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Non-Profit Partners
University of Houston
KPFT 90.1-FM
HMS Cable-Access Ch. 17
FACT SHEET / KEY STATS
1973: South Texas (nuclear electric) Project approved by
PUC.
1978 : Projected initial startup @ approximately $570
million cost by HL&P
Aug. 1988 & June 1989 : Actual initial startup @ $4.561
billion in book value of actual costs
10 years behind schedule and 800 percent over budget
repeated shutdowns for leakage and for failed safety
inspections
12,200 acre site on Colorado River, 90 miles downwind of Houston,
southwest near Bay City.
14,175 megawatts twin reactors
1996 : First nuclear plant in Texas
Largest two nuke reactors in U.S.
Two of top 20 nuke electric generating units worldwide
1999 : Texas Electric Choice Act - passed by voice vote
in state House and Senate. No record of votes.
"Deregulates" electricity and sweetheart deal to bailout "phantom"
stranded costs.
Big 3 nuke operators blocked deregulation until legislators agreed
to foist "stranded costs" on consumers. Liability of a bad business
decision shifted to 1.8 million ratepayers.
Reliant Energy splits into deregulated Reliant Resources and
PUC-regulated CenterPoint Energy.
Reliant Option Agreement" gives Reliance right of first refusal to buy
back CenterPoint assets. Shows "intent" to bundle CenterPoint with
liabilities to sustain its claim to "stranded costs" and then buy it
back after the windfall "true up."
2001 House Bill 2107 - defeated by recorded vote.
Would force nuclear utilities to return any stranded-cost
overcharges to ratepayers.
Co-sponsors: Rep. Sylvester Turner, D-Houston;
Kevin Bailey, D-Houston and John
Longoria, D-San Antonio.
Primary opponent Rep. Steve Wolens, original sponsor of 1999
law.
Supported by conservative Democrats and all Republicans
April 2004 : Big 3 file "true up" for balance of
"stranded costs."
Central Point Energy: ratepayers owe $4.4 billion
= $3.794 billion invested + $631 million interest
Mayor Bill White: ratepayers owe $2.2 billion
Texas Consumer Advocate: ratepayers owe nothing.
2003 : Texas Supreme Court case pending to recoup
stranded costs
June-July 2004 : PUC hearings for 3 weeks on stranded
costs in Austin. Decision expect in August.
Houston Chronicle does two stories in business section.
Corpus Christi Caller-Times does one story.
Houston TV stations: zero stories.
2004 - 2019 : Ratepaying families will pay an extra $10
per month for 12 years =
Bottom line: $1,440 per family
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Corporate Upper Class
In the midst of the largest electrical deregulation case in history, the main player, CenterPoint Energy, has inked a deal to sell its generating assets, Texas GenCo, to a group of private investors for $3.65 billion – a higher number than both CenterPoint and Wall Street set for the company’s value.
Hearings for the $4.4 billion CenterPoint “stranded costs” case have concluded at the Public Utility Commission, but the PUC will probably not rule on the case until the end of August at the earliest. Although CenterPoint has been taking bids to sell Texas GenCo, many parties close to the case expected the sale to happen after the commission’s decision. What effect the sale will have on the hearings is up in the air.
“This is unknown territory here,” said Terry Hadley, spokesperson for the PUC. “It’s unclear what if any effect this sale would have to the commissioners.”
There is nothing in the rules or regulations that would prohibit the sale of GenCo, Hadley said. And the end result for CenterPoint would remain the same. If CenterPoint is awarded all that it is seeking, electricity bills will increase by approximately $10 a month for the next 12 to 15 years – for about 85 percent of Houston households.
Hadley said that the commissioners could reopen the case for more information in regards to the sale or could consider the sale in some relevant fashion without being a part of the specific hearings.
CenterPoint said it expects the deal to generate cash proceeds of $2.9 billion, or $45.25 a share, for its 81 percent stake in Texas Genco. The other 19 percent is publicly owned and would be bought first by CenterPoint for $47 a share. Then the entirety of Texas GenCo would be sold to GC Power Acquisition LLC, an entity owned equally by affiliates of the Blackstone Group, Hellman & Friedman LLC, Kohlberg Kravis Roberts & Co. and Texas Pacific Group.
CenterPoint said it will use its proceeds to reduce debt and concentrate on its energy delivery business. As of March 31, CenterPoint had a total of $10.71 billion in long-term debt.
For more in depth analysis check this story from TheStreet.com
http://biz.yahoo.com/ts/040722/10172979_3.html
And from the Houston Chronicle:
http://www.chron.com/cs/CDA/ssistory.mpl/business/2694870
© Copyright World Internet News 2006-07
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