TXU Electric & Gas and AEP announce major wind power project

DALLAS, Texas & COLUMBUS, Ohio — TXU Electric & Gas, a subsidiary of TXU (NYSE: TXU), and American Electric Power (NYSE: AEP) jointly announced today a new 130-megawatt wind power project.

Including this contract, TXU has contracts to buy a total of 361.5 MW from various wind power projects.

“TXU Electric & Gas is leading the national effort in supporting wind power,” said Steve Philley, who directed this project while vice president of TXU Electric Energy Supply and is now chief executive of TXU Australia. “Under the Texas deregulation law, this places TXU Electric & Gas at almost twice the amount of renewable energy initially required under the new State of Texas legislative mandates. The Trent Mesa Project is another indication of the clean air commitment of TXU Electric & Gas.

TXU Electric & Gas will buy power produced by the 130-MW Trent Mesa Project in West Texas for at least 10 years. AEP will develop, own, operate and maintain the project. AEP will also be involved in the project’s construction. Financial terms of the contract were not disclosed.

AEP plans to begin construction of the 87 wind turbines in November on a West Texas site just south of Interstate 20 about 24 miles west of Abilene. AEP expects more than 515 million kWh of electricity will be generated annually at the site, enough to supply about 30,000 homes for TXU Electric & Gas customers.

TXU Electric & Gas customers should begin receiving energy from the project after its completion in August 2001.

The Trent Mesa Project is the fourth major wind power agreement reached by TXU Electric & Gas. Including this agreement, TXU Electric & Gas has contracted to purchase more than 1.3 billion kWh of renewable energy annually from several wind farms in West Texas. TXU Electric & Gas projects it will have enough wind capacity from these agreements to fuel approximately 75,000 homes.

The purchase complements TXU’s wind power goals. “We began our commitment to wind power in the early 1990s, sending out requests for proposals to develop wind farms,” Philley said. “In just a few months time, we have announced three major agreements that firmly establish wind power as a viable energy option, and we are pleased to add this agreement to our energy portfolio.”

“We believe that wind power has become more commercially viable in today’s market. We see exciting opportunities in North America as natural gas prices continue to remain volatile. We are very pleased to work with TXU Electric & Gas on this project,” said Dwayne L. Hart, AEP Energy Services Vice President of Business Development and Strategy. “This project adds an exciting new opportunity to AEP’s generation development segment.”

AEP has established a special web site for the Trent Mesa Project (

American Electric Power is a multinational energy company based in Columbus, Ohio. AEP owns and operates more than 38,000 MW of generating capacity, making it one of America

TXU is one of the largest investor-owned energy services companies in the world with more than $40 billion in assets. With headquarters in Dallas, TXU is involved with electric and natural gas services, merchant trading, energy marketing, telecommunications and other energy-related services.