Company: SREA
Filing Date: 2025-11-17
Form Type: 8-K
Source: 0001032208-25-000068
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Company: SEMPRA
Filing Date: 2025-11-17
Form: 8-K
Item: Item 8.01
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Item 8.01 Other Events.

The California Public Utilities Commission (“ CPUC”) issues proposed decisions (“ PD”) from time to time on regulatory matters in advance of voting on a final decision. Such PDs are subject to public comment and must be voted on by the CPUC before a decision becomes final. The CPUC may adopt, modify, or reject PDs.

On November 14, 2025, the CPUC issued a PD in San Diego Gas & Electric Company’s (“ SDG& E”) Track 2 request in its 2024 General Rate Case (“ GRC”) and a PD in the Cost of Capital proceeding for SDG& E and Southern California Gas Company (“ SoCalGas”). SDG& E and SoCalGas are subsidiaries of Sempra.

SDG& E Track 2 Request in 2024 General Rate Case - Proposed Decision

SDG& E’s Track 2 request addresses its application for review and approval of $1,472 million in wildfire mitigation plan costs incurred from 2019 through 2022 that were incremental to amounts authorized in SDG& E’s 2019 GRC and not otherwise addressed in SDG& E’s 2024 GRC final decision.

The PD approves $1,036 million of these requested costs, including strategic undergrounding, microgrids and fire hardening in the Cleveland National Forest, among other costs. The PD approves $91 million of SDG& E’s operation and maintenance (“ O& M”) costs, denying $193 million of requested O& M costs primarily in the areas of drone assessments, stakeholder cooperation and community engagement, and enhanced vegetation management. The PD approves $945 million of capital costs, denying $242 million of capital costs primarily in the areas of drone inspections, data governance, covered conductor, communications, and aviation firefighting.

The Track 2 request also addresses SDG& E’s requested revenue requirement for the period from 2019 through 2027 for ongoing capital-related costs, including depreciation, taxes and return on rate base, for capital assets placed into service from 2019 through 2022. The PD authorizes a total Track 2 revenue requirement of $721 million for 2019 through 2027, which is $427 million lower than SDG& E’s requested revenue requirement of $1,148 million. It is important to note that, in February 2024, the CPUC authorized an interim cost recovery mechanism that permitted SDG& E to collect in rates $194 million and