Fitch to Lower Brazos River Authority 2002A Revs to 'A+/F1+'.

NEW YORK -- Effective Jan. 3, 2005, Fitch Ratings will downgrade the $60,650,000 Brazos River Authority Pollution Control revenue refunding bonds (TXU Energy Company LLC Project) series 2002A to 'A+/F1' from 'AA+/F1+'. The series 2002A bonds had been rated based upon the support of an irrevocable letter of credit (LOC) issued by Citibank N.A.

On Jan. 3, 2005, the Citibank N.A. LOC will be replaced by a substitute LOC provided by Wachovia Bank, National Association, thereby resulting in the downgrade to 'A+/F1'. Also on Jan. 3, 2005 a mandatory purchase of the bonds will occur in connection with the substitution. JPMorgan is the remarketing agent for the series 2002A bonds.

The rating on the bonds will expire on the earliest to occur of:

-- Dec. 15, 2009, the stated expiration date, or the date to which it is extended;

-- Upon defeasance; or

-- Any prior termination of the LOC.

The substitute LOC covers the principal amount outstanding in the amount of $44,630,000 and interest coverage in the amount of $929,792 (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 previous LOC. Tender and redemption provisions remain unchanged.