Exhibit 99.1
News
Release TXU LOGO
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1601 Bryan Street
Dallas, Texas 75201-3411
FOR IMMEDIATE RELEASE
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TXU Corp. Resolves Claims with TXU Europe Administrators and Creditors
Dallas - January 27, 2005 - TXU Corp. (NYSE: TXU) today announced that it
reached a comprehensive agreement resolving potential claims relating to TXU
Europe Ltd. and its affiliates and major creditor groups. The agreement, under
which TXU Corp. denies any liability, consists of a one-time payment to TXU
Europe Ltd. of $220 million, which will be distributed to creditors.
C. John Wilder, TXU Corp.'s Chief Executive Officer, stated, "This comprehensive
agreement benefits all parties. It provides additional funds for creditors of
TXU Europe, eliminates the potential distractions, costs and uncertainty of a
protracted, adversarial claim proceeding that could have included claims of
billions of dollars and closes a difficult chapter in TXU's history.
"TXU has made tremendous strides in the past two years. Both our business
prospects and financial position are strong and will be stronger with this issue
behind us," Wilder concluded.
As a result of the one-time payment, a charge of approximately $220 million
($143 million after-tax) will be reflected in results from discontinued
operations in the fourth quarter of 2004. While TXU Corp. expects to recover a
substantial portion of the payment through insurance policies, the charge has
not been reduced because TXU Corp. has not yet reached agreements with the
insurance carriers. The benefits of insurance proceeds will be recognized in
earnings from discontinued operations when agreements are reached. The payment
is expected to be made in the second quarter of 2005 and sourced from insurance
proceeds, cash on hand and available credit facility capacity.
The settlement agreement is contingent upon creditor approval and the formal
delivery to TXU Corp. of releases from existing or potential claims. A majority
of creditors have already confirmed their approval. The process is expected to
be completed in the second quarter of 2005.
TXU Corp., a Dallas-based energy company, manages a portfolio of competitive and
regulated energy businesses in North America, primarily in Texas. In TXU Corp.'s
unregulated business, TXU Energy Retail provides electricity and related
services to more than 2.5 million competitive electricity customers in Texas,
more customers than any other retail electric provider in the state. TXU Power
has over 18,300 megawatts of generation in Texas, including 2,300 MW of
nuclear-fired and 5,837 MW of lignite/coal-fired generation capacity. TXU Corp.
is also the largest purchaser of wind-generated electricity in Texas and among
the top five purchasers in North America. TXU Corp.'s regulated electric
distribution and transmission business, TXU Electric Delivery Company,
complements the competitive operations, using asset management skills developed
over more than one hundred years, to provide reliable electricity delivery to
consumers. TXU Electric Delivery operates the largest distribution and
transmission system in Texas, providing power to 2.9 million electric delivery
points over more than 98,000 miles of distribution and 14,000 miles of
transmission lines. Visit www.txucorp.com for more information about TXU Corp.
This release 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 TXU Corp.'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 the
contingencies to the settlement that are addressed above and the amount and
timing of recoveries from insurance carriers.
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For more information, contact:
Media Investor Relations
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Chris Schein Kimberly Morgan Tim Hogan Bill Huber
214-875-8329 214-875-8016 214-875-9275 214-875-8301
214-534-0087(cell) 214-543-1251(cell)