Press Release:

TXU ELECTRIC & GAS ANNOUNCES NEW WIND POWER AGREEMENT

DALLAS (Sept. 12, 2000) -- TXU Electric & Gas announced today an agreement to purchase renewable energy from a soon-to-be constructed 82.5-megawatt wind farm in West Texas. TXU Electric & Gas's share of the project will be 31.5 megawatts. This is TXU Electric & Gas's third major purchase of wind power energy.

National Wind Power Limited (NWP) and Orion Energy LLC are developing the Indian Mesa Wind Farm in Pecos County, which will begin with the installation of an initial 82.5-megawatts of Vestas turbines. The land where the wind farm will be located is owned by the University of Texas System and local land owners. Financial terms of the contract were not disclosed.

Construction is expected to begin in mid-September, and TXU consumers should begin receiving electricity from the project during the second quarter of 2001. The wind farm will consist of 125 wind turbines. The three-bladed wind turbines will be erected on 165-foot tall tubular steel towers, and each blade will be approximately 75-feet long.

"TXU Electric & Gas is pleased to add the Indian Mesa Wind Farm to our growing renewable energy portfolio. This project further demonstrates our commitment as a renewable energy leader," said Steve Philley, TXU Electric Energy Supply vice president.

Reid Buckley, Orion Energy vice president, said, "The Indian Mesa Wind Farm is a winner on all fronts. It generates royalties for the University of Texas System and local ranchers, creates jobs in Pecos County, produces environmentally friendly energy, and benefits the Lower Colorado River Authority and TXU customers by providing low-cost, wind-generated electricity not subject to the risks of rising fuel prices."

David Butterworth, head of international development at National Wind Power, said, "We are very pleased to announce the start of construction for our third U.S. project and our second Texas project. The first phase of Indian Mesa at 82.5 megawatts is our largest project to date, but like our Delaware Mountain project has scope for expansion. It has been a pleasure to work again with the LCRA and with TXU to help meet the renewable energy requirements of Texas, a market that is driven by both legislative requirements and customer demand. We look forward to expanding these projects in the future and to completing the development of others in the region to further establish our commitment to this exciting market."

NWP is headquartered near London, England, and is a subsidiary of Innogy plc, the U.K. energy business of National Power PLC. Orion Energy is located in Oakland, Calif. NWP is the largest developer, owner and operator of wind farms in the United Kingdom. NWP jointly develops wind energy facilities in the Unites States with Orion Energy.

TXU is a growing wind power consumer. In July, TXU announced a contract to purchase renewable energy from a 160-megawatt wind farm in West Texas. TXU also purchases power from a 40-megawatt wind farm near Big Spring.

TXU (NYSE: 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 a multinational leader in electric and natural gas services, merchant trading, energy marketing, telecommunications and other energy-related services. TXU delivers energy to 11 million customers primarily in Texas, the United Kingdom, continental Europe and Australia.