By Bill Zeeble, KERA reporter
http://stream.publicbroadcasting.net/production/mp3/kera/local-kera-569003.mp3
Dallas, TX – Bill Zeeble KERA 90.1 reporter:
Money for the buyout totals 45 billion dollars, & will come from the firms Kohlberg, Kravitz, Roberts, the Texas Pacific Group, & Goldman Sachs. It represents a significant change in production of energy, says Eric Kane, with Innovest Strategic Value Advisors. That's because it eliminates 8 of TXU's 11 proposed pulverized coal plants, which TXU opponents had criticized. Kane expects green technology will also be part of the new TXU. He joined environmentalists in a telephone conference today.
Eric Kane, analyst Innovest Strategic Value Advisors: As federal air quality standards become more stringent and national legislature and climate challenge appears likely, we expect costs associated with coal generation will continue to increase. Furthermore, recent trends demonstrate the potential of regulators & investors to delay or derail similar projects.
Zeeble: Dallas Mayor Laura Miller, who's helped lead the fight against TXU's proposed coal plants through the 36 member Clean Air Cities Coalition, cautiously welcomed the buyout news with, what she called, quasi happiness. It's a great victory, she said, that the buyers have removed 8 coal plants from construction plans. & Because of that, The Natural Resources Defense Council called buyout bid a no-brainer. But Miller she says the Oak Grove plant remains a serious concern.
Dallas Mayor Laura Miller: That one plant, which is 2 stacks, and a very large plant for TXU to build, at a site where there's no coal plant now, that plant alone emits more mercury than other 7 combined now off table. It also emits almost half the amount of nox which is smog, ozone, that puts us in non-attaianment, than other 7 combined. 469/44 So we're talking about a big beast that's real dirty.
Zeeble: That's because it still uses lignite coal from Texas, not cleaner Wyoming coal planned for the now scrapped plants. Miller and coalition members haven't yet talked to TXU's takeover bidders about this concern, but Tom Smith, director of Public Citizen, Texas, says the war's far from over. He says the 3 plants still in play are the dirtiest. Indeed, judges denied the Oak Grove permit a year ago.
Tom Smith, director, Public Citizen, Texas: We're planning to continue to oppose the permitting of these plants. And the folks buying TXU have called us and asked us to sit down and visit with them & see their out of the box solution, and we intend to continue to visit with them.
Zeeble: Mayor Miller also welcomed plans to reduce TXU's electricity rates by 10 percent. But that didn't surprise, in part because rates in Texas are already among the nation's highest.
Miller: I love the idea rates would be lower. But with the price to beat gone and dereg fully in force and others saying they'll come in with wind and gas and nuclear, prices would drop anyway. But I like it. Sounds great, I like it,
Zeeble: But again, she says, questions remain, and as a result, she, and the coalition - will continue asking questions. For KERA 90.1, I'm Bill Zeeble.
Bzeeble@Kera.Org