Appendix Tables Table A1: Description of special items Q2 07 and Q2
06; $ millions and $ per share after tax Income Statement Special
Item Line Q2 07 Q2 07 Q2 06 Q2 06 Competitive Electric Segment:
"Day one" losses on long-term hedges Revenues 40 0.09 71 0.15
Positions marked to market (gain)/loss(6) Revenues 261 0.56 (89)
(0.19) Generation development Other charges deductions 54 0.11 - -
Regulatory Other settlement deductions 3 0.01 - - Gas plant Other
impairment(8) deductions - - 131 0.28 Texas margin tax deferred tax
(credit)/charge Income tax (31) (0.07) 41 0.09 Regulated Delivery
Segment: Projects Other expenses(9) deductions 2 0.01 - -
Re-branding Other expenses deductions 2 - - - Corporate and other:
Projects Other expenses(9) deductions 9 0.02 - - Texas margin tax
deferred tax (credit)/charge Income tax (20) (0.04) (1) - Total 320
0.69 153 0.33 Table A2: Description of special items YTD 07 and YTD
06; $ millions and $ per share after tax Income Statement Special
Item Line YTD 07 YTD 07 YTD 06 YTD 06 Competitive Electric Segment:
"Day one" losses on long-term hedges Revenues 103 0.22 71 0.15
Positions marked to market (gain)/loss(6) Revenues 647 1.41 (76)
(0.16) Generation development Other charges(7) deductions 517 1.13
- - Regulatory Other settlement deductions 3 0.01 - - Gas plant
Other impairment(8) deductions - - 131 0.28 Texas margin tax
deferred tax (credit)/charge Income tax (31) (0.07) 41 0.08
Regulated Delivery Segment: Projects Other expenses(9) deductions 2
0.01 - - Re-branding Other expenses deductions 2 - - - Corporate
and other: Projects Other expenses(9) deductions 38 0.08 - - Texas
margin tax deferred tax (credit)/charge Income tax (20) (0.04) (1)
- Total 1,261 2.75 166 0.35 Appendix Table B: Competitive Electric
Segment -- operating revenues Q2 07 vs. Q2 06 and YTD 07 vs. YTD
06; $ millions and mixed measures Operating Revenue % % Component
Q2 07 Q2 06 Change YTD 07 YTD 06 Change Retail electricity
revenues: Native market: Residential 700 1,008 (30.6) 1,484 1,753
(15.3) Small business 230 309 (25.6) 468 566 (17.3) Total native
market 930 1,317 (29.4) 1,952 2,319 (15.8) Other markets:
Residential 141 160 (11.9) 249 248 0.4 Small business 26 20 30.0 46
36 27.8 Total other markets 167 180 (7.2) 295 284 3.9 Large
business 343 339 1.2 657 655 0.3 Total retail electricity revenues
1,440 1,836 (21.6) 2,904 3,258 (10.9) Wholesale electricity
revenues(10) 535 447 19.7 991 982 0.9 Risk management and trading
activities:(11) Realized net gains (losses) on settled
positions(12) 35 (38) - 113 (86) - Reversal of prior unrealized net
(gains)/losses (21) 2 - (13) 38 - Other unrealized net
gains/(losses) (397) 23 - (1,169) (9) - Net risk management and
trading activities (383) (13) - (1,069) (57) - Other revenues 74 79
(6.3) 157 176 (10.8) Total operating revenues 1,666 2,349 (29.1)
2,983 4,359 (31.6) Average residential revenue ($/MWh) 138.36
148.85 (7.0) 139.01 146.23 (4.9) Average wires charge ($/MWh) 24.90
24.51 1.6 25.94 26.18 (0.9) Appendix Table C: Competitive Electric
Segment -- retail and wholesale sales Q2 07 vs. Q2 06 and YTD 07
vs. YTD 06; Mixed measures % % Volume Component Q2 07 Q2 06 Change
YTD 07 YTD 06 Change Retail electricity sales volumes (GWh): Native
market: Residential 5,072 6,825 (25.7) 10,719 12,057 (11.1) Small
business 1,537 2,068 (25.7) 3,180 3,795 (16.2) Total native market
6,609 8,893 (25.7) 13,899 15,852 (12.3) Other markets: Residential
1,010 1,018 (0.8) 1,748 1,629 7.3 Small business 204 169 20.7 368
301 22.3 Total other markets 1,214 1,187 2.3 2,116 1,930 9.6 Large
business 3,653 3,552 2.8 7,043 6,785 3.8 Total retail electricity
sales volumes 11,476 13,632 (15.8) 23,058 24,567 (6.1) Wholesale
electricity sales(13) 9,592 7,585 26.5 18,603 16,870 10.3 Total
electricity sales volumes 21,068 21,217 (0.7) 41,661 41,437 0.5
Average kWh/retail customer(14): Residential 3,299 4,012 (17.8)
6,731 6,975 (3.5) Small business 6,676 7,990 (16.4) 13,476 14,460
(6.8) Large business 100,336 70,256 42.8 175,727 130,966 34.2
Weather - percent of normal(15): Cooling degree days 85.3 131.0
(34.9) 88.8 135.9 (34.7) Appendix Table D: Competitive Electric
Segment -- retail customer counts Q2 07 vs. Q4 06 and Q2 07 vs. Q2
06; End of period, thousands, # of meters Customer Component Q2 07
Q4 06 6 Month Q2 06 12 Month % Change % Change Retail electricity
customers: Native market: Residential 1,560 1,624 (3.9) 1,716 (9.1)
Small business 248 258 (3.9) 271 (8.5) Total native market 1,808
1,882 (3.9) 1,987 (9.0) Other markets: Residential 273 247 10.5 227
20.3 Small business 11 9 22.2 7 57.1 Total other markets 284 256
10.9 234 21.4 Large business 36 44 (18.2) 49 (26.5) Total retail
electricity customers 2,128 2,182 (2.5) 2,270 (6.3) Estimated share
of market(16)(%): Native market: Residential 62 65 (4.6) 69 (10.1)
Small business 61 64 (4.7) 68 (10.3) Total ERCOT: Residential 35 37
(5.4) 38 (7.9) Small business 25 26 (3.8) 28 (10.7) Large business
11 14 (21.4) 17 (35.3) Appendix Table E: Competitive Electric
Segment -- fuel, purchased power costs and delivery fees Q2 07 vs.
Q2 06 and YTD 07 vs. YTD 06; $ millions % % Cost Component Q2 07 Q2
06 Change YTD 07 YTD 06 Change Nuclear fuel 21 22 (4.5) 39 43 (9.3)
Lignite/coal 152 113 34.5 290 229 26.6 Total baseload fuel 173 135
28.1 329 272 21.0 Gas/oil fuel and purchased power costs 435 421
3.3 818 689 18.7 Other costs 72 50 44.0 146 122 19.7 Fuel and
purchased power costs 680 606 12.2 1,293 1,083 19.4 Delivery fees
291 337 (13.6) 609 650 (6.3) Fuel, purchased power costs and
delivery fees 971 943 3.0 1,902 1,733 9.8 Appendix Table F:
Competitive Electric Segment -- generation and supply statistics Q2
07 vs. Q2 06 and YTD 07 vs. YTD 06; Mixed measures Generation and %
% Supply Statistic Q2 07 Q2 06 Change YTD 07 YTD 06 Change
Production and purchased power (GWh): Nuclear (baseload) 4,492
5,098 (11.9) 8,555 10,178 (15.9) Lignite/coal (baseload) 10,211
10,044 1.7 20,197 20,918 (3.4) Total baseload generation 14,703
15,142 (2.9) 28,752 31,096 (7.5) Gas/oil generation 633 1,350
(53.1) 1,382 1,539 (10.2) Purchased power 6,287 5,291 18.8 11,957
9,616 24.3 Total energy supply 21,623 21,783 (0.7) 42,091 42,251
(0.4) Less line loss and power imbalances 555 566 (1.9) 430 814
(47.2) Net energy supply volumes 21,068 21,217 (0.7) 41,661 41,437
0.5 Baseload capacity factors (%): Nuclear 89.6 102.0 (12.2) 85.8
102.3 (16.1) Lignite/coal 85.9 82.4 4.2 86.6 86.4 0.2 Total
baseload 87.0 88.0 (1.1) 86.3 90.9 (5.1) Adjusted baseload capacity
factors(17)(%): Nuclear 101.5 102.0 (0.5) 101.8 102.3 (0.5)
Lignite/coal 96.8 95.0 1.9 95.8 96.2 (0.4) Total baseload 98.1 96.9
1.2 97.5 98.0 (0.5) Appendix Table G: Competitive Electric Segment
-- maturity dates of unrealized net commodity contract assets
(liabilities) 6/30/07; $ millions unless otherwise noted Source of
Fair Value Less Than More Than 1 Year 1-3 Years 4-5 Years 5 Years
Total Prices actively quoted 16 (200) (248) (23) (455) Prices
provided by other external sources 6 (253) (353) (89) (689) Prices
based on models (45) (18) - - (63) Total (23) (471) (601) (112)
(1,207) Percentage of total fair value 2 39 50 9 100 Appendix Table
H: Competitive Electric Segment -- changes in commodity contract
assets and liabilities YTD 07; $ millions Change Component Impact
Net commodity contract liability - beginning of period (23)
Settlements of positions included in the opening balance(18) 7
Unrealized mark-to-market valuations of positions held -- end of
period(19) (1,283) Other activity(20) 143 Net commodity contract
liability -- end of period (1,156) Appendix Table I: Regulated
Delivery Segment -- operating revenues Q2 07 vs. Q2 06 and YTD 07
vs. YTD 06; $ millions % % Revenue Component Q2 07 Q2 06 Change YTD
07 YTD 06 Change Affiliated (TXU Energy) 232 284 (18.3) 497 551
(9.8) Nonaffiliated 357 320 11.6 710 615 15.4 Total 589 604 (2.5)
1,207 1,166 3.5 Appendix Table J: Regulated Delivery Segment --
operating statistics Q2 07 vs. Q2 06; Mixed measures Operating
Statistic Q2 07 Q2 06 % Change Volumes - Electricity distribution
(GWh) 24,972 27,244 (8.3) Electricity distribution points of
delivery - number of meters (in thousands)(21) 3,077 3,038 1.3
System Average Interruption Duration Index (SAIDI) (non-storm)(22)
77.92 73.54 6.0 System Average Interruption Frequency Index (SAIFI)
(non-storm)(22) 1.15 1.11 3.6 Customer Average Interruption
Duration Index (CAIDI) (non-storm)(22) 67.78 66.11 2.5 Appendix
Table K: Regulated Delivery Segment -- operating statistics YTD 07
vs. YTD 06; Mixed measures Operating Statistic YTD 07 YTD 06 %
Change Volumes - Electricity distribution (GWh) 49,966 50,376 (0.8)
Attachment 1: Financial Definitions Cash Interest Expense
(non-GAAP): Interest expense and related charges less amortization
of discount and reacquired debt expense plus capitalized interest.
Cash interest expense is a measure used by TXU to assess credit
quality. Contribution Margin: Operating revenues (GAAP) less fuel
and purchased power costs and delivery fees (GAAP). Debt
(non-GAAP): Total debt less transition bonds and debt-related
restricted cash. Transition, or securitization, bonds are serviced
by a regulatory transition charge on wires rates and are therefore
excluded from debt in credit reviews. Debt-related restricted cash
is treated as net debt in credit reviews. TXU uses this measure to
evaluate its debt and capitalization levels. Debt/EBITDA
(non-GAAP): Debt divided by EBITDA. Debt/EBITDA is a measure used
by TXU to assess credit quality. EBIT (non-GAAP): Income from
continuing operations before interest income, interest expense and
related charges, and income tax and special items. EBIT is a
measure used by TXU to assess performance. EBITDA (non-GAAP):
Income from continuing operations before interest income, interest
expense and related charges, and income tax plus depreciation and
amortization and special items. EBITDA is a measure used by TXU to
assess performance. EBITDA/Interest (non-GAAP): EBITDA divided by
cash interest expense is a measure used by TXU to assess credit
quality. Free Cash Flow (non-GAAP): Cash provided by operating
activities less capital expenditures and nuclear fuel. Used by TXU
predominantly as a forecasting tool to estimate cash available for
dividends, debt reduction, and other investments. Income from
Continuing Operations per Share (GAAP): Per share (diluted) income
from continuing operations before extraordinary gain and preference
stock dividends. Operational Earnings (non-GAAP): Net income
available to common shareholders adjusted for special items and
income or losses that are not reflective of continuing operations
(such as discontinued operations, extraordinary items and
cumulative effect of changes in accounting principles). TXU has
adjusted operational earnings for all periods to exclude all
effects of recording unrealized gains and losses from cash flow
hedge ineffectiveness and other mark-to-market valuations of
positions in the long- term hedging program because management
believes such presentation will more appropriately reflect the
ongoing earnings of the business. TXU relies on operational
earnings for evaluation of performance and believes that analysis
of the business by external users is enhanced by visibility to both
reported GAAP earnings and operational earnings. Operational
Earnings per Share (a non-GAAP measure): Per share (diluted)
operational earnings. TXU forecasts earnings on such operational
earnings basis and is unable to reconcile forecasted operational
earnings to a GAAP financial measure because forecasts of special
items and material non- recurring items are not practical. TXU
relies on operational earnings per share for evaluation of
performance and believes that analysis of the business by external
users is enhanced by visibility to both reported GAAP earnings and
operational earnings. Reported Earnings per Share (GAAP): Per share
(diluted) net income available to common shareholders. Return on
Average Common Stock Equity Based on Net Income (GAAP): Twelve
months ended net income available to common shareholders (GAAP)
divided by the average of the beginning and ending common stock
equity (GAAP) for the period calculated. Return on Average Common
Stock Equity Based on Operational Earnings (non- GAAP): Twelve
months ended operational earnings (non-GAAP) divided by the average
of the beginning and ending common stock equity (GAAP) for the
period calculated. This measure is used to evaluate operational
performance and management effectiveness. Return on Average
Invested Capital Based on Adjusted Net Income (non- GAAP): Twelve
months ended net income (GAAP) plus after-tax interest expense and
related charges less interest income on restricted cash related to
debt divided by the average of the beginning and ending total
capitalization less debt-related restricted cash for the period
calculated. This measure is used to evaluate operational
performance and management effectiveness. Return on Average
Invested Capital Based on Adjusted Operational Earnings (non-GAAP):
Twelve months ended operational earnings (non-GAAP) plus preference
stock dividends and after-tax interest expense and related charges
less interest income on debt proceeds held as restricted cash
divided by the average of the beginning and ending total
capitalization less debt-related restricted cash for the period
calculated. This measure is used to evaluate operational
performance and management effectiveness. Special Items (non-GAAP):
Unusual charges related to the implementation of the performance
improvement program, the effects of unrealized gains and losses
from cash flow hedge ineffectiveness and other mark-to-market
valuations of positions in the long-term hedging program and other
charges, credits or gains that are unusual or nonrecurring. Special
items are included in reported GAAP earnings, but are excluded from
operational earnings. Total Capitalization (non-GAAP): Total debt
plus common stock equity. This measure is used to evaluate
operational performance and management effectiveness. Total Debt
(GAAP): Long-term debt (including current portion), plus bank loans
and commercial paper, plus long-term debt held by subsidiary trusts
and preferred securities of subsidiaries. Exhibits: Regulation G -
Reconciliation of Non-GAAP Financial Measures to the Most Directly
Comparable GAAP Financial Measures Exhibit 1: Return on average
common stock equity calculation Twelve months ended 6/30/07 and
6/30/06; $ millions unless otherwise noted Component 6/30/07
6/30/06 Ref Net income available to common shareholders 1,103 1,994
A Income from continuing operations before extraordinary
gain/(loss) and cumulative effect of changes in accounting
principles 1,065 1,998 Special items 1,221 182 Operational earnings
2,286 2,180 B Average common equity 817 513 C Return on average
common stock equity - based on net income (A/C) (%) 135.0 388.7
Return on average common stock equity - based on operational
earnings (B/C) (%) 279.8 425.0 Exhibit 2: Return on average
invested capital calculation Twelve months ended 6/30/07 and
6/30/06; $ millions unless otherwise noted Component 6/30/07
6/30/06 Ref Net income 1,103 1,994 After-tax interest expense and
related charges net of interest income (a) 492 520 Total return
(based on net income) 1,595 2,514 A Operational earnings 2,286
2,180 After-tax interest expense and related charges net of
interest income (a) 492 520 Total return (based on operational
earnings) 2,778 2,700 B Average total capitalization 15,119 14,283
C Return on average invested capital - based on adjusted net income
(A/C)(%) 10.5 17.6 Return on average invested capital - based on
adjusted operational earnings (B/C) (%) 18.4 18.9 (a) After-tax
interest expense and related charges net of interest income
Interest expense 817 849 Interest income (60) (49) Net 757 800 Tax
at 35% 265 280 Net of tax 492 520 Exhibit 3: Interest and debt
coverage ratios Twelve months ended 6/30/07 and 6/30/06; $ millions
unless otherwise noted Component 6/30/07 6/30/06 Ref Cash provided
by operating activities 2,995 4,103 A Reconciling adjustments from
cash flow statement (1,930) (2,105) B Income from continuing
operations before extraordinary gain/(loss) and cumulative effect
of changes in accounting principles 1,065 1,998 Income tax expense
407 1,038 Interest expense and related charges 817 849 Interest
income (60) (49) Depreciation and amortization 821 811 EBITDA 3,050
4,647 Special items 1,963 217 EBITDA (excluding special items)
5,013 4,864 C Interest expense and related charges 817 849
Amortization of discount and reacquired debt expense (20) (14)
Capitalized interest 78 24 Cash interest expense 875 859 D Total
debt 15,059 13,544 E Transition bonds (1,026) (1,120) Debt-related
restricted cash (103) (100) Debt (total debt less transition bonds
and debt-related restricted cash) 13,930 12,324 F EBITDA/interest
(C/D) 5.7 5.7 Debt/EBITDA (F/C) 2.8 2.5 Cash provided by operating
activities+cash interest expense/cash interest expense (A+D/D) 4.4
5.8 Total debt/cash provided by operating activities - ratio (E/A)
5.0 3.3 Exhibit 4a: Consolidated -- operational earnings
reconciliation Q2 07; $ millions and $ per share after tax
Competitive Competitive Regulated Regulated Factor Electric
Electric Delivery Delivery Corp. Corp. Total Total Net income
(loss) to common 129 0.28 54 0.12 (62) (0.14) 121 0.26 Special
items 327 0.70 4 0.01 (11) (0.02) 320 0.69 Discontinued operations
- - - - (11) (0.02) (11)(0.02) Operational earnings (loss) 456 0.98
58 0.13 (84) (0.18) 430 0.93 Average shares - diluted 464 Exhibit
4b: Consolidated -- operational earnings reconciliation Q2 06; $
millions and $ per share after tax Competitive Competitive
Regulated Regulated Factor Electric Electric Delivery Delivery
Corp. Corp. Total Total Net income (loss) to common 461 0.99 86
0.18 (50) (0.10) 497 1.07 Special items 154 0.33 - - (1) - 153 0.33
Operational earnings (loss) 615 1.32 86 0.18 (51) (0.10) 650 1.40
Average shares - diluted 465 Exhibit 4c: Consolidated --
operational earnings reconciliation YTD 07; $ millions and $ per
share after tax Competitive Competitive Regulated Regulated Factor
Electric Electric Delivery Delivery Corp. Corp. Total Total Net
income (loss) to common (342) (0.75) 140 0.31 (175) (0.38)
(377)(0.82) Special items 1,239 2.70 4 0.01 18 0.04 1,261 2.75
Discontinued operations - - - - (11) (0.03) (11)(0.03) Share
dilution /rounding - (0.02) - (0.01) - 0.01 - (0.02) Operational
earnings (loss) 897 1.93 144 0.31 (168) (0.36) 873 1.88 Average
shares - basic 458 Average shares - diluted 464 Exhibit 4d:
Consolidated -- operational earnings reconciliation YTD 06; $
millions and $ per share after tax Competitive Competitive
Regulated Regulated Factor Electric Electric Delivery Delivery
Corp. Corp. Total Total Net income (loss) to common 981 2.09 151
0.32 (59) (0.12) 1,073 2.29 Special items 167 0.35 - - (1) - 166
0.35 Discontinued operations - - - - (60) (0.13) (60)(0.13)
Operational earnings (loss) 1,148 2.44 151 0.32 (120) (0.25) 1,179
2.51 Average shares - diluted 470 TXU CORP. DALLAS, TEXAS SUMMARY
OF CONSOLIDATED EARNINGS (Unaudited) THREE MONTHS ENDED June 30
2007 2006 % Change Operating Revenues $2,022,000,000 $2,667,000,000
-24.2% Income from Continuing Operations (a) $110,000,000
$497,000,000 -77.9% Consolidated Net Income (b) $121,000,000
$497,000,000 -75.7% Average Number of Shares of Common Stock
Outstanding, Basic 459,000,000 458,000,000 0.2% Average Number of
Shares of Common Stock Outstanding, Diluted 464,000,000 465,000,000
-0.2% Basic Earnings per Share $0.26 $1.08 -75.9% Diluted Earnings
per Share $0.26 $1.07 -75.7% SIX MONTHS ENDED June 30 2007 2006 %
Change Operating Revenues $3,691,000,000 $4,971,000,000 -25.7%
Income (Loss) from Continuing Operations (c) ($388,000,000)
$1,013,000,000 - Consolidated Net Income (Loss) (b) ($377,000,000)
$1,073,000,000 - Average Number of Shares of Common Stock
Outstanding, Basic 458,000,000 461,000,000 -0.7% Average Number of
Shares of Common Stock Outstanding, Diluted 458,000,000 470,000,000
-2.6% Basic Earnings (Loss) per Share ($0.82) $2.33 - Diluted
Earnings (Loss) per Share ($0.82) $2.29 - (a) Q2 07 includes net
after-tax expenses of $320 million treated as special items. Q2 06
includes net after-tax expenses of $153 million treated as special
items. Details of special items are on page 16 of TXU Corp.'s
earnings release. (b) Q2 07 and YTD 07 include income from
discontinued operations of $11 million related primarily to
additional insurance proceeds received related to the 2005 TXU
Europe settlement. YTD 06 includes income from discontinued
operations of $60 million re (c) YTD 07 includes net after-tax
expenses of $1,261 million treated as special items. YTD 06
includes net after-tax expenses of $166 million treated as special
items. (1) Per share earnings amounts reflect diluted earnings per
share. See calculations in Tables 2a and 2b on pages 5 and 6. (2)
Operational earnings is a non-GAAP measure that adjusts net income
for special items and income or losses that are not related to
continuing operations. See Attachment 1: Financial Definitions for
a detailed definition of operational earnings and other GAAP and
non-GAAP financial measures used in this release. (3) For second
quarter 2007, the dilution calculation for operational earnings
reflects the addition to net income available to common
shareholders of interest on convertible senior notes of $0.3
million (after tax), and the addition to shares outstanding of 4.9
million shares related to the effect of: 1) share-based
compensation (3.4 million) and 2) convertible senior notes (1.5
million). For second quarter 2006, the dilution calculation for
reported and operational earnings per share reflects the addition
to net income available to common shareholders of interest on
convertible senior notes of $0.3 million (after tax), and the
addition to shares outstanding of 7.5 million shares related to the
effect of: 1) share-based compensation (5.0 million), 2)
convertible senior notes (1.5 million) and 3) equity-linked
securities (1.0 million). (4) Because of anti-dilution rules,
average basic shares outstanding are used in calculating
year-to-date 2007 reported earnings. The dilution calculation for
operational earnings reflects the addition to net income available
to common shareholders of interest on convertible senior notes of
$0.6 million (after tax), and the addition to shares outstanding of
5.9 million shares related to the effect of: 1) share-based
compensation (4.4 million) and 2) convertible senior notes (1.5
million). For year-to-date 2006, the dilution calculation for
reported and operational earnings per share reflects the addition
to net income available to common shareholders of interest on
convertible senior notes of $0.6 million (after tax), and the
addition to shares outstanding of 8.7 million shares related to the
effect of: 1) share-based compensation (5.6 million), 2)
equity-linked securities (1.6 million) and 3) convertible senior
notes (1.5 million). (5) Facility with a May 2007 maturity date was
terminated and replaced on March 1, 2007 with a new 364-day
facility due to mature in February 2008 with terms comparable to
TXU's other existing facilities. The amount in the 12/31/06 column
was under the since-terminated facility. (6) Reflects unrealized
mark-to-market and cash flow hedge ineffectiveness gains and losses
on the company's long-term hedging program. (7) Generation
development charges represent estimated expenses associated with
the suspension (in first quarter 2007) of eight of 11 coal-fueled
generation facilities in Texas and their planned termination upon
closing of the proposed merger announced February 26, 2007. (8)
Includes approximately $2 million related to the write-off of
natural gas-fired generation plant inventories. (9) Includes
expenses previously incurred and deferred related to the analysis
and planning associated with certain previously anticipated
strategic transactions that are no longer expected to be
consummated as a result of the proposed merger agreement and
expenses associated with the proposed merger. (10) Includes sales
and purchases of balancing electricity to/from ERCOT. (11) Includes
unrealized net losses of $403 million and $1,003 million in second
quarter and year-to-date 2007, respectively, and unrealized net
gains of $138 million and $118 million in second quarter and
year-to-date 2006, respectively, from cash flow hedge
ineffectiveness and other mark-to-market valuations of long-term
hedging program positions. Amounts also include net "day one"
losses on commodity price hedge transactions entered into at below
market prices that totaled $37 million ($63 million loss related to
the long-term hedging program) and $134 million ($160 million loss
related to the long-term hedging program) for second quarter and
year-to-date 2007, respectively, and a net gain of $3 million ($109
million loss related to the long-term hedging program) and a net
loss of $106 million ($109 million loss related to the long-term
hedging program) for second quarter and year-to-date 2006,
respectively. (12) Includes physical commodity trading activity not
subject to mark-to- market accounting of $5 million in net losses
in second quarter 2007 and 2006, and $6 million and $15 million in
net losses in year-to-date 2007 and 2006, respectively. (13)
Includes volumes related to ERCOT balancing of 302 gigawatt-hours
(GWh) of net sales in second quarter 2007, 267 GWh of net purchases
in second quarter 2006, and 626 GWh and 1,165 GWh of net sales in
year-to-date 2007 and 2006, respectively. (14) Based upon the
average of the period beginning and ending customers. (15) Average
for service territory is based on a 50 percent - Dallas/Fort Worth,
25 percent - Mineral Wells and 25 percent - Waco weighting. Weather
data is obtained from WeatherBank, Inc., an independent company
that collects and archives weather data from reporting stations of
the National Oceanic and Atmospheric Administration (a federal
agency under the U.S. Department of Commerce). (16) End of period;
estimated market share is based on the estimated number of
customers (meters) in the native market and the estimated number of
customers (meters) in ERCOT that have choice. (17) Excludes planned
outages and economic back-down. (18) Represents reversals of
unrealized mark-to-market valuations of these positions recognized
in earnings prior to the beginning of the period, which offset
gains and losses realized upon settlement of the positions in the
current period. (19) Includes $164 million in losses and $30
million in gains recorded at contract inception dates. (20) Amounts
have not been recognized in current- and prior-year mark-to- market
earnings; includes initial values of positions involving the
receipt or payment of cash or other consideration such as option
premiums paid and received. Activity for the period includes
payments of $39 million related to natural gas physical swap
transactions and a $102 million premium paid in 2007 related to a
structured economic hedge transaction in the long-term hedging
program. (21) Includes lighting sites, primarily guard lights, for
which TXU Energy is the REP, but are not included in TXU Energy's
customer count. Such sites totaled 79,856 and 84,362 at June 30,
2007 and 2006, respectively. Adjusting for the guard lights, which
have minimal value, points of delivery increased 1.5 percent. (22)
SAIDI is the average number of electric service outage minutes per
customer in a year. SAIFI is the average number of electric service
interruptions per customer in a year. CAIDI is the average duration
in minutes of interruptions to electric service in a year.
Statistics are based on the preceding twelve month data.
DATASOURCE: TXU Corp. Web site: http://www.txu.com/
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