TXU has not shown in the past that they have any interest in helping Texas solve it's pollution problems, even though they have been one of the major contributors to that problem. Their attorney recently said in court that global warming was the problem of president's and kings, and not TXU's problem.
In other words, they are only interested in greedy windfall profits, and care nothing about the environment of Texas or the health of Texans. They have no interest in being good and responsible corporate neighbors as long as they can pump up their profits and the price of their stock. But we may not have to worry about these greedy bastards much longer.
Two groups (Texas Pacific Group and Kohlberg, Kravis, Roberts & Co.) are trying to buy TXU. Even better, it looks like these groups ARE interested in being good corporate neighbors.
Last week I was very leery of this buyout proposal. After all, the common man is seldom helped when one conglomerate buys another. But right now, these two groups (TPG and KKRC) seem to be different. Rather than try to run roughshod over environmental concerns of TXU critics, they have sat down with them and actually had a dialogue.
They were not only willing to listen to the concerns of Texans - they were willing to compromise for the good of the citizens of Texas and for themselves. This is a remarkable change from the heavy-handed tactics of TXU.
In a deal expected to be announced today, the Fort Worth Star-Telegram is reporting that TPG and KKRC have agreed to:
* Build only 4 of the proposed 11 coal-burning plants that TXU wanted to build.
* Commit to cutting emmissions company-wide by 20%.
* Commit to slashing emissions of carbon dioxide to 1990 levels by the year 2020.
* Agree to support legislation capping the emission of carbon dioxide.
* Pledge to increase the amount of renewable energy sources in the company's portfolio.
This is a compromise that would be beneficial to the people and the environment of Texas. I don't know how well TPG and KKRC will live up to this compromise, but I know TXU isn't willing to compromise at all. I hope this buyout will happen, and will receive approval from the neccessary entities.
We'll see if it goes through.
ReplyDeleteI honestly don't understand why some people resist so hard doing anyting that might benefit our environment.
Regardless of where one comes down on the issue of Globla Climate Change - be it man-induce or natural - who cares?
This is where we live. Everyone knows you don't crap upstream of your drinking water.
Well, everyone except TXU it seems.
I don't think so. Look, I liked that TXU was actually trying to do something in the way of building more energy generation in the US when everyone else is content to sit on their ass and wait for the next crisis. While I wished they had opted for clean coal technologies, they at least had an idea. KKR and Texas Pacific are short-term investors. Their reduction of building coal fired plants from 11 to 3 isn't so much an environmental strategy as it is a strategy to limit power production in Texas in order to drive up the power rates. And their plan to be more environmentally friendly (which I would love to see more of, but people wouldn't want to pay the real price of it, especially in Texas) is merely a shill to limit other outsiders from building in Texas, ensuring the rate increases due to demand in Texas' deregulated market. Once Texans are strangled by sky high energy rates, they can sell their attractive cash cow to the highest bidder. They are leveraging the ERCOT infrastructure and the deregulated market to create the ideal conditions for driving up the price on an artificially finite resource: energy generation.
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