Oncor Files Rate Review with PUCT and Municipal Authorities

Oncor Electric Delivery Company LLC (Oncor) has filed a request for a base rate review with the Public Utility Commission of Texas (PUCT) and the 210 cities within its service area that maintain original jurisdiction over utility rates. The filing is intended to address increased costs associated with infrastructure investments, storm recovery, and inflation.

The proposed rate adjustment would result in an increase of approximately $7 per month for a residential customer using 1,000 kilowatt-hours (kWh) per month — an estimated 4.7% increase to the total monthly electricity bill.

The request outlines three main drivers for the proposed rate changes:

Storm-Related Costs: Oncor reports experiencing an average of 31 major storm events per year over the past three years. Approximately 45% of the requested increase is to recover costs related to these events and to adjust the level of future storm-related funding within rates.
Inflation and Cost Increases: Oncor’s current rates are based on 2021 costs. Since then, the company notes increases in general inflation, wages, insurance premiums, and interest rates. As of the end of 2024, Oncor’s insurance costs had reportedly risen by more than 500% compared to 2021. These inflation-related adjustments account for roughly 20% of the requested increase.
Financial Stability and Investment Support: The company is executing a $36 billion five-year capital plan to support infrastructure expansion and grid reliability. About 25% of the proposed rate adjustment is aimed at preserving Oncor’s financial stability and credit rating to enable access to capital at favorable terms.

“Oncor has been entrusted with the extraordinary responsibility of helping power the unprecedented growth across Texas,” said Debbie Dennis, Senior Vice President, Chief Customer Officer and Chief HR Officer. “We are requesting this rate review as we’re executing on our approximately $36 billion five-year capital plan as we seek to minimize the impacts of increased storms on our customers. These efforts require Oncor to attract, train and maintain the safety of a large and active workforce and obtain materials and equipment on a record scale.”

“Our decision to file this request was not made lightly and we have done our best to absorb higher costs for several years,” Dennis added. “We recognize the potential impacts a rate increase will have on our customers and we do our best to balance these impacts with the company’s ability to continue to meet the needs of our growing state.”

Oncor employs approximately 5,500 individuals and works with nearly 9,000 contractors across its operations.

The rate review process is expected to take six to nine months. During this period, Oncor plans to request a partial interim rate adjustment, subject to refund, pending the final outcome of the case.