HOUSTON, April 18 /PRNewswire-FirstCall/ -- Reliant Energy, Inc. (NYSE:
RRI) today announced that it has reached an agreement with stockholder
Seneca Capital, L.P. ("Seneca") under which Seneca will cease its efforts
to run a slate of three director nominees for election to Reliant's board
of directors at its 2006 annual meeting of stockholders.
Under the terms of the agreement, Reliant will appoint a director to
the board who is a representative of a substantial institutional
stockholder of the company. The director shall be selected at the sole
discretion of the board upon the recommendation of the nominating and
corporate governance committee. The agreement provides that the director
will be appointed on or before September 1, 2006. Pursuant to the
agreement, Seneca has withdrawn its director nominees and agreed to vote in
favor of the election of each of the board's nominees at the 2006 annual
meeting.
Commenting on the agreement, Joel Staff, chairman and chief executive
officer of Reliant, stated, "We have maintained an open dialogue with
Seneca, both prior to and following notification of its intent to nominate
a slate of directors. We believe that the agreement that we have reached is
in the best interest of the company and all of our stockholders."
Staff continued, "The Reliant board had previously announced its
intention to add two new independent members to the board before the end of
the year. The board intends to conduct a thorough and fulsome search for
the best- qualified candidates, including candidates suggested by
stockholders. The agreement reached with Seneca will enable Reliant's board
to proceed with that plan."
Reliant Energy filed its definitive proxy materials for its 2006 annual
meeting of stockholders on April 13, 2006 and mailed the materials to its
stockholders of record at the close of business on March 22, 2006 on April
17, 2006.
About Reliant Energy
Reliant Energy, Inc. (NYSE: RRI) based in Houston, Texas, provides
electricity and energy services to retail and wholesale customers in the
United States. In Texas, the company provides service to approximately 1.9
million retail electricity customers, including residential and small
business customers and large commercial, industrial, governmental and
institutional customers. Reliant also serves commercial, industrial,
governmental and institutional customers in the PJM (Pennsylvania, New
Jersey and Maryland) market.
The company is one of the largest independent power producers in the
nation with approximately 16,000 megawatts of power generation capacity
across the United States. These strategically located generating assets
utilize natural gas, fuel oil and coal. For more information, visit
http://www.reliant.com/corporate .
This news release contains "forward-looking statements."
Forward-looking statements are statements that contain projections,
estimates or assumptions about our revenues, income and other financial
items, our plans for the future, future economic performance, transactions
and dispositions and financings related thereto. Forward-looking statements
relate to future events and anticipated revenues, earnings, business
strategies, competitive position or other aspects of our operations or
operating results. In many cases you can identify forward-looking
statements by terminology such as "anticipate," "estimate," "believe,"
"continue," "could," "intend," "may," "plan," "potential," "predict,"
"should," "will," "expect," "objective," "projection," "forecast," "goal,"
"guidance," "outlook," "effort," "target" and other similar words. However,
the absence of these words does not mean that the statements are not
forward-looking.
We have based our forward-looking statements on management's beliefs
and assumptions based on information available to management at the time
the statements are made. Actual results may differ materially from those
expressed or implied by forward-looking statements as a result of many
factors or events, including legislative and regulatory developments, the
outcome of pending lawsuits, governmental proceedings and investigations,
the effects of competition, financial market conditions, access to capital,
the timing and extent of changes in commodity prices and interest rates,
weather conditions, changes in our business plan and other factors we
discuss in our filings with the Securities and Exchange Commission.
Each forward-looking statement speaks only as of the date of the
particular statement and we undertake no obligation to update or revise any
forward-looking statement, whether as a result of new information, future
events or otherwise.
SOURCE Reliant Energy, Inc.
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Related links:
http://www.reliant.com/corporate
CONTACT:
Pat Hammond, media, +1-713-497-7723, or
Dennis Barber, investors, +1-713-497-3042, both of Reliant
Energy, Inc.
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