Sempra stock weighs Texas growth against $188 million California risk
Published on 11/10/2026 at 14:08 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWSTexas Expansion Meets California Risk
- Oncor expects strong load growth across Texas to support a larger regulated infrastructure investment pipeline.
- Sempra is pursuing regulatory remedies after a proposed California decision that could push 2027 segment earnings toward the lower end of guidance.
- The company expects to finalize Oncor's updated capital plan with its fourth-quarter results in February.
Sempra is balancing a stronger Texas investment case against a regulatory setback in California. Utility Dive reported on Friday, November 6, that Oncor expects its five-year base capital plan to increase by 20% from 47.5 billion US dollars, while Sempra is seeking to recover 188 million US dollars of revenue for its California utilities in 2027.
Utility Dive said the proposed California Public Utilities Commission decision denied Sempra's request to correct part of a 2024 general rate case calculation. The decision is not final, and management plans to pursue available regulatory avenues.
Texas Demand Supports Capital Growth
Oncor, in which Sempra holds an 80.25% interest, serves more than 14 million customers in Texas. Its system reached a record peak demand of 33.3 gigawatts in August, 6% above the previous record, according to Utility Dive.
Management linked the increase in expected spending to broad customer and load growth across the state. Data centers are a major contributor, but Sempra also pointed to meaningful demand from other sectors. The larger plan strengthens the long-term regulated utility investment case, although execution, permitting and financing will remain important for returns.
California Clouds 2027 Earnings
The California issue is concentrated in 2027 under the current regulatory timetable. Chief Financial Officer Karen Sedgwick said new general rate case rates are expected to begin in January 2028, so the disputed mechanism should not carry forward beyond that period.
Chief Executive Officer Jeffrey Martin said the proposed decision reflects what Sempra considers an error in accounting for post-test-year capital investment. If the company does not obtain a correction, Sempra California's earnings would move toward the lower end of its guidance range unless other measures offset the impact. The regulatory outcome therefore matters more for near-term earnings visibility than for the broader Texas expansion thesis.
Sempra stock traded at 71.07 euros on Lang & Schwarz at 14:03 CET on Tuesday, November 10, 2026.
Sempra at a Glance
- Company: Sempra
- ISIN: US8168511090
- Lang & Schwarz quote: 71.07 euros at 14:03 CET on Tuesday, November 10, 2026
US utility investors are also weighing the outlook for the S&P 500 as infrastructure spending and power demand shape the sector.
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