PUC Says OK for Oncor to Get InfraREIT

May 9, 2019

 

Oncor Electric Delivery Company, the state’s largest transmission and distribution company, just got noticeably bigger after Thursday’s PUC action.

The Texas Public Utility Commission at its regular open meeting on Thursday okayed the acquisition by Oncor of InfraREIT Inc., which is owned by the Hunt family.

And at the same time, the PUC has okayed Oncor majority owner Sempra Energy‘s acquisition of a 50% interest in limited partnership for a holding company that will own Sharyland Utilities LP. which has also been owned by Hunt.

With the PUC’s blessing the last step in a regulatory process that included half a dozen agencies including the FERC, the transaction is now completed, giving Oncor control over power lines in West Texas and in the Texas Panhandle.

Oncor and Sempra announced on Oct. 18th of last year that they had entered into agreements for Oncor to buy 100% of the equity interests of InfraREIT, including all the limited-partnership units in its subsidiary InfraREIT Partners, LP, for about $1.275 billion ($21 per share or partnership unit), excluding certain transaction costs.

And the purchase of InfraREIT also includes InfraREIT’s outstanding debt of about $946 million as of March 31st..

Sempra Energy would acquire a 50% limited-partnership interest in a holding company that will own Sharyland for about $98 million.