TXU Coal Plan All About Locking Up Texas Energy Market, Discouraging Innovation - Star-Telegram

[hatrack]

In a deregulated market, the government isn't supposed to pick winners and losers. But TXU's request to build 11 coal-fired power plants puts Texas in the position of kingmaker. So far, the debate has been mainly about the plants' effects on air pollution and global warming, which will be the focus of state hearings.

But let's not overlook the impact on competition and innovation. TXU is already the state's largest power producer. Add $10 billion worth of low-cost coal plants in one fell swoop, and the Dallas utility may lock up much of the market before anyone gets the chance to experiment. "We could have excess power capacity for at least 10 years, and that would pretty much exclude all the new technologies from entering Texas," said David Litman, a Dallas entrepreneur who founded hotels.com.

Litman leads a large group, Texas Business for Clean Air, that opposes the TXU plan and is lobbying the Legislature to delay TXU's request. Dozens of prominent business leaders are on board, including developer Trammell S. Crow and the chairman of The Container Store, Garrett Boone. Usually, those are the kind of guys who support TXU and any business expansion, particularly something as crucial as electricity. But they say the plants would be bad for business because more air pollution threatens federal funds, discourages corporate relocations and makes it tougher to recruit talent to the area.

EDIT

In Texas, unfortunately, we already have both. Toyota and Boeing scratched North Texas off their lists of possible manufacturing sites because of air quality. And electricity prices have been among the country's highest since deregulation began early in the decade.

EDIT

http://www.dfw.com/mld/dfw/business/16747126.htm

[Dover]

1. Fascinating that the heart of Texas (Austin) has one of, if not THE biggest collections of

Green Building designers/engineers/architects/builders/landscapers/innovators in the U.S. if not the world. They are always off lecturing somewhere in the world. It's also been very encouraging to see these ideas becoming more mainstream (though there is also a strong contingent who also supports the hands on/owner built sustainable residences too).

And in the same state you have probably the biggest collection of dinosaurs and old century money/industry types in the country.

It's always a battle to the death!!!

Sadly saw another huge rolling ranch along hwy. 71 sw of Austin has probably folded and soldout to McMansion Ranchettes. WHEN WILL IT STOP???!!!!!!!! It will be interesting to see if the real estate market bust even makes Central Texas developers and banks flinch.