NRG Energy Inc. Raises $58.5 Million in Tax-Exempt Bond Issue for Dunkirk Generating Station Environmental Projects

NRG Energy Inc. (NYSE: NRG) closed on a $58,500,000 tax-exempt bond financing through its Dunkirk Power LLC subsidiary. The bonds were issued by the County of Chautauqua Industrial Development Agency and the funds will go toward adding additional state-of-the-art emissions control equipment on the Dunkirk Generating Station in Dunkirk, NY. The new equipment will dramatically reduce air emissions and installation is expected to be completed later this year.

“Successfully completing this financing, particularly in these challenging market conditions, is a strong testament to the shared commitment of NRG, Chautauqua County Executive Greg Edwards and Governor Paterson to finding innovative and efficient ways to achieve environmental improvements in the region,” said Drew Murphy, President of NRG’s Northeast Region. “We are pleased to be making significant additional investments in the Dunkirk facility to bring environmental benefits to the area, in addition to the continued exemplary local leadership, charitable giving and other contributions provided by our employees.”

The bonds have a maturity date of April 1, 2042, and are enhanced by a Letter of Credit provided by Bank of America under the NRG Corporate Revolver Facility. Bank of America underwrote the transaction and Dunkirk Power is responsible for making all interest and principal payments on the bonds.

Through this bond issue, as well as NRG’s emissions control project and the payment in lieu of taxes agreement executed last year with multiple local taxing jurisdictions, NRG and Dunkirk Generating Station remain large supporters of the local community, maintaining local jobs—including at least 145 full-time positions and more than 500 construction jobs on the emissions control project alone—and anchoring Dunkirk’s tax base with the plant’s significant annual property tax contributions currently totaling more than $10 million. Dunkirk Generating Station is a 540-megawatt facility capable of providing power to more than 400,000 homes.

Safe Harbor Disclosure

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 with respect to new peaking generation in Connecticut and typically can be identified by the use of words such as “will,” “expect,” “plan,” 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, hazards customary in the power industry, construction delays and permitting and regulatory obstacles.

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 herein 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.