Fitch To Upgr Brazos River Auth, TX Pollution Control Rev Refs 2002A to 'AA+/F1+'.

Business Editors

NEW YORK--(BUSINESS WIRE)--Sept. 29, 2003

Effective Oct. 1, 2003, Fitch Ratings will upgrade the $60.65 million Brazos River Authority, Texas pollution control revenue refunding bonds (TXU Energy Company LLC Project) series 2002A to 'AA+/F1+' from 'A+/F1'. The series 2002A bonds were issued in 2002 and rated based upon the support of an irrevocable Letter of Credit (LOC) issued by JPMorgan Chase Bank. On Oct. 1, 2003, the initial LOC will be replaced by a substitute LOC provided by Citibank N.A., thereby resulting in the upgrade to 'AA+/F1+'. Also effective Oct. 1, 2003, Banc One Capital Markets, Inc. will replace Goldman, Sachs & Co. as remarketing agent.

The rating on the bonds will expire on the earliest to occur (i) July 8, 2008, the 'Stated Termination Date' or the date to which it is extended; (ii) upon defeasance; or (iii) any prior termination of the LOC. The substitute LOC covers the principal amount outstanding in the amount of $60,650,000 and interest coverage in the amount of $1,263,541.67 - 50 days interest at a maximum assumed interest rate of 15% per annum based on a 360 day year. Interest coverage is calculated on the same basis as the original LOC. Tender and redemption provisions remain unchanged.