FERC Approves TXU Buyout
The Federal Energy Regulatory Commission (FERC) has authorized the transfer of jurisdictional assets owned by Oncor Electric Delivery and TXU Wholesale through the acquisition of their parent company, TXU Corp., by Texas Holdings. The action completes FERC's limited review of the merger between TXU and Texas Holdings. The decision does not address whether or how the merger might affect retail ratepayers in the Electric Reliability Council of Texas.
FERC found the transaction will not harm competition, rates or regulation, and will not result in cross subsidization of a nonutility associate company or the pledge of encumbrance of utility assets for the benefit of an associate company.
“The commission's jurisdiction over this merger is based on those facilities of TXU's that are used in interstate wholesale power markets,” says FERC Chairman Joseph T. Kelliher.
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