Oncor Electric Delivery Co. LLC will implement a $118.2 million increase in its transmission and distribution rates, effective Nov. 27. The rate increase was contingent upon Oncor's asset swap deal with Sharyland Distribution & Transmission Services LLC.
Oncor, Sharyland Distribution & Transmission and its affiliate Sharyland Utilities LP completed the asset swap deal Nov. 9, satisfying the condition to the rate case application.
Oncor in March had requested the Public Utility Commission of Texas to increase its transmission and distribution rates beginning Nov. 27 by about $317 million. However, the PUC limited the increase to about $118.2 million, or 3.4%. The approved rate increase is premised upon a 9.8% return on equity and a 7.44% return in a year-end rate base valued at $10.992 billion for a calendar 2016 test year.
Additionally, Oncor on Nov. 17 secured an unsecured revolving credit facility in an aggregate principal amount of up to $2.0 billion, according to a Nov. 21 Form 8-K filing. The company has options to request an increase of up to $400 million, in $100 million increments, and extend the Nov. 17, 2022, maturity date for up to two additional one-year periods.
The company used the proceeds from the credit facility to repay all outstanding obligations under its amended $2 billion revolving credit facility dated Oct. 11, 2011, which was set to mature in October 2018.
JPMorgan Chase Bank NA acted as administrative agent for the lenders and as swingline lender.
Oncor is in the middle of being acquired by Sempra Energy.