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Energy Future Holdings PUCT Bankruptcy Order Issued

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The Public Utility Commission of Texas (PUCT) filed with the U.S. Bankruptcy Court a notice to advise the Court that the PUCT has entered an order that addresses the joint report and application of Oncor Electric Delivery Company and NextEra Energy for PUCT approval of transactions by which NextEra Energy would acquire all equity interests in Oncor Electric Delivery Company. Based on the evidence and testimony presented during a hearing held by the PUCT, the PUCT finds that the transactions described in the application are not in the public interest under Public Utility Regulatory Act (PURA) Sections 39.262(m), and 39.915(b). Therefore, the application is denied.

According to documents filed with the Court, “The joint report and application filed by NextEra Energy and Oncor proposed transactions by which NextEra Energy would acquire both the approximately 80% interest in Oncor indirectly held by Energy Future Holdings and the 19.75% interest indirectly held by Texas Transmission Holdings. In addition, the application also discussed NextEra Energy’s agreement to purchase the 0.22% interest in Oncor held by Oncor Management Investment, subject to closing the proposed transaction with Energy Future Holdings. As a result of these proposed transactions, NextEra Energy would own all of the equity securities of Oncor. NextEra Energy intended to fund $12.2 billion in order to obtain 100% of Oncor. Of this amount, $9.8 billion would be used to obtain the 80.03% stake in Oncor currently held indirectly by Energy Future Holdings.”

In addition, “The financing of the $9.8 billion was to include approximately $7.5 billion in debt funding financed at NextEra Energy. Capital Holdings. In addition to the $9.8 billion, $2.4 billion would be used to obtain the 19.75% interest held by Texas Transmission. Holdings, and NextEra Energy proposed to pay for this acquisition in cash….It is inappropriate for NextEra Energy to attempt to amend its application to request different relief in a motion for rehearing. To the extent, however: that NextEra Energy is deemed to have requested that the Commission approve the single transaction with Texas Transmission Investment, the Commission finds that NextEra Energy has failed to meet its burden of proof to show that any single transaction is in the public interest, and so that request is denied. The Commission considered whether the proposed transactions, as a whole, are in the public interest, and the Commission’s denial of the application applies to each of the transactions described in the application.”

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The post Energy Future Holdings PUCT Bankruptcy Order Issued appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.


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