TXU Energy, the competitive retail electric subsidiary of TXU Corp., today announced significant price cuts for its popular month-to-month TXU Energy Freedom Plan^SM for residential customers outside its traditional North Texas service territory. The decreases will take effect on bills beginning May 1.

"Our customers in North Texas have enjoyed the lowest rates in the state among major incumbents, since January 2002, and we recently just lowered them further. Consumers across the state would like us to bring lower rates to their areas too, and we are excited to be able to provide this value to Texans," said Jim Burke, Chief Executive Officer of TXU Energy. "Our retail business has been entirely focused on serving Texans, and as such, we are committed to providing customers with the most competitive pricing and the most innovative products on the market, as well as excellent customer service."

Significant Price Cut on Month-to-Month TXU Energy Freedom Plan^SM

TXU Energy is cutting the price of its Freedom Plan for all residential customers in Houston, resulting in a 10 percent lower price on this plan compared to the January 2007 price. Price cuts in other regions are shown in Table 1 below. New customers are also eligible for the reduced prices, and both new and existing customers will automatically begin receiving the lower prices effective with consumption on their May bills.

In Houston, the average annual price of the TXU Energy Freedom Plan will now remain five percent below Reliant's recently announced Residential Service Plan, based on average monthly usage of 1,500 kilowatt-hours (kWh). In areas TXU Energy serves outside of Houston and TXU Energy's traditional service area, including Corpus Christi and Abilene, these Freedom Plan price cuts result in prices that are up to five percent lower than the January 2007 prices in those areas. "Competition across the state is bringing lower rates and new services to electricity customers, and TXU Energy is working hard to stay ahead of its competitor," said Burke. "Legislators have encouraged vigorous competition among all retail electricity providers. Today, we are furthering that objective."

The new prices also come with another new, valuable benefit for TXU Energy Freedom Plan customers in all areas outside TXU Energy's traditional service area: a one percent cash-back loyalty reward bonus payable in January 2008 to eligible customers who are on this plan as of the issuance of their January 2008 bill.

New Lower Prices on TXU Energy SummerSavings 24^SM plan

Beginning May 5, 2007, TXU Energy also is offering new lower prices to customers enrolling on its popular TXU Energy SummerSavings 24^SM plan, which enables residential customers to benefit from two-year price protection and lower prices both year-round and during the summer when they are likely to use the most electricity. Depending on the region, these new price plans are being reduced by four to 11 percent, based on average monthly usage of 1,500 kilowatt-hours (kWh). In Houston, the average annual price of TXU Energy SummerSavings 24 will now be seven percent below Reliant's Residential Service Plan, based on average monthly usage of 1,500 kWh. Similarly, in Abilene (WTU Retail Energy area), Corpus Christi (CPL Retail Energy area), and Lewisville (First Choice area), the average annual price of this plan now will be nine percent, 10 percent, and six percent below the incumbent retail electric provider's Price-to-Beat rollover plan, respectively.

"We know that customers have become increasingly concerned about their electricity bills as we approach the summer months," said Burke. "With TXU Energy SummerSavings 24, we offer a plan that provides additional savings and price certainty during the hot Texas summer."  

Great Ways to Save Even More with TXU Energy

• TXU Energy residential customers can receive additional savings of up to $500 per year or more on electric bills by enrolling in the TXU Energy Refer-a-Friend program and referring new customers to TXU Energy through www.txu.com/referafriend.
• New eligible TXU Energy residential customers will receive a welcome bonus bill credit coupon of up to $75.
• All TXU Energy residential customers can sign up for TXU's exclusive TXU Energy Rewards+^TM program and receive 500 Rewards+ Dollars initially and 50 Rewards+ Dollars each month to use on purchases of merchandise and services, such as hotel stays, condo rentals, luggage, DVDs, computer software and vacation cruises. Rewards customers can save up to 40 percent off the most popular on-line travel and shopping websites.
• TXU Energy also provides tips on energy conservation at www.txucorp.com/earthday.

TXU Energy is the number one choice of Texans for electric service, serving more customers than any other retail electric provider. The company also provides exceptional 24 x 7 customer service, including taking outage reports and immediately referring them to the local utility, unlike other companies that transfer customers or make them call the local utility themselves in the event of an outage.

Customers may sign up for these plans and obtain important standardized information that will allow them to compare these products with other offers by calling TXU Energy at 1-800-242-9113 or visiting http://www.txu.com/.

Table 1: New TXU Energy Residential Price Comparisons

May 07; %, cents/kWh