EFH Chair Evans Remarks at CERAWeek 2008

Energy Future Holdings (EFH) non-executive Chairman, Donald L. Evans will be speaking today at CERAWeek 2008. His remarks will be delivered as part of the panel: “The Changing Face of North American Power”.

His remarks, as prepared for delivery, follow.

Thank you all very much. I’m pleased to be on this panel with so many leaders…and proud to be at this conference with so many friends.

For years, CERA has done more than make pronouncements; it’s made a difference. And I especially want to salute my friend Dan Yergin whose work in The Prize and The Commanding Heights broke new ground and infused new ideas into the global discussions about our energy, our economy and our future.

Today’s CERA theme is the “Changing Face of North American Power.” Today in the global marketplace, demand is increasing, fuel prices are rising, and there is uncertainty over global climate change policy.

It’s only natural that North American Power will change to address these conditions. And one of the most important changes is a renewed emphasis on energy efficiency, which is not only good for the environment but essential to business and the economy.

Today, I am privileged to speak to you on behalf of the new Board of Directors of Energy Future Holdings, formerly TXU Corporation.

I chose to be a part of this company at this time because it makes this commitment: we will provide leadership and responsibility to the energy industry. Texas has always been a leader in energy in the past. EFH is ready to make sure it stays one in the future.

Luminant, Oncor and TXU Energy–the businesses that make up Energy Future Holdings (EFH) — are bringing revolutionary changes at every level of our industry — from generation, to distribution and transmission, to providing power to Texas.

We are making essential steps to produce cleaner electric power in a pioneering way. And we are promoting conservation while we do it.

Simply put, we are making history by building the future.

The energy industry has always been defined by change. The story of energy in America is a story of progress. And in Texas, this journey of innovation, ingenuity and improvement has led to not only new products, but better service, more choices and a greater quality of life for Texans.

At EFH, we believe in choice. We want to give consumers more tools to control their energy use.

We know that creating an energy-efficient future will be a partnership between our company and our consumers — a shared responsibility. We also know that energy efficiency works.

Ladies and gentlemen, I’m going to tell you something you’ve probably never heard from a Texas electric company executive: We want more Texans to use less electricity.

Energy efficiency makes sense for business and saves dollars for consumers. If we can partner with customers to better manage their energy use and lower their power bill, then we will win that customer’s trust–and that is good business.

We envision giving consumers the tools, products and services they need to better manage their energy use and lower their bill.

Across TXU Energy and Oncor, we are investing $400 million over five years in new tools for customers to manage their own electricity usage:

TXU Energy is partnering with technology vendors to develop state-of-the-art home energy management products. To give you an example of those products, TXU Energy has already launched a Power Monitor to help customers understand how much electricity they are using, set a goal and take control of how much they spend each month. Tools under development could automatically adjust energy use in response to critical demand peaks.

Oncor is implementing a SmartGrid, which includes smart switches, a data transfer network & advanced digital metering in homes and businesses across its system to provide the information platform needed to enable energy efficiency products and services. Approximately 600,000 digital meters have been installed so far.

Other efforts at Oncor include a low-income weatherization program to help install energy efficiency measures for families in need, and an ENERGY STAR Homes Program to encourage homebuilders to construct houses that are 15% more energy efficient than the Texas building code.

And this is just the beginning. Each of our companies is working hard to find new ways to empower consumers and promote conservation.

Luminant, the power generation subsidiary of EFH, is the largest purchaser of renewable energy in Texas — and the fifth-largest in the United States. And we plan to maintain our status as Texas’ number one purchaser of wind energy.

We are exploring ways to give our customers the information they need to make choices about how much energy they want.

We want to empower our customers to know what they are using.

We want to empower our customers to know when they are using it.

And we want to empower our customers to know how to take control of their energy use and use less energy.

We at Energy Future Holdings are committed to delivering our customers the best product and the best service at the best price.

The people depend on those of us in the power industry. Texas consumers demand and deserve power that is affordable, power that is reliable and power that is clean.

We are proud to serve customers in a competitive market like Texas. We are the largest electricity market in the US. And in Texas competition is working.

I salute those Texas lawmakers who helped lay the foundation for today’s progress by deregulating the Texas market. We’ve been building on that foundation these past few years. And look at some of the results.

Texans used to have only one or two choices but now can choose from many distinct offers from dozens of retail providers;

Around $20 billion has been invested in new electric generation since 1995 – the year our wholesale market was deregulated;

Renewable capacity has quadrupled since 1999, leading to Texas becoming the largest producer of wind generation in the country.

This is proof that competition works–it works by creating a climate of innovation where companies find better ways of doing business.

It is in this competitive environment that Energy Future Holdings and its operating companies are taking steps now to take even better care of our customers…all of our customers. We have:

1. Cut retail prices 15 percent for approximately one million retail customers with price protection through 2008;

2. Doubled the size of our investment in conservation and energy efficiency;

3. Created a $150 million, five-year commitment to low-income customer assistance;

4. Reduced 11 previously planned new coal units to three.

5. We are voluntarily reducing key emissions from the coal-fueled power generation fleet to 20 percent below 2005 levels — even as we are adding 2,200 MW of new coal-fired generation

We have heard our customers. We know they want an energy company that both provides power and protects the environment.

That’s why we are proud of two unique commitments we’ve made: we are actively engaged with the Environmental Defense Fund and National Resources Defense Council in an ongoing dialogue, and we’re creating a sustainable energy advisory board to give both environmental and business groups a voice at EFH.

Dan Yergin remarked last year that the “United States is twice as energy efficient as it was in the 1970s. Why not double that again?”

At Energy Future Holdings, we believe we can help meet and exceed that goal…one home at time, one customer at a time.

We know that energy efficiency alone cannot meet the supply and demand challenge; but it is an important step in the right direction.

We offer no magic formula, but rather a comprehensive approach that impacts the way we do business at every level–from how Luminant generates power, to how Oncor delivers it, to how TXU Energy provides tailored solutions for retail customers.

We are committed to energy efficiency leadership.

We believe we can promote energy efficiency for our consumers. And we are.

We believe we can empower consumers. And we will.

And we believe we can help more Texans use less electricity. And we must.

That is our mission…and this is our moment. Thank you very much.