RRI Energy has reported open EBITDA of $133m for the third quarter of 2009, compared to $248m for the same period of 2008. The decline was primarily due to lower unit margins resulting from lower commodity prices and lower power demand.

Adjusted EBITDA was $100m for the third quarter of 2009, compared to $350m for the third quarter of 2008. Out-of-the-money coal hedges in 2009 compared to in-the-money coal hedges in 2008 form the primary difference between open and adjusted EBITDA for both periods.

Free cash flow used in continuing operations was $179m for the first nine months of 2009, compared to free cash flow provided by continuing operations of $298m for the same period in 2008. These results exclude the performance of the Texas retail business, which was sold on May 1, 2009 and is included in discontinued operations.

Mark Jacobs, president and CEO of RRI Energy, said: “Managing challenges of this difficult economic environment continues to be our primary focus. Our modest hedging program, which provides a high probability of achieving free cash flow breakeven or better in 2010 and 2011, secured debt reduction, and over $1.1 billion of cash position us to deliver long-term value to shareholders when the market recovers.

“Notwithstanding the difficult market conditions, we have taken actions to maximize the value of our assets through efficiency and effectiveness. Some of those actions include reducing our cost structure, utilizing invested capital more efficiently and implementing flexible operating models at some of our generating stations.”

Open EBITDA was $129m for the first nine months of 2009, compared to $505m for the same period of 2008. Adjusted EBITDA was $42m for the first nine months of 2009, compared to $709m for the first nine months of 2008. These results exclude the performance of the Texas retail business, which was sold on May 1, 2009 and is included in discontinued operations.

The loss from continuing operations before income taxes for the third quarter of 2009 was $9m, compared to income of $183m for the third quarter of 2008. The reported results include net unrealized gains from energy derivatives of $7m in 2009 and net unrealized losses from energy derivatives of $40m in 2008.

Houston-based RRI Energy provides electricity to wholesale customers in the US.