regulatory
confidence high
sentiment positive
materiality 0.75
Sempra's Oncor files $560M annual rate increase settlement with Texas PUCT; ROE set at 9.75%
SEMPRA
- Oncor stipulation seeks annual revenue requirement of ~$6.975B, an 8.8% increase over present revenues.
- Aggregate annualized revenue increase of ~$560M; authorized ROE rises to 9.75% (from 9.70%) and debt cost to 4.94%.
- Capital structure revised to 56.5% debt / 43.5% equity; self-insurance reserve accrual increased to $200M/yr from $122M.
- Final PUCT order expected H1 2026; new rates backdated to Jan 1, 2026 if approved as filed.
- Sempra expects positive impacts to Oncor's future earnings, cash flow, and credit metrics.
item 7.01