NextEra Energy to purchase Oncor Electric

NextEra Energy, Inc. together with Oncor Electric Delivery Company LLC, have filed a joint application with the Public Utility Commission of Texas (PUC) requesting the approval of two proposed merger transactions.

The first transaction, which was announced on July 29, 2016, involves NextEra Energy’s proposed acquisition of the approximately 80 percent interest in Oncor, which is indirectly held by Energy Future Holdings Corp. (EFH). The second transaction, which was announced earlier today, involves the proposed merger of a NextEra Energy affiliate with Texas Transmission Holdings Corporation (TTHC), including TTHC’s approximately 20 percent indirect interest in Oncor.

The proposed transactions have a combined enterprise value of approximately US$18.7 billion, assuming a 100 percent ownership interest in Oncor by NextEra Energy.

Jim Robo, chairman and chief executive officer of NextEra Energy, said:

“NextEra Energy’s proposed combination with Oncor is a straightforward, traditional merger by a utility holding company that has one of the strongest balance sheets in the utility industry. Under our proposed combination, Oncor will be backed by a financially strong parent company with experience managing electric utility assets and a record of fiscal discipline, providing a strong foundation for the future as Oncor continues to provide its customers with safe, reliable electric service and the lowest transmission and distribution rates of any investor-owned utility in Texas. Our filing with the PUC is an important step in the process and outlines how our proposed combination will improve Oncor’s financial strength, resulting in tangible benefits for its customers, and substantially eliminate the financial risks associated with Oncor’s current ownership structure.”