The Dallas Morning News reports this morning that Texas lawmakers have thrown a wrench into the TXU buyout, passing legislation that would strip the power company of some of it's power plants and giving state authorities the right to approve the buyout by KKR and TPG.
The Senate approved legislation Thursday that would strip TXU Corp. of some of its power plants and increase state authority over TXU operations – including the right to approve the utility's proposed $45 billion sale.
The unanimous Senate was reacting to reports earlier this week that TXU had manipulated the state's wholesale electricity market to reap millions in additional profits.
The package of three bills would target high rates and other problems in the state's residential electricity market, but the most dramatic effects would be felt by Dallas-based TXU, the largest power generator in Texas. All three bills now go to the House for consideration.
Sen. Troy Fraser, R-Horseshoe Bay, author of the measures, identified TXU as the main "perpetrator" of the problems that have troubled the state's deregulated electricity market and forced action by the Legislature to correct those problems.
Limits on TXU fly through Senate [Dallas Morning News]