Today’s NY Times and Business Wire included an inspiring story about the largest leveraged buyout ever–and one that will benefit the environment, since it involves one of the biggest utility companies in the US.
TXU corporation has agreed to be purchased by a team of private equity firms and abandon plans to build 8 of 11 coal plants. The company will also set a goal to return carbon-dioxide emissions to 1990 levels.
This is a great example of how the fight against climate change is being taken so much more seriously by business and the public than by our government.
The equity firms approached the Natural Resources Defense Council and Environmental Defense, and asked them what they would like to see done differently by TXU, a company they have battled for years.
“This turnaround marks the beginning of a new, competitive focus on clean, efficient, renewable energy strategies to deliver the power we need while cutting global warming emissions,” said NRDC President Frances Beinecke. “It is a big step forward for the State of Texas and for the American energy economy as a whole.”
The prospective owners would also throw their support behind a mandatory nationwide limit on global warming emissions paired with a market-based emissions trading system. They also say they will endorse the positions of the recently-announced U.S. Climate Action Partnership, and will seek to formally join the group of companies and environmental organizations already involved.
The new company would aim to limit its total CO2 emissions from its generating operations and reduce them over time, and pledge not to propose any additional traditional pulverized coal plants outside Texas.
“What we’re witnessing is the beginning of the end of investments in old-fashioned coal plants,” said David G. Hawkins, a former top EPA official “These are very big investors coming to the energy table with very big ideas about where the competitive market is heading. Strategies to fight global warming and save energy are crucial for anyone hoping to succeed in today’s electricity industry.
The company will also expand its investment in energy generated from renewable sources including wind and solar, and take steps to increase its own energy efficiency.”
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