Outlook RWE Power

RWE Power’s operating result is expected to be higher than last year, despite the prolonged outage of our nuclear power plant in Biblis. We have already sold forward almost all our German 2009 generation. Since most of the forward sales were made in 2007 and 2008, we are still benefiting from the higher wholesale electricity prices seen until the middle of last year. From our present point of view, the maintenance outage at the Biblis power station will have an adverse effect in the order of € 1.0 billion compared to 2008. Biblis’ recommissioning has been delayed further: Block B is not expected to go back online until mid-November, with Block A scheduled to become operational again in the middle of January 2010. This would translate into outages of ten and ten-and-a-half months, respectively. In August, we had anticipated interruptions of eight and seven months. But RWE Power is expected to fully offset these additional burdens. However, we expect that fuel purchasing costs will rise by about € 0.3 billion. Staff costs are likely to grow as well. Costs arising from the shortage of CO2 certificates are anticipated to be below the 2008 level (€ 1.1 billion). We expect that RWE Power will have to buy some 35 % of the CO2 certificates it needs in Germany in 2009, or obtain them via the Kyoto “Clean Development Mechanism” and “Joint Implementation” projects.