/FIRST AND FINAL ADD -- NYW050 -- Reliant Energy, Inc. Earnings/
Reliant Energy, Inc. and Subsidiaries Consolidated Statements of
Operations (Thousands of Dollars, except per share amounts)
(Unaudited) Three Months Ended Nine Months Ended September 30,
September 30, 2004 2003 2004 2003 Revenues: Revenues (including
$(8,567), $(13,837), $(22,259) and $(27,906) unrealized losses)
$2,807,314 $3,659,450 $6,721,071 $8,863,198 Trading margins 1,192
26,356 (1,468) (44,943) Total Revenues 2,808,506 3,685,806
6,719,603 8,818,255 Expenses: Fuel and cost of gas sold (including
$42,270, $8,437, $64,598 and $420 unrealized gains) 473,466 373,120
1,194,636 1,013,415 Purchased power (including $(88,789), $1,099,
$(147,585) and $(5,958) unrealized (losses) gains) 1,626,697
2,382,556 3,906,096 5,925,004 Accrual for payment to CenterPoint
Energy, Inc. (58) -- 1,600 46,700 Operation and maintenance 211,235
225,037 676,958 679,770 Selling and marketing 22,774 26,208 61,701
74,761 Bad debt expense 16,447 15,461 36,755 52,305 Total 2,350,561
3,022,382 5,877,746 7,791,955 Contribution Margin 457,945 663,424
841,857 1,026,300 Other general and administrative 51,410 63,290
151,673 195,109 Loss on sales of receivables 14,491 6,784 33,741
14,658 Gain on sale of counterparty claim (30,000) -- (30,000) --
Wholesale energy goodwill impairment -- 985,000 -- 985,000
Depreciation 96,559 101,906 320,252 259,216 Amortization 34,364
27,772 53,709 44,687 Total 166,824 1,184,752 529,375 1,498,670
Operating Income (Loss) 291,121 (521,328) 312,482 (472,370) Other
Income (Expense): Gains (losses) from investments, net 612 (253)
(53) 1,602 Income (loss) of equity investments, net 344 2,982
(9,244) (617) Other, net 777 3,242 4,654 6,102 Earnings (Loss)
Before Interest and Taxes 292,854 (515,357) 307,839 (465,283)
Interest expense (111,510) (143,426) (312,138) (327,579) Interest
income 16,602 4,543 29,133 23,676 Income (Loss) from Continuing
Operations Before Income Taxes 197,946 (654,240) 24,834 (769,186)
Income tax expense 77,561 135,644 19,726 103,745 Income (Loss) from
Continuing Operations 120,385 (789,884) 5,108 (872,931) Income
(loss) from discontinued operations before income taxes 200,197
(108,128) 191,297 (423,348) Income tax (benefit) expense (24,454)
18,327 (31,294) 54,316 Income (loss) from discontinued operations
224,651 (126,455) 222,591 (477,664) Income (Loss) Before Cumulative
Effect of Accounting Changes 345,036 (916,339) 227,699 (1,350,595)
Cumulative effect of accounting changes, net of tax -- -- 7,290
(24,055) Net Income (Loss) $345,036 $(916,339) $234,989
$(1,374,650) Basic Earnings (Loss) Per Share: Income (loss) from
continuing operations $0.40 $(2.68) $0.02 $(2.98) Income (loss)
from discontinued operations 0.76 (0.43) 0.75 (1.64) Cumulative
effect of accounting changes, net of tax -- -- 0.02 (0.08) Net
income (loss) $1.16 $(3.11) $0.79 $(4.70) Diluted Earnings (Loss)
Per Share: Income (loss) from continuing operations $0.37 $(2.68)
$0.02 $(2.98) Income (loss) from discontinued operations 0.67
(0.43) 0.73 (1.64) Cumulative effect of accounting changes, net of
tax -- -- 0.02 (0.08) Net income (loss) $1.04 $(3.11) $0.77 $(4.70)
Weighted Average Common Shares Outstanding (in thousands): - Basic
298,435 294,373 297,040 292,705 - Diluted 334,476 294,373 303,768
292,705 Reference is made to Reliant Energy, Inc.'s Annual Report
on Form 10-K for the year ended December 31, 2003. Reliant Energy,
Inc. and Subsidiaries Results of Operations by Segment (Millions of
Dollars) (Unaudited) As Reported Three Months Ended September 30,
2004 Retail Wholesale Other Elimi- Consoli- Energy Energy
Operations nations dated Revenues: Revenues $1,969 $949 $-- $(110)
$2,808 Trading margins -- 1 -- -- 1 Total 1,969 950 -- (110) 2,809
Operating Expenses: Fuel and cost of gas sold -- 474 -- -- 474
Purchased power 1,657 79 -- (110) 1,626 Gross margin 312 397 -- --
709 Operation and maintenance 65 146 -- -- 211 Selling and
marketing 22 -- -- -- 22 Bad debt expense 16 -- -- -- 16
Contribution margin $209 $251 $ -- $ -- 460 Other general and
administrative 52 Loss on sales of receivables 15 Gain on sale of
counterparty claim (30) Depreciation and amortization 132 Total 169
Operating income 291 Income of equity investments, net 1 Other, net
1 Earnings before interest and income taxes 293 Interest expense
(111) Interest income 16 Income from continuing operations before
income taxes 198 Income tax expense 78 Income from continuing
operations 120 Income from discontinued operations 225 Net Income
$345 Adjustments Three Months Ended September 30, 2004 Retail
Wholesale Other Elimi- Consoli- Energy Energy Operations nations
dated Gross Margin (1) Adjustments: Gains recorded prior to 2003 to
be realized/collected in current period $(1) $ -- $ -- $ -- $(1)
Changes in California-related receivables and reserves -- 4 -- -- 4
Non-trading unrealized energy derivative losses (gains) 87 (32) --
-- 55 Adjustment to October 2003 FERC settlement -- 12 -- -- 12
Liberty adjustment(2) -- (9) -- -- (9) Total gross margin
adjustments 86 (25) -- -- 61 Operating Expenses Adjustments:
Operation and maintenance adjustment - severance -- (1) -- -- (1)
Operation and maintenance adjustment - Liberty (2) -- (6) -- -- (6)
Selling and marketing adjustment - severance (1) -- -- -- (1) Other
general and administrative adjustment - severance 1 Other general
and administrative adjustment - restructuring costs associated with
lease on corporate headquarters (11) Gain on sale of counterparty
claim 30 Depreciation and amortization adjustment - Liberty(2) (2)
Interest expense adjustment - Liberty(2) 6 Interest income
adjustment - California-related interest income (10) Income tax
expense - tax adjustments, net 15 Income tax benefit - Liberty
adjustment(2) 3 Adjusted Net Income Three Months Ended September
30, 2004 Retail Wholesale Other Elimi- Consoli- Energy Energy
Operations nations dated Adjusted gross margin (1) $398 $372 $ -- $
-- $770 Operating Expenses: Adjusted operation and maintenance 65
139 -- -- 204 Adjusted selling and marketing 21 -- -- -- 21 Bad
debt expense 16 -- -- -- 16 Adjusted contribution margin $296 $233
$ -- $ -- 529 Adjusted other general and administrative 42 Loss on
sales of receivables 15 Adjusted depreciation and amortization 130
Total 187 Adjusted operating income 342 Income of equity
investments 1 Other, net 1 Adjusted earnings before interest and
income taxes 344 Adjusted interest expense (105) Adjusted interest
income 6 Adjusted income from continuing operations before income
taxes 245 Adjusted income tax expense 96 Adjusted income from
continuing operations 149 Income from discontinued operations 225
Net loss from Liberty (2) (2) Adjusted Net Income $372 (1) Revenues
less fuel and cost of gas sold and purchased power. (2) Liberty
primarily includes the operations of Liberty Electric PA, LLC and
Liberty Electric Power, LLC. Reference is made to Reliant Energy,
Inc.'s Annual Report on Form 10-K for the year ended December 31,
2003. Reliant Energy, Inc. and Subsidiaries Results of Operations
by Segment (Millions of Dollars) (Unaudited) As Reported Nine
Months Ended September 30, 2004 Retail Wholesale Other Elimi-
Consoli- Energy Energy Operations nations dated Revenues: Revenues
$4,600 $2,365 $ -- $(244) $6,721 Trading margins -- (1) -- -- (1)
Total 4,600 2,364 -- (244) 6,720 Operating Expenses: Fuel and cost
of gas sold -- 1,195 -- -- 1,195 Purchased power 3,919 231 -- (244)
3,906 Gross margin 681 938 -- -- 1,619 Accrual for payment to
CenterPoint Energy, Inc. 2 -- -- -- 2 Operation and maintenance 173
504 -- -- 677 Selling and marketing 61 -- -- -- 61 Bad debt expense
40 (3) -- -- 37 Contribution margin $405 $437 $ -- $ -- 842 Other
general and administrative 152 Loss on sales of receivables 34 Gain
on sale of counterparty claim (30) Depreciation and amortization
374 Total 530 Operating income 312 Loss of equity investments, net
(9) Other, net 5 Earnings before interest and income taxes 308
Interest expense (312) Interest income 29 Income from continuing
operations before income taxes 25 Income tax expense 20 Income from
continuing operations 5 Income from discontinued operations 223
Cumulative effect of accounting change, net of tax 7 Net Income
$235 Adjustments Nine Months Ended September 30, 2004 Retail
Wholesale Other Elimi- Consoli- Energy Energy Operations nations
dated 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 -- (22) --
-- (22) Non-trading unrealized energy derivative losses (gains) 143
(38) -- -- 105 Adjustment to October 2003 FERC settlement -- 12 --
-- 12 Liberty adjustment(2) -- (18) -- -- (18) Total gross margin
adjustments 159 (66) -- -- 93 Operating Expenses Adjustments:
Accrual for payment to CenterPoint Energy, Inc. adjustment (2) --
-- -- (2) Operation and maintenance adjustment - severance (5) (11)
-- -- (16) Operation and maintenance adjustment - Liberty(2) --
(14) -- -- (14) Selling and marketing adjustment - severance (2) --
-- -- (2) Other general and administrative adjustment - severance
(11) Other general and administrative adjustment - restructuring
costs associated with lease on corporate headquarters (11) 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) Depreciation and
amortization adjustment - Liberty(2) (7) Interest expense
adjustment - Liberty (2) 16 Interest income adjustment -
California-related interest income (13) Income tax expense - tax
adjustments, net 52 Income tax benefit - Liberty adjustment (2) 8
Adjusted Net Income Nine Months Ended September 30, 2004 Retail
Wholesale Other Elimi- Consoli- Energy Energy Operations nations
dated Adjusted gross margin (1) $840 $872 $ -- $ -- $1,712
Operating Expenses: Adjusted operation and maintenance 168 479 --
-- 647 Adjusted selling and marketing 59 -- -- -- 59 Bad debt
expense 40 (3) -- -- 37 Adjusted contribution margin $573 $396 $ --
$ -- 969 Adjusted other general and administrative 130 Loss on
sales of receivables 34 Adjusted depreciation and amortization 339
Total 503 Adjusted operating income 466 Loss of equity investments
(9) Other, net 5 Adjusted earnings before interest and income taxes
462 Adjusted interest expense (296) Adjusted interest income 16
Adjusted income from continuing operations before income taxes 182
Adjusted income tax expense 80 Adjusted income from continuing
operations 102 Income from discontinued operations 223 Net loss
from Liberty (2) (11) Cumulative effect of accounting change, net
of tax 7 Adjusted Net Income $321 (1) Revenues less fuel and cost
of gas sold and purchased power. (2) Liberty primarily includes the
operations of Liberty Electric PA, LLC and Liberty Electric Power,
LLC. Reference is made to Reliant Energy, Inc.'s Annual Report on
Form 10-K for the year ended December 31, 2003. Reliant Energy,
Inc. and Subsidiaries Results of Operations by Segment (Millions of
Dollars) (Unaudited) As Reported Three Months Ended September 30,
2003 Retail Wholesale Other Elimi- Consoli- Energy Energy
Operations nations dated Revenues: Revenues $1,924 $1,800 $ --
$(64) $3,660 Trading margins -- 26 -- -- 26 Total 1,924 1,826 --
(64) 3,686 Operating Expenses: Fuel and cost of gas sold -- 373 --
-- 373 Purchased power 1,400 1,047 -- (64) 2,383 Gross margin 524
406 -- -- 930 Operation and maintenance 67 158 -- -- 225 Selling
and marketing 26 -- -- -- 26 Bad debt expense 23 (8) -- -- 15
Contribution margin $408 $256 $ -- $ -- 664 Other general and
administrative 63 Loss on sales of receivables 7 Wholesale energy
goodwill impairment 985 Depreciation and amortization 130 Total
1,185 Operating loss (521) Income of equity investments, net 3
Other, net 3 Loss before interest and income taxes (515) Interest
expense (144) Interest income 5 Loss from continuing operations
before income taxes (654) Income tax expense 136 Loss from
continuing operations (790) Loss from discontinued operations (126)
Net Loss $(916) Adjustments Three Months Ended September 30, 2003
Retail Wholesale Other Elimi- Consoli- Energy Energy Operations
nations dated Gross Margin (1) Adjustments: Gains recorded prior to
2003 to be realized/collected in current period $19 $ -- $ -- $ --
$19 Non-trading unrealized energy derivative losses 1 3 -- -- 4
FERC settlement in October 2003 -- 37 -- -- 37 Liberty
adjustment(2) -- (3) -- -- (3) Total gross margin adjustments 20 37
-- -- 57 Operating Expenses Adjustments: Operation and maintenance
adjustment - severance (1) (4) -- -- (5) Operation and maintenance
adjustment - Liberty(2) -- (3) -- -- (3) Selling and marketing
adjustment - severance (1) -- -- -- (1) Bad debt expense adjustment
- Liberty(2) -- (1) -- -- (1) Other general and administrative
adjustment - severance (6) Wholesale energy goodwill impairment
adjustment (985) Depreciation and amortization adjustment -
accelerated depreciation on retired generation assets (14)
Depreciation and amortization adjustment - Liberty(2) (2) Interest
expense adjustment - Liberty (2) 4 Income tax expense - tax
adjustments, net 32 Income tax benefit - Liberty adjustment(2) 3
Adjusted Net Income Three Months Ended September 30, 2003 Retail
Wholesale Other Elimi- Consoli- Energy Energy Operations nations
dated Adjusted gross margin(1) $544 $443 $ -- $ -- $987 Operating
Expenses: Adjusted operation and maintenance 66 151 -- -- 217
Adjusted selling and marketing 25 -- -- -- 25 Adjusted bad debt
expense 23 (9) -- -- 14 Adjusted contribution margin $430 $301 $ --
$ -- 731 Adjusted other general and administrative 57 Loss on sales
of receivables 7 Adjusted depreciation and amortization 114 Total
178 Adjusted operating income 553 Income of equity investments 3
Other, net 3 Adjusted income before interest and income taxes 559
Adjusted interest expense (140) Adjusted interest income 5 Adjusted
income from continuing operations before income taxes 424 Adjusted
income tax expense 171 Adjusted income from continuing operations
253 Loss from discontinued operations, net of tax (126) Net loss
from Liberty (2) (4) Adjusted Net Income $123 (1) Revenues less
fuel and cost of gas sold and purchased power. (2) Liberty
primarily includes the operations of Liberty Electric PA, LLC and
Liberty Electric Power, LLC. Reference is made to Reliant Energy,
Inc.'s Annual Report on Form 10-K for the year ended December 31,
2003. Reliant Energy, Inc. and Subsidiaries Results of Operations
by Segment (Millions of Dollars) (Unaudited) As Reported Nine
Months Ended September 30, 2003 Retail Wholesale Other Elimi-
Consoli- Energy Energy Operations nations dated Revenues: Revenues
$4,551 $4,481 $ -- $(169) $8,863 Trading margins -- (45) -- -- (45)
Total 4,551 4,436 -- (169) 8,818 Operating Expenses: Fuel and cost
of gas sold -- 1,013 -- -- 1,013 Purchased power 3,593 2,501 --
(169) 5,925 Gross margin 958 922 -- -- 1,880 Accrual for payment to
CenterPoint Energy, Inc. 47 -- -- -- 47 Operation and maintenance
191 489 -- -- 680 Selling and marketing 75 -- -- -- 75 Bad debt
expense 52 -- -- -- 52 Contribution margin $593 $433 $ -- $ --
1,026 Other general and administrative 194 Loss on sales of
receivables 15 Wholesale energy goodwill impairment 985
Depreciation and amortization 304 Total 1,498 Operating loss (472)
Gains from investments, net 2 Loss of equity investments, net (1)
Other, net 6 Loss before interest and income taxes (465) Interest
expense (328) Interest income 24 Loss from continuing operations
before income taxes (769) Income tax expense 104 Loss from
continuing operations (873) Loss from discontinued operations (478)
Cumulative effect of accounting changes, net of tax (24) Net Loss
$(1,375) Adjustments Nine Months Ended September 30, 2003 Retail
Wholesale Other Elimi- Consoli- Energy Energy Operations nations
dated Gross Margin(1) Adjustments: Gains recorded prior to 2003 to
be realized/collected in current period $50 $ -- $ -- $ -- $50
Changes in California-related receivables and reserves -- (75) --
-- (75) Non-trading unrealized energy derivative losses 8 25 -- --
33 FERC settlement in October 2003 -- 37 -- -- 37 Liberty
adjustment(2) -- (17) -- -- (17) Total gross margin adjustments 58
(30) -- -- 28 Operating Expenses Adjustments: Accrual for payment
to CenterPoint Energy, Inc. adjustment (47) -- -- -- (47) Operation
and maintenance adjustment - severance (1) (10) -- -- (11)
Operation and maintenance adjustment - Liberty(2) -- (6) -- -- (6)
Selling and marketing adjustment - severance (1) -- -- -- (1) Bad
debt expense adjustment - Liberty(2) -- (6) -- -- (6) Other general
and administrative adjustment - severance (21) Wholesale energy
goodwill impairment (985) Depreciation and amortization adjustment
- accelerated depreciation on retired generation assets (14)
Depreciation and amortization adjustment - Liberty(2) (7) Interest
expense adjustment - Liberty(2) 13 Interest income adjustment -
California-related interest income (10) Income tax expense - tax
adjustments, net 51 Income tax benefit - Liberty adjustment(2) 6
Adjusted Net Loss Nine Months Ended September 30, 2003 Retail
Wholesale Other Elimi- Consoli- Energy Energy Operations nations
dated Adjusted gross margin(1) $1,016 $892 $ -- $ -- $1,908
Operating Expenses: Adjusted operation and maintenance 190 473 --
-- 663 Adjusted selling and marketing 74 -- -- -- 74 Adjusted bad
debt expense 52 (6) -- -- 46 Adjusted contribution margin $700 $425
$ -- $ -- 1,125 Adjusted other general and administrative 173 Loss
on sales of receivables 15 Adjusted depreciation and amortization
283 Total 471 Adjusted operating income 654 Gains from investments,
net 2 Loss of equity investments (1) Other, net 6 Adjusted earnings
before interest and income taxes 661 Adjusted interest expense
(315) Adjusted interest income 14 Adjusted income from continuing
operations before income taxes 360 Adjusted income tax expense 161
Adjusted income from continuing operations 199 Loss from
discontinued operations, net of tax (478) Net loss from Liberty (2)
(9) Cumulative effect of accounting changes, net of tax (24)
Adjusted Net Loss $(312) (1) Revenues less fuel and cost of gas
sold and purchased power. (2) Liberty primarily includes the
operations of Liberty Electric PA, LLC and Liberty Electric Power,
LLC. Reference is made to Reliant Energy, Inc.'s Annual Report on
Form 10-K for the year ended December 31, 2003. Reliant Energy,
Inc. and Subsidiaries Diluted EPS from Continuing Operations
Reconciliation (Dollars per diluted share) (Unaudited) Three Months
Ended Nine Months Ended September 30, September 30, 2004 2003 2004
2003 Diluted: Net income (loss) (per GAAP) $1.04 $(3.11) $0.77
$(4.70) Cumulative effect of accounting changes, net of tax -- --
(0.02) 0.08 (Income) loss from discontinued operations (0.67) 0.43
(0.73) 1.64 Income (loss) from continuing operations (on GAAP
basis) 0.37 (2.68) 0.02 (2.98) Adjustments: Gains recorded prior to
2003 to be realized/collected in current period -- 0.04 0.03 0.11
Changes in California-related receivables and reserves (including
interest) (0.01) -- (0.08) (0.19) Non-trading unrealized energy
derivative losses 0.10 -- 0.21 0.07 Gain on sale of counterparty
claim (0.06) -- (0.06) -- FERC settlement in October 2003 and
adjustment in 2004 0.02 0.08 0.03 0.08 Accrual for payment to
CenterPoint Energy, Inc. -- -- -- 0.10 Restructuring costs
associated with lease on corporate headquarters 0.02 -- 0.02 --
Severance -- 0.03 0.06 0.07 Wholesale energy goodwill impairment --
3.35 -- 3.36 Equipment impairment related to turbines and
generators -- -- 0.03 -- Accelerated depreciation on retired
generation assets -- 0.03 0.03 0.03 Net loss from Liberty 0.01 0.01
0.04 0.03 Adjusted income from continuing operations $0.45 $0.86
$0.33 $0.68 Reference is made to Reliant Energy, Inc.'s Annual
Report on Form 10-K for the year ended December 31, 2003. Reliant
Energy, Inc. and Subsidiaries Condensed Consolidated Balance Sheets
(Thousands of Dollars) (Unaudited) September 30, 2004 December 31,
2003 ASSETS Current Assets: Cash and cash equivalents $93,503
$146,244 Restricted cash 278,210 234,113 Accounts and notes
receivable, principally customer, net 1,358,083 571,685 Notes
receivable related to receivables facility -- 393,822 Net
California receivables subject to refund -- 198,609 Inventory
258,403 266,430 Trading and derivative assets 290,233 493,046 Other
current assets 790,026 321,562 Current assets of discontinued
operations -- 66,324 Total current assets 3,068,458 2,691,835
Property, plant and equipment, gross 8,743,498 8,695,694
Accumulated depreciation (946,967) (705,149) Property, Plant and
Equipment, net 7,796,531 7,990,545 Other Assets: Goodwill, net
440,534 482,534 Other intangibles, net 659,695 650,549 Net
California receivables subject to refund 230,000 -- Trading and
derivative assets 254,183 199,716 Restricted cash 29,808 36,916
Other long-term assets 604,182 640,908 Long-term assets of
discontinued operations -- 617,828 Total other assets 2,218,402
2,628,451 Total Assets $13,083,391 $13,310,831 LIABILITIES AND
STOCKHOLDERS' EQUITY Current Liabilities: Current portion of
long-term debt and short-term borrowings $688,976 $391,403 Accounts
payable, principally trade 628,433 509,499 Trading and derivative
liabilities 275,151 348,614 Accrual for payment to CenterPoint
Energy, Inc. 176,600 175,000 Other current liabilities 577,847
515,349 Current liabilities of discontinued operations -- 61,109
Total current liabilities 2,347,007 2,000,974 Other Liabilities:
Trading and derivative liabilities 328,138 208,689 Other long-term
liabilities 934,784 934,965 Long-term liabilities of discontinued
operations -- 880,570 Total other liabilities 1,262,922 2,024,224
Long-term Debt 4,839,686 4,913,834 Commitments and Contingencies
Stockholders' Equity 4,633,776 4,371,799 Total Liabilities and
Stockholders' Equity $13,083,391 $13,310,831 Reference is made to
Reliant Energy, Inc.'s Annual Report on Form 10-K for the year
ended December 31, 2003. Reliant Energy, Inc. and Subsidiaries
Consolidated Statements of Cash Flows (Thousands of Dollars)
(Unaudited) Nine Months Ended September 30, 2004 2003 Cash Flows
from Operating Activities: Net income (loss) $234,989 $(1,374,650)
(Income) loss from discontinued operations (222,591) 477,664 Net
income (loss) from continuing operations and cumulative effect of
accounting changes 12,398 (896,986) 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
373,961 303,903 Deferred income taxes 8,835 30,735 Net unrealized
gains on trading energy derivatives (17,436) (37,973) Net
unrealized losses on non- trading energy derivatives 105,246 33,444
Net amortization of contractual rights and obligations (28,502)
(19,849) Amortization of deferred financing costs 26,513 60,828
Accrual for payment to CenterPoint Energy, Inc. 1,600 46,700 Other,
net 32,727 17,824 Changes in other assets and liabilities:
Restricted cash (36,989) (52,377) Accounts and notes receivable and
unbilled revenue, net (337,477) (97,867) Cash proceeds from
receivables facility, net 232,000 158,000 Inventory 7,197 15,139
Margin deposits on energy trading and hedging activities, net
(359,619) 224,707 Net non-trading derivative assets and liabilities
65,126 (99,611) Prepaid lease obligation (40,439) (32,486) Other
current assets (62,692) (31,123) Other assets (56,522) (93,111)
Accounts payable 117,979 (145,907) Taxes payable/receivable 55,577
104,276 Other current liabilities 46,626 34,280 Other liabilities
2,466 24,289 Net cash provided by continuing operations from
operating activities 141,285 555,890 Net cash used in discontinued
operations from operating activities (4,333) (18,795) Net cash
provided by operating activities 136,952 537,095 Cash Flows from
Investing Activities: Capital expenditures (148,470) (466,101)
Restricted cash -- (271,516) Other, net 12,394 2,900 Net cash used
in continuing operations from investing activities (136,076)
(734,717) Net cash provided by (used in) discontinued operations
from investing activities 869,373 (22,505) Net cash provided by
(used in) investing activities 733,297 (757,222) Cash Flows from
Financing Activities: Proceeds from long-term debt -- 1,612,109
Payments of long-term debt (138,791) (1,121,452) Decrease in
short-term borrowings and revolving credit facilities, net (3,850)
(1,072,976) Payments of financing costs (144) (183,280) Other, net
25,797 7,530 Net cash used in continuing operations from financing
activities (116,988) (758,069) Net cash used in discontinued
operations from financing activities (806,002) (13,934) Net cash
used in financing activities (922,990) (772,003) Effect of Exchange
Rate Changes on Cash and Cash Equivalents -- 7,985 Net Change in
Cash and Cash Equivalents (52,741) (984,145) Cash and Cash
Equivalents at Beginning of Period 146,244 1,114,850 Cash and Cash
Equivalents at End of Period $93,503 $130,705 Reference is made to
Reliant Energy, Inc.'s Annual Report on Form 10-K for the year
ended December 31, 2003. Reliant Energy, Inc. and Subsidiaries
Retail Operational Data (Unaudited) Retail Energy Revenues: Three
Months Ended Nine Months Ended September 30, September 30, 2004
2003 2004 2003 (in millions) (in millions) Retail energy revenues
from end-use retail customers: Texas: Residential and small
commercial $1,232 $1,229 $2,780 $2,711 Large commercial, industrial
and institutional 535 450 1,455 1,192 Outside of Texas: Commercial,
industrial and institutional 71 17 136 17 Total 1,838 1,696 4,371
3,920 Retail Energy revenues from resales of purchased power and
other hedging activities 113 209 243 658 Market usage adjustments
17 42 2 31 Unrealized losses -- (4) -- (8) Losses (gains) recorded
prior to 2003 realized/collected in current periods 1 (19) (16)
(50) Total retail energy revenues $1,969 $1,924 $4,600 $4,551
Retail Energy Operating Data: Three Months Ended Nine Months Ended
September 30, September 30, 2004 2003 2004 2003 (gigawatt hours)
(gigawatt hours) Electricity Sales from End-Use Retail Customers:
Texas: Residential: Price-to-beat(1) 6,688 6,909 15,357 16,562 Non
price-to-beat(2) 1,459 659 3,332 1,329 Total residential 8,147
7,568 18,689 17,891 Small commercial: Price-to-beat(3) 2,071 3,201
5,671 8,593 Non price-to-beat(4) 631 337 1,436 722 Total small
commercial 2,702 3,538 7,107 9,315 Large commercial, industrial and
institutional(5) 8,747 8,142 23,389 21,134 Total Texas 19,596
19,248 49,185 48,340 Outside of Texas: Commercial, industrial and
institutional 1,261 327 2,448 327 Total Outside of Texas 1,261 327
2,448 327 Total 20,857 19,575 51,633 48,667 September 30, December
31, 2004 2003 (in thousands, metered locations) Retail Customers:
Texas: Residential: Price-to-beat(1) 1,335 1,395 Non
price-to-beat(2) 306 222 Total residential 1,641 1,617 Small
commercial: Price-to-beat(3) 169 183 Non price-to-beat(4) 28 22
Total small commercial 197 205 Large commercial, industrial and
institutional(5) 40 38 Total Texas 1,878 1,860 Outside of Texas:
Commercial, industrial and institutional(6) 1 -- Total Outside of
Texas 1 -- Total 1,879 1,860 Three Months Ended Nine Months Ended
September 30, September 30, 2004 2003 2004 2003 (in thousands,
metered locations) Weighted Average Retail Customer Count: Texas:
Residential: Price-to-beat(1) 1,349 1,410 1,372 1,411 Non
price-to-beat(2) 284 131 256 91 Total residential 1,633 1,541 1,628
1,502 Small commercial: Price-to-beat(3) 171 202 175 206 Non
price-to-beat(4) 27 7 27 6 Total small commercial 198 209 202 212
Large commercial, industrial and institutional(5) 40 36 39 32 Total
Texas 1,871 1,786 1,869 1,746 Outside of Texas: Commercial,
industrial and institutional(7) 1 -- 1 -- Total Outside of Texas 1
-- 1 -- Total 1,872 1,786 1,870 1,746 (1) In the Houston area, the
Texas electric restructuring law currently requires us, as a former
affiliate of the transmission and distribution utility in Houston,
to sell electricity to residential customers only at a specified
price or "price-to-beat." (2) Outside of the Houston area, we are
generally permitted to sell electricity at unregulated prices to
residential and small commercial customers, or non "price-to-beat."
(3) Through December 17, 2003, the Texas electric restructuring law
required us, as a former affiliate of the transmission and
distribution utility in Houston, to sell electricity to small
commercial customers at a specified price or "price-to-beat." As of
that date, we had met the required threshold. (4) Beginning
December 17, 2003, we were permitted to sell electricity at
unregulated prices in the Houston area for our small commercial
customers. Outside of the Houston area, we have been generally
permitted to sell electricity at unregulated prices to small
commercial customers. These descriptions of customers are
collectively referred to as non "price-to-beat." (5) Includes
volumes/customers of the Government Land Office for whom we provide
services. (6) As of September 30, 2004 and December 31, 2003, our
retail customer count for commercial, industrial and institutional
customers outside of Texas was 1,342 and 195, respectively. (7) For
the three months ended September 30, 2004 and 2003 and the nine
months ended September 30, 2004 and 2003, our weighted average
retail customer count for the periods for which we sold electricity
to commercial, industrial and institutional customers outside of
Texas was 1,138, 119, 533 and 119, respectively. Reference is made
to Reliant Energy, Inc.'s Annual Report on Form 10-K for the year
ended December 31, 2003. Reliant Energy, Inc. and Subsidiaries
Wholesale Operational Data (Unaudited) Wholesale Energy Gross
Margin: Three Months Ended Nine Months Ended September 30,
September 30, 2004 2003 2004 2003 (in millions) (in millions) West
$73 $62 $111 $104 Mid-Atlantic 63 103 219 303 New York 103 91 250
187 Southeast 6 4 13 14 Mid-Continent 106 128 211 255 ERCOT 17 17
52 48 Other 3 12 17 26 Adjusted Plant Gross Margin 371 417 873 937
Liberty gross margin 9 3 18 17 Changes in California-related
receivables and reserves (4) -- 22 75 FERC settlement in October
2003 and adjustment in 2004 (12) (37) (12) (37) Non-trading
unrealized energy derivative gains (losses) 32 (3) 38 (25) Plant
Gross Margin 396 380 939 967 Trading margins 1 26 (1) (45) Total
Wholesale Energy Gross Margin $397 $406 $938 $922 Wholesale Energy
Operating Data (1): Three Months Ended Nine Months Ended September
30, September 30, 2004 2003 2004 2003 (gigawatt hours) (gigawatt
hours) Wholesale net power generation volumes 13,051 13,115 32,234
32,577 Wholesale power purchase volumes 10,328 21,542 26,108 54,257
Wholesale power sales volumes (2) 23,379 34,657 58,342 86,834 (1)
These amounts exclude volumes associated with our discontinued
operations. (2) 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 Annual Report on Form 10-K for the
year ended December 31, 2003. Reliant Energy, Inc. and Subsidiaries
Long-term Power Sales Commitments as of September 30, 2004
(Unaudited) Contracted capacity (MW)(1) Region Deal type Start date
Term(2) 2004 2005 2006 2007 Mid-Continent Aurora Capacity 5/15/2003
5 years 600 600 600 600 Aurora Capacity 11/1/2002 2 years 65 -- --
-- (May-Sept.) Orion Full 4/28/2000 5 years 1,700 -- -- --
requirements Orion Energy 8/12/1997 8 years 100 100 -- -- Orion
Full 6/1/2001 4 years 40 30 -- -- requirements Orion Full 5/1/2004
1 year 150 110 -- -- requirements 2,655 840 600 600 Mid-Atlantic
REMA Energy/ 6/1/2004 1 year 400 400 -- -- Capacity REMA Energy/
6/1/2004 3 years 300 300 300 300 Capacity REMA Energy/ 6/1/2004 1
year 100 100 -- -- Capacity REMA Energy/ 6/1/2004 3 years 100 100
100 100 Capacity REMA Energy/ 7/1/2004 Capacity 1 year 500 500 --
-- REMA Energy/ 7/1/2004 1 year 200 200 -- -- Capacity REMA Energy/
2/1/2002 3 years 45 -- -- -- Capacity REMA Energy/ 1/1/2005 3 years
-- 45 45 45 Capacity REMA Full 2/1/2004 5 years 35 35 35 35
requirements 1,680 1,680 480 480 Southeast Indian River Capacity
10/1/2001 4 years 500 300 -- -- Osceola Capacity 12/1/2001 5 years
330 330 330 -- Shady Hills(3) Capacity 3/1/2002 5 years 474 474 474
474 1,304 1,104 804 474 West West Capacity 6/1/2003 2 years 25 25
-- -- (June-Sept.) West Capacity 4/1/2002 5 years 100 100 100 --
(April-Sept.) West Capacity 1/1/2005 1 year -- 100 -- -- West
Capacity 10/1/2004 2 years 500 500 500 -- West Capacity 6/1/2004 1
year 482 482 -- -- West Capacity 1/1/2005 2 years -- 640 640 --
West Capacity 12/18/2002 20 years 10 10 10 10 1,117 1,857 1,250 10
ERCOT Channel- view Capacity 6/26/2002 17 years 265 293 293 293
Total 7,021 5,774 3,427 1,857 (1) Represents non over-the-counter
power sales commitments with an original term of 1 year or more.
(2) Term is rounded to the nearest full year. (3) Contracted
capacity. Reference is made to Reliant Energy, Inc.'s Annual Report
on Form 10-K for the year ended December 31, 2003. Reliant Energy,
Inc. and Subsidiaries Net Generation Volumes (1) (MWh) (Unaudited)
Three Months Ended Nine Months Ended September 30, September 30, By
region: 2004 2003 2004 2003 Mid-Continent 2,674,442 3,313,870
7,793,497 9,184,743 Mid-Atlantic 3,339,667 3,215,608 9,828,040
8,911,548 New York 1,339,566 1,350,107 3,152,550 2,792,300
Southeast 891,348 1,102,623 1,839,496 2,480,160 West 3,299,498
2,361,142 5,438,915 4,122,811 ERCOT 1,506,932 1,523,144 4,184,644
4,339,478 Total 13,051,453 12,866,494 32,237,142 31,831,040 Three
Months Ended Nine Months Ended September 30, September 30, By asset
type: 2004 2003 2004 2003 Base load 8,214,397 8,195,966 23,108,921
22,897,200 Intermediate 4,083,768 3,764,030 7,738,137 7,269,051
Peaking 753,288 906,498 1,390,084 1,664,789 Total 13,051,453
12,866,494 32,237,142 31,831,040 (1) Includes the effects of
discontinued operations, retirements and mothball actions to date.
Reference is made to Reliant Energy, Inc.'s Annual Report on Form
10-K for the year ended December 31, 2003. Reliant Energy, Inc. and
Subsidiaries Mid-Continent Asset Summary (Unaudited) Summer/ Q3 net
Winter Q3 net capacity Average Heat generation factor(2) Capacity
Rate volume(1) (MWh) (MWh) Unit Name (MW) (MMBtu/MWh) 2004 2003
2004 2003 Base Load Avon Lake 7 & 9 692 10.5 966,820 1,023,768
63% 67% Cheswick 1 583 9.4 827,813 986,080 64% 77% Elrama 1-4 487
11.7 287,273 518,718 27% 48% New Castle 3-5 325 10.3 354,065
361,468 49% 50% Niles 1-2 216 10.1 194,807 333,886 41% 70% 2,303
2,630,778 3,223,920 52% 63% Intermediate Brunot Island CCGT 287 8.5
(718) 8,454 0% 1% Peaking Aurora 1-10 912 10.7 39,166 62,184 2% 3%
Avon Lake 10 29 14 246 334 0% 1% Brunot Island 1A-1C 60 14.1 5 305
0% 0% Ceredo 1-6 475 12.2 -- 14,241 0% 1% New Castle A-B 6 11.6 9
43 0% 0% Niles A 30 14.2 (39) 31 0% 0% Shelby 1-8 371 10.3 4,995
4,358 1% 1% 1,883 44,382 81,496 1% 2% Mid-Continent Total 4,473
2,674,442 3,313,870 27% 34% (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 Annual Report on Form 10-K for the
year ended December 31, 2003. Reliant Energy, Inc. and Subsidiaries
Mid-Atlantic Asset Summary (Unaudited) Summer/ Q3 net Winter Q3 net
capacity Average Heat generation factor(2)(3) Unit Name(3)
Capacity(3) Rate(3) volume(1)(3) (MWh) (MWh) (MW) (MMBtu/MWh) 2004
2003 2004 2003 Base Load Conemaugh 1-2 (16%) 280 9.6 597,292
552,119 97% 89% Deep Creek 1-2 19 N/A 5,918 14,619 14% 35% Keystone
1-2 (16%) 282 9.6 497,429 578,061 80% 93% Piney Station 1-3 28 N/A
19,823 21,883 32% 35% Portland 1&2 400 10.2 469,430 549,402 53%
62% Seward 1 520 9.7 -- -- 0% 0% Shawville 1-4 608 10.2 749,007
868,735 56% 65% Titus 1-3 246 11.1 293,465 320,106 54% 59% 2,383
2,632,364 2,904,925 50% 55% Intermediate Gilbert CCGT 336 10.4
4,381 37,873 1% 5% Gilbert 9 168 11.1 531 6,844 0% 2% Hunterstown
CCGT 795 7.7 121,428 21,671 7% 1% Liberty 568 7 545,451 197,340 43%
16% Portland 5 144 11.9 873 20,976 0% 7% 2,011 672,664 284,704 15%
6% Peaking Blossburg 1 23 14.4 662 979 1% 2% Gilbert 1-4 111 16.8
862 732 0% 0% Glen Gardner 1-8 184 15 2,591 1,836 1% 0% Hamilton 1
23 15.4 1,332 969 3% 2% Hunterstown 1-3 71 16.7 7,124 1,618 5% 1%
Mountain 1-2 47 15.8 1,079 2,875 1% 3% Orrtanna 1 23 15.3 625 627
1% 1% Portland 3-4 40 15.4 127 287 0% 0% Sayreville 1-4 264 18.5
9,700 4,962 2% 1% Shawnee 1 23 15.7 40 25 0% 0% Shawville 5-7 6
17.1 (13) 5 0% 0% Tolna 1-2 47 15.3 2,037 4,614 2% 4% Titus 4-5 35
17.1 74 2,895 0% 4% Warren 3 68 15.9 (65) 1,451 0% 1% Werner 1-4
252 17.4 8,374 2,030 2% 0% Keystone 3-6 2 17.1 79 61 2% 1%
Conemaugh A-D 2 17.1 11 13 0% 0% 1,221 34,639 25,979 1% 1%
Mid-Atlantic Total 5,615 3,339,667 3,215,608 27% 26% (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)
Excludes (a) Wayne 1 of 66 MW, which was retired in May 2004, (b)
Sayreville 4 & 5 of 232 MW, which were retired in February 2004
and (c) Seward 4 & 5 of 197 MW, which were retired in November
2003. Reference is made to Reliant Energy, Inc.'s Annual Report on
Form 10-K for the year ended December 31, 2003. Reliant Energy,
Inc. and Subsidiaries New York Asset Summary (Unaudited) Summer/ Q3
net Winter Q3 net capacity Average Heat generation factor(2)
Capacity Rate volume(1) (MWh) (MWh) Unit Name (MW) (MMBtu/MWh) 2004
2003 2004 2003 Intermediate Astoria 3-5 1,105 10.3 1,138,630
1,131,553 47% 46% Peaking Astoria 2 178 12.8 18,574 41,892 5% 11%
Gowanus 1-4 610 18.5 64,742 56,192 5% 4% Narrows 1-2 317 18.5
117,620 120,470 17% 17% 1,105 200,936 218,554 8% 9% New York Total
2,210 1,339,566 1,350,107 27% 28% (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 Annual Report on Form 10-K for the
year ended December 31, 2003. Reliant Energy, Inc. and Subsidiaries
Southeast Asset Summary (Unaudited) Summer/ Q3 net Winter Q3 net
capacity Average Heat generation factor(2)(3) Unit Name(3)
Capacity(3) Rate(3) volume(1)(3) (MWh) (MWh) (MW) (MMBtu/MWh) 2004
2003 2004 2003 Base Load Sabine 54 10.0 84,758 72,704 71% 61%
Intermediate Indian River 1-3 587 11.0 333,259 449,450 26% 35%
Peaking Osceola 1-3 465 10.9 199,185 267,800 19% 26% Shady Hills
(4) 474 10.8 152,922 252,055 15% 24% Vandolah (4) 630 10.8 121,224
60,614 9% 4% 1,569 473,331 580,469 14% 17% Southeast Total 2,210
891,348 1,102,623 18% 23% (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) Excludes
Choctaw of 822 MW, which was mothballed in May 2004. (4) Under
contract. Reference is made to Reliant Energy, Inc.'s Annual Report
on Form 10-K for the year ended December 31, 2003. Reliant Energy,
Inc. and Subsidiaries West Asset Summary (Unaudited) Summer/ Q3 net
Winter Q3 net capacity Average Heat generation factor(2)(3) Unit
Name(3) Capacity(3) Rate(3) volume(1)(3) (MWh) (MWh) (MW)
(MMBtu/MWh) 2004 2003 2004 2003 Base Load Bighorn CCGT 591 7.8
888,727 -- 68% 0% El Dorado CCGT 235 7.1 470,838 471,273 91% 91%
826 1,359,565 471,273 75% 91% Intermediate Coolwater 1-2 146 10.5
17,967 42,949 6% 13% Coolwater 3-4 476 9.9 287,253 470,831 27% 45%
Etiwanda 3-4 640 10 212,515 201,543 15% 14% Mandalay 1-2 430 9.7
298,834 315,340 31% 33% Ormond Beach 1-2 1,516 9.6 1,123,364
859,206 34% 26% 3,208 1,939,933 1,889,869 27% 27% West Total 4,034
3,299,498 2,361,142 37% 27% (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) Excludes
(a) retired capacity at Etiwanda 1, 2 and 5 of 382 MW, (b)
mothballed capacity at Mandalay 3 of 130 MW and (c) mothballed
capacity at Ellwood of 54 MW. Etiwanda 3 and 4 were mothballed in
November 2003 and were returned to service September 2004 and July
2004, respectively, under a reliability-must-run contract with the
California Independent System Operator through the end of 2004.
Reference is made to Reliant Energy, Inc.'s Annual Report on Form
10-K for the year ended December 31, 2003. Reliant Energy, Inc. and
Subsidiaries ERCOT Asset Summary (Unaudited) Summer/ Q3 net Winter
Q3 net capacity Average Heat generation factor(2) Capacity Rate
volume(1) (MWh) (MWh) Unit Name (MW) (MMBtu/MWh) 2004 2003 2004
2003 Base Load Channelview 805 6.6 1,466,289 1,491,419 82% 84%
Landfill Gas 26 11.0 40,643 31,725 71% 55% ERCOT Total 831
1,506,932 1,523,144 82% 83% (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 Annual Report on Form 10-K for the
year ended December 31, 2003. PRNewswire -- Nov. 3 END FIRST AND
FINAL ADD DATASOURCE: Reliant Energy, Inc. Web site:
http://www.reliant.com/corporate
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