Energy Future looks to grant $134.98 million Oncor tax sharing claim

By Caroline Salls

Pittsburgh, Feb. 27 – Energy Future Holdings Corp. requested court approval to assume a tax sharing agreement with Oncor and grant a $134.98 million cure claim, according to a motion filed Friday with the U.S. Bankruptcy Court for the District of Delaware.

Energy Future entered into the agreement in November 2008 with Oncor entities Oncor Electric Delivery Holdings Co. LLC, Oncor Electric Delivery Co. LLC, Texas Transmission Investment LLC and Oncor Management Investment LLC.

Under the tax sharing agreement, Oncor Holdings and Oncor are required to pay Energy Future its share of the appropriate tax liability amount the entity would have owed if it filed a separate corporate tax return. Energy Future said similar calculations are performed for state law purposes.

According to the motion, Energy Future owes the cure amount because of a combination of $70.5 million in overpayments from Oncor in connection with the 2015 tax year, as well as the final resolution of multiple audits of pre-bankruptcy tax years, which resulted in numerous adjustments accounting for roughly $64.5 million of the cure amount.

The cure amount is scheduled to be paid on the effective date of Energy Future’s plan of reorganization.

A hearing is scheduled for March 28.

Energy Future is a Dallas-based power generation company and utility operator. The company filed for bankruptcy on April 29, 2014. The Chapter 11 case number is 14-10979.

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