Oncor Reports Third Quarter 2024 Results

Core Insights - Oncor Electric Delivery Company reported a net income of $324 million for the three months ended September 30, 2024, a decrease of $56 million compared to $380 million for the same period in 2023, primarily due to higher interest and depreciation expenses, despite increased revenues from updated interim rates and customer growth [1][2] - For the nine months ended September 30, 2024, Oncor's net income was $800 million, up from $683 million in the same period in 2023, driven by higher revenues from updated rates and customer growth [2] Financial Performance - Operating revenues for the three months ended September 30, 2024, were $1.66 billion, an increase of $68 million from $1.59 billion in the same period in 2023 [18] - Total operating expenses for the three months ended September 30, 2024, were $1.18 billion, compared to $1.09 billion in the same period in 2023, reflecting increased costs in wholesale transmission service and operation and maintenance [11][18] - The company experienced a 1.8% increase in distribution base revenues for the three months ended September 30, 2024, compared to the same period in 2023, with a weather-normalized increase of 13.3% [18][19] Regulatory Developments - Oncor filed an unopposed settlement agreement for its system resiliency plan, which includes approximately $2.9 billion in capital expenditures and $520 million in operation and maintenance expenses to enhance system resiliency [3] - The Permian Basin Reliability Plan, approved by the PUCT, outlines over $13 billion in capital investment for transmission projects, with Oncor expecting to receive a significant portion of these projects [4] Operational Highlights - In the three months ended September 30, 2024, Oncor constructed or upgraded over 800 miles of distribution and transmission lines and connected 19,000 new premises to the ERCOT grid [5] - The company entered 121 new transmission point of interconnection requests, a 38% increase from the same period in 2023, with a total of 884 active requests as of September 30, 2024 [6] Future Outlook - Oncor anticipates announcing a new five-year capital expenditure plan for 2025 through 2029 in early 2025, projecting a 40-50% increase over its previously announced 2024-2028 capital plan of $24.2 billion [8] - As of November 5, 2024, Oncor's available liquidity totaled $1.9 billion, consisting of cash and borrowing capacity [9]