Thursday, February 11, 2016

On Thursday, February 11, 2016, Texas Tribune released an article titled “Texas Regulators Uncertain on Hunt Deal” by Jim Malewitz. The article states that the Texas Regulators are still skeptical of allowing the Ray L Hunt family to purchase and revise the states biggest electric utility company, Oncor for $18 billion. The opposition comes from Texas ratepayers that believes the new scheme will tremendously transfer wealth to the Hunt family and investors. Consequently, losing currency for organizations like the states teacher pension fund, hedge fund and banks. Although supporters are insisting that the deal is positive and will help the company out of bankruptcy, many skeptics question the sincerity of the Hunt’s plan. The arrangement converts Oncor’s corporate structure into a Real Estate Investment Trust, that many believe could leave it financially unstable. With a deadline quickly approaching, regulators must come up with an idea much sooner than later. I believe this article is interesting and worth reading because the outcome could affect so many people and organizations. I don’t feel that we should lose funding for teacher pensions to help a company that is willing to pay $18 billion for the purchase.  

No comments: