ML011730440

Part 2 of Txu Electric Business Separation Plan, Exhibitt BDW-3

ML011730440
Person / Time
Site:	Comanche Peak
Issue date:	06/19/2001
From:	TXU Electric
To:	Office of Nuclear Reactor Regulation
References
-RFPFR
Download: ML011730440 (152)

Text

EXHIBIT BDW-3 PAGE 1 OF 2

• TXU TXU Energy Services PROJECT NAME ANYTOWN, TX PROJECT DETAILS Project Type: XXXXXXXXXXXXXXX Project Starn Date: XXXXXXXXXXX Capital Investment: SXXXXXXXXX Projected Net Savings Over Term of Contract: XXXXXXXXXXXXX PROJECT DESCRIPTION Lorem ijsum dolor sit amet.consectetuer adipiscing elir, sed diam nonummv nibh euismod tincidunt ut laoreet dolore magna aliquam erat volutpat. Ut wisi enim ad minim veniam, quis nostrud exerci tation ullamcorper suscipit lobortis nisl ut aliquip ex ea commoclo consequat. Duis autem vel eum iriure dolor in hendrerit in vulputate velit esse molestie consequat, vel ilium dolore eu feugiat nulla facilisis at veto eros et accumsan et iusto odio dignissim qui blandit praesent.

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. Lorem ipsum dolor sit amet, consectetuer adipiscing elit, sed diam nonummy nibh euismod TXU Energy Services is not the same company as TXU Electric &Gas

ind is not reaulated bv the Public Utility Commission ot Texas. and

,ou no not have to ouv TXLU Energy services products to continue to ieceive ciuality regulated services trom TXU Electric &Gas.

EXHIBIT BDW-3 PAGE 2 OF 2

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'Because this Pioiect is currently in progressthe Scope or Work is subject to cnanae.

EXHIBIT BDW-4 PAGE 1 OF I John Doe Account Representative Marketing TXU Energy Services 1601 Bryan Street, Suite 000-000 Dallas, TX 75201 Tel: 214 812 0000 Fax: 214 812 1111 sample@txu.com NAV-0' TXU Energy Services is an unregulated affiliate of TXU Electric & Gas. (see back)

TXU Energy Services is not the same company as TXU Electric &Gas and is not regulated by the Public Utility Commission of Texas, and you do not have to buy TXU Energy Services' products to continue to receive quality regulated services from TXU Electric &Gas.

EXHIBIT BDW-5 PAGE 1 OF 3 STATE OF TEXAS §

§ COUNTY OF DALLAS § AFFIDAVIT OF COMMITMENT TO COMPLY WITH INTERIM INTERNAL STANDARDS OF CONDUCT CONSISTENT WITH PURA §39.157(d) AND P.U.C. SUBSTANTIVE RULE 25.272 BEFORE ME, the undersigned authority, on this day personally appeared David W.

Biegler, who, having been placed under oath by me, did depose as follows:

"My name is David W. Biegler. I am of legal age and a resident of the State of Texas. I am the president of the U.S. Foundation Business Group of Texas Utilities Company (TXU Corp). As such I am responsible for the day-to-day operations of the regulated subsidiaries of TXU Corp.

"I am familiar with the substantive requirements of the Public Utility Commission's Substantive Rule 25.272 as it relates to implementation of Senate Bill 7 Act of May 21, 1999, Chapter 405, 1999 Texas Session Law Service 2543, 2570 (Vernon), codified as an amendment to the Public Utility Code Annotated §39.157. Consistent with those substantive requirements, TXU Corp has adopted internal standards of conduct to govern transactions between the utility functions of the regulated electric utility and its competitive affiliates to avoid potential market power abuses and cross-subsidization between regulated and competitive activities, both during the transition to and after the start of retail competition.

"On behalf of TXU Corp and its regulated subsidiaries, TXU Corp is committed to, and has implemented, its interim internal standards of conduct, as filed with the Business Separation Plan filing package dated January 10, 2000.

Further Affiant Sayeth Not. .

David W. Biegler, Affiant SUBSCRIBED AND SWORN TO BEFORE ME by the said David W. Biegler this ._'-//A day of January, 2000.

• ."P.-v*l ... uk amnn W -- Notary NoayPb4)Public, State tteo of Texas ea

EXHIBIT BDW-5 PAGE 2 OF 3 STATE OF TEXAS §

§ COUNTY OF DALLAS § AFFIDAVIT OF COMMITMENT TO COMPLY WITH INTERIM INTERNAL STANDARDS OF CONDUCT CONSISTENT WITH PURA §39.157(d) AND P.U.C. SUBSTANTIVE RULE 25.272 BEFORE ME, the undersigned authority, on this day personally appeared Brian N.

Dickie who, having been placed under oath by me, did depose as follows:

"My name is Brian N. Dickie. I am of legal age and a resident of the State of Texas. I am the president of the Emerging Business Group of Texas Utilities Company (TXU Corp). As such I am responsible for the domestic non-regulated subsidiaries of TXU Corp.

"I am familiar with the substantive requirements of the Public Utility Commission's Substantive Rule 25.272 as it relates to implementation of Senate Bill 7 Act of May 21, 1999, Chapter 405, 1999 Texas Session Law Service 2543, 2570 (Vernon), codified as an amendment to the Public Utility Code Annotated §39.157. Consistent with those substantive requirements, TXU Corp has adopted internal standards of conduct to govern transactions between the utility functions of the regulated electric utility and its competitive affiliates to avoid potential market power abuses and cross-subsidization between regulated and competitive activities, both during the transition to and after the start of retail competition.

"On behalf of TXU Corp and its regulated subsidiaries, TXU Corp is committed to, and has implemented, its interim internal standards of conduct, as filed with the Business Separation Plan filing package dated January 10, 2000.

Further Affiant Sayeth Not.

Brian N. Dickie, Affiant SUBSCRIBED AND SWORN TO BEFORE ME by the said Brian N. Dickie this - day of January, 2000. . _

---

Notary Public, State of Texas TERI,SMA.RT IIfYTMy COMMIWON EMRB November 13. 2000~

EXHIBIT BDW-5 PAGE 3 OF 3 STATE OF TEXAS §

§ COUNTY OF DALLAS § AFFIDAVIT OF COMMITMENT TO COMPLY WITH INTERIM INTERNAL STANDARDS OF CONDUCT CONSISTENT WITH PURA §39.157(d) AND P.U.C. SUBSTANTIVE RULE 25.272 BEFORE ME, the undersigned authority, on this day personally appeared Peter B.

Tinkham who, having been placed under oath by me, did depose as follows:

"My name is Peter B. Tinkham. I am of legal age and a resident of the State of Texas. I am the Compliance Officer for TXU Corp. As such I am responsible for development, implementation, enforcement, and maintenance of TXU Corp's Corporate Compliance Program of which TXU Corp's internal standards of conduct are a part.

"I am familiar with the substantive requirements of the Public Utility Commission's Substantive Rule 25.272 as it relates to implementation of Senate Bill 7 Act of May 21, 1999, Chapter 405, 1999 Texas Session Law Service 2543, 2570 (Vernon), codified as an amendment to the Public Utility Code Annotated §39.157. Consistent with those substantive requirements, TXU Corp has adopted internal standards of conduct to govern transactions between the utility functions of the regulated electric utility and its competitive affiliates to avoid potential market power abuses and cross-subsidization between regulated and competitive activities, both during the transition to and after the start of retail competition.

"On behalf of TXU Corp and its regulated subsidiaries, TXU Corp is committed to, and has implemented, its interim internal standards of conduct, as filed with the Business Separation Plan filing package dated January 10, 2000.

Further Affiant Sayeth Not.

Peter B. Tinkham, Affiant SUBSCRIBED AND SWORN TO BEFORE ME by the said Peter B. Tinkham this (0 ý-"day of January, 2000.

j l TERI SMA Notary Public, State of Texas COAMI.O EIR

• J41Novemrber13, 2000

EXHIBIT BDW-6 PAGE 1 OF 1 CODE OF CONDUCT TEXAS UTILITIES COMPANY EMPLOYEE ACKNOWLEDGMENT AND CERTIFICATION OF COMPLIANCE ANNUAL UPDATE 1999 I have read and understand the Texas Utilities Company Code of Conduct. I understand that the Code of Conduct. along with the requirements of the law, are a part of the policies and procedures that guide me in my daily work. I agree to abide by and support the standards and policies summarized in the Code of Conduct and to abide by and support all legal and regulatory requirements applicable to my job. I understand that if I have questions concerning the meaning or application of the Code of Conduct or relevant legal and regulatory requirements I should discuss these with my manager and/or supervisor and, if necessary, with the Compliance Officer, a member of the Compliance Committee, the Vice President. Internal Audit, or the Vice President, Human Resources.

I am not aware of any aspects of my personal conduct or the operations I direct or perform that are not in accordance with the Code of Conduct or relevant legal and regulatory requirements. I have advised my manager and/or supervisor, the Compliance Officer, a member of the Compliance Committee, the Vice President, Internal Audit, or the Corporate Security Manager, or called the Company hotline to report all activities that I suspect may not be in compliance with the Code of Conduct or relevant legal and regulatory requirements.

Employee Data Created: 11122199 Status: Reviewed Signature Type: Manual Date Signed:

Employee Name: Employee SSN: Employee EMail:

INDEX TO THE DIRECT TESTIMONY OF R. KEITH PRUETT, WITNESS FOR TXU ELECTRIC COMPANY I. INTRO D UCTIO N.................................................................................... 3 II. PURPOSE OF TESTIMONY .................................................................. 4 Ill. DESCRIPTION OF TXU BUSINESS SERVICES' EXISTING ACCOUNTING SYSTEM ...................................................................... 5 IV. MODIFICATIONS TO TXU ELECTRIC'S ACCOUNTING SYSTEMS THAT WILL BE REQUIRED FOR COMPLIANCE WITH SECTION 39.051 OF THE UTILITIES CODE ....................................................... 10 V. ASSIGNMENT OF COSTS TO TXU ELECTRIC'S BUSINESS FU NCT IO NS ........................................................................................ 13 VI. ACCOUNTING FOR TRANSACTIONS BETWEEN TXU ELECTRIC AND ITS AFFILIATES ......................................................................... 16 VII. COST ASSIGNMENT METHODOLOGY FOR SHARED FACILITIES AND EQ UIPM ENT .............................................................................. 17 VIII. ASSET VALUATION METHODOLOGY ............................................... 18 V III. C O NC LUSIO N......................................................................... 18 X. A FFIDAV IT ........................................................................................... 21 IX. EXHIBITS EXHIBIT RKP-1 TXU ELECTRIC COMPANY Proposed Chart of Accounts Transmission Division ......................... 22 EXHIBIT RKP-2 TXU ELECTRIC COMPANY Proposed Chart of Accounts Distribution Division ............................... 38 EXHIBIT RKP-3 Proposed Chart of Accounts Power Generation Com pany ................................................................ 57 EXHIBIT RPK-4 TXU ELECTRIC COMPANY Department ID Num bers ............................................................... 77 Pruett - Direct - TXU Electric

- 1 - Business Separation Plan ,

EXHIBIT RKP-5 TXU ELECTRIC COMPANY Functionalization of Facilities By Percentage Based on Square Footage Utilization ................................................... 107 Pruett - Direct - TXU Electric Business Separation Plan

1 DIRECT TESTIMONY OF R. KEITH PRUETT 2 I. INTRODUCTION 3 Q. PLEASE STATE YOUR NAME, BUSINESS ADDRESS, AND CURRENT 4 EMPLOYMENT POSITION.

5 A. My name is Keith Pruett. My business address is 1601 Bryan Street, 6 Dallas, Texas, 75201. I am the Corporate Accounting Manager for 7 Electric Utility Services at TXU Business Services, the service company 8 affiliate of TXU Electric Company ('TXU Electric").

9 Q. PLEASE DESCRIBE YOUR EDUCATIONAL BACKGROUND AND 10 PREVIOUS EXPERIENCE IN THE TXU SYSTEM.

11 A. I received a Bachelor of Business Administration degree in accounting 12 from the University of Texas at Arlington in 1982.

13 I began my service in the Texas Utilities System at Dallas Power &

14 Light Company ("DP&L") in September 1974, where I served in various 15 accounting positions. I served as Construction Accounting Supervisor for 16 DP&L from January 1985 through December 1986. During this period, I 17 was a member of a team that established the Capital Maintenance policy 18 for the Texas Utilities System. I transferred to Texas Utilities Electric 19 Company (subsequently TXU Electric) as Plant Accounting Supervisor in 20 January 1987. In January 1993, I transferred to Texas Utilities Services 21 Inc. (subsequently TXU Business Services) and was appointed 22 Transmission and Distribution Plant Accounting Manager, where I assisted 23 in the development of the TXU System Companies fixed asset accounting 24 system. In 1994, I was appointed Property Systems and Accounting 25 Policies and Procedures Manager. In 1995, I was appointed Accounts 26 Payable Manager. During 1995, I was a member of a team that 27 implemented the financial reporting process for TXU Electric's newly 28 created functional organizations. Part of this team's responsibility was the 29 analysis and direct assignment of costs to TXU Electric's functional 30 organizations (generation, transmission, and distribution). In 1996, I was Pruett - Direct - TXU Electric Business Separation Plan

1 appointed Accounting Process Improvements Project Manager. In 2 October 1997, I was appointed to my current position of Corporate 3 Accounting Manager for Electric Utility Services.

4 Q. ARE YOU A MEMBER OF ANY PROFESSIONAL ORGANIZATIONS?

5 A. Yes. In 1988, I was licensed as a Certified Public Accountant in the State 6 of Texas. I am a member of the Texas Society of Certified Public 7 Accountants.

8 Q. HAVE YOU PREVIOUSLY TESTIFIED BEFORE THE PUBLIC UTILITY 9 COMMISSION OF TEXAS ("COMMISSION")?

10 A. Yes. I testified before this Commission in Docket Nos. 15638 and 21527.

11 II. PURPOSE OF TESTIMONY 12 Q. PLEASE DESCRIBE THE PURPOSE OF YOUR TESTIMONY IN THIS 13 PROCEEDING.

14 A. The purpose of my testimony is to:

15

• Describe the existing accounting system TXU Electric utilizes to record 16 and report costs and its chart of accounts and accounting coding 17 system in order to show that records are sufficient and maintained in a 18 manner to allow for Commission or third-party audits; 19

• Discuss TXU Electric's external and internal audit system and 20 frequency of audits; 21 0 Discuss changes needed to TXU Electric's accounting system to be in 22 compliance with Section 39.051 of the Utilities Code; 23 a Discuss accounting for services provided by TXU Electric to its 24 affiliates in accordance with Substantive Rule 25.272(e);

25 0 Discuss how TXU Electric's costs will be assigned to the appropriate 26 business function; 27

• Discuss cost allocation methods for shared facilities and equipment; 28 and; 29 0 Discuss the method TXU Electric will utilize in valuation of its assets 30 and liabilities during the initial business separation process.

Pruett - Direct - TXU Electric

.4 - Business Separation Plan

1 111. DESCRIPTION OF TXU BUSINESS SERVICES' 2 EXISTING ACCOUNTING SYSTEM 3 Q. PLEASE DISCUSS YOUR DUTIES AND RESPONSIBILITIES AS TXU 4 BUSINESS SERVICES CORPORATE ACCOUNTING MANAGER FOR 5 ELECTRIC UTILITY SERVICES.

6 A. I am responsible for maintaining the financial books and records and 7 managing the corporate accounting functions for TXU Electric and TXU 8 SESCO Company ("TXU SESCO"). The corporate accounting activities 9 include compiling, processing, reporting, and analyzing financial 10 information to satisfy the requirements of internal management, external 11 independent auditors, and regulatory agencies. My responsibilities 12 include ensuring that: 1)transactions are recorded in accordance with 13 Generally Accepted Accounting Principles ("GAAP"); 2) economic events 14 are accounted for accurately and in a timely manner; and 3) financial 15 transactions are recorded using consistent accounting policies and 16 procedures and maintained in accordance with the Federal Energy 17 Regulatory Commission's ("FERC") Uniform System of Accounts. In 18 addition, my organization ensures that TXU Electric's assets and liabilities 19 are properly classified, recorded, and reconciled, and that financial 20 information is maintained and reported accurately.

21 Q. PLEASE DESCRIBE HOW THE EXISTING BOOKS AND RECORDS OF 22 TXU ELECTRIC AND ITS AFFILIATES ARE MAINTAINED AND 23 UTILIZED IN THE RECORDING AND TRACKING OF ITS COSTS.

24 A. The TXU Business Services accounting department is a shared support 25 services organization satisfying the requirements of Utilities Code Section 26 39.157(d) and (g). The accounting organization utilizes highly integrated 27 computerized business systems to efficiently maintain organized records 28 of financial transactions. TXU Electric's functionalized (Lie., transmission, 29 distribution, and generation) financial transactions in the regular course of 30 business are processed, recorded, and maintained within the integrated Pruett - Direct - TXU Electric Business Separation Plan

1 TXU Business Services computerized accounting system. Records of 2 transactions are created and entered into the system at or near the time of 3 the transaction by the responsible employees in various organizations 4 having personal knowledge, or acting in reliance on information 5 transmitted by persons having personal knowledge, of the transactions, as 6 well as of the applicable accounting procedures and requirements.

7 Q. PLEASE DESCRIBE THE BUSINESS PROCESSES AND 8 PROCEDURES THAT TXU ELECTRIC EMPLOYS TO CREATE 9 TRANSACTIONS THAT ARE RECORDED TO THE GENERAL LEDGER.

10 A. Revenues and expenses are recorded on TXU Electric's general ledger 11 through two primary sources. One source is through accounting 12 subsidiary systems and the other source is through a journal entry.

13 Accounting subsidiary systems are utilized to record revenues and 14 expenses managed and approved by the line organizations responsible 15 for the revenue or expense. Examples of these subsidiary systems are 16 the customer information system, the accounts payable system, the 17 accounts receivable system, the construction accounting system, the 18 transportation system, and the employee information system. The 19 accounting subsidiary systems serve as a front-end tool and data 20 warehouse for line organizations to enter accounting information and 21 monetary amounts, which are subsequently formatted into an accounting 22 transaction for posting to the general ledger.

23 Journal entries are prepared by accountants to record transactions 24 directly to the general ledger. Journal transactions include, but are not 25 limited to, accounting accruals, amortizations, inter-company billings, 26 correcting entries, and purchases or sales of assets.

27 Q. PLEASE DESCRIBE THE ACCOUNTING CONTROL MECHANISMS 28 EMBEDDED INTHE BUSINESS PROCESSES.

29 A. Electronic and manual checks and balances are built into the business 30 processes at the various stages of creating an accounting transaction.

Pruett - Direct - TXU Electric

" Business Separation Plan

1 When a transaction is entered, the accounting system performs electronic 2 checks and balances on the transaction. These electronic validation 3 processes include verification for a valid FERC account and other relevant 4 accounting information. If any of these items are not correct, the 5 transaction will not be recorded. Rejected transactions are corrected by 6 accountants through an inquiry process. Once the data passes electronic 7 verification, an accounting transaction is created and posted to the general 8 ledger.

9 Journal entries prepared by accountants are reviewed and 10 approved by a senior level accountant or accounting manager. The 11 journal approver is responsible for ensuring that documentation exists to 12 support the journal transaction, that the accounting distribution is proper, 13 and that the amounts are accurate.

14 Q. PLEASE DESCRIBE OTHER CONTROLS THAT ARE UTILIZED BY TXU 15 ELECTRIC TO VERIFY THAT PROPER COST ASSIGNMENTS AND 16 ACCOUNT CLASSIFICATIONS ARE MAINTAINED THEREBY 17 ENSURING THE ON-GOING ACCURACY OF RECORDED FINANCIAL 18 INFORMATION.

19 A. TXU Business Services' accounting systems contain electronic edits or 20 validation rules and criteria that will not allow a financial transaction to be 21 recorded to the accounting system unless the transaction has an 22 associated FERC account number, Company/department code (company 23 and organization accountable and responsible for incurring the cost) and 24 other internally established codes that designate the type of expenditure to 25 be recorded. This process prevents any transaction being recorded to the 26 books and records of TXU Electric without this essential information.

27 Because the Public Utility Commission of Texas regulates TXU Electric 28 and requires adherence to the FERC chart of accounts, a FERC account 29 number is required on all financial transactions. The account number Pruett - Direct - TXU Electric Business Separation Plan

I serves as the basis for classification of financial information reflected on 2 the books and records of TXU Electric.

3 Within the accounting department is a staff of professional 4 accountants that are highly specialized and experienced in process 5 procedures and departmentalized functions, systems, and responsibilities.

6 The various accounting departments own, operate, and maintain 7 specialized accounting subsidiary ledger systems that serve in some 8 cases as the original means of entry of financial data from which 9 accounting transactions are created and posted to the general ledger in an 10 efficient and timely manner, thereby ensuring the maintenance of proper 11 accounting controls and appropriate segregation of costs between TXU 12 Electric and its affiliates.

13 Q. DOES TXU BUSINESS SERVICES' ACCOUNTING SYSTEM ALLOW 14 FOR THE SEPARATE RECORDING AND TRACKING OF COSTS FOR 15 TXU ELECTRIC AND ITS AFFILIATES IN ACCORDANCE WITH 16 SUBSTANTIVE RULE 25.272(d)?

17 A. Yes. TXU Electric and its affiliates maintain separate books and records 18 in accordance with GAAP, and TXU Electric's books and records are not 19 consolidated with those of its affiliates, which is in accordance with 20 Substantive Rule 25.272 (d)(6)(A) and (d)(6)(B). TXU Electric records all 21 transactions with its affiliates, whether they involve direct or indirect costs, 22 in accordance with Substantive Rule 25.272(d)(6)(A). Therefore, sufficient 23 financial records are maintained by TXU Electric to allow for audits of 24 transactions between the utility and its affiliates in accordance with 25 Substantive Rule 25.272 (d)(6)(C). TXU Electric's financial records and 26 transactions are audited by an independent third party on an annual basis, 27 and TXU Electric currently makes records relating to transactions between 28 TXU Electric and its affiliates available for review by the Commission.

29 These procedures will be adhered to upon the creation of new affiliates as 30 well.

Pruett - Direct - TXU Electric Business Separation Plan

1 Q. HAS TXU ELECTRIC IMPLEMENTED A METHOD TO TRACK AND 2 RECORD ITS COSTS ASSOCIATED WITH BUSINESS SEPARATION?

3 A. Yes. Beginning with the passage of Senate Bill No. 7, TXU Electric 4 established a unique project number to be used to record all incremental 5 costs associated with business separation and other activities relating to 6 compliance with the Utilities Code. These costs are recorded on the 7 books and records of TXU Electric under this unique project number and 8 will be made available for Commission review and audits by third parties.

9 Q. WHAT TYPES OF REGULAR AUDITS ARE CONDUCTED TO 10 AUTHENTICATE TXU ELECTRIC'S BOOKS AND RECORDS?

11 A. TXU Electric's books and records are audited by the independent public 12 accounting firm of Deloitte & Touche L.L.P. Audits are planned and 13 performed to obtain reasonable assurance that the financial statements 14 are free of material misstatement and that costs are correctly recorded 15 and classified. An audit includes examining, on a test basis, evidence 16 supporting the amounts and disclosures in the financial statements. In 17 addition, TXU Business Services' internal audit department regularly 18 performs audits of the control systems, accounting systems, and business 19 processes and procedures, as well as the balances within specified 20 accounts for TXU Electric.

21 Q. PLEASE DISCUSS TXU ELECTRIC'S INTERNAL AUDIT PROGRAM.

22 A. Internal Audit is accountable for the review and audit of financial and 23 operational activities in TXU Electric. Internal Audit is responsible for 24 promptly reporting the results of audits, along with recommendations, to 25 management at the appropriate organizational level. Internal auditors are 26 additionally accountable for conducting suitable follow-up on the 27 disposition of these recommendations as well. Independence and 28 objectivity are critical to the effectiveness of an internal audit program.

29 TXU Business Services' internal audit organization is therefore authorized 30 to conduct reviews and audits in all areas of TXU Electric and to have full, Pruett - Direct - TXU Electric Business Separation Plan

1 free, and unrestricted access to all of its business activities, records, 2 property, and personnel relevant to the successful performance of audits.

3 Internal auditors are held responsible for treating information obtained with 4 the proper degree of confidentiality.

5 Internal Audit reports its findings regularly to the Audit Committee of 6 the TXU Board of Directors concerning audits, violations of policies and 7 procedures, and other matters relating to internal controls.

8 IV. MODIFICATIONS TO TXU ELECTRIC'S ACCOUNTING 9 SYSTEMS THAT WILL BE REQUIRED FOR COMPLIANCE 10 WITH SECTION 39.051 OF THE UTILITIES CODE 11 Q. WILL TXU ELECTRIC CONTINUE TO UTILIZE ITS EXISTING 12 ACCOUNTING SYSTEM AFTER JANUARY 1, 2002?

13 A. Yes. TXU Business Services existing accounting system has been 14 developed to maintain separate books and records for each TXU System 15 Company in accordance with GAAP. However, some modifications and 16 additions will be required in order to ensure that TXU Electric is in 17 complete compliance with Section 39.051 of the Utilities Code.

18 Q. PLEASE DISCUSS THE MODIFICATIONS OR ADDITIONS TO BE 19 MADE TO TXU BUSINESS SERVICES' ACCOUNTING SYSTEM SO 20 THAT COST TRACKING SYSTEMS ARE IN COMPLIANCE WITH THE 21 COMMISSION'S BUSINESS SEPARATION REQUIREMENTS.

22 A. In August 1998, TXU Business Services installed a new computerized 23 accounting system. TXU Business Services' Financial Information 24 Management System ("FIM") was designed with the flexibility to efficiently 25 enable the integration of new companies or affiliates into the accounting 26 system without the need for major program or system modifications.

27 However, some of TXU Electric's existing legacy subsidiary systems 28 require significant program modifications to enable establishment of new 29 companies.

Pruett - Direct - TXU Electric

. 10 - Business Separation Plan

1 The FIM system was designed with user access restrictions in all of 2 its financial modules for each of the TXU System Companies ("business 3 units"). These user access restrictions ("business unit security") prevent 4 the viewing of financial information unless access to the business unit's 5 data is specifically granted to an employee. By default, FIM system 6 access is available only to the employees of a TXU System company 7 when approval is granted by line organization management and the 8 accounting organization. If access is authorized and granted to an 9 employee of the utility or an affiliate, the employee is only allowed access 10 to the financial information of the company by which he or she is 11 employed. Therefore, the FIM system's existing business unit security 12 structure is sufficient to be in compliance with the provisions of 13 Substantive Rule 25.272(d)(3) relative to financial information safeguards.

14 However, certain situations currently exist that will require modifications so 15 that no employee of a competitive affiliate can gain access to information 16 in a manner inconsistent with Section 39.157(g) and (I) as follows:

17

• The FIM system contains reporting applications that allow users to 18 consolidate financial information from multiple business units. These 19 reporting capabilities will be modified to ensure that only authorized 20 accounting personnel have access to this capability.

21 u Business unit financial and statistical reports are programmatically 22 prepared at the completion of the accounting cycle and stored in local 23 area network (LAN) directories that are not controlled by business unit 24 security. These directories allow a system user to read or copy 25 reports. LAN security will be enhanced to restrict and enforce the 26 business unit level security over these reports.

27

• The FIM system allows employees to electronically obtain and view 28 journal entry supporting documentation. Employees that are granted 29 access to this system capability may, however, view journal entries 30 and supporting documentation for all TXU System companies. TXU Pruett - Direct - TXU Electric Business Separation Plan

1 Business Services will restructure LAN security to ensure appropriate 2 data separation safeguards exist relative to regulated and non 3 regulated affiliates financial information.

4 In addition, some modifications will be required to TXU Electric's 5 accounting subsidiary systems to ensure that appropriate security controls 6 exist. TXU Electric will address these situations and make the necessary 7 modifications to its systems to ensure compliance with Substantive Rule 8 25.272(d)(3) on or before January 1, 2002.

9 Q. OTHER THAN THESE MODIFICATIONS TO THE SECURITY SYSTEM, 10 WILL ANY OTHER CHANGES TO THE ACCOUNTING SYSTEM BE 11 REQUIRED TO ENSURE THAT PROPER REPORTING, COST 12 TRACKING, COST ASSIGNMENT, AND COST ALLOCATION 13 PROCEDURES EXIST TO SEPARATE COSTS BETWEEN UTILITY AND 14 COMPETITIVE BUSINESS FUNCTIONS?

15 A. Yes. The accounting organization has identified several accounting 16 system-related projects that must be completed to assure that the 17 accounting systems utilized by TXU Electric are in compliance with 18 Substantive Rule 25.272(d)(6)(A). These projects encompass various 19 changes needed for allocations of indirect overheads, asset transfers, new 20 billing system requirements for a transmission and distribution utility 21 company, and ad valorem tax reporting.

22 Q. WHAT IS THE APPROXIMATE COST TO TXU ELECTRIC TO MODIFY 23 THE EXISTING ACCOUNTING SYSTEM IN ORDER TO ENSURE 24 COMPLIANCE WITH SUBSTANTIVE RULE 25.272(d)(3) and (d)(6)(A)?

25 A. The cost of these modifications has not been determined. An estimate of 26 costs to modify all of TXU Electric's computerized business system 27 applications in order to ensure compliance with Substantive Rule 28 25.272(d)(3) and (d)(6)(A) will be provided in the April 2000 cost 29 separation proceeding.

Pruett - Direct - TXU Electric Business Separation Plan

I Q. WILL TXU ELECTRIC MODIFY ITS EXISTING CHART OF ACCOUNTS 2 UPON SEPARATION OF ITS REGULATED AND COMPETITIVE 3 BUSINESS FUNCTIONS?

4 A. TXU Electric will continue to adhere to the FERC Uniform System of 5 Accounts for its transmission and distribution company. At this time, TXU 6 Electric anticipates that the FERC system of accounts will continue to be 7 utilized by its power generation company. The power generation company 8 will appropriately remove rate-regulated accounts such as regulatory 9 assets, regulatory expenses, reserve for self insurance, etc., that no 10 longer apply to a competitive power generation company. The accounting 11 organization will evaluate a system of accounts in accordance with GAAP 12 for its retail electric provider. The proposed chart of accounts for the retail 13 electric provider will be included in the April 2000 cost separation 14 proceeding. See my Exhibits RKP-1 through RKP-3 for the proposed 15 system of accounts for TXU Electric's transmission, distribution, and 16 power generation entities.

17 V. ASSIGNMENT OF COSTS TO TXU ELECTRIC'S 18 BUSINESS FUNCTIONS 19 Q. PLEASE EXPLAIN THE PROCESS TXU ELECTRIC WILL USE TO 20 ASSIGN ITS COSTS TO THE UTILITY AND COMPETITIVE BUSINESS 21 FUNCTIONS.

22 A. TXU Electric will use a three-step process to functionalize its costs 23 between generation, distribution, transmission, and retail electric provider 24 activities as follows:

25

• For each of TXU Electric's functionalized FERC accounts, a direct 26 assignment of the corresponding costs shall be made based upon the 27 FERC account description and corresponding account instructions to 28 the fullest extent possible.

29

• For each of TXU Electric's FERC accounts that contain costs for 30 regulated and competitive business functions or activities, such as Pruett - Direct - TXU Electric Business Separation Plan

1 FERC account number 920 (Administrative and General Labor 2 Expense), TXU Electric's department identification codes or other 3 actual account specific documentation will be utilized to directly assign 4 the costs to the fullest extent possible.

5

• For TXU Electric's FERC account and department identification code 6 combinations that cannot be directly assigned to a business function, 7 the appropriate functionalization factors prescribed in the 8 Commission's Unbundled Cost of Service Rate Filing Package 9 ("UCOSFP") instructions shall be applied to the costs in the account.

10 Q. PLEASE DESCRIBE TXU ELECTRIC'S SYSTEM OF ACCOUNTS THAT 11 WILL BE RELIED UPON AS A BASIS TO SEPARATE COSTS 12 BETWEEN REGULATED AND COMPETITIVE BUSINESS FUNCTIONS.

13 A. TXU Electric maintains its books and records in accordance with the 14 FERC Uniform System of Accounts. As mentioned previously, all 15 transactions posted to the accounting system must contain a FERC 16 account, a department identification code, and an additional code 17 ("expenditure code") that further describes the cost. The combination of 18 the FERC account and department identification code provides essential 19 information needed to determine the company and business function with 20 which the costs are either directly or indirectly associated. For some of 21 TXU Electric's costs, the FERC account provides the necessary 22 information to directly assign the balance in the account to a utility or 23 competitive business function. As an example, TXU Electric's investment 24 in Electric Plant in Service, distribution overhead conductors (FERC 25 account number 365), can be directly assigned to the utility's distribution 26 company based solely on the FERC account number and the FERC 27 definition of these costs. No further analysis of account 365 is therefore 28 necessary to the assignment of these costs as the FERC account number 29 and description fully describe the business function with which this 30 investment is associated.

Pruett - Direct - TXU Electric Business Separation Plan

1 Q. CAN THE FERC ACCOUNT CLASSIFICATIONS BE SOLELY RELIED 2 UPON FOR THE ASSIGNMENT OF TXU ELECTRIC'S COSTS TO A 3 BUSINESS FUNCTION?

4 A. No. The FERC Chart of Accounts requires only that the utility's operating 5 and maintenance expenses and its electric plant in service investment be 6 functionalized into generation, transmission, and distribution. Non 7 functionalized administrative and general series of accounts are charged 8 for costs of both utility and competitive business activities. For these and 9 all other series of non-functional FERC accounts, a further analysis must 10 be performed to accurately direct assign the costs to the proper utility or 11 competitive business function.

12 Q. HOW WILL TXU ELECTRIC ASSIGN THESE NON-FUNCTIONALIZED 13 COSTS BETWEEN THE UTILITY AND ITS COMPETITIVE AFFILIATES?

14 A. For each accounting transaction that is posted to TXU Electric's general 15 ledger, a department identification code ("Dept. I.D.") is required that 16 designates the organization that is responsible for incurring the costs. The 17 Dept. I.D. is a unique numerical code assigned to each and every 18 functionalized business organization within TXU Electric. Therefore, the 19 functional business activity that is responsible for incurring the costs can in 20 many cases be identified through the use of the Dept. I.D. As an example, 21 the Vice-President of the Transmission Business Unit charges labor costs 22 to administrative account 920 (Administrative Labor) and to a transmission 23 organization's Dept. I.D. Therefore, in order to separate TXU Electric's 24 transmission administrative labor costs from the total labor charged to 25 Account 920, the combination of the FERC account and the Dept. I.D. can 26 be used to make this determination. A listing of TXU Electric's 27 functionalized Dept. I.D. codes and their corresponding descriptions is 28 contained in my Exhibit RKP-4.

29 Finally, some costs are recorded on the books and records of TXU 30 Electric that are incurred on behalf of all business functions at a Pruett - Direct - TXU Electric Business Separation Plan

1 "corporate" level. As an example, TXU Electric's rate case expenses are 2 charged to FERC Account 928, Regulatory Expense, under the 3 responsibility of a corporate Dept. I.D. These costs cannot be directly 4 assigned to a specific business function. TXU Electric will therefore rely 5 upon the Commission's UCOSFP instructions for the functionalization of 6 these and other similar "corporate" costs that cannot be directly assigned.

7 Costs that cannot be directly assigned through the use of the FERC 8 account or a combination of the FERC account and Dept. I.D. code should 9 be minimal. As a last resort, the UCOSFP allocation factors will be used 10 to assign costs to TXU Electric's regulated and competitive business 11 functions.

12 VI. ACCOUNTING FOR TRANSACTIONS BETWEEN 13 TXU ELECTRIC AND ITS AFFILIATES 14 Q. DOES TXU ELECTRIC CURRENTLY PROVIDE ANY SERVICES TO ITS 15 AFFILIATES?

16 A. Yes. As an example, TXU Electric regularly provides various services to 17 its regulated gas affiliate. These services include, but are not limited to, 18 service planning, processing of customer requests for services, meter 19 reading, billing and collections, engineering and design services, and 20 facilities mapping, and project cost estimating.

21 Q. HOW ARE THESE COSTS RECORDED AND CHARGED FROM TXU 22 ELECTRIC TO ITS AFFILIATES?

23 A. TXU Electric uses specific project cost recording and tracking numbers 24 ("project codes") for all services it provides to an affiliate. All costs of 25 materials, labor, transportation and equipment, services, and fully 26 allocated indirect costs are charged to the project associated with the 27 services provided to the affiliate. Upon completion of the project or at the 28 end of a pre-determined billing schedule, the accumulated expenses are 29 billed to the affiliate at cost.

Pruett - Direct - TXU Electric Business Separation Plan

1 VII. COST ASSIGNMENT METHODOLOGY FOR 2 SHARED FACILITIES AND EQUIPMENT 3 Q. DOES TXU ELECTRIC SHARE ANY OF ITS FACILITIES AND 4 EQUIPMENT BETWEEN ITS UTILITY AND COMPETITIVE 5 FUNCTIONS?

6 A. Yes. As of September 30, 1999, there were 19 TXU Electric owned and 7 leased facilities that were shared by the utility with other business 8 functions. My Exhibit RKP-5 lists the facilities occupied by TXU Electric 9 organizations and the corresponding business functions and functional 10 occupancy percentages for each location.

11 Q. HOW HAS TXU ELECTRIC DETERMINED THE FUNCTIONAL 12 UTILIZATION OF EACH OF ITS FACILITIES?

13 A. In accordance with instructions specified in the Commission's UCOSFP 14 Schedule F - - Functionalization Factors - - TXU Electric conducted a 15 square footage utilization study for each of its facilities. As indicated in my 16 Exhibit RKP-5, the majority of TXU Electric's facilities are utilized by a 17 single business function.

18 Q. PLEASE DESCRIBE IN DETAIL THE ASSIGNMENT METHODOLOGY 19 THAT WILL BE UTILIZED BY TXU ELECTRIC TO ALLOCATE COSTS 20 ASSOCIATED WITH SHARED FACILITIES AND EQUIPMENT.

21 A. Costs that must be equitably shared by the utility and an affiliate relating to 22 joint occupancy can be grouped into three classifications:

23

• Direct operating and maintenance expenses; 24 0 Indirect costs; and 25 , Return on invested capital.

26 Direct operating and maintenance expenses are those costs incurred for 27 the on-going operations of a facility, such as building repairs, lawn 28 maintenance, utilities, supplies, and rent on office equipment. The utility 29 shall charge its affiliates for an equitable portion of these costs based on 30 square footage utilization. Indirect costs represent overheads associated Pruett - Direct - TXU Electric Business Separation Plan

1 with the ownership of a facility and the associated equipment, such as ad 2 valorem taxes, property and liability insurance, and depreciation. An 3 equitable portion of indirect costs shall be charged by the utility to an 4 affiliate based on square footage utilization. Finally, the utility will charge 5 an affiliate for an equitable amount of its costs of capital, based upon 6 square footage utilization and its regulated return on invested capital. The 7 transmission and distribution company owning the facility shall record the 8 recovery of these allocated costs as income on rental of electric utility 9 property.

10 VIII. ASSET VALUATION METHODOLOGY 11 Q. PLEASE DISCUSS THE ASSET VALUATION METHOD TXU ELECTRIC 12 WILL UTILIZE TO SEPARATE ITS ASSETS AND LIABILITIES TO THE 13 POWER GENERATION COMPANY, RETAIL ELECTRIC PROVIDER 14 AND TRANSMISSION AND DISTRIBUTION COMPANIES.

15 A. During the initial business separation process, TXU Electric will identify all 16 assets and liabilities associated with its electric utility functions and its 17 competitive power generation and retail electric provider functions. The 18 basis for this information will be from the audited books and records of 19 TXU Electric. On or before January 1, 2002, TXU Electric will transfer its 20 assets and liabilities to the appropriate business function at book value in 21 accordance with Substantive Rule 25.342(d)(4).

22 Q. HAS TXU ELECTRIC IDENTIFIED THE ASSETS AND LIABILITIES 23 ASSOCIATED WITH ITS COMPETITIVE BUSINESS FUNCTIONS?

24 A. No. This information is unavailable at this time and will be provided in the 25 April 2000 cost separation proceeding.

26 IX. CONCLUSION 27 Q. WOULD YOU PLEASE SUMMARIZE YOUR TESTIMONY?

28 A. The TXU Business Services' accounting organization is a shared 29 corporate support services provider responsible for the maintenance of 30 TXU Electric and its affiliates' financial books and records in accordance Pruett - Direct - TXU Electric Business Separation Plan

1 with GAAP. The accounting organization manages and maintains the 2 various specialized accounting activities and services that are provided to 3 TXU Electric and its regulated and unregulated affiliates. The books and 4 records of TXU Electric are maintained separately from those of its 5 affiliates and are audited on a regular basis by TXU Business Services 6 Internal Audit organization and by an independent audit firm, Deloitte &

7 Touche, on a regular basis.

8 The TXU Business Services' accounting organization utilizes a 9 recently developed computerized accounting system -- FIM -- to record 10 and report TXU Electric's financial transactions, including all transactions 11 with its affiliates. Separate financial statements are prepared on a 12 monthly basis for TXU Electric and each of its affiliates in accordance with 13 GAAP.

14 The FIM system has been developed with an internal business unit 15 security system that restricts access to financial information. The security 16 system will only grant access to financial information of the business unit 17 by which the authorized system user is employed. However, in the 18 absence of planned modifications, certain other system and computer 19 network applications potentially enable employees to obtain financial data 20 of TXU Electric or an affiliate, therefore creating situations that may result 21 in violations of the Code of Conduct. TXU Electric, in order to ensure that 22 Substantive Rule 25.272 is not circumvented as a result of using a shared 23 accounting system, will make certain modifications and enhancements to 24 its business unit security system and other changes to cost tracking and 25 recording programs to ensure that proper safeguards exist to prevent the 26 potential of sharing of financial information and that costs are recorded 27 and tracked appropriately between the utility and its affiliates on or before 28 January 1, 2002.

29 TXU Electric's financial information is maintained within the 30 accounting systems in a manner that allows for the direct assignment of Pruett - Direct - TXU Electric Business Separation Plan

1 most of its costs between utility and competitive business functions. TXU 2 Electric will directly assign its costs to its business functions to the fullest 3 extent possible. For those costs that cannot be directly assigned, TXU 4 Electric will rely upon cost allocation factors contained within the 5 Commission's UCOSFP instructions. The use of the factors, as a means 6 to assign costs, will be relied upon as a last resort.

7 TXU Electric will identify and transfer its assets and liabilities to the 8 appropriate business function at book value on or before January 1, 2002.

9 Q. DOES THIS CONCLUDE YOUR TESTIMONY?

10 A. Yes.

11 12 13 Pruett - Direct - TXU Electric

-20 - Business Separation Plan

STATE OF TEXAS § COUNTY OF DALLAS § BEFORE ME, the undersigned authority, on this day personally appeared R. Keith Pruettt, who, having been placed under oath by me, did depose as follows:

My name is R. Keith Pruett. I am of legal age and a resident of the State of Texas. The foregoing direct testimony and the attached exhibits offered by me are true and correct, and the opinions stated therein are, to the best of my knowledge and belief, accurate, true and correct.

-R. Keith Pruett SUBSCRIBED AND SWORN TO BEFORE ME by the said R. Keith Pruett this _74_1_ day of *. z* * . , 2000.

Notary Public, State of Texas EXHIBIT RKP-1 Page 1 of 16 TXU ELECTRIC COMPANY PROPOSED CHART OF ACCOUNTS TRANSMISSION DIVISION EXHIBIT RKP-1 Page 2 of 16 TXU ELECTRIC COMPANY PROPOSED CHART OF ACCOUNTS TRANSMISSION DIVISION Account Number Account Description 1010200 IS-Transmission 1010201 IS-Transmission Fee Land 1010202 IS-Transmission-Sandow 1010211 IS - Transmission Substation 1010212 IS-Transmission Substation Lan 1010300 IS-Distribution System 1010310 IS-Distribution-Substation 1010311 IS-Land in Fee Distb Substatio 1010700 IS-Gen Plant-Fee Land 1010730 IS-Transportation Equipment 1010798 IS-General Plant 1010900 IS-Intangible Plant 1051000 Property Held For Future Use 1060200 CCNC-Transmission 1060201 CCNC-Trans Fee Land 1060211 CCNC - Transmission Substation 1060212 CCNC-Transmn Substation Land 1060301 CCNC-Dist Fee Land 1060310 CCNC-Dist-Substation 1060311 CCNC-Land in Fee Distb Substat 1060730 CCNC-Transportation Equipment 1060798 CCNC-General Plant 1070000 Construction Work In Progress 1079000 Construction-Credit to Plant 1080000 APFD-Labor 1080123 RWIP-Trans Related-Nuclear 1080125 RWIP-Distrib Related-Nuclear 1080200 RWIP-Transmission 1080201 Non Depr - Transmission 1080202 RWIP-Transmission-Sandow 1080211 Removal Cost 1080212 Removal Cost 1080300 RWIP-Distribution System 1080310 RWIP-Distribution Substations 1080700 Non Depr - General Plant 1080730 RWIP-Transportation Equipment 1080798 RWIP-General Plant 1081200 APFD-Transmission 1081201 Non Depr - Transmission 1081202 APFD-Transmission-Sandow EXHIBIT RKP-1 Page 3 of 16 Account Number Account Description 1081211 APFD-Transmission Substation 1081212 APFD-Transmn Substation Land 1081250 Depr Res - trans of redir amt 1081310 APFD-Distribution Substations 1081700 Non Depr - General Plant 1081730 APFD-Transportation Equipment 1081798 APFD-General Plant 1082200 Retir - Transmission 1082201 Retir- Non Depr - Transmission 1082202 Retir - Transmission - Sandow 1082211 Retirements 1082212 Retirements 1082310 Retir-Distribution Substations 1082311 Retir-Distrib Substation Land 1082700 Retir-Non Depr - General Plant 1082730 Retir-Transportation Equipment 1082798 Retir - General Plant 1083200 Saiv - Transmission 1083201 Salv - Non Depr - Transmission 1083202 Salv-Transmission-Sandow 1083211 Salvage 1083212 Salvage 1083310 Salv-Distribution Substations 1083700 Salv- Non Depr - General Plant 1083730 Salv- Transportation Equipment 1083798 Salv - General Plant 1084200 Oth Rec - Transmission 1084201 Oth Rec- Non Depr-Transmission 1084202 Oth Rec - Transmission Sandow 1084211 Other Recoveries 1084212 Other Recoveries 1084310 Oth Rec-Distribution Substatio 1084700 Oth Rec-Non Depr-General Plant 1084730 Oth Rec-Transportation Equipme 1084798 Oth Rec - General Plant 1111000 Amortization - Plant 1113000 Amortization - Other 1210000 Nonutility Property 1243010 Deferred Compensation Plan 1243020 D&I Company Matching 1243030 D&I Company Incentive Award 1243200 Split $ Life Ins 1243300 Supplemental Retirement Plan 1245100 Salary Deferral-7 Year Option 1245200 Salary Deferral - Retirement

- 24 -

EXHIBIT RKP-1 Page 4 of 16 Account Number Account Description 1245500 Salary Deferral-7Yr Foundation 1245600 Salary Defer-Retire Foundation 1310000 Cash-Chase Bank of Texas 1317411 Cash-First Texas Bank-1060155 1317412 Cash-lstNat Bk Killeen-1 168061 1317415 Cash-Union State Bank-27000710 1317416 Cash-Heights State Bk-1168004 1317501 Cash-Citibank New York 7501 1317502 Cash-Chase-4500 COF Depository 1317503 Cash-NationsBank-4375-3rdParty 1317504 Cash-Nations4525-Concentration 1317505 Cash-NationsBank Dallas 7505 1317506 Cash-Nations-331 1-COF Deposit 1317508 Cash-Chase Manhattan-0158-EDI 1317509 Cash-NationsBank of Texas 7509 1317510 Cash-Chase-9791-Misc AR 1317511 Cash - Nations CIS 511 1317512 Cash - Chase CIS_512 1317520 Cash-Chase Manhattan-0867 1317521 Cash-NationsBank Wichita Falls 1317524 Cash-Team Bank 7524 1319000 Cash-Transfer Of Funds 1350300 Relocation Advances 1350700 Travel Advances 1354000 Working Funds-Petty Cash 1359900 Working Funds-Other 1419000 Notes Rec AR Module Only 1420000 Customer Accounts Receivable 1421000 Electric-CIS 1429000 Customer Rec AR Module Only 1430100 Other Misc Accounts Receivable 1430300 Claims 1431000 Payroll Deduction - Other 1431060 Energy Conservation 1431097 AR - Retirees 1431099 Employees 1431110 Appliances 1431600 Payroll Advances 1432300 Returns & Shipping Orders 1432600 Wheeling 1439000 Misc Rec AR Module Only 1440100 Uncollectible Account-Misc 1460000 A_R - Associated Companies 1545000 Materials &Supp-PMMS Normal 1545100 Materials &Supp-PMMS Pseudo EXHIBIT RKP-1 Page 5 of 16 Account Number Account Description 1631100 Purchasing &Stores 1634000 Stores Sales & Use Tax 1638100 Purchasing & Stores-Returns 1638200 Purchase &Store-Freight Claim 1652100 Insurance 1659000 Other Prepayments 1719000 Notes Receivable-AR Module 1720000 Rents Receivable 1729000 Rent Rec - AR Module 1746000 Home Purchase Plan 1821500 Federal - State - FAS 109 1821600 Federal - State - APB 11 1823001 FAS 109-EPIS-Basis Differences 1823002 FAS 109-CWIP-Flow Through 1823004 FAS 109-Software Development 1825100 State - FAS 109 1825200 State - APB 11 1840800 Purch & Stores CIg - Purch Exp 1841200 Transportation-Maintenance 1841240 Time-Nonprod-Distrb-Cr 1841260 Time-Nonprod-Tm-Cr 1841700 Transportation - Hydraul Maint 1841800 Transportation-Credit 1842100 Time-Variable DBU 1842400 Time - Non Productive 1860100 Misc Deferred Debit - Other 1861101 Job Order-Rate Case-Gen Exp 1861120 Job Order-Fed Tax Payment 1861130 IBNR - Medical Claims 1861140 IBNR - Dental Claims 1861150 IBNR - Pers Injury Prop Damage 1862200 Job Order-Billed-Damages-Curr 1862400 Job Order-Cross Chgs-Labor 1862600 Job Order-Misc-Corp-Curr Chrg 1862700 Job Orders 1863100 Suspense-Construction 1866100 Subj To Amort-Rate Case Exp 1866300 1999 Severance Costs 1866400 Self-Insurance 1866500 Competitive Action Plan Costs 1866600 Merger Transition Costs 1868200 DICP-Unamort-Employee Deferral 1868300 DICP-Unamort-Company Match 1868400 DICP-Unamort-lncentive Award 1868510 SDP-Company Match 7 Yr Option EXHIBIT RKP-1 Page 6 of 16 Account Number Account Description 1868520 SDP-Unamort Comatch Retirement 1868550 SDP Unamort Co Match-7Yr Found 1868560 SDP Unamort Co Match Retiree 1868900 Money Pool-Contrib ToFrom 1869000 Miscellaneous Deferred Debits 1869900 Validation Fatals 1881000 Res,Dev&Demo-Intern-Curr 1882000 Res,Dev&Demo-Extern-Curr 1900000 Accum Def Federal Income Tax 1900001 ADFIT-PEP 1900002 ADFIT-Bad Debt Reserve 1900003 ADFIT-Cycle Billing Revenue 1900006 DFIT State - ATL 1900007 ADSIT-FAS 109 1900008 ADFIT-West TexasCPL Revenues 1900010 ADIT - State APB 11 1900011 ADFIT-Other-lnt. Unbill Fuel 1900012 ADFIT-Unbilled Fuel Revenue 1900013 ADFIT-Int on Unbilled Fuel Rev 1901001 ADSIT-Sandow Non Operating 1901002 ADFIT- Non-operating 1901030 ADFIT-PIPD Claims 1902001 ADFIT-Property Insuranc Reserv 1902002 ADFIT-DCIP Amortization 1902003 ADFIT-Stock Incentiv Comp Plan 1902004 ADFIT-LESOP 1902011 ADFIT-Impairment-Utility 1902012 ADFIT-Supplemental Retirement 1902013 ADFIT-Pension Plan 1902014 ADFIT-Deferred Incentive Comp 1902015 ADFIT-Long Term Incentive Plan 1902019 ADFIT-Thrift AccrFund Dif 1902020 ADFIT-Salary Def Plan 7 Yr Opt 1902021 ADFIT-Salary Def Plan Ret Opt 1902023 ADFIT-OPEB and FAS 112 1902025 ADFIT-Provided For Misc Recv 1902031 ADFIT-Non Owner Contributions 1902032 ADFIT-Excess Rev Req Level 1902033 ADFIT-Unamortized ITC 1902034 ADFIT-Net Operating Loss 1902035 ADFIT-ALT Minimum Tax 1902036 ADFIT-S02 Emmissions Allowance 1902040 ADFIT-Ins Claims IBNR Accrual 1902052 ADFIT-FederalStateFAS 109 1902053 ADFIT-FederalStateAPB 11 EXHIBIT RKP-1 Page 7 of 16 Account Number Account Description 1902054 ADFIT - PIPD Claims 1902055 ADFIT - Pension 1902059 ADFIT-Mitig and Redirctd Depr 1904000 ADFIT-Impairment 1904011 ADFIT - Sandow Non-operating 1904012 ADFIT - Bus. Interruption 1907000 ADSIT-FAS 109 1907001 ADSIT-APB 11 1908000 ADSIT-Non Operating 2011000 Common Stock Issued-Affiliated 2019110 Trust Fund Contra - DCIP 2160000 Unappropriated Ret Earnings 2230000 Advances-Associate Cos 2281000 Accum Prov-Property Ins 2281011 Reserve-Charges-Liability 2281020 Reserve-Charges-Accum Prov 2283000 Supplemental Retirement Plan 2320300 Other Accounts Payable 2321097 AP - Retirees 2321099 A_P - Employees 2321320 Div Pay-Pref-Direct Deposit 2321900 PED -Loans 2321901 ENSAVE Loans 2321902 PED - Bankruptcy 2321903 PED - Child Support 2321904 PED - Parking 2321905 PED - Dependent Care Plan 2321906 PED - Health Care Plan 2321909 PED - Dependent Life Insurance 2321911 PED - Medical Insurance 2321914 PED - IRS Levy 2321915 PED - Other 2321916 PED - TU PAC 2321919 PED - Student Loans 2321920 PED - Thrift Plan Collections 2321921 PED - U.S. Savings Bonds 2321922 ENSAVE Plan Collections 2321924 PED - United Way 2321925 Enserch Parking Deductions 2321926 Uniforms 2322401 Employee Group Life Insurance 2322402 Retiree Dental Insurance 2322403 Retiree Medical Insurance 2323000 Retentions 2324000 Trade Payables &Vouchers EXHIBIT RKP-1 Page 8 of 16 Account Number Account Description 2324700 Payroll Fund 2328900 0_S Checks-Money Pool 2328950 EDI Payments Outstanding 2340000 A_P - Associated Companies 2361000 FICA - Employer 2361100 Accrd Federal Unemployment Tax 2362100 Accrued State Unemployment Tax 2362500 State - Franchise 2362600 State-Ad Valorem-Current Year 2362610 State-Ad Valorem-Prior Year 2362700 State - Other - Full Accrual 2362710 State - Other - State Accrual 2362720 Local - Other - City Accrual 2362740 Local - Other - County Accrual 2363800 FIT - Accrual 2411000 FICA Withheld 2411200 FIT - Withheld - Income Tax 2412000 State-Disability 2412200 SIT Withheld - Income Tax 2412300 IT Withheld - City Income Tax 2412700 State - Other - Accrual 2412710 State - Other - Accrual -State 2414000 Other Taxes Withheld 2421100 Escheat - Wages 2423900 Other Accrued Payables 2424000 Payroll Accrual 2424100 Accrued Incentive Plans 2426000 Energy Aid Program 2428200 General Contractor - Other 2428210 Contractor Accruals-Other 2429300 Corporate Accruals 2531000 IBNR - Medical & Dental Claims 2531010 IBNR - Pers Injury Prop Damage 2531021 Reg Liab Prot Excs DFIT 2533000 Deferred &Incentive Comp 2533060 Restictive Stock Award 2533100 OPEB-Group Life Insurance 2533200 OPEB-Group Health Insurance 2533220 OPEB-Group Health Ins Accrual 2533300 Retirement Plan 2533400 Supplemental Retirement Plan 2533500 Obeps - Fas 112 2534000 Leveraged ESOP 2535100 Salary Deferral-7 Year Option 2535200 Salary Deferral-Retirement EXHIBIT RKP-1 Page 9 of 16 Account Number Account Description 2535300 Salary Deferral-Retire Annuity 2535400 Salary Deferral-Enserch Plan 2535500 Salary Deferral-7Yr Foundation 2535600 Salary Defer-Retire Foundation 2535650 Salary Def Reitree Annuity Fou 2535700 Salary Deferral-7 Yr Emerg Bus 2535800 Salary Def-Retir Opt Emerg Bus 2536000 Energy Reserve Account - ALCOA 2539000 Other Deferred Credits 2540001 FAS 109 - Unamortized ITC 2540003 Nonstat Excess DFIT 2541001 Excess DFIT 2541002 Excess Rev Req Level 2541003 FAS 109 - Unamortized ITC 2541520 FAS 109- Federal - State 2541530 APB 11 - Federal - State 2543000 FAS 109 - Unamortized ITC 2543003 FAS 109 - Unamortized ITC 2545100 FAS 109 - State 2545200 APB 11 - State 2546600 1997 Merger Transition Costs 2551000 Accumulated Deferred ITC 2553000 Rate Base Amortization 2821030 ADFIT-PIPD-Regulatory Asset 2822000 ADFIT-Other Property 2822001 ADFIT-Liberalized Depreciation 2822002 ADFIT-CWIP-Basis Difference 2822005 ADFIT-Nuclear Fuel Basis Diff 2822011 ADFIT-Oth Software DevelopCost 2822012 ADFIT-Misc Intangible Plant 2822015 ADFIT-FI09-EPIS-Flow Through 2822016 ADFIT-FI09-CWIP-Flow Through 2822018 ADFIT-F109-Software Developmnt 2822021 ADFIT-FAS 109-Federal & State 2822022 ADFIT-APB 11-Federal & State 2822023 ADFIT-InterCo Transf GainLoss 2824000 ADFIT- Non-operating 2827000 ADSIT-FAS 109-State 2827001 ADSIT-APB 11-State 2828000 ADSIT-Sandow 2830010 ADFIT - Property Tax Accrual 2832000 ADFIT-Other 2832001 ADFIT-Section 263A Items 2832002 ADFIT-Other Regulatory Expense 2832006 ADFIT-Early Retire-Severance EXHIBIT RKP-1 Page 10 of 16 Account Number Account Description 2832007 ADFIT-Debt Recal Premium &Exp 2832013 ADFIT-CAP Costs 2832029 ADFIT - Other 2832031 ADFIT-1999 Enh Emp Separ Prog 2832032 ADFIT-Redirected Depreciation 2834006 ADSIT-Non Operating 2835500 ADFIT-IBNR - Regulatory Asset 2837100 ADFIT-Merger ERPVSP 3003000 Labor Accruals-Rwip 3007000 Labor Accruals-Cwip 3030000 Intangible 3032000 Intangible-Retire 3037000 Intangible-Additions 3040000 Land & Land Rights 3050000 Structures 3480000 Construction Overhead 3487000 Construction Overhead 3490000 Land Owned In Fee 3492000 Land Owned In Fee-Retirements 3493000 Land Owned In Fee-Removal 3496000 Land Owned-Other Recoveries 3497000 Land Owned In Fee-Additions 3500000 Land Rights 3502000 Land Rights-Retirements 3503000 Land Rights-Removal 3504000 Land Rights-Salvage 3506000 Land Rights-Oth Recov 3507000 Land Rights-Additions 3520000 Struc & Impro 3522000 Struct And Impro-Retirements 3523000 Struct And Impro-Removal 3524000 Struct And Impro-Salvage 3526000 Struct And Impro-Oth Recov 3527000 Struc & Impro-Additions 3530000 Station Equip 3532000 Station Equip-Retirements 3533000 Station Equip-Removal 3534000 Station Equip-Salvage 3536000 Station Equip-Oth Recov 3537000 Station Equip-Additions 3540000 Towers & Fix 3542000 Towers & Fix-Retirements 3543000 Towers & Fix-Removal 3544000 Towers & Fix-Salvage 3546000 Towers & Fix-Oth Recov EXHIBIT RKP-1 Page 11 of 16 Account Number Account Description 3547000 Towers & Fix-Additions 3550000 Poles & Fix 3552000 Poles & Fix-Retirements 3553000 Poles & Fix-Removal 3554000 Poles & Fix-Salvage 3556000 Poles & Fix-Oth Recov 3557000 Poles & Fix-Additions 3560000 Ovhead ConDev 3562000 Ovhead CondDev-Retirements 3563000 Ovhead CondDev-Removal 3564000 Ovrhead ConDev-Salvage 3564001 Strg-Purif Eqp-Salv 3566000 Ovhead CondDev-Oth Recov 3567000 Ovhead ConDev-Additions 3570000 Undg Conduit 3572000 Undg Conduit-Retirements 3573000 Undg Conduit-Removal 3574000 Undg Conduit-Salvage 3576000 Undg Conduit-Oth Recov 3577000 Undg Conduit-Additions 3580000 Undg Conduct & Dev 3582000 Undg Conduct & Dev-Retirements 3583000 Undg Conduct & Dev-Removal 3584000 Undg Conduct & Dev-Salvage 3586000 Undg Conduct & Dev-Oth Recov 3587000 Undg Conduct & Dev-Additions 3600000 Dist Land Rights 3610000 Struct And Impro 3612000 Struct And Impro-Retirements 3613000 Struct And Impro-Removal 3614000 Struct And Impro-Salvage 3616000 Struct And Impro-Oth Recov 3617000 Struct And Impro-Additions 3620000 Station Equiptment 3622000 Station Equiptment-Retirements 3623000 Station Equiptment-Removal 3624000 Station Equiptment-Salvage 3626000 Station Equiptment-Oth Recov 3627000 Station Equiptment-Additions 3740000 Land In Fee 3742000 Land In Fee-Retire 3743000 Land In Fee-Removal 3746000 Land In Fee-Oth Rec 3747000 Land In Fee-Additions 3857000 Afudc EXHIBIT RKP-1 Page 12 of 16 Account Number Account Description 3867010 CIAC-Difference In Cost 3867040 Ciac-Non Standard Service 3867050 Ciac-Other 3867200 Ciac-Damages To Company Prop.

3867301 Ciac-Non Gvrmtl-RemovalReloc 3867302 Ciac-Gvrmtl-RemovalRelocation 3867402 Ciac-Sale Of Facilities (Oth) 3867500 Ciac-Other 3867601 Ciac-Contributed Materials 3867701 Ciac-Contributed Materials 3870000 Other Equip 3880000 Land Owned In Fee 3882000 Land Owned In Fee-Retire 3883000 Land Owned In Fee-Removal 3886000 Land Owned In Fee-Oth Rec 3887000 Land Owned In Fee-Additions 3890000 Land Rights 3892000 Land Rights-Retirements 3893000 Land Rights-Removal Cost 3894000 Land Rights-Salvage 3896000 Land Rights Other Recoveries 3897000 Land Rights-Additions 3900000 Struc & Improv 3902000 Struc & Improv-Retire 3903000 Struc & Improv-Removal 3904000 Struc & Improv-Salv 3906000 Struct & Improv-Oth Rec 3907000 Struc & Improv-Additions 3910000 Fum & Equip 3912000 Fum & Equip-Retire 3913000 Furn & Equip-Removal 3914000 Furn &Equip-Salv 3916000 Furn &Equip-Oth Rec 3917000 Furn &Equip-Additions 3920000 Transp Equip 3922000 Transp Equip-Retire 3923000 Transp Equip-Removal 3924000 Transp Equip-Salvage 3926000 Transp Equip-Oth Rec 3927000 Transp Equip-Additions 3930000 Stores Equip 3932000 Stores Equip-Retire 3933000 Stores Equip-Removal 3934000 Stores Equip-SaIv 3936000 Stores Equip-Oth Rec EXHIBIT RKP-1 Page 13 of 16 Account Number Account Description 3937000 Stores Equip-Additions 3940000 ToolShopGar Eqpt 3942000 ToolShopGar Eqpt-Retirements 3943000 ToolShopGar Eqpt-Removal 3944000 ToolShopGar Eqpt-Salvage 3946000 ToolShopGar Eqpt-Oth Recov 3947000 Tool_ShopGar Eqpt-Additions 3950000 Lab Equip 3952000 Lab Equip Retire 3953000 Lab Equip-Removal 3954000 Lab Equip-Salvage 3956000 Lab Equip-Other Recover 3957000 Lab Equip-Additions 3960000 Power Oper Equip 3962000 Power Oper Equip-Retire 3963000 Power Oper Equip Removal 3964000 Power Oper Equip-Salvage 3966000 Power Oper Equip-Oth Recov 3967000 Power Oper Equip Additions 3970000 Commun Eqpt 3972000 Commun Eqpt-Retirements 3973000 Commun Eqpt-Removal 3974000 Commun Eqpt-Salv 3976000 Commun Eqpt-Oth Rec 3977000 Commun Eqpt-Additions 3980000 Misc Equipment 3982000 Misc Equipment-Retire 3983000 Misc Equipment-Removal 3984000 Misc Equipment-Salv 3986000 Misc Equipment-Oth Rec 3987000 Misc Equipment-Additions 3990000 Misc General Plant 3990002 Other Tangible 3992000 Misc General Plant-Retirements 3992002 Other Tangible-Retirement 3993000 Misc General Plant-Removal 3993002 Other Tangible-Removal 3994000 Misc General Plant-Salvage 3994002 Other Tangible-Salv 3996000 Misc General Plant-Oth Rec 3996002 Other Tangible-Oth Rec 3997000 Misc General Plant-Additions 3997002 Other Tangible-Additions 4030000 Depreciation Expense 4030200 Depr-Transmission Plant

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EXHIBIT RKP-1 Page 14 of 16 Account Number Account Description 4030202 Depr-Transmission-Sandow 4030300 Depr-Distribution System 4030798 Depr-General Plant 4031200 Depr-Transmission Plant 4031202 Depr-Transmission-Sandow 4031211 Depr Exp - Transm Substation 4031310 Depr-Dist Substation 4031730 Depn Exp-Transportation Equipm 4031798 Depr-General Plant 4041000 Electric Plant 4081000 FICA 4081100 Federal - Unemployment 4081200 Federal - Superfund 4081300 Federal - Motor Vehicle 4081310 Federal - Motor Vehicle-Credit 4081970 Allocated Taxes FICA - Credit 4081980 Allocated Taxes FUTA - Credit 4081990 Payroll Taxes Allocated 4082100 State - Unemployment 4082200 State Regulat Assessment &Fees 4082400 State - Gross Receipts 4082410 State - Local Gross Receipts 4082500 State - Franchise 4082600 State-Ad Valorem-Current Year 4082650 State-Ad Valorem-Prior Year 4082690 State-Ad Valorem-Non Utility 4082700 State - Use Tax 4082710 State - Use Tax - Misc 4082980 Allocated Taxes SUTA - Credit 4089100 Payroll Taxes Allocated 4091000 Current FIT - Util Oper Income 4091100 State Income Taxes-Oper Income 4092000 Current FIT - Other Income 4092100 State - Income Taxes-Non Oper 4093000 Income Tax Extraordinary Item 4101000 Def FIT - Utility Oper Income 4102000 Def FIT - Other Income 4102100 State - Def Income Tax-NonOper 4103000 Deferred Extraordinary NonOper 4111000 Def FIT - Utility Oper Income 4112000 Def FIT - Non Operating Income 4112100 State - Def Income Tax-NonOper 4114000 Investment Tax Credit 4114100 ITC Adjustments - Utility 4190100 Interest & Dividend Inc-Misc EXHIBIT RKP-1 Page 15 of 16 Account Number Account Description 4190200 Interest Income-Associated Cos 4191000 AFUDC Equity 4210100 Disposition Of Property-Gain 4210200 Disposition Of Property-Loss 4210700 Deferred Incentive Comp 4264500 Lobbying - Other-Non Operating 4264600 Lobbying - PAC - Non Operating 4265700 Salary Deferral Plan 4270000 Interest On Long Term Debt 4271000 Interest On LTD - Other 4272000 First Mortgage Bonds 4272500 Interest on PCRB 4280000 Amort-Debt Discount & Expense 4281000 Amort-Loss On Reacquired Debt 4290500 Capital Securities - Credit 4291000 Amort-Gain Reacq Debt-Credit 4300000 Interest On Debt To Assoc Cos 4310100 Other Interest Expense 4310800 Internal Revenue Service 4321000 AFUDC 4374000 Redemption - Non Mandatory 4378000 Redemption - Mandatory 4378100 Accretions-Mandatory Redemptn 4378500 Amort-Pref Stock-Redemption 4379000 Distributions - Preferred 4379100 Accretions-Preferred Security 4379500 Amort-Pref Security-Redemption 4380200 Distributions - Common 4470000 Transmission Service 4530000 Sales Of Water And Water Power 4542000 RentElec Proprty-Fiber Optics 4549000 RentElec Proprty-Other 4563100 Oth-Transm Fclty Chrg-Tariff 4564000 Oth Rev - Wheeling Charges 45690Q0 Oth Rev - Other 5170000 Oper-Supervision&Engineering 5510000 Maint-Supervision&Engineering 5560000 System Control & Load Dispatch 5570000 Other Expenses 5600000 Supervision & Engineering 5610000 Load Dispatching 5620000 Station Expenses 5630000 Overhead Lines Expenses 5640000 Underground Lines Expenses 5650000 Trans-Electricity By Others EXHIBIT RKP-1 Page 16 of 16 Account Number Account Description 5660000 Misc Transmission Expenses 5670000 Rents 5680000 Maint-Supervision&Engineering 5690000 Maint-Structures 5700000 Maint-Station Equipment 5710000 Maint-Overhead Lines 5720000 Maint-Underground Lines 5730000 Maint-Misc Transmission Plant 5800000 Oper-Supervision&Engineering 5810000 Load Dispatching 5820000 Station Expenses 5830000 Overhead Lines Expenses 5880000 Misc Distribution Expenses 5890000 Rents 5900000 Maint-Supervision&Engineering 5910000 Maint-Structures 5920000 Maint-Station Equipment 5930000 Maint-Overhead Lines 5940000 Maint-Underground Lines 5970000 Maint-Meters 5980000 Maint-Misc Distribution Plant 9030000 Customer Records & Collections 9040000 Uncollectible Accounts 9080000 Customer Assistance Expense 9090000 Inform_Instruct Adver Exp 9100000 Misc Cust Serv & Info Exp 9200000 Administrative & Gen Salaries 9210000 Office Supplies & Expenses 9220000 Administrative Exp-Transferred 9230000 Outside Services Employed 9240000 Property Insurance 9250000 Injuries & Damages - Insurance 9260000 Employee Pensions & Benefits 9280000 Regulatory Commission Expense 9301000 General Advertising Expenses 9302000 Misc General Expenses 9310000 Rents-Administrative & General 9350000 Maint-General Plant-Elec

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EXHIBIT RKP-2 Page 1 of 19 TXU ELECTRIC COMPANY PROPOSED CHART OF ACCOUNTS DISTRIBUTION DIVISION EXHIBIT RKP-2 Page 2 of 19 TXU ELECTRIC COMPANY PROPOSED CHART OF ACCOUNTS DISTRIBUTION DIVISION Account Number Account Description 1010300 IS-Distribution System 1010301 Distribution Fee Land 1010310 IS-Distribution-Substation 1010700 IS-Gen Plant-Fee Land 1010730 IS-Transportation Equipment 1010798 IS-General Plant 1010900 IS-Intangible Plant 1051000 Property Held For Future Use 1060300 CCNC-Distribution System 1060700 CCNC-Gen Pint-Land

.1060730 CCNC-Transportation Equipment 1060798 CCNC-General Plant 1070000 Construction Work In Progress 1079000 Construction-Credit to Plant 1080000 APFD-Labor 1080300 RWIP-Distribution System 1080301 Non Depr-Distribution 1080700 Non Depr - General Plant 1080730 RWIP-Transportation Equipment 1080790 RWIP-Miscellaneous Equipment 1080798 RWIP-General Plant 1081300 APFD-Distribution System 1081301 Non Depr-Distribution 1081700 Non Depr - General Plant 1081730 APFD-Transportation Equipment 1081790 APFD-Miscellaneous Equipment 1081798 APFD-General Plant 1082300 Retir - Distribution System 1082301 Retir- Non Depr-Distribution 1082700 Retir-Non Depr - General Plant 1082730 Retir-Transportation Equipment 1082798 Retir - General Plant 1083300 Salv - Distribution System 1083301 SaIv - Non Depr - Distribution 1083700 Salv- Non Depr - General Plant 1083730 Salv- Transportation Equipment 1083798 Salv - General Plant 1084300 Oth Rec - Distribution System 1084301 Oth Rec- Non Depr-Distribution 1084700 Oth Rec-Non Depr-General Plant EXHIBIT RKP-2 Page 3 of 19 Account Number Account Description 1084730 Oth Rec-Transportation Equipme 1084798 Oth Rec - General Plant 1111000 Amortization - Plant 1113000 Amortization - Other 1210000 Nonutility Property 1241100 Stocks 1241200 Other - Misc Investments 1241300 Note Receivable - Non Current 1243010 Deferred Compensation Plan 1243020 D&I Company Matching 1243030 D&I Company Incentive Award 1243200 Split $ Life Ins 1243300 Supplemental Retirement Plan 1245100 Salary Deferral-7 Year Option 1245200 Salary Deferral - Retirement 1245500 Salary Deferral-7Yr Foundation 1245600 Salary Defer-Retire Foundation 1282000 OSF-Certificate Of Deposit 1310000 Cash-Chase Bank of TX-Pre FIM 1317411 Cash-First Texas Bank-1 060155 1317412 Cash-lstNat Bk Killeen-1168061 1317415 Cash-Union State Bank-27000710 1317416 Cash-Heights State Bk-1 168004 1317501 Cash-Citibank New York 7501 1317502 Cash-Chase-4500 COF Depository 1317503 Cash-NationsBank-4375-3rdParty 1317504 Cash-Nations4525-Concentration 1317505 Cash-NationsBank Dallas 7505 1317506 Cash-Nations-331 1-COF Deposit 1317508 Cash-Chase Manhattan-0158-EDI 1317509 Cash-NationsBank of Texas 7509 1317510 Cash-Chase-9791-Misc AR 1317511 Cash - Nations CIS 511 1317512 Cash - Chase CIS_512 1317520 Cash-Chase Manhattan-0867 1317521 Cash-NationsBank Wichita Falls 1317524 Cash-Team Bank 7524 1340000 Other Special Deposits 1350300 Relocation Advances 1350700 Travel Advances 1354000 Working Funds-Petty Cash 1359900 Working Funds-Other 1362000 TCI-Prime Commercial Paper 1410000 Notes Receivable-Current 1419000 Notes Rec AR Module Only EXHIBIT RKP-2 Page 4 of 19 Account Number Account Description 1420000 Customer Accounts Receivable 1421000 Electric-CIS 1423000 Sale of Electric Receivables 1428000 Customer AR Split To RP 1429000 Customer Rec AR Module Only 1430100 Other Misc Accounts Receivable 1430300 Claims 1431000 Payroll Deduction - Other 1431060 Energy Conservation 1431097 A_R - Retirees 1431098 Employees-Former 1431099 Employees 1431110 Appliances 1431600 Payroll Advances 1432100 Alcoa-Sandow 1432200 AmericanExpress-Customer Accts 1432300 Returns & Shipping Orders 1432400 Returned Bank Items 1432500 Customer Refund Forgery 1432600 Wheeling 1438000 Customer AR Split To C&C 1439000 Misc Rec AR Module Only 1440000 Uncollectible Accounts-Credit 1440100 Uncollectible Accounts-Misc 1440200 Sale Of Car-Credit 1460000 A_R - Associated Companies 1545000 Materials & Supp-PMMS Normal 1545100 Materials & Supp-PMMS Pseudo 1631100 Purchasing & Stores 1632000 Purchasing & Stores-Kitting 1634000 Stores Sales & Use Tax 1638100 Purchasing & Stores-Returns 1638200 Purchase &Store-Freight Claim 1652100 Insurance 1659000 Other Prepayments 1710000 Other Interest &Div Receivble 1719000 Notes Receivable-A R Module 1720000 Rents Receivable 1729000 Rent Rec - AR Module 1730000 Accrued Utility Revenues 1745000 Deposits 1746000 Home Purchase Plan 1821500 Federal - State - FAS 109 1821600 Federal - State - APB 11 1823001 FAS 109-EPIS-Basis Differences EXHIBIT RKP-2 Page 5 of 19 Account Number Account Description 1823002 FAS 109-CWIP-Flow Through 1823004 FAS 109-Software Development 1825100 State - FAS 109 1825200 State - APB 11 1840800 Purch & Stores Cig - Purch Exp 1841200 Transportation-Maintenance 1841210 Special Financing-Outside Svc 1841220 Special Financing-Contra Cr 1841230 Time-Nonprod-Distrb 1841240 Time-Nonprod-Distrb-Cr 1841250 Time-Nonprod-Trn 1841260 Time-Nonprod-Trn-Cr 1841700 Transportation - Hydraul Maint 1841800 Transportation-Credit 1842100 Time-Variable DBU 1842190 Time-Variable DBUClearing 1842400 Time - Non Productive 1842409 Time - Non Productive (Credit) 1851000 Temporary Facilities-Curr Chrg 1860100 Misc Deferred Debit - Other 1861101 Job Order-Rate Case-Gen Exp 1861120 Job Order-Fed Tax Payment 1861130 IBNR - Medical Claims 1861140 IBNR - Dental Claims 1861150 IBNR - Pers Injury Prop Damage 1861350 Reg A - Pre SB & Trans Redir 1861351 Reg A - Stranded Cost Rec-Dist 1861352 Reg A-Str Cost Rec-Distr Sibs 1861353 Reg A-Stran Cost Rec-Trans 1862200 Job Order-Billed-Damages-Curr 1862400 Job Order-Cross Chgs-Labor 1862600 Job Order-Misc-Corp-Curr Chrg 1862700 Job Orders 1862701 Misc-Enserch 1862702 Misc-Corporate Charges 1863100 Suspense-Construction 1864200 Purchase Power - Interchange 1865100 Fuel Rev-OverUnder Coil Fuel 1865200 Fuel Rev-OverUndr Col PCR Rev 1865310 Fuel Rev-lnt Exp OvrUndr Coil 1866100 Subj To Amort-Rate Case Exp 1866200 Subj To Amort-Prudence 1866300 1999 Severance Costs 1866400 Self-Insurance 1866500 Competitive Action Plan Costs

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EXHIBIT RKP-2 Page 6 of 19 Account Number Account Description 1866600 Merger Transition Costs 1868200 DICP-Unamort-Employee Deferral 1868300 DICP-Unamort-Company Match 1868400 DICP-Unamort-Incentive Award 1868510 SDP-Company Match 7 Yr Option 1868520 SDP-Unamort Comatch Retirement 1868550 SDP Unamort Co Match-7Yr Found 1868560 SDP Unamort Co Match Retiree 1868900 Money Pool-Contrib ToFrom 1869000 Miscellaneous Deferred Debits 1869900 Validation Fatals 1881000 Res,Dev&Demo-lntern-Curr 1882000 Res,Dev&Demo-Extern-Curr 1900000 Accum Def Federal Income Tax 1900001 ADFIT-PEP 1900002 ADFIT-Bad Debt Reserve 1900003 ADFIT-Cycle Billing Revenue 1900004 ADFIT-Vacations 1900006 DFIT State - ATL 1900007 ADSIT-FAS 109 1900008 ADFIT-West TexasCPL Revenues 1900010 ADIT - State APB 11 1900011 ADFIT-Other-lnt. Unbill Fuel 1900012 ADFIT-Unbilled Fuel Revenue 1900013 ADFIT-Int on Unbilled Fuel Rev 1901001 ADSIT-Sandow Non Operating 1901002 ADFIT- Non-operating 1901030 ADFIT-PIPD Claims 1902001 ADFIT-Property Insuranc Reserv 1902002 ADFIT-DCIP Amortization 1902003 ADFIT-Stock Incentiv Comp Plan 1902004 ADFIT-LESOP 1902011 AD FIT-Impairment-Utility 1902012 ADFIT-Supplemental Retirement 1902013 ADFIT-Pension Plan 1902014 ADFIT-Deferred Incentive Comp 1902015 ADFIT-Long Term Incentive Plan 1902019 ADFIT-Thrift AccrFund Dif 1902020 ADFIT-Salary Def Plan 7 Yr Opt 1902021 ADFIT-Salary Def Plan Ret Opt 1902023 ADFIT-OPEB and FAS 112 1902025 ADFIT-Provided For Misc Recv 1902031 ADFIT-Non Owner Contributions 1902032 ADFIT-Excess Rev Req Level 1902033 ADFIT-Unamortized ITC

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EXHIBIT RKP-2 Page 7 of 19 Account Number Account Description 1902034 ADFIT-Net Operating Loss 1902035 ADFIT-ALT Minimum Tax 1902038 ADFIT-Business Interuption 1902040 ADFIT-Ins Claims IBNR Accrual 1902052 ADFIT-FederalStateFAS 109 1902053 ADFIT-FederalStateAPB 11 1902054 ADFIT - PIPD Claims 1902055 ADFIT - Pension 1902059 ADFIT-Mitig and Redirctd Depr 1904000 ADFIT-Impairment 1904011 ADFIT - Sandow Non-operating 1904012 ADFIT - Bus. Interruption 1907000 ADSIT-FAS 109 1907001 ADSIT-APB 11 1908000 ADSIT-Non Operating 2011000 Common Stock Issued-Affiliated 2019000 Common Securities Issued 2019110 Trust Fund Contra - DCIP 2019150 Trust Fund Contra - DCAB 2160000 Unappropriated Ret Earnings 2230000 Advances-Associate Cos 2281000 Accum Prov-Property Ins 2281010 Reserve-Charges-Property 2281011 Reserve-Charges-Liability 2281020 Reserve-Charges-Accum Prov 2283000 Supplemental Retirement Plan 2320300 Other Accounts Payable 2321095 AP - Debit Card Relocations 2321097 AP - Retirees 2321099 AP - Employees 2321300 Dividends Payable 2321320 Div Pay-Pref-Direct Deposit 2321900 PED- Loans 2321901 ENSAVE Loans 2321902 PED - Bankruptcy 2321903 PED - Child Support 2321904 PED - Parking 2321905 PED - Dependent Care Plan 2321906 PED - Health Care Plan 2321909 PED - Dependent Life Insurance 2321914 PED - IRS Levy 2321915 PED - Other 2321916 PED - TU PAC 2321917 PED - Union PAC 2321919 PED - Student Loans EXHIBIT RKP-2 Page 8 of 19 Account Number Account Description 2321920 PED - Thrift Plan Collections 2321921 PED - U.S. Savings Bonds 2321922 ENSAVE Plan Collections 2321923 PED - Union Dues 2321924 PED - United Way 2321925 Enserch Parking Deductions 2321926 Uniforms 2322401 Employee Group Life Insurance 2322402 Retiree Dental Insurance 2322403 Retiree Medical Insurance 2323000 Retentions 2324000 Trade Payables &Vouchers 2324100 CIS - Customer Refunds 2324300 Managers Fund - TP&L 2324400 Managers Fund - General 2324600 Managers Fund - Refunds 2324700 Payroll Fund 2325000 Construction Payables 2328900 0_S Checks-Money Pool 2328950 EDI Payments Outstanding 2340000 AP - Associated Companies 2351000 Customer Deposits - Active 2352000 Unclaimed 2361000 FICA - Employer 2361100 Accrd Federal Unemployment Tax 2361200 Superfund 2362100 Accrued State Unemployment Tax 2362200 State Regulat Assessment &Fees 2362400 State - Gross Receipts 2362410 Local - Gross Receipts 2362500 State - Franchise 2362600 State-Ad Valorem-Current Year 2362610 State-Ad Valorem-Prior Year 2362700 State - Other - Full Accrual 2362710 State - Other - State Accrual 2362720 Local - Other - City Accrual 2362730 Local - Other - MTA Accrual 2362740 Local - Other - County Accrual 2362750 Local - Other - SPD Accrual 2363800 FIT - Accrual 2370000 Interest Accrued 2411000 FICA Withheld 2411200 FIT - Withheld - Income Tax 2412000 State-Disability 2412200 SIT Withheld - Income Tax EXHIBIT RKP-2 Page 9 of 19 Account Number Account Description 2412300 IT Withheld - City Income Tax 2412700 State - Other - Accrual 2412710 State - Other - Accrual -State 2412720 State - Other - Accrual - City 2412740 State - Other - Accrual-County 2412800 Sales Tax Collected - CIS Only 2414000 Other Taxes Withheld 2421100 Escheat - Wages 2421160 Escheat - Customer Overpay 2421170 Escheat - Other 2423900 Other Accrued Payables 2424000 Payroll Accrual 2424100 Accrued Incentive Plans 2426000 Energy Aid Program 2428200 General Contractor - Other 2428210 Contractor Accruals-Other 2429300 Corporate Accruals 2429500 Transmission Services 2429900 Other Accrued Liabilities 2531000 IBNR - Medical & Dental Claims 2531010 IBNR - Pers Injury Prop Damage 2531021 Reg Liab Prot Excs DFIT 2532000 Standard Costs Credit - ESD 2533000 Deferred & Incentive Comp 2533060 Restictive Stock Award 2533100 OPEB-Group Life Insurance 2533110 OPEB-Group Life-Pint to Trust 2533111 OPEB-Group Life-Pint to Key Emp 2533120 OPEB-Group Life Ins Accrual 2533200 OPEB-Group Health Insurance 2533210 OPEB-Group HIth-Pmt to Trust 2533211 OPEB-Group Hith-Pmt to Key Emp 2533220 OPEB-Group Health Ins Accrual 2533300 Retirement Plan 2533400 Supplemental Retirement Plan 2533500 Obeps - Fas 112 2534000 Leveraged ESOP 2535100 Salary Deferral-7 Year Option 2535200 Salary Deferral-Retirement 2535300 Salary Deferral-Retire Annuity 2535400 Salary Deferral-Enserch Plan 2535500 Salary Deferral-7Yr Foundation 2535600 Salary Defer-Retire Foundation 2535650 Salary Def Reitree Annuity Fou 2535700 Salary Deferral-7 Yr Emerg Bus

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EXHIBIT RKP-2 Page 10 of 19 Account Number Account Description 2535800 Salary Def-Retir Opt Emerg Bus 2536000 Energy Reserve Account - ALCOA 2538000 CIS - Customer Deposits Billed 2538200 Pole Contact Rentals 2539000 Other Deferred Credits 2539010 Deferred Liability 2539020 Deferred Liability-Unamortized 2539200 Oth Def CR-Fuel Refund-Princip 2540001 FAS 109 - Unamortized ITC 2540003 Nonstat Excess DFIT 2541001 Excess DFIT 2541002 Excess Rev Req Level 2541003 FAS 109 - Unamortized ITC 2541350 Reg Liab - Mitigation 2541351 Reg L-Stranded Cost Rec-Distr 2541352 Reg L-Strand Cost Rec-D Subs 2541353 Reg L-Stran Cost Rec-Tr 2541520 FAS 109 - Federal - State 2541530 APB 11 - Federal - State 2543000 FAS 109 - Unamortized ITC 2543003 FAS 109 - Unamortized ITC 2545100 FAS 109 - State 2545200 APB 11 - State 2546600 1997 Merger Transition Costs 2551000 Accumulated Deferred ITC 2553000 Rate Base Amortization 2821030 ADFIT-PIPD-Regulatory Asset 2822000 ADFIT-Other Property 2822001 ADFIT-Liberalized Depreciation 2822002 ADFIT-CWIP-Basis Difference 2822005 ADFIT-Nuclear Fuel Basis Diff 2822007 ADFIT-Connection Fees 2822011 ADFIT-Oth Software DevelopCost 2822012 ADFIT-Misc Intangible Plant 2822015 AD FIT-F1 09-EPIS-Flow Through 2822016 ADFIT-F109-CWI P-Flow Through 2822018 ADFIT-FI09-Software Developmnt 2822021 ADFIT-FAS 109-Federal & State 2822022 ADFIT-APB 11-Federal & State 2822023 ADFIT-InterCo Transf GainLoss 2822024 ADFIT-Dases Busi Interptn Note 2824000 ADFIT- Non-operating 2824001 ADFIT-DASES Installment Sale 2827000 ADSIT-FAS 109-State 2827001 ADSIT-APB 11-State

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EXHIBIT RKP-2 Page 11 of 19 Account Number Account Description 2828000 ADSIT-Sandow 2830000 Accum Defd Federal Income Tax 2830010 ADFIT - Property Tax Accrual 2831000 ADFIT-Other-Int Unbill Fuel 2832000 AD FIT-Other 2832001 ADFIT-Section 263A Items 2832002 ADFIT-Other Regulatory Expense 2832004 ADFIT-Oth Unbilled PCR Revenue 2832005 Interest on Unbilled Fuel Rev 2832006 ADFIT-Early RetireSeverance 2832007 ADFIT-Debt Recal Premium & Exp 2832013 ADFIT-CAP Costs 2832029 ADFIT - Other 2832031 ADFIT-1999 Enh Emp Separ Prog 2832032 ADFIT-Redirected Depreciation 2834006 ADSIT-Non Operating 2835500 ADFIT-IBNR - Regulatory Asset 2837100 ADFIT-Merger ERPVSP 3003000 Labor Accruals-Rwip 3007000 Labor Accruals-Cwip 3030000 Intangible 3032000 Intangible-Retire 3037000 Intangible-Additions 3040000 Land &Land Rights 3050000 Structures 3480000 Construction Overhead 3487000 Construction Overhead 3600000 Dist Land Rights 3602000 Dist Land Rights-Retirements 3607000 Dist Land Rights-Additions 3620000 Station Equiptment 3640000 PolesTowers & Fix 3642000 Poles,Towers & Fix-Retirements 3643000 PolesTowers & Fix-Removal 3644000 Poles,Towers & Fix-Salvage 3646000 Poles,Towers & Fix-Oth Recov 3647000 PolesTowers & Fix-Additions 3650000 Ovhead CondDev 3652000 Ovhead CondDev-Retirements 3653000 Ovhead CondDev-Removal 3654000 Ovhead CondDev-Salvage 3656000 Ovhead CondDev-Oth Recov 3657000 Ovhead CondDev-Additions 3660000 Undg Conduit 3662000 Undg Conduit-Retirements

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EXHIBIT RKP-2 Page 12 of 19 Account Number Account Description 3663000 Undg Conduit-Removal 3664000 Undg Conduit-Salvage 3666000 Undg Conduit-Oth Recov 3667000 Undg Conduit-Additions 3670000 Undg Conduct & Dev 3672000 Undg Conduct & Dev-Retirements 3673000 Undg Conduct & Dev-Removal 3674000 Undg Conduct & Dev-Salvage 3676000 Undg Conduct & Dev-Oth Recov 3677000 Undg Conduct & Dev-Additions 3680000 Line Tmsfrmr 3682000 Line Trnsfrmr-Retirements 3683000 Line Trnsfrmr-Removal 3684000 Line Trnsfrmr-Salvage 3686000 Line Tmsfrmr-Oth Recov 3687000 Line Tmsfrmr-Additions 3690000 Services 3692000 Services-Retirements 3693000 Services-Removal 3694000 Services-Salvage 3696000 Services-Oth Recov 3697000 Services-Additions 3700000 Meters 3702000 Meters-Retirements 3703000 Meters-Removal 3704000 Meters-Salvage 3706000 Meters-Oth Recov 3707000 Meters-Additions 3710000 Instl On Cust Prem 3712000 Instl On Cust Prem-Retirements 3713000 Instl On Cust Prem-Removal 3714000 Instl On Cust Prem-Salvage 3716000 Instl On Cust Prem-Oth Recov 3717000 Instl On Cust Prem-Additions 3730000 St Light-Signal Sys 3732000 St Light-Signal Sys-Retirement 3733000 St Light-Signal Sys-Removal 3734000 St Light-Signal Sys-Salvage 3736000 St Light-Signal Sys-Oth Recov 3737000 St Light-Signal Sys-Additions 3740000 Land In Fee 3742000 Land In Fee-Retire 3743000 Land In Fee-Removal 3746000 Land In Fee-Oth Rec 3747000 Land In Fee-Additions EXHIBIT RKP-2 Page 13 of 19 Account Number Account Description 3857000 Afudc 3867010 CIAC-Difference In Cost 3867020 CIAC-Revenue Deficiency 3867030 CIAC-Revenue Deficiency 3867040 Ciac-Non Standard Service 3867041 CIAC-Steel Street Light Poles 3867050 Ciac-Other 3867100 CIAC-Temp Serv(12 MthsLonger) 3867200 Ciac-Damages To Company Prop.

3867301 Ciac-Non GvrmtI-RemovalReloc 3867302 Ciac-Gvrmtl-RemovalRelocation 3867401 CIAC-Sale Of Facil.-SWBT Co.

3867402 Ciac-Sale Of Facilities (Oth) 3867500 Ciac-Other 3867601 Ciac-Contributed Materials 3867602 CIAC-Contributed Labor 3867603 CIAC-Donated Facilities 3867701 Ciac-Contributed Materials 3867702 CIAC-Contributed Labor 3870000 Other Equip 3880000 Land Owned In Fee 3882000 Land Owned In Fee-Retire 3883000 Land Owned In Fee-Removal 3886000 Land Owned In Fee-Oth Rec 3887000 Land Owned In Fee-Additions 3890000 Land Rights 3892000 Land Rights-Retirements 3893000 Land Rights-Removal Cost 3894000 Land Rights-Salvage 3896000 Land Rights Other Recoveries 3897000 Land Rights-Additions 3900000 Struc & Improv 3902000 Struc & Improv-Retire 3903000 Struc & Improv-Removal 3904000 Struc & Improv-SaIv 3906000 Struct & Improv-Oth Rec 3907000 Struc & Improv-Additions 3910000 Fum & Equip 3912000 Fum & Equip-Retire 3913000 Furn & Equip-Removal 3914000 Furn & Equip-Salv 3916000 Furn & Equip-Oth Rec 3917000 Furn & Equip-Additions 3920000 Transp Equip 3922000 Transp Equip-Retire EXHIBIT RKP-2 Page 14 of 19 Account Number Account Description 3923000 Transp Equip-Removal 3924000 Transp Equip-Salvage 3926000 Transp Equip-Oth Rec 3927000 Transp Equip-Additions 3930000 Stores Equip 3932000 Stores Equip-Retire 3933000 Stores Equip-Removal 3934000 Stores Equip-SaIv 3936000 Stores Equip-Oth Rec 3937000 Stores Equip-Additions 3940000 Tool_ShopGar Eqpt 3942000 Tool_ShopGar Eqpt-Retirements 3943000 ToolShopGar Eqpt-Removal 3944000 ToolShopGar Eqpt-Salvage 3946000 Tool_ShopGar Eqpt-Oth Recov 3947000 ToolShopGar Eqpt-Additions 3950000 Lab Equip 3952000 Lab Equip Retire 3953000 Lab Equip-Removal 3954000 Lab Equip-Salvage 3956000 Lab Equip-Other Recover 3957000 Lab Equip-Additions 3960000 Power Oper Equip 3962000 Power Oper Equip-Retire 3963000 Power Oper Equip Removal 3964000 Power Oper Equip-Salvage 3966000 Power Oper Equip-Oth Recov 3967000 Power Oper Equip Additions 3970000 Commun Eqpt 3972000 Commun Eqpt-Retirements 3973000 Commun Eqpt-Removal 3974000 Commun Eqpt-Salv 3976000 Commun Eqpt-Oth Rec 3977000 Commun Eqpt-Additions 3980000 Misc Equipment 3982000 Misc Equipment-Retire 3983000 Misc Equipment-Removal 3984000 Misc Equipment-Salv 3986000 Misc Equipment-Oth Rec 3987000 Misc Equipment-Additions 3990000 Misc General Plant 3990002 Other Tangible 3992000 Misc General Plant-Retirements 3992002 Other Tangible-Retirement 3993000 Misc General Plant-Removal EXHIBIT RKP-2 Page 15 of 19 Account Number Account Description 3993002 Other Tangible-Removal 3994000 Misc General Plant-Salvage 3994002 Other Tangible-Salv 3996000 Misc General Plant-Oth Rec 3996002 Other Tangible-Oth Rec 3997000 Misc General Plant-Additions 3997002 Other Tangible-Additions 4030300 Depr-Distribution System 4030310 Depr-Dist Substation 4030798 Depr-General Plant 4031300 Depr-Distribution System 4031730 Depn Exp-Transportation Equipm 4031798 Depr-General Plant 4041000 Electric Plant 4081000 FICA 4081100 Federal - Unemployment 4081200 Federal - Superfund 4081300 Federal - Motor Vehicle 4081310 Federal - Motor Vehicle-Credit 4081970 Allocated Taxes FICA - Credit 4081980 Allocated Taxes FUTA - Credit 4081990 Payroll Taxes Allocated 4082100 State - Unemployment 4082200 State Regulat Assessment &Fees 4082400. State - Gross Receipts 4082410 State - Local Gross Receipts 4082500 State - Franchise 4082600 State-Ad Valorem-Current Year 4082650 State-Ad Valorem-Prior Year 4082690 State-Ad Valorem-Non Utility 4082700 State - Use Tax 4082710 State - Use Tax - Misc 4082980 Allocated Taxes SUTA - Credit 4089100 Payroll Taxes Allocated 409T000 Provision for Contingency 409T001 Dividend Paid Credit 4091000 Current FIT - Util Oper Income 4091100 State Income Taxes-Oper Income 4092000 Current FIT - Other Income 4092100 State - Income Taxes-Non Oper 4093000 Income Tax Extraordinary Item 4101000 Def FIT - Utility Oper Income 4102000 Def FIT - Other Income 4102100 State - Def Income Tax-NonOper 4103000 Deferred Extraordinary NonOper

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EXHIBIT RKP-2 Page 16 of 19 Account Number Account Description 4111000 Def FIT - Utility Oper Income 4112000 Def FIT - Non Operating Income 4112100 State - Def Income Tax-NonOper 4114000 Investment Tax Credit 4114100 ITC Adjustments - Utility 4150100 Merchandising 4160000 Costs - MerchJobbingContract 4190100 Interest & Dividend Inc-Misc 4190200 Interest Income-Associated Cos 4191000 AFUDC Equity 4210100 Disposition Of Property-Gain 4210200 Disposition Of Property-Loss 4210300 Other Misc Nonoperating Income 4210700 Deferred Incentive Comp 4263000 Penalties 4264000 Expenditures-Other Activities 4264100 Pac 4264500 Lobbying - Other-Non Operating 4264600 Lobbying - PAC - Non Operating 4265000 Other Deductions - Dues 4265500 Other Deductions-Non Operating 4265700 Salary Deferral Plan 4270000 Interest On Long Term Debt 4271000 Interest On LTD - Other 4272000 First Mortgage Bonds 4272500 Interest on PCRB 4280000 Amort-Debt Discount & Expense 4281000 Amort-Loss On Reacquired Debt 4290500 Capital Securities - Credit 4291000 Amort-Gain Reacq Debt-Credit 4300000 Interest On Debt To Assoc Cos 4310100 Other Interest Expense 4310300 Customer Deposits 4310500 Customer Overbillings 4310800 Internal Revenue Service 4310900 Over Under Coil Fuel Revenue 4321000 AFUDC 4374000 Redemption - Non Mandatory 4378000 Redemption - Mandatory 4378100 Accretions-Mandatory Redemptn 4378500 Amort-Pref Stock-Redemption 4379000 Distributions - Preferred 4379100 Accretions-Preferred Security 4379500 Amort-Pref Security-Redemption 4380200 Distributions - Common EXHIBIT RKP-2 Page 17 of 19 Account Number Account Description 4401000 Residential Sales - Base Rate 4402000 Residential Sales - Fuel 4403000 Residential Sales - PCR 4409000 Green Pwr Sales-Fuel-memo acct 4409001 Gm Pwr Sal Contra-Fuel-mem ac 4421100 Commercial Sales - Base Rate 4421200 Commercial Sales - Fuel 4421300 Commercial Sales - PCR 4422100 Industrial Sales - Base Rate 4422110 Industrial Sales - Sandow-Base 4422200 Industrial Sales - Fuel 4422210 Industrial Sales - Sandow-Fuel 4422300 Industrial Sales - PCR 4441000 Public St & Hwy Light - Base 4442000 Public St & Hwy Light - Fuel 4443000 Public St & Hwy Light - PCR 4451000 Other Sales - Base Rate 4452000 Other Sales - Fuel 4453000 Other Sales - PCR 4470000 Transmission Service 4471000 Resale - Base Rate 4472000 Resale - Fuel 4473000 Resale - PCR 4474100 Resale - Off Sys-invest Own 4474200 Resale - Off Sys-Cooperatives 4474300 Resale - Off Sys-Municipality 4474400 Resale - Off Sys-Other 4474900 Resale - 10% Revenue Retention 4500000 Forfeited Discounts 4510000 Miscellaneous Service Revenues 4530000 Sales Of Water And Water Power 4541000 RentElec Proprty-Pole Contact 4542000 RentElec Proprty-Fiber Optics 4549000 RentElec Proprty-Other 4561000 Oth Rev - OverUnder CoUl 4561350 Mitigated Base Rate Revenue 4561351 Rev Contra-Stran Cost Rec-Dist 4561352 Rev-Stranded Cost Recovery-Dis 4561353 Rev Contra-Str Cost Rec-D Subs 4561354 Rev-Stranded Cost Rec-D Subs 4561355 Rev Contra-Str Cost Rec-Trans 4561356 Rev-Stran Cost Rec-Trans 4561700 Oth Rev - Unbill Fuel Refunded 4561800 Oth Rev - Unbill Fuel - PCR 4564000 Oth Rev - Wheeling Charges

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EXHIBIT RKP-2 Page 18 of 19 Account Number Account Description 4564100 Other Rev-Unplanned Losses 4564200 Other Revenue - Planned Losses 4566000 Oth Rev - Unbilled Revenue 4569000 Oth Rev - Other 5011100 Oper-Fuel-Lignite-Boiler Fuel 5011121 Oper-Fuel-Coal-Boiler Fuel 5011200 Fuel Handling Expense 5011400 AshResidual Disposal 5011500 Fuel Treatment Expense 5011600 Ignition_Gas-Fuel 5011700 Ignition Oil-Fuel 5011800 IgnitionOil-Fuel 5012100 Oper-Fuel-Gas-Boiler Fuel 5012200 Oper-Fuel-Gas-Other 5013100 Oper-Fuel-Oil-Boiler Fuel 5013200 Oper-Fuel-OiI-Other 5100000 Maint-Supervision&Engineering 5180000 Oper-Nuclear Fuel Expense 5471100 Gas Purchase-Nonassociated 5472100 Oper-Fuel-Oil-Engine Fuel 5472200 Oper-Fuel-Oil-Other 5500000 Rents 5510000 Maint-Supervision&Engineering 5520000 Maint-Structures 5530000 Maint-Generating & Elect Plant 5540000 Maint-Misc Oth Power Gener PIt 5550000 Purchased Power 5560000 System Control & Load Dispatch 5570000 Other Expenses 5600000 Supervision & Engineering 5650000 Trans-Electricity By Others 5651000 Trans - Planned Losses 5660000 Misc Transmission Expenses 5680000 Maint-Supervision&Engineering 5700000 Maint-Station Equipment 5710000 Maint-Overhead Lines 5730000 Maint-Misc Transmission Plant 5800000 Oper-Supervision&Engineering 5810000 Load Dispatching 5820000 Station Expenses 5830000 Overhead Lines Expenses 5840000 Underground Lines Expenses 5850000 Street Light & Signal System 5860000 Meter Expenses 5870000 Customer Installation Expenses

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EXHIBIT RKP-2 Page 19 of 19 Account Number Account Description 5880000 Misc Distribution Expenses 5890000 Rents 5900000 Maint-Supervision&Engineering 5910000 Maint-Structures 5920000 Maint-Station Equipment 5930000 Maint-Overhead Lines 5940000 Maint-Underground Lines 5950000 Maint-Line Transformers 5960000 Maint-Street Light & Signal 5970000 Maint-Meters 5980000 Maint-Misc Distribution Plant 9010000 Supervision-Customer Accounts 9020000 Meter Reading Expenses 9030000 Customer Records &Collections 9040000 Uncollectible Accounts 9070000 Supervision 9080000 Customer Assistance Expense 9090000 Inform Instruct Adver Exp 9100000 Misc Cust Serv & Info Exp 9110000 Supervision-Sales Activities 9120000 Demonstrating & Selling Exp 9130000 Advertising Expense 9160000 Miscellaneous Sales Expense 9170000 Sales Expenses (Nonmajor Only) 9200000 Administrative & Gen Salaries 9210000 Office Supplies & Expenses 9220000 Administrative Exp-Transferred 9230000 Outside Services Employed 9240000 Property Insurance 9250000 Injuries & Damages - Insurance 9260000 Employee Pensions & Benefits 9280000 Regulatory Commission Expense 9301000 General Advertising Expenses 9302000 Misc General Expenses 9310000 Rents-Administrative & General 9350000 Maint-General Plant-Elec EXHIBIT RKP-3 Page 1 of 20 PROPOSED CHART OF ACCOUNTS POWER GENERATION COMPANY EXHIBIT RKP-3 Page 2 of 20 TXU ELECTRIC COMPANY PROPOSED CHART OF ACCOUNTS POWER GENERATION DIVISION Account Number Account Description 1010100 IS-Gas &Oil-Electric Plants 1010101 IS-Land in Fee Gas/Oil Prod 1010110 IS-Lignite-Electric Plants 1010111 IS-Land in Fee Lig Prod 1010112 In Service - Lignite - Sandow 1010113 IS - Sandow Land 1010120 IS-Nuclear-Electric Plants 1010121 Reserve Reg Disallowance 1010122 IS-Nuclear-Elec Pints-Land 1010130 IS-Other-Electric Plants 1010700 IS-Gen Plant-Fee Land 1010730 IS-Transportation Equipment 1010798 IS-General Plant 1010800 Inservice Lignite Reserves 1010900 IS-Intangible Plant 1060100 CCNC-Gas & Oil-Electric Plants 1060101 CCNC-Fee Land Gas/Oil Prod 1060110 CCNC-Lignite-Electric Plants 1060111 CCNC-Lignite-Elect Plants-Land 1060112 CCNC-Lignite - Sandow 1060113 CCNC - Sandow Land 1060120 CCNC-Nuclear 1060130 CCNC-Other-Electric Plants 1060730 CCNC-Transportation Equipment 1060798 CCNC-General Plant 1060800 CCNC-Lignite Reserves 1070000 Construction Work In Progress 1079000 Construction-Credit to Plant 1080100 RWIP-Gas &Oil 1080101 Non Depr - Gas & Oil 1080110 RWIP-Lignite 1080111 Non Depr - Lignite 1080112 RWIP-Lignite-Sandow 1080113 Removal Cost Sandow Land 1080120 RWIP-Nuclear 1080122 Non Depr-Nuclear 1080123 RWIP-Trans Related-Nuclear 1080124 RWIP-Dist Substa Related-Nuclr 1080125 RWIP-Distrib Related-Nuclear 1080126 Depr-Mitigated Accrual

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EXHIBIT RKP-3 Page 3 of 20 Account Number Account Description 1080130 RWIP-Other 1080700 Non Depr - General Plant 1080730 RWIP-Transportation Equipment 1080798 RWIP-General Plant 1080810 Depletion-Lignite Resources 1080820 Depletion-Lignite Fee Resource 1080830 Depletion-Lignite AdvRoyalties 1080900 RWIP-Intangible 1080901 Decommission _ Mine Closing 1081100 APFD-Gas & Oil 1081101 Non Depr - Gas &Oil 1081110 APFD-Lignite 1081112 APFD-Lignite-Sandow 1081120 APFD-Nuclear 1081123 APFD-Trans Related-Nuclear 1081124 APFD-Dist Substa Related-Nucir 1081125 APFD-Distrib Related-Nuclear 1081126 Depr-Mitigated Accrual 1081130 APFD-Other 1081700 Non Depr - General Plant 1081730 APFD-Transportation Equipment 1081798 APFD-General Plant 1081800 Lignite Reserves Retirement 1081900 APFD-Intangible 1082100 Retir - Gas &Oil 1082101 Retir- Non Depr- Gas & Oil 1082110 Retir - Lignite 1082111 Retir - Non Depr - Lignite 1082112 Retir - Lignite - Sandow 1082113 Retirements Sandow Land 1082120 Retir - Nuclear 1082122 Retir - Non Depr- Nuclear 1082130 Retir - Other 1082700 Retir-Non Depr - General Plant 1082730 Retir-Transportation Equipment 1082798 Retir - General Plant 1082800 Retir - Lignite Reserves 1082900 Retir - Intangible 1083100 Salv - Gas & Oil 1083101 Salv - Non Depr - Gas & Oil 1083110 Salv - Lignite 1083111 Salv - Non Depr - Lignite 1083112 Salv - Lignite - Sandow 1083113 Salvage Sandow Land 1083120 Saiv - Nuclear EXHIBIT RKP-3 Page 4 of 20 Account Number Account Description 1083122 Salv - Non Depr - Nuclear 1083130 Salv - Other 1083700 Salv- Non Depr - General Plant 1083730 Salv- Transportation Equipment 1083798 SaIv - General Plant 1084100 Oth Rec - Gas & Oil 1084101 Oth Rec - Non Depr - Gas & Oil 1084110 Oth Rec - Lignite 1084111 Oth Rec - Non Depr - Lignite 1084112 Oth Rec - Lignite - Sandow 1084113 Other Recoveries Sandow Land 1084120 Oth Rec - Nuclear 1084122 Oth Rec - Non Depr - Nuclear 1084130 Oth Rec - Other 1084700 Oth Rec-Non Depr-General Plant 1084730 Oth Rec-Transportation Equipme 1084798 Oth Rec - General Plant 1111000 Amortization - Plant 1113000 Amortization - Other 1201000 NF-I P-Refine,Conv, Enrich,Fab 1202000 NF-IP-Mat &Assem-Stk 1203000 NF-IP-Assembly In Reactor 1203100 NF-lp-Assem-Resv Reg Disallow 1204000 NF-IP-Spent Nuclear Fuel 1204100 NF-IP-Spent NF-Rsv Reg Disallw 1205000 NF-IP-APFA Nuclear Fuel 1205100 NF-IP-APFA-Assem Rsv Reg Disal 1210000 Nonutility Property 1241300 Note Receivable - Non Current 1243010 Deferred Compensation Plan 1243020 D&I Company Matching 1243030 D&I Company Incentive Award 1243200 Split $ Life Ins

'1243300 Supplemental Retirement Plan 1245100 Salary Deferral-7 Year Option 1245200 Salary Deferral - Retirement 1245500 Salary Deferral-7Yr Foundation 1245600 Salary Defer-Retire Foundation 1281000 OSF-Brazos River Authority 1281100 OSF-BRA Construction 1281200 OSF-SRA Construction 1284000 OSF-Decommissioning CPSES 1310000 Cash-Chase Bank of Texas 1317411 Cash-First Texas Bank-1 060155 1317412 Cash-1 stNat Bk Killeen-1 168061

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EXHIBIT RKP-3 Page 5 of 20 Account Number Account Description 1317415 Cash-Union State Bank-27000710 1317416 Cash-Heights State Bk-1 168004 1317501 Cash-Citibank New York 7501 1317502 Cash-Chase-4500 COF Depository 1317503 Cash-NationsBank-4375-3rdParty 1317504 Cash-Nations4525-Concentration 1317505 Cash-NationsBank Dallas 7505 1317506 Cash-Nations-331 1-COF Deposit 1317508 Cash-Chase Manhattan-0158-EDI 1317509 Cash-NationsBank of Texas 7509 1317510 Cash-Chase-9791-Misc AR 1317511 Cash - Nations CIS 511 1317512 Cash - Chase CIS_512 1317520 Cash-Chase Manhattan-0867 1317521 Cash-NationsBank Wichita Falls 1317524 Cash-Team Bank 7524 1350100 Agents & Managers 1350300 Relocation Advances 1350700 Travel Advances 1354000 Working Funds-Petty Cash 1410000 Notes Receivable-Current 1419000 Notes Rec AR Module Only 1420000 Customer Accounts Receivable 1429000 Customer Rec AR Module Only 1430100 Other Misc Accounts Receivable 1430300 Claims 1431000 Payroll Deduction - Other 1431060 Energy Conservation 1431097 AR - Retirees 1431098 Employees-Former 1431099 Employees 1431110 Appliances 1431600 Payroll Advances 1432100 Alcoa-Sandow 1432300 Returns & Shipping Orders 1439000 Misc Rec AR Module Only 1460000 AR - Associated Companies 1511000 Lignite Excluding Sandow 1512000 Western Coal 1513000 Fuel Oil 1542000 Materials &Supplies-Non PMMS 1545000 Materials & Supp-PMMS Normal 1545100 Materials & Supp-PMMS Pseudo 1631100 Purchasing & Stores 1634000 Stores Sales & Use Tax

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EXHIBIT RKP-3 Page 6 of 20 Account Number Account Description 1638100 Purchasing & Stores-Returns 1638200 Purchase & Store-Freight Claim 1652100 Insurance 1659000 Other Prepayments 1719000 Notes Receivable-AR Module 1720000 Rents Receivable 1729000 Rent Rec - A_R Module 1746000 Home Purchase Plan 1821500 Federal - State - FAS 109 1821600 Federal - State - APB 11 1822010 Martin Lake 4 - Recoverable 1822020 Martin Lake 4 - Write-Off 1823001 FAS 109-EPIS-Basis Differences 1823002 FAS 109-CWIP-Flow Through 1823003 FAS 109-MLSES#4 1823004 FAS 109-Software Development 1823005 FAS 109-Lignite Reserves 1823006 FAS 109-Nuclear Fuel - Reactor 1823100 DOE Decommissioning Fund 1825100 State - FAS 109 1825200 State - APB 11 1840800 Purch &Stores Clg - Purch Exp 1841100 Transportation-Fuel 1841200 Transportation-Maintenance 1841240 Time-Nonprod-Distrb-Cr 1841260 Time-Nonprod-Trn-Cr 1841400 Transportation-Lease & Rental 1841800 Transportation-Credit 1842100 Time-Variable DBU 1842200 Time-Variable - Direct-Labor 1842300 Time-Variable - Indirect-Labor 1860100 Misc Deferred Debit - Other 1861101 Job Order-Rate Case-Gen Exp 1861102 Job Order-Rate Case-Prud Exp 1861120 Job Order-Fed Tax Payment 1861130 IBNR - Medical Claims 1861140 IBNR- Dental Claims 1861150 IBNR - Pers Injury Prop Damage 1862200 Job Order-Billed-Damages-Curr 1862400 Job Order-Cross Chgs-Labor 1862600 Job Order-Misc-Corp-Curr Chrg 1862700 Job Orders 1866100 Subj To Amort-Rate Case Exp 1866200 Subj To Amort-Prudence 1866300 1999 Severance Costs EXHIBIT RKP-3 Page 7 of 20 Account Number Account Description 1866400 Self-Insurance 1866500 Competitive Action Plan Costs 1866600 Merger Transition Costs 1866800 Advance Notice 1866900 Subj To Amort-Other 1866901 Subj To Amort-Resv Reg Disall 1868200 DICP-Unamort-Employee Deferral 1868300 DICP-Unamort-Company Match 1868400 DICP-Unamort-lncentive Award 1868510 SDP-Company Match 7 Yr Option 1868520 SDP-Unamort Comatch Retirement 1868550 SDP Unamort Co Match-7Yr Found 1868560 SDP Unamort Co Match Retiree 1868900 Money Pool-Contrib ToFrom 1869000 Miscellaneous Deferred Debits 1869900 Validation Fatals 1881000 Res,Dev&Demo-Intern-Curr 1882000 Res, Dev&Demo-Extem-Curr 1900000 Accum Def Federal Income Tax 1900001 ADFIT-PEP 1900002 ADFIT-Bad Debt Reserve 1900003 ADFIT-Cycle Billing Revenue 1900005 ADFIT-Nuclear Outage Expense 1900006 DFIT State - ATL 1900007 ADSIT-FAS 109 1900008 ADFIT-West TexasCPL Revenues 1900010 ADIT - State APB 11 1900011 ADFIT-Other-Int. Unbill Fuel 1900012 ADFIT-Unbilled Fuel Revenue 1900013 ADFIT-Int on Unbilled Fuel Rev 1901000 ADFIT-Impairment-Cancel Fee-FG 1901001 ADSIT-Sandow Non Operating 1901002 ADFIT- Non-operating 1901030 ADFIT-PIPD Claims 1902000 ADFIT-CPSES Severance 1902001 ADFIT-Property Insuranc Reserv 1902002 ADFIT-DCIP Amortization 1902003 ADFIT-Stock Incentiv Comp Plan 1902004 ADFIT-LESOP 1902011 ADFIT-Impairment-Utility 1902012 ADFIT-Supplemental Retirement 1902013 ADFIT-Pension Plan 1902014 ADFIT-Deferred Incentive Comp 1902015 ADFIT-Long Term Incentive Plan 1902018 ADFIT-Combustion Turbine Lease

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EXHIBIT RKP-3 Page 8 of 20 Account Number Account Description 1902019 ADFIT-Thrift AccrFund Dif 1902020 ADFIT-Salary Def Plan 7 Yr Opt 1902021 ADFIT-Salary Def Plan Ret Opt 1902023 ADFIT-OPEB and FAS 112 1902025 ADFIT-Provided For Misc Recv 1902026 ADFIT-Percent Depl Carry Forwd 1902031 ADFIT-Non Owner Contributions 1902032 ADFIT-Excess Rev Req Level 1902033 ADFIT-Unamortized ITC 1902034 ADFIT-Net Operating Loss 1902035 ADFIT-ALT Minimum Tax 1902036 ADFIT-S02 Emmissions Allowance 1902038 ADFIT-Business Interuption 1902040 ADFIT-Ins Claims IBNR Accrual 1902052 ADFIT-FederalStateFAS 109 1902053 ADFIT-FederalStateAPB 11 1902054 ADFIT - PIPD Claims 1902055 ADFIT - Pension 1902057 ADFIT - Operating State 1902059 ADFIT-Mitig and Redirctd Depr 1904000 ADFIT-Impairment 1904001 ADFIT-Impair-Prod Pint Storage 1904002 AD FIT-Impairment-Land 1904008 ADFIT-Disallow-CPSES Unit 1 1904009 ADFIT-Disallow-CPSES Unit 2 1904010 ADFIT-Disallow-Nuclear Fuel 1904011 ADFIT - Sandow Non-operating 1904012 ADFIT- Bus. Interruption 1907000 ADSIT-FAS 109 1907001 ADSIT-APB 11 1908000 ADSIT-Non Operating 2011000 Common Stock Issued-Affiliated 2019110 Trust Fund Contra - DCIP 2160000 Unappropriated Ret Earnings 2230000 Advances-Associate Cos 2240000 Other Long Term Debt 2281000 Accum Prov-Property Ins 2281010 Reserve-Charges-Property 2281011 Reserve-Charges-Liability 2281020 Reserve-Charges-Accum Prov 2283000 Supplemental Retirement Plan 2284100 Doe Decommissioning Assessment 2320300 Other Accounts Payable 2321095 AP - Debit Card Relocations 2321097 AP- Retirees

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EXHIBIT RKP-3 Page 9 of 20 Account Number Account Description 2321099 AP - Employees 2321320 Div Pay-Pref-Direct Deposit 2321900 PED - Loans 2321901 ENSAVE Loans 2321902 PED - Bankruptcy 2321903 PED - Child Support 2321904 PED - Parking 2321905 PED - Dependent Care Plan 2321906 PED - Health Care Plan 2321909 PED - Dependent Life Insurance 2321914 PED - IRS Levy 2321915 PED - Other 2321916 PED - TU PAC 2321917 PED - Union PAC 2321919 PED - Student Loans 2321920 PED - Thrift Plan Collections 2321921 PED - U.S. Savings Bonds 2321922 ENSAVE Plan Collections 2321923 PED - Union Dues 2321924 PED - United Way 2321925 Enserch Parking Deductions 2321926 Uniforms 2322401 Employee Group Life Insurance 2322402 Retiree Dental Insurance 2322403 Retiree Medical Insurance 2323000 Retentions 2324000 Trade Payables & Vouchers 2324700 Payroll Fund 2325000 Construction Payables 2328900 OS Checks-Money Pool 2328950 EDI Payments Outstanding 2340000 AP - Associated Companies 2361000 FICA - Employer 2361100 Accrd Federal Unemployment Tax 2361200 Superfund 2362100 Accrued State Unemployment Tax 2362200 State Regulat Assessment &Fees 2362500 State - Franchise 2362600 State-Ad Valorem-Current Year 2362610 State-Ad Valorem-Prior Year 2362700 State - Other - Full Accrual 2362710 State - Other - State Accrual 2363800 FIT - Accrual 2370000 Interest Accrued 2390000 Matured Long Term Debt EXHIBIT RKP-3 Page 10 of 20 Account Number Account Description 2411000 FICA Withheld 2411200 FIT - Withheld - Income Tax 2412000 State-Disability 2412200 SIT Withheld - Income Tax 2412300 IT Withheld - City Income Tax 2412700 State - Other - Accrual 2412710 State - Other - Accrual -State 2414000 Other Taxes Withheld 2421100 Escheat - Wages 2422000 Accrued Water Supply Expense 2423900 Other Accrued Payables 2424000 Payroll Accrual 2424100 Accrued Incentive Plans 2426000 Energy Aid Program 2427200 Finance - FMB_Collections 2427250 Finance - Collections PCRB's 2428100 Contractor Accruals 2428200 General Contractor - Other 2428210 Contractor Accruals-Other 2428300 Site Maintenance Contractor 2429300 Corporate Accruals 2429900 Other Accrued Liabilities 2531000 IBNR - Medical & Dental Claims 2531010 IBNR - Pers Injury Prop Damage 2531021 Reg Liab Prot Excs DFIT 2533000 Deferred & Incentive Comp 2533060 Restictive Stock Award 2533100 OPEB-Group Life Insurance 2533120 OPEB-Group Life Ins Accrual 2533200 OPEB-Group Health Insurance 2533220 OPEB-Group Health Ins Accrual 2533300 Retirement Plan 2533400 Supplemental Retirement Plan 2533500 Obeps - Fas 112 2534000 Leveraged ESOP 2535100 Salary Deferral-7 Year Option 2535200 Salary Deferral-Retirement 2535300 Salary Deferral-Retire Annuity 2535400 Salary Deferral-Enserch Plan 2535500 Salary Deferral-7Yr Foundation 2535600 Salary Defer-Retire Foundation 2535650 Salary Def Reitree Annuity Fou 2535700 Salary Deferral-7 Yr Emerg Bus 2535800 Salary Def-Retir Opt Emerg Bus 2539000 Other Deferred Credits

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EXHIBIT RKP-3 Page 11 of 20 Account Number Account Description 2540001 FAS 109 - Unamortized ITC 2540003 Nonstat Excess DFIT 2541000 Oth Def Cr-S02 Emission Allowa 2541001 Excess DFIT 2541002 Excess Rev Req Level 2541003 FAS 109 - Unamortized ITC 2541520 FAS 109 - Federal - State 2541530 APB 11 - Federal - State 2543000 FAS 109 - Unamortized ITC 2543003 FAS 109 - Unamortized ITC 2545000 FAS 115 - Unrealized Gains DCT 2545100 FAS 109 - State 2545200 APB 11 - State 2546600 1997 Merger Transition Costs 2551000 Accumulated Deferred ITC 2553000 Rate Base Amortization 2554011 Minority Owner - Utilized 2821030 ADFIT-PIPD-Regulatory Asset 2822000 ADFIT-Other Property 2822001 ADFIT-Liberalized Depreciation 2822002 ADFIT-CWIP-Basis Difference 2822003 ADFIT-Uranium Exchange 2822004 ADFIT-DOE-D&D Amortization 2822005 ADFIT-Nuclear Fuel Basis Diff 2822006 ADFIT-Martin Lake Unit 4 2822011 ADFIT-Oth Software DevelopCost 2822012 ADFIT-Misc Intangible Plant 2822015 ADFIT-F109-EPIS-Flow Through 2822016 ADFIT-F109-CWIP-Flow Through 2822017 ADFIT-F109-MLSES #4 2822018 ADFIT-Fl09-Software Developmnt 2822019 ADFIT-F109-Lign Reserv-N-Serv 2822020 ADFIT-F109-Nuc Fuel In Reactor 2822021 ADFIT-FAS 109-Federal & State 2822022 ADFIT-APB 11-Federal & State 2822023 ADFIT-InterCo Transf GainLoss 2822024 ADFIT-Dases Busi Interptn Note 2822056 ADFIT - Operating State 2824000 ADFIT- Non-operating 2824001 ADFIT-DASES Installment Sale 2827000 ADSIT-FAS 109-State 2827001 ADSIT-APB 11-State 2828000 ADSIT-Sandow 2830000 Accum Defd Federal Income Tax 2830010 ADFIT - Property Tax Accrual EXHIBIT RKP-3 Page 12 of 20 Account Number Account Description 2832000 ADFIT-Other 2832001 ADFIT-Section 263A Items 2832002 ADFIT-Other Regulatory Expense 2832006 ADFIT-Early RetireSeverance 2832007 ADFIT-Debt Recal Premium & Exp 2832013 ADFIT-CAP Costs 2832016 ADFIT-Depletion 2832029 ADFIT - Other 2832031 ADFIT-1999 Enh Emp Separ Prog 2832032 ADFIT-Redirected Depreciation 2834000 ADFIT-Gain Lignite 2834001 ADFIT-Other Martin Lake Unit 4 2834006 ADSIT-Non Operating 2835500 ADFIT-IBNR - Regulatory Asset 2837100 ADFIT-Merger ERP_VSP 2837300 ADFIT-Amor Advance Notice Unit 3030000 Intangible 3032000 Intangible-Retire 3037000 Intangible-Additions 3090000 Land Owned In Fee 3092000 Land Owned In Fee-Retirements 3093000 Land Owned In Fee-Removal 3094000 Land' Owned In Fee Salvage 3096000 Land Ownedin,Fee-Oth Recov 3097000 Land Owned In Fee-Additions 3100000 Land Rights 3102000 Land Rights-Retirements 3103000 Land Rights-Removal 3104000 Land Rights-Salvage 3106000 Land Rights-Oth Recov 3107000 Land Rights-Additions 3110000 Struct And Impro 3112000 Struct And Impro-Retirements 3113000 Struct & Imprvmnts-Removal 3114000 Struct And Impro-Salvage 3116000 Struct & Imprvmnts-Oth Recov 3117000 Struct And Impro-Additions 3120000 Boiler Plant Equip 3122000 Boiler Plant Equip-Retirements 3123000 Boiler Plant Equipt-Removal 3124000 Boiler Plant Equip-Salvage 3126000 Boiler Plant Equipt-Oth Rec 3127000 Boiler Plant Equip-Additions 3130000 Eng Driven Turb 3132000 Eng Driven Turb-Retirements

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EXHIBIT RKP-3 Page 13 of 20 Account Number Account Description 3133000 Eng Driven Turb-Removal 3134000 Eng Driven Turb-Salvage 3136000 Eng Driven Turb-Oth Recov 3137000 Eng Driven Turb-Additions 3140000 Turborgenerator 3142000 Turborgenerator-Retirements 3143000 Turbogenerator-Removal 3144000 Turborgenerator-Salvage 3146000 Turbogenerator-Other Recov 3147000 Turborgenerator-Additions 3150000 Acc Elect Equipt 3152000 Acc Elect Equipt-Retirements 3153000 Acc Elect Equipt-Removal 3154000 Acc Elect Equipt-Salvage 3156000 Acc Elect Equipt-Oth Recov 3157000 Acc Elect Equipt-Additions 3160000 Misc Pow Pit Equip 3162000 Misc Pow Pit Equip-Retirements 3163000 Misc Power Equipt-Removal 3164000 Misc Pow Pit Equip-Salvage 3166000 Misc Power Equipt-Oth Recov 3167000 Misc Pow Pit Equip-Additions 3190000 Land Owned In Fee 3192000 Land Owned In Fee-Retirements 3193000 Land Owned In Fee-Removal 3197000 Land Owned In Fee-Additions 3200000 Land Rights 3202000 Land Rights-Retirements 3207000 Land Rights-Additions 3210000 Struct And Impro 3212000 Struct And Impro-Retirements 3213000 Struct And Impro-Removal 3214000 Struct And Impro-Salvage 3216000 Struct And Impro-Oth Recov 3217000 Struct And Impro-Additions 3220000 Reactor Pit Equipt 3222000 Reactor Pit Equipt-Retirements 3223000 Reactor Pit Equipt-Removal 3224000 Reactor Pit Equipt-Salvage 3226000 Reactor Pit Equipt-Oth Recov 3227000 Reactor Pit Equipt-Additions 3230000 Turborgenerator 3232000 Turborgenerator-Retirements 3233000 Turborgenerator-Removal 3234000 Turborgenerator-Salvage

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EXHIBIT RKP-3 Page 14 of 20 Account Number Account Description 3236000 Turborgenerator-Oth Recov 3237000 Turborgenerator-Additions 3240000 Acc Elec Equip 3242000 Acc Elec Equip-Retirements 3243000 Acc Elec Equip-Removal 3244000 Acc Elec Equip-Salvage 3246000 Acc Elec Equip-Oth Recov 3247000 Acc Elec Equip-Additions 3250000 Misc Pow Pit Equip 3252000 Misc Pow Pit Equip-Retirements 3253000 Misc Pow PIt Equip-Removal 3254000 Misc Pow Pit Equip-Salvage 3256000 Misc Pow Pit Equip-Oth Recov 3257000 Misc Pow Pit Equip-Additions 3410000 Struct And Impro 3412000 Struct And Impro-Retirements 3413000 Struct And Impro-Removal 3414000 Struct And Impro-Salvage 3416000 Struct And Impr0-Oth Recov 3417000 Struct And Impro-Additions 3420000 Fuel Hlds,Prod,Acc 3422000 Fuel Hids,Prod,Acc-Retirements 3423000 Fuel Hlds,Prod,Acc-Removal 3424000 Fuel Hlds,Prod,Acc-Salvage 3426000 Fuel Hlds,Prod,Acc-Oth Recov 3427000 Fuel Hlds,Prod,Acc-Additions 3430000 Prime Movers 3432000 Prime Movers-Retirements 3433000 Prime Movers-Removal 3434000 Prime Movers-Salvage 3436000 Prime Movers-Oth Recov 3437000 Prime Movers-Additions 3440000 Generators 3442000 Generators-Retirements 3443000 Generators-Removal 3444000 Generators-Salvage 3446000 Generators-Oth Recov 3447000 Generators-Additions 3450000 Acc Elect Equip 3452000 Acc Elect Equip-Retirements 3453000 Acc Elect Equip-Removal 3454000 Acc Elect Equip-Salvage 3456000 Acc Elect Equip-Other Recovers 3457000 Acc Elect Equip-Additions 3460000 Misc Pwr Pit Equip

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EXHIBIT RKP-3 Page 15 of 20 Account Number Account Description 3462000 Misc Pwr Pit Equip-Retirements 3463000 Misc Pwr Pit Equip-Removal 3464000 Misc Pwr Pit Equip-Salvage 3466000 Misc Pwr Pit Equip 3467000 Misc Pwr Pit Equip-Additions 3480000 Construction Overhead 3487000 Construction Overhead 3857000 Afudc 3880000 Land Owned In Fee 3882000 Land Owned In Fee-Retire 3883000 Land Owned In Fee-Removal 3886000 Land Owned In Fee-Oth Rec 3887000 Land Owned In Fee-Additions 3890000 Land Rights 3892000 Land Rights-Retirements 3893000 Land Rights-Removal Cost 3894000 Land Rights-Salvage 3896000 Land Rights Other Recoveries 3897000 Land Rights-Additions 3900000 Struc & Improv 3902000 Struc & Improv-Retire 3903000 Struc & Improv-Removal 3904000 Struc & Improv-SaIv 3906000 Struct & Improv-Oth Rec 3907000 Struc & Improv-Additions 3910000 Furn & Equip 3912000 Furn & Equip-Retire 3913000 Furn & Equip-Removal 3914000 Fum & Equip-SaIv 3916000 Furn &Equip-Oth Rec 3917000 Furn & Equip-Additions 3920000 Transp Equip 3922000 Transp Equip-Retire 3923000 Transp Equip-Removal 3924000 Transp Equip-Salvage 3926000 Transp Equip-Oth Rec 3927000 Transp Equip-Additions 3930000 Stores Equip 3932000 Stores Equip-Retire 3933000 Stores Equip-Removal 3934000 Stores Equip-SaIv 3936000 Stores Equip-Oth Rec 3937000 Stores Equip-Additions 3940000 ToolShopGar Eqpt 3942000 ToolShopGar Eqpt-Retirements

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EXHIBIT RKP-3 Page 16 of 20 Account Number Account Description 3943000 ToolShopGar Eqpt-Removal 3944000 Tool ShopGar Eqpt-Salvage 3946000 ToolShopGar Eqpt-Oth Recov 3947000 ToolShopGar Eqpt-Additions 3950000 Lab Equip 3952000 Lab Equip Retire 3953000 Lab Equip-Removal 3954000 Lab Equip-Salvage 3956000 Lab Equip-Other Recover 3957000 Lab Equip-Additions 3960000 Power Oper Equip 3962000 Power Oper Equip-Retire 3963000 Power Oper Equip Removal 3964000 Power Oper Equip-Salvage 3966000 Power Oper Equip-Oth Recov 3967000 Power Oper Equip Additions 3970000 Commun Eqpt 3972000 Commun Eqpt-Retirements 3973000 Commun Eqpt-Removal 3974000 Commun Eqpt-Salv 3976000 Commun Eqpt-Oth Rec 3977000 Commun Eqpt-Additions 3980000 Misc Equipment 3982000 Misc Equipment-Retire 3983000 Misc Equipment-Removal 3984000 Misc Equipment-Salv 3986000 Misc Equipment-Oth Rec 3987000 Misc Equipment-Additions 3990000 Lignite Reserves General Plant 3990001 Lignite Reserves 3990002 Other Tangible 3992000 Lignite Res Gen PIt-Retirments 3992001 Lignite Reserves-Retirements 3992002 Other Tangible-Retirement 3993000 Lignite Reserv Gen Pit-Removal 3993001 Lignite Reserves-Removal 3993002 Other Tangible-Removal 3994000 Lignite Reserv Gen Pit-Salvage 3994001 Lignite Reserves-Salvage 3994002 Other Tangible-Salv 3996000 Lignite Reserv Gen Pit-Oth Rec 3996001 Lignite Reserves-Oth Rec 3996002 Other Tangible-Oth Rec 3997000 Lignite Resv Gen PIt-Additions 3997001 Lignite Reserves-Additions

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EXHIBIT RKP-3 Page 17 of 20 Account Number Account Description 3997002 Other Tangible-Additions 4030000 Depreciation Expense 4030100 Electric Production - GasOil 4030110 Electric Production - Lignite 4030112 Electric Prod - Lignite-Sandow 4030120 Electric Production - Nuclear 4030122 Depr-Distrib Related-Nuclear 4030123 Depr-Transm Related-Nuclear 4030124 Depr-Distrib Substatn-Nuclear 4030126 Depr-Mitigation Accr-Nuclear 4030130 Electric Production - Other 4030798 Depr-General Plant 4030900 Depr-Decommision Cost 4031100 Electric Production - GasOil 4031110 Electric Production - Lignite 4031112 Electric Prod - Lignite-Sandow 4031120 Electric Production - Nuclear 4031123 Depr-Transm Related-Nuclear 4031124 Depr-Distrib Substatn-Nuclear 4031125 Depr-Distrib Related-Nuclear 4031126 Depr-Mitigation Accr-Nuclear

-4031130 Electric Production - Other 4031730 Depn Exp-Transportation Equipm 4031798 Depr-General Plant 4070000 Amort-Prop LossesUnrcvd Plant 4081000 FICA 4081100 Federal - Unemployment 4081200 Federal - Superfund 4081300 Federal - Motor Vehicle 4081310 Federal - Motor Vehicle-Credit 4081970 Allocated Taxes FICA - Credit 4081980 Allocated Taxes FUTA - Credit 4081990 Payroll Taxes Allocated 4082100 State - Unemployment 4082200 State Regulat Assessment &Fees 4082400 State - Gross Receipts 4082410 State - Local Gross Receipts 4082500 State - Franchise 4082600 State-Ad Valorem-Current Year 4082650 State-Ad Valorem-Prior Year 4082690 State-Ad Valorem-Non Utility 4082700 State - Use Tax 4082710 State - Use Tax - Misc 4082980 Allocated Taxes SUTA - Credit 4089100 Payroll Taxes Allocated

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EXHIBIT RKP-3 Page 18 of 20 Account Number Account Description 4091000 Current FIT - Util Oper Income 4091100 State Income Taxes-Oper Income 4092000 Current FIT - Other Income 4092100 State - Income Taxes-Non Oper 4093000 Income Tax Extraordinary Item 4101000 Def FIT - Utility Oper Income 4101100 Deferred State Income taxes 4102000 Def FIT - Other Income 4102100 State - Def Income Tax-NonOper 4103000 Deferred Extraordinary NonOper 4111000 Def FIT - Utility Oper Income 4112000 Def FIT - Non Operating Income 4112100 State - Def Income Tax-NonOper 4114000 Investment Tax Credit 4114100 ITC Adjustments - Utility 4190100 Interest & Dividend Inc-Misc 4190200 Interest Income-Associated Cos 4191000 AFUDC Equity 4210100 Disposition Of Property-Gain 4210200 Disposition Of Property-Loss 4210300 Other Misc Nonoperating Income 4210400 M14 Aband Carrying Charges 4210600 Lignite Advance Royalty 4210700 Deferred Incentive Comp 4263500 Penalties - Non Operating 4264500 Lobbying - Other-Non Operating 4264600 Lobbying - PAC - Non Operating 4265500 Other Deductions-Non Operating 4265700 Salary Deferral Plan 4265800 Expense of Nonutility Plant 4270000 Interest On Long Term Debt 4271000 Interest On LTD - Other 4272000 First Mortgage Bonds 4272500 Interest on PCRB 4280000 Amort-Debt Discount & Expense 4281000 Amort-Loss On Reacquired Debt 4290500 Capital Securities - Credit 4291000 Amort-Gain Reacq Debt-Credit 4300000 Interest On Debt To Assoc Cos 4310100 Other Interest Expense 4310800 Internal Revenue Service 4321000 AFUDC 4322000 Capitalized Interest 4374000 Redemption - Non Mandatory 4378000 Redemption - Mandatory

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EXHIBIT RKP-3 Page 19 of 20 Account Number Account Description 4378100 Accretions-Mandatory Redemptn 4378500 Amort-Pref Stock-Redemption 4379000 Distributions - Preferred 4379100 Accretions-Preferred Security 4379500 Amort-Pref Security-Redemption 4380200 Distributions - Common 4422110 Industrial Sales - Sandow-Base 4470000 Transmission Service 4480000 Interdepartmental Sales 4530000 Sales Of Water And Water Power 4562000 Oth Rev - Gain On Sale Of Fuel 4565000 Oth Rev - Management Fees 4569000 Oth Rev - Other 5000000 Oper-Supervision & Engineering 5010000 Fuel Trade 5011100 Oper-Fuel-Lignite-Boiler Fuel 5011121 Oper-Fuel-Coal-Boiler Fuel 5011200 Fuel Handling Expense 5011300 Mine Closing Cost 5011400 AshResidual Disposal 5011500 Fuel Treatment Expense 5011600 IgnitionGas-Fuel 5011700 Ignition_Oil-Fuel 5011800 IgnitionOil-Fuel 5012100 Oper-Fuel-Gas-Boiler Fuel 5012200 Oper-Fuel-Gas-Other 5013100 Oper-Fuel-Oil-Boiler Fuel 5013200 Oper-FueI-Oil-Other 5020000 Steam Expenses 5050000 Electric Expenses 5060000 Misc Steam Power Expenses 5070000 Rents 5100000 Maint-Supervision&Engineering 5110000 Maint-Structures 5120000 Maint-Boiler Plant 5130000 Maint-Electric Plant 5140000 Maint-Misc Steam Plant 5150000 Maint-Clearing Accounts 5151000 Maint-Clearing Accounts 5152000 Variable - Time - Fossil 5170000 Oper-Supervision&Engineering 5180000 Oper-Nuclear Fuel Expense 5190000 Oper-Coolants And Water 5200000 Oper-Steam Expenses 5230000 Oper-Electric Expenses

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EXHIBIT RKP-3 Page 20 of 20 Account Number Account Description 5240000 Misc Nuclear Power Expenses 5250000 Rents 5280000 Maint-Supervision&Engineering 5290000 Maint-Structures 5300000 Maint-Reactor Plant Equipment 5310000 Maint-Electric Plant 5320000 Maint-Misc Nuclear Plant 5460000 Oper-Supervision&Engineering 5471100 Gas Purchase-Nonassociated 5472100 Oper-Fuel-OII-Engine Fuel 5472200 Oper-Fuel-Oil-Other 5480000 Generation Expenses 5490000 Misc Othr Power Generation Exp 5500000 Rents 5510000 Maint-Supervision&Engineering 5520000 Maint-Structures 5530000 Maint-Generating & Elect Plant 5540000 Maint-Misc Oth Power Gener Pit 5570000 Other Expenses 5650000 Trans-Electricity By Others 5900000 Maint-Supervision&Engineering 5910000 Maint-Structures 5980000 Maint-Misc Distribution Plant 9030000 Customer Records & Collections 9040000 Uncollectible Accounts 9090000 Inform_Instruct Adver Exp 9200000 Administrative & Gen Salaries 9210000 Office Supplies &Expenses 9220000 Administrative Exp-Transferred 9230000 Outside Services Employed 9240000 Property Insurance 9250000 Injuries & Damages - Insurance 9260000 Employee Pensions & Benefits 9280000 Regulatory Commission Expense 9301000 General Advertising Expenses 9302000 Misc General Expenses 9310000 Rents-Administrative & General 9350000 Maint-General Plant-Elec EXHIBIT RKP-4 1 of 30 TXU ELECTRIC COMPANY DEPARTMENT ID NUMBERS TRANSMISSION DIVISION EXHIBIT RKP-4 2 of 30 TXU ELECTRIC COMPANY DEPARTMENT ID NUMBERS TRANSMISSION DIVISION Department ID Number Department IDDescription 515000 Engineering & Operations 515100 Admin.Engineering & Operations 515200 Ft Worth Region Transmission 515210 Admin. Ft Worth Region Trans.

515220 Fort Worth Transmission 515221 Admin. Fort Worth Transmission 515222 Support 515223 Protection & Control 515224 Patrolman 515225 Electricians 515226 Line/Construction 515230 Comanche Transmission 515240 Glen Rose Transmission 515250 Graham Transmission 515260 Wichita Falls Transmission 515300 Western Region Transmission 515310 Admin.- Western Region Trans.

515320 Odessa Transmission 515330 Big Spring Transmission 515340 Sweetwater Transmission 515400 Southeast Region Transmission 515410 Southeast Reg. Trans. Support 515420 Waco Transmission 515430 Corsicana Transmission 515440 Lufkin Transmission 515450 Palestine Transmission 515460 Temple Transmission 515470 Tyler Transmission 515500 Dallas Region Transmission 515510 Admin. - Dallas Region Trans.

515520 Dallas Transmission 515521 Administrative - Dallas Trans.

515522 Protection &Control 515523 Maintenance & Construction 515524 Patrol 515525 Test 515530 Fomey Transmission 515540 Sulphur Springs Transmission 515550 Texoma Transmission EXHIBIT RKP-4 3 of 30 Department ID Number Department ID Description 515600 Transmission Engineering 515610 Admin.Transmission Engineering 515620 Transmission Drafting 515630 Liggett Stores 515700 Transmission Operations Supp 515710 Admin.-Transmission Oper. Supp 515720 Ft Worth Transm Operations 515740 Southeast Transm Operations 515750 Dallas Transmission Operations 515760 Performance Analysis 515770 Equipment Support 515780 SCADA Telecom Operations Supp 522400 Transmission Planning 522410 Transmission Planning Admin.

522420 Metroplex Trans Planning 522430 Regional Transmission Planning 522440 Special Studies 522500 System Protection 522510 Admin. - System Protection 522520 Conceptual Design &Pit Protect 522530 Relay Set & Eng Field Support 522540 Relay Set & Tech Field Support 522601 Energy Management System (EMS) 522610 EMS Administrative 522620 EMS Network Management 522630 EMS Data Management 522640 EMS SCADA Management 522650 Ems Ots 522660 EMS Distribution Apps 524000 Transmission Grid Management 524100 Transmission Grid Mgt. Admin.

524200 Grid Operations 524300 Security Center 570000 EVP - Transmission Division 571000 Transmission Administrative 571900 Corporate Department - TRN 572000 Rates & Regulatory 573000 Marketing Services EXHIBIT RKP-4 4 of 30 TXU ELECTRIC COMPANY DEPARTMENT ID NUMBERS DISTRIBUTION DIVISION EXHIBIT RKP-4 5 of 30 TXU ELECTRIC COMPANY DEPARTMENT ID NUMBERS DISTRIBUTION DIVISION Department ID Number Department ID Description 510000 Operations 511000 Administrative - Operations 511001 Operations Admin 511100 System Asset Management 511101 System Asset Mgmt Admin 511120 Distribution Standards 511130 Distribution Planning 511140 Network Design 511150 Distribution Information System 511151 DIS Admin 511152 DIS Client Support 511153 Gas DIS Development 511154 SESCO GIS Development 511155 Pipeline GIS Development 511156 System Asset Liaison 511200 Metro Design 511201 Metro Design Admin 511220 East Metro Design 511230 South Metro Design 511240 Central Metro Design 511250 North Metro Design 511260 West Metro Design 511270 Major Metro Design 511280 Metro Records 511300 Non Metro Design 511301 Non Metro Design Admin 511310 West Region Design 511311 Region Design Midland/Odessa 511312 Field Design Abilene/Brownwood 511313 Field Design Wichita Falls/Min 511320 South Region Design 511321 Region Design Waco/Waxahachie 511322 Field Design Temple/Killeen 511323 Field Design Round Rock/Bryan 511330 East Region Design 511331 Region Design Tyler/Terrell/At 511332 Field Design Texoma/Paris 511333 Field Design Lufkin/Palestine/

511400 Meter Services

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EXHIBIT RKP-4 6 of 30 Department ID Number Department ID Description 511401 Meter Services Admin 511410 Metro Meter Reading 511411 Metro MR Admin 511412 Metro MR Ft Worth North 511413 Metro MR Ft Worth South 511414 Metro MR Arlington 511415 Metro MR Dallas South 511416 Metro MR Garland 511417 Metro MR Piano 511418 Metro MR Farmers Branch 511419 Metro MR Irving 511420 Metro MR Central Dallas 511421 Metro MR Mid Cities 511430 MS Meter Technician 511440 MS Electric Meter Shop 511450 MS Metering Support 511460 MS Meter Technology 511470 MS Re-Route 511480 MS Non Metro 511500 Resource Management 511501 Resource Management Admin 511510 RM Logistics 512000 Customer Operations 512100 Customer Operations - Admin 512110 Gas Billing - Admin 512200 Customer Information Centers 512210 Customer Info Centers - Admin 512220 COF 512230 Waco 512240 Training &Technology 512250 Waco II 512260 Harwood 512270 Quality Assurance 512280 Systems 512300 Business & Technology 512400 Revenue Processing 512500 Customer Billing & Collection 512510 Cust Billing &Collect - Admin 512520 Collections - COF 512530 Legal Collections - COF 512540 Billing Exceptions - COF 512550 Special Billing & Revenue - EP 512560 Active Collections Support

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EXHIBIT RKP-4 7 of 30 Department ID Number Department ID Description 512570 Credit Collections - Harwood 512580 Billing - Harwood 512701 Meter Read-Collect - Metro 512800 Measurement & Field Services 512810 Mesuremnt & FId Servcs - Admin 512811 MDT Support 512812 Dispatch 512820 Metro - Measurement 512821 Metro - Measurement - Admin 512822 Fort Worth North 512823 Fort Worth South 512824 Arlington 512825 Southeast Dallas 512826 Garland 512827 Piano 512828 Farmers Branch 512829 Irving 512830 Metro East - Field Service 512831 Metro East-FId Servce - Admin 512832 Dallas 512833 Desoto 512834 Garland 512835 Irving Farmers Branch 512836 Piano 512840 Metro West - Field Service 512841 Metro West-FId Service - Admin 512842 Arlington 512843 Fort Worth North 512844 Fort Worth South 512845 Hurst Euless Bedford District 512850 Non Metro E-Field Svc & Meas 512851 Non Met E-FId Svc&Mes - Admin 512852 Terrell - Athens 512853 Waco A 512854 Waco B 512855 Corsicana - Palestine 512856 Tyler - Lufkin 512860 Non Metro W-Field Svc & Meas 512861 Non Met W-Fld Svc&Meas - Admin 512862 Abilene 512863 Midland - Odessa 512864 Sweetwater 512865 Wichita Falls A 512866 Wichita Falls B

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EXHIBIT RKP-4 8 of 30 Department ID Number Department ID Description 512870 Non Metro N-Field Svc & Meas 512871 Non Met N-Fld Svc&Meas - Admin 512872 Denton 512873 Mineral Wells 512874 Paris - Sulphur Springs 512875 Sherman 512880 Non Metro S-Field Svc & Meas 512881 Non Met S-FId Svc&Meas - Admin 512882 Brownwood - San Angelo 512883 Bryan 512884 Killeen 512885 Round Rock A 512886 Round Rock B 512887 Temple 512892 Central Dallas 512893 Reroute Team 512894 Mid Cities 513000 Customer Service 513100 Customer Service - Admin 513120 Customer Service 513121 Customer Service - Admin 513130 Executive Referrals 513200 Fort Worth Region 513210 Fort Worth Region - Admin 513220 Arlington District 513230 Hurst Euless Bedford District 513240 Wichita Falls District.

513250 Brownwood District 513260 Ft Worth Cust Serv 513262 Fort Worth Customer Service 513263 Facilities 513270 Denton District 513280 Mineral Wells District 513300 Western Region 513310 Western Region - Admin 513320 Midland District 513330 Odessa District 513340 Big Spring District 513350 Abilene District 513360 Wichita Falls District 513370 Brownwood District 513400 Southern Region 513410 Southern Region - Admin 513420 Waco District EXHIBIT RKP-4 9 of 30 Department ID Number Department ID Description 513430 Temple District 513440 Round Rock District 513450 Tyler District 513460 Lufkin District 513470 Palestine District 513480 Bryan-College Station District 513490 Waxahachie District 513500 Northern Region 513501 Northern Region - Admin 513502 Irving District 513503 Farmers Branch District 513504 Piano District 513505 Mesquite District 513506 Grand Prairie District 513507 Waxahachie District 513508 Sherman District 513509 Paris District 513510 Dallas Cust Service 513511 Dallas Cust Service 513512 Dallas Cust Service 513513 Cust Service - COD 513514 Dallas Claims 513515 Dallas Cust Serv-NE Area 513516 Dallas Cust Serv-SW Area 513520 McKinney District 513600 Conservation & Load Mgmt 513690 DSM Incentives 513692 DSM Incent - Fort Worth Region 513694 DSM Incent - Southeast Region 513695 DSM Incent - Dallas Region 513700 Customer Service Support 513730 Technical Services 513750 Consumer & Education Service 513800 Economic &Business Develop 513810 Economic &Business Develop 513830 Economic Development 513840 Community Development 513910 Community Relatns Supt - Admin 513920 Dallas Community Affairs 513921 Volunteer & Education Svcs 513930 Fort Worth Community Affairs 513940 Municipal Relations 514000 Distribution 514100 Administrative - Distribution

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EXHIBIT RKP-4 10 of 30 Department ID Number Department ID Description 514110 Distribution Systems Operation 514120 Support Serv. Admin 514121 Support Services 514200 Ft Worth Region Distribution 514201 Denton District 514202 Denton District Admin 514203 Denton Service Center 514204 Lewisville Gas 514210 Ft Worth Region Admin 514220 Ft Worth Region Engineering 514230 Ft Worth Distrib Operating Ctr 514240 Wichita Falls Dist Sys Oper 514242 Wichita Falls Service Center 514243 Graham Service Center 514250 Brownwood Dist Sys Oper 514252 Brownwood Service Center 514253 Eastland Service Center 514254 Stephenville Service Center 514260 Mineral Wells District 514262 Ft Worth South District 514263 Mineral Wells Service Center 514270 Arlington District 514272 Arlington Service Center 514273 Cleburne Service Center 514280 Ft Worth North Serv Centers 514282 Ft Worth North District 514283 Decatur Service Center 514290 Ft Worth Northeast Serv Cntr 514292 Ft Worth HEB District 514293 Lake Dallas Service Center 514300 Western Region Sys Operations 514310 Western Reg Sys Oper - Admin 514320 Western Region Engineering 514330 Odessa Dist Sys Operations 514332 Odessa Service Center 514333 Monahans Service Center 514334 Andrews Service Center 514340 Midland Dist Sys Oper 514341 Midland Service Center 514342 Big Spring Service Center 514343 Lamesa Service Center 514350 Abilene Dist Sys Oper 514351 Abilene Service Center 514352 Sweetwater Service Center

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EXHIBIT RKP-4 11 of 30 Department ID Number Department ID Description 514353 Snyder Service Center 514354 San Angelo Service Center 514360 Western Distribution Control 514400 Southeast Region Distribution 514410 Southeast Region Admin 514420 Southeast Region Engineering 514422 Southern - Tyler 514423 Southern - Waco 514430 Waco Service Centers 514432 Waco Service Center 514433 Corsicana Service Center 514434 Hillsboro Service Center 514440 Temple-Killeen Service Center 514450 Roundrock-Taylor Service Cntr 514460 Palestine District 514462 Tyler District 514463 Athens Service Center 514464 Palestine Service Center 514470 Lufkin District 514480 SE Region Distribution Control 514490 Bryan Service Center 514500 Northern Distribution 514510 Northern Distribution Admin 514520 Dallas Region Engineering 514530 Irving District 514532 Distribution Operating Center 514533 DFW Airport 514540 Paris Service Centers 514542 Paris Service Center 514543 Sulphur Springs Service Center 514544 Greenville Service Center 514550 Irving Service Center 514560 Plano-Mckinney Service Ctrs 514562 Piano District 514563 Mckinney Service Center 514570 Mesquite District 514572 Mesquite Service Center 514573 Terrell Service Center 514580 Waxahachie District 514582 Grand Prairie District 514583 Waxahachie Service Center 514590 Texoma Service Center 514600 Dallas Region Distribution 514610 Dallas Region Distrib Admin EXHIBIT RKP-4 12 of 30 Department ID Number Department ID Description 514611 Electric Administrative 514612 Gas Administrative 514630 Central Reg Distr Oper Center 514640 Central Service Center 514650 Dallas Northeast Service Cntr 514660 Dallas North Service Center 514670 Dallas Southwest Service Cntr 514680 Transportation - Canton Street 514700 Distribution Engineering 514710 Administrative 514720 Distribution Standards 514730 Distribution Planning 514740 Network Design 514750 Major Distribution Design 514760 Distribution Info Systems 514800 Distribution Field Services 514810 Administrative 514820 Distribution Technical Service 514830 Construction Support Services 514840 Equipment Services 514860 Equipment Transport 514871 Administrative 514872 Metering Services 514873 Meter Shop - Electric 514874 Meter Shop - Gas 514900 Distribution Operations Srvcs 514910 Administrative 514920 Distrib Operations Engineering 516001 Electric Operations Admin 516100 Power Delivery 516101 PD Administrative 516110 PD Metro East Operations Cente 516120 PD Metro West Operations Cente 516130 PD Western Operations Center 516140 PD Southern Operations Center 516150 PD Technical Operations 516151 Technical Operations Admin 516152 Technical Operations - Trouble 516153 Technical Operations - Operati 516160 PD Servicework 516170 PD Vegetation Mgmt 516200 Dallas Electric Operations 516201 DEO Administrative 516210 DEO Admin Support

- 88 -

EXHIBIT RKP-4 13 of 30 Department ID Number Department ID Description 516220 Deo Doc 516230 Deo M&C 516240 DEO Operations 516300 Construction Services 516301 Construction Services Admin 516310 Construction Coordination 516320 Civil Construction 516330 Electric Construction 516340 Maintenance & Construction 516350 Fort Worth Network 516360 Special Projects 516370 Inspection Services 516380 Non Metro Liaison 516400 Distribution Services 516401 Distribution Services Admin 516410 DS Fort Worth 516420 DS Fort Worth North 516430 DS Dallas 516440 DS Dallas East 516450 DS Dallas West 516500 Reliability Engineering 516501 Reliability Engineering Admin 516510 Operations Engineering 516520 Performance Monitoring 516530 Equipment Management 516531 Eng & Technical Support 516532 Equipment Repair & Transport 516533 Protective Equip & Tools 516600 West Electric Operations 516601 WEO Administrative 516605 WEO Abilene District 516606 Abilene DS Manager 516607 San Angelo DS Manager 516610 WEO Brownwood District 516611 Brownwood Admin 516612 Brownwood Operations 516613 Brownwood Meter Services 516615 Brownwood Distr Services 516616 Brownwood DS Manager 516617 Stephenville DS Manager 516618 Comanche DS Manager 516619 Eastland DS Manager 516621 Stephenville/Eastland Operatio 516630 WEO Midland District EXHIBIT RKP-4 14 of 30 Department ID Number Department ID Description 516631 Midland Admin 516632 Midland M&C 516633 Midland Operations 516634 Midland Meter Services 516635 Midland Distr Services 516636 Midland DS Manager 516637 Big Spring DS Manager 516638 Lamesa DS Manager 516639 Snyder DS Manager 516640 Sweetwater DS Manager 516642 Sweetwater/Snyder Operations 516643 Big Spring Operations 516650 WEO Mineral Wells District 516651 Mineral Wells Admin 516652 Mineral Wells M&C 516653 Mineral Wells Meter Services 516655 Mineral Wells Distr Services 516656 Mineral Wells DS Manager 516657 Decatur DS Manager 516658 Breckenridge DS Manager 516659 Graham DS Manager 516661 Graham Operations 516662 Decatur Operations 516670 WEO Odessa District 516671 Odessa Admin 516672 Odessa M&C 516673 Odessa Operations 516674 Odessa Meter Services 516675 Odessa Distr Services 516676 Odessa DS Manager 516677 Crane DS Manager 516678 Monahans DS Manager 516679 Andrews DS Manager 516680 WEO Wichita Falls District 516681 Wichita Falls Admin 516682 Wichita Falls M&C 516683 Wichita Falls Operations 516684 Wichita Falls Meter Services 516685 Wichita Falls Distr Services 516686 Wichita Falls DS Manager 516687 Burkburnett DS Manager 516688 Bowie DS Manager 516689 Vernon DS Manager 516700 South Electric Operations EXHIBIT RKP-4 15 of 30 Department ID Number Department ID Description 516701 SEO Administrative 516705 SEO Waco District 516706 Waco Admin 516707 Waco M&C 516708 Waco Operations 516709 Waco Meter Services 516710 Waco Distr Services 516711 Waco DS Manager 516712 McGregor DS Manager 516713 Hillsboro DS Manager 516715 Hillsboro Ops Manager 516716 Hillsboro Operations 516717 Hillsboro Meter Services 516720 SEO Temple District 516721 Temple Admin 516722 Temple M&C 516723 Temple Operations 516724 Temple Meter Services 516725 Temple Distr Services 516726 Temple DS Manager 516727 Belton DS Manager 516728 Cameron DS Manager 516730 SEO Killeen District 516731 Killeen Admin 516732 Killeen M&C 516733 Killeen Operations 516734 Killeen Meter Services 516735 Killeen Distr Services 516736 Killeen DS Manager 516737 Copperas Cove DS Manager 516740 SEO Round Rock District 516741 Round Rock Admin 516742 Round Rock M&C 516743 Round Rock Operations 516744 Round Rock Meter Services 516745 Round Rock Distr Services 516746 Round Rock DS Manager 516747 Taylor DS Manager 516748 Elgin DS Manager 516749 Kerrville DS Manager 516750 Fredricksburg DS Manager 516760 SEO Waxahachie District 516761 Waxahachie Admin 516762 Waxahachie Ops Manager

- 91 -

EXHIBIT RKP-4 16 of 30 Department ID Number Department ID Description 516763 Waxahachie Operations 516764 Waxahachie Meter Services 516765 Waxahachie Distr Services 516766 Waxahachie DS Manager 516767 Corsicana DS Manager 516768 Ennis DS Manager 516769 Cleburne DS Manager 516770 Corsicana Ops Manager 516771 Corsicana Operations 516772 Corsicana Meter Services 516775 Cleburne Operations 516776 Cleburne Operations 516777 Cleburne Meter Services 516780 SEO Bryan Distr Services 516800 East Electric Operations 516801 EEO Administrative 516810 EEO Lufkin District 516811 Lufkin Admin 516812 Lufkin M&C 516813 Lufkin Operations 516814 Lufkin Meter Services 516815 Lufkin Distr Services 516816 Lufkin DS Manager 516817 Nacogdoches DS Manager 516820 EEO Palestine District 516821 Palestine Admin 516822 Palestine Operations 516823 Palestine Meter Services 516825 Palestine Distr Services 516826 Palestine DS Manager 516827 Crockett DS Manager 516828 Athens DS Manager 516829 Athens Operations 516830 EEO Paris District 516831 Paris Admin 516832 Paris M&C 516833 Paris Operations 516834 Pairs Meter Services 516835 Paris Distr Services 516836 Paris DS Manager 516837 Sulphur Springs DS Manager 516838 Commerce DS Manager 516839 Sulphur Springs Operations 516840 EEO Texoma District EXHIBIT RKP-4 17 of 30 Department ID Number Department ID Description 516841 Texoma Admin 516842 Texoma M&C 516843 Texoma Operations 516844 Texoma Meter Services 516845 Texoma Distr Services 516846 Sherman DS Manager 516847 Denison DS Manager 516848 Gainesville DS Manager 516849 Bonham DS Manager 516860 EEO Tyler District 516861 Tyler Admin 516862 Tyler M&C 516863 Tyler Operations 516864 Tyler Meter Services 516865 Tyler Distr Services 516866 Tyler DS Manager 516867 Longview DS Manager 516868 Terrell DS Manager 516870 Terrell Ops Manager 516871 Terrell Operations 516872 Terrell Meter Services 516880 EEO SESCO District 516881 SESCO Admin 516882 SESCO Operations 516883 SESCO Distribution Services 517000 Marketing & Sales 517100 Marketing & Sales - Admin 517200 Key Account Sales 517210 Key Account Sales - Admin 517220 Sales Management I 517230 Sales Management II 517240 Customer Serv & Sales Training 517250 Competitive Response 517260 Mgr._Strategic Energy Sales IV 517270 MgrStrategic Energy Sales V 517300 Industrial Markets 517310 Industrial Market Mgt - Admin 517320 Competitive Management 517330 Power Quality Services Mgt 517400 Commercl &Governmntl Markts 517410 Comercl & Govmntl Mkts - Admin 517500 Marketing Knowledge 517510 Marketing Knowledge - Admin 517600 Residential Markets EXHIBIT RKP-4 18 of 30 Department ID Number Department ID Description 517610 Residential Markets - Admin 517700 C&I Program Services Mgt 517710 C&I Program Srvcs Mgt - Admin 517720 Tech Solutions Consul Ser Mgt 517730 C&l Program Services Mgt 517740 Customer Solutions-Residential 517750 Technology Solutions 517800 Marketing Services 517810 Marketing Services - Admin 517820 Market Economics Mgt 517830 Mkting Information Process Mgt 517840 Market Research 517850 Forecasting Management 517860 Cust Svc & Regulatory Supp Mgt 517900 Cust Loyalty,Chg & Commun 517910 Cust Loyalty,Chg & Coin - Admin 517960 Gas Mktg &Transp Sales - Admin 518000 New Customer Development 518100 New Cust Development - Admin 518200 NCD Support 518300 NCD West Region 518310 NCD West Region 518320 Fort Worth District 518330 Round Rock District 518340 Waco District 518400 NCD East Region 518410 NCD East Region 518420 Dallas District 518430 Piano District 518440 Mesquite District 518500 Gas Marketing & Transportation 519100 Bus DevAdmin 519200 Bus DevAdmin Services 519310 Bus DevMCDS Admin 519320 Bus DevGas MktTransportation 519330 Bus DevMktg Services 519410 Bus DevNCM Admin 519420 Bus DevNCM Support 519430 Bus DevNCM FWWestern Dist 519440 Bus DevNCM MidCities Dist 519450 Bus Dev_NCM DallasEastern Dis 519460 Bus DevNCM Piano District 519470 Bus Dev_NCM Southern District 519510 Bus DevDAR Admin EXHIBIT RKP-4 19 of 30 Department ID Number Department ID Description 519520 Bus DevDAR VolunPublic Ed 519610 Bus DevFWAR Admin 519621 Bus DevFW District Admin 519622 Bus DevFW Building Services 519700 Bus DevEconomic Development 519810 Bus DevDRSS Admin 519820 Bus DevForecasting 519830 Bus DevDecision Suppt Svcs 519840 Bus DevEnergy EfficSuppt Svc 519900 Bus DevExecutive Referrals 520000 Electric Service Division 521000 Esd 521200 Business Improv & Emply Devel 521900 Corporate Department - ESD 521921 F W Transportation 521922 Waste Management 521923 Telecommunications 521924 Inventory Accounting 521940 Champion-CIS 521950 Champion-Large C&I Marketing 521960 ChampionMass Marketing 521970 Champion Strategic team 521980 Project Genesis 528000 Energy Supply 528100 Energy Supply - Admin 528200 Resource Planning 528210 Energy Resource Planng - Admin 528220 Generation Planning 528230 Resource Analysis 528300 Power Resource Acquisition 528400 Wholesale Power Management 528500 Power Supply Operations 528600 Projects 528700 Gas & Oil Acquisition 528710 Gas & Oil Acquisition - Admin 528720 Gas Acquisition 528730 Gas & Oil 528800 Gas Contract Administration 528810 Gas Contract Admin - Admin 528820 Contract Administration 533000 Rates And Regulatory 533100 Business Management Admin 533200 Business Planning 533220 Rate & Cost Analysis

- 95 -

EXHIBIT RKP-4 20 of 30 Department ID Number Department ID Description 533300 Performance Mangement 533400 Qual Improv and Emp Developmen 533510 Management Support Admin 533520 Management Support Operations 533530 Mngt Support Cust Business 533540 Mngt Suport Energy Supply EXHIBIT RKP-4 21 of 30 TXU ELECTRIC COMPANY DEPARTMENT ID NUMBERS POWER GENERATION DIVISION EXHIBIT RKP-4 22 of 30 TXU ELECTRIC COMPANY DEPARTMENT ID NUMBERS POWER GENERATION DIVISION Department ID Number Department ID Description 253332 Stryker Creek 533240 Load Research Operations 534440 Right-Of-Way 540000 EVP - Generation 541000 Administrative - Generation 541900 Corporate Department - GEN 542000 Nuclear Generation 542100 Neo 542110 Neo Administration 542120 CPSES Publications 542130 Refuel Accrual 542140 Management Reserve 542150 Purchasing, Stores &Tax 542160 Year 2000 Project 542200 Nuclear Operations 542210 Nuclear Operations 542220 Operations 542221 Shift Operations 542222 Operations Support 542223 Chemistry 542226 Operations Support-Admin 542227 Operations Support-Procedures 542228 Operations Support-Rad Waste 542229 Operations Support-Work Ctrl 542230 Maintenance 542231 Smart Team #2 542232 Smart Team #3 542233 Smart Team #1 542234 Maintenance Services 542235 Prompt Team 542236 Maintenance Support 542240 Plant Support 542241 Work Control 542242 Planning 542250 Radiation Protection 542260 Plant Support 542261 Security 542262 Safety Services 542263 Emergency Planning EXHIBIT RKP-4 23 of 30 Department ID Number Department ID Description 542270 Nuclear Training 542271 Operations Training 542272 Technical Training 542273 Training Projects 542274 License Operator-Initial 542275 License Operator-Requalify 542276 RP & Chemistry Training 542277 Maint &Engineering Supp Prog 542300 Nuclear Engineering & Support 542310 Nuclear Engineering & Support 542319 Nuclear Engineering 542321 Admin - Reactor Engineering 542322 Site Reactor Enigeering 542323 Dallas Reactor Eng

.542331 Admin-Suppt/Design Eng 542332 Mechanical Engineering 542333 Electrical I&C Engineering 542334 Civil Site Facil Envimm Eng 542336 Projects Engineering 542337 System Engineering 542338 Maintenance Engineering 542339 Plant Modifications 542340 Administrative Services 542360 System Engineering 542370 MOD Team 542380 Technical Support 542390 Reactor Engineering 542400 Nuclear Overview 542410 Administrative 542420 Engineering Overview 542440 Maintenance Overview 542450 Plant Support Overview 542460 Programs Overview 542470 Operations Overview 542500 Nuclear Licensing 542600 TU Services - CPSES 542610 Management Support 542611 TU Services - CPSES 542620 Human Resources 542630 Procure Resources 542632 Nuclear Contracts 542650 Information Technology 542660 TU Services - Other 542661 Communication Services

- 99 -

EXHIBIT RKP-4 24 of 30 Department ID Number Department IDDescription 542662 Facilities Services 542663 Environmental Services 542664 Transportation Services 542665 Manage Assets 542666 Print Shop Services 542668 TUS Corporate Services 542700 Nuclear - Corporate 542900 CPSES & Service Providers 543000 Fossil Generation 543001 Fossil Operations 543100 Fossil Generation Admin 543200 Fossil Generation - Lignite 543220 Big Brown 543221 Big Brown Administrative 543222 Big Brown Maintenance 543223 Big Brown Operations 543224 Big Brown Technical Support 543230 Monticello 543231 Monticello Administrative 543232 Monticello Maintenance 543233 Monticello Operations 543234 Monticello Technical Support 543236 Monticello Maintenance A Area 543237 Monticello Maintenance C Area 543238 Monticello Maintenance E Area 543239 Monticello Maintenance X Area 543240 Martin Lake 543241 Martin Lake Administrative 543242 Martin Lake Maintenance 543243 Martin Lake Operations 543244 Martin Lake Technical Support 543250 Sandow 543251 Sandow Administrative 543252 Sandow Maintenance 543253 Sandow Operations 543254 Sandow Technical Support 543255 Sandow Common Facilities 543270 Forest Grove 543332 Generation 543450 Adv Generation Engineering 544000 Fossil Generation - Gas Oil 544100 Administrative - Gas-Oil 544200 West Central Gas Plants 544220 Mt Creek North Lake

- 100 -

EXHIBIT RKP-4 25 of 30 Department ID Number Department ID Description 544221 Mt Creek North Lake Admin 544222 Mt Creek North Lake Support 544223 Production - Mt Creek 544224 Production - Dallas 544225 Production - North Lake 544230 Lake Hubbard Parkdale 544231 Lake Hubbard Administration 544232 Lake Hubbard Support 544233 Production - Lake Hubbard 544234 Production - Parkdale 544240 Graham 544241 Graham Administration 544242 Graham Support 544243 Graham Production 544250 Morgan Creek 544251 Morgan Administration 544252 Morgan Creek Support 544253 Morgan Creek Production 544260 Permian Basin 544261 Permian Administration 544262 Permian Basin Support 544263 Permian Basin Production 544270 Handley Eagle Mt North Main 544271 Handley Eagle Administration 544272 Handley Eagle Support 544273 Production - Handley 544274 Production - Eagle Mt.

544275 Production - North Main 544300 East Gas Plants 544320 Stryker Creek 544321 Stryker Creek Administration 544322 Stryker Creek Support 544323 Stryker Creek Production 544330 Valley Rivercrest Collin 544331 Valley Rivercrest Admin 544332 Valley Rivercrest Support 544333 Production - Valley 544334 Production - Rivercrest 544335 Production - Collin 544340 Tradinghse Lk Creek Trinidad 544341 Tradinghse Lk Creek Admin 544342 Tradinghse Lk Creek Support 544343 Production - Tradinghouse 544344 Production - Lk Creek 101 -

EXHIBIT RKP-4 26 of 30 Department ID Number Department ID Description 544345 Production - Trinidad 544350 Decordova 544351 Decordova Admin 544352 Decordova Support 544353 Decordova Production 545000 Fossil Generation Eng &Supp 545010 Fossil Generation Eng & Supp 545110 Generation Engineer Services 545200 Generation Engineer Services 545210 Generation Engineer Services 545220 Systems Engineering Support 545230 Engineering Project Support 545240 Design Services 545250 Chemistry Support 545260 Performance Testing 545270 System Protection 545300 Maintenance & Const Services 545310 Maintenance &Const Services 545320 Project Services 545340 Projects Management 545342 Project Mgmt-Special Projects 545343 Project Mgmt-West District 545345 Project Mgmt-East District 545350 Equipment Repair Management 545352 Equipment Repair - Lignite 545353 Equipment Repair - Gas_Oil 545354 Equipment Repair -Service Cntr 545400 Generation Services 545500 Advanced Generation Engineer 545700 Special Projects - External 546000 Generation Support 546220 Lignite Projects 546320 Gas Projects 546420 Support Engineering 546500 Maintenance Support 546520 Equipment Specialists 546530 Maintenance Projects 546540 Equipment Repair 546550 Maintenance Services 546600 Availability Support 546620 Availability Services 546630 Design Services 546640 Competitive Analysis Services 546700 Technical Support

- 102 -

EXHIBIT RKP-4 27 of 30 Department ID Number Department ID Description 546720 Chemicals 546730 Performance Testing 546740 I&C Support 546750 Meter & Relay 547000 Community Relations 548000 Fuels 548100 Fuels-Administrative 548200 Fuel Planning &Analysis 548210 Fuel Planning &Analysis-Admin 548220 Fuel Planning 548230 Fuel Analysis 548300 Gas & Oil Acquisition 548310 Gas &Oil Acquisition 548320 Gas Acquisition 548330 Gas & Oil 548400 Gas Contract Administration 548410 Gas Contract Admin-Admin 548420 Contract Administration 548430 Oil & Gas Properties 548500 Coal Acquisition &Transport 548600 Fuel & Generation Coordination 549000 Generation Services 549100 Generation Srvcs Admin 549200 Generation Srvcs Plans 549300 Generation Srvcs Systems 549310 Gensrvs Systems Admin 549320 GenSrvs Systems Info Support 549330 GenSrvs Systems Market Info 549340 Gen_Srvs Systems Project Mgt 549400 Generation Srvcs Mkts 549410 Generation Srvcs Mkts Admin 549420 Generation Srvcs Mkt Forecast 549430 Generation Srvcs Mkt Support 549440 Gen Srvcs Mkt Projects 549500 Generation Srvcs Projects 549600 Generation Srvcs Development

- 103-

EXHIBIT RKP-4 28 of 30 TXU ELECTRIC COMPANY DEPARTMENT ID NUMBERS CORPORATE DIVISION

- 104 -

EXHIBIT RKP-4 29 of 30 Department ID Department ID Description 500000 Balance Sheet Entries 501000 Special Administrative 501010 Office Of The Chairmman 501020 Office Of The Vice Chairman 501021 Vice Chairman Austin Requlat 501030 Office Of The President 501080 Purchasing & Stores Loading 501090 Special 501091 Intercompany Eliminations 501900 Corporate Department - TUE 504000 SB7 Compliance 525000 Corporate Services 525100 Corporate Services 526000 Environmental Serv-Excl CPSE 526200 Waste Management 527000 Information Technology 527200 Info Tech - Excluding CPSES 527300 Info Tech - Telecom Direct 530000 Sr. VP-Finance & Accounting 531000 Finance & Corporate Support 532000 Austin Regulatory 534000 Administrative Services 534100 Administrative Services 534300 Transportation 534320 Fleet Maintenance & Operations 534330 Fleet Support 534340 Vehicle Expense 534400 Real Estate & Right-Of-Way 534430 Real Estate 534500 Facilities Management 535000 Controller 535200 Controller 536000 Finance 536200 Investor Relations 536300 Finance 536400 Financial Reports & Compliance 536500 Cash Management 537000 Corp Secretary & Risk Mgmt 537200 Risk Management 537400 Benefit Plans &Trust Admin 537900 Federal &State & Local Tax 538000 Personnel - Excl CPSES 538100 Personnel - Excl CPSES 538300 Employee Relations &Develop

- 105 -

EXHIBIT RKP-4 30 of 30 Department ID Department ID Description 538400 Compensation & Benefits 539000 Procurement 539410 Procurement 539420 Purchasing 539440 Materials Management 560000 EVP - Corporate Support

- 106 -

EXHIBIT RKP-5 Page 1 of 8 TXU ELECTRIC COMPANY FUNCTIONALIZATION OF FACILITIES BY PERCENTAGE BASED ON SQUARE FOOTAGE UTILIZATION co .2 _

Facility Address 42 E E 0 0 Abilene - LSG 1449 S. Treadway 21,622 95% 5%

Andrews 111 S. W. First St. 5,050 5% 95%

Big Spring 1701 1-20 West 28,238 44% 56%

Bryan - LSG 4200 Hwy 6 South 12,825 87% 13%

Cameron 305 W. Gillis 4,380 42% 58%

Childress - LSP Rt.1 Box 182A 4,545 11% 89%

Clebume 418 W. Henderson 5,625 80% 20%

Crane 421 S. Gaston 720 50% 50%

Dallas - LSG 2601 Logan St. 82,000 69% 31%

Dallas (CSB) 1506 Commerce St. Floor 100%

1506 Commerce St. Floor 100%

1506 Commerce St. Floor 100%

1506 Commerce St. Floor 100%

1506 Commerce St. Floor 100%

1506 Commerce St. Floor 100%

1506 Commerce St. Floor 100%

1506 Commerce St. Floor 100%

1506 Commerce St. Floor 100%

1506 Commerce St. Floor 100%

1506 Commerce St. Floor 100%

1506 Commerce St. Floor 100%

1506 Commerce St. Floor 100%

1506 Commerce St. Floor 100%

1506 Commerce St. Floor 100%

1506 Commerce St. Floor 100%

1506 Commerce St. Floor 100%

1506 Commerce St. Floor 100%

Dallas (CSB) 1506 Commerce St. Floor 100%

1506 Commerce St. Floor 100%

1506 Commerce St. Floor 100%

1506 Commerce St. Floor 100%

1506 Commerce St. Floor 100%

1506 Commerce St. Floor 100%

1506 Commerce St. Floor 100%

1506 Commerce St. Floor 100%

1506 Commerce St. Floor 100%

1506 Commerce St. Floor 100%

1506 Commerce St. Floor 100%

1506 Commerce St. Floor 100%

1506 Commerce St. Floor 100%

1506 Commerce St. Floor 100%

Dallas (DCEC) 300 S. St. Paul St. Floor G 100%

300 S. St. Paul St. Floor 01 100%

300 S. St. Paul St. Floor 02 100%

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EXHIBIT RKP-5 Page 2 of 8 0 Ch 0 >7 47 0 Facility Address x.a I-.

300 S. St. Paul St. Floor 03 100%

300 S. St. Paul St. Floor 04 100%

300 S. St. Paul St. Floor 05 100%

300 S. St. Paul St. Floor 06 100%

300 S. St. Paul St. Floor 07 100%

300 S. St. Paul St. Floor 08 100%

300 S. St. Paul St. Floor 09 100%

300 S. St. Paul St. Floor 10 100%

300 S. St. Paul St. Floor I1 100%

300 S. St. Paul St. Floor 12 100%

Dallas (DCNB) - LSG 301 S. Harwood St. Floor B 100%

301 S. Harwood St. Floor 01 100%

301 S. Harwood St. Floor 02 100%

301 S. Harwood St. Floor 03 100%

301 S. Harwood St. Floor 04 100%

301 S. Harwood St. Floor 05 100%

301 S. Harwood St. Floor 06 100%

301 S. Harwood St. Floor 07 100%

301 S. Harwood St. Floor 08 100%

301 S. Harwood St. Floor 09 100%

301 S. Harwood St. Floor 10 100%

301 S. Harwood St. Floor 11 100%

301 S. Harwood St. Floor 12 100%

301 S. Harwood St. Floor 13 100%

Dallas (DCSB) - LSG 301 S. Harwood St. Floor B 100%

301 S. Harwood St. Floor 01 100%

301 S. Harwood St. Floor 02 100%

301 S. Harwood St. Floor 03 100%

301 S. Harwood St. Floor 04 100%

301 S. Harwood St. Floor 05 100%

301 S. Harwood St. Floor 06 100%

301 S. Harwood St. Floor 07 100%

301 S. Harwood St. Floor 08 100%

301 S. Harwood St. Floor 09 100%

301 S. Harwood St. Floor 10 100%

Dallas (DCWB) - LSG 301 S. Harwood St. Floor B 100%

301 S. Harwood St. Floor 01 100%

301 S. Harwood St. Floor 02 100%

301 S. Harwood St. Floor 03 100%

301 S. Harwood St. Floor 04 100%

301 S. Harwood St. Floor 05 100%

301 S. Harwood St. Floor 06 100%

301 S. Harwood St. Floor 07 100%

301 S. Harwood St. Floor 08 100%

Dallas (EP) - TXU -1601 Bryan St. Floor B-3 100%

PROPERTIES 1601 Bryan St. Floor B-2 100%

1601 Bryan St. Floor B-1 100%

1601 Bryan St. Floor 01 100%

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EXHIBIT RKP-5 Page 3 of 8 Facility Address 1601 Bryan St. Floor M 1601 Bryan St. Floor 02 11_ _5 a CL C.)0 t

100%

100%

1601 Bryan St. Floor 03 100%

1601 Bryan St. Floor 04 100%

1601 Bryan St. Floor05 100%

1601 Bryan St. Floor 06 100%

1601 Bryan St. Floor07 100%

1601 Bryan St. Floor 08 100%

1601 Bryan St. Floor 09 100%

1601 Bryan St. Floor 10 100%

1601 Bryan St. Floor 11 30% 63% 7%

1601 Bryan St. Floor 12 97% 3%

1601 Bryan St. Floor 13 100%

1601 Bryan St. Floor 14 100%

1601 Bryan St. Floor 15 340/6 66%

1601 Bryan St. Floor 16 53% 100%

1601 Bryan St. Floor 17 4% 96%

1601 Bryan St. Floor 18 91% 9%

1601 Bryan St. Floor 19 11% 89%

1601 Bryan St. Floor 20 79% 21%

1601 Bryan St. Floor 21 100%

1601 Bryan St. Floor 22 100%

1601 Bryan St. Floor 23 100%

1601 Bryan St. Floor 24 100%

1601 Bryan St. Floor 25 100%

1601 Bryan St. Floor 26 100%

1601 Bryan St. Floor 27 100%

1601 Bryan St. Floor 28 100%

1601 Bryan St. Floor 29 100%

1601 Bryan St. Floor 30 100%

1601 Bryan St. Floor 31 100%

1601 Bryan St. Floor 32 100%

1601 Bryan St. Floor 33 100%

1601 Bryan St. Floor34 100%

1601 Bryan St. Floor35 100%

1601 Bryan St. Floor 36 100%

1601 Bryan St. Floor 37 6% 94%

1601 Bryan St. Floor 38 100%

1601 Bryan St. Floor 39 100%

1601 Bryan St. Floor 40 100%

1601 Bryan St. Floor 41 100%

1601 Bryan St. Floor42 100%

1601 Bryan St. Floor 43 100%

1601 Bryan St. Floor 44 100%

1601 Bryan St. Floor 45 100%

1601 Bryan St. Floor 46 100%

11601 Bryan St. Floor 47 100%

1601 Bryan St. Floor48 100%

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EXHIBIT RKP-5 Page 4 of 8 Li. C )

Facility Address 0 "! r =) Z 0 0 o)

Decatur 2505 S. Loop 287 95% 5%

Fort Worth - LSG 100 W. Momingside 59% 41%

Fort Worth(ESB) 115 W. 7th St. Floor SB 3,802 100%

115 W. 7th St. Floor B 29,094 100%

115 W. 7th St. Floor 01 100%

115 W. 7th St. Floor02 100%

115 W. 7th St. Floor 03 80% 20%

115 W. 7th St. Floor 04 27% 26% 47%

115 W. 7th St. Floor 05 100%

115 W. 7th St. Floor 06 100%

115 W. 7th St. Floor 07 100%

115 W. 7th St. Floor 08 100%

115 W. 7th St. Floor 09 100%

115 W. 7th St. Floor 10 100%

115 W. 7th St. Floor 11 100%

115 W. 7th St. Floor 15 100%

Fredericksburg - LSG 107 S. Lee St. 96% 4%

Garland - LSG 1310 Hwy 66 97% 3%

Irving (Stemmons) 100 N. Irving Heights 41% 59%

Jacksonville 214 E. Rusk St. 5% 95%

KIlfeen 210 W. Ave. C 98% 2%

Lancaster(SOSF) 1000 S.Dallas Hwy 77% 23%

Lancaster(SOSF) Shop 61% 39%

Mesquite 124 W. Davis 6,581 92% 8%

Mexia 100 W. Palestine 35% 65%

Midland 1700 W. Wall St. 75% 25%

Monahans 1300 N. Eva St. 5% 95%

Nacogdoches 513 North St. 71% 29%

Odessa 301 S. Dixie St. 75% 25%

Paris 635 Clarksville St. 84% 16%

Round Rock - LSG 3110 N. Interstate 35 94% 6%

Stamford 115 N. Swenson 33% 67%

Sweetwater Old Gulf Rd. 53% 47%

Temple 303 W. Calhoun Ave. 92% 8%

Texoma(Denison) 2201 Woodlake Rd. 98% 2%

Tyler 1300 S.E. Loop 323 20% 75% 5%

Waco 1500 W. Loop 340 70% 30%

Waco(Transm.) 3620 Franklin Ave. 93% 7%

Wichita Falls 1900 Jacksboro Hwy 10% 90%

Wichita Falls 1905 Bluff St. 23% 49% 28%

Wichita Falls - LSG 5808 Ashleyann Cr. 96% 4%

Wichita Falls 900 Scott Ave. 98% 2%

Wichita Falls Galveston St at Austin St 67% 33%

Abilene 1289 N. 2nd St. 100%

Abilene - LSG 241 Pine #9-B 100%

Aledo FM 412 & FM 1187 100%

Allen 101 W. McDermott 100%

Arlington - LSG 106 Stadium Drive 100%

Arlington 2118 S. Bowen Rd. 100%

- 110-

EXHIBIT RKP-5 Page 5 of 8 00 Facility Address n C X L 0 ~ 0 0)

Arlington 800 E. Border St. 100%

Arlington 100 W. Abram St. 100%

Athens Training Center 100%

Athens 1500 Old Kaufman Rd. 100%

Athens 611 E. Tyler St. 100%

Austin 100%

Big Brown Conference Cntr. 100%

Big Brown Environ. Research Cntr.

Bonham 120 W. 5th St. 100%

Bowie - LSG 101 E. Elba St. 3,260 100%

Breckenridge 100 E. Elm St. 3,000 100%

Brownwood 605 Fisk Ave. 100%

Brownwood 602 Fisk Ave. 100%

Brownwood 912 Sharp 100%

Burnet 106 W. Washington 100%

Cleburne 124 Industrial Blvd. 100%

Coleman 1300 Guadalupe 100%

Colorado City 140 W. 3rd St. 100%

Comanche 110 W. College 100%

Comanche 1300 W. Cherokee 100%

Comanche Peak SES Visitors Center 100%

Commerce 1318 Caddo St. 100%

Copperas Cove 210 S. First 100%

Corsicana 2600 E. Hwy 31 100%

Corsicana 301 S. 12th St. 100%

Corsicana 321 W. 5th Ave. 100%

Crockett 603-A E. Goliad 100%

Dallas 13101 Preston Ste.680 100%

Dallas Union Tower 100%

Dallas (Parking Lot) Canton St. 100%

Dallas (Parking Lot) Jackson & Lane St. 100%

Dallas (Record Storage) 913 S. Industrial 100%

Dallas (Storage Yard) 517 S. St Paul 100%

Dallas (White Rock) 11,333 E. NW Hwy 100%

Dallas SES 100%

Dallas(Central) 515 Park St. 100%

Dallas(OOC) 4500 Greenville 100%

Dallas(N) 7309 Frankford 100%

Dallas(NE) 4530 Greenville 100%

Dallas(Payne) 100 Payne St. 100%

Dallas(Payne) 146 Payne St. 100%

Dallas(SW) 2005 Cockrell Hill 100%

Denton 100 W. Mulberry 100%

Denton - LSG 106 N. Bradshaw 100%

DeSoto 1220 E. Pleasant Run 100%

DeSoto 203 S. Hampton 100%

DeSoto - LSG 917 E. Centre Park 100%

Duncanville 211 Freeman, #110 100%

Eastland 1400 Breckenridge 100%

Elgin 104 N. Main St. 100%

Enniss 300 W. Crocket St. 100%

- 111 -

EXHIBIT RKP-5 Page 6 of 8 Facility Address " <

- - -S -0 Ennis 303 W. Knox, #211 100%

Fairfield 101 S. Mount 100%

Farmers Branch 1015 Hutton Dr. 100%

Farmers Branch 11440 Josey Ln. 100%

Farmers Branch 14042 Distrbution Way 100%

Flower Mound 2990 Long Prairie Rd. 100%

Fomey 907 E. FM 688 100%

Fort Worth 6604 E. Rosedale 100%

Fort Worth (Pool Cars) E. Sixth St. 100%

Fort Worth(DOC) 1201 S. Sylvania 100%

Fort Worth(N) 2501 Urban Drive 100%

Fort Worth(W) 3500 El Campo 100%

Gainesville 112 N. Dixon 100%

Gainesville 1200 N. Dixon 100%

Garland 717 W. State St. 100%

Gatesville 2525-A E. Main St. 100%

Glen Rose 310 Walnut St. 100%

Glen Rose 100%

Graham 145 Tennessee St. 100%

Graham 3005 Hwy 16 South 100%

Graham 444 Oak St 100%

Granbury 100 N. Crockett St. 100%

Grand Prairie 121 N.W. Second St. 100%

Grand Prairie 400 W. College 100%

Grapevine 1125 S. Ball, Ste 100 100%

Greenville - LSG 7909 Traders Circle 100%

Haskell 304 North 1st 100%

HEB(Bedford) 2000 Reliance Pkwy. 100%

HEB(Euless) 200 N. Ector Dr. 100%

HEB(Euless) 2001 N. Industrial 100%

Henderson 107 E. Main 100%

Hillsboro 1520 Hwy. 77 North 100%

Hillsboro 220 W. Walnut 100%

Irving 115 N. Loop 12 100%

Irving - LSG 310 N. Rogers 100%

Irving 4200 N. Beltline 100%

Irving 100 N. Irving Heights 100%

Irving - LSG 300 N. Rogers 100%

Irving (Ligget) 100%

Irving(CC) 200 W. Carpenter Fwy 100%

Irving(DOC) 2525 Story Rd. 100%

Jacksonville 215 E. Rusk St. 100%

Jacksonville 409 Alabama 100%

Keller 310 N. Main, Ste A 1,196 100%

Kerrville 11 50-D Sidney Baker 100%

Kerrville 260 Thompson Dr. #7 100%

Kerrville 260 Thompson Dr. #9 100%

Killeen 1701 S. MLK Blvd. 100%

Killeen 317 N. Second St. 100%

Lake Creek (Adm.) 1 100%

Lake Dallas(Corinth) 3100 S. Garrison 100%

- 112-

EXHIBIT RKP-5 Page 7 of 8 ai.

0. C 0_

(U Z r ¢ Facility Address m .2 o..

16 E E Lamesa 107 Lynn St. 100%

Lamesa 424 N. 1st St. 100%

Lampasas 215 East Third 100%

Lancaster(SOSF) TOC 100%

Longview - LSG 2009 E. Cotton St. 100%

Lufkin 204 E. Burke 100%

Lufkin 4110 Ellen Trout Drive 100%.

Lufkin 5904 Lotus Ln. 100%

Madisonville 600 S. Madison 100%

Mansfield 301 S. Main, Ste 200 100%

Marlin 157 Live Oak 100%

Marlin 806 Monroe 100%

Martin Lake Unit 2 100%

McGregor 1000 S. Johnson Dr. 100%

McGregor 401 S. Madison 100%

McKinney 1515 N. McDonald 100%

McKinney 400 W. Virginia 100%

Mesquite 1545 High Point Dr. 100%

Mexia 211 N. Sherman 100%

Midland 2401 W. Industrial 100%

Mineral Wells 1200 S.E. 1st St. 100%

Mineral Wells FM 1821 100%

Mt. Pleasant 207 N. Madison 100%

Odessa 3800 E. 42nd St. 100%

Odessa Interstate 20 100%

Overton 110 S. Rusk 100%

Palestine 3101 S.W. Loop 256 100%

Palestine 421 E. Lacy 100%

Palestine 3301 W. Oak St. 100%

Paris 355 13th Southwest 100%

Pads Hwy 271 North 100%

Piano - LSG 1111 N. Jupiter Rd. 100%

Plano 1130 E. 15th Street 100%

Piano 1700 E. Plano Pkwy. 100%

Richardson 519 Lockwood Dr. 100%

River crest (Adm.) 100%

Rockwall 510 Turtle Cove #109 100%

Round Rock 106 E. Texas Ave. 1100%

Round Rock 203 W. Main St. 100%

Round Rock 206 W. Bagdad 100%

Rusk 415 N. Main 100%

San Angelo - LSG 1730 N. Main 100%

San Angelo 502 S. Koenigheim 100%

Seymour- LSG 222 N. Washington 100%

Snyder 2301 Avenue R 100%

Snyder 32nd &Ave. M 100%

Sommerville Training Center 100%

Squaw Creek Training Center 100%

Stephenville 833 N. Graham 100%

Sulphur Springs 1100 S. Como St. 100%

Sulphur Springs 1110 S. Como St. 100%

Sulphur Springs 400 Hwy 19 North 100%

- 113-

EXHIBIT RKP-5 Page 8 of 8 C C 4v Facility Address .D o 0 0. 0.

Sulphur Springs - LSG 402 Church St. 100%

Sweetwater 315 E. Broadway 100%

Taylor 407 N. Main St. 100%

Teague 505 Main Temple 1200 Commerce St 100%

Temple - LSG 308 S. 7th St. 100%

Temple 404 S. Third 100%

Terrell 105 N. Rockwall 100%

Terrell 310 Hwy 205 North 100%

Texoma(Denison) 430 W. Chestnut 100%

Texoma(Denison) 511 S. Mirick Ave. 100%

Texoma(Sherman) 110 W. Mulberry 100%

Texoma(Sherman) 305 E. Lamar 100%

Texoma(Sherrnan) 313 Dorsett Dr. 100%

Texoma(Sherman) 5111 Blue Flame Ln. 100%

Valley (Adm.) 100%

Vernon 226 E. Wilbarger 100%

Vernon 228 E. Wilbarger 100%

Waco 3600 Franklin Ave. 100%

Waco 3620 Franklin Ave. 100%

Waco 3620 Franklin Ave. 100%

Waco 901 Washington Ave. 100%

Waco(CC) 1400 W. Loop 340 100%

Waco(DDC) 5009 Fort 100%

Waxahachie 2801 John Arden Dr. 100%

,Waxahachie 401 1/2 Ferris Ave. 100%

Waxahachie 401 Ferris Ave. 100%

Whitehouse 101 Horton St. 100%

- 114 -

INDEX TO THE DIRECT TESTIMONY OF DAVID M. DAVIS, WITNESS FOR TXU ELECTRIC COMPANY POSITION AND QUALIFICATIONS ..................................................... 3 II. PURPOSE OF TESTIMONY ................................................................. 4 III. ACCESS CONTROLS AND OTHER INFORMATION-SHARING SAFEGUARDS ..................................................................................... 5 A. Mainframe Computer Systems ........................... 5

1. Overview ................................................................................... 5

2. Access Controls ......................................................................... 7

a. Processing Units ................................................................... 7

b. Application Software .............................................................. 8

c. Operating System Software ................................................ 10

d. Physical Facilities ................................................................. 10

e. Customer Information System .............................................. 10 B. Client Server Computer Systems ................................................... 14

1. Overview ................................................................................. 14

2. Access Controls ........................................................................ 15

3. Physical Facilities ...................................................................... 17 C. Electronic Mail System ................................................................... 18

1. Overview ................................................................................... 18

2. Access Controls ....................................................................... 18

3. Behavioral Safeguards .............................................................. 19

a. Separate Address Books .................................................... 19

b. Limited Type-Ahead Features .............................................. 19 D. Communications ............................................................................ 20

1. Overview ................................................................................... 20

2. Local Area Data Network .......................................................... 21

a. Overview ............................................................................ 21

b. Access Controls ................................................................... 21 Davis - Direct-TXU Electric

- 1 - Business Separation Plan

3. Voice Com m unications ........................................................... .23

a. Telephone .......................................................................... 23

b. Two-W ay Radio ................................................................... 24

i. Overview ................................................................... 24 ii. Access Controls ....................................................... 24

4. Internet And Intranet Com munication ....................................... 25

5. W ide Area Data Network .......................................................... 27

a. Overview ............................................................................ 27

b. Access Controls ................................................................... 27 E. Other Safeguards ......................................................................... 28 IV. CO NCLUSION ................................................................................... 29 V. AFFIDAVIT ........................................................................................... 30 Vl. EXHIBIT EXHIBIT DMD-1 Overview of Network Sponsored by David M. Davis ..... 31 Davis - Direct-TXU Electric Business Separation Plan

1 DIRECT TESTIMONY OF FIRST M. LASTNAME 2  !. POSITION AND QUALIFICATIONS 3 Q. PLEASE STATE YOUR NAME AND ADDRESS.

4 A. My name is David M. Davis. My business address is 1601 Bryan Street, 5 Dallas, Texas 75201.

6 Q. BY WHOM ARE YOU EMPLOYED AND IN WHAT CAPACITY?

7 A. I am employed by TXU Business Services and hold the position of 8 Information Technology Business Manager.

9 Q. PLEASE OUTLINE YOUR EDUCATIONAL AND PROFESSIONAL 10 QUALIFICATIONS.

11 A. I graduated from the University of Texas at Arlington in 1991 with a 12 Bachelor of Business Administration degree in Accounting. After 13 graduation, I was employed by TXU Business Services (formerly TU 14 Services, Inc.) in June 1991 and worked in various areas of the Corporate 15 Accounting Department. Beginning April 1992, I assumed the role of 16 project manager for development of electronic data interchange (EDI) 17 invoice processing. In December 1992, I joined the Management 18 Accounting staff. In December 1996, I became the Manager of TXU 19 Business Services Management Accounting - Client Services. I held that 20 position until December 1997, when I became the Management Support 21 Manager for TXU Business Services. Since December 1998, I have been 22 serving as the Business Manager for Information Technology. I am a 23 Certified Public Accountant in the State of Texas.

24 Q. WHAT IS THE NATURE OF YOUR RESPONSIBILITIES WITH TXU 25 BUSINESS SERVICES?

26 A. As Information Technology Business Manager, I am responsible for:

27 business plan preparation, including the annual budget; financial and 28 operating performance measurement and reporting; financial systems 29 modeling and analysis; process improvement; and developing and 30 maintaining business processes required to support strategic and tactical 31 decisions.

Davis - Direct-TXU Electric Business Separation Plan

1 II. PURPOSE OF TESTIMONY 2 Q. WHAT IS THE PURPOSE OF YOUR TESTIMONY?

3 A. The purpose of my testimony is to describe the Texas Utilities Company's 4 ("TXU Corp") management of shared information and technology systems 5 between the transmission and distribution company and competitive 6 affiliates. More specifically, my testimony will address access controls that 7 prevent employees of a competitive affiliate from gaining inappropriate 8 access to information about transmission and distribution system 9 operations and other confidential information. Access controls for these 10 technology systems include both physical and logical separation of 11 information, as well as behavioral modifiers to guard against 12 circumvention of the code of conduct. By implementing the access 13 controls and other safeguards described herein, TXU Corp and its 14 subsidiary companies have been ensuring and will continue to ensure that 15 information is not shared in a manner that creates undue preferential 16 treatment, unfair competitive advantage, or significant opportunities for 17 cross-subsidization of competitive affiliates. The major components of 18 shared technology systems discussed in my testimony include: data 19 processing, including mainframe and client server computer systems; 20 electronic mail; local area data network (LAN); voice communications, 21 including telephone and two-way radio communications; connection to the 22 internet; and the wide area data network (WAN).

23 Q. WILL YOUR TESTIMONY ADDRESS THE COST ALLOCATION 24 METHODS FOR SHARED INFORMATION AND TECHNOLOGY 25 SYSTEMS AMONG AFFILIATES?

26 A. The costs to install, support, and maintain shared information and 27 technology systems are incurred by TXU Business Services Information 28 Technology. The testimony of Mr. Stephen R. Ragland discusses 29 transactions between TXU Business Services and the subsidiaries, 30 divisions, and operating units within TXU Corp following the unbundling of 31 TXU Electric Company ("TXU Electric"). Mr. Ragland's testimony supports Davis - Direct-TXU Electric

" Business Separation Plan

1 the reasonableness and necessity of expenses billed by TXU Business 2 Services to TXU Corp entities and demonstrates that the prices charged 3 by TXU Business Services to any one TXU Corp entity are no higher than 4 the prices charged by TXU Business Services to other TXU Corp entities 5 or to a non-affiliated third party for the same class of items. A description 6 of the cost assignment methodologies used to assign costs for each 7 activity, including Information Technology activities, billed to TXU Corp 8 entities will be provided in TXU Electric's April 1, 2000 Cost Separation 9 Filing.

10 III ACCESS CONTROLS AND OTHER INFORMATION-SHARING 11 SAFEGUARDS 12 A. Mainframe Computer Systems 13 1. Overview 14 Q. PLEASE PROVIDE AN OVERVIEW OF THE MAINFRAME 15 PROCESSING ENVIRONMENT.

16 A The mainframe processing environment can be roughly divided into three 17 broad categories: central processing units (CPUs), storage, and software.

18 The existing TXU Corp mainframe complex includes three physical central 19 processing units that currently provide 1,456 million instructions per 20 second (MIPS) of data processing capacity. Offsite processor backup, for 21 system failure protection, is provided by IBM. While there are three 22 physical CPUs, each processing unit is divided into multiple logical 23 partitions creating separate logical CPUs. As controlled by operating 24 system software, processing activity cannot migrate into other logical 25 partitions even if all the resources (MIPS, memory) have been consumed 26 in a given partition. Coupling facilities are often made between logical 27 partitions to share resources in the event of system failure or to support 28 monthly maintenance.

29 The second category, mainframe storage, is primarily provided by 30 direct access storage devices (DASD), stand-alone tape devices and tape 31 silos. All storage devices are attached to mainframe CPUs via high speed 32 fiber optic channels. As of November 1999, there are 5.5 terabytes of Davis - Direct-TXU Electric Business Separation Plan

1 DASD storage and 25,508 tape cartridges holding 144.8 terabytes of data, 2 all connected to the mainframe CPUs. For reference purposes, each 3 terabyte is equivalent to approximately 1,049,000 megabytes. Mainframe 4 data storage devices are co-located with mainframe central processing 5 units at the mainframe complex.

6 The third category, mainframe processing software, can be 7 bifurcated into system software and application software. System software 8 can be subdivided into three categories: (1) operating system software, 9 which handles the interface to peripheral hardware, schedules tasks, 10 allocates storage, and presents a default interface to the user when no 11 application program is running; (2) transaction processors, which transmit 12 data from the application to the receiving terminal and are particularly 13 suited for organizations dealing in very high message traffic and large 14 communication networks; and (3) database software, which provides the 15 structure and format for data storage on various types of storage media.

16 Application software can be described as a complete, self 17 contained program that performs a specific function directly for the 18 application "owner." Examples of application software include the 19 Procurement Materials Management System, which, among other 20 functions, tracks inventory levels and records payment for materials and 21 supplies, and the Employee Information System, which contains employee 22 records including work history, rate of pay, and social security information.

23 Q. IS THERE AN OVERARCHING APPROACH TO DATA SECURITY IN 24 THE MAINFRAME ENVIRONMENT?

25 A. The overarching approach is to ensure that all data and functions are 26 secure and controls are in place to prevent unauthorized access to such 27 data and functions. Notably, that overarching security approach extends 28 beyond the mainframe environment to all shared information and 29 technology systems. Information Technology Security, an organization 30 within TXU Business Services Information Technology that has 31 responsibility for coordinating data security for all TXU Corp shared Davis - Direct-TXU Electric Business Separation Plan

I information and technology systems, provides for the implementation of 2 preventive, detective, and corrective controls. Preventive measures 3 include shunning hacker attacks; overseeing intrusion testing by third 4 party vendors; controlling access to information technology facilities, 5 hardware, and software; and establishing and communicating information 6 control policies and procedures. Detective measures include monitoring 7 and reporting functions, as well as auditing certain communication flows, 8 such as e-mail. Corrective controls include disaster recovery, incidence 9 management, security alerts, and enforcement of information technology 10 policies and procedures related to information control. The 11 aforementioned data security measures already in place directly support 12 the objective of appropriate controls with respect to business separation 13 between the transmission and distribution company and competitive 14 affiliates.

15 2. Access Controls 16 a. Processing Units 17 Q. ARE THERE ACCESS CONTROLS BUILT INTO THE MAINFRAME 18 PROCESSING UNITS THEMSELVES?

19 A. Yes, as I have previously mentioned, each physical processing unit, or 20 CPU, is broken down into separate logical partitions that run 21 autonomously of other logical partitions in the CPU. Logical partitions 22 assigned exclusively to the transmission and distribution company will be 23 structured so information is not shared with other logical partitions. Logical 24 partitioning has been used primarily to allocate MIPS and memory across 25 systems, but partitioning also effectively prevents one piece of software 26 from interacting with or impacting another piece of software. Each logical 27 partition is assigned a set of MIPS and memory that can be utilized only 28 by the software residing on that partition. As I have previously mentioned, 29 processing activity cannot spread into other logical partitions even if all the 30 resources (MIPS and memory) have been consumed in a given partition.

Davis - Direct-TXU Electric Business Separation Plan

1 Q. DIDN'T YOU STATE THAT COUPLING FACILITIES ARE OFTEN MADE 2 ACROSS LOGICAL PARTITIONS TO SHARE RESOURCES IN THE 3 EVENT OF SYSTEM FAILURE OR TO SUPPORT MONTHLY 4 MAINTENANCE?

5 A. Yes. Coupling facilities are often made across logical partitions to share 6 resources as a result of maintenance and event planning.

7 Q. DOESN'T THE COUPLING OF LOGICAL PARTITIONS CREATE A RISK 8 OF OVERRIDING TRANSMISSION AND DISTRIBUTION COMPANY 9 AND COMPETITVE AFFILIATE PARTITIONING?

10 A. No. The implementation of a coupling facility across logical partitions must 11 be consciously designed and implemented rather than occurring by 12 happenstance. As previously discussed, it may be desirable to establish 13 more than one logical partition for transmission and distribution company 14 operations. If for example, fail-over protection were needed for a 15 transmission and distribution company partition, a second dedicated 16 transmission and distribution company partition would be created for that 17 specific purpose. The second transmission and distribution company 18 partition would also not be shared with any competitive affiliate.

19 Q. WHICH TXU ORGANIZATION HAS RESPONSIBILITY FOR CREATING 20 AND ADMINISTERING MAINFRAME CPU LOGIC PARTITIONS?

21 A. Creation and administration of logical mainframe partitions is the 22 responsibility of Information Technology Operations.

23 b. Application Software 24 Q. IN DESCRIBING THE MAINFRAME PROCESSING ENVIRONMENT 25 YOU STATED THAT APPLICATION SOFTWARE CAN BE DESCRIBED 26 AS A PROGRAM THAT PERFORMS A FUNCTION FOR THE 27 APPLICATION "OWNER." HOW ARE APPLICATION "OWNERS" 28 IDENTIFIED?

29 A. Application "owners" are identified by determining the organization 30 responsible for the maintenance and accuracy of the data for a given 31 application. As examples, the Employee Information System is "owned" by Davis - Direct-TXU Electric Business Separation Plan

1 the Human Resources organization and the Procurement Materials 2 Management System is "owned" by the Procurement organization.

3 Transmission and Distribution "own" applications that are separately 4 identified from competitive affiliate "owned" applications. An example of a 5 Distribution application would be the Distribution Information System 6 (DIS). DIS supports planning, design, and mapping of the electric grid, as 7 well as automating work management.

8 Q. HOW WILL THE TXU CORP SYSTEM ENSURE THAT APPROPRIATE 9 ACCESS RESTRICTIONS ARE MAINTAINED SO THAT ONLY 10 APPROPRIATELY APPROVED PERSONS CAN ACCESS 11 APPLICATION INFORMATION?

12 A. Currently, personnel in Information Technology Security are responsible 13 for issuing and coordinating approvals for employees that are designed to 14 ensure appropriate restrictions are maintained on access to information.

15 The approach is two-tiered. Information Technology Security personnel 16 provide the first tier of authorization, which allows a particular employee to 17 have access to each application that is used by that employee's business 18 unit or some other group of employees that includes the employee. The 19 second tier of authorization comes from the "owner" of the application. The 20 application "owner" determines what information in each application is 21 appropriate for access by each employee that is authorized to use that 22 application. Thus, under the current system, if it is appropriate for a 23 particular employee to be able to use a particular application but not to be 24 able to see some of the information that is held in that application, the two 25 tiered authorization approach will ensure that result. Importantly, if the 26 application "owner" is a regulated business function, an employee that 27 serves in a competitive business function will not be able to access any 28 information in the application that the regulated business function does not 29 authorize. Individual six-digit passwords (known only by the user) and 30 unique identification numbers (assigned by Information Technology 31 Security) are used to provide both control and accountability for each Davis - Direct-TXU Electric

-9 - Business Separation Plan

1 individual's activities. Thus, the mechanisms necessary to provide strong 2 restraints on sharing of information are in place. It is the intent of TXU 3 Corp to use the same two-tiered approach, or a different approach that is 4 at least as effective, in the future.

5 Q. ARE PASSWORDS REGULARLY UPDATED?

6 A Yes. The employee is assisted in password update by being electronically 7 required to change their password every ninety days before they are 8 allowed access to applications.

9 c. Operating System Software 10 Q. ARE ACCESS CONTROLS NEEDED FOR OPERATING SYSTEM 11 SOFTWARE?

12 A. Yes. By design, operating system software does not contain transmission 13 and distribution company operation data. However, access to operating 14 system software must be limited to prevent unauthorized users from 15 changing parameters, deleting lines of code, etc., that would impact the 16 continued operation of operating system software and, ultimately, 17 applications dependent on those operating systems.

18 d. Physical Facilities 19 Q. WHAT PHYSICAL SECURITY MEASURES ARE IN PLACE FOR THE 20 MAINFRAME PROCESSING ENVIRONMENT?

21 A. Access control and access monitoring for the mainframe complex are 22 restricted by card key access points. Only Information Technology 23 personnel or selected other personnel, both approved by Information 24 Technology management, can gain access without manual intervention by 25 facility management personnel.

26 e. Customer Information System 27 Q. ARE THERE ANY MAINFRAME ENVIRONMENT APPLICATIONS FOR 28 WHICH SPECIAL PRECAUTIONS WILL BE TAKEN TO ENSURE THAT 29 A THIRD-PARTY ORGANIZATION, WHICH IS NOT A USER OF THE 30 INFORMATION IN THE APPLICATION, WILL CONTROL BOTH FIRST 31 TIER AND SECOND-TIER AUTHORIZATIONS?

Davis - Direct-TXU Electric Business Separation Plan

1 A. Yes. Information Technology Security will control both first-tier and 2 second-tier authorizations for the existing Customer Information System 3 ("CIS"), which will be functionally segmented and used by both the 4 transmission and distribution company and any affiliated retail electric 5 provider. Just like other applications, Information Technology Security 6 personnel will control the first tier of authorization, which allows a 7 particular employee to have access to the CIS application. The second tier 8 of authorization will also be controlled by Information Technology Security, 9 a third party non-user of the information, to ensure that information access 10 is handled in a manner consistent with code of conduct guidelines.

11 Consistent with application of the two-tiered access approach for other 12 applications, it continues to be the case that an employee who serves in a 13 competitive business function will not be able to access any information in 14 the CIS application that is not appropriate for that employee to view. As 15 with other applications, individual six-digit passwords (known only by the 16 user) and unique identification numbers (assigned by Information 17 Technology Security) are used to provide both control and accountability 18 for each individual's activities.

19 Q. WHY IS THE EXISTING CIS BEING FUNCTIONALLY SEGMENTED 20 RATHER THAN CREATING SEPARATE CIS SYSTEMS FOR THE 21 TRANSMISSION AND DISTRIBUTION COMPANY AND A TXU RETAIL 22 ELECTRIC PROVIDER?

23 A. The continued use of the existing CIS is required in order to provide a 24 seamless transition at market opening with minimal impact on customers.

25 Under Senate Bill 7, the obligation to provide billing services falls upon the 26 retail electric provider instead of the transmission and distribution 27 company. The function of billing approximately 2.4 million residential and 28 commercial and industrial customers with a demand less than 1,000 29 kilowatts requires massive amounts of mainframe processing and data 30 storage. Conversion of approximately 2.4 million customers to a new 31 system by December 31, 2001 has a significant element of risk due to the Davis - Direct-TXU Electric Business Separation Plan

1 amount of customer information that must be transferred in a compressed 2 time-frame. The time-frame does not allow sufficient time for testing, 3 installation, and data conversion to the extent necessary to assure that 4 customers will not be impacted by the conversion.

5 Q. WILL ALL CUSTOMERS CONTINUE TO BE SUPPORTED IN THE 6 EXISTING CIS ?

7 A. No. The retail electric provider will establish its own competitive customer 8 information system to handle: (1) commercial and industrial customers 9 with demand exceeding 1,000 kilowatts; (2) new customers moving into 10 the area; and (3) customers who request optional products and services.

11 Q. WILL SEGMENTATION OF THE EXISTING CIS CONFER A 12 COMPETITIVE ADVANTAGE ON TXU ELECTRIC'S AFFILIATED 13 RETAIL ELECTRIC PROVIDER?

14 A. No. Other than providing usage information and other technical data that 15 will be provided to each retail electric provider serving each retail 16 customer, the existing CIS will not be used to support an affiliated retail 17 electric provider's sales to the three categories of customers I have just 18 described. As previously stated, a separate CIS, used only by an affiliated 19 retail electric provider, will be established by the affiliated retail electric 20 provider to handle: in-area commercial and industrial customers whose 21 demand exceeds 1,000 kilowatts; new customers moving into the area; 22 and customers who request optional products and services. The continued 23 use of the existing CIS system for customers that are not being served 24 competitively does not confer a competitive advantage, but does allow an 25 affiliated retail electric provider to seamlessly continue to serve existing 26 residential and small commercial and industrial customers without the risk 27 of negatively impacting those customers.

28 Q. PROVIDE A

SUMMARY

BREAKDOWN OF THE PROPOSED CIS DATA 29 SEGMENTATION BETWEEN THE UTLITY AND THE RETAIL ELECTRIC 30 PROVIDER ON JANUARY 1,2002.

31 A. CIS data is proposed to be segmented in the following manner:

Davis - Direct-TXU Electric Business Separation Plan

1 TRANSMISSION AND DISTRIBUTION COMPANY:

2 0 Service Point Data (service address, delivery voltage, phase of meter, 3 meter reading route, grid number);

4

• Meter Reads; 5

• Energy Consumption; and 6 ° Service Order Completion Information.

7 RETAIL ELECTRIC PROVIDER:

8

• Customer Data (name, service address, mailing address, phone 9 number, social security number, drivers license number, employer 10 information);

11

• Meter Reads; 12 9 Energy Consumption; 13

• Service Order Initiation Information; 14 ° Billing Information; 15 ° Deposit Information; 16 0 Payment History; 17

• Credit History; 18 0 Credit Rating; 19 a Current Amount Due; 20 0 Past Due and Days in Arrears; 21

• Extension Date; and 22 ° Returned Checks.

23 The segmentation of CIS data will be coordinated with the ERCOT ISO 24 registration system. Adequate data will need to be supplied to the 25 transmission and distribution company so that it may verify restoration of 26 service during outages.

27 Q. HOW WILL COSTS BE ASSIGNED BETWEEN THE TRANSMISSION 28 AND DISTRIBUTION COMPANY AND THE RETAIL ELECTRIC 29 PROVIDER FOR USE OF THE EXISTING CIS SYSTEM?

Davis - Direct-TXU Electric Business Separation Plan

1 A. Cost of the existing CIS system will be assigned between the transmission 2 and distribution company and the retail electric provider based on an 3 analysis of the cost-causative cost drivers for the CIS system and 4 segmented sub-systems. The cost-causative cost drivers will be identified 5 and explained in the April 2000 filing.

6 Q. HOW WILL YOU ENSURE THAT RETAIL ELECTRIC PROVIDERS 7 OTHER THAN AN AFFILIATED RETAIL ELECTRIC PROVIDER CAN 8 COMMUNICATE WITH THE TXU TRANSMISSION AND DISTRIBUTION 9 COMPANY AND OBTAIN NECESSARY DATA ON A BASIS THAT IS 10 COMPARABLE TO THE AFFILIATED RETAIL ELECTRIC PROVIDER'S 11 ABILITY TO OBTAIN SUCH DATA?

12 A. TXU Corp will comply with the principles and procedures contained in the 13 code of conduct and developed by ERCOT and the Commission related to 14 the transfer, storage, and accessibility of customer data in the 15 marketplace.

16 B. Client Server Computer Systems 17 1. Overview 18 Q. PLEASE PROVIDE AN OVERVIEW OF THE CLIENT SERVER 19 PROCESSING ENVIRONMENT.

20 A. Generally the term "client server" refers to high powered business 21 computer processors approximately the size of a large desktop business 22 computer. However, a mainframe CPU can be used as an enterprise-wide 23 client server for large applications. For the purposes of my testimony, the 24 client server processing environment will be restricted to smaller, non 25 mainframe processing equipment. Because they are small in size, can be 26 easily grouped together, and do not require the same physical operating 27 environment standards (cooling and electric power requirements) as a 28 mainframe CPU, client servers can be distributed geographically at 29 various business locations. Currently, the TXU Corp system has 30 distributed client server environments at Energy Plaza and the Harwood 31 Complex in Dallas; the Electric Service Building in Fort Worth; the Davis - Direct-TXU Electric Business Separation Plan

1 mainframe complex; Comanche Peak Steam Electric Station; and at 2 various offices across the service area. The ability to physically distribute 3 client servers across business locations has eamed this group of 4 processors the "distributed processing" tag. Client servers are generally 5 divided into four groups that perform specific functions. The four major 6 functional groupings are domain controllers, file servers, print servers, and 7 application servers. There are currently 500 distributed servers and three 8 predominant operating systems in the TXU Corp system companies 9 business environment: Microsoft's Windows NT, IBM's AIX, and Sun's 10 Solaris.' More than 90% of the distributed servers are Windows NT 11 servers.

12 2. Access Controls 13 Q. PLEASE DESCRIBE THE ACCESS CONTROLS THAT FUNCTION 14 WITHIN THE CLIENT SERVER OPERATING ENVIRONMENT.

15 A. Domains and domain controllers are at the heart of client server security.

16 A domain is basically a collection of server resources. Each domain has a 17 primary domain controller. The primary domain controller of each domain 18 contains the directory that details each user in the domain and the 19 information they can access. Logical domains are created by grouping 20 resources under a common domain much like some residential 21 neighborhoods are grouped into a domain by a security fence that forms a 22 perimeter around the neighborhood. In this example, the on-duty security 23 guard operates as the domain controller by checking the neighborhood 24 directory for the name of those individuals requesting access. If the 25 directory does not contain the name of the requestor, the guard (domain 26 controller) turns the requestor away. But, unlike the security guard who 27 stops at allowing access to the neighborhood, the domain controller 28 follows an approved requestor to the individual house (application) and 29 repeats the request-access grant/deny routine. Directories contained 30 within the primary domain controller, and coordinated by Information 31 Technology Security, provide the first tier of authorization similar to tier Davis - Direct-TXU Electric Business Separation Plan

1 one authorization in the mainframe environment. Requestors contact the 2 Information Technology help desk to request access to applications and 3 data in a given domain. The help desk issues a request order to 4 Information Technology Security. Information Technology Security verifies 5 whether the requestor is authorized by the domain resident (e.g., TXU 6 Electric Distribution) for the requested access and either makes the 7 necessary access update to the domain directory or denies the request.

8 The second tier of authorization in the client server environment is also 9 similar to the second tier of authorization in the mainframe environment.

10 The second tier of authorization comes from the "owner" of the application 11 residing within the domain. The application "owner" determines what 12 information in each application is appropriate for access by each 13 employee that is authorized to use that application. As in the mainframe 14 environment, if it is appropriate for a particular employee to be able to use 15 a particular application but not to be able to see some of the information 16 that is held in that application, the two-tiered authorization approach will 17 ensure that result. As was mentioned previously, it is important to note 18 that an employee who serves in a competitive business function will not 19 be able to access any information in an application "owned" by a regulated 20 business function that the regulated business function does not authorize.

21 Individual six-digit passwords (known only by the user) and unique 22 identification numbers (assigned by Information Technology Security) are 23 used to provide both control and accountability for each individual's 24 activities. Thus, the mechanisms necessary to provide strong restraints on 25 sharing of information are in place. It is the intent of TXU Corp to use the 26 same two-tiered approach, or a different approach that is at least as 27 effective, in the future.

28 Q. ARE PASSWORDS REFRESHED PERIODICALLY AS THEY ARE IN 29 THE MAINFRAME ENVIRONMENT?

Davis - Direct-TXU Electric Business Separation Plan

1 A. Yes. As in the mainframe environment, every ninety days the requestor is 2 assisted in password refresh responsibilities by being denied access to 3 approved systems until the password has been refreshed.

4 Q. HOW ARE DOMAINS CURRENTLY SEGMENTED?

5 A. There are four major domain groupings: TXU-MAIN, Corporate 6 applications; FOSSIL, Fossil Generation; TRANSMISSION, Transmission 7 Business Unit; and DISDC, Distribution Business Unit.

8 Q. HOW WILL DOMAINS BE SEGMENTED IN THE FUTURE?

9 A. Transmission and distribution company applications will reside in a client 10 server domain that is separated from other affiliates, including competitive 11 affiliates. Corporate shared applications, such as the Financial Information 12 Management system, will reside in a domain that is also separated from 13 other affiliates.

14 Q. WHICH ORGANIZATION HAS ADMINISTRATIVE RESPONSIBILITY 15 FOR ESTABLISHING DOMAINS?

16 A Information Technology Operations is responsible for installing and 17 maintaining the client server environment, including creation of logical 18 domains. Information Technology Security has responsibility for granting 19 access to the domain.

20 3. Physical Facilities 21 Q. WHAT PHYSICAL SECURITY MEASURES ARE IN PLACE FOR THE 22 CLIENT SERVER DISTRIBUTED PROCESSING ENVIRONMENT?

23 A. Client server clusters at Energy Plaza, Harwood Complex, Electric Service 24 Building, and Comanche Peak locations are kept in restricted access 25 rooms. Access control and access monitoring for the above listed 26 locations are provided by card key and key restricted-access points. Only 27 approved personnel can gain access without manual intervention by on 28 premise security.

Davis - Direct-TXU Electric Business Separation Plan

1 C. Electronic Mail System 2 1. Overview 3 Q. PLEASE PROVIDE AN OVERVIEW OF LOTUS NOTES E-MAIL AND 4 APPLICATION FUNCTIONS.

5 A All Lotus Notes functions are basically provided through databases. A 6 Lotus Notes application can be created through combining one or more 7 database files. One such application might be a phone book listing of 8 information about an individual such as phone number, office location, and 9 company name. As with the client server environment description, the key 10 to data access control in Lotus Notes is the creation of domains that are 11 monitored and controlled by domain controllers. Unlike the client server 12 environment described previously, Lotus Notes has but one controller for 13 various domains. In Lotus Notes, the public name and address book is the 14 directory for the controller. The public name and address book contains 15 information about individuals that not only allow Lotus Notes to deliver 16 mail to an individual's mail file, but also provides processing rules that 17 allow or deny access to Lotus Notes database files for an individual. Each 18 individual name in the Lotus Notes address book carries with it a 19 certificate that identifies that individual within the Lotus Notes 20 environment.

21 2. Access Controls 22 Q. HOW WILL LOTUS NOTES SEGREGATE THE TRANSMISSION AND 23 DISTRIBUTION COMPANY FROM COMPETITIVE AFFILIATES?

24 A. Today, Lotus Notes does not differentiate among affiliates. Employees of 25 TXU Electric and of competitive affiliates can freely share mail and access 26 to the same Lotus Notes database applications. Prior to January 1, 2002, 27 transmission and distribution company employees and contractors will be 28 placed in separate domains from employees and contractors of 29 competitive affiliates. Separate domains will restrict the sharing of 30 application databases between the transmission and distribution company 31 and competitive affiliates.

Davis - Direct-TXU Electric Business Separation Plan

1 3. Behavioral Safeguards 2 a. Separate Address Books 3 Q. WHAT ARE CASCADING ADDRESS BOOKS?

4 A. Cascading address books are simply a way to put multiple public name 5 and address books together. It is very much like putting phone books 6 together (e.g., Dallas and Houston). Cascading address books allow a 7 Lotus Notes user to look in one location to find the name and address of 8 anyone in any of the TXU Corp system companies. This has been done to 9 make mail addressing easy.

10 Q. WHAT IS THE IMPACT OF CREATING SEPARATE DOMAINS ON 11 CASCADING ADDRESS BOOKS?

12 A. The impact is more on behavior modification than anything else. If address 13 books for transmission and distribution company employees are placed in 14 separate domains from competitive affiliates, employees from the 15 transmission and distribution company will be required to go to a separate 16 address book before searching for the name of a competitive affiliate 17 employee. The transmission and distribution company employee thus has 18 a trigger to consider why it is that he or she must go to a separate address 19 book, with the answer being that transmission and distribution company 20 employees are different from competitive affiliate employees in terms of 21 information sharing.

22 Q. WILL THE DOMAIN ESTABLISHED FOR THE TRANSMISSION AND 23 DISTRIBUTION COMPANY ADDRESS BOOK BE SEPARATE FROM 24 THE DOMAIN ESTABLISHED FOR COMPETITIVE AFFILIATES?

25 A. Yes.

26 b. Limited Type-Ahead Features 27 Q. EXPLAIN TYPE-AHEAD FEATURES OF LOTUS NOTES 28 A. The type-ahead feature allows a mail sender to simply begin typing the 29 name of the addressee and Lotus Notes will fill in the rest with best match 30 guesses until the name is found. Today, since there is one domain, if you Davis - Direct-TXU Electric Business Separation Plan

1 begin typing the name JOHN SMITH, Lotus notes will find a "John Smith" 2 before you finish typing.

3 Q. WHAT IS THE VALUE OF CREATING SEPARATE DOMAINS WITH 4 RESPECT TO THE TYPE-AHEAD FEATURE?

5 A. If there are transmission and distribution company employees and 6 competitive affiliate employees with the same or similar names, the type 7 ahead feature could result in the unintentional, inappropriate distribution of 8 information between the transmission and distribution company and a 9 competitive affiliate. With separate domains for the transmission and 10 distribution company and the competitive affiliates, if John Smith 1 were in 11 the transmission and distribution company and John Smith 2 were in a 12 competitive affiliate, a transmission and distribution company addresser 13 would have to add the domain name to send mail to John Smith 2 (e.g.

14 John Smith2@domain#). Again, the transmission and distribution 15 company employee must pause to consider why it is that he, or she, must 16 go through a separate naming convention for the competitive affiliate, with 17 the answer being that transmission and distribution company employees 18 are different from competitive affiliate employees in terms of sharing 19 information.

20 Q. WILL SEPARATE DOMAINS BE ESTABLISHED TO ELIMINATE USE OF 21 THE TYPE-AHEAD FUNCTION BETWEEN THE TRANSMISSION AND 22 DISTRIBUTION COMPANY AND COMPETITIVE AFFILIATES?

23 A. Yes.

24 D. Communications 25 1. Overview 26 Q. PLEASE PROVIDE AN OVERVIEW OF THE COMMUNICATIONS 27 NETWORK.

28 A The TXU Corp communications network can be segmented at a high level 29 into the local area data network (LAN), the telephone network, the two 30 way radio network, internet and intranet communications, and the wide 31 area data network (WAN). There are over 13,000 data devices connected Davis - Direct-TXU Electric

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1 to the communications network, including business computers, routers, 2 controllers, and mainframe terminals. Dial tone is delivered to over 32,000 3 endpoints each day, including multiple line phones, fax machines, and 4 modems. The two-way radio network provides communication to 5 approximately 4,000 TXU Corp system radios. The WAN utilizes multiple 6 systems to provide interconnectivity between geographic locations. These 7 WAN systems include public circuits (local exchange and inter-exchange 8 carriers), microwave radio, and fiber optic infrastructure. For a visual 9 depiction of the current TXU Corp communications network, see Exhibit 10 DMD-1.

11 2. Local Area Data Network 12 a. Overview 13 Q. PLEASE DESCRIBE THE STRUCTURE OF A TYPICAL LOCAL AREA 14 DATA NETWORK.

15 A. A LAN is a data communications network that provides easy 16 interconnection of terminals, desktop business computers, and client 17 servers within a single building or small campus area. The physical LAN 18 includes the wiring from the previously mentioned devices to a hub 19 (excluding the devices themselves). A hub is electronic equipment that 20 connects several local devices together and allows them to exchange 21 data. There are often several hubs within one LAN connected to a router.

22 A router is electronic equipment that forwards information packets 23 between networks, both local-area and wide-area. Since a router may 24 route information from one hub to another on the same LAN, a portion of 25 the router may be considered part of the LAN. A LAN can include 26 connections from a mainframe computer to other smaller computers on 27 the same LAN. Exhibit DMD-1 provides a general visual depiction.

28 b. Access Controls 29 Q. DESCRIBE ACCESS CONTROLS IN A LAN THAT WILL PREVENT THE 30 SHARING OF INFORMATION BETWEEN THE TRANSMISSION AND 31 DISTRIBUTION COMPANY AND A COMPETITIVE AFFILIATE.

Davis - Direct-TXU Electric Business Separation Plan

I A. TXU Business Services Information Technology will develop and maintain 2 logical separation within each LAN, and transmission and distribution 3 company and competitive affiliate employees will not be allowed to occupy 4 the same LAN. Under normal circumstances, LAN users are grouped 5 based on their physical proximity and any user connected to the LAN 6 would be able to share information with other users on the same LAN. The 7 sharing of information could include one LAN user granting access to the 8 files on their desktop to all the other users of that LAN. In addition, while 9 unlikely, highly technical users could potentially use software to intercept 10 information packets of other users on the same LAN. Today, TXU Electric 11 and competitive affiliate employees may occupy separate floors of 12 common or adjacent buildings and still be part of a common LAN. It is 13 necessary, therefore, to identify all users on a LAN and to logically 14 separate transmission and distribution company employees and 15 competitive affiliate employees. In order to assure separation in these 16 instances, each wire from an active data connection endpoint to a hub will 17 be identified. The wiring connection into the hub will be tagged as being 18 either a transmission and distribution company connection or a 19 competitive affiliate user connection. Once so identified, the connections 20 to ports on the hub will be electronically grouped into separate virtual 21 LANs. Virtual LANs create separate LANs in essence or effect without 22 requiring duplication of all LAN equipment and support. Users on separate 23 virtual LANs will not be allowed to directly connect, nor can information 24 packets be captured across virtual LANs. The use of virtual LANs provides 25 the same level of logical separation that would be sustained by the 26 creation of physically separate LANs, but eliminates the redundant 27 expenditures for hubs and the staff operations support required to 28 maintain them.

29 Q. WILL THIS IDENTIFICATION AND GROUPING BE NECESSARY FOR 30 ALL LANS INTHE TXU CORP COMMUNICATIONS NETWORK?

Davis - Direct-TXU Electric Business Separation Plan

I A. It will be necessary in every instance where there is the possibility of 2 having transmission and distribution company and competitive affiliate 3 employees on the same LAN. However, not every LAN in the 4 communications network will have to be configured in this manner. For 5 example, if the LAN is located at a generation power plant and is only 6 being used to connect generation employees, then creating multiple virtual 7 LANs will not be necessary at that location.

8 Q. WHICH ORGANIZATION IS RESPONSIBLE FOR ADMINISTERING LAN 9 ACCESS CONTROLS?

10 A. Information Technology Telecommunications is responsible for 11 maintaining the separation of transmission and distribution company and 12 competitive affiliate employees through the creation of separate LANs or 13 virtual LANs.

14 Q. WHAT ACCESS CONTROLS PREVENT COMPETITIVE AFFILIATE 15 EMPLOYEES FROM SIMPLY PLUGGING INTO A TRANSMISSION AND 16 DISTRIBUTION COMPANY LAN?

17 A The hub connection ports are coded in a manner that would preclude 18 employees from determining which connection belongs to which employee 19 without a directory listing of the ports. Only Information Technology 20 personnel will have access to the directory. In addition, the hubs and the 21 end-wiring connections to the hubs are not accessible without key access.

22 3. Voice Communication 23 a. Telephone 24 Q. REGARDING TELEPHONE COMMUNICATIONS, ARE THERE ACCESS 25 CONTROLS TO PREVENT OR RESTRICT COMMUNICATION 26 BETWEEN COMPETITIVE AFFILIATES AND THE TRANSMISSION AND 27 DISTRIBUTION COMPANY?

28 A. For the most part, no. The only access control required is already provided 29 through current technology that eliminates "multiple party lines" where 30 caller groups share a single circuit. However, as described in the direct 31 testimony of Mr. Wenning, employees will be trained regarding legal Davis - Direct-TXU Electric Business Separation Plan

I restrictions on the sharing of information between the transmission and 2 distribution company and competitive affiliates.

3 b, Two-Way Radio 4 i. Overview 5 Q. PLEASE DESCRIBE THE STRUCTURE OF THE TWO-WAY RADIO 6 SYSTEM.

7 A. The TXU Corp two-way radio system currently has 111 radio tower sites 8 supporting approximately 4,000 TXU Corp system radios. The TXU Corp 9 radio system is a trunked system rather than a conventional system. A 10 conventional radio system user selects a frequency to talk on, like a 11 citizens band radio user selects a channel to talk on. A trunked radio 12 system requires each radio to be programmed for access to talk groups.

13 When a request is made to communicate with a specific talk group, the 14 system assigns an available frequency to all radios that have selected the 15 same talk group. This feature allows more capability with less hardware or 16 radio frequencies.

17 ii. Access Controls 18 Q. WHAT ACCESS CONTROLS WILL BE IMPLEMENTED FOR THE TWO 19 WAY RADIO SYSTEM TO PREVENT A COMPETITIVE AFFIILATE 20 FROM GAINING ACCESS TO INFORMATION ABOUT TRANSMISSION 21 AND DISTRIBUTION COMPANY OPERATIONS?

22 A. Radios assigned to competitive affiliate employees will be programmed to 23 prevent access to transmission and distribution company talk groups and 24 to the transmission and distribution company information communicated 25 among the transmission and distribution company talk group participants.

26 Q. WILL THE TWO-WAY RADIO SYSTEM BE SHARED AMONG 27 REGULATED AND COMPETITIVE ACTIVITIES?

28 A. Yes, but only in a very limited way, and only as necessary to ensure 29 reliable operation of the electric system.

30 Q. PLEASE EXPLAIN HOW THE TWO-WAY RADIO SYSTEM WILL BE 31 SHARED BETWEEN REGULATED AND COMPETITIVE ACTIVITIES.

Davis - Direct-TXU Electric Business Separation Plan

1 A. Sharing of the two-way radio system will be necessary, as it is now, to 2 ensure coordinated operation of both the generation system and the 3 transmission system. The primary need for such coordination would be in 4 the eventuality of a "black-start" or other emergency situation. Other than 5 periodic drills or testing to ensure that the two-way radio system is 6 functioning correctly, such emergency situations are the only situations for 7 which sharing of the radio system is envisioned.

8 Q. WHAT SAFEGUARDS WILL BE IMPLEMENTED TO ENSURE 9 ADEQUATE MONITORING OF ANY ACTUAL SHARING OF 10 INFORMATION BETWEEN REGULATED AND COMPETITIVE 11 ACTIVITIES THROUGH THE TWO-WAY RADIO SYSTEM?

12 A. Consistent with the requirements of the code of conduct, as described in 13 the direct testimony of Mr. Brian Wenning, any actual sharing of 14 information (other than solely for drills or testing) through shared use of 15 the two-way radio system will be identified and reported. Thus, 16 appropriate safeguards will be in place to ensure that the limited sharing of 17 the two-way radio system does not result in the inappropriate transfer of 18 confidential information or result in undue preferential treatment or an 19 unfair competitive advantage.

20 Q. WHICH ORGANIZATION HAS RESPONSIBILITY FOR PROGRAMMING 21 AND ADMINISTERING TWO-WAY RADIO TALK GROUPS?

22 A. Radio programming and administration of talk groups is the responsibility 23 of Information Technology Telecommunications.

24 4. Internet And Intranet Communication 25 Q. PLEASE DESCRIBE ACCESS CONTROLS FOR DATA MADE 26 AVAILABLE TO INTERNET AND INTRANET USERS.

27 A. TXU Electric intranet data is available to both internal users (intranet) and 28 external users (intemet). The data sources are the same; however, access 29 controls to intranet data have an additional dimension for external users.

30 Access to intranet sites is controlled by firewall technology. The firewalls 31 control which ports are available to external requestors and which external Davis - Direct-TXU Electric Business Separation Plan

1 requestor has access to a given port. The access directory for an available 2 port (with the exception of the port identified to provide general access to 3 the public) is mapped to specific addresses of external requestors. If the 4 address of the external entity is recognized by the firewall, then the 5 external entity is granted access to the port and defined intranet data 6 sources. If the address of the external requestor is not recognized, the 7 requestor is denied access. Once admitted, the external requestor has 8 access to the TXU intranet in the same manner as an internal requestor.

9 Q. PLEASE DESCRIBE THE ACCESS CONTROLS TO INTRANET DATA 10 BY ADMITTED EXTERNAL USERS AND INTERNAL USERS.

11 A. Intranet data is stored on client servers. As previously discussed, domains 12 and domain controllers are at the heart of client server security and a 13 domain is basically a collection of server resources. Each domain has a 14 primary domain controller. The primary domain controller of each domain 15 contains the directory that details each user in the domain and the 16 information they can access. Logical domains are created by grouping 17 resources under a common domain much like some residential 18 neighborhoods are grouped into a domain by a security fence that forms a 19 perimeter around the neighborhood. Transmission and Distribution system 20 operations will occupy separate domains (neighborhoods) from 21 competitive affiliates to prevent competitive affiliate employees and 22 contractors from gaining access to transmission and distribution company 23 information.

24 Q WHICH ORGANIZATION HAS ADMINISTRATIVE RESPONSIBILITY 25 FOR ESTABLISHING INTRANET DOMAINS?

26 A Information Technology Operations is responsible for installing and 27 maintaining the client server environment, including creation of logical 28 domains. Information Technology Security has responsibility for granting 29 requestor access to intranet domains.

Davis - Direct-TXU Electric Business Separation Plan

1 5. Wide Area Data Network 2 a. Overview 3 Q. PLEASE DESCRIBE THE STRUCTURE OF THE WIDE AREA DATA 4 NETWORK.

5 A. The structure of the WAN is not easily described or represented. It is most 6 often depicted in technical diagrams as a cloud because it entails many 7 different transport systems and components. For purposes of my 8 testimony, the WAN begins at the router mentioned in the previous 9 description of LAN structure and extends across multiple transport 10 systems. The WAN structure includes TXU Corp system companies' 11 private microwave systems; fiber optic systems; public circuits provided by 12 local exchange carriers and inter exchange carriers; and the internet. For 13 a general visual depiction, please see Exhibit DMD-1.

14 b. Access Controls 15 Q. DESCRIBE WAN ACCESS CONTROLS FOR THE DATA NETWORK 16 THAT PREVENT SHARING OF INFORMATION BETWEEN THE 17 TRANSMISSION AND DISTRIBUTION COMPANY AND COMPETITIVE 18 AFFILIATES.

19 A. Segmentation of communication between affiliates and the transmission 20 and distribution company begins with logic contained within routers. As 21 regards data circuits, Information Technology utilizes two technology 22 standards -- the Asynchronous Transfer Mode (ATM) and Frame Relay.

23 These technologies allow for the creation of multiple private virtual circuits 24 across one circuit. This is similar to creating virtual LANs out of a single 25 LAN. All WAN data connections will terminate at shared electronic 26 devices (e.g., routers). The software definitions within the shared devices 27 are managed and controlled by Information Technology 28 Telecommunications and will be programmed to restrict the flow of data 29 between the transmission and distribution company and competitive 30 affiliates. The software definitions are based on access control lists that 31 contain the logical addresses of user locations and LAN connections.

Davis - Direct-TXU Electric Business Separation Plan

I E. Other Safeguards 2 Q. WHAT "STRUCTURAL" OR "TRANSACTIONAL" SAFEGUARDS WILL 3 BE IMPLEMENTED IN THE TXU CORP SYSTEM?

4 A. The access controls described earlier in my testimony can all be 5 considered "structural" or "transactional" controls, since those access 6 controls each limit, in some way, the sharing of information by restricting 7 the structure of systems or the types of allowable transactions.

8 Q. WHAT BEHAVIORAL SAFEGUARDS, IN ADDITION TO THESE YOU 9 HAVE DESCRIBED IN YOUR TESTIMONY, ARE BEING IMPLEMENTED 10 IN THE TXU CORP SYSTEM?

11 A. In his direct testimony, Mr. Brian Wenning discusses behavioral 12 safeguards that are being implemented across the entire TXU Corp 13 system, including training and enforcement of the corporate code of 14 conduct. For example, inappropriate access to information could lead to 15 enforcement action as a violation of the Affiliate Standards Compliance 16 Program discussed in Mr. Wenning's testimony. Also, as I previously 17 mentioned, Information Technology Security provides for the 18 implementation of preventive, detective, and corrective controls including 19 auditing certain communication flows, such as e-mail, and enforcement of 20 information technology policies and procedures related to information 21 control.

22 Q. WHAT ASSURANCE CAN YOU PROVIDE THAT THE TXU CORP 23 SYSTEM WILL CONTINUE IN THE FUTURE TO USE ALL THE ACCESS 24 CONTROLS AND OTHER SAFEGUARDS THAT YOU'VE DESCRIBED 25 IN YOUR TESTIMONY?

26 A. In a rapidly-evolving business environment such as the information 27 technology field, it would be unreasonable to say with certainty that the 28 TXU Corp system will continue to use exactly all the same access controls 29 and other safeguards that are currently used or predicted for near-future 30 use. As technology evolves, I am confident that the TXU Corp system 31 companies will continue to make use of available devices and Davis - Direct-TXU Electric Business Separation Plan

1 methodologies to ensure that appropriate access controls and safeguards 2 are maintained. Thus, I can provide assurance that it is the intent of the 3 TXU Corp system companies to ensure that all appropriate and necessary 4 restrictions on information sharing will be maintained, consistent with 5 applicable laws and rules.

6 IV. CONCLUSION 7 Q. WHAT CONCLUSIONS HAVE YOU REACHED CONCERNING TXU 8 CORP SYSTEM COMPANIES' MANAGEMENT OF SHARED 9 INFORMATION AND TECHNOLOGY SYSTEMS BETWEEN THE 10 TRANSMISSION AND DISTRIBUTION COMPANY AND COMPETITIVE 11 AFFILIATES?

12 A. The management of information and access controls for processing, 13 storage and communication between the transmission and distribution 14 company and competitive affiliates provides adequate physical, logical, 15 and behavioral safeguard mechanisms to prevent employees of 16 competitive affiliates from gaining access to information about 17 transmission and distribution company system operations and other 18 confidential information. By implementing the access controls and other 19 safeguards described herein, TXU Corp and its subsidiary companies 20 have been ensuring, and will continue to ensure, that information is not 21 shared in a manner that creates undue preferential treatment, unfair 22 competitive advantage, or significant opportunities for cross-subsidization 23 of competitive affiliates.

24 Q DOES THIS CONCLUDE YOUR TESTIMONY?

25 A. Yes.

Davis - Direct-TXU Electric Business Separation Plan

STATE OF TEXAS §

§ COUNTY OF DALLAS § BEFORE ME, the undersigned authority, on this day personally appeared David M. Davis, who, having been placed under oath by me, did depose as follows:

My name is David M. Davis. I am of legal age and a resident of the State of Texas. The foregoing direct testimony and the attached exhibits offered by me are true and correct, and the opinions stated therein are, to the best of my knowledge and belief, accurate, true and correct.

David M. Davis SUBSCRIBED AND SWORN TO BEFORE ME by the said David M.

Davis this day of 1ZL? , 2000.

kJJ

""MYCOMM=IN Notary Public, State of Texas L- Nvemb.1&.2000