Sempra press release
ONCOR REPORTS SECOND QUARTER 2025 RESULTS
NYSE - New York Stock Exchange · Natural Gas · United States
PR Newswire
DALLAS , Aug. 7, 2025 /PRNewswire/ -- Oncor Electric Delivery Company LLC (Oncor) today reported net income of $259 million for the three months ended June 30, 2025 , compared to net income of $251 million in the three months ended June 30, 2024 . The increase in net income of $8 million was driven by overall higher revenues primarily attributable to updated interim rates to reflect increases in invested capital, an increase in other regulated revenues recognized related to Oncor's system resiliency plan (SRP) and the unified tracker mechanism (UTM) established by Texas House Bill 5247, and customer growth, partially offset by higher interest expense and depreciation expense associated with increases in invested capital, and higher operation and maintenance expense. Financial and operational results are provided in Tables A, B, C, D, and E below.
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"As we move through the peak summer season, our team remains steadfast in its commitment to safely delivering reliable power to the more than 13 million Texans we serve," said Oncor CEO Allen Nye . "We work year-round to strengthen and modernize our system to meet the growing demands across our expanding service territory. This past quarter, Oncor filed a rate case to recover historical storm-related costs, support the recruitment, training, and safety of our large and active workforce, and secure materials and equipment at an unprecedented scale. A constructive outcome, combined with supportive legislation passed during the 89th Texas Legislature, will enhance our financial strength and position Oncor to raise the capital necessary to serve our customers and the State during this period of exceptional growth in Texas ."
Oncor also reported net income of $440 million for the six months ended June 30, 2025 , compared to net income of $476 million in the six months ended June 30, 2024 . The decrease in net income of $36 million 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 updated interim rates to reflect increases in invested capital, customer growth, an increase in other regulated revenues recognized related to the SRP and the establishment of the UTM, and higher customer consumption primarily attributable to weather.
Operational Highlights During the second quarter, Oncor continued work on its company record $7.1 billion annual capital expenditure plan for 2025. Key operational updates during the second quarter included implementation of important components of Oncor's SRP, such as, enhanced wildfire risk modeling, completion of approximately 2,000 miles of resiliency assessments (primarily in wildfire mitigation zones), and the acquisition of approximately 20,000 miles of LiDAR data and 2,800 miles of drone imagery.
Additionally, Oncor's team has been hard at work on planning and other pre-construction work related to the 765 kV Electric Reliability Council of Texas , Inc. (ERCOT) Strategic Transmission Expansion Plan (STEP), including Oncor's import lines in the Permian Basin Reliability Plan (PBRP), and submitting the remainder of the 765 kV Eastern portion of STEP to the ERCOT Regional Planning Group in conjunction with other utilities. The joint filings for the Eastern portion of STEP outline approximately $10 billion of projects. The joint filings did not address the remaining lower voltage transmission system upgrades and new transmission facilities needed, which ERCOT estimates will have a cost of $8 – $10 billion . Oncor anticipates it will be responsible for building a significant amount of the total Eastern portion of STEP. During the quarter Oncor filed four new Certificates of Convenience and Necessity (CCNs) for needed transmission projects building on the seven CCNs filed in the first quarter of 2025. Four previously filed projects also received regulatory approvals in the second quarter, clearing the way for new substations and line upgrades to proceed.
In the second quarter of 2025, Oncor built, rebuilt, or upgraded approximately 590 circuit miles of transmission and distribution lines and increased premises by nearly 20,000, reflecting ongoing population and business growth in Texas . Active transmission point-of-interconnection (POI) requests continued to rise in the second quarter, remaining well above year-ago levels. As of June 30, 2025 , Oncor's active large commercial and industrial (LC&I) interconnection queue was approximately 38% higher than at the same time last year. As of June 30, 2025 , Oncor's active LC&I interconnection queue had 552 requests, which includes approximately 186 gigawatts from data centers and over 19 gigawatts of load from diverse industrial sectors demonstrating broad-based industrial growth within Oncor's service territory. Of the 570 active generation POI requests in queue at June 30, 2025 , approximately 49% were storage, 40% were solar, 7% were wind, and 4% were gas.
Oncor is currently in the process of updating its annual capital plan, including assessing the impact of accelerated timelines for critical transmission infrastructure and system upgrades. The company previously announced a $36.1 billion capital plan for the 2025–2029 period and now anticipates that incremental capital expenditures over that timeframe could exceed $12 billion , particularly in the later years of the plan.
Oncor expects to present an initial view of its new five-year capital plan for 2026–2030 to its Board of Directors in October, with a public announcement of the final updated plan anticipated in the first quarter of 2026.
Legislative Outcomes The Texas Legislature concluded its regular session on June 2, 2025 , with several key legislative outcomes that Oncor believes will positively impact the company and its customers. In particular, Oncor believes Texas House Bill 5247 provides benefits to many of its stakeholders. This bill allows qualifying electric utilities such as Oncor to record costs to a regulatory asset arising from eligible capital investment and apply for interim rate adjustments through an annual UTM filing. The UTM is expected to benefit residential customers by ensuring that new large load customers coming to the Oncor system have costs allocated to them appropriately. The UTM also provides deadlines for the timely completion of PBRP and, by combining six annual filings into one as well as extending the deadline for review by the Public Utility of Commission of Texas (PUCT), should reduce the workload for the PUCT.
Oncor plans to make its first UTM filing in the first half of 2026, after the completion of its rate case. In the meantime, Oncor has begun recognizing revenues associated with qualifying investments for eligible transmission and distribution infrastructure placed in service after December 31, 2024 .
The Texas Legislature also passed several new laws and approved significant funding to reduce the risks of wildfires and better prepare the state and local governments to rapidly respond to a wildfire, including a requirement in Texas House Bill 145 that utilities file a wildfire mitigation plan with the PUCT. The PUCT has initiated a rule-making to implement Texas House Bill 145, and Oncor plans to submit its wildfire mitigation plan for approval upon the completion of the PUCT's rule-making.
Regulatory Update On June 26, 2025 , Oncor filed a comprehensive base rate review request with the PUCT and the 210 cities in its service territory that have retained original jurisdiction over rates to adjust electric delivery rates (PUCT Docket No. 58306). The primary drivers of the rate increase requested in the filing are increased storm restoration expenses, rising material and labor costs, higher insurance premiums, and other inflationary pressures experienced by Oncor since 2021, the historical test year of its last rate review, as well as modifications to support Oncor's ongoing capital investment program and maintain reliable service amid rapid customer and infrastructure growth. Oncor expects a regulatory decision in the first quarter of 2026. On July 8, 2025 , Oncor filed a request for a partial interim adjustment of rates to begin to recover some of the increased costs while the case is pending, subject to refund or surcharge to the extent the interim rates differ from the final rates approved by the PUCT.
Liquidity and Credit Update As of August 6, 2025 , Oncor's available liquidity totaled approximately $3.9 billion , consisting of cash on hand and available borrowing capacity under its credit facilities, commercial paper programs, and accounts receivable facility. Oncor 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.
On July 29, 2025 , S&P Global Ratings (S&P) downgraded Oncor's issuer credit rating from "A" to "A-," citing elevated wildfire risk as a result of changing climate conditions and the absence of liability caps or affirmative legal defenses in Texas . S&P also revised Oncor's outlook from "negative" to "stable." In its press release, S&P noted that it expects Oncor's financial measures to benefit from ratemaking changes implemented under Texas House Bill 5247. S&P also noted that its base case assumes that Oncor receives a constructive rate case order.
Sempra Internet Broadcast Today Sempra (NYSE: SRE) will broadcast a live discussion of its earnings results over the Internet today at 12 p.m. ET , which will include discussion of second 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 June 30, 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 June 30, | | | Six Months Ended June 30, | | | | | | | | | | 2025 | | 2024 | | 2025 | | 2024 | | | | | | | | (U.S. dollars in millions) | | | | | | | | | | | | Operating revenues | | $ | 1,654 | | $ | 1,492 | | $ | 3,202 | | $ | 2,950 | | Operating expenses: | | | | | | | | | | | | | | Wholesale transmission service | | | 367 | | | 351 | | | 720 | | | 702 | | Operation and maintenance | | | 368 | | | 295 | | | 738 | | | 594 | | Depreciation and amortization | | | 290 | | | 261 | | | 577 | | | 518 | | Provision in lieu of income taxes | | | 55 | | | 53 | | | 94 | | | 100 | | Taxes other than amounts related to income taxes | | | 142 | | | 136 | | | 289 | | | 280 | | Total operating expenses | | | 1,222 | | | 1,096 | | | 2,418 | | | 2,194 | | Operating income | | | 432 | | | 396 | | | 784 | | | 756 | | Other (income) and deductions – net | | | (19) | | | (16) | | | (32) | | | (30) | | Non-operating benefit in lieu of income taxes | | | - | | | - | | | (1) | | | (1) | | Interest expense and related charges | | | 192 | | | 161 | | | 377 | | | 311 | | Net income | | $ | 259 | | $ | 251 | | $ | 440 | | $ | 476 |
| Oncor Electric Delivery Company LLC
Table B – Condensed Statements of Consolidated Cash Flows (Unaudited) | | | | | | | | | | | | | | | | | | Six Months Ended June 30, | | | | | | | | 2025 | | 2024 | | | | | | (U.S. dollars in millions) | | | | | | Cash flows – operating activities: | | | | | | | | Net income | | $ | 440 | | $ | 476 | | Adjustments to reconcile net income to cash provided by operating activities: | | | | | | | | Depreciation and amortization, including regulatory amortization | | | 659 | | | 602 | | Provision in lieu of deferred income taxes – net | | | 77 | | | 57 | | Changes in operating assets and liabilities: | | | | | | | | Accounts receivable | | | (48) | | | (202) | | Inventories | | | (79) | | | (28) | | Accounts payable – trade | | | 24 | | | 162 | | Regulatory assets – recoverable SRP | | | (70) | | | - | | Regulatory assets – recoverable UTM | | | (19) | | | - | | Regulatory under/over recoveries – net | | | 6 | | | (51) | | Regulatory assets – self-insurance reserve | | | (146) | | | (236) | | Customer deposits | | | 33 | | | 25 | | Pension and OPEB plans | | | (132) | | | (7) | | Other – assets | | | (102) | | | (150) | | Other – liabilities | | | (49) | | | (10) | | Cash provided by operating activities | | | 594 | | | 638 | | Cash flows – financing activities: | | | | | | | | Issuances of senior secured notes | | | 3,105 | | | 1,442 | | Repayments of senior secured notes | | | (350) | | | (500) | | Borrowings under AR Facility | | | 510 | | | 540 | | Repayments under AR Facility | | | (510) | | | (400) | | Borrowings under $500M Credit Facility | | | - | | | 500 | | Payment for senior secured notes extinguishment | | | (441) | | | - | | Net change in short-term borrowings | | | (594) | | | (282) | | Capital contributions from members | | | 1,210 | | | 480 | | Distributions to members | | | (354) | | | (251) | | Debt premium, discount, financing and reacquisition costs – net | | | (38) | | | (15) | | Cash provided by financing activities | | | 2,538 | | | 1,514 | | Cash flows – investing activities: | | | | | | | | Capital expenditures | | | (2,821) | | | (2,196) | | Sales tax audit settlement refund | | | - | | | 56 | | Other – net | | | 22 | | | 20 | | Cash used in investing activities | | | (2,799) | | | (2,120) | | Net change in cash, cash equivalents and restricted cash | | | 333 | | | 32 | | Cash, cash equivalents and restricted cash – beginning balance | | | 262 | | | 151 | | Cash, cash equivalents and restricted cash – ending balance | | $ | 595 | | $ | 183 |
| Oncor Electric Delivery Company LLC
Table C – Condensed Consolidated Balance Sheets (Unaudited) | | | | | | | | | | At June 30, | | At December 31, | | | | | | 2025 | | 2024 | | | | | | (U.S. dollars in millions) | | | | | | ASSETS | | | | | | | | Current assets: | | | | | | | | Cash and cash equivalents | | $ | 340 | | $ | 36 | | Restricted cash, current | | | 11 | | | 20 | | Accounts receivable – net | | | 1,026 | | | 970 | | Amounts receivable from members related to income taxes | | | 30 | | | 30 | | Materials and supplies inventories – at average cost | | | 541 | | | 462 | | Prepayments and other current assets | | | 165 | | | 124 | | Total current assets | | | 2,113 | | | 1,642 | | Restricted cash, noncurrent | | | 244 | | | 206 | | Investments and other property | | | 185 | | | 183 | | Property, plant and equipment – net | | | 34,171 | | | 31,769 | | Goodwill | | | 4,740 | | | 4,740 | | Regulatory assets | | | 1,817 | | | 1,671 | | Right-of-use operating lease assets | | | 231 | | | 209 | | Other noncurrent assets | | | 77 | | | 31 | | Total assets | | $ | 43,578 | | $ | 40,451 | | | | | | | | | | LIABILITIES AND MEMBERSHIP INTERESTS | | | | | | | | Current liabilities: | | | | | | | | Short-term borrowings | | $ | - | | $ | 594 | | Accounts payable – trade | | | 966 | | | 770 | | Amounts payable to members related to income taxes | | | 17 | | | 29 | | Accrued taxes other than amounts related to income | | | 171 | | | 274 | | Accrued interest | | | 173 | | | 149 | | Operating lease and other current liabilities | | | 328 | | | 367 | | Total current liabilities | | | 1,655 | | | 2,183 | | Long-term debt, noncurrent | | | 17,605 | | | 15,234 | | Liability in lieu of deferred income taxes | | | 2,658 | | | 2,552 | | Regulatory liabilities | | | 2,960 | | | 2,973 | | Employee benefit plan obligations | | | 1,235 | | | 1,384 | | Operating lease obligations | | | 211 | | | 193 | | Other noncurrent obligations | | | 376 | | | 302 | | Total liabilities | | | 26,700 | | | 24,821 | | Commitments and contingencies | | | | | | | | Membership interests: | | | | | | | | Capital account – number of units outstanding at June 30, 2025 and December 31, 2024 – 635,000,000 | | | 17,110 | | | 15,814 | | Accumulated other comprehensive loss | | | (232) | | | (184) | | Total membership interests | | | 16,878 | | | 15,630 | | Total liabilities and membership interests | | $ | 43,578 | | $ | 40,451 |
| Oncor Electric Delivery Company LLC
Table D – Operating Statistics
Mixed Measures | | | | | | | | | | | | | | | | | | Twelve Months Ended June 30, | | % | | | | | | 2025 | | 2024 | | Change | | Reliability statistics (a): | | | | | | | | System Average Interruption Duration Index (SAIDI) (non-storm) | | 79.4 | | 70.4 | | 12.8 | | System Average Interruption Frequency Index (SAIFI) (non-storm) | | 1.1 | | 1.0 | | 10.0 | | Customer Average Interruption Duration Index (CAIDI) (non-storm) | | 70.9 | | 72.6 | | (2.3) | | | | | | | | | | Electricity points of delivery (end of period and in thousands): | | | | | | | | Electricity distribution points of delivery (based on number of active meters) | | 4,084 | | 4,008 | | 1.9 |
| | | Three Months Ended June 30, | | Increase | | Six Months Ended June 30, | | Increase | | | | | | | | 2025 | | 2024 | | (Decrease) | | 2025 | | 2024 | | (Decrease) | | Residential system weighted weather data (b): | | | | | | | | | | | | | | Cooling degree days | | 570 | | 652 | | (82) | | 598 | | 677 | | (79) | | Heating degree days | | 17 | | 6 | | 11 | | 589 | | 459 | | 130 | | | | | | | | | | | | | | | | | | Three Months Ended June 30, | | % | | Six Months Ended June 30, | | % | | | | | | | | 2025 | | 2024 | | Change | | 2025 | | 2024 | | Change | | Operating statistics: | | | | | | | | | | | | | | Electric energy volumes (gigawatt-hours) | | | | | | | | | | | | | | Residential | | 11,280 | | 11,432 | | (1.3) | | 22,533 | | 21,896 | | 2.9 | | Commercial, industrial, small business and other | | 30,946 | | 28,911 | | 7.0 | | 58,699 | | 55,760 | | 5.3 | | Total electric energy volumes | | 42,226 | | 40,343 | | 4.7 | | 81,232 | | 77,656 | | 4.6 |
| | | | | | | | | | | | | (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, our 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 our 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. | | | | | | | | | |