Trevor Mihalik
Executive Vice President and Chief Financial Officer: at Sempra
Thanks, Jeff. As we closed the first half of the year, we're pleased with our financial results, which highlight the strength of our business model. For background, Sempra was formed via the merger of the parent companies of SDG&E and SoCalGas, and it's exciting to see how that foundation has allowed us to build a much larger and more successful company over time. Today, we have a leading position with $24 billion of rate base within our Sempra California platform and serve nearly 26 million consumers.
As electrification continues to increase, we're seeing significant load growth. Since 2022, SDG&E has experienced load growth of approximately 3%. This is the result of economic expansion and the trend of more business and consumer activity switching to electricity. For example, the Port of San Diego recently unveiled the arrival of two all-electric cranes, which are the first of their kind to be unveiled in North America. The Port also approved an electrification project enabling cruise ships to plug into the grid while at birth as opposed to running their diesel engines, thereby significantly reducing emissions. The Port of San Diego is also expecting to receive the first all-electric tugboat to support further emission reductions across their operations. As these trends continue, we see opportunities for increased investment in infrastructure to support continued decarbonization in the region.
Another great example is the ongoing electrification of transportation. California is leading the nation in electric vehicles and SDG&E now has over 110,000 EVs in its service territory as of the first quarter, an increase of almost 35% compared to last year. At Sempra, our employees have also been leaders in promoting electrification. Back in 2015, we set an internal goal to have 500 employees using electric vehicles as a primary means of transportation. We're pleased to report that we have recently exceeded the 1,000 employee mark, making us one of the first companies in Southern California to reach this milestone. And as electrification and customer adoption increases, we expect this to drive increased load growth in our service territory.
Further, with an increasingly complex grid, significant modernization is required to maintain safety and reliability. SDG&E's recent commissioning of 171 megawatts utility-owned energy storage assets is another great example of utilizing technology to store and dispatch clean energy while reducing reliance on conventional gas fired power plants.
To help ensure California can meet its reliability and clean energy goals, CAISO approved the 2022 to 2023 transmission plan in May awarding SDG&E an estimated $500 million of new development projects. Also, in June, CAISO initiated a comprehensive bidding process with over $2 billion of additional projects located within SDG&E service territory. At Sempra, we're one of the largest owners and operators of transmission assets in North America and we believe SDG&E is well-positioned to compete favorably. The company has a long track record of operating success here in Southern California and we certainly believe our leadership and credibility in wildfire mitigation will also inform the quality and competitive nature of our bid.
Also, in June, SDG&E announced that 80% of San Diego County customers are now receiving their electricity supplies from third party providers. This is consistent with SDG&E's strategy of focusing more narrowly on modernizing the grid to efficiently move cleaner sources of energy to customers or what we refer to as an energy delivery model much like Oncor in Texas.
Turning to SoCalGas. The company released an expanded clean fuels analysis indicating the need to plan and account for increased levels of clean, firm dispatchable generation. Results highlight the potential reliability benefits of electric resource diversity and the value of hydrogen generation. The report also contemplates how cleaner fuels can be delivered safely and affordably through SoCalGas' existing and potentially new energy networks to help support electrification and decarbonization.
In connection with California's new renewable gas procurement standard known as SB 1440, SoCalGas recently issued a new request for proposal for biomethane supply in the form of RNG and/or biosynthetic natural gas. At the end of 2022, RNG represented 5% of core gas deliveries at SoCalGas and the mandated procurement through SB 1440 is expected to support the adoption of RNG in the state and in turn help SoCalGas meet its goal of 20% RNG in core customer deliveries by 2030. This is a prime example of how SoCalGas is using its existing energy network to help the state decarbonize in a safe and affordable manner.
Finally, our California GRCs are well underway. Our application in those cases are centered around delivering cleaner energy safely and reliably and in alignment with California's decarbonization goals. Recently, SDG&E and SoCalGas participated in evidentiary hearings with interveners and submitted updated testimony and the regulatory process continues to advance in a constructive manner. The next key milestone is opening briefs, which are scheduled to be filed in mid-August. We continue to expect a proposed decision in the second quarter of 2024 with rates retroactive to the beginning of that year.
Please turn to the next slide. Turning to Texas. I first want to acknowledge the excessive heat that customers are currently enduring across the state while also recognizing the strong performance of the grid under some of the challenging conditions. Oncor's innovative and dedicated employees are the driving force maintaining reliable electric service despite challenging external factors and they go to work each day with this commitment to excellence.
When we acquired just over 80% in Oncor five years ago, it had $11 billion of rate base and Sempra made a regulatory commitment to support a minimum $7.4 billion five year capital plan. That same capital spend grew to be nearly $12 billion over that same period and Oncor has nearly doubled its rate base to $21 billion as of the end of 2022. Over the past five years, Oncor system has grown substantially having added approximately 7,000 miles of transmission and distribution lines. Earlier this year, Oncor increased its 2023 to 2027 capital plan to $19 billion. With continued strong economic growth and the recent positive legislation, we now certainly anticipate upside when we roll forward the new five year capital plan.
We have long talked about the incredible macroeconomic growth in Texas and how it continues to drive additional capital investments. To put Oncor's customer base into perspective, the Dallas-Fort Worth metroplex alone has a larger population than 38 states. Since June of this year, ERCOT set six new records for peak demand and it's also noteworthy that over the past seven years, there has been a 17% increase in ERCOT's peak demand. Specifically, for Oncor, both C&I and residential customer demand continues to grow.
A great example of this incremental C&I demand is the roughly $60 billion of chip manufacturing facilities that have begun construction in the cities of Sherman and Taylor over the past 18 months. These large manufacturing sites are expected to drive demand and require the buildout of significant new electrical infrastructure in the surrounding communities. Finally, we also want to provide an update on a series of positive legislative outcomes that could add significant long-term value for Oncor and its customers by attracting additional capital to meet the state's growth and resiliency needs.
Please turn to the next slide. Several bills were recently enacted in Texas that are designed to provide enhanced recovery mechanisms for utilities and reduce regulatory lag. Together, these bills are expected to improve realized ROE and facilitate additional investment to support Texas' growth. We believe that the improved regulatory legislation coupled with an incredible economic growth story positions Oncor as one of the premier regulated T&D utilities in the country.
Starting with SB 1015. Oncor is now able to file a distribution capital tracker twice a year as opposed to only once. Similar to the existing regulatory mechanism for transmission investments, this should reduce regulatory lag and reflect Oncor's distribution investments in a more timely manner. This should improve both earnings and cash flows and is critical in markets like Texas, which is experiencing increased demand requiring rapid capital deployment.
Moving to HB 2555. This bill is designed to allow utilities to file a plan to harden and make its transmission and distribution systems more resilient to potential disruptions. Of note, the bill provides a separate regulatory mechanism for recovery of commission-approved resiliency investments. The PUCT is currently drafting new rules to specify actual implementation, which we expect to be completed by the end of the year. The rulemaking will lay out the procedural steps and timelines between future filings and the actual rate implementation.
SB 1076, the Permitting Efficiency Bill, helps address the transmission grid's expansion needs by shortening the time to approve CCN applications from 12 months to six months. Finally, HB 5066 directs ERCOT and the PUCT to develop plans for transmission projects to serve high growth areas of Texas, including the electrification efforts in the Permian Basin and could provide incremental investment opportunities for Oncor. Together, these constructive legislative outcomes enhance Oncor's ability to better serve customers and support system growth.
Please turn to the next slide where I will turn the call over to Justin to provide an update on Sempra Infrastructure and Port Arthur.
