Oncor, Inc. (fka ONCR)

[mrbnew]

So I take it this article is incorrect??

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.

"We want the PUC to oversee our investment in Oncor," said Michael MacDougall of TPG. "We want our commitments to have the force of law behind them. We know that we will keep our commitments, and we understand that it is important to have the PUC hold us accountable."

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.

"We made this legally binding commitment of filing voluntarily because we believe it is important for the people of Texas to know our intentions," said Fred Goltz, KKR.

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 or by emailing Jeff Eller at [e-mail]


Contact: Jeff Eller
Texas Energy Future Holdings Limited Partnership
512-432-1760
[e-mail]