FERC approves NextEra takeover of Texas transmission company Oncor
FERC approved the takeover of Texas power transmission owner Oncor Electric Delivery Co. by NextEra Energy.
Oncor is part of bankrupt Energy Future Holdings Corp., with Energy Future’s power plants in Texas spun off late last year to creditors and now operating under the name Vistra Energy.
On Nov. 1, 2016, Oncor Electric Delivery, NextEra Energy, EFH Merger Co. (Merger Sub), WSS Acquisition Co. and T&D Equity Acquisition sought FERC authorization for Oncor to dispose of its jurisdictional facilities through a series of transactions. The jurisdictional facilities involved consist of Oncor’s tariffs, Oncor’s ownership interests in interconnection facilities, and associated contracts, books and records.
Noted the Jan. 5 FERC order: “Although Applicants state that the Proposed Transactions may not require authorization under FPA section 203 (a)(1), Applicants nevertheless seek prior authorization. This order authorizes the Proposed Transactions without making any determination of jurisdiction.”
Oncor is an electric transmission and distribution utility that delivers electricity pursuant to cost-based rates approved by the Public Utility Commission of Texas. Oncor owns a 100 MW undivided interest in the East high-voltage direct current (HVDC) interconnection between the Electric Reliability Council of Texas (ERCOT) region and the Southwest Power Pool (SPP) and provides interconnection and transmission service under three FERC-approved tariffs.
Oncor is directly owned by: Oncor Electric Delivery Holdings Co. with an 80 percent ownership interest; Texas Transmission Investment with a 19.75 percent ownership interest; and Oncor Management Investment with a 0.22 percent ownership interest.