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TXU Shareholders File Resolution Against New Coal

| Thursday December 7th, 2006 | 2 Comments

coalpower.jpgThis is what owning shares in a company is all about: Major shareholders in TXU (Texas) filed a resolution advising the company against building new coal plants in Texas. The investors include pension funds as well as religeous organizations who are precisely the kind of investors who can safely make such resolutions. The reason is that forcing the company to innovate, encourage efficiency, and/or invest in alternative non-polluting fuels may be costly in the short term, but ultimately results in a stronger offering for investors as well as society and the environment. Short term investors are inherantly harder to convince of this.
Ironically, because of tax breaks and other misguided government incentives, coal plants, supposedly now referred to as “clean coal” have suddenly become a lot cheaper to build (see this TreeHugger post for some Niagra Falls irony). Environmental Defense has more about the dituation with TXU. Read it here.
(thx Joel!)


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  • http://jetsongreen.typepad.com Preston

    Nice. I like this. Shareholders coming out and saying, “Hey, listen, we don’t need to be short-termed and focused on analyst’s projections…just get your business in order and take on some long-term perspective, it’ll pay us in the long run if you’ll do that.”

  • http://www.environmentaldefense.org Jessica

    A group of Dallas businessmen have also come out publicly in opposition to TXU’s plans.