Sempra press release
ONCOR REPORTS 2024 RESULTS; ANNOUNCES $36 BILLION 2025-2029 CAPITAL PLAN
NYSE - New York Stock Exchange · Natural Gas · United States
PR Newswire
DALLAS , Feb. 25, 2025 /PRNewswire/ -- Oncor Electric Delivery Company LLC ("Oncor") today reported twelve months ended December 31, 2024 net income of $968 million compared to twelve months ended December 31, 2023 net income of $864 million . This $104 million increase was driven by overall higher revenues primarily attributable to updated interim rates to reflect increases in invested capital, increases in transmission billing units, customer growth, and the base rates that went into effect May 2023 along with the write-off of rate base disallowances recorded in the first quarter of 2023; partially offset by lower customer consumption primarily attributable to milder weather when compared to the prior period, higher interest expense and depreciation expense associated with increases in invested capital, and higher operation and maintenance expense, including increased insurance premiums.
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"I want to begin by recognizing the Oncor team for their incredible resilience and dedication to our customers, our mission, and each other. Last month, Oncor received a prestigious EEI Emergency Response Award due to their hard work and around the clock storm restoration efforts. I am so proud of what they do, and their relentless focus on safety, reliability, and service to our communities," Oncor CEO Allen Nye said. "The Oncor team is also rising to the challenge of the most significant growth period in our company's history, working every day to meet the demand and customer growth across both the transmission and distribution sides of our business while also making a substantial investment in making our grid more resilient. With this significant projected growth, we are announcing a new five-year, $36 billion capital plan to support Texas' continued economic expansion. Texas continues to be the nation's economic powerhouse, and Oncor is proud to be a key player in building the grid needed to support that growth while maintaining our ongoing focus on reliability, safety and affordability."
Oncor reported net income of $168 million in the three months ended December 31, 2024 compared to net income of $181 million in the three months ended December 31, 2023 . This $13 million decrease was driven by higher interest expense and depreciation expense associated with increases in invested capital and higher operation and maintenance expense, partially offset by overall higher revenues primarily attributable to increased transmission billing units, updated interim rates to reflect increases in invested capital, higher energy efficiency program performance bonus revenues (due to timing of recognition), and customer growth. Financial and operational results are provided in Tables A, B, C, and D below.
Texas Growth
As Texas continues to experience unprecedented demand for new transmission and distribution capacity, Oncor remains focused on supporting the state's energy needs through significant capital investments. Oncor experienced another strong year in 2024 with solid growth in premises and the construction of new transmission and distribution lines, as well as the setting of new year-end company records for new and active transmission point-of-interconnection ("POI") requests, all while remaining focused on a high-performing culture built on safety and reliability.
Oncor increased its premise count by a near-company record 77,000 in 2024 as compared to 73,000 in 2023, reinforcing Texas' strong population and economic expansion. Additionally, Oncor placed over $2 billion of transmission projects into service in 2024, strengthening the scale of its infrastructure development efforts to meet growing demand. The growth across Oncor's service territory resulted in the construction or upgrading of approximately 4,300 miles of transmission and distribution lines and included more than 75 substation projects and more than 45 switching station projects, all of which were placed into service in 2024. The continued dynamic growth across Oncor's service territory provides additional opportunities to deploy capital to grow the Oncor system.
In 2024, Oncor set company records for annual active and new transmission POI requests in queue. At December 31, 2024 , Oncor had 976 active transmission POI requests in queue, representing a 28% increase as compared to December 31, 2023 . Of the 519 active generation POI requests in queue at December 31, 2024 , approximately 44% are solar, 44% are storage, 7% are wind and 4% are gas. Of those active POI requests in queue, 423 were new in 2024, representing a 27% increase in new requests over the year as compared to 2023.
Oncor's large commercial and industrial ("LC&I") load growth in particular has continued to accelerate, and its LC&I interconnection queue of customer requests, including requests without signed agreements, exceeded 137 gigawatts ("GW") as of December 31, 2024 , an approximately 250% increase over the amount of potential load in queue at the end of 2023. C&I customer requests reflect a strong and diverse pipeline of industrial and commercial expansions beyond traditional data centers, with non-data center customers representing 18 GW of that LC&I interconnection queue.
Oncor's growth reflects rising demand in the Electric Reliability Council of Texas , Inc. ("ERCOT") market, with ERCOT recently projecting peak demand to exceed 150 GW by 2030 as compared to the current peak of approximately 85 GW. To meet the growing energy needs across the market, ERCOT has developed various reliability plans, including a reliability plan to address the needs of oil and gas customers across the Permian Basin region (Public Utility Commission of Texas ("PUCT") Docket No. 55718). The Permian Basin Reliability Plan identifies over $13 billion in transmission upgrades and additions through 2038 required to meet future demand needs in the area, and Oncor anticipates receiving a significant number of those projects.
Capital Plan Update
Today, Oncor is announcing a new five-year capital plan of approximately $36.1 billion for the 2025 to 2029 period which includes a projected spend of $7.1 billion for 2025.
Oncor's 2025-2029 capital plan has increased approximately $12 billion from the 2024-2028 five-year plan arising from the following items:
Nearly $3 billion for Oncor's System Resiliency Plan approved by the PUCT last year; $2 billion for brownfield local common projects in the Permian Basin Reliability Plan; $1 billion for transmission projects in the Delaware Basin Load Integration Plan and West Texas 345 kV Infrastructure Plan; $2 billion for interconnection of generation and LC&I customers with executed agreements; and $4 billion for distribution upgrades and other capital needs.
Notably, Oncor's capital plan only includes expected spend for major transmission projects for which all regulatory approvals have been obtained. Additionally, with regard to LC&I customers seeking interconnection at the transmission level, like data centers, the capital plan only includes those projects for which customers have executed an agreement with Oncor.
As a result, Oncor has identified approximately $12 billion in potential additional incremental capital opportunities over the same 2025-2029 period. These include potential updates to the System Resiliency Plan for 2028 and 2029, additional transmission interconnection projects from LC&I customers who have submitted transmission POI requests but not yet signed agreements, additional transmission projects for the Permian Basin Reliability Plan which have yet to obtain all regulatory approvals, and potential investments identified in ERCOT's 765-kV Strategic Transmission Expansion Plan (STEP). The growing demand for high-voltage transmission capacity, particularly to support new commercial, industrial and data center loads, presents another significant opportunity for expansion beyond the $36 billion capital plan. While these projects are subject to regulatory approval or customer commitments, they highlight opportunities for Oncor to address emerging infrastructure needs in the ERCOT market.
Operational Highlights
In January 2025 , Oncor was awarded the EEI Emergency Response Award for its response to significant storm activity across its service territory in May 2024 . The award recognizes member companies that put forth outstanding efforts to restore service promptly to the public following a storm or natural disaster, underscoring the company's ongoing commitment to grid resiliency.
Oncor's key safety metrics improved in 2024, including its Days Away, Restricted or Transferred rate and Lost Time Injury rate, which improved by 26% and 27%, respectively year over year. Oncor also completed the second half of the year with more than 5 million consecutive work hours without a lost time injury.
Regulatory Update
Oncor is contemplating filing a comprehensive base rate review later this year. To date in 2025, Oncor has already filed requests for an interim transmission cost of service rate adjustment and an interim distribution cost recovery factor rate adjustment. Oncor also expects to file an average of two Certificates of Convenience and Necessity per month in 2025, primarily attributable to Oncor's projects identified in the Permian Basin Reliability Plan. This pace not only reflects the urgency of Texas' infrastructure expansion needs, but the volume of transmission work in Oncor's queue.
Additionally, in November 2024 , the PUCT approved Oncor's System Resiliency Plan, which provides for approximately $2.9 billion in capital expenditures and $520 million in operation and maintenance expenses to enhance the resiliency of its transmission and distribution system, including measures to address extreme weather, wildfires, physical security threats, and cybersecurity threats. The System Resiliency Plan provides for the majority of the spend to occur between the years 2025 through 2027, with approximately $300 million in capital expenditures and approximately $20 million in operation and maintenance expenses to be carried over into 2028 and either (i) automatically authorized if Oncor does not file an updated system resiliency plan covering that year or (ii) included in any updated system resiliency plan filed by Oncor as part of that plan's first year of spend.
Liquidity
As of February 24, 2025 , Oncor's available liquidity, consisting of cash on hand and available borrowing capacity under its existing credit facilities, commercial paper program and accounts receivable facility ("AR Facility"), totaled approximately $3.1 billion . Oncor expects cash flows from operations combined with long-term debt issuances and credit agreements as well as availability under its existing credit facilities, commercial paper program and AR Facility to be sufficient to fund current obligations, projected working capital requirements, maturities of long-term debt and capital expenditures for at least the next twelve months. Oncor currently expects to issue approximately $4.0 billion to $5.0 billion of long-term senior secured notes in each of 2025 and 2026, Oncor also recently refinanced its five-year, $2 billion credit facility and entered into a new three-year, $1 billion credit facility to further support Oncor's liquidity needs.
Sempra Internet Broadcast Today
Sempra (NYSE: 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 2024 results and other information relating to Oncor. Oncor Chief Executive Allen Nye 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 .
Annual Report on Form 10-K
Oncor's Annual Report on Form 10-K for the year ended December 31, 2024 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 . The annual financial statements of Oncor Electric Delivery Holdings Company LLC (which holds 80.25% of Oncor's outstanding equity interests and is indirectly wholly owned by Sempra) for the year ended December 31, 2024 will be included as an exhibit to Sempra's Annual Report on Form 10-K for the year ended December 31, 2024 .
| Oncor Electric Delivery Company LLC Table A – Statements of Consolidated Income Three and Twelve Months Ended December 31, 2024 and 2023; $ millions | | | | | | | | | | | | | | | | | | | | | | | | | | | Q4 '24 | | Q4 '23 | | TME '24 | | TME '23 | | | | | | | | | | | | | | | | | | | Operating revenues | $ | 1,472 | | $ | 1,359 | | $ | 6,082 | | $ | 5,586 | | Operating expenses: | | | | | | | | | | | | | Wholesale transmission service | | 341 | | | 326 | | | 1,394 | | | 1,291 | | Operation and maintenance | | 361 | | | 320 | | | 1,293 | | | 1,150 | | Depreciation and amortization | | 273 | | | 249 | | | 1,060 | | | 978 | | Provision in lieu of income taxes | | 36 | | | 39 | | | 208 | | | 185 | | Taxes other than amounts related to income taxes | | 140 | | | 124 | | | 571 | | | 552 | | Write-off of rate base disallowances | | - | | | - | | | - | | | 55 | | Total operating expenses | | 1,151 | | | 1,058 | | | 4,526 | | | 4,211 | | Operating income | | 321 | | | 301 | | | 1,556 | | | 1,375 | | Other (income) and deductions – net | | (18) | | | (21) | | | (63) | | | (31) | | Non-operating provision (benefit) in lieu of income taxes | | (1) | | | 1 | | | (2) | | | (8) | | Interest expense and related charges | | 172 | | | 140 | | | 653 | | | 536 | | Write-off of non-operating rate base disallowances | | - | | | - | | | - | | | 14 | | Net income | $ | 168 | | $ | 181 | | $ | 968 | | $ | 864 |
| Oncor Electric Delivery Company LLC Table B – Statements of Consolidated Cash Flows Twelve Months Ended December 31, 2024 and 2023; $ millions | | | | | | | | | | | | | | | TME '24 | | TME '23 | | | | | | | | | | | Cash flows – operating activities: | | | | | | | Net income | $ | 968 | | $ | 864 | | Adjustments to reconcile net income to cash provided by operating activities: | | | | | | | Depreciation and amortization, including regulatory amortization | | 1,233 | | | 1,117 | | Write-off of rate base disallowances | | - | | | 69 | | Provision in lieu of deferred income taxes – net | | 155 | | | 61 | | Other – net | | 1 | | | (10) | | Changes in operating assets and liabilities: | | | | | | | Accounts receivable | | (29) | | | (43) | | Inventories | | (121) | | | (137) | | Accounts payable – trade | | 78 | | | 42 | | Regulatory assets – deferred revenues | | 15 | | | 1 | | Regulatory assets – self-insurance reserve | | (327) | | | (232) | | Customer deposits | | 86 | | | 42 | | Other – assets | | (177) | | | (22) | | Other – liabilities | | 105 | | | 48 | | Cash provided by operating activities | | 1,987 | | | 1,800 | | Cash flows – financing activities: | | | | | | | Issuances of senior secured notes | | 1,992 | | | 2,200 | | Repayments of senior secured notes | | (500) | | | - | | Borrowings under term loans | | - | | | 775 | | Repayments under term loans | | - | | | (875) | | Borrowings under AR Facility | | 900 | | | 600 | | Repayments under AR Facility | | (900) | | | (600) | | Borrowings under $500M Credit Facility | | 500 | | | - | | Repayments under $500M Credit Facility | | (20) | | | - | | Net change in short-term borrowings | | 312 | | | 84 | | Capital contributions from members | | 1,211 | | | 452 | | Distributions to members | | (753) | | | (552) | | Debt discount, financing and reacquisition costs – net | | (24) | | | (46) | | Cash provided by financing activities | | 2,718 | | | 2,038 | | Cash flows – investing activities: | | | | | | | Capital expenditures | | (4,683) | | | (3,824) | | Sales tax audit settlement refund | | 56 | | | - | | Reimbursement from third party in joint project | | - | | | 1 | | Proceeds from sales of non-utility properties | | 2 | | | 9 | | Other – net | | 31 | | | 29 | | Cash used in investing activities | | (4,594) | | | (3,785) | | Net change in cash, cash equivalents and restricted cash | | 111 | | | 53 | | Cash, cash equivalents and restricted cash – beginning balance | | 151 | | | 98 | | Cash, cash equivalents and restricted cash – ending balance | $ | 262 | | $ | 151 |
| Oncor Electric Delivery Company LLC Table C – Consolidated Balance Sheets At December 31, 2024 and 2023; $ millions | | | | | | | | | | | | | | | At 12/31/24 | | At 12/31/23 | | | | | | | | | | | ASSETS | | | | | | | Current assets: | | | | | | | Cash and cash equivalents | $ | 36 | | $ | 19 | | Restricted cash, current | | 20 | | | 24 | | Accounts receivable – net | | 970 | | | 944 | | Amounts receivable from members related to income taxes | | 30 | | | 4 | | Materials and supplies inventories – at average cost | | 462 | | | 341 | | Prepayments and other current assets | | 124 | | | 101 | | Total current assets | | 1,642 | | | 1,433 | | Restricted cash, noncurrent | | 206 | | | 108 | | Investments and other property | | 183 | | | 158 | | Property, plant and equipment – net | | 31,769 | | | 28,057 | | Goodwill | | 4,740 | | | 4,740 | | Regulatory assets | | 1,671 | | | 1,556 | | Right-of-use operating lease and other assets | | 240 | | | 142 | | Total assets | $ | 40,451 | | $ | 36,194 | | LIABILITIES AND MEMBERSHIP INTERESTS | | | | | | | Current liabilities: | | | | | | | Short-term borrowings | $ | 594 | | $ | 282 | | Accounts payable – trade | | 770 | | | 600 | | Amounts payable to members related to income taxes | | 29 | | | 27 | | Accrued taxes other than amounts related to income | | 274 | | | 261 | | Accrued interest | | 149 | | | 117 | | Operating lease and other current liabilities | | 367 | | | 338 | | Total current liabilities | | 2,183 | | | 1,625 | | Long-term debt, noncurrent | | 15,234 | | | 13,294 | | Liability in lieu of deferred income taxes | | 2,552 | | | 2,320 | | Regulatory liabilities | | 2,973 | | | 3,000 | | Employee benefit plan obligations | | 1,384 | | | 1,442 | | Operating lease and other obligations | | 495 | | | 305 | | Total liabilities | | 24,821 | | | 21,986 | | Commitments and contingencies | | | | | | | Membership interests: | | | | | | | Capital account ― number of units outstanding 2024 and 2023 – 635,000,000 | | 15,814 | | | 14,388 | | Accumulated other comprehensive loss | | (184) | | | (180) | | Total membership interests | | 15,630 | | | 14,208 | | Total liabilities and membership interests | $ | 40,451 | | $ | 36,194 |
| Oncor Electric Delivery Company LLC Table D – Operating Data and Operating Revenues Three and Twelve Months Ended December 31, 2024 and 2023; mixed measures | | | | | | | | | | | | | | | | | | | | | | Q4 '24 | | Q4 '23 | | TME '24 | | TME '23 | | Operating statistics: | | | | | | | | | | Electric energy volumes (gigawatt-hours): | | | | | | | | | | Residential | | 9,331 | | 9,146 | | 46,444 | | 47,112 | | Commercial, industrial, small business and other | | 29,496 | | 26,760 | | 116,247 | | 109,365 | | Total electric energy volumes | | 38,827 | | 35,906 | | 162,691 | | 156,477 | | | | | | | | | | | | Residential system weighted weather data (a): | | | | | | | | | | Cooling degree days | | 187 | | 112 | | 2,071 | | 2,268 | | Heating degree days | | 150 | | 222 | | 610 | | 608 | | | | | | | | | | | | Reliability statistics (b): | | | | | | | | | | System Average Interruption Duration Index (SAIDI)
(non-storm) | | | | | | 74.7 | | 70.0 | | System Average Interruption Frequency Index (SAIFI) (non-storm) | | | | | | 1.1 | | 1.0 | | Customer Average Interruption Duration Index (CAIDI) (non-storm) | | | | | | 69.8 | | 70.7 | | Electricity points of delivery (end of period and in thousands): | | | | | | | | | | Electricity distribution points of delivery (based on number of active meters) | | | | | | 4,046 | | 3,969 | | | | | | | | | | | | Operating revenues ($ millions) : | | | | | | | | | | Revenues contributing to earnings: | | | | | | | | | | Distribution base revenues | | | | | | | | | | Residential (c) | | $ 311 | | $ 290 | | $ 1,477 | | $ 1,334 | | LC&I (d) | | 323 | | 302 | | 1,283 | | 1,162 | | Other (e) | | 33 | | 30 | | 126 | | 132 | | Total Distribution base revenues (f) | | 667 | | 622 | | 2,886 | | 2,628 | | Transmission base revenues (TCOS revenues) | | | | | | | | | | Billed to third-party wholesale customers | | 263 | | 238 | | 1,050 | | 959 | | Billed to REPs serving Oncor distribution customers, through TCRF | | 143 | | 134 | | 574 | | 539 | | Total TCOS revenues | | 406 | | 372 | | 1,624 | | 1,498 | | Other miscellaneous revenues | | 39 | | 26 | | 112 | | 109 | | Total revenues contributing to earnings | | 1,112 | | 1,020 | | 4,622 | | 4,235 | | | | | | | | | | | | Revenues collected for pass-through expenses: | | | | | | | | | | TCRF – third-party wholesale transmission service | | 341 | | 326 | | 1,394 | | 1,291 | | EECRF and other revenues | | 19 | | 13 | | 66 | | 60 | | Total revenues collected for pass-through expenses | | 360 | | 339 | | 1,460 | | 1,351 | | Total operating revenues | | $ 1,472 | | $ 1,359 | | $ 6,082 | | $ 5,586 |