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August 25, 2017 – Sharyland Utilities – Notice of Application



On August 4, 2017, Sharyland Utilities, L.P. (Sharyland), Sharyland Distribution & Transmission Services, L.L.C. (SDTS), and Oncor Electric Delivery Company LLC (Oncor) (collectively Joint Applicants) filed a Joint Application for Sale, Transfer or Merger with the Public Utility Commission of Texas (PUCT or Commission), copies of which are kept at Sharyland’s office at 1807 Ross Avenue, Suite 460, Dallas, TX 75201 and at Oncor’s office at 1616 Woodall Rodgers Freeway, Suite 6000, Dallas, TX 75202.

The Joint Application requests Commission approval of a proposed transfer of facilities between the Joint Applicants, a transfer of rights under and amendment of certificates of convenience and necessity (CCNs), and other regulatory approvals. Specifically, Sharyland/SDTS will transfer to Oncor all property and other assets used by Sharyland to provide retail electric delivery service (other than certain excluded assets) in the Stanton and McAllen divisions and all property and other assets used in Sharyland’s electric transmission and distribution business (other than certain excluded assets) in the Brady and Celeste divisions, and Oncor will transfer to SDTS certain transmission assets. Joint Applicants also propose that Sharyland will transfer to Oncor the rights under Sharyland’s CCNs to provide retail electric delivery service in the geographic areas currently certificated to Sharyland, and that Sharyland’s CCNs be amended to permit Sharyland to operate and maintain the transmission assets transferred from Oncor. After a short transition period following closing of the proposed transaction, all of Sharyland’s current retail electric delivery customers will be transitioned to Oncor, and thereafter will be served by Oncor and will be charged Oncor’s retail electric delivery rates, and Sharyland will serve only as a transmission service provider.

The proposed transaction also includes several regulatory conditions to closing and commitments. Included in these regulatory conditions is Commission approval of a revision to Sharyland’s wholesale transmission service (WTS) rate to reflect the proposed transaction. The revised WTS rate will take effect on the date the proposed transaction closes. Sharyland estimates that its wholesale transmission revenue requirement will increase by approximately $52.8 million (or approximately 26 percent) and estimates that its WTS rate will increase from the current annual rate of $3.046713 per kilowatt (kW) to approximately $3.752257 per kW. Sharyland also requests Commission approval of Sharyland’s recovery of certain actual transition costs associated with the proposed transaction in an amount not to exceed $17 million through a rider to Sharyland’s WTS tariff. Customers that will be affected by the changes to Sharyland’s WTS tariff include distribution service providers who pay wholesale transmission charges pursuant to Commission Substantive Rules. The other regulatory conditions and commitments are set forth in the Joint Application.

Persons who wish to intervene in or comment upon these proceedings should notify the Commission as soon as possible, as an intervention deadline will be imposed. A request to intervene or for further information should be mailed to the Public Utility Commission of Texas, P.O. Box 13326, Austin, Texas 78711-3326. Further information may also be obtained by calling the Public Utility Commission at (512) 936-7120 or (888) 782-8477. Hearing- and speech- impaired individuals with text telephones (TTY) may contact the Commission at (512) 936-7136. The deadline for intervention in the proceeding is September 5, 2017. This case has been assigned PUCT Docket No. 47469.



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