 0.76 $ 0.69
Cumulative effect of accounting change, net of tax - 0.22
Net income attributable to common stockholders $ 0.76 $ 0.91
Diluted Earnings Per Common Share
Income before cumulative effect of accounting change $ 0.76 $ 0.69
Cumulative effect of accounting change, net of tax - 0.21
Net income attributable to common stockholders $ 0.76 $ 0.90
Dividends per Common Share $ 0.375 $ 0.375
Weighted Average Common Shares Outstanding (000):
- Basic 296,222 287,336
- Diluted 297,166 290,173
EBIT BY SEGMENT
Electric Operations $ 14,258 $ 198,666
Electric Generation (51,746) -
Electric Transmission & Distribution 244,704 -
Natural Gas Distribution 109,675 137,425
Pipelines and Gathering 37,694 38,524
Wholesale Energy 114,105 229,051
European Energy 18,075 21,378
Retail Energy 48,573 (3,074)
Other Operations (12,555) (130,817)
Eliminations/other 778 9,164
------------------------
Total $523,561 $ 500,317
========================
Reference is made to the Notes to the Consolidated Financial Statements
contained in the Annual Report of Reliant Energy, Incorporated.
Reliant Energy, Incorporated and Subsidiaries
Results of Operations by Segment
(Millions of Dollars)
(Unaudited)
ELECTRIC
ELECTRIC ELECTRIC TRANSMISSION &
OPERATIONS GENERATION DISTRIBUTION ELIMINATIONS
---------------------------------------------------------
Quarter Ended March 31,
---------------------------------------------------------
2002
---------------------------------------------------------
RESULTS OF OPERATIONS:
Operating Revenues:
Operating revenues $ 159 $ 326 $325 $ (101)
ECOM true-up - - 141 -
----- ----- ---- -----------
Total Revenues 159 326 466 (101)
----- ----- ---- -----------
Operating Expenses:
Fuel and purchased power 76 229 - (60)
Operation and maintenance 59 96 122 (41)
Depreciation and amortization - 40 64 -
Taxes other than income 10 13 40 -
----- ----- ---- -----------
Total 145 378 226 (101)
----- ----- ---- ------------
Operating Income 14 (52) 240 -
----- ----- ---- -----------
Non-operating Income:
Other non-operating income - - 5 -
----- ----- ---- -----------
- - 5 -
----- ----- ---- -----------
Earnings Before Interest and Taxes $ 14 $ (52) $245 $ -
===== ===== ==== ===========
ELECTRIC
TOTAL OPERATIONS
--------------------------------------
Quarter Ended March 31, % Diff
2002 2001 Fav/(Unfav)
---------- ---------- -----------
RESULTS OF OPERATIONS:
Operating Revenues:
Operating revenues $ 709 $ 1,390 (49%)
ECOM true-up 141 - -
---------- ----------
Total Revenues 850 1,390 (39%)
---------- ----------
Operating Expenses:
Fuel and purchased power 245 786 69%
Operation and maintenance 236 248 5%
Depreciation and amortization 104 79 (32%)
Taxes other than income 63 91 31%
---------- ----------
Total 648 1,204 46%
---------- ----------
Operating Income 202 186 9%
---------- ----------
Non-operating Income:
Other non-operating income 5 13 (62%)
---------- ----------
5 13 (62%)
---------- ----------
Earnings Before Interest and Taxes $ 207 $ 199 4%
========== ==========
Quarter Ended March 31,
--------------------------------------
2002 2001
---------- ----------
ELECTRIC OPERATIONS OPERATING DATA:
ACTUAL MWH DELIVERED
Residential 4,473,465 3,951,158 13%
Commercial 3,975,248 3,968,602 -
Industrial 6,337,603 7,438,216 (15%)
Other 42,149 296,503 (86%)
---------- ----------
Total 14,828,465 15,654,479 (5%)
========== ==========
WEATHER (AVERAGE FOR SERVICE AREA):
Percentage of normal:
Cooling degree days 106% 100% 6%
Heating degree days 108% 110% (2%)
AVERAGE NUMBER OF METERED CUSTOMERS:
Residential 1,531,806 1,505,954 2%
Commercial 209,424 204,516 2%
Industrial 1,860 1,736 7%
Other - 28 (100%)
---------- ----------
Total 1,743,090 1,712,234 2%
========== ==========
PHYSICAL ELECTRIC GENERATION POWER SALES (MWH) 12,634,635 N/A
Reference is made to the Notes to the Consolidated Financial Statements
contained in the Annual Report of Reliant Energy, Incorporated.
Reliant Energy, Incorporated and Subsidiaries
Results of Operations by Segment
(Millions of Dollars)
(Unaudited)
NATURAL GAS DISTRIBUTION
--------------------------------------------
Quarter Ended March 31,
--------------------------- % Diff
2002 2001 Fav/(Unfav)
--------------------------------------------
RESULTS OF OPERATIONS:
Operating Revenues $ 1,180 $ 2,323 (49%)
Operating Expenses:
Natural gas 885 1,977 55%
Operation and maintenance 131 133 2%
Depreciation and amortization 30 36 17%
Other operating expenses 28 42 33%
---------- ----------
Total 1,074 2,188 51%
---------- ----------
Operating Income 106 135 (21%)
---------- ----------
Non-operating Income
Other Non-operating Income 4 2 100%
---------- ----------
4 2 100%
---------- ----------
Earnings Before Interest and Taxes $ 110 $ 137 (20%)
========== ==========
NATURAL GAS DISTRIBUTION OPERATING DATA:
THROUGHPUT DATA IN BCF
Residential and Commercial 132 153 (14%)
Industrial Sales 11 11 -
Transportation 15 15 -
Retail 121 132 (8%)
---------- ----------
Total Throughput 279 311 (10%)
========== ==========
WEATHER (AVERAGE FOR SERVICE AREA)
Percentage of normal:
Heating degree days 98% 106% (8%)
AVERAGE NUMBER OF CUSTOMERS:
Residential 2,729,517 2,706,175 1%
Commercial and Industrial Sales 250,818 259,395 (3%)
---------- ----------
Total 2,980,335 2,965,570 -
========== ==========
PIPELINES AND GATHERING
--------------------------------------------
Quarter Ended March 31,
--------------------------- % Diff
2002 2001 Fav/(Unfav)
--------------------------------------------
RESULTS OF OPERATIONS:
Operating Revenues $ 92 $ 130 (29%)
Operating Expenses:
Natural gas 7 45 84%
Operation and maintenance 34 28 (21%)
Depreciation and amortization 10 14 29%
Other operating expenses 4 4 -
---------- ----------
Total 55 91 40%
---------- ----------
Operating Income 37 39 (5%)
---------- ----------
Non-operating Income:
Other non-operating income 1 - -
---------- ----------
1 - -
---------- ----------
Earnings Before Interest and Taxes $ 38 $ 39 (3%)
========== ==========
PIPELINES AND GATHERING OPERATING DATA:
THROUGHPUT DATA IN BCF
Natural Gas Sales 5 6 (17%)
Transportation 238 246 (3%)
Gathering 71 70 1%
Elimination - (1) (100%)
---------- ----------
Total Throughput 314 321 (2%)
========== ==========
Reference is made to the Notes to the Consolidated Financial Statements
contained in the Annual Report of Reliant Energy, Incorporated.
Reliant Energy, Incorporated and Subsidiaries
Results of Operations by Segment
(Millions of Dollars)
(Unaudited)
WHOLESALE ENERGY
------------------------------------------
Year Ended March 31,
-------------------------- % Diff
2002 2001 Fav/(Unfav)
------------------------------------------
RESULTS OF OPERATIONS:
Operating Revenues $ 5,604 $ 9,593 (42%)
Operating Expenses:
Fuel and cost of gas sold 2,732 5,654 52%
Purchased power 2,545 3,547 28%
Operation and maintenance 156 133 (17%)
Depreciation and amortization 50 41 (22%)
Other 13 2 (550%)
-------- -------
Total 5,496 9,377 41%
Operating Income (Loss) 108 216 (50%)
-------- -------
Non-operating Income:
Income from equity investments of unconsolidated subsidiaries 4 13 (69%)
Other Non-Operating Income 2 - -
-------- -------
6 13 (54%)
-------- -------
Earnings Before Interest and Taxes $ 114 $ 229 (50%)
======== =======
WHOLESALE ENERGY MARGINS BY COMMODITY:
Gas $ 53 $ 79 (33%)
Power 275 306 (10%)
Oil (1) 4 (125%)
Other Commodities - 3 (100%)
-------- -------
$ 327 $ 392 (17%)
======== =======
WHOLESALE ENERGY MARGINS BY ACTIVITY:
Power Generation $ 280 $ 279 -
Trading, Marketing and Risk Management 47 113 (58%)
-------- -------
$ 327 $ 392 (17%)
======== =======
(116%)
425%
(58%)
TRADING MARGIN / VAR 5.22 12.56 (58%)
WHOLESALE ENERGY OPERATING DATA:
Physical natural gas Bcf volume 1,017 767 33%
Revenues per Mcf $ 2.45 $ 6.90 (64%)
Physical Wholesale Power Sales (000's MWH) 123,774 76,474 62%
Revenues per Mwh $ 24.86 $ 56.52 (56%)
Physical Oil Trading Revenues (000's Bbls) 900 486 85%
CONSOLIDATED VALUE AT RISK ANALYSIS:
(Assumes 95% confidence level and primarily a one day holding period using variance/covariance model)
2002 2001
------ ------
As of March 31, 13 5
Period Ended March 31:
Daily Average 9 9
Daily High 17 18
Daily Low 6 4
Reference is made to the Notes to the Consolidated Financial Statements
contained in the Annual Report of Reliant Energy, Incorporated.
Reliant Energy, Incorporated and Subsidiaries
Results of Operations by Segment
(Millions of Dollars)
(Unaudited)
EUROPEAN ENERGY
----------------------------------------
Quarter Ended March 31,
----------------------- % Diff
2002 2001 Fav/(Unfav)
----------------------------------------
RESULTS OF OPERATIONS:
Operating Revenues $ 535 $ 248 116%
Operating Expenses:
Fuel and purchased power 471 182 (159%)
Operation and maintenance 35 28 (25%)
Depreciation and amortization 13 19 32%
Other - 1 100%
------- ------
Total 519 230 (126%)
------- ------
Operating Income 16 18 (11%)
------- ------
Non-operating Income:
Other non-operating income 2 3 (33%)
------- ------
2 3 (33%)
------- ------
Earnings Before Interest and Taxes $ 18 $ 21 (14%)
======= ======
EUROPEAN ENERGY MARGINS BY ACTIVITY:
Power Generation $ 61 $ 65 (6%)
Trading, Marketing and Risk Management 3 1 200%
------- ------
$ 64 $ 66 (3%)
======= ======
EUROPEAN ENERGY OPERATING DATA:
Physical Wholesale Power Sales (000's MWH) 19,644 6,775 190%
Revenues per mwh $27.31 $31.48 (13%)
RETAIL ENERGY
Quarter Ended March 31,
----------------------
2002 2001
----------------------
RESULTS OF OPERATIONS:
Operating Revenues $ 979 $ 27
Operating Expenses:
Natural gas and purchased power 843 -
Operation and maintenance 69 28
Depreciation and amortization 5 2
Other 14 -
------- ------
Total 931 30
------- ------
Operating Income (Loss) 48 (3)
------- ------
Non-operating Income:
Other non-operating income - -
------- ------
- -
------- ------
Earnings Before Interest and Taxes $ 48 $ (3)
======= ======
RETAIL ENERGY OPERATING DATA:
GWh Sales data (1):
Residential 3,155
Small commercial 3,287
Large commercial, industrial and institutional 4,395
------
Total 10,837
======
(1) Gigawatt hours
Average Number of Customers
Residential 1,463
Small commercial 213
Large commercial, industrial and institutional 17
------
Total 1,693
======
OTHER OPERATIONS
-----------------------------------------
Quarter Ended March 31,
------------------------ % Diff
2002 2001 Fav/(Unfav)
-----------------------------------------
RESULTS OF OPERATIONS:
Operating Revenues $ 2 $ 30 (93%)
Operating Expenses 3 163 98%
------- ------
Operating Loss (1) (133) 99%
Non-operating Income:
Other non-operating (expense) income (12) 2 (700%)
------- ------
(12) 2 (700%)
------- ------
Earnings Before Interest and Taxes $ (13) $(131) 90%
====== ======
Reference is made to the Notes to the Consolidated Financial Statements
contained in the Annual Report of Reliant Energy, Incorporated.
Reliant Energy, Incorporated and Subsidiaries
Consolidated Trading Activities
(Million of Dollars)
(Unaudited)
Period Ended March 31,
-----------------------
2002 2001
----------- ----------
CONSOLIDATED TRADING, MARKETING AND RISK MANAGEMENT MARGINS REALIZED AND UNREALIZED:
Realized $(12) $ 102
Unrealized 68 16
----- -----
$ 56 $ 118
===== =====
CONSOLIDATED VALUE AT RISK ANALYSIS:
(Assumes 95% confidence level and primarily a one day holding period using variance/covariance model)
2002 2001
------ ------
As of March 31, 22 6
Period Ended March 31:
Daily Average 19 9
Daily High 28 18
Daily Low 15 4
[COMBINED WHOLESALE, RETAIL AND EUROPEAN VAR GRAPH FOR 2001 FIRST,
SECOND, THIRD AND FOURTH QUARTERS AND 2002 FIRST QUARTER - INTENTIONALLY OMITTED
FROM THIS EXHIBIT; SEE ACTUAL EARNINGS RELEASE FOR GRAPH]
Reference is made to the Notes to the Consolidated Financial Statements
contained in the Annual Report of Reliant Energy, Incorporated.