Oncor reports higher second-quarter, half-year 2026 net income on regulated revenue gains

Oncor reported higher second-quarter and first-half 2026 net income on Wednesday, citing higher regulated revenues, new base rates, a temporary surcharge tied to its base rate review and customer growth in Texas.

The Dallas-based utility said net income rose to $428 million in the three months ended June 30, 2026, from $259 million in the same period a year earlier. For the first six months of 2026, it reported net income of $640 million, up from $440 million a year earlier.

Why it matters

Oncor is one of Texas' largest electricity transmission and distribution companies, serving more than 4.1 million homes and businesses. Its results show how regulated utility revenues and grid investment are affecting earnings as demand grows across the state.

Context and background

The company said the quarterly increase was driven by higher revenues from its comprehensive base rate review surcharge, other regulated revenues from the Unified Tracker Mechanism and System Resiliency Plan, new base rates that took effect June 1, 2026, updated interim rates that reflect increased invested capital and customer growth.

Oncor said the same revenue factors helped drive the first-half increase. It also said it built, rebuilt or upgraded more than 900 circuit miles of transmission and distribution lines in the second quarter and added about 16,200 premises.

The company reported 15% year-over-year growth in active transmission point-of-interconnection requests. As of June 30, it said it had 552 active generation point-of-interconnection requests, with about 46% tied to storage, 39% to solar, 8% to wind and 7% to gas.

Oncor said its active transmission large commercial and industrial interconnection queue had 737 requests at the end of the quarter, including about 282 gigawatts from data centers and more than 16 gigawatts from other industrial sectors.

It also said that as of August 1 it held about $5.9 billion in customer collateral for active generation and large commercial and industrial transmission requests, including about $2 billion related to Batch Zero projects.

In June, Oncor said it placed in service its portion of the 165-mile double-circuit 345 kV Delaware Basin Stage 2 Project, which it described as part of efforts to address electricity import constraints into far west Texas. The company also said ERCOT endorsed several new transmission projects serving southern Dallas-Fort Worth and the I-35 corridor, and that the projects and related upgrades are expected to require more than $7 billion of investment between 2026 and 2034.

What the company said

Oncor said it implemented a temporary surcharge on Aug. 1 under its completed comprehensive base rate review. It said the surcharge reflects about $212 million of deferred revenues, of which $181 million was recognized in the second quarter, and will raise a residential bill by about $3.63 a month for a customer using 1,000 kilowatt-hours.

The company said available liquidity was about $3.6 billion as of Aug. 5, including cash and borrowing capacity. It said that amount, together with projected operating cash flow and future financing, should be enough to cover capital spending, debt maturities and other needs for at least the next 12 months.

What happens next

Oncor said Sempra planned a live internet broadcast of earnings results on Aug. 6 at 12 p.m. ET, with Oncor executives participating. The company said its Form 10-Q for the quarter ended June 30, 2026, would be filed with the Securities and Exchange Commission after the call.

Sources

• PR Newswire: Oncor reports second-quarter 2026 results

Editorial note: This article was prepared with AI assistance and includes source attribution for reader review.