Sempra stock: Texas growth meets a $188 million California risk

Sempra's earnings outlook now combines stronger Texas investment prospects with a quantified California regulatory risk. Utility Dive reported on November 6 that the company is seeking 188 million US dollars of additional revenue for its California utilities in 2027 after a proposed California Public Utilities Commission decision.

Sempra stock traded at 70.53 euros on Lang & Schwarz at 17:05 CET on Monday, November 9, 2026.

Texas investment case expands

Oncor's five-year base capital plan, currently 47.5 billion US dollars, is expected to increase by 20 percent in the next annual update. Utility Dive said the increase reflects continued customer and load growth across the Texas system, including data centers and other economic activity.

Oncor also reached a record peak demand of 33.3 gigawatts, according to the report. For Sempra, the planned increase supports a larger regulated utility investment pipeline and strengthens the importance of Texas to future earnings growth.

California creates a 2027 hurdle

The California utilities are seeking to collect 188 million US dollars in 2027 tied to a rate-case calculation that Sempra says was handled incorrectly. Chief Financial Officer Karen Sedgwick described the matter as a one-year issue because a new general rate case is scheduled to set rates from January 2028.

The proposed decision is not final, and Sempra plans to pursue regulatory remedies. The issue nevertheless adds uncertainty to the lower end of the company's 2027 earnings outlook, while wildfire-liability concerns remain a broader risk for its California operations.

Capital recycling remains in focus

Sempra's planned sale of a 45 percent interest in Sempra Infrastructure Partners to affiliates of KKR remains another important milestone. The transaction is intended to support capital recycling and balance-sheet management, with completion expected in November.

For investors, the setup is mixed: Texas demand is expanding the long-term infrastructure opportunity, while California regulation could weigh on near-term 2027 earnings visibility. The next catalyst is progress on the KKR closing and the eventual California regulatory resolution.

US utility stocks remain sensitive to interest rates, electricity demand and regulatory policy; see current S&P 500 market reports.

More news and analyses on Sempra stock are available on the company topic page.

Source: Utility Dive.