Texas Energy Future Holdings Limited Partnership—the holding company formed by Kohlberg Kravis Roberts & Co., Texas Pacific Group and other investors to acquire TXU Corp.—and TXU recently announced that upon close of the transaction, TXU Energy will deliver a price cut totaling 15 percent for most residential customers compared to the prices in effect when the merger was announced. The companies say this price cut will lead to a combined savings of approximately $400 million annually or $395 per typical single-family household.

"This issue was debated during the 80th session of the Texas legislature . . . We listened closely and we understand that the driving force behind the legislation was the desire of elected officials to lower prices for residential customers," said Michael MacDougall, a partner with Texas Pacific Group.

As a result of the transaction, TXU Energy says it will provide most customers in its traditional service area, over one million customers, a 15 percent price reduction as compared to prices in effect when the merger was announced. This price reduction applies to residential customers in TXU Energy's traditional service area who have not already selected one of TXU Energy's other retail plans.

"This is another way that we plan to strengthen TXU's commitment to providing customer value," MacDougall said.

In addition to the price cut, upon the merger closing, these customers will receive price protection at the 15 percent discounted level through December 2008—protection against price increases due to changing energy market conditions.

"This 15 percent price cut will provide our customers with lower prices, price protection and an appreciation bonus payment unmatched by any competitor," said Jim Burke, chief executive officer, TXU Energy.

For more details, check out the TXU press release or order TXU Energy electricity service for your home now.