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Sempra Revising Oncor Purchase Plan

A revised financial structure for Sempra Energy’s proposed $9.45 billion purchase of the holding company of Oncor Electric Delivery Co. LLC was expected to be filed Thursday with Texas regulators.

During a conference call Wednesday Sempra management expressed confidence that the deal to buy Energy Future Holdings Corp. (EFH) would be approved by the Texas Public Utilities Commission.

Since announcing plans to acquire the Oncor holding company in August, Sempra CEO Debra Reed said feedback from several Texas stakeholders has led to the transaction being reconfigured to eliminate third parties and debt. In addition, key stakeholders have agreed to continue settlement talks.

"Our application responds to feedback and details our financing plan, along with regulatory commitments," Reed said. Sempra's goal is to keep Oncor "strong, independent and well-capitalized."

Reed said stakeholder concerns about the level of EFH debt prompted the revised plans. Sempra wants to have 100% ownership of Oncor, but it also sees value in having a unit of Texas Transmission Inc. own 20%, she said.

Moving forward, the two biggest milestones would be the timing for closing the transaction and the types of equity issued, she said.

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