Our turnaround has made us a better company. Thanks to the hard work of employees and a very talented management team, TXU is now a top performer in the power sector.
Equity value has increased by 220 percent, and share price has improved by more than 350 percent (more than 480 percent using the merger price). The business is now focused on core power operations, and TXU has gained the respect of many investors and operators across the country.
We have also improved on TXU’s already-stellar record of corporate social responsibility. I am proud of our environmental performance. At the coal-fueled plants, employees have implemented innovative technologies to lower emissions and improve fuel efficiency while operating the plants at record production levels. We have also continued to lead the way for renewable energy in Texas. Our purchases have helped make Texas the nation’s largest producer of wind-generated energy and TXU the state’s largest purchaser of wind power, with a commitment to double our contracts. In addition, our innovative land reclamation practices were recognized in 2006 with the mining industry’s highest honor, the U.S. Department of the Interior’s Director’s Award.
Over the past three years, we have reinvigorated TXU’s commitment to communities with a significant increase in funding for bill-payment assistance, energy-efficiency programs, and philanthropy. One of the first turnaround actions was a pledge to provide $15 million over three years to TXU Energy Aid, TXU’s flagship assistance program. This fourfold increase in funding has helped provide assistance to over 74,000 families. We have also committed to funding up to $25 million in discounts for low-income customers who previously qualified for a state assistance program. TXU Energy is the only retailer to consistently provide this discount since the state redirected funding in 2005. Also, we have increased our market-leading investment in energy efficiency to a level that has averaged $46 million annually, benefited over 166,000 customers, and saved 320 megawatts. Communities have also benefited from our rejuvenated United Way/TXU Energy Aid campaigns. Each campaign has been award winning, record setting, and goal surpassing, providing over $5.4 million back to our neighbors. TXU’s campaign contribution has tripled, the total employee gift has virtually doubled, and membership in the United Way Tocqueville Society, which comprises individuals who contribute $10,000 or more annually, has increased substantially. In return, United Way of Metropolitan Dallas has honored TXU with its Best in Campaign and Best New Alexis de Tocqueville awards (2004), CEO of the Year award (2005), and Spirit of Caring, Rising Star, and Pacesetter awards (2006).
Overall, we can be proud of what we have achieved during our turnaround. It will provide a good foundation to better respond to the new competitive marketplace and the changing and diverse needs of our customers.
