Sempra Subsidiaries Seek ~$8.86B in 2028 Revenue from California Regulators
Summary
Sempra's California utilities, SDG&E and SoCalGas, filed 2028 General Rate Case applications seeking approximately $8.86 billion in revenue requirements from the CPUC, which will shape their financial outlook through 2031.
Key Events
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2028 General Rate Case Applications Filed
San Diego Gas & Electric Company (SDG&E) and Southern California Gas Company (SoCalGas), Sempra subsidiaries, submitted their 2028 General Rate Case (GRC) applications to the California Public Utilities Commission (CPUC).
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Significant Revenue Requirements Requested
The applications request approximately $3.76 billion for SDG&E and $5.096 billion for SoCalGas for the 2028 test year, totaling approximately $8.86 billion.
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Long-Term Financial Impact
The requested revenue requirements also include attrition year adjustments for 2029 through 2031, which are crucial for covering operating costs and capital investments for these utilities.
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Regulatory Approval Pending
The requests are subject to CPUC approval, with a proposed decision anticipated by the end of 2027 and new rates effective January 2028. The final decision may differ materially from the requests.
Analysis
Sempra's California utility subsidiaries, San Diego Gas & Electric Company (SDG&E) and Southern California Gas Company (SoCalGas), have filed their 2028 General Rate Case applications with the California Public Utilities Commission (CPUC). These applications request significant revenue requirements totaling approximately $8.86 billion for 2028, with additional attrition year adjustments through 2031. The outcome of these applications is critical for the utilities' ability to recover operating costs, fund capital investments, and earn their authorized rates of return, directly impacting Sempra's future earnings and financial stability. The CPUC's decision, expected by late 2027, will set the financial framework for these key subsidiaries for several years.
At the time of this filing, SRE was trading at $91.93 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $60.1B. The 52-week trading range was $73.06 to $101.04. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.