Texas Energy says it won't push TXU debt on transmission side
DALLAS, TEXAS - Investors seeking to acquire TXU Corp. reiterated they will not push any of the utility's additional debt on the electric company's transmission business.
Texas Energy Future Holdings Limited Partnership, a holding company formed by Kohlberg Kravis Roberts & Co., Texas Pacific Group and other investors to acquire TXU Corp., agreed last month to buy TXU for about $32 billion.
At the time, the partnership said it would assume more than $12 billion in debt. Then last week, TXU disclosed that its purchasers have lined up $24.6 billion in debt financing to complete the deal.
Texas Energy Future Holdings said once the TXU transaction is completed, it will create three separate businesses focusing on generation, transmission and distribution. Investors say the competitive generation and retail businesses will be able to support the debt related to the transaction.
"There will be no new debt at TXU Electric Delivery to fund this transaction. There is no basis for rates at TXU Electric Delivery to increase as a result of the transaction. In fact, the Texas Public Utility Commission will continue to have complete authority over TXU Electric Delivery rates," Michael MacDougall, a partner at Texas Pacific Group, said recently.
David Bonderman of Texas Pacific met with Dallas Mayor Laura Miller and others who opposed TXU's initial plans to build 11 coal-fired power plants.
"We decided that we would all work together and continue the dialogue," Miller said after the meeting.
Related News
If B.C. wants to electrify all road vehicles by 2055, it will need to at least double its power output: study
VANCOUVER - Researchers at the University of Victoria say that if B.C. were to shift to electric power for all road vehicles by 2055, the province would require more than double the electricity now being generated.
The findings are included in a study to be published in the November issue of the Applied Energy journal.
According to co-author and UVic professor Curran Crawford, the team at the university's Pacific Institute for Climate Solutions took B.C.'s 2015 electrical capacity of 15.6 gigawatts as a baseline, and added projected demands from population and economic growth, then added the increase that shifting to…