Powering the future of Texas

TEXAS - It's no secret that our Texas economy is one of the fastest growing in the country. Within a decade, nearly 6 million new residents will call the Lone Star State home.

Texas is a great place to live and work, but unless we plan now for the future, our vigorous growth could come to a standstill. According to the Electric Reliability Council of Texas, Texas electric power reserve margins are expected to fall below levels deemed reliable by 2010. We must begin building new generating units now.

That's why TXU is planning to meet power needs tomorrow with a $10 billion investment that will save consumers and businesses money, add reliable electricity generating capacity, create jobs and lower key emissions. The plan is a thoughtful, long-term solution to a serious problem, and adding more low-cost, coal-fired generating capacity is part of the answer.

Coal offers a more dependable, less expensive alternative to high-priced natural gas, on which Texas is overly reliant. And no one has more experience than TXU in using coal to generate electricity in an environmentally responsible way. TXU has been a leader in caring for the environment, with an exceptional track record of reducing emissions.

TXU's solution for its customers in Texas includes the most significant voluntary emissions- reduction program of its kind in the United States. While TXU will more than double its capacity, it will reduce total key emissions by more than 20% from current levels. This will reduce the emissions intensity of its coal-power generation facilities by almost 70%, making it the cleanest large-scale coal generation fleet in the country.

TXU will achieve this environmental benefit through retrofitting existing units with state-of-the-art emissions controls, increasing the use of more expensive but cleaner coal in existing units and employing the best available control technology on the new units. A quarter of TXU's $10 billion program - $2.5 billion - will be spent on environmental controls that will allow TXU to meet this commitment to lower key emissions below today's levels.

We take our responsibility for protecting the environment seriously, and challenge others to follow our lead.

It's important to note that man-made emissions of carbon dioxide (CO2) are relatively insignificant - accounting for only 1.5% of global CO2. Nevertheless, we should all do what we can to minimize emissions, as TXU is doing. While the scientific community debates the global impacts of CO2, meaningful action will require global cooperation in developing new technologies in all countries.

Meanwhile, TXU continues not only to supply needed energy, but to enhance the quality of life in Texas. TXU will continue to support programs like the TXU Urban Tree Farm, which will sequester nearly 175 tons of CO2 over the trees' 80-year life span. TXU is launching a new company, TXU Renew, and will double its renewable energy portfolio by 2011 by investing in renewable power facilities. This will bring enough wind energy to power 275,000 homes.

What's more, TXU has committed to invest up to an additional $2 billion to develop and commercialize the next generation of cleaner power-plant technology, including "integrated gasification combined cycle" and breakthrough "CO2 flue gas removal" technologies.

At TXU, we've always focused our energies in socially responsible ways, and we work hard to abide by policies that are consistent with the public interest.

TXU's proposal will improve air quality, lower electric prices and contribute to Texas' economic development by creating tens of thousands of jobs. The plan will add billions of dollars to the gross state product, helping ensure that Texas' economic environment remains healthy.