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Texas State Rep.: Sharyland Should Lower Rates If It Wants To Buy Oncor, Blasts Backing From Hedge Fund Managers

December 1, 2015

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Copyright 2010-15 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

Texas State Representative Dan Flynn has written the Public Utility Commission raising concerns about the proposed sale of Oncor to various Hunt Consolidated companies, given recent customer rate experiences at Hunt's Sharyland Utilities, suggesting that Sharyland should lower its rates if its affiliate wants to be considered a "serious contender" for Oncor.

Flynn writes, "As you know, I represent a large number of Sharyland customers in Hunt County who are experiencing 'rate shock' and are having to choose between food and clothes for their families and oppressive rates. It is difficult to understand why this entity seems to be charging what we understand to be the 4th highest rate in the United States unless it is strictly for higher profits?"

"The idea of selling Oncor to these same individuals is placing at risk 2 million more individuals and of a profit driven Real Estate Investment Trust (REIT). Also, placing this purchase in a REIT brings us to Sharyland and the otherwise oppressive rates being charged to its customers for delivery. You have seen multiple examples of our concern and quite frankly, Sharyland has done nothing other than blame the Public Utility Commission for these rates and they say nothing can be done. If Sharyland wants to be considered a serious contender for the purchase of Oncor, they should consider lowering the rates on the oppressed citizens that are asking for any relief they can get. That would be a good start," Flynn writes

"The Hunt proposal seems to include a number of hedge fund investors that lost big on the 2007 TXU buyout. I believe that should be thoroughly vetted. These investors have apparently put up a large portion of the capital for this transaction using Hunt's good name. As a REIT, Oncor will collect taxes from ratepayers and instead of remitting those funds to the federal government will instead pay Hedge Fund Managers," Flynn writes

"Additionally, as Chairman of The Pensions Committee in the Texas House, I am reminded that there are $2.4 Billion dollars in pension obligations at risk with no funding/plan to address that concern and it looks like those owed a pension could be at tremendous risk under this plan. Is Texas going to be asked to bail them out so hedge Fund Managers can keep making profit," Flynn asks

"Lastly, since the purpose of this REIT would be to make the costs involved in infrastructure development are charged directly to consumers, does the proposed plan only cover development for a 3 year period when all other reviews suggest a minimum 5 year plan? Is it because if they had to show a 10 or 20 year plan that the rates would resemble Sharyland? Is this a true plan or just a reason to monetize a company for maximum profits," Flynn asks

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