Founded through the merger of three Texas utility companies in 1945, Texas Utilities, renamed TXU in 1999, lights up more of Texas than any other utility in the state and provides natural gas to over 5.8 million customers. TXU currently controls 18 subsidiaries, including a utility company in Australia and Mexico. Even though TXU's largest subsidiaries remain electric companies, the company's other subsidiaries reflect TXU's efforts to stay ahead of regulatory and business pressures.

Subsidiaries galore

One TXU subsidiary, TXU Fuel, was created in 1995 to deal with new legislation opening wholesale energy production to competiton, forcing TXU to share its transmission system with other energy producers. TXU Fuel provides direct natural gas service to customers, while TXU Mining and TXU Energy Services, two coal producing subsidiaries, represent TXU's decreasing reliance on natural gas as an energy source. TXU's largest subsidary, TXU Electric & Gas, serves customers throughout Texas. Other subsidaries, such as the Eastern Group under the direction of Philip Turberville, controls utilities throughout the United Kingdom. In 1995, TXU entered the telecommunications industry by spending $200 million for a 20 percent stake in PCS Primeco, a wireless telecommunications firm. The acquisition of Lufkin-Conroe in 1997 further enabled the company to gain telecom power. Now the subsidary known as TXU Communications focuses on Internet, cellular, long-distance and local services. Other subsidiaries of TXU provide administrative and real estate support for the company.

New name, new outlook

Texas Untilities decided to change its name to TXU, the companies stock symbol, in 1999 to reflect its growing strength throughout the world. No longer just a utility company of Texas, TXU has expanded its reach into countries such as Australia, Mexico, and England and wants the world to know it. In 1999, TXU bought Australia's Westar/Kinetik natural gas utility for $1.6 billion. The purchase will allow TXU to create a multi-energy company that will be able to provide a variety of energy services and products throughout Australia. In 2000, TXU increased its Australian presence by winning a bid for a 100-year lease on Optima Energy, South Australia's state-owned electricity generation business. TXU has also built an underground gas storage facility in Australia to avoid potential hazards that can result from plant mishaps.

The company plans to continue its growth into other countries, especially in Europe, where it has recently bought a 51 percent stake of the municipal utility in the northern German city of Kiel. In Spain, TXU continues to vy for the spot as Hidro Cantabrico's number one suitor. Previous offers to buy the company have failed, but TXU continues to pursue expansion efforts.

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