as well as top management assignments at TXU Australia and Oncor. Dan has provided effective leadership of many activities, and his knowledge of the industry and our operations is a great advantage.

Mike McNally, an executive vice president, served capably as chief financial officer for some five years. Mike is now group president of Corporate Services, responsible for risk management, business development, human resources, information technology, procurement services, and other corporate functions.


Finally, Tom Baker, group president of Oncor, has been elected executive vice president of TXU Corp. In addition to his current role as head of Oncor, Tom has added responsibility for TXU’s governmental and legislative affairs and communications functions.

Tom is a career employee of the TXU system, with broad experience in most areas of the company’s operations. I welcome the exceptional depth and dimension he brings to the TXU leadership team.

A focus on fundamentals

TXU’s priorities over the next year are straightforward and fundamental. We are dedicated to strengthening our balance sheet and enhancing credit, achieving major cost reductions, and aggressively defending and building on our leadership positions in Texas and Australia.

Despite the challenges we have faced, our future prospects for success are well within our reach. TXU has solid businesses in Texas and Australia and a sound, distinctive business model. We have great markets in both regions, where we will make the most of our leadership positions. And we have an exceptional employee team. It has always been the strength of employees that has made the difference at TXU, and these times are no different.