| NEW YORK
NEW YORK May 8 Florida utility company NextEra
Energy Inc asked Texas regulators on Monday to
reconsider a decision that threatens to kill its roughly $18
billion bid to acquire bankrupt Energy Future Holding Corp, the
majority owner of Oncor, Texas' largest power network.
The request, announced in a public filing, keeps the deal, a
key part of Energy Future's plan to exit its three-year-long
bankruptcy, alive for now. The three-member Public Utility
Commission of Texas has until June 7 to respond to NextEra's
request, said Terry Hadley, a spokesman for the regulators.
Hadley said regulators were reviewing NextEra's request.
NextEra said in its motion for rehearing that the regulators
went beyond the scope of their powers when they decided earlier
this year that its proposal for Energy Future was not in the
public interest and was too risky for ratepayers.
NextEra argues the deal would actually help the financial
health of Oncor because it could lead to an upgrade of its
credit rating and eliminate legacy debt.
NextEra declined to elaborate beyond the filing. Energy
Future declined to comment.
One factor in the efforts to complete the acquisition is a
$275 million breakup fee if the deal fails due to certain
This is the second proposal to sell Oncor that has met
resistance from regulators. A separate plan to sell the power
network to a group of creditors and investors led by privately
held Hunt Consolidated Inc of Texas collapsed in 2016 after
hitting obstacles from the commission.
The commission had said of NextEra's proposal that it was
concerned about the debt of the combined company, the
independence of Oncor's board and payments to the parent company
at the expense of Oncor.
(Reporting by Jessica DiNapoli; Editing by Peter Cooney)