Proposed TXU Buyout Has Environmental Components

TXU, the Texas-based energy company with plans to build 11 new coal-powered plants, is in the process of being bought out for $32 billion by two private equity firms - Kohlberg Kravis Roberts & Company and the Texas Pacific Group (if you can't access the NYTimes article, click here for one from The Malaysia Star). The shareholder vote is or was sometime today.

As a part of the buyout, 8 of the 11 plants will not be built. The two private equity firms contacted environmental groups to ask them what environmental measures they can bring to TXU will earn their support. The contact with these environmental group was brokered by Goldman Sachs who is an advisor and lender to the two firms. Goldman has been a big player on Wall Street in the fight against climate change (among other things they do, the article mentions that the limos that drive their late-working employees home are hybrids).

Another proposal in the buyout will result in TXU increasing the renewable energy portion of their portfolio "and reduce or offset its emissions significantly."

To read from a Fortune article from the beginning of February about TXU's plan to build the 11 coal plants, click here.