Lecture 23 - Marrying the Devil in Texas

Professor Rae discusses the case TXU v. EDF, about an electric company private equity deal that involves environmental interest groups. Professor Rae structures the discussion by contrasting the deal as viewed from the perspective of Austin, TX and Washington, DC. Actors in both locations prioritize different aspects of the deal differently. The case highlights the importance of the "customer voter base," and the role of public opinion toward both companies and their associated politicians. Professor Rae highlights how private companies can ally themselves with environmental groups to achieve mutually beneficial goals.