TXU abandoning plant, to redeem bonds
Date: 07-Jul-04
Country: USA
Construction of a 750-megawatt, coal-fired power plant began at the Twin Oak site in Henderson County, East Texas, in 1976, but construction was indefinitely delayed in 1992 and has now been abandoned, according to a company spokeswoman.
TXU, based in Dallas, decided not to build the plant because it was not expanding its lignite operations into that area. Lignite is a form of coal.
For the second quarter, the company will record an impairment charge of about $47 million for the decision not to build the plant, according to a statement.
TXU plans to redeem portions of the Brazos River Authority Pollution Control Revenue Refunding Bonds that currently have $728.1 million outstanding.
Shares of TXU were down 15 cents at $41.20 in morning trade on the New York Stock Exchange.
