06.12.07

TXU Power Announces Plans to Install Mercury Emissions Controls
DALLAS, TX -

All Existing Coal-Fueled Generation Units to be Updated with New Technology; Largest Voluntary Mercury Control Program in the Nation

TXU Power, a subsidiary of TXU Corp. (NYSE: TXU), and Texas Energy Future Holdings Limited Partnership (TEF), the holding company formed by Kohlberg Kravis Roberts & Co. (KKR), Texas Pacific Group (TPG) and other investors to acquire TXU Corp., announced today plans to install new activated carbon sorbent injection systems (SIS) at all of TXU’s existing coal-fueled generation units to reduce mercury emissions. SIS are also included as part of the Best Available Control Technology used in the three new units planned for Oak Grove and Sandow.

“TXU Power will install new mercury emissions controls on every coal-fueled generation unit in its system – the largest voluntary program ever undertaken in the nation,” said Mike Greene, chairman and CEO of TXU Power. “The reduction will start well ahead of the recently finalized federal rulemaking schedule.”

TEF supports this commitment. “After hearing directly from people across Texas, including elected officials and consumer and environmental groups, we reviewed TXU’s proposed mercury emissions controls program, and we encouraged TXU to move forward with this progressive program,” said William Reilly of TPG. Reilly, a former Administrator of the U.S. Environmental Protection Agency (EPA), will join the board of directors of TXU upon closing of the transaction.

“This emissions reduction plan demonstrates a significant commitment by TXU and TEF to protect our air quality and the environment, well in advance of EPA mandates. Mercury emissions have been of major concern throughout the state and, in fact, the nation. All efforts to reduce mercury emissions, sooner rather than later, should be encouraged and supported,” said Waco Mayor Virginia DuPuy.

“Clean air and a reliable power supply are important to all Texans, and we all benefit greatly from this plan. I look forward to continuing to work with TEF and TXU as they implement this commitment,” said Fairfield Mayor Roy Hill.

TXU Power has actively participated in more than 40 mercury measurement and control technology development and demonstration projects to evaluate different technologies. In cooperation with the U.S. Department of Energy, TXU Power hosted several different pilot scale demonstrations of mercury control technologies at its Big Brown and Monticello generation plants. Based on the performance demonstrated by these technologies, the activated carbon SIS technology was chosen. TXU Power currently operates nine coal-fueled generation units at four different plant locations.

“TXU Power has been engaged in cutting-edge research of various mercury control technologies and monitoring initiatives at several power plants,” said Greene. “The results of this research and demonstration effort will benefit the entire coal-fueled power generation industry, and TXU Power will use the knowledge gained from this eight-year effort to install the appropriate mercury control technology at its power plants. Installation of SIS is expected to begin in 2008, and the entire coal-fueled fleet should have mercury emissions controls in place by 2011, provided all necessary permits are obtained in a timely manner.”

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About TEF

Texas Energy Future Holdings Limited Partnership is the holding company formed by Kohlberg Kravis Roberts & Co., Texas Pacific Group and other investors to acquire TXU Corp. For more information, visit www.TexasEnergyFuture.com.

About TXU

TXU Corp., a Dallas-based energy company, manages a portfolio of competitive and regulated energy businesses primarily in Texas. In the competitive TXU Energy Holdings segment (electricity generation, wholesale marketing and retailing), TXU Energy provides electricity and related services to more than 2.1 million competitive electricity customers in Texas. TXU Power has over 18,100 MW of generation in Texas, including 2,300 MW of nuclear and 5,800 MW of coal-fueled generation capacity. TXU Wholesale optimizes the purchases and sales of energy for TXU Energy and TXU Power and provides related services to other market participants. TXU Wholesale is the largest purchaser of wind-generated electricity in Texas and fifth largest in the United States. Power generation and related businesses, such as TXU Power and TXU Wholesale, plan to transition toward the new Luminant Energy brand. Visit www.txucorp.com for more information about TXU Corp.

Forward Looking Statements

This release contains forward-looking statements, which are subject to various risks and uncertainties. Discussion of risks and uncertainties that could cause actual results to differ materially from management's current projections, forecasts, estimates and expectations is contained in TXU Corp.’s filings with the Securities and Exchange Commission (SEC). Specifically, TXU Corp. makes reference to the section entitled “Risk Factors” in its annual and quarterly reports. In addition to the risks and uncertainties set forth in TXU Corp.’s SEC reports, the forward-looking statements in this release could be affected by changes in demand for electricity, changes in wholesale electricity prices or energy commodity prices, the company’s ability to fund certain investments described herein, changes in competitive market rules, changes in environmental laws or regulations, changes in electric generation and emissions control technologies, and changes in projected demand for electricity in Texas.

Media
Tom Kleckner
214-812-3206

Jeff Eller (Texas Energy Future)
512-432-1760
media@texasenergyfuture.com


Investor Relations
Tim Hogan
214-812-4641

Bill Huber
214-812-2480

Steve Oakley
214-812-2220


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