ONCOR REPORTS FIRST QUARTER 2026 RESULTS
Rhea-AI Summary
Oncor (NYSE: SRE) reported Q1 2026 net income $212 million vs $181 million a year earlier. Drivers included higher UTM and SRP revenues, updated interim rates, and customer growth, partly offset by milder weather, higher interest and depreciation, and O&M costs. Oncor plans ~$9.0 billion 2026 capex, added ~13,400 premises in Q1, built ~700 circuit miles, and holds ~$4.0 billion customer collateral. PUCT approved an ~$560 million base-rate increase (effective June 1, 2026); Oncor expects ~$70 million Q2 earnings benefit when recognized. Available liquidity ~$3.3 billion.
Positive
- Net income increased to $212 million in Q1 2026
- 2026 capex program of approximately $9.0 billion
- PUCT base-rate approval increases annualized revenues by ~$560 million
- Strong liquidity of approximately $3.3 billion as of May 6, 2026
Negative
- Higher interest and depreciation reduced net income upside
- Customer consumption declined due to milder weather
- O&M expense increased in the quarter, pressuring margins
- Large capital plan could require continued financing and execution risk
Key Figures
Market Reality Check
Peers on Argus
Sempra fell 0.74% while peers were mixed: BIP up 0.99%, AES, ALE, AQN and AVA modestly negative. Moves do not indicate a broad utilities rotation.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Nov 05 | Q3 2025 earnings | Positive | -0.1% | Net income rose to $380M on higher revenues and capital plans. |
| Aug 07 | Q2 2025 earnings | Neutral | +1.8% | Slight earnings growth but lower six‑month income and credit downgrade. |
| May 08 | Q1 2025 earnings | Negative | -0.1% | Q1 2025 net income declined to $181M amid higher expenses. |
| May 08 | Sempra Q1 2025 | Positive | -0.1% | Strong earnings growth and updated EPS guidance for 2025. |
| Nov 06 | Q3 2024 earnings | Positive | +7.3% | Nine‑month net income rose and major resiliency and Permian plans advanced. |
Earnings headlines have usually produced modest moves, with a mix of aligned and divergent reactions, and no consistent one-direction pattern.
Recent earnings-related releases for Oncor and Sempra show steady capital investment growth, expanding regulatory plans, and active transmission buildouts in Texas. Prior quarters highlighted larger multi‑year capital plans, increasing interconnection queues, and major programs like the Permian Basin Reliability Plan. Price reactions around these earnings events have been relatively contained, often within a few percent, suggesting the market typically absorbs such updates without extreme volatility.
Historical Comparison
In the past five earnings-related releases for Oncor/Sempra, the average 24-hour move was about 1.75%, with both positive and negative reactions, indicating generally moderate sensitivity to quarterly updates.
Earnings releases have tracked a growing multi‑year capital program, expanding Texas transmission needs, and evolving regulatory outcomes, from initial Permian Basin plans to larger 2026–2030 investment frameworks.
Market Pulse Summary
This announcement details higher Q1 2026 net income of $212 million, a larger $9.0 billion 2026 capital plan, and a PUCT base rate order adding about $560 million in revenues with a 9.75% authorized ROE. Investors may track execution of the Permian Basin and resiliency projects, timing of UTM-related revenue increases on roughly $4.4 billion of investment, and how these factors influence future earnings trajectories.
Key Terms
system resiliency plan regulatory
electric reliability council of texas regulatory
regional transmission plan regulatory
public utility commission of texas regulatory
AI-generated analysis. Not financial advice.
"We remain focused on meeting the needs of our customers as we execute our capital plan, which supports the continued expansion of
Operational Highlights
In 2026, Oncor is executing a capital expenditure budget of approximately
As of March 31, 2026, Oncor had 565 active generation POI requests in queue, composed of approximately
On April 1, 2026, Oncor submitted 122 gigawatts of large load forecast data and 5.2 gigawatts of medium load forecast data through 2036 for inclusion in the Electric Reliability Council of
Progress on the Permian Basin Reliability Plan ("PBRP") remains on track, with consistent advancement toward targeted in-service dates through 2030. Coordination with suppliers, ERCOT, and other industry stakeholders is ongoing. Oncor has now submitted approximately two-thirds of the total Certificates of Convenience and Necessity ("CCN") applications required for its PBRP projects, including all CCNs required for Oncor's 765 kV PBRP import path projects. Construction is underway on PBRP local projects, with two already complete. Construction of the 765 kV PBRP import transmission infrastructure is planned to begin in the second quarter of 2026 with the grading of a 765 kV switching station. In addition to the PBRP, construction continues on other Permian Basin-area projects.
Regulatory Update
On April 17, 2026, the Public Utility Commission of
- An increase of approximately
$560 million 8.7% ); - A regulatory capital structure ratio of
56.5% debt to43.5% equity; - An authorized return on equity of
9.75% , and a4.94% authorized cost of debt.
Oncor estimates the approved rates will result in an increase to residential customer bills of approximately
Under a prior interim rates agreement, Oncor's existing rates became interim rates for the period from January 1, 2026 through the implementation date of the new rates. Oncor is permitted to surcharge the difference between the new rates and the interim rates. Oncor anticipates filing that surcharge request in June, shortly after the effective date of the new billing rates. Oncor will begin recognizing accounting impacts of the base rate order in the second quarter of 2026. Oncor currently estimates that the effects of incremental revenues and expenses from the PUCT order related to the first quarter of 2026, when recognized, will increase second quarter 2026 earnings by approximately
On April 22, 2026 Oncor made its distribution and transmission tracker filings under the new UTM process with the PUCT, requesting an interim rate update to reflect approximately
During the first quarter, Oncor filed seven new CCN applications for needed transmission projects, including PBRP CCN applications, and received regulatory approval of three previously filed CCN applications, continuing the momentum of efficient and timely regulatory approvals.
Liquidity and Credit Update
As of May 6, 2026, Oncor's available liquidity totaled approximately
Positive regulatory and legislative outcomes in
Sempra Internet Broadcast Today
Sempra (NYSE: 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 2026 results and other information relating to Oncor. Oncor executives 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 during the live webcast, a replay will be available 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, 2026 will be filed with the
About Oncor
Headquartered in
Oncor Electric Delivery Company LLC Table A – Condensed Statements of Consolidated Income (Unaudited)
| ||||||
Three Months Ended March 31, | ||||||
2026 | 2025 | |||||
( | ||||||
Operating revenues | $ | 1,724 | $ | 1,548 | ||
Operating expenses: | ||||||
Wholesale transmission service | 381 | 353 | ||||
Operation and maintenance | 403 | 370 | ||||
Depreciation and amortization | 328 | 287 | ||||
Provision in lieu of income taxes | 46 | 39 | ||||
Taxes other than amounts related to income taxes | 160 | 147 | ||||
Total operating expenses | 1,318 | 1,196 | ||||
Operating income | 406 | 352 | ||||
Other (income) and deductions – net | (33) | (13) | ||||
Non-operating benefit in lieu of income taxes | - | (1) | ||||
Interest expense and related charges | 227 | 185 | ||||
Net income | $ | 212 | $ | 181 | ||
Oncor Electric Delivery Company LLC Table B – Condensed Statements of Consolidated Cash Flows (Unaudited)
| ||||||
Three Months Ended March 31, | ||||||
2026 | 2025 | |||||
( | ||||||
Cash flows – operating activities: | ||||||
Net income | $ | 212 | $ | 181 | ||
Adjustments to reconcile net income to cash provided by operating activities: | ||||||
Depreciation and amortization, including regulatory amortization | 369 | 328 | ||||
Provision in lieu of deferred income taxes – net | 38 | 30 | ||||
Changes in operating assets and liabilities: | ||||||
Accounts receivable | 7 | (2) | ||||
Inventories | (69) | (18) | ||||
Accounts payable – trade | 42 | (7) | ||||
Regulatory assets – recoverable SRP | (51) | (27) | ||||
Regulatory assets – recoverable UTM | (98) | - | ||||
Regulatory assets – self-insurance reserve costs incurred | (67) | (66) | ||||
Regulatory under/over recoveries – net | (3) | 34 | ||||
Customer deposits | 202 | (17) | ||||
Pension and OPEB Plans | (21) | (120) | ||||
Accrued interest | 96 | 70 | ||||
Other – assets | (1) | (28) | ||||
Other – liabilities | (119) | (164) | ||||
Cash provided by operating activities | 537 | 194 | ||||
Cash flows – financing activities: | ||||||
Issuances of senior secured notes | 1,600 | 2,300 | ||||
Repayments of senior secured notes | (38) | (350) | ||||
Borrowings under term loan credit agreement | 475 | - | ||||
Repayments under term loan credit agreement | (775) | - | ||||
Borrowings under AR Facility | 150 | 300 | ||||
Repayments under AR Facility | (475) | (300) | ||||
Payment for senior secured notes extinguishment | - | (441) | ||||
Net change in short-term borrowings | - | (594) | ||||
Capital contributions from members | 1,091 | 605 | ||||
Distributions to members | (286) | (177) | ||||
Debt discount, premium, financing and reacquisition costs – net | (21) | (26) | ||||
Cash provided by financing activities | 1,721 | 1,317 | ||||
Cash flows – investing activities: | ||||||
Capital expenditures | (2,051) | (1,356) | ||||
Other – net | 20 | 13 | ||||
Cash used in investing activities | (2,031) | (1,343) | ||||
Net change in cash, cash equivalents and restricted cash | 227 | 168 | ||||
Cash, cash equivalents and restricted cash – beginning balance | 719 | 262 | ||||
Cash, cash equivalents and restricted cash – ending balance | $ | 946 | $ | 430 | ||
Oncor Electric Delivery Company LLC Table C – Condensed Consolidated Balance Sheets (Unaudited)
| ||||||
At March 31, | At December 31, | |||||
2026 | 2025 | |||||
( | ||||||
ASSETS | ||||||
Current assets: | ||||||
Cash and cash equivalents | $ | 107 | $ | 87 | ||
Restricted cash, current | 11 | 11 | ||||
Accounts receivable – net | 1,048 | 1,048 | ||||
Amounts receivable from members related to income taxes | 5 | 48 | ||||
Materials and supplies inventories – at average cost | 760 | 690 | ||||
Prepayments and other current assets | 132 | 140 | ||||
Total current assets | 2,063 | 2,024 | ||||
Restricted cash, noncurrent | 828 | 621 | ||||
Investments and other property | 202 | 203 | ||||
Property, plant and equipment – net | 39,438 | 37,834 | ||||
Goodwill | 4,740 | 4,740 | ||||
Regulatory assets | 2,220 | 2,049 | ||||
Right-of-use operating lease assets | 305 | 265 | ||||
Other noncurrent assets | 50 | 59 | ||||
Total assets | $ | 49,846 | $ | 47,795 | ||
LIABILITIES AND MEMBERSHIP INTERESTS | ||||||
Current liabilities: | ||||||
Accounts payable – trade | $ | 1,339 | $ | 1,332 | ||
Amounts payable to members related to income taxes | 39 | 31 | ||||
Accrued taxes other than amounts related to income | 126 | 296 | ||||
Accrued interest | 312 | 216 | ||||
Long-term debt, current | 305 | - | ||||
Operating lease and other current liabilities | 354 | 409 | ||||
Total current liabilities | 2,475 | 2,284 | ||||
Long-term debt, noncurrent | 19,633 | 19,043 | ||||
Liability in lieu of deferred income taxes | 2,902 | 2,841 | ||||
Regulatory liabilities | 2,986 | 3,034 | ||||
Employee benefit plan obligations | 1,237 | 1,275 | ||||
Operating lease obligations | 271 | 239 | ||||
Other noncurrent obligations | 958 | 711 | ||||
Total liabilities | 30,462 | 29,427 | ||||
Commitments and contingencies | ||||||
Membership interests: | ||||||
Capital account – number of units outstanding at March 31, 2026 and December | 19,613 | 18,596 | ||||
Accumulated other comprehensive loss | (229) | (228) | ||||
Total membership interests | 19,384 | 18,368 | ||||
Total liabilities and membership interests | $ | 49,846 | $ | 47,795 | ||
Oncor Electric Delivery Company LLC Table D – Operating Statistics Mixed Measures
| ||||||
Twelve Months Ended March 31, | % | |||||
2026 | 2025 | Change | ||||
Reliability statistics (a): | ||||||
System Average Interruption Duration Index (SAIDI) (non-storm) | 77.1 | 75.7 | 1.8 | |||
System Average Interruption Frequency Index (SAIFI) (non-storm) | 1.1 | 1.1 | 0.0 | |||
Customer Average Interruption Duration Index (CAIDI) (non-storm) | 67.6 | 71.5 | (5.5) | |||
Electricity points of delivery (end of period and in thousands): | ||||||
Electricity distribution points of delivery (based on number of active meters) | 4,124 | 4,065 | 1.5 | |||
Three Months Ended March 31, | Increase | |||||
2026 | 2025 | (Decrease) | ||||
Residential system weighted weather data (b): | ||||||
Cooling degree days | 73 | 28 | 45 | |||
Heating degree days | 355 | 572 | (217) | |||
Three Months Ended March 31, | % | |||||
2026 | 2025 | Change | ||||
Operating statistics: | ||||||
Electric energy volumes (gigawatt-hours) | ||||||
Residential | 10,086 | 11,253 | (10.4) | |||
Commercial, industrial, small business and other | 30,103 | 27,753 | 8.5 | |||
Total electric energy volumes | 40,189 | 39,006 | 3.0 | |||
____________ | |
(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, our 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 our 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. |
Oncor Electric Delivery Company LLC Table E – Operating Revenues
| |||||||||
Three Months Ended March 31, | $ | ||||||||
2026 | 2025 | Change | |||||||
( | |||||||||
Operating revenues | |||||||||
Revenues contributing to earnings: | |||||||||
Revenues from contracts with customers | |||||||||
Distribution base revenues | |||||||||
Residential (a) | $ | 353 | $ | 375 | $ | (22) | |||
LC&I (b) | 344 | 332 | 12 | ||||||
Other (c) | 31 | 30 | 1 | ||||||
Total distribution base revenues (d) | 728 | 737 | (9) | ||||||
Transmission base revenues (TCOS revenues) | |||||||||
Billed to third-party wholesale customers | 280 | 253 | 27 | ||||||
Billed to REPs serving Oncor distribution customers, through TCRF | 154 | 140 | 14 | ||||||
Total TCOS revenues | 434 | 393 | 41 | ||||||
Other miscellaneous revenues | 22 | 23 | (1) | ||||||
Total revenues from contracts with customers | 1,184 | 1,153 | 31 | ||||||
Other regulated revenues | |||||||||
SRP revenues (e) | 51 | 27 | 24 | ||||||
UTM revenues (f) | 98 | - | 98 | ||||||
Total other regulated revenues | 149 | 27 | 122 | ||||||
Total revenues contributing to earnings | 1,333 | 1,180 | 153 | ||||||
Revenues collected for pass-through expenses: | |||||||||
TCRF – third-party wholesale transmission service | 381 | 353 | 28 | ||||||
EECRF and other revenues | 10 | 15 | (5) | ||||||
Total revenues collected for pass-through expenses | 391 | 368 | 23 | ||||||
Total operating revenues | $ | 1,724 | $ | 1,548 | $ | 176 | |||
____________ | |
(a) | 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 |
(b) | Depending on size and annual load factor, distribution base revenues from LC&I customers are generally based either on actual monthly demand (kilowatts) or the greater of actual monthly demand (kilowatts) or |
(c) | 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. |
(d) | The |
(e) | Includes revenues recognized for recoverable costs associated with distribution-related SRP, including operation and maintenance expenses, depreciation expenses, debt carrying costs on unrecovered balances and related taxes. |
(f) | Includes revenues recognized for recoverable costs associated with UTM eligible transmission and distribution capital investments during 2025 and the three months ended March 31, 2026, including depreciation expenses, debt carrying costs on unrecovered balances and related taxes. |
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," "expects," "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; ERCOT protocols, rules, policies, regulations, guidelines, directives, and orders applicable to Oncor's business; weather conditions and other natural phenomena, including severe weather events, natural disasters or wildfires; cyber-attacks on Oncor or Oncor's third-party vendors; changes in expected ERCOT and service territory growth; changes in, or cancellations of, anticipated projects, including customer requested interconnection projects; physical attacks on Oncor's system, acts of sabotage, wars, terrorist activities, wildfires, fires, explosions, natural disasters, hazards customary to the industry, or other emergency events; Oncor's ability to obtain adequate insurance on reasonable terms and the possibility that it may not have adequate insurance to cover all losses incurred by Oncor or third-party liabilities; adverse 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, foreign policy, industrial strain, and global trade restrictions; supply chain disruptions, including as a result of tariffs, war, volatile commodity prices, manufacturing and shipping shortages, global trade disruptions, competition for goods and services, and service provider availability; unanticipated changes in electricity demand in ERCOT or Oncor's service territory; ERCOT grid needs and ERCOT market conditions, including insufficient electricity generation within the ERCOT market or disruptions at power generation facilities that supply power within the ERCOT market; changes in business strategy, development plans or vendor relationships; changes in interest rates, foreign currency exchange 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; changes in employee and contractor labor availability and cost; significant changes in Oncor's relationship with its employees, 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 other postretirement employee 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
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
The information contained on, or that can be accessed through, any website referenced in this news release, is not, and shall not be deemed to be, part of this document.
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SOURCE Oncor Electric Delivery Company LLC