energy future holindings txuelectric
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…While Investing To Achieve Excellence In Reliability 247 315 320 30% Transmission capital investment 03-06; $ millions 296 335 330 Distribution capital investment 03-06; $ millions 13% SAIDI 1 benchmarks (non-storm) 98-06E; Minutes 03 top quartile TXU 04E per- formance TXU 06E target TXU 05E target 11% 77 78 68 74 1 System Average Interruption Duration Index TXU Electric Delivery TXU Electric Delivery Has A Strong Competitive Position… Large customer base 03; Millions of customers Large infrastructure 03; Thousands of miles of primary distribution lines High growth 03-12E; Percent annual demand growth TXU TXU ERCOT FRCC SERC ECAR WECC MAPP MAAC SPP MAIN NPCC 2.5 2.5 2.3 2.2 2.1 1.9 1.8 1.8 1.8 1.4 5.2 5.2 4.1 4.1 3.1 2.9 2.8 2.6 2.2 2.2 86 85 73 69 67 62 57 53 39 Source: FERC EXC PCG SO PGN ETR D DUK ED FPL Source: NERC Source: PA Consulting Source: Proprietary benchmarking study 143 Top quartile safety record 03; Lost time incidents per 200,000 hours 0.12 0.21 0.14 0.25 0.43 0.28 0.40 0.27 0.12 TXU …Focused On Providing The Lowest Cost… T&D O&M expense/distribution customer 03-04; $ per customer TXU 03 performance 03 top quartile 03 top decile TXU 04E performance 2.71 2.46 2.19 2.19 TXU 03 performance 03 top quartile 03 top decile 85 77 77 76 TXU 04E performance T&D O&M expense per MWh delivered 03-04; $/MWh delivered $24.01 $24.27 $34.03 $25.89 TXU Center- point AEP Central AEP North TNMP $27.97 Monthly wires charges 04; Dollars 1 1 Assumes 1000 KWH monthly customer; Electric Delivery’s average residential consumption for 2003 was about 1300 kWh. Other non-operating charges, including system benefit fund, nuclear decommissioning charge, excess mitigation credit, retail clawback credit, transition charge on securitized regulatory assets and merger savings/rate reduction riders have not been included. 03 05E 06E 03 05E 06E O K LA H O M A TITU S F R A N K LIN C O LLIN DENTON GRAYSON COOKE MONTAGUE YOUNG ARCHER STEPH EN S PA LO P IN TO PARKER TARRANT DALLAS ROCKW ALL HUNT HOPKINS RAINS W IS E JACK C LA Y FAN N IN CHEROKEE R ED R IV ER CAMP LAMAR W OOD UPSHUR SM ITH HENDERSON ANDERSON FREESTONE LIM E S TO N E NAVARRO JO H N S O N BOSQUE H ILL M cL E N N A N FALLS ROBERTSON MADISON LE O N HOUSTON T R IN ITY W ALKER G R IM ES HOOD COMANCHE H A M ILTO N M ILLS BROW N ERATH EASTLAND CORYELL LAMPASAS BELL M ILA M BURLESON BRAZOS TR A V IS BURNET FOARD W ILBARGER BAYLOR KNOX CHILDRESS HASKELL THROCKMORTON HARDEMAN SHACKELFORD JO N E S TAYLOR CALLAHAN COLEMAN RUNNELS CONCHO M cC U L LO C H SAN SABA LLANO MASON MENARD KIM BLE BLANCO W IC H ITA W ILLIAM S O N E LLIS KAUFMAN SOMERVELL VAN ZANDT LEE W A SH IN G TO N W ALLER MONTGOMERY HAYS DELTA G ILLE S P IE Previously planned projects New projects Transmission Grid Enhancements Will Reduce Grid Congestion And Support Grid Reliability 99-03: DFW area increased imports by 2600 MW 00-03: 25GW of new generation capacity in ERCOT Increased demand in DFW is being served by new generation located outside the Metroplex causing ~$100 million in congestion costs… …TXU is undertaking an aggressive plan to enhance the grid and relieve the congestion… TXU plans to spend $400 million in 04 and 05 on transmission system upgrades across North Texas 1 2 3 4
Transcript of energy future holindings txuelectric
…While Investing To Achieve Excellence In Reliability
247
315 32030%
Transmission capital investment03-06; $ millions
296
335 330
Distribution capital investment03-06; $ millions
13%
SAIDI1 benchmarks (non-storm)98-06E; Minutes
03 topquartile
TXU 04E per-formance
TXU 06Etarget
TXU 05Etarget
11%
77 78 6874
1 System Average Interruption Duration Index
TXU Electric DeliveryTXU Electric Delivery Has A Strong Competitive Position…
Large customer base03; Millions of customers
Large infrastructure03; Thousands of miles of primary distribution lines
High growth03-12E; Percent annual demand growth
TXU TXU
ERCOTFRCC
SERCECAR
WECCMAPP
MAACSPP
MAINNPCC
2.5 2.52.3 2.2 2.1
1.9 1.8 1.8 1.81.4
5.2 5.2
4.1 4.1
3.1 2.9 2.8 2.6 2.2 2.2
86 8573 69 67 62 57 53
39
Source: FERC
EXCPCG SO PGN ETR D DUKEDFPL
Source: NERC Source: PA Consulting
Source: Proprietary benchmarking study
143
Top quartile safety record03; Lost time incidents per 200,000 hours
0.120.21
0.14
0.25
0.43
0.28
0.40
0.27
0.12
TXU
…Focused On Providing The Lowest Cost…T&D O&M expense/distribution customer03-04; $ per customer
TXU 03 performance
03 top quartile
03 topdecile
TXU 04E performance
2.71 2.46 2.19 2.19
TXU 03 performance
03 top quartile
03 topdecile
85
77 77 76
TXU 04E performance
T&D O&M expense per MWh delivered03-04; $/MWh delivered
$24.01
$24.27
$34.03
$25.89
TXU
Center-point
AEPCentral
AEP North
TNMP
$27.97
Monthly wires charges04; Dollars1
1 Assumes 1000 KWH monthly customer; Electric Delivery’s average residential consumption for 2003 was about 1300 kWh. Other non-operating charges,including system benefit fund, nuclear decommissioning charge, excess mitigation credit, retail clawback credit, transition charge on securitized regulatoryassets and merger savings/rate reduction riders have not been included.
03 05E 06E03 05E 06E
OKLAHOMA
TITU S
F RA N K LINC O LLINDE NT ON
GR AY SO N
CO OK E
M ON TA GU E
Y OU N G
AR CH E R
STE PH E NS PAL O PIN TO
PA RK ER
T AR R AN T DA LLAS
R O C KW A LL
HU N T
HO P KIN S
RA INSW IS E
JA CK
CL AY
FAN N IN
CH E ROK E E
R ED RIV ER
C AM P
LA M AR
W OO DU PS HU R
S M ITH
H EN D E R SO N
AN D ER SO N
FR E ES TO NE
LIM E ST O NE
N A VA RR O
JO HN SO N
BO S QU E
HILL
M cLEN N AN
F ALLS
RO B ER TS ON M AD IS ONLEO N
H O US TO N
TR INIT Y
W AL KE RGR IM E S
H O OD
CO M AN CH E
H AM ILT ON
M ILLS
B RO W N
ER A TH
EA S TLA N D
CO R YE LL
LA M PA S A S
BE LL
M ILAM
B UR LES O NB RA ZO S
TR AV IS
BU R NE T
FOA RD
W ILB AR G ER
BA YLO R
KN O X
C H ILDR E SS
C O TTLE
KIN G
S TO N EW A LL HA S K EL L
T HR O CK M OR TON
HA RD E M ANM OT LEYF LOY DHA LELA M BBA ILEY
C O CH RA N H O C KLE Y LU BB O CK C R O SBY D ICK E N S
KE N TGA RZ ALY NNTE RR YY OAK UM
SH A CK ELF O RD
JO NE S
F ISH ER
TA YLOR
CA LLA HA N
N O LAN
GA IN ES D A W S O N BO R D EN SC U RR Y
AN DR E W S M AR TIN
H O W A RD M ITC HE LL
C O LEM ANR U N NE LS
C O KE
ST ER LIN G
IRION
TOM G R EEN
CO N C HO
M cCU LLO C H
GLA SS COC K
M ID LAN D
E CT OR
C RA NE UP TO N R E AG AN
TE RR E LL
CR O CK ET T
S AN SA B A
LL A N OM AS O N
M EN A R DSC H LE IC HE R
S UT TON
K IM BLE
BLA NC O
W IC HIT A
W ILL IA M S ON
ELL IS
KA U FM A N
S O ME R VE LL
VA N ZA N DT
CA STR O
LE EW ASH IN G TO N
W AL LER
M ON TG O ME RY
HA Y S
D ELT A
GILL ES PIE
Previously planned projects New projects
Transmission Grid Enhancements Will Reduce Grid Congestion And Support Grid Reliability
99-03: DFW area increased imports by 2600 MW
00-03: 25GW of new generation capacity in ERCOT
Increased demand in DFW is being served by new generation located outside the Metroplex causing ~$100 million in congestion costs…
…TXU is undertaking an aggressive plan to enhance the grid and relieve the congestion…
TXU plans to spend $400 million in 04 and 05 on transmission systemupgrades across North Texas
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3 4
Storm Restoration: Our Commitment to Customer Service
June 1, 2004 storm Worst storm in 100 year history of TXU (Category 1 hurricane winds) 500,000 lightning strikes across TXU Electric Delivery system More than 11,000 device outages affecting approximately 1.3 million
customers 90% of customer power restored within 60 hours
Enhanced customer service through remote and on demand meter reading without accessing premise
Technology will allow for automatic outage notification, power quality monitoring and real time customer access to consumption data
Automated Meter Reading Will Improve ProductivityAnd Safety
Load Control Transponder
DistributionSubstation Voice Grade
Communication
PowerLines
Substation Control Equipment
ServiceTo Home
Gas MeterWater Meter
Automated electric Meter
Client Workstation (PC)Mainframe
Communication FrontEnd Processors (FEPs)
Network Client Workstations (PCs)
IT Network Platform
Oracle
Billing/CIS Mainframe
SCADA, EMS, OMS,
etc
UTILITY ENTERPRISE NETWORK (WAN/LAN)
Distribution Automation Will Enhance Customer Service And Increase Operational Efficiency
Disruption occurs on delivery system causing an outage…
1 2
Operations Center gets notified of outage
DOC
Cell Tower
Switch & CellularModem
3 Dispatcher notifies field technician who has to inspect entire feeder; average restoration time of 30-45 minutes
3 Distribution automation technology immediately identifies location of disruption and reconfigures system to restore service to majority of customers, typically within minutes.
Old
Way
New Way
Where deployed, automation technology enhances customer serviceby reducing restoration time up to 80%
TXU Electric Delivery
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These Initiatives Are Improving Electric Delivery’sFinancial Performance
9301,005
1,160
0.680.80
1.29
Operational EPS03-05; $ per share
EBITDA1
03-05; $ millions
25%
04E 05E03
90%
04E 05E03
1Results are from continuing operations excluding special items
