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Buyers of Texas Power Company Agree to ‘Think Green’

Texas power company TXU agreed to a buyout by private equity firms in the largest-ever private buyout. The acquiring companies also committed to adopting more environmentally friendly policies. NewsHour reports on the buyout and the business of thinking green.

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  • MARGARET WARNER:

    The proposed acquisition of TXU, the largest electricity producer in Texas, is notable not just because it's the largest private buyout ever, but because two leading environmental groups were involved in negotiations over the deal.

    As part of the transaction, the private equity firms buying the company — led by Kohlberg Kravis Roberts and Texas Pacific — committed TXU to become a greener company, by adopting more environment-friendly policies.

    In return, two groups who've been a thorn in the side of TXU — Environmental Defense and the Natural Resources Defense Council — publicly endorsed the deal.

    Specifically, the new owners have committed to: cancel plans to build eight new coal-fired plants, though three others will be built; spend $400 million over five years to promote energy efficiency and reduce demand; and join other companies in support of mandatory national caps on carbon emissions linked to global warming.