Sharyland Utilities, L.P. has signed a definitive agreement with Sempra Energy to co-invest in Sharyland's South Texas utility business as part of a broader set of transactions among InfraREIT, Inc. and its subsidiary, Sharyland Distribution & Transmission Services, L.L.C. (SDTS), as well as Oncor Electric Delivery Company LLC (Oncor). Sempra Energy owns an indirect 80.25 percent interest in Oncor.
"For the past 20 years, Sharyland has committed itself to finding value-added transmission solutions that benefit customers throughout Texas," says Hunter Hunt, founder and Chairman of Sharyland Utilities. "The transaction announced today is an important next chapter in our history, as we believe that Sempra Energy will be a fabulous partner as we continue our development efforts going forward."
This proposed transaction will result in Oncor acquiring InfraREIT and its electric transmission utility business, which Hunt created and that grew to $2 billion in assets over the past two decades, along with Sharyland's Golden Spread Electric Cooperative interconnection and other development projects outside of South Texas. Upon closing, Oncor will own and operate all of Sharyland's and SDTS' existing electric transmission assets located in Central Texas, West Texas and the Texas Panhandle and South Plains.
Sharyland will continue as an independent privately-held transmission utility, owned 50 percent by entities controlled by Hunter L. Hunt and other members of the family of Ray L. Hunt and 50 percent by entities controlled by Sempra Energy, and will own the transmission assets that it developed in South Texas. Sharyland will continue to seek development opportunities that benefit customers throughout the State in partnership with Sempra Energy and Oncor.
"This transaction continues our long and productive relationship with Oncor and allows us to partner with Sempra Energy, who shares our passion for developing critical infrastructure in Texas," Hunt says.
"Our investment in Sharyland is an excellent complement to our investment in Oncor and furthers our vision of becoming North America's premier energy infrastructure company," says Jeffrey W. Martin, CEO of Sempra Energy. "We look forward to working with Sharyland on developing new and better ways to serve consumers in Texas."
The transactions will require the approval of the Public Utility Commission of Texas, as well as a vote of approval from the majority of InfraREIT shareholders, among other approvals. Assuming these approvals are obtained, Sharyland expects to close the transaction by mid-2019.
For more information, visit the Sharyland Web site.