Oncor

Oncor completed another year of safe, dependable delivery of electricity and natural gas, adding to more than a century of energy delivery service to customers across North Central, East, and West Texas. Our North American asset management services company, Oncor Utility Solutions, also scored successes in its first full year of business.

Combining efficient regulated operations with an entrepreneurial spirit, Oncor focuses on steady earnings and strong cash flows for investors and reliable and flexible service for customers.

Oncor transmits and delivers electricity and natural gas to some 122 counties across almost one-half of the state’s geographic area. The economy of this territory, which includes the Dallas-Fort Worth area, is highly diverse. The region’s quality of life is consistent with attracting new or expanding businesses. The D/FW International Airport, the world’s fourth busiest, has also helped make this region fourth in the nation in the number of Fortune 500 companies located here.

The economy of our service area continues

to grow and with it the need for dependable energy delivery. In 2002, Oncor provided electricity to 2.9 million points of delivery and natural gas to almost 1.5 million customers. The electric customer base continues to grow at over two percent per year (2.3 percent in 2002) and the natural gas customer base at 1.5 percent per year (1.7 percent in 2002). In the past five years, the electricity customer base has grown by approximately 11.5 percent and the natural gas customer base by 7.4 percent.

In addition to our distribution business, we also operate the 14th largest high-volume natural gas pipeline in the US. In 2002, the Texas intrastate system delivered 437 billion cubic feet, up 13 percent over 2001.

To provide quality service for the expansion in our service territory, we have added considerable infrastructure. Among the most significant accomplishments in 2002 was completion of the last miles of four essential 345-kilovolt transmission lines. These critical lines will help relieve transmission congestion in North Texas and ensure the continued reliability of the transmission grid.