Dallas/Corpus Christi (November 21, 2019) — AEP Texas and Oncor Electric Delivery (Oncor) have received approval from the Public Utility Commission of Texas (PUCT) on November 14, 2019 for its Sale, Transfer or Merger (STM) joint application filed with the PUCT seeking approval of the sale to AEP Texas of Oncor’s distribution assets in the southern most part of Oncor’s service territory in the Rio Grande Valley.
The proposed transaction between AEP Texas and Oncor closed on November 21, 2019, and the transition of Oncor’s customers to AEP Texas is planned to begin on December 3, 2019. The completion of the customer transition currently is planned for the billing cycle beginning on December 20, 2019.
The STM joint application requested the sale and purchase of distribution assets from Oncor to AEP Texas in and around the cities of McAllen and Mission in Hidalgo County, including the Sharyland Plantation community. Certificated rights to serve the geographic area relative to and served by these distribution assets also were transferred from Oncor to AEP Texas as part of the transaction.
“Acquisition of these customers illustrates the commitment by AEP Texas to continue growing with the Rio Grande Valley and being responsive as new opportunities unfold,” said Thomas Coad, AEP Texas vice president of Distribution Region Operations. “AEP Texas currently serves over 320,000 customers in the Rio Grande Valley. We serve, operate, and maintain distribution facilities adjacent and almost completely surrounding the Sharyland community. Simply put, this is a good fit for everyone involved.”
Coad emphasized that the approximately 3,000 consumers who will be transitioned from Oncor to AEP Texas will continue to purchase their electricity from Retail Electric Providers (REPs). The company is working with Oncor to ensure that the transition is as seamless as possible.
“The location of these customers and assets make AEP Texas the logical electric provider for Hidalgo County,” said Oncor vice president of distribution operations Keith Hull. “AEP Texas is a terrific partner for the community, with a strong track record of safety and reliable service, and a long history of providing service in the Rio Grande Valley.”
The estimated cost of the transferred assets was approximately $18 million.
For more information regarding this transaction and transition of the retail electric customers, please see the information on AEP Texas’ website at the following link: https://aeptexas.com/info/oncor/.
Source: AEP Texas