NextEra’s plan to buy Oncor aims at bright future for customers

Operating a successful electric delivery company is about commitment to safe, reliable and affordable service.

Twenty-four hours a day, seven days a week, 365 days a year, Oncor delivers on that commitment to nearly 10 million Texans, ranking consistently among the top-performing utilities in the nation and offering the lowest rates for electric delivery service among investor-owned utilities in Texas.

We at NextEra Energy look forward to building on this strong foundation as we partner with Oncor’s experienced managers and dedicated employees to ensure that its customers continue to receive safe, reliable and affordable power for many years to come.

Operationally, our proposed transaction will bring together two of the most experienced and well-respected utilities in North America.

NextEra Energy’s subsidiary, Florida Power & Light Co., has repeatedly been recognized for its leadership in the areas of affordability, reliability and customer service.

We pride ourselves on consistently being a best-in-class performer in our industry for low operating and maintenance expenses, which translates into real savings for customers.

Serving more than 14 million people, FPL provides its customers with electric bills that are the lowest in Florida and 30 percent below the national average, reliability that is the best in Florida and among the best in the nation, and award-winning customer service.

Our proposed combination will enable NextEra Energy and Oncor to share expertise and best practices.

Like Oncor, NextEra Energy has built our existing utility network on a solid foundation of safety, technology, reliability, experienced people and quality service.

Both companies also have reputations for being involved in the local communities they serve.

NextEra Energy’s strengths are in many areas complementary to the existing strengths and capabilities of Oncor, and we look forward to a successful, long-term relationship.

As we’ve gotten to know the talented team at Oncor, we recognize the same passion to serve customers that drives NextEra Energy’s team.

Providing workforce stability and protections for Oncor employees is a key part of our transaction.

Oncor will continue to be locally led and locally managed and will retain its Dallas headquarters and the Oncor name.

In addition to being a world-class energy company, NextEra Energy’s commitment to Texas runs deep.

We’ve operated here since 1999 and invested more than $8 billion in transmission, power generation, natural gas pipelines and other operations throughout the state, and Oncor joining our family of companies would only serve to further cement that commitment.

Importantly, our proposed transaction will improve Oncor’s financial strength.

In fact, based solely on the news of our announced merger, Moody’s Investors Service, on the day of our announcement, took the unusual step of upgrading Oncor’s credit rating and indicated a further upgrade is expected upon closing of the transaction.

Standard & Poor’s Financial Services revised Oncor’s outlook to positive from developing, and Fitch Ratings stated they expect to upgrade Oncor’s credit rating upon closing.

These actions directly benefit Oncor and its customers in terms of lower borrowing costs to finance needed infrastructure investments.

Furthermore, we’ll substantially eliminate the financial risks associated with Oncor’s existing ownership structure.

Oncor will no longer operate under a debt-laden parent company owned by financial investors with no long-term commitment to Texas.

Instead, Oncor will be backed by a financially strong parent company with experience managing electric utility assets and a record of fiscal discipline, providing Oncor with a strong foundation for future success.

And as part of our company, we commit to continuing Oncor’s legacy long into the future for the benefit of Oncor’s customers and the state of Texas.

This story was originally published August 12, 2016 at 6:15 PM with the headline "NextEra’s plan to buy Oncor aims at bright future for customers."