Canceling plans for coal plants leaves Texas in a jam

With population surging, state must keep the energy flowing

HOUSTON

That hole just got bigger as the TXU Corp., the state’s largest utility, scrapped eight new coal-fired plants under a deal it has agreed to with potential new owners. The deal has delighted many environmentalists, but it has also stoked one Texas-size problem.

Unless new generation is built quickly from some source, Texas energy production in 2009 will fall below reserves recommended by the state operator of the power transmission grid for guaranteeing smooth operations during peak periods of high heat.

NY Times