PROSPECTUS 28,170,000 Shares NRG Energy, Inc. Common Stock $15.00 per share NRG Energy, Inc. is selling 28,170,000 shares of its common stock. The underwriters named in this prospectus may purchase up to 4,225,500 additional shares of common stock from us under certain circumstances. This is an initial public oÅering of common stock. The common stock has been approved for listing on the New York Stock Exchange under the symbol ""NRG.'' The shares of common stock being sold will have one vote per share. The shares of class A common stock held by our parent company, Northern States Power Company, are identical to shares of common stock except that they have 10 votes per share. Upon completion of this oÅering, Northern States Power will control approximately 98% of the combined voting power of our common stock and class A common stock. Investing in the common stock involves certain risks. See ""Risk Factors'' beginning on page 7. Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or determined if this prospectus is truthful or complete. Any representation to the contrary is a criminal oÅense. Per Share Total Public OÅering Price $15.00 $422,550,000 Underwriting Discount $ 0.90 $ 25,353,000 Proceeds to NRG Energy, Inc. (before expenses) $14.10 $397,197,000 The underwriters are oÅering the shares subject to various conditions. The underwriters expect to deliver the shares to purchasers on or about June 5, 2000. Salomon Smith Barney Credit Suisse First Boston ABN AMRO Rothschild a division of ABN AMRO Incorporated Banc of America Securities LLC Goldman, Sachs & Co. Lehman Brothers Merrill Lynch & Co. Morgan Stanley Dean Witter May 30, 2000 You should rely only on information contained in this prospectus. NRG Energy, Inc. has not authorized anyone to provide you with diÅerent information. NRG Energy, Inc. is not making an oÅer of these securities in any state where the oÅer is not permitted. You should not assume that the information provided by this prospectus is accurate as of any date other than the date on the front of this prospectus. TABLE OF CONTENTS Page SummaryÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 1 Risk Factors ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 7 Use of Proceeds ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 18 Dividend Policy ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 18 Capitalization ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 19 Selected Consolidated Financial and Other DataÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 20 Management's Discussion and Analysis of Financial Condition and Results of OperationsÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 22 BusinessÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 32 Management ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 66 Ownership of Capital Stock ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 76 Relationships and Related TransactionsÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 77 Description of Capital StockÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 79 Description of Indebtedness ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 83 Shares Eligible for Future SaleÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 88 Material United States Tax Consequences to Non-United States Holders ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 89 Underwriting ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 91 Legal Matters ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 93 ExpertsÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 93 Available Information ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 93 Index to Financial Statements ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ F-1 SUMMARY The following summary is qualiÑed in its entirety by, and should be read together with, the more detailed Ñnancial and other information included in this prospectus. All of the following information reÖects our recapitalization, to be eÅective immediately prior to this oÅering, and assumes that the underwriters have not exercised their option to purchase an additional 4,225,500 shares of common stock within 30 days of the date of this prospectus. Before you invest in our common stock, you should consider carefully the information contained in the section entitled ""Risk Factors,'' beginning on page 7. NRG Energy, Inc. NRG Energy, Inc. is a leading global energy company primarily engaged in the acquisition, development, ownership and operation of power generation facilities and the sale of energy, capacity and related products. We believe we are one of the three largest independent power generation companies in the United States and the sixth largest independent power generation company in the world, measured by our net ownership interest in power generation facilities. We own all or a portion of 57 generation projects that have a total generating capacity of 23,660 megawatts (""MW''); our net ownership interest in those projects is 13,664 MW. Upon the closing of our pending acquisition from Conectiv of interests in six power generation facilities, which we expect to occur later this year, we will have interests in projects having a total generating capacity of 28,722 MW; our net ownership interest in those projects will be 15,539 MW. In addition, we have an active acquisition and development program through which we are pursuing additional generation projects. As the following table illustrates, we have grown signiÑcantly during the last three years, primarily as a result of our success in acquiring domestic power generation facilities: Year ended December 31, 1997 1998 1999 Net Ownership Interest (in MW at year end) ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 2,637 3,300 10,990 Operating Income (in thousands)ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $18,109 $57,012 $109,520 We intend to continue our growth through a combination of targeted acquisitions in selected core markets, the expansion or repowering of existing facilities and the development of new greenÑeld projects. To prepare for expansion, repowering and greenÑeld opportunities, we have recently agreed to purchase 16 turbine generators from GE Power Systems and two turbine generators from Siemens Westinghouse over a six year period commencing in 2001. These new turbines, which we expect to install at domestic facilities, will have a combined generating capacity of approximately 3,300 MW. In addition to our power generation projects, we also have interests in district heating and cooling systems and steam transmission operations. Our thermal and chilled water businesses have a steam and chilled water capacity equivalent to approximately 1,204 MW. We believe that through our subsidiary NEO Corporation we are one of the largest landÑll gas generation companies in the United States, extracting methane from landÑlls to generate electricity. NEO owns 30 landÑll gas collection systems and has 55 MW of net ownership interests in related electric generation facilities. NEO also has 35 MW of net ownership interests in 18 small hydroelectric facilities. Market Opportunity The power industry is one of the largest industries in the world, accounting for approximately $200 billion in annual revenues and having approximately 800,000 MW of installed generating capacity in the United States alone. The generation segment of the industry historically has been characterized by regulated electric utilities producing and selling electricity to a captive customer base. However, the power generation market has been evolving from a regulated market based upon cost of service pricing to a non- 1 regulated competitive market. We believe that the power industry will continue to undergo substantial restructuring over the next several years and will experience signiÑcant growth in the future. As of January 2000, 22 states had enacted legislation to restructure their electric utility industries, four additional state public utility commissions had issued comprehensive restructuring orders and 20 additional states had active legislative or regulatory processes underway to study restructuring and propose implementing legislation. As a result, from January 1, 1997 through December 31, 1999, approximately 70,000 MW of the power generating capacity in the United States had been sold or transferred by regulated electric utilities to independent power producers. We expect in excess of 70,000 MW of additional power generating capacity to be sold to independent power producers by the end of 2002. We believe that increasing demand and the need to replace old and ineÇcient generation facilities will create a signiÑcant need for additional power generating capacity throughout the United States. In our view, these factors combined with recent restructuring legislation provide an attractive environment in the United States for an independent power producer like us with a history of successfully developing, acquiring and operating power generation facilities. Outside of the United States, many governments in developed economies are privatizing their utilities and developing regulatory structures that are expected to encourage competition in the electricity sector, having realized that their energy assets can be sold to raise capital without hindering system reliability. In developing countries, the demand for electricity is expected to grow rapidly. In order to satisfy this anticipated increase in demand, many countries have adopted active government programs designed to encourage private investment in power generation facilities. We believe that these market trends will continue to create opportunities to acquire and develop power generation