Today, Oncor Electric Delivery Company LLC filed a periodic rate review seeking to recover investments made in the grid to serve the needs of its customers. The filing was made across the Oncor service territory with cities that have original jurisdiction over Oncor’s rates and the Public Utility Commission of Texas.
Some of the cities of original jurisdiction served by Oncor have asked for a review of the company’s base rates. Oncor agrees a review is necessary as its last rate review occurred well over six years ago. Oncor is seeking to recover investments it has made to meet the needs of customers since its last rate review in 2011.
Oncor rates are among the lowest of any investor owned utility in Texas.
The Oncor rate review filing includes a number of requests, including: a revenue requirement adjustment of $317 million, representing an overall average adjustment of 7.5%, and a minimum charge for residential distributed generation customers. If granted in full, it would bring Oncor’s total revenue requirement to approximately $4.5 billion.
If approved by regulators, the typical homeowner will see an increase of 22 cents a day. An average Oncor residential customer uses 1,300 kilowatt-hours (kWh) of electricity per month. If that same customer has a retail electric plan charging 9 cents per kWh, after Oncor’s rate review, their rate would be adjusted to 9.526 per kWh, an overall total bill adjustment of 5.85% which equates to an additional $6.84 per month.
“Our customers aren’t just names on an account, they are our friends, family, and neighbors, and that makes it even more important for us to manage our costs and provide them with quality, affordable power,” said Oncor CEO Bob Shapard. “Our investments have allowed customers to benefit from cleaner wind and solar power and enable a more durable, reliable, and customer responsive grid. Investment in the grid is also necessary to continue attracting new industries, businesses and jobs to Texas.”
Oncor expects its rate review proceeding to last several months. If approved, Oncor’s rate adjustment would most likely take effect in late 2017. Oncor customers will still pay among the lowest electric delivery rates among investor-owned utilities in the state.
Oncor Electric Delivery Company LLC (“Oncor”) is a regulated electric transmission and distribution business that uses superior asset management skills to provide reliable electric delivery to consumers. Oncor operates the largest transmission and distribution system in Texas, delivering power to more than 3.3 million homes and businesses and operating more than 121,000 miles of transmission and distribution lines. While Oncor is owned by a limited number of investors (including majority owner, Energy Future Holdings Corp.), Oncor is managed by its Board of Directors, which is comprised of a majority of independent directors.