FORT WORTH- “Two environmental groups say it’s far from assured that Dallas-based Energy Future Holdings will be able to meet its obligations to reclaim East Texas coal mines if the big utility files for bankruptcy and the mines are closed in the future.
The Sierra Club and Public Citizen said Wednesday that a new study shows that EFH subsidiary Luminant Generation, the state’s biggest power producer, hasn’t been required to put up money aimed at covering the cost of restoring tens of thousands of acres disrupted by lignite mining. Those mines feed power plants operated by Luminant.
Instead, the study by the Institute for Energy Economics and Financial Analysis shows that the Texas Railroad Commission has allowed EFH’s Luminant Mining to pledge assets of a sister company, Luminant Generation, as a self-bond. Those multiple self-bonds add up to about $1 billion, study author Tom Sanzillo said.
The groups want the Railroad Commission to demand cash or an equivalent guarantee so state or federal taxpayers won’t face the possibility of paying for the mines’ reclamation…”
By Jim Fuquay, Star Telegram
Also published in the Dallas Business Journal