Company: SREA
Filing Date: 2025-09-19
Form Type: 8-K
Source: 0001032208-25-000051
Chunk: 1

Company: SEMPRA
Filing Date: 2025-09-19
Form: 8-K
Item: Item 8.01
Chunk 1
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b) a participating electric IOU notifies the Wildfire Fund’s administrator that it anticipates more than $1 billion in eligible claims in a single coverage year for one or more wildfires that ignite after the effective date of the 2025 Wildfire Legislation. SDG& E intends to participate in the Continuation Account and submit its notice of such election to the CPUC by the 15-day deadline.

Assuming the Continuation Account becomes operative, it would be capitalized with a combination of ratepayer and electric IOU shareholder contributions. Ratepayer contributions totaling $9 billion would be financed through new bonds to be issued by the California Department of Water Resources and secured by the extension of an existing Wildfire Fund-related non-bypassable ratepayer charge from 2036-2045, subject to a determination by the CPUC that the extension is just and reasonable. Electric IOU shareholder contributions totaling $5.1 billion would be obtained through fixed annual contributions of $300 million from 2029 through 2045, plus an additional $3.9 billion in contingent shareholder contributions payable in annual installments of $780 million if the Wildfire Fund’s administrator determines there is additional need, subject to a potential ratepayer credit of 50% of the amount of any remaining contingent contribution installments if the Wildfire Fund’s administrator terminates the Continuation Account prior to their collection. SDG& E’s proportionate share of the aggregate shareholder contribution amount through 2045 is expected to be $387 million, comprising (i) $219.3 million of fixed contributions of $12.9 million annually for 17 years and (ii) $167.7 million of contingent contributions of $33.5 million annually for five years.

As further described below, the Continuation Account may receive reimbursement from electric IOU shareholder contributions for amounts paid to cover participating electric IOU wildfire claims, depending on the outcome of a reasonableness review by the CPUC conducted under the prudency standards established by the 2019 Wildfire Legislation.

The funds in the Continuation Account may not be applied to claims arising from wildfires that ignited before the effective date of the 2025 Wildfire Legislation. In addition, as with the Wildfire Fund, only claims in excess of the greater of $1 billion or the amount of insurance coverage required by the Wildfire Fund’s administrator are eligible for reimbursement from the Continuation Account.

▪ Wildfire Mitigation Capital Investment - As with the 2019 Wildfire Legislation, participating electric IOUs are not permitted to