TXU to cut rates by 6 percent

by PegNews wire

DALLAS — 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.

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.

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."

This apparent goodwill gesture follows on the heels of an investigation and possible multimillion dollar fines for the company, which was found to have overcharged customers in the summer of 2005.

Source: TXU