DALLAS, Feb. 27,
2024 /PRNewswire/ -- Oncor Electric Delivery Company
LLC ("Oncor") today reported twelve months ended December 31, 2023 net income of $864 million compared to twelve months ended
December 31, 2022 net income of
$905 million. This $41 million decrease was driven by higher costs
associated with increases in invested capital (primarily borrowing
costs and depreciation), higher operation and maintenance expense
(primarily regulatory asset amortization and self-insurance reserve
accrual recovery amounts in new base rates) and the write-off of
rate base disallowances recorded in the first quarter of 2023
resulting from the Public Utility Commission of Texas' ("PUCT") final order in Oncor's
comprehensive base rate review in PUCT Docket No. 53601, partially
offset by higher revenues primarily attributable to updated interim
rates to reflect increases in invested capital, increases in
transmission billing units as a result of certain increases in
average Electric Reliability Council of Texas, Inc. ("ERCOT") peak demand, the new
base rates implemented May 1, 2023
following the PUCT's final order in the base rate review and
customer growth.
"Texas continues to secure
major investments from world-class companies like Oncor to further
bolster our critical infrastructure and the resiliency of the
Texas electric grid," said
Governor Greg Abbott. "Oncor's
announcement today of a new $24.2
billion, five-year capital expenditures plan is a testament
to Texas' ongoing partnerships
with companies to boost economic growth in our state in tandem with
making our state's electric grid more reliable and resilient for
generations to come. As Texas'
population and economy continues to grow, I look forward to
continuing to work with electricity providers like Oncor to help
build an even bigger, better Texas
for all."
"As we reflect on our performance in the fourth quarter, and
throughout 2023, it's clear that we're on an extraordinary and
diverse growth path across our service area. This growth is driving
our largest-ever capital plan, which will expand our investments in
the ERCOT market and also help make our service more reliable,
helping to better serve both new and existing customers," said
Oncor CEO Allen Nye. "We also expect
our first system resiliency plan filing later this year will lay
out additional strategic investments in system hardening and
modernization, enhanced vegetation management, wildfire mitigation,
new technology and other resiliency measures over a three-year
period. This will help us deliver a safer, smarter and more
resilient electric grid for our state. As Texas continues to grow, it's crucial that we
continue to build the electric infrastructure needed for the coming
demand."
Oncor's reported net income of $181
million in the three months ended December 31, 2023 compared favorably to net
income of $164 million in the three
months ended December 31, 2022. This
$17 million increase was driven by
higher revenues primarily attributable to updated interim rates to
reflect increases in invested capital, the new base rates
implemented May 1, 2023 and customer
growth, partially offset by higher costs associated with increases
in invested capital (primarily borrowing costs and depreciation),
higher operation and maintenance expense (primarily regulatory
asset amortization and self-insurance reserve accrual recovery
amounts in new base rates) and lower customer consumption due to
milder weather in the quarter.
Oncor's total distribution base revenues in the twelve months
ended December 31, 2023 as compared
to the twelve months ended December 31,
2022 increased 7.4% (9.2% increase on a weather-normalized
basis). The change in Oncor's total distribution base revenues in
the twelve months ended December 31,
2023 included a 9.8% increase in distribution base revenues
from residential customers (13.9% increase on a weather-normalized
basis) and an 8.2% increase in distribution base revenues from
large commercial and industrial ("LC&I") customers. Oncor's
total distribution base revenues in the three months ended
December 31, 2023 as compared to the
three months ended December 31, 2022
increased 11.3% (15.2% increase on a weather-normalized basis). The
change in Oncor's total distribution base revenues in the fourth
quarter of 2023 included a 15.5% increase in distribution base
revenues from residential customers (24.0% increase on a
weather-normalized basis) and a 13.5% increase in distribution base
revenues from LC&I customers. Financial and operational results
are provided in Tables A, B, C, and D below.
Growth Within Oncor's Service Territory
Oncor
experienced another strong year in 2023 with solid growth in
premises and the construction of new transmission and distribution
lines, as well as the setting of new year-end company records for
transmission point-of-interconnection ("POI") requests, all while
remaining focused on safety and reliability.
Ongoing growth within Texas as
a whole, and Oncor's service territory in particular, continues to
be a driver of distribution and transmission operational activity.
Oncor increased its premise count by 73,000 in 2023 as compared to
64,000 in 2022. Additionally, Oncor placed approximately
$1.6 billion of transmission projects
into service in 2023. The continued growth across Oncor's service
territory resulted in the construction or upgrading of
approximately 390 circuit miles of transmission lines and included
42 major substation projects and 34 major switching station
projects, all being placed into service in 2023. The dynamic growth
across Oncor's service territory results in the continued
opportunity to deploy capital to grow the Oncor system.
In 2023, Oncor set company records for annual active and new
generation and retail transmission POI requests in queue. At
December 31, 2023, Oncor had 763
active generation and retail transmission POI requests in queue,
representing a 25% increase as compared to December 31, 2022. Of the 481 active generation
POI requests in queue at December 31,
2023, 46% are solar, 42% are storage, 9% are wind and 3% are
gas. Additionally, in 2023, Oncor entered 332 new generation and
retail transmission POI requests into queue, representing a 19%
increase as compared to 2022.
Oncor's service territory continues to be vibrant, diverse and
growing and has seen significant growth in commercial and
industrial customers representing electric loads that are
substantially larger than traditional commercial projects. Data
center development continues to be robust across the Oncor service
territory, including new sites that have the potential to support
hyperscale computing and generative artificial intelligence
services. These projects represent the potential for hundreds of
megawatts of new electric load.
Capital Plan Update
Capital expenditures
totaled approximately $3.8 billion in
2023. Oncor's board of directors has approved a capital
expenditures budget of approximately $4.5
billion for 2024. Oncor currently contemplates that its
aggregate capital expenditures plan over the five-year period
2024-2028 will total approximately $24.2
billion, plus additional amounts attributable to capital
expenditures associated with system resiliency plans ("SRPs")
pursuant to recently enacted Texas House Bill 2555 and related
rules promulgated by the PUCT. SRPs are required to cover a minimum
three-year period, and Oncor currently targets filing its first
three-year SRP with the PUCT in the first half of 2024. Texas House
Bill 2555 contemplates that the PUCT will review and approve,
modify or deny a filed SRP within 180 days.
The increase in Oncor's five-year capital plan compared to its
prior five-year capital plan is due primarily to continued
projected growth and expansion of its system, particularly on the
transmission side of Oncor's business as a result of the large
volume of customer interconnection requests and generator
interconnection requests that it has received through 2023 and
expects to continue to receive. The increase is also partially
driven by higher material costs due to tightening supply chains as
well as increases in labor and contractor costs. In addition,
Oncor anticipates that significant potential capital investment
opportunities incremental to its five-year capital plan may be
available as a result of continued growth in ERCOT, particularly on
the transmission side of its business due to increased customer
demand and additional distribution-related reliability and
resiliency needs.
Operational Highlights
Oncor's employees helped to
ensure Texans had reliable power in 2023 as the state experienced
significantly higher than normal summer temperatures in 2023. The
ERCOT market saw 10 new peak demand records and reached a new
all-time record peak demand of 85,508 megawatts on August 10, 2023, reflecting a 6.7% increase over
the prior year's peak. For the industry's primary benchmark for
reliability, System Average Interruption
Duration Index (non-storm), Oncor's customers experienced on
average five fewer minutes of outage in 2023 compared to 2022 – an
improvement of approximately 7%. The extreme heat experienced
during the summer months of 2023 and extreme cold spell experienced
in early January 2024, when ERCOT set
a new record winter peak of 78,138 megawatts, demonstrate the
continuing need for, and effectiveness of, system hardening and
resiliency projects.
In the fourth quarter of 2023, Oncor completed its annual review
of its wildfire mitigation plan, which contains focused initiatives
in areas such as asset management, operational protocols,
vegetation management, system protection technology and stakeholder
engagement. Oncor's wildfire mitigation strategy also includes a
risk modeling tool, through which various risk factors are analyzed
to inform long-term initiatives and real-time operational
protocols, such as identification of wildfire mitigation zones.
Oncor anticipates building on these efforts through new investments
in wildfire mitigation in its inaugural SRP.
Oncor continued to be active in sustainability matters in 2023.
In May, Oncor published its green bond spend report relating to its
inaugural green bond issuance. In October, an independent third
party environmental, social and governance ("ESG") ratings company
issued its annual ESG risk rating of Oncor, improving Oncor's
rating and ranking Oncor in the top 2 percent of electric utilities
rated by that company at that time, reflecting lower ESG risk.
Also, in 2023, Oncor was named as a 2023 Best Places to Work for
Disability Inclusion by Disability:IN.
Liquidity
As of February 26,
2024, Oncor's available liquidity, consisting of cash on
hand and available borrowing capacity under its existing credit
facilities, commercial paper program and accounts receivable
facility ("AR Facility"), totaled $2.5
billion. Oncor expects cash flows from operations combined
with long-term debt issuances and credit agreements as well as
availability under its existing credit facilities, commercial paper
program and AR Facility to be sufficient to fund current
obligations, projected working capital requirements, maturities of
long-term debt and capital expenditures for at least the next
twelve months. Oncor currently expects to issue approximately
$2.0 billion of long-term debt
securities in 2024.
Sempra Internet Broadcast Today
Sempra (NYSE: SRE)
(BMV: SRE) will broadcast a live discussion of its earnings results
over the Internet today at 12 p.m.
ET, which will include discussion of 2023 results and other
information relating to Oncor. Oncor Chief Executive Allen Nye will also participate in the
broadcast. Access to the broadcast is available by logging onto the
Investors section of Sempra's website, sempra.com/investors. Prior
to the conference call, an accompanying slide presentation will be
posted on sempra.com/investors. For those unable to participate in
the live webcast, it will be available on replay a few hours after
its conclusion at sempra.com/investors.
Annual Report on Form 10-K
Oncor's Annual Report on
Form 10-K for the year ended December 31,
2023 will be filed with the U.S. Securities and Exchange
Commission after Sempra's conference call and once filed, will be
available on Oncor's website, oncor.com. The annual financial
statements of Oncor Electric Delivery Holdings Company LLC (which
holds 80.25% of Oncor's outstanding equity interests and is
indirectly wholly owned by Sempra) for the year ended December 31, 2023 will be included as an exhibit
to Sempra's Annual Report on Form 10-K for the year ended
December 31, 2023.
Oncor Electric
Delivery Company LLC
|
Table A – Statements
of Consolidated Net Income
|
Three and Twelve
Months Ended December 31, 2023 and 2022; $ millions
|
|
|
|
Q4 '23
|
|
Q4 '22
|
|
TME '23
|
|
TME '22
|
|
|
|
Operating
revenues
|
|
|
$ 1,359
|
|
|
$
1,263
|
|
|
$
5,586
|
|
$
|
5,243
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Wholesale
transmission service
|
|
|
326
|
|
|
300
|
|
|
1,291
|
|
|
1,162
|
Operation and
maintenance
|
|
|
320
|
|
|
287
|
|
|
1,150
|
|
|
1,055
|
Depreciation and
amortization
|
|
|
249
|
|
|
232
|
|
|
978
|
|
|
904
|
Provision in
lieu of income taxes
|
|
|
39
|
|
|
39
|
|
|
185
|
|
|
201
|
Taxes other than
amounts related to income taxes
|
|
|
124
|
|
|
129
|
|
|
552
|
|
|
561
|
Write-off of
rate base disallowances
|
|
|
-
|
|
|
-
|
|
|
55
|
|
|
-
|
Total
operating expenses
|
|
|
1,058
|
|
|
987
|
|
|
4,211
|
|
|
3,883
|
Operating
income
|
|
|
301
|
|
|
276
|
|
|
1,375
|
|
|
1,360
|
Other (income) and
deductions –
net
|
|
|
(21)
|
|
|
1
|
|
|
(31)
|
|
|
20
|
Non-operating provision
(benefit) in lieu of income taxes
|
|
|
1
|
|
|
(3)
|
|
|
(8)
|
|
|
(10)
|
Interest expense and
related charges
|
|
|
140
|
|
|
114
|
|
|
536
|
|
|
445
|
Write-off of
non-operating rate base disallowances
|
|
|
-
|
|
|
-
|
|
|
14
|
|
|
-
|
Net
income
|
|
$
|
181
|
|
$
|
164
|
|
$
|
864
|
|
$
|
905
|
Oncor Electric
Delivery Company LLC
|
Table B – Statements
of Consolidated Cash Flows
|
Twelve Months Ended
December 31, 2023 and 2022; $ millions
|
|
|
|
|
|
|
|
|
|
|
TME '23
|
|
TME '22
|
|
|
|
|
|
Cash flows — operating
activities:
|
|
|
|
|
|
|
Net
income
|
|
$
|
864
|
|
$
|
905
|
Adjustments to
reconcile net income to cash provided by operating
activities:
|
|
|
|
|
|
|
Depreciation and amortization, including regulatory
amortization
|
|
|
1,117
|
|
|
985
|
Write-off
of rate base disallowances
|
|
|
69
|
|
|
-
|
Provision
in lieu of deferred income taxes – net
|
|
|
61
|
|
|
41
|
Other –
net
|
|
|
(10)
|
|
|
(14)
|
Changes in
operating assets and liabilities:
|
|
|
|
|
|
|
Accounts
receivable
|
|
|
(43)
|
|
|
(138)
|
Inventories
|
|
|
(137)
|
|
|
(32)
|
Accounts
payable – trade
|
|
|
42
|
|
|
45
|
Regulatory
assets – deferred revenues
|
|
|
1
|
|
|
120
|
Regulatory
assets – self-insurance reserve
|
|
|
(232)
|
|
|
(198)
|
Other –
assets
|
|
|
(22)
|
|
|
16
|
Other –
liabilities
|
|
|
90
|
|
|
137
|
Cash
provided by operating activities
|
|
|
1,800
|
|
|
1,867
|
Cash flows — financing
activities:
|
|
|
|
|
|
|
Issuances and
borrowings of long-term debt (excluding AR Facility)
|
|
|
2,975
|
|
|
3,950
|
Repayments of
long-term debt (excluding AR Facility)
|
|
|
(875)
|
|
|
(2,732)
|
Borrowings under
AR Facility
|
|
|
600
|
|
|
-
|
Repayments under
AR Facility
|
|
|
(600)
|
|
|
-
|
Net change in
short-term borrowings
|
|
|
84
|
|
|
(17)
|
Capital
contributions from members
|
|
|
452
|
|
|
425
|
Distributions to
members
|
|
|
(552)
|
|
|
(425)
|
Debt discount,
financing and reacquisition costs – net
|
|
|
(46)
|
|
|
(31)
|
Cash
provided by financing activities
|
|
|
2,038
|
|
|
1,170
|
Cash flows — investing
activities:
|
|
|
|
|
|
|
Capital
expenditures
|
|
|
(3,824)
|
|
|
(3,049)
|
Expenditures for
third party in joint project
|
|
|
-
|
|
|
(2)
|
Reimbursement
from third party in joint project
|
|
|
1
|
|
|
6
|
Proceeds from
sales of non-utility properties
|
|
|
9
|
|
|
21
|
Other –
net
|
|
|
29
|
|
|
31
|
Cash used
in investing activities
|
|
|
(3,785)
|
|
|
(2,993)
|
Net change in cash,
cash equivalents and restricted cash
|
|
|
53
|
|
|
44
|
Cash, cash equivalents
and restricted cash — beginning balance
|
|
|
98
|
|
|
54
|
Cash, cash equivalents
and restricted cash — ending balance
|
|
$
|
151
|
|
$
|
98
|
Oncor Electric
Delivery Company LLC
|
Table C –
Consolidated Balance Sheets
|
At December 31, 2023
and 2022; $ millions
|
|
|
|
|
|
|
|
|
|
|
At 12/31/23
|
|
At 12/31/22
|
|
|
|
ASSETS
|
Current
assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
$
19
|
|
|
$
10
|
Restricted cash,
current
|
|
|
24
|
|
|
16
|
Accounts
receivable – net
|
|
|
944
|
|
|
884
|
Amounts
receivable from members related to income taxes
|
|
|
4
|
|
|
-
|
Materials and
supplies inventories — at average cost
|
|
|
341
|
|
|
204
|
Prepayments and
other current assets
|
|
|
101
|
|
|
109
|
Total current assets
|
|
|
1,433
|
|
|
1,223
|
Restricted cash,
noncurrent
|
|
|
108
|
|
|
72
|
Investments and other
property
|
|
|
158
|
|
|
137
|
Property, plant and
equipment – net
|
|
|
28,057
|
|
|
25,203
|
Goodwill
|
|
|
4,740
|
|
|
4,740
|
Regulatory
assets
|
|
|
1,556
|
|
|
1,502
|
Right-of-use operating
lease and other assets
|
|
|
142
|
|
|
161
|
Total assets
|
|
|
$
36,194
|
|
|
$
33,038
|
|
LIABILITIES AND MEMBERSHIP
INTERESTS
|
Current
liabilities:
|
|
|
|
|
|
|
Short-term
borrowings
|
|
|
$
282
|
|
|
$
198
|
Long-term debt,
current
|
|
|
-
|
|
|
100
|
Accounts payable
– trade
|
|
|
600
|
|
|
536
|
Amounts payable
to members related to income taxes
|
|
|
27
|
|
|
45
|
Accrued taxes
other than amounts related to income
|
|
|
261
|
|
|
277
|
Accrued
interest
|
|
|
117
|
|
|
97
|
Operating lease
and other current liabilities
|
|
|
338
|
|
|
330
|
Total current liabilities
|
|
|
1,625
|
|
|
1,583
|
Long-term debt,
noncurrent
|
|
|
13,294
|
|
|
11,128
|
Liability in lieu of
deferred income taxes
|
|
|
2,320
|
|
|
2,182
|
Regulatory
liabilities
|
|
|
3,000
|
|
|
3,014
|
Employee benefit plan
obligations
|
|
|
1,442
|
|
|
1,394
|
Operating lease and
other obligations
|
|
|
305
|
|
|
275
|
Total
liabilities
|
|
|
21,986
|
|
|
19,576
|
Commitments and
contingencies
|
|
|
|
|
|
|
Membership
interests:
|
|
|
|
|
|
|
Capital account
― number of units outstanding 2023
and 2022 – 635,000,000
|
|
|
14,388
|
|
|
13,624
|
Accumulated
other comprehensive loss
|
|
|
(180)
|
|
|
(162)
|
Total
membership interests
|
|
|
14,208
|
|
|
13,462
|
Total liabilities and membership interests
|
|
|
$
36,194
|
|
|
$
33,038
|
Oncor Electric
Delivery Company LLC
|
Table D – Operating
Statistics
|
Three and Twelve
Months Ended December 31, 2023 and 2022; mixed
measures
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q4 '23
|
|
Q4 '22
|
|
TME '23
|
|
TME '22
|
Operating statistics:
|
|
|
|
|
|
|
|
|
Electric energy
volumes (gigawatt-hours):
|
|
|
|
|
|
|
|
|
Residential
|
|
9,146
|
|
10,054
|
|
47,112
|
|
49,648
|
Commercial,
industrial, small business and other
|
|
26,760
|
|
23,626
|
|
109,365
|
|
99,612
|
Total
electric energy volumes
|
|
35,906
|
|
33,680
|
|
156,477
|
|
149,260
|
|
|
|
|
|
|
|
|
|
Operating revenues ($
millions):
|
|
|
|
|
|
|
|
|
Revenues contributing to
earnings:
|
|
|
|
|
|
|
|
|
Distribution
base revenues (a)
|
|
$
622
|
|
$
559
|
|
$
2,628
|
|
$
2,447
|
Transmission
base revenues (TCOS revenues)
|
|
|
|
|
|
|
|
|
Billed to
third-party wholesale customers
|
|
238
|
|
237
|
|
959
|
|
944
|
Billed to
REPs serving Oncor distribution customers,
through
TCRF
|
|
134
|
|
134
|
|
539
|
|
528
|
Total
transmission base revenues
|
|
372
|
|
371
|
|
1,498
|
|
1,472
|
Other
miscellaneous revenues
|
|
26
|
|
23
|
|
109
|
|
112
|
Total revenues
contributing to earnings
|
|
1,020
|
|
953
|
|
4,235
|
|
4,031
|
Revenues collected for pass-through
expenses:
|
|
|
|
|
|
|
|
|
TCRF –
third-party wholesale transmission service
|
|
326
|
|
300
|
|
1,291
|
|
1,162
|
EECRF and other
revenues
|
|
13
|
|
10
|
|
60
|
|
50
|
Total revenues
collected for pass-through expenses
|
|
339
|
|
310
|
|
1,351
|
|
1,212
|
Total
operating revenues
|
|
$
1,359
|
|
$
1,263
|
|
$
5,586
|
|
$
5,243
|
|
|
|
|
|
|
|
|
|
Residential system weighted weather data
(b):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cooling degree
days
|
|
113
|
|
92
|
|
2,268
|
|
2,204
|
Heating degree
days
|
|
222
|
|
360
|
|
608
|
|
971
|
|
|
|
|
|
|
|
|
|
Reliability statistics (c):
|
|
|
|
|
|
TME '23
|
|
TME '22
|
System Average
Interruption Duration Index (SAIDI)
(non-storm)
|
|
|
|
|
|
70.0
|
|
75.0
|
System Average
Interruption Frequency Index (SAIFI)
(non-storm)
|
|
|
|
|
|
1.0
|
|
1.2
|
Customer Average
Interruption Duration Index (CAIDI)
(non-storm)
|
|
|
|
|
|
70.7
|
|
63.5
|
Electricity
distribution points of delivery (based on number
of active
meters) ― end of period and in thousands
|
|
|
|
|
|
3,969
|
|
3,896
|
|
|
_____________
|
(a)
|
In general,
distribution revenues from residential and small business users are
based on actual monthly consumption (kWh), and, depending on size
and annual load factor, revenues from large commercial and
industrial users are based either on actual monthly demand
(kilowatts) or the greater of actual monthly demand (kilowatts) or
80% of peak monthly demand during the prior eleven
months.
|
(b)
|
Degree days are
measures of how warm or cold it is throughout Oncor's service
territory. A degree day compares the average of the hourly outdoor
temperatures during each day to a 65° Fahrenheit standard
temperature. The more extreme the outside temperature, the higher
the number of degree days. A high number of degree days generally
results in higher levels of energy use for space cooling or
heating.
|
(c)
|
SAIDI is the average
number of minutes electric service is interrupted per consumer in a
twelve-month period. SAIFI is the average number of electric
service interruptions per consumer in a twelve-month period. CAIDI
is the average duration in minutes per electric service
interruption in a twelve- month period. In each case, Oncor's
non-storm reliability performance reflects electric service
interruptions of one minute or more per customer. Each of these
results excludes outages during significant storm
events.
|
|
|
Headquartered in Dallas, Oncor
Electric Delivery Company LLC is a regulated electricity
transmission and distribution business that uses superior asset
management skills to provide reliable electricity delivery to
consumers. Oncor (together with its subsidiaries) operates the
largest transmission and distribution system in Texas, delivering electricity to nearly 4
million homes and businesses and operating more than 143,000
circuit miles of transmission and distribution lines in
Texas. While Oncor is owned by two
investors (indirect majority owner, Sempra, and minority owner,
Texas Transmission Investment LLC), Oncor is managed by its Board
of Directors, which is comprised of a majority of disinterested
directors.
Forward-Looking Statements
This news release contains
forward-looking statements relating to Oncor within the meaning of
the Private Securities Litigation Reform Act of 1995, which are
subject to risks and uncertainties. All statements, other than
statements of historical facts, that are included in this news
release, as well as statements made in presentations, in response
to questions or otherwise, that address activities, events or
developments that Oncor expects or anticipates to occur in the
future, including such matters as projections, capital allocation,
future capital expenditures, business strategy, competitive
strengths, goals, future acquisitions or dispositions, development
or operation of facilities, market and industry developments and
the growth of Oncor's business and operations (often, but not
always, through the use of words or phrases such as
"intends," "plans," "will likely result," "are expected to," "will
continue," "is anticipated," "estimated," "forecast," "should,"
"projection," "target," "goal," "objective" and "outlook"),
are forward-looking statements. Although Oncor believes that in
making any such forward-looking statement its expectations are
based on reasonable assumptions, any such forward-looking
statement involves risks, uncertainties and assumptions.
Factors that could cause Oncor's actual results to
differ materially from those projected in such forward-looking
statements include: legislation, governmental policies and orders,
and regulatory actions; legal and administrative proceedings and
settlements, including the exercise of equitable powers by courts;
weather conditions and other natural phenomena, including any
weather impacts due to climate change; acts of sabotage, wars,
terrorist activities, cybersecurity attacks, wildfires, fires,
explosions, hazards customary to the industry, or other emergency
events and the possibility that Oncor may not have adequate
insurance to cover losses or third-party liabilities related to any
such event; actions by credit rating agencies; health epidemics and
pandemics, including their impact on Oncor's business and the
economy in general; interrupted or degraded service on key
technology platforms, facilities failures, or equipment
interruptions; economic conditions, including the impact of a
recessionary environment, inflation, supply chain disruptions,
competition for goods and services, service provider availability,
and labor availability and cost; unanticipated population growth or
decline, or changes in market demand and demographic patterns,
particularly in the ERCOT region; ERCOT grid needs and ERCOT market
conditions, including insufficient electric capacity within ERCOT
or disruptions at power generation facilities that supply power
within ERCOT; changes in business strategy, development plans or
vendor relationships; changes in interest rates or rates of
inflation; significant changes in operating expenses, liquidity
needs and/or capital expenditures; inability of various
counterparties to meet their financial and other obligations to
Oncor, including failure of counterparties to timely perform under
agreements; general industry and ERCOT trends; significant
decreases in demand or consumption of electricity delivered by
Oncor, including as a result of increased consumer use of
third-party distributed energy resources or other technologies;
changes in technology used by and services offered by Oncor;
significant changes in Oncor's relationship with its employees,
including the availability of qualified personnel, and the
potential adverse effects if labor disputes or grievances were to
occur; changes in assumptions used to estimate costs of providing
employee benefits, including pension and retiree benefits, and
future funding requirements related thereto; significant changes in
accounting policies or critical accounting estimates material to
Oncor; commercial bank and financial market conditions,
macroeconomic conditions, access to capital, the cost of such
capital, and the results of financing and refinancing efforts,
including availability of funds and the potential impact of any
disruptions in U.S. capital and credit markets; circumstances which
may contribute to future impairment of goodwill, intangible or
other long-lived assets; financial and other restrictions under
Oncor's debt agreements; Oncor's ability to generate sufficient
cash flow to make interest payments on its debt instruments; and
Oncor's ability to effectively execute its operational
strategy.
Further discussion of risks and uncertainties
that could cause actual results to differ materially from
management's current projections, forecasts, estimates and
expectations is contained in filings made by Oncor with the U.S.
Securities and Exchange Commission. Specifically, Oncor makes
reference to the section entitled "Risk Factors" in its annual and
quarterly reports. Any forward-looking statement speaks only as of
the date on which it is made, and, except as may be required by
law, Oncor undertakes no obligation to update any forward-looking
statement to reflect events or circumstances after the date on
which it is made or to reflect the occurrence of unanticipated
events. New factors emerge from time to time, and it is not
possible for Oncor to predict all of them; nor can it assess the
impact of each such factor or the extent to which any factor, or
combination of factors, may cause results to differ materially from
those contained in any forward-looking statement. As such,
you should not unduly rely on such forward-looking
statements.
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SOURCE Oncor Electric Delivery Company LLC