Achieving Industry Leadership: TXU Wholesale/TXU Energy

Statistics are for the 2004-2005 turnaround period versus 2003.

TXU Wholesale/TXU Energy - Competitive Wholesale/Retail

Structural Advantages

Wholesale
  • Access to largest ERCOT generation fleet
  • Access to largest ERCOT retail position
  • Incumbent expertise in regulatory advocacy and market design
Retail
  • Large-scale competitive retailer
  • Loyal customer base
  • Strong brand recognition
  • Superior service
 

Strategy:

Improvements to the
core businesses

Strategy:

Organic growth

Strategy:

Transactions outside Texas
Return the North Texas consumer franchise to profitability

  • Introduce innovative products and pricing plans that provide sustaining margins
  • Continue to redefine customer service to distinguish TXU Energy from its competitors
  • Continue to advocate a market-based structure that encourages competition
Opportunistically build profitable businesses in other Texas customer segments

  • Penetrate South Texas market
  • Focus on profitable segments in small, medium, and large commercial businesses
  • Continue to drive cost leadership to enhance competitiveness across all segments
Monitor potential opportunities to expand in other regions if and when they develop

Progress to Date

  • Improved customer service
    • Reduced call answer times 96%
    • Reduced PUC complaints 57%
  • Reduced costs to an estimated 25% better than competitors' costs
    • Reduced bad debt 56%
  • Launched new products
    • TXU Energy Rewards+ (200,000 participants)
    • Peace of Mind fixed-price plans
    • TXU Energy Market Tracker+, which adjusts with gas prices
  • Improved targeting and streamlined business pricing processes

TXU Energy Rewards+ and TXU Energy Market Tracker+ are either registered trademarks or service marks of TXU Energy.

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