Hunt Companies Propose $100 Million in Rate Credits Provided Through REPs As Condition of Oncor Acquisition

The Hunt companies have proposed providing $100 million to Oncor's ratepayers as a new condition of their purchase of Oncor.

Such credits would be provided through the customer's retail electric provider, and though not explicit that REPs would only receive the credits if they pass-through the entire credit to customers, the Hunt companies said that such credits are, "to be directly paid or credited to their retail customers," and said that the credits would be implemented in a manner "similar" to rate credits issued upon the purchase of Oncor by Energy Future Holdings, in which REPs were only provided the credits upon agreeing, in writing, to wholly pass such credits through to their customers

Specifically, the Hunt companies, "are proposing a rate credit of $100 million to Oncor's ratepayers to cover the period prior to Oncor's new rates going into effect following the filing of the 2017 rate case."

"Oncor AssetCo would fund a $100 million rate credit to OEDC's [Oncor Electric Delivery Company] retail electric providers ('REPs') over a two year period to be directly paid or credited to their retail customers in three separate credits. The three credits would be paid as follows: 2016 - $25 million; 2017 - $50 million; 2018 - $25 million and allocated among customer classes using the revenue distribution adopted in Oncor's last rate case," the Hunt companies proposed

"Purchasers [Hunt] would coordinate with retail electric providers to adopt appropriate procedures for implementing the credits. A similar procedure was used to provide the $72 million rate credit to customers following the Commission's final order in Joint Report and Application of Oncor Electric Delivery Company and Texas Energy Future Holdings Limited Partnership Pursuant to PURA § 14.101, Docket No. 34077 (Feb. 22, 2008)," the Hunt companies said

The Hunt companies also committed to certain proposed changes in an Oncor rate case to be filed in 2017 that, if approved, the Hunt companies estimate will reduce Oncor's rates by approximately $125 million in the first full year as compared to the rates that would be in effect absent such changes

Docket 45188