Corporate News: Big Texas Power Provider Seeks New Rules — Debt-Laden Energy Future Holdings Wants State to Allow Extra Payments for Electricity Generated in Times of Scarcity
Energy Future Holdings Corp. is requesting that new laws be put in place in Texas to increase the company’s revenue. The company has had total losses of $17.6 billion since 2007, when it was created. It lost $3.36 billion in 2012 and has hired a team of financial experts to help solve the problem of its overwhelming debt. Unlike the company predicted, electricity prices have failed to rise, as energy sources like natural gas are becoming more popular. Struggles with debt come at a time when Texas is struggling to meet the electricity demand. Energy Future Holdings argues that certain regulation would increase revenue and allow the company to build more plants. The company has even donated money to candidates, such as Texas Governor Rick Perry, who promote favorable regulatory action.
Ultimately, those who oppose this type of government regulation argue that Energy Future Holdings will use its extra revenue to pay off its debt rather than satisfy the the electricity demand of the state.
Written by: Constantine Kostikas
Source: The Wall Street Journal