Sempra Energy’s 3rd quarter earnings call earlier this month remains optimistic for growth in the Texas electric market. Sempra owns more than 80% of the electric utility Oncor, which distributes electricity across much of Texas, including markets such as Dallas, Fort Worth, Tyler and Midland. They noted that Oncor reached a new all-time system peak demand record of 33.3 GW on August 24, but even more demand is planned in coming years. The company has received many requests to add to its load, with the potential to expand peak load by 57%. Sempra CEO Jeffrey Martin noted that there has been a year-on-year “23% increase in large load request, excluding data centers,” showing that the “growth that has taken place in Texas is broad-based.” He acknowledged that data centers are still the “lion’s share” of Texas electric growth requests.
When asked about the implications of the recent election in Texas, Oncor CEO Allen Nye said that he “continues to believe that both parties want a strong and growing Texas, and we expect that to continue.” Incoming agriculture commissioner Clayton Tucker has vowed to oppose all new transmission lines, including Oncor’s 765 kV (pictured in map above), until the electric planning process has been overhauled. Incoming governor Gina Hinojosa has also been critical of how the 765 kV project has been pursued, without directly opposing the project itself.
The earnings presentation briefly mentioned the LNG facilities owned by Sempra Infrastructure. Sempra Energy sold its majority stake in Sempra Infrastructure on November 12 and now owns only 25% of the firm. It noted that Energia Costa Azul revenues were “partially offset by lower asset optimization” and said that Port Arthur LNG Train 1 was still scheduled to come online in late 2027.
