Sempra (SRE) 6 Nov 242024 Q3 Earnings call transcript

Good day, and welcome to Sempra's Third Quarter Earnings Call. Today's conference is being recorded. At this time, I'd like to turn it over to Glen Donovan. Please go ahead.

Good morning, and welcome to Sempra's Third Quarter 2024 Earnings Call. this under slide section. our of on are webcast website our Events live teleconference presentation and available A and Presentations

have Vice Chief Officer and our including Vice Infrastructure. of and Chief Sedgwick, several of members with Justin President senior Chief We Oncor; today, Bird, Executive Chief and Officer; Executive Officer us President, Executive Executive management Vice other Jeff and Executive Nye, Chief team Senior Chairman Financial Caroline Officer; Wall, President Executive of Officer; Karen Chief Allen Martin, members Peter of of management Sempra SDG&E; and team. Accounting Controller Winn, our Officer

results Securities recent diluted may forward-looking amounts financial statements in presentation that those to we'll common discussed Before be that meaning share shown differ statements in any discussing are Litigation XX-Q starting, cause differ projected of certain discussing be SEC. and per in today. forward-looking measures. the make Private could a the Reform on Actual XXXX. materially and our with are like XX-K I'd Act remind from results actual Earnings materially everyone factors most basis, The we'll within we the to our company's non-GAAP the filed of

the this Please call measures. for presentation accompany to slides that GAAP refer a reconciliation to

of assume contained statements to that November important the company statements or XX-Q today, not in any We mention and ended it's future. September this quarter only also forward-looking any forward-looking XXXX. update that our to XX, also the encourage for to obligation the XXXX, revise to you I'd like presentation does these X, review note of in speak

to hand and please to Jeff. turn call over With X, let that, me Slide the

expansion juncture expanded we Thank you, synergy economic needed all energy investment a to critical to the upgrade is infrastructure At you continues thank the joining the where and strengthen, Sempra, for with rising United Glen, States and electricity at modernize narrative today. growth believe for demand, us and is networks.

the infrastructure, the being placed need sources networks, at on improve extending form the diverse increased growing we confirm infrastructure mounting the resiliency Nationally, our investments of in new a weather events energy and of for to These to while extreme challenges aging grid generation trends new of finite, same resources. dispatchable energy. time face demands and

likely United will over invested to of a Consider distribution $XXX States due series to and XXXX, tailwinds. transmission that sector will have billion prove by need and that in conservative forecast

state in the world Here's that centers that the estimating an will consumes each amount Texas global in example. economy the Today, Energy Agency for consumption production require electricity and AI the and XXXX, by and highest The largest level accounts of year. the of Texas now eighth both twice is currently energy is the U.S. International nearly data of of

So Sempra. demand is It our sector. also driver flags at from thesis believe infrastructure digital is I underappreciated for investment another an growth what important

significant is queue we XXX and will of on Allen Here, a but the later high discuss in AI voltage call, of play grid generation best build, believe can come high-growth low-risk this like there's companies today's transmission. high-voltage transmission over modernize which and critical success the is to grid. in speed the at there waiting storage and factor on Oncor Texas. extend the gigawatts The

annually. the regulated America, high-voltage investments shorten made filings other only more, build Oncor's passed Oncor expected investments. new Texas being company legislature why is exactly a with this last decade transmission permitting for time the go Not into transmission rates line officially in bill than tracker That's session to transmission twice any to

higher is growth industry norms. that it's will trend than key sector with takeaway expected economic growth, and higher the EPS believe historical expansion demand reasonable So our for to

requires it economies perspective, markets record with my clear this of the outperform three, growth economic well technology sustained From capital; to large in executable advantages: disciplined scale and That's in strategy; constructive environment, outperform peer operations, number number track to two, group of and growth its number a one, and a exposure X regulation; this corporate key is in higher why allocation. environment, capital Sempra four, access positioned and to number to group. peer strong

projects, States, leading and Texas higher and own equity business scale X and returns an in in invest infrastructure providing also and energy, the our our the important that support have economies We forms cash platforms flows cleaner sheet of And balance contributing that both we utility largest capital campaign. California. the in with targeting in utilities secure United

fall Currently, to investment visibility our of improved as of we're the have one and in of opportunities. network a the portfolio process we takeaways growing planning middle early

Next, made our pleased the the await turning we financial with to the progress continue company in the results. and final I'm as quarter to third year has decision California. GRC in throughout a

of of EPS adjusted for quarter third EPS $X.XX Earlier and this adjusted morning, the we $X.XX. reported year-to-date

reminder, reflect before a As the pending GRC-proposed commission. decision, is do which results yet California these not the

impact Assuming retroactively the before will received earnings a to decision the applied final beginning be year-end, is of XXXX.

result, full XXXX EPS guidance adjusted we're XXXX our EPS affirming guidance growth long-term range projected range, As year rate. EPS and a

I who industry. which Next, in at best the developments to through to take the call Oncor, our next has I'll us to will turn Nye, turn the continue over slide. story believe Please growth Allen recent

power you, Oncor. on recent between demand XX% approximately load ERCOT XXXX XXXX peak energy X% Thank customers; gigawatts. in to through EIA's the grow I'm Jeff. short-term from record forecasts XXXX Texas opportunities with, the share and by latest remarkable XX longer To we ERCOT across start growth term, outlook at excited expects have to of demand update all growth and another

count the in T&D Moving C&I received third operational a approximately Oncor XX% achievements. over upgraded XX,XXX miles requests. XXX quarter, In large increase to by built, lines, rebuilt premise our or increased new our POI of and

to see year, growing a of opportunities. continue the X-year new announced we Turning $XX earlier billion to plan investment we that capital portfolio this

or system in As you'll settlement and our reached resiliency plan this year earlier unopposed an recall, we filed August. SRP, inaugural

We open the before current to settlement nearly SRP PUCT, of XX. through plan approved at with incurring them capital expect a our the spend the we million XXXX the If over by at with regulatory is the majority PUCT XXXX. our $X the that and will $XXX of expense November on Oncor's year. to of expenditures occur calendar billion of incremental expect end the weeks total continue and the to advance to We SRP capital designed their of to ago, meeting a but O&M incremental as its plan. reminder, of risk spending couple consideration SRP start years filing and process, reduce we to the in meeting the continue to discussed investment their

leading and others. program to Texas in a developed Forest SDG&E, leverage We've and insights expertise Texas mitigation the of also and among the state the Service gained wildfire continue from

opportunities comes addition large territory. throughout interest new customers, investment are driven SRP, large from The spanning customers to the increase being connect in multiple, C&I and In looking interconnection to service Oncor to diverse system. located C&I commitments by continued Oncor industries

the alignment cycle projects, our fall X-year assess We plan announcing fourth are on quarter we'll future and with currently to Sempra new call. be our capital capital in planning executing

forward new capital we're to plus within XX% between ongoing anticipated X-year Texas plan customer our significant and current transmission plan. economic XX% significant anywhere ERCOT, a Given capital in from expecting our increase growth, expansion of roll in

customers. couldn't Texas, regulatory our improve to remain critical more In expand And supports team, for opportunities energy framework new excited our be robust, management and our and resiliency support growth across growing and reliability the we system the our to investments of customers. grid needs our

turn next Please slide. to the

Next, service another growth like and major your to Oncor's over impacting term. I'd territory the positively both attention long intermediate turn to tailwind anticipated

of in XXXX projects annual to from in This impressive the to nation. Basin XX.X the XXXX compound Permian an region the some again demand the level that in growth of nearly XX%, quadruple represents once X.X has strongest ERCOT proving growth of the prospects Today, actual growth gigawatts. gigawatts

which Permian commission voltage PUCT irrespective fall, $X the import local level approved eventually all billion ERCOT's projects paths. to totaling the common Basin of the the will needed for Reliability immediately that Plan, permits early approve commence In approximately

portion Permian new the We expect operations preliminary recommendations. of current opportunities, our significant to ERCOT's given capture Oncor and in a investment Basin the capital

PUCT, will standing approximately not We'll filing Oncor. of assignments as XXX law. for and year. preparation days for be necessary be necessity in take Texas the begun by continue already and we're XXXX, assigned transmission we've to are throughout work certificates and we'll still Project convenience those approved to early be the make-ready under the projects the expected to projects expected These proceedings beginning the necessary

projects service territory. of all completed terms Basin need Permian calls most by that to for projects, at with the the XXXX. import least including in total pathway of in $XX investment XXXX, full the time provides Permian The the In a billion line, plan the plan projects by local of be

billion Permian or options another plan the expected kV local levels. at make to a of and kV Specifically, kV $X or or PUCT decision XXX XXX $X final billion XXX proposes XXX The either by transmission is more CapEx projects voltage on kV for May import XXXX.

note number high approvals. implemented, voltage EHV But Oncor to preliminary it slide. Please has important being current statewide preliminary plan statewide provided also vision customary stage, a the significant that due of is subject extra to turn term, expects is At Oncor. of next these ERCOT owned by remains it or and projects obtaining regulatory endpoints construct finalized grid. the the a to a to to number is and of assuming initiative Longer modern, this EHV the

state transmission load improved These increase sources of the serving major lines projects, to taken resiliency. together, and when capability add would connect overall system across electric generation, new

lines the Texas, connections planned Rio As Grande as Texas as connections Phase and currently Central Phase X Panhandle whereas would X XXX kV envisioned, and Valley. include the would include initiative Permian well EHV in in Eastern the of

Now next walk at Sempra, please Infrastructure. California through Karen turn updates to Sempra and will business slide where the

provide proposed XX.X% XX.X% SDG&E month. XXXX to SoCalGas. Thank decision increases received you, and background in like decision To last in the the first cases start, rate Allen. we general for revenue the on some our I'd proposed by for requirement

natural of PD gas management needed PD selective our rate particularly and for authorized system are, in to billion impact that Examples recommends of electrical distribution areas work, efforts. $XX.X XXXX additional and for There the our base wildfire support undergrounding billion mitigation to of manage critical base. require the that integrity for however, SDG&E rate system our system ability Moving The aspects $X.X to include of safely. SoCalGas. investments

important On the you'll growth our are broad a of of range recall that the topics to our business. that positive side, addresses GRC

decision proposed in because important completion. is they were also available but For will process infrastructure capital for the as changes the decision are placed issued. a be reminder, base Also certain attrition the rates certain considered not included that to technology and final be PD before makes upon example, projects year percentages, in a allows that adopted a

of X, all regulatory oral and that's November matter engaged SDG&E arguments, beneficial to On a in heard working and for CPUC collaboratively reaching public. records outcome which the open experts towards are the the are SoCalGas' the final subject process stakeholders.

also future the onetime CCM for Phase quarter, our triggers the decision which adjustment and During lowers XX%. authorized basis XX capital of of negative modification the cost proceeding, percentage Utilities XXXX. received X reduces for This in rate a on has the formula a ROEs final to by points California impact

subsequent off-cycle here lining of in we reductions now ourselves in, rate environment, declining the The in the one the such silver in ROE limits as years. find interest is magnitude that

For capital year. planning application in cost note file for to like we our purposes, that XXXX years to of March next XXXX the also expect I'd of to

where rate submitted authorized formulaic the XX, XX.XX%. This updated to SDG&E Turning Commission, case to new October constructive Regulatory and our a we for in the filing a Energy TOX made Federal improvement We reflects the consists ROE of look working process proposal achieve XX.XX% a market we and current through adder. a plus basis a conditions of point to regulatory the ROE forward productive XX result. to base this believe on

gigawatts X seen reflects to to from new the electrification has electric EV country economy. system, peak XXX,XXX growth, September. service of growing record one share penetration at that SDG&E and California, connected Additionally, Southern hitting territory highest EVs we're Sempra of continued the a in demand demand roughly This California demand of rates in from the our all-time over excited the

the next Please turn to slide.

Infrastructure. Sempra to Turning

And geopolitical developments world, the franchise. of of which the leader is the in exporter proposition Infrastructure in in well new as our infrastructure Sempra sector, We continue LNG U.S. witness remains largest world. The the a value European strengthen positioned supply and to markets. to Asian around customers the

for need Russia, demand LNG. from a Europe imports energy would believe growing As to there drive North is lower-cost gas its further stable, continues which we reduce for American supply,

are all states was to recently EU taking incoming include: tagging Russian major it to gas gas examples beyond to pipeline March pipelines on as banned reexports of enters through Ukraine demanding at the member is of Russian by offline effect The taken XXXX. efforts EU gas LNG natural LNG capacity few back a on XXXX. intensified Ukraine. in further Commissioner third-party its the number of deal start source extend independence this rejected on cut The to Ukrainian has imports. and in countries of that imports, Russian has top the war EU's Energy ports A A

of and between to of demand dramatically Meanwhile, that through there are XX the from fuels as in grow coal XXXX emerging strong XX% South Much and levels. such displacement market range as LNG with will India. China is in the demand refined continue and energy carbon-intensive next growth as tied of continued this years, to Southeast consensus Asia and the estimates XXX% mix from economies more demand growth products well Asian

the well. current surpassed Sempra to provider establish preferred has match a to XXXX cargoes tailwinds, rate Alongside line, Infrastructure Europe in with X and and to average Phase loaded continues long-term date, implied macroeconomic Notably, growing demand Asia. well to Year-to-date, supply annual seeking LNG the level these Cameron LNG be run exceeds lifetime now Cameron Bottom positioned is counterparties facility has perform COD. XXX production to since XXX cargoes. the already

to we from facility. So improving results witness strong this continue and

finishing a Turning to XXXX on construction work piping installation and X major operations on construction We're spring above-ground progress. LNG Phase to make time updates. of projects. project The intact. series advancing now online to in ECA our bring continues remains is line commercial focusing

operations expansion the the expected of announce the end to before year. pleased pipeline, we're commercial GRO to the is Additionally, of commence

exports You this at ECA. will dedicated pipeline recall is support to LNG

steel also advancing and is Arthur time piling, on structural focused X Port above piping is and ground and Currently, on is Phase budget. on as foundations, planned work installations. dredging,

We letter have Port authorization to Connector Haynesville also activities Basin. a begun. building feed from will for pipeline, FERC gas the pipeline Arthur the received provide which of Mobilization already into Louisiana commence this

project our remains Port to and Arthur Phase Moving finalizing X, efforts focus arrangements financing. development the securing on at offtake

selecting nonbinding to focused are Aramco improving off-takers. significant continue and commercial We've customer the notably, terms. equity have the mix on discussions a for per project, to annum [ potential X right participation. We our XX% with commercial ] made is partner progress Most million with and date now tons HOA on and a Saudi our anchor

across As with continuous reminder, an have both for we phases. to agreement Bechtel a EPC construction allow

resolved our also DOE expect for export which non-FDA We to be permit, to wait we next year. continue

this timing move now uncertain we're a expansion of The the result, As time ahead line Phase an X point. is decision Port at expansion. Cameron Cameron for expecting Arthur to development FID of

optimal the on partners our with timing work for to continue We expansion.

the returns be to mitigate our before quality making decision. and very disciplined As we've we'll any risk efforts to past, in secure investment been capital in

per to turn share. earnings $XXX Please to basis, X. or reported authorized $X.XX $XXX true-up Earlier on this XXXX share. quarter pending, in third January of were On be GAAP $X.XX third XXXX decision authorized $XXX is we morning, million of year, a because and quarter $X.XX share. next This XXXX our receive levels. XXXX This this Sempra share. year-to-date or slide. third XXXX GRC retroactively This of GAAP earnings any revenues or outcome quarter per to compares to important based applied adjusted earnings million an earnings CPUC million $XXX quarter $X are third final per base or compares million will our per remains the XXXX third the quarter assuming Because

the Please earnings third turn be year XXXX the compared period to followed. the next in as last same slide. Variances adjusted can summarized quarter to

income benefits margin, operating This million, capital higher higher from interest regulatory interest authorized $X was offset Sempra, and including we CPUC had net expenses, from of and operating $XX At cost expense. million lower than of tax more California, primarily base higher by higher income. net

earnings by consumption, million Turning partially customer lower growth. to operating expenses Texas. equity capital $XX interest higher higher and offset We from lower Sempra revenues from had and of invested and

is interest. Sempra million of $XX higher $X Infrastructure, to business, taxes, supply tax Transportation net Renewables by Sempra and lower due At $X O&M revenues At we benefit lower higher change primarily income had the interest and capitalized million higher investment million, partially by asset from and partially due primarily offset in and the higher optimization, lower offset to net net gains. parent,

the to quickly key turn summarize next slide. remarks, highlights. to prepared our our like investment Please conclude I'd To

As commitment invest resilient to energy. gives operational largest of And evolve our in grow energy safer, on decade position and as of new infrastructure excellence in levels to needs North us our a higher America's through end and in energy delivering capital reliable more leader beyond. critical markets supports opportunity the unique America, and the focus our North economic

capital For general an strength a of roll expenditures be capital $X capital plan manner, will and growing final we are corporate excellent efficient in finance fund purposes equity establishing received our position decision, through program XXXX. an campaign, continuing timely sheet. of and in to we at-the-market billion. in we'll the our maintain After GRC help to balance forward while growth the our us to This X-year

on call. to in expect We QX February our provide that update

executing And for I'd your And long-term now to us. the up on line investments in you we'll value-accretive sustainable, open questions. for like continue drive interim, that joining the growth. Thank

will Barclays. question from first Instructions] remarks. come This from you. Thank Campanella our concludes prepared the [Operator And Nick

kind its and demand comments trending of So historical your higher Jeff, sector growth than on EPS growth about norms.

And of confirm X% the all you should this kind you be sector above of inclusive just want already. have range? items capital above sight side, I that's of we thinking to capital EPS growing on the like these you fourth the X% the kind the And of coming line that pipe CAGR how out laid been quarter? that You've to down into that the as together piece to about all do

for roughly sector before. we've you of growth to these about Nick. our But period XXXX from had when XXXX, that the you conversations question, EPS had average Thank X%. think And

higher I significant Now a referring period in that super What happen closer And our been trending X%. we're is utility a I recent growth from time is in some changes are cycle. going to think sector, to it's to time. for people years, what to think as

In other the you're see to trend higher. going words, next this decade. expect well to the see average we EPS growth think And decade overall through across I growth and sector into

is X% We think oriented of terms there's total I have And to invest return utility in important towards with efficient policy. of in sector. the kind to think traditionally frontier that strong there very balancing X%. dividend that investors the a an We

So the growth we're comfortable very X% with rate. X% to

have I we working be lot have certainty future. And growth but about key or now We certainly comfortable that the is, a the to better. deliver to we range will of field call a can the with a we're hard we takeaway certainly opportunities in range, of more lot of that high end today's the vision think that that backlog from exceed

last this it kind is And of to You year? start CapEx year do quickly formal were of derisk outlook. to equity you think it on you're to ahead Is year? then the ATM. plan equity? next your just need going Or the smart When

me. and the it So if on table that's just for again, wondering that's

plan billion to little correct, with year, level. you're call on of X-year provided Nick. that much, offering. a And Yes. we Last Thank a we you in you $X.X very at the up roughly visibility secondary increases our followed Sempra capital bit QX our recall

Justin at our just both I think process they in interesting meeting, growth. what Dallas fall visibility this to have and were Allen Board was I planning with year week and remarkable in last their

to February, offerings. wait us our to of thought obviously give until And we'll our details many do common seek the it signal ATM thought of much but as it I was have And important February make than opportunity lot the important was adding as that alternatives that companies that. for were in ATMs sure additional to in we become fact frame, now I to rather investors And the tool a I more time think followed traditional that toolbox. you an have recently

as just when the our is for Sempra, finance So including, view we to takeaway the get hope provide another at us view everyone to sources and on we'll that think capital it and uses also robust to for business. provide will at what option level. call, our billion February officially We've our full update to XXXX $X I we're we roll-forward it sized And a prepared guidance. a Nick, of at program, be I funding, going time be of best

will come Shar Guggenheim next question Pourreza from Partners. Our from

the -- follow Let to me equity. just up on Nick's quickly want on question

$X of funding there on up? increases? that equity is anticipated potential about ramps billion CapEx could SIP ATM, at a your Just especially funding Or sense, the as that thinking fully we're be as coming, needs I couldn't get more

Yes. What platforms through we all past, in It everyone's growth takes the capital. in where California the question, X-year bottom-up for XX% of go overall goes lion's traditionally XX% program share very capital our inside and plan and Thank through utilities seen we Shar. compete in goes as our the And comprehensive between to a capital across plans you've force of our of utility. is for X we Sempra the U.S. process Texas. do through fall, our you

and that done we thought So we think a to what it, early would our of when this in talk do capital not announce tool provide a additional was February visibility out of increase I we our on toolbox. be but plan coming provide detail this there sure significant in We're we'll to make lot use the in prepared really is appropriate that when February, to had about call. Oncor's is fact will it at we we've juncture

I could is billion billion the assume it But higher. the $X be shouldn't, $X guess, we Okay.

We very with comfortable Exactly. $X Exactly. billion. feel

Excellent.

And of the see decision then terms a Electric? midpoint for Perfect. parameter San present of increases, SoCalGas lower year Diego And CapEx expectations? could just the planning standpoint, Okay. California, PD & just back from a attrition sort the recommendation and your given versus pulling proposed in at revenue you does in Gas headwind

describe challenging planning I make the of and executives process, is would in fulsome capital we're sure all fall got What Yes. a our approach to utilization. they've disciplined to that

overall a So both over highest And for give capital. time, there is it's by well relative as not as And and just process capital also between projects that of compete forcing discipline business. organization take a to return, long period of the to it's inside risk. returns

So are also namely and noted But affordability. areas the there aspects see we to is important customers we improve our safety, remarks, reliability make PD, the are we decision that Shar, process quite in our PD are is A constructive. think the comment that opportunities I of we feel prepared to very that actually about some that ongoing. in

system the couple had of to of gas we recall, arguments programs. And distribution important improvements one, to there week in we number the for natural us number are safely. improvements think as where additional the So oral that's highlighted a necessary -- earlier integrity wildfire things undergrounding management additional support very two, this you'll need mitigation; operating for and we terms

customers benefits. business areas our affordability, expected the offset to additional might activity. And your we To to cost still is with post of in identifying our we're level because that finally, of year that's has important funding of do tax form because in mainly and point, increases our on focus align that think

want on But the Shar, do I conclude outcome this saying So X year have all outcome to in for get work to of an things: get our We front that's think constructive stakeholders. to by get regulator I we our continue would we'll this. to to chance, don't of collaboratively. an and

will Julien from Dumoulin-Smith Jefferies. from question next Our come

a $X XX% think baked that in I say, bit side, sense but XX% $X there, you little picking with where of Permian billion range just breakdown? on terms is you know a low go roughly that How that it's from Can us of give When what in, I is that up Look, balance growth? know the a Maybe is the of little can in much billion, of about $X billion you to us you that of, got what's else there. give is tantalizing But bit range to SRP. of you right? and Basin. Oncor it? the preliminary,

good you Well, in is news Julien, Texas. the live

So hopefully, you've this firsthand. seeing been a lot of

years several said the as program have growth well this I have For has and country. you had the now, best in I Oncor conversation as overall that consistently others.

And the drivers in we're real walk opportunity, we we I seeing don't don't think that play additional provide out and time. Why I seeing that think through of color mind. for if have you an Allen, you're some growth Julien.

Yes, thanks, you bet, Jeff. And Julien.

interconnections, the support increased the the in growth across transmission LC&I in that and backbone kind Permian much on regarding and system, We customers strong of various to [indiscernible] our categories and continue transmission transfers to in residential strong Strong of types state. to opportunities meter growth especially see in pretty invest customers territory serve. just of we very ERCOT strong growth West service across Texas all of our our growth,

to to continue or quarter, of in points my double average. very around growth premise As opening a us. I added be said remarks, and growth XX,XXX national or Jeff to strong. be interconnection big for We Transmission the did, this see we deal continues X% continue long-term

quarter year. point Generation up remains of year. Total same transmission the were interconnections the last very last of transmission up quarter versus interconnections XX% point XX% New same strong. versus were

We projects over same increase about us generation. a have to seeking XXX us the quarter XX% gives interconnect last right over to year now in queue, our for

LC&I customers be our transmission to regards to system. with continues to jump biggest The to seeking connect

that are gigawatts. from customers The to right system our with XXX load at refer We megawatts last the have large we of what a over the XX% real is and that story up the as that in same multiple of seeking right? interconnect are year, way all now, request those increase to to but customers, interconnect XXX quarter represents to individually seeking a least level at

had I now XXX, of to customers. I gigawatts later, and last to data gigawatts XX is up customers. that of And load centers. quarter of group gigawatts we represented those XX Of that approximately we're that a to quarter additions related data gigawatts XXX the unrelated is related center XX think about potential approximately

X just to points I want number. with to So that make regards XXX

at the look now, system you peak is right on system our gigawatts. XX current our load about If Oncor

that's So our Xx of XXX potential than at current to when additions load we're load, comparing one. that gigawatts, looking peak you're more

moment And this then quarter types of gigawatts in briefly the from represents potential quarter increase ago one load last gigawatts other is XXX point, customers in a just these versus which a made XX quarter. about I XX%

So big into looking driver the West be West peak. we're peaking Texas story zone great at forward XXXX February. above at again, what with a XX% Far about Texas, weather to that remains continues the of a going

up Our X the Loop of transmission and X.X%. continue to The loops Delaware the up the Stanton Permian serve be the that versus and Loop, through XX% strong Culberson we with year peak already, last

XXXX, we X infrastructure as West we non-Permian the load the call, of of in Basin are of minute, to in project. we're Permian the the integration well projects coming project of load So -- I also group Permian plant it's but from Texas additions region, project leading including projects base presently the strong XXXX. what a out plan West Texas. growth through refer can which about talk now study X seeing would Obviously, Basin stages in We're the in to, study as as Delaware that that the

and plan high-voltage then extra still got Permian of the was Basin projects plan number as a And right forward well our mentioned of as in reliability and Permian to still We've process Permian course, transmission general the have X going previously. through plan, on we the come, are forecast studies plans XXX that well November out hopefully PUC separate the plan the revised plan. of gigawatts as apart out regional December. we load have, coming as SRP that those transmission XX. the of moving ERCOT we from have Obviously, now So

have to now. story. we'll our with right on We this all great things So those we excited have a by all of are our it's a opportunities February, lot And out. these system. think looking the growth are that Board worked at Very

exposure any think of is pending at gigawatts just And AI. cuts to put across investment that in then, add, thesis a would is what from and our customer geographically my forward challenge remarks, request discussion said would as couple I of at Oncor I AI points bigger America in Think I all other interconnection company I is diverse, And Julien, a Oncor number. Allen's prepared about for an XX categories. summarize this, growth it to understated has both Sempra.

a And peak. mind, of XX entire the keep XX state to has in California overall gigawatt

before, discussed T&D tracker their world, opportunities. So in that growth just interconnection mechanisms utility they're the overall regulatory asset Oncor an capital request add, voltage also is is valuable to centered plan. XX only, dealing future exposure addition AI XX% High-voltage broad in true-up gigawatts Their with annually and to comprises high the growth, twice of for to that's with would transmission a benefits we've for filed compact on investments. of also And most transmission. Oncor from being constructive I

So a remarkable remarkable It it growth and and to is story. growth transmission exposure customer AI. from is particularly

compacts the it's the best regulatory And one got think country. of I in

I I Those reflecting high the are Just voltage. the clarify. that With you And statistic. about range that actually, XX% talking what Is to in guys are there? the basically truly you're phenomenal on mean XXX, that I it. end see said, transmission. Yes. element on the higher is upper agree,

-- a which as will be about making I kV. to plan, billion build the think mentioned XXX. went PUCT a we is Yes. assumes that's whether in The that XXX remarks, was, important $XX Allen I most as a the determination our it's But or whether thing and XXX Permian that there's prepared in out May think through upgrade

remains that seen. So be to

the We'll year. [indiscernible] know answer next

Yes.

Davenport And question come will Sachs. next our Carly Goldman from from

result the Any start maybe of that are there then the of you you project? as last a take changes. on administration on determine permit the Port when just Jeff, any outlook changes And to LNG FID factor X, to about as the the business. sort that -- think Arthur Phase gating is just would you anticipating

X referenced. then CEO And you and with that the permit here infrastructure Phase who Justin Justin, maybe the Arthur through of perhaps, speak is got us Port Carly we've walk Sempra Thank can to Bird you. issue

prepared I'd as progress. to remarks, we in considerable continue Arthur noted advance Port made And her say Carly, Karen X. we've

an and on to and are the noted Arthur continues terms. think As offtake momentum for call, since Port seeing ongoing, project our build. say to we we're that interest saw in call, I'm happy I increased QX discussions equity X, and and increased has better interest Commercial further

with X equity. per of We tons well for have agreement as our annum Aramco XX-year the as XX% million

with And side, that for Bechtel expect in next of the our Our We construction. that export resolved advantage. competitive for half first be continuous a and non-FTA view the DOE as we're as you agreement waiting permit to noted, we EPC allows year. on permitting

advance we up, sources other position investment financing continue We project, and terrific the milestones project. in a I'd to expansion To say a take identify forward to the is Arthur final and opportunity, the us look of the Port for wrap put to key to advancing of a decision.

really commentary to then far. there. Texas, just back there That's so all maybe I Great. of appreciate quickly shift And the commentary and helpful

in to looking look you'd outlook that out the Just you as forward that you're there? growth the anything highlight legislative there could that in is Texas for session impact XXXX,

if think, is legislative year, for anything overall you that just the that to I notable I I you could meetings just there's say be want deployment strategy The discuss. that XXXX history. would company's think that upon team last No, mention obviously, together the putting perhaps, capital year. biggest had week, based And I think, we Allen, next will their in

of about that We've mean, I in chatter lot it. a had Austin there's Jeff, you covered think utility I before. Carly, issues. obviously

But I'm going more we to and handle filed. way, have bills weeks position Oncor. the what we'll overly we that and from we Obviously, discussion fallout an Barrel. get with into to as I excited ready think confident few a see now. what is until nothing going in see that like about session to into I there do. am this can wait deal till to Obviously, we right But Hurricane are excellent to comes have concerned going are our things we're more anything than

will Our from Chopra Durgesh question from come ISI. next Evercore

to go equity I that the -- forward the the billion, quickly. just all you you back is basically want Can clarify something. equity to that can from Just does The that plan the really 'XX. clarify roll to X-year $X plan 'XX I that? -- as you need

billion that any timing of the color terms Does the spread have in maybe you to period? be done can next out $X of share then planning will be that equity. Or And year? it toward

almost analyst February. into is balance call, do Sure. start our QX our dive we by of X-year and been do On really present our funding. that, to I'll uses what an frankly. we just sheet and convention plan, And when for our Durgesh review has reconcile on a like sources goal come deep conference, the capital

is probably So do that appropriate also year basically conversation more for we February. What we into guidance. [indiscernible] is to in February go tend

helpful. think the of February, we like have the in to fall early XXXX where we get some expectations, release guide before we'll visibility felt always guidance Street been can if So kind at time. We've that's you viewed to always we our that

as muscular with today ATM, fine us. So I view we real for and out had details bullish, a a more tune on view think with to of that the February. just another We'll forward our come very likewise, in come capital we program. alternative opportunity this financing Texas And

is sure job to we make capital compete Our internally.

hybrids our also A team are in place, funding having the of mechanism we using think, part and and is being overall as We thoughtful.

it. Got

get looks talked pause just of of more permit -- Can I the kind anything I that go ahead, one LNG wanted the given to sort sorry, results. Jeff. question? quickly you about Previously, Okay. ask election color. you more we're clarify going like Just on just to the

No, I'm your sorry. Please question. finish

No, that's it.

update to there pause. the relates any Just as it

No. I say that a just would higher level maybe comment.

to support of a refocused there our one We nonpartisan support. energy other. our even was of And on business, We X infrastructure bipartisan infrastructure. that's have area Biden ago, the years frankly, right? energy strong under bipartisan run the don't about bill. intended historically, for or to from Remember, administration, been kind party business business an as we And focus

about our And when not delivering one our it's I cleaner knowing as another, country best what's about secure think customers. party we for or it's and about energy, we and look forward, think more for

opportunity world. to to We've when an a larger has had LNG. So in comes play constructive a it America view role that the

a to a in a country position have important going Hopefully, But production this I think in you're energy. to will basically our an assert economy role going to it leadership And serving we United tool growing the domestic benefit of increasingly look, support States. uses. American the continue It's is continue abroad. to important here very, frankly, Foreign quite allies LNG of in very Policy. our see

X for important you'll Arthur think I to year. Phase of I next continue half an at we think And getting we in the the see in take confidence first need Infrastructure. us Sempra Port permits role growing have

from come we question time Steven last more for from will And our question. now have And one Fleishman Wolfe.

Yes. I appreciate it.

mentioned benefit of on you be mentioned much back a that? you sense just that that suggested. affordability of case, be give and something and impact to going the benefits seems thinking tax-related a you to you your the -- rates could and Just the to focus California Could could how customers us

No.

thought I years. the funding it's I you're if and in you're took to propose we being requirement the in with place can find to that And operate focused working was reduce was decision of we're think ways X in sure what through they the they also on year attrition step-up cost. making the revenue different parties the changes We're then trying proposed as the that, think outlined do you safely. our important to but And all proceeding. really that additional part trying systems are for who

outlined the programs customers. the place I would where opportunities series in took investments safety to undergrounding additional what additional programs. would benefit tax was think that a we some proposed thought I from impact to to So argument this we've and of also And integrity to our lessen think oral do that, we including benefits wildfire that week customers

the a all different work in with process you outcome. to where California a to try stakeholders get good is this So to

an I about. that confidence that think we'll good that done outcome feel and get some then have to year, this we we'll people get

what And roughly they on would just of good. based per be made there, decision? adjustments, attrition relative you That's year kind the proposed the the proposals like to

Yes. don't really we're run roll We're making what don't some I forward, to to actually do the it. we And the the right process to in is front in want What want to want participate I now. give filings everyone tomorrow. let do opportunity process is comment

have that itself right next that's couple decision the we Steve, think we're very in it, now, but a aspects over deeply the weeks. today of I it to lot proposed, constructive there's of involved but

to be So our process instructive out. I will I'd And comments let tomorrow, think, play to prefer the your question.

on plan lastly, then And think, $XX Understood. just raised capital $XX remember from, back. Okay. your billion to which is Oncor, phenomenal. billion I overall you I

at of that think track so that already for this early late or all Sempra? billion be been Would to it. Oncor. It's year. many capital including was higher I There's all increases. last Or some of capital year hard $XX the this incremental of keep to somewhat

by high-class for you framing way. Thank the problem, a

But not you and process just Sempra is really where on do, up top of sum project the going disciplined go We at we're put through process. a the another total capital. a also X compete. look, very of through still we're project to one So Steve, This make there's Oncor incremental that business needs. to opportunities other our and no at $XX there's be that to process growth platforms capital capital seeing grow billion will question the rigorous a their

process is Oncor clearly, $XX the underway the that So billion. incremental is But to today. program

like additional any session. for you. back to Thank Martin the remarks. Jeff I'd concludes to At That today's this time, turn question-and-answer closing conference

the today. summary certainly with we few to out comments. like on everyone joining close call Well, a I'd appreciate us

outcome. here constructive we're year, the in cases get and First, general we'll of all parties finalizing rate California the by to optimistic a our . with work about end to

at that data from in everyone connection opportunities update centers across customer investment gigawatts. service from territory, to XX pleased program, able I significant including we're was today totaling see Oncor requests We SRP on Second, growth diverse Texas developments Oncor. the

the see growth also necessary Basin new transmission support backbone investments expanding Permian and in to for We the ERCOT.

should, managing So [indiscernible] future growth major Sempra. for simultaneously, infrastructure construction growing several continue in and the higher a of we portfolio note projects business, that operate together of at translate to also our levels are which into assets

gives grow of finally, combined while strength over long and confidence the delivering value platforms X lot a term. to our And us continue of growth the our business shareholder

partner of I positions Sempra would to the leadership mention and retiring numerous the that has to at me. a Trevor also like been served great end thanking at in be a -- year held Mihalik Please Trevor over forward will items, decade, join out for there IR for and all seeing next EEI to look certainly contributions. our of Florida in our to week. follow-up reach any questions, you are please This his team at of we many If with call. concludes your me

your participation. you Thank for

You disconnect. now may