REVISED 05/25/2004 TABLE OF CONTENTS FOR SCHEDULES - DISTRIBUTION. TXU Gas - Distribution. Gas Utilities Docket No. 9400

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1 REVISED 05/25/2004 TABLE OF CONTENTS FOR SCHEDULES - DISTRIBUTION X. Overall Summary - Pipeline and Distribution A. Summary Comparison B. Systemwide Cost of Service C. Cost of Service with Customer Class Allocations - Final Order D. Cost of Service with Customer Class Allocations Proposed by TXU E. Detailed Customer Class Allocations F. Cost Allocation Factors G. Rate of Return H. Invested Capital I. Depreciation Expense I-1 Depreciation Expense Workpaper J. Cash Working Capital J-1 Cash Working Capital Workpaper K. Operating Revenue L. Operations and Maintenance Expense - Labor and Non-Labor L-1 Operations and Maintenance Expense - Labor L-2 Operations and Maintenance Expense - Non-Labor L-3 Adjustments to Schedule L (D) Expenses L-4 Adjustments to TXU Business Services M. Federal Income Tax N. Taxes Other Than Income Tax N-1 Taxes Other Than Income Tax - Workpaper O. Rate Design O-1 Residential Rate Design - Rate R O-2 Commercial Rate Design - Rate C O-3 Industrial Sales / Transportation Rate Design - Rates I and T O-4 Service Charge Revenue - Rate M Final Order 05/25/2004

2 TXU Gas - Pipeline and Distribution Schedule X (P) and (D) - Overall Summary Line No. Description (a) TXU Final Order Present Rates Proposed Rates Proposed Increase Percent Increase Rates Change Percent Change (b) (c) (d) (e) (f) (g) (h) 1 Revenue - Distribution 2 Residential $ 520,245,667 $ 572,319,909 $ 52,074, % $ 547,079,050 $ 26,833, % 3 Commercial 263,687, ,221,643 2,534, % 241,642,281 (22,045,184) -8.36% 4 Industrial/Transportation 39,027,948 38,121,394 (906,555) -2.32% 28,357,835 (10,670,113) % 5 Other Revenue 9,982,624 17,882,194 7,899, % 17,882,192 7,899, % 6 Total 832,943, ,545,140 61,601, % 834,961,358 2,017, % 7 Revenue - Pipeline 8 City Gate Transportation 69,037,282 76,077,708 7,040, % 76,101,215 7,063, % 9 Pipeline Transportation 25,556,087 25,556, % 28,169,472 2,613, % 10 Other Revenue 32,983,412 32,983, % 32,983, % 11 Total 127,576, ,617,207 7,040, % 137,254,099 9,677, % Total Distribution and Pipeline $ 960,520,485 $ 1,029,162,347 $ 68,641, % $ 972,215,457 $ 11,694, % Total Revenue Requirement Gas Cost - Commodity $ 459,466,746 $ 459,466, Operation and Maintenance Expenses 248,837, ,376, Taxes Other than Income Taxes 81,449,442 77,959, Depreciation and Amortization Expense 77,611,032 69,719, Interest on Customer Deposits 1,472,587 1,472, Interest on Customer Advances 124, , Federal Income Taxes 39,934,969 32,086, Return on Rate Base 120,265,382 98,008, Total Revenue Requirement $ 1,029,162,347 $ 972,215,038 Note: The above figures include the cost of gas. 419 Schedule X (P) and (D)

3 Schedule A (D) - Customer Class Allocation Summary CUST CLASS CUST CLASS CUST CLASS LINE TOTAL TOTAL ALLOCATION TOTAL ALLOCATION TOTAL ALLOCATION NO. DESCRIPTION SYSTEM RESIDENTIAL % COMMERCIAL % TRANSPORT % (a) (b) (c) (d) (e) (f) (g) (h) 1 TXU Proposed Total Cost of Service $ 952,083,963 $ 615,629, % $ 288,277, % $ 48,207, % 2 3 TXU Proposed Total Cost of Service w/ Equalized ROR $ 952,083,964 $ 639,509, % $ 278,194, % $ 34,380, % 4 5 Cost of Service - Final Order $ 892,523,688 $ 584,781, % $ 262,754, % $ 44,987, % ExamDIST8R Schedule A (D)

4 Schedule B (D) - Systemwide Cost of Service Line No. TXU's Proposal Final Order Description Present Rates Proposed COS Proposed Increase Percent Increase COS Increase (Decrease) Percent Increase (Decrease) (a) (b) (c) (d) (e) (f) (g) (h) 1 Operating Revenue 2 Residential (non-pipeline costs) $ 520,249,482 $ 572,053,407 $ 51,803, % $ 547,079,050 $ 26,829, % 3 Residential (Pipeline costs) 39,388,414 43,576,585 4,188, % 37,702,756 (1,685,658) -4.28% 4 Total Residential 559,637, ,629,992 55,992, % 584,781,805 25,143, % 5 6 Commercial (non-pipeline costs) 263,679, ,064,161 2,385, % 241,642,281 $ (22,036,799) -8.36% 7 Commercial (Pipeline costs) 20,078,084 22,212,975 2,134, % 21,112,025 1,033, % 8 Total Commercial 283,757, ,277,136 4,519, % 262,754,306 (21,002,858) -7.40% 9 10 Industrial/Transportation (non-pipeline costs) 39,028,838 38,050,850 (977,988) -2.51% 28,357,835 $ (10,671,003) % 11 Industrial/Transportation (Pipeline costs) 9,180,436 10,156, , % 16,629,742 7,449, % 12 Total Industrial/Transportation 48,209,274 48,207,442 (1,832) 0.00% 44,987,577 (3,221,697) -6.68% Total (non-pipeline costs) 822,957, ,137,810 53,180, % 817,079,166 $ (5,878,234) -0.71% 15 Total (Pipeline costs) 68,646,934 75,946,153 7,299, % 75,444,523 6,797, % 16 Total Operating Revenue 891,604, ,083,963 60,479, % 892,523, , % Total Other Revenue 9,982,624 17,882,194 7,899, % 17,882,192 7,899, % Total Operating and Other Revenue $ 901,586,958 $ 969,966,157 $ 68,379, % $ 910,405,881 $ 8,818, % Total Revenue Requirement Operating Expenses 26 Gas Cost $ 459,466,746 $ 459,466, Pipeline Costs 75,946,153 75,444, Total Gas Cost 535,412, ,911, Operation and Maintenance Expenses 175,843, ,130, Taxes Other than Income Taxes 73,801,939 70,374, Depreciation and Amortization Expense 61,921,258 55,042, Interest on Customer Deposits 1,472,587 1,472, Interest on Customer Advances 124, , Federal Income Taxes 30,220,354 20,785, Return on Rate Base 91,168,316 63,563, Total Revenue Requirement $ 969,966,157 $ 910,405,880 Note: The above figures include the cost of gas. Schedule B (D)

5 SCHEDULE C (D) - SUMMARY - COST OF SERVICE - FINAL ORDER LINE TOTAL INDUSTRIAL/ NO. DESCRIPTION SYSTEM RESIDENTIAL COMMERCIAL TRANSPORT (a) (b) (c) (d) (e) 1 Invested Capital 2 Debt Cost 48.30% RATEBASE $ 371,775,252 $ 284,529,382 $ 62,883,845 $ 24,362,026 3 Preferred Stock 1.90% RATEBASE 14,624,699 11,192,667 2,473, ,341 4 Common Equity 49.80% RATEBASE 383,321, ,365,698 64,836,759 25,118,610 5 Total Invested Capital 769,721, ,087, ,194,296 50,438, Return Required 8 Debt Cost 6.57% RATEBASE 24,425,634 18,693,580 4,131,469 1,600,585 9 Preferred Stock Cost 5.51% RATEBASE 805, , ,300 52, Common Equity 10.00% RATEBASE 38,332,107 29,336,570 6,483,676 2,511, Total Return Required 63,563,562 48,646,866 10,751,445 4,165, Operating Revenue 14 Sales Revenue At Proposed Rates 892,523, ,781, ,754,306 44,987, Other Revenue At Proposed Rates 17,882,192 16,041,407 1,738, , Total Operating Revenue 910,405, ,823, ,492,897 45,089, Operating Expenses 19 Commodity Costs of Gas 459,466, ,494, ,539,048 9,433, Pipeline Costs 75,444,523 37,702,756 21,112,025 16,629, Distribution Operation and Maintenance 59,437,600 43,246,656 12,294,725 3,896, Customer Accounting 48,242,582 43,545,392 4,522, , Customer Service 3,855,257 3,506, ,245 3, Sales and Promotion 427, ,571 38, Administrative and General 52,167,580 40,565,316 9,347,631 2,254, Distribution Plant Depreciation 50,517,414 37,913,410 9,416,887 3,187, General Plant Depreciation 4,525,576 3,396, , , Property-Related Taxes (Ad Valorem) 15,261,253 11,453,598 2,844, , Property-Related Taxes (Franchise Tax) 2,134,685 1,602, , , Property-Related Taxes (DOT Pipeline Fee) 30,011 22,523 5,594 1, Payroll-Related Taxes 3,633,070 2,825, , , Revenue-Related Taxes (State GRT) 14,917,784 9,845,005 4,333, , Revenue-Related Taxes (Local GRT) 33,972,768 22,420,360 9,869,835 1,682, Revenue-Related Taxes (RRC Fees) 424, , ,414 21, Interest On Customer Deposits 1,472, , , Interest On Customer Advances 124,993 82,940 42, Total Operating Expenses Before FIT 826,056, ,269, ,223,519 39,563, Federal Income Tax 20,785,888 15,907,342 3,517,934 1,360, Total Operating Expenses 846,842, ,176, ,741,452 40,924, Total Return at Recommended Rates 63,563,562 48,646,866 10,751,445 4,165, Total Rate Base 769,721, ,087, ,194,296 50,438, ROR at Recommended Rates 8.258% 8.258% 8.258% 8.258% Total Revenue Requirement = Expenses + Return 910,405, ,823, ,492,897 45,089, less: Other Revenue (17,882,192) (16,041,407) (1,738,591) (102,194) Total Revenue Requirement Excluding Other Revenue 892,523, ,781, ,754,306 44,987,577 Schedule C (D)

6 SCHEDULE D (D) - SUMMARY - TXU's PROPOSED COST OF SERVICE LINE TOTAL INDUSTRIAL/ NO. DESCRIPTION SYSTEM RESIDENTIAL COMMERCIAL TRANSPORT (a) (b) (c) (d) (e) 1 Invested Capital 2 Debt Cost 51.00% RATEBASE $ 517,112,861 $ 394,683,360 $ 101,120,229 $ 21,309,272 3 Preferred Stock 1.10% RATEBASE 11,153,415 8,512,778 2,181, ,612 4 Common Equity 47.90%RATEBASE 485,680, ,692,803 94,973,705 20,014,002 5 Total Invested Capital 1,013,946, ,888, ,274,959 41,782, Return Required 8 Debt Cost 6.71%RATEBASE 34,698,273 26,483,253 6,785,167 1,429,852 9 Preferred Stock Cost 5.53%RATEBASE 616, , ,611 25, Common Equity 11.50%RATEBASE 55,853,259 27,947,351 17,111,440 10,794, Total Return Required 91,168,316 54,901,361 24,017,218 12,249, Operating Revenue 14 Sales Revenue At Proposed Rates 952,083, ,629, ,277,136 48,207, Other Revenue At Proposed Rates 17,882,194 16,040,027 1,739,278 72, Total Operating Revenue 969,966, ,670, ,016,414 48,279, Operating Expenses 19 Commodity Costs of Gas 459,466, ,494, ,539,048 9,433, Pipeline Costs 75,946,153 43,576,585 22,212,975 10,156, Distribution Operation and Maintenance 59,437,600 44,419,675 12,434,675 2,583, Customer Accounting 48,808,521 44,005,293 4,605, , Customer Service 3,855,257 3,506, ,245 3, Sales and Promotion 427, ,571 38, Administrative and General 63,315,232 50,098,435 11,451,816 1,764, Distribution Plant Depreciation 57,274,192 44,070,143 10,820,699 2,383, General Plant Depreciation 4,647,066 3,575, , , Property-Related Taxes (Ad Valorem) 15,261,253 11,742,909 2,883, , Property-Related Taxes (Franchise Tax) 2,134,685 1,642, ,302 88, Property-Related Taxes (DOT Pipeline Fee) 30,011 23,092 5,670 1, Payroll-Related Taxes 3,834,345 3,029, , , Revenue-Related Taxes (State GRT) 15,893,730 10,276,886 4,812, , Revenue-Related Taxes (Local GRT) 36,195,323 23,403,896 10,959,944 1,831, Revenue-Related Taxes (RRC Fees) 452, , ,045 22, Interest On Customer Deposits 1,472, , , Interest On Customer Advances 124,993 82,940 42, Total Operating Expenses Before FIT 848,577, ,606, ,758,316 30,212, Federal Income Tax 30,220,354 15,161,694 9,240,880 5,817, Total Operating Expenses 878,797, ,768, ,999,196 36,029, Total Return at Proposed Rates 91,168,316 54,901,361 24,017,218 12,249, Total Rate Base 1,013,946, ,888, ,274,959 41,782, ROR at Proposed Rates 8.99% 7.09% 12.11% 29.32% Total Revenue Requirement = Expenses + Return 969,966, ,670, ,016,414 48,279, less: Other Revenue (17,882,194) (16,040,027) (1,739,278) (72,283) Total Revenue Requirement Excluding Other Revenue 952,083, ,629, ,277,136 48,207,442 Schedule D (D)

7 Schedule E (D) - Cost Allocation Final Order Invested Capital - Gross Plant Page 1 of 8 Line INDUSTRIAL/ No. Acct # Account Description Total System AF Label RESIDENTIAL COMMERCIAL TRANSPORT (a) (b) (c) (d) (e) (f) (g) (h) DISTRIBUTION PLANT Land 252,301 PLT ,495 51,915 24, Land Rights 2,410,653 PLT376 1,676, , , Structures & Improvements 1,066,957 PLT , , , Mains 5 Customer Related 372,059,517 CUSTDIST 339,956,132 31,772, ,843 6 Demand Related - Steel and Other 154,905,833 DISTR1 77,412,867 43,348,088 34,144,878 7 Demand Related - Poly 333,632,809 DISTR2 181,243, ,961,978 50,427,117 8 Total Mains 860,598, ,612, ,082,608 84,902, M&R Station Equipment - General 14,159,772 PLT376 9,849,219 2,913,612 1,396, M&R Station Equipment - City Gate 4,827,960 PLT376 3,358, , , Services 426,621,937 CUSTNMET 388,044,246 38,204, , Meters 126,410,013 CUSTMET 78,721,633 43,781,170 3,907, House Regulators 25,039,738 CUSTMET 15,593,456 8,672, , Subtotal 1,461,387,489 1,096,773, ,415,389 92,198, GENERAL PLANT Computer Software 24,991,645 PLANT 18,756,274 4,658,661 1,576, Land 1,824,731 PLANT 1,369, , , Structures & Improvements 16,291,802 PLANT 12,227,027 3,036,934 1,027, Office Furniture & Equipment 6,721,334 PLANT 5,044,373 1,252, , Transportation Equipment 13,180,344 PLANT 9,891,872 2,456, , Tools, Shop, and Garage Equipment Power Oper. Tool & Work Equip. 7,060,208 PLANT 5,298,699 1,316, , Radio Communication Equipment 3,124,659 PLANT 2,345, , , Miscellaneous Equipment 14,734,742 PLANT 11,058,450 2,746, , Non-Mainframe Computer Equip. 1,887,693 PLANT 1,416, , , Subtotal 89,817,158 67,407,938 16,742,703 5,666, Meter Shop Inventory 4,278,649 PLANT 3,211, , , Total General Plant and Meter Shop Inventory 94,095,807 70,619,072 17,540,280 5,936, TOTAL GROSS DISTRIBUTION PLANT 1,555,483,296 1,167,393, ,955,669 98,134,626 Schedule E (D)

8 Schedule E (D) - Cost Allocation Final Order Invested Capital - Accumulated Depreciation Page 2 of 8 Line INDUSTRIAL/ No. Acct # Account Description Total System AF Label RESIDENTIAL COMMERCIAL TRANSPORT (a) (b) (c) (d) (e) (f) (g) (h) DISTRIBUTION PLANT Land - PLT Land Rights 816,272 PLT , ,962 80, Structures & Improvements 863,897 PLT , ,761 85, Mains 5 Customer Related 124,676,387 CUSTDIST 113,918,608 10,646, ,865 6 Demand Related - Steel and Other 76,775,921 DISTR1 38,368,111 21,484,597 16,923,213 7 Demand Related - Poly 86,932,384 DISTR2 47,225,416 26,567,525 13,139,444 8 Total Mains 288,384, ,512,135 58,699,036 30,173, M&R Station Equipment - General 7,907,133 PLT376 5,500,024 1,627, , M&R Station Equipment - City Gate 2,378,756 PLT376 1,654, , , Services 149,615,263 CUSTNMET 136,086,162 13,398, , Meters 54,584,799 CUSTMET 33,992,596 18,905,040 1,687, House Regulators 9,244,834 CUSTMET 5,757,206 3,201, , Subtotal 513,795, ,671,419 96,666,484 33,457, GENERAL PLANT Computer Software 10,012,157 PLANT 7,514,142 1,866, , Land - PLANT Structures & Improvements 6,477,175 PLANT 4,861,131 1,207, , Office Furniture & Equipment 6,162,031 PLANT 4,624,615 1,148, , Transportation Equipment 11,591,932 PLANT 8,699,766 2,160, , Tools, Shop, and Garage Equipment Power Oper. Tool & Work Equip. 7,032,129 PLANT 5,277,625 1,310, , Radio Communication Equipment 3,177,041 PLANT 2,384, , , Miscellaneous Equipment 11,412,741 PLANT 8,565,283 2,127, , Non-Mainframe Computer Equip. 1,467,244 PLANT 1,101, ,507 92, Subtotal 57,332,450 43,028,106 10,687,269 3,617, Meter Shop Inventory - PLANT Total General Plant and Meter Shop Inventory 57,332,450 43,028,106 10,687,269 3,617, TOTAL ACCUMULATED DEPRECIATION 571,128, ,699, ,353,753 37,074,818 Schedule E (D)

9 Schedule E (D) - Cost Allocation Final Order Invested Capital - Net Plant Page 3 of 8 Line INDUSTRIAL/ No. Acct # Account Description Total System AF Label RESIDENTIAL COMMERCIAL TRANSPORT (a) (b) (c) (d) (e) (f) (g) (h) DISTRIBUTION PLANT Land 252,301 PLT ,495 51,915 24, Land Rights 1,594,381 PLT376 1,109, , , Structures & Improvements 203,060 PLT ,244 41,783 20, Mains 5 Customer Related 247,383,130 CUSTDIST 226,037,524 21,125, ,978 6 Demand Related - Steel and Other 78,129,912 DISTR1 39,044,756 21,863,491 17,221,665 7 Demand Related - Poly 246,700,425 DISTR2 134,018,298 75,394,454 37,287,673 8 Total Mains 572,213, ,100, ,383,573 54,729, M&R Station Equipment - General 6,252,639 PLT376 4,349,195 1,286, , M&R Station Equipment - City Gate 2,449,204 PLT376 1,703, , , Services 277,006,675 CUSTNMET 251,958,085 24,806, , Meters 71,825,214 CUSTMET 44,729,037 24,876,130 2,220, House Regulators 15,794,903 CUSTMET 9,836,251 5,470, , Subtotal 947,591, ,102, ,748,905 58,740, GENERAL PLANT Computer Software 14,979,488 PLANT 11,242,133 2,792, , Land 1,824,731 PLANT 1,369, , , Structures & Improvements 9,814,627 PLANT 7,365,895 1,829, , Office Furniture & Equipment 559,303 PLANT 419, ,259 35, Transportation Equipment 1,588,412 PLANT 1,192, , , Tools, Shop, and Garage Equipment Power Oper. Tool & Work Equip. 28,080 PLANT 21,074 5,234 1, Radio Communication Equipment (52,382) PLANT (39,313) (9,764) (3,305) Miscellaneous Equipment 3,322,001 PLANT 2,493, , , Non-Mainframe Computer Equip. 420,448 PLANT 315,547 78,375 26, Subtotal 32,484,708 24,379,832 6,055,433 2,049, Meter Shop Inventory 4,278,649 PLANT 3,211, , , Total General Plant and Meter Shop Inventory 36,763,357 27,590,965 6,853,011 2,319, TOTAL NET DISTRIBUTION PLANT 984,355, ,693, ,601,916 61,059,808 Schedule E (D)

10 Schedule E (D) - Cost Allocation Final Order Invested Capital Summary Page 4 of 8 Line INDUSTRIAL/ No. Acct # Account Description Total System AF Label RESIDENTIAL COMMERCIAL TRANSPORT (a) (b) (c) (d) (e) (f) (g) (h) NET PLANT 1 Gross Plant 1,555,483,296 1,167,393, ,955,669 98,134,626 2 Accumulated Depreciation 571,128, ,699, ,353,753 37,074,818 3 Net Plant 984,355, ,693, ,601,916 61,059, INVESTMENT ADDITIONS 6 Working Capital Requirements 7 Cash Working Capital (61,241,394) EXPTOM (39,024,803) (19,378,738) (2,837,853) 8 Materials and Supplies 3,859,290 PLANT 2,896, , ,481 9 Prepayments 11,911,827 PLANT 8,939,848 2,220, , Working Gas In Storage 0 EGASCOST Total Working Capital (45,470,277) (27,188,551) (16,438,864) (1,842,861) 12 Unamortized Gain on Sale of Assets (952,409) PLANT (714,785) (177,537) (60,087) 13 Poly 1 Regulatory Asset - PLANT Investment Additions (46,422,686) (27,903,336) (16,616,402) (1,902,948) INVESTMENT DEDUCTIONS 17 Customer Deposits 24,590,346 CUSTDEP 16,317,015 8,273, Customer Advances For Construction 5,031,889 CUSTDEP 3,338,928 1,692, Injuries and Damages Reserve 1,284,500 LABOR 998, ,120 55, Income Tax Adjustments 137,304,761 PLANT 103,047,469 25,594,806 8,662, Investment Deductions 168,211, ,702,394 35,791,219 8,717, TOTAL Invested Capital 769,721, ,087, ,194,296 50,438,976 Schedule E (D)

11 Schedule E (D) - Cost Allocation Final Order Operating Expenses Page 5 of 8 Line INDUSTRIAL/ No. Acct # Account Description Total System AF Label RESIDENTIAL COMMERCIAL TRANSPORT (a) (b) (c) (d) (e) (f) (g) (h) GAS COST EXPENSE 1 Commodity Cost of Gas 459,466,746 EGASCOST 276,494, ,539,048 9,433,401 2 Pipeline Transportation Cost 75,444,523 DISTR1 37,702,756 21,112,025 16,629, Total Gas Cost Expense 534,911, ,197, ,651,072 26,063, Distribution Operation Expense Operation Supervision and Engineering 526,693 LABDISTO 375, ,896 28, Mains and Services Expenses 16,649,578 PLT ,761,937 2,784,639 1,103, Measuring and Regulating Station Expenses - General 661,980 PLT , ,214 65, Measuring and Regulating Station Exp. - City Gate Chk. Sta. 255 PLT Meter and House Regulator Expenses 7,977,094 CUSTMET 4,967,722 2,762, , Customer Installations Expenses 1,426,858 PLANT 1,070, ,979 90, Other Expenses 10,119,040 PLANT 7,594,358 1,886, , Rents 37,920 PLANT 28,459 7,069 2, Total Distribution Operation Expense 37,399,419 27,259,291 7,965,934 2,174, Distribution Maintenance Expense Maintenance Supervision and Engineering 46,267 LABDISTM 34,087 8,927 3, Maintenance of Structures and Improvements 65 PLT Maintenance of Mains 15,231,792 PLT376 10,594,892 3,134,199 1,502, Maint. of Measuring and Regulating Station Equip. - General 1,299,799 PLT , , , Maint. of Measuring and Regulating Station Equip. - Industrial 4,959 PLT376 3,449 1, Maintenance of Services 3,389,048 CUSTNMET 3,082, ,495 2, Maintenance of Meters and House Regulators 1,428,802 CUSTMET 889, ,855 44, Maintenance of Other Equipment 637,448 PLANT 478, ,826 40, Total Distribution Maintenance Expense 22,038,181 15,987,365 4,328,791 1,722, Total Distribution Expense 59,437,600 43,246,656 12,294,725 3,896,218 Schedule E (D)

12 Schedule E (D) - Cost Allocation Final Order Operating Expenses Page 6 of 8 Line INDUSTRIAL/ No. Acct # Account Description Total System AF Label RESIDENTIAL COMMERCIAL TRANSPORT (a) (b) (c) (d) (e) (f) (g) (h) Customer Accounts Expense Supervision (300) LABCA (273) (27) (0) Meter Reading Expense 7,539,240 CUSTNMET 6,857, ,152 6, Customer Records and Collection Expenses 37,249,826 CUSTNMET 33,881,476 3,335,787 32, Uncollectible Accounts 3,453,816 CUNCOL 2,806, , , Miscellaneous Customer Accounts Expenses - CUSTNMET Total Customer Accounts Expense 48,242,582 43,545,392 4,522, ,008 7 Customer Service Expense Customer Assistance Expenses 3,820,666 CUSTNMET 3,475, ,147 3, Informational Advertising Expenses 34,591 CUSTNMET 31,463 3, Total Customer Service Expense 3,855,257 3,506, ,245 3, Sales Promotion Expense Supervision 1,226 CUSTNMET 1, Demonstrating and Selling Expenses 134,550 CUSTNMET 122,384 12, Promotional Advertising Expenses 232,286 CUSTNMET 211,281 20, Miscellaneous Sales Promotion Expenses 59,139 CUSTNMET 53,792 5, Total Sales Promotion Expense 427, ,571 38, Administrative and General Expense Administrative and General Salaries (193,447) LABOR (150,448) (34,656) (8,343) Office Supplies and Expenses 598,371 LABOR 465, ,199 25, Outside Services Employed 22,802,574 LABOR 17,734,020 4,085, , Property Insurance 237,360 PLANT 178,139 44,246 14, Injuries and Damages 6,302,621 LABOR 4,901,675 1,129, , Employee Pensions and Benefits 19,823,796 LABOR 15,417,365 3,551, , Regulatory Commission Expenses Institutional or Goodwill Advertising Expense 101,383 LABOR 78,848 18,163 4, Miscellaneous General Expense 2,029,216 LABOR 1,578, ,537 87, Regulatory Asset Amortization Exp. - LABXAGRC Rents 465,706 LABOR 362,189 83,432 20, Maintenance of General Plant - 29 Total Administrative and General Expense 52,167,580 40,565,316 9,347,631 2,254, Total O&M Expense Excluding A&G 646,873, ,884, ,851,481 30,138, Total O&M Expense Excluding Gas Cost 164,130, ,252,578 26,548,040 6,329, Total O&M Expenses LABOR & NON-LABOR 699,041, ,449, ,199,112 32,392,745 Schedule E (D)

13 Schedule E (D) - Cost Allocation Final Order Dep Exp, Other Taxes, Other Interest Exp, Operating Income Page 7 of 8 Line INDUSTRIAL/ No. Acct # Account Description Total System AF Label RESIDENTIAL COMMERCIAL TRANSPORT (a) (b) (c) (d) (e) (f) (g) (h) Depreciation Expense 1 Distribution Plant 50,517,414 PLANT 37,913,410 9,416,887 3,187,117 2 General Plant 4,525,576 PLANT 3,396, , ,516 3 Total Depreciation Expense 55,042,990 41,309,863 10,260,494 3,472,633 4 Other Taxes 5 Property-Related Taxes (Ad Valorem) 15,261,253 PLANT 11,453,598 2,844, ,824 6 Property-Related Taxes (Franchise Tax) 2,134,685 PLANT 1,602, , ,676 7 Property-Related Taxes (DOT Pipeline Fee) 30,011 PLANT 22,523 5,594 1,893 8 Payroll-Related Taxes 3,633,070 LABXAG 2,825, , ,688 9 Revenue-Related Taxes (State GRT) 14,917,784 REVENUEC 9,845,005 4,333, , Revenue-Related Taxes (Local GRT) 33,972,768 REVENUEC 22,420,360 9,869,835 1,682, Revenue-Related Taxes (RRC Fees) 424,800 REVENUEC 280, ,414 21, Total Other Taxes 70,374,371 48,449,431 18,226,412 3,698, Other Interest Expense 14 Interest On Customer Deposits 1,472,587 CUSTDEP 977, , Interest On Customer Advances 124,993 CUSTDEP 82,940 42, Total Other Interest Expense 1,597,580 1,060, , TOTAL OPER EXP EXCLUDING REV-REL TAX 776,741, ,723, ,896,326 37,121, TOTAL OPERATING EXPENSES BEFORE FIT 826,056, ,269, ,223,519 39,563, Federal Income Tax Expense (see page 8) 20,785,888 15,907,342 3,517,934 1,360, TOTAL OPERATING EXPENSES 846,842, ,176, ,741,452 40,924, SALES REVENUE 24 Sales of Gas Revenue 892,523, ,781, ,754,306 44,987, OTHER REVENUE Forfeited Discounts 11,220 REVRC 7,742 3, Miscellaneous Service Revenues 8,570,565 CUSTNMET 7,795, ,509 7, Rent From Gas Property 1,391,477 PLANT 1,044, ,383 87, Other Gas Revenues 9,362 CUSTDIST 8, Proposed Increase To Miscellaneous Service Revenues 7,899,568 CUSTNMET 7,185, ,420 6, TOTAL OTHER REVENUE 17,882,192 16,041,407 1,738, , TOTAL OPERATING REVENUE 910,405, ,823, ,492,897 45,089,771 Schedule E (D)

14 Schedule E (D) - Cost Allocation Final Order Federal Income Tax Page 8 of 8 Line INDUSTRIAL/ No. Acct # Account Description Total System AF Label RESIDENTIAL COMMERCIAL TRANSPORT (a) (b) (c) (d) (e) (f) (g) (h) 1 Return on Invested Capital 63,563,562 48,646,866 10,751,445 4,165, Deduct: 4 Interest on operating items 25,231,455 RATEBASE 19,310,296 4,267,769 1,653,390 5 Amortization of investment tax credits - 6 Amortization of Excess Deferred Income Taxes (7,278) PLANT (5,462) (1,357) (459) 7 Social Club Dues - 8 Total Deductions 25,224,177 19,304,834 4,266,412 1,652,930 9 Add: 10 Business meals not deductible 103,182 LABOR 80,247 18,485 4, Prior year adjustments 51,198 PLANT 38,424 9,544 3, Total Additions 154, ,671 28,029 7, Taxable component of return 38,493,765 29,460,703 6,513,062 2,520, Tax factor (1 /.65) * (.35) Federal income taxes before adjustments 20,727,412 15,863,455 3,507,033 1,356, Tax credits: 19 Deduct: 20 Amortization of investment tax credits - 21 Amortization of Excess Deferred Income Taxes (7,278) PLANT (5,462) (1,357) (459) 22 Add: 23 Prior year adjustments 51,198 PLANT 38,424 9,544 3, Federal income taxes 20,785,888 15,907,342 3,517,934 1,360,612 Schedule E (D)

15 Schedule F (D) - Cost Allocation Factors - Final Order Page 1 of 2 DEVELOPMENT OF ALLOCATION FACTORS TOTAL RES COMM TRANSPORT RES COMM TRANSPORT 1 CAPACITY DISTRIBUTION ALLOCATORS 2 DISTRIBUTION ALLOCATOR - 4MDU (1) DISTR3 1,790,130 1,027, , , DISTRIBUTION ALLOCATOR - 4 MDU EXCLUDING HP (2) DISTR3WOHP 1,712,797 1,027, , , DISTRIBUTION ALLOCATOR - 50% CAPACITY 50% COMMODITY (3) DISTR DISTRIBUTION ALLOCATOR - 50% CAPACITY 50% COMMODITY W/O HP DISTR COMMODITY RELATED 8 ANNUAL VOLUME DELIVERED ALL (MCF) ESALES 200,711,159 85,442,854 53,627,404 61,640, GAS PURCHASED FOR SALES (4) EGASCOST 459,466, ,494, ,539,048 9,433, ANNUAL VOLUME DELIVERED (MCF) FROM DIST PLT ESLSDIST 200,711,159 85,442,854 53,627,404 61,640, ANNUAL VOLUME DELIVERED (MCF) R&C Only ESLSDISTRC 139,070,259 85,442,854 53,627, COMMODITY OTHER1 ESALESWODA ANNUAL VOLUME DELIVERED ALL (MCF) W/O HP ESALESWODAHP 175,520,337 85,442,854 53,627,404 36,450, CUSTOMER RELATED 16 SERVICES (5) CUSTSERV 1,524,850 1,386, ,553 1, METER INVESTMENT (6) CUSTMET 150,502,009 93,724,885 52,125,254 4,651, HOUSE REGULATORS (6) CUSTREG 150,502,009 93,724,885 52,125,254 4,651, NUMBER OF METERS (7) CUSTNMET 1,524,850 1,386, ,553 1, CUSTOMER DEPOSITS (8) CUSTDEP 843,395, ,637, ,757, CUSTOMER OTHER 1 CUSTMIMR CUSTOMER OTHER 2 CUSTNMETWOHP 1,523,517 1,386, , CUSTOMER OTHER 3 CUSTIND SERVICE CHARGE REVENUE (9) CUSTSC 1,524,850 1,386, ,553 1, UNCOLLECTIBLE ACCOUNTS (10) CUNCOL 40,127,574 32,609,074 5,940,099 1,578, CUSTOMER INSTALLATION EXP (11) CUSTINST 1,524,850 1,386, ,553 1, CUSTOMER METER READING EXP (12) CUSTMETR 1,524,850 1,386, ,553 1, CUSTOMER RECORDS (13) CUSTREC 1,524,850 1,386, ,553 1, CUSTOMER OTHER 4 CUSTAVG YEAR END NUMBER OF CUSTOMERS (14) CUSTDIST 1,470,952 1,344, ,614 1, Schedule F (D)

16 Schedule F (D) - Cost Allocation Factors Page 2 of 2 1 ACCT 376-MAINS PLT ,598, ,612, ,082,608 84,902, TOTAL PLANT IN SERVICE PLANT 1,555,483,296 1,167,393, ,955,669 98,134, ACCT 376 & 380 MAINS AND SERVICES PLT ,287,220, ,656, ,287,353 85,275, TOTAL OPERATION & MAINT EXPENSE EXPTOM 699,041, ,449, ,199,112 32,392, SUM OF ALLOCATED LABOR EXP LABOR 46,212,740 35,940,578 8,279,089 1,993, DIST OPERATION LABOR LABDISTO 19,107,740 13,616,092 4,458,506 1,033, DIST MAINTENANCE LABOR LABDISTM 13,510,966 9,954,186 2,606, , TOTAL CUSTOMER ACCOUNTING LABOR LABCA 10,839,668 9,859, ,711 9, TOT O&M LABOR EXCL A&G LABOR-R&C ONLY LABXAGRC 44,259,722 35,973,134 8,286, TOT O&M LABOR EXCL A&G LABOR LABXAG 46,254,601 35,973,134 8,286,588 1,994, TOTAL DISTRIBUTION REVENUES (RECOMMENDED) REVENUEC 910,405, ,823, ,492,897 45,089, TOTAL RATE BASE RATEBASE 769,721, ,087, ,194,296 50,438, TOTAL PRESENT SALES REVENUES - RESIDENTIAL AND COMMERCIAL REVRC 847,536, ,781, ,754, DIST OPERATION LABOR EXCL SUPERV & ENGIN LABDISTOXS 18,722,414 13,341,510 4,368,596 1,012, DIST MAINTENANCE LABOR EXCL SUPERV & ENGIN LABDISTMXS 13,477,574 9,929,584 2,600, , TOTAL SALES LABOR LABSALES 86,217 78,421 7, (1) This allocation factor is developed using the maximum daily use for the months of December through March (2) This allocation factor is developed using the maximum daily use for the months of December through March with the removal of the daily usage ot the customers served of the high pressure mains. (3) This allocation factor is developed using 50% of the maximum daily use allocation factor and 50% of the annual volume delivered to distribution customers. (4) The cost of gas purchased for sales was directly assigned to the customer classes. (5) Services consist of the piping connecting meters to the mains by class was based on the number of meters. (6) Meter investment and House Regulators by class were based on pricing of the individual meters. (7) The number of each size of meter serving the various classes was determined from the customer account records. (8) Customer deposits and advances investment amount is related to the residential and commercial customer classes and is allocated on sales revenue. (9) Other service charge revenues are allocated between residential and commercial classes in proportion to the number of customers served. (10) Uncollectible accounts are allocated in proportion to actual inactive account charge-offs as indicated by the aging summary report. (11) Customer installation expense by class was based on the number of meters (12) Customer meter reading expense by class was based on the number of meters (13) Customer records by class was based on the number of meters (14) Year end number of customers served by the distribution system by class. Schedule F (D)

17 Schedule G - Rate of Return TXU TXU Final Line Present Proposed Proposed Order No. Description Rates ROR (1) ROR (2) ROR (a) (b) (c) (d) (e) 1 Net Operating Income/Return 2 3 Cost of Debt $ 34,698,273 $ 34,698, % $ 32,175, % $ 24,425, % 4 Cost of Preferred Stock 616, , % 1,061, % 805, % 5 Available or Required Return on 6 Book Value of Common Equity 24,107,966 55,853,259 55,544,005 38,332, Total Return on Invested Capital $ 59,423,023 $ 91,168,316 $ 88,781,181 $ 63,563, Rate Base - Capitalization Structure Debt $ 517,112,862 $ 517,112, % $ 489,736, % $ 371,775, % 13 Preferred Stock 11,153,415 11,153, % 19,264, % 14,624, % 14 Common Equity at Book Value 485,680, ,680, % 504,945, % 383,321, % Total Invested Capital $ 1,013,946,788 $ 1,013,946,788 $ 1,013,946,788 $ 769,721, Percent Return - After Tax Cost of Debt 6.71% 6.71% 6.57% 6.57% 21 Cost of Preferred Stock 5.53% 5.53% 5.51% 5.51% 22 Return on Book Value of Common Equity 4.96% 11.50% 11.00% 10.00% Percent Return - After Tax 5.86% 8.99% 8.76% 8.258% Percent Return - Pretax Return $ 59,423,023 $ 91,168,316 $ 88,781,181 $ 63,563, Federal Income Taxes 13,126,735 30,220,354 30,220,354 20,785, Total Return plus FIT $ 72,549,758 $ 121,388,670 $ 119,001,535 $ 84,349, Total Rate Base $ 1,013,946,788 $ 1,013,946,788 $ 1,013,946,788 $ 769,721, Percent Return - Pretax 7.16% 11.97% 11.74% 10.96% Notes: (1) TXU's proposed rate of return as presented in errata spreadsheets (TXU Gas Ex. 61) (2) TXU's proposed rate of return as updated in rebuttal testimony (TXU Gas Ex. 36). Schedule G (D)

18 Schedule H (D) - Invested Capital Page 1 of 4 Invested Capital - Gross Plant Line TXU Final Order No. Acct # Account Description Book Adj. Proposed Adj. Total DISTRIBUTION PLANT Land 252, , , Land Rights 2,410,653-2,410,653-2,410, Structures & Improvements 1,066,957-1,066,957-1,066, Mains 948,435,267 4,626, ,061,639 (92,463,481) 860,598, M&R Station Equipment - General 14,159,772 5,537 14,165,309 (5,537) 14,159, M&R Station Equipment - City Gate 4,827,960-4,827,960-4,827, Services 426,621,937 1,279, ,901,457 (1,279,520) 426,621, Meters 126,410,013 1, ,411,313 (1,300) 126,410, House Regulators 25,039,738-25,039,738-25,039, Subtotal $ 1,549,224,597 $ 5,912,730 $ 1,555,137,327 $ (93,749,838) $ 1,461,387, GENERAL PLANT Computer Software 25,331,191 1,618 25,332,809 (341,164) 24,991, Land 1,824,731 (192,580) 1,632, ,580 1,824, Structures & Improvements 16,291, ,858 16,675,660 (383,858) 16,291, Office Furniture & Equipment 6,789,628 5,500 6,795,129 (73,795) 6,721, Transportation Equipment 13,180,344-13,180,344-13,180, Tools, Shop, and Garage Equipment Power Oper. Tool & Work Equip. 7,060, ,060,485 (277) 7,060, Radio Communication Equipment 3,332,618 80,084 3,412,702 (288,043) 3,124, Miscellaneous Equipment 14,734,742 72,790 14,807,532 (72,790) 14,734, Non-Mainframe Computer Equip. 2,000,752-2,000,752 (113,059) 1,887, Subtotal $ 90,546,016 $ 351,548 $ 90,897,564 $ (1,080,406) $ 89,817, Meter Shop Inventory 4,278,649-4,278,649-4,278, Total General Plant and Meter Shop Inventory $ 94,824,665 $ 351,548 $ 95,176,213 $ (1,080,406) $ 94,095, TOTAL GROSS DISTRIBUTION PLANT $ 1,644,049,263 $ 6,264,277 $ 1,650,313,540 $ (94,830,244) $ 1,555,483,296 Schedule H (D)

19 Schedule H (D) - Invested Capital Page 2 of 4 Invested Capital - Accumulated Depreciation TXU Final Order Acct # Account Description Book Adj. Proposed Adj. Total DISTRIBUTION PLANT Land Land Rights 816, , , Structures & Improvements 863, , , Mains 288,384, ,384, ,384, M&R Station Equipment - General 7,907,133-7,907,133-7,907, M&R Station Equipment - City Gate 2,378,756-2,378,756-2,378, Services 149,615, ,615, ,615, Meters 54,584,799-54,584,799-54,584, House Regulators 9,244,834-9,244,834-9,244, Subtotal $ 513,795,646 $ - $ 513,795,646 $ - $ 513,795, GENERAL PLANT Computer Software 10,012,157-10,012,157-10,012, Land Structures & Improvements 6,477,175-6,477,175-6,477, Office Furniture & Equipment 6,162,031-6,162,031-6,162, Transportation Equipment 10,733, ,202 11,591,932-11,591, Tools, Shop, and Garage Equipment Power Oper. Tool & Work Equip. 7,032,129-7,032,129-7,032, Radio Communication Equipment 3,177,041-3,177,041-3,177, Miscellaneous Equipment 11,412,741-11,412,741-11,412, Non-Mainframe Computer Equip. 1,467,244-1,467,244-1,467, Subtotal $ 56,474,248 $ 858,202 $ 57,332,450 $ - $ 57,332, Meter Shop Inventory Total General Plant and Meter Shop Inventory $ 56,474,248 $ 858,202 $ 57,332,450 $ - $ 57,332, TOTAL ACCUMULATED DEP. DIST PLANT $ 570,269,895 $ 858,202 $ 571,128,096 $ - $ 571,128,096 Schedule H (D)

20 Schedule H (D) - Invested Capital Page 3 of 4 Invested Capital - Net Plant TXU Final Order Acct # Account Description Book Adj. Proposed Adj. Total DISTRIBUTION PLANT Land 252, , , Land Rights 1,594,381-1,594,381-1,594, Structures & Improvements 203, , , Mains 660,050,575 4,626, ,676,947 (92,463,481) 572,213, M&R Station Equipment - General 6,252,640 5,537 6,258,176 (5,537) 6,252, M&R Station Equipment - City Gate 2,449,204-2,449,204-2,449, Services 277,006,674 1,279, ,286,195 (1,279,520) 277,006, Meters 71,825,214 1,300 71,826,514 (1,300) 71,825, House Regulators 15,794,903-15,794,903-15,794, Subtotal $ 1,035,428,951 $ 5,912,730 $ 1,041,341,681 $ (93,749,838) $ 947,591, GENERAL PLANT Computer Software 15,319,034 1,618 15,320,652 (341,164) 14,979, Land 1,824,731 (192,580) 1,632, ,580 1,824, Structures & Improvements 9,814, ,858 10,198,485 (383,858) 9,814, Office Furniture & Equipment 627,597 5, ,098 (73,795) 559, Transportation Equipment 2,446,614 (858,202) 1,588,412-1,588, Tools, Shop, and Garage Equipment Power Oper. Tool & Work Equip. 28, ,357 (277) 28, Radio Communication Equipment 155,577 80, ,661 (288,043) (52,382) Miscellaneous Equipment 3,322,001 72,790 3,394,791 (72,790) 3,322, Non-Mainframe Computer Equip. 533, ,507 (113,059) 420, Subtotal $ 34,071,768 $ (506,654) $ 33,565,114 $ (1,080,406) $ 32,484, Meter Shop Inventory 4,278,649-4,278,649-4,278, Total General Plant and Meter Shop Inventory $ 38,350,417 $ (506,654) $ 37,843,763 $ (1,080,406) $ 36,763, TOTAL NET DISTRIBUTION PLANT $ 1,073,779,368 $ 5,406,076 $ 1,079,185,444 $ (94,830,244) $ 984,355,200 Schedule H (D)

21 Schedule H (D) - Invested Capital Page 4 of 4 Invested Capital Summary TXU Final Order Acct # Account Description Book Adj. Proposed Adj. Total NET PLANT 1 Gross Plant $ 1,644,049,263 $ 6,264,277 $ 1,650,313,540 $ (94,830,244) $ 1,555,483,296 2 Accumulated Depreciation 570,269, , ,128, ,128,096 3 Net Plant 1,073,779,368 5,406,076 1,079,185,444 (94,830,244) 984,355, INVESTMENT ADDITIONS 6 Working Capital Requirements 7 Cash Working Capital (53,963,727) - (53,963,727) (7,277,667) (61,241,394) 8 Materials and Supplies 3,859,290-3,859,290-3,859,290 9 Prepayments 11,911,827-11,911,827-11,911, Working Gas In Storage 98,182,654-98,182,654 (98,182,654) 0 11 Total Working Capital 59,990,044-59,990,044 (105,460,321) (45,470,277) 12 Gain on Sale of Assets (952,409) (952,409) 13 Poly 1 Costs 42,982,796-42,982,796 (42,982,796) - 14 Investment Additions 102,972, ,972,840 (149,395,526) (46,422,686) INVESTMENT DEDUCTIONS 17 Customer Deposits 24,590,346-24,590,346-24,590, Customer Advances For Construction 5,031,889-5,031,889-5,031, Injuries and Damages Reserve 1,284,500-1,284,500-1,284, Income Tax Adjustments 137,304, ,304, ,304, Investment Deductions 168,211, ,211, ,211, TOTAL Invested Capital $ 1,008,540,712 $ 5,406,076 $ 1,013,946,788 $ (244,225,770) $ 769,721,018 Schedule H (D)

22 Schedule I (D) - Depreciation Expense TXU Final Order Line No. NARUC Acct. Description Current Dep. Exp Proposed Dep. Exp. Proposed Change Total Dep. Exp. Change (a) (b) (c) (d) (e) (f) (g) 1 Distribution Plant 2 Computed Depreciation/Amortization Expense (1) 51,521,118 57,274,192 5,753,075 50,517,414 (6,756,778) General Plant Depreciation Expense Computer Software 2,781,542 3,511, ,585 3,422,731 (88,397) Land Structures & Improvements 331, , , ,079 (12,207) Office Furniture & Equipment 76,105 67,272 (8,834) 66,541 (731) Transportation Equipment Tools, Shop, and Garage Equipment Power Oper. Tool & Work Equipment Radio Communication Equipment - 15,357 15,357 14,061 (1,296) Miscellaneous Equipment 892, ,305 (685,589) 206,286 (1,019) Non-Mainframe Computer Equipment 372, ,719 (57,021) 297,878 (17,841) 16 Total General Plant 4,455,128 4,647, ,939 4,525,576 (121,490) Meter Shop Inventory Total General Plant and Meter Shop Inventory Dep Exp 4,455,128 4,647, ,939 4,525,576 (121,490) Total Depreciation Expense 55,976,245 61,921,259 5,945,013 55,042,990 (6,878,268) (1) Includes amortization expense of Poly 1 Costs (if any) and 25 negative amortization expense to recognize gains on test year asset sales. Schedule I (D)

23 Schedule I-1 (D) - Depreciation Expense - Workpaper TXU Final Order Line No. NARUC Acct. Description Adjusted Cost Dep. Rate Dep. Exp. Adjusted Cost Dep. Rate Dep. Exp. (a) (b) (c) (d) (e) (f) (g) (h) 1 Distribution Plant Depreciation Expense 2 Test Year End Plant Balance 1,554,885, % 54,265,487 1,461,135, % 50,993,618 3 Poly 1 Cost Amortization 3,008,705-4 Negative Amortization of Gains on Sales (1) - (476,204) 5 Total Depreciation/Amortization $ 57,274,192 $ 50,517, General Plant Depreciation Expense 8 General Plant Depreciation Expense Computer Software 25,332, % 3,511,127 24,991, % 3,422, Land 1,632, % - 1,824, % Structures & Improvements 16,675, % 530,286 16,291, % 518, Office Furniture & Equipment 6,795, % 67,272 6,721, % 66, Transportation Equipment 13,180, % - 13,180, % Tools, Shop, and Garage Equipment % % Power Oper. Tool & Work Equip. 7,060, % - 7,060, % Radio Communication Equipment 3,412, % 15,357 3,124, % 14, Miscellaneous Equipment 14,807, % 207,305 14,734, % 206, Non-Mainframe Computer Equip. 2,000, % 315,719 1,887, % 297, Total General Plant 90,897, % 4,647,066 89,817, % 4,525, Meter Shop Inventory 4,278,649-4,278, Total General Plant and Meter Shop Inventory $ 95,176,213 $ 4,647,066 $ 94,095,807 $ 4,525, Total Depreciation/Amortization Expense $ 61,921,259 $ 55,042, (1) Negative amortization expense to recognize gains on test year asset sales. Schedule I-1(D)

24 Schedule J (D) - Cash Working Capital - Final Order Line Adjusted Test Avg. Daily Revenue Expense Net Working Capital TXU's Proposed No. Description Year Amount Ref Expense Lag Days (1) Lead Days (1) Lead/Lag Requirement Net Lead/Lag Difference (a) (b) (c) (d)=(b)/365 (e) (f) (g)=(e)+(f) (h)=(d)x(g) 1 Operation & Maintenance 2 Purchased Gas Cost (1) 459,466,746 B 1,258, (48.434) (24.604) (30,971,206) (24.439) Pipeline Costs 75,444,523 B 206, (38.797) (14.967) (3,093,639) (14.967) - 4 Other O&M 164,130,220 B 449, (39.189) (15.359) (6,906,510) (15.359) - 5 Total Operation & Maintenance 699,041,489 (40,971,354) 6 7 Federal Income Taxes 8 Current 7,913,821 W/P G-7D 21, (39.500) (15.670) (339,752) (15.670) - 9 Deferred 12,872,067 W/P G-7D 35, Total FIT 20,785,888 B (339,752) Taxes Other Than Income Taxes (2) 70,374,371 B 192, (95.799) (71.969) (13,876,059) (40.255) Interest on Customer Advances & Deposits 1,597,580 B 4, (1, ) (1, ) (6,054,229) (1, ) Depreciation Expense 55,042,990 B 150, Return 63,563,562 B 174, Sub-total 910,405,880 (61,241,394) Average Daily Bank Balances (3) - 23 Working Funds and Other (3) Total Working Cash Allowance $ (61,241,394) (1) Adjustment to Purchased Gas Cost Lead Days to reflect actual payment in April of Test Year. (2) See adjustments in Schedule J-1 (3) Average Daily Bank Balances and Working Funds are excluded from CWC calculation. Schedule J (D)

25 Schedule J-1(D) - Cash Working Capital Workpaper - Final Order Lead/Lag Day Calculation for Taxes Other Than Income Taxes (Lead)/Lag Line No. Description Amount Days Weighted Dollar Days (a) (b) (c) (d) TXU's Proposed (Lead)/Lag Difference 1 FICA 3,624,988 (28.295) (102,569,045) (14.245) (1) 2 3 Federal Unemployment 58,556 ( ) (6,513,280) (97.181) (1) 4 5 State Unemployment 109,853 ( ) (11,601,912) (91.563) (1) 6 7 Total Payroll Related 3,793,398 (31.814) (120,684,238) 8 9 State Gross Receipts 14,832, ,066, Local Gross Receipts 33,287,682 ( ) (3,549,032,792) (46.534) (2) State Franchise Tax 234, , DOT Pipeline Fees 30, ,473, Total Revenue Related 48,383,899 (72.800) (3,522,327,331) Ad Valorem 12,567,198 ( ) (2,559,435,463) ( ) Total 64,744,494 (95.799) (6,202,447,032) (64.085) (1) Adjustment to include vacation lead days in payroll tax lead day calculation. (2) Adjustment to Franchise Fee Lead Days to reflect actual payment patterns as proposed by Dallas. Schedule J-1(D)

26 Schedule K (D) - Revenue Line Present Revenue Increase Proposed Percent Increase Percent No. Acct. Description As Adjusted (Decrease) Revenue Change Final Order (Decrease) Change (a) (b) (c) (d) (e) (f) (g) (h) (i) 1 Operating Revenue Residential (non-pipeline costs) 520,245,667 52,074, ,319, % 547,079,050 26,829, % 3 Residential (Pipeline costs) 39,392,229 3,889,548 43,281, % 37,702,756 (1,685,658) -4.29% 4 Total Residential 559,637,896 55,963, ,601, % 584,781,805 25,143, % Commercial (non-pipeline costs) 263,687,465 2,534, ,221, % 241,642,281 (22,036,799) -8.36% 7 Commercial (Pipeline costs) 20,069,699 1,981,662 22,051, % 21,112,025 1,033, % 8 Total Commercial 283,757,164 4,515, ,273, % 262,754,306 (21,002,858) -7.40% Industrial/Transportation (non-pipeline costs) 39,027,948 (906,554) 38,121, % 28,357,835 (10,671,003) % 11 Industrial/Transportation (Pipeline costs) 9,181, ,554 10,087, % 16,629,742 7,449, % 12 Total Industrial/Transportation 48,209,274-48,209, % 44,987,577 (3,221,697) -6.68% Total (non-pipeline costs) 822,961,080 53,701, ,662, % 817,079,166 (5,878,234) -0.71% 15 Total (Pipeline costs) 68,643,254 6,777,764 75,421, % 75,444,523 6,797, % 16 Total Operating Revenue 891,604,334 60,479, ,083, % 892,523, , % Other Revenue Forfeited Discounts 11,220-11, % 11, % Miscellaneous Service Charge Revenue (1) 8,570,565 7,899,570 16,470, % 16,470,133 7,899, % Rent from Gas Property 1,391,477-1,391, % 1,391, % Other Gas Revenues 9,362-9, % 9, % 23 Total Other Revenue 9,982,624 7,899,570 17,882, % 17,882,192 7,899, % Total Operating and Other Revenue $ 901,586,958 $ 68,379,200 $ 969,966, % $ 910,405,881 $ 8,818, % (1) See Schedule O-4 for Service Charge Revenue Schedule K (D)