Hunt Requests Approval to Purchase Stake in Oncor

Hunt Requests Approval to Purchse Stake in Oncor

Two companies have applied to the Public Utility Commission of Texas (PUCT) requesting approval of a proposed ownership sale as part of a bankruptcy proceeding.
Hunt Consolidated Inc. said its affiliates jointly filed an application with Oncor Electric Delivery Co. LLC for the sale of Energy Future Holdings’ (EFH) 80-percent stake in Oncor as part of EFH’s bankruptcy. If the sale is approved, Hunt and its consortium will acquire EFH’s current stake in Oncor and restructure it into a real estate investment trust (REIT), and Hunt would assume full operational control of Oncor by mid-2016.
Under the plan filed with the PUCT, Hunt would purchase the stake and restructure it into an asset company, which would be a subsidiary of a REIT currently known as Ovation Acquisition I LLC. The asset company would continue to own the physical transmission and distribution towers and poles, wire conductors, and other assorted components and equipment. The asset company would lease the T&D assets to Oncor, who would operate the system on the REIT’s behalf.
A new operating company would be created and would keep the Oncor name, with the headquarters remaining in Dallas, Texas. The company would be responsible for the day-to-day operations, maintenance and construction of the existing system. The operating company would be controlled through Shary Holdings LLC, a unit of Hunt.

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