TXU Corp. told regulators Friday to disregard a threat to shut down some of its power plants because of a dispute over accusations of price manipulation and said it might even put some mothballed plants back into operation.
Chief Executive C. John Wilder acknowledged that the company had mishandled the situation and promised to "get it right the next time."
The retreat came after investors trying to buy TXU for $32 billion sharply criticized the company and said they had no intention of closing plants.
Kohlberg Kravis Roberts & Co. and Texas Pacific Group, who are leading the investor group, said they had not seen the letter threatening the plant shutdown before it was sent "and we strongly disagree with it." They said they were "strongly advising TXU" to settle its dispute.
The state's independent market monitor and the Public Utility Commission staff accuse TXU of manipulating wholesale power prices in 2005 by offering power to the state's main grid at inflated prices. The maneuvers cost consumers $70 million, regulators say.
The PUC staff has proposed a $210 million penalty. TXU is contesting the charges and separately negotiating with the PUC to avoid similar charges if peak-demand electric prices spike in the future.
Mike McCall, the CEO of TXU's wholesale power division, said Friday that "TXU apologizes for creating any perception of threatening to shut down power plants in Texas."
