History of Luminant 1878–Present: Powering Texas
uminant is part of Energy Future Holdings Corp., formerly TXU Corp. EFH’s family of companies has L served the power needs of much of Texas with a legacy that stretches all the way back to 1882, when the first electric light brightened the Dallas night. We are proud of our commitment to service and our role in powering the economic and civic development of the state. This brief historical timeline details the evolution of the companies that today make up EFH, which was formed as the result of a private-equity acquisition in late 2007. Beginning with 2008, the timeline focuses on Luminant alone, which marked its first full year as a separate company that year.
1878–1935: Building the Electric Light Business Despite being ridiculed as dangerous and worthless, electric lights began illuminating Dallas in 1882, quickly spurring a chaos of hundreds of companies competing to deliver the newfangled, unreliable and expensive service. In the first third of the 20th century, the three operating companies that would later form TXU—Dallas Power & Light, Texas Electric Service and Texas Power & Light—evolved and often partnered to build an electri- + cal system that would achieve unsurpassed reliability and affordability. Timeline, 1878–1935
1945–1965: The Power System Matures The historic bond connecting the operating compa- nies was formalized on Sept. 4, 1945, when the Texas + Utilities Company holding company, later TXU, was incorporated. World War II’s end unleashed a huge pent-up demand for products and services, including those manufactured and powered by electricity. In response, the company began a massive construction program of new power plants and power-line facilities to support the unprecedented economic growth of the service area. Timeline, 1945–1965
1968–1993: Diversifying the Fuel Supply In the late 1960s, rising natural gas prices and the need to build new generating capacity to meet predict- ed growth caused the company to look to diversifying its traditional reliance on just one fuel. An ambitious, 25-year construc- tion program resulted in the massive addition of 5,800 megawatts of new lignite-fueled generating plants and 2,300 MW of nuclear-fueled capacity. Today, these workhorse facilities continue to be the baseload foundation of the company’s power production. Timeline, 1968–1993
Help | Next 1 1994–2002: The Ramp-up to Competition Beginning in the late 1970s, regulatory and policy changes began opening the door to deregulation in the electric utility industry. Throughout the 1990s, TXU transformed itself from a North Texas electric utility to a diversified port- folio of complementary energy businesses ready to compete in Texas, Europe and Australia. The decade culminated with the 1999 landmark Texas Electric Choice Act. The year 2002 dawned brightly with the opening of the state’s electricity market to competition. But it ended with the financial failure of TXU Europe, a battle for the company’s survival and a return to fundamentals. Timeline, 1994–2002
2004–2007: Transformation for the Next Horizon A decisive response to the financial crisis began to restore stability. In early 2004, the company’s first external CEO was hired to turn around the company. Transformation became the operative word and a focus on the three legacy Texas electric businesses an immediate action, as disadvantaged businesses and the internation- al operations were sold. After almost four years of hard work and continuous improvement, TXU was transformed into a high-performing industrial com- pany, ready to enter a new era as Energy Future Holdings. Timeline, 2004–2007
2008–Powering Texas Luminant, EFH’s power generation business and Texas’ largest electricity producer, has also entered a new era of progress. The result will be cleaner energy sources to meet the growing population and to protect the environment. But one thing hasn’t changed—and it won’t—the dedication and creativity of employees and their commitment to powering Texas day in and day out. Timeline, 2008–2009 Powering Texas Timeline, 2010–2011 Powering Texas
Back | Next 2 1878–1935: Building the Electric Light Business
Electric arc lights gain 1878 Thomas Edison invents worldwide attention 1879 the first practical when used during the incandescent light bulb Paris Exposition +
First electric lights illuminate 1882 Dallas with service provided by Dallas Electric Lighting 1886 Fort Worth gets electric lights, Company, an indirect TXU provided by Fort Worth Electric predecessor; TXU Corp. became Light and Power Company, an Energy Future Holdings Corp. indirect TXU predecessor in 2007 + +
1912 Texas Power & Light TP&L completes Company, a direct the state’s first 1913 forerunner of TXU, high-voltage is formed from the transmission line consolidation of 13 electric companies + + brought together by Electric Bond and Share Company, a subsidiary of General Electric Dallas Power & Light Company, serving much of North Central and East Company, a direct Texas and several counties west of Fort Worth forerunner of TXU, is 1917 formed by Electric Bond and Share, serving the city of Dallas area + Trinidad Unit 1 comes on line, as the only lignite 1926 plant in Texas and the biggest in the U.S. using Texas Electric Service lignite exclusively Company, a direct + forerunner of TXU, 1929 is formed by Electric Bond and Share, serving Fort Worth and Transmission areas west of Abilene 1932 network connecting the three companies is essentially complete
Wheeler-Rayburn Public Utility Holding Company Act is passed, allowing utilities 1935 serving integrated, contiguous territories to form holding companies
Back | Next Timeline 3 1945–1965: The Power System Matures
Texas Utilities Company, formed Sept. 4, 1945, formalizes the historic and traditional 1945 bonds connecting TP&L, DP&L and TESCO hires consultants to study water-resource- TESCO in a new holding company development plan for West Texas for the three utilities 1946 DP&L’s Greater Electric Appliance Exposition begins For the first time, air conditioning at the State Fair of Texas + establishes the company as summer 1947 peaking, rather than winter peaking TESCO’s Texas Electric Show begins, touts electric appliances and usage
Handley Unit 1, the industry’s + 1948 first outdoor generator, comes on line (sold in 2001) 1949 DP&L’s Reddy Kilowatt’s Kitchen + premieres on television
Three companies’ common stock consolidation is completed TP&L’s rural contact 1950 New subsidiary formed and home lighting to provide centralized 1951 programs begin engineering and other + + technical services New subsidiary is formed to mine lignite and 1952 operate an early lignite plant built to serve an System installs its first aluminum facility in Rockdale in Central Texas boiler-turbine-generator 1953 control board, on
Parkdale Unit 2 + Lignite is used to provide 1954 electricity for aluminum production for the first time, System begins Live Better . . . + at a Rockdale smelter Electrically Total Electric Gold 1956 Medallion and Bronze Medallion Home programs System and 10 other Texas utilities form the 1957 Texas Atomic Energy Research Foundation (TAERF) to research and develop nuclear fusion for electricity generation TAERF begins sponsoring 1961 high school science symposium at UT-Austin + First 345-kV transmission 1963 interconnection in Texas is completed, NorthPark Mall, the world’s largest linking Dallas and Houston climate-controlled shopping mall, 1965 opens, with electricity provided by the company
Previous Timeline | Next Timeline 4 1968–1993: Diversifying the Fuel Supply
Joint lignite program 1968 begins, which will add 10 TESCO’s People Power new generating units and 1969 program begins, includes + six million kilowatts redesigned electric bill with space for customer comments Texas Utilities Fuel Company formed, a pipeline/underground 1970 storage unit to provide natural gas Big Brown Unit 1 in Fairfield comes on to the company’s plants 1971 line, first of the modern lignite units + Environmental Research Program Comanche Peak 1974 created, with a laboratory and lodging nuclear plant center established at Big Brown construction begins +
1975 Texas Public Regulatory Act is System begins E-OK Program, first cash- 1976 passed, creating the Public Utility incentive program in the nation to Commission of Texas, bringing rates encourage energy efficiency and service under state regulation
Federal Public Utility Regulatory Policies Act is passed, 1978 System begins Energy Aid opening the door to competition in the electric utility 1983 program for those needing industry from cogenerators and other nonutility assistance paying energy bills producers
System receives the Edison DP&L, TESCO, TP&L and the generating company 1984 Award, the industry’s highest merge as divisions of a new principal subsidiary, Texas tribute, for its lignite program Utilities Electric Company
Texas Utilities Mining Company Texas Utilities Electric Company, 1987 subsidiary formed to mine and still the legal name, becomes known deliver Texas lignite to fuel the to the public as TU Electric company’s lignite fleet
1988 Comanche Peak Unit 1 begins System installs first combustion 1990 commercial operation turbine generation for quick- starting capability + Comanche Peak Unit 2 begins Federal Energy Policy Act is passed, making 1992 commercial operation, ending competition at the wholesale level inevitable by 1993 20 years of major power plant additions giving the Federal Energy Regulatory Commission the authority to require transmission-system access, Southwestern Electric Service Company (SESCO), or wheeling, for wholesale transactions electric distribution company in East Texas, acquired
Previous Timeline | Next Timeline 5 1994–2002: The Ramp-up to Competition
Texas Utilities Company 1994 Eastern Energy (TXU Australia), an celebrates 50 years as a electric distribution company, is acquired corporation + 1995 PCS PrimeCo (Texas), a wireless digital communications service, is acquired with 20 percent interest Acquisition of ENSERCH, an integrated natural gas company, Texas Legislature enacts wholesale creates one of the largest energy competition for electric utilities services providers in the industry
ENSERCH merger 1997 The Energy Group is acquired, provides entry into 1998 becoming TXU Europe, as the the energy trading and UK begins privatizing its electric marketing arena and natural gas utilities
Lufkin-Conroe Communications Company, a rural telephone company near Houston, is acquired Ahead of competition, TXU begins structurally separating the energy delivery and Texas Legislature passes Senate Bill 7, competitive energy businesses 1999 landmark legislation that restructures the Texas electric industry to allow retail Texas Electric Choice Pilot Program competition and consumer choice begins, allowing TXU and other 2000 electric providers a chance to test TXU becomes the new name and systems and procedures in ramp-up brand identity for the enterprise, to full competition positioning it as a multinational energy company, with “Go, world. Fort Bend Communications, a southeast Texas phone Go!” as its advertising slogan company, is acquired
PCS PrimeCo is divested Pinnacle One telecommunications joint venture is formed
TXU completes transition to competitive Texas electricity markets open electricity markets on 2001 to competition on Jan. 1 three continents, fully implementing its strategy 2002 TXU Europe fails, U.K. business sold, TXU Europe and business model becomes discontinued operation as TXU Corp. exits Europe
Financial recovery plan is launched
Previous Timeline | Next Timeline 6 2004–2007: Transformation for the Next Horizon
First external chief executive in TXU’s history is hired to turn around the company Power industry’s first loyalty 2004 program, TXU Energy Turnaround plan announced, Rewards+, is launched including reshaping to focus on three core Texas electric Hurricane Katrina hits businesses the Gulf Coast, spurring an unprecedented TXU Australia, TXU Fuel, and response from TXU TXU Gas are sold; TXU exits 2005 telecommunications business Program to create the nation’s first multipurpose smart grid is launched Plan announced to build 16 to 23 GW of new advanced power plant technologies in various Plan to build three national markets, including 9.1 2006 new coal units—Oak GW of coal generation in Texas Grove units 1 and 2 and Sandow 5—is Work begins on applications for announced 2 to 6 GW of additional nuclear capacity
2007
New direction The electric subsidiaries are further separated is set as Energy into three distinct businesses: Future Holdings Corp., with Competitive power generation completion of a private-equity Planned Texas Transition acquisition by coal generation to electricity Kohlberg Kravis units are reduced Retail electric provider competition is Roberts & from 11 to three fully complete Co., TPG and with a new in Texas Goldman Sachs commitment Capital Partners to a stronger Regulated electric delivery environmental policy
Previous Timeline | Next Timeline 7 2008–2009 Powering Texas
Largest voluntary Timeline becomes Luminant focused as this power generation subsidiary of EFH begins emissions-reduction its first full year as a separate business program ever undertaken by a power company is announced Mitsubishi Heavy Industries and Luminant establish joint venture to 2008 DFW Midstream is further the development formed, a Luminant of Comanche Peak Barnett Shale natural expansion gas gathering company
2009 Luminant retires or Application submitted to mothballs approximately the Nuclear Regulatory 2,000 MW of natural Commission for the gas-fueled power units potential 3,400-MW expansion of the Comanche Peak nuclear plant DFW Midstream becomes 75 percent owned by Summit Midstream, 25 percent by EFH
Luminant Academy formed to provide The 580-MW Sandow state-of-the-art 5 project achieves employee training substantial completion, moving to full operation
Luminant Scholar Program premieres to encourage Luminant receives an environmental awareness unprecedented 5th in fifth-grade classrooms Director’s Award from
across Texas the U.S. Department ECTOR’S IR A W D of the Interior’s Office A M R
S of Surface Mining for D
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Monticello plant sets advancing the science of F IV R E E company milestone and reclamation -T N IME WIN one of the longest such streaks in the industry: 16 years without a lost- The first of two 800-MW units at the Oak Grove plant time injury achieves substantial completion
Previous Timeline | Next Timeline 8 2010–2011 Powering Texas
Big Brown mine plans expansion into new Turlington area
Oak Grove plant accepts Power Plant of the Year Comanche Peak nuclear 2010 award from Power plant’s Squaw Creek magazine Reservoir reopens to fishing after closing following the events of Sept. 11, 2001 New Turlington mine at 2011 Big Brown produces first Luminant power plants and ton of coal support services achieve 10 million safe work hours for the first time in the company’s history
The second of two 800-MW Luminant Power Track, units at the Oak Grove new career development plant achieves substantial scholarship program, completion, concluding launches Luminant’s ambitious 2,200- MW, three-unit, $3.25 billion construction program Monticello plant sets plant and company Luminant record of 10 million transitions to safe work hours, new ERCOT achieved over more nodal energy than 18 years market
Luminant retires nearly 2,900 MW of natural gas-fueled units
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