Less than a year after a group of four private equity funds banded together to acquire Texas Genco Holdings, Inc. from CenterPoint Energy for $3.7 billion, the buyers are proposing to sell Texas Genco to NRG Energy Inc. for $5.8 billion in cash and stock in a deal that confirms the red-hot nature of the market for power generation assets.
Under the deal, NRG — which emerged from chapter 11 just two years ago — will pay $4 billion in cash and will give the sellers $1.8 billion in stock in NRG, which amounts to about a 25% stake in NRG. NRG also will assume an additional $2.5 billion in debt. As a result of the acquisition, NRG will become one of the country’s largest independent generators with more than 24,000 megawatts of capacity from plants in California, the Northeast, the Southeast and Texas.
2005 Weekly local football review
The local media will likely view this game as a moral victory because the Texans (0-3) at least had a chance to win the game. However, the Texans passing game generated a measly 128 yards on a 4.9 yards per pass average. The rushing attack generated 126 yards for a slightly-better 5.5 per rush average. The bottom line is that 254 yards of total offense will not win many NFL games. The defense was decent, allowing less than 100 yards rushing and keeping the team in the game for the most part. But folks, this is shaping up as a very looong season for the Texans. The Texans better beat Tennessee at home next Sunday because they have Seattle on the road and Indianapolis at home the two weeks after that one. 0-6 is looking like a distinct possibility.
Whew!
Well, as predicted, the Stros (89-73) didn’t get to celebrate winning the National League Wild Card Playoff berth until the last out of their weekend series with the Cubs (79-83) was recorded in the scorebook.
The Stros clinched on Sunday by pulling out a heart-stopping 6-4 victory over the Cubs after setting up that victory with a similarly tight 3-1 win over the Cubs on Saturday. Preceding those nerve-wracking victories were two even closer games that the Stros lost to the Cubs, 3-2 on Thursday and then 4-3 on Friday in which Stros closer Brad Lidge uncharacteristically blew a two-run lead in the ninth. Lidge came back to save both wins over the weekend.
So, the Stros make the playoffs for the sixth time in the past nine seasons as they close out the remarkably successful Biggio-Bagwell era. I was one of the few to predict that this light-hitting club could contend for yet another playoff berth, although even I wavered during the early part of the season and as recently as a month ago. But after a horrible 15-30 record in their first 45 games, the Stros were a remarkable 74-43 for the remainder of the season to lock up the playoff berth with only three less wins that last season’s club that came within a game of the World Series.
The Stros have a couple of days of rest before taking on their perennial playoff opponent, the Braves (90-72) in Atlanta on Wednesday. They will follow that game with another on Thursday in Atlanta and then games in Houston on Saturday and, if necessary on Sunday, and then a fifth game, if necessary, in Atlanta next Monday. I will post a thorough analysis of the Stros versus Braves series on Tuesday.
The real Republican deficit
Following on a theme addressed in this earlier post from last fall, this timely OpinionJournal op-ed points out that the real problem to the Republican Party represented by Tom DeLay is not his dubious ethics, but that he is devoid of ideas other than self-preservation:
The real danger for Republicans now isn’t ethics; it is that, like those 1994 Democrats, they seem to have grown more comfortable presiding over the government than changing it. No one typified this more than Mr. DeLay, who has always been more fiercely partisan than he is conservative. . .
. . . [T]he GOP Congress has become mostly about its money and muscle–and the incumbency it helps to sustain. The policy and intellectual fervor, such as it was, has all but vanished. Nothing typified that more than Mr. DeLay’s comments on September 13, when he declared post-Katrina that there was nothing left in the federal budget to cut. They had already trimmed all the fat. . .
Read the entire piece. As OpinionJournal points out, if voters come to the conclusion that the GOP’s primary ambition is simply to remain in power, then “no amount of money or muscle will save Republicans at the polls.”
Texas Medical Center players make nice
The Chronicle’s Todd Ackerman, who has done a fine job over the past couple of years of covering the divisive split between former Texas Medical Center partners, Baylor College of Medicine and the Methodist Hospital — reports today that Baylor and Methodist have entered into a settlement brokered by Texas Attorney General Greg Abbott and that Baylor and its new teaching hospital — St. Luke’s Episcopal Hospital — have decided to shelve their ongoing merger negotiations for the time being.
Whew! Never a dull moment in the Medical Center, eh?
KPMG moves to settle tax shelter class action
Battered and bruised after negotiating a deferred prosecution agreement with the Justice Department that narrowly prevented a criminal indictment of the firm, accounting giant KPMG LLP took another baby step yesterday in its plan to attempt to preserve the firm as a going concern by agreeing to submit a proposed $225 million settlement to the federal court overseeing the class action lawsuit by about 275 former KPMG clients who bought illegal tax shelters promoted by the firm. The Sidley Austin Brown & Wood LLP law firm — another defendant with KPMG in the class action — is also included in the proposed settlement, which remains subject to the U.S. District Court’s approval in Newark, N.J. Here are the previous posts on the KMPG tax shelter fiasco.
Interestingly, lead plaintiffs’ counsel in the class action is Milberg Weiss Bershad & Schulman LLP, which has a few problems of its own.
The hypocrisy of Republican outrage over the DeLay prosecution
In reading the various Republican statements (see here and here) alleging that Travis County District Attorney Ronnie Earle is engaging in an outlandish abuse of power in regard to his decision to indict House Majority Leader Tom DeLay, a thought occurred to me.
For the past several years, the Justice Department under the Bush Administration has engaged in numerous and similar abuses of power. As a result, where is the Republican outrage over the sad cases of Daniel Bayly, William Fuhs, Arthur Andersen and Jamie Olis, to name just a few?
As I have noted many times, Sir Thomas More explains in the following passage from A Man for All Seasons why it is important to uphold the rule of law to constrain the abuse of overwhelming state power, even where doing so means that the Devil himself cannot be prosecuted unless he actually commits a crime:
“And when the last law was down, and the Devil turned ’round on you, where would you hide, Roper, the laws all being flat? This country is planted thick with laws, from coast to coast, Man’s laws, not God’s! And if you cut them down — and you’re just the man to do it, Roper! — do you really think you could stand upright in the winds that would blow then?”
“Yes, I’d give the Devil the benefit of law, for my own safety’s sake!”
The Bush Administration, Mr. DeLay and many of the Republicans who are criticizing Mr. Earle failed to uphold the rule of law in preventing prosecutions of business executives whose only “crime” was to be involved in arguably questionable business transactions that, at most, should have been the subject of civil litigation. Thus, the Republicans’ irresponsible sacrifice of these executives’ careers to the mantle of fickle public opinion has now contributed to the current environment where their own attempts to take advantage of loopholes in campaign finance laws is being criminalized.
Although abuse of state power against controversial politicians should not be condoned any more than abuse of state power against unpopular business executives, the Republicans’ criticism of the DeLay prosecution rings hollow. They should have listened to Sir Thomas.
Assessing the hurricane damage to Gulf production facilities
Following on this post from yesterday, the markets continued to react to more information that indicates that damage to Gulf of Mexico offshore production and drilling facilities from the recent hurricanes is going to reduce production and exploration from that key region for an extended period of time.
That information, combined with the slow process of restarting Gulf Coast refineries, is generating one of the more unusual political ironies that America has seen in some time. As a result of the restricted energy supplies from the Gulf region, the outspokenly pro-exploration and production Bush Administration is sounding eerily like the Carter Administration from the late 1970’s, promising a national energy-conservation campaign to give Americans tips on saving energy during the winter heating season.
Langone unmasks the Lord of Regulation

You remember Kenneth Langone, don’t you?
Mr. Langone is the co-founder of Home Depot who chaired the New York Stock Exchange compensation committee that approved Richard Grasso’s $140 million pay package. As a result, he is a defendant along with Mr. Grasso in New York Attorney General Eliot Spitzer‘s lawsuit to recover alleged overcompensation paid by the NYSE to Mr. Grasso. As this previous post from over a year ago indicates, Mr. Langone does not think much of Mr. Spitzer’s lawsuit.
Well, in this delicious follow-up OpinionJournal op-ed, Mr. Langone updates us on Mr. Spitzer — who he calls “the full-time New York state attorney general and part-time fund-raiser for his political ambitions” — and his use of the high-profile lawsuit against Messrs. Grasso and Langone to promote his political career.
An interesting perspective
It is becoming clearer each day now that at least a substantial amount of the initial information coming out of New Orleans in the aftermath of Hurricane Katrina was either exaggerated or misinformation. One such piece of misinformation was that large numbers of murders were occurring as a result of gunshots.
Commenting yesterday on the fact that only seven gunshot victims had been identified in the autopsies done on the first 650 or so bodies recovered from New Orleans, Coroner Frank Minyard made the following observation:
“Seven gunshots isn’t even a good Saturday night in New Orleans.”
