Proposed TXU Buyout Plan Would Scrap 8 Of 11 Coal-Fired Power Plants - Reuters

[hatrack]

HOUSTON, Feb 24 (Reuters) - A proposed buyout of TXU Corp. (TXU.N: Quote, Profile, Research), Texas' largest electric company, may include an agreement with an environmental group for the Dallas-based firm to scrap plans to build eight of 11 coal plants in the state, the Natural Resources Defense Council said on Saturday.

On Friday, sources confirmed that Kohlberg Kravis Roberts & Co. (KKR.UL: Quote, Profile, Research) and Texas Pacific Group (TPG.UL: Quote, Profile, Research) were set to offer about $32 billion for TXU in what would be the largest private equity deal ever. The deal could be announced as early as Monday, sources said. TXU officials on Friday would not comment on any potential offer for the company. Efforts to reach TXU officials late Saturday were unsuccessful.

The NRDC said KKR and Texas Pacific Group have committed to withdrawing eight of 11 permits for pulverized coal plants TXU wants to build in Texas.

The potential new owners would also support a mandatory nationwide limit on emissions of carbon dioxide -- blamed for global warming -- support an emissions-trading program, drop plans to build coal plants outside Texas and invest in energy efficiency programs to reduce the need for new power plants in the state, the environmental group said.

EDIT

http://www.reuters.com/article/governmentFilingsNews/idUSN2422465720070225

[kurth]

1. EPA Toxic Release Inventory data ranks TXU’s Monticello plant in East Texas as

as the worst in the nation. In Texas there are 1,160 premature deaths, 1,791 heart attacks, 34,000 asthma attacks and 144 lung cancer deaths every year from particle pollution from existing coal-burning power plants. So we need to build MORE Monticello's?

[YankeyMCC]

2. NYT Story :

I posted it earlier this morning: http://www.nytimes.com/2007/02/25/business/25coal.html?ex=1330059600&en=816905b5c8601775&ei=5088&partner=rssnyt&emc=rss

[NNadir]

3. I am very pleased that people are fighting coal.

This is a tremendous victory.

[Eugene]

4. TXU Agrees to $32B Sale to Buyout Firms - AP

TXU Agrees to $32B Sale to Buyout Firms

By DAVID KOENIG, AP Business Writer

Monday, February 26, 2007

(02-26) 06:49 PST DALLAS, (AP) --

TXU Corp., Texas' largest electricity producer, said Monday it has agreed to be
sold to a group of private-equity firms for about $32 billion in what would be
the largest private buyout in U.S. corporate history if shareholders go along.

Kohlberg Kravis Roberts & Co. and Texas Pacific Group led a group that included
Goldman Sachs & Co. and three other Wall Street firms that will pay $69.25 per
share for TXU. They will also assume about $13 billion in debt.

The firms won support for the buyout from some environmentalists who have
criticized TXU by agreeing to sharply scale back TXU's controversial $10 billion
plan to build 11 new coal-fired power plants that would produce tons
of new greenhouse gas emissions.

They also agreed to cut electricity prices 10 percent, which they said would
save TXU residential customers more than $300 million per year, and limit
prices until September 2008.

-snip-

Full article: http://www.sfgate.com/cgi-bin/article.cgi?f=/n/a/2007/02/26/financial/f064909S04.DTL

[phantom power]

5. K+R for a bit of *good* news.