Net income (loss)

Income tax expense (benefit)

Interest expense and related charges

Depreciation and amortization

EBITDA

Interest income

Amortization of nuclear fuel

Purchase accounting adjustments (a)

Impairment of goodwill

Impairment of assets and inventory write down (b)

Net gain on debt exchange offers

EBITDA amount attributable to consolidated unrestricted subsidiaries

Unrealized net (gain) loss resulting from hedging transactions

Amortization of “day one” net loss on Sandow 5 power purchase agreement

Corporate depreciation, interest and income tax expenses included in SG&A expense

Losses on sale of receivables

Noncash compensation expense (c)

Severance expense

Transition and business optimization costs (d)

Transaction and merger expenses (e)

Restructuring and other (f)

Expenses incurred to upgrade or expand a generation station (g)

Adjusted EBITDA per Incurrence Covenant

Expenses related to unplanned generation station outages

Pro forma adjustment for Sandow 5 and Oak Grove 1 reaching 70% capacity in Q1 2010 (h)

Other adjustments allowed to determine Adjusted EBITDA per Maintenance Covenant (i)

Adjusted EBITDA per Maintenance Covenant

(a)

Purchase accounting adjustments include amortization of the intangible net asset value of retail and wholesale power sales agreements, environmental credits, coal purchase contracts, nuclear fuel contracts and power purchase agreements and the stepped up value of nuclear fuel. Also include certain credits not recognized in net income due to purchase accounting.

(b)

Impairment of assets includes impairment of land.

(c)

Noncash compensation expenses represent amounts recorded under stock-based compensation accounting standards and exclude capitalized amounts.

(d)

Transition and business optimization costs include incentive compensation expenses and professional fees primarily for retail billing and customer care systems enhancements.

(e)

Transaction and merger expenses include costs related to the Merger, the Sponsor Group management fee, outsourcing transition costs and costs related to certain growth initiatives.

(f)

Restructuring and other includes gains on termination of a long-term power sales contract and settlement of amounts due from a hedging/trading counterparty, and reversal of certain liabilities accrued in purchase accounting.

(g)

Expenses incurred to upgrade or expand a generation station reflect noncapital outage costs.

(h)

Pro forma adjustment for Sandow 5 and Oak Grove 1 represents the annualization of the actual three months ended March 31, 2010 EBITDA results for these two units.

(i)

Primarily pre-operating expenses relating to Oak Grove and Sandow 5.