Oncor announces 5-year base capital plan of $47.5B for 2026-2030

Oncor announces 5-year base capital plan of $47.5B for 2026-2030

Oncor Announces $47.5 Billion 2026–2030 Capital Plan to Support Texas Grid Expansion

Oncor Electric Delivery Company LLC has unveiled a revised five-year capital plan of $47.5 billion for 2026–2030, marking a significant increase from its prior 2025–2029 plan of $36.1 billion. The updated strategy reflects growing demand for transmission and distribution infrastructure in Texas, driven by population growth, industrial expansion, and the state's energy transition.

The 2026–2030 plan includes $7.1 billion allocated for 2026 alone, with key priorities including $3 billion for the System Resiliency Plan, $2 billion for Permian Basin reliability projects, and $4 billion for distribution upgrades according to the company. Additional funding will address interconnection requests from commercial and industrial (C&I) customers, including data centers and renewable energy projects. As of December 2024, Oncor reported 137 gigawatts of potential C&I load in its interconnection queue, a 250% increase from 2023.

The plan also incorporates $12 billion in potential incremental capital opportunities, such as updates to the System Resiliency Plan and projects under ERCOT's 765-kV Strategic Transmission Expansion Plan (STEP) according to Oncor's announcement. These initiatives aim to address rising peak demand, which ERCOT projects will exceed 150 gigawatts by 2030.

Oncor's 2024 financial results underscore its capacity to fund the expanded plan. The company reported $968 million in net income for the year ended December 31, 2024, driven by higher revenues from rate adjustments and customer growth, despite challenges like milder weather and rising interest costs. As of February 2025, Oncor maintained $3.1 billion in liquidity, with plans to issue $4–5 billion in long-term debt annually through 2026.

Regulatory filings and infrastructure projects, including 4,300 miles of transmission and distribution lines placed into service in 2024, highlight Oncor's progress in meeting Texas' energy needs. The company also anticipates filing a base rate review in 2025 and will continue submitting Certificates of Convenience and Necessity for projects in the Permian Basin Reliability Plan.

The updated capital plan underscores Oncor's role in supporting Texas' economic growth while addressing reliability, safety, and affordability challenges in an evolving energy landscape.