URBAN TREE FORESTRY
In 2002, TXU and the Dallas Trees and Parks Foundation launched a highly successful, award-winning urban forestry program. The TXU Urban Tree Farm is the nation's largest known nonprofit urban tree farm. It expressly benefits the urban areas of North Texas with trees for planting at local schoolyards, along highways and in parks. The National Tree Trust projects the first year's trees alone will sequester nearly 40 tons of carbon dioxide over their 80-year life span.

The TXU Urban Tree Farm is also a sustainable program. We provided the seed money to create it, and revenues from tree sales to community organizations will fund subsequent years' trees. Some 350 employees helped kick off the project, making the event the largest single-day, single-cause volunteer effort in company history.

The Texas Forest Service, Texas Urban Forestry Council and the Texas Chapter of the International Society of

Arboriculture honored TXU with their 2002 Community Forest Award for the program and its role in developing and preserving the state's urban forests.

RECOGNITION FOR ENVIRONMENTAL PRACTICES
The 2002 Innovest Strategic Advisors report ranked TXU as one of the best energy companies in the country for its commitment to the environment and stringent operational practices. TXU received an "A" and was ranked fourth nationally.

The report states, "TXU has below average risk, above average environmental management capacity and above average engagement in environmentally favorable business."

OTHER AWARDS
TXU has received numerous awards and recognition from a variety of regulatory, conservation, municipal, and other organizations over the past years. In 2002, TXU Mining was recognized by three separate organizations for exemplary mine