OVERVIEW

The Public Utility Commission of Texas (PUCT or Commission) issues this Request for Information (RFI) to solicit information that may assist the agency in determining whether and how to solicit proposals for consulting services. On February 26, 2007, Kohlberg Kravis Roberts & Co. and Texas Pacific Group (KKR et al) announced it would acquire TXU Corp. The PUCT is required to determine whether the proposed acquisition is in the public interest. See Texas Utilities Code 14.101 et seq.

The PUCT has issued this Request for Information (RFI) to identify potential consultants and costs associated with a review and analysis of the acquisition. This RFI is not a solicitation document; nor does it constitute an intention by the PUCT to issue a solicitation in the future. Estimated pricing information is requested for planning and budgetary purposes only. The PUCT is not responsible for any costs incurred by parties submitting responses to this RFI.

INFORMATION REQUESTED

1. Tasks

Respondents should submit information concerning their ability to undertake the following tasks. Responses should correspond to the individual tasks.

A. Review and evaluate the terms of the proposed acquisition to determine its effect on TXU Electric Delivery, which is the regulated transmission and distribution utility. The review should include, but is not limited to, effects on the health and safety of employees and retail customers, the potential transfer of jobs out of state, and service quality.

B. Review and evaluate the terms of the proposed acquisition and the organization of the resulting company to determine whether they create adequate separation of TXU Electric Delivery from the retail electric provider (TXU Energy) and the power generation company (TXU Power).

C. Review and evaluate the terms of the proposed acquisition to determine whether and how it would affect TXU Electric Delivery's financial and managerial resources to provide continuous and adequate service to customers.

D. Review and evaluate the terms of the proposed acquisition to determine whether the price reasonably reflects the value of the property, facilities, securities, and all other assets to be disposed of or transferred.

E. Review and evaluate the proposed acquisition to determine whether the transaction would affect TXU Energy's:

- financial and technical resources to provide continuous and adequate service to customers;

- managerial and technical ability to supply electricity at retail in accordance with customer contracts; or

- resources needed to meet the customer protection requirements of PURA.

F. Review and evaluate the proposed acquisition to determine whether TXU Power will have the capability to observe all scheduling, operating, planning, reliability, and settlement policies, rules, guidelines and procedures established by the Electric Reliability Council of Texas (ERCOT).

The Public Utility Regulatory Act can be found at http://tlo2.tlc.state.tx.us/statutes/ut.toc.htm

Information on ERCOT can be found at http://www.ercot.com/

2. Estimated Pricing

Provide estimated pricing for the services described above, including the basis for that pricing, e.g., fixed fee, fixed fee plus expenses, hourly rates, etc.

3. Summary of Organization and Experience Provide a brief (no more than 2 pages) summary of your organization and your previous experience with the merger, acquisition, sale or transfer of large utilities and other relevant qualifications.

CONFIDENTIALITY/PUBLIC INFORMATION ACT

All responses and their contents submitted to the PUCT in response to this RFI become the property of the State of Texas, will not be returned to the submitting parties, and are subject to the Public Information Act, Chapter 552, Texas Government Code (the "Act"). In no event shall the State of Texas, the PUCT, or any of their agents, representatives, consultants, directors, officers, or employees be liable to a respondent for the disclosure of all or a portion of the information submitted in response to this RFI.

GENERAL INFORMATION

RFI Issue Date: Wed., April 4, 2007

RFI Closing Date: Fri., April 20, 2007

Point of Contact:

Paula Mueller

Deputy Executive Director

Public Utility Commission of Texas

P.O. Box 13326

Austin, TX 78711-3326

paula.mueller@puc.state.tx.us

Submission Instructions:

Interested parties must submit their responses to this RFI to the PUCT point of contact above. Responses must arrive at the PUCT before 5:00 p.m. on Friday, April 20, 2007. Parties may submit responses by mail or e-mail.

TRD-200701301

Adriana A. Gonzales

Rules Coordinator

Public Utility Commission of Texas

Filed: April 4, 2007