Like other utilities, the company went abroad in search of new revenue streams and to gain experience doing business in deregulated markets. The possibilities of this strategy are enticing. Telephone and Internet access offer higher profit margins than natural gas and electric rates. And increasing customer loyalty with many services means it's less likely that customers will switch to a competitor. Construction also would be easier.
Utilities can lay electric, gas, and fiber-optic lines in the same trench.
TXU also has ventured online. While the online venture isn't making any money now, Mike McNally, TXU's chief financial officer, says the site is about building the company's brand. Today, he adds, half of TXU's revenues come from the regulated side, and half from its unregulated businesses including ventures abroad. In short, TXU is ranging far wider than it once did. And it isn't the only utility doing so.