Oncor's 2024 Financial Performance and Major Capital Plan Unveiled
Oncor Electric Delivery Company LLC Reports 2024 Financial Results
Oncor Electric Delivery Company LLC reported a net income of $968 million for the year ending December 31, 2024, reflecting an increase from $864 million in 2023. The rise of $104 million can be attributed to greater overall revenues driven by increased interim rates, higher transmission billing units, and an expanding customer base. This growth, although partially offset by lower customer consumption due to milder weather, contributes to Oncor's overarching mission to enhance service reliability.
Recognition and Team Dedication
CEO Allen Nye commended the Oncor team's resilience and dedication. In recognition of their efforts, Oncor received the EEI Emergency Response Award for exceptional storm restoration services. Nye emphasized the company's commitment to continuously adapt to periods of significant growth, striving to meet customer demand through impactful investments aimed at strengthening the grid.
Ongoing Growth in Texas
As Texas experiences unprecedented energy demands, Oncor has committed to substantial capital investments to enhance transmission and distribution capacity. In 2024, the company grew its premise count by 77,000 while placing over $2 billion in transmission projects into service. The continued growth provided Oncor with opportunities to upgrade approximately 4,300 miles of lines, reflecting its commitment to improving infrastructure.
Capital Plan for 2025-2029
Oncor has announced a comprehensive five-year capital plan projecting approximately $36.1 billion allocated for the 2025 to 2029 period with an immediate spend of $7.1 billion planned for 2025. This plan includes nearly $3 billion dedicated to Oncor's System Resiliency Plan, vital for maintaining reliability amidst growing demand. The Permian Basin Reliability Plan also factors into this investment, demonstrating Oncor's proactive approach to infrastructure needs.
Operational Performance and Safety Enhancements
In February 2025, Oncor was awarded the EEI Emergency Response Award for its effective responses to severe storm activity. Furthermore, safety metrics showed significant improvements, including a reduction in injury rates, demonstrating the company's adherence to safety practices during operations.
Regulatory Review and Future Investments
Oncor is considering a comprehensive base rate review, and has already filed requests regarding interim transmission cost and distribution recovery adjustments, reflecting the necessity of addressing Texas's infrastructure needs. The approval of Oncor's System Resiliency Plan, which encompasses nearly $3 billion in capital expenditures, underscores the company’s mission to maintain reliability in its services.
Liquidity and Financial Stability
As of February 2025, Oncor reported available liquidity of approximately $3.1 billion, ensuring they can meet short-term obligations and capital requirements over the upcoming year. The company plans significant long-term debt issuances, indicating confidence in future financial performance.
About Oncor
Oncor Electric Delivery Company LLC, headquartered in Dallas, specializes in electricity transmission and distribution, providing reliable service to over 4 million customers across Texas. Operating the largest transmission system in the state, Oncor focuses on innovative asset management practices to meet customer needs effectively. The governance structure includes a Board of Directors mainly composed of independent directors, ensuring a balanced approach to leadership.
Frequently Asked Questions
What financial results did Oncor report for 2024?
Oncor reported a net income of $968 million for 2024, an increase from $864 million in 2023.
What is Oncor's capital plan for the next five years?
The capital plan for 2025-2029 is approximately $36.1 billion, with $7.1 billion projected for 2025.
How has Oncor improved safety during operations?
Oncor's safety metrics showed significant improvements in injury rates, highlighting their commitment to operational safety.
What strategic initiatives is Oncor focusing on?
Oncor is currently prioritizing infrastructure resilience, regulatory adjustments, and expansion of energy capacity.
Where can I find more information about Oncor?
Additional information about Oncor can be found on their official website, detailing their services, recent news, and operational updates.
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