Firm Advises Reliant Energy in its Credit Retail Agreement with Merrill Lynch

December 7, 2006

NEW YORK (Dec. 7, 2006) – Bracewell & Giuliani LLP advised Reliant Energy Inc. in its credit-enhanced retail structure agreement with Merrill Lynch which closed Dec. 1.

Under the terms of the agreement, Merrill Lynch guarantees the supply purchases and related transactions of Reliant's retail business.  As a result, Reliant is no longer required to post collateral for its retail supply purchases.  Merrill Lynch provides a credit facility to finance some of the working capital needs of the retail business.

In conjunction with the agreement, the company has also completed a series of refinancing activities which should result in a gross debt reduction of more than $500 million.  Reliant has refinanced its $1.7 billion revolving credit facility, $530 million of term loans, and $450 million retail receivables securitization facility with new credit facilities including a $700 million revolving credit facility, a $400 million term loan and a $300 million synthetic letter of credit facility.

Reliant Energy, based in Houston, is one of the largest independent power producers in the nation with approximately 16,000 megawatts of power generation capacity across the United States.

Bracewell’s Team

Partners: Robert G. Stephens, Gregory M. Bopp, Heather L. Brown, Catherine H. Day, Robert Joe Hull, Stan R. Jensen, Robin J. Miles, Constance G. Rhebergen, Phyllis P. Stephenson, Charles H. Still, Steven R. Tredennick, William A. Wood III.

Associates:  Jeffrey J. Bates, Carlyn M. Carey, Michael A. Crabtree, Averill H. Conn, Rhett E. Jackson, Jessica A. Nolley, Meghan P. Smith, Jay T. Sonnenberg, Emily B. Sperandio.