Statistics are for the 2004-2005 turnaround period versus 2003.
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Structural Advantages
- 6th-largest U.S. transmission and distribution (T&D) company
- At or near top-quartile costs and reliability
- High-growth NERC region
- Efficient capital recovery for transmission and automated-meter-reading (AMR) investments
- No commodity exposure
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Strategy:
Improvements to the
core businesses
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Strategy:
Organic growth
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Strategy:
Transactions outside Texas
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Continue to redefine excellence in Texas
- Focus on asset management to optimize reliability and costs
- Take advantage of high-growth market and unique business model to invest capital to achieve top-decile reliability
- Integrate broadband over power lines (BPL) and AMR into grid to redefine service quality
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Consolidate regional T&D to extract synergies
- Scale TXU's asset management capabilities over a larger grid
- Take a regional/national role in technology through leading technology consortium and 3rd-party infrastructure fund
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Create a regional/national regulated T&D company that will efficiently manage new investments and redefine customer service levels through effective deployment of new technology
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Progress to Date
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- Established rate certainty through 2008 with a 2006 regulatory settlement
- Continued progress towards achieving top-decile reliability
- Completed comprehensive maintenance on 74 feeders
- Installed 70,000 AMRs
- Installed 53 automated distribution switches, increasing reliability 35% in areas where deployed
- Initiated 3-year reliability-centered capital expenditure plan, averaging over $800 million per year; funded 75% through growth or tracker mechanisms
- Signed groundbreaking BPL contract, facilitating deployment of the nation's first "smart grid" of the future
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