Beginning today, approximately 1.3 million TXU Energy customers in the company's traditional service territory will receive a 6 percent price reduction that will be reflected in their next monthly bill.
Residential customers using an average of 1,500 kilowatt-hours of electricity a month will save an average of approximately $150 annually on their electric bills. The price reduction affects existing customers on the company's most popular month-to-month pricing plans, making those plans lower than all other incumbents' Price-to-Beat rollover prices.
This price reduction comes as part of a merger agreement announced last month under which an investor group led by Kohlberg Kravis Roberts & Company (KKR) and Texas Pacific Group will acquire TXU Corp. (NYSE: TXU).
In addition, these customers will receive:
- An additional 4 percent price reduction contingent on closing of the purchase of TXU by KKR and Texas Pacific Group;
- Price protection through September 2008 - protection against price increases due to changing energy market conditions; and
- Two remaining customer appreciation bonus payments of $25 each in 2007.
"We are providing our customers with lower prices, price protection unmatched by any competitor and appreciation bonus payments," said Jim Burke, Chief Executive Officer, TXU Energy. "We are also continuing to focus on customer service and developing new products and services as we compete aggressively to retain and win new customers in the competitive Texas electricity market."
TXU Energy's new price, after the 6 percent discount, is now lower than any other incumbent's Price-to-Beat rollover price and 15 percent lower than the largest competitor's rollover price, as shown below:
||Average Annual Price based on Average Monthly Usage of 1500 kWh|
||Today's new price (6% reduction) for TXU Energy FlexProtectSM and TXU Energy Freedom PlanSM
||Proposed price (10% reduction) upon closing of transaction
||Residential Service Plan
|WTU Retail Energy
||Direct Electricity Plan
|CPL Retail Energy
||Direct Electricity Plan
|First Choice Power
||Simply Better Value Plan
For more information on TXU Energy, visit http://www.txu.com.
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TXU Corp., a Dallas-based energy company, manages a portfolio of competitive and regulated energy businesses primarily in Texas. In the competitive TXU Energy Holdings segment (electricity generation, wholesale marketing and retailing), TXU Energy provides electricity and related services to more than 2.1 million competitive electricity customers in Texas. TXU Power has over 18,100 MW of generation in Texas, including 2,300 MW of nuclear and 5,800 MW of coal-fueled generation capacity. TXU Wholesale optimizes the purchases and sales of energy for TXU Energy and TXU Power and provides related services to other market participants. TXU Wholesale is the largest purchaser of wind-generated electricity in Texas and fifth largest in the United States. Visit http://www.txucorp.com/ for more information about TXU Corp.