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Welcome to Texas where nobody's life nor property is safe when the Texas
Leg is in session.
Keep you eye on the magician's sparkler. If you take you eyes off you not
be playing according to the rules. Once upon a time there was a company called
Houston Lighting and Power ( HL&P). It was a wonderful company making money.
The same guys that sold the king his new set of clothes got control of it
and split it into Reliant, spun off Centerpoint and Genco and a few other
entities we wont mention. The Texas Leg agreed the powerplants and the South
Texas Nuclear plant was worthless and they worked a deal so the investors could
recover their " stranded costs". A cute description for " we got stuck with
junk" and its all the State's fault. The state puts up the bonds for sale to pay
the power companies who in turn will raise the rates to pay the bonds. They will
also close down the old plants because of the cost of installing pollution
control systems.
Or rather, thats the story told the public. They actually sell the plants
to the next guy down the ladder and they come to the state with the same
story.
Meanwhile Reliant and others saw a birdnest on the ground and suddenly the
old plants would cost " much" more to shutdown after the auditors and
CEO's finished adding numbers to cucumbers while performing wonders.
In the ongoing saga of Texas, A group of investors took Genco private
last December for $ 3.7 bil. This week they announced they planned to
sell $ 600 mil in stock in a public offering which is near the
$781mil of cash they actually used to buy the 3.7
Bil Genco. Genco owns 11,122 megs of power capacity including
44% of the nuke plant that costs 8-13 bil alone to build .
Goldman Sachs is part of the deal making it fun because they have a power
trading company that just happens to be under contract for 25% of Genco's
capacity thru 2009.
There is gold in them thar hills!! no wonder Bush is not interested in
solving the energy and pollution problems we have.
He and Wall Street HAVE the solution.... Rob everyone blind and form a
committee to study windmills.
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