Customers in Victoria can count on Russell Pearson to deliver on promises. We also launched an exciting new competitive business that takes our asset-management knowledge beyond traditional markets. Oncor Utility Solutions offers best-in-class expertise to utilities and other organizations throughout North America with energy delivery needs. The venture signed its first contract in early 2002. It is providing construction and consulting services to San Diego Gas & Electric, which serves three million customers. Oncor Utility Solutions expects to secure a leading position in this $20 billion marketplace within five years as regulatory and market pressures drive utilities to strive for lower costs and improved service. On the other side of the world, TXU also owns one of Australia’s most reliable and cost-efficient energy networks, which delivers electricity and natural gas to 980,000 supply points in Victoria, including suburban Melbourne. With the electricity distribution system covering the eastern half of Victoria and the gas distribution system covering the western half, TXU manages over 26,000 miles of electric lines and 5,000 miles of gas pipes. TXU’s energy delivery business is leveraging its global presence by sharing jobs over the Internet. On a project crucial to meeting the opening of the Texas market on time, TXU used trans-Pacific computer network links to capitalize on time differences in the US and Australia and create a virtual 24/7 office. When it was time to sleep in the US, TXU’s Australian counterparts carried on the next stage of work. With technology, innovation, and teamwork, another key deadline was met. Efficiency and innovation characterized our United Kingdom electricity distribution business too, which was evidenced by the excellent value received when we sold the business in late 2001. Besides removing regulatory uncertainty, the sale allows focus on the higher-growth merchant energy business in Europe. Whether in North America or Australia, the cornerstone of our energy delivery success is our reliability, energy expertise, and trustworthiness.