1. Oncor's Q1 2025 net income decreased to $181 million from $225 million in Q1 2024. 2. Revenue growth due to increased customer consumption and updated interim rates. 3. Oncor anticipates higher capital expenditures due to ERCOT PBRP project approvals. 4. Active interconnection requests increased by 35% year-over-year in Q1 2025. 5. Liquid resources of approximately $3.8 billion expected to cover operational needs.
Despite the profit drop, Oncor's revenue growth and strong demand indicators suggest underlying business strength. Historically, such infrastructure developments lead to long-term profitability.
The article discusses Oncor's financial health and infrastructure growth, crucial indicators for its parent company Sempra's value.
Increased capital expenditure for infrastructure and new projects will boost future earnings, aligning with Texas' economic growth trends.
/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."
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.
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.
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.
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," "expects," "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.