The following discussion should be read together with the unaudited condensed consolidated financial statements and the notes thereto included in this report and with the audited consolidated financial statements and the notes thereto included in our Form 10-K.<br /><br />We are holding companies and conduct substantially all of our business operations through our subsidiaries. Our current business operations are focused primarily on the power generation sector of the energy industry. We report the results of our power generation business as three separate segments in our consolidated financial statements: (i) the Midwest segment ("GEN-MW"); <br />(ii) the West segment ("GEN-WE"); and (iii) the Northeast segment ("GEN-NE"). Our unaudited condensed consolidated financial results also reflect corporate-level expenses such as general and administrative, interest and depreciation and amortization.<br /><br />New Management Team. On July 11, 2011, Robert C. Flexon, a director of Dynegy, was appointed as our President and Chief Executive Officer. Mr. Flexon replaced E. Hunter Harrison, who served as interim President and Chief Executive Officer since April 2011. Mr. Harrison resumed his role as an independent director and serves as non-executive Chairman of our Board of Directors. Additionally, on July 5, 2011, Clint C. Freeland was appointed as our Executive Vice President and Chief Financial Officer and Kevin T. Howell was appointed as our Executive Vice President and Chief Operating Officer. In July 2011, we announced the appointment of Carolyn J. Burke as Executive Vice President and Chief Administrative Officer, effective August 30, 2011.<br /><br />Reorganization Activity. In August 2011, we completed the Reorganization of our subsidiaries, whereby (i) substantially all of our coal-fired power generation facilities are held by DMG, (ii) substantially all of our natural gas-fired power generation facilities are held by DPC and (iii) 100 percent of the ownership interests of DNE, the entity that indirectly holds the equity interests in the subsidiaries that operate the Roseton and Danskammer power generation facilities, are held by DHI. We completed the Reorganization of our legal entity structure to facilitate the execution of two new credit facilities. The new credit facilities, which were entered into August 5, 2011, consist of the GasCo Term Loan Facility, a $1,100 million, five year senior secured term loan facility available to GasCo, and the CoalCo Term Loan Facility, a $600 million, five year senior secured term loan facility available to CoalCo. Please read Note 13-Subsequent Events for further discussion.<br /><br />The proceeds of borrowings under the GasCo Term Loan Facility were or will be used by GasCo to (i) repay an intercompany obligation of a GasCo subsidiary to DHI and ultimately to repay certain outstanding indebtedness under DHI's Fifth Amended and Restated Credit Agreement, (ii) fund cash collateralized letters of credit and cash collateral for existing and future collateral requirements, <br />(iii) at the option of GasCo, repay up to approximately $192 million of debt relating to Sithe Energies, Inc. (the intermediate project holding company that indirectly holds the Independence facility in New York), (iv) make a $200 million restricted payment to a parent holding company of GasCo, (v) pay related transaction fees and expenses and (vi) fund additional cash to the balance sheet to provide the GasCo portfolio with liquidity for general working capital and liquidity purposes.<br /><br />The proceeds of borrowings under the CoalCo Term Loan Facility were or will be used by CoalCo, to (i) fund cash collateralized letters of credit and cash collateral for existing and future collateral requirements, (ii) make a $200 million restricted payment to a parent holding company of CoalCo, (iii) pay related transaction fees and expenses and (iv) fund additional cash to the balance sheet to provide the CoalCo portfolio with cash to be used for general working capital and general corporate purposes.<br /><br />Going Concern. Our accompanying unaudited condensed consolidated financial statements have been prepared assuming that we will continue as a going concern, which contemplates realization of assets and the satisfaction of liabilities in the normal course of business for the twelve month period following the date of these unaudited condensed consolidated financial statements. However, continued low power prices over the past two years have had a significant adverse impact on our business and continue to negatively impact our projected future liquidity.<br />