Interconnection demands totaling 200 gigawatts, as confirmed by company representatives at Oncor.
In the ever-evolving landscape of energy consumption, Oncor Electric Delivery, a leading Texas-based utility company, is experiencing a significant surge in interconnection requests. This surge, driven primarily by data center expansion, has prompted the company to revise and substantially increase its capital expenditure plans.
As of mid-2025, Oncor's interconnection requests stand at approximately 200 GW, with data centers accounting for 186 GW, followed by traditional commercial and industrial customers (7 GW), crypto currency facilities (5 GW), oil and gas operations (4 GW), and diverse industrial sectors (19 GW)[1][3]. This increase in demand is putting pressure on Oncor's capital investment plans, leading to an expectation of adding more than $12 billion in incremental capital expenditures to the existing $36 billion plan[1][3].
To address this growing demand and manage costs, Oncor has filed for a comprehensive base rate review with the Texas Public Utility Commission. This review aims to recover storm-related costs, finance higher capital investments, and update its capital structure. A decision on this matter is expected by Q1 2026[2].
The rise in interconnection requests is not the only factor driving Oncor's growth. The company initiated service to 20,000 new properties in the second quarter alone, reflecting the massive growth in electric demand in its service territory[4].
Meanwhile, San Diego Gas & Electric, another key player in the energy sector, has gone 18 years without being involved in a major wildfire. In a proactive move, the utility has hardened 100% of its highest-risk transmission systems against wildfire[6].
Notably, San Diego Gas & Electric has also been awarded a contract for $600 million in new transmission by the California Independent System Operator[7]. This contract could be another potential addition to Sempra's existing capital plan.
Sempra, Oncor's parent company, is also considering the sale of Ecogas Mexico and a stake in Sempra Infrastructure to raise funds for Oncor's multibillion-dollar expansion. These sales have drawn interest from potential buyers and financiers[8].
The trendline "The state of electricity supply and demand" brings together Utility Dive's coverage of emerging trends and decisions impacting the power system for years to come[9]. As Sempra continues to shift towards a more utility-focused business model, investors can expect improved earnings and reduced risk.
References:
- Oncor Electric Delivery's Interconnection Queue
- Oncor Files for Base Rate Review with Texas Public Utility Commission
- Oncor Expects to Add $12 Billion to Capital Plan
- Oncor Initiates Service to 20,000 New Properties
- Oncor's Interconnection Queue Detail
- San Diego Gas & Electric Hardens Transmission Systems Against Wildfire
- California Independent System Operator Awards $600 Million Transmission Contract to San Diego Gas & Electric
- Sempra Considers Sale of Ecogas Mexico and Stake in Sempra Infrastructure
- The State of Electricity Supply and Demand
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