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EXHIBIT A-1
[LOGO OF SEAL [PUBLIC UTILITY COMMISSION OF TEXAS LETTERHEAD]
OF TEXAS
APPEARS HERE]
November 4, 1999
Mr. Jonathan G. Katz
Secretary
Securities and Exchange Commission
450 Fifth Street, N.W.
Washington, D.C. 20549
Dear Mr. Katz:
Texas Utilities Electric Company ("TXU Electric") and Southwestern
Electric Service Company ("TXU SESCO"), subsidiaries of the Company ("TXU"), a
Texas Corporation, have advised this Commission that TXU is considering
acquisition by one or more wholly-owned subsidiary companies (other than TXU
Electric or TXU SESCO) of an interest in entities that are considered foreign
utility companies ("FUCOs") as defined in Section 33(a)(3) of the 1935 Act. In
connection with such acquisition, TXU Electric and TXU SESCO have requested that
the Public Utility Commission of Texas (the "Commission") provide to you the
certification contemplated in Section 33(a)(2) of the Public Utility Holding
Company Act of 1935 (15 U.S.C 79 et. seq.), which section was added to that Act
by Section 715 of the Energy Policy Act of 1992.
As the State Commission having jurisdiction over the retail electric
rates of TXU's public utility subsidiaries, TXU Electric and TXU SESCO, please
be advised that this Commission: (i) has the authority and resources to protect
the ratepayers of TXU Electric and TXU SESCO; and (ii) intends to exercise such
authority.
This certification is applicable to all FUCOs in which TXU or its
subsidiaries seek to obtain an ownership interest; provided, that if TXU intends
to make a FUCO investment with recourse to TXU that would cause TXU's aggregate
investment in FUCOs and foreign Exempt Wholesale Generators to exceed 60% of its
consolidated net worth (as defined by Commission Subst. R.
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25.271), TXU shall obtain additional certification from the Commission prior to
completing such investment. The certification is subject to being revised or
withdrawn by the Commission in the future.
Please contact Ms. Martha Hinkle of the Commission Staff if you have
any questions on this matter.
Sincerely,
PUBLIC UTILITY COMMISSION OF
TEXAS
/s/ Pat Wood, III
Pat Wood, III, Chairman
/s/ Judy Walsh
Judy Walsh, Commissioner
/s/ Brett A. Perlman
Brett A. Perlman, Commissioner
cc: Office of Public Utility Regulation
Securities and Exchange Commission
