NRG Energy sells Australian coal plants to Babcock & Brown

30 August 2006 — NRG Energy, Inc. today completed the sale of its 100 percent owned Flinders power station and related assets to Babcock & Brown Power Pty, Ltd., a subsidiary of global investment and advisory firm Babcock & Brown. Located near Port Augusta, Australia, Flinders consists of two coal-fueled plants — Northern and Playford — totaling 760 MW.

Net proceeds from the sale were approximately $239 million and the elimination of approximately $359 million of consolidated liabilities including $184 million of non-recourse debt obligations and $76 million in non-current liabilities related to the obligations for the purchase of electricity and the supply of fuel to the Osborne power station that are guaranteed by NRG.