TXU’s operation company, Energy Future Holdings, recently experienced the fifth straight quarterly loss. The Dallas-based company took a hit of $304 million while the prior quarterly loss was about $362 million per year.
Energy Future continues to search for solutions. It sought to decrease the risk of default by extending debt maturities and requesting bondholders to exchange holdings for cheaper rates. The company’s debt increased about 2.7 percent from $40.5 billion to 41.6 billion from the end of last year to now.
To add insult to injury, the company has also experienced a major decline in sales, falling about 27 percent to $1.22 billion in the first quarter of the year. Interest rates have also increased about 22 percent to about $785 million from a year ago.
In 2007, the company was sold for 43.2 billion to a group led by KKR & Co. and TPG.
TXU may or may not be the provider for you. If you live in a deregulated area, you can choose amongst multiple electricity providers. The choice is up to you, not the government.
Texas became deregulated in 2001, making the Lone Star State more competitive in the energy market. Deregulation has made it easier for TXU and other energy providers to open up competition in locations it wouldn’t otherwise service. If you’re interested in seeing TXU’s rates, go to its website or contact a company representative. You then can compare its rates with ours which can be found by using our compare chart.