INTEREST EXPENSE AND RELATED CHARGES



	Three Months Ended September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
Interest paid/accrued on debtor-in-possession financing	$	16		$	16		$	47		$	22
Adequate protection amounts paid/accrued (a)	311			308			920			519
Interest paid/accrued on pre-petition debt (b)	1			3			7			883
Interest related to pushed down debt	—			—			—			1
Noncash realized net loss on termination of interest rate swaps (offset in unrealized net gain) (c)	—			—			—			1,225
Unrealized mark-to-market net gain on interest rate swaps	—			—			—			(1,290		)
Amortization of interest rate swap losses at dedesignation of hedge accounting	—			—			—			(1		)
Amortization of fair value debt discounts resulting from purchase accounting	—			—			1			3
Amortization of debt issuance, amendment and extension costs and discounts	—			1			—			86
Capitalized interest	(2		)	(3		)	(8		)	(14		)
Total interest expense and related charges	$	326		$	325		$	967		$	1,434

____________


(a)	Post-petition period only.


(b)	Includes amounts related to interest rate swaps totaling $193 million for the nine months ended September 30, 2014. Of the $193 million for the nine months ended September 30, 2014, $127 million is included in the liability arising from the termination of TCEH interest rate swaps discussed in Note 13.


(c)	See Note 13.

Interest expense for the nine months ended September 30, 2015 reflects interest paid and accrued on debtor-in-possession financing (see Note 8), adequate protection amounts paid and accrued, as approved by the Bankruptcy Court in June 2014 for the benefit of secured creditors of (a) $22.635 billion principal amount of outstanding borrowings from the TCEH Senior Secured Facilities, (b) $1.750 billion principal amount of outstanding TCEH Senior Secured Notes and (c) the $1.235 billion net liability related to the TCEH interest rate swaps and natural gas hedging positions terminated shortly after the Bankruptcy Filing (see Note 13), in exchange for their consent to the senior secured, super-priority liens contained in the TCEH DIP Facility and any diminution in value of their interests in the pre-petition collateral from the Petition Date. The interest rate applicable to the adequate protection amounts paid/accrued for the nine months ended September 30, 2015 is 4.68% (one-month LIBOR plus 4.50%). In connection with the completion of the Plan of Reorganization, the amount of adequate protection payments may be adjusted to reflect the valuation of the TCEH Debtors determined in connection with confirmation of the Plan of Reorganization by the Bankruptcy Court.

The Bankruptcy Code generally restricts payment of interest on pre-petition debt, subject to certain exceptions. However, the Bankruptcy Court ordered the payment of adequate protection amounts as discussed above. Other than these amounts ordered or approved by the Bankruptcy Court, effective April 29, 2014, we discontinued recording interest expense on outstanding pre-petition debt classified as liabilities subject to compromise (LSTC). The table below shows contractual interest amounts, which are amounts due under the contractual terms of the outstanding debt, including debt subject to compromise during the Chapter 11 Cases. Interest expense reported in the condensed statements of consolidated income (loss) for the three months ended September 30, 2015 and 2014, the nine months ended September 30, 2015 and the post-petition period ended September 30, 2014 does not include $226 million, $223 million, $678 million and $380 million respectively, in contractual interest on pre-petition debt classified as LSTC, which has been stayed by the Bankruptcy Court effective on the Petition Date. For the three months ended September 30, 2015 and 2014, the nine months ended September 30, 2015 and the post-petition period ended September 30, 2014, adequate protection paid/accrued presented below excludes $15 million, $15 million, $44 million and $25 million, respectively, related to interest paid/accrued on the TCEH first-lien interest rate and commodity hedge claims (see Note 13), as such amounts are not included in contractual interest amounts below.



	Three Months Ended September 30, 2015
Entity:	Contractual Interest on Debt Classified as LSTC		Adequate Protection Paid/Accrued		Contractual Interest on Debt Classified as LSTC Not Paid/Accrued
EFCH	$	2	$	—	$	2
TCEH	520		296		224
Total	$	522	$	296	$	226



	Three Months Ended September 30, 2014
Entity:	Contractual Interest on Debt Classified as LSTC		Adequate Protection Paid/Accrued		Contractual Interest on Debt Classified as LSTC Not Paid/Accrued
EFCH	$	2	$	—	$	2
TCEH	514		293		221
Total	$	516	$	293	$	223



	Nine Months Ended September 30, 2015
Entity:	Contractual Interest on Debt Classified as LSTC		Adequate Protection Paid/Accrued		Contractual Interest on Debt Classified as LSTC Not Paid/Accrued
EFCH	$	5	$	—	$	5
TCEH	1,549		876		673
Total	$	1,554	$	876	$	678



	Post-Petition Period Ended September 30, 2014
Entity:	Contractual Interest on Debt Classified as LSTC		Adequate Protection Paid/Accrued		Contractual Interest on Debt Classified as LSTC Not Paid/Accrued
EFCH	$	3	$	—	$	3
TCEH	871		494		377
Total	$	874	$	494	$	380