Portal of Dallas logo

Portal of Dallas

KKR and TPG Voluntarily File Commitments for TXU Electric Delivery With Public Utility Commission of Texas

Date posted: April 2, 2007

Texas Energy Future Holdings, Limited Partnership (TEF) today made an initial filing with the Public Utility Commission of Texas (PUC) setting forth its commitments regarding TXU Electric Delivery (to be renamed Oncor). These commitments will be binding upon successful completion of the acquisition of TXU Corp. TEF is the holding company formed by Kohlberg Kravis Roberts & Co. (KKR), Texas Pacific Group (TPG) and other investors to acquire TXU Corp.

This voluntarily expedited initial filing means the PUC will have direct authority to hold the investors legally accountable to their commitments once the transaction closes.

TEF made its filing today with the PUC in anticipation of its voluntarily expedited 14.101 filing, which allows the PUC to review the buyout transaction. That filing will be made no later than April 25, 2007.

TEF is legally committing to hold a majority of its ownership stake, in the current regulatory system, for a minimum of five years, and committing that TXU Electric Delivery will not incur, guaranty or pledge assets in respect of any borrowing related to financing the merger transaction. TEF is also committing to establish a separate board for each of TXU’s three operating companies and to make substantial investments in new energy efficiency programs. More details on those commitments are listed below.

The PUC filing includes the following commitments by TEF:

– On or before closing of the transaction, the name of TXU Electric Delivery will be changed to Oncor Electric Delivery Company. Oncor’s logo will be separate and distinct from the logos of the parent, TXU Corp.; the retail electric provider, TXU Energy; and the power generation company, Luminant Energy.

– At closing and thereafter, Oncor will have a separate board of directors that will not include any members from the boards of directors of TXU Energy or Luminant.

– Within a reasonable transition period after closing of the merger transaction, not to exceed six months, Oncor’s headquarters will be located in a separate building from the headquarters and operations of TXU Energy and Luminant.

– Oncor will not incur, guaranty or pledge assets in respect of any borrowing related to financing the merger transaction. Oncor’s financial integrity will be protected from the separate operations of TXU Energy and Luminant.

– TEF will limit Oncor’s debt so that its debt-to-equity ratio is at or below the assumed debt-to-equity ratio established from time to time by the Commission for ratemaking purposes, which is currently set at 60:40. For ratemaking purposes, in its next rate case Oncor will support a cost of debt that does not exceed Oncor’s actual cost of debt immediately prior to the announcement of the proposed merger transaction.

– Following the closing of the proposed transaction, TEF intends for Oncor to continue to make capital expenditures at or above current levels. Total capital spending will depend in part on economic growth, permitting and siting. However, TEF commits that over the five years following the year in which closing of the proposed transaction occurs, Oncor will make capital expenditures in connection with its transmission and distribution business in an aggregate amount of more than $3.0 billion.

– Over the five years following the year in which closing occurs, subsidiaries of TXU Corp. will expend an aggregate of at least $200 million on demand-side management/energy efficiency programs over the amount included by the Commission in Oncor’s rates. This commitment will approximately double Electric Delivery’s current level of spending on DSM. Oncor will not seek to recover in rates any of the $200 million in incremental DSM expenditures.

– Oncor will support the inclusion of negotiated commitments with appropriate stakeholders regarding reliability, customer service and employee safety in any Final Order regarding the merger transaction issued pursuant to PURA Section 14.101.

– Oncor will file a general rate case at the Commission before July 1, 2008, consistent with the utility’s currently effective settlement agreement with certain municipalities.

– TEF will hold a majority of its ownership interest in Oncor, in the current regulatory system, for a period of more than five years after the closing date of its proposed merger transaction.

A copy of the PUC filing is available at http://www.texasenergyfuture.com/

Columbine Report Transcript
Dallas Signs
Dallas Projector Rentals - Dallas Fort Worth Texas Portal
Dallas swimming pool custom builders - DFW Dallas Fort Worth ...
Dallas/Fort Worth Pets and Animals
Dallas/Fort Worth Arts/Photography Links
National Hockey League NHL- Dallas Stars News
Dallas/Fort Worth - Is My Cat Too Fat?
Submit Your Site to the Portal of Dallas
Dallas/Fort Worth Apparel/Jewelry Links
Portal of Dallas Privacy Statement
Dallas/Fort Worth Massage Services Dallas ...
National Football League NFL - Dallas ...
Major League Baseball- Texas Rangers News
Dallas/Fort Worth Weddings
Portal of Dallas Message Board TOC
Dallas/Fort Worth Activists and Advocacy Links
Dallas/Fort Worth Financial Services
Original page (without frames) "
U.S. District Court for the District of Columbia - U.S. v ...
Dallas/Fort Worth Real Estate Services
Dallas/Fort Worth Automotive Services
Dallas/Fort Worth Job Links
Submit Your Site to the Portal of Dallas
Dallas Food
Dallas Toys
Dallas Arts
Dallas/Fort Worth Education Services
Dallas News
Dallas Pets
Dallas Maps
Dallas/Fort Worth Lawyer Legal
Texas Seven Escapees - Texas Connally Seven
Dallas Film
Dallas/Fort Worth Theater and Stage
Dallas Music
Dallas Trade
Dallas Radio
Dallas gifts
George Bush Campaign Staffer Sends Video Tape to Al Gore Campaign
Dallas Fence and Dallas Fencing Contractors - D/FW Texas Portal
Dallas Bookstores
Dallas Legal
Dallas Games
Dallas Dance - Lessons
Dallas-Area Educational Facilities
Dallas Sports
Dallas/Fort Worth Shopping Malls
Dallas Beauty - Permanent Makeup - Tanning Salons
Dallas Dining
Dallas siding Company Listings
Dallas cinema and Dallas Movie Theaters
Dallas Ethnic
Dallas Health
Dallas Lawyers - Dallas Attorney Listings
Dallas Museums
Dallas/Fort Worth Transportation Services
Dallas Lodging
Dallas Massage - DFW Portal for North Texas
Dallas flowers
Dallas Science
Dallas Weather
Dallas Roof and Dallas Roofing Contractors - D/FW Dallas Fort ...
Dallas Theater
Dallas Hobbies
Dallas Fitness
Dallas history
Dallas Medical
Dallas Jewelry
Dallas Religion
Dallas politics
Dallas Weddings
Dallas Consumer Counseling - Debt Consolidation
Dallas Minority
Dallas Day Spas - DFW Dallas Fort Worth Texas Portal
Dallas Printing
Dallas Cleaning - Dallas Maid Service
Dallas Commerce
Dallas Pictures
Concrete Contractors - Dallas Concrete Company Listings - D ...
Dallas Painting Company Listings - D/FW Dallas Fort Worth ...
Dallas Education - D/FW Forth Worth Portal
Dallas household
Dallas Spiritual
Dallas Cosmetics - Permanent Makeup
Dallas Libraries
Dallas Charities
Dallas Financial
Dallas Novelties
Dallas / Fort Worth Computer Services
Dallas Computers
Dallas nightlife- D/FW Portal
Dallas Activists and Advocacy Links
Dallas Lawn Care - DFW Dallas Fort Worth Texas Portal
Dallas Recreation
Dallas Employment jobs career
Dallas Technology
Dallas Child Care
Dallas Nightclubs
Dallas Automotive Cars Trucks Autos
Dallas Apartments and Listings - DFW Dallas Fort Worth Texas ...
Dallas Industrial
Dallas Government
Dallas City Guide
Dallas Texas Business Listings
Dallas Mortgage Companies and Home Financing
Dallas Merchandise and Gifts
Spa Week is Dallas' Answer to the National Health Crisis
Domain Name Transfer Agreement - Domain Name Transfer Agreement
Dallas / Fort Worth Day Care Services Child ...
Dallas Webcams
Dallas Events and Tickets
Dallas Day Care and Child Care Services
Dallas Photography and Photographers
Dallas Classifieds
Dallas Electronics
Dallas engineering
Dallas Construction
Dallas collectibles
Dallas Pest Control - Dallas Fort Worth Texas Portal
Dallas Universities
Dallas/Fort Worth Professional Services
Texas Seven Escapees
Texas Seven Escapees
Dallas/Fort Worth Medical Health Fitness
Texas Seven Escapees
Texas Seven Escapees
Dallas Organizations
Texas Seven Escapees
Dallas Home Builders - DFW Dallas Fort Worth Texas Portal
Texas Seven Escapees
Dallas/Fort Worth Miscellaneous Services
Dallas Regional Guide
Dallas Limousines - Limo Service - Transportation
Dallas Shopping Malls
Dallas Office Products
Dallas Office Services
Dallas Water Treatment
Dallas Office Cleaning
Southwest Texas State Bobcats Basketball News
Dallas Cleaning Services
Dallas Christmas Displays and Christmas Lights
Dallas Tourist Attractions
Dallas Commercial Cleaning
Dallas Janitorial Services
Dallas Building Maintenance
Dallas Miscellaneous Services
Dallas Professional Services
Results of Hillary Clinton Harris Poll March 27, 2007
Texas Southern Tigers Basketball News
Texas Christian Horned Frogs Football News