Oncor to propose rate increase, says 5-year capital expenditures could ‘soar’ by $12B

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Oncor Electric has announced plans to request a rate increase of approximately $834 million from Texas regulators, which would result in a 4.7% rise in monthly bills for customers. This increase is primarily aimed at supporting a $36 billion five-year capital spending plan that includes upgrades to transmission and distribution systems, as well as investments in technology. Additionally, Oncor has identified another $12 billion in potential projects that could further elevate its capital expenditures over the next five years.

Nearly 45% of the proposed rate increase is intended to recover costs associated with storm-related damages, reflecting the utility's experience of facing about one major storm every 12 days over the past three years. The remaining increase will address rising operational costs due to inflation and debt expenses. Oncor's current rates are based on costs from 2021, and the utility emphasizes that the decision to file for this rate review was made after careful consideration, as it seeks to minimize the impact of increased storms on its customers.