Post by pavel on Jan 11, 2016 17:35:41 GMT -6
PUC urged to reject sale of Oncor Electric Delivery to Hunt group
Energy regulators in Texas were urged Monday to oppose the sale of the biggest power transmission company in the state, the cornerstone of a plan to allow Energy Future Holdings to emerge from bankruptcy.
Oncor Electric Delivery’s proposed sale to Dallas-based Hunt Consolidated and a group of bondholders should be denied because it may raise costs for consumers and weaken the company financially, according to Sam Chang, an attorney for the Public Utility Commission.
The questions reflect the difficulty a power company in bankruptcy has in offloading a valuable asset in a state like Texas, which consumes more electricity than any other state and wants to maintain cheap prices. While Energy Future Holdings has been working to restructure its debts in Chapter 11, Oncor is in good financial health and not directly involved in those proceedings.
The transaction would result in “unjust and unreasonable rates” and raise the risk the new owners may run short of liquidity during tough times, Chang told a public hearing that’s expected to last for several days. Oncor manages 119,000 miles of transmission and distribution lines in Texas.
Read more here: www.star-telegram.com/news/business/article54158030.html
Energy regulators in Texas were urged Monday to oppose the sale of the biggest power transmission company in the state, the cornerstone of a plan to allow Energy Future Holdings to emerge from bankruptcy.
Oncor Electric Delivery’s proposed sale to Dallas-based Hunt Consolidated and a group of bondholders should be denied because it may raise costs for consumers and weaken the company financially, according to Sam Chang, an attorney for the Public Utility Commission.
The questions reflect the difficulty a power company in bankruptcy has in offloading a valuable asset in a state like Texas, which consumes more electricity than any other state and wants to maintain cheap prices. While Energy Future Holdings has been working to restructure its debts in Chapter 11, Oncor is in good financial health and not directly involved in those proceedings.
The transaction would result in “unjust and unreasonable rates” and raise the risk the new owners may run short of liquidity during tough times, Chang told a public hearing that’s expected to last for several days. Oncor manages 119,000 miles of transmission and distribution lines in Texas.
Read more here: www.star-telegram.com/news/business/article54158030.html