TXU Txu Corp

DALLAS, April 11 /PRNewswire-FirstCall/ -- TXU Corp. (NYSE:TXU), TXU Electric Delivery Company, a subsidiary of TXU Corp., and InfrastruX Group, a national provider of utility-related construction and maintenance services, announced today that they have mutually agreed to suspend their agreements relating to the InfrastruX Energy Services Group LP (IES) joint venture. The parties plan to terminate these agreements upon closing of the transaction under which an investor group led by Kohlberg Kravis Roberts & Co. and Texas Pacific Group will acquire TXU Corp. "TXU Electric Delivery remains committed to delivering industry-leading reliability for our customers, and we will continue to improve our operations," said Tom Baker, chairman and chief executive officer of TXU Electric Delivery. "Although we plan to terminate this joint venture, InfrastruX will continue providing utility support services to TXU Electric Delivery, allowing them to utilize their expertise and knowledge of our system. We look forward to continuing our long and successful working relationship with InfrastruX at a time of significant new investment in infrastructure." On June 26, 2006, TXU Electric Delivery and InfrastruX Group announced that they had entered into a unique 10-year, $8.7 billion agreement for utility infrastructure and management services that would merge traditional utility practices with traditional contractor work and use the strength of each industry to drive improved reliability and efficiency. InfrastruX Group, which has worked with TXU Electric Delivery for over 40 years, will continue to be a key provider of utility support services to TXU Electric Delivery. Closing of this transaction, originally scheduled for October 1, 2006, was delayed due to a pending review of the transaction by the Public Utility Commission of Texas (PUC). A hearing before the PUC was scheduled for May 1. However, after the announcement of TXU Corp.'s merger agreement with the investor group, the PUC postponed the review pending a further understanding of the effect of the merger on the IES transaction. This postponement would have almost certainly delayed the hearing. While TXU and InfrastruX were contemplating the effects of these delays on their agreements, the investor group requested that the agreements be reconsidered. Considering all factors, TXU and InfrastruX decided to suspend their agreements with the intent to terminate them upon closing of TXU Corp.'s merger with the investor group. About TXU Corp. 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. TXU Corp.'s regulated segment, TXU Electric Delivery, is an electric distribution and transmission business that uses superior asset management skills to provide reliable electricity delivery to consumers. TXU Electric Delivery operates the largest distribution and transmission system in Texas, providing power to three million electric delivery points over more than 101,000 miles of distribution and 14,300 miles of transmission lines. Visit http://www.txucorp.com/ for more information about TXU Corp. Information about TXU Electric Delivery can be obtained by going directly to http://www.txuelectricdelivery.com/ . About InfrastruX Group InfrastruX Group (InfrastruX) is a national leader in providing infrastructure construction services to the gas, electric, water/sewer, and telecommunication industries, with a complete range of design, engineering, installation, and maintenance resources available across North America. It also has an international presence through the widespread use of its patented treatments for water-damaged power and telecommunication lines. The strength of the InfrastruX, combined with the extensive capabilities of its subsidiaries, offers unprecedented value to all of its clients, including municipalities, cooperatives and large investor-owned utilities and telecommunication companies. InfrastruX is owned by Tenaska Power Fund, L.P., a private equity fund that acquired the company in May 2006. More information about InfrastruX is available at http://www.infrastrux.com/ , and about Tenaska Power Fund, L.P. at http://www.tenaska.com/powerfund/index.html . DATASOURCE: TXU Corp. CONTACT: Christopher K. Schein of TXU Electric Delivery Communications, +1-214-812-5338; or Jana Martin of InfrastruX Group, +1-402-691-9595, or ; or investor relations, Tim Hogan, +1-214-812-4641, or Bill Huber, +1-214-812-2480, or Steve Oakley, +1-214-812-2220, all of TXU Corp. Web site: http://www.txu.com/

Copyright