Energy Future Holdings

Energy Future Holdings Corporation was an electric utility company headquartered in Energy Plaza in Downtown Dallas, Texas, United States. The majority of the company's power generation was through coal and nuclear power plants. From 1998 to 2007, the company was known as TXU Corporation until its $45 billion leveraged buyout by KKR, TPG, and Goldman Sachs Alternatives. That purchase was the largest leveraged buyout in history.[1] As of 2019, TXU Energy is a subsidiary of publicly traded Vistra Energy.

As of, the company has been described as "struggling"[2][3]

History

The company traces its history to the beginnings of electric service in northern Texas. Predecessor companies include Dallas Power & Light (DP&L, founded 1917 with roots dating to 1882), which served the city of Dallas; Texas Electric Service Company (TESCO, founded 1929 with roots dating to 1885), which served Fort Worth and areas west of Abilene; and Texas Power and Light (TP&L, founded 1912), which served other areas of northern and west-central Texas. All three companies were owned by the Electric Bond and Share Company, a subsidiary of General Electric.

DP&L, TP&L and TESCO were connected by a single grid in 1932. The three companies were deemed to be an integrated system with the passage of the Public Utility Holding Company Act of 1935. In 1945, Texas Utilities was formed as a publicly owned holding company that owned DP&L, TP&L and TESCO. The three operating companies continued to operate separately until 1984, when they were merged into one operating company, called TU Electric ("TU" meaning "Texas Utilities"). Following acquisitions of The Energy Group plc for $10 billion in 1998 in the United Kingdom[8][9] and a power generator in Australia, Texas Utilities became TXU, and was by 2000 the fifth largest energy company in the world, after its purchase of NORWEB from United Utilities [10][11] and two municipal utility companies in Germany, Stadtwerke Kiel and Braunschweiger Versorgungs AG.[12][13]

Deregulation

In 1996, TXU merged with the parent company of Lone Star Gas, allowing TXU to become the largest provider of electricity and natural gas in the state of Texas, a maneuver which set the stage for deregulation.[14] In 2002, the state of Texas deregulated the Texas electric market, and TXU lost its monopoly on retail electric sales in northern Texas.

TXU continued to own transmission and distribution facilities, but was required to open retail sales to competition. Competitors during this time period included Champion Energy, Dynowatt, Texas Power, Entrust Energy, Reliant Energy, Bounce Energy, Direct Energy, Stream Energy, Gexa Energy, Green Mountain Energy, Cirro Energy, and Commerce Energy. Surprisingly, many utility customers opted to remain with TXU despite active retail competition. [See "Power to Choose: An Analysis of Consumer Behavior in the Texas Retail Electricity Market" with Ali Hortacsu and Seyed Ali Madanizadeh]

Environmental impacts

Energy Future Holdings owns, and has closed the mines for, four of the nation's highest emitting coal-fired power plants, which together account for approximately one quarter of all industrial/utility air pollution reported to Texas regulators. Its Big Brown (closed), Martin Lake (mines closed), Monticello (closed), and Sandow (closed) plants have been the subject of scrutiny by environmental groups for pollutants such as nitrogen oxides, mercury, and sulfur dioxides.

The Martin Lake, Big Brown, and Monticello plants ranked first, third, and fourth, respectively, in airborne mercury pollution in the United States according to company reports submitted to the EPA.[17][20] Such high levels of mercury pollution have drawn criticism for their harmful effects on child development.[20]

NOx emissions from EFH's coal plants help contribute to harmful levels of ozone in the air in Dallas and other parts of east Texas, and ozone pollution can trigger asthma attacks and respiratory problems.[20]

"Beyond TXU" campaign

The Sierra Club and allies launched their "Beyond TXU" campaign to encourage retail electricity customers to switch from EFH's TXU Energy to other retail electric providers without a connection to the EFH coal fleet. Through a variety of advertisements in the DFW area, coupled with a social media campaign, these groups have encouraged customers to visit www.powertochoose.org, a website administered by the Public Utility Commission of Texas, that provides information on retail electric providers.[20]

Environmental litigation

EFH and its Luminant subsidiary are the subject of litigation by the Sierra Club for alleged violations of the Clean Air Act at the Big Brown Plant, and in 2013 a federal district court judge ruled in favor of Sierra Club on a motion by EFH to stop or slow the case from coming to trial.[21] Similarly, Sierra Club has filed a Clean Air enforcement case against the Martin Lake Plant, and a magistrate judge in that case made a recommendation in 2013 in favor of Sierra Club on an EFH request to stop or slow the case.[22] On July 13, 2012, the U.S. Environmental Protection Agency sent EFH's Luminant subsidiary an enforcement notice under the Clean Air Act about alleged violations of the "New Source Review" provisions of the act, for actions taken by Luminant at the Big Brown and Martin Lake plants.

founded	Dallas, Texas, United States in 1912
fate	Bankrupted
defunct	2021
hq location	Energy Plaza Dallas, Texas, U.S.
industry	Electric utility
products	Electricity generation Electric power distribution Electricity retailing

Energy Future Holdings

History

Deregulation

Subsidiaries

Financial problems

Environmental impacts

"Beyond TXU" campaign

Environmental litigation

Property tax litigation

See also

External links

References

2002–2004 divestitures

2007 buyout and 2014 bankruptcy