TXU, the largest energy provider in Texas, has agreed to be sold to two private equity firms, Texas Pacific Group and Kohlberg Kravis Roberts & Company, for $45 billion.
The Environmental Defense says this will save customers money, possibly cutting up to ten percent of electrical costs.
The private equity companies purchasing TXU will terminate eight of the eleven contracts for the proposed coal plant, including the proposed plant in Savoy.
The environmental defense is praising this step to move toward more environmental friendly standards, reducing emissions and sidestepping coal-fired power plants.
Concerned Texas environmentalists have been fighting to stop construction of the power plants.
The buyers and TXU say energy efficiency is at the forefront of the deal.
"What a big difference this transaction makes in terms of the posture of the company...(this is) a company who last week was opposed to doing anything about global warming, and today we have new owners who pledge to support global warming legislation."
The deal, which would cut and limit electricity prices for its 2.3 million customers until September 2008, has not been finalized.