California Energy Commission Staff Recommends Approval of NRG Energy`s San Diego Region Repowering Project

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Thu Nov 12, 2009 6:56pm EST

This modern, lower-profile powerplant that will provide cleaner energy, is one
step closer to approval
PRINCETON, N.J.--(Business Wire)--
NRG Energy, Inc.`s (NYSE: NRG) Carlsbad Energy Center Project received an
approval recommendation from the California Energy Commission Staff in its Final
Staff Assessment issued today. The Staff`s endorsement marks a significant
permitting milestone that will advance modernization plans for NRG`s Encina
Power Station in Carlsbad, California. NRG will replace three existing steam
boiler units with a new, more efficient, 558-megawatt (MW) plant that will
significantly enhance the facility`s overall environmental performance and be
able to provide electricity to approximately 450,000 homes. 

The CEC`s Final Staff Assessment comes on the heels of the San Diego Air
Pollution Control District`s August release of its Final Determination of
Compliance, in which the Air District concluded that the Carlsbad Energy Center
Project will meet all ambient air quality standards and achieve public health
goals. 

"We appreciate the support we`ve received from the Energy Commission and the Air
District, and their recognition of the value our Carlsbad Energy Center Project
will bring to the San Diego region by helping to meet growing energy demand,"
said David Crane, President and CEO, NRG Energy, Inc. "The new facility not only
will provide rapid response to peak demand periods, such as warmer summer days,
but also will support the integration of renewable, intermittent energy
resources, such as solar and wind, that are being added to the California grid."


The Carlsbad Energy Center Project will produce fewer emissions per megawatt
generated; eliminate the need for over 200 million gallons per day of permitted
ocean water intake for cooling; and reduce Encina Power Station`s potable water
use. In addition to the environmental benefits, the new power plant will
increase the net output of Encina Power Station by more than 200 MW. 

According to the Final Staff Assessment, CEC staff concluded that the Carlsbad
Energy Center Project "would comply with all applicable laws, ordinances,
regulations and standards." It also determined "that significant adverse direct,
indirect, and cumulative impacts would not occur, and/or can be brought to a
level of less than significant." 

Originally constructed in 1954, Encina Power Station has five steam generating
units and one peaking combustion turbine. The proposed modernization would
replace the three oldest steam generating units with a highly efficient power
plant. Two generating units, built in 1974, will continue to operate as needed
to support regional demand. 

"The retirement of the older units at Encina Power Station will create important
environmental benefits, including a one-third reduction in both water usage and
greenhouse gas emissions on a per megawatt basis," said Steve Hoffmann, NRG`s
western regional president. "NRG is helping to meet California`s need for
reliable, efficient power in a way that meets both environmental and aesthetic
concerns by replacing the older units with a physically smaller, more efficient
power generating plant." 

The Carlsbad Energy Center Project will use air-cooled condensers instead of
ocean water for its cooling requirements, reducing intake from the adjacent Agua
Hedionda Lagoon, and emissions from the new plant will be well below
California`s newly imposed greenhouse gas standard. Constructed in a recessed
site that is approximately 30 feet below grade, the project is designed to have
a low visual profile and complement the future community and commercial
development of the Encina site. 

The permitting process will continue into spring 2010. Pending issuance of
necessary permits and contingent on securing a long-term sales contract for the
power, NRG anticipates bringing the facility online by 2013. The project will
create more than 350 construction jobs in the San Diego region and estimated tax
revenues of $4 to $5 million annually. 

The Carlsbad Energy Center Project is part of the Company`s RepoweringNRG
initiative-a multi-billion dollar program to develop new, efficient and
environmentally responsible power generation, including more natural gas, solar
and wind. 

About NRG

NRG Energy, Inc., a Fortune 500 company, owns and operates one of the country`s
largest and most diverse power generation portfolios. Headquartered in
Princeton, NJ, the Company`s power plants provide more than 24,000 megawatts of
generation capacity-enough to supply more than 20 million homes. NRG`s retail
business, Reliant Energy, serves more than 1.6 million residential, business,
commercial and industrial customers in Texas. A past recipient of the energy
industry`s highest honors-Platts Industry Leadership and Energy Company of the
Year awards, NRG is a member of the U.S. Climate Action Partnership (USCAP), a
group of business and environmental organizations calling for mandatory
legislation to reduce greenhouse gas emissions. More information is available at
www.nrgenergy.com. 

This news release contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. Such forward-looking statements are subject to certain
risks, uncertainties and assumptions and include NRG's expectations regarding
the Encina Power Station project and typically can be identified by the use of
words such as "will," "expect," "believe," and similar terms. Although NRG
believes that its expectations are reasonable, it can give no assurance that
these expectations will prove to have been correct, and actual results may vary
materially. Factors that could cause actual results to differ materially from
those contemplated above include, among others, general economic conditions,
permitting and regulatory obstacles, and construction delays. 

NRG undertakes no obligation to update or revise any forward-looking statements,
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 be considered in connection with information regarding
risks and uncertainties that may affect NRG`s future results included in NRG`s
filings with the Securities and Exchange Commission at www.sec.gov.

NRG Energy, Inc.
Media:
Meredith Moore, 609-524-4522
Lori Neuman, 609-524-4525
David Knox, 713-795-6106
or
Investors:
Nahla Azmy, 609-524-4526
David Klein, 609-524-4527
Erin Gilli, 609-524-4528 

Copyright Business Wire 2009

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