Sempra's 80.25%-owned subsidiary Oncor received final regulatory approval for a comprehensive base rate review, resulting in an increased annual revenue requirement and improved authorized returns.
Key takeaways
Oncor's annual revenue requirement increased by approximately $560 million (8.7%) to $6.97 billion.
Authorized return on equity improved to 9.75% from 9.70%, and authorized cost of debt increased to 4.94% from 4.39%.
Regulatory capital structure ratio improved to 56.5% debt/43.5% equity from 57.5% debt/42.5% equity.
Self-insurance reserve annual accrual increased to $200 million from $122 million for storm costs and other losses.
Oncor expects positive impacts to future earnings, cash flow, and credit metrics from the order.
Oncor is permitted to surcharge the difference between new and current rates from January 1, 2026, through the effective date.