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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF
THE SECURITIES EXCHANGE ACT OF 1934
DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED) - SEPTEMBER 7, 2000
TXU CORP.
(Exact name of registrant as specified in its charter)
TEXAS 1-12833 75-2669310
(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation) File Number) Identification No.)
TXU ELECTRIC COMPANY
(Exact name of registrant as specified in its charter)
TEXAS 1-11668 75-1837355
(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation) File Number) Identification No.)
ENERGY PLAZA, 1601 BRYAN STREET, DALLAS, TEXAS 75201-3411
(Address of principal executive offices, including zip code)
REGISTRANTS' TELEPHONE NUMBER, INCLUDING AREA CODE - (214) 812-4600
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TXU Corp. ("TXU") and TXU Electric Company ("TXU Electric")
ITEM 5. OTHER EVENTS.
In October 1999, TXU Electric filed a petition with the Public
Utility Commission of Texas (the PUC) for a financing order (Docket No. 21527)
to permit the issuance by a special purpose entity of $1.65 billion of
transition bonds secured by payments designed to enable TXU Electric to recover
its generation-related regulatory assets and other qualified costs in accordance
with the legislation to restructure the electric utility industry in Texas
adopted in 1999 (the 1999 Restructuring Legislation). The proceeds received by
TXU Electric are to be used solely for the purpose of retiring utility debt and
equity. On May 1, 2000, the PUC signed a financing order rejecting TXU
Electric's request for the $1.65 billion and authorized only $363 million. TXU
Electric believes this financing order is inconsistent with the 1999
Restructuring Legislation and filed an appeal on May 2, 2000 with the Travis
County, Texas District Court. On September 7, 2000, the District Court issued a
final judgment reversing that part of the PUC's financing order that utilized
regulated asset life (up to 40 years) for purposes of present-valuing the
benefits of securitization. Instead, the District Court ruled that a
present-value period based upon stranded cost and regulatory asset recovery
periods authorized under the 1999 Restructuring Legislation should have been
used by the PUC. The District Court also ruled that PUC statements in its
financing order concerning the future impact of securitization of losses on
reacquired debt was only an advisory opinion. The judgment affirmed other
aspects of the PUC's financing order and ordered the case remanded to the PUC
for further proceedings consistent with the judgment. TXU Electric has appealed
the District Court's judgment directly to the Texas Supreme Court. TXU Electric
expects that any difference between the $1.65 billion and the amount finally
authorized will continue to be deferred until recovery of generation-related
assets is again addressed by the PUC, most likely in 2001. TXU Electric is
unable to predict the outcome of this proceeding.
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FORWARD-LOOKING STATEMENTS
This report and other presentations made by TXU and TXU Electric
contain forward-looking statements within the meaning of Section 21E of the
Securities Exchange Act of 1934, as amended. Although TXU and TXU Electric
believe that in making any such statement their expectations are based on
reasonable assumptions, any such statement involves uncertainties and is
qualified in its entirety by reference to factors contained in the
Forward-Looking Statements sections of Item 7. Management's Discussion and
Analysis of Financial Condition and Results of Operations in each of TXU's and
TXU Electric's Annual Report on Form 10-K for the year December 31, 1999 and of
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations in each of TXU's and TXU Electric's Quarterly Report on Form 10-Q
for the quarterly period ended June 30, 2000, that could cause the actual
results of TXU or TXU Electric to differ materially from those projected in such
forward-looking statements.
Any forward-looking statement speaks only as of the date on which
such statement is made. TXU and TXU Electric do not undertake any obligation to
update any forward-looking statement to reflect events or circumstances after
the date on which such statement is made or to reflect the occurrence of
unanticipated events. New factors emerge from time to time. It is not possible
for TXU or TXU Electric to predict all of such factors, nor can it assess the
impact of each such factor or the extent to which any factor, or combination of
factors, may cause results to differ materially from those contained in any
forward-looking statement.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
TXU CORP.
By: /s/ Kirk R. Oliver
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Name: Kirk R. Oliver
Title: Treasurer and Assistant Secretary
Dated: September 15, 2000
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
TXU ELECTRIC COMPANY
By: /s/ Laura Conn
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Name: Laura Conn
Title: Treasurer and Assistant Secretary
Dated: September 15, 2000
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