Reliant Energy Reports 2008 Results

Reliant Energy, Inc. reported open EBITDA was $496 million for 2008, compared to $956 million for 2007. The decline was primarily due to lower retail contribution margin resulting from extraordinary market conditions in ERCOT in the second quarter combined with the financial impact of Hurricane Ike in the third quarter. Adjusted EBITDA was $835 million for 2008, compared to $882 million for 2007. Improvements in wholesale hedges and gains on sales of assets and emission and exchange allowances partially offset the decline in retail contribution margin. Free cash flow provided by continuing operations was $40 million for 2008, compared to $241 million for the same period in 2007. Lower retail contribution margin and higher environmental capital expenditures related to the installation of scrubbers at two generating stations are the primary drivers for the reduction in free cash flow.

Reliant Energy, Inc. reported open EBITDA of $94 million for the fourth quarter of 2008, compared to $203 million for the fourth quarter of 2007. The decline was primarily due to lower wholesale contribution margin primarily related to lower commodity prices and lower retail contribution margin. Adjusted EBITDA, which includes the effect of wholesale hedges and gains on sales of assets and emission and exchange allowances, was $220 million for the fourth quarter of 2008, compared to $193 million for the fourth quarter of 2007. Gains on sales of assets and an improvement in wholesale hedges were partially offset by the decline in contribution margins mentioned above.

The loss from continuing operations before income taxes for 2008 was $873 million, compared to income of $493 million for 2007. The 2008 GAAP results include net unrealized losses from energy derivatives of $743 million, a $37 million charge for western states litigation and similar settlements, credit-enhanced retail structure unwind costs of $66 million and a goodwill impairment charge of $305 million. The reported numbers for 2007 include net unrealized gains from energy derivatives of $445 million, a $22 million charge for western states litigation and similar settlements and a $73 million charge for debt extinguishments. Operating cash flow from continuing operations was $173 million for 2008, compared to $755 million for 2007.

The loss from continuing operations before income taxes for the fourth quarter of 2008 was $455 million, compared to income of $313 million for the fourth quarter of 2007. The 2008 GAAP results include net unrealized losses from energy derivatives of $177 million, credit-enhanced retail structure unwind costs of $61 million and a goodwill impairment charge of $305 million. The reported numbers for 2007 include net unrealized gains from energy derivatives of $277 million.

OUTLOOK

Reliant Energy’s outlook is based on forward commodity prices as of January 23, 2009 and excludes the retail energy segment contribution margin due to its announced sale. As previously announced, the Board of Directors is continuing a review of strategic alternatives to enhance stockholder value.

The outlook for open EBITDA is $358 million and $531 million for the years ending December 31, 2009 and 2010, respectively. The outlook for adjusted EBITDA, which includes the impact of wholesale hedges and gains on sales of assets and emission and exchange allowances, net is $292 million and $529 million for the same periods. The outlook for free cash flow provided by (used in) continuing operations is ($114) million and $200 million for the years ending December 31, 2009 and 2010, respectively.

Open EBITDA Reconciliation
($ millions)		2007A			2008A			2009E1			2010E1
Income (loss) from continuing operations before income taxes		$493			($873	)		($178	)		$24
Unrealized (gains) losses on energy derivatives		(445	)		743			(28	)		18
Western states litigation and similar settlements		22			37			---			---
Credit-enhanced retail structure unwind costs		---			66			---			---
Goodwill impairment		---			305			---			---
Debt extinguishments		73			1			---			---
Depreciation and amortization		424			337			313			314
Interest expense, net		315			219			185			173
Adjusted EBITDA		$882			$835			$292			$529
Wholesale hedges		100			(239	)		66			2
Sale of Northeast C&I derivative liability		---			56			---			---
Gains on sales of assets and emission and exchange allowances, net		(26	)		(156	)		---			---
Open EBITDA		$956			$496			$358			$531
1. Excludes retail energy segment.

Free Cash Flow from Continuing Operations Reconciliation
($ millions)		2007A			2008A			2009E1			2010E1
Operating cash flow from continuing operations		$755			$173			$281			$350
Western states litigation and similar settlements payments		57			34			---			---
Credit-enhanced retail structure unwind costs		---			66			---			---
Change in margin deposits, net		(297	)		96			(145	)		(18	)
Adjusted cash flow provided by continuing operations		$515			$369			$136			$332
Maintenance capital expenditures		(85	)		(87	)		(50	)		(68	)
Environmental capital expenditures and capitalized interest2		(104	)		(223	)		(153	)		(27	)
Emission and exchange allowances activity, net		(85	)		(19	)		(47	)		(37	)
Free cash flow provided by (used in) continuing operations		$241			$40			($114	)		$200
1. Excludes retail energy segment.
2. Estimate represents the low end of the range.

NON-GAAP FINANCIAL MEASURES

This press release and the attached financial tables include the following non-GAAP financial measures:

Retail gross margin

Retail contribution margin

Open energy gross margin

Open wholesale gross margin

Open wholesale contribution margin

EBITDA

Adjusted EBITDA

Open EBITDA

Adjusted cash flow provided by continuing operations

Free cash flow provided by continuing operations

Gross debt

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 furnished along with this press release. Certain factors that could affect GAAP financial measures are not accessible on a forward-looking basis, but could be material to future reported earnings and cash flows.

WEBCAST OF EARNINGS CONFERENCE CALL

Reliant Energy has scheduled its fourth quarter 2008 earnings conference call for Monday, March 2, 2009, at 8:00 a.m. CT. Interested parties may listen to a live audio broadcast of the conference call at www.reliant.com in the investors section. 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 also available at this Website address.

Reliant Energy, Inc. (NYSE:RRI) based in Houston, provides electricity and energy services to retail and wholesale customers in the United States. The company provides service to approximately 1.8 million retail electricity customers primarily in Texas, including residential and small business customers. Reliant also serves commercial, industrial, governmental and institutional customers in Texas and Illinois.

The company is one of the largest independent power producers in the nation with more than 14,000 megawatts of power generation capacity across the United States. These strategically located generating assets use natural gas, fuel oil and coal. For more information, visit http://www.reliant.com. Reliant Energy, Inc. routinely posts all important information on its web site.

This news release contains "forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are statements that contain projections, estimates or assumptions about the outcome of pending legal actions, our revenues, income, capital structure and other financial items, and our plans and objectives for future operations or about our future economic performance, transactions and dispositions, financings or offerings and approvals related thereto. 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.

Actual results may differ materially from those expressed or implied by forward-looking statements as a result of many factors or events, including, but not limited to, ongoing negotiations with Merrill Lynch, outcome of strategic alternatives review, regulatory approvals for the sale of our Texas retail business, legislative, regulatory and/or market 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 and other factors we discuss or refer to in the "Risk Factors” section of our most recent Annual Report on Form 10-K filed 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.

Reliant Energy, Inc. and Subsidiaries
Consolidated Statements of Operations
		Three Months Ended December 31,								Twelve Months Ended December 31,
			2008				2007				2008				2007
		(Unaudited)
		(thousands of dollars, except per share amounts)
Revenues:
Revenues (including $16,169, $20,665, $3,039 and $31,592 unrealized gains) (including $0, $87,278, $253,001 and $127,083 from affiliates)		$	2,576,145			$	2,653,016			$	12,553,210			$	11,208,724
Expenses:
Cost of sales (including $(193,114), $255,585, $(745,685) and $413,028 unrealized gains (losses)) (including $28, $67,336, $201,392 and $105,118 from affiliates)			2,351,375				1,898,670				11,411,289				8,656,827
Operation and maintenance			197,544				209,002				841,432				883,083
Selling, general and administrative (including $60,858, $0, $65,858 and $0 credit-enhanced retail structure unwind costs)			160,684				82,051				436,618				372,528
Western states litigation and similar settlements			-				-				37,467				22,000
Gains on sales of assets and emission and exchange allowances, net			(116,116	)			(7,203	)			(155,600	)			(25,699	)
Wholesale energy goodwill impairment			304,859				-				304,859				-
Depreciation and amortization			74,934				100,411				336,531				424,432
Total operating expense			2,973,280				2,282,931				13,212,596				10,333,171
Operating Income (Loss)			(397,135	)			370,085				(659,386	)			875,553
Other Income (Expense):
Income (loss) of equity investment, net			(1,402	)			611				1,198				4,686
Debt extinguishments			-				(190	)			(1,017	)			(72,779	)
Other, net			108				(2,080	)			4,727				4
Interest expense			(58,671	)			(65,919	)			(247,486	)			(349,199	)
Interest income			2,310				10,360				28,820				34,833
Total other expense			(57,655	)			(57,218	)			(213,758	)			(382,455	)
Income (Loss) from Continuing Operations Before Income Taxes			(454,790	)			312,867				(873,144	)			493,098
Income tax expense (benefit)			(14,733	)			94,087				(125,032	)			135,115
Income (Loss) from Continuing Operations			(440,057	)			218,780				(748,112	)			357,983
Income from discontinued operations			2,402				8,186				8,437				7,124
Net Income (Loss)		$	(437,655	)		$	226,966			$	(739,675	)		$	365,107
Basic Earnings Per Share:
Income (loss) from continuing operations		$	(1.26	)		$	0.64			$	(2.15	)		$	1.05
Income from discontinued operations			0.01				0.02				0.02				0.02
Net income (loss)		$	(1.25	)		$	0.66			$	(2.13	)		$	1.07
Diluted Earnings Per Share:
Income (loss) from continuing operations		$	(1.26	)		$	0.62			$	(2.15	)		$	1.01
Income from discontinued operations			0.01				0.02				0.02				0.03
Net income (loss)		$	(1.25	)		$	0.64			$	(2.13	)		$	1.04
Weighted Average Common Shares Outstanding (in thousands):
- Basic			350,020				344,540				347,823				342,467
- Diluted			350,020				354,163				347,823				352,791
Reference is made to Reliant Energy, Inc.'s Annual Report
on Form 10-K for the year ended December 31, 2008.

Reliant Energy, Inc. and Subsidiaries
Results of Operations by Segment - Adjusted and Open
(Unaudited)
		Three Months Ended December 31,													Twelve Months Ended December 31,
			2008					2007			Change					2008					2007			Change
		(millions of dollars)
Wholesale Energy:
Revenues		$	541				$	832			$	(291	)		$	3,598				$	3,430			$	168
Cost of sales			332					472				(140	)			2,129					2,268				(139	)
Wholesale hedges			(66	)				17				(83	)			(239	)				100				(339	)
Unrealized (gains) losses on energy derivatives			75					(87	)			162				17					(7	)			24
Open wholesale gross margin			218					290				(72	)			1,247					1,255				(8	)
Operation and maintenance			139					150				(11	)			591					639				(48	)
Bad debt expense			-					1				(1	)			1					(1	)			2
Open wholesale contribution margin			79					139				(60	)			655					617				38
Wholesale hedges			66					(17	)			83				239					(100	)			339
Unrealized gains (losses) on energy derivatives			(75	)				87				(162	)			(17	)				7				(24	)
Contribution margin, including wholesale hedges and unrealized gains/losses on energy derivatives (1)			70					209				(139	)			877					524				353
Retail Energy:
Revenues		$	2,036				$	1,870			$	166			$	9,159				$	8,173			$	986
Cost of sales			2,022					1,476				546				9,490					6,783				2,707
Unrealized (gains) losses on energy derivatives			102					(190	)			292				726					(438	)			1,164
Sale of Northeast C&I derivative liability			56					-				56				56					-				56
Retail gross margin			172					204				(32	)			451					952				(501	)
Operation and maintenance			57					59				(2	)			247					245				2
Selling and marketing			38					30				8				157					124				33
Bad debt expense			10					11				(1	)			54					79				(25	)
Retail contribution margin			67					104				(37	)			(7	)				504				(511	)
Unrealized gains (losses) on energy derivatives			(102	)				190				(292	)			(726	)				438				(1,164	)
Sale of Northeast C&I derivative liability			(56	)				-				(56	)			(56	)				-				(56	)
Contribution margin, including unrealized gains/losses on energy derivatives and sale of Northeast C&I derivative liability (1)			(91	)				294				(385	)			(789	)				942				(1,731	)
Other Operations:
Revenues		$	5				$	3			$	2			$	16				$	13			$	3
Cost of sales			-					-				-				-					-				-
Operation and maintenance			2					1				1				9					6				3
Other operations contribution margin (1)			3					2				1				7					7				-
Eliminations:
Revenues		$	(6	)			$	(52	)		$	46			$	(220	)			$	(407	)		$	187
Cost of sales			(3	)				(49	)			46				(208	)				(394	)			186
Operation and maintenance			(1	)				(2	)			1				(6	)				(7	)			1
Total			(2	)				(1	)			(1	)			(6	)				(6	)			-
Consolidated:
Open wholesale contribution margin		$	79				$	139			$	(60	)		$	655				$	617			$	38
Retail contribution margin			67					104				(37	)			(7	)				504				(511	)
Other operations contribution margin			3					2				1				7					7				-
Eliminations			(2	)				(1	)			(1	)			(6	)				(6	)			-
Total			147					244				(97	)			649					1,122				(473	)
Adjusted other general and administrative			(52	)	(2	)		(40	)			(12	)			(159	)	(2	)		(171	)			12
Income (loss) of equity investment, net			(2	)				1				(3	)			1					5				(4	)
Other, net			1					(2	)			3				5					-				5
Open EBITDA			94					203				(109	)			496					956				(460	)
Wholesale hedges			66					(17	)			83				239					(100	)			339
Sale of Northeast C&I derivative liability			(56	)				-				(56	)			(56	)				-				(56	)
Gains on sales of assets and emission and exchange allowances, net			116					7				109				156					26				130
Adjusted EBITDA			220					193				27				835					882				(47	)
Unrealized gains (losses) on energy derivatives			(177	)				277				(454	)			(743	)				445				(1,188	)
Western states litigation and similar settlements			-					-				-				(37	)				(22	)			(15	)
Credit-enhanced retail structure unwind costs			(61	)				-				(61	)			(66	)	(3	)		-				(66	)
Wholesale energy goodwill impairment			(305	)				-				(305	)			(305	)				-				(305	)
Debt extinguishments			-					(1	)			1				(1	)				(73	)			72
EBITDA			(323	)				469				(792	)			(317	)				1,232				(1,549	)
Depreciation and amortization			(75	)				(100	)			25				(337	)				(424	)			87
Interest expense			(59	)				(66	)			7				(248	)				(349	)			101
Interest income			2					10				(8	)			29					34				(5	)
Income (loss) from continuing operations before income taxes		$	(455	)			$	313			$	(768	)		$	(873	)			$	493			$	(1,366	)
(1) Segment profit and loss measure.
(2) Adjusted other general and administrative expense excludes costs related to the unwind of the credit-enhanced retail structure of $61 million and $66 million for the three and twelve months, respectively, ended December 31, 2008.
(3) Includes $5 million recorded during the third quarter of 2008.
Reference is made to Reliant Energy, Inc.'s Annual Report
on Form 10-K for the year ended December 31, 2008.

Reliant Energy, Inc. and Subsidiaries
Consolidated Balance Sheets
		December 31, 2008				December 31, 2007
ASSETS		(thousands of dollars)
Current Assets:
Cash and cash equivalents		$	1,109,141			$	754,962
Restricted cash			2,721				3,251
Accounts and notes receivable, principally customer, net of allowance of $34,843 and $36,724			1,120,644				1,082,746
Inventory			315,001				285,408
Derivative assets			1,171,189				663,049
Margin deposits			235,153				139,834
Accumulated deferred income taxes			246,233				114,559
Investment in and receivables from Channelview, net			58,703				83,253
Prepayments and other current assets			102,610				104,314
Current assets of discontinued operations			-				2,133
Total current assets			4,361,395				3,233,509
Property, plant and equipment, gross			6,696,932				6,852,170
Accumulated depreciation			(1,820,342	)			(1,629,953	)
Property, Plant and Equipment, net			4,876,590				5,222,217
Other Assets:
Goodwill, net			52,631				379,644
Other intangibles, net			387,271				405,338
Derivative assets			402,457				376,535
Prepaid lease			273,374				270,133
Accumulated deferred income taxes			98,461				70,410
Other ($29,012 and $29,016 accounted for at fair value)			182,974				234,014
Total other assets			1,397,168				1,736,074
Total Assets		$	10,635,153			$	10,191,800
LIABILITIES AND EQUITY
Current Liabilities:
Current portion of long-term debt and short-term borrowings		$	12,517			$	52,546
Accounts payable, principally trade			636,932				687,046
Derivative liabilities			1,838,971				885,346
Margin deposits			-				250
Other			453,806				426,839
Current liabilities of discontinued operations			2,952				-
Total current liabilities			2,945,178				2,052,027
Other Liabilities:
Derivative liabilities			752,442				473,516
Other			275,899				278,641
Long-term liabilities of discontinued operations			3,542				3,542
Total other liabilities			1,031,883				755,699
Long-term Debt			2,871,444				2,902,346
Commitments and Contingencies
Temporary Equity Stock-based Compensation			9,004				4,694
Stockholders' Equity:
Preferred stock; par value $0.001 per share (125,000,000 shares authorized; none outstanding)			-				-
Common stock; par value $0.001 per share (2,000,000,000 shares authorized; 349,812,537 and 344,579,508 issued)			111				106
Additional paid-in capital			6,238,639				6,215,512
Accumulated deficit			(2,375,201	)			(1,635,526	)
Accumulated other comprehensive loss			(85,905	)			(103,058	)
Total stockholders' equity			3,777,644				4,477,034
Total Liabilities and Equity		$	10,635,153			$	10,191,800
Reference is made to Reliant Energy, Inc.'s Annual Report
on Form 10-K for the year ended December 31, 2008.

Reliant Energy, Inc. and Subsidiaries
Consolidated Statements of Cash Flows
		Twelve Months Ended December 31,
			2008				2007
		(thousands of dollars)
Cash Flows from Operating Activities:
Net income (loss)		$	(739,675	)		$	365,107
Income from discontinued operations			(8,437	)			(7,124	)
Net income (loss) from continuing operations			(748,112	)			357,983
Adjustments to Reconcile Net Income (Loss) to Net Cash Provided by Operating
Activities:
Depreciation and amortization			336,531				424,432
Deferred income taxes			(171,540	)			118,631
Net changes in energy derivatives			836,867				(393,453	)
Amortization of deferred financing costs			8,239				50,294
Gains on sales of assets and emission and exchange allowances, net			(155,600	)			(25,699	)
Debt extinguishments			1,017				72,779
Income of equity investment, net			(1,198	)			(4,686	)
Western states litigation and similar settlements			3,467				-
Wholesale energy goodwill impairment			304,859				-
Other, net			(7,083	)			12,703
Changes in other assets and liabilities:
Accounts and notes receivable, net			(52,631	)			(25,731	)
Change in notes, receivables and payables with affiliates, net			3,687				(13,078	)
Inventory			(31,864	)			(21,863	)
Margin deposits, net			(95,569	)			296,531
Net derivative assets and liabilities			(31,700	)			(31,088	)
Western states litigation and similar settlements payments			-				(35,000	)
Accounts payable			(62,419	)			46,194
Other current assets			2,985				12,306
Other assets			10,625				(17,953	)
Taxes payable/receivable			17,590				(10,975	)
Other current liabilities			8,185				(45,713	)
Other liabilities			(3,502	)			(11,597	)
Net cash provided by continuing operations from operating activities			172,834				755,017
Net cash provided by discontinued operations from operating activities			9,861				6,726
Net cash provided by operating activities			182,695				761,743
Cash Flows from Investing Activities:
Capital expenditures			(310,462	)			(188,856	)
Proceeds from sales of assets, net			538,533				82,075
Proceeds from sales of emission and exchange allowances			42,458				6,815
Purchases of emission allowances			(60,986	)			(91,923	)
Restricted cash			530				6,674
Other, net			6,562				6,045
Net cash provided by (used in) continuing operations from investing activities			216,635				(179,170	)
Net cash provided by discontinued operations from investing activities			-				520
Net cash provided by (used in) investing activities			216,635				(178,650	)
Cash Flows from Financing Activities:
Payments of long-term debt			(57,704	)			(1,535,887	)
Proceeds from long-term debt			-				1,300,000
Increase in short-term borrowings and revolving credit facilities, net			-				6,554
Payments of financing costs			-				(31,245	)
Payments of debt extinguishments			(1,017	)			(72,779	)
Proceeds from issuances of stock			13,570				41,317
Net cash used in financing activities			(45,151	)			(292,040	)
Net Change in Cash and Cash Equivalents			354,179				291,053
Cash and Cash Equivalents at Beginning of Period			754,962				463,909
Cash and Cash Equivalents at End of Period		$	1,109,141			$	754,962
Free Cash Flow Reconciliation
(Unaudited)
		Twelve Months Ended December 31,
			2008				2007
		(millions of dollars)
Operating cash flow from continuing operations		$	173			$	755
Western states litigation and similar settlements payments			34				57
Credit-enhanced retail structure unwind costs			66				-
Change in margin deposits, net			96				(297	)
Adjusted cash flow provided by continuing operations			369				515
Capital expenditures			(310	)			(189	)
Proceeds from sales of emission and exchange allowances			42				7
Purchases of emission allowances			(61	)			(92	)
Free cash flow provided by continuing operations		$	40			$	241
Reference is made to Reliant Energy, Inc.'s Annual Report
on Form 10-K for the year ended December 31, 2008.

Reliant Energy, Inc. and Subsidiaries
Wholesale Energy Data
(Unaudited)
		Three Months Ended December 31,															Twelve Months Ended December 31,
		2008								2007							2008								2007
		GWh				% Economic (1)				GWh				% Economic (1)			GWh				% Economic (1)				GWh				% Economic (1)
Economic Generation (2) (3):
PJM Coal			5,185.6				70	%			5,785.3			78	%			21,288.3				73	%			23,886.2			82	%
MISO Coal			1,502.5				54	%			1,811.9			65	%			5,848.4				53	%			7,998.3			73	%
PJM/MISO Gas			183.5				2	%			395.1			5	%			1,362.4				4	%			1,584.2			5	%
West			601.0				10	%			501.0			7	%			2,553.9				10	%			3,711.8			13	%
Other			4.1				0	%			30.5			3	%			74.5				1	%			3,802.2			48	%
Total			7,476.7				28	%			8,523.8			33	%			31,127.5				30	%			40,982.7			39	%
Commercial Capacity Factor (4):
PJM Coal			88.2	%							85.1	%						86.6	%							82.4	%
MISO Coal			88.1	%							80.5	%						85.3	%							69.0	%
PJM/MISO Gas			89.4	%							92.5	%						90.6	%							91.2	%
West			93.0	%							90.2	%						93.7	%							95.5	%
Other			100.0	%							97.0	%						82.7	%							91.9	%
Total			88.6	%							84.8	%						87.1	%							82.2	%
Generation (3):		GWh								GWh							GWh								GWh
PJM Coal			4,573.4								4,924.5							18,437.8								19,677.1
MISO Coal			1,323.5								1,458.9							4,988.1								5,518.0
PJM/MISO Gas			164.1								365.3							1,234.8								1,444.0
West			559.2								452.0							2,393.2								3,543.9
Other			4.1								29.6							61.6								3,493.6
Total			6,624.3								7,230.3							27,115.5								33,676.6
Open Energy Unit Margin ($/MWh) (5):
PJM Coal		$	19.46							$	30.46						$	32.98							$	31.36
MISO Coal			12.84								29.47							22.25								29.18
PJM/MISO Gas			12.19								32.85							34.01								34.63
West			NM		(6)						NM		(6)					NM		(6)						5.64
Other			NM		(6)						33.78							16.23								6.87
Weighted average total		$	16.30							$	27.94						$	28.07							$	25.89
		Three Months Ended December 31,															Twelve Months Ended December 31,
			2008				2007			Change								2008				2007			Change
Open energy gross margin (7):		(in millions)															(in millions)
PJM Coal		$	89			$	150			$	(61	)					$	608			$	617			$	(9	)
MISO Coal			17				43				(26	)						111				161				(50	)
PJM/MISO Gas			2				12				(10	)						42				50				(8	)
West			-				(4	)			4							(1	)			20				(21	)
Other			-				1				(1	)						1				24				(23	)
Total			108				202				(94	)						761				872				(111	)
Other margin (8):
PJM Coal			36				14				22							120				56				64
MISO Coal			1				3				(2	)						19				14				5
PJM/MISO Gas			39				30				9							145				109				36
West			28				34				(6	)						167				141				26
Other			6				7				(1	)						35				63				(28	)
Total			110				88				22							486				383				103
Open wholesale gross margin			218				290				(72	)						1,247				1,255				(8	)
Operation and maintenance			(139	)			(150	)			11							(591	)			(639	)			48
Bad debt expense			-				(1	)			1							(1	)			1				(2	)
Open wholesale contribution margin			79				139				(60	)						655				617				38
Wholesale hedges
Power			(17	)			(47	)			30							(70	)			(206	)			136
Fuel			81				19				62							272				40				232
Tolling/Other			2				11				(9	)						37				66				(29	)
Total wholesale hedges			66				(17	)			83							239				(100	)			339
Unrealized gains (losses) on energy derivatives			(75	)			87				(162	)						(17	)			7				(24	)
Total wholesale energy contribution margin, including wholesale hedges and unrealized gains/losses on energy derivatives (9)		$	70			$	209			$	(139	)					$	877			$	524			$	353
(1) Represents economic generation (hours) divided by maximum generation hours (maximum plant capacity multiplied by 8,760 hours).
(2) Estimated generation at 100% plant availability based on an hourly analysis of when it is economical to generate based on the price of power, fuel, emission allowances and variable operating costs.
(3) Excludes generation related to power purchase agreements, including tolling agreements.
(4) Generation divided by economic generation.
(5) Represents open energy gross margin divided by generation.
(6) NM is not meaningful.
(7) Open energy gross margin is calculated using the power sales prices received by the plants less delivered spot fuel prices.
This figure excludes the effects of other margin, our wholesale hedges and unrealized gains/losses on energy derivatives.
(8) Other margin represents power purchase agreements, capacity payments, ancillary services revenues and selective commercial hedge strategies.
(9) Wholesale energy segment profit and loss measure.
Reference is made to Reliant Energy, Inc.'s Annual Report
on Form 10-K for the year ended December 31, 2008.

Reliant Energy, Inc. and Subsidiaries
PJM Coal and MISO Coal
(Unaudited)
		Capacity		Heat Rate		Q4 economic generation (GWh)				Q4 commercial capacity factor						Q4 generation (GWh)
Unit Name (1)		(MW)		(MMBtu/MWh)		2008		2007		2008			2007			2008		2007
Cheswick		580		10.0		673.1		749.8		93.6	%		97.7	%		630.2		732.6
Conemaugh (2)		280		9.4		583.8		604.5		60.4	%		94.6	%		352.6		572.0
Elrama		460		11.3		204.9		588.1		67.4	%		70.4	%		138.1		414.1
Keystone (2)		282		9.5		597.5		597.6		97.3	%		84.8	%		581.5		507.0
Portland		401		9.8		696.9		668.4		88.9	%		90.9	%		619.5		607.4
Seward		521		9.6		1,116.0		1,110.0		99.8	%		97.1	%		1,113.6		1,078.0
Shawville (2)		597		10.3		965.0		1,075.2		86.9	%		64.2	%		838.2		690.6
Titus		243		10.8		348.4		391.7		86.0	%		82.4	%		299.7		322.8
PJM Coal Total		3,364				5,185.6		5,785.3		88.2	%		85.1	%		4,573.4		4,924.5
		Capacity		Heat Rate		Q4 economic generation (GWh)				Q4 commercial capacity factor						Q4 generation (GWh)
Unit Name (1)		(MW)		(MMBtu/MWh)		2008		2007		2008			2007			2008		2007
Avon Lake		721		9.3		864.2		1,037.7		93.9	%		85.1	%		811.1		882.6
New Castle		328		10.6		331.3		414.2		95.6	%		89.6	%		316.7		371.2
Niles		216		10.5		307.0		360.0		63.7	%		57.0	%		195.7		205.1
MISO Coal Total		1,265				1,502.5		1,811.9		88.1	%		80.5	%		1,323.5		1,458.9
		Capacity		Heat Rate		Q4 YTD economic generation (GWh)				Q4 YTD commercial capacity factor						Q4 YTD generation (GWh)
Unit Name (1)		(MW)		(MMBtu/MWh)		2008		2007		2008			2007			2008		2007
Cheswick		580		10.0		2,602.6		3,537.9		94.0	%		82.2	%		2,446.1		2,906.7
Conemaugh (2)		280		9.4		2,311.6		2,397.9		81.7	%		88.9	%		1,888.2		2,130.9
Elrama		460		11.3		1,400.3		2,882.9		81.8	%		68.5	%		1,145.2		1,976.0
Keystone (2)		282		9.5		2,408.0		2,386.2		97.9	%		85.8	%		2,357.7		2,046.5
Portland		401		9.8		2,708.6		2,713.7		79.6	%		82.8	%		2,156.1		2,247.8
Seward		521		9.6		4,367.5		4,305.5		86.4	%		82.4	%		3,771.9		3,547.9
Shawville (2)		597		10.3		4,108.1		4,137.1		84.4	%		83.5	%		3,466.5		3,454.2
Titus		243		10.8		1,381.6		1,525.0		87.3	%		89.6	%		1,206.1		1,367.1
PJM Coal Total		3,364				21,288.3		23,886.2		86.6	%		82.4	%		18,437.8		19,677.1
		Capacity		Heat Rate		Q4 YTD economic generation (GWh)				Q4 YTD commercial capacity factor						Q4 YTD generation (GWh)
Unit Name (1)		(MW)		(MMBtu/MWh)		2008		2007		2008			2007			2008		2007
Avon Lake		721		9.3		3,296.2		4,701.0		86.3	%		62.1	%		2,844.3		2,919.3
New Castle		328		10.6		1,394.3		1,856.4		90.5	%		77.4	%		1,262.1		1,437.2
Niles		216		10.5		1,157.9		1,440.9		76.1	%		80.6	%		881.7		1,161.5
MISO Coal Total		1,265				5,848.4		7,998.3		85.3	%		69.0	%		4,988.1		5,518.0
(1) Unless otherwise indicated, the Company owns a 100% interest in each facility listed.
(2) The Company leases a 100% interest in the Shawville facility, a 16.67% interest in the Keystone facility and a 16.45% interest in the Conemaugh facility under facility interest lease agreements, which expire in 2026, 2034 and 2034, respectively.
Reference is made to Reliant Energy, Inc.'s Annual Report
on Form 10-K for the year ended December 31, 2008.

Reliant Energy, Inc. and Subsidiaries
PJM/MISO Gas
(Unaudited)
		Capacity		Heat Rate		Q4 economic generation (GWh)				Q4 commercial capacity factor						Q4 generation (GWh)
Unit Name (1)		(MW)		(MMBtu/MWh)		2008		2007		2008			2007			2008		2007
Aurora (2)		878		10.5		1.3		5.1		100.0	%		68.6	%		1.3		3.5
Blossburg		19		14.6		0.2		7.2		100.0	%		98.6	%		0.2		7.1
Brunot Island		289		10.4		-		-		0.0	%		0.0	%		-		-
Gilbert		536		11.0		1.3		23.1		100.0	%		28.6	%		1.3		6.6
Glen Gardner		160		14.6		0.6		0.2		100.0	%		0.0	%		0.6		-
Hamilton		20		14.8		-		0.2		0.0	%		100.0	%		-		0.2
Hunterstown		60		14.8		0.1		0.1		100.0	%		100.0	%		0.1		0.1
Hunterstown CCGT		810		7.0		177.8		334.8		89.2	%		97.3	%		158.6		325.8
Mountain		40		14.3		0.4		4.2		100.0	%		92.9	%		0.4		3.9
Orrtanna		20		14.4		-		0.2		0.0	%		100.0	%		-		0.2
Portland		169		11.2		0.8		3.1		87.5	%		100.0	%		0.7		3.1
Sayreville		224		13.8		0.8		7.9		100.0	%		84.8	%		0.8		6.7
Shawnee		20		14.0		-		-		0.0	%		0.0	%		-		-
Shawville 5-7 (3)		6		10.2		-		-		0.0	%		0.0	%		-		-
Titus		31		17.4		-		-		0.0	%		0.0	%		-		-
Tolna		40		14.2		0.1		0.1		100.0	%		100.0	%		0.1		0.1
Warren		68		12.8		-		-		0.0	%		0.0	%		-		-
Werner		212		13.8		0.1		6.0		0.0	%		85.0	%		-		5.1
Shelby		356		9.8		-		2.9		0.0	%		100.0	%		-		2.9
PJM/MISO Gas Total		3,958				183.5		395.1		89.4	%		92.5	%		164.1		365.3
		Capacity		Heat Rate		Q4 YTD economic generation (GWh)				Q4 YTD commercial capacity factor						Q4 YTD generation (GWh)
Unit Name (1)		(MW)		(MMBtu/MWh)		2008		2007		2008			2007			2008		2007
Aurora (2)		878		10.5		35.7		56.2		100.0	%		83.6	%		35.7		47.0
Blossburg		19		14.6		8.1		13.0		92.6	%		100.0	%		7.5		13.0
Brunot Island		289		10.4		2.2		8.8		100.0	%		93.2	%		2.2		8.2
Gilbert		536		11.0		38.1		73.3		100.0	%		58.7	%		38.1		43.0
Glen Gardner		160		14.6		3.6		6.1		88.9	%		83.6	%		3.2		5.1
Hamilton		20		14.8		0.4		2.2		100.0	%		100.0	%		0.4		2.2
Hunterstown		60		14.8		2.6		7.7		100.0	%		97.4	%		2.6		7.5
Hunterstown CCGT		810		7.0		1,194.1		1,273.4		90.6	%		93.1	%		1,081.6		1,185.4
Mountain		40		14.3		5.7		17.0		100.0	%		98.8	%		5.7		16.8
Orrtanna		20		14.4		0.5		4.1		100.0	%		100.0	%		0.5		4.1
Portland		169		11.2		11.1		14.2		99.1	%		95.8	%		11.0		13.6
Sayreville		224		13.8		45.0		19.3		72.2	%		68.4	%		32.5		13.2
Shawnee		20		14.0		0.1		0.3		100.0	%		100.0	%		0.1		0.3
Shawville 5-7 (3)		6		10.2		-		-		0.0	%		0.0	%		-		-
Titus		31		17.4		-		-		0.0	%		0.0	%		-		-
Tolna		40		14.2		1.8		6.4		100.0	%		100.0	%		1.8		6.4
Warren		68		12.8		-		-		0.0	%		0.0	%		-		-
Werner		212		13.8		9.6		20.6		84.4	%		84.5	%		8.1		17.4
Shelby		356		9.8		3.8		61.6		100.0	%		98.7	%		3.8		60.8
PJM/MISO Gas Total		3,958				1,362.4		1,584.2		90.6	%		91.2	%		1,234.8		1,444.0
(1) Unless otherwise indicated, the Company owns a 100% interest in each facility listed.
(2) Excludes generation during periods the unit operated under power purchase agreements.
(3) The Company leases a 100% interest in the Shawville facility under a facility interest lease agreement, which expires in 2026.
Reference is made to Reliant Energy, Inc.'s Annual Report
on Form 10-K for the year ended December 31, 2008.

Reliant Energy, Inc. and Subsidiaries
West and Other
(Unaudited)
		Capacity		Heat Rate		Q4 economic generation (GWh)				Q4 commercial capacity factor						Q4 generation (GWh)
Unit Name (1)		(MW)		(MMBtu/MWh)		2008		2007		2008			2007			2008		2007
Bighorn (2)		598		7.2		-		-		0.0	%		0.0	%		-		-
Coolwater		622		10.1		228.9		174.0		96.0	%		96.7	%		219.8		168.2
Ellwood (3)		54		13.3		-		-		0.0	%		0.0	%		-		-
Etiwanda (3)		640		10.0		-		-		0.0	%		0.0	%		-		-
Mandalay (3)		560		10.9		200.9		129.6		98.8	%		66.7	%		198.5		86.4
Ormond Beach		1,516		9.6		171.2		197.4		82.3	%		100.0	%		140.9		197.4
West Total		3,990				601.0		501.0		93.0	%		90.2	%		559.2		452.0
		Capacity		Heat Rate		Q4 economic generation (GWh)				Q4 commercial capacity factor						Q4 generation (GWh)
Unit Name (1)		(MW)		(MMBtu/MWh)		2008		2007		2008			2007			2008		2007
Channelview (4)		830		6.1		-		-		0.0	%		0.0	%		-		-
Choctaw		800		7.0		4.1		10.5		100.0	%		91.4	%		4.1		9.6
Indian River (3)		587		10.5		-		-		0.0	%		0.0	%		-		-
Osceola (3)		470		11.0		-		20.0		0.0	%		100.0	%		-		20.0
Other Total		2,687				4.1		30.5		100.0	%		97.0	%		4.1		29.6
		Capacity		Heat Rate		Q4 YTD economic generation (GWh)				Q4 YTD commercial capacity factor						Q4 YTD generation (GWh)
Unit Name (1)		(MW)		(MMBtu/MWh)		2008		2007		2008			2007			2008		2007
Bighorn (2)		598		7.2		582.8		1,437.0		94.8	%		99.9	%		552.7		1,435.8
Coolwater		622		10.1		592.2		698.1		92.9	%		96.5	%		550.1		673.7
Ellwood (3)		54		13.3		-		-		0.0	%		0.0	%		-		-
Etiwanda (3)		640		10.0		-		-		0.0	%		0.0	%		-		-
Mandalay (3)		560		10.9		581.9		510.2		97.0	%		85.6	%		564.3		436.7
Ormond Beach		1,516		9.6		797.0		1,066.5		91.1	%		93.5	%		726.1		997.7
West Total		3,990				2,553.9		3,711.8		93.7	%		95.5	%		2,393.2		3,543.9
		Capacity		Heat Rate		Q4 YTD economic generation (GWh)				Q4 YTD commercial capacity factor						Q4 YTD generation (GWh)
Unit Name (1)		(MW)		(MMBtu/MWh)		2008		2007		2008			2007			2008		2007
Channelview (4)		830		6.1		-		3,520.1		0.0	%		93.2	%		-		3,282.3
Choctaw		800		7.0		71.0		261.1		81.8	%		72.9	%		58.1		190.3
Indian River (3)		587		10.5		-		-		0.0	%		0.0	%		-		-
Osceola (3)		470		11.0		3.5		21.0		100.0	%		100.0	%		3.5		21.0
Other Total		2,687				74.5		3,802.2		82.7	%		91.9	%		61.6		3,493.6
(1) Unless otherwise indicated, the Company owns a 100% interest in each facility listed.
(2) The Bighorn facility was sold October 20, 2008.
(3) Excludes generation during periods the unit operated under power purchase agreements.
(4) Channelview was deconsolidated on August 20, 2007 and the Channelview facility was sold July 1, 2008.
Reference is made to Reliant Energy, Inc.'s Annual Report
on Form 10-K for the year ended December 31, 2008.

Reliant Energy, Inc. and Subsidiaries
Retail Energy Data
(Unaudited)
		Three Months Ended December 31,												Twelve Months Ended December 31,
			2008				2007			Change					2008				2007			Change
		(in millions)												(in millions)
Mass gross margin		$	180			$	138			$	42			$	365			$	719			$	(354	)
C&I gross margin			43				77				(34	)			106				244				(138	)
Market usage adjustments and contract terminations			(51	)			(11	)			(40	)			(20	)			(11	)			(9	)
Retail gross margin			172				204				(32	)			451				952				(501	)
Operation and maintenance			(57	)			(59	)			2				(247	)			(245	)			(2	)
Selling and marketing			(38	)			(30	)			(8	)			(157	)			(124	)			(33	)
Bad debt expense			(10	)			(11	)			1				(54	)			(79	)			25
Retail contribution margin			67				104				(37	)			(7	)			504				(511	)
Unrealized gains (losses) on energy derivatives			(102	)			190				(292	)			(726	)			438				(1,164	)
Sale of Northeast C&I derivative liability			(56	)			-				(56	)			(56	)			-				(56	)
Total retail energy contribution margin, including unrealized gains/losses on energy derivatives and sale of Northeast C&I derivative liability (1)		$	(91	)		$	294			$	(385	)		$	(789	)		$	942			$	(1,731	)
		Three Months Ended December 31,												Twelve Months Ended December 31,
			2008				2007								2008				2007
		(gigawatt hours)												(gigawatt hours)
Electricity Sales to End-Use Retail Customers:
Mass:
Residential:
Houston			2,822				2,679								12,700				13,516
Non-Houston			1,710				1,761								8,081				8,361
Small Business:
Houston			687				638								2,818				3,035
Non-Houston			313				317								1,416				1,433
Total Mass			5,532				5,395								25,015				26,345
C&I:
ERCOT (2)			8,794				9,438								36,901				36,926
Non-ERCOT			1,643				1,207								6,300				4,680
Total C&I			10,437				10,645								43,201				41,606
Market usage adjustments			(485	)			(179	)							(47	)			(67	)
Total			15,484				15,861								68,169				67,884
		Three Months Ended December 31,												Twelve Months Ended December 31,
			2008				2007								2008				2007
		(in thousands, metered locations)												(in thousands, metered locations)
Weighted Average Retail Customer Count:
Mass:
Residential:
Houston			982				1,027								992				1,056
Non-Houston			548				560								547				563
Small Business:
Houston			108				110								108				116
Non-Houston			42				37								40				36
Total Mass			1,680				1,734								1,687				1,771
C&I (2)			89				92								91				89
Total			1,769				1,826								1,778				1,860
		December 31,
			2008				2007
		(in thousands, metered locations)
Retail Customers:
Mass:
Residential:
Houston			975				1,016
Non-Houston			543				555
Small Business:
Houston			107				109
Non-Houston			43				38
Total Mass			1,668				1,718
C&I (2)			86				93
Total			1,754				1,811
(1) Retail energy segment profit and loss measure.
(2) Includes customers of the Texas 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, 2008.

Reliant Energy, Inc. and Subsidiaries
Capital Expenditures Forecast
(Unaudited)
		2009E			2010E
		(in millions)
Maintenance capital expenditures:
Wholesale energy		$	36		$	54
Other operations			14			14
			50			68
Environmental (1)			123			27
Capitalized interest			30			-
Total capital expenditures		$	203		$	95
(1) Estimate represents the low end of the range.
Reference is made to Reliant Energy, Inc.'s Annual Report
on Form 10-K for the year ended December 31, 2008.

Reliant Energy, Inc. and Subsidiaries
Gross Debt
(Unaudited)
		December 31, 2008
		(in millions)
Debt:
Senior secured revolver		$	-
Senior secured notes			667
Senior unsecured notes			1,300
Orion Power 12% notes (1)			417
PEDFA fixed-rate bonds for Seward plant			500
Warrants			-
Other (2)			-
Total GAAP debt			2,884
REMA operating leases (off-balance sheet)			443
Gross Debt (3)		$	3,327
(1) Orion 12% notes include purchase accounting adjustments of $17 million.
(2) Other subsidiary debt.
(3) Gross debt includes off-balance sheet REMA leases of $443 million.
Reference is made to Reliant Energy, Inc.'s Annual Report
on Form 10-K for the year ended December 31, 2008.