Sempra is a San Diego-based holding company organized around three regulated or infrastructure-heavy businesses: Sempra California (which owns San Diego Gas & Electric and Southern California Gas Company), Sempra Texas (which controls approximately 80% of Oncor Electric Delivery, the largest electric utility in Texas), and Sempra Infrastructure (which develops and operates LNG export facilities in the Gulf Coast and on the Pacific coast of Mexico). CEO Jeff Martin has led the company since 2018. The three segments look nothing alike in terms of geography, regulatory regime, or risk profile — California gas and electric distribution, Texas transmission and distribution inside ERCOT, and international LNG development are each operating under fundamentally different economics. That diversity is both the company's appeal and its analytical challenge.
The California utilities are fully regulated by the CPUC and are subject to the same fire liability environment that has defined the investment cases of PG&E and Edison International. But Sempra's California exposure is concentrated in SDG&E, which has a dramatically smaller service territory than its northern and central California peers, and which has spent nearly two decades hardening its infrastructure following the 2007 wildfires. SoCalGas, the nation's largest natural gas distribution utility, faces a different long-term question: California's climate policy intends to phase out natural gas in buildings, which, if fully executed, would put sustained pressure on the volume basis of a large capital-intensive system.
Sempra Texas is the company's most visible growth story. Oncor is adding load faster than any major U.S. utility, driven by data center buildout, industrial expansion in the Permian Basin, and population growth across the Dallas-Fort Worth metroplex and other Texas cities. The $36.1 billion five-year capital plan Oncor is executing is one of the largest in the country on a per-system basis, and ERCOT's forecasts for peak load growth suggest the spending will need to continue for years beyond 2030. Unlike the California utilities, Oncor carries no wildfire exposure and operates under PUCT and FERC jurisdiction rather than the CPUC.
SDG&E delivers electricity and natural gas to approximately 3.7 million people across San Diego County and the southern portion of Orange County, a 4,100-square-mile territory with about 4,400 employees. At first look the company seems small relative to PG&E's 5.2 million electric customers across 70,000 square miles or SCE's 5 million across 50,000. The important difference is geography: SDG&E serves a compact, densely populated coastal and inland region. That density makes undergrounding economically tractable in a way it is not for the sprawling footprints of the two northern utilities.
The December 2024 CPUC General Rate Case decision set SDG&E's Test Year 2024 base revenue requirement at $2.699 billion ($2.192 billion electric, $506 million gas), with annual increases to $3.086 billion by 2027. More than 1 million SDG&E customers have migrated to Community Choice Aggregators for electricity commodity procurement — SDG&E continues to handle transmission and distribution for those customers but no longer procures their power supply, which reduces SDG&E's revenue base but also reduces its commodity risk exposure.
San Diego has among the most expensive residential electricity rates in the continental United States, with average rates frequently above 35 cents per kilowatt-hour. The high rates reflect the combination of SDG&E's infrastructure investment recovery, California's RPS compliance costs, and the relatively small customer base across which those costs are spread.
SoCalGas is the largest natural gas distribution utility in the western United States, with approximately 5.8 million meters serving about 21 million people across a 24,000-square-mile service territory in Southern California. The gas system includes over 100,000 miles of distribution and transmission pipelines and more than 50 underground storage fields. It is regulated by the CPUC and earns a regulated return on its infrastructure base.
The most consequential event in SoCalGas's recent history was the Aliso Canyon natural gas storage leak that began on October 23, 2015, at the company's storage facility near the Porter Ranch neighborhood in Los Angeles. The leak took nearly four months to permanently seal and released approximately 100,000 metric tons of methane, making it one of the largest natural gas leaks in U.S. history. More than 8,000 households were temporarily relocated from Porter Ranch. SoCalGas settled related claims for approximately $1.8 billion in 2021, covering the Los Angeles City Attorney, LA County, and private plaintiffs. The Aliso Canyon facility remains important to the reliability of the Southern California gas system; regulatory restrictions on its use have periodically created supply stress during winter peak demand periods.
California's decarbonization policy is the long-run question for SoCalGas. The state has targeted building electrification as a priority and has sought to discourage new natural gas connections in residential and commercial buildings. Several California cities attempted to ban gas appliances in new construction, though the Ninth Circuit ruled in 2023 that Berkeley's gas ban was preempted by federal law, complicating local mandates. The utility's long-term volume thesis depends on the pace of electrification, which has been slower than regulatory ambitions, and on the development of renewable natural gas and hydrogen blending programs that could reuse the existing pipeline infrastructure.
Oncor is the largest electric transmission and distribution utility in Texas, serving approximately 10 million premises — residences and businesses — across 400 counties through 80,200 distribution circuit miles and 17,600 transmission line miles. Sempra owns approximately 80% of Oncor; the remainder is held through Texas Transmission Holdings. Oncor operates entirely within ERCOT's deregulated market structure, which separates transmission and distribution (Oncor's business) from generation and retail (which competitive providers handle). Oncor earns regulated returns on its T&D infrastructure under PUCT oversight.
Load growth at Oncor has no peer among large U.S. utilities. The utility added approximately 16,000 to 19,000 premises per quarter through 2024 and 2025 and invested $4.5 billion in capital during just the first half of 2025. The $36.1 billion five-year capital plan is designed to accommodate ERCOT's load forecasts, which include the Permian Basin Reliability Plan — a $13 billion-plus investment approved by the PUCT in September 2024 to serve Permian Basin peak load the grid operator projects will quadruple to 26.4 GW by 2038. Oncor filed a base rate review application in June 2025, requesting a 10.55% return on equity (versus the 9.7% currently authorized) with a hearing set for November 2025.
Sempra Infrastructure holds the company's LNG export and midstream assets. Cameron LNG in Louisiana operates three liquefaction trains with Phase 1 capacity of approximately 13.5 million tonnes per year; Phase 2 development, which would add a fourth electric-drive train, has received DOE and FERC authorizations but has not reached a final investment decision. Energía Costa Azul (ECA) LNG, located on the Pacific coast of Baja California in Ensenada, Mexico, achieved mechanical completion in December 2025 and is expected to ship its first LNG cargoes in spring 2026, with commercial operations targeted for summer 2026. Port Arthur LNG Phase 1 is a larger Gulf Coast export development with Saudi Aramco as a co-developer and offtaker; Phase 2 was progressing toward development milestones, with Sempra expecting Phase 2 timelines to advance beyond Cameron Phase 2 in priority.
Sempra has been monetizing the Infrastructure portfolio through a capital recycling program. In September 2025, Sempra LNG signed a definitive agreement to sell a 45% stake in SI Partners — the holding entity for Sempra Infrastructure — to KKR for approximately $9.99 billion. The transaction is expected to close in the second or third quarter of 2026. Sempra also launched a process to sell Ecogas México, a gas distribution business in Chihuahua. The KKR transaction, if completed, would generate significant proceeds to fund the $65 billion utility capital plan without requiring proportional equity issuance from existing shareholders.
SDG&E was the first California investor-owned utility to face the modern wildfire liability framework, and the 2007 fires shaped a response that distinguishes it from both PG&E and SCE. In October 2007, a severe Santa Ana wind event drove a complex of fires across San Diego County, including the Witch Creek Fire near Santa Ysabel (198,000 acres), the Guejito Fire, and the Rice Canyon Fire. State investigators concluded that high-voltage SDG&E power lines produced electrical arcing that ignited the Witch Creek Fire. SDG&E ultimately paid approximately $686 million in settlements to insurance companies covering homeowners who suffered losses, with total claims estimated approaching $900 million, against which SDG&E also absorbed uninsured legal costs.
The CPUC's response to SDG&E's post-fire recovery request set an important precedent. SDG&E sought to pass approximately $379 million in unrecovered wildfire costs to ratepayers; the CPUC denied the request, finding that SDG&E had not met the prudent utility standard required to justify ratepayer recovery. The loss hit Sempra's shareholders directly at a time before the AB 1054 wildfire fund existed. That outcome made the case for aggressive preventive investment clearer inside the company than at any California utility: the next fire would also go to shareholders if the CPUC found inadequate precautions.
SDG&E's response, sustained over nearly two decades, is now the most extensive infrastructure hardening program among the three large California investor-owned utilities relative to its system size. The company has undergrounded more than 60% of its overhead power lines across the 4,100-square-mile territory, compared to roughly 0.7% for PG&E's much larger distribution system. The underground share of SDG&E's system as of mid-2025 was approximately 10,558 miles of underground power systems against 6,527 miles of overhead systems. SDG&E has replaced 34,000 wood poles with fire-resistant steel poles in its backcountry communities and throughout the service territory since 2007. The company deployed more than 100 wildfire-monitoring cameras across its territory, established the first utility Fire Science and Climate Adaptation Department in the country (with six full-time meteorologists), and was the first California utility to implement a Public Safety Power Shutoff program following the 2007 fires, years before PSPS became standard practice at PG&E and SCE.
AB 1054, the 2019 California wildfire insurance fund legislation, was partly structured around the SDG&E experience. SDG&E contributed approximately $324 million to the fund at its creation. The fund provides a financial backstop for future wildfire claims across all three California IOUs, conditioning coverage on the utility maintaining a valid CPUC safety certification and demonstrating prudent operations. For SDG&E, the combination of the AB 1054 fund and its own unusually hardened infrastructure puts its wildfire liability profile on substantially different footing than it was in 2007, or than PG&E's and SCE's today, though no fixed investment eliminates ignition risk entirely in a service territory that regularly sees sustained Santa Ana winds above 60 miles per hour.
Sempra reported FY2025 adjusted earnings of $3.07 billion, or $4.69 per diluted share, up from $2.97 billion ($4.65 per share) in FY2024. On a GAAP basis, FY2025 earnings were $1.80 billion ($2.75 per share), well below adjusted earnings; the gap reflects a $471 million after-tax charge SDG&E took in Q4 2025 related to a CPUC proposed decision on wildfire cost recovery for the 2019 through 2024 period. FY2024 GAAP earnings had been $2.82 billion ($4.42 per share). Consolidated revenue was approximately $13.2 billion in FY2024, down from prior years following the sale of certain non-utility assets.
For 2026, Sempra guided to adjusted EPS of $4.80 to $5.30. The company also issued 2027 guidance of $5.10 to $5.70 and 2030 guidance of $6.70 to $7.50, implying a 7% to 9% compound annual growth rate from 2025 through 2029. The $65 billion 2026-2030 capital plan is projected to grow the consolidated rate base from approximately $57 billion in 2025 to $97 billion by 2030 — a 70% increase over five years. Oncor contributes the largest share of that growth, executing a $36.1 billion five-year plan against the backdrop of Texas load demand that has surprised even optimistic forecasters.
The $65 billion capital program concentrates Sempra's investment in two high-conviction areas: Texas transmission and distribution through Oncor, and California utility infrastructure at SDG&E and SoCalGas. More than 95% of projected capital is directed at regulated utility operations, which makes the earnings trajectory primarily a function of PUCT and CPUC rate base approvals rather than commodity markets or project financing. The KKR transaction for 45% of Sempra Infrastructure is designed to recycle the capital embedded in LNG assets back into the utility program while retaining upside from the operating projects, particularly ECA LNG and any future Phase 2 expansion at Cameron or Port Arthur.
At SDG&E, the capital program continues to extend undergrounding, replace aging overhead infrastructure, and fund the wildfire monitoring and response systems built up since 2007. The CPUC's December 2024 GRC decision authorized $154.5 million per year for undergrounding and system hardening — less than the $1.9 billion over four years SDG&E had requested for a faster 605-mile program, but enough to continue roughly 35 miles of undergrounding per year alongside 100 miles of covered conductor installation annually. At SoCalGas, investment is concentrated in pipeline safety, integrity management, and renewable natural gas programs intended to demonstrate that gas distribution infrastructure can remain relevant in a decarbonizing California. At Oncor, the capital priorities are transmission upgrades to serve the Permian Basin, distribution expansion for new premises, and substation investment for data center load.
SDG&E's wildfire liability profile is materially better than SCE's or PG&E's — smaller territory, higher percentage of undergrounded lines, more monitoring infrastructure, and a longer post-2007 track record of proactive mitigation. That said, the CPUC's Q4 2025 proposed decision imposing a $471 million after-tax charge on SDG&E for 2019 to 2024 wildfire cost recovery is a reminder that the regulator's standard for ratepayer recovery is strict, and that even a well-invested utility can face disallowances. SDG&E's high electricity rates create political and competitive pressure: Community Choice Aggregators have already drawn more than 1 million customers away from SDG&E for power procurement, and the regulatory pressure to reduce customer bills constrains SDG&E's ability to pass through infrastructure costs without challenge.
SoCalGas faces a structural question with no clean near-term resolution. The utility has hundreds of thousands of miles of gas distribution infrastructure built to serve a customer base that California policy intends to shift toward electricity. The pace of that transition has been slow — building electrification is expensive for customers, and court decisions on appliance bans have complicated state and local mandates — but the direction is clear. If SoCalGas's throughput declines materially over the next decade, the fixed costs of the distribution system would be spread across a shrinking customer base, creating upward rate pressure that could accelerate further departures. Sempra's investment in renewable natural gas and hydrogen blending is a real hedge against full demand erosion, but neither technology is at the scale necessary to substitute for conventional gas distribution volumes in the foreseeable future. The Oncor PUCT rate case filed in June 2025 is the most consequential near-term regulatory event: the request for a higher authorized ROE (10.55% versus 9.7%) and higher equity layer (45% versus 42.5%) would, if granted, meaningfully improve Oncor's allowed earnings on its rapidly growing rate base.
This profile was compiled from publicly available information including:
Sempra Investor Relations — Earnings releases, SEC filings (10-K, 10-Q), capital plan presentations, and guidance disclosures.
San Diego Gas & Electric — Service territory, wildfire mitigation program details, and infrastructure data.
FY2024 and FY2025 Annual Reports (Form 10-K), FY2025 Year-End Earnings Report (February 2026), Oncor Electric Delivery SEC filings (Form 8-K Q3 and Q4 2025), December 2024 CPUC GRC Decision (D.24-12-074), AB 1054 Wildfire Fund filings, KKR-SI Partners transaction announcement (September 2025), NRC and DOE filings for Cameron LNG and ECA LNG.
This profile is for informational purposes only and does not constitute investment advice, a recommendation, or a solicitation to buy or sell any security.