Tommy Looney controls natural gas pressure near Dallas. Oncor transmits and distributes energy around a service area that stretches across North Central, East, and West Texas and includes about one-third of the state’s geographic area and population. More than 40 percent of the power that flows in the Electric Reliability Council of Texas goes through Oncor’s network of 14,000 miles of transmission lines and 95,000 miles of distribution lines. Delivery of natural gas to 1.4 million regulated TXU Gas customers also is an important responsibility. Maintained by Oncor, the 7,200-mile natural gas transmission system ranks as one of the largest in the United States. A system of almost 26,000 miles of distribution mains delivers gas to 540 cities and towns, including those in the 11-county Dallas-Fort Worth area. Reliable energy delivery is key for powering the Oncor service area, which gained 65,000 electricity and natural gas customers in 2001 alone. Led by the Dallas-Fort Worth area, the highly diversified economy remains one of the best in the nation. Oncor’s nationally recognized economic development staff continues to work with community leaders to bring new businesses and jobs to Texas. The group also works closely with land developers to meet their energy delivery needs. As employees prepared for a smooth transition to electricity competition, they also maintained their reputation for service excellence throughout 2001. In time for a happy New Year in 2001, our crews completed restoring power from a catastrophic ice storm that hit the region and then pitched in to help other companies restore their customers’ service. In May, the transmission group opened a new electricity superhighway for commercial operation. The $62 million, 88-mile transmission line is the largest built in the past 20 years in Texas and doubles the amount of electricity that can be moved from southern to northern Texas. Two more major transmission lines will be completed in 2002. Throughout 2001, we continued to focus on reliability and returns from the gas delivery business. The strategy of bundling municipal rate cases together, rather than filing them city by city, is helping accelerate rate relief, enhance earnings, and improve returns on investment to maintain reliability.