Oncor Electric Delivery Company LLC Requests 2026 Energy Efficiency Cost Recovery Factor Adjustment

Strategic Insights -

Oncor Electric Delivery Company LLC has filed an application with the Public Utility Commission of Texas to adjust its 2026 Energy Efficiency Cost Recovery Factor (EECRF) to $104,807,363. This request is based on various components, including energy efficiency expenses forecasted for the 2026 program year, allocation of under-recovery of 2024 energy efficiency costs, inclusion of a performance bonus earned in 2024, and estimated costs for evaluation, measurement, and verification. The proposed tariff rider and Oncor's most recent filed energy efficiency plan and report are included in the filing, along with direct testimony and workpapers by Oncor witnesses Garry D. Jones and Janice I. Fennell.

Key Takeaways:

  • Oncor Electric Delivery Company LLC is requesting a 2026 Energy Efficiency Cost Recovery Factor (EECRF) adjustment to $104,807,363.
  • The proposed EECRF includes $63,800,000 in energy efficiency expenses forecasted for the 2026 program year.
  • Allocation of $7,622,221 for the total under-recovery of 2024 energy efficiency costs, including interest payment, is also sought.
  • Oncor is requesting a performance bonus of $32,560,930 under 16 TAC SS 25.182(e) based on its energy efficiency achievements in 2024.
  • Estimated Evaluation, Measurement, and Verification (EM&V) costs for the evaluation of program year 2025 are also included in the proposed EECRF.
  • The request includes $7,695 for EECRF proceeding expenses of municipalities that the Steering Committee of Cities Served by Oncor has submitted to Oncor.
  • Oncor anticipates that Cities will provide evidence in this EECRF proceeding supporting the amount of $7,695 relating to municipal EECRF proceeding expenses.
  • Oncor has compiled necessary materials and information that include specific contractual and other confidential information, requesting stringent confidential treatment.
  • A copy of the standard protective order is attached as Attachment B.
  • The proposed EECRF will go into effect on March 1, 2026, consistent with 16 TAC SS 25.182(d)(9)(B).

Statistics:

  • $104,807,363: Proposed 2026 Energy Efficiency Cost Recovery Factor (EECRF) adjustment.
  • $63,800,000: Energy efficiency expenses forecasted for the 2026 program year.
  • $7,622,221: Allocation of total under-recovery of 2024 energy efficiency costs, including interest payment.
  • $32,560,930: Performance bonus earned in 2024.
  • $816,517: Estimated EM&V costs for the evaluation of program year 2025.
  • $7,695: EECRF proceeding expenses of municipalities.
  • March 1, 2026: Effective date of the proposed EECRF.

Sources:

  • Public Utility Regulatory Act, Tex. Util. Code SSSS 11.001-66.016.
  • 16 TAC SSSS 25.181 and 25.182.
  • Oncor Electric Delivery Company LLC, Application for 2026 Energy Efficiency Cost Recovery Factor, Docket No. [insert docket number].
  • Public Utility Commission of Texas, Order (Nov. 14, 2024), at 16.