Wood Mackenzie, a research firm, forecasts that most of America, including Texas, will need more generating capacity in the next few years. But so long as the regulatory outlook remains highly uncertain, the safest option for many utilities, including TXU, may be to build fewer plants — a strategy that would at least bring the consolation of higher energy prices.
By betting that they can profit from social and political change, TXU's private-equity buyers seem to be following a road much travelled by their peers in venture capital, says Josh Lerner of Harvard Business School. This strategy has been "a long time coming," he says. But he notes that it is more dangerous than private equity's traditional approach. Playing politics may prove a risky business even for private-equity's masters of the universe.
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Ajith Sankar
Mar 10, 2007 5:16 AM ET
Going Green
While individuals and business organisations are showing leadership in mitigating effects of climate change, it is … more
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