Electricity 101

What is Oncor Electric Delivery & How Do They Work?

By
Gexa Energy
April 26, 2023
|
5
minutes read
By
Gexa Energy
Publication Date:
August 6, 2024
Last updated:
August 6, 2024

Oncor Electric Delivery, a prominent Transmission and Distribution Utility (TDU) — also called a Transmission/Distribution Service Provider (TDSP) — in Texas, plays a crucial role in the state's energy landscape. As consumers, understanding how Oncor operates and interacts with retail electricity providers like Gexa Energy can provide valuable insights into your monthly electric bill, specifically the Oncor Electric Delivery charges.

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What Is Oncor Electric Delivery?

As one of the largest utilities in Texas, Oncor is one of the TDUs responsible for maintaining and operating the electrical infrastructure, including the power lines and meters that deliver electricity to homes and businesses across the state. Unlike retail electricity providers (REPs), such as Gexa Energy, which sell electricity plans to consumers, Oncor is tasked with the physical delivery of electricity.

History of Oncor

Originally part of a group of regional utilities that merged over the decades, Oncor was formally established when TXU Corp was restructured in 2007. Throughout its history, Oncor has focused on innovation and infrastructure development. This includes significant projects like the Competitive Renewable Energy Zone (CREZ) initiative aimed at improving wind power transmission across Texas. Moreover, Oncor has modernized its grid to support the integration of renewable energy sources and enhance service reliability.

How Does Oncor Electric Delivery Work?

Oncor's core function involves maintaining the power grids in its service areas, ensuring electricity is transmitted reliably from power plants to end consumers. This includes repairing power lines and transformers and installing new infrastructure to support how energy is generated in growing communities. When power outages occur, Oncor is the entity responsible for restoring power.

Oncor operates solely in the capacity of electricity delivery and does not involve itself with the sales or pricing of the electricity—this is where retail electricity providers like Gexa Energy come into play. Gexa purchases and sells electricity to consumers. However, the charge for delivering this electricity is determined by Oncor and passed through to the consumer by Gexa on the electric bill.

Understanding Oncor Electric Delivery Charges

On any average electric bill in Texas, customers will notice TDU delivery charges. These fees are set by your TDU and approved by the Public Utility Commission of Texas (PUCT), ensuring that a TDU like Oncor can cover the costs associated with the transmission and distribution of electricity. Delivery charges typically include a fixed monthly fee and a variable charge based on the amount of electricity used.

It's important to recognize that these delivery charges would remain the same regardless of which REP you choose, as they are determined solely by Oncor for its services. When comparing electric plans, consumers should consider the prices offered by retail electricity providers like Gexa while understanding that delivery charges will be an additional static on their Oncor electric bill.

Oncor Residential Solar Incentives

Oncor's Residential Solar Program encourages homeowners within its service area to adopt solar technology by offering incentives for installing photovoltaic systems with energy storage backup. This initiative helps offset the upfront costs, making solar more accessible and providing a quicker return on investment. To be eligible for these Texas solar incentives, the installation must be on properties served by Oncor Electric, involve new solar arrays with battery storage, and the homeowner must enter into an Interconnection Agreement with Oncor. The program runs annually from January through November.

Driving Wind Energy Forward

Oncor was instrumental in the Texas Competitive Renewable Energy Zone (CREZ) initiative, a project to enhance the state's wind energy capacity by constructing extensive transmission infrastructure. Awarded several priority projects by the PUCT, Oncor constructed an impressive 3,500 miles of transmission lines. This extensive network connects wind farms in West Texas to high-demand areas, significantly reducing grid congestion and supporting the state's leadership in renewable energy. 

The CREZ initiative, completed in 2014, is recognized for its visionary investment, which has delivered substantial economic and environmental benefits and supported further renewable energy developments.

Customer Support for Oncor Electric in Texas

Oncor provides various channels for customer communication, including a dedicated customer service line, online resources, and an outage reporting system.

For customer support, Oncor offers several dedicated phone numbers:

  1. General Inquiries/Service Requests:
  • Phone: 888-313-6862
  1. Report Power Outages:
  • Phone: 888-313-4747
  1. My Oncor Alerts for Outage Notifications:
  • Register by texting "REG" to 66267 (ONCOR)
  • Report outages by texting "OUT" to 66267

The Relationship Between Oncor and Gexa Energy

The relationship between Oncor and Gexa Energy is defined by their roles in the Texas electricity market. While Oncor electric delivery ensures that electricity reaches your home safely and reliably, Gexa Energy focuses on customer service, billing, and providing competitive electricity prices. This relationship is essential for delivering efficient and reliable electricity service to Texas residents.

Staying Connected With Gexa Energy

The Texas electricity market offers the advantage of choice for many of those living within Oncor's service territory looking to compare or switch electricity plans. Gexa Energy offers a variety of competitive electricity plans tailored to meet the diverse needs of Texas consumers, leveraging Oncor Electric’s robust infrastructure. Sign up for Gexa Energy today.

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Gexa Energy purchases renewable energy credits (RECs) from renewable generation resources throughout North America to match 100% of the energy sold under your electric plan. The RECs Gexa purchases represent the renewable attributes of power generated from a variety of renewable energy sources, including, but not limited to, the sun, wind, geothermal, hydroelectric, wave or tidal energy, and biomass or biomass-based waste products, including landfill gas.