Sempra Energy has modified its $9.45 billion plan to acquire Oncor Electric Delivery Co. in an attempt to win approval from Texas regulators.
Sempra said Wednesday it woud buy all of Energy Future Holdings Corp., the parent of Oncor.
The application will include 47 regulatory commitments and a new financing structure, under which Sempra Energy proposes to now acquire 100 percent of EFH at the close of the transaction with no third-party equity investors or EFH debt.
“Since we announced our transaction in August, we have met with many stakeholders to gain their perspectives on how we can best meet the needs of Oncor customers and the state of Texas,” said Debra L. Reed, chairman, president and CEO of Sempra Energy. “Our application responds to their feedback and details our financing plan and regulatory commitments, as well as our approach to resolving the long-running EFH bankruptcy proceeding. Our goal is to keep Oncor strong, independent and well-capitalized for the benefit of Texas customers. Our revised financing structure also will provide long-term value to our shareholders.”
The San Diego-based company narrowly topped a bid by Warren Buffett’s Berkshire Hathaway Inc. to acquire Oncor in August.
“This filing highlights Sempra Energy’s support for Oncor customers and supports the Oncor mission: providing safe, reliable and affordable electric service to over 10 million Texans,” said Bob Shapard, CEO of Oncor. “Sempra Energy’s strong ring-fence protections demonstrate how they will be a good long-term partner for Texas. We also are pleased that, with this new financing structure, several of the key stakeholders have expressed interest in entering into constructive regulatory settlement discussions.”