A Message From Our
Chairman
Statement of
Environmental Principles
Compliance
Air
Land
Water
Minimization of Impacts
Comparison of Air Emission
Rates
Climate Change
Renewable Energy
Stakeholder Dialogue
Environmental Management
Systems
Public Reporting
Research
2002 Special Recognition
TXU Australia
TXU Sources of Energy


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•   TXU is lowering its emissions of mercury even more due to continued use of sub-bituminous (western) coal. While this type of coal has lower mercury concentrations than lignite, it involves higher costs since it must also be transported by train from other states, hundreds of miles away, for use in Texas.
•   TXU is participating with the EPA, industry groups and university research institutions to identify additional control technologies. We will continue to support and participate in the ongoing studies of mercury emissions from power plants.

NATIONAL MERCURY REDUCTIONS
The EPA is developing rules to regulate the level of mercury captured from power plants and is currently scheduled to propose new control regulations by the end of 2003. The company has worked cooperatively with the EPA in the past on this issue and will continue to do so in the future. Specifically, we are cooperating with the EPA as it determines if further mercury reductions from power plants are needed and, if so, how we should achieve those reductions. This effort is complicated by the fact that there is no commercially proven technology to further capture mercury emissions from Texas lignite power plants. While research is underway on this issue, possible solutions – if and when proven – will take time and money to implement.

FUTURE AIR COMPLIANCE ISSUES – NEW SOURCE REVIEW
Over the years, TXU has worked closely with the Texas Commission on Environmental Quality (and its predecessor agencies) as well as the Environmental Protection Agency (EPA) to ensure that our power plant activities are consistent with the requirements of the Clean Air Act. As a result, we believe that all of our facilities are in full compliance with EPA New Source Review requirements.

In December 2002, the EPA proposed a new rule related to routine maintenance, repair and replacement under the New Source Review air permitting program. This rule is currently in the regulatory process, and we continue to evaluate potential impacts as the rule evolves.
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