NextEra Energy has asked Texas regulators to reconsider their decision of rejecting its proposal to acquire the state’s largest transmission and distribution electric utility Oncor Electric.

NextEra had written to the regulators that the deal would help in restoring the financial health of Oncor as it could result in an upgrade of its credit rating besides eliminating legacy debt.

Terry Hadley, a spokesman for the regulators, told Reuters that a three-member Public Utility Commission of Texas will have nearly 30 days to respond to the NextEra's request. 

In late March, the regulators rejected NextEra’s deal to buy Oncor from Energy Future Holdings (EFH) citing that it was not in public interest. EFH has been looking to come out of bankruptcy with the divestiture.

The commission said that it was concerned about the debt of the combined entity formed by the merger of Oncor with NextEra. It also questioned the independence the board of Oncor would have after the completion of the transaction and payments to NextEra at its expense.

In August 2016, NextEra agreed to purchase an 80% stake in Oncor from Energy Future Holdings (EFH). The sale was part of EFH’s restructuring plan to exit bankruptcy.

Under the terms of the agreement, NextEra agreed to fund $9.5bn, mainly to repay the debt of EPH.

Earlier, the Hawaii Public Utilities Commission (PUC) rejected the NextEra Energy’s proposed $4.3bn deal to acquire Hawaiian Electric Industries (HEI).

The transaction, which was signed in 2014, involved the assumption of $1.7bn in HEI debt and excluded banking subsidiary of HEI.

Image: NextEra Energy wants Texas regulators to relook at its Oncor acquisition. Photo: courtesy of sirirakphotos/