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EFH Corp. 2011 JPMorgan High Yield & Leveraged Finance Conference Discussion Deck February 28 th - March 2 nd
Transcript
Page 1: Energy Future Holdings...1 2009 includes 1,443 GWh of new build generation (Sandow 5 and Oak Grove 1 units). 2 2010 includes 11,384 GWh of new build generation and 41 planned outage

EFH Corp.2011 JPMorgan High Yield & Leveraged Finance Conference

Discussion Deck

February 28th- March 2nd

Page 2: Energy Future Holdings...1 2009 includes 1,443 GWh of new build generation (Sandow 5 and Oak Grove 1 units). 2 2010 includes 11,384 GWh of new build generation and 41 planned outage

1

Safe Harbor Statement

This presentation contains forward-looking statements, which are subjectto various risks and uncertainties. Discussion of risks and uncertaintiesthat could cause actual results to differ materially from management'scurrent projections, forecasts, estimates and expectations is contained inEFH Corp.'s filings with the Securities and Exchange Commission (SEC).

Regulation GThis presentation includes certain non-GAAP financial measures. Areconciliation of these measures to the most directly comparable GAAPmeasures is included in the appendix to this presentation.

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2

Table of Contents

I. Energy Future Holdings (EFH) Overview…………………… 3 - 4 II. Luminant Overview…………………………...…………….... 5 - 24III. TXU Energy Overview.………………………………………. 25 - 27IV. Oncor Overview.……………………………………………… 28 - 33V. EFH Background……………………………………………... 34 - 36 VI. Appendix – Reg G……………………………………………. 37 - 41

Page 4: Energy Future Holdings...1 2009 includes 1,443 GWh of new build generation (Sandow 5 and Oak Grove 1 units). 2 2010 includes 11,384 GWh of new build generation and 41 planned outage

3

2nd largest competitive electric generator in US

Largest lignite/coal andnuclear baseload generation fleet in Texas

Low-cost lignite reserves

Largest T&D utility in Texas

Leader in smart-grid development

Constructive regulatory regime

Largest retailelectricity provider in Texas

Strong customer value proposition

The largest power generator, retail electricity provider and transmission & distribution utility in Texas.

Energy Future Holdings Overview

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44

2010 FY Highlights

Monetized non-core assets (DFW Midstream, Permian water rights)

13 of 14 CCNs obtained for CREZ transmission construction project

Operational achievements

Solid safety performance Oak Grove 1 & 2 COD1

Baseload plants achieved solid performance

New ERCOT Summer and Winter load peaks

Top decile nuclear industry performance for reliability and cost

Liability management program– Reduced net debt by $2 billion– Extended $5 billion of maturities– Projected interest savings of $1

billion thru 2014

New TXUE brand launch - Brighten Over 1.5 million AMS meters installed

through December 2010 ERCOT nodal transition Reclamation program planted 1.2

million trees offsetting 26 million tons of CO2

Competitive business generated ~$600 million in cash flows

Settled 1997 – 2002 IRS audit Prevailed in Alcoa lawsuit

Financial achievements

Strategicinitiatives

1 COD = Commercial Operations Date

New nuclear development– CP3/4 licensing progress

TXU Energy retail electric provider licensed in Pennsylvania

Page 6: Energy Future Holdings...1 2009 includes 1,443 GWh of new build generation (Sandow 5 and Oak Grove 1 units). 2 2010 includes 11,384 GWh of new build generation and 41 planned outage

5

Page 7: Energy Future Holdings...1 2009 includes 1,443 GWh of new build generation (Sandow 5 and Oak Grove 1 units). 2 2010 includes 11,384 GWh of new build generation and 41 planned outage

6

Luminant Generation Facilities

Generation capacity in ERCOTAt 12/31/10; MW

HOUSTON

SAN ANTONIO

AUSTIN

WACO

MIDLAND

LUFKIN

ODESSA

DALLAS TYLERFORTWORTH

Power PlantsNatural gasCoalCoal, new buildNuclear

Nuclear 2,300 MWCoal 8,017Natural gas1 5,110

Total 15,427 MW

1 Includes four mothballed units (1,655 MW) not currently available for dispatch and eight units (1,268 MW) currently operated for unaffiliated parties.

Page 8: Energy Future Holdings...1 2009 includes 1,443 GWh of new build generation (Sandow 5 and Oak Grove 1 units). 2 2010 includes 11,384 GWh of new build generation and 41 planned outage

1 Includes four mothballed units (1,655 MW) not currently available for dispatch and eight units (1,268 MW) currently operated for unaffiliated parties.2 Excludes purchased power

15%

2%

57%26%

Business Profile Generation Largest baseload generation fleet in ERCOT with

around-the-clock assets that dispatch at low heat rate levels

Top decile nuclear plant production and cost performance

Top quartile coal fleet production and cost performance Liquidity-light natural gas hedging program designed to

provide cash flow security (~62% hedged for Jan 1, 2011 – Dec 31, 2014)

Comanche Peak expansion through Mitsubishi partnership may provide a low-cost nuclear growth option

14%

33%

38%15%

CoalGas Nuclear

Generating Capacity1 as of 12/31/10 Total Net Generation2, 2010

15,427 MW 76,631 GWh

New Build-Coal

Safety Wholesale power prices Natural gas hedge program Baseload reliability Mining operations Fuel costs O&M costs Operational excellence/continuous improvement Competitive market

Value Drivers

1.331.35

2.71

1.74

2008-2010 Average 2013E

LigniteDelivered PRB

Lignite vs. PRB Fuel Cost ($/MMBtu)

Note: Total lignite and PRB fuel expense excluding emissions.

Luminant is the largest power generator in Texas.

Luminant Business Summary

7

Page 9: Energy Future Holdings...1 2009 includes 1,443 GWh of new build generation (Sandow 5 and Oak Grove 1 units). 2 2010 includes 11,384 GWh of new build generation and 41 planned outage

4%

8%

12%

16%

20%

24%

2008 2009 2010 2011 2012 2013 2014 2015

Res

erve

Mar

gin

(%)

ERCOT Fundamental Supply and Demand Dynamics

ERCOT Supply Additions03-10; GW

ERCOT Reserve Margin Projections Over Time07-10; Percent

Dec 07

Target Min Reserve Margin of 13.75%

Dec 08

Dec 09

Dec 10

4 5 6 6 6 810

13

00

1 24

7

8

8

46

78

10

15

18

22

0

2

4

6

8

10

12

14

16

18

20

22

24

26

28

30

03 04 05 06 07 08 09 10

Inst

alle

d C

apac

ity (G

W)

0

10

20

30

40

50

60

70

80

MC

P ($

/MW

h)

Wind

Non-Wind

Annual Average Power Price

Latest forecast shows an increase in minimum reserve margin8

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9

1

Summer 2011 ERCOT supply stack - indicative

ERCOT Supply Stack

Sources: ERCOT and Energy Velocity ®, Ventyx

Luminant plants are typically on the “book-ends” of the supply stack. ERCOT’s marginal price is set by natural gas in most hours of the year.

0

4

8

12

16

20

0 10 20 30 40 50 60 70 80

Mar

ket H

eat R

ate

Cumulative MWs

Luminant nuclear plant

Luminant lignite/coal plants

Luminant gas plants

Legend

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10

Zonal to Nodal Market Transition

NW

SH

ZONAL• Portfolio Dispatch

• 4 Market Clearing Prices for Energy (MCPE)

• Congestion resolved at zonal level; local congestion uplifted to all load in that area

NODAL• ERCOT Dispatch (unit specific)• Locational Marginal Pricing

(LMP) leads to ~550 Settlement Point Prices

- Generation Bus Nodes- Hubs - Load Zone

• “Day Ahead Market”• Congestion will be managed on

a local basis

Page 12: Energy Future Holdings...1 2009 includes 1,443 GWh of new build generation (Sandow 5 and Oak Grove 1 units). 2 2010 includes 11,384 GWh of new build generation and 41 planned outage

Nuclear Reliability vs. Cost Benchmarks

75

80

85

90

95

10 15 20 25 30 35 40

$/MWh

Cap

abili

ty F

acto

r (%

)

1 Benchmarking peer set defined as 18 month fuel cycle U.S. nuclear plants.2 Source: Electric Utility Cost Group (EUCG) May 2010 release for Cost and World Association of Nuclear Operators (WANO) for Capability Factors.

Braidwood

Byron STP

Decile Quartile Median

Decile

Quartile

MedianVogtle

CPNPP 06-0894.1

CPNPP 0995.6

Nuclear capability factor and O&M cost performance07-09; percent and $/MWh

11

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12

0

10

20

30

40

50

60

70

2003 2004 2005 2006 2007 2008 2009 2010

Days

EFH Industry

16

17

18

19

20

2003 2004 2005 2006 2007 2008 2009 2010

'000 G

Wh

0

1

2

3EFH# of Refueling Outages

Impact of Refueling Outages

Avg. nuclear fleet refueling outage duration1 - 18 month cycle units 03-10; days

Nuclear fleet output03-10; thousand GWh

Nuclear Refueling Cycle

18 months Duration: ~19-26 days

2010 Refueling Outage Impact

2010 outage was 24 days 3rd shortest Spring 2010 outage in the

industry

2011 Refueling Outage Impact

2011 outages planned at 20 days (Unit 1) and 22 days (Unit 2)

1 2005 and 2008 were dual refueling outage years; this graph shows the average outage duration for each of those years.2 Industry based on early release data from Electric Utility Cost Group (EUCG)

2

World record steam generator outage

World record steam generator outage

Page 14: Energy Future Holdings...1 2009 includes 1,443 GWh of new build generation (Sandow 5 and Oak Grove 1 units). 2 2010 includes 11,384 GWh of new build generation and 41 planned outage

1 Benchmarking net capacity factors based on GADS. Luminant is legacy lignite/coal fleet only and based on net capacity of 5,837 MW.

Top decile 82.4%

Top quartile 78.9%

Top decile3.3

Top quartile 4.8

Luminant 07–09 fleet avg. = 83.6 %

Luminant 09 fleet = 81.4%

Luminant 07–09 fleet avg. = 3.36

Luminant 09 fleet = 3.74

Source: GKS

Luminant vs. US coal fleet net capacity factors1

Percent

Luminant vs. US coal fleet O&M $/MWh

Luminant has industry leading performance relative to other coal-fueled generators.

High-Performance Coal Operator

13

%

%

%

%

%

%

%

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14

High-Performance Coal Operator

Average coal fleet capacity factor1

05-09; percentRange of coal unit 2-year capacity factors2

05-09; percent

0.02

0.15

0.14

0.15

0.08

0.26

45%

50%

55%

60%

65%

70%

75%

80%

85%

90%

95%

100%

EFH (9) AYE (8) DYN (4) EIX (8) MIR (2) NRG (8) RRI (7)

Operator (# of Units)

Range 5 Yr Average

1 Based on unscrubbed merchant units greater than 450 MW. Industry total excludes EFH plants. EFH is legacy lignite/coal fleet only and based on net capacity of 5,837 MW.2 Includes merchant units greater than 450 MW.

Source: Velocity Suite (Energy Velocity)

Consistent high performance

0.04

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15

Coal Fleet Output

Coal fleet output1,2

03-10; GWh Coal Fleet Planned Outage Cycle 3 or 4 year overhaul cycle depending on

unit Duration is scope dependent

2009 Planned Outage Impact 2009 reflects 130 planned outage days 2009 average major outage duration was

45 days

2010 Planned Outage Impact 2010 reflects 221 planned outage days

(41 at new units) 2010 average major outage duration was

48 days1

1 2009 includes 1,443 GWh of new build generation (Sandow 5 and Oak Grove 1 units).2 2010 includes 11,384 GWh of new build generation and 41 planned outage days (Sandow 5, Oak Grove 1 & 2 units).

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16

Nuclear Expansion Opportunity

HEAVY INDUSTRIES, LTD.

…partnering witha world-class

equipment provider…

Luminant is pursuing the licensing and potential construction of a next-generation nuclear facility by …

… and leveraging favorable site characteristics and operational expertise.

The proposed expansion includes two nuclear generation units each having approximately 1,700 MW (gross) capacity. Luminant/EFH have been working with the

Department of Energy loan guarantee program office and its Japanese counterpart (METI) to secure construction financing.

Page 18: Energy Future Holdings...1 2009 includes 1,443 GWh of new build generation (Sandow 5 and Oak Grove 1 units). 2 2010 includes 11,384 GWh of new build generation and 41 planned outage

17

ERCOT Average Daily Profile of Load and Wind

Source: ERCOT

ERCOT average daily profile of load and wind outputAugust 10; mixed measures

AverageLoad

Average Wind Output

Hour

Load(aMW)

Wind Output(MW)

Wind operating characteristics necessitate additional resources for reliability.

0

500

1,000

1,500

2,000

2,500

3,000

3,500

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

1 4 7 10 13 16 19 22

Page 19: Energy Future Holdings...1 2009 includes 1,443 GWh of new build generation (Sandow 5 and Oak Grove 1 units). 2 2010 includes 11,384 GWh of new build generation and 41 planned outage

18

Texas Wind Additions

0

2,000

4,000

6,000

8,000

10,000

12,000

Pre 01 01 02 03 04 05 06 07 08 09 10 11E 12E

RPS1 Target of 2,880 MW

by 2009

RPS1 Target of 5,880 MW

by 2015

CREZsDesignated

ERCOT SGIA2

Cumulative wind capacity additions in TexasPre-01 - 10;11E - 12E; MW

Meg

awat

ts

1 Renewable Portfolio Standard2 Signed Generation Interconnect AgreementSource: ERCOT – January 2011 System Planning Report to the Reliability and Operations Subcommittee

Page 20: Energy Future Holdings...1 2009 includes 1,443 GWh of new build generation (Sandow 5 and Oak Grove 1 units). 2 2010 includes 11,384 GWh of new build generation and 41 planned outage

Historical 2014 Forward Natural Gas Prices

Historical 2014 Forward Houston Ship Channel (HSC) Gas PricesQ1’07- Q4’10; $/MMBtu

$7.18 $7.37

$7.10

$8.12

$8.71

$10.92

$8.09

$6.96 $6.95 $7.23

$7.05 $6.73

$6.27 $5.97

$5.28 $5.36

$4

$5

$6

$7

$8

$9

$10

$11

$12

Q1'07 Q2'07 Q3'07 Q4'07 Q1'08 Q2'08 Q3'08 Q4'08 Q1'09 Q2'09 Q3'09 Q4'09 Q1'10 Q2'10 Q3'10 Q4'10

19

Page 21: Energy Future Holdings...1 2009 includes 1,443 GWh of new build generation (Sandow 5 and Oak Grove 1 units). 2 2010 includes 11,384 GWh of new build generation and 41 planned outage

2020

3

4

5

6

7

8

Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10

$/M

MB

tu

2011 2012 2013

$0

$2

$4

$6

$8

$10

$12

$14

2006 2007 2008 2009 2010

$/M

MB

tu

$0

$2

$4

$6

$8

$10

$12

$14

2006 2007 2008 2009 2010

$/M

MBt

u

Houston Ship Channel settled natural gas prices1

Jan 06-Dec 10; $/MMBtu

Market Price Snapshot

NYMEX forward natural gas prices2

2011-2013; $/MMBtuNYMEX settled natural gas prices1

Jan 06-Dec10; $/MMBtu

Houston Ship Channel forward natural gas prices2

2011-2013; $/MMBtu

3

4

5

6

7

8

Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10

$/M

MB

tu

2011 2012 2013

1 Settled prices are monthly averages2 Forward prices reflect market observable quotes during the 12 months ended Dec 31, 2010 for the following delivery periods: 2011, 2012 and 2013

Page 22: Energy Future Holdings...1 2009 includes 1,443 GWh of new build generation (Sandow 5 and Oak Grove 1 units). 2 2010 includes 11,384 GWh of new build generation and 41 planned outage

2121

6

7

8

9

10

Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10

MM

Btu

/MW

h

2011 2012 2013

6

7

8

9

10

Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10

MM

Btu

/MW

h

2011 2012 2013

5

6

7

8

9

10

11

12

13

14

15

2006 2007 2008 2009 2010

MM

Btu

/MW

h

Market Price Snapshot

5

6

7

8

9

10

11

12

13

14

15

2006 2007 2008 2009 2010

MM

Btu

/MW

h

ERCOT North HUB 7x24 settled heat rate1,2

Jan 06-Dec10; MMBtu/MWhERCOT North HUB 7x24 forward heat rate1,3

2011-2013; MMBtu/MWh

ERCOT North HUB 5x16 forward heat rate1,3

2011-2013; MMBtu/MWhERCOT North HUB 5x16 settled heat rate1,2

Jan 06-Dec 10; MMBtu/MWh

1 Market heat rate calculated by dividing 7x24 and 5x16 power prices, as appropriate, by Houston Ship Channel natural gas prices2 Settled prices are monthly averages3 Forward prices reflect market observable quotes during the 12 months ended Dec 31, 2010 for the following delivery periods: 2011, 2012 and 2013

Page 23: Energy Future Holdings...1 2009 includes 1,443 GWh of new build generation (Sandow 5 and Oak Grove 1 units). 2 2010 includes 11,384 GWh of new build generation and 41 planned outage

2010 and Beyond: Environmental Regulatory Timeline

22

The environmental regulatory framework has come increasingly to the forefront with the failure of climate/RES legislation and recent EPA actions

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23

EPA-Urged New Controls Based on Proposed New EPA Rules

Rule Targeted Emission or Objective

Potential Control Required

Mercury MACT1/HAPS rule Mercury and other “hazardous air pollutants” (HAPs)

Baghouse + Scrubber (FGD2) + ACI3

Clean Air Transport NOx and SO2 SCR (NOx) and Scrubber (FGD2) (SO2)

NAAQS revisions

Ozone NAAQS Revision NOx SCR4

SO2 NAAQS Revision SO2 Scrubber (FGD2)

PM NAAQS Particulate Matter (PM) Scrubber (FGD2)

316(b) - Water Reduce fish impingement at cooling water intakes

Cooling towers

Coal Combustion Byproducts Fly ash, bottom ash, and scrubber & cooling tower byproducts

New handling and landfills

1 MACT refers to the maximum achievable control technology.2 FGD refers to flue gas desulfurization systems that reduce SO2 emissions with co-benefits of other emissions reductions.3 ACI refers to activated carbon injection systems that reduce mercury emissions.4 SCR refers to selective catalytic reduction systems.

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24

Currently Installed1 Environmental Control Equipment At Luminant Coal Units

Coal Unit Capacity (MW)

FGD(Scrubber)2

Activated Carbon

Injection3ESP4 SNCR5 SCR5 Bag-

house4

Oak Grove 1 800 Oak Grove 2 800 Sandow 4 557 Sandow 5 580 Martin Lake 1 750 Martin Lake 2 750 Martin Lake 3 750 Monticello 1 565 Monticello 2 565 Monticello 3 750 Big Brown 1 575 Big Brown 2 575

Currently installed

1 There is no assurance that the currently installed control equipment will satisfy the requirements under any change to applicable law or any future Environmental Protection Agency or Texas Commission on Environmental Quality regulations.

2 FGD refers to flue gas desulfurization systems that reduce SO2 emissions with co-benefits of other emissions reductions.3 Activated carbon injection systems reduce mercury emissions.4 ESP refers to electro-static precipitation systems. ESP and bag-house systems reduce particulate emissions with co-benefits of other emissions reductions. 5 SNCR refers to selective non-catalytic reduction systems. SCR refers to selective catalytic reduction systems. Both systems reduce NOx emissions.

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25

Page 27: Energy Future Holdings...1 2009 includes 1,443 GWh of new build generation (Sandow 5 and Oak Grove 1 units). 2 2010 includes 11,384 GWh of new build generation and 41 planned outage

1.41.7

US Average ERCOT

Strong customer value proposition• High brand recognition in Texas competitive areas• Competitive retail prices• Innovative products and services• Committed to low-income customer assistance• Improved customer care platform (SAP)

Balance Sheet• Combined TCEH risk management and liquidity efficient

capital structure Expected margins (5–10% net)

1.8

1.4

0.7

0.40.2 0.2

TXU Energy Reliant DirectEnergy

StreamEnergy

Ambit First Choice

Source: Latest available company filings, TXU Energy estimates.

Sources: NERC, ERCOT

1,7711,8621,9141,8501,982

2,1452,207

2,477

1,856

2002 2003 2004 2005 2006 2007 2008 2009 2010

Residential Customers / Meters (in millions)TXU Energy is the leading electricity retailer in the ERCOT market

Residential Customers (in thousands)TXU Energy has maintained market position since 2006

Projected Annual Demand GrowthCAGR (2008A-2016E)

Value Drivers

TXU Energy is the largest electricity retailer in Texas.

TXU Energy Business Summary

21%

26

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27

Mass Media in Market

TXU Energy Marketing Campaign

Acquisition - Direct Mail Mass Media – Television and Radio

Page 29: Energy Future Holdings...1 2009 includes 1,443 GWh of new build generation (Sandow 5 and Oak Grove 1 units). 2 2010 includes 11,384 GWh of new build generation and 41 planned outage

28

Page 30: Energy Future Holdings...1 2009 includes 1,443 GWh of new build generation (Sandow 5 and Oak Grove 1 units). 2 2010 includes 11,384 GWh of new build generation and 41 planned outage

1 Oncor currently estimates that the cost of the CREZ projects will be approximately $1.75 billion based on the original ERCOT estimate of $1.3 billion, and current estimates for the 3 default and 9 priority lines approved to date, the identification of additional costs not included in the original ERCOT estimate and Oncor’s preferred routes for the remaining five subsequent projects.

62 64 65 67 68 69 71 71 73 74

63

2008A 2009A 2010E 2011E 2012E 2013E 2014E 2015E 2016E 2017E 2018E

29

Supportive regulatory environment 10.25% authorized ROE Improved capital expenditure recovery

(transmission and AMS) Low operating costs per customer Low rates compared to peers Strong reliability and safety performance

Oncor Overview

Value Drivers

Business Profile

Oncor , which is approximately 80% owned by EFH Corp., is the largest transmission & distribution utility in Texas.

6th largest US transmission & distribution company

Low costs and high reliability No commodity position Accelerated recovery of investments in

advanced meters and transmission $1.75 billion1 CREZ investment

Sources: ERCOT, CDR Report, May 2010

Projected peak demand growth08-18E; GW

Actual and Estimated Capital Expenditures’08 - ’14E; $ millions

New Service

Advanced Metering

CREZ1

IT / Maintenance / General Plant

Transmission Grid Expansion

207 225 190 210 210 240

174 171 160 170 180 195166 164 160

337 258 260 200280

565

114 202590

530998 1,020

1,3601,250

950 1,000

140

280

09 10 11E 12E 13E 14E

Page 31: Energy Future Holdings...1 2009 includes 1,443 GWh of new build generation (Sandow 5 and Oak Grove 1 units). 2 2010 includes 11,384 GWh of new build generation and 41 planned outage

Oncor Key Performance Metrics

DART Performance (2004 – 2010)

0

0.5

1

1.5

2

2.5

2004 2005 2006 2007 2008 2009 2010

Acc

ide

nts

pe

r 2

00

,00

0 h

ou

rs

DART Performance

DART = Days Away Restricted or Transfer

30

SAIDI – Reliability (2004 – 2010)

020406080

100120

2004 2005 2006 2007 2008 2009 2010

SA

IDI P

erf

orm

an

ce

Non-Storm Reliability vs. Industry Top Quartile Scores

Oncor Reliab Scores Industry Quartile Scores

SAIDI = System Average Interruption Duration Index

Page 32: Energy Future Holdings...1 2009 includes 1,443 GWh of new build generation (Sandow 5 and Oak Grove 1 units). 2 2010 includes 11,384 GWh of new build generation and 41 planned outage

31

New Oncor Infrastructure

…to support the continued buildout of wind capacity in Texas

Oncor’s investment in CREZ will receive accelerated recovery,consistent with other transmission investment, mitigating regulatory delay.

Oncor expects to invest ~$1.75 billion1 on new CREZ-related transmission lines…

1 Oncor currently estimates that the cost of these projects will be approximately $1.75 billion based on the original ERCOT estimate of $1.3 billion, current estimates for the 3 default and 10priority lines approved to date, the identification of additional costs not included in the original ERCOT estimate and Oncor’s preferred routes for the remaining five subsequent projects.

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32

Oncor Demand-Side Management

Oncor is leading the largest advanced metering initiatives deployment in the US with a commitment to have 3.2 million meters installed by the end of 2012 (over 1.5 million meters have been installed through December 2010)

Oncor recovers its investment through a PUC1-approved surcharge

Customer monitoring of consumption “Smart” appliances Dynamic pricing

Oncor’s energy efficiency filing has been approved and is reflected in rates.

Oncor to deploy ~$690 million of capital for advanced metering initiatives…

…that will enable key DSM initiatives

1 Public Utility Commission of Texas.

Page 34: Energy Future Holdings...1 2009 includes 1,443 GWh of new build generation (Sandow 5 and Oak Grove 1 units). 2 2010 includes 11,384 GWh of new build generation and 41 planned outage

33

Oncor 2011 Rate Case

Filed on January 7, 2011Requested:

– $353 million increase– 11.25% ROE– 55% Debt / 45% Equity Capital Structure

Hearings Scheduled for May 2nd through 6th

ALJs Proposal for Decision expected June 30th

Jurisdictional Deadline is July 31, 2011

Page 35: Energy Future Holdings...1 2009 includes 1,443 GWh of new build generation (Sandow 5 and Oak Grove 1 units). 2 2010 includes 11,384 GWh of new build generation and 41 planned outage

Energy Future Holdings Corp.

34

Page 36: Energy Future Holdings...1 2009 includes 1,443 GWh of new build generation (Sandow 5 and Oak Grove 1 units). 2 2010 includes 11,384 GWh of new build generation and 41 planned outage

EFH$3.6B gross debt

Energy Future

Intermediate Holding~ $2.3B gross debt

Energy Future

Competitive Holdings~ $0.1B gross debt

~ $5.8B gross debt

TCEH~ $30.0B gross debt3

Approx. 80% Ownership

$41.8B total gross1 debt

$39.0B total net2 debt

Ring-fenced entity

Texas Transmission

Investment LLC

Approx. 20% Ownership

As of 12/31/10

$20.0B 1st Lien TLB due 2014

$1.1B 1st Lien Revolver due 2013

$1.3B Deposit LC

$1.6B 2nd Lien Notes @ 15% due 2021

$4.6B Unsecured LBO Notes @ 10.25/10.5% due 2015 and 2016

$1.4B Unsecured PCRBs/Other

$3.5B 1st Lien Notes @ 9.75/10% due in 2019/2020$0.9B Unsecured LBO Notes @ 10.875/11.25% due in 2017$1.4B Unsecured Legacy Notes @ 5.55 – 6.55% $0.1B Unsecured Other

$0.4B Revolver @ L+27.5 due 2013

$4.8B @ avg. 6.5%

$0.6B @ avg. 5.2%

351 Gross debt includes amount currently due.2 Total net debt equals total gross debt less total cash & equivalents and restricted cash of ~$2.8 billion.3 Excludes $96 million from A/R Securitization.

EFH Capital Structure Overview

Page 37: Energy Future Holdings...1 2009 includes 1,443 GWh of new build generation (Sandow 5 and Oak Grove 1 units). 2 2010 includes 11,384 GWh of new build generation and 41 planned outage

Progress in Balance Sheet Initiatives1

Results to Date

Net Debt Reduction $ 2B

Debt Maturity Extension $ 5B

Projected reduction in Interest Expense through 2014

$ 1B

EFH is focused on creating shareholder value through reducing debt and extending maturities

1 Since inception of liability management program in October 2009.

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Page 38: Energy Future Holdings...1 2009 includes 1,443 GWh of new build generation (Sandow 5 and Oak Grove 1 units). 2 2010 includes 11,384 GWh of new build generation and 41 planned outage

Appendix –Regulation G Reconciliations

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Page 39: Energy Future Holdings...1 2009 includes 1,443 GWh of new build generation (Sandow 5 and Oak Grove 1 units). 2 2010 includes 11,384 GWh of new build generation and 41 planned outage

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Table 1: EFH Corp. Net Debt Reconciliation1

As of December 31, 2010$ millions

Description 12/31/10

Short-term borrowings2 1,125

Long-term debt due currently 669

Long-term debt, less amounts due currently 34,226

Total debt 36,020

Less:

Cash and cash equivalents (1,534)

Restricted cash (1,168)

Net debt 33,318

1 GAAP basis which reflects deconsolidation of Oncor. Oncor’s total debt is ~$5.8 billion, added to EFH Corp.’s debt equals ~$41.8 billion.2 Excludes $96 million at TXU Receivables Company related to the accounts receivable securitization program.

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Table 2: TCEH Total Debt Reconciliation As of December 31, 2010$ millions

1 Excludes $96 million at TXU Receivables Company related to the accounts receivable securitization program.

Description 12/31/10

Short-term borrowings1 1,125

Long-term debt due currently 649

Long-term debt, less amounts due currently 28,199

Total debt 29,973

Page 41: Energy Future Holdings...1 2009 includes 1,443 GWh of new build generation (Sandow 5 and Oak Grove 1 units). 2 2010 includes 11,384 GWh of new build generation and 41 planned outage

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Table 3: Oncor Net Debt Reconciliation As of December 31, 2010 $ millions

Description 12/31/10

Short-term borrowings 377

Long-term debt due currently 113

Long-term debt, less amounts due currently 5,333

Total debt 5,823

Less:

Cash and cash equivalents (33)

Restricted cash (69)

Net debt 5,721

Page 42: Energy Future Holdings...1 2009 includes 1,443 GWh of new build generation (Sandow 5 and Oak Grove 1 units). 2 2010 includes 11,384 GWh of new build generation and 41 planned outage

41

EFH Corp. Investor Relations Contacts

Rima HyderDirector, Investor Relations214-812-5090 [email protected]

Charles NorvellAnalyst, Investor Relations214-812-8062 [email protected]


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