Texas’ Top Coal Owner — Energy Future Holdings — files for Chapter 11 bankruptcy

Well we expected it and it happened. Energy Future Holdings officially filed for bankruptcy in a Delaware Federal Bankruptcy Court. See here for information from EFH. The partnership – Energy Future Holdings —  that bought out TXU in the largest leveraged buy-out — some $45 billion — in history back in 2007 and owned the state’s largest transmission company – ONCOR – the state’s largest generation fleet — Luminant — and the largest retailer – TXU Energy — has had to resort to bankruptcy to product itself against its huge debts. Their bet on big coal plants in Texas’ competitive market has not gone according to plan. Under the reported terms of the bankruptcy deal, EFH will be split up into two units and this time run separately. ONCOR, the regulated transmission, will be protected and run as part of Energy Future Intermediate Holdings, which is part of EFH. Oncor is a regulated utility that operates the power lines serving much of North and West Texas.

Texas Competitive Electric Holdings — which includes the company’s unregulated power company Luminant Generation and retail provider TXU Energy — would be transferred to its first lien lenders in a deal that would eliminate approximately $23 billion of its debt, the company said in a news release. This would include the three mega oal plants — Big Brown, Monticello and Martin Lake – which are the subject of numerous Sierra Club legal actions and enforcement cases. How their new owners plan to run these plants is still unknown. We hope they put them on a just transition toward retirement and invest in cleaner forms of energy. Stay tuned for more!

 

 

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