As Oncor Seeks a Rate Hike, Its Reluctance to Modernize Is Costing Texans Thousands
AUSTIN, TX – As Oncor Electric Delivery petitions the Public Utility Commission of Texas (PUCT) to raise electric rates once again, a new study commissioned by the Texas Advanced Energy Business Alliance (TAEBA) finds that Oncor customers could save $8.5 billion over the next decade if the utility integrated more distributed energy resources (DERs) into its system planning and operations.
The study, conducted by Demand Side Analytics, finds that including customer-owned technologies such as household solar and battery storage, electric vehicles, and smart appliances in Oncor’s grid planning and ERCOT’s market operations would save every Oncor customer approximately $279 per year or about $2,102 over ten years. Those savings would come from avoiding unnecessary grid expansion and reducing wholesale electricity costs – benefits currently left on the table due to outdated planning and interconnection practices.
“While Oncor is at the Public Utility Commission asking to hike rates again, they’re ignoring solutions that could cut bills instead,” said Matt Boms, Executive Director of TAEBA. “Distributed energy resources are proven and popular technologies that give Texans more independence, and resilience during extreme weather. But Oncor’s current policies have the effect of putting up barriers to their deployment.”
Despite serving nearly 4 million customers across 98 counties, Oncor continues to plan and operate its grid as if local energy resources don’t exist. Texas remains one of the few states in the country without publicly available hosting capacity maps – basic data showing where DERs can most efficiently connect to the grid. Without that transparency, customers, developers, and communities are left guessing where new solar and storage projects can interconnect, which slows investment and increases costs, which in turn means higher customer bills. Meanwhile, Oncor’s interconnection process for small-scale systems remains slow and opaque, often creating delays for technologies already proven to be safe and reliable.
While Oncor hesitates to modernize, it is moving quickly to raise rates. In its July 2025 filing with the PUCT (Docket No. 58306), Oncor requested authority to charge higher interim rates this fall, citing “financial headwinds” and under-earning, even as its revenues and capital investments continue to grow. The company is asking Texans to pay more for an outdated poles-and-wires model while ignoring private-sector investments that could strengthen reliability and lower costs for everyone.
“Oncor is asking Texans to pay more for the same old infrastructure while missing opportunities to deliver greater value to its customers,” Boms said. “Texans deserve a utility that rewards innovation and adapts its business model to reflect today’s energy market.”
DERs are transforming how electricity is produced and consumed across the United States, but Texas risks falling behind. By modernizing planning rules, streamlining interconnection procedures, and increasing transparency, utilities like Oncor could unlock billions of dollars in private investment and deliver long-term savings and reliability benefits for Texas ratepayers. Instead, they continue to rely on outdated rules and bureaucratic inertia – leaving Texans footing the bill.
“It’s time for Oncor to stop putting up barriers and start embracing the technologies that make energy cleaner, cheaper, and more reliable,” Boms said. “Texans are ready for a modern, resilient, and affordable energy future. The only thing standing in the way is a utility that refuses to evolve.”
Access the full report here.