EnergyChoiceMatters.com

 

Energy Choice
                            

Matters

Archive

Daily Email

Events

 

 

 

About/Contact

Search

Texas PUC's Anderson Reiterates Concern Over Potential Transactions For Oncor Which Would Continue Material Debt Above Oncor

August 17, 2017

Email This Story
Copyright 2010-17 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

During yesterday's open meeting, Texas PUC Commissioner Kenneth Anderson reiterated his concerns about debt levels above Oncor in any potential transaction to acquire Oncor.

A proposed acquisition of Oncor by Berkshire Hathaway Energy would eliminate the existing debt at the Oncor parent level. Though none has been yet formally proposed, other potential transactions from rival suitors could, in contrast, leave significant debt at the parent level, above Oncor.

"I think it's fair to say that it's pretty widely understood that one of my big concerns is: what happens to the debt at EFIH, or at any entity that is up the ownership [chain] with respect to the 80% ownership in Oncor Holdings," Anderson said.

Transactions under which a material amount of debt remains, post-transaction, above Oncor will be a concern, Anderson said

Among various protections Anderson would expect if a material level of debt remains would be ensuring that the cashflow from Oncor must be protected, insofar as it must be available to go back into Oncor and fund Oncor's cap-ex

Anderson noted that the current parent debt was incurred into the original LBO of TXU Corp., or the refinancing of such debt

None of the debt ever was, nor can it be, an obligation of Oncor, Anderson said. None of the principal, or interest, can ever go into rates, Anderson said

ADVERTISEMENT
NEW Jobs on RetailEnergyJobs.com:
NEW! -- Sales & Marketing Manager -- Retail Supplier
NEW! -- Branch Manager -- Energy Sales -- DFW
NEW! -- Branch Manager -- Energy Sales -- Ohio/Columbus
NEW! -- Manager/Director, Regulatory Compliance -- Retail Supplier -- Houston
NEW! -- Senior Energy Advisor
NEW! -- Branch Manager -- Energy Sales
NEW! -- Energy Advisor
NEW! -- Director of Supply -- Retail Supplier -- Houston
NEW! -- Operations Manager -- Retail Supplier
NEW! -- Indirect Sales Manager -- Retail Supplier -- DFW
NEW! -- Manager, Supply & Pricing -- Retail Supplier -- Houston
NEW! -- EDI Transactions Manager -- Retail Supplier -- Houston
NEW! -- Senior Pricing & Structuring Analyst -- Retail Supplier -- Houston
NEW! -- Manager, Billing -- Retail Supplier -- Houston
NEW! -- Pricing Analyst -- Retail Supplier -- Houston
NEW! -- Operations Supervisor -- Retail Supplier -- Houston

Email This Story

HOME

Copyright 2010-16 Energy Choice Matters.  If you wish to share this story, please email or post the website link; unauthorized copying, retransmission, or republication prohibited.

 

Archive

Daily Email

Events

 

 

 

About/Contact

Search