Oncor Electric Delivery

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. In 2018, Sempra Energy acquired a majority stake in Oncor for US$9.45 billion.

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 electric meters in 2008 with digital electric meters throughout its system, although some old clock-style analog electric meters and old reel numerical display electric meters remain receiving energy through old buildings being billed to the provider to divide cost among customers for payment.

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.

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. The acceptance of the Sempra bid effectively terminated the Berkshire bid. The Sempra bid subsequently received court approval on September 6, 2017. On March 8, 2018, regulators in Texas approved Sempra Energy's purchase of a majority stake in Oncor for $9.45 billion.

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. The Competitive Renewable Energy Zone (CREZ) project was intended to improve the transmission of wind power to Oncor's grid.

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. 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.

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.

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.

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.

Oncor's transmission system is planned to connect to a $104 million solar farm in Falls County. San Antoniobased 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.

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.

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.

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.

See also

* List of companies in Dallas
*List of United States electric companies

References

External links

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Companies based in Dallas
Electric power companies of the United States
2018 mergers and acquisitions