energy future holindings txu_050206

First Quarter 2006Earnings Discussion

May 2, 2006

1

Safe Harbor StatementThis presentation 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 the company's SEC filings. In addition to the risks and uncertainties set forth in the company's SEC filings, the forward-looking statements in this release could be affected by actions of rating agencies, delays in implementing any future price-to-beat fuel factor adjustments, the ability of the company to attract and retain profitable customers, changes in demand for electricity, the impact of weather, changes in wholesale electricity prices or energy commodity prices, the company’s ability to hedge against changes in commodity prices and market heat rates, the company’s ability to fund certain investments described herein, delays in approval of, or failure to obtain, air and other environmental permits, changes in competitive market rules, changes in environmental laws or regulations, changes in electric generation and emissions control technologies, changes in projected demand for electricity in Texas, the ability of the company to attract and retain skilled labor for planning and building new generating units, changes in the cost and availability of materials necessary for the planned new generation units, the ability of the company to manage the significant construction program to a timely conclusion with limited cost overruns, the ability of the company to implement the initiatives that are part of its performance improvement program and growth strategy, and the terms under which the company executes those initiatives, and the decisions made and actions taken as a result of the company’s financial and growth strategies.

Regulation GThis presentation includes certain non-GAAP financial measures. A reconciliation of these measures to the most directly comparable GAAP measures is included in the appendix of the printed version of the slides and the version included on the company’s website at www.txucorp.com under Investor Resources/Presentations.

2

Today’s Agenda

Q&AQ&A

Operational & Clean Coal Investment

Highlights


Highlights

Financial & Risk Management Overview


C. John WilderChairman & CEO

Clean Coal Investment Drivers


Jonathan SieglerVice PresidentStrategy, Mergers & Acquisitions

David CampbellExecutive Vice President &Acting CFO

3

Reported earnings per shareQ1 05 vs. Q1 06; $ per diluted share

TXU’s Operational Earnings Improved Substantially

Q1 06Q1 05

Q1 06Q1 05

Operational earningsQ1 05 vs. Q1 06; $ millions

Q1 06Q1 05

Operational earnings per shareQ1 05 vs. Q1 06; $ per diluted share

(0.10)

1.221.09

0.51

38%38% 110%110%

Reported earningsQ1 05 vs. Q1 06; $ millions

114%114%

Q1 06Q1 05

576

416516

246

4

TXU Power Achieved Record Production Levels…

ProductionQ1 05 vs. Q1 06; GWh

Capacity factor1

Q1 05 vs. Q1 06; PercentCapacity factor1

Q1 05 vs. Q1 06; Percent

Lignite Units

3.4%3.4%

ProductionQ1 05 vs. Q1 06; GWh

Nuclear Units

5.9%5.9%

1 Excludes planned outages and economic back-down.

1.6%1.6%

Improved production added ~ $27 million of contribution margin for the quarterImproved production added ~ $27 million of contribution margin for the quarter

2.6%2.6%

Q1 05 Q1 06

10,520 10,874 4,797 5,080

Q1 05 Q1 06

96.0 97.5

Q1 05 Q1 06

100.1 102.7

Q1 05 Q1 06

5

…TXU Energy Has Introduced An Innovative Suite Of New Offerings In North Texas…

14.5-15.73 new plans that allow customers to contribute to the environment, featuring either 100% or 10% renewable energy on a month-to-month basis and an 18-month term option.

EarthWiseSM, 100% EarthWiseSM, and EarthWise 18SM

10-13 off; 25-35 peak

Empowers customers to use electricity wisely while saving as much as 20% during off-peak times over a 2-year term.

Time-of-Use Plan (available July 2006)

12.4-15.7A 2-year plan that provides an immediate discount off the current PTB rates and the opportunity for further savings if natural gasprices continue to trend lower; includes additional price protection features such as a maximum and minimum price.

MarketTracker+SM

14.1Provides customers with savings year-round, with significant discounts during the summer. Includes a 2-year term.

SummerSavings 24SM

(available May 19, 2006)

14.6Provides price protection for the duration of 2006, while allowing customers to change plans at any time without penalty.

Freedom Plan

14.5Features two years of price protection due to rising fuel costs;priced below the current price-to-beat (PTB).

PriceGuarantee24SM

Low Income Assistance Plan

SureValueSM (available June 1, 2006)

ProductAvg. Annual

Price (¢/kWh)1Description

13.2Provides a 10% discount for low-income customers who previously received this discount as part of a discontinued state program.

13.2Provides up to 10% off current PTB rates for a 5-year term.

1 Based on average monthly usage of 1,500 kWh over a 12 month period. Estimated savings based on current PTB as of April 2006.

6

Annualized Residential single family prices from incumbents (cents/kWh)

For Residential customers with an average usage of 1,500 kWh per month (average for single family). Shows all offers by incumbent providers in their traditional service areas including renewable products as of April 20, 2006. TXU Energy low income discount funded by TXU Energy.

Offer

Provider

12.0

13.0

14.0

15.0

16.0

17.0

18.0

19.0

20.0

Low

Inco

me

(on

PTB)

Sure

Valu

e

Mar

ket T

rack

er+

Sum

mer

Savi

ngs

24

Easy

Pric

e

Pric

eGua

rant

ee 2

4

Earth

Wis

e 18

Pric

e to

Bea

t

Free

dom

Pla

n

Earth

Wis

e

Low

Inco

me

Pric

e to

Bea

t

100%

Ear

thW

ise

Low

Inco

me

Low

Inco

me

Dis

coun

ted

Pric

e to

Beat

Sim

ple

Solu

tions

Flex

Hea

t Rel

ief

Pric

e to

Bea

t

Sim

ple

Solu

tions

Ren

ewab

le

Pric

e to

Bea

t

Dis

coun

ted

Pric

e to

Beat

Pric

e to

Bea

t

t t t t FC t t t t t CPL FC t WTU RRI CPL RRI RRI RRI RRI CPL WTU WTU

Average Undiscounted PTB 16.4 cents/kWh

Residential customers also have competitive offers available from new entrantsResidential customers also have competitive offers available from new entrants

…Establishing TXU As The Clear Leader Among Texas Incumbents

TXU EnergyOther incumbentsPrice-to-Beat*

* *

**

*

7

Attractive Returns Of TXU’s Clean Coal Investment Program Driven By Six Factors

Fuel strategy combining TXU lignite, other Texas lignite, and PRB coal reserves to ensure low-cost, stable supply

Long-Term Fuel Partnerships3Annual Texas electric demand growth forecasted at nearly 2%, or >1 GW/yearExpanding Power Needs In Texas4Non-recourse project debt financing

Significant commodity hedging

Potential sale of project equity

Risk/Return Optimization5Advantaged business model to replicate scaled 5-8 GW build ex-ERCOT

Site selection advisors engaged

Advantaged Platform In Other Markets6

90% capacity factors and O&M of ~$3.70/MWhHigh Performance Operations2

<80% of the cost and 30% less time than typical competitorStep Change In Capital Efficiency1

DescriptionFactor

8

Hedging Protects A Portion Of The Value While Retaining Asymmetric Upside To Commodity Moves

Scenario 1: Power and/or gas prices fall significantly (-$1.00/MMBtu)

• Opportunity to monetize hedge gains

Scenario 2: Power and/or gas prices rise (+$1.00/MMBtu) from forward curve or drop in interest rates

• Hedge losses offset portion of asset appreciation

• TXU realizes additional gains through additional builds in ERCOT or other markets

The combination of hedging and the option to further expand the strategy provide TXU with asymmetric upside

The combination of hedging and the option to further expand the strategy provide TXU with asymmetric upside

Expected value of new builds

Hedge value

Expansion of new build program

Total captured value

Expected value of new builds

Hedge value

Expansion of new build program

Total captured value

Incremental $0.6 B

Incremental $1.3 B

7.32.00.76.0

3.600.63.0

9

Today’s Agenda

Q&AQ&A


Highlights


Highlights




Clean Coal InvestmentDrivers




10

Critical componentslead time

24

Air permit

20

24

TXU Has Been Able To Reduce The Typical Build Schedule By Nearly 30%...

Months

Original critical path

Revised critical path

56 6 18

4 63

Permitprep

1

13

4

2 14

9 3 45

Critical componentconstruction

EngineeringSourcing

Commissioning and testing

18 months

17

0 10 20 30 40 50 60

Wetlands permit

March 1, 2006

34

Site construction

Pre-permitsite prep

28

• Every month saved adds ~$20/KW of value

• Across the entire new build strategy the lean schedule adds almost $3.0 billion

• Every month saved adds ~$20/KW of value

• Across the entire new build strategy the lean schedule adds almost $3.0 billion

11

…While Reducing Costs By Almost 20%

Cost to construct reference plants including access to dual rail06; $/KW

Design improvements

and existing site advantages

Overhead scale

Scale procurement

savings

TXU all-in costTypical build estimate

TXU continues to focus on driving down the all-in cost of construction TXU continues to focus on driving down the all-in cost of construction

Lean construction

1,1003550602051,450

12

10

5015

TXU’s Construction Strategy Has Limited Cost Variability To Less Than $75/KW

The combination of turnkey deals, competitive sourcing and superior construction expertise has limited the potential increase in cost to <$75/KW or 7%

The combination of turnkey deals, competitive sourcing and superior construction expertise has limited the potential increase in cost to <$75/KW or 7%

335

340

425

1,100

Major equipment & engineering

Cost to construct reference plant$/KW

Variability in costs$/KW

Balance of plant

Labor, fee & contingency

75

13

0

25

50

75

100

125

150

0 10 20 30 40 50 60 70 80 90

The New Build Program Will Ensure The Market Remains Efficient

ERCOT generation portfolio: Average variable cost1

05-10; $/MWh

After the new capacity comes on line, the combination of strong demand growth and a relatively flat supply curve will help maintain 7X24 heat rates at current levels of ~8 MMBtu/MWh

Each additional 1 GW of capacity impacts the 7X24 heat rate by ~0.1MMBtu/MWh

After the new capacity comes on line, the combination of strong demand growth and a relatively flat supply curve will help maintain 7X24 heat rates at current levels of ~8 MMBtu/MWh

Each additional 1 GW of capacity impacts the 7X24 heat rate by ~0.1MMBtu/MWh

Cumulative CapacityGW

1 Based on gas price of $8/MMBtu2 Assumes 10 GW of coal capacity brought on line

05 supply curve

10 supply curve2

05 peak demand 10 peak

demand

New coal plants

12

3

14

TXU’s Build Program Can Deliver Attractive Returns

36.9

2.7

39.6

2.2

3.9

1.3

16

63$/MWh

230EBIT

20Depreciation

250EBITDA

15Property taxes and insurance

100Fuel cost

400Revenue

25O&M expense

10Emissions expense

$ MillionsComponent

800 MW reference plant pro forma1

10E; $/MWh, $ millions

On average, each 800 MW plant will have a PV/I of 1.5 and will return45% of cash in the first 5 years

On average, each 800 MW plant will have a PV/I of 1.5 and will return45% of cash in the first 5 years

1 Pro forma for reference plants with a full year of operation in 2010

15

Today’s Agenda

Q&AQ&A


Highlights


Highlights








16

Impact Of One-Time Costs, Weather And Hedge Ineffectiveness On Q1 06 Operational Earnings

(0.02)One-time severance and transition costs

(0.05)Impact of mild weather relative to normal

(0.09)Total impact on Q1 06 (included in operational earnings)

(0.02)Impact of hedge ineffectiveness related to long-term hedge program

$ Per ShareComponent

Impact of one-time costs on operational EPSQ1 06; $ per share

17

TXU Corp. Consolidated

114%114%

Operational earnings contribution by segmentQ1 05 vs. Q1 06; $ per diluted share

TXU Energy Holdings

TXU Electric Delivery

162%162%

Growth Driven By TXU Energy Holdings Performance

7%7%

0.42

1.10

Q1 05 Q1 060.51

1.09

Q1 05 Q1 06

0.15 0.14

Q1 05 Q1 06

18

Operating cash flowQ1 05 vs. Q1 06; $ millions

TXU’s Financial Flexibility Measures Improved Substantially

Q1 06Q1 05

Q1 06Q1 05

EBITDA/interestQ1 05 vs. Q1 06; Ratio

Q1 06Q1 05

Free cash flowQ1 05 vs. Q1 06; $ millions

197

1,046 712

(52)

29%29%

Debt/EBITDAQ1 05 vs. Q1 06; Percent

Q1 06Q1 05

2.84.1

5.34.1

431%431%

32%32%

19

(10)-0(10)-0(10)-0Expected underlying position

>95>95>95Percentage hedged

(135)

(322)

45208E

(111)

(340)

44407E

(44)Forward power and gas sales

(301)Retail “short”position2

336Total “generation long” position

Bal 06E

Natural gas positionBalance of 06E-08E; Million MMBtu

Heat rate positionBalance of 06E-08E; Million MWh

~27~23~8Expected underlying position

~59~65~83Percentage hedged

2

(42)

6708E

4

(47)

6607E

(3)Forward power and gas sales

(36)Retail “short”position2

47Total “generation long” position1

Bal 06E

TXU Has Significantly Reduced Its 3-Year Natural Gas Price Exposure…

TXU has mitigated over 95% of its estimated natural gas exposure from 06-08 while maintaining the majority of its long-term heat rate exposure. Since November 2005, TXU has also reduced its 2009-2011 natural gas exposure by a cumulative 340 million MMBtu

TXU has mitigated over 95% of its estimated natural gas exposure from 06-08 while maintaining the majority of its long-term heat rate exposure. Since November 2005, TXU has also reduced its 2009-2011 natural gas exposure by a cumulative 340 million MMBtu

1 Includes solid fuel and gas plants; excludes any new plant construction.2 Assumes native market retail position diminishes over time (currently approximately 8% annually) due to competitor activity and acts as a short position

while net margin remains at or below sustainable range of 5 to 10%.

20

…Resulting In Low Exposure To Near Term Commodity And Heat Rate Movements

~0-10~0-10~0-10

06E 07E 08E

EBITDA impact of $1/MMBtu change in natural gas1

06E-08E; $ millions

EBITDA impact of 0.2 MMBtu/MWh change in market heat rate1

06E-08E; $ millions

Over the next three years, TXU has a relatively low sensitivityto natural gas price and heat rate changes

Over the next three years, TXU has a relatively low sensitivityto natural gas price and heat rate changes

~50~45

~15

06E 07E 08E

Change in EBITDA (%)

<1% <1% <1% <1% <1% ~1%

1 Based on NYMEX natural gas prices as of 3/31/06; based on estimated natural gas and heat rate exposure as described in position tables.

21

TXU commodity exposure

Hedge growth invest-ments

YesEnsure financial flexibility

Meet debt obligations, base business capexneeds and preserve flexibility for dividends in 2 sigma (2%) downside commodity scenario

Meet debt obligations, base business capexneeds and preserve flexibility for dividends in 2 sigma (2%) downside commodity scenario

Ensure investment requirement of 25-35% cash returned in <5 years is met

Ensure investment requirement of 25-35% cash returned in <5 years is met

Yes

TXU hedge

strategy

No

1 2

Optimize risk-return trade-offs

TXU’s Hedging Philosophy Reflects Three Screens

Point of view on hedges

Management point of view on hedge pricing and effectiveness

Commodity pricing and volatilityCost/liquidity

Management point of view on hedge pricing and effectiveness

Commodity pricing and volatilityCost/liquidity

No

3

No Yes

Optimize risk-return trade-offs

Forward salesForward sales

Financial hedgesFinancial hedgesCapital structure

Capital structure Third party equity

22

5-Year Growth Estimates Including Only The Oak Grove And Sandow New Build Projects

0.30Retail market penetration, T&D system growth

7.05 – 7.3010E operational EPS5.5% – 6.5%06E-10E annual growth rate (percent CAGR)

+ / - 0.40EPS change with +/-$1/MMBtu in 2010 natural gas1

0.60Performance improvements

5.50-5.75 06E operational EPS

0.85Debt repurchases and share repurchases1.15Oak Grove and Sandow 5

4.5% – 8.5%

(1.35)

06E-10E

06E-10E CAGR with +/- $1/MMBtu in 2010 natural gas (%)

06E-10E commodity impacts and retail churn1

Performance Driver

Prior five-year estimates included only the Oak Grove and Sandow new builds. With these projects, TXU’s estimated 5-year annual growth estimate is 5.5% to 6.5%

Prior five-year estimates included only the Oak Grove and Sandow new builds. With these projects, TXU’s estimated 5-year annual growth estimate is 5.5% to 6.5%

TXU estimated long-term growth – as of April 19, 200606E-10E; $ per share, percent

1 Based on forward natural gas prices as of April 19, 2006; includes impact of Sandow and Oak Grove in estimate of natural gas exposure and assumes that retail mass market load acts as a short position while net margin remains at or below sustainable range of 5% to 10%.

23

The Clean Coal Program Will Drive Significant Growth

(680)Taxes(660)Interest

1,245Net income

(185)Depreciation & amortization2,770EBITDA(155)Property taxes and insurance

(920)Fuel cost4,250Revenue

(285)O&M and SG&A expense(120)Emissions expense

$ MillionsComponent

Indicative Texas clean coal investment pro forma – all plants1

10E; Mixed measures

By 2010, all plants in the clean coal investment program are expected to be on-line, generating more than $1 billion of incremental earnings

By 2010, all plants in the clean coal investment program are expected to be on-line, generating more than $1 billion of incremental earnings

1 Indicative pro forma for 2010, including Oak Grove and Sandow. Assumes that Oak Grove, Sandow, and 4 reference plants are in operation for the full year, while 4 additional reference plants come into operation by early 2010. The indicative pro forma will change as financing, hedging, and equity sell-down and other key terms are finalized and as the permitting and construction process unfolds. Reflects forward natural gas and power curves as of April 19, 2006.

24

TXU’s Sources And Uses Analysis And Capital Allocation Framework Focus At The Corporate/Parent Level…

While the cash scrubber is used for capital allocation decisions at the consolidated level, TXU operating entities are capitalized according to their risk profile

While the cash scrubber is used for capital allocation decisions at the consolidated level, TXU operating entities are capitalized according to their risk profile

ElectricDeliveryElectricDelivery

TXU CorpTXU Corp

Energy Holdings LLC

Energy Holdings LLC

Texas New Generation Co

Texas New Generation Co

Focus of “sources and uses”analysis and TXU’s capital allocation framework (the “cash scrubber”)

06E Interest Coverage

4 X + 11 X + N/A

25

…Over The Next Five Years, TXU Corp. Will Have Significant Cash Flow For Investment Or Distribution…

Through its current business operations, TXU Corp. expects to generate nearly $10 billion of discretionary FCF over the next five years for investment/distribution

Through its current business operations, TXU Corp. expects to generate nearly $10 billion of discretionary FCF over the next five years for investment/distribution

20.0

2.0

06E-10E

21 - 23

Core portfolio capex

Cash for investment/distribution

OCF

Sources of cash 06E-10E (indicative); $ billions

6.5

4.0

2.0

9.5

06E-10E

Uses of cash 06E-10E (indicative); $ billions

DividendsCorp/Energy LLC debt

Electric Delivery debt

21 - 23

26

Excess

Yes

Payout 30-40% of operational earnings

Payout 30-40% of operational earnings

ExcessDividendPayout

EquityHolders

Cash FlowfromOper-ations

andAssetSalesTX

U B

usin

ess

Uni

ts “Customer”Capital

Yes

Quality serviceProduction reliability

Quality serviceProduction reliability

Repurchasesor Distributions

Retained forInvestment

Excess

…And Will Deploy Cash Flow And Manage Risk By Applying The “Cash Scrubber”

The cash scrubber will govern the allocation of operating cash flow and the deployment of growth capital at the TXU Corp. level

The cash scrubber will govern the allocation of operating cash flow and the deployment of growth capital at the TXU Corp. level

Growth capital

Yes, if

PV/Investment threshold of 1.325-35% cash returned <5 yrs in competitive markets

PV/Investment threshold of 1.325-35% cash returned <5 yrs in competitive markets

DebtHolders

FinancialFlexibility

Yes

EBITDA/Interest: >5.0Debt/EBITDA: <2.5Debt/MEV: 30% to 50%

EBITDA/Interest: >5.0Debt/EBITDA: <2.5Debt/MEV: 30% to 50%

27

TXU’s Clean Coal Investment Program Enables Strong Five-Year Growth

(0.45)Commodity impacts, operational improvements, retail and T&D growth1

1.25Debt repurchases and share repurchases1

9.75 – 10.0010E operational EPS including indicative clean coal pro forma

6.30 – 6.5510E operational EPS – existing businesses

3.45Earnings from clean coal project project company2

14% - 16%06E-10E annual growth rate (percent CAGR)

5.50-5.75 06E operational EPS outlook range

3% – 4%06E-10E annual growth rate (percent CAGR)

06E-10EPerformance Driver

Including the impact of the clean coal investment program, TXU’s estimated 5-year annual growth rate ranges from 14-16%

Including the impact of the clean coal investment program, TXU’s estimated 5-year annual growth rate ranges from 14-16%

TXU estimated long-term growth including indicative clean coal pro forma06E-10E; $ per share, percent

1 Reflects performance drivers discussed on slide 22 plus an additional $0.40 per share relating to share repurchases resulting from free cash flows not deployed for Oak Grove and Sandow.

2 Indicative pro forma for 2010, including Oak Grove and Sandow. Assumes that Oak Grove, Sandow, and 4 reference plants are in operation for the full year, while 4 additional reference plants come into operation by early 2010. The indicative pro forma will change as financing, hedging, and equity sell-down and other key terms are finalized and as the permitting and construction process unfolds. Reflects forward natural gas and power curves as of April 19, 2006.

28

Today’s Agenda

Q&AQ&A


Highlights


Highlights








Appendix –Regulation G Reconciliations

30

Financial Definitions

Cash provided by operating activities.Operating Cash Flow (GAAP)

Income from continuing operations net of preference stock dividends, excluding special items. TXU relies on operational earnings for evaluation of performance and believes that analysis of the business by external users is enhanced by visibility to both reported GAAP earnings and operational earnings.

Operational Earnings (non-GAAP)

Total debt less transition bonds and debt-related restricted cash.Debt

Total debt less transition bonds and debt-related restricted cash divided by EBITDA. Transition, or securitization, bonds are serviced by a regulatory transition charge on wires rates and are therefore excluded from debt in credit reviews. Debt-related restricted cash is treated as net debt in credit reviews. Debt/EBITDA is a measure used by TXU to assess credit quality.

Debt/EBITDA (non-GAAP)

Operating revenues (GAAP) less fuel and purchased power costs and delivery fees (GAAP).Contribution Margin

Cash from operating activities, less capital expenditures and nuclear fuel. Used by TXU predominantly as a forecasting tool to estimate cash available for dividends, debt reduction, and other investments.

Free Cash Flow (non-GAAP)

EBITDA divided by cash interest expense is a measure used by TXU to assess credit quality.EBITDA/Interest (non-GAAP)

Income from continuing operations before interest income, interest expense and related charges, and income tax plus depreciation and amortization and special items. EBITDA is a measure used by TXU to assess performance.

EBITDA (non-GAAP)

Interest expense and related charges less amortization of discount and reacquired debt expense plus capitalized interest. Cash interest expense is a measure used by TXU to assess credit quality.

Cash Interest Expense(non-GAAP)

Capital expenditures.Cap ex

DefinitionMeasure

31

Financial Definitions – cont.

Per share (diluted) net income available to common shareholders.Reported Earnings per Share (GAAP)

Per share (diluted) income from continuing operations net of preference stock dividends, excluding special items. Operational earnings for first quarter 2005 excludes the effect of the adjustment in 2005 for the cost of the true-up payment on the 52.5 million-share accelerated common stock repurchase.

Operational Earnings per Share (non-GAAP)

Long-term debt (including current portion), plus bank loans and commercial paper, plus preferred securities of subsidiaries, including exchangeable preferred membership interests (EPMIs).

Total Debt (GAAP)

Operational earnings (non-GAAP) plus preference stock dividends plus after-tax interest expense and related charges, net of interest income on restricted cash related to debt, divided by the average of the beginning and ending total capitalization less debt-related restricted cash. This measure is used to evaluate operational performance and management effectiveness.

Return on Invested Capital (ROIC) - (non-GAAP)

Unusual charges related to the implementation of the performance improvement program and other charges, credits or gains, that are unusual or nonrecurring. Special items are included in reported GAAP earnings, but are excluded from operational earnings. Special items associated with the performance improvement program include debt extinguishment losses and costs related to severance programs, asset impairments and facility closures.

Special Items (Non-GAAP)

DefinitionMeasure

32

Table 1: TXU Corp. Operational Earnings Reconciliation Quarter Ended March 31, 2006 and 2005 $ millions and $ per share after tax

0.97---Effect of share repurchase dilution

(0.01)---Effect of share dilution/rounding

246

(155)

(5)

406

5

(15)

416

Q1 05

1.09

-

-

1.09

-

(0.13)

1.22

Q1 06

0.51516Operational earnings

(0.32)-Special items

(0.01)-Preference stock dividends

(0.12)516Income from continuing operations

0.01-Preference stock dividends

(0.03)(60)Discontinued operations

(0.10)576Net income available for common

Q1 05Q1 06

33

Table 2: TXU Energy Holdings Operational Earnings ReconciliationQuarter Ended March 31, 2006 and 2005 $ millions and $ per share after tax

0.432031.10520Income from continuing operations

(0.01)1--Effect of share dilution/rounding

0.422001.10520Net income available for common

-2--Special items

206

3

Q1 05

1.10

-

Q1 06


0.01-Discontinued operations

Q1 05Q1 06

34

Table 3: TXU Electric Delivery Operational Earnings Reconciliation Quarter Ended March 31, 2006 and 2005 $ millions and $ per share after tax

-1--Special items

72

71

Q1 05

0.14

0.14

Q1 06


0.1565Income from continuing operations

Q1 05Q1 06

35

Table 4: TXU Corp. Total Debt As of March 31, 2006 and 2005$ millions

13,027

38

11,970

624

-

395

3/31/05

1,236Commercial paper

11,327All other long-term debt, less due currently

45Notes payable

-Preferred securities of subs

13,458Total debt

850Long-term debt due currently

Debt

3/31/06

36

Table 5: TXU Corp. Interest and Debt Coverage RatiosTwelve Months Ended March 31, 2006 and 2005$ millions unless otherwise noted

8.1

3.3

4.1

4.1

11,790

-

(1,237)

13,027

693

14

(27)

706

2,866

1,133

1,733

757

(43)

706

(45)

358

(1,259)

1,617

3/31/05

910Income tax expense

A3,642Cash provided by operating activities

B(1,758)Reconciling adjustments from cash flow statement

793Depreciation and amortization

3.7

5.4

2.8

5.3

12,213

(99)

(1,146)

13,458

824

18

(15)

821

4,377

7

4,370

(38)

821

1,884

3/31/06

EBITDA/interest – ratio (C/D)

Debt/EBITDA – ratio (F/C)

Cash provided by operating activities + cash interest expense/cash interest expense–ratio (A+D/D)

Total debt/cash flow from operating activities – ratio (E/A)

ETotal debt

Interest expense and related charges

FTotal debt less transition bonds and debt-related restricted cash

Debt-related restricted cash

EBITDA

Transition bonds

DCash interest expense

Capitalized interest

Amortization of discount and reacquired debt expense

CEBITDA (excluding special items)

Special Items

Interest income

Interest expense and related charges

Income from continuing operations before taxes and extraordinary items

Ref

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