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Related-Party Transactions

3 Months Ended

Mar. 31, 2022

9. RELATED-PARTY TRANSACTIONS

The following represent our significant related-party transactions.

We are not a member of another entity’s consolidated tax group, but our owners’ federal income tax returns include their portion of our results. Under the terms of a tax sharing agreement among us, Oncor Holdings, Texas Transmission and STH, we are generally obligated to make payments to our owners, pro rata in accordance with their respective membership interests, in an aggregate amount that is substantially equal to the amount of federal income taxes that we would have been required to pay if we were filing our own corporate income tax return. STH will file a combined Texas margin tax return that includes our results and our share of Texas margin tax payments, which are accounted for as income taxes and calculated as if we were filing our own return. See discussion in Note 1 to Financial Statements in our 2021 Form 10-K under “Provision in Lieu of Income Taxes.” Under the “in lieu of” tax concept, all in lieu of tax assets and tax liabilities represent amounts that will eventually be settled with our members. In the event such amounts are not paid under the tax sharing agreement, it is probable that these regulatory amounts will continue to be included in Oncor’s rate setting processes.

Amounts payable to (receivable from) members related to income taxes under the tax sharing agreement and reported on our balance sheets consisted of the following:


	At March 31, 2022						At December 31, 2021
	STH		Texas Transmission		Total		STH		Texas Transmission		Total

Federal income taxes payable (receivable)	$	10	$	3	$	13	$	(5)	$	(1)	$	(6)
Texas margin tax payable		30		-		30		24		-		24
Net payable (receivable)	$	40	$	3	$	43	$	19	$	(1)	$	18

There were no cash payments made to (received from) members related to income taxes for the three months ended March 31, 2022 and 2021.

See Note 7 for information regarding cash capital contributions from and distributions to members.

Sempra owns an indirect 50 percent interest in the parent of Sharyland. Sharyland provided wholesale transmission service to us in the amount of $2 million and $3 million in the three months ended March 31, 2022 and 2021, respectively, at rates set pursuant to PUCT-approved tariffs. Pursuant to an operation agreement between us and Sharyland that was entered into in connection with a PUCT order, we provide Sharyland with substation monitoring and switching services. These services totaled less than $1 million in each of the three months ended March 31, 2022 and 2021.