Oncor, Sempra announce Energy Future acquisition settlement support

By Caroline Salls

Pittsburgh, Jan. 25 – Oncor Electric Delivery Co., LLC and Sempra Energy announced Thursday that the Energy Freedom Coalition of America, Nucor Steel and Golden Spread Electric Cooperative Inc. have joined a group of settling parties related to Sempra’s pending acquisition of Energy Future Holdings Corp., which includes Energy Future’s indirect, roughly 80% ownership of Oncor.

According to a Sempra news release, nine of 10 intervenors in the proceeding have now agreed to the settlement, marking “a significant step forward for Sempra Energy’s proposed acquisition of EFH and its stake in Oncor.”

Stakeholders that previously signed on to the settlement agreement include the staff of the Public Utility Commission of Texas (PUCT), the Office of the Public Utility Counsel, Steering Committee of Cities Served by Oncor, Texas Industrial Energy Consumers, the Alliance for Retail Markets and the Texas Energy Association for Marketers.

On Jan. 5, Oncor, Sempra and the staff of the PUCT jointly asked the PUCT to approve the acquisition, consistent with the governance, regulatory and operating commitments in the settlement agreement.

Sempra said the nine settling parties have agreed that the acquisition is in the public interest, meets Texas statutory standards and provides tangible and quantifiable benefits.

As previously reported, Sempra entered into an agreement to acquire Energy Future on Aug. 21. The U.S. Bankruptcy Court for the District of Delaware approved Energy Future’s entry into the merger agreement with Sempra in September, and, in October, Sempra and Oncor filed a joint change-in-control application with the PUCT.

The PUCT is expected to complete a review of the joint application by early April.

On Dec. 12, the Federal Energy Regulatory Commission issued an order authorizing Sempra’s acquisition of Energy Future, subject to customary conditions.

Sempra said closing of the transaction remains subject to further approvals by the bankruptcy court and the PUCT, among other approvals and closing conditions.

Energy Future is a Dallas-based power generation company and utility operator. The company filed for bankruptcy on April 29, 2014. The Chapter 11 case number is 14-10979.

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