Texas Energy says it won't push TXU debt on transmission side
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
Global use of coal-fired electricity set for biggest fall this year
LONDON - The world’s use of coal-fired electricity is on track for its biggest annual fall on record this year after more than four decades of near-uninterrupted growth that has stoked the global climate crisis.
Data shows that coal-fired electricity is expected to fall by 3% in 2019, or more than the combined coal generation in Germany, Spain and the UK last year and could help stall the world’s rising carbon emissions this year.
The steepest global slump on record is likely to emerge in 2019 as India’s reliance on coal power falls for the first time in at least three decades…
