Yale SOM - Environmental Defense - TXU - 08-027

 

The War over New Coal Plants


When it announced its plan to build new coal-fired electricity generation plants, TXU became known as the national leader for using coal to generate electricity. In keeping with its investment strategy, TXU had also lobbied against mandatory measures for CO2 reduction, which had been championed by environmental groups and introduced in Congress as one way to reduce the risk of global warming. (Specifics of TXU's proposed new plants and its national strategy are discussed under the TXU tab.)

Environmental groups immediately targeted TXU, and EDF and other environmental groups litigated against TXU's expansion. In addition, EDF began a campaign to arouse public anger against TXU's proposals. EDF ran local and national ads, which proved effective in raising money to further the public information campaign and fund the litigation. Marston describes the concerns of EDF in the video below.

TXU, however, had considerable pull in the Texas political establishment. In late 2005, Rick Perry, the Texas Governor, issued an executive order giving TXU a "fast track" to streamline the permitting process. EDF and other environmental groups sued the governor, arguing that  his issuing a fast-track order exceeded his authority.

EDF reached out to other groups and was able to mobilize a coalition against TXU that included the mayors of Dallas, Houston, and many of the small towns near the proposed sites. Other celebrities and business leaders joined in the effort to block TXU.

A February 5, 2007 Fortune article (here) outlines the opponents and TXU's response. 

In January 2007, Congressional leaders warned publicly (here) that TXU should not assume that the proposed coal plants would be exempt from new legislation limiting carbon emissions.

Other activists staged street theater actions (here and here) targeting financial interests funding the proposed plants, particularly Merrill Lynch. 

News coverage of the battle, including estimates of some of the costs, and details of EDF's response to TXU's plans are in the tabs above.