ONCOR ELECTRIC DELIVERY COMPANY LLC (Exact name of registrant as specified in its charter)

Transcription

1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C Form 8-K Current Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (date of earliest event reported) March 1, 2016 ONCOR ELECTRIC DELIVERY COMPANY LLC (Exact name of registrant as specified in its charter) DELAWARE (State or other jurisdiction (Commission (I.R.S. Employer of incorporation) File Number) Identification No.) 1616 Woodall Rodgers Fwy, Dallas, Texas (Address of principal executive offices, including zip code) Registrants telephone number, including Area Code (214) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrants under any of the following provisions (see General Instruction A.2. below): Written communications pursuant to Rule 425 under the Securities Act (17 CFR ) Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR a-12) Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR d-2(b)) Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR e-4(c))

2 ITEM RESULTS OF OPERATIONS AND FINANCIAL CONDITION. On March 1, 2016, Electric Delivery Company LLC (the Company ) distributed a slide presentation entitled Fourth Quarter Year End 2015 Investor Call relating to the conference call discussing its financial results for the quarter year ended December 31, The slide presentation is furnished herewith as Exhibit Within the slide presentation furnished herewith, the Company makes reference to certain financial measures that are not prepared in accordance with accounting principles generally accepted in the United States ( GAAP ). Specifically, the Company makes reference to EBITDA, a non-gaap financial measure. EBITDA is defined as income from continuing operations before interest expense related charges provision in lieu of income tax plus depreciation amortization special items. The Company is providing such non-gaap financial measure with the belief that it will assist the investment community in properly assessing the underlying performance of the Company on a year-over-year basis. The Company does not intend for EBITDA to be an alternative to net income as a measure of operating performance or an alternative to cash flows from operating activities as a measure of liquidity or an alternative to any other measure of financial performance presented in accordance with GAAP. Because not all companies use identical calculations, the Company s presentation of EBITDA may not be comparable to similarly titled measures of other companies. In addition, the Company makes reference to EBITDA, net income, operating revenues, operating cash flow, total debt interest expense, in each case excluding the effects of Electric Delivery Transition Bond Company LLC ( BondCo ) purchase accounting resulting from the merger transaction of Energy Future Holdings Corp., the indirect majority owner of the Company. The Company believes that excluding the effects of BondCo purchase accounting provides investors an important ability to assess the performance of the Company because BondCo was organized for the limited purpose of issuing securitization (transition) bonds to recover generation-related regulatory asset stred costs other qualified costs the effects of purchase accounting result in non-cash impacts that do not relate to operational performance. With respect to the non-gaap financial measures presented in the slide presentation, the Company has complied with the provisions of the rules of Regulation G Item 2.02 of Form 8-K under the Securities Exchange Act of 1934, including providing a reconciliation of each non-gaap financial measure discussed above to the most directly comparable GAAP measure. Such reconciliations are included in the slide presentation. ITEM FINANCIAL STATEMENTS AND EXHIBITS. (d) Exhibits. Exhibit No. Description 99.1 Slide presentation distributed by the Company on March 1, 2016.

3 SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. Dated: March 1, 2016 ONCOR ELECTRIC DELIVERY COMPANY LLC By: /s/ Richard C. Hays Name: Richard C. Hays Title: Controller

4 EXHIBIT INDEX Exhibit No. Description 99.1 Slide presentation distributed by the Company on March 1, 2016.

5 Exhibit 99.1 Exhibit ONCOR 99.1 Fourth March 1, Quarter 2016 Year End 2015 Investor Call Electric Delivery

6 Forward This presentation Looking contains Statements current projections, forecasts, forward-looking estimates statements, expectations which is contained are subject in filings to various made risks by uncertainties. Electric Delivery Discussion Company of risks LLC () uncertainties with the that Securities could cause Exchange actual results Commission to differ materially (SEC). Specifically, from management s reference to the section entitled Risk Factors in its annual quarterly reports. In addition to the risks uncertainties set forth in s SEC filings, the forward-looking statements in this presentation could makes affected by, among other things: prevailing governmental policies regulatory actions; legal administrative proceedings settlements, including the exercise of equitable powers by courts; any impacts on be as such a result proceedings; of the bankruptcy weather conditions proceedings involving other natural Energy phenomena; Future Holdings acts of sabotage, Corp. (EFH) wars or terrorist certain of or its cyber subsidiaries security threats the or consummation activities; economic of the transactions conditions, including change the in impact indirect of ownership a recessionary of environment; proposed in unanticipated rates of inflation; population unanticipated growth changes or decline, in operating or changes expenses, in market liquidity dem needs demographic capital expenditures; patterns; changes inability in business of various strategy, counterparties development to meet plans their or financial vendor relationships; obligations to unanticipated, including changes failure in interest of counterparties rates or to used perform by under services agreements; offered by general ; industry significant trends; changes hazards in s customary relationship to the industry with its employees; the possibility changes that in assumptions may not used have to adequate estimate insurance costs of providing to cover losses employee resulting benefits, from including such hazards; pension changes other in technology retirement employee benefits, future funding requirements related thereto; significant changes in critical accounting policies material to ; commercial bank financial market conditions, access to capital, post- cost of such capital, the results of financing refinancing efforts, including availability of funds in the capital markets the potential impact of disruptions in US credit markets; circumstances which may the contribute sufficient cash to future flow impairment to make interest of goodwill, payments intangible on its debt or instruments; other long-lived actions assets; by credit financial rating restrictions agencies; under s s ability revolving to effectively credit facility execute indentures its operational governing strategy. its Any debt forward-looking instruments; s statement ability speaks to generate of the date on which it is made, undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which it is made or to reflect the occurrence of only as unanticipated Regulation G events. This website, presentation includes in certain the Investor non-gaap section, financial also measures. filed with Reconciliations the SEC. of these measures to the most directly comparable GAAP measures are included in this presentation, which is available on s Electric Delivery 1

7 4th Financial Quarter Overview Year End 2015 David Investor Davis Call Agenda Chief Operational Financial Review Officer Q&A Bob Shapard Chief Executive Electric Delivery 2

8 Residential Residential Points Large of Delivery C&I1 Metrics Q42?14 vs. Q4?15; thouss Residential of meters Q4 GWH 1.8% 41,800 42,536?14 vs. Q4?15 TME3?14 vs. TME?15 1.5% 8,9662,832 8,3632, % At Large 12/31/2014 C&I Billed At MW 12/31/2015 Dem Q4 (Average) 14 Q4 15 Large TME C&I 14 GWH4 TME 15 Q4 1.8%?14 vs. Q4?15 TME?14 vs. TME?15 Q4?14 vs. Q4?15 TME?14 vs. TME?15 1.2% 1.0% 70,532 71,832 17, % 17,408 17,276 17,455 17,474 Q ,524 1 Commercial Q4 15 TME Industrial 14 TME 15 Q4 14 Q4 15 TME 14 TME Q4 TME reflects reflects three twelve months months ended ended December December Prior period adjusted for billing day variation 31. Electric Delivery 3

9 Summary Operating of Financial Revenues Results1 2.2% 3,677 3,758 Q42 14 vs. Q4 15 TME3 14 vs. TME 15; $ millions % 849 2, , Q Revenues Q4 to 15 pass-through TME 14 TME expenses 15 1 See Appendix for Reg G reconciliations Revenues contributing financial definitions. to earnings 2 3 Q4 TME reflects reflects three twelve months months ended ended December December 31. Operating Revenue Increase 31. TME Revenues 14 vs. Contributing TME 15; $ to millions Distribution base revenue 21 Earnings: Transmission $ millions Billed to Distribution, collected from base REPs revenue through (TCOS): TCRF 12 Billed to 3rd party wholesale customers 33 Total AMS transmission surcharge, energy base revenue efficiency (TCOS) bonus 45 Revenues to Pass-Through Expenses: other miscellaneous revenues (14) Total revenues contributing to earnings 52 3rd Energy party efficiency wholesale transmission rate case expense service surcharges billed to (18) Distribution (i.e. remaining TCRF revenue) 47 Total revenues operating to revenue pass through increase expenses Electric Delivery 4

10 Summary EBITDA of Financial Results1 (cont.) Q42 1, ,807 vs. Q4 15 TME3 14 vs. TME 15; $ millions 1.1% % 401 Q4 14 Q4 Net 15 Income TME 14 TME 15 Q4 14 vs. Q4 15 TME 14 vs. Operating TME 15; Cash Q4 14 Flow ,140 vs. Q4 15 TME 14 vs. TME 15; $ millions 1.1% $ millions 1, % % Q % 1 See Appendix Q4 15 TME for Reg 14 G TME reconciliations 15 Q4 14 Q4 15 financial TME definitions. 14 TME Q4 TME reflect reflects s three twelve months months ended ended December December 31. Electric Delivery 5 31.

11 Ample Secured Liquidity Revolving Credit Stable Facility1 Credit Metrics Balances 2,000 (847) at December 31, 20152; $ millions 1,153 Revolver 25 1,178 EBITDA3/Cash Capacity Borrowings Interest Debt/ Letters Effective EBITDA Remaining Cash Total Available Liquidity of Credit Capacity TME4 5.3x 5.5x 14 vs. TME 15; Ratio TME 14 vs. TME 15; Ratio 3.6x TME 3.4x 1 s 14 TME revolving 15 TME credit 14 facility TME 15 2 s borrowing capacity under matures the revolving in 2017, credit reflecting facility a one-year was permanently extension reduced exercised to $2.0 in October billion See Appendix for Reg G reconciliations financial definitions. in October TME Electric reflects Delivery twelve 6 months ended December 31.

12 4th Financial Quarter Overview Year End 2015 David Investor Davis Call Agenda Chief Operational Financial Review Officer Q&A Bob Shapard Chief Executive Electric Delivery 7

13 Key Continued Drivers strong of Capital investment Investment Load growth in transmission Reduction Interconnection of grid of congestion Emerging physical new security generation needs sources Distribution Investments in investment infrastructure to connect to maintain new customers Overhead pole maintenance improve reliability Underground Network equipment cable replacement maintenance rehabilitation Investments in technology to support business planned processes replacements Electric Delivery 8 operational efficiencies

14 Appendix Regulation G Reconciliations Financial Definitions Electric Delivery 9

15 Financial Measure Definition Definitions Operating Net Income Revenues operating net income, revenues, less effects less operating of purchase revenues accounting, of tax audit Electric settlement, Delivery (non-gaap) (non-gaap) write Transition off of a Bond regulatory Company asset LLC (BondCo) Operating Cash Flow cash provided by operating activities, less BondCo cash provided by (non-gaap) operating activities net income of BondCo Debt Total (non-gaap) Debt (GAAP) total long-term debt, less debt transition (including bonds current of BondCo Income from continuing operations before interest expense portion) related plus charges bank loans results. Also adjusted for the effect of regulatory asset write off reversal, where applicable. provisions EBITDA in lieu is of a income measure tax, used plus by depreciation to assess performance. EBITDA (non-gaap) amortization special items, less BondCo Total therefore debt excluded less transition from debt bonds in divided credit reviews. by Debt EBITDA. / EBITDA Transition, is a measure or used Debt/ by to EBITDA assess credit quality. securitization, bonds are serviced by a regulatory transition charge on wires (non-gaap) rates are Electric EBITDA/Cash Delivery 10 Interest EBITDA divided by cash interest expense is a measure used by (non-gaap) to assess credit quality.

16 Table Three 1: Twelve Months Operating Ended December Revenues 31, Reconciliation Q4 14 Q4 15 TME 14 TME $ millions Operating Adjustments: revenues Operating revenues BondCo 3,822 3,878 operating revenues, excluding BondCo (35) 904 (21) 901 (145) 3,677 (120) Electric Delivery 11 3,758

17 Table Three 2: Twelve Months EBITDA Ended December Reconciliation Q4 14 Q4 15 TME 14 TME 15 31, $ millions Net income , , Adjustments: 432 Plus: Depreciation Net income & BondCo amortization Depreciation & 213 amortization BondCo Provision (31) in lieu (20) of (130) income (113) taxes Interest expense BondCo Interest (3) (1) (13) expense (6) Effects of 87 fair 83 value 353 accounting 333 Equals: (pre EBITDA tax) (3) (12) (5) Reversal of write off of regulatory assets (pre tax) (4) Regulatory asset amortization in O&M expense (1) Electric Delivery EBITDA, 12 excluding BondCo ,827 1,807

18 Table Three 3: Twelve Months Net Ended Income December Reconciliation Q4 14 Q4 15 TME 14 TME 15 31, $ millions Net income net income, 94 excluding BondCo Adjustments: Effects 431 of purchase accounting (after tax) (2) (8) (3) Tax audit settlement (after tax) 2 (3) 2 Write off of regulatory assets (after tax) (3) BondCo net income Electric Delivery 13

19 Table Three 4: Twelve Months Operating Ended December Cash Flow 31, Reconciliation Q4 14 Q4 15 TME 14 TME $ millions Operating Adjustments: cash Operating flow cash flow BondCo 1,276 1,361 operating cash flow, excluding BondCo (33) 378 (22) 286 (136) 1,140 (107) Electric Delivery 14 1,254

20 Table At December 5: 31, Total Debt Reconciliation At 12/31/14 At 12/31/ $ millions Short-term due currently debt- BondCo 711 (139) 840 (41) Long-term Long-term debt debt, due less currently due currently 639 BondCo 41 Long-term (40) debt, less due currently 4,964 5,646 Total debt, including BondCo 6,314 6,527 Adjustments: Long-term debt Total 1 Where applicable, debt, excluding 2014 amounts BondCo have 6,135 been 6,486 Electric Delivery 15 restated to reflect the application of Accounting Stards Update No , Simplifying the Presentation of Debt Issuance Costs.

21 Table Twelve 6: Months Interest Ended December Debt Coverage TME 14 TME 15 Ref Source 31, $ millions Interest Cash interest expense expense, related excluding charges BondCo A Amortization of debt discount (3) (3) AFUDC 5 5 Cash interest expense Less: Interest expense BondCo (13) (6) EBITDA, EBITDA/cash excluding interest BondCo ratio 1,827 (B / A) 1, x B 5.5x Table 2 Total debt, excluding BondCo 6,135 6,486 C Table 5 Debt/EBITDA 1 Where applicable, ratio 2014 (C / amounts B) 3.4x 3.6x Electric Delivery 16 have been restated to reflect the application of Accounting Stards Update No , Simplifying the Presentation of Debt Issuance Costs.