Sempra
04/17/2026 | Press release | Distributed by Public on 04/17/2026 14:18
Regulation FD Disclosure (Form 8-K)
Item 7.01 Regulation FD Disclosure.
Introductory Note
In June 2025, Oncor Electric Delivery Company LLC ("Oncor"), in which Sempra owns an 80.25% interest, filed a request for a comprehensive base rate review with the Public Utility Commission of Texas ("PUCT") and the 210 cities in its service territory that have retained original jurisdiction over rates. The PUCT docket number is 58306. In January 2026, Oncor filed a stipulation in the comprehensive base rate review proceeding requesting PUCT approval of an unopposed, comprehensive settlement among the parties to the proceeding.
Comprehensive Base Rate Review Final Order
On April 17, 2026, the PUCT approved a final order in Oncor's comprehensive base rate review proceeding. The order approves the terms of the settlement and provides for an annual revenue requirement of approximately $6.97 billion, an increase of approximately $560 million, or 8.7%, over Oncor's adjusted annualized revenues as provided in the rate application. The order also provides for a revised regulatory capital structure ratio of 56.5% debt to 43.5% equity, authorized return on equity of 9.75%, and authorized cost of debt of 4.94%. This represents an improvement from Oncor's current authorized regulatory capital structure ratio of 57.5% debt to 42.5% equity, current authorized return on equity of 9.70%, and current authorized cost of debt of 4.39%.
In addition, the order provides for (i) a self-insurance reserve with an annual accrual amount in rates of $200 million for storm costs and other self-insured losses, an increase from the $122 million self-insurance reserve annual accrual amount currently recovered in rates, as well as (ii) a five-year amortization period for applicable regulatory assets and liabilities, which would not include rate case expenses, year-end 2024 deferred system resiliency plan costs, and excess accumulated deferred income taxes. Oncor expects the order to result in positive impacts to its future earnings, cash flow, and credit metrics.
Oncor is permitted to surcharge the difference between the new billing rates and Oncor's current rates for the period from January 1, 2026 through the effective date of the new rates, which will be 45 days from the date of the final order. The surcharge will be made through a separate filing and recovered during 2026. Oncor expects to make that filing shortly after the date the new billing rates are effective.
The information furnished in this Item 7.01 shall not be deemed to be "filed" for purposes of the Securities Exchange Act of 1934, nor shall it be deemed to be incorporated by reference in any filing of Sempra, whether made before or after the date hereof, regardless of any general incorporation language in such filing.
Sempra published this content on April 17, 2026, and is solely responsible for the information contained herein. Distributed via EDGAR on April 17, 2026 at 20:19 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]