Hedge Fund Rabble-Rouser Tells Sempra to Cut Loose Texas Power Giant Oncor

Voss Capital, a $2 billion activist hedge fund, has sent a letter to Sempra Energy urging the sale of Oncor, the Dallas-based electricity utility in which Sempra holds an 80% controlling stake. According to the letter, Voss argues that Oncor would command a higher valuation as a standalone publicly traded company and estimates the utility could be worth as much as $78 billion by the end of 2028. Voss describes an independent Oncor as "the highest-growth public transmission utility in the U.S." and frames the breakup as a value creation opportunity for Sempra shareholders.

Voss Capital's position is strengthened by the fundamental demand dynamics reshaping Texas's electricity market. The state grid operator ERCOT projects that base peak demand will climb from approximately 98,087 megawatts in 2026 to roughly 111,318 megawatts by 2032—a substantial increase that reflects surging power consumption from data centers, heavy industry, and other large industrial users seeking interconnection to Texas's grid. This structural growth underscores why transmission-focused utilities operating in the state could attract premium valuations from institutional and infrastructure investors seeking exposure to secular demand growth.

Sempra acquired its majority stake in Oncor in 2018, with regulators subsequently approving the deal structure. The company's ownership position has remained at approximately 80% and represents a significant component of Sempra's broader portfolio of regulated utility assets across Texas and California. The activist push arrives amid ongoing investor scrutiny over how Sempra should structure and value these two geographically and operationally distinct business segments.

The market's initial response has been restrained. Sempra shares closed at $90.03 and have advanced approximately 2% year-to-date, trailing the broader S&P utilities index by roughly 210 basis points. Neither Sempra nor Oncor immediately responded to requests for comment. Voss Capital, which holds less than 1% of Sempra's outstanding shares, has positioned itself as an activist investor while disclosing its stake and investment thesis through the letter campaign.