Lee Kirk on the energy trading floor in Geneva, Switzerland. Woven throughout all energy trading operations is a rigorous system of risk-management infrastructure, processes, and controls. These trading policies and limits ensure appropriate independence and corporate governance and are designed to protect earnings, cash flows, and credit ratings. We have built a world-class North American energy trading operation, which in two years has grown from 40 employees to almost 400 today. In 2001, the energy trading group was voted No. 1 among North American natural gas marketers in customer satisfaction, according to Mastio & Company. While we sell the power TXU Energy produces within Texas, we also trade electricity and natural gas and provide wholesale products and services throughout North America. These activities provide opportunities to identify new markets and the entry points that provide promising growth opportunities. We have already assembled energy portfolios in two targeted US markets, the Northeast and Midwest. In addition, we are a top-three national competitor in the retail energy services business, providing innovative energy solutions to 8,000 large commercial, industrial, and institutional customers in 33 states. TXU Communications, owned by our telecommunications joint venture, also provides integrated communications services to business and residential customers across Texas. The 104-year-old business has over 225,000 access lines and owns and operates a state-of-the-art fiber-optic network that spans more than 2,200 miles. A EUROPEAN DYNAMO TXU Energy is one of the most dynamic and innovative diversified merchant energy groups in Europe. It is a top energy retailer, merchant energy trader, and generator in the United Kingdom. And with a top-three energy trading operation in continental Europe, portfolio and risk-management skills developed in the competitive UK market, and emerging retail and generation positions, TXU Energy is ideally placed to succeed in the deregulating European markets. To build name recognition and optimize the value of our customer relationships, in 2001 we united our Eastern Energy and Norweb Energi retail brands — and their 5.2 million electricity and natural gas customer accounts — under the new TXU Energi brand. Strategic alliances, innovative products and services, and novel advertising are key aspects of our retail approach in the UK. For example, a loyalty-card program with top supermarket chain Tesco, where 1.2 million club customers receive award points for using energy from TXU Energi, has reduced customer attrition by 30 percent for club members. StayWarm provides pensioners with secure, low-cost energy on a fixed, subscription basis, capturing a substantial share of its market at a low cost. Sponsorship of England’s Ipswich Town Football Club exposes the TXU Energi brand to 10 million people a week during the soccer season.