TXU Electric Delivery Co., a subsidiary of
, on Thursday said it will defer the filing its systemwide rate case with the Public Utility Commission of Texas until June 30, 2008.
A February 2005 agreement with a steering committee representing certain cities in Texas would have required TXU Electric Delivery to file the rate case by July 1, 2006 (based on a test-year ending Dec. 31, 2005), unless the committee and the company agreed that such a move was not required.
Under the agreement, the company will pay the steering committee approximately $40 million from January 2006 to mid-2009. This includes $18 million for beneficial public use.
The company plans to extend the benefits of the agreement to the other cities it serves at an estimated additional expense of up to $12 million.
TXU Electric Delivery and the steering committee also agreed to resolve certain franchise issues that will result in an aggregate increase of approximately $28 million in the franchise fees paid by the company to all cities in its service territory over the period from January 2006 to mid-2009.
TXU Electric Delivery expects the total incremental expenses associated with the agreement to be approximately $80 million. Payments under the agreement are expected to be made until new tariffs are effective, based upon an assumed June 2008 rate case filing.
The agreement does not change TXU Corp's previously disclosed outlook for operational earnings.
TXU Corp, a Dallas-based energy company, manages a portfolio of competitive and regulated energy businesses primarily in Texas.
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