NRG Energy Inc. plans to spend $658 million to acquire fourcombined cycle power projects with a total capacity of 5,961 MWfrom LS Power LLC, an independent power producer headquartered inEast Brunswick, NJ. The agreement also gives the Minneapolis-basedNRG the opportunity to acquire ownership in the next 3,000 MW ofgeneration offered by LS Power and its partners.

“This acquisition is expected to contribute to NRG’s long-termearnings growth and expand our United States generation portfolio,”said NRG CEO David H. Peterson. “NRG will use its expertise inconstruction, finance and operations to integrate these projectsinto our company and create additional value for our shareholders.The opportunity to acquire future projects developed by LS Poweralso will allow NRG to pursue new capacity in markets thatcomplement our existing assets.”

The initial purchase, which includes four facilities inIllinois, Mississippi, Florida and Texas, would increase NRG’sportfolio to more than 20,000 MW and help it advance toward itsgoal of 50,000 MW generation in place by 2005.

NRG said the portfolio acquisition, expected to close in thefirst quarter of 2001.

Carolyn Davis, Houston

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