TXU creates Oncor to provide regulated energy delivery in Texas

Sept. 13, 2002 — In the world of electric competition in Texas, Oncor delivers – but you’ll have to buy your power elsewhere.

TXU’s energy delivery business has taken a new name as it focuses on its responsibilities as the regulated energy delivery company within TXU Corporation. Oncor was created to separate the delivery of electric energy from the retail sales of electricity in the newly deregulated Texas electricity market.

TXU now has two separate electric power businesses. TXU Energy is the unregulated Retail Electric Provider (REP) competing with other REPs to sell electricity to homes and businesses. Oncor, whose energy delivery responsibilities remain regulated, is the company that will construct, operate and maintain the wires infrastructure that moves electricity around its service areas on behalf of the REPs that sell it.

The network of transmission and distribution lines operated by Oncor can be compared to a system of “highways” on which electricity travels from its source to its destination. Oncor is totally separate from TXU’s unregulated business (TXU Energy) – in name, staffing and assets.

The Oncor service area stretches across North Central, East and West Texas and includes about one-third of the state’s geographic area and population – the same area served by TXU Electric & Gas and its predecessor companies for more than 100 years.

“We’re looking forward to building on our expertise as one of the most reliable distribution businesses in the nation, as we serve all Retail Electric Providers in the service area,” said Tom Baker, president of Oncor. “With our new name comes a new independence, which we happily accept as a challenge. We’ll be putting our creativity to the test and continually looking for improvements in energy delivery equipment and procedures. When it comes to introducing new and better ways of providing reliable energy supplies in Texas and the nation, we intend to be in the forefront.”

Baker emphasized that Oncor’s nationally recognized economic development staff will continue to work with community leaders to bring new businesses and jobs to Texas. The company also will work closely with land developers to provide their energy delivery needs.

For people who live and work in the service area, the only noticeable changes will be the name “Oncor” on vehicles and meter reader uniforms.

“No matter which electric provider you choose in the new competitive market, you can expect the same reliable service to continue,” Baker said. “You should notice no change in energy delivery. We’re still the neighbors you know, with a new name, a new look and an exciting future to build.”

In addition to TXU’s electric transmission and distribution, pipeline services and gas delivery, Oncor will include Oncor Utility Solutions, which offers unregulated management and operating services to electric cooperatives, municipal and investor-owned utilities, and other organizations with energy distribution needs throughout North America.

More information is available at www.oncorgroup.com.

Oncor is part of TXU, a global provider of electric and natural gas services, merchant energy trading, energy marketing, energy delivery, telecommunications and energy-related services. With $43 billion in assets and $28 billion in annual revenue, TXU is one of the most influential energy services companies in the world.

TXU is the No. 1 competitive energy retailer in the United States, owns or controls extensive competitive generation around the world, and ranks among the top five energy traders globally. TXU, which sells 330 million megawatts of electricity and 2.8 trillion cubic feet of natural gas annually, serves 11 million customers worldwide, primarily in the United States, Europe and Australia.

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