Case studies

Texas Utilities

Achieving a lucrative divestment through performance-based alliances

World top-10 energy company Texas Utilities (TXU) acquired a gas distribution business to complement its electricity business. Upon acquisition, TXU reviewed the existing maintenance and construction-contracting arrangements, combined the gas and electricity network management functions into TXU Networks, and created a single service provider branded as ENETECH. 

TXU decided to outsource maintenance and construction services through a trade sale of the in-house provider ENETECH, enabling TXU to focus on its core retail and network operations.  PA Consulting Group worked with senior management to identify key elements in a performance-based contract to shape an alliance contract between TXU Networks and ENETECH.