in News Departments > New & Noteworthy
print the content item

An investor group led by Kohlberg Kravis Roberts & Co. and Texas Pacific Group has entered into an agreement with TXU Corp., a Dallas-headquartered energy company, to acquire TXU for $45 billion. Goldman Sachs Capital Partners, Lehman Brothers, Citigroup and Morgan Stanley are all part of the investor group.

As a result of this acquisition, 11 planned coal-fueled generation plants will be scaled down to three - preventing 56 million tons of carbon emissions per year, the companies say. In addition, the new TXU owners plan on doubling the company's purchase of wind power to more than 1,500 MW.

"With these long-term and very informed investors, we can execute a new strategy that will allow us to reshape TXU's program to build new electric generation units," says C. John Wilder, chairman and chief executive officer of TXU. "Our new strategy will meet two important objectives: addressing Texas' immediate and future energy and reliability needs; and doing so in a manner that responds to the desires of policy makers and other key stakeholders to incorporate new technology advancements and conservation."

Gov. Rick Perry, R-Texas, supports the agreement.

"With multiple energy companies proposing new projects to expand their energy capacity, and today's announcement that rates will be reduced by 10 percent for TXU customers, we know that market forces are working to ensure our energy supply is both more abundant and more affordable as we look to the future," Perry comments.

The transaction, which is subject to TXU shareholders' approval, is expected to close in the second half of 2007.


Trachte Inc._id1770
Latest Top Stories

Report Disputes U.S. Agency's Renewable Energy Projections

A new analysis from the Sun Day Campaign says renewables are slated to provide 16% of U.S. generating capacity by 2018 - over 20 years earlier than forecast by the Energy Information Administration.


Kansas Renewables Mandate Survives Yet Another Attack, But Is It Too Early To Celebrate?

Over the past three years, some legislators have tried to either weaken or repeal the state's renewable portfolio standard, which requires Kansas utilities to reach 20% renewables by 2020.


AWEA Highlights U.S. Wind Success Stories Of 2013

Despite a 92% drop in new capacity last year, the sector still has myriad reasons to celebrate, according to a new report from the American Wind Energy Association.


Feds List New Bird Species As Threatened - Should Wind Developers Be Worried?

The U.S. Fish and Wildlife Service is designating the lesser prairie-chicken as threatened under the Endangered Species Act. An expert explains how this might affect the wind industry.


Senate Committee Passes Bill With Two-Year PTC Extension

The Senate Finance Committee has voted on a tax extenders package, which includes both the production tax credit (PTC) and investment tax credit, and sent it to the floor.

Acciona_id1907
WomenofWind_id
UEA_id1896
JLG_id1900
bonfiglioli_id1913
AWEA_id1886