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Sempra Energy Benefits from New Texas Utility Law

Story Highlights
  • Texas House Bill 5247 introduces a ‘unified tracker mechanism’ for annual rate adjustments.
  • Oncor’s use of UTM is expected to enhance earnings and align with Sempra’s EPS guidance.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
Sempra Energy Benefits from New Texas Utility Law

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Sempra Energy ( (SRE) ) just unveiled an update.

On June 20, 2025, Texas House Bill 5247 was signed into law, establishing a ‘unified tracker mechanism’ (UTM) for electric utilities in Texas. This mechanism allows qualifying utilities to apply for interim rate adjustments annually for transmission and distribution (T&D) capital expenditures, potentially reducing regulatory lag. Oncor, a subsidiary of Sempra, expects to use this method to improve its earnings, cash flows, and credit metrics, with anticipated improvements in annual returns on equity by 50 to 100 basis points. The impact on Sempra’s earnings per share is expected to align with previously announced guidance for 2025 and 2026.

The most recent analyst rating on (SRE) stock is a Buy with a $85.00 price target. To see the full list of analyst forecasts on Sempra Energy stock, see the SRE Stock Forecast page.

Spark’s Take on SRE Stock

According to Spark, TipRanks’ AI Analyst, SRE is a Outperform.

Sempra Energy’s overall stock score reflects strong financial performance with robust profitability and strategic initiatives driving EPS growth. However, high leverage, cash flow challenges, and regulatory hurdles present risks. Recent corporate events and fair valuation provide additional support.

To see Spark’s full report on SRE stock, click here.

More about Sempra Energy

Sempra Energy is a company with a significant interest in the electric utility sector, primarily through its 80.25% ownership of Oncor Electric Delivery Company LLC. Oncor operates within the Electric Reliability Council of Texas (ERCOT) market and is responsible for constructing transmission infrastructure as part of ERCOT’s Permian Basin Reliability Plan.

Average Trading Volume: 4,268,412

Technical Sentiment Signal: Buy

Current Market Cap: $48.3B

For a thorough assessment of SRE stock, go to TipRanks’ Stock Analysis page.

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