NEW YORK, Nov 12 (Reuters) - TXU Corp. (TXU.N: Quote, Profile, Research) on Friday said its power-generating subsidiary would shut eight aging units representing a quarter of its natural gas-fired capacity in Texas.

The Dallas-based company expects the actions to save about $20 million a year. The savings were included in its previously announced profit forecast of $5.65 to $5.85 a share for 2005.

"The units are more than 30 years old and most have run less during the past two years because newer power plants are more cost efficient," said Richard Wistrand, a senior vice president at TXU Power, the TXU Corp. subsidiary.

Competitors have entered the newly deregulated Texas electricity market over the past few years, building new plants that displaced many of the existing older facilities, industry watchers have said.

The TXU units will be mothballed, meaning they could be restarted if market conditions made it economical.

About 90 employees will be affected through staff reductions at the mothballed units and actions at other natural gas operations, TXU said.

Shares of the company rose 69 cents, or 1.1 percent, to $63.62 in morning trade on the New York Stock Exchange.

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