Two private equity firms are set to acquire utility company TXU for $45 billion. Part of the acquisition deal includes reducing rates for customers by six percent by March 31, and four more percent once the deal becomes complete.
The firms Kohlberg Kravis Roberts and Company and the Texas Pacific Group are set to acquire TXU.
A second part of the plan includes an environmental focus. TXU suspended permits for eight coal-burning power plants across Texas, including the Valley Plant in Savoy. If the acquisition goes through, the permit applications are scheduled to be withdrawn.
TXU officials say they will try and meet the Texas energy demand through more wind power, and a combination of three lignite coal plants, and natural gas resources.
Officials say the biggest part of the deal is the savings the plan will bring to customers.
"We've always said we want to be competitive," said Sophia Stoller, a TXU spokesperson. "Now we are the most competitive available pricing plan in North Texas."
The acquisition deal is expected to finalize in about six months, and customers will have price protection through September 2008. This means TXU will be able to keep the lowered rates through two summer seasons. Officials also anticipate the rates could remain at the lowered after 2008.