DALLAS, July 24, 2017 /PRNewswire/ -- Today, Oncor Electric Delivery Company LLC announced an agreement with Sharyland Utilities, L.P. ("Sharyland") and Sharyland Distribution & Transmission Services, L.L.C. ("SDTS") to swap assets in a transaction valued at approximately $400 million. After successful close of the transaction, SDTS will receive approximately 258 miles of 345 kV transmission lines from Oncor, and Oncor will receive Sharyland's distribution network and retail delivery customers.
Upon close of the transaction, Sharyland customers will benefit from among the lowest rates of any investor owned utility in Texas.
"We're always looking for new opportunities to grow our business. This transaction allows us to acquire new customers and continue to expand our growing and vibrant service territory," said Oncor CEO Bob Shapard. "Oncor will be welcoming thousands of new customers, many of which are located in areas that have seen significant load growth, like the Permian Basin."
Swapping assets is a common energy industry practice and allows Oncor to gain thousands of new customers while preserving equity for shareholders. After the transaction is completed, Oncor will continue to maintain approximately 122,000 miles of transmission and distribution lines, and more than 3.4 million advanced meters.
The proposed asset swap must be approved by the Public Utility Commission of Texas (PUCT). A joint change-in-control filing from both Oncor and Sharyland will be filed with the PUCT. Change-in-control proceedings can last up to 180 days from the date of application. If approved by regulators, the proposed transaction is expected to close sometime in late 2017.
Oncor Electric Delivery Company LLC ("Oncor") is a regulated electricity distribution and transmission business that uses superior asset management skills to provide reliable electricity delivery to consumers. Oncor operates the largest distribution and transmission system in Texas, delivering power to more than 3.4 million homes and businesses and operating more than 122,000 miles of transmission and distribution lines in Texas. While Oncor is owned by a limited number of investors (including majority owner, Energy Future Holdings Corp.), Oncor is managed by its Board of Directors, which is comprised of a majority of independent directors.
SOURCE Oncor Electric Delivery Company LLC