NRG Energy Executes 10-Year Power Purchase Agreement With Southern California Edison

Princeton, NJ - NRG Energy, Inc. has executed a 10-year power purchase agreement with Southern California Edison Co. (SCE) to provide 550 megawatts (MW) of new generating capacity, enough to supply power to over 400,000 homes, at its existing El Segundo facility. This new gas-fueled capacity, located in a critical reliability area, is expected to be online at NRG's El Segundo Generating Station by June 1, 2011, in time to support the expected summer peak on the SCE and California Independent System Operator (CAISO) systems.

"NRG is glad to be a part of the solution to California's need for reliable and affordable energy," said David Crane, NRG's President and Chief Executive Officer. "This project is another milestone in our ‘RepoweringNRG' initiative and will build upon the successful collaboration between Southern California Edison and NRG on the Long Beach emergency repowering project last year. We are confident that our ‘RepoweringNRG' program, as illustrated by the El Segundo project, will make a major contribution to meeting America's next generation of energy infrastructure requirements."

NRG's El Segundo Generating Station currently provides up to 670 MW of power, or enough to supply over 500,000 homes. By replacing Units 1 and 2 that were retired in January 2003, the facility will be "repowered" using state-of-the art, rapid-response combined cycle technology in order to meet current and future energy demand. These new, highly efficient units can be on-line in 10 minutes, providing critically important back-up support for wind and other renewable power. They also offer significant environmental benefits including reduced emissions, and use 30% less natural gas than the prior units, helping California meet new greenhouse gas standards. Because the new units will use air-cooled condensers instead of an ocean water cooling system, the facility also has received support from the local environmental community.

In light of California's growing energy demands, as well as continued tight reserve margins in the Southern California portion of the grid, the California Public Utilities Commission (CPUC) authorized SCE to procure up to 2,000 MW of new generation capacity. NRG's contract at El Segundo, which is subject to CPUC approval, is part of the solution sought by the CAISO and CPUC, and proposed by SCE.

"We look forward to the opportunity to meet the energy needs and environmental demands of Southern California residents," said NRG's Steve Hoffmann, Western Regional President. "And in doing so, El Segundo Power also will continue with its commitment to being a good neighbor, providing jobs and delivering efficient, reliable energy to our customers."

SOURCE: NRG Energy