Exhaust gases contaminate the fresh mixture, which then doesn't burn as hot. I looked it up in Wikipedia so that I could give you a source other than myself. Here it is:

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EGR works by recirculating a portion of an engine's exhaust gas back to the engine cylinders. Intermixing the incoming air with recirculated exhaust gas dilutes the mix with inert gas, lowering the adiabatic flame temperature and (in diesel engines) reducing the amount of excess oxygen. The exhaust gas also increases the specific heat capacity of the mix lowering the peak combustion temperature. Because NOx formation progresses much faster at high temperatures, EGR serves to limit the generation of NOx. NOx is primarily formed when a mix of nitrogen and oxygen is subjected to high temperatures.

EGR is typically not employed at high loads because it would reduce peak power output. This is because it reduces the intake charge density. EGR is also omitted at idle (low-speed, zero load) because it would cause unstable combustion, resulting in rough idle.
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AV8TOR