Sharyland Utilities owns an electricity distribution system and provides energy to some 54,000 consumers in 29 counties in Texas. Oncor is the largest utility in Texas and 6th largest energy distribution and transmission company in the US, providing electricity services to 10 million customers in 401 cities in Texas.
Sharyland Utilities will hand over their retail electricity distribution assets and operations in Stanton, Brady, McAllen and Celeste (SBC) service territories to Oncor once the deal is approved by the Public Utility Commission of Texas.
Oncor energy tariffs
Oncor will then start to provide electricity services to some 54,000 consumers currently being owned by Sharyland Utilities in these service territories.
According to a combined statement, the approval of the deal means the 54,000 consumers will have access to cheaper regulated energy tariffs to be provided by Oncor.
In return, Sharyland Utilities will own and operate electric transmission lines currently being owned by Oncor in West and central Texas.
Hunter Hunt, Chairman of Sharyland Utilities, commented: “Since our inception, Sharyland Utilities has been strongly committed to serving as a community-centric utility, providing our customers with safe, reliable, affordable power.
“We believe the most community-centric action we can take is to give our customers access to a world class utility like Oncor with the lowest rates in the State, and focus our forward strategy in support of the transmission infrastructure necessary for our communities to continue to grow and prosper.”
The deal will transform Sharyland Utilities into a transmission service provider responsible for construction, management and operation of current and future energy transmission infrastructure including lines and substations.
The approval of the deal will pave way for the dismissal of an energy rate increase proposal submitted by Sheryland Utilities to the state’s energy regulator.
However, awaiting approval of the deal, Sharyland Utilities will reduce its energy tariffs for consumers in the SBC area by 10%, a development which will reduce the utility’s annual consumer energy bills by $3 million.
The agreement is expected to secure regulatory approval in the fourth quarter of 2017.
David A. Campbell, CEO of Sharyland Utilities, added: “We are excited and optimistic about our current and expanding transmission business.
“Texas continues to experience electric load growth, the addition of renewables generation, and the ongoing modernization of the grid, and Sharyland looks forward to supporting the infrastructure needs of the state.” Read more…
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