Company: SREA
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001032208-25-000065
Chunk: 386

Company: SEMPRA
Filing Date: 2025-11-05
Form: 10-Q
Item: Item 8
Chunk 386
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 is submitted, the utility can place the requested rates into effect on a temporary basis and refund or credit against future customer bills any difference between such temporary rates and the final approved rates.

Oncor expects to make its first comprehensive UTM filing in the first half of 2026 with a view toward recovering the costs associated with eligible transmission and distribution investments that were placed into service after December 31, 2024 and that are not currently reflected in rates. Since the June 2025 effective date of the bill, Oncor has recognized revenues and corresponding regulatory assets for recoverable costs related to UTM-eligible transmission and distribution capital investments that were placed into service from January 1, 2025 through September 30, 2025, including depreciation expense, carrying costs on unrecovered balances and related taxes. Oncor expects to continue recognizing revenues and corresponding regulatory assets as UTM-eligible transmission and distribution capital investments are placed into service.

Sharyland Utilities 

On May 1, 2025, Sharyland Utilities filed its 2025 rate case using a test year based on calendar year 2024 with certain adjustments. Sharyland Utilities is seeking a revenue requirement of $55 million, which is an approximately 14% increase over adjusted test-year revenues. Sharyland Utilities is also requesting a rate of return of 7.32%, which is based on a proposed capital structure ratio of 55% debt to 45% equity; a proposed ROE of 10.75%; and a proposed long-term cost of debt of 4.52%. 

On September 16, 2025, Sharyland Utilities, the PUCT Staff and Texas Industrial Energy Consumers reached a unanimous settlement. Under the settlement, Sharyland Utilities’ total revenue requirement would be set at $53 million, with a capital structure ratio of 59% debt to 41% equity; an ROE of 9.60%; and a long-term cost of debt of 4.52%. Although the administrative law judge had prepared a draft order for the Commission’s consideration, the PUCT typically considers cases directly when they are settled unanimously, making a formal recommendation from the judge on the merits unnecessary. Sharyland Utilities continues to expect a final order in the fourth quarter of 2025, with rates, if approved, going into effect in December 2025.

Off-Balance Sheet Arrangement 

Our investment in Oncor Holdings is a variable interest in an unconsolidated entity. We discuss variable interests in Note