The proposal by Hunt Consolidated to purchase Oncor using the financing vehicle of a Real Estate Investment Trust (REIT) has been withdrawn. On May 18, Hunt Consolidated requested that the Public Utility Commission of Texas (PUCT) vacate its previous order approving the acquisition of Oncor, with conditions, and dismiss the proceeding. At its regularly scheduled meeting of May 19, the PUCT rejected the request by Hunt Consolidated for rehearing by which Hunt sought reversal of the conditions imposed in the PUCT's conditional approval of the acquisition back in March. In its approval of the acquisition, the PUCT had indicated that it would require the benefits of using the REIT financing vehicle to come back to ratepayers in a subsequent proceeding.
While the next steps in the Oncor/Energy Future Holdings saga are unclear, new suitors for Oncor's assets are likely to emerge with NextEra seen as a likely candidate. Hunt Consolidated has stated its intent to continue its efforts to acquire Oncor but the use of the REIT approach for financing the transaction is unlikely to survive a second try with Texas state regulators.
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