DALLAS, May 7, 2024
/PRNewswire/ -- Oncor Electric Delivery Company LLC ("Oncor") today
reported three months ended March 31,
2024 net income of $225
million compared to reported three months ended March 31, 2023 net income of $103 million. This $122
million increase was driven by higher revenues primarily due
to updated interim rates to reflect increases in invested capital,
increases in transmission billing units, higher customer
consumption partially attributable to weather, new base rates
implemented May 1, 2023 and customer
growth, and the write-off of rate base disallowances recorded in
the first quarter of 2023, partially offset by higher costs
associated with increases in invested capital (primarily borrowing
costs and depreciation) and higher operation and maintenance
expense (primarily regulatory asset amortization and self-insurance
reserve accrual recovery amounts in new base rates). Financial and
operational results are provided in Tables A, B, C and D below.
"We are proud to announce Oncor's solid financial performance in
the first quarter of 2024. Our continued focus on operational
excellence is evident in our strong safety and reliability metrics
during the quarter," said Oncor CEO Allen
Nye. "Our team worked hard to prepare our System Resiliency
Plan filing. This strategic initiative, with almost $3 billion in capital expenditures and over
$500 million in operation and
maintenance expense earmarked for critical investments in system
hardening and modernization, cybersecurity, wildfire mitigation,
and other investments designed to make the grid more secure,
reliable, and resilient, reflects our commitment to fortifying our
infrastructure for the future. Pending approval from the Public
Utility Commission of Texas, we
anticipate launching these investments in 2025, to be rolled out
over three years. This plan is not just an investment in
infrastructure; it's an investment in creating a more secure and
more intelligent grid that is better able to withstand and more
quickly recover from the wide range of threats impacting our
customers."
System Resiliency Plan ("SRP") Filed
Yesterday, Oncor
filed its first SRP for Public Utility Commission of Texas ("PUCT") approval. Oncor's SRP (PUCT
Docket No. 56545) requests approval of approximately $2.9 billion in capital investment and
$520 million in operation and
maintenance ("O&M") expenses over a three-year period to
enhance the resiliency of its transmission and distribution system.
The three-year period will commence upon PUCT approval of the plan,
but is anticipated to be for the years 2025 through 2027. The
proposed SRP requests capital investment and O&M spend for the
following key resiliency measures:
- Overhead and Underground Resiliency and Modernization –
Approximately $1.830 billion in
proposed spend to modernize and harden legacy overhead system
(poles, crossarms, lightning protection and capacity) and
underground system with injection/replacement and switchgear
automation;
- Continued Optimization of Distribution Automation –
Approximately $510 million in
proposed spend to enable, expand and optimize distribution
automation through new ties, capacity and intelligent
switches;
- Expanded Vegetation Management ("VM") – Approximately
$285 million in proposed spend to
expand VM along laterals and leverage remote-sensing capabilities
such as satellite and laser imaging, detection and ranging,
commonly known as LiDAR;
- Enhanced Cybersecurity Risk Mitigation – Approximately
$525 million in proposed spend to
enhance cybersecurity risk mitigation, enhance and secure Oncor's
digital backbone infrastructure and other measures;
- Improved Physical Security – Approximately $80 million in proposed spend to improve physical
security, including video and event correlation systems and asset
protection; and
- Enhanced Wildfire Mitigation – Oncor estimates that
approximately $900 million of the
total proposed spend under the SRP will enhance its wildfire
mitigation efforts, consisting of $182
million in specific wildfire mitigation measures as well as
the implementation of the overhead and underground resiliency and
modernization and expanded distribution automation measures
described above in areas at the highest risk for wildfires. The SRP
offers Oncor an opportunity to advance and accelerate its wildfire
mitigation strategies through additional investments in fire safe
device deployment, advanced wildfire risk modeling, and
strengthening, modernization and protection of assets in wildfire
mitigation zones.
Oncor further believes these measures will provide a substantial
reduction in outage minutes for customers, while also expanding and
accelerating Oncor's efforts around wildfire risk mitigation, the
security of the grid, vegetation management and the expanded
deployment of smart grid technologies. These investments, if
approved, are expected to enable Oncor's transmission and
distribution system to better withstand and more quickly recover
from the wide range of extreme weather conditions and other risks
Oncor experiences across its diverse service area.
The statute provides that the PUCT will review and approve,
modify or deny a filed plan within 180 days. Oncor cannot predict
the outcome of the proceeding. To the extent Oncor's SRP is
approved by the PUCT, Oncor intends to recover distribution-related
costs through its interim distribution cost recovery factor
adjustments, with the unrecovered distribution-related O&M
expenses, depreciation expenses and return on the capital to be
recognized as a regulatory asset.
The amount of capital expenditures ultimately approved as part
of Oncor's SRP program, would be incremental to Oncor's
$24.2 billion of planned capex for
the five-year period 2024-2028 announced earlier this year.
Operational Highlights and Growth
Throughout its
operations, reliability and safety remain a primary focus at Oncor.
For the industry's primary benchmark for reliability, System
Average Interruption Duration Index (non-storm), Oncor's customers
continued to see a decrease in the average minutes of outage in the
twelve months ended March 31, 2024
compared to the twelve months ended March
31, 2023. On the safety front, Oncor's Days Away, Restricted
and Transferred Rate and Preventable Vehicle Accident Rate
decreased 26% and 61%, respectively, in the first quarter of 2024
as compared to the first quarter of 2023.
Ongoing growth within Texas as
a whole, and within Oncor's service territory, continues to be a
driver of operational activity. Oncor increased its premise count
by 18,000 in the first quarter of 2024 as compared to 17,000 in the
first quarter of 2023, and at the end of April reached a milestone
in exceeding four million premises. Additionally, Oncor placed
approximately $161 million of
transmission projects into service in the first quarter of 2024 as
compared to placing approximately $94
million of transmission projects into service in the first
quarter of 2023. The continued growth across Oncor's service
territory resulted in the construction or upgrading of
approximately 24 circuit miles of transmission lines and included 9
major substation projects and 3 major switching station projects,
all being placed into service in the first quarter of 2024.
At March 31, 2024, Oncor had 781
active generation and large commercial and industrial ("LC&I"
and also known as retail) transmission point of interconnection
("POI") requests in queue, representing a 20% increase as compared
to March 31, 2023. Of the 482 active
generation POI requests in queue at March
31, 2024, 46% are solar, 42% are storage, 9% are wind and 3%
are gas. LC&I requests come from customers across a diverse
group of industries, including many with electricity loads that
represent the potential for hundreds of megawatts of new electric
load, such as data centers. Of the 299 active LC&I transmission
POI requests in Oncor's queue, more than 25% of the projects
represent large load customers that in the aggregate represent over
40 gigawatts of potential load.
In order to address the increased growth in Texas, the Electric Reliability Council of
Texas, Inc. ("ERCOT") recently
announced new load forecasting and planning processes. Relying on
House Bill 5066 passed in the 2023 Texas legislative session, ERCOT
now includes prospective load identified by transmission service
providers like Oncor. As part of the new planning processes, ERCOT
announced last month that it is studying load growth that could
result in a peak demand of approximately 152 gigawatts in 2030.
Previously, ERCOT had projected a peak demand of approximately 111
gigawatts by 2029.
Oncor anticipates that approximately 40% of the 2030 load being
studied by ERCOT is in Oncor's service territory. Oncor's current
five-year capital plan of $24.2
billion (not including amounts approved in its SRP filings)
was developed with the anticipation of some but not all of the
capital investment that would be needed to support this growth. The
number of generation and LC&I customers seeking interconnection
has grown since the capital plan was developed.
As part of its annual renewal process, Oncor recently secured
excess liability policies that maintain $300
million of coverage for wildfire for the period May 1, 2024 through May 1,
2025.
Liquidity
As of May 6,
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 $2.1
billion. Oncor expects cash flows from operations combined
with long-term debt issuances and borrowings under 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.
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 first quarter 2024
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.
Quarterly Report on Form 10-Q
Oncor's Quarterly Report
on Form 10-Q for the period ended March 31,
2024 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.
Oncor Electric
Delivery Company LLC
|
Table A – Condensed
Statements of Consolidated Income (Unaudited)
|
Three Months Ended
March 31, 2024 and 2023
|
|
|
|
Three Months Ended
March 31,
|
|
|
2024
|
|
2023
|
|
|
(dollars in
millions)
|
Operating
revenues
|
|
$
|
1,458
|
|
$
|
1,292
|
Operating
expenses:
|
|
|
|
|
|
|
Wholesale transmission
service
|
|
|
351
|
|
|
321
|
Operation and
maintenance
|
|
|
299
|
|
|
263
|
Depreciation and
amortization
|
|
|
257
|
|
|
240
|
Provision in lieu of
income taxes
|
|
|
47
|
|
|
27
|
Taxes other than
amounts related to income taxes
|
|
|
144
|
|
|
145
|
Write-off of rate base
disallowances
|
|
|
-
|
|
|
55
|
Total operating
expenses
|
|
|
1,098
|
|
|
1,051
|
Operating
income
|
|
|
360
|
|
|
241
|
Other (income) and
deductions – net
|
|
|
(14)
|
|
|
7
|
Non-operating benefit
in lieu of income taxes
|
|
|
(1)
|
|
|
(6)
|
Interest expense and
related charges
|
|
|
150
|
|
|
123
|
Write-off of
non-operating rate base disallowances
|
|
|
-
|
|
|
14
|
Net income
|
|
$
|
225
|
|
$
|
103
|
Oncor Electric
Delivery Company LLC
|
Table B – Condensed
Statements of Consolidated Cash Flows (Unaudited)
|
Three Months Ended
March 31, 2024 and 2023
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
|
2024
|
|
2023
|
|
|
|
(dollars in
millions)
|
|
Cash flows – operating
activities:
|
|
|
|
|
|
|
Net income
|
|
$
|
225
|
|
$
|
103
|
Adjustments to
reconcile net income to cash provided by operating
activities:
|
|
|
|
|
|
|
Depreciation and
amortization, including regulatory amortization
|
|
|
299
|
|
|
260
|
Write-off of rate base
disallowances
|
|
|
-
|
|
|
69
|
Provision in lieu of
deferred income taxes – net
|
|
|
20
|
|
|
-
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
Accounts
receivable
|
|
|
6
|
|
|
70
|
Inventories
|
|
|
(14)
|
|
|
(18)
|
Accounts payable –
trade
|
|
|
(6)
|
|
|
32
|
Regulatory assets –
deferred revenues
|
|
|
(6)
|
|
|
(38)
|
Regulatory assets –
self-insurance reserve
|
|
|
(11)
|
|
|
(104)
|
Other assets and
liabilities
|
|
|
(49)
|
|
|
(113)
|
Cash provided by
operating activities
|
|
|
464
|
|
|
261
|
Cash flows – financing
activities:
|
|
|
|
|
|
|
Issuances of senior
secured notes
|
|
|
-
|
|
|
352
|
Borrowings under term
loans
|
|
|
-
|
|
|
775
|
Repayments under term
loans
|
|
|
-
|
|
|
(100)
|
Borrowings under AR
Facility
|
|
|
300
|
|
|
-
|
Borrowings under $500M
Credit Facility
|
|
|
500
|
|
|
-
|
Net change in
short-term borrowings
|
|
|
(282)
|
|
|
(198)
|
Contributions from
members
|
|
|
240
|
|
|
106
|
Distributions to
members
|
|
|
(125)
|
|
|
(106)
|
Debt discount,
financing and reacquisition costs – net
|
|
|
(2)
|
|
|
(3)
|
Cash provided by
financing activities
|
|
|
631
|
|
|
826
|
Cash flows – investing
activities:
|
|
|
|
|
|
|
Capital
expenditures
|
|
|
(1,109)
|
|
|
(977)
|
Sales tax audit
settlement refund
|
|
|
56
|
|
|
-
|
Other –
net
|
|
|
11
|
|
|
12
|
Cash used in investing
activities
|
|
|
(1,042)
|
|
|
(965)
|
Net change in cash,
cash equivalents and restricted cash
|
|
|
53
|
|
|
122
|
Cash, cash equivalents
and restricted cash – beginning balance
|
|
|
151
|
|
|
98
|
Cash, cash equivalents
and restricted cash – ending balance
|
|
$
|
204
|
|
$
|
220
|
|
|
|
|
|
|
|
|
Oncor Electric
Delivery Company LLC
|
Table C –
Condensed Consolidated Balance Sheets (Unaudited)
|
At March 31, 2024
and December 31, 2023
|
|
|
|
|
|
|
|
|
|
|
At March
31,
|
|
At December
31,
|
|
|
2024
|
|
2023
|
|
|
(dollars in
millions)
|
ASSETS
|
Current
assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
53
|
|
$
|
19
|
Restricted cash,
current
|
|
|
34
|
|
|
24
|
Accounts receivable –
net
|
|
|
945
|
|
|
944
|
Amounts receivable from
members related to income taxes
|
|
|
-
|
|
|
4
|
Materials and supplies
inventories – at average cost
|
|
|
355
|
|
|
341
|
Prepayments and other
current assets
|
|
|
127
|
|
|
101
|
Total current
assets
|
|
|
1,514
|
|
|
1,433
|
Restricted cash,
noncurrent
|
|
|
117
|
|
|
108
|
Investments and other
property
|
|
|
167
|
|
|
158
|
Property, plant and
equipment – net
|
|
|
28,837
|
|
|
28,057
|
Goodwill
|
|
|
4,740
|
|
|
4,740
|
Regulatory
assets
|
|
|
1,518
|
|
|
1,556
|
Right-of-use operating
lease and other assets
|
|
|
146
|
|
|
142
|
Total
assets
|
|
$
|
37,039
|
|
$
|
36,194
|
|
|
|
|
|
|
|
LIABILITIES AND
MEMBERSHIP INTERESTS
|
Current
liabilities:
|
|
|
|
|
|
|
Short-term
borrowings
|
|
$
|
-
|
|
$
|
282
|
Long-term debt,
current
|
|
|
317
|
|
|
-
|
Accounts payable –
trade
|
|
|
605
|
|
|
600
|
Amounts payable to
members related to income taxes
|
|
|
51
|
|
|
27
|
Accrued taxes other
than amounts related to income
|
|
|
99
|
|
|
261
|
Accrued
interest
|
|
|
184
|
|
|
117
|
Operating lease and
other current liabilities
|
|
|
330
|
|
|
338
|
Total current
liabilities
|
|
|
1,586
|
|
|
1,625
|
Long-term debt,
noncurrent
|
|
|
13,782
|
|
|
13,294
|
Liability in lieu of
deferred income taxes
|
|
|
2,360
|
|
|
2,320
|
Regulatory
liabilities
|
|
|
2,982
|
|
|
3,000
|
Employee benefit plan
obligations
|
|
|
1,435
|
|
|
1,442
|
Operating lease and
other obligations
|
|
|
345
|
|
|
305
|
Total
liabilities
|
|
|
22,490
|
|
|
21,986
|
Commitments and
contingencies
|
|
|
|
|
|
|
Membership
interests:
|
|
|
|
|
|
|
Capital account –
number of units outstanding 2024 and 2023 – 635,000,000
|
|
|
14,728
|
|
|
14,388
|
Accumulated other
comprehensive loss
|
|
|
(179)
|
|
|
(180)
|
Total membership
interests
|
|
|
14,549
|
|
|
14,208
|
Total liabilities and
membership interests
|
|
$
|
37,039
|
|
$
|
36,194
|
Oncor Electric
Delivery Company LLC
|
Table D – Operating
Revenues and Statistics
|
Three Months Ended
March 31, 2024 and 2023 (unless otherwise noted); mixed
measures
|
|
|
|
Twelve Months Ended
March 31,
|
|
%
|
|
|
|
2024
|
|
2023
|
|
Change
|
|
Reliability
statistics (a):
|
|
|
|
|
|
|
|
System Average
Interruption Duration Index (SAIDI) (non-storm)
|
|
71.0
|
|
71.9
|
|
(1.3)
|
|
System Average
Interruption Frequency Index (SAIFI) (non-storm)
|
|
1.0
|
|
1.1
|
|
(9.1)
|
|
Customer Average
Interruption Duration Index (CAIDI) (non-storm)
|
|
71.0
|
|
63.7
|
|
11.5
|
|
|
|
|
|
|
|
|
|
Electricity points
of delivery (end of period and in thousands):
|
|
|
|
|
|
|
|
Electricity
distribution points of delivery (based on number of active
meters)
|
|
3,988
|
|
3,912
|
|
1.9
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
Increase
|
|
|
|
2024
|
|
2023
|
|
(Decrease)
|
|
Residential system
weighted weather data (b):
|
|
|
|
|
|
|
|
Cooling degree
days
|
|
25
|
|
31
|
|
(6)
|
|
Heating degree
days
|
|
453
|
|
376
|
|
77
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
%
|
|
|
|
2024
|
|
2023
|
|
Change
|
|
Operating
statistics:
|
|
|
|
|
|
|
|
Electric energy volumes
(gigawatt-hours)
|
|
|
|
|
|
|
|
Residential
|
|
10,465
|
|
9,685
|
|
8.1
|
|
Commercial,
industrial, small business and other
|
|
26,848
|
|
25,094
|
|
7.0
|
|
Total electric energy
volumes
|
|
37,313
|
|
34,779
|
|
7.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
2024
|
|
2023
|
Operating revenues
($ millions)
|
|
|
|
|
|
|
Revenues
contributing to earnings:
|
|
|
|
|
|
|
Distribution base
revenues
|
|
|
|
|
|
|
Residential
(c)
|
|
$
|
329
|
|
$
|
243
|
Large commercial &
industrial (d)
|
|
|
305
|
|
|
270
|
Other (e)
|
|
|
29
|
|
|
38
|
Total distribution
base revenues (f)
|
|
|
663
|
|
|
551
|
Transmission base
revenues (TCOS revenues)
|
|
|
|
|
|
|
Billed to third-party
wholesale customers
|
|
|
262
|
|
|
250
|
Billed to REPs serving
Oncor distribution customers, through TCRF
|
|
|
144
|
|
|
141
|
Total TCOS
revenues
|
|
|
406
|
|
|
391
|
Other miscellaneous
revenues
|
|
|
24
|
|
|
17
|
Total revenues
contributing to earnings
|
|
|
1,093
|
|
|
959
|
|
|
|
|
|
|
|
Revenues collected
for pass-through expenses:
|
|
|
|
|
|
|
TCRF – third-party
wholesale transmission service
|
|
|
351
|
|
|
321
|
EECRF and other
revenues
|
|
|
14
|
|
|
12
|
Total revenues
collected for pass-through expenses
|
|
|
365
|
|
|
333
|
Total operating
revenues
|
|
$
|
1,458
|
|
$
|
1,292
|
______________
|
(a)
|
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.
|
(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)
|
Distribution base
revenues from residential customers are generally based on actual
monthly consumption (kWh). On a weather-normalized basis,
distribution base revenues from residential customers increased
29.8% in the three months ended March 31, 2024 as compared to the
three months ended March 31, 2023.
|
(d)
|
Depending on size and
annual load factor, distribution revenues from LC&I customers
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.
|
(e)
|
Includes distribution
base revenues from small business customers whose billing is
generally based on actual monthly consumption (kWh), lighting sites
and other miscellaneous distribution base revenues.
|
(f)
|
The 20.3% increase in
distribution base revenues in the three months ended March 31, 2024
as compared to the three months ended March 31, 2023 (18.0%
increase on a weather-normalized basis) primarily reflects updated
interim distribution cost recovery factor rates, new base rates
implemented May 1, 2023, higher customer consumption partially
attributable to weather and growth in points of
delivery.
|
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 more than 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