Oncor to Apply for More Than $300 Million in Smart Grid Stimulus Funds

DALLAS--(Business Wire)--
Today, Oncor notified the U.S. Department of Energy of its intent to apply for
approximately $317 million in stimulus funds to advance one of the nation`s
broadest and most advanced smart grid initiatives. In its applications, Oncor
will request:

* $200 million to lower the cost for the Smart TexasSM advanced meter system
initiative,
* more than $58 million for telecommunications and network investments to
support the smart grid initiatives, and
* more than $58 million for distribution automation to improve service and
reliability.

Oncor will officially request federal stimulus funds available through the
American Recovery and Reinvestment Act of 2009 on or before the August 6
deadline. In February, the federal government outlined a number of objectives
for the energy portion of the bill, including creating 3.5 million jobs over two
years, reducing the nation`s dependence on foreign energy sources, lowering
environmental impacts by reducing energy use and carbon dioxide emissions, and
piloting and demonstrating new emerging technologies.

"Oncor`s vision for a modern, interactive, intuitive electric grid is real,
tangible and happening now. Our first considerations in seeking these stimulus
grants are whether the funds will help consumers lower their electric bills or
advance smart grid initiatives to improve service and reliability. That`s where
we have focused our attention and energy," said Bob Shapard, Chairman and Chief
Executive Officer of Oncor.

Oncor`s smart grid program is an all-encompassing transformation of Oncor`s
electric grid underpinned by the installation of 3.4 million advanced meters and
related communications systems. New, state-of-the-art meters now rolling out
across Oncor`s system are capable of recording data every 15 minutes and
reporting energy use real-time to customers through an in-home monitor, as well
as provide Oncor with valuable power disruption information oftentimes before
the consumer becomes aware of it.

So far, Oncor has installed close to 250,000 advanced meters in the nation`s
largest full-scale deployment. Expected to be completed in 2012, the advanced
metering initiative represents the gateway to new programs and services,
including time-of-use pricing, smart appliances that can tell when the price for
power is lowest, and plug-in hybrid and electric vehicle fleets fueled by
off-peak, clean, renewable wind energy.

Because informing consumers is central to the success of the Smart Texas
project, Oncor introduced a customer education program to inform the public
about the benefits of the new meters. For more information on the Smart Texas
initiative, visit www.smarttexas.com.

"The ability to monitor energy use real-time, to know exactly how much power you
are using and what it costs, is the key to controlling energy bills," said
Shapard. "With advanced meters in constant communication with a home or
business, Oncor will have more information than ever before about service and
reliability. Retail electric providers will also have the tools to design
programs that fit the needs of their customers."

Also, Oncor will apply for stimulus funds to continue to expand its advanced
distribution automation program. Funds will be used to increase the deployment
of smart switches that isolate problems in neighborhoods and reconfigure power
lines to route power to restore service. The funds will also expand programs to
improve the control of feeder voltage through capacitor control, to speed
locating the problems, and to modernize the monitoring and control of major
downtown electric networks. Oncor is also proposing an upgrade to its
telecommunications network to support the full needs of a smart grid. Oncor
operates a telecommunications network today for monitoring and controlling the
power grid. Oncor plans to upgrade the existing networks to handle greater
volumes of data more quickly and securely. This action will extend the network
to support new distribution automation and metering technology.

"The definition of a smart grid varies from utility to utility, area to area.
Oncor believes that a smart grid is end-to-end interactivity. From the moment
the power enters the grid to the moment it enters the home or business,
technology is managing the flow of electricity, monitoring its progress,
checking for fluctuations, measuring its volume, and communicating information
to the electric utility and to the consumer," said Shapard. "That interactivity
and communications flow will help the nation save energy and protect the
environment just by raising awareness. But the sensitivity of new meter
technology and the availability of clean, renewable energy off-peak will be the
catalyst for many new products, such as plug-in hybrids and electric vehicles
that help the environment and spur job growth."

Overall, Oncor anticipates stimulus fund investments could create an estimated
1,600 jobs in 2010, based on data from the Council of Economic Advisers.

Oncor Electric Delivery Company LLC ("Oncor") is a regulated electric
distribution and transmission business that uses superior asset management
skills to provide reliable electricity delivery to consumers. Oncor operates the
largest distribution and transmission system in Texas, delivering power to
approximately 3 million homes and businesses and operating approximately 117,000
miles of transmission and distribution lines in Texas. While Oncor is owned by a
limited number of investors (including majority owner, Energy Future Holdings
Corp.), Oncor is managed by its Board of Directors, which is comprised of a
majority of independent directors.

Oncor Communications
Carol Peters, 972-791-6200

Copyright Business Wire 2009