TXU Energy dates back to 19th century when around 13 electric companies consolidated to form the direct forerunner of TXU Energy. These companies provided electricity to Dallas, Fort Worth and areas of West Abilene, northern and west central Texas. It was only in 1999 that TXU Energy became a brand identity and positioned itself as a multinational energy company. TXU had the monopoly on retail electric sales in Northern Texas until 2002 when Texas energy deregulation began.
From 1995 thru 1998 TXU extended its reach into other markets and segments expanding into the UK and Australian energy markets and enters into the telecommunications market as well. For several years TXU attempts to gain would wide market share but has difficulty in doing so loosing substantial amounts of money. The damage becomes apparent in 2002 when TXU Europe fails and TXU Corp exits the European market. TXU begins a survival plan: board cuts dividend 80 percent, financing actions completed to shore up liquidity, strengthen credit and cut debt.
Faced with the lowest stock market value in its history TXU, hires from outside for the first time and brings in John Wilder as its new president and chief executive of TXU corp. to turn the company around. Under Mr. Wilder’s leadership TXU exits the telecommunications market and sells TXU Australia, TXU fuel, TXU Gas, and outsources its back-office.
In 2007 TXU announces a merger agreement with an investor group led by Kohlberg Kravis Roberts & Co., TPG and Goldman Sachs Capital Partners and is the largest Leveraged buyout in US history. TXU enters a new era as Energy Future Holdings Corp. with the completion of the private-equity acquisition, TXU common stocks are de-listed from the NYSE and other exchanges. As part of the acquisition, John Wilder departs from the company, TXU's power generation and related businesses adopt "Luminant" as the new brand and TXU Electric Delivery is rebranded as "Oncor," as an implementation of a plan to further separate the subsidiaries into three distinct businesses.
Some have speculated that Energy Future Holdings Corp. would sell off segments of the old TXU for profit just as what happened with Reliant in the beginning of deregulation, and they may have been right. In August 2008 it was announced that Energy Future Holdings Corp. had entered into an agreement to sell a 20-percent minority ownership interest in Oncor Electric Delivery Co. LLC. The buyer, an investor group led by an arm of the OMERS pension plan—called Borealis Infrastructure Management—and GIC Special Investments.
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