NYT: In Big Buyout, Utility to Limit New Coal Plants: Landmark deal brokered with environmentalists

[DeepModem Mom]

In Big Buyout, Utility to Limit New Coal Plants
By FELICITY BARRINGER and ANDREW ROSS SORKIN
Published: February 25, 2007

Under a proposed $45 billion buyout by a team of private equity firms, the TXU Corporation, a Texas utility that has long been the bane of environmental groups, will abandon plans to build 8 of 11 coal plants and commit to a broad menu of environmental measures, according to people involved in the negotiations.

The roster of commitments came through an unusual process in which the equity firms asked two prominent environmental groups what measures could be taken to win their support. The result is an about-face from the company’s earlier approach to climate-change issues, and includes a goal of returning the carbon-dioxide emissions by TXU to 1990 levels by 2020.

Environmental groups said yesterday that they had never known of a financial deal with such an ambitious built-in environmental component.

Two private equity firms, Kohlberg Kravis Roberts & Company and the Texas Pacific Group, have proposed to buy TXU in what would become the largest leveraged buyout ever....People involved in the negotiations said that Goldman Sachs, an adviser and lender to the buyers, helped broker peace with environmental groups and sought their support for the transaction. Goldman Sachs has been one of the most aggressive firms on Wall Street about taking action on climate change; the company sends its bankers home at night in hybrid limousines....

http://www.nytimes.com/2007/02/25/business/25coal.html?hp

[goforit]

1. This IS outstanding news!!! I'm more impressed with Goldman Sachs!!!!

[DeepModem Mom]

2. Watched "Inconvenient Truth" pre-Oscars last night, and this deal...

looked like the kind of thing that Al would think business should be moving toward. I noted, too, that there were advantages for business -- having info upfront, and having it written into the deal.

[goforit]

4. Yes, like King Arthur...bring all to the round table!

[kestrel91316]

3. OMG

The environmental movement is FINALLY a FORCE TO BE RECKONED WITH.

Power to THE PEOPLE!!!!!!!!!!! Yeah!!!!!!

:wow:

[youngdem]

5. TX PIRG has been going against this for more than ten years

I even worked for them for a time organizing. They fought this tooth and nail. This company, a few cement factory and cars do almost all of the polluting in Texas. This explosion in the number of coal plants would have killed thousands.

Huge news.

Hope there isn't a huge catch somewhere.

[DeepModem Mom]

6. Weekday kick -- I think this is significant. nt