Oncor files for $251M rate increase in Texas for system investments
Justifying the request on the grounds of Texas population growth, Oncor recently filed a proposal for an approximately $251 million annual revenue increase, which it says will go to recover costs associated with significant, needed system investments.
Filed with the Public Utility Commission of Texas and cities in the Oncor service area, the proposal is the company’s latest comprehensive rate review, its first since 2017. While the new rates could lead to a 4.2 percent overall increase on bills for the average residential customer – or about $6.02/month – the company emphasized these hikes would still keep its rates among the lowest of any investor-owned utility in Texas.
“The investments we continue to make in our system will support the ERCOT market and the more than 13 million customers we currently serve,” Jim Greer, Oncor executive vice president and COO, said. “And, they will be crucial for attracting new residents, industries, businesses, and jobs to the state Oncor has been honored to serve for more than 100 years.”
Since 2017, Oncor has added nearly 10,000 miles of new and rebuilt transmission and distribution lines, nearly 355,000 customer connections, and around 200 new substations, among other funding focused on customer growth. It has also invested more than $10 billion to build, upgrade and operate its grid, from capital investments to general maintenance.
Rate review proceedings should last several months. Any adjusted rates could go into effect as early as Q4 2022 but may take until early 2023.
