TXU Energy and Cielo Wind Power Announce Wind Project

TXU Energy and Cielo Wind Power Announce Wind Project

DALLAS July 25, 2002 - TXU Energy, of Dallas, and Cielo Wind
Power, of Austin, have announced an agreement which will result
in the construction of a 240-megawatt wind farm in West Texas.
Cielo Wind Power will construct the project and TXU Energy will
purchase the power. TXU Energy is a unit of Dallas-based TXU

"Noelke Hill Wind Ranch will be one of the largest wind
projects in America," said V.J. Horgan, president of Trading for
TXU Energy. "With the addition of Noelke Hill, TXU Energy will
have 624 megawatts of renewable energy, making us the third
largest purchaser of wind energy in the United States and able to
satisfy the annual energy needs of 132,000 Texas homes."

The Noelke Hill Wind Ranch will utilize 240 wind turbines, each
with a capacity of one-megawatt. Mitsubishi was selected as the
turbine supplier for the project primarily based on its
commitment to working with Cielo Wind Power to maximize
economic development in Upton and Crockett Counties. The Wind
Ranch will be located south of Rankin, Texas near McCamey, the
"Wind Capital of Texas" and is scheduled to be operational by
September 2003.

"We're pleased that the Noelke Hill Wind Ranch will bring
together two Texas companies -- TXU and Cielo -- with a strong
commitment to renewable energy," said Walter Hornaday, President
of Cielo Wind Power. "As with our other successful Wind Ranch
projects in Crockett County and Upton County, the project will
provide clean economic development opportunities that maximize
ongoing ranching activities and protect natural resources."

"The Noelke Hill Wind Ranch demonstrates TXU's environmental
principles in action," said Bill Driscoll, TXU vice president of
environment, health and safety. "One of TXU's environmental
principles calls for the research and development of renewable
energy. When Noelke Hill is complete, TXU renewable projects
world-wide will provide enough energy to power more than 420,000
homes or the annual needs of 1.2 million people."

TXU Energy has agreed to purchase all of the energy produced at
Noelke Hill for 15 years with an additional five-year option.
The financial terms were not disclosed.

"The American Wind Energy Association is delighted that TXU
Energy is continuing to demonstrate it's a national leader in
wind energy," said Randall Swisher, AWEA executive director.
"Wind energy is on track to supply at least six percent of U.S.
electricity by 2020 and TXU Energy is one of the leaders."

TXU Energy was honored in 2001 by the American Wind Energy
Association with its Utility Leadership Award "for leading the
Texas wind energy boom." By the end of 2003, TXU Energy will
receive energy from more than 680 wind turbines across West