Company: SREA
Filing Date: 2025-11-17
Form Type: 8-K
Source: 0001032208-25-000068
Chunk: 1

Company: SEMPRA
Filing Date: 2025-11-17
Form: 8-K
Item: Item 8.01
Chunk 1
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 $96 million of this revenue requirement in 2024 and 2025, respectively. The PD authorizes SDG& E to collect the remaining $431 million from 2026 through 2028.

SDG& E and SoCalGas 2026 CPUC Cost of Capital Proceeding - Proposed Decision

The Cost of Capital PD proposes to establish the ratemaking capital structures and authorized cost of capital for SDG& E and SoCalGas, as shown in the table below, to be effective January 1, 2026 and remain in effect through December 31, 2028, subject to the cost of capital mechanism, which the PD reauthorizes to continue through 2028. The PD maintains the current authorized capital structure with an equity layer of 52% and authorizes a return on common equity that is 35 basis points lower than the current authorized return on common equity for both SDG& E and SoCalGas.

  2026 - 2028 COST OF CAPITAL PROPOSED DECISION                                                                                                              
 ─────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  SDG& E                                                                                                 SoCalGas                                            
  Authorized weighting                               Return on       Weighted                            Authorized weighting      Return on       Weighted  
  45.25                                                   4.59           2.08      Long-Term Debt        45.60                          5.02           2.29  
  2.75                                                    6.22           0.17      Preferred Equity      2.40                           6.00           0.14  
  52.00                                                   9.88           5.14      Common Equity         52.00                          9.73           5.06  
  100.00                                                                 7.39                            100.00                                        7.49  

Procedural Status

SDG& E is evaluating the Track 2 PD, and SDG& E and SoCalGas are evaluating the Cost of Capital PD. Comments on each of the PDs, by SDG& E and/or SoCalGas and intervening parties, are due December 4, 2025. Reply comments are due December 9, 2025. The earliest scheduled CPUC meeting in which either or both of the PDs could be voted on is December 18, 2025.

Forward-Looking Statements

This report contains forward-looking statements within the meaning