THE ECONOMIC IMPACT OF RECENT AND PLANNED INVESTMENTS BY TXU ON BUSINESS ACTIVITY IN TEXAS AND AFFECTED COUNTIES AND LEGISLATIVE DISTRICTS

THE ECONOMIC IMPACT OF RECENT AND PLANNED INVESTMENTS BY TXU ON BUSINESS ACTIVITY IN TEXAS AND AFFECTED COUNTIES AND LEGISLATIVE DISTRICTS The Perryman Group 510 North Valley Mills Drive, Suite 300 Waco, Texas 76710-6076 ph. 254.751.9595, fax 254.751.7855 info@perrymangroup.com www.perrymangroup.com August 2006 1 perrymangroup.com

THE ECONOMIC IMPACT OF RECENT AND PLANNED INVESTMENTS BY TXU ON BUSINESS ACTIVITY IN TEXAS AND AFFECTED COUNTIES AND LEGISLATIVE DISTRICTS TABLE OF CONTENTS Introduction 1 The Perryman Group s Perspective 3 Methods Used to Measure the Impact of TXU Investments on Business Activity 4 Results of the Impact Assessment 5 Impact of TXU Capital Investments: Past Five Years 5 Impact of TXU Capital Investments: Next Five Years 7 Operations Impacts 11 An Industry Perspective 13 Conclusion 14 APPENDICES 15 APPENDIX 1: Impact of TXU s Investments in Electric Delivery 16 The Historical (2001-2005) Impact of TXU s Investment in Electric Delivery on Business Activity in Texas Detail Sectoral Results The Projected (2006-2010) Impact of TXU s Investment in Electric Delivery on Business Activity in Texas Detail Sectoral Results The Historical (2001-2005) Impact of TXU s Investment in Electric Delivery on Business Activity in Affected Counties The Projected (2006-2010) Impact of TXU s Investment in Electric Delivery on Business Activity in Affected Counties The Historical (2001-2005) Impact of TXU s Investment in Electric Delivery on Business Activity in Texas Legislative Districts The Projected (2006-2010) Impact of TXU s Investment in Electric Delivery on Business Activity in Texas Legislative Districts i perrymangroup.com

APPENDIX 2: Impact of TXU s Investment in Power Generation 29 The Projected (2006-2010) Impact of TXU's Power Division Investment in the Sandow 5 Generation Facility on Business Activity in Milam County Detailed Sectoral Results The Projected (2006-2010) Impact of TXU's Power Division Investment in the Sandow 5 Generation Facility on Business Activity in Texas Detailed Sectoral Results The Projected (2006-2010) Impact of TXU's Power Division Investment in the Oak Grove Generation Facility on Business Activity in Robertson County Detailed Sectoral Results The Projected (2006-2010) Impact of TXU's Power Division Investment in the Oak Grove Generation Facility on Business Activity in Texas Detailed Sectoral Results The Projected (2006-2010) Impact of TXU's Power Division Investment in the Martin Lake Generation Facility on Business Activity in Rusk County Detailed Sectoral Results The Projected (2006-2010) Impact of TXU's Power Division Investment in the Martin Lake Generation Facility on Business Activity in Texas Detailed Sectoral Results The Projected (2006-2010) Impact of TXU's Power Division Investment in the Big Brown Generation Facility on Business Activity In Freestone County Detailed Sectoral Results The Projected (2006-2010) Impact of TXU's Power Division Investment in the Big Brown Generation Facility on Business Activity in Texas Detailed Sectoral Results The Projected (2006-2010) Impact of TXU's Power Division Investment in the Monticello Generation Facility on Business Activity in Titus County Detailed Sectoral Results The Projected (2006-2010) Impact of TXU's Power Division Investment in the Monticello Generation Facility on Business Activity in Texas Detailed Sectoral Results The Projected (2006-2010) Impact of TXU's Power Division Investment in the Lake Creek Generation Facility on Business Activity in McLennan County Detailed Sectoral Results The Projected (2006-2010) Impact of TXU's Power Division Investment in the Lake Creek Generation Facility on Business Activity in Texas Detailed Sectoral Results ii perrymangroup.com

The Projected (2006-2010) Impact of TXU's Power Division Investment in the Tradinghouse Generation Facility on Business Activity in McLennan County Detailed Sectoral Results The Projected (2006-2010) Impact of TXU's Power Division Investment in the Tradinghouse Generation Facility on Business Activity in Texas Detailed Sectoral Results The Projected (2006-2010) Impact of TXU's Power Division Investment in the Valley Generation Facility on Business Activity in Fannin County Detailed Sectoral Results The Projected (2006-2010) Impact of TXU's Power Division Investment in the Valley Generation Facility on Business Activity in Texas Detailed Sectoral Results The Projected (2006-2010) Impact of TXU's Power Division Investment in the Morgan Creek Generation Facility on Business Activity in Mitchell County Detailed Sectoral Results The Projected (2006-2010) Impact of TXU's Power Division Investment in the Morgan Creek Generation Facility on Business Activity in Texas Detailed Sectoral Results The Total Projected (2006-2010) Impact of TXU's Power Division Investment in New Generation Facilities on Business Activity in Texas Detailed Sectoral Results The Projected (2006-2010) Impact of Capital Investments by TXU s Power Division for Projects other than New Generation Plants on Business Activity in Texas Detailed Sectoral Results The Projected (2006-2010) Impact of Mining Activity Associated with TXU's Power Division Investments in Generation Facilities on Business Activity in Texas Detailed Sectoral Results The Projected (2006-2010) Impact of TXU s Environmental Retrofits in the Sandow 4 Generation Facility on Business Activity in Milam County Detailed Sectoral Results The Projected (2006-2010) Impact of TXU s Environmental Retrofits in the Sandow 4 Generation Facility on Business Activity in Texas Detailed Sectoral Results The Projected (2006-2010) Impact of TXU s Environmental Retrofits in the Existing Martin Lake Generation Facility on Business Activity in Rusk County Detailed Sectoral Results iii perrymangroup.com

The Projected (2006-2010) Impact of TXU s Environmental Retrofits in the Existing Martin Lake Generation Facility on Business Activity in Texas Detailed Sectoral Results The Projected (2006-2010) Impact of TXU s Environmental Retrofits in the Existing Big Brown Generation Facility on Business Activity in Milam County Detailed Sectoral Results The Projected (2006-2010) Impact of TXU s Environmental Retrofits in the Existing Big Brown Generation Facility on Business Activity in Texas Detailed Sectoral Results The Projected (2006-2010) Impact of TXU s Environmental Retrofits in the Existing Monticello Generation Facility on Business Activity in Milam County Detailed Sectoral Results The Projected (2006-2010) Impact of TXU s Environmental Retrofits in the Existing Monticello Generation Facility on Business Activity in Texas Detailed Sectoral Results The Total Projected (2006-2010) Impact of TXU s Environmental Retrofits in Existing Generation Facilities on Business Activity in Texas Detailed Sectoral Results The Total Projected (2006-2010) Impact of TXU s Power Division Investments in Electric Generation Facilities, Other Enhancements, Environmental Retrofits, and Associated Mining Activity on Business Activity in Texas Detailed Sectoral Results The Historical (2001-2005) Impact of TXU s Investment in Power Generation on Business Activity in Affected Counties The Projected (2006-2010) Impact of TXU s Investment in Power Generation on Business Activity in Affected Counties The Historical (2001-2005) Impact of TXU s Investment in Power Generation on Business Activity in Texas Legislative Districts The Projected (2006-2010) Impact of TXU s Investment in Power Generation on Business Activity in Texas Legislative Districts iv perrymangroup.com

APPENDIX 3: Impact of TXU s Investments in Wholesale Power Marketing and Corporate Activity 65 The Historical (2001-2005) Impact of TXU s Investment in Wholesale Power Marketing and Corporate Activity on Business Activity in Texas, Detailed Sectoral Results The Projected (2006-2010) Impact of TXU s Investment in Wholesale Power Marketing and Corporate Activity on Business Activity in Texas, Detailed Sectoral Results The Historical (2001-2005) Impact of TXU s Investment in Wholesale Power Marketing and Corporate Activity in Affected Counties The Projected (2006-2010) Impact of TXU s Investment in Wholesale Power Marketing and Corporate Activity in Affected Counties The Historical (2001-2005) Impact of TXU s Investment in Wholesale Power Marketing and Corporate Activity in Texas Legislative Districts The Projected (2006-2010) Impact of TXU s Investment in Wholesale Power Marketing and Corporate Activity in Texas Legislative Districts APPENDIX 4: Total Impact of TXU Investment Activity 72 The Total Historical (2001-2005) Impact of TXU s Investments on Business Activity in Texas, Detailed Sectoral Results The Total Projected (2006-2010) Impact of TXU s Overall Investment in Generation Capacity, Enhanced Electric Delivery Mechanisms, and Other Significant Capital Expenditures on Business Activity in Texas Detailed Sectoral Results The Total Projected (2006-2010) Impact of TXU s Investments on Business Activity in Texas, Detailed Sectoral Results The Total Historical (2001-2005) Impact of TXU s Investments on Business Activity in Affected Counties The Total Projected (2006-2010) Impact of TXU s Investments on Business Activity in Affected Counties The Total Historical (2001-2005) Impact of TXU s Investments on Business Activity in Texas Legislative Districts v perrymangroup.com

The Total Projected (2006-2010) Impact of TXU s Investments on Business Activity in Texas Legislative Districts APPENDIX 5: Potential Impact of Ongoing Operations of TXU s Projected Incremental Investments in Electric Generation Facilities and Associated Mining 85 The Annual Impact of Operations of TXU s Existing Generation Facilities on Business Activity in Texas Detailed Sectoral Results The Annual Impact of Operations of TXU s Proposed New Generation Facilities on Business Activity in Texas Detailed Sectoral Results The Total Potential Annual Impact of Operations of TXU s Existing and Proposed New Generation Facilities at Maturity on Business Activity in Texas Detailed Sectoral Results The Annual Impact of Ongoing Operations of Existing Lignite Mining Associated with TXU Generation Facilities on Business Activity in Texas Detailed Sectoral Results The Potential Annual Impact of Ongoing Operations of TXU s Projected (2006-2010) Investments in Incremental Lignite Mining on Business Activity in Texas Detailed Sectoral Results The Potential Annual Impact of Ongoing Operations of Existing and Projected (2006-2010) Investments in Lignite Mining Associated with TXU Generation Facilities on Business Activity in Texas Detailed Sectoral Results The Annual Impact of Ongoing Operations of Existing TXU Generation Facilities and Associated Lignite Mining on Business Activity in Texas Detailed Sectoral Results The Potential Annual Impact of Ongoing Operations of TXU s Proposed New Generation Facilities and Projected Investments in Incremental Lignite Mining on Business Activity in Texas Detailed Sectoral Results The Potential Annual Impact of Ongoing Operations of Existing and New TXU Generation Facilities and Current and Projected Investments in Lignite Mining on Business Activity in Texas Detailed Sectoral Results vi perrymangroup.com

THE ECONOMIC IMPACT OF RECENT AND PLANNED INVESTMENTS BY TXU ON BUSINESS ACTIVITY IN TEXAS AND AFFECTED COUNTIES AND LEGISLATIVE DISTRICTS Introduction Investment in infrastructure is vital to economic growth and sustainable prosperity. In particular, future expansion in Texas requires the development of extensive new electric generation, transmission, and distribution resources. TXU has invested billions of dollars in the maintenance and improvement of such facilities in recent years and presently has ambitious plans to enhance its capabilities. In addition to providing a foundation for other types of economic activity to flourish, these outlays (1) involve substantial impacts on business activity in their own right (both in the construction and operational phases) and (2) offer substantial potential benefits to customers through promoting fuel diversity. Moreover, through these investments, TXU will be able to reduce emissions in existing plants as new plants are built. This report offers a brief overview of the effects of these investments for the state as a whole as well as affected counties and legislative districts. The impact of TXU investments in electric delivery, power generation (including environmental retrofitting), wholesale marketing, and corporate activity are substantial. The effect of these investments on business activity over the past five years is 1 perrymangroup.com

quantified. The potential impact of a substantial investment in much-needed capacity over the next five years is also examined. 2 perrymangroup.com

The Perryman Group s Perspective TPG is an economic research and analysis firm based in Waco, Texas. The firm has more than 20 years of experience in analyzing the Texas economy and assessing the economic impact of corporate expansions, regulatory changes, real estate developments, and myriad other types of events affecting business activity. The key model used in this study, the Texas Multi- Regional Impact Assessment System, was developed in the early 1980s and has been continually refined, updated, and expanded since that time. This system has been used in hundreds of public and private sector applications (including many in the electric power sector) and enjoys an excellent reputation for accuracy and reliability. In particular, the model has played a key role in numerous major policy initiatives in Texas (including, among others, judicial reforms, trucking deregulation, electric deregulation, tax policy, economic development incentives, telecommunication deregulation, and transportation funding mechanisms). It was used to estimate the potential benefits of retail electric competition prior to its implementation and has provided annual assessments of progress as the process has moved forward. TPG has conducted hundreds of impact analyses for the US and Texas economies as well as all Texas metropolitan areas, regions, and counties. Impact studies have been performed for hundreds of clients including many of the largest corporations in the world, governmental entities at all levels, educational institutions, major healthcare systems, utilities, and economic development organizations. 3 perrymangroup.com

Methods Used to Measure the Impact of TXU Investments on Business Activity All estimates in this analysis are derived from the Texas Multi- Regional Impact Assessment System, which was developed and is maintained by The Perryman Group. In the present instance, the systems reflect the unique industrial composition of each county examined, and, in some cases, spillover effects across areas. Information regarding TXU s investment over the past five years and planned investment over the next five were provided by TXU and independently examined for reasonableness by The Perryman Group. In particular, the input information included relatively detailed cost breakdowns by category of spending, thus permitting more accurate assessment of overall effects. TPG s impact assessment system was then employed to estimate the spin-off (or multiplier) activity associated with the direct outlays. The basic technique used in this process is known as dynamic input-output analysis. In essence, this approach involves the creation of a system which estimates the amount of various inputs required to make a unit of output (measured in monetary terms). The impact assessment system uses survey data for more than 500 industrial categories to determine the magnitude of the multiple rounds of spending. 4 perrymangroup.com

Results of the Impact Assessment Impact of TXU Capital Investments: Past Five Years Over the past five years (2001-2005), TXU has invested in excess of $4.5 billion in capital expenditures. This amount represents more on average each year than the total cost of the Toyota plant in San Antonio. Capital outlays for electric delivery, power generation facilities, and other activities have led to substantial gains in business activity for numerous communities. These components of TXU s capital investment are quantified in the Appendices. Overall statewide totals are highlighted in this section; the Appendices include county- and legislative district-level detail. In addition, a sectoral breakout of the effect on business activity is included for Texas. The cumulative impact of this spending on the Texas economy includes $15.422 billion in Total Expenditures; $7.372 billion in Gross State Product; $4.827 billion in Personal Income; $1.827 billion in Retail Sales; and 97,713 Person-Years of. Note that all monetary values are given in constant (2005) dollars. 5 perrymangroup.com

The Total Historical (2001-2005) Impact of TXU's Investments on Business Activity in Texas Total Expenditures $15.422 Gross Product $7.372 Personal Income $4.827 97,713 Person-Years of Retail Sales $1.827 Source: The Perryman Group $0 $2 $4 $6 $8 $10 $12 $14 $16 $18 Billions of Dollars On an annual basis, the average gain to the state over this period is estimated to be $3.084 billion in Total Expenditures; $1.474 billion in Gross State Product; $0.965 billion in Personal Income; $0.365 billion in Retail Sales; and 19,543 Average Annual Jobs. Clearly, TXU s capital investments have been a significant stimulus to the Texas economy. 6 perrymangroup.com

Impact of TXU Capital Investments: Next Five Years Over the next five years (2006-2010), TXU plans extensive spending on new coal-fired generation as well as additional improvements in transmission and distribution capabilities and metering devices. A program of retrofitting existing plants to reduce emissions is also planned. If all of the items that are contemplated are implemented, the aggregate investment over this period is projected to be well in excess of $15 billion. On an annual basis, spending by TXU alone will be more than 1.5 times as large as the current average for the entire petroleum refining industry in recent years, and approximately 200% greater than that of all basic chemical manufacturers over a comparable period. Similarly, it exceeds the current annual investment in the microelectronics sector by more than 100%. Over the entire period, the anticipated spending is equivalent to that of building five plants (one per year) of the size of the Texas Instruments 300mm Wafer Fabrication facility (the largest single project in Texas in the past decade). In addition to the tremendous stimulus from these outlays, they are laying the foundation for future business expansion. Recent analysis by The Perryman Group, the Electric Reliability Council of Texas, and others suggests that such expansion to capacity will be required to meet the anticipated power needs of a growing economy. TPG analyzed potential TXU investments by corporate division (Electric Delivery, Energy Wholesale, and Power). The investments studied include 7 perrymangroup.com

the construction of the new Sandow 5, Oak Grove, Martin Lake, Big Brown, Monticello, Lake Creek, Tradinghouse, Valley, and Morgan Creek generation facilities; other planned TXU capital investments in addition to the generation capacity including transmission and distribution system expansion, information technology, upgrades to existing power plants, and other items designed to enhance the electric power sector within the state; and environmental retrofitting of existing facilities to reduce emissions. A breakout by corporate division is presented in the Appendix. Impacts are also described by Texas legislative district; spillover effects to nearby major metropolitan areas are also quantified. 8 perrymangroup.com

Reference Plants Sandow 5 The Potential Impact of Capital Investments in New Generation Capacity by TXU s Power Division County Expenditures Gross Product Personal Income Retail Sales (Person- Years) Milam $1.510 bln $0.784 bln $0.547 bln $0.239 bln 11,864 Texas $2.178 bln $1.061 bln $0.714 bln $0.262 bln 14,986 Oak Grove Robertson $3.434 bln $1.794 bln $1.260 bln $0.525 bln 27,237 Texas $4.989 bln $2.437 bln $1.645 bln $0.627 bln 34,579 Martin Lake Rusk $2.521 bln $1.294 bln $0.897 bln $0.379 bln 19,083 Texas $3.288 bln $1.603 bln $1.082 bln $0.412 bln 22,755 Big Brown Freestone $2.403 bln $1.217 bln $0.843 bln $0.383 bln 18,361 Texas $3.288 bln $1.603 bln $1.082 bln $0.412 bln 22,755 Monticello Titus $1.849 bln $0.954 bln $0.650 bln $0.330 bln 14,248 Texas $3.288 bln $1.603 bln $1.082 bln $0.412 bln 22,755 Lake Creek McLennan $2.855 bln $1.436 bln $0.975 bln $0.400 bln 20,919 Texas $3.288 bln $1.603 bln $1.082 bln $0.412 bln 22,755 Tradinghouse McLennan $5.711 bln $2.871 bln $1.951 bln $0.800 bln 41,839 Texas $6.577 bln $3.206 bln $2.163 bln $0.824 bln 45,510 Valley Fannin $2.296 bln $1.218 bln $0.833 bln $0.394 bln 18,412 Texas $3.288 bln $1.603 bln $1.082 bln $0.412 bln 22,755 Morgan Creek Mitchell $2.231 bln $1.199 bln $0.835 bln $0.412 bln 18,372 Texas $3.288 bln $1.603 bln $1.082 bln $0.412 bln 22,755 9 perrymangroup.com

The overall economic stimulus to Texas if all capital investment projects currently under consideration by TXU divisions are undertaken is found to be $53.482 billion in Total Expenditures; $25.849 billion in Gross State Product; $17.321 billion in Personal Income; $6.583 billion in Retail Sales; and 359,867 Person-Years of. Thus, the yearly benefit over this timeframe is projected at $10.696 billion in Total Expenditures; $5.170 billion in Gross State Product; $3.464 billion in Personal Income; $1.317 billion in Retail Sales; and 71,973 Average Annual Jobs. 10 perrymangroup.com

The Total Projected (2006-2010) Impact of TXU's Overall Investment in Generation Capacity, Enhanced Electric Delivery Mechanisms, and Other Significant Capital Expenditures on Business Activity in Texas Total Expenditures $53.482 Gross Product $25.849 Personal Income $17.321 359,867 Person-Years of Retail Sales $6.583 Source: The Perryman Group $0 $10 $20 $30 $40 $50 $60 Billions of Dollars Detailed breakouts of these effects by geographic area and industry are presented in Appendix 1 through Appendix 4. Operations Impacts As noted, one major aspect of the investment described above is a substantial expansion of coal-fired generation in Texas. The impact of ongoing operations at TXU s existing and expanded facilities (excluding any potential increase in mining activity) is expected to be (at maturity) 11 perrymangroup.com

$12.435 billion in annual Total Expenditures; $4.080 billion in annual Gross State Product; $2.259 billion in annual Personal Income; $0.801 billion in annual Retail Sales; and 38,685 Permanent Jobs. Further detail regarding these effects (as well as potential mining operations) is included in Appendix 5. 12 perrymangroup.com

An Industry Perspective The overall electric utility industry has been the clear investment leader in Texas in recent years. The average annual outlays for new generating capacity and transmission facilities alone exceed those of any major manufacturing sector by a wide margin. Over the current five-year period for which information is available (2000-2004), the contributions to economic activity are $52.764 billion in Total Expenditures; $25.514 billion in Gross State Product; $17.337 billion in Personal Income; $6.631 billion in Retail Sales; and 371,673 Average Annual Jobs. The yearly average impact from the utility sector is, thus, $10.553 billion in Total Expenditures; $5.103 billion in Gross State Product; $3.467 billion in Personal Income; $1.326 billion in Retail Sales; and 74,335 Person-Years of. It should also be noted that several major projects are presently anticipated in the near future both for generation and transmission purposes by providers other than TXU. 13 perrymangroup.com

Conclusion This report briefly reviews the economic impact of the past and projected investments of TXU, with a summary projection for the entire electric utility sector. The results reveal that these capital outlays bring substantial and ongoing benefits to the Texas economy. To put these numbers in perspective, the contributions from currently planned outlays represent about 2.71% of the actual and projected increments to gross state product over the period and about 2.60% of total investment. The Appendices to this report examine the effects at a detailed sectoral level for the state. In addition, county-level and legislative district-level effects are quantified, as well as results by division. Clearly, TXU investments represent an important source of economic activity both for local areas and for the state as a whole. Respectfully Submitted, The Perryman Group M. Ray Perryman, President 14 perrymangroup.com

APPENDICES 15 perrymangroup.com

APPENDIX 1: Impact of TXU s Investments in Electric Delivery 16 perrymangroup.com

The Historical (2001-2005) Impact of TXU's Investment in Electric Delivery on Business Activity in Texas Detailed Sectoral Results Total Gross Personal (Person- Sector Expenditures Product Income Years) Agricultural Products & Services $122,295,573 $32,281,765 $21,985,678 442 Forestry & Fishery Products $2,850,637 $2,162,755 $802,128 12 Coal Mining $16,307,453 $4,669,836 $4,920,911 43 Crude Petroleum & Natural Gas $94,571,374 $20,351,355 $9,386,022 61 Miscellaneous Mining $4,091,858 $1,467,957 $862,927 12 New Construction $0 $0 $0 0 Maintenance & Repair Construction $158,342,389 $84,960,018 $70,012,344 1,241 Food Products & Tobacco $262,994,175 $68,139,016 $34,808,667 732 Textile Mill Products $3,903,681 $1,065,309 $901,338 26 Apparel $60,315,559 $33,719,954 $17,086,421 593 Paper & Allied Products $50,406,606 $22,014,349 $9,952,527 189 Printing & Publishing $61,989,770 $30,567,105 $19,951,839 424 Chemicals & Petroleum Refining $254,808,931 $39,444,898 $18,521,670 173 Rubber & Leather Products $45,083,580 $19,585,875 $11,449,821 285 Lumber Products & Furniture $19,556,091 $6,744,144 $4,808,206 125 Stone, Clay, & Glass Products $31,097,358 $17,216,671 $9,004,395 184 Primary Metal $397,564,646 $138,343,925 $102,976,442 1,923 Fabricated Metal Products $49,775,274 $19,282,930 $12,449,086 266 Machinery, Except Electrical $3,394,167,024 $1,606,016,134 $1,147,344,619 15,446 Electric & Electronic Equipment $40,305,304 $21,505,676 $12,856,823 138 Motor Vehicles & Equipment $23,196,683 $4,919,915 $3,196,300 57 Transp Equip, Except Motor Vehicles $13,781,217 $6,142,278 $4,013,760 60 Instruments & Related Products $7,078,217 $3,041,222 $2,311,609 37 Miscellaneous Manufacturing $16,102,517 $6,234,390 $4,299,936 87 Transportation $241,199,617 $161,545,346 $106,840,326 1,838 Communication $184,669,822 $114,064,252 $48,697,694 551 Electric, Gas, Water, Sanitary Services $376,503,540 $84,800,519 $37,004,679 203 Wholesale Trade $345,976,407 $234,146,676 $135,011,062 1,934 Retail Trade $745,450,464 $617,697,548 $369,363,379 12,259 Finance $110,562,121 $59,570,650 $34,688,166 398 Insurance $133,845,573 $80,320,748 $48,018,916 731 Real Estate $814,744,311 $113,798,897 $18,335,470 206 Hotels, Lodging Places, Amusements $73,975,562 $38,482,064 $25,245,565 779 Personal Services $153,555,458 $94,337,861 $73,396,376 1,556 Business Services $289,812,011 $176,921,236 $144,322,398 2,215 Eating & Drinking Places $349,599,693 $204,970,430 $109,055,211 6,218 Health Services $256,774,760 $179,641,873 $151,888,864 3,165 Miscellaneous Services $209,630,276 $88,504,379 $76,725,919 2,295 Households $11,743,120 $11,743,120 $11,494,629 1,064 TOTAL EFFECT, ALL INDUSTRIES $9,428,628,653 $4,450,423,078 $2,913,992,124 57,969 17 perrymangroup.com

The Projected (2006-2010) Impact of TXU's Investment in Electric Delivery on Business Activity in Texas Detailed Sectoral Results Total Gross Personal (Person- Sector Expenditures Product Income Years) Agricultural Products & Services $159,227,773 $42,030,578 $28,625,162 575 Forestry & Fishery Products $3,711,505 $2,815,889 $1,044,364 16 Coal Mining $21,232,163 $6,080,086 $6,406,983 55 Crude Petroleum & Natural Gas $123,131,107 $26,497,287 $12,220,519 79 Miscellaneous Mining $5,327,563 $1,911,267 $1,123,523 16 New Construction $0 $0 $0 0 Maintenance & Repair Construction $206,160,415 $110,617,205 $91,155,464 1,615 Food Products & Tobacco $342,416,130 $88,716,407 $45,320,581 953 Textile Mill Products $5,082,559 $1,387,023 $1,173,534 33 Apparel $78,530,334 $43,903,087 $22,246,372 772 Paper & Allied Products $65,628,963 $28,662,491 $12,958,104 246 Printing & Publishing $80,710,142 $39,798,105 $25,977,121 552 Chemicals & Petroleum Refining $331,759,013 $51,356,915 $24,115,053 225 Rubber & Leather Products $58,698,429 $25,500,639 $14,907,567 370 Lumber Products & Furniture $25,461,861 $8,780,817 $6,260,243 163 Stone, Clay, & Glass Products $40,488,490 $22,415,957 $11,723,644 240 Primary Metal $517,625,713 $180,122,588 $134,074,432 2,503 Fabricated Metal Products $64,806,975 $25,106,208 $16,208,602 346 Machinery, Except Electrical $4,419,175,963 $2,091,019,048 $1,493,832,721 20,111 Electric & Electronic Equipment $52,477,155 $28,000,203 $16,739,472 180 Motor Vehicles & Equipment $30,201,879 $6,405,686 $4,161,555 75 Transp Equip, Except Motor Vehicles $17,943,025 $7,997,193 $5,225,881 78 Instruments & Related Products $9,215,777 $3,959,644 $3,009,694 48 Miscellaneous Manufacturing $20,965,337 $8,117,122 $5,598,479 113 Transportation $314,039,804 $210,330,637 $139,105,176 2,393 Communication $240,438,503 $148,510,664 $63,403,974 717 Electric, Gas, Water, Sanitary Services $490,204,337 $110,409,539 $48,179,770 264 Wholesale Trade $450,458,275 $304,856,937 $175,783,230 2,519 Retail Trade $970,570,025 $804,236,839 $480,907,909 15,961 Finance $143,950,921 $77,560,468 $45,163,691 519 Insurance $174,265,773 $104,576,916 $62,520,211 952 Real Estate $1,060,790,012 $148,165,174 $23,872,623 268 Hotels, Lodging Places, Amusements $96,315,539 $50,103,313 $32,869,506 1,014 Personal Services $199,927,871 $122,827,075 $95,561,444 2,026 Business Services $377,332,720 $230,349,911 $187,906,508 2,884 Eating & Drinking Places $455,175,762 $266,869,718 $141,988,937 8,096 Health Services $334,318,505 $233,892,158 $197,757,981 4,121 Miscellaneous Services $272,936,798 $115,231,932 $99,896,479 2,989 Households $15,289,440 $15,289,440 $14,965,906 1,385 TOTAL EFFECT, ALL INDUSTRIES $12,275,992,553 $5,794,412,165 $3,793,992,417 75,475 18 perrymangroup.com

The Historical (2001-2005) Impact of TXU's Investment in Electric Delivery on Business Activity in Affected Counties Total Gross Personal Retail (Person- County Expenditures Product Income Sales Years) Anderson County $52,019,696 $26,013,323 $17,150,768 $7,563,219 347 Andrews County $30,152,705 $14,496,101 $9,518,822 $3,642,079 181 Angelina County $102,664,314 $50,792,751 $33,682,794 $14,629,638 681 Archer County $23,379,254 $11,845,416 $7,907,929 $3,479,611 159 Bastrop County $9,004,878 $4,302,566 $2,854,790 $1,267,419 59 Baylor County $1,043,253 $543,706 $366,266 $159,015 7 Bell County $227,660,928 $111,645,214 $73,880,264 $31,106,087 1,500 Borden County $897,088 $411,656 $274,805 $67,922 5 Bosque County $2,735,963 $1,365,848 $914,439 $352,700 18 Brown County $50,138,761 $25,006,415 $16,699,219 $7,405,856 345 Cherokee County $51,192,655 $25,116,591 $16,794,195 $6,741,186 331 Clay County $11,863,933 $5,890,743 $3,958,301 $1,630,015 79 Coleman County $477,608 $234,441 $153,664 $71,737 3 Collin County $707,416,314 $342,570,687 $224,807,187 $95,816,889 4,542 Comanche County $20,531,161 $10,500,771 $6,958,795 $2,772,280 135 Cooke County $22,837,880 $10,809,902 $7,070,473 $3,078,018 142 Coryell County $16,125,370 $7,970,516 $5,267,107 $2,571,050 109 Crane County $7,666,975 $3,922,275 $2,683,286 $1,092,082 52 Culberson County $2,739,236 $1,393,654 $923,370 $543,180 19 Dallas County $1,985,974,268 $956,241,211 $623,741,575 $218,641,774 12,062 Dawson County $11,627,100 $5,942,690 $3,944,823 $1,814,299 80 Delta County $5,654,301 $2,852,151 $1,956,880 $449,919 35 Denton County $245,246,426 $120,424,651 $79,340,256 $33,423,654 1,604 Eastland County $20,089,474 $9,883,681 $6,635,354 $2,719,164 133 Ector County $137,266,355 $66,134,049 $43,209,498 $18,866,440 865 Ellis County $182,081,920 $89,656,364 $59,850,361 $26,004,572 1,228 Erath County $23,816,465 $11,922,080 $7,896,542 $3,621,198 162 Falls County $15,401,599 $7,424,795 $4,829,317 $1,968,191 95 Fannin County $37,106,515 $18,978,946 $12,632,580 $5,504,509 256 Fisher County $3,816,668 $1,973,882 $1,346,755 $424,610 25 Franklin County $6,485,069 $3,314,098 $2,247,457 $1,044,254 46 Freestone County $54,504,057 $26,716,196 $17,817,067 $8,061,402 362 Glasscock County $3,329,390 $1,687,288 $1,170,075 $203,294 20 Grayson County $117,518,128 $57,767,844 $38,549,863 $16,170,522 784 Haskell County $1,448,171 $739,826 $497,605 $201,714 10 Henderson County $87,155,381 $42,841,303 $28,210,173 $13,217,371 584 Hill County $32,203,673 $15,811,881 $10,571,914 $4,852,405 219 Hood County $32,302,104 $15,610,486 $10,287,271 $4,707,557 212 Hopkins County $48,654,051 $24,426,511 $16,078,813 $7,130,413 324 Houston County $17,920,233 $8,777,364 $5,792,716 $2,182,239 112 Howard County $36,161,924 $17,856,580 $11,864,364 $5,504,220 241 Hunt County $37,048,109 $18,316,980 $12,071,424 $5,649,068 247 19 perrymangroup.com

(continued) The Historical (2001-2005) Impact of TXU's Investment in Electric Delivery on Business Activity in Affected Counties Total Gross Personal Retail (Person- County Expenditures Product Income Sales Years) Jack County $16,315,663 $7,975,756 $5,381,214 $1,952,134 103 Johnson County $83,918,695 $41,007,224 $27,202,184 $11,587,832 554 Jones County $4,892,145 $2,409,117 $1,578,308 $663,409 32 Kaufman County $81,802,622 $40,546,756 $26,952,379 $11,242,391 546 Lamar County $52,622,819 $26,640,464 $17,806,594 $7,971,975 361 Lampasas County $1,284,886 $611,957 $406,068 $176,768 8 Lee County $1,264,014 $621,874 $412,297 $172,020 8 Leon County $39,199,785 $18,633,690 $12,313,103 $5,394,368 244 Limestone County $24,711,782 $12,379,311 $8,334,824 $3,393,720 168 Loving County $2,268,205 $1,120,618 $812,428 $0 12 Lynn County $944,924 $466,896 $310,158 $74,452 5 Martin County $5,594,802 $2,863,896 $1,907,421 $713,888 36 McLennan County $197,310,341 $96,261,044 $63,121,332 $26,038,523 1,276 Midland County $107,080,271 $53,507,236 $35,093,753 $15,607,362 707 Milam County $34,931,591 $17,341,066 $11,716,984 $4,889,786 236 Mitchell County $31,328,293 $16,098,061 $10,771,779 $5,142,101 221 Montague County $1,174,270 $596,772 $397,027 $181,060 8 Nacogdoches County $56,195,859 $28,351,696 $18,900,564 $8,690,874 391 Navarro County $78,121,246 $37,465,831 $24,989,739 $9,480,869 492 Nolan County $21,001,410 $10,646,269 $7,147,465 $3,042,041 144 Palo Pinto County $28,670,645 $13,819,336 $9,220,937 $4,036,496 187 Parker County $73,110,679 $35,471,178 $23,252,035 $10,356,625 474 Pecos County $2,291,389 $1,140,583 $756,268 $362,120 16 Rains County $1,160,153 $585,751 $394,977 $179,160 8 Reagan County $1,889,910 $968,038 $650,960 $256,254 12 Red River County $7,446,349 $3,680,999 $2,481,875 $1,007,273 49 Reeves County $2,559,503 $1,257,429 $831,822 $374,223 17 Robertson County $7,299,775 $3,682,465 $2,491,913 $1,032,158 50 Rockwall County $95,648,926 $47,918,208 $32,142,649 $13,651,915 656 Rusk County $40,516,389 $20,094,453 $13,417,529 $5,649,729 267 Scurry County $23,099,796 $11,581,071 $7,625,273 $3,362,229 152 Shackelford County $1,487,917 $711,229 $468,954 $222,608 10 Smith County $208,842,506 $102,247,433 $67,204,824 $27,917,929 1,357 Somervell County $30,735,736 $15,923,785 $10,897,480 $5,004,774 222 Stephens County $20,243,360 $10,019,457 $6,672,789 $3,150,442 137 Sterling County $934,718 $483,164 $322,753 $181,060 7 Tarrant County $1,463,881,929 $720,132,241 $471,504,094 $191,488,930 9,446 Taylor County $1,300,677 $636,106 $415,560 $181,060 8 Throckmorton County $2,248,553 $1,168,460 $787,241 $294,468 15 Titus County $27,246,276 $13,354,870 $8,942,809 $3,587,779 173 Travis County $69,777,476 $34,498,324 $22,720,857 $9,304,968 454 Upton County $5,528,715 $2,803,276 $1,893,020 $572,633 35 20 perrymangroup.com

The Projected (2006-2010) Impact of TXU's Investment in Electric Delivery on Business Activity in Affected Counties Total Gross Personal Retail (Person- County Expenditures Product Income Sales Years) Anderson County $58,752,155 $29,380,002 $19,370,444 $8,542,061 392 Andrews County $31,649,041 $15,215,474 $9,991,196 $3,822,818 190 Angelina County $114,104,433 $56,452,703 $37,436,145 $16,259,852 757 Archer County $29,492,489 $14,942,769 $9,975,703 $4,389,463 200 Bastrop County $10,688,292 $5,106,908 $3,388,477 $1,504,356 70 Baylor County $1,844,252 $961,158 $647,482 $281,105 13 Bell County $278,299,506 $136,478,439 $90,313,438 $38,025,009 1,834 Borden County $792,932 $363,861 $242,898 $60,036 4 Bosque County $6,448,811 $3,219,375 $2,155,382 $831,334 42 Brown County $87,157,550 $43,469,320 $29,028,699 $12,873,798 599 Cherokee County $74,786,426 $36,692,374 $24,534,336 $9,848,076 483 Clay County $12,337,024 $6,125,644 $4,116,144 $1,695,014 82 Coleman County $1,055,388 $518,053 $339,557 $158,520 7 Collin County $928,706,403 $449,731,769 $295,130,138 $125,789,802 5,963 Comanche County $28,489,451 $14,571,080 $9,656,164 $3,846,872 187 Cooke County $26,360,916 $12,477,468 $8,161,184 $3,552,842 164 Coryell County $18,268,101 $9,029,634 $5,966,997 $2,912,690 123 Crane County $8,688,206 $4,444,717 $3,040,696 $1,237,546 58 Culberson County $3,228,263 $1,642,458 $1,088,216 $640,152 23 Dallas County $2,728,918,959 $1,313,967,060 $857,080,697 $300,434,750 16,575 Dawson County $12,846,418 $6,565,892 $4,358,512 $2,004,563 88 Delta County $10,801,714 $5,448,616 $3,738,332 $859,504 67 Denton County $309,070,485 $151,764,517 $99,988,129 $42,121,980 2,021 Eastland County $21,607,898 $10,630,720 $7,136,874 $2,924,687 143 Ector County $165,808,592 $79,885,516 $52,194,189 $22,789,399 1,045 Ellis County $265,564,261 $130,762,714 $87,291,022 $37,927,351 1,792 Erath County $38,102,768 $19,073,539 $12,633,281 $5,793,373 259 Falls County $26,362,449 $12,708,796 $8,266,195 $3,368,892 163 Fannin County $53,219,821 $27,220,452 $18,118,211 $7,894,813 367 Fisher County $4,891,624 $2,529,821 $1,726,066 $544,201 32 Franklin County $9,135,566 $4,668,595 $3,166,010 $1,471,048 65 Freestone County $68,736,270 $33,692,385 $22,469,497 $10,166,412 457 Glasscock County $3,966,425 $2,010,128 $1,393,953 $242,192 23 Grayson County $150,820,957 $74,138,362 $49,474,300 $20,752,998 1,006 Haskell County $1,828,616 $934,184 $628,330 $254,706 12 Henderson County $99,408,360 $48,864,266 $32,176,177 $15,075,572 666 Hill County $48,857,260 $23,988,728 $16,039,002 $7,361,744 332 Hood County $39,313,449 $18,998,826 $12,520,178 $5,729,357 258 Hopkins County $59,693,606 $29,968,862 $19,727,079 $8,748,297 398 Houston County $20,301,464 $9,943,696 $6,562,449 $2,472,213 127 Howard County $39,533,608 $19,521,501 $12,970,579 $6,017,426 264 Hunt County $44,921,668 $22,209,751 $14,636,874 $6,849,623 299 22 perrymangroup.com

(continued) The Projected (2006-2010) Impact of TXU's Investment in Electric Delivery on Business Activity in Affected Counties Total Gross Personal Retail (Person- County Expenditures Product Income Sales Years) Jack County $29,791,436 $14,563,259 $9,825,779 $3,564,481 187 Johnson County $101,527,458 $49,611,821 $32,910,051 $14,019,321 670 Jones County $6,270,007 $3,087,639 $2,022,835 $850,256 41 Kaufman County $124,576,320 $61,748,212 $41,045,484 $17,120,915 832 Lamar County $66,675,351 $33,754,601 $22,561,712 $10,100,831 458 Lampasas County $1,135,704 $540,905 $358,922 $156,244 7 Lee County $1,117,255 $549,671 $364,427 $152,047 7 Leon County $53,584,297 $25,471,394 $16,831,443 $7,373,852 334 Limestone County $37,959,504 $19,015,727 $12,803,034 $5,213,057 258 Loving County $2,506,069 $1,238,136 $897,626 $0 13 Lynn County $835,214 $412,687 $274,147 $65,808 5 Martin County $6,410,467 $3,281,423 $2,185,503 $817,966 41 McLennan County $252,882,344 $123,372,746 $80,899,309 $33,372,212 1,635 Midland County $118,144,940 $59,036,171 $38,720,011 $17,220,080 780 Milam County $55,937,430 $27,768,980 $18,762,900 $7,830,220 379 Mitchell County $50,506,678 $25,952,886 $17,365,989 $8,289,964 356 Montague County $2,075,862 $1,054,967 $701,861 $320,076 14 Nacogdoches County $65,400,461 $32,995,563 $21,996,382 $10,114,396 455 Navarro County $101,367,762 $48,614,527 $32,425,928 $12,302,088 639 Nolan County $21,001,410 $10,646,269 $7,147,465 $3,042,041 144 Palo Pinto County $36,655,160 $17,667,895 $11,788,884 $5,160,623 239 Parker County $92,640,160 $44,946,315 $29,463,169 $13,123,109 601 Pecos County $2,835,487 $1,411,418 $935,846 $448,106 19 Rains County $1,025,454 $517,742 $349,118 $158,359 7 Reagan County $1,670,482 $855,644 $575,380 $226,501 11 Red River County $10,238,340 $5,061,181 $3,412,448 $1,384,948 67 Reeves County $3,084,998 $1,515,593 $1,002,604 $451,055 20 Robertson County $12,524,926 $6,318,360 $4,275,614 $1,770,973 86 Rockwall County $161,462,585 $80,889,541 $54,259,210 $23,045,460 1,107 Rusk County $51,611,746 $25,597,292 $17,091,900 $7,196,900 340 Scurry County $30,422,513 $15,252,312 $10,042,511 $4,428,068 201 Shackelford County $1,878,803 $898,073 $592,152 $281,088 12 Smith County $243,911,947 $119,417,119 $78,490,053 $32,605,989 1,584 Somervell County $42,691,255 $22,117,783 $15,136,358 $6,951,520 308 Stephens County $21,595,005 $10,688,454 $7,118,330 $3,360,796 146 Sterling County $1,652,385 $854,132 $570,559 $320,076 12 Tarrant County $1,803,361,315 $887,133,450 $580,847,557 $235,895,888 11,637 Taylor County $1,149,662 $562,251 $367,311 $160,038 7 Throckmorton County $2,484,356 $1,290,995 $869,797 $325,348 16 Titus County $32,239,939 $15,802,534 $10,581,836 $4,245,343 205 Travis County $95,765,944 $47,347,149 $31,183,191 $12,770,582 623 Upton County $7,751,481 $3,930,306 $2,654,090 $802,854 49 23 perrymangroup.com

(continued) The Projected (2006-2010) Impact of TXU's Investment in Electric Delivery on Business Activity in Affected Counties Total Gross Personal Retail (Person- County Expenditures Product Income Sales Years) Van Zandt County $52,474,132 $26,847,501 $18,031,297 $8,161,934 374 Ward County $30,358,226 $14,639,137 $9,470,127 $4,673,107 192 Wichita County $122,684,622 $61,190,544 $40,555,494 $17,604,171 826 Williamson County $214,867,601 $109,347,835 $72,886,410 $32,519,705 1,486 Winkler County $11,539,405 $5,611,174 $3,711,559 $1,733,087 74 Wise County $65,163,646 $33,154,635 $22,047,419 $9,653,673 443 Young County $52,154,476 $26,238,749 $17,367,634 $7,522,985 349 Total County Impact $10,252,463,890 $5,020,142,828 $3,304,657,900 $1,336,984,588 65,950 Spillover to Other Areas $2,023,528,663 $774,269,338 $489,334,516 $88,761,199 9,525 TOTAL STATE IMPACT $12,275,992,553 $5,794,412,165 $3,793,992,417 $1,425,745,787 75,475 24 perrymangroup.com

The Historical (2001-2005) Impact of TXU's Investment in Electric Delivery on Business Activity in Texas Legislative Districts Total Gross Personal Retail (Person- Texas House of Representatives Expenditures Product Income Sales Years) House District 2 $81,511,200 $41,057,946 $27,346,268 $12,563,656 564 House District 3 $148,108,864 $74,269,092 $49,514,428 $21,191,613 989 House District 4 $168,958,003 $83,388,059 $55,162,552 $24,459,762 1,130 House Districts 6, 7* $208,842,506 $102,247,433 $67,204,824 $27,917,929 1,357 House District 8 $209,356,781 $102,574,660 $68,292,398 $28,499,209 1,369 House District 9 $56,195,859 $28,351,696 $18,900,564 $8,690,874 391 House District 10 $214,285,593 $105,468,244 $70,422,275 $30,856,977 1,447 House District 11 $109,629,277 $53,988,408 $36,004,440 $14,573,154 710 House District 12 $102,664,314 $50,792,751 $33,682,794 $14,629,638 681 House District 17 $10,268,892 $4,924,440 $3,267,087 $1,439,439 67 House District 20 $204,808,722 $103,792,892 $69,341,932 $30,600,289 1,412 House Districts 46, 47, 48, 49, 50, 51* $69,777,476 $34,498,324 $22,720,857 $9,304,968 454 House District 53 $477,608 $234,441 $153,664 $71,737 3 House District 54 $1,284,886 $611,957 $406,068 $176,768 8 House District 55 $227,660,928 $111,645,214 $73,880,264 $31,106,087 1,500 House District 56 $197,310,341 $96,261,044 $63,121,332 $26,038,523 1,276 House District 57 $61,901,159 $29,740,951 $19,634,333 $8,394,717 390 House District 58 $86,654,658 $42,373,072 $28,116,623 $11,940,533 571 House District 59 $91,208,733 $46,317,152 $31,019,924 $13,969,302 627 House District 60 $152,932,262 $75,050,604 $49,984,523 $22,242,123 1,024 House District 61 $121,943,470 $60,316,832 $39,774,085 $17,590,963 806 House District 62 $154,624,644 $76,746,790 $51,182,443 $21,675,031 1,039 House Districts 63, 64, 65* $245,246,426 $120,424,651 $79,340,256 $33,423,654 1,604 House Districts 66, 67, 70, 89* $707,416,314 $342,570,687 $224,807,187 $95,816,889 4,542 House District 68 $93,624,085 $46,184,975 $30,676,820 $12,789,087 609 House District 69 $130,129,074 $65,088,270 $43,195,902 $18,797,277 878 House District 71 $22,302,086 $11,282,375 $7,563,025 $3,223,101 153 House District 72 $54,428,089 $27,679,133 $18,397,052 $8,504,330 373 House District 74 $35,735,431 $17,390,562 $11,396,144 $5,262,840 227 House District 81 $176,193,851 $84,896,997 $55,550,663 $23,826,392 1,103 House District 82 $137,497,862 $69,039,373 $45,522,302 $19,800,264 909 House District 85 $52,866,768 $26,256,621 $17,518,177 $7,375,222 347 House District 89 $95,648,926 $47,918,208 $32,142,649 $13,651,915 656 House Districts 90, 91, 92, 93, 94, 95, 96, 97, 98, 99* $1,463,881,929 $720,132,241 $471,504,094 $191,488,930 9,446 House Districts 100, 101, 102, 103, 104, 105, 106, 107, 108, 109, 110, 111, 112, 113, 114, 115* $1,985,974,268 $956,241,211 $623,741,575 $218,641,774 12,062 Total Impact $7,881,351,285 $3,859,757,305 $2,540,489,523 $1,030,534,964 50,724 Spillover to Other Areas $1,547,277,368 $590,665,774 $373,502,600 $64,515,194 7,245 TOTAL STATE IMPACT $9,428,628,653 $4,450,423,078 $2,913,992,124 $1,095,050,158 57,969 *Note: House Districts 6 and 7 share the total impact listed. House Districts 46, 47, 48, 49, 50, and 51 share the total impact listed. House Districts 63, 64, and 65 share the total impact listed. House Districts 66, 67, 70, and a portion of District 89 share the total impact listed. The impact for House District 89 is somewhat understated because the District also includes a portion of Collin County which could not be allocated due to insufficient information. House Districts 90, 91, 92, 93, 94, 95, 96, 97, 98, and 99 share the total impact listed. House Districts 100, 101, 102, 103, 104, 105, 106, 107, 108, 109, 110, 111, 112, 113, 114, and 115 share the total impact listed. 25 perrymangroup.com

(continued) The Historical (2001-2005) Impact of TXU's Investment in Electric Delivery on Business Activity in Texas Legislative Districts Total Gross Personal Retail (Person- Texas Senate Expenditures Product Income Sales Years) Senate District 1** $203,931,069 $101,167,361 $67,297,871 $28,566,987 1,349 Senate District 2** $419,991,784 $209,862,995 $139,511,178 $59,848,779 2,833 Senate District 3** $418,842,074 $207,198,141 $137,140,102 $60,148,265 2,786 Senate District 5 $349,708,368 $174,603,792 $116,503,851 $50,836,195 2,356 Senate Districts 8, 9, 10, 12, 16, 23** $4,402,518,937 $2,139,368,791 $1,399,393,111 $539,371,247 27,654 Senate Districts 14, 25** $69,777,476 $34,498,324 $22,720,857 $9,304,968 454 Senate District 18 $9,004,878 $4,302,566 $2,854,790 $1,267,419 59 Senate District 19 $44,510,222 $21,657,409 $14,218,487 $6,580,713 284 Senate District 22 $670,936,648 $328,497,774 $217,931,143 $92,568,473 4,425 Senate District 24 $345,299,959 $170,440,664 $113,045,466 $48,054,150 2,295 Senate District 28 $107,408,937 $54,523,947 $36,363,704 $15,802,724 727 Senate District 30** $512,168,508 $253,168,116 $168,061,744 $72,555,679 3,399 Senate District 31 $327,252,423 $160,467,425 $105,447,218 $45,629,365 2,102 Total Impact $7,881,351,285 $3,859,757,305 $2,540,489,523 $1,030,534,964 50,724 Spillover to Other Areas $1,547,277,368 $590,665,774 $373,502,600 $64,515,194 7,245 TOTAL STATE IMPACT $9,428,628,653 $4,450,423,078 $2,913,992,124 $1,095,050,158 57,969 **NOTE: The Smith County impact was divided evenly among Senate Districts 1, 2, and 3; insufficient data exist to permit more precise allocation. Senate Districts 8, 9, 10, 12, 16, and 23 share these total impacts; insufficient data was available to permit allocation to the individual districts. Senate Districts 14 and 25 share the total impact listed. The total for Senate District 30 is somewhat understated because a portion of Collin and Denton counties that could not be allocated due to insufficient information was omitted. 26 perrymangroup.com

The Projected (2006-2010) Impact of TXU's Investment in Electric Delivery on Business Activity in Texas Legislative Districts Total Gross Personal Retail (Person- Texas House of Representatives Expenditures Product Income Sales Years) House District 2 $98,421,253 $49,574,995 $33,017,289 $15,169,915 681 House District 3 $188,784,515 $94,704,389 $63,187,418 $26,809,970 1,260 House District 4 $223,984,680 $110,612,477 $73,221,662 $32,196,486 1,498 House Districts 6, 7* $243,911,947 $119,417,119 $78,490,053 $32,605,989 1,584 House District 8 $266,815,691 $130,702,641 $87,068,903 $36,223,618 1,745 House District 9 $65,400,461 $32,995,563 $21,996,382 $10,114,396 455 House District 10 $314,421,521 $154,751,442 $103,330,023 $45,289,096 2,124 House District 11 $146,699,636 $72,233,361 $48,188,686 $19,517,190 951 House District 12 $114,104,433 $56,452,703 $37,436,145 $16,259,852 757 House District 17 $11,805,547 $5,656,579 $3,752,905 $1,656,404 77 House District 20 $270,805,031 $137,116,815 $91,649,311 $40,349,925 1,865 House Districts 46, 47, 48, 49, 50, 51* $95,765,944 $47,347,149 $31,183,191 $12,770,582 623 House District 53 $1,055,388 $518,053 $339,557 $158,520 7 House District 54 $1,135,704 $540,905 $358,922 $156,244 7 House District 55 $278,299,506 $136,478,439 $90,313,438 $38,025,009 1,834 House District 56 $252,882,344 $123,372,746 $80,899,309 $33,372,212 1,635 House District 57 $92,471,672 $44,498,550 $29,373,253 $12,513,717 583 House District 58 $107,976,269 $52,831,196 $35,065,434 $14,850,655 712 House District 59 $127,551,575 $64,792,036 $43,392,800 $19,504,454 877 House District 60 $208,207,864 $102,353,288 $68,185,116 $30,330,350 1,398 House District 61 $157,803,806 $78,100,951 $51,510,588 $22,776,782 1,043 House District 62 $204,040,778 $101,358,814 $67,592,511 $28,647,811 1,373 House Districts 63, 64, 65* $309,070,485 $151,764,517 $99,988,129 $42,121,980 2,021 House Districts 66, 67, 70, 89* $928,706,403 $449,731,769 $295,130,138 $125,789,802 5,963 House District 68 $128,876,937 $63,646,425 $42,318,210 $17,516,557 838 House District 69 $152,177,111 $76,133,313 $50,531,197 $21,993,634 1,027 House District 71 $22,151,071 $11,208,520 $7,514,776 $3,202,079 152 House District 72 $80,929,190 $41,205,197 $27,408,500 $12,718,032 557 House District 74 $42,013,042 $20,446,742 $13,394,419 $6,212,420 268 House District 81 $208,997,038 $100,712,163 $65,896,945 $28,345,304 1,310 House District 82 $153,841,512 $77,258,508 $50,958,812 $22,083,008 1,016 House District 85 $59,612,676 $29,635,412 $19,776,418 $8,326,496 391 House District 89 $161,462,585 $80,889,541 $54,259,210 $23,045,460 1,107 House Districts 90, 91, 92, 93, 94, 95, 96, 97, 98, 99* $1,803,361,315 $887,133,450 $580,847,557 $235,895,888 11,637 House Districts 100, 101, 102, 103, 104, 105, 106, 107, 108, 109, 110, 111, 112, 113, 114, 115* $2,728,918,959 $1,313,967,060 $857,080,697 $300,434,750 16,575 Total Impact $10,252,463,890 $5,020,142,828 $3,304,657,900 $1,336,984,588 65,950 Spillover to Other Areas $2,023,528,663 $774,269,338 $489,334,516 $88,761,199 9,525 TOTAL STATE IMPACT $12,275,992,553 $5,794,412,165 $3,793,992,417 $1,425,745,787 75,475 *Note: House Districts 6 and 7 share the total impact listed. House Districts 46, 47, 48, 49, 50, and 51 share the total impact listed. House Districts 63, 64, and 65 share the total impact listed. House Districts 66, 67, 70, and a portion of District 89 share the total impact listed. The impact for House District 89 is somewhat understated because the District also includes a portion of Collin County which could not be allocated due to insufficient information. House Districts 90, 91, 92, 93, 94, 95, 96, 97, 98, and 99 share the total impact listed. House Districts 100, 101, 102, 103, 104, 105, 106, 107, 108, 109, 110, 111, 112, 113, 114, and 115 share the total impact listed. 27 perrymangroup.com