In a state that isn’t exactly known for its environmental initiatives, could the big TXU buyout deal be heralding a change in corporate attitudes toward dirty energy programs?

Dallas based TXU Corp’s leadership has been under fire for some time because of the company’s plans to build 11 new coal fired power plants in eastern Texas. Environmentalists, ranchers, the natural gas industry and even the mayors of Dallas and Houston have formed coalitions to oppose the company’s plans.

Now all the efforts seem to have paid off. A key component of the deal between TXU and investors Texas Pacific Group and Kohlbert Kravis Roberts & Co (KKR) is the scrapping of plans for eight of the coal operations and a commitment to reduced carbon emissions and increased investment in energy from renewal resources like wind and solar.

For a critique of the deal take a look at this article. The author soberly points out the fact that the buyout will create billions in debt and result in less investment in energy of any kind, keeping the price of energy in Texas high and reaping a ton of profits for the new owners. I think the point he makes should be well taken. While consumers, the legislature and watchdogs need to keep a close eye on the deal, it is hard to imagine that the leadership at TXU could get any worse. The new ownership will be bringing in some big-names including former Secretary of State James A. Baker III as advisory chairman and former EPA Administrator William Reilly as a TXU board member.

The deal is far from done and Texas is a deregulated state, so there will be plenty of opportunity for less eco-friendly power interests to take over where TXU Corp. will be leaving off, but the deal can only been seen as a positive turn of events in a situation that until recently looked pretty grim. I’m glad that with a little luck, my friends in Texas will soon be breathing a little easier.

 

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