Statistics are for the 2004-2005 turnaround period versus 2003.
 |
Structural Advantages
- 2nd-largest U.S. deregulated output
- Access to low-cost lignite reserves
- 63,000 gigawatt-hours of baseload production in a gas-on-the-margin market
- High-growth market
|
| |
Strategy:
Improvements to the
core businesses
|
Strategy:
Organic growth
|
Strategy:
Transactions outside Texas
|
Continue to strengthen
the existing fleet
-
Leverage the TXU Operating System to drive increased value from the Texas baseload fleet
- Achieve top-decile production and costs in the coal fleet
- Replicate top fleet operation performance at Comanche Peak
|
Build on the ERCOT position
-
Take advantage of existing development sites to add new capacity in Texas (Oak Grove and Sandow 5)
- Utilize existing assets and inexpensive, secure Texas fuel
- Leverage operations expertise to drive increased value through lower operating costs and higher production levels
|
Gain quality scale outside ERCOT and build market-leader position
-
Leverage opportunistic transactions to take advantage of the TXU operating edge to improve 3rd-party baseload assets
|
Progress to Date
|
- Set 2005 production record through use of the TXU Operating System
- Generated normalized 4,300 gigawatt-hours of incremental baseload production, a 7% improvement
- Working to secure air permit and engineering contracts for Sandow 5 construction
- Progressing toward Oak Grove air permit and engineering contracts; expected mid-2006
- Identifying other TXU sites for new power plants
|
|
