/FIRST AND FINAL ADD -- NYW069 -- Reliant Energy, Inc. Earnings/
Reliant Energy, Inc. and Subsidiaries Consolidated Statements of
Operations (Thousands of Dollars, except per share amounts)
(Unaudited) Three Months Ended Twelve Months Ended December 31,
December 31, 2004 2003 2004 2003 Revenues: Revenues (including
$(16,197), $(4,549), $(38,456) and $(32,455) unrealized losses)
$2,090,887 $1,761,975 $8,731,181 $10,599,815 Trading margins 5,825
(4,061) 4,357 (49,004) Total Revenues 2,096,712 1,757,914 8,735,538
10,550,811 Expenses: Fuel and cost of gas sold (including $(702),
$(1,696), $63,896 and $(1,276) unrealized (losses) gains) 468,268
303,373 1,601,198 1,309,355 Purchased power (including $(130,271),
$7,748, $(277,856) and $1,790 unrealized (losses) gains) 1,382,612
897,727 5,288,027 6,822,181 Operation and maintenance 217,062
239,160 881,532 912,666 Selling and marketing 20,040 23,012 81,741
97,773 Bad debt expense 8,704 10,739 45,708 57,380 Total 2,096,686
1,474,011 7,898,206 9,199,355 Contribution Margin 26 283,903
837,332 1,351,456 Other general and administrative 47,050 78,191
198,723 273,301 Loss on sales of receivables -- 22,955 33,741
37,613 Accrual for payment to CenterPoint Energy, Inc. -- -- 1,600
46,700 Gain on sale of counterparty claim -- -- (30,000) --
Wholesale energy goodwill impairment -- -- -- 985,000 Depreciation
98,467 87,657 410,906 339,708 Amortization 12,196 12,741 65,905
57,424 Total 157,713 201,544 680,875 1,739,746 Operating (Loss)
Income (157,687) 82,359 156,457 (388,290) Other (Expense) Income:
Gains from investments, net 9,097 242 9,044 1,844 Loss of equity
investments, net (234) (1,035) (9,478) (1,652) Other, net 1,148
3,215 5,802 9,317 (Loss) Earnings Before Interest and Taxes
(147,676) 84,781 161,825 (378,781) Interest expense (170,744)
(133,613) (465,845) (447,260) Interest income 5,971 11,553 35,020
35,070 Loss from Continuing Operations Before Income Taxes
(312,449) (37,279) (269,000) (790,971) Income tax (benefit) expense
(124,473) (12,320) (96,930) 97,867 Loss from Continuing Operations
(187,976) (24,959) (172,070) (888,838) (Loss) Income from
discontinued operations before income taxes (74,726) 97,691 97,956
(341,151) Income tax expense (benefit) 1,657 40,199 (37,454) 88,073
(Loss) Income from discontinued operations (76,383) 57,492 135,410
(429,224) (Loss) Income Before Cumulative Effect of Accounting
Changes (264,359) 32,533 (36,660) (1,318,062) Cumulative effect of
accounting changes, net of tax -- -- 7,290 (24,055) Net (Loss)
Income $(264,359) $32,533 $(29,370) $(1,342,117) Basic (Loss)
Earnings Per Share: Loss from continuing operations $(0.63) $(0.08)
$(0.58) $(3.03) (Loss) income from discontinued operations (0.25)
0.19 0.46 (1.46) Cumulative effect of accounting changes, net of
tax -- -- 0.02 (0.08) Net (Loss) Income $(0.88) $0.11 $(0.10)
$(4.57) Diluted (Loss) Earnings Per Share: Loss from continuing
operations $(0.63) $(0.08) $(0.58) $(3.03) (Loss) income from
discontinued operations (0.25) 0.19 0.46 (1.46) Cumulative effect
of accounting changes, net of tax -- -- 0.02 (0.08) Net (Loss)
Income $(0.88) $0.11 $(0.10) $(4.57) Weighted Average Common Shares
Outstanding (in thousands): - Basic 298,979 295,262 297,527 293,655
- Diluted 298,979 295,262 297,527 293,655 Reference is made to
Reliant Energy, Inc.'s Current Report on Form 8-K dated November
18, 2004. Information contained in this report is subject to
adjustment resulting from further review and the obtaining of
additional information that impacts the consolidated financial
statements. Reliant Energy, Inc. and Subsidiaries Results of
Operations by Segment (Millions of Dollars) (Unaudited) As Reported
Three Months Ended December 31, 2004 Retail Wholesale Other Elimin-
Consolidated Energy Energy Operations ations Revenues: Revenues
$1,466 $721 $- $(96) $2,091 Trading margins - 6 - - 6 Total 1,466
727 - (96) 2,097 Operating Expenses: Fuel and cost of gas sold -
469 - - 469 Purchased power 1,418 60 - (96) 1,382 Gross margin 48
198 - - 246 Operation and maintenance 49 169 - - 218 Selling and
marketing 20 - - - 20 Bad debt expense 9 (1) - - 8 Contribution
margin $(30) $30 $- $- - Other general and administrative 47
Depreciation and amortization 111 Total 158 Operating loss (158)
Gains from investments, net 9 Other, net 1 Loss before interest and
income taxes (148) Interest expense (171) Interest income 6 Loss
from continuing operations before income taxes (313) Income tax
benefit (125) Loss from continuing operations (188) Loss from
discontinued operations (76) Net Loss $(264) Adjustments Three
Months Ended December 31, 2004 Retail Wholesale Other Elimin-
Consolidated Energy Energy Operations ations Gross Margin (1)
Adjustments: Gains recorded prior to 2003 to be realized /collected
in current period $5 $- $- $- $5 Changes in California- related
receivables and reserves - 33 - - 33 Non-trading unrealized energy
derivative losses 129 18 - - 147 Total gross margin adjustments 134
51 - - 185 Operating Expenses Adjustments: Operation and
maintenance adjustment - severance (1) - - - (1) Other general and
administrative adjustment - severance (1) Other general and
administrative adjustment - restructuring costs associated with
lease on corporate headquarters (2) Gain on sale of investment (9)
Interest income adjustment - California-related interest income (3)
Income tax expense - tax adjustments, net 70 Adjusted Three Months
Ended December 31, 2004 Retail Wholesale Other Elimin- Consolidated
Energy Energy Operations ations Adjusted gross margin (1) $182 $249
$- $- $431 Operating Expenses: Adjusted operation and maintenance
48 169 - - 217 Selling and marketing 20 - - - 20 Bad debt expense 9
(1) - - 8 Adjusted contribution margin $105 $81 $- $- 186 Adjusted
other general and administrative 44 Depreciation and amortization
111 Total 155 Adjusted operating income 31 Adjusted gain from
investments, net - Other, net 1 Adjusted earnings before interest
and income taxes 32 Interest expense (171) Adjusted interest income
3 Adjusted loss from continuing operations before income taxes
(136) Adjusted income tax benefit (55) Adjusted loss from
continuing operations (81) Loss from discontinued operations (76)
Adjusted Net Loss $(157) (1) Revenues less fuel and cost of gas
sold and purchased power. Reference is made to Reliant Energy,
Inc.'s Current Report on Form 8-K dated November 18, 2004. Reliant
Energy, Inc. and Subsidiaries Results of Operations by Segment
(Millions of Dollars) (Unaudited) As Reported Twelve Months Ended
December 31, 2004 Retail Wholesale Other Elimin- Consolidated
Energy Energy Operations ations Revenues: Revenues $6,066 $3,005 $-
$(340) $8,731 Trading margins - 5 - - 5 Total 6,066 3,010 - (340)
8,736 Operating Expenses: Fuel and cost of gas sold - 1,602 - -
1,602 Purchased power 5,337 291 - (340) 5,288 Gross margin 729
1,117 - - 1,846 Operation and maintenance 222 660 - - 882 Selling
and marketing 82 - - - 82 Bad debt expense 48 (3) - - 45
Contribution margin $377 $460 $- $- 837 Other general and
administrative 198 Loss on sales of receivables 34 Accrual for
payment to CenterPoint Energy, Inc. 2 Gain on sale of counterparty
claim (30) Depreciation and amortization 477 Total 681 Operating
income 156 Gain from investments, net 9 Loss of equity investments,
net (9) Other, net 6 Earnings before interest and income taxes 162
Interest expense (466) Interest income 35 Loss from continuing
operations before income taxes (269) Income tax benefit (97) Loss
from continuing operations (172) Income from discontinued
operations 136 Cumulative effect of accounting change, net of tax 7
Net Loss $(29) Adjustments Twelve Months Ended December 31, 2004
Retail Wholesale Other Elimin- Consolidated Energy Energy
Operations ations Gross Margin (1) Adjustments: Gains recorded
prior to 2003 to be realized/ collected in current period $21 $- $-
$- $21 Changes in California- related receivables and reserves - 11
- - 11 Non-trading unrealized energy derivative losses 272 (20) - -
252 Adjustment to October 2003 FERC settlement - 12 - - 12 Total
gross margin adjustments 293 3 - - 296 Operating Expenses
Adjustments: Operation and maintenance adjustment - severance (6)
(11) - - (17) Selling and marketing adjustment - severance (2) - -
- (2) Other general and administrative adjustment - severance (12)
Other general and administrative adjustment - restructuring costs
associated with lease on corporate headquarters (13) Accrual for
payment to CenterPoint Energy, Inc. adjustment (2) Gain on sale of
counterparty claim 30 Depreciation and amortization adjustment -
accelerated depreciation on retired generation assets (12)
Depreciation and amortization adjustment - equipment impairment
related to turbines and generators (16) Gain on sale of investment
(9) Interest income adjustment - California-related interest income
(16) Income tax expense - tax adjustments, net 122 Adjusted Twelve
Months Ended December 31, 2004 Retail Wholesale Other Elimin-
Consolidated Energy Energy Operations ations Adjusted gross margin
(1) $1,022 $1,120 $- $- $2,142 Operating Expenses: Adjusted
operation and maintenance 216 649 - - 865 Adjusted selling and
marketing 80 - - - 80 Bad debt expense 48 (3) - - 45 Adjusted
contribution margin $678 $474 $- $- 1,152 Adjusted other general
and administrative 173 Loss on sales of receivables 34 Adjusted
depreciation and amortization 449 Total 656 Adjusted operating
income 496 Adjusted gain from investments, net - Loss of equity
investments, net (9) Other, net 6 Adjusted earnings before interest
and income taxes 493 Interest expense (466) Adjusted interest
income 19 Adjusted income from continuing operations before income
taxes 46 Adjusted income tax expense 25 Adjusted income from
continuing operations 21 Income from discontinued operations 136
Cumulative effect of accounting change, net of tax 7 Adjusted Net
Income $164 (1) Revenues less fuel and cost of gas sold and
purchased power. Reference is made to Reliant Energy, Inc.'s
Current Report on Form 8-K dated November 18, 2004. Reliant Energy,
Inc. and Subsidiaries Results of Operations by Segment (Millions of
Dollars) (Unaudited) As Reported Three Months Ended December 31,
2003 Retail Wholesale Other Elimin- Consolidated Energy Energy
Operations ations Revenues: Revenues $1,178 $639 $1 $(56) $1,762
Trading margins - (4) - - (4) Total 1,178 635 1 (56) 1,758
Operating Expenses: Fuel and cost of gas sold - 304 - - 304
Purchased power 883 70 - (56) 897 Gross margin 295 261 1 - 557
Operation and maintenance 60 180 - - 240 Selling and marketing 23 -
- - 23 Bad debt expense 13 (3) - - 10 Contribution margin $199 $84
$1 $- 284 Other general and administrative 79 Loss on sales of
receivables 22 Depreciation and amortization 100 Total 201
Operating income 83 Loss of equity investments, net (1) Other, net
3 Earnings before interest and income taxes 85 Interest expense
(133) Interest income 11 Loss from continuing operations before
income taxes (37) Income tax benefit (12) Loss from continuing
operations (25) Income from discontinued operations 57 Net Income
$32 Adjustments Three Months Ended December 31, 2003 Retail
Wholesale Other Elimin- Consolidated Energy Energy Operations
ations Gross Margin (1) Adjustments: Gains recorded prior to 2003
to be realized/ collected in current period $16 $- $- $- $16
Changes in California- related receivables and reserves - (20) - -
(20) Non-trading unrealized energy derivative gains (1) - - - (1)
Total gross margin adjustments 15 (20) - - (5) Operating Expenses
Adjustments: Operation and maintenance adjustment - severance (1) -
- - (1) Other general and administrative adjustment - severance (6)
Other general and administrative adjustment - CFTC settlement (18)
Interest income adjustment - California-related interest income (3)
Income tax expense - tax adjustments, net (1) Adjusted Three Months
Ended December 31, 2003 Retail Wholesale Other Elimin- Consolidated
Energy Energy Operations ations Adjusted gross margin (1) $310 $241
$1 $- $552 Operating Expenses: Adjusted operation and maintenance
59 180 - - 239 Selling and marketing 23 - - - 23 Bad debt expense
13 (3) - - 10 Adjusted contribution margin $215 $64 $1 $- 280
Adjusted other general and administrative 55 Loss on sales of
receivables 22 Depreciation and amortization 100 Total 177 Adjusted
operating income 103 Loss of equity investments, net (1) Other, net
3 Adjusted earnings before interest and income taxes 105 Interest
expense (133) Adjusted interest income 8 Adjusted loss from
continuing operations before income taxes (20) Adjusted income tax
benefit (13) Adjusted loss from continuing operations (7) Income
from discontinued operations 57 Adjusted Net Income $50 (1)
Revenues less fuel and cost of gas sold and purchased power.
Reference is made to Reliant Energy, Inc.'s Current Report on Form
8-K dated November 18, 2004. Reliant Energy, Inc. and Subsidiaries
Results of Operations by Segment (Millions of Dollars) (Unaudited)
As Reported Twelve Months Ended December 31, 2003 Retail Wholesale
Other Elimin- Consolidated Energy Energy Operations ations
Revenues: Revenues $5,729 $5,095 $1 $(225) $10,600 Trading margins
- (49) - - (49) Total 5,729 5,046 1 (225) 10,551 Operating
Expenses: Fuel and cost of gas sold - 1,310 - - 1,310 Purchased
power 4,476 2,571 - (225) 6,822 Gross margin 1,253 1,165 1 - 2,419
Operation and maintenance 251 662 - - 913 Selling and marketing 98
- - - 98 Bad debt expense 65 (8) - - 57 Contribution margin $839
$511 $1 $- 1,351 Other general and administrative 273 Loss on sales
of receivables 37 Accrual for payment to CenterPoint Energy, Inc.
47 Wholesale energy goodwill impairment 985 Depreciation and
amortization 397 Total 1,739 Operating loss (388) Gains from
investments, net 2 Loss of equity investments, net (2) Other, net 9
Loss before interest and income taxes (379) Interest expense (447)
Interest income 35 Loss from continuing operations before income
taxes (791) Income tax expense 98 Loss from continuing operations
(889) Loss from discontinued operations (429) Cumulative effect of
accounting changes, net of tax (24) Net Loss $(1,342) Adjustments
Twelve Months Ended December 31, 2003 Retail Wholesale Other
Elimin- Consolidated Energy Energy Operations ations Gross Margin
(1) Adjustments: Gains recorded prior to 2003 to be realized/
collected in current period $66 $- $- $- $66 Changes in California-
related receivables and reserves - (95) - - (95) Non-trading
unrealized energy derivative losses 7 25 - - 32 October 2003 FERC
settlement - 37 - - 37 Total gross margin adjustments 73 (33) - -
40 Operating Expenses Adjustments: Operation and maintenance
adjustment - severance (2) (10) - - (12) Selling and marketing
adjustment - severance (1) - - - (1) Other general and
administrative adjustment - severance (28) Other general and
administrative adjustment - CFTC settlement (18) Accrual for
payment to CenterPoint Energy, Inc. adjustment (47) Wholesale
energy goodwill impairment adjustment (985) Depreciation and
amortization adjustment - accelerated depreciation on retired
generation assets (14) Interest income adjustment -
California-related interest income (13) Income tax expense - tax
adjustments, net 50 Adjusted Twelve Months Ended December 31, 2003
Retail Wholesale Other Elimin- Consolidated Energy Energy
Operations ations Adjusted gross margin (1) $1,326 $1,132 $1 $-
$2,459 Operating Expenses: Adjusted operation and maintenance 249
652 - - 901 Adjusted selling and marketing 97 - - - 97 Bad debt
expense 65 (8) - - 57 Adjusted contribution margin $915 $488 $1 $-
1,404 Adjusted other general and administrative 227 Loss on sales
of receivables 37 Adjusted depreciation and amortization 383 Total
647 Adjusted operating income 757 Gains from investments, net 2
Loss of equity investments, net (2) Other, net 9 Adjusted earnings
before interest and income taxes 766 Interest expense (447)
Adjusted interest income 22 Adjusted income from continuing
operations before income taxes 341 Adjusted income tax expense 148
Adjusted income from continuing operations 193 Loss from
discontinued operations (429) Cumulative effect of accounting
changes, net of tax (24) Adjusted Net Loss $(260) (1) Revenues less
fuel and cost of gas sold and purchased power. Reference is made to
Reliant Energy, Inc.'s Current Report on Form 8-K dated November
18, 2004. Reliant Energy, Inc. and Subsidiaries Diluted EPS from
Continuing Operations Reconciliation (Dollars per diluted share)
(Unaudited) Three Months Twelve Months Ended Ended December 31,
December 31, 2004 2003 2004 2003 Diluted: Net (loss) income (per
GAAP) $(0.88) $0.11 $(0.10) $(4.57) Cumulative effect of accounting
changes, net of tax - - (0.02) 0.08 Loss (income) from discontinued
operations 0.25 (0.19) (0.46) 1.46 Loss from continuing operations
(on GAAP basis) (0.63) (0.08) (0.58) (3.03) Adjustments: Gains
recorded prior to 2003 to be realized/collected in current period
0.01 0.03 0.04 0.14 Changes in California-related receivables and
reserves (including interest) 0.06 (0.05) (0.02) (0.23) Non-trading
unrealized energy derivative losses/gains 0.30 - 0.52 0.07 FERC
settlement in October 2003 and adjustment in 2004 - - 0.03 0.08
Severance - 0.01 0.07 0.09 Restructuring costs associated with
lease on corporate headquarters 0.01 - 0.03 - CFTC settlement -
fourth quarter 2003 - 0.06 - 0.06 Accrual for payment to
CenterPoint Energy, Inc. - - - 0.10 Gain on sale of counterparty
claim - - (0.06) - Wholesale energy goodwill impairment - - - 3.35
Accelerated depreciation on retired generation assets - - 0.03 0.03
Equipment impairment related to turbines and generators - - 0.03 -
Gain on sale of investment (0.02) - (0.02) - Adjusted (loss) income
from continuing operations $(0.27) $(0.03) $0.07 $0.66 Reference is
made to Reliant Energy, Inc.'s Current Report on Form 8-K dated
November 18, 2004. Information contained in this report is subject
to adjustment resulting from further review and the obtaining of
additional information that impacts the consolidated financial
statements. Reliant Energy, Inc. and Subsidiaries Preliminary
Condensed Consolidated Balance Sheets (Thousands of Dollars)
(Unaudited) December 31, 2004 December 31, 2003 ASSETS Current
Assets: Cash and cash equivalents $106,613 $146,244 Restricted cash
15,610 228,005 Accounts and notes receivable, principally customer,
net 1,089,058 567,218 Notes receivable related to receivables
facility - 393,822 Net California receivables subject to refund -
198,609 Inventory 273,128 258,706 Derivative assets 312,232 493,046
Other current assets 832,636 306,238 Current assets of discontinued
operations - 85,947 Total current assets 2,629,277 2,677,835
Property, plant and equipment, gross 8,403,308 8,330,238
Accumulated depreciation (1,013,178) (687,410) Property, Plant and
Equipment, net 7,390,130 7,642,828 Other Assets: Goodwill, net
440,534 482,534 Other intangibles, net 611,524 620,343 Net
California receivables subject to refund 200,086 - Derivative
assets 272,254 199,716 Restricted cash 25,547 28,260 Other
long-term assets 577,513 637,790 Long-term assets of discontinued
operations - 1,007,525 Total other assets 2,127,458 2,976,168 Total
Assets $12,146,865 $13,296,831 LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities: Current portion of long-term debt and
short-term borrowings $618,854 $129,553 Accounts payable,
principally trade 572,886 508,941 Derivative liabilities 409,110
348,614 Accrual for payment to CenterPoint Energy, Inc. - 175,000
Other current liabilities 469,165 509,092 Current liabilities of
discontinued operations - 329,774 Total current liabilities
2,070,015 2,000,974 Other Liabilities: Derivative liabilities
311,222 208,689 Other long-term liabilities 802,417 864,648
Long-term liabilities of discontinued operations - 936,887 Total
other liabilities 1,113,639 2,010,224 Long-term Debt 4,576,857
4,913,834 Commitments and Contingencies Stockholders' Equity
4,386,354 4,371,799 Total Liabilities and Stockholders' Equity
$12,146,865 $13,296,831 Reference is made to Reliant Energy, Inc.'s
Current Report on Form 8-K dated November 18, 2004. Information
contained in this report is subject to adjustment resulting from
further review and the obtaining of additional information that
impacts the consolidated financial statements. Reliant Energy, Inc.
and Subsidiaries Consolidated Statements of Cash Flows (Thousands
of Dollars) (Unaudited) Twelve Months Ended December 31, 2004 2003
Cash Flows from Operating Activities: Net loss $(29,370)
$(1,342,117) (Income) loss from discontinued operations (135,410)
429,224 Net loss from continuing operations and cumulative effect
of accounting changes (164,780) (912,893) Adjustments to reconcile
net income (loss) to net cash provided by operating activities:
Cumulative effect of accounting changes (7,290) 24,055 Wholesale
energy goodwill impairment - 985,000 Depreciation and amortization
476,811 397,132 Deferred income taxes (69,505) 59,542 Net
unrealized (gains) losses on trading energy activities (26,234)
24,084 Net unrealized losses on non- trading energy derivatives
252,416 31,941 Net amortization of contractual rights and
obligations (24,838) (25,304) Amortization of deferred financing
costs 87,184 97,605 Undistributed earnings of unconsolidated
subsidiaries 9,478 1,652 Accrual for payment to CenterPoint Energy,
Inc. 1,600 46,700 Other, net 14,273 20,522 Changes in other assets
and liabilities: Restricted cash 215,108 (71,551) Accounts and
notes receivable and unbilled revenue, net (66,804) 98,895
Receivables facility proceeds, net 232,000 23,000 Inventory
(20,250) 14,758 Margin deposits on energy trading and hedging
activities, net (450,851) 222,603 Net non-trading derivative assets
and liabilities 16,093 (73,432) Prepaid lease obligation (25,682)
(17,727) Other current assets (55,676) (21,134) Other assets
(47,991) (92,705) Accounts payable 48,466 (194,155) Taxes
payable/receivable 16,689 54,515 Payment to CenterPoint Energy,
Inc. (176,600) -- Other current liabilities 8,653 73,573 Other
liabilities 42,774 43,920 Net cash provided by continuing
operations from operating activities 285,044 810,596 Net cash
provided by discontinued operations from operating activities 3,956
58,807 Net cash provided by operating activities 289,000 869,403
Cash Flows from Investing Activities: Capital expenditures
(172,871) (569,805) Other, net 27,532 6,991 Net cash used in
continuing operations from investing activities (145,339) (562,814)
Net cash provided by discontinued operations from investing
activities 864,621 1,604,589 Net cash provided by investing
activities 719,282 1,041,775 Cash Flows from Financing Activities:
Proceeds from long-term debt 2,150,000 1,612,120 Payments of
long-term debt (2,235,568) (2,141,137) Decrease in short-term
borrowings and revolving credit facilities, net (108,350)
(1,425,445) Proceeds from issuance of treasury stock 24,618 7,531
Payments of financing costs (81,767) (183,455) Other, net 9,156 -
Net cash used in continuing operations from financing activities
(241,911) (2,130,386) Net cash used in discontinued operations from
financing activities (806,002) (758,434) Net cash used in financing
activities (1,047,913) (2,888,820) Effect of Exchange Rate Changes
on Cash and Cash Equivalents - 9,071 Net Change in Cash and Cash
Equivalents (39,631) (968,571) Cash and Cash Equivalents at
Beginning of Period 146,244 1,114,815 Cash and Cash Equivalents at
End of Period $106,613 $146,244 Reference is made to Reliant
Energy, Inc.'s Current Report on Form 8-K dated November 18, 2004.
Information contained in this report is subject to adjustment
resulting from further review and the obtaining of additional
information that impacts the consolidated financial statements.
Three Months Twelve Months Ended Ended December 31, December 31,
2004 2003 2004 2003 (in millions) (in millions) Retail energy
revenues from end-use retail customers: Texas: Residential and
small business $767 $741 $3,527 $3,453 Large commercial, industrial
and governmental/institutional 526 395 1,981 1,599 Outside of
Texas: Commercial, industrial and governmental/institutional 67 22
204 40 Total 1,360 1,158 5,712 5,092 Retail Energy revenues from
resales of purchased power and other hedging activities 133 30 376
688 Market usage adjustments (22) 14 (1) 31 Unrealized losses - (8)
- (16) Gains recorded prior to 2003 realized/collected in current
periods (5) (16) (21) (66) Total retail energy revenues $1,466
$1,178 $6,066 $5,729 Retail Energy Operating Data: Three Months
Twelve Months Ended Ended December 31, December 31, 2004 2003 2004
2003 (gigawatt hours) (gigawatt hours) Electricity Sales from
End-Use Retail Customers: Texas: Residential: Price-to-beat 3,958
4,176 19,315 20,738 Non price-to-beat 1,184 741 4,516 2,070 Total
residential 5,142 4,917 23,831 22,808 Small business: Price-to-beat
1,495 2,252 7,166 10,845 Non price-to-beat 488 331 1,924 1,053
Total small business 1,983 2,583 9,090 11,898 Large commercial,
industrial and governmental/institutional (1) 7,889 7,654 31,278
28,788 Total Texas 15,014 15,154 64,199 63,494 Outside of Texas:
Commercial, industrial and governmental/institutional 1,187 458
3,635 785 Total Outside of Texas 1,187 458 3,635 785 Total 16,201
15,612 67,834 64,279 December 31, 2004 2003 (in thousands, metered
locations) Retail Customers: Texas: Residential: Price-to-beat
1,313 1,395 Non price-to-beat 334 222 Total residential 1,647 1,617
Small business: Price-to-beat 163 183 Non price-to-beat 30 22 Total
small business 193 205 Large commercial, industrial and
governmental/institutional (1) 40 38 Total Texas 1,880 1,860
Outside of Texas: Commercial, industrial and
governmental/institutional (2) 1 - Total Outside of Texas 1 - Total
1,881 1,860 Three Months Twelve Months Ended Ended December 31,
December 31, 2004 2003 2004 2003 (in thousands, (in thousands,
metered locations)metered locations) Weighted Average Retail
Customer Count: Texas: Residential: Price-to-beat 1,326 1,397 1,360
1,408 Non price-to-beat 319 195 271 117 Total residential 1,645
1,592 1,631 1,525 Small business: Price-to-beat 165 188 174 194 Non
price-to-beat 29 19 26 17 Total small business 194 207 200 211
Large commercial, industrial and governmental/institutional (1) 40
38 40 33 Total Texas 1,879 1,837 1,871 1,769 Outside of Texas:
Commercial, industrial and governmental/institutional (3) 1 - 1 -
Total Outside of Texas 1 - 1 - Total 1,880 1,837 1,872 1,769 (1)
These amounts include volumes of customers of the Government Land
Office for whom we provide services. (2) As of December 31, 2004
and 2003, our retail customer count for commercial, industrial and
governmental/institutional customers outside of Texas was 1,354 and
195, respectively. (3) For 2004 and 2003, our weighted average
retail customer count for the periods for which we sold electricity
to commercial, industrial and governmental/institutional customers
outside of Texas was 787 and 165, respectively. Reference is made
to Reliant Energy, Inc.'s Current Report on Form 8-K dated November
18, 2004. Reliant Energy, Inc. and Subsidiaries Wholesale
Operational Data (Unaudited) Wholesale Energy Gross Margin: Three
Months Ended Twelve Months Ended December 31, December 31, Differ-
Differ- 2004 2003 ence 2004 2003 ence (in millions) (in millions)
West $42 $24 $18 $153 $128 $25 Mid-Atlantic 59 78 (19) 278 381
(103) New York 64 56 8 314 243 71 Southeast 2 4 (2) 15 18 (3)
Mid-Continent 59 57 2 270 312 (42) ERCOT 14 16 (2) 66 64 2 Other:
Billings to Texas Genco for support costs 2 8 (6) 15 29 (14) Other
1 2 (1) 4 6 (2) Adjusted Plant Gross Margin 243 245 (2) 1,115 1,181
(66) California-related receivables and reserves: Credit Reserve -
(2) 2 21 (15) 36 Estimated Refund Obligation (20) 22 (42) (8) 110
(118) Direct Adjustment - - - (11) - (11) Discount (13) - (13) (13)
- (13) FERC settlement in October 2003 and adjustment in 2004 - - -
(12) (37) 25 Non-trading unrealized energy derivative (losses) gain
(1) (18) - (18) 20 (25) 45 Plant Gross Margin 192 265 (73) 1,112
1,214 (102) Trading margins 6 (4) 10 5 (49) 54 Total Wholesale
Energy Gross Margin $198 $261 $(63) $1,117 $1,165 $(48) Wholesale
Energy Operating Data (2): Three Months Twelve Months Ended Ended
December 31, December 31, 2004 2003 2004 2003 (gigawatt hours)
(gigawatt hours) Wholesale net power generation volumes 9,982 9,907
41,066 42,012 Wholesale power purchase volumes 9,860 16,354 35,969
70,601 Wholesale power sales volumes (3) 19,842 26,261 77,035
112,613 (1) Includes Enron write-off, ineffectiveness and
non-trading derivatives not designated as hedges. (2) These amounts
exclude volumes associated with our discontinued operations. (3)
These amounts include physically delivered volumes, physical
transactions that are settled prior to delivery and hedge activity
related to our power generation portfolio. Reference is made to
Reliant Energy, Inc.'s Current Report on Form 8-K dated November
18, 2004. Reliant Energy, Inc. and Subsidiaries Net Generation
Volumes (1) (MWh) (Unaudited) Three Months Ended Twelve Months
Ended December 31, December 31, By region: 2004 2003 2004 2003
Mid-Continent 2,560,740 3,029,013 10,354,237 12,213,756
Mid-Atlantic 2,903,788 2,909,001 11,583,594 12,035,546 New York
863,030 689,007 4,015,580 3,481,308 Southeast 363,836 507,525
2,198,244 2,986,047 West 2,006,266 1,448,587 7,445,181 5,632,443
ERCOT 1,284,029 1,323,557 5,468,672 5,663,035 Total 9,981,689
9,906,690 41,065,508 42,012,135 Three Months Ended Twelve Months
Ended December 31, December 31, By asset type: 2004 2003 2004 2003
Base load 7,876,024 7,787,135 30,984,944 31,240,593 Intermediate
1,930,911 1,872,494 8,514,841 8,815,285 Peaking 174,754 247,061
1,565,723 1,956,257 Total 9,981,689 9,906,690 41,065,508 42,012,135
(1) These amounts exclude volumes associated with our discontinued
operations. Reference is made to Reliant Energy, Inc.'s Current
Report on Form 8-K dated November 18, 2004. Reliant Energy, Inc.
and Subsidiaries Mid-Continent Asset Summary (Unaudited) Summer/
Winter Heat Q4 net Q4 net Average Rate generation capacity Unit
Name Capacity (MMBtu/ volume(1)(MWh) factor(2)(MWh) (MW) MWh) 2004
2003 2004 2003 Base Load Avon Lake 7 & 9 692 12.3 822,136
996,002 54% 65% Cheswick 1 583 9.9 893,680 926,221 69% 72% Elrama
1-4 487 11.5 394,107 494,803 37% 46% New Castle 3-5 325 10.7
203,015 443,514 28% 62% Niles 1-2 216 105.0 247,749 169,587 52% 36%
2,303 2,560,687 3,030,127 50% 60% Intermediate Brunot Island CCGT
287 9.8 (1,964) (2,100) 0% 0% Peaking Aurora 1-10 912 10.2 1,168 -
0% 0% Avon Lake 10 29 17.4 462 759 1% 1% Brunot Island 1A-1C 60
13.6 (63) 241 0% 0% Ceredo 1-6 475 12.1 505 - 0% 0% New Castle A-B
6 10.0 5 28 0% 0% Niles A 30 21.3 (60) (42) 0% 0% Shelby 1-8 371
9.8 - - 0% 0% 1,883 2,017 986 0% 0% Mid-Continent Total 4,473
2,560,740 3,029,013 26% 31% (1) Represents net generation assets
only. (2) Capacity factor is the ratio of the actual net
electricity generated to the energy that could have been generated
at continuous full-power operation during the period. Reference is
made to Reliant Energy, Inc.'s Current Report on Form 8-K dated
November 18, 2004. Reliant Energy, Inc. and Subsidiaries
Mid-Atlantic Asset Summary (Unaudited) Summer/ Winter Heat Q4 net
Q4 net Average Rate(1) generation capacity factor Unit Name
Capacity (MMBtu/ volume(2)(MWh) (1)(3)(MWh) (MW)(1) MWh) 2004 2003
2004 2003 Base Load Conemaugh 1-2 (16%) 280 9.4 531,955 561,402 86%
91% Deep Creek 1-2 19 N/A 8,409 11,033 20% 26% Keystone 1-2 (16%)
282 9.5 461,052 598,367 74% 96% Piney Station 1-3 28 N/A 16,679
18,193 27% 29% Portland 1&2 400 10.2 406,181 445,723 46% 50%
Seward 1 520 9.7 472,936 - 41% 0% Seward 5 - - - 108,511 Shawville
1-4 608 10.2 796,249 854,260 59% 64% Titus 1-3 246 11.1 165,520
278,660 30% 51% 2,383 2,858,981 2,876,149 54% 55% Intermediate
Gilbert CCGT 336 9.5 3,603 7,703 0% 1% Gilbert 9 168 11.1 (389)
1,049 0% 0% Hunterstown CCGT 795 6.9 16,602 21,139 1% 1% Sayreville
4-5 - (887) Seward 4 - (1,356) Portland 5 144 10.1 6,693 5,350 2%
2% 1,443 26,509 32,998 1% 1% Peaking Blossburg 1 23 14.6 638 61 1%
0% Gilbert 1-4 111 15.2 (32) (359) 0% 0% Glen Gardner 1-8 184 14.6
(211) (165) 0% 0% Hamilton 1 23 14.7 103 - 0% 0% Hunterstown 1-3 71
14.8 227 (189) 0% 0% Mountain 1-2 47 14.3 401 517 0% 0% Orrtanna 1
23 14.4 - 163 0% 0% Portland 3-4 40 13.1 149 - 0% 0% Sayreville 1-4
264 13.8 12,249 598 2% 0% Shawnee 1 23 14.0 - 52 0% 0% Shawville
5-7 6 10.2 (74) (10) 0% 0% Tolna 1-2 47 14.2 143 239 0% 0% Titus
4-5 35 18.3 99 - 0% 0% Wayne 1 - (179) Warren 3 68 12.8 (114) (196)
0% 0% Werner 1-4 252 13.8 4,564 (750) 1% 0% Keystone 3-6 2 10.3 143
55 3% 1% Conemaugh A-D 2 9.7 13 17 0% 0% 1,221 18,298 (146) 1% 0%
Mid-Atlantic Total 5,047 2,903,788 2,909,001 26% 26% (1) Excludes
(a) Seward 4 & 5 of 197 MW, which were retired in November
2003, (b) Sayreville 4-5 of 232 MW, which were retired in February
2004 and ( c) Wayne 1 of 66 MW, which was retired in May 2004. (2)
Represents net generation assets only. (3) Capacity factor is the
ratio of the actual net electricity generated to the energy that
could have been generated at continuous full-power operation during
the period. Reference is made to Reliant Energy, Inc.'s Current
Report on Form 8-K dated November 18, 2004. Reliant Energy, Inc.
and Subsidiaries New York Asset Summary (Unaudited) Summer/ Winter
Heat Q4 net Q4 net Average Rate generation capacity Unit Name
Capacity (MMBtu/ volume(1)(MWh) factor(2)(MWh) (MW) MWh) 2004 2003
2004 2003 Intermediate Astoria 3-5 1,105 10.9 843,726 684,932 35%
28% Peaking Astoria 2 178 12.3 (1,438) (1,525) 0% 0% Gowanus 1-4
610 18.0 932 1,970 0% 0% Narrows 1-2 317 17.4 19,810 3,630 3% 1%
1,105 19,304 4,075 1% 0% New York Total 2,210 863,030 689,007 18%
14% (1) Represents net generation assets only. (2) Capacity factor
is the ratio of the actual net electricity generated to the energy
that could have been generated at continuous full-power operation
during the period. Reference is made to Reliant Energy, Inc.'s
Current Report on Form 8-K dated November 18, 2004. Reliant Energy,
Inc. and Subsidiaries Southeast Asset Summary (Unaudited) Summer/
Winter Heat Q4 net Q4 net Average Rate generation capacity Unit
Name Capacity (MMBtu/ volume(1)(MWh) factor(2)(MWh) (MW) MWh) 2004
2003 2004 2003 Base Load Sabine 54 10.0 70,320 86,035 59% 72%
Intermediate Indian River 1-3 587 10.5 158,381 154,652 12% 12%
Choctaw 800 6.9 - 27,519 0% 2% 1,387 158,381 182,171 5% 6% Peaking
Osceola 1-3 465 11.0 56,842 131,359 6% 13% Shady Hills (3) 474 10.8
62,396 91,692 6% 9% Vandolah (3) 630 10.8 15,897 16,268 1% 1% 1,569
135,135 239,319 4% 7% Southeast Total 3,010 363,836 507,525 5% 8%
(1) Represents net generation assets only. (2) Capacity factor is
the ratio of the actual net electricity generated to the energy
that could have been generated at continuous full-power operation
during the period. (3) Under contract. Reference is made to Reliant
Energy, Inc.'s Current Report on Form 8-K dated November 18, 2004.
Reliant Energy, Inc. and Subsidiaries West Asset Summary
(Unaudited) Summer/ Winter Heat Q4 net Q4 net Average Rate(1)
generation capacity factor Unit Name Capacity (MMBtu/
volume(2)(MWh) (1)(3)(MWh) (MW)(1) MWh) 2004 2003 2004 2003 Base
Load Bighorn CCGT 591 7.2 597,785 - 46% 0% El Dorado CCGT 235 7.2
504,222 471,267 97% 91% 826 1,102,007 471,267 60% 26% Intermediate
Coolwater 1-2 146 10.5 (265) (252) 0% 0% Coolwater 3-4 476 10.0
118,409 167,195 11% 16% Etiwanda 1-2 - - - Etiwanda 3-4 640 10.0
8,330 11,325 1% 1% Mandalay 1-2 430 9.5 151,382 127,936 16% 13%
Ormond Beach 1-2 1,516 9.6 626,403 668,289 19% 20% 3,208 904,259
974,493 13% 14% Peaking Ellwood 54 13.3 - 21 0% 0% Etiwanda 5 - - -
796 Mandalay 3 130 15.8 - 2,010 0% 1% 184 - 2,827 0% 1% West Total
4,218 2,006,266 1,448,587 22% 16% (1) Excludes Etiwanda 1-2 of 264
MW, which was retired in October 2003 and Etiwanda 5 of 118 MW,
which was retired in January 2004. (2) Represents net generation
assets only. (3) Capacity factor is the ratio of the actual net
electricity generated to the energy that could have been generated
at continuous full-power operation during the period. Reference is
made to Reliant Energy, Inc.'s Current Report on Form 8-K dated
November 18, 2004. Reliant Energy, Inc. and Subsidiaries ERCOT
Asset Summary (Unaudited) Summer/ Winter Heat Q4 net Q4 net Average
Rate generation capacity Unit Name Capacity (MMBtu/ volume(1)(MWh)
factor(2)(MWh) (MW) MWh) 2004 2003 2004 2003 Base Load Channelview
805 10.3 1,245,957 1,288,002 70% 72% Landfill Gas 26 11.0 38,072
35,555 66% 62% ERCOT Total 831 1,284,029 1,323,557 70% 72% (1)
Represents net generation assets only. (2) Capacity factor is the
ratio of the actual net electricity generated to the energy that
could have been generated at continuous full-power operation during
the period. Reference is made to Reliant Energy, Inc.'s Current
Report on Form 8-K dated November 18, 2004. Reliant Energy, Inc.
and Subsidiaries Adjusted Net Debt - to - EBITDA (1) (in millions,
except ratio) (Unaudited) December 31, 2004 Debt: Senior secured
term loan $1,300 Senior secured revolver 199 Senior secured notes
1,850 Convertible senior subordinated notes 275 Orion Power 12%
notes (2) 457 PEDFA fixed-rate bonds for Seward plant due 2036 500
REMA term loans due 2005 to 2006 28 Channelview 359 Receivables
facility 227 Warrants (1) Other (3) 2 El Dorado debt (off-balance
sheet) 63 REMA operating lease (off-balance sheet) 522 Total debt
and debt equivalents (4) 5,781 Less: Cash and cash equivalents
(107) Restricted cash (41) Net margin deposits (491) Adjusted Net
Debt $5,142 Adjusted EBIT $493 (5) Less: El Dorado equity loss 13
(5) Add: 50% El Dorado EBITDA (4)(5) REMA lease expense 60 (5)
Receivables facility expense (for 9 months) (per the agreement) 18
(5) Adjusted depreciation and amortization 449 (5) Adjusted EBITDA
(per the agreement) $1,029 (5) Ratio 5.00 (1) Calculated in
accordance with amended December 2004 credit facility. (2) Orion
12% notes includes purchase accounting adjustments of $57 million.
(3) Other subsidiary debt. (4) Debt equivalents include off-balance
sheet REMA lease of $522 million and our portion of off-balance
sheet El Dorado, an equity investment, debt of $63 million. (5)
Represents amounts for the year ended December 31, 2004. Reference
is made to Reliant Energy, Inc.'s Current Report on Form 8-K dated
November 18, 2004. PRNewswire-FirstCall -- March 2 END FIRST AND
FINAL ADD DATASOURCE: Reliant Energy, Inc.
Copyright