Reliant Energy Announces Agreement for Customer Bill Credits, Increased Funding for Low-Income and Energy Efficiency Programs

HOUSTON, July 31 /PRNewswire-FirstCall/ -- Reliant Energy today announced that it will be providing Houston-area residential customers a credit of $25, if the Public Utility Commission approves the negotiated settlement also announced today, to reduce CenterPoint Energy rates.

In December 2005, the Public Utility Commission ordered CenterPoint Energy to undergo a rate proceeding to determine whether its existing rates were reasonable. Reliant Energy, along with other customer representatives, negotiated a settlement with CenterPoint Energy to achieve a $77.9 million package of rate reductions and other benefits. The settlement includes reduced transmission and distribution rates, $10 million per year in funding for low-income programs and $10 million per year in additional funding for energy efficiency programs in the Houston area.

Residential customers in the CenterPoint Energy service area, who have been served continuously by Reliant for the six months ending January 1, 2007, will see a credit of $25 in their February bill. Additional credits will be provided once a year for three years and will equal the reduced rate for transmission and distribution charges.

"This agreement provides substantial benefits to our Houston area customers," said Joel Staff, chairman and chief executive officer, Reliant Energy. "This is another example of Reliant working to reduce costs and provide value to its customers. In addition to lowering bills for all of our customers, we are also pleased to see substantial aid going to our most at- risk customers through increased funding for our CARE program, a low-income discount, and low-income weatherization programs."

Reliant Energy expects funding for its CARE energy assistance program to increase by approximately $2 million as a result of the settlement. In addition, at Reliant's request and with CenterPoint's agreement, $1 million will be provided to Rebuilding Together Houston to fund low-income energy efficiency programs. Rebuilding Together Houston is a non-profit organization that provides home repair services for low income, elderly and/or disabled Houston-area homeowners.

Reliant Energy, Inc. 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, small business and 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 across the United States. These strategically located generating assets utilize natural gas, fuel oil and coal. For more information, visit http://www.reliant.com/corporate .

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