ONCOR ELECTRIC DELIVERY CO LLC 8-K

What Happened
On April 17, 2026 the Public Utility Commission of Texas (PUCT) approved a final order in Oncor’s comprehensive base rate review (PUCT Docket No. 58306) adopting an unopposed settlement. The order sets an annual revenue requirement of approximately $6.97 billion—an increase of about $560 million, or 8.7%, versus Oncor’s adjusted annualized revenues in the rate filing—and updates key regulatory inputs including capital structure, return on equity and cost of debt.

Key Details

• PUCT final order date: April 17, 2026.
• New annual revenue requirement: ~$6.97 billion (increase ≈ $560 million, 8.7%).
• Revised regulatory capital structure: 56.5% debt / 43.5% equity; authorized ROE: 9.75%; authorized cost of debt: 4.94%.
• Self-insurance reserve accrual in rates increased to $200 million annually (from $122 million).
• Five-year amortization for applicable regulatory assets/liabilities (excludes rate case expenses, certain deferred resiliency costs and excess ADIT).
• Oncor may surcharge the difference between new billing rates and current rates for Jan 1, 2026 through the effective date (effective date = 45 days after the final order); surcharge to be filed and recovered during 2026.

Why It Matters
The PUCT approval increases Oncor’s allowed revenues and adjusts key ratemaking inputs, which the company says should positively affect future earnings, cash flow and credit metrics. The higher self-insurance accrual and permission to surcharge prior-period amounts accelerate recovery of storm and other costs, reducing near-term cash volatility. Investors should note these are regulatory outcomes that materially affect utility revenue and cash flow, and Oncor also highlights customary forward‑looking risks and uncertainties in its filing.