Oncor Transmission Unit Completes Critical Texas Lines Ahead of Schedule

November 20, 2002

Dallas - Oncor, the energy delivery unit of TXU, announced today that it has completed four transmission lines that will help relieve present transmission congestion in North Texas and ensure the continued reliability of the transmission grid and the vitality of the bulk electric system in the state.

Oncor completed construction of more than 300 miles of 345 kv transmission lines ahead of the December 2002 schedule. This construction milestone will increase the capability to transfer power across the Texas electric transmission grid.

Two of the lines, when completed, will help deliver power from the wind farms in West Texas to consumers in North Texas.

The 345 kv transmission system is the backbone that moves large amounts of power between different parts of the Electric Reliability Council of Texas (ERCOT) power grid. The constraints, which were identified as critical projects by ERCOT in December 1998, have created bottlenecks in power flows during times of high electrical usage. ERCOT, which manages 85 percent of the Texas electric grid, considered the congested points to be critical to electric reliability and an open, competitive market.

"The success of open market competition and electric system reliability is highly dependent on a robust transmission system, and these projects go a long way toward assuring long-term success," said Mike Greene, president of Oncor Electric Delivery Company. "The lines will help protect the state from the types of transmission congestion that contributed to California’s power crisis."

Greene added that the new transmission lines were needed to manage electric requirements for growing demand and to incorporate added generation capacity of new power plants coming on-line. With the completion of these four lines, Oncor and ERCOT continue to focus on future needs to assure a reliable electric system.

Critical constraint projects completed by Oncor ahead of schedule include:

Morgan Creek–Red Creek–Comanche 345 kv line; 70 miles (Joint construction project with American Electric Power (AEP) and Lower Colorado River Authority (LCRA); Oncor has completed its portion of the approximately 185-mile line; AEP/LCRA segment is in progress.)

Graham–Jacksboro 345 kv line; 35 miles

Monticello–Farmersville–Anna 345 kv line; 114 miles

Limestone–Watermill 345 kv line; 87.4 miles (placed in service in May 2001, doubled the amount of power that could be transferred from South to North Texas).

More information is available at www.oncorgroup.com

Oncor is part of TXU. TXU provides electric and natural gas services, energy marketing, energy delivery, telecommunications, and other energy-related services. TXU serves more than five million customers and owns and operates more than 20,000 megawatts of competitive generation in North America and Australia. Visit www.txu.com for more information about TXU.