The Federal Energy Regulatory Commission on March 8 cleared Oncor Electric Delivery Co. LLC's proposed acquisition of InfraREIT Inc. and its subsidiary InfraREIT Partners LP for approximately $1.28 billion.

Under the deal, Sharyland Distribution & Transmission Services LLC, or SDTS, and Sharyland Utilities LP will exchange electric distribution assets. Sharyland Utilities' management interest and limited economic interests in SDTS will be canceled and SDTS will become an indirect subsidiary of InfraREIT Partners. After the asset exchange, Oncor will acquire all equity interests of InfraREIT.

Sharyland Utilities will be turned into a limited liability company, and Sempra Energy will acquire a 50% interest in it for about $98 million. Sempra is the majority owner of Oncor. (FERC docket EC19-31)

The transaction is expected to close between May 1 and Aug. 31, according to S&P Global Market Intelligence data. It still needs the approval of the Committee on Foreign Investment in the U.S, the Federal Communications Commission and the Public Utility Commission of Texas.