TXU Corp., the largest Texas electricity producer, said its plan to build $10 billion of coal-fueled power generation in the state appears "consistent with" a business group's proposal to curb global warming by capping carbon-dioxide emissions.
"Neither the environment nor the public wins if we fail to replace the nation's aging power plants with new, more efficient and cleaner power-generation technologies," Mike McCall, chief executive officer at Dallas-based TXU's electricity-generation unit, said Monday in a statement.
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The companies, which also include Lehman Brothers Holdings Inc., Duke Energy Corp. and California's PG&E Corp., are calling for a market in which carbon emitters, such as power plants that don't meet reduction targets, buy credits from those who reduce output of the gases.
TXU's proposal for 11 new coal-fired units in Texas has faced opposition from big-city mayors and environmental groups while also spawning litigation. Chief Executive C. John Wilder says he wants to bring cheap, reliable power to the state. McCall said in an interview this month that TXU's expansion plan will improve reliability of power service in Texas by adding needed generation capacity and will reduce the state's dependence on natural gas, which is more expensive than coal. About 70 percent of power generation in Texas is fueled by gas, which is cleaner-burning than coal.
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