The Dallas Morning News has moved into the realm of making the news as they recently commissioned a study to review the consumer benefits of the proposed TXU sale.  They also wrote a letter “from the editor” saying it is “consultative journalism,” and reported on their own study in a series of articles. 

Here is the “truth squad” message:  We at AFP believe it remains undisputable that selling the utility to private owners will create more value for the Texas economy and its customers.  Let’s face it, our energy prices are largely due to the generating sources and capacities in the state, and we are heavily reliant on natural gas.  We need to diversify our energy mix, and that is the message Texas Railroad Commissioner Michael Williams gave AFP members at our event in Dallas on Saturday. 

As a public company, TXU is beholden to stock holders and pressured to meet quarterly earnings targets. Its day-to-day mission is more about shareholder wealth than customer value. The private equity groups attempting to buy TXU appear equipped to invest the millions necessary to address infrastructure improvements and new technologies necessary to meet the state’s growing energy demands. In addition, the private equity groups are committed to holding the utility for at least five years providing the kind of stability consumers have come to expect from a utility company.

Energy companies, like TXU, are under extreme regulatory pressure to comply with environmental and security concerns. Proper compliance takes capital which private investors can access with more ease than a publicly traded company. The proposed buyers of TXU can meet these financial commitments without worrying whether Wall Street will downgrade its value in the short term.

In the end, the advantages of selling TXU to a privately held company far outweigh the disadvantages for both the consumers and for the state at large. Bringing this kind of private investment to our state is critical to our economic future, for Texas jobs and for lower energy rates.