1. 1 Texas Electric Competitive Market Programs Kim Campbell Community Affairs September 2015

2. 2 LITE UP Texas

3. System Benefit Fund/LITE-UP Texas TXU Energy I 3 CONFIDENTIAL & PROPRIETARY: NOT FOR EXTERNAL DISTRIBUTION In 2013 the 83 rd Texas Legislative session, HB7 and SB1 brought significant changes to the System Benefit Fund Approximately 600,000 customers are eligible for the low-income discount across the competitive electric market of Texas An electric customer is qualified if the customer is currently receiving: Medicaid and SNAP. If you are not in one of the qualified programs listed above, you can still qualify in the program if your household income is at or below 125% of the federal poverty guidelines Period Discount Amount DateDiscount % May – Aug 201515% Sept 2015 – Aug 201631%

4. LITE-UP Texas Rate Factors TXU Energy I 4 CONFIDENTIAL & PROPRIETARY: NOT FOR EXTERNAL DISTRIBUTION TerritoryMay – Aug 2015Sept 2015 – August 2016 AEP Central$.0246$.0508 AEP North$.0236$.0487 Centerpoint$.0234$.0484 Nueces$.0228$.0372 Sharyland-McAllen$.0213$.0440 Oncor$.0227$.0471 TNMP$.0234$.0484 Sharyland$.0287$.0636

5. System Benefit Fund/LITE-UP Texas Discount applies only to the energy portion of the electric bill Chapter 39.903 PURA (SBF and all of its programs--PUC funding, discount, customer education including powertochoose.org) repealed as of 9/1/16 LITE-UP Texas recipients are not assessed late fees and may divide their deposit into 2 installments. For more information and self-certification forms contact LITE-UP Texas at: –866-4LITEUP (866-454-8387) –liteuptexas.org TXU Energy I 5 CONFIDENTIAL & PROPRIETARY: NOT FOR EXTERNAL DISTRIBUTION

6. 6 TXU iThermostat For LITE-UP Texas Program Recipients

7. PUC Low Income Program Overview TXU Energy I 7 CONFIDENTIAL & PROPRIETARY: NOT FOR EXTERNAL DISTRIBUTION Qualifying Customer Any customer eligible for Low Income and Electric Discount Program Also known as “LITE-UP Texas” program Product Considerations: $0 charge to the customer for hardware and installation No charge to the customer for ongoing portal or support fees Cannot require customer to sign up on a specific commodity program Cannot require customer to participate in Demand Response programs Sales/Marketing Considerations REP an only market to their existing customers TXUE systems flags all existing customers who would qualify At the point of customer acquisition we do not know if a customer qualifies

8. txu.com/liteuptexas TXU Energy I 8 CONFIDENTIAL & PROPRIETARY: NOT FOR EXTERNAL DISTRIBUTION

9. Txu.com/liteuptexas TXU Energy I 9 CONFIDENTIAL & PROPRIETARY: NOT FOR EXTERNAL DISTRIBUTION

10. Q & A For more information contact: Kim Campbell TXU Energy Senior Manger, Customer Advocacy 972-868-8334 office kim.campbell@txu.com TXU Energy I 10 CONFIDENTIAL & PROPRIETARY: NOT FOR EXTERNAL DISTRIBUTION