Environmental Review ABOUT LUMINANT

2012

GENERATING PLANTS AND MINES

UNITS CAPACITY (MW) COUNTY NUCLEAR Comanche Peak 2 2,300 Somervell

COAL Big Brown 2 1,150 Freestone Big Brown Freestone Among the most beautiful and prized birds, wood Turlington Freestone ducks were on the verge of extinction. Today, Martin Lake 3 2,250 Rusk they are a success story of proper protection and Beckville Panola/Rusk management. Luminant’s restored wildlife habitat, Oak Hill Rusk which includes nesting boxes and extensive water resources, helps the ducks thrive, and Tatum Panola their presence is a great indicator of sound land Monticello 3 1,880 Titus management and a healthy habitat. Thermo Hopkins Winfield Titus/Franklin Oak Grove 2 1,600 Robertson Kosse Limestone/Robertson Luminant, a subsidiary of Sandow 2 1,137 Milam Three Oaks Lee/Bastrop Energy Future Holdings Corp. NATURAL GAS1 competitive power generation DeCordova 4 CTs 260 Hood business, including mining, Graham 2 630 Young wholesale marketing and Lake Hubbard 2 921 Dallas trading,A and development operations, Morgan Creek 6 CTs 390 Mitchell Luminant has more than 15,400 Permian Basin 1, 5 CTs 865 Ward megawatts of generation in Texas, Stryker Creek 2 685 Cherokee including 2,300 MW fueled by Trinidad 1 244 Henderson nuclear power and 8,000 MW fueled Valley 3 1,115 Fannin by coal. The company is also one NUCLEAR COAL MINES NATURAL GAS CTs COMBUSTION TURBINES of the largest purchasers of wind- generated electricity in Texas and the nation. EFH is a Dallas-based energy holding company that has a portfolio GENERATION SUMMARY of competitive and regulated energy FUEL TYPE CAPACITY (MW) PLANTS UNITS subsidiaries, primarily in Texas. Nuclear 2,300 1 2 Visit www.Luminant.com for more Coal 8,017 5 12 information. Natural Gas1 5,110 8 26

TOTAL 15,427 14 40

1 Includes four mothballed units (1,655 MW) not currently available for dispatch LUMINANT LOCATIONS MINES

Valley Power Plants Graham Winfield Monticello NUCLEAR Thermo COAL FORT WORTH Lake Hubbard DALLAS TYLER GAS DeCordova Morgan Creek Comanche Peak Oak Hill Tatum Trinidad MIDLAND Martin Lake Beckville ODESSA Big Brown Big Brown Stryker Creek Permian Basin WACO Turlington Kosse Oak Grove

BRYAN/COLLEGE STATION Sandow AUSTIN Three Oaks

HOUSTON

SAN ANTONIO

CORPUS CHRISTI

LUMINANT’S GENERATING CAPACITY AND ENERGY PRODUCTION

GENERATING CAPACITY1 2012 ENERGY PRODUCTION2 Total: 15,427 MW Total: 70,490 GWh

52% Coal 70% Coal

15% Nuclear 28% Nuclear

33% Natural Gas 2% Natural Gas

1 Includes four mothballed units (1,655 MW) not 2 Excludes purchased power currently available for dispatch CLEAN-AIR PROGRESS

S Although Texas generates far more electricity S Our Oak Grove and Sandow 5 additions are than any other state, its power-sector emission the nation’s first 100 percent lignite units rates are cleaner than the U.S. average and are to use sorbent injection systems to control continuing to improve. mercury emissions. Oak Grove is also the nation’s first 100 percent lignite plant to use S As the state’s largest power generator, Luminant selective catalytic reduction technology to

is a leader in creating an even cleaner energy decrease NOX emissions. Oak Grove’s key future for Texas. We are proud to help meet emission rates are the lowest of any Texas the electricity needs of a growing population lignite plant and at least 63 percent below and economy. the national average for coal plants.

S Since 2009, we have completed more than S For more than 20 years, our voluntary climate $1.6 billion of environmental control projects. change program has been among the nation’s They include equipping 2,200 megawatts largest individual company efforts. It has of new coal-fueled generation with advanced avoided, reduced or sequestered 473 million clean-air emission controls and implementing tons of carbon dioxide through projects that the largest voluntary program ever undertaken include operation of nuclear units, renewable by a power company to reduce key emissions energy purchases and reforestation. across established coal units. S We are among the largest wholesale purchasers S As a result, we have offset 100 percent of of wind power in the state and nation, with more key emissions from our recent coal generation than 700 MW currently under long-term contract. additions and reduced our generating fleet’s nitrogen oxide, sulfur dioxide and mercury S We continue to evaluate the development emissions by more than 20 percent from 2005 and commercialization of new power facility coal-fueled levels. At the same time, we technologies, including technologies that

have increased our coal-fueled capacity by support sequestration or reduction of CO2, 37 percent. incremental renewable sources of electricity, energy storage and related technologies that S Our voluntary environmental retrofit program seek to lower emission intensity. has equipped each established coal unit with activated sorbent injection technology to control mercury and new technology to control

NOX. Additional use of lower-sulfur coal has further reduced sulfur.

LUMINANT COAL FLEET EMISSION REDUCTIONS 2012 vs. 2005

Despite adding ➜ we have reduced key ➜ and key emission rates generation emissions

SO2 NOX Hg SO2 NOX Hg capacity 20% reduction -24 -29 -30 -35 -39 -43

% change in MW % change in tons per year % change in tons per MWh WATER CONSERVATION

Luminant’s reservoirs provide cooling water for its power plants as well as extensive wildlife habitat and, on some of the largest lakes, recreational opportunities that include boating and outstanding fishing. w An adequate, dependable, long-term supply w We are active in planning for water conservation of clean water is essential every day for the and use of water resources, and we maintain operation of our power plants. representation on the state Water Conservation Advisory Council, regional water planning groups w We practice water stewardship and drought and several of the Texas Clean Rivers Program mitigation at our generation plants. steering committees. w We capture, monitor, treat when necessary, w Our reservoirs provide thousands of acres of recycle, reuse or release water at our plants and aquatic habitat for wildlife, and the dams also mines to ensure good water quality and maintain have provisions to release water to sustain fish exemplary regulatory compliance. and wildlife habitats downstream. w While we cycle large volumes of water for cooling w Some of our largest reservoirs are open to the our plants, only a small percentage is consumed. public for fishing, boating and other recreational We typically return more than 99 percent of it to activities, including several that have dedicated the reservoirs for reuse. land for state and county parks. w As the largest private owner of Texas reservoirs, w Water demand for Texas electric generation is just we own and operate 14 and also have power 4 percent of the state’s total water consumption. generation facilities on five other reservoirs in which we have invested in water and dams. TEXAS WATER CONSUMPTION w Our stewardship actions include use of man-made reservoirs instead of wet cooling towers. We also 2% Livestock capture and use storm water, recirculate process 2% Mining water, reuse wastewater from water purification 4% Power Plants systems, reuse treated discharge from floor 9% Manufacturing drains and sump pumps, use recycled water for 27% Municipal landscape maintenance, employ piping to convey 56% Irrigation water to minimize evaporation, and enhance pumping capacity.

Sources: Water for Texas 2012 Water Report; University of Texas Bureau of Economic Geology LAND STEWARDSHIP

T We began mining lignite coal more than 40 years MINING AND RECLAMATION ago to fuel our first coal plant near Fairfield in TOTAL (in acres) Central Texas. Since then, we have opened additional surface mines across East and Central Mined 2012 1,707 Texas to provide fuel for our nearby power plants. To date 64,888 Reclaimed1 2012 3,774 T Our coal-mining operations are the largest in To date 73,069 Texas and among the largest in the nation. In 2012, we recovered 31 million tons of lignite, Released 2012 2,685 which provided almost three-quarters of the To date 35,415 fuel for our coal plants. Western coal provided 1 the remainder. Includes mined acreage and non-mined acreage disturbed to support mining

T We set the national standard in mining TREES PLANTED reclamation, restoring the land for use as forests, Total since 1975: 33.3 million trees pastures, wildlife habitat and cropland. 2.0 (in millions) T Before mining our first ton of lignite – and before the law required it – we developed a plan to 1.5 reclaim the land. Our goal is to quickly return 1.0 mined land to productivity and achieve all regulatory reclamation obligations. 0.5

T Since mining began, we have reclaimed about 0 73,000 acres, including more than 3,700 acres 03 04 05 06 07 08 09 10 11 12 in 2012, and secured reclamation bond liability release on more than 35,000 acres, including T A number of federal- or state-listed endangered, nearly 2,700 acres in 2012. threatened and protected species, including the interior least tern, bald eagle, timber rattlesnake T We have planted more than 33.3 million trees as and alligator snapping turtle, and an abundance part of our reclamation program, including 1.7 of other wildlife benefit from our water resources million in 2012. Our reforested areas are certified and restored lands. In addition to the work by the American Tree Farm System as sustainably of our environmental professionals, the unique managed woodlands. About 60 percent of the Luminant Environmental Research Program acres we reclaim are reforested. provides valuable studies by graduate students related to wildlife recovery, enhancement T We have created or enhanced over 5,100 acres and management. of wetlands, ponds and stream channels on our restored lands, dramatically increasing water T We have received nearly 90 awards for reclamation resources for the benefit of wildlife and livestock. excellence, including an unprecedented five Director’s Awards, the highest honor from the U.S. Department of the Interior’s Office of Surface Mining.

An abundance of wildlife benefits from the water resources Luminant creates as part of its land reclamation program. TO LEARN MORE, PLEASE VISIT: www. luminant.com/environment Educational outreach is an essential partEducational outreach is an essential of our environmental commitment. Furthering the about awareness of students and their teachers tremendous energy and the environment creates value for all involved. W 2.7 billion since 1993, including materials range from antifreeze, pounds in 2012. Materials e-waste to scrap metal batteries, oils and and coal combustion byproducts. The reuse energy costs, reduces of materials decreases landfill space. emissions and saves from our coal plants Combustion byproducts quantity of recycled make up the largest marketing program began materials. Since our 46 billion pounds, including in 1986, more than pounds in 2012, have more than 2.6 billion concrete and found a second life in the roofing, and carpet industries as well as in oil fields road construction.

pounds of recyclednearly43billion e have Glen Rose ISD environmental science classes, in partnership with in partnership with Glen Rose ISD environmental science classes, have monitored the water quality of the Paluxy River Luminant, watershed since 2002. R g R REDUCTION 12

. 10 SM

09 WASTE COMMUNITY PRIDE

07 BYPRODUCT SALESBYPRODUCT

(in billions of pounds)(in billions 03 0 We practice environmental sustainability in We our offices. Energy Plaza, our home office, has been awarded multiple LEED gold certifications as well as Energy Star awards. Luminant has also training center, our Tyler Academy, obtained LEED certification. Our plants and mines provide high-quality jobs, especially in the rural areas of the state. Employment at Luminant means good wages, benefits, career opportunities, and training and development for our 4,300 employees. take pride in powering our communities We leadership and through philanthropy, volunteerism. Our charitable contributions totaled almost $1.5 million in 2012, and our employees pledged nearly $650,000 in support and TXU Energy Aid of United Way The safety of the public and employees is always The safety of the public and employees our top priority. economic Our operations produce a significant payrolls, purchases, through benefit to Texas are the taxes and capital expenditures. We in virtually largest taxpayer by a wide margin all the communities where we operate we create economic plants. Additionally, development through our use of contractors and local businesses. Our programs to reduce chemical use, replace use, replace to reduce chemical Our programs nonhazardous substances with hazardous and reuse materials continue ones, and minimize benefits. to achieve major environmental COAL COMBUSTIONCOAL pounds 46.3 billion 1986: since Total 4.0 3.0 2.0 1.0

g g R g g g LUMINANT

Energy Plaza 1601 Bryan Street Dallas, Texas 75201 www.Luminant.com

Designed and printed by valued Luminant diversity suppliers and women business enterprises. The printer is also certified by the Forest Stewardship Council, a nonprofit organization devoted to encouraging the responsible management of the world’s forests.

Printed with UV ink on FSC-certified recycled paper made with renewable energy.