SEMPRA 8-K

What Happened
On April 17, 2026 Sempra (via Form 8‑K, Item 7.01) disclosed that the Public Utility Commission of Texas (PUCT) approved a final order in Oncor’s comprehensive base rate review (PUCT Docket No. 58306). Sempra owns an 80.25% interest in Oncor. The order adopts a settlement that sets Oncor’s annual revenue requirement at approximately $6.97 billion—an increase of about $560 million, or 8.7%, over the adjusted annualized revenues in the rate application. The filing notes Oncor originally filed the rate case in June 2025 and submitted a stipulation in January 2026.

Key Details

• Annual revenue requirement approved: ≈ $6.97 billion (increase ≈ $560 million, +8.7%).
• Regulatory metrics: capital structure 56.5% debt / 43.5% equity; authorized ROE 9.75% (up from 9.70%); authorized cost of debt 4.94% (vs. 4.39% previously).
• Self-insurance reserve: annual accrual recovered in rates increased to $200 million (from $122 million).
• Amortization and surcharge: five‑year amortization for applicable regulatory assets/liabilities (with specific exclusions); Oncor may surcharge the difference between new and prior billing rates for Jan 1, 2026 through the effective date (effective date = 45 days after the final order) and expects to recover the surcharge during 2026.

Why It Matters
The PUCT order increases Oncor’s allowed revenue and adjusts key regulatory metrics, which Sempra says should positively affect Oncor’s (and therefore Sempra’s consolidated) future earnings, cash flow, and credit measures. The near‑term surcharge mechanism means Oncor can recover part of the increase for customers retroactive to Jan 1, 2026, improving 2026 cash collection. Investors should note this is a regulatory outcome for Oncor (80.25% owned by Sempra) rather than a direct Sempra operating change, but it is material to Sempra’s utility earnings exposure.