Energy Future Holdings faces the prospect of bankruptcy — perhaps in just a few weeks. How is it that the state’s largest electric company now finds itself in such dire straits? And how would an EFH financial collapse impact you?
The Texas Coalition for Affordable Power has released a new Snapshot Report on the plight of the north Texas electricity giant. You can find the brief examination here. In just a few short pages it provides all the quick facts you need to understand this important business story, plus key historical context.
EFH was formed in 2007, after a group of investors leveraged more than $40 billion in debt to acquire the former TXU Corporation. It was the largest leveraged buyout in history.
The background brief provides a quick history of the buyout, and also examines the three main components of EFH: Luminant, the generating company; Oncor, the regulated transmission and distribution company; and TXU Energy, the retail electric provider. When EFH fails, what may become of these affiliates? What will it mean for the health of electric competition in general.
The new Snapshot Report is the latest from TCAP, which also has recently released an updated report on the history of electric deregulation in Texas, a Snapshot Report on electricity prices in Texas, a report on complaints in the electricity market, and a report examining the proposed multi-billion-dollar subsidies for generation companies.
You can find all the reports here.
ABOUT the Texas Coalition for Affordable Power
TCAP is a coalition of more than 165 cities and other political subdivisions that purchase electricity in the deregulated market for their own governmental use. Because high energy costs can impact municipal budgets and the ability to fund essential services, TCAP, as part of its mission, actively promotes affordable energy policies. High energy prices also place a burden on local businesses and home consumers.