Oncor Purchase of Dallas Electricity-Asset REIT in PUC Review

December 4, 2018

 

The public review period is underway in the proposed purchase by Oncor Electric Delivery Co. LLC of real estate investment trust InfraREIT Inc., which specializes in leasing and owning regulated electricity transmission assets.

Dallas-based Oncor filed a merger application with the Public Utility Commission of Texas on November 39th, listing intent to purchase InfraREIT, also headquartered in Dallas, and its subsidiary InfraREIT Partners LP for about $1.275 billion.

The application triggered a 180-day regulatory review process that could be extended to 240 days if necessary.

Review by shareholders of both companies as well as regulatory reviews by the PUC and the Federal Energy Regulatory Commission are getting underway, Oncor said, with closing expected by mid-2019.

Oncor CEO Allen Nye said his company “is the natural owner for these assets, as they are within, and adjacent to, our current transmission footprint and are a great fit for our operational portfolio.

“Our filing outlines the benefits that strong Texas ownership will bring from one of the premier builders and operators of transmission assets in the nation.”