Tuesday, April 29, 2014

Did EDF Screw TXU ???

Remember how elated we all were when the Environmental Defense Fund hammered out a deal to get TXU to cancel 8 planned coal-fired power plants in Texas?

http://www.edf.org/energy/edf-helps-prevent-eight-coal-plants-texas

Boy oh boy, was I happy then.

But now TXU has filed for bankruptcy, in the largest ever non-financial bankruptcy in US history:

http://www.zerohedge.com/news/2014-04-29/biggest-ever-lbo-now-officially-biggest-non-financial-bankruptcy-us-history

Fortunately TXU is no longer my electricity retailer, but their subsidiary Oncor is my electricity supplier. Whoops!

When I first heard of the "no coal plant" deal and the buyout, I wondered how TPG and KKR could possibly make any money on the deal. Now I know: they sucked $40+ billion out of TXU and left behind a lifeless husk.

Anyone who thinks deregulation was a good idea is an idiot ... or a private equity firm.

Are you happy now?

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