ONCOR REPORTS FIRST QUARTER 2026 RESULTS (Form 8-K)

An increase of approximately $560 million over Oncor's 2024 test year adjusted annualized revenues (an increase of approximately 8.7%);

A regulatory capital structure ratio of 56.5% debt to 43.5% equity;

An authorized return on equity of 9.75%, and a 4.94% authorized cost of debt.

Operating revenues

Operating expenses:

Wholesale transmission service

Operation and maintenance

Depreciation and amortization

Provision in lieu of income taxes

Taxes other than amounts related to income taxes

Total operating expenses

Operating income

Other (income) and deductions - net

Non-operating benefit in lieu of income taxes

Interest expense and related charges

Net income

Cash flows - operating activities:

Net income

Adjustments to reconcile net income to cash provided by operating activities:

Depreciation and amortization, including regulatory amortization

Provision in lieu of deferred income taxes - net

Changes in operating assets and liabilities:

Accounts receivable

Inventories

Accounts payable - trade

Regulatory assets - recoverable SRP

Regulatory assets - recoverable UTM

Regulatory assets - self-insurance reserve costs incurred

Regulatory under/over recoveries - net

Customer deposits

Pension and OPEB Plans

Accrued interest

Other - assets

Other - liabilities

Cash provided by operating activities

Cash flows - financing activities:

Issuances of senior secured notes

Repayments of senior secured notes

Borrowings under term loan credit agreement

Repayments under term loan credit agreement

Borrowings under AR Facility

Repayments under AR Facility

Payment for senior secured notes extinguishment

Net change in short-term borrowings

Capital contributions from members

Distributions to members

Debt discount, premium, financing and reacquisition costs - net

Cash provided by financing activities

Cash flows - investing activities:

Capital expenditures

Other - net

Cash used in investing activities

Net change in cash, cash equivalents and restricted cash

Cash, cash equivalents and restricted cash - beginning balance

Cash, cash equivalents and restricted cash - ending balance

ASSETS

Current assets:

Cash and cash equivalents

Restricted cash, current

Accounts receivable - net

Amounts receivable from members related to income taxes

Materials and supplies inventories - at average cost

Prepayments and other current assets

Total current assets

Restricted cash, noncurrent

Investments and other property

Property, plant and equipment - net

Goodwill

Regulatory assets

Right-of-use operating lease assets

Other noncurrent assets

Total assets

LIABILITIES AND MEMBERSHIP INTERESTS

Current liabilities:

Accounts payable - trade

Amounts payable to members related to income taxes

Accrued taxes other than amounts related to income

Accrued interest

Long-term debt, current

Operating lease and other current liabilities

Total current liabilities

Long-term debt, noncurrent

Liability in lieu of deferred income taxes

Regulatory liabilities

Employee benefit plan obligations

Operating lease obligations

Other noncurrent obligations

Total liabilities

Commitments and contingencies

Membership interests:

Capital account - number of units outstanding at March 31, 2026 and December 31, 2025 - 635,000,000

Accumulated other comprehensive loss

Total membership interests

Total liabilities and membership interests

Reliability statistics (a):

System Average Interruption Duration Index (SAIDI) (non-storm)

System Average Interruption Frequency Index (SAIFI) (non-storm)

Customer Average Interruption Duration Index (CAIDI) (non-storm)

Electricity points of delivery (end of period and in thousands):

Electricity distribution points of delivery (based on number of active meters)

Residential system weighted weather data (b):

Cooling degree days

Heating degree days

Operating statistics:

Electric energy volumes (gigawatt-hours)

Residential

Commercial, industrial, small business and other

Total electric energy volumes

SAIDI is the average number of minutes electric service is interrupted per consumer in a twelve-month period. SAIFI is the average number of electric service interruptions per consumer in a twelve-month period. CAIDI is the average duration in minutes per electric service interruption in a twelve-month period. In each case, our non-storm reliability performance reflects electric service interruptions of one minute or more per customer. Each of these results excludes outages during significant storm events.

Degree days are measures of how warm or cold it is throughout our service territory. A degree day compares the average of the hourly outdoor temperatures during each day to a 65° Fahrenheit standard temperature. The more extreme the outside temperature, the higher the number of degree days. A high number of degree days generally results in higher levels of energy use for space cooling or heating.

Operating revenues

Revenues contributing to earnings:

Revenues from contracts with customers

Distribution base revenues

Residential (a)

LC&I (b)

Other (c)

Total distribution base revenues (d)

Transmission base revenues (TCOS revenues)

Billed to third-party wholesale customers

Billed to REPs serving Oncor distribution customers, through TCRF

Total TCOS revenues

Other miscellaneous revenues

Total revenues from contracts with customers

Other regulated revenues

SRP revenues (e)

UTM revenues (f)

Total other regulated revenues

Total revenues contributing to earnings

Revenues collected for pass-through expenses:

TCRF - third-party wholesale transmission service

EECRF and other revenues

Total revenues collected for pass-through expenses

Total operating revenues

Distribution base revenues from residential customers are generally based on actual monthly consumption (kWh). On a weather-normalized basis, distribution base revenues from residential customers increased 4.5% in the three months ended March 31, 2026 as compared to the three months ended March 31, 2025.

Depending on size and annual load factor, distribution base revenues from LC&I customers are generally based either on actual monthly demand (kilowatts) or the greater of actual monthly demand (kilowatts) or 80% of peak monthly demand during the prior 11 months.

Includes distribution base revenues from small business customers whose billing is generally based on actual monthly consumption (kWh), lighting sites and other miscellaneous distribution base revenues.

The 1.2% decrease in distribution base revenues in the three months ended March 31, 2026 as compared to the three months ended March 31, 2025 (4.4% increase on a weather-normalized basis) was primarily due to lower customer consumption, primarily attributable to milder weather, partially offset by updated interim distribution cost recovery factor rates implemented to reflect increases in invested capital, and increases due to customer growth.

Includes revenues recognized for recoverable costs associated with distribution-related SRP, including operation and maintenance expenses, depreciation expenses, debt carrying costs on unrecovered balances and related taxes.

Includes revenues recognized for recoverable costs associated with UTM eligible transmission and distribution capital investments during 2025 and the three months ended March 31, 2026, including depreciation expenses, debt carrying costs on unrecovered balances and related taxes.