Advancing America’s Economic Competitiveness

Submitted by sempra_ian on Mon, 04/27/2026 - 09:00

At Semafor World Economy 2026 in Washington D.C., Chairman and CEO Jeffrey W. Martin participated on a panel titled The Next Era of Global Growth and spoke on issues ranging from rising energy demand to America’s growing role in supplying energy markets.

Today, global GDP is roughly $126 trillion and the United States’ economy accounts for more than 25% of that figure. “Continuing to grow this country’s economy is the key to raising the standard of living for all Americans,” said Martin. With the reshoring of industry back into the U.S. and unprecedented levels of infrastructure investment being made to support the rollout of AI, electricity demand is increasing. “As a result, the utility sector is in a super cycle of growth as we look to support the continued expansion of America’s economy,” Martin said.

Meeting Rising Energy Demand

The strength of the U.S. energy system starts with its fundamentals, Martin told the audience.

“You have to grow America’s economy by investing thoughtfully and working with regulators so that, as you support higher levels of electricity production, you’re also allocating costs through the lens of managing affordability for the customer.”

Left to right: Phillips 66 Chairman and CEO Mark Lashier, Sempra Chairman and CEO Jeffrey W. Martin and Semafor Business Reporter Rohan Goswami - Photo by Lexi Critchett/Semafor

Exceptional Growth in Texas

“Texas is ground zero for economic growth with record investments in the innovation and technology value chain, such as data centers,” Martin said. “We’re seeing higher levels of economic activity and we’re expecting Texas electricity demand to grow at roughly three to four times the national average.”

Martin used Sempra’s Texas-based electric utility, Oncor Electric Delivery Company LLC (Oncor), as an example. When Sempra purchased an 80% stake in the company in 2018, Oncor had a five-year capital plan of $7 billion. Today, Oncor’s 2026–2030 capital plan is $48 billion, while limiting the expected impact to residential rates to about 3%, or roughly the rate of inflation.

American Leadership

As part of Sempra’s strategy to simplify its business model and focus on growing its Texas and California utilities, Martin said the company made the decision to sell an equity stake in its liquefied natural gas (LNG) business, Sempra Infrastructure.

Recycling that capital back into its regulated utilities will improve Sempra’s ability to meet growing energy demand, while also supporting economic growth. That is reflected in the company's 2026–2030 capital plan, which stands at a record $65 billionⁱ, with over 95% allocated to utility investments.

When questioned on growth in U.S. LNG exports, Martin said, “The United States continues to have a competitive advantage in the global LNG trade. We have the deepest capital markets, ample reserves of natural gas, low price volatility and the rule of law.”

The competitive advantage of U.S. energy exports was also echoed at the conference by International Energy Agency Executive Director, Dr. Fatih Birol, who said “Trustworthiness and predictability will be very important in the energy trade and energy security,” and that means buyers will increasingly prioritize security of supply from stable markets, while adding risk premiums to trade based on potential disruptions from various regions in the world.

Value of Balanced Energy Policies

When asked whether the U.S. should concede leadership in clean energy to China, Martin replied, “I don’t think we should concede an inch. Today, America has the leading and most competitive economy in the world, and, in large measure, it is a credit to our balanced energy policies.”

Martin went on to reference Sempra’s California utility, San Diego Gas & Electric Company (SDG&E), as demonstrating the benefits of balanced energy policies. SDG&E’s service territory has:

Rooftop solar approaching 25% penetration;
Approximately 50% of delivered electricity sourced from renewablesⁱⁱ;
One of the highest penetration of rates of any large metropolitan area in electric vehicles (EV), with one in four car sales being an EV; and
An industry-leading position in data science and wildfire mitigation.

“The United States continues to lead the world in innovation and technology, and promoting sound, balanced energy policies should extend our leadership advantage, while securing a growing and competitive economy for future generations of Americans,” Martin said.

ⁱ Sempra’s 2026-2030 capital plan (i) includes Sempra's proportionate ownership interest in projected capital expenditures at unconsolidated equity method investees while excluding Sempra's projected future contributions to those equity method investees and (ii) excludes noncontrolling interests' proportionate ownership interest in projected capital expenditures at Sempra and at unconsolidated equity method investees. All projects in progress and future projects are subject to a number of risks and uncertainties. Sempra's capital plan and expectations regarding potential increases to its capital requirements are based on a number of assumptions, the failure of which to be accurate could materially impact Sempra's actual capital expenditures.

ⁱⁱ Based on 2025 data.

This article contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on assumptions about the future, involve risks and uncertainties, and are not guarantees. Future results may differ materially from those expressed or implied in any forward-looking statement. These forward-looking statements represent our estimates and assumptions only as of April 27, 2026. We assume no obligation to update or revise any forward-looking statement as a result of new information, future events or otherwise.

In this article, forward-looking statements can be identified by words such as “believe,” “expect,” “intend,” “anticipate,” “contemplate,” “plan,” “estimate,” “project,” “forecast,” “envision,” “should,” “could,” “would,” “will,” “confident,” “may,” “can,” “potential,” “possible,” “proposed,” “in process,” “construct,” “develop,” “opportunity,” “preliminary,” “pro forma,” “strategic,” “initiative,” “target,” “outlook,” “optimistic,” “poised,” “positioned,” “maintain,” “continue,” “progress,” “advance,” “goal,” “aim,” “commit,” or similar expressions, or when we discuss our guidance, priorities, strategies, goals, vision, mission, projections, intentions or expectations.

Factors, among others, that could cause actual results and events to differ materially from those expressed or implied in any forward-looking statement include: California wildfires, including potential liability for damages regardless of fault and any inability to recover all or a substantial portion of costs from insurance, the wildfire fund established by California Assembly Bill 1054 and the wildfire fund continuation account established by California Senate Bill 254, rates from customers or a combination thereof; decisions, disallowances or denials of cost recovery, audits, investigations, inquiries, ordered studies, regulations, denials or revocations of permits, consents, approvals or other authorizations, renewals of franchises, and other actions, including the failure to honor contracts and commitments, by the (i) Comisión Nacional de Energía, California Public Utilities Commission (CPUC), U.S. Department of Energy, U.S. Federal Energy Regulatory Commission, U.S. Internal Revenue Service, Public Utility Commission of Texas and other regulatory bodies and (ii) U.S., Mexico and states, counties, cities and other jurisdictions therein and in other countries where we do business; the success of business development efforts, construction projects, acquisitions, divestitures, and other significant transactions such as the planned sale of a portion of our equity interest in Sempra Infrastructure Partners, including risks related to, as applicable, (i) being able to reach a positive final investment decision, (ii) negotiating pricing and other terms in definitive contracts, (iii) completing construction projects or other transactions on schedule and budget, (iv) realizing anticipated benefits from any of these efforts if completed, (v) obtaining regulatory and other approvals and (vi) third parties honoring their contracts and commitments, including with respect to closing or post-closing payments; changes to our capital expenditure plans and their potential impact on rate base or other growth; changes, due to evolving economic, political and other factors, to (i) trade and other foreign policy, including the imposition of tariffs by the U.S. and foreign countries, and (ii) laws and regulations, including those related to tax and the energy industry in the U.S. and Mexico; litigation, arbitration, property disputes and other proceedings; cybersecurity threats, including by nation-state actors, of ransomware or other attacks on our systems, the energy grid or our other infrastructure, or the systems of third parties with which we conduct business; the availability, uses, sufficiency, and cost of capital resources and our ability to borrow money or otherwise raise capital on favorable terms and meet our obligations, which can be affected by, among other things, (i) actions by credit rating agencies to downgrade our credit ratings or place those ratings on negative outlook, (ii) instability in the capital markets, and (iii) fluctuating interest rates and inflation; the impact of efforts to increase affordability of U.S. utility customer rates on our ability to obtain cost recovery from applicable regulators, our capital expenditure and other growth plans and our ability to advance statewide policies; the impact on affordability of customer rates, cost of capital and operating margin due to (i) volatility in inflation, interest rates, commodity prices, tariff rates, and foreign currency exchange rates and (ii) with respect to SDG&E’s and SoCalGas’ businesses, the cost of meeting the demand for lower carbon and reliable energy in California; the impact of climate policies, laws, rules, regulations, trends and required disclosures, including actions to reduce or eliminate reliance on natural gas, increased uncertainty in the political or regulatory environment for California natural gas distribution companies, the risk of nonrecovery for stranded assets, and uncertainty related to emerging technologies; weather, natural disasters, pandemics, accidents, equipment failures, explosions, terrorism, information system outages or other events, such as work stoppages, that disrupt our operations, damage our facilities or systems, cause the release of harmful materials or fires or subject us to liability for damages, fines and penalties, some of which may not be recoverable through regulatory mechanisms or insurance or may impact our ability to obtain satisfactory levels of affordable insurance; the availability of electric power, natural gas and natural gas storage and transportation capacity, including disruptions caused by failures in the transmission grid or pipeline and storage systems or limitations on the injection and withdrawal of natural gas from storage facilities; Oncor Electric Delivery Company LLC’s (Oncor) ability to reduce or eliminate its quarterly dividends due to regulatory and governance requirements and commitments, including by actions of Oncor’s independent directors or a minority member director; and other uncertainties, some of which are difficult to predict and beyond our control.

These risks and uncertainties are further discussed in the reports that Sempra has filed with the U.S. Securities and Exchange Commission (SEC). These reports are available through the EDGAR system free-of-charge on the SEC's website, www.sec.gov, and on Sempra’s website, www.sempra.com. Investors should not rely unduly on any forward-looking statements.

Sempra Infrastructure, Sempra Infrastructure Partners, Sempra Texas, Sempra Texas Utilities, Oncor and Infraestructura Energética Nova, S.A.P.I. de C.V. (IEnova) are not the same companies as the California utilities, SDG&E or SoCalGas, nor are they regulated by the CPUC.