Beginning today, about 1.3 million TXU Energy customers in the TXU’s traditional service territory will receive a six percent price reduction. The price reduction will be reflected on your next monthly bill.
According to a press release today by TXU, “Residential customers using an average of 1,500 kilowatt-hours of electricity a month will save an average of approximately $150 annually on their electric bills. The price reduction affects existing customers on the company’s most popular month-to-month pricing plans, making those plans lower than all other incumbents’ Price-to-Beat rollover prices.”
This price reduction comes as part of a recent merger agreement announced last month under which an investor group led by Kohlberg Kravis Roberts & Company (KKR) and Texas Pacific Group will acquire TXU Corp. (NYSE:TXU) .
In addition, if you’re a qualifying TXU Energy customer, you will receive:
– An additional 4 percent price reduction contingent on closing of the purchase of TXU by KKR and Texas Pacific Group;
– Price protection through September 2008 – protection against price increases due to changing energy market conditions; and
– Two remaining customer appreciation bonus payments of $25 each in 2007.
TXU Energy’s new price, after the 6 percent discount, is now lower than any other incumbent’s Price-to-Beat rollover price and 15 percent lower than the largest competitor’s rollover price.