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NRG Energy of Princeton, N.J announced the purchase of Texas Genco. Texas
Genco has 8 generating plants and owns a 44% stake in South Texas nuclear plant
in Bay City,Tx.
This gives NRG a generating capacity of nearly 24,000 MGW.
Texas Genco was a spin off of Reliant , which also spun off
CenterPoint that now owns the transmission end of the business.
Reliant wound up owning the marketing end of the deal and merely has to
broker the power.
Texas Genco was first taken private with a deal put together by Blackstone,
KKR and others for a cash outlay of $ 900 mil and in turn sold it to NRG for $
5.8 bil and change plus NRG takes over the outstanding debt.
A consolidation of the electric power producers is needed for scale of
size, an owner must have 25,000 MGW capacity to survive ..or so they say.
Methinks we will see more consolidation of the producers and BINGO !!
they all sell out to a GE-Seimens- Toschiba consortium.
This is a similar strategy being worked in the water industry and
tollroads.A move to convert the nations interstate highways to all toll is
now growing in Texas and Florida among others. The strategy is called "
enhancing guaranteed revenue streams". The system is operated under a franchise
similar to a state lottery.
It may be amusing to watch what happens if CF rears its ugly head and
upsets the gravy train. If one thing has been driven home to people
that had a hurricane experience it is... never depend on the state or the feds.
Have your own water and electric power or become a welfare recipient of
FEMA and their partner Red Cross.
Could protecting profits be a reason for the opposition to new
energy forms ?
Richard
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