SEMPRA 8-K

What Happened Sempra (SREA) disclosed on Form 8-K (Regulation FD) that San Diego Gas & Electric Company (SDG&E), a Sempra subsidiary, filed an unopposed offer of settlement in its TO6 proceeding with the U.S. Federal Energy Regulatory Commission (FERC) on March 23, 2026. The TO6 proceeding sets SDG&E’s Electric Transmission Owner Formula Rate. The settlement would raise SDG&E’s authorized base return on equity (ROE) from 10.10% to 10.28% and establish a hypothetical capital structure with 54% equity; FERC approval is expected in the second half of 2026 and, if approved, would be effective retroactive to June 1, 2025.

Key Details

• SDG&E submitted its TO6 filing to FERC in October 2024; the settlement was filed March 23, 2026.
• Authorized base ROE would increase from 10.10% to 10.28%.
• Settlement establishes a hypothetical capital structure with 54% equity.
• FERC approval is expected in H2 2026; terms would be retroactive to June 1, 2025 if approved.
• Sempra says the EPS impact, if approved, is expected to fall within its previously announced 2026 and 2027 EPS guidance ranges (GAAP and/or adjusted basis).

Why It Matters This is a regulatory development that affects how SDG&E’s transmission assets are priced and how returns on those assets are calculated. A higher authorized ROE and a set equity ratio can increase the revenue SDG&E can recover through transmission rates, which in turn affects Sempra’s regulated earnings. Importantly, Sempra states the expected impact on diluted earnings per share would remain within its existing 2026–2027 guidance ranges, and any changes would be effective retroactive to June 1, 2025 if FERC approves the settlement.