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How Do California Utilities’ Earnings Growth and Prospects Look?

Vincent Kruger
How Do California Utilities’ Earnings Growth and Prospects Look?

Sempra Energy (SRE) is the fastest-growing utility in the state. Its presence in outstanding markets like California, the largest economy in the country, and Texas, the second largest, is a big positive. The company is aiming for annualized adjusted EPS growth of 13%, which is much higher than the broader utility (XLU) average. Sempra Energy intends to invest more than $8 billion on capital projects, which will likely expand its US subsidiary rate base by ~7% through 2022.