Commercial Operations & Origination

The Commercial Operations and Origination group seeks to optimize the value of Reliant Energy’s power generation and related assets.

We work closely with our Plant Operations group to economically dispatch our generation fleet. To effectively manage economic risk, we sell energy and purchase fuel on a forward basis.

Reliant sells electric energy, generation capacity and ancillary service products to a variety of power customers, including:

• independent power producers
• power grids/ISOs
• investor-owned utilities
• municipalities
• cooperatives
• other companies that serve end users

Because our facilities are not subject to traditional cost-based regulation, we can generally sell electricity at market-determined prices. We sell these products in hour-ahead, day-ahead, forward bilateral and ISO markets.

Our origination group identifies opportunities to purchase or sell non-standard energy products and services. The group tailors custom solutions that create value for our wholesale customers and Reliant.

To ensure an adequate supply of fuel, we purchase natural gas, coal and fuel oil for our generation plants from a variety of suppliers under daily, monthly and longer-term contracts. We also contract for a variety of transportation arrangements under short-term, long-term, firm and interruptible agreements.

Reliant is a member of several Regional Transmission Organizations (RTO) and Independent System Operators (ISO) organizations such as the Electric Reliability Council of Texas (ERCOT), the PJM Interconnection (PJM), the Midwest ISO (MISO), the California ISO (CAISO) and the New York ISO (NYISO). Reliant also participates in the energy markets in the southeast, primarily in Florida.

The commercial operations group works with these organizations to ensure a safe, reliable supply of electricity to the grid through participation in ISO-sponsored markets for energy and ancillary services. Our company also secures transmission rights through RTO and ISO-sponsored auctions.

Reliant’s generation facilities meet or exceed all applicable federal, state and local environmental restrictions. Our ongoing improvement programs use the latest technologies to limit the environmental impact of our operations. Where environmental cap and trade programs exist, our commercial operations group manages our positions in the respective markets.