Oncor Secures $3 Billion in Credit Facilities

Oncor Electric Delivery Company strengthens its financial flexibility with new credit agreements.

February 26, 2025

Oncor Expands Borrowing Capacity with New Credit Agreements

Oncor Electric Delivery Company is reinforcing its financial position with two new credit facilities totaling $3 billion. The agreements, signed on February 20, 2025, expand Oncor’s borrowing capacity and give the company additional flexibility to manage operations and future investments.

Key Details of the Credit Facilities

• $2 Billion Facility: Extends through 2030 with an option to increase borrowing capacity by $650 million, pending lender approval.


• $1 Billion Facility: Matures in 2028 and includes an option to add up to $350 million.


• Both agreements allow for extensions of up to two additional years.

Oncor plans to use the funding for general corporate purposes. Borrowings are structured with interest rates tied to either secured overnight financing rates (SOFR) or an alternative base rate, depending on Oncor’s credit standing. The agreements require the company to maintain a maximum senior debt-to-total capitalization ratio of 0.65 to 1.00 while complying with standard financial reporting and operational covenants.

Oncor's Strategic Financial Position

This move comes as Oncor continues to manage evolving market conditions and regulatory requirements. The company, a key player in Texas’s electricity market, is majority-owned by Sempra, which holds an 80.25% stake.

Financial Performance and Market Outlook

Alongside the credit agreements, Oncor released its latest financial results for the fourth quarter and full year of 2024. The company detailed its performance in a webcast led by Sempra, where Oncor’s Chief Executive Allen Nye joined the discussion. A slide presentation accompanying the webcast outlined key financial and operational updates.

As Oncor navigates shifting energy demands and grid reliability challenges, these credit facilities strengthen its ability to fund capital projects, respond to regulatory changes, and support long-term financial stability.