Playing Pasadena's No Dirty Coal Deal Out on a Grand Scale - TXU's Bre'r Rabbit Strategy

The Pasadena Pundit ^ | February 28, 2007 | Charles Warren

[WayneLusvardi]

Playing Pasadena's No Dirty Coal Deal Out on a Grand Scale - TXU's Bre'r Rabbit Strategy

Charles Warren, San Francisco

The Pasadena Pundit - Feb. 28, 2007

Playing Pasadena out on a grand scale, the TXU deal was aptly dissected in this morning's Wall Street Journal. In order to get green backing for the buyout, the new owners proposed stopping work on licensing 6 new coal fired generators. But, given the market power of TXU that was rightly seen as a Bre'r Rabbit tactic. "Oh please make me stop adding to the power supply...(so that when the shortage hits, I can charge whatever I want and you'll have to like it)." Of course only capitalists can be sinful in the Marxian world. So if government did the same thing it would be an "unintended consequence". Funny thing, though, government would still suddenly be rolling in money. Wouldn't have increased taxes either, would they? See below:

TXU Would Scale Back Coal-Fired Plant Plan KWTX-Channel 10 Texas (Feb. 25) http://www.kwtx.com/home/headlines/6070951.html Excerpt: TXU would put the brakes on its ambitious and controversial plan to build 11 coal-fired power plants under the terms of a buyout the TXU board is expected to vote on Sunday. The New York Times reports Sunday that TXU (the largest producer of electric power in Texas) will drop plans to build eight of the 11 plants including three proposed for McLennan County. Private-buyout firms Kohlberg Kravis Roberts, Goldman Sachs and Company and Texas Pacific Group are expected to bid at least $32 billion and perhaps as much as $45 billion for the publicly traded utility company in one of the largest private-equity deals ever. The News and the Times report that the buyers signed a deal with two environmental groups promising to scale back the number of coal-fired plants if TXU accepts the offer.

Environmental Defense Texas Director Jim Marston calls the promise "a big deal," the Morning News reports. "It really is, I think, a watershed moment in America's fight against global warming. They have made a number of very important commitments related to both local air pollution problems in Texas as well as commitments to do something against greenhouse gas emissions," Marston told the Morning News.

[ASOC]

Lets see, I want to build at least 3 new coal fired plants and I need some capital to do it. Don't want to pay market reates for a loan and can't get bonding...wudda am I gonna do?

Light blub comes on........

[thackney]

Texas power crisis tune changes quickly
http://www.chron.com/disp/story.mpl/business/energy/4588383.html

Just a week ago, Texas was facing a power crisis in the coming years if the state didn't green-light TXU's plans to build 11 coal-fired power plants.

At least that's what TXU and its supporters said.

What a difference a few days can make.

TXU said Tuesday it's now prepared to bring as much as 1,400 megawatts of mothballed natural gas-fired power generating capacity back on line to meet the state's power needs in the coming years. One megawatt can power as many as 800 homes.

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So, how many of those "No Dirty Coal" ads were paid for by Natural Gas Companies?

[DustyMoment]

Somethin' don't sound right. Power companies leaped over huge hurdles in the 70s and 80s to convert all their coal-burning plants into "enviro-friendly" emission plants.

Now coal is too dirty for TXU??

I think I agree with the poster who said that, when the lights start to dim, TXU can charge whatever it wants. If that's the case, we may ALL soon be paying what algore pays on his 20 room mansion.