Oncor Electric Delivery

Last updated

Oncor Electric Delivery Company LLC
Company type Subsidiary
Industry Electric Utility
Founded2007
Headquarters Dallas, Texas
Key people
Allen Nye
(CEO)
RevenueIncrease2.svg US$4.3 billion (2019) [1]
Increase2.svg US$651 million (2019) [1]
Number of employees
4,000 or more
Parent Sempra Energy
Website www.oncor.com

Oncor Electric Delivery Company is the largest transmission and distribution electric utility in the state of Texas and the 5th largest utility company in the US. [2] Their service territory includes east, west, and north-central Texas, including Dallas, Fort Worth, Irving, Plano, Arlington, Beeville, Midland, Odessa, Killeen, Waco, Wichita Falls, Tyler, and other cities throughout Texas. [3] In 2018, Sempra Energy acquired a majority stake in Oncor for US$9.45 billion. [4]

Contents

History

It was formerly known as TXU Electric Delivery and TU Electric. Predecessor companies include Dallas Power & Light (DP&L), which served the city of Dallas; Electric Service Company (TESCO), which served areas surrounding Fort Worth; and Texas Power and Light (TP&L), which served other areas of northwest and east-central Texas. Oncor began replacing analog meters in 2008 with digital meters throughout its system, although some older analog meters remain.

Oncor is privately held by a limited number of investors including Energy Future Holdings Corporation ("EFH"). Oncor is separate from its owners and separately managed by a majority independent board of directors. While a majority owner, EFH was not involved in the management of Oncor. On March 24, 2016, the Public Utility Commission (PUC) granted the request to convert Oncor into a real estate investment trust (REIT) with the reservation that the PUC would consider the treatment of potential tax savings, which could account for $250 million, from the REIT structure in a separate proceeding to be held at a future date. The subsequent proceeding's focus was to determine how the potential tax savings attributable to the REIT format would be shared with utility ratepayers. [5]

On July 7, 2017, it was announced that Berkshire Hathaway had agreed on a deal to buy the whole of Energy Future Holdings and ultimately Oncor. This bid was ultimately surpassed by Sempra Energy, which bid $9.45 billion in cash and the assumption of debt on August 21, 2017. [6] The acceptance of the Sempra bid effectively terminated the Berkshire bid. The Sempra bid subsequently received court approval on September 6, 2017. [7] On March 8, 2018, regulators in Texas approved Sempra Energy's purchase of a majority stake in Oncor for $9.45 billion. [4]

Major projects

As of 2014, Oncor Electric Delivery Company was working in partnership with Siemens AG Power Technologies to build a smart grid in an exploration of the use of storage batteries and micro-grids. [8] The Competitive Renewable Energy Zone (CREZ) project was intended to improve the transmission of wind power to Oncor's grid. [9]

Oncor Electric Delivery Company works with private and public utilities throughout the country through organizations called Mutual Assistance Groups. Oncor is a member of Texas Mutual Assistance Group, Midwest Mutual Assistance Group, and the Southeastern Electric Exchange. The mutual partnerships are part of a larger network of utilities that meet throughout the year to share best practices and improve upon safety methods. Members are able to quickly access and deploy resources and personnel across long distances to communities impacted by severe weather. For example, Oncor crews were sent to Florida and Georgia to assist in Hurricane Matthew aftermath in 2016. [10] Additionally, crews were sent to California to assist in restoring power to areas devastated by the region's wildfires in 2018, and to Florida to assist in preparing for Hurricane Dorian in 2019. [11] [12]

Environmental impact

Oncor Electric Delivery Company's Take A Load Off provides a variety of energy efficiency programs for residences and businesses in an effort to reduce energy and save people money on their electric bill. Oncor budgeted more than $50 million for its programs in 2019; in the last ten years, Take A Load Off Texas has helped more than 250,000 customers reduce their energy usage. [13]

Oncor assisted with the adoption of larger, commercial electric vehicles. The company worked with electric vehicle original equipment manufacturers and other utilities to monitor the use of electric vehicles in its service territory, to provide power supply to vehicles and homes; it has helped install and plan locations for charging stations. [14]

For nine consecutive years, Oncor has partnered with the Arbor Day Foundation's Energy-Saving Trees Program to give away thousands of free trees to customers. The program is designed to help customers better understand where to plant trees for maximum energy savings and the protection of electrical equipment. [15]

Oncor's transmission system is planned to connect to a $104 million solar farm in Falls County. San Antonio–based OCI Solar Power is planning the project where 800 acres will be leased from private landowners in the reinvestment zone where it plans to build the 100-megawatt farm. [16]

Oncor partnered with IBM Oncor to predict for preventative maintenance where vegetative growth is most likely to interfere with power lines, which can cause blackouts and wildfires. [17]

Social responsibility

In April 2020, Oncor donated $1.7 million to community non-profit organizations across its service territory that serve those most affected by the COVID-19 pandemic. [18]

In 2021, Oncor announced a donation of 110 acres of land to the City of Dallas to be used as a public park. It will be the largest donation of land to the city since the 1930s. [19]

See also

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References

  1. 1 2 "ONCOR REPORTS STRONG 2019 RESULTS". sec.gov. Retrieved August 25, 2020.
  2. ↑ "About Us". Oncor Official Site. April 14, 2022.
  3. ↑ com/content/oncorwww/us/en/home/about-us/service-area-map.html "Oncor Service Area Map". Oncor Official Site. April 14, 2022.{{cite web}}: Check |url= value (help)
  4. 1 2 Peg Brickley (March 8, 2018). "Texas Regulators Approve Sempra's $9.45 Billion Oncor Buyout". The Wall Street Journal . ISSN   0099-9660. Wikidata   Q114386747 . Retrieved October 3, 2022.
  5. ↑ Davidson, Mark (March 25, 2016). "Texas Oncur Buyout Approved – With Reservations". The National Law Review. Lewis Roca Rothgerber LLP. Retrieved May 11, 2016.
  6. ↑ "Form 8-K". www.sec.gov. Retrieved September 22, 2017.
  7. ↑ Nikolewski, Rob. "Judge OKs Sempra's $9.45B deal with Oncor". sandiegouniontribune.com. Retrieved September 22, 2017.
  8. ↑ Desonie, Dana (April 2010). "A Smart Grid for Smart Texans" (PDF). siemens.com. Retrieved June 23, 2014.
  9. ↑ Schnurman, Mitchell (May 31, 2014). "Oncor bets on a better grid". dallasnews.com. Retrieved June 23, 2014.
  10. ↑ McFarland, Susan (October 6, 2016). "Oncor crews head east to assist in hurricane aftermath". Fort Worth Star Telegram.
  11. ↑ "Oncor sends crews from state to state to assist with outages after wildfires". Dallas News. November 23, 2018. Retrieved August 25, 2020.
  12. ↑ "Oncor crews head to Florida ahead of Hurricane Dorian". FOX 4 News Dallas-Fort Worth. August 30, 2019. Retrieved August 25, 2020.
  13. ↑ Chinn, Kelley (March 3, 2017). "How to get incentives to help pay for solar panels or insulation". Fort Worth Star-Telegram. Retrieved November 24, 2023.
  14. ↑ "How Oncor is preparing for a wave of large electric fleet vehicles".
  15. ↑ "Oncor gives 5,000 free trees ahead of Arbor Day". September 9, 2019.
  16. ↑ Corso, Jessica (January 21, 2020). "CPS supplier building $104M solar farm near Waco". www.bizjournals.com. Retrieved August 25, 2020.
  17. ↑ "IBM BrandVoice: IBM GRAF Builds on the Weather Company's AI and Cloud Capabilities". Forbes .
  18. ↑ "Oncor donating $1.7M to nonprofits affected by COVID-19 Oncor had a snow freeze in March 2021. Handling customer with fast service as possible in rotation. The 14 years of this company serving power. Did excellent keeping customers warm through the week of rotating outage. The electric went back into its routine power. Making the cities warm for customers". KETK.com | FOX51.com. April 14, 2020. Retrieved August 25, 2020.
  19. ↑ Bailey Jr., Everton (November 20, 2021). "Dallas is getting 110 acres of land from Oncor for new park, The LOOP trail" . Dallas Morning News. Retrieved April 4, 2022.
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