Will Oncor’s Utility Rate Increase Happen?
Oncor has filed for a 4.7% utility rate increase which could raise the average home electric bill by about $7 per month. The added income would help keep up with rising costs, fix damage from severe storms, and expand Oncor’s power grid. As utility costs climb, so do electricity prices, which is why customers should stay alert and plan ahead.
Oncor Says It Needs the Rate Increase Bump
Oncor deals with more than 30 major storm events each year. These storms damage equipment and service lines, often requiring costly repairs. Nearly half of the proposed utility rate increase would cover storm recovery and hardening the system against future weather events. In addition, about 20 percent of the increase would go toward inflation-driven costs like higher insurance rates, rising wages, and interest payments. The rest would support its five-year investment plan. In total, the rate increase will give Oncor an added $834 million in annual revenue.
Oncor’s Rate Hikes
While this may feel sudden, Oncor last requested a base rate review in May 2022. The PUC approved new rates in April 2023. These changes raised the average residential customer’s power bill by 3 percent. And now, Oncor requests more.
Oncor has asked for the new rates to take effect on July 31, 2025. However, that timeline is far from certain. The State of Texas must first review the case. Typically, that process can take six to nine months or longer. Therefore, the final decision may not arrive until late 2025 or early 2026.
Pushback Against the Rate Increase Plan
Although Oncor is moving forward with the hike, not everyone supports this change. In fact, a coalition of more than 140 Texas cities has formally opposed the request. The group, called the Steering Committee of Cities Served by Oncor, has begun raising concerns about the size and timing of the utility rate increase. Some city councils, including in Lufkin and Garland, are reviewing the filing to assess its full impact.
What Customers Can Do Right Now
Customers cannot avoid delivery charges but they can still take steps to lower their overall energy costs. Comparing rates from different retail providers makes a big impact on your choices. Fixed-rate plans from http://www.texaselectricityratings.com can help shield your bill from price hikes. And, using less energy during peak hours can cut your monthly usage. Finally, staying informed about utility filings helps you know why your bill may change and what you can do about it.