The Sorry, Sad Saga Of TXU
Every once in a while, the MSM pulls out a story that simply says it all. This one from the DMN on the sorry saga of TXU is one of them:
Three days after rolling blackouts hit North Texas last April, TXU Corp. chief executive John Wilder and Gov. Rick Perry stood together in downtown Dallas to announce a plan to keep power flowing, to lower electricity prices and to clean the air.
TXU would build 11 coal-fired power plants.
Mr. Perry called it “an essential step to meeting long-term challenges.”
“We will be part of the Texas miracle,” Mr. Wilder said.
But for Mr. Wilder, the plan was meant to be more a miracle for shareholders than for consumers.
He spent the next 11 months focusing so intensely on shareholder returns that he alienated nearly every other constituency – customers, politicians, environmentalists and community groups. The company’s missteps included failing to have community relations people in place for all the cities where TXU wanted to build until six months after announcing the expansion plan; failing to recognize the importance of cutting the regulated electricity rate; and failing to pay enough attention to key legislators.
The way Mr. Wilder’s company dealt with the public backfired, causing outrage that damaged the share price, killed the coal plan and set the stage for a buyout of the company.
It’s a fairly lengthy story, but worth your time. Check it out.
Written by Vince Leibowitz
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