POLLUTION PREVENTION EFFORTS
TXU serves on the Texas Pollution Prevention Advisory Committee, which advises the Texas Commission on Environmental Quality on the implementation of the state Waste Reduction Policy Act. The committee, whose members include the regulatory agency, industry and environmental non-governmental organizations, helps encourage pollution prevention, waste reduction and recycling efforts throughout the state.

PARTNERING FOR SUSTAINABILITY
TXU partners with other leading companies by participating in the United States Business Council for Sustainable Development. Among other activities performed during 2002, this organization, formerly known as the Business Council for Sustainable Development - Gulf of Mexico, conducted a workshop where leaders from industry, academia and government shared experiences about how to incorporate principles of sustainable development into business practices.

REDUCTION IN HAZARDOUS WASTE GENERATION
In 2002, TXU generated 4.91 tons of hazardous waste, representing a reduction of 1.1 tons from the previous year. As an example, hazardous waste can include sandblasting material, paint-thinners and lab chemicals. For comparison, in 1991 company operations generated a total of more than

12,300 tons of hazardous waste. Since that time, our efforts have reduced the generation of hazardous waste by more than 99.9 percent. It is important to note that the company properly disposes of all hazardous waste in accordance with all applicable laws and regulations.

ELECTRIC & GAS TRANSMISSION LINE PLANNING
When determining potential electric and gas transmission line routes, we evaluate environmental, community and business issues associated with various options. For environmental issues, we review projects for potential impacts to threatened and/or endangered species, migratory birds, cultural resources and wetland/waterbody crossings. We determine the best option as well as any environmental mitigation or compensation that may be necessary for a specific route.

EMPLOYEE TRANSPORTATION
As one of the largest purchasers of employee bus/train passes in the Dallas/Fort Worth Metroplex, the company subsidizes these passes for employees. Additionally, the company financially supports our employee carpool program, which has more than 1,000 participants. Together, these efforts reduce the number of vehicles - and pollution - on the road and help TXU and our employees make a difference for cleaner air.