The company attributed the $60 million quarter-over-quarter increase to higher weather-related consumption, increases in transmission and distribution rates, customer growth and other factors.
Oncor Electric on August 4 reported a net income of $229 million for the three months ending June 30, as compared to net income of $169 million for the same financial quarter in 2021.
The company attributed the $60 million quarter-over-quarter increase to higher weather-related consumption, increases in transmission and distribution rates, customer growth and other factors. However, those gains were partially offset by increases in operation and maintenance expenses.
Oncor reported that its distribution base revenues during the most recent quarter increased by 16.1 percent over the same quarter in 2021. This change included a 23.9 percent increase in distribution base revenues from residential customers, and an 11.2 percent increase in distribution base revenues from large commercial and industrial customers.
In comments released to financial analysts on August 4, Oncor chief executive officer Allen Nye noted that Texas is in the middle of one of the hottest summers on record and as a consequence the grid has set several new peak demand records and that, in turn, has led to an increase in power consumption.
During the second quarter, Oncor added 19,000 additional premises to its system, and saw a 73 percent increase in new transmission point-of-interconnection requests, according to Nye. “This represents an all-time record for new transmission interconnection requests,” he said.
SIX-MONTH LOOK BACK
Oncor also provided six-month look-back data, as opposed to data for a single quarter. For example, it reported net income of $423 million during the six months ending June 30, which was an increase from the net income of $337 million over the same six month period from 2021.
Also, during the six months ending June 30, Oncor spent $1.4 billion of its $3 billion 2022 capital plan. Much of this money was spent on the upgrade of approximately 480 miles of power lines, placing in service seven switching stations, and placing in service $239 million of transmission projects.
Oncor provided data regarding transmission interconnections. For example, Oncor reported approximately 525 active transmission point-of-interconnection (“POI”) requests in queue as of June 30, which represents an approximately 62 percent increase in active POI requests compared to June 30, 2021. Of the active generation requests in queue, approximately 51 percent are for solar generators, 35 percent for storage, 9 percent for wind and 4 percent gas, according to the company.
Oncor also noted that during the three months ending June 30 that it had approximately 90 new POI requests, representing an approximately 73 percent increase compared to the prior-year period. If new requests continue at this pace, Oncor projects it will set a company record for new annual transmission interconnection requests during 2022.
BASE RATE REVIEW
The company noted that on May 13 it filed a base rate case calling for a 4.5 increase in its annual revenue requirement. If approved by the Public Utility Commission, the rate adjustment would increase Oncor’s aggregated annual revenue requirement by approximately $251 million. Oncor anticipates the new rates would go into effect by the end of the first quarter of 2023.
Headquartered in Dallas, Oncor operates the state’s largest distribution and transmission system. The company delivers power to more than 3.8 million homes and businesses and operates more than 140,000 miles of transmission and distribution lines. The regulated utility has two investor owners — majority owner Sempra Energy, and minority owner Texas Transmission Investment — but is overseen by an independent board.
More information about Oncor’s financial results can be found here.