ONCOR ELECTRIC DELIVERY CO LLC 8-K

What Happened

• On January 29, 2026, Oncor Electric Delivery Co LLC filed a stipulation in its comprehensive base rate review (PUCT Docket No. 58306) seeking Public Utility Commission of Texas (PUCT) approval of an unopposed settlement.
• The stipulation proposes an annual revenue requirement of about $6.975 billion — an 8.8% increase over Oncor’s adjusted annualized present revenues, which Oncor estimates is roughly a $560 million aggregate annualized increase.
• It also proposes a revised regulatory capital structure of 56.5% debt / 43.5% equity, an authorized return on equity (ROE) of 9.75%, and an authorized cost of debt of 4.94% (compared with current authorizations of 57.5% debt / 42.5% equity, ROE 9.70%, cost of debt 4.39%).
• The stipulation includes a self-insurance reserve with an annual accrual recovered in rates of $200 million (up from $122 million) and a five-year amortization period for applicable regulatory assets and liabilities (excluding rate case expenses, certain resiliency costs, and excess ADIT). The PUCT may adopt, modify, or reject the stipulation; Oncor expects a final order in the first half of 2026. If approved as filed, new billing rates would be implemented and Oncor would surcharge the difference back to January 1, 2026 under a prior interim-rate settlement.

Key Details

• PUCT docket: 58306; stipulation filed Jan 29, 2026.
• Proposed annual revenue requirement: ~$6.975 billion (8.8% increase; ≈ $560M aggregate).
• Proposed capital / return metrics: 56.5% debt / 43.5% equity; ROE 9.75%; cost of debt 4.94%.
• Self-insurance reserve accrual in rates: $200M annually (vs. $122M currently); five-year amortization for applicable regulatory items.

Why It Matters

• For investors, the proposed settlement would increase Oncor’s allowed revenue and could improve near‑term earnings, cash flow, and credit metrics if the PUCT approves the stipulation as filed.
• The increase in the self-insurance accrual and the amortization terms affect the timing and recovery of storm and resiliency costs, which can reduce volatility in future reported results.
• The proposal still requires regulatory approval; the PUCT could modify or reject terms, so outcomes and timing remain uncertain. Oncor’s filing includes forward‑looking statements and outlines the many regulatory, weather, economic, and operational risks that could affect final results.