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Energy Future Holdings Contract Approved

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The U.S. Bankruptcy Court issued an order approving Energy Future Holdings’ (EFH) motion to assume a lease or executory contract and for entry of order approving the assumption of the Oncor tax sharing agreement by and among EFH, Oncor Electric Delivery Holdings Company, Oncor Electric Delivery Company, Texas Transmission Investment and Oncor Management Investment (collectively, the “Oncor TSA Parties”) prior to the Plan effective date.

As previously reported, “In connection with the assumption of the Oncor TSA, Oncor will receive an agreed and allowed cure claim that is currently estimated to be $134,979,783 (as adjusted to reflect the date of payment and Oncor’s projected or actual taxable income or loss, the ‘Cure Amount’). EFH owes Oncor the Cure Amount under the Oncor TSA because of a combination of (a) overpayments from Oncor to EFH with respect to the 2015 tax year, which accounts for approximately $70.5 million of the estimated Cure Amount; and (b) the final resolution of multiple audits of prepetition tax years, which resulted in numerous adjustments to items of gain and loss for those years, which accounts for approximately $64.5 million of the Cure Amount….The confirmed E-Side Plan already authorizes EFH to assume the Oncor TSA and pay the approximately $135 million Cure Amount on Plan Effective Date.”

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