Oct 5, 2007 6:25 pm US/Central
TXU Unit Agrees To $72M In Customer Credits
DALLAS (AP) ―
An arm of TXU Corp. said Friday it has agreed to give $72 million in credits to electricity customers to settle issues in a regulatory review of the $32 billion sale of TXU.
The deal also would dismiss a pending rate case involving Oncor Electric Delivery, TXU's distribution arm.
TXU, the largest power generator in Texas, said the agreement would be filed Friday with the Public Utility Commission.
Several groups filed to intervene in the PUC's review of the sale of Oncor to private investors led by Kohlberg Kravis Roberts & Co. and TPG Capital, formerly known as Texas Pacific Group. Oncor is the only part of TXU subject to PUC regulation.
The TXU buyers negotiated all week with the outside groups to settle their complaints and complete the PUC review of the sale.
Members of the PUC are scheduled to begin a hearing on the TXU sale Monday. They cannot block the sale of the Dallas-based company, but they have the power to approve Friday's settlement or make changes to it.
Oncor said it expected the rebates to go directly to customers and not to electric retailers, such as TXU Energy, Reliant and Green Mountain. The retailers can pass the rebate to customers or keep it.
Oncor also said it would incur a $35 million write-off this year or next to its storm reserve, and a $21 million write-off this year or next for previous restructuring expenses.
The company has agreed to spend at least $3.6 billion on capital improvements through 2012.
Oncor operates more than 115,000 miles of transmission and distribution lines that connect about 3 million homes and businesses to the power grid.
The sale of TXU has been approved by federal regulators and TXU shareholders. It is expected to close in the next several weeks.
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