Some Texas lawmakers look at TXU buyout proposal

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AUSTIN (AP) - The proposed buyout of electric provider TXU has some legislators wondering if state regulators should review the deal.

Dallas-based TXU's board has approved the $32 billion buyout offer from Kohlberg Kravis Roberts, Texas Pacific Group, and others.

Shareholders and federal regulators would have to approve the sale.

Texas lawmakers yesterday introduced measures to give the Public Utility Commission power to approve or block the sale of a utility.

A state Senate committee voted 9-to-0 for a bill that would clear the way for the PUC review.

The Associated Press reports Senator Troy Fraser of Horseshoe
Bay seemed miffed that KKR lawyers seemed to boast Monday that
they didn't need state approval to buy TXU.

KKR's Frederick Goltz told a House committee that his firm would hold TXU for at least five years. But Goltz says if the Legislature imposes new regulatory conditions, it would be difficult for the group to make a commitment like he made.

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