TXU to Replace Coal with Wind and Energy Efficiency

Fred Krupp from Environmental Defense was interviewed on NPR on the TXU deal. As part of the deal, TXU's prospective purchasers agreed to reduce the number new coal plant applications from eleven to three, and to reduce their C02 emissions to 1990 levels by 2020.

When asked how purchasers would meet the increased energy demand that the new coal plants were supposed to meet, Krupp said that they would go a long way toward meeting this demand by doubling its investment in wind power and doubling its investment in energy efficiency. Krupp said this "is becoming a new model, where utilities are understanding that they can make money by helping customers save energy."

Comments

[Matt]

Just to clarify this - TXU did not make any of these deals. These were agreements made with a consortium (Kohlberg Kravis Roberts & Co. and Texas Pacific Group and numerous banks)that is making a buy-out offer on TXU. Those environmental concessions happen only IF this consortium buys TXU, and that is not a done deal. There is substantial legislative scrutiny on this offer (including allegations of insider trading), and TXU's CEO has stated he is soliciting 30-60 rival bids -who don't have any obligation other than bad PR to make environmental concessions.

TXU has also said this deal does not mean they will not seek to apply to build future coal plants in Texas, and these agreements are all voluntary and legally non-binding...

-Matt