NRG Energy, Inc. Financial Update on Winter Storm Uri Impacts

NRG Energy, Inc. (NYSE: NRG) today announced the Company is providing an interim financial impact update reflecting the unprecedented effect on the ERCOT system and settlement data from the winter storm. As a result of this new information and the ongoing regulatory uncertainties where the impacts of proposed changes cannot be reasonably estimated, the Company is withdrawing previously announced 2021 financial guidance.

During February 2021, Texas experienced unprecedented cold temperatures for a prolonged duration, resulting in a power emergency situation including power outages and an estimated all-time peak demand of 77 GWs (without load shed). Ahead of the event, NRG launched residential customer communications calling for conservation across all of its brands and initiated demand response programs to curtail customer load across all customer segments (residential, commercial and industrial). The Company also maximized available generating capacity and brought in additional resources to supplement in-state staff with technical and operating experts from the rest of its U.S. fleet.

“Our priority today is both to continue helping our Texas communities recover and working with all necessary stakeholders to improve the resilience of the energy system,” said Mauricio Gutierrez, NRG President and Chief Executive Officer. “Based on the new information available to us today, we are unable to provide financial guidance due to the unprecedented and unpredictable market outcomes resulting from winter storm Uri.”

The full financial impact of Winter Storm Uri still remains uncertain as it is subject to recently proposed regulatory changes including repricing, finalizing Commercial and Industrial meter and settlement data, and potential customer and counterparty risk including ERCOTs’ shortfall payments and uplift charges. Based on the information known to date, which is not complete and subject to change, Winter Storm Uri’s financial impact is estimated to be a $750 million loss compared to the prior guidance range provided on March 1, 2021. The impact is driven by the following elements received from ERCOT since NRG’s last earnings call: