High natural gas prices result in action by TXU Energy

DALLAS, March 25, 2004 — TXU Energy filed a request with the Public Utility Commission of Texas (PUC) to change the company’s Price to Beat electricity prices for North Texas customers. The filing reflects the significant increase in the market price of natural gas since last summer. A decision is expected from the PUC within 45 days.

“We continue to focus on value for our customers and work hard to keep our prices competitive,” said Carl Bracy, TXU Energy senior vice president. “The increase is unfortunate, but just as gasoline prices have increased for motorists, natural gas prices have increased for generating electricity. TXU Energy will continue to offer the lowest Price to Beat rate of all major providers in Texas, as it has since competition began. We work to provide a competitive rate year after year despite volatile natural gas prices.”

The fuel factor adjustment would raise an average monthly residential electric bill of a customer using 1,000 kilowatt hours by 3.4 percent or $3.39 per month. Natural gas prices have increased 7.9 percent.

TXU Energy offers a variety of programs to customers designed to help them manage their energy costs and consumption.

–TXU Average Bill allows customers to spread electric costs out over several months and makes monthly bills more predictable.
–TXU Home Energy Advisor is an online tool that analyzes usage and provides a personalized energy plan to reduce monthly bills by as much as 20 percent. The Home Energy Advisor is at www.txu.com .
–For more than 20 years, the TXU Energy Aid program has also offered financial assistance through local social service agencies to customers who are temporarily unable to pay their bill.

The Texas Electric Choice Act allows for changes in electricity prices when natural gas or purchased power prices increase or decrease beyond a specified threshold. This flexibility contributes to making Texas the most competitive electricity market in the United States. Natural gas is a key component in generating electricity and the price of electricity, and TXU Energy’s request to the PUC reflects those higher market prices.

TXU Energy is a subsidiary of TXU, a major energy company with operations in North America and Australia. TXU manages a diverse energy portfolio with a strategic mix of over $31 billion of assets. TXU’s distinctive business model for competitive markets integrates generation, portfolio management, and retail into one single business.

The regulated electric and natural gas distribution and transmission businesses complement the competitive operations, using asset management skills developed over more than one hundred years, to provide reliable energy delivery to consumers and earnings and cash flow for stakeholders.

In its primary market of Texas, TXU’s portfolio includes 19,000 megawatts of generation and additional contracted capacity with a fuel mix of coal/lignite, natural gas/oil, nuclear power and wind. TXU serves more than five million customers in North America and Australia, including 2.6 million competitive electric customers in Texas. Visit www.txucorp.com for more information about TXU.

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