Energy Future (TXU) 8-K TXU Reports Improved Second Quarter Results and Affirms Outlook

Exhibit 99.2

TXU CORP. AND SUBSIDIARIES

Segment Consolidating Income Statement

Quarter to Date Ended June 30, 2006

(Dollars in Millions)

(Unaudited)

	TXU Energy Segment		TXU Electric Delivery		Corporate & Other		Eliminations/ Rounding		Total
Operating revenues	2,349		604		14		(300	)	2,667
Direct costs and expenses
Cost of energy sold including delivery fees	943		—		—		(285	)	658
Operating costs	152		194		—		(5	)	341
Depreciation and amortization	83		116		3		—		202
Total direct costs and expenses	1,178		310		3		(290	)	1,201
Gross margin	1,171		294		11		(10	)	1,466
Other costs and expenses
Selling, general and administrative expenses	128		43		17		(7	)	181
Non-operating depreciation and other amortization	1		1		3		—		5
Franchise and revenue-based taxes	27		59		1		—		87
Other income	(1	)	—		(40	)	(1	)	(42	)
Other deductions	205		1		16		(1	)	221
Interest income	(45	)	(14	)	(24	)	72		(11	)
Interest expense and related charges	102		72		117		(73	)	218
Total other costs and expenses	417		162		90		(10	)	659
Income (loss) from continuing operations before income taxes	754		132		(79	)	—		807
Income tax expense (benefit)	293		46		(29	)	—		310
Income (loss) from continuing operations	461		86		(50	)	—		497
Income (loss) from discontinued operations, net of tax effect	—		—		—		—		—
Net income (loss)	461		86		(50	)	—		497
Preference stock dividends	—		—		—		—		—
Net income (loss) available to common shareholders	461		86		(50	)	—		497
Average shares of common stock outstanding, basic (millions)									458
Average shares of common stock outstanding, diluted (millions)									465
Per share of common stock:
Basic earnings:
Income (loss) from continuing operations	1.01		0.19		(0.12	)	0.00		1.08
Preference stock dividends	—		—		—		—		—
Net income (loss) from continuing operations available for common stock	1.01		0.19		(0.12	)	0.00		1.08
Income (loss) from discontinued operations, net of tax effect	—		—		—		—		—
Net income (loss) available for common stock	1.01		0.19		(0.12	)	—		1.08
Diluted earnings:
Income (loss) from continuing operations	0.99		0.18		(0.10	)*	0.00		1.07
Preference stock dividends	—		—		—		—		—
Net income (loss) from continuing operations available for common stock	0.99		0.18		(0.10	)	0.00		1.07
Income (loss) from discontinued operations, net of tax effect	—		—		—		—		—
Net income (loss) available for common stock	0.99		0.18		(0.10	)	—		1.07
Dividends declared									0.413

* Reflects the dilution adjustment (8 million shares).

Page 1 of 12

TXU CORP. AND SUBSIDIARIES

Segment Consolidating Income Statement

Quarter to Date Ended June 30, 2005

(Dollars in Millions)

(Unaudited)

	TXU Energy Segment		TXU Electric Delivery		Corporate & Other		Eliminations/ Rounding		Total
Operating revenues	2,276		564		6		(311	)	2,535
Direct costs and expenses
Cost of energy sold including delivery fees	1,265		—		—		(305	)	960
Operating costs	177		180		2		—		359
Depreciation and amortization	76		108		2		—		186
Total direct costs and expenses	1,518		288		4		(305	)	1,505
Gross margin	758		276		2		(6	)	1,030
Other costs and expenses
Selling, general and administrative expenses	113		43		27		(6	)	177
Non-operating depreciation and other amortization	1		—		2		—		3
Franchise and revenue-based taxes	24		56		—		1		81
Other income	(6	)	—		(12	)	—		(18	)
Other deductions	12		2		19		—		33
Interest income	(11	)	(14	)	(16	)	41		—
Interest expense and related charges	94		68		69		(42	)	189
Total other costs and expenses	227		155		89		(6	)	465
Income (loss) from continuing operations before income taxes	531		121		(87	)	—		565
Income tax expense (benefit)	186		35		(39	)	—		182
Income (loss) from continuing operations	345		86		(48	)	—		383
Income (loss) from discontinued operations, net of tax effect	(1	)	—		(3	)	—		(4	)
Net income (loss)	344		86		(51	)	—		379
Preference stock dividends	—		—		4		—		4
Net income (loss) available to common shareholders	344		86		(55	)	—		375
Average shares of common stock outstanding, basic (millions)									476
Average shares of common stock outstanding, diluted (millions)									486
Per share of common stock:
Basic earnings:
Income (loss) from continuing operations	0.72		0.18		(0.09	)	0.00		0.81
Preference stock dividends	—		—		(0.01	)	—		(0.01	)
Net income (loss) from continuing operations available for common stock	0.72		0.18		(0.10	)	0.00		0.80
Income (loss) from discontinued operations, net of tax effect	—		—		(0.01	)	—		(0.01	)
Net income (loss) available for common stock	0.72		0.18		(0.11	)	—		0.79
Diluted earnings:
Income (loss) from continuing operations	0.71		0.18		(0.09	)*	0.00		0.80
Preference stock dividends	—		—		(0.01	)	—		(0.01	)
Net income (loss) from continuing operations available for common stock	0.71		0.18		(0.10	)	0.00		0.79
Income (loss) from discontinued operations, net of tax effect	—		—		(0.01	)	—		(0.01	)
Net income (loss) available for common stock	0.71		0.18		(0.11	)	—		0.78
Dividends declared									0.281

* Reflects the dilution adjustment ( ($36) million dilution adjustment/9 million shares).

Page 2 of 12

TXU CORP. AND SUBSIDIARIES

Segment Consolidating Income Statement - Variance

Quarter to Date Ended June 30, 2006 vs June 30, 2005

(Dollars in Millions)

(Unaudited)

	TXU Energy Segment		TXU Electric Delivery		Corporate & Other		Eliminations/ Rounding		Total
Operating revenues	73		40		8		11		132
Direct costs and expenses
Cost of energy sold including delivery fees	(322	)	—		—		20		(302	)
Operating costs	(25	)	14		(2	)	(5	)	(18	)
Depreciation and amortization	7		8		1		—		16
Total direct costs and expenses	(340	)	22		(1	)	15		(304	)
Gross margin	413		18		9		(4	)	436
Other costs and expenses
Selling, general and administrative expenses	15		—		(10	)	(1	)	4
Non-operating depreciation and other amortization	—		1		1		—		2
Franchise and revenue-based taxes	3		3		1		(1	)	6
Other income	5		—		(28	)	(1	)	(24	)
Other deductions	193		(1	)	(3	)	(1	)	188
Interest income	(34	)	—		(8	)	31		(11	)
Interest expense and related charges	8		4		48		(31	)	29
Total other costs and expenses	190		7		1		(4	)	194
Income (loss) from continuing operations before income taxes	223		11		8		—		242
Income tax expense (benefit)	107		11		10		—		128
Income (loss) from continuing operations	116		—		(2	)	—		114
Income (loss) from discontinued operations, net of tax effect	1		—		3		—		4
Net income (loss)	117		—		1		—		118
Preference stock dividends	—		—		(4	)	—		(4	)
Net income (loss) available to common shareholders	117		—		5		—		122
Average shares of common stock outstanding, basic (millions)
Average shares of common stock outstanding, diluted (millions)									(19	)
									(20	)
Per share of common stock:
Basic earnings:
Income (loss) from continuing operations	0.29		0.01		(0.03	)	(0.00	)	0.27
Preference stock dividends	—		—		0.01		—		0.01
Net income (loss) from continuing operations available for common stock	0.29		0.01		(0.02	)			0.28
Income (loss) from discontinued operations, net of tax effect	—		—		0.01		—		0.01
Net income (loss) available for common stock	0.29		0.01		(0.01	)	—		0.29
Diluted earnings:
Income (loss) from continuing operations	0.28		—		(0.01	)	—		0.27
Preference stock dividends	—		—		0.01		—		0.01
Net income (loss) from continuing operations available for common stock	0.28		—		—				0.28
Income (loss) from discontinued operations, net of tax effect	—		—		0.01		—		0.01
Net income (loss) available for common stock	0.28		—		0.01		—		0.29
Dividends declared									0.132

Page 3 of 12

TXU CORP. AND SUBSIDIARIES

Segment Consolidating Income Statement

Year to Date Ended June 30, 2006

(Dollars in Millions)

(Unaudited)

	TXU Energy Segment		TXU Electric Delivery		Corporate & Other		Eliminations/ Rounding		Total
Operating revenues	4,359		1,166		27		(581	)	4,971
Direct costs and expenses
Cost of energy sold including delivery fees	1,733		—		—		(554	)	1,179
Operating costs	306		385		(1	)	(6	)	684
Depreciation and amortization	166		230		8		—		404
Total direct costs and expenses	2,205		615		7		(560	)	2,267
Gross margin	2,154		551		20		(21	)	2,704
Other costs and expenses
Selling, general and administrative expenses	249		93		51		(23	)	370
Non-operating depreciation and other amortization	3		1		5		—		9
Franchise and revenue-based taxes	54		119		1		—		174
Other income	(1	)	(1	)	(54	)	1		(55	)
Other deductions	195		2		23		1		221
Interest income	(76	)	(29	)	(48	)	133		(20	)
Interest expense and related charges	203		140		221		(133	)	431
Total other costs and expenses	627		325		199		(21	)	1,130
Income (loss) from continuing operations before income taxes	1,527		226		(179	)	—		1,574
Income tax expense (benefit)	546		75		(60	)	—		561
Income (loss) from continuing operations	981		151		(119	)	—		1,013
Income (loss) from discontinued operations, net of tax effect	—		—		60		—		60
Net income (loss)	981		151		(59	)	—		1,073
Preference stock dividends	—		—		—		—		—
Net income (loss) available to common shareholders	981		151		(59	)	—		1,073
Average shares of common stock outstanding, basic (millions)									461
Average shares of common stock outstanding, diluted (millions)									470
Per share of common stock:
Basic earnings:
Income (loss) from continuing operations	2.13		0.33		(0.26	)	0.00		2.20
Preference stock dividends	—		—		—		—		—
Net income (loss) from continuing operations available for common stock	2.13		0.33		(0.26	)	0.00		2.20
Income (loss) from discontinued operations, net of tax effect	—		—		0.13		—		0.13
Net income (loss) available for common stock	2.13		0.33		(0.13	)	0.00		2.33
Diluted earnings:
Income (loss) from continuing operations	2.09		0.32		(0.25	)*	0.00		2.16
Preference stock dividends	—		—		—		—		—
Net income (loss) from continuing operations available for common stock	2.09		0.32		(0.25	)	0.00		2.16
Income (loss) from discontinued operations, net of tax effect	—		—		0.13		—		0.13
Net income (loss) available for common stock	2.09		0.32		(0.12	)	0.00		2.29
Dividends declared									0.826

* Reflects the dilution adjustment ($1 million dilution adjustment/9 million shares).

Page 4 of 12

TXU CORP. AND SUBSIDIARIES

Segment Consolidating Income Statement

Year to Date Ended June 30, 2005

(Dollars in Millions)

(Unaudited)

	TXU Energy Segment		TXU Electric Delivery		Corporate & Other		Eliminations/ Rounding		Total
Operating revenues	4,097		1,114		12		(630	)	4,593
Direct costs and expenses
Cost of energy sold including delivery fees	2,338		—		1		(618	)	1,721
Operating costs	331		362		—		(1	)	692
Depreciation and amortization	154		213		4		—		371
Total direct costs and expenses	2,823		575		5		(619	)	2,784
Gross margin	1,274		539		7		(11	)	1,809
Other costs and expenses
Selling, general and administrative expenses	227		91		51		(10	)	359
Non-operating depreciation and other amortization	2		—		4		—		6
Franchise and revenue-based taxes	50		114		2		(1	)	165
Other income	(8	)	(2	)	(59	)	—		(69	)
Other deductions	13		6		19		—		38
Interest income	(21	)	(29	)	(49	)	80		(19	)
Interest expense and related charges	185		136		143		(80	)	384
Total other costs and expenses	448		316		111		(11	)	864
Income (loss) from continuing operations before income taxes	826		223		(104	)	—		945
Income tax expense (benefit)	278		66		(189	)	—		155
Income (loss) from continuing operations	548		157		85		—		790
Income (loss) from discontinued operations, net of tax effect	(4	)	—		15		—		11
Net income (loss)	544		157		100		—		801
Preference stock dividends	—		—		10		—		10
Net income (loss) available to common shareholders	544		157		90		—		791
Average shares of common stock outstanding, basic (millions)									476
Average shares of common stock outstanding, diluted (millions)									486
Per share of common stock:
Basic earnings:
Income (loss) from continuing operations	1.15		0.33		0.18		—		1.66
Preference stock dividends	—		—		(0.02	)	—		(0.02	)
Net income (loss) from continuing operations available for common stock	1.15		0.33		0.16		—		1.64
Income (loss) from discontinued operations, net of tax effect	(0.01	)	—		0.03		—		0.02
Net income (loss) available for common stock	1.14		0.33		0.19		—		1.66
Diluted earnings:
Income (loss) from continuing operations	1.13		0.32		0.17	*	0.00		1.62
Preference stock dividends	—		—		(0.02	)	—		(0.02	)
Net income (loss) from continuing operations available for common stock	1.13		0.32		0.15		0.00		1.60
Income (loss) from discontinued operations, net of tax effect	(0.01	)	—		0.03		—		0.02
Net income (loss) available for common stock	1.12		0.32		0.18		—		1.62
Dividends declared									0.563

* Reflects the dilution adjustment (($498) million dilution adjustment/10 million shares).

Page 5 of 12

TXU CORP. AND SUBSIDIARIES

Segment Consolidating Income Statement - Variance

Year to Date Ended June 30, 2006 vs June 30, 2005

(Dollars in Millions)

(Unaudited)

	TXU Energy Segment		TXU Electric Delivery		Corporate & Other		Eliminations/ Rounding		Total
Operating revenues	262		52		15		49		378
Direct costs and expenses
Cost of energy sold including delivery fees	(605	)	—		(1	)	64		(542	)
Operating costs	(25	)	23		(1	)	(5	)	(8	)
Depreciation and amortization	12		17		4		—		33
Total direct costs and expenses	(618	)	40		2		59		(517	)
Gross margin	880		12		13		(10	)	895
Other costs and expenses
Selling, general and administrative expenses	22		2		—		(13	)	11
Non-operating depreciation and other amortization	1		1		1		—		3
Franchise and revenue-based taxes	4		5		(1	)	1		9
Other income	7		1		5		1		14
Other deductions	182		(4	)	4		1		183
Interest income	(55	)	—		1		53		(1	)
Interest expense and related charges	18		4		78		(53	)	47
Total other costs and expenses	179		9		88		(10	)	266
Income (loss) from continuing operations before income taxes	701		3		(75	)	—		629
Income tax expense (benefit)	268		9		129		—		406
Income (loss) from continuing operations	433		(6	)	(204	)	—		223
Income (loss) from discontinued operations, net of tax effect	4		—		45		—		49
Net income (loss)	437		(6	)	(159	)	—		272
Preference stock dividends	—		—		(10	)	—		(10	)
Net income (loss) available to common shareholders	437		(6	)	(149	)	—		282
Average shares of common stock outstanding, basic (millions)									(15	)
Average shares of common stock outstanding, diluted (millions)									(16	)
Per share of common stock:
Basic earnings:
Income (loss) from continuing operations	0.98		—		(0.44	)	0.00		0.54
Preference stock dividends	—		—		0.02		—		0.02
Net income (loss) from continuing operations available for common stock	0.98		—		(0.42	)	0.00		0.56
Income (loss) from discontinued operations, net of tax effect	0.01		—		0.10		—		0.11
Net income (loss) available for common stock	0.99		—		(0.32	)	0.00		0.67
Diluted earnings:
Income (loss) from continuing operations	0.96		—		(0.42	)	0.00		0.54
Preference stock dividends	—		—		0.02		—		0.02
Net income (loss) from continuing operations available for common stock	0.96		—		(0.40	)	0.00		0.56
Income (loss) from discontinued operations, net of tax effect	0.01		—		0.10		—		0.11
Net income (loss) available for common stock	0.97		—		(0.30	)	0.00		0.67
Dividends declared									0.264

Page 6 of 12

TXU CORP. AND SUBSIDIARIES

Condensed Statements of Consolidated Cash Flows

(Unaudited)

	Six Months June 30,
	2006			2005
	(millions of dollars)
Cash flows - operating activities:
Income from continuing operations	$	1,013		$	790
Adjustments to reconcile income from continuing operations to cash provided by operating activities:
Depreciation and amortization		444			407
Deferred income taxes and investment tax credits — net		319			4
Impairment of natural gas-fired generation plants		198			—
Inventory write-off related to natural gas-fired generation plants		3			—
Net effect of unrealized mark-to-market valuations of commodity contracts		(29	)		(18	)
Charge (credit) related to impaired leases		2			(12	)
Net gain from sale of assets		(24	)		(25	)
Credit related to contract settlement		(26	)		—
Change in regulatory-related liabilities		—			(41	)
Litigation settlement accrual		1			(35	)
Charge related to coal contract counterparty claim		—			12
Net equity loss from unconsolidated affiliates and joint ventures		7			—
Stock-based compensation expense		9			15
Bad debt expense		30			19
Changes in operating assets and liabilities		(43	)		(522	)
Cash provided by operating activities		1,904			594
Cash flows - financing activities:
Issuances of securities:
Long-term debt		100			71
Common stock		180			4
Retirements/repurchases of securities:
Equity-linked debt		(179	)		(31	)
Long-term debt		(1,346	)		(92	)
Common stock		(865	)		(530	)
Preference stock		—			(300	)
Change in notes payable:
Commercial paper		906			—
Banks		800			1,110
Cash dividends paid:
Common stock		(384	)		(274	)
Preference stock		—			(11	)
Debt premium, discount, financing and reacquisition expenses		(18	)		(29	)
Cash used in financing activities		(806	)		(82	)
Cash flows - investing activities:
Capital expenditures		(825	)		(507	)
Nuclear fuel		(30	)		(26	)
Purchase of lease trust		(69	)		—
Proceeds from pollution control revenue bonds deposited with trustee		(99	)		—
Proceeds from sales of nuclear decommissioning trust fund securities		144			95
Investments in nuclear decommissioning trust fund securities		(151	)		(102	)
Investments in unconsolidated affiliated companies		(15	)		—
Other		(17	)		30
Cash used in investing activities		(1,062	)		(510	)
Discontinued operations:
Cash used in operating activities		(1	)		(21	)
Cash used in investing activities		—			(2	)
Cash used in discontinued operations		(1	)		(23	)
Net change in cash and cash equivalents		35			(21	)
Cash and cash equivalents — beginning balance		37			106
Cash and cash equivalents — ending balance	$	72		$	85

Page 7 of 12

TXU CORP. AND SUBSIDIARIES

Consolidating Balance Sheet

June 30, 2006

(Dollars in Millions)

(Unaudited)

	TXU Energy Segment		TXU Electric Delivery		Corporate & Other		Eliminations/ Rounding		Total
ASSETS
Current assets:
Cash and cash equivalents	5		1		66		—		72
Restricted cash	3		40		—		—		43
Advances to affiliates	1,655		—		—		(1,655	)	—
Accounts receivable - trade	843		112		289		(229	)	1,015
Income taxes receivable	—		—		265		(265	)	—
Trade accounts and other receivables from affiliates	1,500		216		171		(1,887	)	—
Inventories	322		61		2		—		385
Commodity contract assets	607		—		—		—		607
Cash flow hedge and other derivative assets	86		—		3		—		89
Accumulated deferred income taxes	265		49		331		—		645
Margin deposits related to commodity positions	70		—		—		—		70
Other current assets	68		84		18		(6	)	164
Total current assets	5,424		563		1,145		(4,042	)	3,090
Restricted cash	100		17		4		(1	)	120
Investments	498		80		7,855		(7,766	)	667
Property, plant and equipment - net	9,992		7,377		155		—		17,524
Notes or other receivables due from affiliates	700		340		37		(1,077	)	—
Goodwill	517		25		—		—		542
Regulatory assets - net	—		1,775		—		—		1,775
Commodity contract assets	197		—		—		—		197
Cash flow hedge and other derivative assets	307		—		9		—		316
Other noncurrent assets	219		119		491		(438	)	391
Total assets	17,954		10,296		9,696		(13,324	)	24,622
LIABILITIES, PREFERRED SECURITIES OF SUBSIDIARIES & SHAREHOLDERS’ EQUITY
Current liabilities:
Notes payable:
Commercial paper	671		592		—		—		1,263
Banks	1,240		—		—		—		1,240
Advances from affiliates	—		25		1,630		(1,655	)	—
Long-term debt due currently	1		95		73		—		169
Accounts payable - trade	684		110		247		(230	)	811
Trade accounts and other payables to affiliates	387		—		1,500		(1,887	)	—
Commodity contract liabilities	637		—		—		—		637
Cash flow hedge and other derivative liabilities	44		—		20		1		65
Margin deposits related to commodity positions	54		—		—		—		54
Other current liabilities	669		292		286		(270	)	977
Total current liabilities	4,387		1,114		3,756		(4,041	)	5,216
Accumulated deferred income taxes	2,955		1,414		—		(414	)	3,955
Investment tax credits	319		55		—		—		374
Commodity contract liabilities	346		—		—		—		346
Cash flow hedge and other derivative liabilities	324		—		154		(1	)	477
Notes or other liabilities due to affiliates	378		—		700		(1,078	)	—
Long-term debt, less amounts due currently	2,949		4,059		3,864		—		10,872
Other noncurrent liabilities and deferred credits	941		705		1,170		(23	)	2,793
Total liabilities	12,599		7,347		9,644		(5,557	)	24,033
Preferred securities of subsidiaries	537		—		(537	)	—		—
Shareholders’ equity:
Preference stock - not subject to mandatory redemption	—		—		—		—		—
Common stock	—		—		5		—		5
Additional paid-in capital	1,184		1,984		1,217		(3,168	)	1,217
Retained earnings (deficit)	3,715		985		(472	)	(4,700	)	(472	)
Accumulated other comprehensive income (loss)	(81	)	(20	)	(161	)	101		(161	)
Total shareholders’ equity	4,818		2,949		589		(7,767	)	589
Total liabilities, preferred securities of subsidiaries & shareholders’ equity	17,954		10,296		9,696		(13,324	)	24,622

Page 8 of 12

TXU CORP. AND SUBSIDIARIES

Consolidating Balance Sheet

December 31, 2005

(Dollars in Millions)

(Unaudited)

	TXU Energy Segment		TXU Electric Delivery		Corporate & Other		Eliminations/ Rounding		Total
ASSETS
Current assets:
Cash and cash equivalents	12		15		9		1		37
Restricted cash	8		46		—		—		54
Advances to affiliates	694		—		—		(694	)	—
Accounts receivable - trade	1,178		112		239		(201	)	1,328
Income taxes receivable	361		—		—		(347	)	14
Trade accounts and other receivables from affiliates	1,500		189		164		(1,853	)	—
Inventories	309		53		2		—		364
Commodity contract assets	1,603		—		—		—		1,603
Cash flow hedge and other derivative assets	63		—		1		1		65
Accumulated deferred income taxes	167		—		550		—		717
Margin deposits related to commodity positions	247		—		—		—		247
Other current assets	77		40		18		(6	)	129
Total current assets	6,219		455		983		(3,099	)	4,558
Restricted cash	—		13		3		—		16
Investments	501		63		7,366		(7,287	)	643
Property, plant and equipment - net	9,958		7,067		167		—		17,192
Notes or other receivables due from affiliates	—		362		44		(406	)	—
Goodwill	517		25		—		—		542
Regulatory assets - net	—		1,826		—		—		1,826
Commodity contract assets	338		—		—		—		338
Cash flow hedge and other derivative assets	68		—		7		—		75
Other noncurrent assets	205		100		556		(512	)	349
Total assets	17,806		9,911		9,126		(11,304	)	25,539
LIABILITIES, PREFERRED SECURITIES OF SUBSIDIARIES & SHAREHOLDERS’ EQUITY
Current liabilities:
Notes payable:
Commercial paper	306		51		—		1		358
Banks	440		—		—		—		440
Advances from affiliates	—		23		672		(695	)	—
Long-term debt due currently	401		93		756		—		1,250
Accounts payable - trade	879		125		223		(201	)	1,026
Trade accounts and other payables to affiliates	354		—		1,500		(1,854	)	—
Commodity contract liabilities	1,481		—		—		—		1,481
Cash flow hedge and other derivative liabilities	260		—		15		—		275
Margin deposits related to commodity positions	357		—		—		—		357
Other current liabilities	467		494		554		(352	)	1,163
Total current liabilities	4,945		786		3,720		(3,101	)	6,350
Accumulated deferred income taxes	2,800		1,383		—		(486	)	3,697
Investment tax credits	326		58		—		—		384
Commodity contract liabilities	516		—		—		—		516
Cash flow hedge and other derivative liabilities	44		—		48		(1	)	91
Notes or other liabilities due to affiliates	406		—		—		(406	)	—
Long-term debt, less amounts due currently	3,055		4,107		4,171		(1	)	11,332
Other noncurrent liabilities and deferred credits	833		642		1,240		(21	)	2,694
Total liabilities	12,925		6,976		9,179		(4,016	)	25,064
Preferred securities of subsidiaries	528		—		(527	)	(1	)	—
Shareholders’ equity:
Preference stock - not subject to mandatory redemption	—		—		—		—		—
Common stock	—		—		5		—		5
Additional paid-in capital	1,918		1,952		1,841		(3,871	)	1,840
Retained earnings (deficit)	2,556		1,004		(1,170	)	(3,558	)	(1,168	)
Accumulated other comprehensive income (loss)	(121	)	(21	)	(202	)	142		(202	)
Total shareholders’ equity	4,353		2,935		474		(7,287	)	475
Total liabilities, preferred securities of subsidiaries & shareholders’ equity	17,806		9,911		9,126		(11,304	)	25,539

Page 9 of 12

TXU CORP. AND SUBSIDIARIES

Consolidating Balance Sheet - Variance

June 30, 2006 vs December 31, 2005

(Dollars in Millions)

(Unaudited)

	TXU Energy Segment		TXU Electric Delivery		Corporate & Other		Eliminations/ Rounding		Total
ASSETS
Current assets:
Cash and cash equivalents	(7	)	(14	)	57		(1	)	35
Restricted cash	(5	)	(6	)	—		—		(11	)
Advances to affiliates	961		—		—		(961	)	—
Accounts receivable - trade	(335	)	—		50		(28	)	(313	)
Income taxes receivable	(361	)	—		265		82		(14	)
Trade accounts and other receivables from affiliates	—		27		7		(34	)	—
Inventories	13		8		—		—		21
Commodity contract assets	(996	)	—		—		—		(996	)
Cash flow hedge and other derivative assets	23		—		2		(1	)	24
Accumulated deferred income taxes	98		49		(219	)	—		(72	)
Margin deposits related to commodity positions	(177	)	—		—		—		(177	)
Other current assets	(9	)	44		—		—		35
Total current assets	(795	)	108		162		(943	)	(1,468	)
Restricted cash	100		4		1		(1	)	104
Investments	(3	)	17		489		(479	)	24
Property, plant and equipment - net	34		310		(12	)	—		332
Notes or other receivables due from affiliates	700		(22	)	(7	)	(671	)	—
Goodwill	—		—		—		—		—
Regulatory assets - net	—		(51	)	—		—		(51	)
Commodity contract assets	(141	)	—		—		—		(141	)
Cash flow hedge and other derivative assets	239		—		2		—		241
Other noncurrent assets	14		19		(65	)	74		42
Total assets	148		385		570		(2,020	)	(917	)
LIABILITIES, PREFERRED SECURITIES OF SUBSIDIARIES & SHAREHOLDERS’ EQUITY
Current liabilities:
Notes payable:
Commercial paper	365		541		—		(1	)	905
Banks	800		—		—		—		800
Advances from affiliates	—		2		958		(960	)	—
Long-term debt due currently	(400	)	2		(683	)	—		(1,081	)
Accounts payable - trade	(195	)	(15	)	24		(29	)	(215	)
Trade accounts and other payables to affiliates	33		—		—		(33	)	—
Commodity contract liabilities	(844	)	—		—		—		(844	)
Cash flow hedge and other derivative liabilities	(216	)	—		5		1		(210	)
Margin deposits related to commodity positions	(303	)	—		—		—		(303	)
Other current liabilities	202		(202	)	(268	)	82		(186	)
Total current liabilities	(558	)	328		36		(940	)	(1,134	)
Accumulated deferred income taxes	155		31		—		72		258
Investment tax credits	(7	)	(3	)	—		—		(10	)
Commodity contract liabilities	(170	)	—		—		—		(170	)
Cash flow hedge and other derivative liabilities	280		—		106		—		386
Notes or other liabilities due to affiliates	(28	)	—		700		(672	)	—
Long-term debt, less amounts due currently	(106	)	(48	)	(307	)	1		(460	)
Other noncurrent liabilities and deferred credits	108		63		(70	)	(2	)	99
Total liabilities	(326	)	371		465		(1,541	)	(1,031	)
Preferred securities of subsidiaries	9		—		(10	)	1		—
Shareholders’ equity:
Preference stock - not subject to mandatory redemption	—		—		—		—		—
Common stock	—		—		—		—		—
Additional paid-in capital	(734	)	32		(624	)	703		(623	)
Retained earnings (deficit)	1,159		(19	)	698		(1,142	)	696
Accumulated other comprehensive income (loss)	40		1		41		(41	)	41
Total shareholders’ equity	465		14		115		(480	)	114
Total liabilities, preferred securities of subsidiaries & shareholders’ equity	148		385		570		(2,020	)	(917	)

Page 10 of 12

TXU Corp. Regulatory Summary (at July 26, 2006)

Summary/Events

TXU Energy

Price to Beat (PTB) applies to former franchise area residential and small/medium business (< 1MW of load) customers. Until 1/1/05 TXU Energy was permitted to offer only one rate — the PTB — to residential customers. TXU Energy has been permitted to offer rates other than the PTB to small/medium commercial customers since 2004 and as of 1/1/05 can offer rates other than the PTB to residential customers. TXU Energy must also make service at the PTB price available until 1/1/07. The fuel component of the PTB can be changed twice per year if gas prices (20-day average of NYMEX 12-month strip) change by more than 5% (10% after 11/15 of any year) from the current price upon which the PTB fuel factor is based. Changes in the PTB fuel factor are initiated by TXU Energy through a filing with the PUC.

PUC No. 31416 – Evaluation of Default Service for Residential Customers and Review of Rules Relating to the Price to Beat and Provider of Last Resort (POLR)

• POLR rule approved by PUC in June 2006; new rule will take effect January 2007

• New rule has the following characteristics: 1) pricing formula comprised of energy charge plus customer charge plus non-bypassable charges, 2) requires five largest REPs for each customer class in each Transmission and Distribution Service territory to serve as involuntary POLRs, and 3) includes an automatic POLR energy charge floor for residential and small non-residential customers equal to the simple average of the 12 month trailing zonal MCPE, ending September 1 of the preceding year, multiplied by 130%

• Initiative to mandate a PTB reset to reflect any lower natural gas prices at end of 2006 defeated in first quarter of 2006

PUC No. 32874 - Petition of the Office of the Public Utility Counsel of Texas to Adopt an Emergency Rule to Suspend Disconnection of Electric Utility Services Due to Extreme and Persistent Heat Conditions and Record High Electricity Prices

• Emergency rule adopted by PUC on July 21, 2006; effective immediately

• Prohibits disconnection of critical care customers and elderly low income customers who contact their provider; customers only required to pay 25 % of their deferred bill starting in October, remainder due over five months.

• All other low income customers can avoid disconnection through September by contacting their provider and paying as little as 25% of their electric bills; deferred amount would be due in five months.

TXU Electric Delivery

General Rate Case: Authorized ROE of 11.25%, Capital structure of 60% Debt, 40% Equity. Reports are filed annually for review with the PUC.

In 2004, certain cities within TXU Electric Delivery’s historical service territory, acting in their role as a regulatory authority (with original jurisdiction), initiated inquiries to determine if the rates of TXU Electric Delivery, which have been established by the PUC, are just and reasonable. In the fourth quarter of 2004, TXU Electric Delivery recorded a $21 million charge, reported in other deductions, for estimated settlement payments arising from the resolution of these inquiries. The settlement agreement, which was finalized February 22, 2005, avoided any immediate rate actions, but required TXU Electric Delivery to file a rate case in 2006, based on a 2005 test year, unless the Cities and TXU Electric Delivery mutually agree that such a filing is unnecessary. TXU Electric Delivery has offered the benefits of the settlement to non-litigant cities. In 2005, TXU Electric Delivery made payments of approximately $11.6 million under the terms of the settlement. The final settlement amount, including non-litigant cities, is approximately $22 million, resulting in an additional $1 million accrual in September 2005. The remaining $10.6 million payable under the agreement was paid in March 2006.

On January 6, 2006, TXU Electric Delivery and the Steering Committee of Cities agreed to terms which extend the February 22, 2005 settlement agreement and resolve outstanding franchise agreement issues with member cities. Under the terms of the agreement, TXU Electric Delivery will postpone filing a rate case until June 2008, based on a 2007 test year, unless the Cities and TXU Electric Delivery mutually agree that such a filing is unnecessary. TXU Electric Delivery expects the total incremental expenses associated with the agreement to be approximately $70 million, essentially all of which will be recognized over the period from May 2006 to June 2008.

PUC No. 32941 -Petition of TXU Electric Delivery Company for Approval of TCRF Update

• Filed July 14, 2006; new TCRF rates effective September 1, 2006

• Increase to annualized revenues of about $23.5 million annually, due to TXU Electric Delivery and Austin Energy wholesale transmission rate increases, and expiration of refund associated with LCRA’s 2004 TCOS case

PUC No. 32462 – Application of TXU Electric Delivery Company for Interim Update of Wholesale Transmission Rate

• Filed February 28, 2006; new rate was approved April 28, 2006

• Total annualized revenue increase of $19 million

Page 11 of 12

TXU Corp. Summary of Significant Legal Proceedings (at June 30, 2006)

Date Filed	Case Information	Summary and Status
Sep 05	Flaherty & Crumrine Preferred Income Fund Incorporated et al. v. TXU Corp. et al. Civil Action No. 3:05CV1784-G; United States District Court for the Northern District of Texas, Dallas Division	Putative class action filed against TXU Corp. alleging violations of the Securities Exchange Act of 1934 regarding the disclosures concerning the company’s evaluation of its dividend policy in connection with the tender offer for certain securities in September and October 2004. A Motion to Dismiss filed by the Defendants is pending before the Court.
Mar 05	SEC Subpoena	Subpoena requires documents and information from 1/1/01 through 3/31/03. Subpoena states it is a fact finding inquiry and that no violation of law has been concluded. TXU Corp. has responded and will continue to cooperate with the SEC.
Dec 04 – Oct 05	In re Natural Gas Anti-Trust Cases I, II, III, IV, and V;Civil Action in San Diego Superior Court.	Twelve lawsuits filed in various California superior courts by purported customers against TXU Corp. and certain subsidiaries and other California natural gas market participants. The consolidated suits allege that by summer of 2000, defendants manipulated natural gas prices in California in violation of the Cartwright Act and other California state laws. Discovery is in process.
Feb 04	Patrick Goodenough, et al., on behalf of the TXU Thrift Plan, and all other persons similarly situated, vs. TXU Corp. et al.; Case No. 3:02CV2573-K; United States District Court for the Northern District of Texas, Dallas Division	Plaintiffs sought to represent a class of participants in employee benefit plans claiming violation of ERISA. The Plaintiffs’ second class certification motion was denied and the case was dismissed without prejudice on September 29, 2005. The Plaintiffs have filed an appeal of the dismissal to the Fifth Circuit Court of Appeals.
Jan 03 Dec 02 Nov 02 Oct 02	Richard Schwartz, et al., v. TXU Corp et al.; Civil Action No.: 3:02-CV-2243-K; United States District Court for the Northern District of Texas, Dallas Division	A consolidated case which alleged violations of the Securities Act of 1933 and the Securities Exchange Act of 1934. The case was settled in exchange for payment of $150 million, at least $101 million of which has been paid by TXU’s D&O insurance carriers. The Court entered an order approving the settlement on November 8, 2005. There have been appeals filed by some objecting parties.
Oct 02	Bruce Girdauskas, Derivatively on Behalf of TXU Corp. vs. TXU Corp. et al; Cause No. 02-10191; 116th Judicial District Court of Dallas County, Texas	Derivative filing made by a purported shareholder alleging breach of fiduciary duty. An agreement in principle to settle this case has been reached and court approval of the settlement is being sought. A hearing on the proposed settlement is scheduled for August 21, 2006. A portion of the settlement is expected to be paid by TXU’s D&O insurance carriers.

Note: Although it cannot predict the outcome of the pending unresolved litigation matters described above, TXU Corp. believes that each is without merit and intends to vigorously defend them. Detailed descriptions of these proceedings are available in the company’s 10-K and 10-Q filings with the SEC.

Page 12 of 12