POWERING TEXAS

Innovating, and Strengthening the Grid to Meet the State’s Growing Energy Demands

1. Could you provide a brief overview of Oncor and its role in serving Texas residents and industry needs?

Oncor is a regulated electricity transmission and distribution company headquartered in Dallas, Texas that provides the essential service of delivering electricity safely, reliably, and economically. We operate the largest electric transmission and distribution system in Texas with more than 144,000 circuit miles of transmission and distribution lines. We deliver electricity to more than 4 million homes and businesses across a distribution service territory with an estimated population of approximately 13 million. We provide electric transmission and distribution services under regulations established by the Public Utility Commission of Texas (PUCT) and the Electric Reliability Council of Texas, Inc. (ERCOT). We are not a seller of electricity, nor do we purchase electricity for resale. Oncor does more than simply keep the lights on – Oncor plans, builds, operates, and maintains a network with transmission and distribution assets in over 120 counties and more than 400 incorporated municipalities. The approximately 5,000 dedicated employees who make up Oncor are advocates for delivering electricity safely, reliably, and economically. For more than 100 years, Oncor has built a reputation as a company that cares about communities, including being good stewards of the environment, promoting electric safety, and providing resilient and reliable electric service in a cost-effective manner.

2. What measures is Oncor taking to meet our State’s surge in demand due to powerintensive factors such as industrial reshoring, the data center boom, population growth and related?

A crucial component of Oncor’s commitment to delivering safe and reliable electric service to our customers is working with state partners to forecast growing demand and future energy needs, and ultimately help build the infrastructure to meet it. A dedicated group—including Oncor, ERCOT, the Public Utility Commission of Texas (PUCT), and state utilities—keep a pulse on our state's growing energy needs. It is a joint monitoring effort that constantly examines demand and supply, then follows a step-by-step expansion process that involves conducting engineering, routing and environmental

assessments, evaluating connection requirements, securing certifications, determining right-of-way, and working cooperatively with landowners.

As the largest transmission and distribution utility in Texas, Oncor has extensive experience with overseeing and completing major transmission projects with an emphasis on efficiency and cost effectiveness.

As Texas continues to experience unprecedented demand for new transmission and distribution capacity, Oncor remains focused on supporting the state’s energy needs through significant capital investments. Oncor recently announced a new five-year capital plan of approximately $36.1 billion for 2025 to 2029. This record investment further displays the significant growth across Texas and the Oncor service area. For reference, our five-year capital plan as announced in 2020 was $11.9 billion. Oncor has experienced this growth firsthand. In 2024, Oncor recorded solid growth in premises and the construction of new transmission and distribution lines, as well as the setting of new year-end company records for new and active transmission point-of-interconnection (“POI”) requests, all while remaining focused on a high-performing culture built on safety and reliability. The continued dynamic growth across Oncor’s service territory provides additional opportunities to deploy capital to grow the Oncor system.

3. How does Oncor work with generators of renewable energy, and what role do renewables play in our State’s grid stability and reliability?

Texas leads the nation in clean power (land-based wind, offshore wind, utility-scale solar, and battery storage technology) capacity, and in recent years, Texas has installed nearly twice as much renewable energy capacity as any other state. At Oncor, we have consistently invested in facilities that help bring these cleaner energy sources of generation to our customers. As of December 31, 2023 (2024 data in review), Oncor had interconnected 108 renewable generators to the ERCOT grid, representing over 22,500 MW of renewable generation capacity, about 14,000 MW of which (through 80 generators) had achieved commercial operation. The amount of renewable generation in commercial operation through Oncor interconnection represents approximately 24% of all ERCOT wind and solar generation in commercial operation as of December 31, 2023. At the end of 2023, Oncor also had agreements in place with numerous generators—

representing nearly 28,000 MW of renewable and/ or battery generation—that the company expects to connect to its facilities and achieve commercial operation over the next few years. Based on projects that are in the ERCOT interconnection queue for Oncor’s region, Oncor expects renewable and battery generation projects to continue to increase across its system.

4. How is Oncor using technology to modernize the grid, like smart grids and data analytics, to improve operations and customer service?

For the last several years, Oncor has prioritized the installation of automated devices that help make our system more intelligent, responsive and resilient. This “smart grid” technology is designed to allow individual devices to automatically sense local operating conditions to make adjustments for enhanced performance, including identifying faulted areas of the network and rerouting power to quickly

restore service, or to avoid outages entirely. These automated devices are placed strategically across our system and help to shorten the duration of power outages and lower the number of customers affected by these outages. Oncor’s automated devices are all connected by a robust communications network that uses cellular and radio technology, fiber-optic cable, satellite and microwave, which allows our operations centers to monitor these devices around the clock. Oncor has deployed automated devices across 70% of our distribution system with a plan to reach 90%.

  How is Oncor strengthening the grid to both increase resiliency and to resist external threats?

In 2023, the Texas Legislature found the state had an interest in promoting the use of system resiliency measures to enable electric infrastructure to better withstand extreme weather conditions. HB 2555, which became law in June 2023, allows utilities like Oncor to file System Resiliency Plans. Oncor’s first System Resiliency Plan (SRP) was approved by the PUCT on November 14, 2024, making way for accelerated grid upgrades and enhancements. This will help substantially reduce the impact and duration of severe weather outages and address other physical and cybersecurity risks to Oncor’s electric grid. With this plan, Oncor will invest approximately $3 billion in the resiliency of its distribution system over four years to help our system better withstand and more quickly recover from a range of extreme weather and other events.

 To develop our first SRP, Oncor analyzed more than two decades of past weather, damage and location data, and its impact to customers. We used this information to identify the priorities and investments needed across our diverse service area to have the greatest positive impact on service reliability and resiliency. This includes the plan’s substantial increase in vegetation management near Oncor power lines. Once implemented, these accelerated efforts will help to decrease the amount of infrastructure damage that can lead to customer outages. It will also decrease equipment failure and storm-recovery costs while improving getting the power back on faster when there is an outage. Additionally, it will decrease long-term costs for customers by avoiding expensive emergency repairs.

 How can Oncor collaborate with communities and stakeholders to align its infrastructure plans with local needs and foster economic development?

Economic development serves as an engine for economic growth and requires careful collaboration and planning. Oncor works to support the communities that we serve with their efforts to recruit job creating and capital-intensive industries to our service territory. We consider economic development one of our core competencies, and believe that helping bring new jobs, facilities, and investment is one of the important ways we help facilitate long-term growth and prosperity within the communities we serve. Oncor’s Economic Development Office includes a team of dedicated economic development professionals who support community interests by working directly with local, regional, and state economic development offices and community stakeholders across the company’s service territory. We are committed to doing our part in sharing the benefits of investing in Texas with economic development and business leaders across the country. Oncor recognizes the importance of connecting with local residents, local officials, and local business and industry representatives. Leading many of our stakeholder engagement efforts are our more than 35 Area Managers, who have been deployed to live and work in various regions across our service territory to help ensure every city we serve has at least one dedicated individual familiar with the specific needs of their assigned region. These Area Managers represent the company in all local government, civic, and community related initiatives and assist with a variety of local issues, including energy service and delivery needs, economic development projects, and public education opportunities. Area Managers are also active members or leaders within various local organizations, such as chambers of commerce, economic development foundations, home builders associations and rotary clubs. Oncor’s service territory also includes customers in more than 40% of all Texas legislative districts. Representatives with Oncor’s legislative affairs and regulatory teams regularly work collaboratively with Area Managers and state leaders to advocate on behalf of our customers and employees and in keeping with our commitment to building a safer, smarter, and more reliable electric grid.

 What are the biggest hurdles Oncor faces in meeting Texas's evolving energy needs, and how is the company addressing them?Ensuring Texans have safe, reliable energy when and where they need it takes collaboration and careful planning. Oncor works closely with the PUCT and ERCOT to determine needs and make sure our energy infrastructure keeps pace with capacity today and in the future. The ERCOT grid is currently experiencing rapid changes, including trends of notable growth in demand due in part to continued interest in connecting large loads to the system. Load growth for transmission-level customers, including large commercial and industrial (LC&I) customers, has especially continued to accelerate. Oncor’s LC&I interconnection queue, which is made up of customers seeking to connect to Oncor infrastructure at the transmission level, exceededus customers and partners to share crucial information for ERCOT’s Regional Transmission Plan (RTP). This plan produces a system-wide reliability and economic study of the transmission system over a six-year transmission planning horizon. Results of this process include recommendations for upgrading and improving the existing system and proposals for new transmission projects. While it is expected to be a number of years before system upgrades identified by the annual RTP are completed, Oncor is committed to making every effort to incrementally deliver capacity to customers as quickly as possible.

Is Oncor in support of the proposed addition of 765 kilovolt lines to increase transmission capacity within the ERCOT grid this legislative session, and would this strategy involve replacing existing 345kv-lines or installing new infrastructure?

The proposed 765 kilovolt-line is a higher voltage transmission line that allows for much more power transfer over longer distances than 345kV and 138kV. Three double-circuit 345kV lines would be required to achieve the same transfer capacity as a single 765kV line. Under the proposed comprehensive 765kV plan, new 765kV infrastructure can serve as a backbone alongside the existing 345kV system to best realize long-term planning benefits. Oncor would be fully prepared with the people, plans and equipment ready to support either a 345kV or 765kV strategy. Oncor stands ready to implement either option based on the guidance of the PUCT.