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First Quarter 2005 Earnings Discussion

May 5, 2005

Safe Harbor Statement & Regulation G

This 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 earnings release and SEC filings.

Regulation GThis presentation includes certain non-GAAP financial measures. A reconciliation of these measures to the most directly comparable GAAP measure 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.

TXU Corp. Consolidated

TXU Electric Delivery

TXU Energy Holdings

158%158%

0.43

1.01

Q1 04 Q1 05

0.17 0.30

Q1 04 Q1 05

0.33

0.85

Q1 04 Q1 05135%135%

Operational Earnings Contribution by SegmentQ1 04 vs. Q1 05; $ per diluted share

Slide 2: Solid Performance By All Core Businesses

76%76%

TXU Corp. Earnings Walk Forward By Segment

Consolidated – Earnings Walk ForwardQ1 04 to Q1 05; $millions and $ per share after tax

0.32-Effect of reduced shares

246

12

6

79

149$Millions

0.21Energy Holdings segment

0.02Electric Delivery segment

0.03Corporate expenses

1.01Q1 05 operational earnings

0.43Q1 04 operational earnings$ Per ShareEarnings Component

(45)

(29)

(16)$Millions

(0.07)Negative effect of weather

(0.11)Negative effect of commodity drivers

(0.18)Total

$ Per ShareWeather and Commodity Drivers

Pro Forma Variance1 by BusinessQ1 05 vs. Q1 04; $millions

Slide 4: TXU Power Driving TXU Energy Holdings Improvement

13(1)14Special items

45(82)127Contribution margin

118(24)142Operational EBIT

735815Other costs and expenses

131(25)156EBIT

TotalPower EnergyComponent

1 Based upon an estimated floating market-based transfer price.

Although Margins Have Improved, Long-Term ROIC’s For TXU Power Must Still Be Improved

0.0 7.5 8.413.9

7.4

TXU Baseload Plant ROIC1

02-05E; percent

1 Net income divided by PPE.2 Based on 05 operational assumptions with $4.50/MMBtu gas price and 9.0 MMBtu/MWh heat rate.

E&P Refining Steel Pulp & paper

ROIC1 Performance in Other Asset-Intensive Industries 90-03; percent

Long-term target = 10%

Min

Max18

52

04

1216

12

Avg

Long-term2

05E040302

While Regulated Rates Have Risen In Neighboring States, Competitive Rates Have Fallen In Texas

Source: Texas PUC, EIA

Competitive providers have used efficiency to combat higher purchased power costs

Competitive providers have used efficiency to combat higher purchased power costs

133

88

11

15

-1-3

Change in Best Available PriceDec 01 – Dec 04; percent

NorthTexas

NewMexico

Oklahoma

Utah

Arizona

Louisiana

Colorado Arkansas

Houston

Gasoline

Natural gas

180101

ERCOT Power Prices Are Highly Correlated To Natural Gas Prices

$0

$20

$40

$60

$80

Mar-02 Aug-02 Feb-03 Aug-03 Feb-04 Aug-04 Feb-05$0

$2

$4

$6

$8

$10

Natural Gas Price1

$/MMBtu

1 20 day rolling averageSource: MegaWatt Daily

Natural gas price

ERCOT North Zone (7X24) power

The correlation remains extremely strong with an R2 of almost 0.90The correlation remains extremely strong with an R2 of almost 0.90

ERCOT North Zone (7X24) Power Price1

$/MWh

While 7X24 Heat Rates Have Remained Close To 8, Residential Heat Rates Have Remained Close to 10

ERCOT Heat Rate1

98-09; MMBtu/MWh

0

4

8

12

16

98 99 00 01 02 03 04 05E 06E 07E 08E 09E

7X24 heat rate

1 Heat rate is a measure of the efficiency of converting a unit of fuel (MMBtu) into a unit of electricity (MWh); lower heat rate implies higher efficiency.2 Based on shaping premium, cost of ancillary services, congestion, energy losses, UFE.

Source: MegaWatt Daily, Gas Daily, Henwood

Market open

7X24 forward curve

“Residential heat rate2”

Residential Retail Gross Margins Have Been Small…

1 Based on $6.52 fuel factor.

Lowering the implied heat rate in the PTB would make it impossible for new entrants to compete and make the business unsustainable in the long-term for TXU

Lowering the implied heat rate in the PTB would make it impossible for new entrants to compete and make the business unsustainable in the long-term for TXU

Residential Contribution Margins02-05; percent

22

4

Current PTB (8 heat rate)

TXU North Texas new entrant

Jan 02 – Apr 05

Apr 051

Modified PTB(7 heat rate)

Modified PTB(9.5 heat rate)

19

2

9

(3)

13

(7)

18

(2)

27

12

Jan 02 – Apr 05

Apr 051

Jan 02 – Apr 05

Apr 051

…Especially When Compared With Other Retail Sectors

Contribution Margin99-04; percent

55

3830 28 26

189

Specialty apparel

Department stores

Grocery stores

Super-center stores

Drug stores

North Texas

attacker(Jan 02 –Apr -05)

TXURetail

(Jan 02 –Apr 05)

It would take an implied heat rate of 9.5 MMBtu/MWh in the fuel factor to approximate the gross margins seen in these other sectors

It would take an implied heat rate of 9.5 MMBtu/MWh in the fuel factor to approximate the gross margins seen in these other sectors

Legislative And Regulatory Update

PUC has recently testified that the market is working and the PTB has been an important mechanism to encourage competition It is normal and reasonable for a governmental body such as the PUC to make sure that its rules are functioning in concert with market forces, within the structure established by SB7No basis for a significant change in the current PTB rule since the rule as it exists today follows the statute as it exists today

Key Date: May 30th – Last Day of Regular Session PUC “Sunset” Bills (S.B. 408 passed Senate and H.B. 1779 passed House committee)

– 79th Legislature ‘must pass’ a Sunset bill– Re-authorizes PUC for 6 years and addresses other Sunset Recommendations

House and Senate have reaffirmed commitment to competitive market framework of SB7No bills before the legislature to change the PTB Broadband over Power Lines (“BPL”) (S.B. 1748, passed by Senate)Tax Reform / School Finance (H.B. 3, passed by House, Senate currently debating)

Energy Policy Bill (H.R. 6, passed by U.S. House on April 21, 2005)– Enhances reliability through nationwide mandatory electric reliability organization– Promotes transmission construction– Repeals Public Utility Holding Company Act of 1935 (“PUHCA”)– Establishes policies to enhance competitive wholesale market development/investment

TexasLegislature

U.S. Congress

TexasPUC

(re: PTB)

For North Texas Residential, Q1 05 PTB Was Well Below The Market Gas Curve

5.00

5.50

6.00

6.50

7.00

7.50

8.00

Jan-04 Apr-04 Jul-04 Oct-04 Jan-05 Apr-05

Gas Prices: NYMEX vs. Embedded PTB Fuel Factor Q1 04 to Q1 05; $/MMbtu

Current fuel factor = $ 6.52

NYMEX 12 month forward curveQ1 04 Q1 05

3-6%7-10%Approximate net margin3

19-21%

5.36

5.61

Q1 04

6.92Average gas price1

($/MMBtu)

6.52Gas price embedded in PTB ($/MMBtu)

12-14%Headroom at average gas price2

Q1 05

N. Texas Residential PTBEconomics

1 Simple average of NYMEX 12 month strip during quarter.2 Based on average customer usage of ~1000 kWh/month. Headroom defined as PTB – cost of energy (avg. NYMEX 12 mo. strip x 7.8 heat rate x

assumed 25% - 28% for load shaping, congestion, line losses and other ancillary costs) - avg. wires cost (based on published TXU Electric Delivery Rates, excluding clawback).

3 Net margin includes impact of SG&A, bad debt, income taxes at 35% rate, revenue taxes of 1.8%.Source: NYMEX, PUC, TXU Energy estimates

1 Based on current and pending PTB rates as of 5/2/05 (First Choice and TXU Energy). Current Reliant PTB rate includes impact of recent settlement with PUC and subsequent implementation. WTU has yet to file for PTB relief this year.

13.1

13.6

12.8

12.0 12.1

10

11

12

13

14

WTU RetailEnergy

CPL RetailEnergy

Reliant First Choice TXU Energy

Slide 13: TXU Energy Filed For PTB Relief, But Will Maintain One Of The Lowest PTB Rates In The State

PTB Pricing (assuming a 1,000 kWh/month customer)1

¢/kWh

Current

CurrentProjected - based on filing

North Texas Customer Losses In Q1 05 Exceeded Q1 04 But Mix Improved

0%

1%

2%

1st Qtr 2nd Qtr 3rd Qtr 4th Qtr

2003 2004 2005

In-Territory, Residential Customer Net Loss by Quarter03 to Q1 05; percent net loss of service points

• Net customer losses in Q1 05 was high relative to Q1 04 experience and headroom in the market

• Key Q1 05 vs. Q1 04 drivers:

• Gross losses up 14K• Drops to AREP down

14K• Customer mix improved

Q1 05 vs. Q1 04 as indicated by a 56% reduction in bad debt expense

49%51%74%Switches as % of gross losses

1.3%6.7%8.8%Net loss rate (excl drops to AREP)

1.3%5.2%6.6%Net loss rate

2005Q1

2004Full Year

2003Full Year

Mixed Results Across Other Retail Segments

• In line with expectations• EBIT impact of segment is small• Remains intensely competitive• Several profitability initiatives underway

(35)Large Business

(16)

21

%Change

• New competitive cost structure in place• Turnaround essentially complete• Growing market share• Headroom opportunity exists

Residential Out-of-Territory

• Results in line with expectations and better than other major incumbents

• Out-of-territory opportunities

Small/Medium Business

Highlights and InitiativesRetail Segment

1 Weather adjusted for comparison to 04.

Sales Volumes1 ChangeQ1 05 vs. Q1 04; percent

33

18

Q1 04 Q1 05

Retail Bad DebtQ1 04 vs. Q1 05; $millions

Slide 16: TXU Energy’s Operational Metrics Improved For Quarter

PUC Complaints/100K CustomersQ1 04 vs. Q1 05; number of

Call Answer TimesQ1 04 vs. Q1 05; seconds

Time In IVR Q1 04 vs. Q1 05; seconds

56%56%

12

110

Q1 04 Q1 05

25

11

Q1 04 Q1 05

10978

Q1 04 Q1 05

89%89% 45%45%

28%28%

Source: PUC complaint data via Regulatory Compliance Services; TXU Energy

PTB Filing Impacts Several Aspects Of 05 Projection

• Switching drives most of decrease

• Average consumption down ~2% after price increase

33 - 3435.5Total residential sales volumes1 (TWh)

• Poised to grow with improved cost structure

50 - 5546Out-of-territory residentialnet customer increase (thousands)

• Higher switching due to PTB filing and increased competition

7 - 8%5.2%In-territory residentialnet customer losses (percent)

Comments on 05E04 05EPerformance Measure

Key Retail Measures of Performance05E vs. 04; mixed measures

1 Weather adjusted by 1.5 TWh for 04 and 0.6 TWh for 05E.

Increased switching, demand elasticity, and other effects following the increase in natural gas prices and the fuel factor adjustment are estimated to dampen potential

05E EBIT improvement by $30 Million

Increased switching, demand elasticity, and other effects following the increase in natural gas prices and the fuel factor adjustment are estimated to dampen potential

05E EBIT improvement by $30 Million

Reported Earnings Per ShareQ1 04 vs. Q1 05; $ per diluted share

Slide 18: TXU’s Operational Earnings Improved Substantially

Q1 05Q1 04

Q1 05Q1 04

Operational EarningsQ1 04 vs. Q1 05; $millions

Q1 05Q1 04

Operational Earnings Per ShareQ1 04 vs. Q1 05; $ per diluted share

(0.19)

0.49 1.01

0.43

173

416140%140% 65%65%

Reported EarningsQ1 04 vs. Q1 05; $millions

135%135%139%139%

Q1 05Q1 04

149

246

Description Of Special Items

Effect on Reported EarningsQ1 05; $millions and $ per share

23-0.0923Other incomeLitigation settlement benefit

161(6)0.64155Total special items

-(3)(0.01)(3)Other deductionsOutsourcing transition costs

-(1)-(1)Other deductionsOutsourcing transition costs

138

(2)

$Millions

0.57

(0.01)

$ Per Share

-(2)Other deductionsOutsourcing transition costs

138-Income taxIncome tax benefit

Electric Delivery segment:

Category

Corporate and Other:

CashEnergy segment:

Non-Cash1Item

1 While these items are reflected in earnings for the current period, the cash impact, if any, will be realized in future periods. These items are considered non-cash for the current period.

TXU Corp. Operational Earnings Improved In Each Segment

Consolidated – Operational Earnings ReconciliationQ1 04 to Q1 05; $millions and $ per share after tax


0.026Electric Delivery segment

246

12

79149

$Millions

0.21Energy Holdings segment

0.03Corporate expenses


0.43Q1 04 operational earnings$ Per ShareEarnings Factor

(0.03)(8)Coal contract default reserve(0.01)(4)Gas storage (timing of MtM vs. accrual)(0.02)(5)Increase in credit reserves(0.05)(12)Temporary gas position

(45)

(16)$Millions

(0.07)Effect of weatherEffect of commodity drivers:

(0.18)Total

$ Per ShareWeather and Commodity Drivers

Energy Holdings Operational Earnings Improved Substantially

Energy Holdings Segment - Operational Earnings ReconciliationQ1 04 to Q1 05; $millions and $ per share

0.0935SG&A--Franchise and revenue based taxes

0.027Other income and deductions (0.01)(5)Net interest(0.09)(35)Income taxes


0.0415Operating costs

206

18

44127

$Millions

0.11Contribution margin

0.05Depreciation and amortization



Electric Delivery Operational Earnings Improved Substantially

Electric Delivery Segment - Operational Earnings ReconciliationQ1 04 to Q1 05; $millions and $ per share

--SG&A-2Franchise and revenue based taxes

(0.01)(4)Other income and deductions 0.026Net interest

-(2)Income taxes0.11-Effect of reduced shares

(0.01)(5)Operating costs

72

(18)

2766

$Millions

0.07Contribution margin (revenues)

(0.05)Depreciation and amortization



Reinvest-ment

Excess

Yes, if

50% of cash returned within 3 yearsMinimum ROI of 15%

DebtHolders

FinancialFlexibility

Yes, until

Strong Credit Metrics

• Coverage ratio • Debt/EBITDA• Debt/EV

Excess

Yes

Payout of 30-40%

Excess

EquityHolders

DividendPayout

Cash FlowfromOper-ations

andAssetSalesTX

U B

usin

ess

Uni

ts

“Customer”Capital

Yes

Quality serviceProduction reliability

Repurchasesor Distributions

Retained forInvestment

Excess

Total Payout Cap - 75% ofOperational

Earnings

Slide 23: Rigorous And Disciplined Capital Allocation Process

TXU Corp. 05 Earnings Outlook

Consolidated – Earnings Walk ForwardPrevious 05E to Revised 05E; $ per share after tax; indicative

0.73Operating revenuesIncreased revenues from wholesale market price changes

(0.05)Interest expenseIncreased interest expenses

Operating revenues

Income Statement Category

(0.08)Reduced margin from customer churn and demand elasticity

6.25–6.45Revised 05E operational earnings outlook

5.65-5.85Previous 05E operational earnings outlook05EPerformance Driver

TXU Corp. Phasing of Revised 05E Outlook Consolidated - Revised 05E Outlook05E; $millions; $ per share; percent; indicative

6.25 – 6.451,500 – 1,550Revised 05E operational earnings outlook range2.8288704 operational earnings

5.25 – 5.451,250 – 1,305Q2-Q4 revised 05E operational earnings outlook2.39738Q2-Q4 04 operational earnings


122 - 129%69 - 75%Percent growth estimate range

135%65%Percent growth

120-128%

1.01

100-107%2.82

5.65-5.85

$ Per Share; %change

88704 operational earnings

69 - 77%Percent growth estimate

53-58%Percent growth estimate range

246

1,356-1,404

$Millions; %change

Q1 05 operational earnings

Previous 05E operational earnings outlook rangeCategory

-

05E0342

575

130%130%Taxes2

03-05E; $ millions

04

252

Slide 26: Drivers Of Improving EPS

Operational Earnings 103-05E; $ millions

05E03

544

1,500-1,550

180%180%

887

04

Shares Outstanding03-05E; millions

05E03

379 321

÷

37%

04

240

Net Interest03-05E; $ millions

05E03

748 765

-

04

667

2%2%Operational EPS03-05E; $ per share

05E03

1.58

6.25-6.45

300%300%

04

2.82

1 Includes impact from preferred dividends and excludes extraordinary items, changes in accounting principles and special items.2 Taxes inclusive of ($138M) Europe tax reserve release and ($26M) of Corporate tax initiatives.

EBIT03-05E; $ millions

05E

93%93%

1,9803,000-3,050

04

1,566

03

05E Free Cash Flow Shows Strong Growth

Cash Provided by Operating Activities and Free Cash Flow05E vs. 04; $millions

214172540Dividends on preference and common stock

302,0422,650Cash provided by operating activities1

461,0431,525Free cash flow139991,125Capital expenditures and nuclear fuel

13871985Free cash flow after dividends

% Change05E 04Component

1 05 excludes an estimated $125M of special items. 04 excludes $284M of special items.

TXU’s Financial Profile Is Significantly Improved

Total Debt2

03-05E; $billions

Operational EPS03-05E; $ per share

Normalized FCF1

03-05E; $millionsROIC1

03-05E; percent

EBITDA/Interest1

03-05E; ratioTotal Debt/EBITDA1

03-05E; percent

3.04.8

4.0

5.1

3.2

4.214.5

12.311.6

60%60%

5.6

8.4160%160%710

1,500-1,550

1,043

04 05E03

1.58

6.25-6.45

2.82 300%300%

04 05E03 04 05E03

04 05E03 04 05E03 04 05E03

14.5

37%37%

1 Results from continuing operations excluding special items; FCF excludes ~ $600M in 03 associated with one-time refund related to Europe and $337M of 02 collections in 03.

2 03 total debt of $14.5B includes $2.4B related to Telecom debt and discontinued operations; 05E includes $300M to retire preference stock and $100M to refinance operating lease for transportation mining equipment.

115%115%

15%15%

11.9

Financial Metrics At Or Near The Top Quartile By 2005Financial Metrics for SPELEC1 (n=20)03-052; various measures

4th Quartile 3rd Quartile Median 2nd Quartile

Total debt/EBITDA(X)

7.8 4.2 3.7 3.2 2.2

Total debt/ enterprise value4

(%) 73.1 50.2 45.2 37.1 20.8

TXU 05E

Top

TXU 03

EBITDA/interest(X)

3.9 4.3 5.5 6.01.7

1 S&P Electric Utility Index.2 Quartile based on LTM as of Dec 04 performance; TXU 05E performance based on current outlook; TXU 03 includes discontinued operations.3 Two companies ranked at #5 with a 3.2 multiple.4 Enterprise value as of 04/29/05.

TXU 04

3.0 4.0 4.8#7

5.1 4.2 3.2#53

64.8 42.7 37.1#5

TXU Earnings Growth Drivers For 06Consolidated – Significant Growth Drivers05E to 06E; percent growth

1-2Interest expense/average share countDeployment of cash

5-6Operating revenuesNet effect of increased wholesale market prices1

1-2Operating revenuesIncreased Electric Delivery revenue from growth and investment

3-4O&M/SG&A expenseO&M/SG&A improvements

1Cost of energy sold expenseIncreased production from coal generation

3Operating revenues/ cost of energy sold expenseDecreased expenses and revenue losses due to hedge roll off

Operating revenues/ cost of energy sold

Cost of energy sold expense

Income Statement Category

4Decreased expenses due to only single-unit nuclear outage

(1-2)Mass market customer churn/demand elasticity

16-20Expected growth range

05EPerformance Driver

1 Based on April 05 market forward curves at time of fuel factor adjustment.

Q & ADiscussion

Appendix –Regulation G Reconciliations

Table 1: TXU Corp. Operational Earnings Reconciliation Quarter Ended March 31, 2005 and 2004 $millions and $ per share after tax

0.0726(0.63)(155)Special items--1.90-Effect of dilution calculation

149-

(5)128

5(50)173

Q1 04

1.01-

(0.02)(0.24)

0.02(0.07)(0.19)

Q1 05

0.43246Operational earnings-1Rounding

(0.01)(5)Preference stock dividends0.37405Income (loss) from continuing operations 0.015Preference stock dividends

(0.13)(16)Discontinued operations 0.49416Net income (loss) to common

Q1 04Q1 05

Table 2: TXU Energy Holdings Operational Earnings ReconciliationQuarter Ended March 31, 2005 and 2004 $millions and $ per share after tax

0.03110.012Special items(0.01)-(0.01)1Effect of share dilution and rounding

127

1163

113

Q1 04

0.85

0.850.010.84

Q1 05

0.33206Operational earnings

0.31203Income (loss) from continuing operations 0.013Discontinued operations 0.30200Net income (loss) to common

Q1 04Q1 05

Table 3: TXU Electric Delivery Operational Earnings Reconciliation Quarter Ended March 31, 2005 and 2004 $millions and $ per share after tax

---1Special items66

66-

66

Q1 04

0.30

0.30-

0.30

Q1 05

0.1772Operational earnings

0.1771Income (loss) from continuing operations --Discontinued operations

0.1771Net income (loss) to common

Q1 04Q1 05

Table 4: TXU Corp. Operational Earnings Reconciliation Twelve Months Ended December 31, 2004 and 2003 $ per share after tax

1.582.82Operational earnings-2.58Special items

0.010.04Effect of diluted shares calculation(0.06)(0.07)Preference stock dividends

1.630.27Income from continuing operations 0.060.07Preference stock dividends

-2.83Premium on EPMIs0.15(0.03)Cum. effect of changes in accounting principles

-(0.05)Extraordinary gain(0.20)(1.26)Discontinued operations

1.62(1.29)Net income (loss) to common 0304

Table 5: TXU Corp. Normalized Operating and Free Cash Flow Twelve Months Ended December 31, 2004 and 2003 $millions

(44)(87)Nuclear fuel(721)(912)Capital expenditures

1,4752,042Normalized operating cash flow

7101,043Normalized free cash flow

(337)-2002 collections in 2003(601)-2003 tax refund

-284Special items 2,4131,758Reported operating cash flow

0304

Table 6: TXU Corp. Return On Average Invested Capital CalculationTwelve Months Ended December 31, 2004 and 2003 $millions unless otherwise noted

___________

B1,0521,343Total return (based on operational earnings)

748667Net

(36)(28)Interest income

262233Tax at 35%

486434Net of tax

784695Interest expense

544887Operational earnings

5.6

5.7

18,831

486

22

1,068486

582

03

8.4

5.7

16,019

434

22

919434

485

04

(1)After-tax interest expense and related charges net of interest income

Return on average invested capital–based on operational earnings - % (B/C)Return on average invested capital–based on net income - % (A/C)

CAverage total capitalization

After-tax interest expense and related charges net of interest income(1)

Preference stock dividends

ATotal return (based on net income)After-tax interest expense and related charges net of interest income

Net income

Ref

04 03Debt

Notes payable 210 - Long-term debt due currently 229 678 Long-term debt held by sub Trusts - 546 All other LT debt, less due current 12,412 10,608 Securitization debt (1,258) (500) Preferred securities of subs 38 759

Total debt less transition bonds 11,631 12,091

Table 7: TXU Corp. Total Debt Years Ended December 31, 2004 and 2003 $millions unless otherwise noted

Table 8: TXU Corp. Interest and Debt Coverage RatiosTwelve Months Ended December 31, 2004 and 2003 $millions unless otherwise noted

3.04.0EBITDA/interest – ratio (A/B)

5.14.2Debt/EBITDA – ratio (D/A)

3.22.6Cash provided by operating activities/cash interest expense – ratio (E/B)

5.27.3Total debt/cash flow from operating activities – ratio (C/E)

E2,4131,758Cash provided by operating activities

1,8471,677Reconciling adjustments from cash flow statement

C12,59112,889Total debt

784695Interest expense and related charges

56681Income from continuing operations

D11,56611,631Total debt less transition bonds and debt-related restricted cash

(525)-Debt-related restricted cash

724760Depreciation and amortization

(500)

765

12

(31)

2,290

-

(36)

784

818

03

(1,258)

680

12

(27)

2,740

1,190

(28)

695

123

04

Transition bonds

BCash interest expense

Capitalized interest

Amortization of discount and reacquired debt expense

AEBITDA

Special Items

Interest income

Interest expense and related charges

Income from continuing operations before taxes and extraordinary items

Ref

04 03 RefDebt

Notes payable 210 - Long-term debt due currently 229 678 Long-term debt held by sub Trusts - 546 All other LT debt, less due current 12,412 10,608 Securitization debt (1,258) (500) Preferred securities of subs 38 759

Total debt less transition bonds 11,631 12,091 APreference stock 300 300

Total debt and preference stock 11,931 12,391

Market capitalizationShares outstanding 240 324 Price per share 64.56 23.72

Total market capitalization 15,494 7,685

Cash (202) (1,423)

Enterprise Value 27,223 18,653 B

Debt to enterprise value - % (A/B) 42.7 64.8

Table 9: TXU Corp. Total Debt to Enterprise Value Years Ended December 31, 2004 and 2003 $millions unless otherwise noted