Complicated Power Ownership Deals Could Be Finalized As Soon As PUC Meeting This Thursday

April 15, 2019

 

A regular PUC meeting this Thursday could prove to be the green-light for a billion-dollar arrangement involving several power companies that, thanks to some compromises, could also grease the wheels for Lubbock Power and Light to move to the Electric Reliability Council of Texas.

It’s its regular open meeting, the Public Utility Commission of Texas is scheduled to take up final matters in the settlement of several transaction requests dating back to last year.

At issue is a complicated set of arrangements among Sempra Energy and Oncor Electric Delivery along with Sharyland Utilities.

And that includes Lubbock Power and LIght, which would be able to make its desired move from the Southwest Power Pool to ERCOT, with Oncor building the desired infrastructure as Oncor takes over Sharyland — a notable part of the overall settlement among the companies that now appears ready for PUC approval.

San Diego-based Sempra bought an 80% stake in Oncor a year ago, and Sempra is now trying to buy a 50% stake in Sharyland Distribution and Transmission Services, while at the same time Oncor is buying electricity transmission company InfraREIT.

Last October, Sharyland announced an agreement with Sempra to co-invest in Sharyland’s South Texas utility district, a deal that also included Oncor and InfraREIT.

After months of hashing things out, there appears to be an agreement among all parties, in the process allowing Oncor to get a hold in West Texas.

The Oncor-InfraREIT deal would also include Sharyland’s Golden Spread Electric Cooperative co-connection..

After compromises were reached, PUC Chairman DeAnn Walker praised the companies for working out an agreement that appeases all parties, including the agency, which spent hours last week hearing testimony from representatives of the parties involved.