HOUSTON -- Reliant Energy Inc. said Monday it is looking for a buyer amid turmoil in the credit markets and a violent storm season that cost the electricity provider millions.

Reliant said it is exploring "strategic alternatives," a term typically used by companies considering a sale, either whole or partial.

Just a week ago, the energy retailer cut its profit forecast and said it had to raise $1 billion because of damage from Hurricane Ike and a new credit arrangement. The company said Hurricane Ike, which struck the Texas Gulf Coast earlier this month, reduced sales volumes and increased operating costs at its retail unit.

Reliant now expects to book $350 million in contribution margins from this business in 2008, down $300 million from a prior forecast.

Reliant said then it couldn't meet existing credit conditions set by Merrill Lynch, and had to raise new capital through the sale of preferred stock and a costlier credit facility.

Lower commodity prices, warm weather and lower off-peak energy prices were expected to take $480 million from its contribution margin in the wholesale energy business, the company said.

Reliant has a retail customer franchise and a portfolio of wholesale generation assets.

"In light of the challenges facing our industry and the economy as a whole, we believe it is appropriate to explore the full range of options to enhance stockholder value while we continue to execute on our current business plan," Mark Jacobs, president and chief executive, said in a statement.

The board formed a special committee comprised of Evan J. Silverstein, the chair, Steven L. Miller, Joel V. Staff and William L. Transier, to oversee the process and make recommendations to the full board. In addition, Staff will serve as executive chairman.

Morgan Stanley and Goldman Sachs & Co. are serving as financial advisers, and Skadden, Arps, Slate, Meagher & Flom LLP is serving as legal counsel to Reliant.

Shares plunged last week and slipped Monday morning 6 cents to $5.53, more than 60 percent below share prices last month.