"We are proud to announce Oncor's solid financial performance in the first quarter of 2024. Our continued focus on operational excellence is evident in our strong safety and reliability metrics during the quarter," said Oncor CEO
System Resiliency Plan ("SRP") Filed
Yesterday, Oncor filed its first SRP for
-
Overhead and Underground Resiliency and Modernization – Approximately
$1.830 billion in proposed spend to modernize and harden legacy overhead system (poles, crossarms, lightning protection and capacity) and underground system with injection/replacement and switchgear automation; -
Continued Optimization of Distribution Automation – Approximately
$510 million in proposed spend to enable, expand and optimize distribution automation through new ties, capacity and intelligent switches; -
Expanded Vegetation Management ("VM") – Approximately
$285 million in proposed spend to expand VM along laterals and leverage remote-sensing capabilities such as satellite and laser imaging, detection and ranging, commonly known as LiDAR; -
Enhanced Cybersecurity Risk Mitigation – Approximately
$525 million in proposed spend to enhance cybersecurity risk mitigation, enhance and secure Oncor's digital backbone infrastructure and other measures; -
Improved Physical Security – Approximately
$80 million in proposed spend to improve physical security, including video and event correlation systems and asset protection; and -
Enhanced Wildfire Mitigation – Oncor estimates that approximately
$900 million of the total proposed spend under the SRP will enhance its wildfire mitigation efforts, consisting of$182 million in specific wildfire mitigation measures as well as the implementation of the overhead and underground resiliency and modernization and expanded distribution automation measures described above in areas at the highest risk for wildfires. The SRP offers Oncor an opportunity to advance and accelerate its wildfire mitigation strategies through additional investments in fire safe device deployment, advanced wildfire risk modeling, and strengthening, modernization and protection of assets in wildfire mitigation zones.
Oncor further believes these measures will provide a substantial reduction in outage minutes for customers, while also expanding and accelerating Oncor's efforts around wildfire risk mitigation, the security of the grid, vegetation management and the expanded deployment of smart grid technologies. These investments, if approved, are expected to enable Oncor's transmission and distribution system to better withstand and more quickly recover from the wide range of extreme weather conditions and other risks Oncor experiences across its diverse service area.
The statute provides that the PUCT will review and approve, modify or deny a filed plan within 180 days. Oncor cannot predict the outcome of the proceeding. To the extent Oncor's SRP is approved by the PUCT, Oncor intends to recover distribution-related costs through its interim distribution cost recovery factor adjustments, with the unrecovered distribution-related O&M expenses, depreciation expenses and return on the capital to be recognized as a regulatory asset.
The amount of capital expenditures ultimately approved as part of Oncor's SRP program, would be incremental to Oncor's
Operational Highlights and Growth
Throughout its operations, reliability and safety remain a primary focus at Oncor. For the industry's primary benchmark for reliability, System Average Interruption Duration Index (non-storm), Oncor's customers continued to see a decrease in the average minutes of outage in the twelve months ended
Ongoing growth within
At
In order to address the increased growth in
Oncor anticipates that approximately 40% of the 2030 load being studied by
As part of its annual renewal process, Oncor recently secured excess liability policies that maintain
Liquidity
As of
Sempra (NYSE: SRE) (BMV: SRE) will broadcast a live discussion of its earnings results over the Internet today at
Quarterly Report on Form 10-Q
Oncor's Quarterly Report on Form 10-Q for the period ended
Oncor Electric Delivery Company LLC |
||||||
Table A – Condensed Statements of Consolidated Income (Unaudited) |
||||||
Three Months Ended |
||||||
|
||||||
|
|
Three Months Ended |
||||
|
|
2024 |
|
2023 |
||
|
|
(dollars in millions) |
||||
Operating revenues |
|
$ |
1,458 |
|
$ |
1,292 |
Operating expenses: |
|
|
|
|
|
|
Wholesale transmission service |
|
|
351 |
|
|
321 |
Operation and maintenance |
|
|
299 |
|
|
263 |
Depreciation and amortization |
|
|
257 |
|
|
240 |
Provision in lieu of income taxes |
|
|
47 |
|
|
27 |
Taxes other than amounts related to income taxes |
|
|
144 |
|
|
145 |
Write-off of rate base disallowances |
|
|
- |
|
|
55 |
Total operating expenses |
|
|
1,098 |
|
|
1,051 |
Operating income |
|
|
360 |
|
|
241 |
Other (income) and deductions – net |
|
|
(14) |
|
|
7 |
Non-operating benefit in lieu of income taxes |
|
|
(1) |
|
|
(6) |
Interest expense and related charges |
|
|
150 |
|
|
123 |
Write-off of non-operating rate base disallowances |
|
|
- |
|
|
14 |
Net income |
|
$ |
225 |
|
$ |
103 |
Oncor Electric Delivery Company LLC |
|||||||
Table B – Condensed Statements of Consolidated Cash Flows (Unaudited) |
|||||||
Three Months Ended |
|||||||
|
|||||||
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
||||
|
|
2024 |
|
2023 |
|
||
|
|
(dollars in millions) |
|
||||
Cash flows – operating activities: |
|
|
|
|
|
|
|
Net income |
|
$ |
225 |
|
$ |
103 |
|
Adjustments to reconcile net income to cash provided by operating activities: |
|
|
|
|
|
|
|
Depreciation and amortization, including regulatory amortization |
|
|
299 |
|
|
260 |
|
Write-off of rate base disallowances |
|
|
- |
|
|
69 |
|
Provision in lieu of deferred income taxes – net |
|
|
20 |
|
|
- |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
Accounts receivable |
|
|
6 |
|
|
70 |
|
Inventories |
|
|
(14) |
|
|
(18) |
|
Accounts payable – trade |
|
|
(6) |
|
|
32 |
|
Regulatory assets – deferred revenues |
|
|
(6) |
|
|
(38) |
|
Regulatory assets – self-insurance reserve |
|
|
(11) |
|
|
(104) |
|
Other assets and liabilities |
|
|
(49) |
|
|
(113) |
|
Cash provided by operating activities |
|
|
464 |
|
|
261 |
|
Cash flows – financing activities: |
|
|
|
|
|
|
|
Issuances of senior secured notes |
|
|
- |
|
|
352 |
|
Borrowings under term loans |
|
|
- |
|
|
775 |
|
Repayments under term loans |
|
|
- |
|
|
(100) |
|
Borrowings under AR Facility |
|
|
300 |
|
|
- |
|
Borrowings under |
|
|
500 |
|
|
- |
|
Net change in short-term borrowings |
|
|
(282) |
|
|
(198) |
|
Contributions from members |
|
|
240 |
|
|
106 |
|
Distributions to members |
|
|
(125) |
|
|
(106) |
|
Debt discount, financing and reacquisition costs – net |
|
|
(2) |
|
|
(3) |
|
Cash provided by financing activities |
|
|
631 |
|
|
826 |
|
Cash flows – investing activities: |
|
|
|
|
|
|
|
Capital expenditures |
|
|
(1,109) |
|
|
(977) |
|
Sales tax audit settlement refund |
|
|
56 |
|
|
- |
|
Other – net |
|
|
11 |
|
|
12 |
|
Cash used in investing activities |
|
|
(1,042) |
|
|
(965) |
|
Net change in cash, cash equivalents and restricted cash |
|
|
53 |
|
|
122 |
|
Cash, cash equivalents and restricted cash – beginning balance |
|
|
151 |
|
|
98 |
|
Cash, cash equivalents and restricted cash – ending balance |
|
$ |
204 |
|
$ |
220 |
|
|
|
|
|
|
|
|
|
Oncor Electric Delivery Company LLC |
||||||
Table C – Condensed Consolidated Balance Sheets (Unaudited) |
||||||
At |
||||||
|
||||||
|
|
|
|
|
|
|
|
|
At |
|
At |
||
|
|
2024 |
|
2023 |
||
|
|
(dollars in millions) |
||||
ASSETS |
||||||
Current assets: |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
53 |
|
$ |
19 |
Restricted cash, current |
|
|
34 |
|
|
24 |
Accounts receivable – net |
|
|
945 |
|
|
944 |
Amounts receivable from members related to income taxes |
|
|
- |
|
|
4 |
Materials and supplies inventories – at average cost |
|
|
355 |
|
|
341 |
Prepayments and other current assets |
|
|
127 |
|
|
101 |
Total current assets |
|
|
1,514 |
|
|
1,433 |
Restricted cash, noncurrent |
|
|
117 |
|
|
108 |
Investments and other property |
|
|
167 |
|
|
158 |
Property, plant and equipment – net |
|
|
28,837 |
|
|
28,057 |
|
|
|
4,740 |
|
|
4,740 |
Regulatory assets |
|
|
1,518 |
|
|
1,556 |
Right-of-use operating lease and other assets |
|
|
146 |
|
|
142 |
Total assets |
|
$ |
37,039 |
|
$ |
36,194 |
|
|
|
|
|
|
|
LIABILITIES AND MEMBERSHIP INTERESTS
|
||||||
Current liabilities: |
|
|
|
|
|
|
Short-term borrowings |
|
$ |
- |
|
$ |
282 |
Long-term debt, current |
|
|
317 |
|
|
- |
Accounts payable – trade |
|
|
605 |
|
|
600 |
Amounts payable to members related to income taxes |
|
|
51 |
|
|
27 |
Accrued taxes other than amounts related to income |
|
|
99 |
|
|
261 |
Accrued interest |
|
|
184 |
|
|
117 |
Operating lease and other current liabilities |
|
|
330 |
|
|
338 |
Total current liabilities |
|
|
1,586 |
|
|
1,625 |
Long-term debt, noncurrent |
|
|
13,782 |
|
|
13,294 |
Liability in lieu of deferred income taxes |
|
|
2,360 |
|
|
2,320 |
Regulatory liabilities |
|
|
2,982 |
|
|
3,000 |
Employee benefit plan obligations |
|
|
1,435 |
|
|
1,442 |
Operating lease and other obligations |
|
|
345 |
|
|
305 |
Total liabilities |
|
|
22,490 |
|
|
21,986 |
Commitments and contingencies |
|
|
|
|
|
|
Membership interests: |
|
|
|
|
|
|
Capital account – number of units outstanding 2024 and 2023 – 635,000,000 |
|
|
14,728 |
|
|
14,388 |
Accumulated other comprehensive loss |
|
|
(179) |
|
|
(180) |
Total membership interests |
|
|
14,549 |
|
|
14,208 |
Total liabilities and membership interests |
|
$ |
37,039 |
|
$ |
36,194 |
Oncor Electric Delivery Company LLC |
||||||||||||||||
Table D – Operating Revenues and Statistics |
||||||||||||||||
Three Months Ended |
||||||||||||||||
|
||||||||||||||||
|
|
Twelve Months Ended |
|
% |
|
|||||||||||
|
|
2024 |
|
2023 |
|
Change |
|
|||||||||
Reliability statistics (a): |
|
|
|
|
|
|
|
|||||||||
System Average Interruption Duration Index (SAIDI) (non-storm) |
|
71.0 |
|
71.9 |
|
(1.3) |
|
|||||||||
System Average Interruption Frequency Index (SAIFI) (non-storm) |
|
1.0 |
|
1.1 |
|
(9.1) |
|
|||||||||
Customer Average Interruption Duration Index (CAIDI) (non-storm) |
|
71.0 |
|
63.7 |
|
11.5 |
|
|||||||||
|
|
|
|
|
|
|
|
|||||||||
Electricity points of delivery (end of period and in thousands): |
|
|
|
|
|
|
|
|||||||||
Electricity distribution points of delivery (based on number of active meters) |
|
3,988 |
|
3,912 |
|
1.9 |
|
|||||||||
|
|
|
|
|
|
|
|
|||||||||
|
|
Three Months Ended |
|
Increase |
|
|||||||||||
|
|
2024 |
|
2023 |
|
(Decrease) |
|
|||||||||
Residential system weighted weather data (b): |
|
|
|
|
|
|
|
|||||||||
Cooling degree days |
|
25 |
|
31 |
|
(6) |
|
|||||||||
Heating degree days |
|
453 |
|
376 |
|
77 |
|
|||||||||
|
|
|
|
|
|
|
|
|||||||||
|
|
Three Months Ended |
|
% |
|
|||||||||||
|
|
2024 |
|
2023 |
|
Change |
|
|||||||||
Operating statistics: |
|
|
|
|
|
|
|
|||||||||
Electric energy volumes (gigawatt-hours) |
|
|
|
|
|
|
|
|||||||||
Residential |
|
10,465 |
|
9,685 |
|
8.1 |
|
|||||||||
Commercial, industrial, small business and other |
|
26,848 |
|
25,094 |
|
7.0 |
|
|||||||||
Total electric energy volumes |
|
37,313 |
|
34,779 |
|
7.3 |
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
||||
|
|
2024 |
|
2023 |
||
Operating revenues ($ millions) |
|
|
|
|
|
|
Revenues contributing to earnings: |
|
|
|
|
|
|
Distribution base revenues |
|
|
|
|
|
|
Residential (c) |
|
$ |
329 |
|
$ |
243 |
Large commercial & industrial (d) |
|
|
305 |
|
|
270 |
Other (e) |
|
|
29 |
|
|
38 |
Total distribution base revenues (f) |
|
|
663 |
|
|
551 |
Transmission base revenues (TCOS revenues) |
|
|
|
|
|
|
Billed to third-party wholesale customers |
|
|
262 |
|
|
250 |
Billed to REPs serving Oncor distribution customers, through TCRF |
|
|
144 |
|
|
141 |
Total TCOS revenues |
|
|
406 |
|
|
391 |
Other miscellaneous revenues |
|
|
24 |
|
|
17 |
Total revenues contributing to earnings |
|
|
1,093 |
|
|
959 |
|
|
|
|
|
|
|
Revenues collected for pass-through expenses: |
|
|
|
|
|
|
TCRF – third-party wholesale transmission service |
|
|
351 |
|
|
321 |
EECRF and other revenues |
|
|
14 |
|
|
12 |
Total revenues collected for pass-through expenses |
|
|
365 |
|
|
333 |
Total operating revenues |
|
$ |
1,458 |
|
$ |
1,292 |
______________ |
|
(a) |
SAIDI is the average number of minutes electric service is interrupted per consumer in a twelve-month period. SAIFI is the average number of electric service interruptions per consumer in a twelve-month period. CAIDI is the average duration in minutes per electric service interruption in a twelve-month period. In each case, Oncor's non-storm reliability performance reflects electric service interruptions of one minute or more per customer. Each of these results excludes outages during significant storm events. |
(b) |
Degree days are measures of how warm or cold it is throughout Oncor's service territory. A degree day compares the average of the hourly outdoor temperatures during each day to a 65° Fahrenheit standard temperature. The more extreme the outside temperature, the higher the number of degree days. A high number of degree days generally results in higher levels of energy use for space cooling or heating. |
(c) |
Distribution base revenues from residential customers are generally based on actual monthly consumption (kWh). On a weather-normalized basis, distribution base revenues from residential customers increased 29.8% in the three months ended |
(d) |
Depending on size and annual load factor, distribution revenues from LC&I customers are based either on actual monthly demand (kilowatts) or the greater of actual monthly demand (kilowatts) or 80% of peak monthly demand during the prior eleven months. |
(e) |
Includes distribution base revenues from small business customers whose billing is generally based on actual monthly consumption (kWh), lighting sites and other miscellaneous distribution base revenues. |
(f) |
The 20.3% increase in distribution base revenues in the three months ended |
Headquartered in
Forward-Looking Statements
This news release contains forward-looking statements relating to Oncor within the meaning of the Private Securities Litigation Reform Act of 1995, which are subject to risks and uncertainties. All statements, other than statements of historical facts, that are included in this news release, as well as statements made in presentations, in response to questions or otherwise, that address activities, events or developments that Oncor expects or anticipates to occur in the future, including such matters as projections, capital allocation, future capital expenditures, business strategy, competitive strengths, goals, future acquisitions or dispositions, development or operation of facilities, market and industry developments and the growth of Oncor's business and operations (often, but not always, through the use of words or phrases such as "intends," "plans," "will likely result," "are expected to," "will continue," "is anticipated," "estimated," "forecast," "should," "projection," "target," "goal," "objective" and "outlook"), are forward-looking statements. Although Oncor believes that in making any such forward-looking statement its expectations are based on reasonable assumptions, any such forward-looking statement involves risks, uncertainties and assumptions. Factors that could cause Oncor's actual results to differ materially from those projected in such forward-looking statements include: legislation, governmental policies and orders, and regulatory actions; legal and administrative proceedings and settlements, including the exercise of equitable powers by courts; weather conditions and other natural phenomena, including any weather impacts due to climate change; acts of sabotage, wars, terrorist activities, cybersecurity attacks, wildfires, fires, explosions, hazards customary to the industry, or other emergency events and the possibility that Oncor may not have adequate insurance to cover losses or third-party liabilities related to any such event; actions by credit rating agencies; health epidemics and pandemics, including their impact on Oncor's business and the economy in general; interrupted or degraded service on key technology platforms, facilities failures, or equipment interruptions; economic conditions, including the impact of a recessionary environment, inflation, supply chain disruptions, competition for goods and services, service provider availability, and labor availability and cost; unanticipated population growth or decline, or changes in market demand and demographic patterns, particularly in the
Further discussion of risks and uncertainties that could cause actual results to differ materially from management's current projections, forecasts, estimates and expectations is contained in filings made by Oncor with the
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