An auction for Oncor, the regulated distribution unit of bankrupt Texas power company Energy Future Holdings, could come in the first quarter of next year, as interest in the prized asset mounts, Reuters reported yesterday. Energy Future, which filed one of the 10 largest chapter 11 bankruptcies in April, is targeting an auction in the first quarter of 2015, with Bank of America Merrill Lynch retained to seek buyers, the people said in recent days. NextEra Energy Inc., which last month dropped a bid for Oncor, and Hunt Consolidated, which recently hired a former Energy Future executive to lead its investment arm, are expected to continue to be in the fray. Hunt is considering structuring Oncor as a real estate investment trust (REIT) to go along with its Sharyland Utilities unit, which is among the only REIT-structured entities in the energy sector. Houston-based Centerpoint Energy and Spanish Iberdola SA have also shown interest.
