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EXHIBIT 99.2
[NRG LOGO]
NEWS
RELEASE
FOR IMMEDIATE RELEASE
NRG Energy Closes 5,633(1) MW LS Power Project Portfolio Acquisition
MINNEAPOLIS (JANUARY 30, 2001) - NRG Energy, Inc. (NYSE: NRG) yesterday closed
its acquisition of a 5,633(1) megawatt (MW) portfolio of operating projects and
projects in construction and advanced development from LS Power, LLC and its
partners.
"This acquisition of operating and greenfield development projects
allows NRG to expand its United States generation portfolio significantly," said
Craig A. Mataczynski, president of NRG North America. "We will use our expertise
in construction, finance and operations to integrate these projects into NRG and
create additional value for our shareholders."
NRG acquired net ownership interests totaling 1,697 MW in four
facilities in operation and construction. An additional two projects--totaling
2,336 MW--are expected to reach construction financial close early in 2001. The
remaining four projects, totaling 1,600 MW, are in advanced development. [See
Exhibit A] All facilities employ highly efficient, natural gas-fueled combustion
technology.
The facilities are located in Illinois, Mississippi, Florida and Texas,
and provide access to fast-growing electricity markets. These regions are
geographically diverse with very different weather and load characteristics. The
facilities integrate well with other NRG assets in North America and provide
significant power marketing opportunities.
NRG Energy is a leading global energy company primarily engaged in the
acquisition, development, construction, ownership and operation of power
generation facilities. At the end of 2000, NRG owned all or a portion of 63
power generation projects and its net ownership interest in these projects is
15,007 MW. The company's operations utilize such diverse fuel sources as natural
gas, oil, coal and coal seam methane, biomass, landfill gas, and hydro, as well
as refuse-derived fuel.
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(1) In order to preserve qualified facility status, ownership interest of Borger
(58 MW) was sold to a third party, thereby reducing project portfolio from 5,691
to 5,633 MW.
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Certain statements included in this news release are forward-looking
statements within the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. Forward-looking statements
above include, but are not limited to, projected growth and future financial
performance. Although NRG believes that its expectations are reasonable, it can
give no assurance that these expectations will prove to have been correct.
Factors that could cause NRG's actual results to differ materially from those
contemplated in the forward-looking statements above include, among others, the
following: factors affecting power generation operations such as unusual weather
conditions, generator outages, changes in fuel costs or availability and
environmental incidents; factors affecting the availability or cost of capital,
such as, for example, changes in interest rates or changes in investor
perceptions of the power generation industry, NRG or any of its subsidiaries;
workforce factors; the volatility of energy prices in a deregulated market
environment and the adverse impacts on the profitability of our generation
facilities that may result from the imposition of price limitations and other
mechanisms to address such volatility; and other business or investment
considerations that may be disclosed from time to time in NRG's Securities and
Exchange Commission filings or in other publicly disseminated written documents.
NRG undertakes no obligation to update or revise any forward-looking
statement, whether as a result of new information, future events or otherwise.
The foregoing review of factors that could cause NRG's actual results to differ
materially from those contemplated in the forward-looking statements included in
this news release should not be construed as exhaustive. For more information
regarding these risks and uncertainties, review NRG's filings with the
Securities and Exchange Commission.
More information on NRG Energy is available at www.nrgenergy.com.
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Contacts: Meredith Moore
Media Relations
612.373.8892
meredith.moore@nrgenergy.com
Rick Huckle
Investor Relations
612.373.8900
rick.huckle@nrgenergy.com
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EXHIBIT A
Project Portfolio
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LOCATION/POWER PLANT NET CURRENT STATUS
PROJECT MARKET CAPACITY OWNERSHIP FACILITY TYPE (OPERATION DATE)
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Mustang Texas/SPP 487 122 CCGT Operating
Batesville Mississippi/SERC 837 407(2) CCGT Operating
Kendall Illinois/MAIN 1,168 1,168 CCGT Construction (2/2002)
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Nelson Illinois/MAIN 1,168 1,168 CCGT Financing 2Q 2001(6/2003)
Pike Mississippi/SERC 1,168 1,168 CCGT Financing 3Q 2001 (6/2003)
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Kendall Expansion Illinois/MAIN 584 584 CCGT Development (2003)
Batesville Expansion Mississippi/SERC 292 146 CCGT Development (2002)
Hardee Florida/FRCC 510 510 Simple-cycle Development (2003)
Hardee Conversion to
Combined Cycle Florida/FRCC 360 360 CCGT Development (2005)
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TOTAL CURRENT PORTFOLIO 6,574 5,633
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(2) Subject to minor adjustment in accordance with the terms of the project
company's organizational documents.
CCGT = Combined Cycle Gas Turbine