Company: SREA
Filing Date: 2025-09-19
Form Type: 8-K
Source: 0001032208-25-000051
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Company: SEMPRA
Filing Date: 2025-09-19
Form: 8-K
Item: Item 8.01
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Item 8.01 Other Events.

On September 19, 2025, California Senate Bill (“ SB”) 254 (the “2025 Wildfire Legislation”) became effective upon signature by the Governor of California. Among other things, the 2025 Wildfire Legislation establishes the Wildfire Fund Continuation Account (the “ Continuation Account”), which is designed to provide additional liquidity to reimburse catastrophic wildfire-related claims incurred by large California electric investor-owned utilities (“ IOUs”), including San Diego Gas & Electric Company (“ SDG& E”), a subsidiary of Sempra, if the existing fund established pursuant to Assembly Bill (“ AB”) 1054 (the “ Wildfire Fund”) is depleted. IOUs that only distribute gas such as Southern California Gas Company, another subsidiary of Sempra, are not eligible to participate in the Wildfire Fund or the Continuation Account.

The 2025 Wildfire Legislation preserves key elements of AB 1054 and its companion bill AB 111 (collectively, the “2019 Wildfire Legislation”), including cost recovery standards and requirements, a cap on liability in the event of a finding of imprudence by the California Public Utilities Commission (“ CPUC”), and continued access to wildfire claims liquidity through the new Continuation Account. These aspects of the 2019 Wildfire Legislation are described under “ Wildfire Fund” inNote 1 of the Notes to Consolidated Financial Statements in Sempra’s and SDG& E’s jointly filed 2024Annual Report on Form 10-K, which description is incorporated herein by reference and modified with respect to the 2025 Wildfire Legislation and Continuation Account, as applicable, by the descriptions in this Current Report on Form 8-K. Key elements of the 2025 Wildfire Legislation, including those that build upon or otherwise differ from the 2019 Wildfire Legislation, include, among others:

▪ Establishment of the Continuation Account - The 2025 Wildfire Legislation establishes the Continuation Account, a new state-administered account with up to $18 billion of additional liquidity for the Wildfire Fund. The Continuation Account will become operative if (i) within 15 days after the effective date of the 2025 Wildfire Legislation (or by October 4, 2025), all of California’s large electric IOUs elect to participate in the account, and (ii) prior to December 31, 2028, either (a) the Wildfire Fund’s administrator projects that the original Wildfire Fund will be depleted, or (