8 May 2007 — TXU Corp. said in a filing with the Securities and Exchange Commission on Monday that it would take a $713 million pretax charge in the first quarter for stopping development of eight coal-fired power plants.
The first-quarter charge will total $463 million after taxes, TXU said. The company also expects to take a charge of about $79 million in the second quarter to cancel equipment orders. It negotiated cancellation of those orders in April.
The Dallas-based company said it also is exposed to up to $150 million of termination and suspension costs for other equipment purchases and construction agreements tied to the scaled-back coal program. TXU said the amounts can’t be reasonably estimated yet because they could be subject to dispute.