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Luminant Statement on Final Cross-State Air Pollution Rule

07-07-2011

DALLAS –

Luminant has the following statement in response to the Environmental Protection Agencys issuance of the final Cross-State Air Pollution Rule:

Despite the concerns expressed by a large and bipartisan contingent of Texas leaders about the lack of notice and insufficient time for analysis and modeling and the adverse effects on jobs, prices and reliability in Texas the EPA has included Texas in the final rule establishing the annual SO2 emissions reduction program. Initially, in its draft rule, the EPA did not propose including Texas in the annual program because EPAs modeling did not show significant downwind impacts from Texas emissions.

The rule will have a highly disproportionate impact on Texas. For example, 26 percent of the nationwide SO2 emissions reductions required to be achieved by 2012 are to be made in Texas. EPAs new 2012 limits for Texas require a 47 percent reduction relative to Texas actual 2010 SO2 emissions levels.

The late decision to apply the rule to Texas and the modeling for the rule have resulted in wholly unreasonable mandates and unrealistic timelines for Texas. The industry standard timeframe for permitting, constructing and installing major new emissions controls is several years, yet the rule unrealistically requires compliance in six months.

We are further evaluating the 1300-page final rule to determine its specific impact on Luminant and our operations.

Luminant is committed to providing Texas with cleaner, reliable and affordable power and supporting the growth of the state. Since 2005, Luminant has achieved a 21 percent reduction in total SO2 emissions, while over the same period increasing total generation by 13 percent and adding 800 employees.

Background and key Luminant statistics:

  • Luminant operates 12 coal units in Texas with 8,000 megawatts of capacity enough to power more than six million homes during normal electric demand.
  • Luminant is one of the largest taxpayers in the state, with more than $840 million paid in the last nine years and $120 million for 2010 alone.
  • Luminant employs 4,400 throughout the state. 1,800 of those are employed at the nine active mines throughout Texas and more than 1,000 at the companys fossil fuel power plants.

About Luminant
Luminant, a subsidiary of Energy Future Holdings Corp., is a competitive power generation business, including mining, wholesale marketing and trading, and development operations. Luminant has more than 15,400 megawatts of generation in Texas, including 2,300 MW fueled by nuclear power and 8,000 MW fueled by coal. The company is also the largest purchaser of wind-generated electricity in Texas and fifth largest in the United States. EFH is a Dallas-based energy holding company that has a portfolio of competitive and regulated energy subsidiaries, primarily in Texas. Visitwww.luminant.com or www.energyfutureholdings.com for additional information.

Media
Allan Koenig
214-875-8651

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