SEMPRA 8-K

What Happened
Sempra announced that Oncor Electric Delivery Company LLC (in which Sempra owns an 80.25% interest) filed a stipulation on January 29, 2026 in its comprehensive base rate review with the Public Utility Commission of Texas (PUCT) and affected cities. The stipulation requests approval of an annual revenue requirement of approximately $6.975 billion — an 8.8% increase over Oncor’s adjusted annualized present revenues in the rate application — which Oncor estimates would raise revenues by about $560 million annually.

Key Details

• Oncor filed the rate stipulation on January 29, 2026 in PUCT Docket No. 58306; a final PUCT order is expected in the first half of 2026.
• Proposed regulatory capital structure: 56.5% debt / 43.5% equity (vs. current 57.5% debt / 42.5% equity).
• Authorized return on equity: 9.75% (current 9.70%); authorized cost of debt: 4.94% (current 4.39%).
• Self-insurance reserve recovered in rates would increase to $200 million annually (from $122 million).
• The stipulation includes a five-year amortization period for applicable regulatory assets/liabilities (with certain exclusions). If approved, new rates would be implemented after the final order and Oncor would surcharge the difference back to January 1, 2026 per a prior interim-rates settlement.

Why It Matters
If the PUCT approves the stipulation as filed, Oncor expects positive effects on future earnings, cash flow and credit metrics — outcomes that could also influence Sempra’s consolidated results because Sempra owns an 80.25% interest in Oncor. Timing and outcome remain subject to the PUCT’s review (the commission may adopt, modify, or reject the stipulation), and the filing includes standard forward-looking statements and risk disclosures. Investors should watch for the PUCT’s final order in H1 2026 and any subsequent implementation of new billing rates or surcharges.