Press Release

10.05.09

Oncor Electric Delivery Company LLC ("Oncor") today affirmed that the exchange offer announced by its shareholder, Energy Future Holdings Corp. (“EFH”) would not impact Oncor or its operations, and that neither Oncor nor Oncor Electric Delivery Holdings Company LLC ("Oncor Holdings") will have any obligations or liabilities in connection with the transaction.  In addition, the rating agencies have said that EFH’s exchange offer will not affect Oncor’s current investment grade ratings (S&P BBB+, Moody's Baa1, Fitch BBB).

EFH and its wholly owned subsidiaries Energy Future Intermediate Holding Company LLC and EFIH Finance Inc., have launched an exchange offer for certain existing notes issued by EFH and its affiliates.  Oncor is not involved in this transaction and does not have any obligations or liabilities because of the transaction.  Investors who accept the new EFH securities expressly agree that neither Oncor nor Oncor Holdings has any obligations due to the transaction.

At the time of the merger in 2007 between the former TXU Corp. and EFH, Oncor and Oncor Holdings were legally and structurally ring-fenced from EFH, the majority shareholder of Oncor.  As part of the ring-fencing, which was reviewed and approved by the Public Utility Commission of Texas ("PUCT"), neither Oncor nor Oncor Holdings is responsible for any debts of EFH.  Also Oncor and Oncor Holdings are managed by a separate majority-independent Board of Directors.  Today’s announcement by EFH does not change those or any other ring-fencing requirement. 

As described in EFH’s filing with the U.S. Securities and Exchange Commission, EFH is pledging its interests in the equity of Oncor Holdings as security for EFH's new debt securities.  The pledge of Oncor Holdings equity has no effect on Oncor Holdings or Oncor and no effect on the ring-fencing of Oncor or Oncor Holdings.  Even if the holders of the debt securities eventually took possession of the Oncor Holdings stock, any change of control would require the approval of the PUCT and those debt holders would be subject to the same ring-fencing requirements that apply now to EFH.  Oncor and Oncor Holdings would continue to have and be managed by a majority independent Board of Directors.

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