It's one of the most despicable things we've heard in some time. Facing a $210 million penalty for allegedly manipulating the power market in Texas, TXU said it would be compelled to shut power plants.

TXU may insist that this is simply a statement of financial reality. But, forgive us, this smacks of blackmail. We can read between the lines: Unless you want sky-high energy prices, back off the penalty.

So let's see if we have this right. Regulators accuse TXU of having its hand in the cookie jar, and the utility's response is to hint that it might just smash the cookie jar unless it gets a pass on the original offense.

We had hoped, with the pending acquisition by Texas Pacific Group and Kohlberg Kravis Roberts, that TXU's culture was becoming less confrontational at the same time it was promising greener energy. Like many in this state, however, we've grown tired of TXU's energy gamesmanship. That tactic is dangerous, destabilizing and not tolerated in world markets. It shouldn't be tolerated in Texas, either.

TXU started down this road of eroding credibility with the dire prediction that unless the company built 11 coal-fired power plants, the state would face blackouts. That's been refuted; three coal-fired plants are on the drawing board instead of 11. But now they're considering mothballing power plants as the state enters the high-energy-use air-conditioning season?

Ironically, the company is making a strong case for Austin lawmakers to curtail market share of TXU-type power generators. Not all parts of these bills – for example, a requirement that energy generators not control more than a certain percentage of generating capacity in a region – are good for the future of Texas' deregulated energy market. Nonetheless, such is the understandable political backlash to TXU.

The energy market in Texas is broken, and the fixes must encourage balanced competition, a firm foundation for power providers and price stability for consumers. But as long as TXU engages in gamesmanship, the company is doing itself, energy competition and its customers more harm than good.