Texas legislators worked out a compromise late Wednesday that will force a
separation of TXU Corp.'s three business units but not require any sales of
those units or additional oversight of the $45 billion buyout by Kohlberg
Kravis Roberts & Co. and TPG. The bill is expected to be voted on by both
houses Friday before the legislative session ends May 28. The compromise
includes a House bill provision giving state regulators oversight over future
sales of electric delivery companies, authority to audit TXU's books to ensure
its units don't share information or favor each other in any dealings and
increased authority to penalize companies that manipulate the wholesale power
market. The House and Senate passed different versions of a bill that could
have forced TXU to sell some units or power plants, which KKR threatened could
result in it walking away from the deal. —Claire Poole
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story from The Fort Worth Star Telegram
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story from Reuters
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