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TXU Energy Cuts Electric Prices

Date posted: April 19, 2007

TXU Energy, the competitive retail electric subsidiary of TXU Corp. (NYSE:TXU) , has recently announced a significant price cut for its TXU Energy Market Tracker+(SM) pricing plan.

TXU Energy Market Tracker+ is an innovative pricing plan that automatically lowers electricity prices if natural gas costs trend lower. Prices are being cut to respond to competitive conditions, and will be among the lowest-priced offers in the North Texas market. This is in comparison to plans that fully disclose pricing details, on an annualized basis assuming current natural gas prices.

In comparison to the former price-to-beat rate in effect on December 31, 2006, this new price is projected to save a typical TXU Energy Market Tracker+ customer who uses an average of 1500 kWh monthly 21 to 23 percent in off-peak months, which includes April and May, and 14 percent on an annualized basis at current natural gas levels.

With the introduction of this plan in early 2006, TXU Energy became the first company to offer an index-based energy plan that tracked natural gas prices according to a formula detailed in the Electricity Fact Label (EFL). Because of this formula, TXU Energy’s distinctive plan provides the benefit of transparency into how and when the price changes, unlike many competitor plans that allow price changes monthly at the provider’s sole discretion, without advanced notice, based on unspecified wholesale market conditions.

To protect customers against increased natural gas costs, the total price per kWh for TXU Energy Market Tracker+ is capped. This not only provides unique protection against natural gas costs that rise above the designated cap, but also provides the customer the ability to enjoy even greater savings if natural gas prices trend lower. While the previous TXU Energy Market Tracker+ plan was already lower than the former price-to-beat rate, the new price cut results in an additional 9 percent decrease on an annualized basis. A residential customer using an average of 1500 kWh monthly will pay an average annual price of 12.6 cents per kWh instead of the 13.9 cents that customer would have paid under the previous price of this plan at current gas levels.

The TXU Energy Market Tracker+ plan is available to all customers in the service area of TXU Electric Delivery (which has announced it will be changing its name to Oncor Electric Delivery later this month). Current TXU Energy Market Tracker+ customers are automatically receiving the new lower prices effective today.

TXU Corp., a Dallas-based energy company, manages a portfolio of competitive and regulated energy businesses primarily in Texas. In the competitive TXU Energy Holdings segment (electricity generation, wholesale marketing and retailing), TXU Energy provides electricity and related services to more than 2.1 million competitive electricity customers in Texas. TXU Power has over 18,100 MW of generation in Texas, including 2,300 MW of nuclear and 5,800 MW of coal-fueled generation capacity.

TXU Wholesale optimizes the purchases and sales of energy for TXU Energy and TXU Power and provides related services to other market participants. TXU Wholesale is the largest purchaser of wind-generated electricity in Texas and fifth largest in the United States. Visit http://www.txucorp.com/ for more information about TXU Corp. Visit http://www.txu.com/ for more information about TXU Energy.



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