"I believe the IPP model is now obsolete, and unable to create value over the long-term," Mauricio Gutierrez, NRG President and Chief Executive Officer, said during an earnings call this morning

"I want to reiterate my belief that the competitive power sector is in a period of unprecedented disruption," Gutierrez said

"Changes in fuel mix, consumer preference, technological innovation, and increased distributed generation have put pressure on the traditional IPP model, particularly as commodity markets continue to weaken," Gutierrez said

"While sufficient at the outset of competitive markets, I believe the IPP model is now obsolete, and unable to create value over the long-term," Gutierrez said

Reiterating points from last year's earnings call, Gutierrez said there are six factors needed for the success of a competitive power company:

• Consistent Operational Excellence

• Revenue Diversification, both in terms of generation portfolio and business lines

• Scalable Platform for Growth

• Appropriate Capital Structure (deleveraging)

• Efficient Cost Structure

• Flexible, Disciplined Approach to Allocating Capital

Gutierrez further said that the integration of retail with generation allows NRG to capture synergies, and provides stable cash flows and minimizes exposure to downturns.