The Texas utility’s massive capital commitment comes alongside a landmark rate settlement and surging demand driven by data centers and industrial growth.

February 27, 2026

Earnings Growth Fueled by New Revenue Mechanisms and Customer Expansion

Oncor Electric Delivery Company closed out 2025 with its strongest financial performance in recent memory, reporting full-year net income of $1.07 billion — a $102 million improvement over the prior year — while simultaneously announcing one of the largest capital investment plans in the history of the U.S. electric utility sector. The Dallas-based transmission and distribution company, which operates the largest such system in Texas, laid out a sweeping $47.5 billion five-year capital plan covering 2026 through 2030, signaling its intent to aggressively expand infrastructure in the face of unprecedented electricity demand growth across the state.

The company’s improved profitability reflected a combination of factors, including the establishment of a new regulatory mechanism known as the Unified Tracker Mechanism (UTM), which consolidates several existing capital recovery tools into a single annual process. The UTM enabled Oncor to begin recognizing revenues tied to qualifying infrastructure investments placed in service during 2025. Updated interim rates reflecting the company’s growing asset base, expanding customer connections, and stronger energy efficiency program bonuses also contributed to the revenue gains.

The fourth quarter was particularly strong. Net income for the three months ending December 31, 2025 reached $250 million, up sharply from $168 million in the same period a year earlier — an increase of nearly 49%. Warmer-than-typical autumn conditions and continued customer growth drove higher electricity volumes in the period, even as interest and depreciation costs rose due to the rapid pace of capital deployment.

Full-year operating revenues climbed to $6.78 billion from $6.08 billion in 2024. The company’s capital expenditures for the year totaled $6.76 billion, nearly $2.1 billion more than the prior year, reflecting the acceleration of major transmission and distribution buildout projects across Texas.

A Historic Capital Plan Rooted in Texas Load Growth

The centerpiece of the announcement is Oncor’s updated five-year base capital plan, which totals $47.5 billion — an increase of approximately $11.4 billion compared to the previous five-year plan. Projected annual spending breaks down as follows:

• 2026: ~$9.0 billion
• 2027: ~$10.0 billion
• 2028: ~$10.1 billion
• 2029: ~$9.4 billion
• 2030: ~$9.0 billion

The increase from the prior plan stems from several key additions:

• $6 billion for remaining projects under the Permian Basin Reliability Plan, previously excluded while awaiting regulatory approvals
• $2 billion for new transmission projects beyond that plan
• $2 billion for distribution upgrades and other capital needs
• $1 billion for transmission work under the Delaware Basin Load Integration Plan, also newly approved for inclusion

Importantly, the base plan includes only transmission projects that have already secured regulatory approvals or are part of the Permian Basin initiative. Large commercial and industrial customer interconnections — primarily data centers — are included only if they have reached defined development milestones, providing a measure of protection against speculative spending.

On top of the base plan, Oncor has identified approximately $10 billion in potential incremental capital opportunities for the same period. These include high-voltage 765-kilovolt transmission expansions under a broader statewide strategic plan, additional transmission upgrades awaiting approval, and anticipated updates to the company’s System Resiliency Plan for 2028 through 2030.

Rate Case Settlement Seeks Hundreds of Millions in New Revenue

Oncor also reported progress on a comprehensive base rate review before the Public Utility Commission of Texas (PUCT). In late January 2026, the company filed a stipulation representing a proposed settlement among all parties to the proceeding. If approved, the settlement would authorize:

• A revenue increase of roughly $560 million over 2024 adjusted annualized revenues (~8.8%)
• A regulatory capital structure of 56.5% debt / 43.5% equity
• An authorized return on equity of 9.75% and an authorized cost of debt near 4.94%
• An estimated residential bill increase of approximately 3% per month, based on typical usage of 1,000 kWh at an average retail price of $0.15/kWh

Oncor anticipates that approval of these rates would meaningfully improve the company’s future earnings trajectory, cash flows, and credit profile. PUCT commissioners are expected to rule within the coming months.

Grid Demand from Data Centers and Industry Reaches Staggering Scale

The scale of incoming load requests underscores why Oncor is committing such extraordinary capital. As of the end of 2025, Oncor’s active large commercial and industrial interconnection queue included 650 requests, with data centers alone accounting for approximately 255 gigawatts of anticipated load. Additional industrial sectors contributed more than 18 gigawatts of demand, spanning a wide range of economic activity within the company’s service territory.

The company has identified at least 38 gigawatts of large load interconnection requests that qualify under 2026 regional transmission planning standards and is actively working with additional customers ahead of its April 2026 filing to the Electric Reliability Council of Texas (ERCOT).

Active transmission point-of-interconnection requests grew 24% year over year. To manage financial risk associated with potential project cancellations, Oncor held approximately $3.5 billion in customer collateral for active generation and large commercial and industrial transmission requests as of late February 2026.

Operational Footprint Continues to Expand

During 2025, Oncor built, rebuilt, or upgraded roughly 3,100 circuit miles of transmission and distribution lines and added more than 65,000 new customer premises to its system. The company now serves more than 4.1 million homes and businesses across more than 145,000 circuit miles in Texas.

In the generation interconnection queue, Oncor held 562 active requests as of year-end, composed of:

• 48% battery storage
• 40% solar
• 8% wind
• 4% gas

Winter Storm Response and Liquidity

Oncor’s leadership acknowledged the toll of Winter Storm Fern, which required a large-scale restoration effort. The company mobilized more than 10,000 employees and contractors and strategically pre-positioned equipment across its system to restore service as quickly as conditions permitted. Oncor emphasized its ongoing commitment to hardening its grid against severe weather events.

On the financial side, Oncor reported available liquidity of approximately $3.6 billion as of late February 2026, encompassing cash on hand and capacity under its credit facilities, commercial paper programs, and accounts receivable facility. The company said it expects these resources, combined with projected operating cash flows and planned financing activities, to be sufficient to fund capital expenditures, debt maturities, and operational needs for at least the next twelve months.

With total assets growing to $47.8 billion from $40.5 billion a year earlier, and an ambitious capital agenda backed by regulatory support, Oncor is positioning itself as a central enabler of Texas’s economic and energy future.