DALLAS, Aug. 5, 2021 /PRNewswire/ -- Oncor Electric
Delivery Company LLC ("Oncor") today reported three months ended
June 30, 2021 net income of
$169 million compared to net income
of $176 million in the second quarter
of 2020. The $7 million
quarter-over-quarter decrease in net income was driven by increases
in operation and maintenance expense, costs associated with
additional investment (primarily depreciation and amortization and
property taxes), partially offset by a net increase in revenues
contributing to earnings primarily from increases in base
transmission and distribution rates and customer growth, net of
lower consumption primarily attributable to milder weather.
"I am proud of our second quarter execution and the excellent
performance of the men and women of Oncor. In spite of unseasonably
mild weather, we experienced continued revenue and customer growth,
as people and businesses continued to move to Texas. Our second quarter results again
demonstrate that the Oncor service territory is one of the most
attractive in the nation, with strong premise, economic
development, and transmission interconnection growth," said Oncor
CEO Allen Nye. "This morning Oncor
also released its annual corporate sustainability overview. As a
company, being good stewards of our environment and good partners
to the communities we serve is critical to our operations, and
integral to building a safer, more reliable, more sustainable
electric grid for Texas."
Oncor's net income of $337
million in the six months ended June
30, 2021 compared favorably to net income of $307 million in the six months ended June 30, 2020. The $30
million period-over-period net income improvement was driven
by increases in revenues contributing to earnings primarily from
increases in base transmission and distribution rates and customer
growth, and favorable changes in other income and deductions,
partially offset by increases in costs associated with additional
investment (primarily depreciation and amortization and property
taxes) and operation and maintenance expense.
Oncor's total distribution base revenues in the three and six
months ended June 30, 2021 as
compared to the prior year periods decreased 0.3% (2.2% increase on
a weather normalized basis) and increased 4.3% (1.9% increase on a
weather normalized basis), respectively. The change in Oncor's
total distribution base revenues in the second quarter of 2021 as
compared to the second quarter of 2020 included a 4.9% decrease in
distribution base revenues from residential customers (0.2%
increase on a weather normalized basis) and a 3.7% increase in
distribution base revenues from large commercial and industrial
customers. The change in Oncor's total distribution base
revenues in the six months ended June 30,
2021 as compared to the six months ended June 30, 2020 included an increase of 5.7% in
distribution base revenues from residential customers (0.6%
increase on a weather normalized basis) and a 3.1% increase in
distribution base revenues from large commercial and industrial
customers. Financial and operational results are provided in Tables
A, B, C and D below.
Capital Expenditure Plan
Oncor now expects capital
expenditures of $2.5 billion in 2021,
an increase from its previous guidance of $2.4 billion. In July, Oncor's board of directors
approved a 2022 capital plan of $2.8
billion, an increase from Oncor's previous 2022 guidance
range of between $2.4 billion and
$2.5 billion. Oncor's management also
currently expects to recommend to its board of directors capital
expenditures of $2.7 billion to
$3.0 billion in each of the years
2023 through 2026, for a 2022-2026 capital plan projection of
approximately $14.0 billion compared
to the previous 2021-2025 capital plan guidance of $12.2 billion. Oncor's increased capital plan
projections are due to Texas's
continued and expected growth in premises, transmission
interconnection requests and renewable generation interconnections,
as well as additional anticipated grid resiliency investments.
Approximately 97% of Oncor's capital expenditures are recoverable
in rates through trackers.
Oncor serves many of the country's fastest growing cities and
counties. Since 2018, Oncor has seen approximately 2% year over
year premises growth and expects this to continue, especially in
the Dallas/Ft. Worth region. In
the three- and six-month periods ended June
30, 2021, Oncor connected approximately 23,000 and 43,000
additional premises, respectively.
New transmission interconnection requests are on pace to exceed
prior 2018 record levels by 30 percent. Transmission
interconnection requests increased in the second quarter, driven by
an increase in requests relating to data centers, crypto-currency
mining and oil and gas development. Currently, Oncor has more than
ten cryptocurrency related requests in queue across its service
territory, with electric load requirements ranging from 5 MW to 1.5
GW. A growing emphasis on process electrification has also resulted
in an increase in requests in West
Texas.
Operational Highlights
In the second quarter of 2021,
Oncor completed its joint project with Lubbock Power and Light
("LP&L"), a municipal electricity utility company, owned by the
City of Lubbock, Texas. The
approximately $370 million project
involved the build out of 175 miles of transmission lines and
associated station work in the Lubbock and surrounding Texas panhandle areas to join the City of Lubbock to the Electric Reliability
Council of Texas ("ERCOT") market,
with the resulting assets split between Oncor and
LP&L.
During the quarter, Oncor constructed and placed in service 47
miles of new build transmission lines, including 40 miles
associated with the LP&L integration, 93 miles of re-build
lines and 21 major substation projects.
On the consumer front, Oncor launched its Energy Collaborative
Community, an online portal that brings innovation and
communication together to create a new avenue for our customers to
share real-time feedback and perspective on how Oncor can better
meet customer needs and expectations.
2020 Corporate Sustainability Overview
This morning,
Oncor released its 2020 Corporate Sustainability Overview,
highlighting environmental, social and governance issues related to
the company. The report is available on Oncor's website at
oncor.com, under the Investor Relations section.
Rate Proceeding Update
In May, Oncor filed an
application with the Public Utility Commission of Texas ("PUCT") requesting to extend its
deadline for filing a base-rate case from October 1, 2021 to June 1,
2022. All of the stakeholders represented in Oncor's
previous rate and other related PUCT proceedings either supported
or were unopposed to the requested extension. On July 29, 2021, the PUCT approved the
extension.
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
that will include discussion of second quarter 2021 results and
other information relating to Oncor. Oncor Chief Executive Officer
Allen Nye will also participate in
the broadcast. Access is available by logging onto Sempra's
website, sempra.com. An accompanying slide presentation will also
be posted at sempra.com. For those unable to participate in the
live webcast, a replay of Sempra's teleconference will be available
a few hours after its conclusion on Sempra's website or by dialing
(888) 203-1112 and entering passcode 1398783.
Oncor's Quarterly Report on Form 10-Q for the period ended
June 30, 2021 will be filed with the
U.S. Securities and Exchange Commission after Sempra's conference
call and once filed, will also be available on Oncor's website,
oncor.com.
Oncor Electric
Delivery Company LLC
|
Table A –
Condensed Statements of Consolidated Net Income
|
Three and Six
Months Ended June 30, 2021 and 2020; $ millions
|
|
|
|
Q2
'21
|
|
Q2
'20
|
|
YTD
'21
|
|
YTD
'20
|
|
|
|
Operating
revenues
|
|
$
|
1,147
|
|
$
|
1,090
|
|
$
|
2,286
|
|
$
|
2,162
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Wholesale transmission
service
|
|
|
260
|
|
|
233
|
|
|
509
|
|
|
478
|
Operation and
maintenance
|
|
|
232
|
|
|
212
|
|
|
467
|
|
|
444
|
Depreciation and
amortization
|
|
|
209
|
|
|
196
|
|
|
414
|
|
|
389
|
Provision in lieu of
income taxes
|
|
|
36
|
|
|
38
|
|
|
72
|
|
|
67
|
Taxes other than
amounts related to income taxes
|
|
|
135
|
|
|
126
|
|
|
275
|
|
|
257
|
Total operating
expenses
|
|
|
872
|
|
|
805
|
|
|
1,737
|
|
|
1,635
|
Operating
income
|
|
|
275
|
|
|
285
|
|
|
549
|
|
|
527
|
Other deductions and
(income) - net
|
|
|
7
|
|
|
10
|
|
|
14
|
|
|
23
|
Nonoperating benefit
in lieu of income taxes
|
|
|
(3)
|
|
|
(3)
|
|
|
(6)
|
|
|
(6)
|
Interest expense and
related charges
|
|
|
102
|
|
|
102
|
|
|
204
|
|
|
203
|
Net income
|
|
$
|
169
|
|
$
|
176
|
|
$
|
337
|
|
$
|
307
|
Oncor Electric
Delivery Company LLC
|
Table B –
Condensed Statements of Consolidated Cash Flows
|
Six Months Ended
June 30, 2021 and 2020; $ millions
|
|
|
|
|
|
|
|
|
|
|
YTD
'21
|
|
YTD
'20
|
|
|
|
|
|
Cash flows —
operating activities:
|
|
|
|
|
|
|
Net income
|
|
$
|
337
|
|
$
|
307
|
Adjustments to
reconcile net income to cash provided by operating
activities:
|
|
|
|
|
|
|
Depreciation and
amortization, including regulatory amortization
|
|
|
454
|
|
|
429
|
Provision in lieu of
deferred income taxes - net
|
|
|
37
|
|
|
14
|
Other –
net
|
|
|
1
|
|
|
(1)
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
Regulatory accounts
related to reconcilable tariffs
|
|
|
(61)
|
|
|
(7)
|
Other operating
assets and liabilities
|
|
|
(245)
|
|
|
(153)
|
Cash provided by
operating activities
|
|
|
523
|
|
|
589
|
Cash flows —
financing activities:
|
|
|
|
|
|
|
Issuances of
long-term debt
|
|
|
770
|
|
|
1,265
|
Repayment of
long-term debt
|
|
|
-
|
|
|
(465)
|
Net change in
short-term borrowings
|
|
|
(63)
|
|
|
(39)
|
Capital contributions
from members
|
|
|
125
|
|
|
174
|
Distributions to
members
|
|
|
(192)
|
|
|
(183)
|
Debt discount and
financing costs – net
|
|
|
(2)
|
|
|
(35)
|
Cash provided by
financing activities
|
|
|
638
|
|
|
717
|
Cash flows —
investing activities:
|
|
|
|
|
|
|
Capital
expenditures
|
|
|
(1,224)
|
|
|
(1,283)
|
Expenditures for third
party in joint project
|
|
|
(65)
|
|
|
(27)
|
Reimbursement from
third party in joint project
|
|
|
91
|
|
|
13
|
Other –
net
|
|
|
17
|
|
|
11
|
Cash used in investing
activities
|
|
|
(1,181)
|
|
|
(1,286)
|
Net change in cash
and cash equivalents
|
|
|
(20)
|
|
|
20
|
Cash and cash
equivalents — beginning balance
|
|
|
27
|
|
|
4
|
Cash and cash
equivalents — ending balance
|
|
$
|
7
|
|
$
|
24
|
|
|
|
|
|
|
|
|
|
Oncor Electric
Delivery Company LLC
|
Table C –
Condensed Consolidated Balance Sheets
|
At June 30, 2021
and December 31, 2020; $ millions
|
|
|
|
|
|
|
|
|
|
|
At
6/30/21
|
|
At
12/31/20
|
|
|
|
ASSETS
|
Current
assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
7
|
|
$
|
27
|
Trade accounts
receivable – net
|
|
|
765
|
|
|
760
|
Amounts receivable from
members related to income taxes
|
|
|
22
|
|
|
7
|
Materials and supplies
inventories — at average cost
|
|
|
149
|
|
|
144
|
Prepayments and other
current assets
|
|
|
99
|
|
|
100
|
Total current
assets
|
|
|
1,042
|
|
|
1,038
|
Investments and other
property
|
|
|
149
|
|
|
142
|
Property, plant and
equipment – net
|
|
|
21,998
|
|
|
21,225
|
Goodwill
|
|
|
4,740
|
|
|
4,740
|
Regulatory
assets
|
|
|
1,898
|
|
|
1,779
|
Operating lease ROU,
third party joint project and other assets
|
|
|
168
|
|
|
248
|
Total
assets
|
|
$
|
29,995
|
|
$
|
29,172
|
|
LIABILITIES AND
MEMBERSHIP INTERESTS
|
Current
liabilities:
|
|
|
|
|
|
|
Short-term
borrowings
|
|
$
|
7
|
|
$
|
70
|
Long-term debt due
currently
|
|
|
1,150
|
|
|
-
|
Trade accounts
payable
|
|
|
355
|
|
|
392
|
Amounts payable to
members related to income taxes
|
|
|
14
|
|
|
23
|
Accrued taxes other
than amounts related to income taxes
|
|
|
176
|
|
|
269
|
Accrued
interest
|
|
|
86
|
|
|
87
|
Operating lease and
other current liabilities
|
|
|
276
|
|
|
279
|
Total current
liabilities
|
|
|
2,064
|
|
|
1,120
|
Long-term debt, less
amounts due currently
|
|
|
8,853
|
|
|
9,229
|
Liability in lieu of
deferred income taxes
|
|
|
1,997
|
|
|
1,923
|
Regulatory
liabilities
|
|
|
2,856
|
|
|
2,855
|
Employee benefit
obligations
|
|
|
1,792
|
|
|
1,808
|
Operating lease,
third party joint project and other obligations
|
|
|
226
|
|
|
305
|
Total
liabilities
|
|
|
17,788
|
|
|
17,240
|
Commitments and
contingencies
|
|
|
|
|
|
|
Membership
interests:
|
|
|
|
|
|
|
Capital account ―
number of units outstanding 2021 and 2020 –
635,000,000
|
|
|
12,353
|
|
|
12,083
|
Accumulated other
comprehensive loss
|
|
|
(146)
|
|
|
(151)
|
Total membership
interests
|
|
|
12,207
|
|
|
11,932
|
Total liabilities and
membership interests
|
|
$
|
29,995
|
|
$
|
29,172
|
Oncor Electric
Delivery Company LLC
|
Table D –
Operating Statistics
|
Three and Six
Months Ended June 30, 2021 and 2020; mixed measures
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q2
'21
|
|
Q2
'20
|
|
YTD
'21
|
|
YTD
'20
|
|
Operating
statistics:
|
|
|
|
|
|
|
|
|
|
Electric energy volumes
(gigawatt-hours):
|
|
|
|
|
|
|
|
|
|
Residential
|
|
9,987
|
|
11,002
|
|
20,893
|
|
20,419
|
|
Commercial, industrial,
small business and other
|
|
22,902
|
|
20,036
|
|
42,673
|
|
41,039
|
|
Total electric energy
volumes
|
|
32,889
|
|
31,038
|
|
63,566
|
|
61,458
|
|
Reliability
statistics (a):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
System Average
Interruption Duration Index
(SAIDI)
(nonstorm)
|
|
|
|
|
|
|
|
|
81.8
|
|
|
82.1
|
|
System Average
Interruption Frequency Index
(SAIFI) (nonstorm)
|
|
|
|
|
|
|
|
|
1.3
|
|
|
1.3
|
|
Customer Average
Interruption Duration Index
(CAIDI) (nonstorm)
|
|
|
|
|
|
|
|
|
61.1
|
|
|
64.8
|
|
Electricity
distribution points of delivery (based on
number of active meters) ― end of period and in
thousands
|
|
|
|
|
|
|
|
|
3,804
|
|
|
3,723
|
|
________________
|
(a)
|
SAIDI is the average
number of minutes electric service is interrupted per consumer in a
year. SAIFI is the average number of electric service interruptions
per consumer in a year. CAIDI is the average duration in minutes
per electric service interruption in a year. The statistics
presented are based on twelve months ended June 30, 2021 and 2020
data.
|
***
Headquartered in Dallas, Oncor
Electric Delivery Company LLC is a regulated electricity
distribution and transmission business that uses superior asset
management skills to provide reliable electricity delivery to
consumers. Oncor (together with its subsidiaries) operates the
largest distribution and transmission system in Texas, delivering power to more than 3.8
million homes and businesses and operating more than 139,000 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 in this news release, other than
statements of historical facts (often, but not always, through the
use of words or phrases such as "expects," "estimates,"
"projected," "intends," "plans," "will likely result," "are
expected to," "will continue," "is anticipated," "should,"
"target," "goal," "objective" and "outlook"), are
forward-looking statements. They involve risks,
uncertainties and assumptions. Factors that could cause
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; health epidemics and pandemics, including the evolving
COVID-19 pandemic and its impact on Oncor's business and the
economy in general; acts of sabotage, wars or terrorist or cyber
security threats or activities; economic conditions, including the
impact of a recessionary environment; unanticipated population
growth or decline, or changes in market demand and demographic
patterns; ERCOT grid needs; changes in business strategy,
development plans or vendor relationships; unanticipated changes in
interest rates or rates of inflation; unanticipated changes in
operating expenses, liquidity needs and capital expenditures;
inability of various counterparties to meet their financial
obligations to us, including failure of counterparties to perform
under agreements; general industry trends; hazards customary to the
industry and the possibility that we may not have adequate
insurance to cover losses resulting from such hazards; changes in
technology used by and services offered by us; significant changes
in our relationship with our 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 critical accounting policies
material to us; commercial bank and financial market conditions,
access to capital, the cost of such capital, and the results of
financing and refinancing efforts, including availability of funds
in the capital markets and the potential impact of disruptions in
U.S. credit markets; circumstances which may contribute to future
impairment of goodwill, intangible or other long-lived assets;
financial and other restrictions under our debt agreements; our
ability to generate sufficient cash flow to make interest payments
on our debt instruments; actions by credit rating agencies; and our
ability to effectively execute our 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 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.
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SOURCE Oncor Electric Delivery Company, LLC