Txu Energy Signs Multi-Million Dollar Energy Provider Agreement with H-Gac

- DALLAS -- The Houston-Galveston Area Council (H-GAC) has chosen TXU Energy as its retail electricity provider, signing an aggregator contract worth more than an estimated $200 million.

H-GAC is the voluntary association of almost 150 counties, cities, independent school districts and soil and conversation districts in the Houston/Galveston area. Already, more than 110 local governments have shown support for the H-GAC electricity purchasing program with TXU Energy. The contract becomes effective in 2002, and the contract terms range from one to two years.

"H-GAC is pleased to have selected TXU Energy through a competitive proposal process to furnish electric power to participating local governments", said La Porte City Councilman Guy Sutherland, president of H- GAC. "The H-GAC program will allow local governments to lock in lower electric prices in a market that could be volatile. This plan is another example of how cooperation pays."

"H-GAC's cooperative purchasing power will deliver real savings to local governments and taxpayers. Most participating governments will save about one-third on their electric bills under the H-GAC program", said Jack Steele, H-GAC executive director. "The H-GAC cooperative plan also incorporates favorable technical terms that will improve efficiency and save money as local needs change."

"This is an exciting partnership for us," said Jeffrey Weiser, senior vice president of sales for TXU Energy's large business division. "We are very pleased to work with the Houston-Galveston Area Council, and we have a contract that will serve the organization and its members well. TXU Energy believes it has top-level industry knowledge and a commitment to customer service that will benefit clients. We think this contract demonstrates how energy providers can work cooperatively with communities and aggregators to develop win-win propositions for all parties involved."

TXU Energy offers large commercial, industrial and institutional customers a range of energy solutions, including supply and price-risk management; energy information management; design, construction and management of energy equipment; facilities management; and capital management. It serves more than 8,000 customers in 33 states and has completed more than 3,500 energy management projects nationwide.