Oncor Electric Delivery, the utility that delivers power to most of the Dallas‑Fort Worth metroplex, announced that its next five‑year construction plan could expand by roughly 20 percent. The increase is driven by a surge of power‑connection requests from large data‑center projects seeking to locate in Texas.

Massive queue of data‑center requests

As of Sept. 30, Oncor’s transmission queue listed about 293 gigawatts of data‑center requests. That amount is more than three times the state’s all‑time summer peak demand of 91.1 gigawatts. The utility cautions that these requests represent potential projects, not operating facilities or firm power commitments, and many may never be built.

Capital spending outlook

Oncor expects to spend roughly $9 billion on capital projects in 2026, up from $6.3 billion spent through September. The company projects an additional 20 percent increase for its 2027‑2031 base capital plan, although the exact figure has not yet been finalized. A prior base‑capital plan covering 2026‑2030 was set at $47.5 billion; a 20 percent rise would bring the five‑year total to about $57 billion, but Oncor has not formally adopted that amount.

Protecting ratepayers

To guard against the risk that cancelled projects could shift costs to existing customers, Oncor holds roughly $6 billion in collateral from developers seeking large‑scale generation or commercial‑industrial connections. About $2 billion of that collateral is tied to projects in ERCOT’s “Batch Zero” review, which focuses on the state’s largest load requests.

Oncor stresses that the collateral does not eliminate every possible ratepayer expense, but it does provide a financial buffer while the utility evaluates which projects will move forward.

ERCOT’s Batch Zero review

The Electric Reliability Council of Texas (ERCOT) and state regulators approved Batch Zero in June to study major electricity users seeking at least 75 megawatts each, rather than reviewing each request individually. ERCOT has conditionally classified about 24 gigawatts of the submitted load as base load—10 gigawatts already receiving power and another 21 gigawatts as studied load. This is a much smaller subset of the total 293‑gigawatt queue.

ERCOT will complete its audit of applicant qualifications and community impacts by December, with a final transmission plan expected in fall 2027. Oncor has deliberately excluded the Batch Zero projects from its current base‑capital plan.

Other growth drivers

Beyond data‑centers, Oncor anticipates additional demand from the Dallas‑Fort Worth International Airport’s terminal expansions (about 18 megawatts) and new two‑way electrical feeds for hospitals in Fort Worth’s Medical Innovation District.

Cost and land‑use considerations

Major transmission projects bring significant costs and sometimes spark land‑use disputes. In August, Texas regulators approved 424.2 miles of new high‑voltage lines, with estimated construction costs approaching $3.95 billion. Some landowners have questioned the proposed routes, while regulators cite reliability needs. The estimates do not break down the impact on individual household bills.

Financial performance

Oncor reported third‑quarter net income of $572 million, up from $380 million a year earlier. The increase reflects new base rates that took effect on June 1, but the utility notes that these rate changes do not prove that data‑center connections have raised anyone’s bill.

What lies ahead

The utility’s next steps involve determining which data‑center requests survive ERCOT’s scrutiny, how much construction each approved project will require, and how regulators will allocate the resulting costs among ratepayers. The outcome will shape Texas’ grid capacity for years to come.

Original reporting: The Dallas Express — read the source article.