Reliant Resources to Acquire Orion Power Improving Generation Source Diversification

---

The following is an advisory by Industrialinfo.com (Industrial Information Resources, Inc; Houston, Texas). Private Energy Producer (PEP), Reliant Resources, Incorporated (NYSE: RRI) (Houston, Texas) is merging with Orion Power Holdings, Incorporated (NYSE: ORN) (Baltimore, Md.) and thereby increasing generating capacity operating, under construction, or in advanced development from 14,100 mega-watts (MW) to 20,600MW. This will also change the type of generation to more equal portions. Currently, Reliant generation has a fuel mix of 52% natural gas, 29% dual fuel (natural gas/oil), 14% coal, 4% oil and 1% hydro. When the acquisition is complete, the new mix will be 47% natural gas, 27% dual fuel, 21% coal, 3% hydro & 2% oil.

Reliant has an additional 3,500MW of generation capacity in Europe and will have the option to absorb another 14,000MW of capacity currently held by a regulated division of Reliant when deregulation comes to Texas, potentially increasing generation capacity over 30,000MW.

Reliant went public in October 2000 but its stock is still 80% held by Reliant Energy. Orion Power was formed in March 1998 by Constellation Energy Group & Goldman Sachs Company to develop and operate power plants in a deregulated market. Orion currently has interest in 81 plants for a total of 5,926MW with 5,000MW under construction or in advanced development.