REPORTING, PERMITTING AND RESEARCH

Compliance Reporting
Compliance with environmental laws and regulations remains the cornerstone of TXU’s environmental efforts. Regulated emissions are in compliance with all applicable state and federal laws and regulations. While compliance is a challenging task, it is also the foundation that TXU builds on every day in an effort to go above and beyond what is required. In 2004, TXU created 5,780 separate reports for a variety of government agencies and for record-keeping purposes. These documents included air emission and water discharge reports, as well as reclamation and mining reports.

Permitting Activities
Obtaining, modifying and renewing environmental permits are critical efforts for TXU. During 2004, the company filed 230 separate environmental permit applications. The accompanying chart lists examples of the environmental permits TXU obtains from regulatory agencies, including the Texas Commission on Environmental Quality (TCEQ), the U.S. Environmental Protection Agency (EPA), the U.S. Army Corps of Engineers (COE) and the Railroad Commission of Texas (RCT).

Toxic Release Inventory
In 1986, Congress passed the Emergency Planning and Community Right-to-Know Act (EPCRA) to help make the public aware of chemicals used or released at certain industrial facilities. Several TXU facilities were included in this reporting program, with reports submitted in 1999 for the first time. The report for 2004, which is underway, will be the sixth year TXU has submitted an inventory of toxic releases to the EPA. To review TXU’s Toxic Release Inventory data, please visit www.txucorp.com/ responsibility/environment/emissions.

Research and Education Partnerships
The company’s commitment to education provides essential scientific environmental research, enhances teaching methods and skills, and helps students understand the connection between energy and the Earth. In addition to its own internal research and the projects described earlier in this section, TXU obtains essential scientific environmental research through educational partnerships that also train future scientists and through memberships in industry organizations, such as the Electric Power Research Institute.

The centerpiece of the company’s educational and research partnerships is the Environmental Research Program, with its research center at the Big Brown lignite coal mining and generating facility near Fairfield, Texas. In 1971, TXU began this unique research program to study the little-known effects on the environment of mining lignite coal and using it to generate electricity.

With financial support from TXU, an independent steering committee of environmental experts approves research topics for top graduate students and determines publication of the results. The company has no review, editing or publishing rights to the program’s findings, and all of the work is published by the research fellows in publicly available literature. Over the past 34 years, the committee has designated more than $4.2 million provided by TXU to fund research by 111 graduate students. In 2004, five students participated in this program, with research projects ranging from wetlands to carbon sequestration to the mercury content of lignite coal.

Since 1992, TXU has also worked with the business community and the TCEQ to provide summer work opportunities for minority, female and financially disadvantaged college students under the Mickey Leland Environmental Intern Program. This program has provided 40 summer intern positions, including two in 2004.