ONCOR REPORTS FIRST QUARTER 2025 RESULTS

PR Newswire

DALLAS, May 8, 2025

DALLAS, May 8, 2025 /PRNewswire/ -- Oncor Electric Delivery Company LLC ("Oncor") today reported net income of $181 million for the three months ended March 31, 2025, compared to net income of $225 million for the three months ended March 31, 2024. The decrease in net income of $44 million was driven by higher interest expense and depreciation expense associated with increases in invested capital and higher operation and maintenance expenses, partially offset by higher revenues primarily attributable to updated interim rates to reflect increases in invested capital, higher customer consumption primarily attributable to weather, and customer growth. Financial and operational results are provided in Tables A, B, C, and D below.

"The Public Utility Commission of Texas' recent approval of the 765-kV transmission import paths in the Permian Basin is an important milestone that will help enable ERCOT to support the State's continued economic growth. Oncor is fully committed to executing our portion of the plan to strengthen Texas' grid capacity and support load growth in our territory, while maintaining our ongoing focus on reliability, safety and affordability," said Oncor CEO Allen Nye. "Oncor is well positioned to support this project as well as the State's growing energy needs and economic expansion through improved grid resilience and reliability, enhanced transmission pathways, and continued infrastructure modernization. We continued to see strong indicators of growth in the first quarter through increased active transmission point of interconnection requests and load growth. I remain proud of the Oncor team for their hard work to address this growth and I am confident in our ability to meet the increasing power demands of our customers and the communities we serve."

Operational and Regulatory Highlights

Oncor's operational results continue to reflect Texas' robust growth. In the first quarter of 2025, the company built, re-built, or upgraded nearly 800 circuit miles of transmission and distribution lines, and reached important milestones on several large-scale transmission projects as part of its execution on its $7.1 billion 2025 capital plan. Oncor also increased its premises served in the first quarter of 2025 by almost 19,000, reflecting growth trends in line with Oncor's anticipated 2% annual premises organic growth rate. The company also filed seven new Certificates of Convenience and Necessity ("CCNs") for transmission projects to support load growth, interconnect generators, and strengthen the grid, reflecting a proactive stance towards facilitating Texas' expanding energy landscape. By comparison, the seven CCNs that Oncor filed this quarter are more than the total number of CCNs filed by Oncor in all of last year. The seven CCNs filed this year include two related to the Permian Basin Reliability Plan ("PBRP").

In the first quarter of 2025, Oncor's total active transmission point-of-interconnection ("POI") requests increased 35% year-over-year. A significant aspect of Oncor's ongoing growth is attributable to non-data center large commercial and industrial ("LC&I") customer segments. As of March 31, 2025, Oncor's active LC&I interconnection queue had 506 requests, which included over 22 gigawatts of load from diverse industrial sectors and 156 gigawatts from data centers. Of the 551 active generation POI requests in queue at March 31, 2025, approximately 46% were storage, 42% were solar, 7% were wind, and 5% were gas.

Oncor continues to make preparations to file a comprehensive base rate proceeding utilizing a test year of calendar year 2024, with filing currently targeted for the second quarter of 2025.

Strategic Infrastructure and Growth Plan

Oncor continues to execute on the projects assigned to it as part of the PBRP. In October 2024, the Public Utility Commission of Texas ("PUCT") approved the local projects and import paths of the PBRP but deferred the decision as to whether the import paths would be built using 345-kV or 765-kV. In April 2025, the PUCT decided that the import paths would be built using 765-kV. The 765-kV import paths are anticipated to significantly bolster grid reliability and unlock critical transmission pathways to increase electricity transfer capability to the Permian Basin region. The Electric Reliability Council of Texas, Inc. ("ERCOT") updated its estimated cost for the entirety of the PBRP to approximately $15 billion. Oncor expects to be responsible for more than half of this investment.

Oncor's $36.1 billion five-year capital plan for the period from 2025 through 2029 announced in February of this year included only an estimated $2 billion for the portion of PBRP local projects that needed no further approvals. Oncor began seeking approvals for the remaining PBRP local projects the first quarter of 2025 and expects to make filings, including for the import paths, through the fourth quarter of 2026. The remaining amount of Oncor's projected investment in the PBRP was initially expected to fall either within Oncor's incremental capex opportunities of $12 billion for the 2025 through 2029 period or outside of the time frame of the five-year plan. However, completion of the entirety of the PBRP is now on an accelerated timeline. As a result, Oncor currently expects the investment required for the incremental capital opportunities over the 2025 through 2029 period is likely to increase, particularly towards the latter part of Oncor's five-year capital plan.

In January 2025, ERCOT filed a regional transmission expansion plan with the PUCT, which included two options to serve the load projection of 150 gigawatts by 2030: a 345-kV plan and a 765-kV plan. These plans included an analysis of the PBRP as well as further extension of ERCOT's transmission system. ERCOT estimated that the cost of either plan would be approximately $20 billion in excess of the estimated cost of the PBRP. Oncor expects to build a significant portion of either plan and included only a small portion related to such plans in its $12 billion incremental capex opportunities for the 2025 through 2029 period because the remainder is expected to fall outside of that five-year planning period.

Liquidity

As of May 7, 2025, Oncor's available liquidity totaled approximately $3.8 billion, consisting of cash on hand and available borrowing capacity under its existing credit facilities, commercial paper programs, and accounts receivable facility. The company anticipates these resources, combined with projected cash flows from operations and future financing activities, will be sufficient to meet capital expenditures, maturities of long-term debt, and other operational needs for at least the next twelve months.

Sempra Internet Broadcast Today

Sempra $(SRE)$ (BMV: SRE) will broadcast a live discussion of its earnings results over the Internet today at 12 p.m. ET, which will include discussion of first quarter 2025 results and other information relating to Oncor. Oncor executives will also participate in the broadcast. Access to the broadcast is available by logging onto the Investors section of Sempra's website, sempra.com/investors. Prior to the conference call, an accompanying slide presentation will be posted on sempra.com/investors. For those unable to participate in the live webcast, it will be available on replay a few hours after its conclusion at sempra.com/investors.

Quarterly Report on Form 10-Q

Oncor's Quarterly Report on Form 10-Q for the period ended March 31, 2025 will be filed with the U.S. Securities and Exchange Commission after Sempra's conference call and once filed, will be available on Oncor's website, oncor.com.

About Oncor

Headquartered in Dallas, Oncor Electric Delivery Company LLC is a regulated electricity transmission and distribution business that uses superior asset management skills to provide reliable electricity delivery to consumers. Oncor (together with its subsidiaries) operates the largest transmission and distribution system in Texas, delivering electricity to more than 4 million homes and businesses and operating more than 144,000 circuit miles of transmission and distribution lines in Texas. While Oncor is owned by two investors (indirect majority owner, Sempra, and minority owner, Texas Transmission Investment LLC),

Oncor is managed by its Board of Directors, which is comprised of a majority of disinterested directors.

 
Oncor Electric Delivery Company LLC 
Table A -- Condensed Statements of Consolidated Income (Unaudited) 
Three Months Ended March 31, 2025 and 2024; $ millions 
 
                                                      Q1 '25  Q1 '24 
                                                      ------  ------ 
 
Operating revenues                                    $1,548  $1,458 
                                                       -----   ----- 
Operating expenses: 
 Wholesale transmission service                          353     351 
 Operation and maintenance                               370     299 
 Depreciation and amortization                           287     257 
 Provision in lieu of income taxes                        39      47 
 Taxes other than amounts related to income taxes        147     144 
                                                       -----   ----- 
 Total operating expenses                              1,196   1,098 
                                                       -----   ----- 
Operating income                                         352     360 
Other (income) and deductions -- net                    (13)    (14) 
Non-operating benefit in lieu of income taxes            (1)     (1) 
Interest expense and related charges                     185     150 
                                                       -----   ----- 
 Net income                                           $  181  $  225 
                                                       =====   ===== 
 
 
Oncor Electric Delivery Company LLC 

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