Oncor reports Q2 net income of $259 mln, up $8 mln YoY.

• Oncor Electric Delivery reports Q2 net income of $259 million, up $8 million YoY. • Increase due to higher revenues, customer growth, and updated interim rates. • Revenues driven by system resiliency plan and unified tracker mechanism. • Higher interest, depreciation, and operation/maintenance expenses offset gains.

Oncor Electric Delivery Company LLC (Oncor) reported net income of $259 million for the three months ended June 30, 2025, compared to $251 million in the same period last year. This represents an $8 million increase year-over-year (YoY) [2].

The increase in net income was driven by overall higher revenues, primarily due to updated interim rates to reflect increases in invested capital, an increase in other regulated revenues recognized related to Oncor's system resiliency plan (SRP) and the unified tracker mechanism (UTM) established by Texas House Bill 5247, and customer growth. However, these gains were partially offset by higher interest expense and depreciation expense associated with increases in invested capital, and higher operation and maintenance expense [2].

Oncor's CEO, Allen Nye, highlighted the company's commitment to safely delivering reliable power to its customers, particularly during the peak summer season. The company's financial and operational results reflect its ongoing efforts to strengthen and modernize its system to meet growing demands. During the second quarter, Oncor continued work on its company record $7.1 billion annual capital expenditure plan for 2025 [2].

Key operational updates included the implementation of important components of Oncor's SRP, such as enhanced wildfire risk modeling and the completion of approximately 2,000 miles of resiliency assessments. Additionally, Oncor acquired approximately 20,000 miles of LiDAR data and 2,800 miles of drone imagery, and submitted the remainder of the 765 kV Eastern portion of STEP to the ERCOT Regional Planning Group [2].

Oncor's active large commercial and industrial (LC&I) interconnection queue was approximately 38% higher than at the same time last year, with 552 requests as of June 30, 2025. This growth includes approximately 186 gigawatts from data centers and over 19 gigawatts of load from diverse industrial sectors [2].

The Texas Legislature concluded its regular session on June 2, 2025, with several key legislative outcomes that Oncor believes will positively impact the company and its customers. Texas House Bill 5247, in particular, allows qualifying electric utilities such as Oncor to record costs to a regulatory asset arising from eligible capital investment and apply for interim rate adjustments through an annual UTM filing [2].

In summary, Oncor's Q2 2025 results demonstrate a stable financial performance, driven by higher revenues and customer growth, while also navigating higher operational expenses. The company's strategic initiatives and regulatory environment are key factors influencing its future financial trajectory.

References:
[1] https://www.stocktitan.net/news/SRE/sempra-reports-second-quarter-2025-4e9m5iiqvnv4.html
[2] https://www.prnewswire.com/news-releases/oncor-reports-second-quarter-2025-results-302523759.html