DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION - shares | 3 Months Ended | |
Mar. 31, 2018 | May 03, 2018 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | Sempra Energy | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2018 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Shares Outstanding | 264,137,837 | |
Entity Central Index Key | 1,032,208 | |
Trading Symbol | SRE |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | ||
REVENUES | |||
Utilities | $ 2,598 | $ 2,698 | [1] |
Energy-related businesses | 364 | 333 | [1] |
Total revenues | 2,962 | 3,031 | [1] |
Utilities: | |||
Cost of electric fuel and purchased power | (546) | (527) | [1] |
Cost of natural gas | (348) | (485) | [1] |
Energy-related businesses: | |||
Cost of natural gas, electric fuel and purchased power | (69) | (67) | [1] |
Other cost of sales | (18) | (22) | [1] |
Operation and maintenance | (781) | (719) | [1] |
Depreciation and amortization | (386) | (360) | [1],[2] |
Franchise fees and other taxes | (117) | (110) | [1] |
Operating expenses | |||
Other income, net | 153 | 174 | [1] |
Interest income | 33 | 6 | [1] |
Interest expense | (216) | (169) | [1] |
Income before income taxes and equity losses of unconsolidated subsidiaries | 667 | 752 | [1] |
Income tax expense | (289) | (295) | [1] |
Equity losses | (20) | (5) | [1] |
Net income | 358 | 452 | [1],[2] |
Losses (earnings) attributable to noncontrolling interest | 17 | (11) | [1] |
Mandatory convertible preferred stock dividends | (28) | 0 | [1] |
Net Income/Earnings attributable to common shares | $ 347 | $ 441 | [1] |
Basic earnings per common share (in dollars per share) | $ 1.34 | $ 1.76 | [1] |
Weighted-average number of shares outstanding, basic | 257,932 | 251,131 | [1] |
Diluted earnings per common share (in dollars per share) | $ 1.33 | $ 1.75 | [1] |
Weighted-average number of shares outstanding, diluted | 259,490 | 252,246 | [1] |
Dividends declared per share of common stock (in dollars per share) | $ 0.90 | $ 0.82 | [1] |
San Diego Gas and Electric Company [Member] | |||
Operating revenues | |||
Electric | $ 884 | $ 875 | [1] |
Natural gas | 171 | 182 | [1] |
Total operating revenues | 1,055 | 1,057 | [1] |
Operating expenses | |||
Cost of electric fuel and purchased power | 274 | 261 | [1] |
Cost of natural gas | 50 | 65 | [1] |
Operation and maintenance | 248 | 231 | [1] |
Depreciation and amortization | 166 | 163 | [1],[2] |
Franchise fees and other taxes | 69 | 63 | [1] |
Total operating expenses | 807 | 783 | [1] |
Operating income | 248 | 274 | [1] |
Other income, net | 28 | 22 | [1] |
Interest income | 1 | 0 | [1] |
Interest expense | (52) | (49) | [1] |
Income before income taxes and equity losses of unconsolidated subsidiaries | 225 | 247 | [1] |
Income tax expense | (56) | (90) | [1] |
Net income | 169 | 157 | [1],[2] |
Losses (earnings) attributable to noncontrolling interest | 1 | (2) | [1] |
Net Income/Earnings attributable to common shares | 170 | 155 | [1] |
Southern California Gas Company [Member] | |||
Operating revenues | |||
Total operating revenues | 1,126 | 1,241 | [1] |
Operating expenses | |||
Cost of natural gas | 289 | 408 | [1] |
Operation and maintenance | 384 | 356 | [1] |
Depreciation and amortization | 135 | 126 | [1],[2] |
Franchise fees and other taxes | 40 | 39 | [1] |
Total operating expenses | 848 | 929 | [1] |
Operating income | 278 | 312 | [1] |
Other income, net | 33 | 14 | [1] |
Interest expense | (27) | (25) | [1] |
Income before income taxes and equity losses of unconsolidated subsidiaries | 284 | 301 | [1] |
Income tax expense | (59) | (98) | [1] |
Net income | 225 | 203 | [2] |
Net Income/Earnings attributable to common shares | $ 225 | $ 203 | [1] |
[1] | As adjusted for the retrospective adoption of ASU 2017-07, which we discuss in Note 2, and a reclassification to conform to current year presentation, which we discuss in Note 1. | ||
[2] | As adjusted for the retrospective adoption of ASU 2016-18, which we discuss in Note 2. |
CONDENSED CONSOLIDATED STATEME3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | ||
Net income (loss) | $ 358 | $ 452 | [1],[2] |
Other comprehensive income (loss): | |||
Comprehensive income (loss) | 457 | 515 | |
Mandatory convertible preferred stock dividends | (28) | 0 | [2] |
Pretax amount [Member] | |||
Net income (loss) | 664 | 736 | |
Other comprehensive income (loss): | |||
Foreign currency translation adjustments | 24 | 46 | |
Financial instruments | 88 | 7 | |
Pension and other postretirement benefits | 3 | 3 | |
Total other comprehensive income (loss) | 115 | 56 | |
Comprehensive income (loss) | 779 | 792 | |
Mandatory convertible preferred stock dividends | (28) | ||
Comprehensive income (loss) | 751 | ||
Income tax (expense) benefit [Member] | |||
Net income (loss) | (289) | (295) | |
Other comprehensive income (loss): | |||
Foreign currency translation adjustments | 0 | 0 | |
Financial instruments | (30) | (3) | |
Pension and other postretirement benefits | (1) | (1) | |
Total other comprehensive income (loss) | (31) | (4) | |
Comprehensive income (loss) | (320) | (299) | |
Mandatory convertible preferred stock dividends | 0 | ||
Comprehensive income (loss) | (320) | ||
Net-of-tax amount [Member] | |||
Net income (loss) | 375 | 441 | |
Other comprehensive income (loss): | |||
Foreign currency translation adjustments | 24 | 46 | |
Financial instruments | 58 | 4 | |
Pension and other postretirement benefits | 2 | 2 | |
Total other comprehensive income (loss) | 84 | 52 | |
Comprehensive income (loss) | 459 | 493 | |
Mandatory convertible preferred stock dividends | (28) | ||
Comprehensive income (loss) | 431 | ||
Noncontrolling Interests (after-tax) [Member] | |||
Net income (loss) | (17) | 11 | |
Other comprehensive income (loss): | |||
Foreign currency translation adjustments | 5 | 9 | |
Financial instruments | 10 | 2 | |
Pension and other postretirement benefits | 0 | 0 | |
Total other comprehensive income (loss) | 15 | 11 | |
Comprehensive income (loss) | (2) | 22 | |
Mandatory convertible preferred stock dividends | 0 | ||
Comprehensive income (loss) | (2) | ||
Total [Member] | |||
Net income (loss) | 358 | 452 | |
Other comprehensive income (loss): | |||
Foreign currency translation adjustments | 29 | 55 | |
Financial instruments | 68 | 6 | |
Pension and other postretirement benefits | 2 | 2 | |
Total other comprehensive income (loss) | 99 | 63 | |
Comprehensive income (loss) | 457 | 515 | |
Mandatory convertible preferred stock dividends | (28) | ||
Comprehensive income (loss) | 429 | ||
San Diego Gas and Electric Company [Member] | |||
Net income (loss) | 169 | 157 | [1],[2] |
Other comprehensive income (loss): | |||
Comprehensive income (loss) | 173 | 160 | |
San Diego Gas and Electric Company [Member] | Pretax amount [Member] | |||
Net income (loss) | 226 | 245 | |
Other comprehensive income (loss): | |||
Financial instruments | 0 | 0 | |
Total other comprehensive income (loss) | 0 | 0 | |
Comprehensive income (loss) | 226 | 245 | |
San Diego Gas and Electric Company [Member] | Income tax (expense) benefit [Member] | |||
Net income (loss) | (56) | (90) | |
Other comprehensive income (loss): | |||
Financial instruments | 0 | 0 | |
Total other comprehensive income (loss) | 0 | 0 | |
Comprehensive income (loss) | (56) | (90) | |
San Diego Gas and Electric Company [Member] | Net-of-tax amount [Member] | |||
Net income (loss) | 170 | 155 | |
Other comprehensive income (loss): | |||
Financial instruments | 0 | 0 | |
Total other comprehensive income (loss) | 0 | 0 | |
Comprehensive income (loss) | 170 | 155 | |
San Diego Gas and Electric Company [Member] | Noncontrolling Interests (after-tax) [Member] | |||
Net income (loss) | (1) | 2 | |
Other comprehensive income (loss): | |||
Financial instruments | 4 | 3 | |
Total other comprehensive income (loss) | 4 | 3 | |
Comprehensive income (loss) | 3 | 5 | |
San Diego Gas and Electric Company [Member] | Total [Member] | |||
Net income (loss) | 169 | 157 | |
Other comprehensive income (loss): | |||
Financial instruments | 4 | 3 | |
Total other comprehensive income (loss) | 4 | 3 | |
Comprehensive income (loss) | 173 | 160 | |
Southern California Gas Company [Member] | |||
Net income (loss) | 225 | 203 | [1] |
Other comprehensive income (loss): | |||
Comprehensive income (loss) | 225 | 203 | |
Southern California Gas Company [Member] | Pretax amount [Member] | |||
Net income (loss) | 284 | 301 | |
Other comprehensive income (loss): | |||
Comprehensive income (loss) | 284 | 301 | |
Southern California Gas Company [Member] | Income tax (expense) benefit [Member] | |||
Net income (loss) | (59) | (98) | |
Other comprehensive income (loss): | |||
Comprehensive income (loss) | (59) | (98) | |
Southern California Gas Company [Member] | Net-of-tax amount [Member] | |||
Net income (loss) | 225 | 203 | |
Other comprehensive income (loss): | |||
Comprehensive income (loss) | $ 225 | $ 203 | |
[1] | As adjusted for the retrospective adoption of ASU 2016-18, which we discuss in Note 2. | ||
[2] | As adjusted for the retrospective adoption of ASU 2017-07, which we discuss in Note 2, and a reclassification to conform to current year presentation, which we discuss in Note 1. |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 | [1] |
Current assets: | |||
Cash and cash equivalents | $ 239,000,000 | $ 288,000,000 | |
Restricted cash | 54,000,000 | 62,000,000 | |
Accounts receivable – trade, net | 1,328,000,000 | 1,307,000,000 | |
Accounts receivable – other, net | 353,000,000 | 277,000,000 | |
Due from unconsolidated affiliates | 63,000,000 | 37,000,000 | |
Income taxes receivable | 118,000,000 | 110,000,000 | |
Inventories | 285,000,000 | 307,000,000 | |
Regulatory assets | 241,000,000 | 325,000,000 | |
Fixed-price contracts and other derivatives | 111,000,000 | 66,000,000 | |
Greenhouse gas allowances | 301,000,000 | 299,000,000 | |
Assets held for sale | 135,000,000 | 127,000,000 | |
Other | 166,000,000 | 136,000,000 | |
Total current assets | 3,394,000,000 | 3,341,000,000 | |
Other assets: | |||
Restricted cash | 14,000,000 | 14,000,000 | |
Due from unconsolidated affiliates | 666,000,000 | 598,000,000 | |
Regulatory assets | 1,597,000,000 | 1,517,000,000 | |
Nuclear decommissioning trusts | 1,017,000,000 | 1,033,000,000 | |
Investment in Oncor Holdings | 9,176,000,000 | 0 | |
Other investments | 2,590,000,000 | 2,527,000,000 | |
Goodwill | 2,406,000,000 | 2,397,000,000 | |
Other intangible assets | 596,000,000 | 596,000,000 | |
Dedicated assets in support of certain benefit plans | 421,000,000 | 455,000,000 | |
Insurance receivable for Aliso Canyon costs | 447,000,000 | 418,000,000 | |
Deferred income taxes | 117,000,000 | 170,000,000 | |
Greenhouse gas allowances | 154,000,000 | 93,000,000 | |
Sundry | 865,000,000 | 792,000,000 | |
Total other assets | 20,066,000,000 | 10,610,000,000 | |
Property, plant and equipment: | |||
Property, plant and equipment | 48,857,000,000 | 48,108,000,000 | |
Less accumulated depreciation and amortization | (11,832,000,000) | (11,605,000,000) | |
Property, plant and equipment, net | 37,025,000,000 | 36,503,000,000 | |
Total assets | 60,485,000,000 | 50,454,000,000 | |
Current liabilities: | |||
Short-term debt | 3,665,000,000 | 1,540,000,000 | |
Accounts payable – trade | 1,057,000,000 | 1,350,000,000 | |
Accounts payable – other | 148,000,000 | 173,000,000 | |
Due to unconsolidated affiliates | 6,000,000 | 7,000,000 | |
Dividends and interest payable | 494,000,000 | 342,000,000 | |
Accrued compensation and benefits | 253,000,000 | 439,000,000 | |
Regulatory liabilities | 210,000,000 | 109,000,000 | |
Current portion of long-term debt | 1,871,000,000 | 1,427,000,000 | |
Fixed-price contracts and other derivatives | 69,000,000 | 109,000,000 | |
Customer deposits | 164,000,000 | 162,000,000 | |
Reserve for Aliso Canyon costs | 122,000,000 | 84,000,000 | |
Greenhouse gas obligations | 301,000,000 | 299,000,000 | |
Liabilities held for sale | 52,000,000 | 49,000,000 | |
Other | 697,000,000 | 545,000,000 | |
Total current liabilities | 9,109,000,000 | 6,635,000,000 | |
Long-term debt | 20,863,000,000 | 16,445,000,000 | |
Deferred credits and other liabilities: | |||
Customer advances for construction | 149,000,000 | 150,000,000 | |
Due to unconsolidated affiliates | 35,000,000 | 35,000,000 | |
Pension and other postretirement benefit plan obligations, net of plan assets | 1,215,000,000 | 1,148,000,000 | |
Deferred income taxes | 2,654,000,000 | 2,767,000,000 | |
Deferred investment tax credits | 26,000,000 | 28,000,000 | |
Regulatory liabilities | 3,922,000,000 | 3,922,000,000 | |
Asset retirement obligations | 2,766,000,000 | 2,732,000,000 | |
Fixed-price contracts and other derivatives | 275,000,000 | 316,000,000 | |
Greenhouse gas obligations | 19,000,000 | 0 | |
Deferred credits and other | 1,147,000,000 | 1,136,000,000 | |
Total deferred credits and other liabilities | 12,208,000,000 | 12,234,000,000 | |
Commitments and contingencies (Note 11) | |||
Equity: | |||
Preferred stock | 1,693,000,000 | 0 | |
Common stock | 4,436,000,000 | 3,149,000,000 | |
Retained earnings | 10,260,000,000 | 10,147,000,000 | |
Accumulated other comprehensive income (loss) | (545,000,000) | (626,000,000) | |
Total shareholders’ equity | 15,844,000,000 | 12,670,000,000 | |
Preferred stock of subsidiary | 20,000,000 | 20,000,000 | |
Other noncontrolling interests | 2,441,000,000 | 2,450,000,000 | |
Total equity | 18,305,000,000 | 15,140,000,000 | |
Total liabilities and equity | 60,485,000,000 | 50,454,000,000 | |
San Diego Gas and Electric Company [Member] | |||
Current assets: | |||
Cash and cash equivalents | 9,000,000 | 12,000,000 | |
Restricted cash | 5,000,000 | 6,000,000 | |
Accounts receivable – trade, net | 376,000,000 | 362,000,000 | |
Accounts receivable – other, net | 89,000,000 | 79,000,000 | |
Inventories | 106,000,000 | 105,000,000 | |
Prepaid expenses | 39,000,000 | 58,000,000 | |
Regulatory assets | 233,000,000 | 316,000,000 | |
Fixed-price contracts and other derivatives | 32,000,000 | 42,000,000 | |
Greenhouse gas allowances | 116,000,000 | 116,000,000 | |
Other | 25,000,000 | 4,000,000 | |
Total current assets | 1,030,000,000 | 1,100,000,000 | |
Other assets: | |||
Restricted cash | 11,000,000 | 11,000,000 | |
Regulatory assets | 483,000,000 | 451,000,000 | |
Nuclear decommissioning trusts | 1,017,000,000 | 1,033,000,000 | |
Greenhouse gas allowances | 113,000,000 | 83,000,000 | |
Sundry | 301,000,000 | 328,000,000 | |
Total other assets | 1,925,000,000 | 1,906,000,000 | |
Property, plant and equipment: | |||
Property, plant and equipment | 20,082,000,000 | 19,787,000,000 | |
Less accumulated depreciation and amortization | (5,020,000,000) | (4,949,000,000) | |
Property, plant and equipment, net | 15,062,000,000 | 14,838,000,000 | |
Total assets | 18,017,000,000 | 17,844,000,000 | |
Current liabilities: | |||
Short-term debt | 340,000,000 | 253,000,000 | |
Accounts payable – trade | 369,000,000 | 501,000,000 | |
Due to unconsolidated affiliates | 43,000,000 | 40,000,000 | |
Interest payable | 52,000,000 | 41,000,000 | |
Accrued compensation and benefits | 59,000,000 | 122,000,000 | |
Regulatory liabilities | 8,000,000 | 18,000,000 | |
Accrued franchise fees | 57,000,000 | 59,000,000 | |
Current portion of long-term debt | 220,000,000 | 220,000,000 | |
Asset retirement obligations | 87,000,000 | 77,000,000 | |
Fixed-price contracts and other derivatives | 57,000,000 | 60,000,000 | |
Customer deposits | 69,000,000 | 69,000,000 | |
Greenhouse gas obligations | 116,000,000 | 116,000,000 | |
Other | 139,000,000 | 46,000,000 | |
Total current liabilities | 1,616,000,000 | 1,622,000,000 | |
Long-term debt | 5,313,000,000 | 5,335,000,000 | |
Deferred credits and other liabilities: | |||
Customer advances for construction | 54,000,000 | 57,000,000 | |
Pension and other postretirement benefit plan obligations, net of plan assets | 202,000,000 | 182,000,000 | |
Deferred income taxes | 1,496,000,000 | 1,530,000,000 | |
Deferred investment tax credits | 17,000,000 | 18,000,000 | |
Regulatory liabilities | 2,250,000,000 | 2,225,000,000 | |
Asset retirement obligations | 776,000,000 | 762,000,000 | |
Fixed-price contracts and other derivatives | 151,000,000 | 153,000,000 | |
Greenhouse gas obligations | 10,000,000 | 0 | |
Deferred credits and other | 334,000,000 | 334,000,000 | |
Total deferred credits and other liabilities | 5,290,000,000 | 5,261,000,000 | |
Commitments and contingencies (Note 11) | |||
Equity: | |||
Preferred stock | 0 | 0 | |
Common stock | 1,338,000,000 | 1,338,000,000 | |
Retained earnings | 4,438,000,000 | 4,268,000,000 | |
Accumulated other comprehensive income (loss) | (8,000,000) | (8,000,000) | |
Total shareholders’ equity | 5,768,000,000 | 5,598,000,000 | |
Other noncontrolling interests | 30,000,000 | 28,000,000 | |
Total equity | 5,798,000,000 | 5,626,000,000 | |
Total liabilities and equity | 18,017,000,000 | 17,844,000,000 | |
Southern California Gas Company [Member] | |||
Current assets: | |||
Cash and cash equivalents | 11,000,000 | 8,000,000 | |
Accounts receivable – trade, net | 509,000,000 | 517,000,000 | |
Accounts receivable – other, net | 87,000,000 | 90,000,000 | |
Due from unconsolidated affiliates | 6,000,000 | 4,000,000 | |
Income taxes receivable | 0 | 10,000,000 | |
Inventories | 96,000,000 | 124,000,000 | |
Regulatory assets | 8,000,000 | 9,000,000 | |
Greenhouse gas allowances | 181,000,000 | 179,000,000 | |
Other | 38,000,000 | 38,000,000 | |
Total current assets | 936,000,000 | 979,000,000 | |
Other assets: | |||
Regulatory assets | 1,031,000,000 | 983,000,000 | |
Insurance receivable for Aliso Canyon costs | 447,000,000 | 418,000,000 | |
Greenhouse gas allowances | 39,000,000 | 9,000,000 | |
Sundry | 363,000,000 | 364,000,000 | |
Total other assets | 1,880,000,000 | 1,774,000,000 | |
Property, plant and equipment: | |||
Property, plant and equipment | 17,077,000,000 | 16,772,000,000 | |
Less accumulated depreciation and amortization | (5,431,000,000) | (5,366,000,000) | |
Property, plant and equipment, net | 11,646,000,000 | 11,406,000,000 | |
Total assets | 14,462,000,000 | 14,159,000,000 | |
Current liabilities: | |||
Short-term debt | 100,000,000 | 116,000,000 | |
Accounts payable – trade | 370,000,000 | 502,000,000 | |
Accounts payable – other | 89,000,000 | 93,000,000 | |
Due to unconsolidated affiliates | 37,000,000 | 35,000,000 | |
Accrued compensation and benefits | 99,000,000 | 151,000,000 | |
Regulatory liabilities | 202,000,000 | 91,000,000 | |
Current portion of long-term debt | 503,000,000 | 501,000,000 | |
Customer deposits | 91,000,000 | 89,000,000 | |
Reserve for Aliso Canyon costs | 122,000,000 | 84,000,000 | |
Greenhouse gas obligations | 181,000,000 | 179,000,000 | |
Other | 241,000,000 | 205,000,000 | |
Total current liabilities | 2,035,000,000 | 2,046,000,000 | |
Long-term debt | 2,486,000,000 | 2,485,000,000 | |
Deferred credits and other liabilities: | |||
Customer advances for construction | 95,000,000 | 92,000,000 | |
Pension obligation, net of plan assets | 808,000,000 | 789,000,000 | |
Deferred income taxes | 1,085,000,000 | 995,000,000 | |
Deferred investment tax credits | 9,000,000 | 10,000,000 | |
Regulatory liabilities | 1,672,000,000 | 1,697,000,000 | |
Asset retirement obligations | 1,904,000,000 | 1,885,000,000 | |
Greenhouse gas obligations | 9,000,000 | 0 | |
Deferred credits and other | 227,000,000 | 253,000,000 | |
Total deferred credits and other liabilities | 5,809,000,000 | 5,721,000,000 | |
Commitments and contingencies (Note 11) | |||
Equity: | |||
Preferred stock | 22,000,000 | 22,000,000 | |
Common stock | 866,000,000 | 866,000,000 | |
Retained earnings | 3,265,000,000 | 3,040,000,000 | |
Accumulated other comprehensive income (loss) | (21,000,000) | (21,000,000) | |
Total shareholders’ equity | 4,132,000,000 | 3,907,000,000 | |
Total liabilities and equity | $ 14,462,000,000 | $ 14,159,000,000 | |
[1] | Derived from audited financial statements. |
CONDENSED CONSOLIDATED BALANCE5
CONDENSED CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 | |
Property, plant and equipment, net related to VIE | $ 37,025 | $ 36,503 | [1] |
Long-term Debt and Capital Lease Obligations | $ 20,863 | $ 16,445 | [1] |
Stockholders' Equity Attributable to Parent [Abstract] | |||
Preferred stock, shares authorized | 50,000,000 | 50,000,000 | |
Preferred stock, shares issued | 17,250,000 | 0 | |
Preferred stock, shares outstanding | 17,250,000 | 0 | |
Common stock, shares authorized | 750,000,000 | 750,000,000 | |
Common stock, shares outstanding | 264,000,000 | 251,000,000 | |
Common stock, No par value (in dollars per share) | $ 0 | $ 0 | |
Otay Mesa VIE [Member] | |||
Property, plant and equipment, net related to VIE | $ 316 | $ 321 | |
Long-term Debt and Capital Lease Obligations | 282 | 284 | |
San Diego Gas and Electric Company [Member] | |||
Property, plant and equipment, net related to VIE | 15,062 | 14,838 | [1] |
Long-term Debt and Capital Lease Obligations | $ 5,313 | $ 5,335 | [1] |
Stockholders' Equity Attributable to Parent [Abstract] | |||
Preferred stock, shares authorized | 45,000,000 | 45,000,000 | |
Preferred stock, shares issued | 0 | 0 | |
Common stock, shares authorized | 255,000,000 | 255,000,000 | |
Common stock, shares outstanding | 117,000,000 | 117,000,000 | |
Common stock, No par value (in dollars per share) | $ 0 | $ 0 | |
San Diego Gas and Electric Company [Member] | Otay Mesa VIE [Member] | |||
Property, plant and equipment, net related to VIE | $ 316 | $ 321 | |
Long-term Debt and Capital Lease Obligations | 282 | 284 | |
Southern California Gas Company [Member] | |||
Property, plant and equipment, net related to VIE | 11,646 | 11,406 | [1] |
Long-term Debt and Capital Lease Obligations | $ 2,486 | $ 2,485 | [1] |
Stockholders' Equity Attributable to Parent [Abstract] | |||
Preferred stock, shares authorized | 11,000,000 | 11,000,000 | |
Preferred stock, shares issued | 1,000,000 | 1,000,000 | |
Common stock, shares authorized | 100,000,000 | 100,000,000 | |
Common stock, shares outstanding | 91,000,000 | 91,000,000 | |
Common stock, No par value (in dollars per share) | $ 0 | $ 0 | |
[1] | Derived from audited financial statements. |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | ||||
Mar. 31, 2018 | Mar. 31, 2017 | ||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||
Net Income | $ 358 | $ 452 | [1],[2] | ||
Earnings / Net Income | 347 | 441 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||
Depreciation and amortization | 386 | 360 | [1],[2] | ||
Deferred income taxes and investment tax credits | 229 | 268 | [1] | ||
Equity losses | 20 | 5 | [1] | ||
Fixed-price contracts and other derivatives | (35) | (106) | [1] | ||
Other | 46 | (22) | [1] | ||
Net change in other working capital components | 84 | 84 | [1] | ||
Insurance receivable for Aliso Canyon costs | (29) | (15) | [1] | ||
Changes in other assets | (107) | (41) | [1] | ||
Changes in other liabilities | 14 | 19 | [1] | ||
Net cash provided by operating activities | 966 | 1,004 | [1] | ||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||
Expenditures for property, plant and equipment | (1,035) | (992) | [1] | ||
Expenditures for investments and acquisitions, net of cash and cash equivalents acquired | (9,617) | (59) | [1] | ||
Distributions from investments | 8 | 17 | [1] | ||
Purchases of nuclear decommissioning trust assets | (210) | (350) | [1] | ||
Proceeds from sales by nuclear decommissioning trusts | 210 | 357 | [1] | ||
Advances to unconsolidated affiliates | (83) | (5) | [1] | ||
Repayments of advances to unconsolidated affiliates | 69 | 2 | [1] | ||
Other | 26 | 4 | [1] | ||
Net cash used in investing activities | (10,632) | (1,026) | [1] | ||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||
Common dividends paid | (194) | (176) | [1] | ||
Issuances of mandatory convertible preferred stock, net of $32 in offering costs | 1,693 | 0 | [1] | ||
Issuances of common stock, net of $24 in offering costs | 1,278 | 17 | [1] | ||
Repurchases of common stock | (19) | (14) | [1] | ||
Issuances of debt (maturities greater than 90 days) | 5,988 | 542 | [1] | ||
Payments on debt (maturities greater than 90 days) | (193) | (313) | [1] | ||
Increase (decrease) in short-term debt, net | 1,140 | (97) | [1] | ||
Settlement of cross-currency swap | (33) | 0 | [1] | ||
Other | (52) | (5) | [1] | ||
Net cash provided by (used in) financing activities | 9,608 | (46) | [1] | ||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 1 | 10 | [1] | ||
Decrease in cash, cash equivalents and restricted cash | (57) | (58) | [1] | ||
Cash, cash equivalents and restricted cash beginning balance | 364 | 425 | [1] | ||
Cash, cash equivalents and restricted cash ending balance | 307 | 367 | [1] | ||
Cash and cash equivalents beginning balance | [3] | 288 | |||
Cash and cash equivalents ending balance | 239 | ||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | |||||
Interest payments, net of amounts capitalized | 116 | 106 | [1] | ||
Income tax payments, net of refunds | 34 | 47 | [1] | ||
SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING AND FINANCING ACTIVITIES | |||||
Assets acquired | 9,670 | 0 | [1] | ||
Liabilities assumed | (104) | 0 | [1] | ||
Cash paid | 9,566 | 0 | [1] | ||
Accrued capital expenditures | 340 | 378 | [1] | ||
Accrued Merger-related transaction and financing costs | 6 | 0 | [1] | ||
Increase in capital lease obligations for investment in property, plant and equipment | 5 | 0 | [1] | ||
Equitization of note receivable due from unconsolidated affiliate | 0 | 19 | [1] | ||
Common dividends issued in stock | 13 | 13 | [1] | ||
Preferred Stock [Member] | |||||
SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING AND FINANCING ACTIVITIES | |||||
Dividends declared but not paid | 28 | 0 | [1] | ||
Common Stock [Member] | |||||
SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING AND FINANCING ACTIVITIES | |||||
Dividends declared but not paid | 247 | 216 | [1] | ||
San Diego Gas and Electric Company [Member] | |||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||
Net Income | 169 | 157 | [1],[2] | ||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||
Depreciation and amortization | 166 | 163 | [1],[2] | ||
Deferred income taxes and investment tax credits | (11) | 34 | [1] | ||
Other | 3 | (12) | [1] | ||
Net change in other working capital components | 102 | 84 | [1] | ||
Changes in other assets | (33) | (34) | [1] | ||
Changes in other liabilities | 8 | (6) | [1] | ||
Net cash provided by operating activities | 404 | 386 | [1] | ||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||
Expenditures for property, plant and equipment | (475) | (418) | [1] | ||
Purchases of nuclear decommissioning trust assets | (210) | (350) | [1] | ||
Proceeds from sales by nuclear decommissioning trusts | 210 | 357 | [1] | ||
Decrease in loans to affiliate, net | 0 | 31 | [1] | ||
Net cash used in investing activities | (475) | (380) | [1] | ||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||
Common dividends paid | 0 | (175) | [1] | ||
Payments on debt (maturities greater than 90 days) | (20) | (160) | [1] | ||
Increase (decrease) in short-term debt, net | 87 | 343 | [1] | ||
Capital distributions made by VIE, net | 0 | (3) | [1] | ||
Net cash provided by (used in) financing activities | 67 | 5 | [1] | ||
(Decrease) increase in cash, cash equivalents and restricted cash | (4) | 11 | [1] | ||
Cash, cash equivalents and restricted cash beginning balance | 29 | 20 | [1] | ||
Cash, cash equivalents and restricted cash ending balance | 25 | 31 | [1] | ||
Cash and cash equivalents beginning balance | [3] | 12 | |||
Cash and cash equivalents ending balance | 9 | ||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | |||||
Interest payments, net of amounts capitalized | 39 | 40 | [1] | ||
SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING AND FINANCING ACTIVITIES | |||||
Accrued capital expenditures | 97 | 126 | [1] | ||
Southern California Gas Company [Member] | |||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||
Net Income | 225 | 203 | [1] | ||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||
Depreciation and amortization | 135 | 126 | [1],[2] | ||
Deferred income taxes and investment tax credits | 47 | 80 | [1] | ||
Other | 21 | (5) | [1] | ||
Net change in other working capital components | 76 | 96 | [1] | ||
Insurance receivable for Aliso Canyon costs | (29) | (15) | [1] | ||
Changes in other assets | (57) | (21) | [1] | ||
Changes in other liabilities | 1 | (1) | [1] | ||
Net cash provided by operating activities | 419 | 463 | [1] | ||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||
Expenditures for property, plant and equipment | (403) | (357) | [1] | ||
Decrease in loans to affiliate, net | 0 | (35) | [1] | ||
Other | 3 | 0 | [1] | ||
Net cash used in investing activities | (400) | (392) | [1] | ||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||
Increase (decrease) in short-term debt, net | (16) | (62) | [1] | ||
Net cash provided by (used in) financing activities | (16) | (62) | [1] | ||
Increase (decrease) in cash and cash equivalents | 3 | 9 | [1] | ||
Cash and cash equivalents beginning balance | 8 | [3] | 12 | [1] | |
Cash and cash equivalents ending balance | 11 | 21 | [1] | ||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | |||||
Interest payments, net of amounts capitalized | 18 | 16 | [1] | ||
SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING AND FINANCING ACTIVITIES | |||||
Accrued capital expenditures | 159 | 147 | [1] | ||
Increase in capital lease obligations for investment in property, plant and equipment | $ 5 | $ 0 | [1] | ||
[1] | As adjusted for the retrospective adoption of ASU 2016-18, which we discuss in Note 2. | ||||
[2] | As adjusted for the retrospective adoption of ASU 2017-07, which we discuss in Note 2, and a reclassification to conform to current year presentation, which we discuss in Note 1. | ||||
[3] | Derived from audited financial statements. |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - Parenthetical $ in Millions | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Convertible Preferred Stock [Member] | |
Offering costs | $ 32 |
Common Stock [Member] | |
Offering costs | $ 24 |
GENERAL INFORMATION AND OTHER F
GENERAL INFORMATION AND OTHER FINANCIAL DATA | 3 Months Ended |
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
GENERAL INFORMATION AND OTHER FINANCIAL DATA | GENERAL INFORMATION AND OTHER FINANCIAL DATA PRINCIPLES OF CONSOLIDATION Sempra Energy Sempra Energy’s Condensed Consolidated Financial Statements include the accounts of Sempra Energy, a California-based Fortune 500 energy-services holding company, and its consolidated subsidiaries and VIEs. Sempra Energy’s operating units are: ▪ Sempra Utilities, which includes our SDG&E, SoCalGas, Sempra South American Utilities and our newly formed Sempra Texas Utility reportable segments. We discuss our new Sempra Texas Utility reportable segment in Notes 5 and 6; and ▪ Sempra Infrastructure, which includes our Sempra Mexico, Sempra Renewables and Sempra LNG & Midstream reportable segments. We refer to SDG&E and SoCalGas collectively as the California Utilities, which do not include our Texas utility investment, South American utilities or the utility in our Sempra Infrastructure operating unit. Sempra Global is the holding company for most of our subsidiaries that are not subject to California or Texas utility regulation. All references in these Notes to “Sempra Utilities,” “Sempra Infrastructure” and their respective reportable segments are not intended to refer to any legal entity with the same or similar name. SDG&E SDG&E’s Condensed Consolidated Financial Statements include its accounts and the accounts of a VIE of which SDG&E is the primary beneficiary, as we discuss below in “Variable Interest Entities.” SDG&E’s common stock is wholly owned by Enova Corporation, which is a wholly owned subsidiary of Sempra Energy. SoCalGas SoCalGas’ common stock is wholly owned by Pacific Enterprises, which is a wholly owned subsidiary of Sempra Energy. BASIS OF PRESENTATION This is a combined report of Sempra Energy, SDG&E and SoCalGas. We provide separate information for SDG&E and SoCalGas as required. References in this report to “we,” “our” and “Sempra Energy Consolidated” are to Sempra Energy and its consolidated entities, unless otherwise indicated by the context. We have eliminated intercompany accounts and transactions within the consolidated financial statements of each reporting entity. Throughout this report, we refer to the following as Condensed Consolidated Financial Statements and Notes to Condensed Consolidated Financial Statements when discussed together or collectively: ▪ the Condensed Consolidated Financial Statements and related Notes of Sempra Energy and its subsidiaries and VIEs; ▪ the Condensed Consolidated Financial Statements and related Notes of SDG&E and its VIE; and ▪ the Condensed Financial Statements and related Notes of SoCalGas. We have prepared the Condensed Consolidated Financial Statements in conformity with U.S. GAAP and in accordance with the interim-period-reporting requirements of Form 10-Q. Results of operations for interim periods are not necessarily indicative of results for the entire year. We evaluated events and transactions that occurred after March 31, 2018 through the date the financial statements were issued and, in the opinion of management, the accompanying statements reflect all adjustments necessary for a fair presentation. These adjustments are only of a normal, recurring nature. All December 31, 2017 balance sheet information in the Condensed Consolidated Financial Statements has been derived from our audited 2017 Consolidated Financial Statements in the Annual Report. Certain information and note disclosures normally included in annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to the interim-period-reporting provisions of U.S. GAAP and the SEC. We describe our significant accounting policies in Note 1 of the Notes to Consolidated Financial Statements in the Annual Report and the impact of the adoption of new accounting standards on those policies in Note 2 below. We follow the same accounting policies for interim reporting purposes. You should read the information in this Quarterly Report in conjunction with the Annual Report. Reclassification on the Condensed Consolidated Statement of Operations We have made a reclassification on the Condensed Consolidated Statement of Operations for the three months ended March 31, 2017 to conform to current year presentation. Line item captions for equity earnings (losses) before income tax and net of income tax have been combined into one line and presented after income tax expense (benefit). This reclassification is intended to treat the presentation of earnings from all equity method investees consistently and simplify the presentation on the statement of operations, while continuing to provide additional detail in the notes to the financial statements. We discuss this presentation further in Note 6. The following table summarizes the financial statement line items that were affected by this reclassification: SEMPRA ENERGY – RECLASSIFICATION (Dollars in millions) Three months ended March 31, 2017 As previously presented As currently presented Condensed Consolidated Statement of Operations: Equity earnings, before income tax $ 3 $ — Income before income taxes and equity losses of certain unconsolidated subsidiaries 755 — Income before income taxes and equity losses of unconsolidated subsidiaries — 752 Equity losses, net of income tax (8 ) — Equity losses — (5 ) Regulated Operations The California Utilities and Sempra Mexico’s natural gas distribution utility, Ecogas, prepare their financial statements in accordance with the provisions of U.S. GAAP governing rate-regulated operations. We discuss the effects of regulation in Note 1 of the Notes to Consolidated Financial Statements in the Annual Report and revenue recognition at our utilities in Note 3 below. Sempra South American Utilities has controlling interests in two electric distribution utilities in South America, Chilquinta Energía in Chile and Luz del Sur in Peru. Revenues are based on tariffs that are set by government agencies in their respective countries based on an efficient model distribution company defined by those agencies. Because the tariffs are based on a model and are intended to cover the costs of the model company, but are not based on the costs of the specific utility and may not result in full cost recovery, these utilities do not meet the requirements necessary for, and therefore do not apply, regulatory accounting treatment under U.S. GAAP. Our Sempra Mexico segment includes the operating companies of our subsidiary, IEnova. Certain business activities at IEnova are regulated by the CRE and meet the regulatory accounting requirements of U.S. GAAP. Pipeline projects under construction at Sempra Mexico that meet the regulatory accounting requirements of U.S. GAAP record the impact of AFUDC related to equity. We discuss AFUDC below and in Note 1 of the Notes to Consolidated Financial Statements in the Annual Report. The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported on the Condensed Consolidated Balance Sheets to the sum of such amounts reported on the Condensed Consolidated Statements of Cash Flows. We provide information about the nature of restricted cash in Note 1 of the Notes to Consolidated Financial Statements in the Annual Report. RECONCILIATION OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH (Dollars in millions) March 31, 2018 Sempra Energy Consolidated: Cash and cash equivalents $ 239 Restricted cash, current 54 Restricted cash, noncurrent 14 Total cash, cash equivalents and restricted cash on the Condensed Consolidated Statement of Cash Flows $ 307 SDG&E: Cash and cash equivalents $ 9 Restricted cash, current 5 Restricted cash, noncurrent 11 Total cash, cash equivalents and restricted cash on the Condensed Consolidated Statement of Cash Flows $ 25 The components of inventories by segment are as follows: INVENTORY BALANCES (Dollars in millions) Natural gas LNG Materials and supplies Total March 31, 2018 December 31, 2017 March 31, 2018 December 31, 2017 March 31, 2018 December 31, 2017 March 31, 2018 December 31, 2017 SDG&E $ 2 $ 4 $ — $ — $ 104 $ 101 $ 106 $ 105 SoCalGas 55 75 — — 41 49 96 124 Sempra South American Utilities — — — — 32 30 32 30 Sempra Mexico 1 — 7 7 3 2 11 9 Sempra Renewables — — — — 5 5 5 5 Sempra LNG & Midstream 35 30 — 4 — — 35 34 Sempra Energy Consolidated $ 93 $ 109 $ 7 $ 11 $ 185 $ 187 $ 285 $ 307 We discuss goodwill in Note 1 of the Notes to Consolidated Financial Statements in the Annual Report. The increase in goodwill from $2,397 million at December 31, 2017 to $2,406 million at March 31, 2018 Capitalized financing costs include capitalized interest costs and AFUDC related to both debt and equity financing of construction projects. We capitalize interest costs incurred to finance capital projects and interest on equity method investments that have not commenced planned principal operations. Interest capitalized and AFUDC are as follows: CAPITALIZED FINANCING COSTS (Dollars in millions) Three months ended March 31, 2018 2017 Sempra Energy Consolidated $ 51 $ 82 SDG&E 24 20 SoCalGas 13 15 We consolidate a VIE if we are the primary beneficiary of the VIE. Our determination of whether we are the primary beneficiary is based upon qualitative and quantitative analyses, which assess: ▪ the purpose and design of the VIE; ▪ the nature of the VIE’s risks and the risks we absorb; ▪ the power to direct activities that most significantly impact the economic performance of the VIE; and ▪ the obligation to absorb losses or the right to receive benefits that could be significant to the VIE. We will continue to evaluate our VIEs for any changes that may impact our determination of the primary beneficiary. SDG&E SDG&E’s power procurement is subject to reliability requirements that may require SDG&E to enter into various PPAs that include variable interests. SDG&E evaluates the respective entities to determine if variable interests exist and, based on the qualitative and quantitative analyses described above, if SDG&E, and thereby Sempra Energy, is the primary beneficiary. Tolling Agreements SDG&E has agreements under which it purchases power generated by facilities for which it supplies all of the natural gas to fuel the power plant (i.e., tolling agreements). SDG&E’s obligation to absorb natural gas costs may be a significant variable interest. In addition, SDG&E has the power to direct the dispatch of electricity generated by these facilities. Based on our analysis, the ability to direct the dispatch of electricity may have the most significant impact on the economic performance of the entity owning the generating facility because of the associated exposure to the cost of natural gas, which fuels the plants, and the value of electricity produced. To the extent that SDG&E (1) is obligated to purchase and provide fuel to operate the facility, (2) has the power to direct the dispatch, and (3) purchases all of the output from the facility for a substantial portion of the facility’s useful life, SDG&E may be the primary beneficiary of the entity owning the generating facility. SDG&E determines if it is the primary beneficiary in these cases based on a qualitative approach in which we consider the operational characteristics of the facility, including its expected power generation output relative to its capacity to generate and the financial structure of the entity, among other factors. If we determine that SDG&E is the primary beneficiary, SDG&E and Sempra Energy consolidate the entity that owns the facility as a VIE. Otay Mesa VIE SDG&E has a tolling agreement to purchase power generated at OMEC, a 605 -MW generating facility. A related agreement provides SDG&E with the option to purchase OMEC at the end of the contract term in October 2019, or upon earlier termination of the PPA, at a predetermined price subject to adjustments. If SDG&E does not exercise its option (referred to as the call option), under the terms of the agreement, the counterparty can require SDG&E to purchase the power plant for $280 million , subject to adjustments, on or before October 3, 2019 (referred to as the put option), or upon earlier termination of the PPA. The facility owner, OMEC LLC, is a VIE, which we refer to as Otay Mesa VIE, of which SDG&E is the primary beneficiary. SDG&E has no OMEC LLC voting rights, holds no equity in OMEC LLC and does not operate OMEC. In addition to the risks absorbed under the tolling agreement, SDG&E absorbs separately through the put option a significant portion of the risk that the value of Otay Mesa VIE could decline. Accordingly, SDG&E and Sempra Energy consolidate Otay Mesa VIE. Otay Mesa VIE’s equity of $30 million at March 31, 2018 and $28 million at December 31, 2017 is included on the Condensed Consolidated Balance Sheets in Other Noncontrolling Interests for Sempra Energy and in Noncontrolling Interest for SDG&E. OMEC LLC has a loan outstanding of $292 million at March 31, 2018 , the proceeds of which were used for the construction of OMEC. The loan is with third party lenders and is collateralized by OMEC’s assets. SDG&E is not a party to the loan agreement and does not have any additional implicit or explicit financial responsibility to OMEC LLC, nor would SDG&E be required to assume OMEC’s loan under the call or put option purchase scenarios. The loan fully matures in April 2019, prior to the put option, and bears interest at rates varying with market rates. In addition, OMEC LLC has entered into interest rate swap agreements to moderate its exposure to interest rate changes. We provide additional information concerning the interest rate swaps in Note 8. The Condensed Consolidated Statements of Operations of Sempra Energy and SDG&E include the following amounts associated with Otay Mesa VIE. The amounts are net of eliminations of transactions between SDG&E and Otay Mesa VIE. The captions in the table below correspond to SDG&E’s Condensed Consolidated Statements of Operations. AMOUNTS ASSOCIATED WITH OTAY MESA VIE (Dollars in millions) Three months ended March 31, 2018 2017 Operating expenses Cost of electric fuel and purchased power $ (16 ) $ (18 ) Operation and maintenance 4 4 Depreciation and amortization 8 7 Total operating expenses (4 ) (7 ) Operating income 4 7 Interest expense (5 ) (5 ) (Losses) income before income taxes/Net (loss) income (1 ) 2 Losses (earnings) attributable to noncontrolling interest 1 (2 ) Earnings attributable to common shares $ — $ — SDG&E has determined that no contracts, other than the one relating to Otay Mesa VIE mentioned above, result in SDG&E being the primary beneficiary of a VIE at March 31, 2018 . In addition to the tolling agreements described above, other variable interests involve various elements of fuel and power costs, and other components of cash flows expected to be paid to or received by our counterparties. In most of these cases, the expectation of variability is not substantial, and SDG&E generally does not have the power to direct activities that most significantly impact the economic performance of the other VIEs. In addition, SDG&E is not exposed to losses or gains as a result of these other VIEs, because all such variability would be recovered in rates. If our ongoing evaluation of these VIEs were to conclude that SDG&E becomes the primary beneficiary and consolidation by SDG&E becomes necessary, the effects could be significant to the financial position and liquidity of SDG&E and Sempra Energy. We provide additional information about PPAs with power plant facilities that are VIEs of which SDG&E is not the primary beneficiary in Note 15 of the Notes to Consolidated Financial Statements in the Annual Report. We provide additional information regarding Otay Mesa VIE in Note 1 of the Notes to Consolidated Financial Statements in the Annual Report. Sempra Texas Utility On March 9, 2018, we completed the acquisition of an indirect, 100 -percent interest in Oncor Holdings, a VIE that owns an 80.25 -percent interest in Oncor. Sempra Energy is not the primary beneficiary of the VIE because of the structural and operational ring-fencing measures in place that prevent us from having the power to direct the significant activities of Oncor Holdings. As a result, we do not consolidate Oncor Holdings and instead account for our ownership interest as an equity method investment. See Notes 5 and 6 for additional information about our equity method investment in Oncor Holdings and restrictions in our ability to influence its activities. Our current maximum exposure to loss from our interest in Oncor Holdings does not exceed the carrying value of our investment, which is $9,176 million at March 31, 2018 . Our maximum exposure will fluctuate over time. Sempra Renewables Certain of Sempra Renewables’ wind and solar power generation projects are held by limited liability companies whose members are Sempra Renewables and financial institutions. The financial institutions are noncontrolling tax equity investors to which earnings, tax attributes and cash flows are allocated in accordance with the respective limited liability company agreements. These entities are VIEs and Sempra Energy is the primary beneficiary, generally due to Sempra Energy’s power as the operator of the renewable energy projects to direct the activities that most significantly impact the economic performance of these VIEs. As the primary beneficiary of these tax equity limited liability companies, we consolidate them. Sempra Energy’s Condensed Consolidated Balance Sheets include $1,412 million of property, plant and equipment, net, at both March 31, 2018 and December 31, 2017 and equity of $607 million and $631 million included in Other Noncontrolling Interests at March 31, 2018 and December 31, 2017, respectively, associated with these entities. Sempra Energy’s Condensed Consolidated Statements of Operations for the three months ended March 31, 2018 and 2017 include the following amounts associated with the tax equity limited liability companies. The amounts are net of eliminations of transactions between Sempra Energy and these entities. AMOUNTS ASSOCIATED WITH TAX EQUITY ARRANGEMENTS (Dollars in millions) Three months ended March 31, 2018 2017 REVENUES Energy-related businesses $ 17 $ 13 EXPENSES Operation and maintenance (4 ) (2 ) Depreciation and amortization (11 ) (8 ) Income before income taxes 2 3 Income tax expense (5 ) (2 ) Net (loss) income (3 ) 1 Losses attributable to noncontrolling interests (1) 21 3 Earnings $ 18 $ 4 (1) Net income or loss attributable to NCI is computed using the HLBV method and is not based on ownership percentages. We provide additional information regarding the tax equity limited liability companies in Note 1 of the Notes to Consolidated Financial Statements in the Annual Report. Sempra LNG & Midstream Sempra Energy’s equity method investment in Cameron LNG JV is considered to be a VIE principally due to contractual provisions that transfer certain risks to customers. Sempra Energy is not the primary beneficiary of the VIE because we do not have the power to direct the most significant activities of Cameron LNG JV. The carrying value of our investment in Cameron LNG JV, including amounts recognized in AOCI related to interest-rate cash flow hedges at Cameron LNG JV, was $1,085 million at March 31, 2018 and $997 million at December 31, 2017 . Our current maximum exposure to loss, which fluctuates over time, includes the carrying value of our investment and the guarantees that we discuss in Note 6 below and in Note 4 of the Notes to Consolidated Financial Statements in the Annual Report. Other Variable Interest Entities Sale of Qualified Pension Plan Annuity Contracts In March 2018, an insurance company purchased certain annuities for current annuitants in the SDG&E and SoCalGas qualified pension plans and assumed the obligation for payment of these annuities. At SDG&E, the liability transferred for these annuities, plus the total year-to-date lump-sum payments, exceeded the settlement threshold, which triggered settlement accounting. This resulted in a reduction of the recorded pension liability and pension plan assets of $83 million at Sempra Energy Consolidated and SDG&E. This also resulted in a settlement charge in net periodic benefit cost of $14 million at Sempra Energy Consolidated and SDG&E in the first quarter of 2018. This settlement charge at SDG&E was recorded as a regulatory asset on the Condensed Consolidated Balance Sheets. The measurement date of March 31, 2018 was used for the settlement accounting, as the liability for the annuities transferred, plus the year-to-date lump sum benefit payments, first exceeded the settlement threshold in March 2018. Acquisition On March 9, 2018, Sempra Energy completed the Merger, as we discuss in Note 5, and assumed other postretirement employee benefits obligations for health care and life insurance benefits, resulting in an increase of $21 million in the other postretirement benefit plan liability at Sempra Energy Consolidated. Net Periodic Benefit Cost The following three tables provide the components of net periodic benefit cost: NET PERIODIC BENEFIT COST – SEMPRA ENERGY CONSOLIDATED (Dollars in millions) Pension benefits Other postretirement benefits Three months ended March 31, 2018 2017 2018 2017 Service cost $ 33 $ 28 $ 6 $ 6 Interest cost 35 37 9 9 Expected return on assets (42 ) (40 ) (18 ) (16 ) Amortization of: Prior service cost 3 3 — — Actuarial loss (gain) 9 8 (1 ) (1 ) Settlements 14 — — — Net periodic benefit cost (credit) 52 36 (4 ) (2 ) Regulatory adjustment (45 ) (12 ) 4 2 Total expense recognized $ 7 $ 24 $ — $ — NET PERIODIC BENEFIT COST – SDG&E (Dollars in millions) Pension benefits Other postretirement benefits Three months ended March 31, 2018 2017 2018 2017 Service cost $ 8 $ 8 $ 1 $ 1 Interest cost 9 9 2 2 Expected return on assets (13 ) (11 ) (3 ) (3 ) Amortization of: Prior service cost — — 1 1 Actuarial loss (gain) 1 2 (1 ) — Settlements 14 — — — Net periodic benefit cost 19 8 — 1 Regulatory adjustment (19 ) (7 ) — (1 ) Total expense recognized $ — $ 1 $ — $ — NET PERIODIC BENEFIT COST – SOCALGAS (Dollars in millions) Pension benefits Other postretirement benefits Three months ended March 31, 2018 2017 2018 2017 Service cost $ 22 $ 18 $ 4 $ 4 Interest cost 23 24 7 7 Expected return on assets (26 ) (26 ) (14 ) (13 ) Amortization of: Prior service cost (credit) 2 2 (1 ) (1 ) Actuarial loss 6 4 — — Net periodic benefit cost (credit) 27 22 (4 ) (3 ) Regulatory adjustment (26 ) (5 ) 4 3 Total expense recognized $ 1 $ 17 $ — $ — Benefit Plan Contributions The following table shows our year-to-date contributions to pension and other postretirement benefit plans and the amounts we expect to contribute in 2018 : BENEFIT PLAN CONTRIBUTIONS (Dollars in millions) Sempra Energy Consolidated SDG&E SoCalGas Contributions through March 31, 2018: Pension plans $ 10 $ 2 $ — Other postretirement benefit plans 1 — 1 Total expected contributions in 2018: Pension plans $ 226 $ 48 $ 113 Other postretirement benefit plans 9 3 2 In support of its Supplemental Executive Retirement, Cash Balance Restoration and Deferred Compensation Plans, Sempra Energy maintains dedicated assets, including a Rabbi Trust and investments in life insurance contracts, which totaled $421 million and $455 million at March 31, 2018 and December 31, 2017 The following table provides EPS computations for the three months ended March 31, 2018 and 2017 . Basic EPS is calculated by dividing earnings attributable to common stock by the weighted-average number of common shares outstanding for the period. Diluted EPS includes the potential dilution of common stock equivalent shares that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. EARNINGS PER COMMON SHARE COMPUTATIONS (Dollars in millions, except per share amounts; shares in thousands) Three months ended March 31, 2018 2017 Numerator: Earnings/Income attributable to common shares $ 347 $ 441 Denominator: Weighted-average common shares outstanding for basic EPS (1) 257,932 251,131 Dilutive effect of stock options, RSAs and RSUs (2) 933 1,115 Dilutive effect of common stock shares sold forward 625 — Weighted-average common shares outstanding for diluted EPS 259,490 252,246 EPS: Basic $ 1.34 $ 1.76 Diluted $ 1.33 $ 1.75 (1) Includes 628 and 600 average fully vested RSUs held in our Deferred Compensation Plan for the three months ended March 31, 2018 and 2017 , respectively. These fully vested RSUs are included in weighted-average common shares outstanding for basic EPS because there are no conditions under which the corresponding shares will not be issued. (2) Due to market fluctuations of both Sempra Energy common stock and the comparative indices used to determine the vesting percentage of our total shareholder return performance-based RSUs, which we discuss in Note 8 of the Notes to Consolidated Financial Statements in the Annual Report, dilutive RSUs may vary widely from period-to-period. The potentially dilutive impact from stock options, RSAs and RSUs is calculated under the treasury stock method. Under this method, proceeds based on the exercise price and unearned compensation are assumed to be used to repurchase shares on the open market at the average market price for the period, reducing the number of potential new shares to be issued and sometimes causing an antidilutive effect. The computation of diluted EPS for the three months ended March 31, 2018 and 2017 excludes 80,449 and 6,801 potentially dilutive shares, respectively, because to include them would be antidilutive for the period. However, these shares could potentially dilute basic EPS in the future. The potentially dilutive impact from the forward sale of our common stock pursuant to the forward sale agreements that we discuss below in “Shareholders’ Equity and Noncontrolling Interests – Sempra Energy Common Stock Offering,” is reflected in our diluted EPS calculation using the treasury stock method. We anticipate there will be a dilutive effect on our EPS except during periods when the average market price of shares of our common stock is below the applicable adjusted forward sale price, subject to increase or decrease based on the overnight bank funding rate, less a spread, and subject to decrease by amounts related to expected dividends on shares of our common stock during the term of the forward sale agreements. Additionally, if we decide to physically settle or net share settle the forward sale agreements, delivery of our shares to the forward purchasers on any such physical settlement or net share settlement of the forward sale agreements would result in dilution to our EPS. The potentially dilutive impact from our 6% mandatory convertible preferred stock, series A (mandatory convertible preferred stock) issued in January 2018 is calculated under the if-converted method. The computation of diluted EPS for the three months ended March 31, 2018 excludes 15,592,572 potentially dilutive shares, because to include them would be antidilutive for the period. However, these shares could potentially dilute basic EPS in the future. We discuss the issuance of the mandatory convertible preferred stock in “Shareholders’ Equity and Noncontrolling Interests – Sempra Energy 6% Mandatory Convertible Preferred Stock, Series A” below. Pursuant to our Sempra Energy share-based compensation plans, Sempra Energy’s Board of Directors granted 356,496 performance-based RSUs and 195,994 service-based RSUs during the three months ended March 31, 2018 , primarily in January. During the three months ended March 31, 2018 , IEnova granted 437,729 RSUs from the IEnova 2013 Long-Term Incentive Plan, under which awards are cash settled at vesting based on the price of IEnova common stock. The following tables present the changes in AOCI by component and amounts reclassified out of AOCI to net income, excluding amounts attributable to NCI: CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) BY COMPONENT (1) (Dollars in millions) Foreign currency translation adjustments Financial instruments Pension and other postretirement benefits Total accumulated other comprehensive income (loss) Three months ended March 31, 2018 and 2017 Sempra Energy Consolidated: Balance as of December 31, 2017 $ (420 ) $ (122 ) $ (84 ) $ (626 ) Cumulative-effect adjustment from change in accounting principle — (3 ) — (3 ) OCI before reclassifications 24 66 — 90 Amounts reclassified from AOCI — (8 ) 2 (6 ) Net OCI 24 58 2 84 Balance as of March 31, 2018 $ (396 ) $ (67 ) $ (82 ) $ (545 ) . Balance as of December 31, 2016 $ (527 ) $ (125 ) $ (96 ) $ (748 ) OCI before reclassifications 46 (2 ) — 44 Amounts reclassified from AOCI — 6 2 8 Net OCI 46 4 2 52 Balance as of March 31, 2017 $ (481 ) $ (121 ) $ (94 ) $ (696 ) SDG&E: Balance as of December 31, 2017 and March 31, 2018 $ (8 ) $ (8 ) Balance as of December 31, 2016 and March 31, 2017 $ (8 ) $ (8 ) SoCalGas: Balance as of December 31, 2017 and March 31, 2018 $ (13 ) $ (8 ) $ (21 ) Balance as of December 31, 2016 and March 31, 2017 $ (13 ) $ (9 ) $ (22 ) (1) All amounts are net of income tax, if subject to tax, and exclude NCI. RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Dollars in millions) Details about accumulated other Amounts reclassified Affected line item on Condensed Three months ended March 31, 2018 2017 Sempra Energy Consolidated: Financial instruments: Interest rate and foreign exchange instruments (1) $ (2 ) $ (3 ) Interest Expense (18 ) — Other Income, Net Interest rate and foreign exchange instruments 4 4 Equity Losses Foreign exchange instruments — 2 Revenues: Energy-Related Businesses Commodity contracts not subject to rate recovery — 9 Revenues: Energy-Related Businesses Total before income tax (16 ) 12 3 (4 ) Income Tax Expense Net of income tax (13 ) 8 5 (2 ) Losses (Earnings) Attributable to Noncontrolling Interests $ (8 ) $ 6 Pension and other postretirement benefits: Amortization of actuarial loss (2) $ 3 $ 3 Other Income, Net (1 ) (1 ) Income Tax Expense Net of income tax $ 2 $ 2 Total reclassifications for the period, net of tax $ (6 ) $ 8 SDG&E: Financial instruments: Interest rate instruments (1) $ 3 $ 3 Interest Expense (3 ) (3 ) Losses (Earnings) Attributable to Noncontrolling Interest Total reclassifications for the period, net of tax $ — $ — (1) Amounts include Otay Mesa VIE. All of SDG&E’s interest rate derivative activity relates to Otay Mesa VIE. (2) Amounts are included in the computation of net periodic benefit cost (see “Pension and Other Postretirement Benefits” above). For the three months ended March 31, 2018 and 2017, reclassifications out of AOCI to net income were negligible for SoCalGas. The following tables provide reconciliations of changes in Sempra Energy’s, SDG&E’s and SoCalGas’ shareholders’ equity and NCI for the three months ended March 31, 2018 and 2017 . SHAREHOLDERS’ EQUITY AND NONCONTROLLING INTERESTS – SEMPRA ENERGY CONSOLIDATED (Dollars in millions) Sempra Energy ’ equity Non- (1) Total Balance at December 31, 2017 $ 12,670 $ 2,470 $ 15,140 Cumulative-effect adjustment from change in accounting principle (1 ) — (1 ) Comprehensive income (loss) 459 (2 ) 457 Share-based compensation expense 15 — 15 Mandatory convertible preferred stock dividends declared (28 ) — (28 ) Common stock dividends declared (236 ) — (236 ) Issuances of mandatory convertible preferred stock 1,693 — 1,693 Issuances of common stock 1,291 — 1,291 Repurchases of common stock (19 ) — (19 ) Distributions to noncontrolling interests — (7 ) (7 ) Balance at March 31, 2018 $ 15,844 $ 2,461 $ 18,305 Balance at December 31, 2016 $ 12,951 $ 2,290 $ 15,241 Comprehensive income 493 22 515 Share-based compensation expense 10 — 10 Common stock dividends declared (206 ) — (206 ) Issuances of common stock 30 — 30 Repurchases of common stock (14 ) — (14 ) Distributions to noncontrolling interests — (7 ) (7 ) Balance at March 31, 2017 $ 13,264 $ 2,305 $ 15,569 (1) NCI includes the preferred stock of SoCalGas and other NCI as listed in the table below under “Other Noncontrolling Interests.” SHAREHOLDER’S EQUITY AND NONCONTROLLING INTEREST – SDG&E (Dollars in millions) SDG&E ’ s Non- Total Balance at December 31, 2017 $ 5,598 $ 28 $ 5,626 Comprehensive income 170 3 173 Distributions to noncontrolling interest — (1 ) (1 ) Balance at March 31, 2018 $ 5,768 $ 30 $ 5,798 Balance at December 31, 2016 $ 5,641 $ 37 $ 5,678 Comprehensive income 155 5 160 Common stock dividends declared (175 ) — (175 ) Distributions to noncontrolling interest — (3 ) (3 ) Balance at March 31, 2017 $ 5,621 $ 39 $ 5,660 SHAREHOLDERS’ EQUITY – SOCALGAS (Dollars in millions) Total Balance at Decem |
NEW ACCOUNTING STANDARDS
NEW ACCOUNTING STANDARDS | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Changes and Error Corrections [Abstract] | |
NEW ACCOUNTING STANDARDS | NEW ACCOUNTING STANDARDS We describe below recent pronouncements that have had or may have a significant effect on our financial condition, results of operations, cash flows or disclosures. ASU 2014-09, “Revenue from Contracts with Customers,” ASU 2015-14, “Deferral of the Effective Date,” ASU 2016-08, “Principal versus Agent Considerations (Reporting Revenue Gross versus Net),” ASU 2016-10, “Identifying Performance Obligations and Licensing” and ASU 2016-12, “Narrow-Scope Improvements and Practical Expedients”: ASU 2014-09 adds ASC 606 to provide accounting guidance for the recognition of revenue from contracts with customers and affects all entities that enter into contracts to provide goods or services to their customers. The guidance also provides a model for the measurement and recognition of gains and losses on the sale of certain nonfinancial assets, such as property and equipment, including real estate. This guidance must be adopted using either a full retrospective approach for all periods presented in the period of adoption or a modified retrospective approach. Amending ASU 2014-09, ASU 2016-08 clarifies the implementation guidance on principal versus agent considerations, ASU 2016-10 clarifies the determination of whether a good or service is separately identifiable from other promises and revenue recognition related to licenses of intellectual property, and ASU 2016-12 provides guidance on transition, collectability, noncash consideration, and the presentation of sales and other similar taxes. The ASUs are codified in ASC 606. We adopted ASC 606 on January 1, 2018, applying the modified retrospective transition method to all contracts as of January 1, 2018 and elected to use certain practical expedients available under the transition guidance. The impact from adoption was not material to our financial statements, and the timing of our revenue recognition has remained materially consistent before and after the adoption of ASC 606. The new revenue standard provides specific guidance for combining contracts, which resulted in a prospective reclassification between cost of sales and revenues within our Sempra LNG & Midstream segment. This reclassification had no impact on Sempra Energy’s consolidated revenues or cost of sales. Our additional disclosures about the nature, amount, timing and uncertainty of revenues arising from contracts with customers are included in Note 3. ASU 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities” and ASU 2018-03, “Technical Corrections and Improvements to Financial Instruments – Overall”: In addition to the presentation and disclosure requirements for financial instruments, ASU 2016-01 requires entities to measure equity investments, other than those accounted for under the equity method, at fair value and recognize changes in fair value in net income. Entities will no longer be able to use the cost method of accounting for equity securities. However, for equity investments without readily determinable fair values that do not qualify for the practical expedient to estimate fair value using net asset value per share, entities may elect a measurement alternative that will allow those investments to be recorded at cost, less impairment, and adjusted for subsequent observable price changes. ASU 2018-03 clarifies that the prospective transition approach for equity investments without readily determinable fair values is meant only for instances in which the measurement alternative is elected. Entities must record a cumulative-effect adjustment to the balance sheet as of the beginning of the first reporting period in which the standard is adopted, except for equity investments without readily determinable fair values, for which the guidance will be applied prospectively. We adopted ASU 2016-01 and ASU 2018-03 on January 1, 2018. Sempra Energy recognized a cumulative-effect adjustment to decrease Retained Earnings and Other Investments as of January 1, 2018 by $1 million . ASU 2016-02, “Leases” and ASU 2018-01, “Land Easement Practical Expedient for Transition to Topic 842”: ASU 2016-02 requires entities to include substantially all leases on the balance sheet by requiring the recognition of right-of-use assets and lease liabilities for all leases. Entities may elect to exclude from the balance sheet those leases with a maximum possible term of less than 12 months. For lessees, a lease is classified as finance or operating, and the asset and liability are initially measured at the present value of the lease payments. For lessors, accounting for leases is largely unchanged from previous provisions of U.S. GAAP, other than certain changes to align lessor accounting to specific changes made to lessee accounting and ASC 606. ASU 2016-02 also requires new qualitative and quantitative disclosures for both lessees and lessors. ASU 2018-01 allows entities to elect a transition practical expedient that would exclude application of ASU 2016-02 to land easements that existed prior to its adoption, if they were not accounted for as leases under previous U.S. GAAP. For public entities, these ASUs are effective for fiscal years beginning after December 15, 2018, with early adoption permitted, and are effective for interim periods in the year of adoption. ASU 2016-02 requires lessees and lessors to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The modified retrospective approach includes practical expedients that may be elected, which would allow entities to continue to account for leases that commence before the effective date of the standard in accordance with previous U.S. GAAP unless the lease is modified, except for the lessee requirement to begin recognizing right-of-use assets and lease liabilities for all operating leases on the balance sheet at the reporting date. We are currently evaluating the effect of the standards on our ongoing financial reporting and plan to adopt the standards on January 1, 2019. As part of our evaluation, we formed a steering committee comprised of members from relevant Sempra Energy business units, are compiling our population of contracts and are preparing our lease accounting assessments. Based on our assessment to date, we have determined that we will elect the practical expedients available under the transition guidance described above. The FASB recently approved amendments to create an additional transition method to apply ASU 2016-02 in the period of adoption rather than in the earliest period presented and a lessor practical expedient for separating lease and non-lease components. The FASB is in the process of finalizing a new ASU that would amend ASU 2016-02. ASU 2016-13, “Measurement of Credit Losses on Financial Instruments”: ASU 2016-13 changes how entities will measure credit losses for most financial assets and certain other instruments. The standard introduces an “expected credit loss” impairment model that requires immediate recognition of estimated credit losses expected to occur over the remaining life of most financial assets measured at amortized cost, including trade and other receivables, loan commitments and financial guarantees. ASU 2016-13 also requires use of an allowance to record estimated credit losses on available-for-sale debt securities and expands disclosure requirements regarding an entity’s assumptions, models and methods for estimating the credit losses. For public entities, ASU 2016-13 is effective for fiscal years beginning after December 15, 2019, with early adoption permitted for fiscal years beginning after December 15, 2018. We are currently evaluating the effect of the standard on our ongoing financial reporting and have not yet selected the year in which we will adopt the standard. ASU 2016-15, “Classification of Certain Cash Receipts and Cash Payments” and ASU 2016-18, “Restricted Cash”: ASU 2016-15 provides guidance on how certain cash receipts and cash payments are to be presented and classified in the statement of cash flows to reduce diversity in practice. ASU 2016-18 requires amounts classified as restricted cash and restricted cash equivalents to be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. A reconciliation between the balance sheet and the statement of cash flows must be disclosed when the balance sheet includes more than one line item for cash, cash equivalents, restricted cash and restricted cash equivalents. We early adopted ASU 2016-15 and ASU 2016-18 on a retrospective basis in the fourth quarter of 2017. Neither ASU impacted SoCalGas’ Condensed Statements of Cash Flows. The adoption of ASU 2016-15 did not impact the Sempra Energy or SDG&E Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2017, based on the timing of cash receipts and cash payments affected by the ASU. Upon adoption of ASU 2016-18, Sempra Energy’s and SDG&E’s Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2017 were impacted as follows: IMPACT FROM ADOPTION OF ASU 2016-18 (Dollars in millions) Three months ended March 31, 2017 As previously reported Effect of adoption As adjusted Sempra Energy Condensed Consolidated Statement of Cash Flows: Cash flows from investing activities: Increases in restricted cash $ (93 ) $ 93 $ — Decreases in restricted cash 93 (93 ) — Effect of exchange rate changes on cash and cash equivalents 9 (9 ) — Effect of exchange rate changes on cash, cash equivalents and restricted cash — 10 10 Decrease in cash and cash equivalents (59 ) 59 — Decrease in cash, cash equivalents, and restricted cash — (58 ) (58 ) Cash and cash equivalents, January 1 349 (349 ) — Cash, cash equivalents and restricted cash, January 1 — 425 425 Cash and cash equivalents, March 31 290 (290 ) — Cash, cash equivalents and restricted cash, March 31 — 367 367 SDG&E Condensed Consolidated Statement of Cash Flows: Cash flows from investing activities: Increases in restricted cash $ (10 ) $ 10 $ — Decreases in restricted cash 9 (9 ) — Net cash used in investing activities (381 ) 1 (380 ) Increase in cash and cash equivalents 10 (10 ) — Increase in cash, cash equivalents, and restricted cash — 11 11 Cash and cash equivalents, January 1 8 (8 ) — Cash, cash equivalents and restricted cash, January 1 — 20 20 Cash and cash equivalents, March 31 18 (18 ) — Cash, cash equivalents and restricted cash, March 31 — 31 31 ASU 2017-04, “Simplifying the Test for Goodwill Impairment”: ASU 2017-04 removes the second step of the goodwill impairment test, which requires a hypothetical purchase price allocation. An entity will be required to apply a one-step quantitative test and record the amount of goodwill impairment as the excess of a reporting unit’s carrying amount over its fair value, not to exceed the carrying amount of goodwill. For public entities, ASU 2017-04 is effective for annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019, with early adoption permitted. The amendments are to be applied on a prospective basis. We have not yet selected the year in which we will adopt the standard. ASU 2017-05, “Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets”: ASU 2017-05 clarifies the scope of accounting for the derecognition or partial sale of nonfinancial assets to exclude all businesses and nonprofit activities. ASU 2017-05 also provides a definition for in-substance nonfinancial assets and additional guidance on partial sales of nonfinancial assets. We adopted the standard in conjunction with our adoption of ASC 606 on January 1, 2018 using the modified retrospective transition method and it did not materially affect our financial condition, results of operations or cash flows. ASU 2017-07, “Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost”: ASU 2017-07 requires the service cost component of net periodic benefit costs to be presented in the same income statement line item as other employee compensation costs arising from services rendered during the period and the other components of net periodic benefit costs to be presented separately outside of operating income. The guidance also allows only the service cost component to be eligible for capitalization. Amendments are to be applied retrospectively for presentation of costs and prospectively for capitalization of service costs. The guidance allows a practical expedient that permits use of previously disclosed service costs and other costs from the pension and other postretirement benefit plan disclosure in the comparative periods as appropriate estimates when retrospectively changing the presentation of these costs in the statements of operations. We adopted the standard on January 1, 2018 and elected the practical expedient available under the transition guidance. Upon adoption of ASU 2017-07, our Condensed Consolidated Statements of Operations for the three months ended March 31, 2017 were impacted as follows: IMPACT FROM ADOPTION OF ASU 2017-07 (Dollars in millions) Three months ended March 31, 2017 As previously reported Effect of adoption As adjusted Sempra Energy Condensed Consolidated Statement of Operations: Operation and maintenance $ 714 $ 5 $ 719 Other income, net 169 5 174 SDG&E Condensed Consolidated Statement of Operations: Operation and maintenance $ 227 $ 4 $ 231 Total operating expenses 779 4 783 Operating income 278 (4 ) 274 Other income, net 18 4 22 SoCalGas Condensed Statement of Operations: Operation and maintenance $ 353 $ 3 $ 356 Total operating expenses 926 3 929 Operating income 315 (3 ) 312 Other income, net 11 3 14 ASU 2017-12, “Targeted Improvements to Accounting for Hedging Activities”: ASU 2017-12 changes the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge accounting results. More specifically, the guidance expands the exposures that can be hedged to align with an entity’s risk management strategies, alleviates documentation requirements, eliminates the concept of recognizing periodic hedge ineffectiveness for cash flow and net investment hedges and requires entities to present the entire change in the fair value of a hedging instrument in the same income statement line item as the earnings effect of the hedged item. Transition elections are available for all hedges that exist at the date of adoption. We early adopted ASU 2017-12 on January 1, 2018 by applying the modified retrospective approach to the accounting for existing hedging relationships. Sempra Energy recognized a cumulative-effect adjustment to increase Retained Earnings and Accumulated Other Comprehensive Loss as of January 1, 2018 by $3 million . ASU 2018-02, “Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income”: ASU 2018-02 contains amendments that allow a reclassification from AOCI to retained earnings for stranded tax effects resulting from the TCJA. Under ASU 2018-02, an entity will be required to provide certain disclosures regarding stranded tax effects, including its accounting policy related to releasing the income tax effects from AOCI. The amendments in this update can be applied either as of the beginning of the period of adoption or retrospectively as of the date of enactment of the TCJA and to each period in which the effect of the TCJA is recognized. For public entities, ASU 2018-02 is effective for annual reporting periods beginning after December 15, 2018, including interim periods therein, with early adoption permitted. We are currently evaluating the effect of the standard on our financial reporting and have not yet selected the adoption method or the year in which we will adopt the standard. ASU 2018-05, “Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118”: As a result of the TCJA, the SEC staff issued Staff Accounting Bulletin (SAB) No. 118, which provides guidance on accounting for the TCJA’s impact. Under SAB 118, an entity may apply an approach similar to the measurement period in a business combination. That is, an entity would record those impacts for which the accounting is complete. For matters that are not certain, the entity would either (1) recognize provisional amounts to the extent that they are reasonably estimable and adjust them over time as more information becomes available, or (2) for any specific income tax effects of the TCJA for which a reasonable estimate cannot be determined, continue to apply ASC 740, Income Taxes |
REVENUES (Notes)
REVENUES (Notes) | 3 Months Ended |
Mar. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
REVENUES | REVENUES The following table disaggregates our revenues from contracts with customers by major service line, market and timing of recognition and provides a reconciliation to total revenues by segment for the three months ended March 31, 2018. DISAGGREGATED REVENUES (Dollars in millions) Three months ended March 31, 2018 SDG&E SoCalGas Sempra South American Utilities Sempra Mexico Sempra Renewables Sempra LNG & Midstream Consolidating adjustments Sempra Energy Consolidated By major service line: Utilities $ 1,131 $ 1,081 $ 408 $ 28 $ — $ — $ (19 ) $ 2,629 Midstream — — — 143 — 54 (21 ) 176 Renewables — — — 22 11 1 (1 ) 33 Other — — 17 41 — 2 (2 ) 58 Revenues from contracts with customers $ 1,131 $ 1,081 $ 425 $ 234 $ 11 $ 57 $ (43 ) $ 2,896 By market: Electric $ 963 $ — $ 425 $ 62 $ 11 $ 2 $ (4 ) $ 1,459 Gas 168 1,081 — 172 — 55 (39 ) 1,437 Revenues from contracts with customers $ 1,131 $ 1,081 $ 425 $ 234 $ 11 $ 57 $ (43 ) $ 2,896 By timing of recognition: Over time $ 1,104 $ 1,051 $ 420 $ 234 $ 11 $ 40 $ (37 ) $ 2,823 Point in time 27 30 5 — — 17 (6 ) 73 Revenues from contracts with customers $ 1,131 $ 1,081 $ 425 $ 234 $ 11 $ 57 $ (43 ) $ 2,896 Revenues from contracts with customers $ 1,131 $ 1,081 $ 425 $ 234 $ 11 $ 57 $ (43 ) $ 2,896 Utilities regulatory revenues (76 ) 45 — — — — — (31 ) Other revenues — — 1 74 14 47 (39 ) 97 Total revenues $ 1,055 $ 1,126 $ 426 $ 308 $ 25 $ 104 $ (82 ) $ 2,962 REVENUES FROM CONTRACTS WITH CUSTOMERS Our revenues from contracts with customers are primarily related to the generation, transmission and distribution of electricity and transmission, distribution and storage of natural gas through our regulated utilities. We also provide other midstream and renewable energy-related services. We assess our revenues on a contract-by-contract as well as a portfolio basis to determine the nature, amount, timing and uncertainty, if any, of revenues being recognized. We generally recognize revenues when performance of the promised commodity service is provided to our customers and invoice our customers for an amount that reflects the consideration we are entitled to in exchange for those services. We consider the delivery and transmission of electricity and natural gas and providing of natural gas storage services as ongoing and integrated services. Generally, electricity or natural gas services are received and consumed by the customer simultaneously. Our performance obligations related to these services are satisfied over time and represent a series of distinct services that are substantially the same and that have the same pattern of transfer to the customers. We recognize revenue based on units delivered, as the satisfaction of our performance obligations can be directly measured by the amount of electricity or natural gas delivered to the customer. In most cases, the right to consideration from the customer directly corresponds to the value transferred to the customer and we recognize revenue in the amount that we have the right to invoice. We provide further details of our revenue streams below. The payment terms in our customer contracts vary. Typically, we have an unconditional right to customer payments, which are due after the performance obligation to the customer is satisfied. The term between invoicing and when payment is due is typically between 10 and 90 days. We have elected the practical expedient to exclude sales and usage-based taxes from revenues. In addition, the California Utilities pay franchise fees to operate in various municipalities. The California Utilities bill these franchise fees to their customers based on a CPUC-authorized rate. These franchise fees, which are required to be paid regardless of the California Utilities’ ability to collect from the customer, are accounted for on a gross basis and reflected in utilities revenues from contracts with customers and operating expense. Utilities Revenues Utilities revenues represent the majority of our consolidated revenues from contracts with customers and include: The generation, transmission and distribution of electricity at: ▪ SDG&E ▪ Sempra South American Utilities’ Chilquinta Energía and Luz del Sur The distribution, transportation and storage of natural gas at: ▪ SDG&E ▪ SoCalGas ▪ Sempra Mexico’s Ecogas Utilities revenues are derived from and recognized upon the delivery of electricity or natural gas services to customers. Amounts that we bill our customers are based on tariffs set by regulators within the respective state or country. For SDG&E and SoCalGas, which follow the provisions of U.S. GAAP governing rate-regulated operations as we discuss in Note 1, amounts that we bill to customers also include adjustments for previously recognized regulatory revenues. The California Utilities and Ecogas recognize revenues based on regulator-approved revenue requirements, which allows the utilities to recover their reasonable cost of O&M and provides the opportunity to realize their authorized rates of return on their investments. While the California Utilities’ revenues are not affected by actual sales volumes, the pattern of their revenue recognition during the year is affected by seasonality. SoCalGas recognizes annual authorized revenue for core natural gas customers using seasonal factors established in the Triennial Cost Allocation Proceeding. Accordingly, a significant portion of SoCalGas’ annual earnings are recognized in the first and fourth quarters of each year. SDG&E’s authorized revenue recognition is also impacted by seasonal factors, resulting in higher earnings in the third quarter when electric loads are typically higher than in the other three quarters of the year. SDG&E has an arrangement to provide the California ISO with the ability to control its high voltage transmission lines for prices approved by a regulator. Revenue is recognized over time as access is provided to the California ISO. Chilquinta Energía and Luz del Sur, our electric distribution utilities in South America, recognize revenues based on tariffs designed to provide for a pass-through to customers of transmission and energy costs, recovery of reasonable O&M based on an efficient model distribution company, incentives to reduce costs and make needed capital investments and a regulated rate of return on the distributor’s regulated asset base. Factors that can affect the amount, timing and uncertainty of revenues and cash flows include weather, seasonality and timing of customer billings, which may result in unbilled revenues that can vary significantly from month to month and generally approximate one-half month’s deliveries. The California Utilities recognize revenues from the sale of allocated California GHG emissions allowances at quarterly auctions administered by CARB. GHG allowances are delivered to CARB in advance of the quarterly auctions, and the California Utilities have the right to payment when the GHG allowances are sold at auction. GHG revenue is recognized on a point in time basis within the quarter the auction is held. The California Utilities balance costs and revenues associated with the GHG program through regulatory balancing accounts. Midstream Revenues Midstream revenues at Sempra Mexico and Sempra LNG & Midstream typically represent revenues from long-term, U.S. dollar-based contracts with customers for the sale of natural gas and LNG, as well as storage and transportation of natural gas. Invoiced amounts are based on the volume of natural gas delivered and contracted prices. Sempra Mexico’s marketing operations sell natural gas to the CFE and other customers under supply agreements. Sempra Mexico recognizes the revenue from the sale of natural gas upon transfer of the natural gas via pipelines to customers at the agreed upon delivery points, and in the case of the CFE, at its thermoelectric power plants. Through its marketing operations, Sempra LNG & Midstream has contracts to sell natural gas and LNG to Sempra Mexico that allow Sempra Mexico to satisfy its obligations under supply agreements with the CFE and other customers, and to supply Sempra Mexico’s TdM power plant. Because Sempra Mexico either immediately delivers the natural gas to its customers or consumes the benefits simultaneously (by using the gas to supply TdM), revenues from Sempra LNG & Midstream’s sale of natural gas to Sempra Mexico are generally recognized over time as delivered. Revenues from LNG sales are recognized at the point when the cargo is delivered to Sempra Mexico. Revenues from the sale of LNG and natural gas by Sempra LNG & Midstream to Sempra Mexico are adjusted for indemnity payments and profit sharing. We consider these adjustments to be forms of variable consideration that are associated with the sale of LNG and natural gas to Sempra Mexico, and therefore, the related costs have been recorded as an offset to revenues. We recognize storage revenue from firm capacity reservation agreements, under which we collect a fee for reserving storage capacity for customers in our underground storage facilities. Under these firm agreements, customers pay a monthly fixed reservation fee based on the storage capacity reserved rather than the actual volumes stored. For the fixed-fee component, revenue is recognized on a straight-line basis over the term of the contract. We bill customers for any capacity used in excess of the contracted capacity and such revenues are recognized in the month of occurrence. We also recognize revenue for interruptible storage services. We generate pipeline transportation revenues from firm agreements, under which customers pay a fee for reserving transportation capacity. Revenue is recognized when the volumes are delivered to the customers’ agreed upon delivery point. We recognize revenues for our stand-ready obligation to provide capacity and transportation services throughout the contractual delivery period, as the benefits are received and consumed simultaneously as customers utilize pipeline capacity for the transport and receipt of natural gas and LPG. Invoiced amounts are based on a variable usage fee and a fixed capacity charge, adjusted for CPI, the effects of any foreign currency translation and the actual quantity of commodity transported. Renewables Revenues Sempra Renewables and Sempra Mexico develop, invest in and operate solar and wind facilities that have long-term PPAs to sell the electricity and the related green energy attributes they generate to customers, generally load serving entities, and also for Sempra Mexico, industrial and other customers. Load serving entities will sell electric service to their end-users and wholesale customers immediately upon receipt of our power delivery, and industrial and other customers immediately consume the electricity to run their facilities, and thus, we recognize the revenue under the PPAs as the electricity is generated. We invoice customers based on the volume of energy delivered at rates pursuant to the PPAs. Sempra LNG & Midstream has a contractual agreement to provide scheduling and marketing of renewable power for Sempra Renewables. Invoiced amounts are based on a fixed fee per MWh scheduled. Other Revenues from Contracts with Customers Tecnored and Tecsur, our energy services companies in South America, generate revenues from the retail sale of electric materials and providing electric construction and infrastructure services to their customers. TdM is a natural gas-fired power plant that generates revenues from selling electricity and/or resource adequacy to the California ISO and to governmental, public utility and wholesale power marketing entities, as the power is delivered at the interconnection point. TdM is currently held for sale, as we discuss in Note 5. Remaining Performance Obligations We do not disclose information about remaining performance obligations for (a) contracts with an original expected length of one year or less, (b) revenues recognized at the amount at which we have the right to invoice for services performed, or (c) variable consideration allocated to wholly unsatisfied performance obligations. For contracts greater than one year, at March 31, 2018, we expect to recognize revenue related to the fixed fee component of the consideration as shown below. SoCalGas did not have any such remaining performance obligations at March 31, 2018. REMAINING PERFORMANCE OBLIGATIONS (1) (Dollars in millions) Sempra Energy Consolidated SDG&E 2018 $ 531 $ 2 2019 533 3 2020 532 3 2021 528 3 2022 531 3 Thereafter 3,384 55 Total revenues to be recognized $ 6,039 $ 69 (1) Excludes intercompany transactions. Contract Balances from Revenues from Contracts with Customers From time to time, we receive payments in advance of satisfying the performance obligations associated with customer contracts. We defer such revenues as contract liabilities and recognize them in earnings as the performance obligations are satisfied. Activities within Sempra Energy’s contract liabilities for the three months ended March 31, 2018 are presented below. There were no contract liabilities at SDG&E or SoCalGas at March 31, 2018. CONTRACT LIABILITIES (Dollars in millions) Opening balance, January 1, 2018 $ — Adoption of ASC 606 adjustment (68 ) Revenue from performance obligations satisfied during reporting period 12 Payments received in advance (15 ) Closing balance, March 31, 2018 (1) $ (71 ) (1) I ncludes $9 million in Other Current Liabilities and $62 million in Deferred Credits and Other on the Sempra Energy Condensed Consolidated Balance Sheet. Receivables from Revenues from Contracts with Customers The table below shows receivable balances associated with revenues from contracts with customers on our Condensed Consolidated Balance Sheets. RECEIVABLES FROM REVENUES FROM CONTRACTS WITH CUSTOMERS (Dollars in millions) March 31, 2018 January 1, 2018 Sempra Energy Consolidated: Accounts receivable – trade, net $ 1,226 $ 1,194 Accounts receivable – other, net 11 10 Due from unconsolidated affiliates – current 9 8 Total $ 1,246 $ 1,212 SDG&E: Accounts receivable – trade, net $ 376 $ 362 Accounts receivable – other, net 6 3 Due from unconsolidated affiliates – current (1) 3 3 Total $ 385 $ 368 SoCalGas: Accounts receivable – trade, net $ 509 $ 517 Accounts receivable – other, net 3 7 Total $ 512 $ 524 (1) This amount is netted against current amounts due to unconsolidated affiliates on the SDG&E Condensed Consolidated Balance Sheet. REVENUES FROM SOURCES OTHER THAN CONTRACTS WITH CUSTOMERS Certain of our revenues are derived from sources other than contracts with customers and are accounted for under other accounting standards outside the scope of ASC 606. Utilities Regulatory Revenues Alternative Revenue Programs We recognize revenues from alternative revenue programs when the regulator-specified conditions for recognition have been met and adjust these revenues as they are recovered or refunded through incorporation in future utility service. Decoupled revenues. As discussed earlier, the regulatory framework requires the California Utilities to recover authorized revenue based on estimated annual demand forecasts approved in regular proceedings before the CPUC. However, actual demand for electricity and natural gas will generally vary from CPUC-approved forecasted demand due to the impacts from weather volatility, energy efficiency programs, rooftop solar and other factors affecting consumption. The CPUC regulatory framework provides for the California Utilities to use a “decoupling” mechanism, which allows the California Utilities to record revenue shortfalls or excess revenues resulting from any difference between actual and forecasted demand to be recovered or refunded in authorized revenue in a subsequent period based on the nature of the account. Incentive mechanisms. The CPUC applies performance-based measures and incentive mechanisms to all California IOUs, under which the California Utilities have earnings potential above authorized base margins if they achieve or exceed specific performance and operating goals. Generally, for performance-based awards, if performance is above or below specific benchmarks, the utility is eligible for financial awards or subject to financial penalties. Incentive awards are included in revenues when we receive required CPUC approval of the award, the timing of which may not be consistent from year to year. We would record penalties for results below the specified benchmarks against revenues when we believe it is probable that the CPUC would assess a penalty. Other Cost-Based Regulatory Recovery The CPUC authorizes the California Utilities to collect revenue requirements for costs that they have been authorized to recover from customers, including the costs to purchase electricity and natural gas, costs associated with administering public purpose, demand response, and customer energy efficiency programs and other programmatic activities authorized as part of the GRC or separately from the GRC. Actual costs are recovered as the commodity or service is delivered, or to the extent actual amounts vary from forecasts, generally recovered or refunded within a subsequent period based on the nature of the account through a balancing account mechanism. In general, the revenue recognition criteria for pass-through costs billed to customers are met at the time the costs are incurred. Because SDG&E’s and SoCalGas’ cost of electricity and/or natural gas is substantially recovered in rates through a balancing account mechanism, changes in these costs are reflected in the changes in revenues, and therefore do not impact earnings. The CPUC authorizes balancing accounts for certain programmatic activities. Amounts billed to customers, if any, are recorded in these accounts, as well as actual O&M and applicable capital-related costs (such as depreciation, taxes and ROE). Differences between actual and authorized expenditures are tracked and may be recovered or refunded within a GRC cycle or as part of the subsequent GRC request. Examples of these types of programs include, but are not limited to, gas distribution, gas transmission, and gas storage integrity management. The CPUC may impose various review procedures before authorizing recovery or refund for programs authorized separately from the GRC, including limitations on the total cost of the program, revenue requirement limits or reviews of costs for reasonableness. These procedures could result in disallowances of recovery from ratepayers. Examples of programs with reasonableness review procedures include, but are not limited to, PSEP. We discuss balancing accounts and their effects further in Note 4 below and in Note 14 of the Notes to Consolidated Financial Statements in the Annual Report. Other Revenues Sempra LNG & Midstream has an agreement to supply LNG to Sempra Mexico’s ECA LNG terminal. Although the LNG supplier purchase agreement specifies a number of cargoes to be delivered annually, actual cargoes delivered by the supplier have traditionally been significantly lower than the maximum specified under the agreement. As a result, Sempra LNG & Midstream is contractually required to make monthly indemnity payments to Sempra Mexico for failure to deliver the contracted LNG. The revenue from the indemnity payments, along with an amount for profit sharing, allows Sempra Mexico to recover the costs of operating the ECA terminal. Sempra Mexico generates lease revenue from operating lease agreements with PEMEX for the use of natural gas and ethane pipelines and LPG storage facilities. Certain PPAs at Sempra Renewables are also accounted for as operating leases. The operating leases have terms ranging from 15 to 25 years. Sempra LNG & Midstream recognizes other revenues from: ▪ fees related to contractual counterparty obligations for non-delivery of LNG cargoes, as described above. ▪ |
REGULATORY MATTERS
REGULATORY MATTERS | 3 Months Ended |
Mar. 31, 2018 | |
Regulated Operations [Abstract] | |
Regulatory Matters | REGULATORY MATTERS We discuss regulatory matters in Note 14 of the Notes to Consolidated Financial Statements in the Annual Report, and provide updates to those discussions and information about new regulatory matters below. REGULATORY ASSETS AND LIABILITIES We show the details of regulatory assets and liabilities in the following table. REGULATORY ASSETS (LIABILITIES) (Dollars in millions) March 31, December 31, SDG&E: Fixed-price contracts and other derivatives $ 103 $ 96 Deferred income taxes refundable in rates (305 ) (281 ) Pension and other postretirement benefit plan obligations 170 153 Removal obligations (1,827 ) (1,846 ) Unamortized loss on reacquired debt 8 9 Environmental costs 29 29 Sunrise Powerlink fire mitigation 120 119 Regulatory balancing accounts (1) Commodity – electric 112 82 Gas transportation 19 22 Safety and reliability 52 48 Public purpose programs (83 ) (70 ) Other balancing accounts 149 233 Other regulatory liabilities (89 ) (70 ) Total SDG&E (1,542 ) (1,476 ) SoCalGas: Pension and other postretirement benefit plan obligations 529 513 Employee benefit costs 45 45 Removal obligations (910 ) (924 ) Deferred income taxes refundable in rates (395 ) (437 ) Unamortized loss on reacquired debt 7 8 Environmental costs 21 22 Workers’ compensation 12 12 Regulatory balancing accounts (1) Commodity – gas, including transportation 168 151 Safety and reliability 275 266 Public purpose programs (353 ) (274 ) Other balancing accounts (149 ) (114 ) Other regulatory liabilities (85 ) (64 ) Total SoCalGas (835 ) (796 ) Sempra Mexico: Deferred income taxes recoverable in rates 83 83 Total Sempra Energy Consolidated $ (2,294 ) $ (2,189 ) (1) At March 31, 2018 and December 31, 2017, the noncurrent portion of regulatory balancing accounts – net undercollected for SDG&E was $72 million and $63 million , respectively. At March 31, 2018 and December 31, 2017, the noncurrent portion of regulatory balancing accounts – net undercollected for SoCalGas was $141 million and $118 million , respectively. CALIFORNIA UTILITIES MATTERS CPUC General Rate Case The CPUC uses a GRC proceeding to set sufficient rates to allow the California Utilities to recover their reasonable cost of O&M and to provide the opportunity to realize their authorized rates of return on their investment. 2019 General Rate Case On October 6, 2017, SDG&E and SoCalGas filed their 2019 GRC applications requesting CPUC approval of test year revenue requirements for 2019 and attrition year adjustments for 2020 through 2022. SDG&E and SoCalGas requested revenue requirements for 2019 of $2.199 billion and $2.989 billion , respectively, which is an increase of $217 million and $533 million over their respective 2018 revenue requirements (the 2018 revenue requirements reflect the impact of updated testimony filed in January 2018). The California Utilities are proposing post-test year revenue requirement changes using various adjustment factors which are estimated to result in annual increases of approximately 5 percent to 7 percent at SDG&E and approximately 6 percent to 8 percent at SoCalGas. Our 2019 GRC applications do not reflect the impact of the TCJA, which we discuss in “2016 General Rate Case” below, in Note 1 above and in Note 6 of the Notes to Consolidated Financial Statements in the Annual Report. In April 2018, SDG&E and SoCalGas updated their applications to reflect the impact of the TCJA and filed a joint proposal to address the impacts. The TCJA impact to SDG&E is a reduction of approximately $58 million to its 2019 test year revenue requirement; however, SDG&E’s 2019 requested revenue requirement is unchanged as we evaluate potentially higher costs associated with mitigating wildfire risks. The TCJA impact to SoCalGas’ 2019 requested revenue requirement is a reduction of approximately $58 million to $2.931 billion . In April 2018, ORA filed testimony in SDG&E’s and SoCalGas’ 2019 GRC recommending a 2019 revenue requirement of $1.918 billion and $2.695 billion , respectively, which is a net decrease of $64 million and an increase of $239 million compared to the respective 2018 revenue requirements. ORA’s proposal reduces the three-year annual attrition percentages to 4 percent for SDG&E and a range of 4 percent to 5 percent for SoCalGas. ORA recommends addressing SDG&E’s potential ownership of OMEC in a separate proceeding. As a result, ORA’s proposed 2019 revenue requirement does not include the estimated $68 million associated with owning and operating the generating facility. SDG&E’s acquisition of OMEC is subject to a CPUC-approved agreement under which the current owner of the facility can exercise a put option at a designated price on or before October 3, 2019, as we discuss in Note 1. As part of the 2019 GRC, the CPUC will review the California Utilities’ interim accountability reports, which compare the authorized and actual spending for certain safety-related activities for 2014 through 2016. In June 2017, SDG&E and SoCalGas filed their first interim accountability reports comparing authorized and actual spending in 2014 and 2015 for certain safety-related activities. Similar data for 2016 was provided with the 2019 GRC application filings in a second interim accountability report. The stated purpose of the interim accountability reports is to provide data and metrics for key safety and risk mitigation areas that will be considered in the 2019 GRC. The results of the rate case may materially and adversely differ from what is contained in the GRC applications. Risk Assessment Mitigation Phase Reporting and Impact on the 2019 GRC Application Filings In December 2014, the CPUC issued a decision incorporating a risk-based decision-making framework into all future GRC application filings for major natural gas and electric utilities in California. The framework is intended to assist in assessing safety risks and the utilities’ plans to help ensure that such risks are adequately addressed. In advance of filing the California Utilities’ 2019 GRC applications discussed above, two proceedings occurred: the Safety Model Assessment Proceeding and the RAMP. In the Safety Model Assessment Proceeding, the California Utilities demonstrated the models used to prioritize and mitigate risks in order for the CPUC to establish guidelines and standards for these models. In November 2016, as part of the new framework, SDG&E and SoCalGas filed their first RAMP report presenting a comprehensive assessment of their key safety risks and proposed activities for mitigating such risks. The report details these key safety risks, which include critical operational issues such as natural gas pipeline safety and wildfire safety, and addresses their classification, scoring, mitigation, alternatives, safety culture, quantitative analysis, data collection and lessons learned. In March 2017, the CPUC’s Safety and Enforcement Division issued its evaluation report providing generally favorable feedback on the California Utilities’ RAMP report, but recommending more detailed analysis of the risks the California Utilities presented in the report. The new GRC framework does not require the CPUC to adopt the RAMP report. However, SDG&E and SoCalGas included funding requests in their respective 2019 GRC filings for proposed projects or activities outlined in their RAMP reports. In April 2018, the CPUC granted SDG&E’s and SoCalGas’ motion to close the proceeding, as all RAMP procedures have been completed. Senate Bill 549. In September 2017, SB 549 was signed into law, requiring that SDG&E and SoCalGas (as electric and gas corporations) annually notify the CPUC when revenue authorized by the CPUC for maintenance, safety or reliability is redirected to other purposes. This requirement is effective beginning January 1, 2018. The form of this reporting is not yet defined by the CPUC, though it could be incorporated into an ongoing proceeding or report otherwise required to be submitted to the CPUC. 2016 General Rate Case As we discuss in Notes 6 and 14 of the Notes to Consolidated Financial Statements in the Annual Report, the 2016 GRC FD issued by the CPUC in June 2016 required SDG&E and SoCalGas to each establish a two-way income tax expense memorandum account to track certain revenue variances resulting from certain differences between the income tax expense forecasted in the GRC and the income tax expense incurred from 2016 through 2018. The tracking accounts will remain open until the CPUC decides to close the accounts, which we expect will be reviewed in the 2019 GRC proceedings. At March 31, 2018, the recorded regulatory liability associated with these tracked amounts totaled $67 million and $77 million for SDG&E and SoCalGas, respectively. The recorded liability is primarily related to lower income tax expense incurred than was forecasted in the GRC relating to tax repairs deductions, self-developed software deductions and certain book-over-tax depreciation. Impacts of the TCJA. As we discuss in Note 1, in the fourth quarter of 2017, we recorded the effect of the remeasurement of our deferred income tax balances at the new federal statutory income tax rate enacted by the TCJA. The remeasurement of deferred income tax balances at SDG&E and SoCalGas resulted in excess deferred income taxes from amounts previously collected from ratepayers at the higher rate. These excess deferred income taxes have been recorded as regulatory liabilities and will be refunded to ratepayers in accordance with the IRC’s normalization provisions and as determined by the CPUC and the FERC. The income tax effects from the TCJA that we recorded in 2017 were provisional. We may adjust our provisional estimates in future reporting periods throughout 2018, and these adjustments may affect regulatory liabilities, the tracking accounts and/or earnings. The 2016 GRC FD revenue requirement was authorized using a federal income tax rate of 35 percent. As a result of the TCJA, the federal income tax rate became 21 percent effective January 1, 2018. Since SDG&E and SoCalGas continue to collect 2018 authorized revenues based on a 35 percent tax rate, SDG&E and SoCalGas are recording revenue deferrals, aligned with authorized seasonality factors, that reflect the estimated reduction in the 2018 revenue requirement. As of March 31, 2018, SDG&E and SoCalGas recorded regulatory liabilities of $18 million and $19 million , respectively, in anticipation of amounts that will benefit customers in future rates. SDG&E also recorded a $15 million regulatory liability at March 31, 2018 for its FERC jurisdiction in anticipation of amounts that will benefit customers in future rates for the decrease in the federal income tax rate. CPUC Cost of Capital In October 2017, the CPUC approved the embedded cost of debt presented in the filed advice letters, resulting in a revised return on rate base for SDG&E of 7.55 percent and for SoCalGas of 7.34 percent , effective January 1, 2018, as depicted in the table below: AUTHORIZED COST OF CAPITAL AND RATE STRUCTURE – CPUC SDG&E SoCalGas Authorized weighting Return on rate base Weighted rate base Authorized weighting Return on Weighted 45.25 % 4.59 % 2.08 % Long-Term Debt 45.60 % 4.33 % 1.97 % 2.75 6.22 0.17 Preferred Stock 2.40 6.00 0.14 52.00 10.20 5.30 Common Equity 52.00 10.05 5.23 100.00 % 7.55 % 100.00 % 7.34 % As a result of the updates included in the filed advice letters, the impact of the changes to the embedded cost of debt and return on rate base is summarized below: IMPACT OF THE EMBEDDED COST OF DEBT SDG&E SoCalGas Cost of debt Return on rate base Cost of Return on Previously 5.00 % 7.79 % 5.77 % 8.02 % Authorized, effective January 1, 2018 4.59 % 7.55 % 4.33 % 7.34 % Differences (41 ) bps (24 ) bps (144 ) bps (68 ) bps We provide below updates to ongoing matters related to SONGS, a nuclear generating facility near San Clemente, California that ceased operations in June 2013, and in which SDG&E has a 20 -percent ownership interest. We discuss SONGS further in Note 13 of the Notes to Consolidated Financial Statements in the Annual Report. SONGS STEAM GENERATOR REPLACEMENT PROJECT As part of the SGRP, the steam generators were replaced in SONGS Units 2 and 3, and the Units returned to service in 2010 and 2011, respectively. Both Units were shut down in early 2012 after a water leak occurred in the Unit 3 steam generator. Edison concluded that the leak was due to unexpected wear from tube-to-tube contact. At the time the leak was identified, Edison also inspected and tested Unit 2 and subsequently found unexpected tube wear in Unit 2’s steam generator. These issues with the steam generators ultimately resulted in Edison’s decision to permanently retire SONGS. The replacement steam generators were designed and provided by MHI. In 2013, Edison instituted arbitration proceedings against MHI seeking recovery of damages. The other SONGS co-owners, SDG&E and the City of Riverside, participated as claimants and respondents. On March 13, 2017, the International Chamber of Commerce International Court of Arbitration Tribunal (the Tribunal) overseeing the arbitration found MHI liable for breach of contract, subject to a contractual limitation of liability, and rejected the claimants’ other claims. The Tribunal awarded $118 million in damages to the SONGS co-owners, but determined that MHI was the prevailing party and awarded it 95 percent of its arbitration costs. The damage award was offset by these costs, resulting in a net award of approximately $60 million in favor of the SONGS co-owners. SDG&E’s specific allocation of the damage award was $24 million reduced by costs awarded to MHI of approximately $12 million , resulting in a net damage award of $12 million , which was paid by MHI to SDG&E in March 2017. In accordance with the Amended Settlement Agreement discussed below, SDG&E recorded the proceeds from the MHI arbitration by reducing Operation and Maintenance for previously incurred legal costs of $11 million , and shared the remaining $1 million equally between ratepayers and shareholders. SETTLEMENT AGREEMENT TO RESOLVE THE CPUC’S ORDER INSTITUTING INVESTIGATION INTO THE SONGS OUTAGE In 2012, in response to the SONGS outage, the CPUC issued the SONGS OII, which was intended to determine the ultimate recovery of the investment in SONGS and the costs incurred since the commencement of this outage. In November 2014, the CPUC issued a final decision approving an Amended Settlement Agreement in the SONGS OII proceeding. We describe the terms and provisions of the Amended Settlement Agreement in Note 13 of the Notes to Consolidated Financial Statements in the Annual Report. In May 2016, following the filing of petitions for modification by various parties, the CPUC issued a procedural ruling reopening the record of the OII to address the issue of whether the Amended Settlement Agreement is reasonable and in the public interest. In December 2016, the CPUC issued another procedural ruling directing parties to the SONGS OII to determine whether an agreement could be reached to modify the Amended Settlement Agreement previously approved by the CPUC, to resolve allegations that unreported ex parte communications between Edison and the CPUC resulted in an unfair advantage at the time the settlement agreement was negotiated. On January 30, 2018, SDG&E, Edison, ORA, TURN and other intervenors entered into a settlement agreement (the Revised Settlement Agreement). On the same date, a Joint Motion for Adoption of the Settlement Agreement was filed with the CPUC. If approved by the CPUC, the Revised Settlement Agreement will resolve all issues under consideration in the SONGS OII and will modify the Amended Settlement Agreement. The Revised Settlement Agreement was the result of multiple mediation sessions in 2017 and January 2018 and was signed following a settlement conference in the SONGS OII, as required under CPUC rules. In February 2018, the parties filed a motion to stay the proceedings in the OII pending the CPUC’s consideration of the Revised Settlement Agreement. In February and March of 2018, the CPUC granted the parties’ request and established a procedural schedule for 2018 that includes additional testimony, a status conference and briefing, and public participation and evidentiary hearings in April through July. The Revised Settlement Agreement is subject to CPUC approval. The parties to the Revised Settlement Agreement have agreed to exercise their best efforts to obtain CPUC approval. In the event that the CPUC fails to approve the Revised Settlement Agreement, the proceeding will remain open and subject to previous rulings in the SONGS OII, and the Amended Settlement Agreement will remain in effect, unless it is modified or set aside by the CPUC as a result of the OII proceeding. In connection with the Revised Settlement Agreement, and in exchange for the release of certain SONGS-related claims, SDG&E and Edison entered into the Utility Shareholder Agreement, described below, in which Edison has agreed to pay for the amounts that SDG&E would have received in rates under the Amended Settlement Agreement but would not receive upon implementation of the Revised Settlement Agreement. The Utility Shareholder Agreement is not subject to the approval of the CPUC. However, it is not effective unless and until the CPUC approves the Revised Settlement Agreement. The timing of a ruling by the CPUC on the Joint Motion for Adoption of the Settlement Agreement is unclear. There is no assurance that the Revised Settlement Agreement will be adopted or that the Amended Settlement Agreement will not be modified or set aside as a result of the OII proceeding, which could result in a substantial reduction in our expected recovery or in no recovery and payments to customers. These outcomes could have a material adverse effect on Sempra Energy’s and SDG&E’s results of operations, financial condition and cash flows. Disallowances, Refunds and Recoveries If the Revised Settlement Agreement is approved by the CPUC, SDG&E and Edison will cease rate recovery of SONGS costs as authorized under the Amended Settlement Agreement as of the date their combined remaining SONGS regulatory assets equal $775 million (the Cessation Date). Currently, the estimated Cessation Date is December 19, 2017. The Cessation Date is partly dependent on the outcome of Edison’s pending request to the CPUC, in a separate proceeding, for approval to apply certain proceeds received from the DOE to reduce Edison’s SONGS regulatory asset. If this request is rejected by the CPUC, then the estimated Cessation Date will be April 21, 2018. In either case, under the Utility Shareholder Agreement, Edison is obligated to pay SDG&E the full amount of SDG&E’s revenue requirement not recovered from ratepayers, as described below. SDG&E and Edison will refund to customers SONGS-related amounts recovered in rates after the Cessation Date. In the event that the CPUC takes an action that has the effect of invalidating the Utility Shareholder Agreement, SDG&E may, in its discretion, withdraw from the Revised Settlement Agreement, in which case Edison shall remain a party to the Revised Settlement Agreement, but the Revised Settlement Agreement shall be terminated as to SDG&E. In such a scenario, SDG&E would return to its litigation position before the CPUC in the SONGS OII that existed prior to the Revised Settlement Agreement. Pursuant to the CPUC’s rules, no settlement becomes binding unless the CPUC approves the settlement based on a finding that it is reasonable in light of the whole record, consistent with law, and in the public interest. The CPUC has discretion to approve or disapprove a settlement, or to condition its approval on changes to the settlement, which the parties may accept or reject, negotiating in good faith to seek a resolution acceptable to all parties. CPUC rules do not provide for any fixed time period for the CPUC to act on proposed settlements. Utility Shareholder Agreement On January 10, 2018, SDG&E and Edison entered into the Utility Shareholder Agreement. Under the terms of the Utility Shareholder Agreement, Edison has an obligation to compensate SDG&E for the revenue requirement amounts that SDG&E would no longer recover because of the Revised Settlement Agreement. In exchange for Edison’s reimbursement, the parties will mutually release each other from the “SONGS Issues,” a defined term that consists of 18 broad categories. The effect of the agreement is that the parties will release each other from any and all claims that each party had or could have asserted related to the steam generator replacement failure and its aftermath. The Utility Shareholder Agreement becomes effective only upon CPUC approval of the Revised Settlement Agreement. Edison’s payment obligation commences 30 days after the first fiscal quarter in which the CPUC approves the Revised Settlement Agreement, and amounts are due to SDG&E quarterly thereafter until April 2022, which approximates the amounts and timing of amounts of what would have been SDG&E’s recoveries from ratepayers contemplated under the Amended Settlement Agreement. Accounting and Financial Impacts As a result of the Revised Settlement Agreement by the settling parties and the Utility Shareholder Agreement, at March 31, 2018, SDG&E has a receivable from Edison totaling $153 million , $42 million classified as current and $111 million classified as noncurrent. This receivable reflects amounts Edison is obligated to pay to SDG&E in lieu of amounts SDG&E would have collected from ratepayers associated with the SONGS regulatory asset, which SDG&E believes is now no longer probable of recovery. Assuming the Revised Settlement Agreement is approved, SDG&E and Sempra Energy do not expect that implementation of the Revised Settlement Agreement in combination with the Utility Shareholder Agreement will have a material adverse impact on either company. However, until the CPUC approves the Revised Settlement Agreement as proposed, there can be no assurance that the SONGS OII proceeding will conclude as contemplated by SDG&E in accordance with the Revised Settlement Agreement and the Utility Shareholder Agreement, or that the CPUC will not order refunds to customers above those contemplated by the Amended Settlement Agreement, or take other action that may be adverse to SDG&E and Sempra Energy. Such alternative outcomes could have a material adverse effect on SDG&E’s and Sempra Energy’s results of operations, financial condition and cash flows. NUCLEAR DECOMMISSIONING AND FUNDING As a result of Edison’s decision to permanently retire SONGS Units 2 and 3, Edison began the decommissioning phase of the plant. Decommissioning of Unit 1, removed from service in 1992, is largely complete. The remaining work for Unit 1 will be done once Units 2 and 3 are dismantled. Edison contracted with a joint venture of AECOM and EnergySolutions (known as SONGS Decommissioning Solutions) as the general contractor to complete the dismantlement of SONGS. The majority of the dismantlement work is expected to take 10 years . SDG&E is responsible for approximately 20 percent of the total contract price. In accordance with state and federal requirements and regulations, SDG&E has assets held in the NDT to fund its share of decommissioning costs for SONGS Units 1, 2 and 3. The amounts collected in rates for SONGS’ decommissioning are invested in the NDT, which is comprised of externally managed trust funds. Amounts held by the NDT are invested in accordance with CPUC regulations. The NDT assets are presented on the Sempra Energy and SDG&E Condensed Consolidated Balance Sheets at fair value with the offsetting credits recorded in noncurrent Regulatory Liabilities. In March 2018, SDG&E and Edison jointly filed an application requesting CPUC approval of revised remaining decommissioning cost estimates (for costs estimated to be incurred in 2018 and beyond) for SONGS Unit 1 of $207 million (in 2014 dollars), of which SDG&E’s share is $41 million , and SONGS Units 2 and 3 of $3.2 billion (in 2014 dollars), of which SDG&E’s share is $638 million . In addition, SDG&E has estimated internal decommissioning costs of $3 million (in 2014 dollars) for SONGS Unit 1 and $43 million (in 2014 dollars) for SONGS Units 2 and 3. We expect a ruling by the CPUC on the joint application in 2019. Except for the use of funds for the planning of decommissioning activities or NDT administrative costs, CPUC approval is required for SDG&E to access the NDT assets to fund SONGS decommissioning costs for Units 2 and 3. SDG&E has received authorization from the CPUC to access NDT funds of up to $362 million for 2013 through 2018 (2018 forecasted) SONGS decommissioning costs. This includes up to $60 million authorized by the CPUC in January 2018 to be withdrawn from the NDT for forecasted 2018 SONGS Units 2 and 3 costs as decommissioning costs are incurred. In December 2016, the IRS and the U.S. Department of the Treasury issued proposed regulations that clarify the definition of “nuclear decommissioning costs,” which are costs that may be paid for or reimbursed from a qualified trust fund. The proposed regulations state that costs related to the construction and maintenance of independent spent fuel management installations are included in the definition of “nuclear decommissioning costs.” The proposed regulations will be effective prospectively once they are finalized; however, the IRS has stated that it will not challenge taxpayer positions consistent with the proposed regulations for taxable years ending on or after the date the proposed regulations were issued. SDG&E is awaiting the adoption of, or additional refinement to, the proposed regulations before determining whether the proposed regulations will allow SDG&E to access the NDT funds for reimbursement or payment of the spent fuel management costs incurred in 2016 and subsequent years. Further clarification of the proposed regulations could enable SDG&E to access the NDT to recover spent fuel management costs before Edison reaches final settlement with the DOE regarding the DOE’s reimbursement of these costs. Historically, the DOE’s reimbursements of spent fuel storage costs have not resulted in timely or complete recovery of these costs. We discuss the DOE’s responsibility for spent nuclear fuel below. The IRS held public hearings on the proposed regulations in October 2017. It is unclear when clarification of the proposed regulations might be provided or when the proposed regulations will be finalized. The following table shows the fair values and gross unrealized gains and losses for the securities held in the NDT. We provide additional fair value disclosures for the NDT in Note 9. NUCLEAR DECOMMISSIONING TRUSTS (Dollars in millions) Cost Gross unrealized gains Gross unrealized losses Estimated fair value At March 31, 2018: Debt securities: Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies (1) $ 44 $ — $ — $ 44 Municipal bonds (1) 245 4 (2 ) 247 Other securities (2) 217 2 (3 ) 216 Total debt securities 506 6 (5 ) 507 Equity securities 172 321 (2 ) 491 Cash and cash equivalents 19 — — 19 Total $ 697 $ 327 $ (7 ) $ 1,017 At December 31, 2017: Debt securities: Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies $ 54 $ — $ — $ 54 Municipal bonds 245 7 (2 ) 250 Other securities 215 3 (1 ) 217 Total debt securities 514 10 (3 ) 521 Equity securities 171 326 (1 ) 496 Cash and cash equivalents 16 — — 16 Total $ 701 $ 336 $ (4 ) $ 1,033 (1) Maturity dates are 2018-2048. (2) Maturity dates are 2018-2064. The following table shows the proceeds from sales of securities in the NDT and gross realized gains and losses on those sales: SALES OF SECURITIES IN THE NDT (Dollars in millions) Three months ended 2018 2017 Proceeds from sales (1) $ 210 $ 357 Gross realized gains 4 45 Gross realized losses (3 ) (5 ) (1) Excludes securities that are held to maturity. Net unrealized gains and losses, as well as realized gains and losses that are reinvested in the NDT, are included in noncurrent Regulatory Liabilities on Sempra Energy’s and SDG&E’s Condensed Consolidated Balance Sheets. We determine the cost of securities in the trusts on the basis of specific identification. U.S. DEPARTMENT OF ENERGY NUCLEAR FUEL DISPOSAL Spent nuclear fuel from SONGS is currently stored on-site in an ISFSI licensed by the NRC or temporarily in spent fuel pools. In October 2015, the California Coastal Commission approved Edison’s application for the proposed expansion of the ISFSI at SONGS. The ISFSI expansion began construction in 2016 and is expected to be fully loaded with spent fuel by 2019 and to operate until 2049, when it is assumed that the DOE will have taken custody of all the SONGS spent fuel. The ISFSI would then be decommissioned, and the site restored to its original environmental state. Until then, SONGS owners are responsible for interim storage of spent nuclear fuel at SONGS. The Nuclear Waste Policy Act of 1982 made the DOE responsible for accepting, transporting, and disposing of spent nuclear fuel. However, it is uncertain when the DOE will begin accepting spent nuclear fuel from SONGS. This delay will lead to increased costs for spent fuel storage. SDG&E will continue to support Edison in its pursuit of claims on behalf of the SONGS co-owners against the DOE for its failure to timely accept the spent nuclear fuel. In April 2016, Edison executed a spent fuel settlement agreement with the DOE for $162 million covering damages incurred from 2006 through 2013. In May 2016, Edison refunded SDG&E $32 million for its respective share of the damage award paid. In applying this refund, SDG&E recorded a $23 million reduction to the SONGS regulatory asset, an $8 million reduction of its nuclear decommissioning balancing account and a $1 million reduction in its SONGS O&M cost balancing account. In September 2016, Edison filed claims with the DOE for $56 million in spent fuel management costs incurred in 2014 and 2015 on behalf of the SONGS co-owners under the terms of the 2016 spent fuel settlement agreement. In February 2017, the DOE reduced the request to approximately $43 million primarily due to reductions to the claimed fuel canister costs. SDG&E received its $9 million respective share of the claim from Edison in May 2017 and recorded the proceeds in balancing accounts or as reductions to regulatory assets for the benefit of ratepayers. In October 2017, Edison filed claims with the DOE for $58 million in spent fuel management costs incurred in 2016 on behalf of the SONGS co-owners under the terms of the 2016 spent fuel settlement agreement. SDG&E’s respective share of the claim is $12 million . In March 2018, the DOE issued its determination of allowable costs for the claim as $44 million with SDG&E’s respective share as $9 million . In April 2018, Edison requested reconsideration from the DOE of $1 million of the DOE’s deductions from the claimed amount. We expect the request for reconsideration to extend the claims process by a minimum of two months. It is unclear whether the DOE will approve the request and how much of the disputed amount will be recovered, if any. The 2016 spent fuel settlement agreement governs the submission of claims for costs incurred through December 31, 2016. It is unclear whether Edison will enter into a new settlement with the DOE or pursue litigation claims for spent fuel management costs incurred on or after January 1, 2017. NUCLEAR INSURANCE Edison requested and was granted approval in January 2018 by the NRC to reduce the nuclear liability and property damage insurance requirement. However, these changes in SONGS nuclear insurance levels require approval from all SONGS owners, as described below. SDG&E and the other owners of SONGS have insurance to cover claims from nuclear liability incidents arising at SONGS. Currently, this insurance provides $450 million in coverage limits, the maximum amount available, including coverage for acts of terrorism. In addition, the Price-Anderson Act provides an additional $110 million of coverage. If a nuclear liability loss occurs at SONGS and exceeds the $450 million insurance limit, this additional coverage would be available to provide a total of $560 million in coverage limits per incident. The SFP is a program that provides additional insurance. If a nuclear liability loss occurs at any U.S. licensed/commercial reactor and exceeds the $450 million insurance, all SFP participants would be required to contribute to the SFP. Effective January 5, 2018, the NRC approved Ed |
ACQUISTION AND DIVESTITURE ACTI
ACQUISTION AND DIVESTITURE ACTIVITY | 3 Months Ended |
Mar. 31, 2018 | |
Business Combinations [Abstract] | |
Acquistion and divestiture activity | ACQUISITION AND DIVESTITURE ACTIVITY We consolidate assets acquired and liabilities assumed as of the purchase date and include earnings from acquisitions in consolidated earnings after the purchase date. ACQUISITIONS Sempra Texas Utility After satisfying all conditions precedent, including final approval from the PUCT, on March 9, 2018, Sempra Energy completed the acquisition of an indirect, 100 -percent interest in Oncor Holdings, which owned 80.03 percent of Oncor, and other EFH assets and liabilities unrelated to Oncor, pursuant to the Merger Agreement with EFH. Oncor is a regulated electric transmission and distribution business that operates the largest transmission and distribution system in Texas. This acquisition expands our regulated earnings base, while serving as a platform for future growth in the Texas energy market and U.S. Gulf Coast region. Under the Merger Agreement, we paid Merger Consideration of $9.45 billion in cash and an additional $31 million representing an adjustment for dividends and payments pursuant to a tax sharing agreement with Oncor and Oncor Holdings. Also on March 9, 2018, in a separate transaction, Sempra Energy, through its interest in Oncor Holdings, acquired an additional 0.22 percent of the outstanding membership interests in Oncor for approximately $26 million in cash bringing Sempra Energy’s indirect ownership in Oncor to 80.25 percent . The membership interests were previously held by OMI. TTI, an investment vehicle indirectly owned by third parties unaffiliated with Oncor Holdings or Sempra Energy, continues to own 19.75 percent of Oncor’s outstanding membership interests. Pursuant to the Merger Agreement, the reorganized EFH (renamed Sempra Texas Holdings Corp.) has been merged with an indirect subsidiary of Sempra Energy, with Sempra Texas Holdings Corp. continuing as the surviving company and an indirect, wholly owned subsidiary of Sempra Energy. Sempra Texas Holdings Corp. wholly owns EFIH (renamed Sempra Texas Intermediate Holding Company LLC), which holds our 100 -percent interest in Oncor Holdings. Sempra Texas Intermediate Holding Company LLC is included in our newly formed Sempra Texas Utility reportable segment. Other assets and liabilities unrelated to Oncor that were acquired with Sempra Texas Holdings Corp. have been subsumed into our parent organization, Parent and other. Due to the structural and operational ring-fencing measures in place that prevent us from having the power to direct the significant activities of Oncor Holdings and Oncor, upon consummation of the Merger, we account for our 100 -percent ownership interest in Oncor Holdings as an equity method investment. See Note 6 for additional information about our equity method investment in Oncor Holdings and related ring-fencing measures. The Sempra Texas Utility reportable segment is comprised as follows: The foregoing is a simplified ownership structure that does not show all the subsidiaries of, or other equity interests owned by, these entities. In anticipation of the Merger, in January 2018, we completed registered public offerings of our common stock (including shares offered pursuant to forward sale agreements), mandatory convertible preferred stock and long-term debt, as we discuss in Notes 1 and 7 herein and in Note 18 of the Notes to Consolidated Financial Statements in the Annual Report. These offerings provided total initial net proceeds of approximately $7.0 billion for partial funding of the Merger Consideration, of which approximately $800 million was used to temporarily pay down commercial paper, pending the closing of the Merger. On March 8, 2018, to fund a portion of the Merger Consideration, we settled approximately $900 million of forward sales under the forward sale agreements entered into in connection with the public offering of common stock in January 2018 by delivery of 8,556,630 shares of newly issued Sempra Energy common stock, as we discuss in Note 1. We raised the remaining portion of the Merger Consideration through issuances of approximately $2.6 billion in commercial paper with a weighted-average maturity of 47 days and a weighted-average interest rate of 2.2 percent per annum. The total purchase price paid is comprised of the following: ▪ $9,450 million of Merger Consideration; ▪ $31 million adjustment for dividends and payments pursuant to a tax sharing agreement with Oncor and Oncor Holdings; ▪ $26 million paid in a separate transaction to acquire an additional 0.22 percent of the outstanding membership interests in Oncor from OMI; and ▪ $59 million of transaction costs included in the basis of our investment in Oncor Holdings. We accounted for the Merger as an asset acquisition, as the equity method investment in Oncor Holdings represents substantially all of the fair value of the gross assets acquired. The following table sets forth the allocation of the total purchase price paid to the identifiable assets acquired and liabilities assumed: PURCHASE PRICE ALLOCATION (Dollars in millions) Assets acquired: Accounts receivable – other, net $ 1 Due from unconsolidated affiliates 46 Investment in Oncor Holdings 9,161 Deferred income tax assets 353 Other noncurrent assets 109 Total assets acquired 9,670 Liabilities assumed: Other current liabilities 23 Pension and other postretirement benefit plan obligations 21 Deferred credits and other 60 Total liabilities assumed 104 Net assets acquired $ 9,566 Total purchase price paid $ 9,566 The fair value of the equity method investment in Oncor Holdings is primarily attributable to Oncor’s business. Therefore, we considered the underlying assets and liabilities of Oncor when determining the fair value of our equity method investment. As a regulated entity, Oncor’s rates are set and approved by the PUCT, and are designed to recover the cost of providing service and the opportunity to earn a reasonable return on its investments. Accordingly, Oncor applies the guidance under the provisions of U.S. GAAP governing rate-regulated operations. Under U.S. GAAP, regulation is viewed as being a characteristic (restriction) of a regulated entity’s assets and liabilities, and the impact of regulation is considered a fundamental input to measuring the fair value of Oncor’s assets and liabilities. Under this premise, we concluded that the carrying values of all recoverable assets and liabilities are representative of their fair values. Deferred income tax assets acquired have been recognized based on the facts and circumstances that existed as of the acquisition date related to the resolution of claims in EFH’s emergence from bankruptcy. Should the final resolution of these claims result in a change in deferred income tax assets allocated to us, an adjustment will be made to the purchase price allocation. Sempra Mexico On February 28, 2018, Sempra Mexico completed the asset acquisition of Fisterra Midstream Mexico, S. de R.L. de C.V. for a purchase price of $5 million . Substantially all of the fair value of the gross assets acquired is attributable to a self-supply permit that allows generators to compete directly with CFE’s retail tariffs and, thus, have access to PPAs with a competitive pricing position. IEnova will invest $130 million to develop, construct and operate the Don Diego Solar Complex, a 125 -MW solar facility in Sonora, Mexico. IEnova entered into a 15 -year, U.S. dollar denominated PPA with various subsidiaries of El Puerto de Liverpool, S.A.B. de C.V. for a portion of the capacity. We expect operations to commence in the second half of 2019. ASSETS HELD FOR SALE We classify assets as held for sale when management approves and commits to a formal plan to actively market an asset for sale and we expect the sale to close within the next 12 months . Upon classifying an asset as held for sale, we record the asset at the lower of its carrying value or its estimated fair value reduced for selling costs. Sempra Mexico Termoeléctrica de Mexicali In February 2016, management approved a plan to market and sell Sempra Mexico’s TdM, a 625 -MW natural gas-fired power plant located in Mexicali, Baja California, Mexico, as we discuss in Note 3 of the Notes to Consolidated Financial Statements in the Annual Report. As a result, we stopped depreciating the plant and classified it as held for sale. In connection with TdM’s classification as held for sale, we recognized a $5 million income tax benefit for the three months ended March 31, 2017 for a deferred Mexican income tax liability related to the excess of the tax basis over carrying value. We continue to actively pursue the sale of TdM, which we expect to be completed in 2018. At March 31, 2018 , the carrying amounts of the major classes of assets and related liabilities held for sale associated with TdM are as follows: ASSETS HELD FOR SALE AT MARCH 31, 2018 (Dollars in millions) Termoeléctrica de Mexicali Inventories $ 10 Other current assets 64 Property, plant and equipment, net 55 Other noncurrent assets 6 Total assets held for sale $ 135 Accounts payable $ 2 Other current liabilities 38 Asset retirement obligations 5 Other noncurrent liabilities 7 Total liabilities held for sale $ 52 |
INVESTMENTS IN UNCONSOLIDATED E
INVESTMENTS IN UNCONSOLIDATED ENTITIES | 3 Months Ended |
Mar. 31, 2018 | |
Investments [Abstract] | |
Investments in Unconsolidated Entities | INVESTMENTS IN UNCONSOLIDATED ENTITIES Sempra Energy uses the equity method to account for investments in affiliated companies over which we have the ability to exercise significant influence, but not control. Equity earnings (losses) both before and net of income tax are combined and presented as Equity Losses on the Condensed Consolidated Statements of Operations. See Note 1 for a reconciliation of pretax income used to calculate our ETR. Our equity method investments include various domestic and foreign entities. Our domestic equity method investees are typically partnerships that are pass-through entities for income tax purposes and therefore they do not record income tax. Sempra Energy’s income tax on earnings from these equity method investees, other than Oncor Holdings as we discuss below, is included in Income Tax Expense on the Condensed Consolidated Statements of Operations. Oncor is a partnership for U.S. federal income tax purposes and is not included in the consolidated income tax return of Sempra Energy. Rather, only our equity earnings from our investment in Oncor Holdings (a disregarded entity for tax purposes) are included in our consolidated income tax return. A tax sharing agreement with TTI, Oncor Holdings and Oncor provides for the calculation of an income tax liability substantially as if Oncor Holdings and Oncor were taxed as corporations, and requires tax payments determined on that basis. While partnerships are not subject to income taxes, in consideration of the tax sharing agreement and Oncor being subject to the provisions of U.S. GAAP governing rate-regulated operations, Oncor recognizes amounts determined under cost-based regulatory rate-setting processes (with such costs including income taxes), as if it were taxed as a corporation. As a result, since Oncor Holdings consolidates Oncor, we recognize equity earnings from our investment in Oncor Holdings net of its recorded income tax. Our foreign equity method investees are corporations whose operations are taxable on a stand-alone basis in the countries in which they operate, and we recognize our equity in such income or losses net of investee income tax. We may be subject to additional taxes related to these foreign investments, such as taxes on cash dividends or other cash distributions, which are recorded in Income Tax Expense on the Condensed Consolidated Statements of Operations. We provide additional information concerning our equity method investments in Note 5 above and in Notes 3 and 4 of the Notes to Consolidated Financial Statements in the Annual Report. SEMPRA TEXAS UTILITY As we discuss in Note 5, on March 9, 2018, we completed the acquisition of an indirect, 100 -percent interest in Oncor Holdings, which owns an 80.25 -percent interest in Oncor. Due to the structural and operational ring-fencing measures in place that prevent us from having the power to direct the significant activities of Oncor Holdings and Oncor, which we discuss in the following paragraph, we account for our investment in Oncor Holdings under the equity method, which comprises our newly formed Sempra Texas Utility reportable segment. As we discuss in Note 5, reorganized EFH (renamed Sempra Texas Holdings Corp.) was merged with an indirect subsidiary of Sempra Energy and its assets and liabilities relating to non-Oncor operations have been subsumed into our parent organization. Certain existing ring-fencing measures, governance mechanisms and restrictions remain in effect following the Merger, which are intended to enhance Oncor Holdings’ and Oncor’s separateness from their owners and to mitigate the risk that these entities would be negatively impacted by the bankruptcy of, or other adverse financial developments affecting, EFH or its other subsidiaries or the owners of EFH. Sempra Energy does not control Oncor Holdings or Oncor, and the ring-fencing measures, governance mechanisms and restrictions limit our ability to direct the management, policies and operations of Oncor Holdings and Oncor, including the deployment or disposition of their assets, declarations of dividends, strategic planning and other important corporate issues and actions. These limitations include limited representation on the Oncor Holdings and Oncor boards of directors, as Oncor Holdings and Oncor will continue to have a majority of independent directors. Thus, Oncor Holdings and Oncor will continue to be managed independently (i.e., ring-fenced). As such, upon consummation of the acquisition, we account for our 100 -percent ownership interest in Oncor Holdings as an equity method investment. The initial fair value of our equity method investment was $9,161 million , which includes $2,672 million of equity method goodwill related to the excess of purchase price paid over the fair value of the assets and liabilities of Oncor Holdings. For the three months ended March 31, 2018, we recognized $15 million in equity earnings, net of income tax, for the period since the acquisition date. We contributed $117 million in cash, commensurate with our ownership interest, to Oncor on April 23, 2018 in accordance with the terms of the Merger Agreement to enable Oncor to achieve its required capital structure calculated for regulatory purposes. Summarized income statement information for Oncor Holdings for the period from the March 9, 2018 acquisition date is as follows: SUMMARIZED FINANCIAL INFORMATION – ONCOR HOLDINGS (Dollars in millions) March 9 - March 31, 2018 Gross revenues $ 236 Operating expense (185 ) Income from operations 51 Interest expense (22 ) Income tax expense (7 ) Net income 19 Earnings 15 SEMPRA SOUTH AMERICAN UTILITIES In the first quarter of 2017, Sempra South American Utilities recorded the equitization of its $19 million note receivable due from Eletrans, resulting in an increase in its investment in this unconsolidated joint venture. SEMPRA MEXICO Sempra Mexico invested cash of $25 million and $46 million in its unconsolidated joint ventures in the three months ended March 31, 2018 and 2017, respectively. SEMPRA LNG & MIDSTREAM Sempra LNG & Midstream capitalized $11 million of interest in each of the three months ended March 31, 2018 and 2017 related to its investment in Cameron LNG JV, which has not commenced planned principal operations. In the three months ended March 31, 2018 and 2017, Sempra LNG & Midstream invested cash of $29 million and $1 million , respectively, and in April 2018 invested cash of $32 million , in this unconsolidated joint venture. GUARANTEES At March 31, 2018 , we had outstanding guarantees aggregating a maximum of $4.5 billion with an aggregate carrying value of $31 million |
DEBT AND CREDIT FACILITIES
DEBT AND CREDIT FACILITIES | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Debt and Credit Facilities | DEBT AND CREDIT FACILITIES LINES OF CREDIT On January 17, 2018, pursuant to the terms of the Sempra Energy and Sempra Global credit facilities, the amounts available under the lines of credit were increased by $250 million , from $1.0 billion to $1.25 billion , for Sempra Energy and by $850 million , from $2.335 billion to $3.185 billion , for Sempra Global. At March 31, 2018 , Sempra Energy Consolidated had an aggregate of approximately $5.4 billion in three primary committed lines of credit for Sempra Energy, Sempra Global and the California Utilities to provide liquidity and to support commercial paper. The principal terms of these committed lines of credit, which expire in October 2020, are described below and in Note 5 of the Notes to Consolidated Financial Statements in the Annual Report. Available unused credit on these lines at March 31, 2018 was approximately $2.2 billion . Our foreign operations have additional general purpose credit facilities aggregating $1.7 billion , with $1.3 billion available unused credit at March 31, 2018 . PRIMARY U.S. COMMITTED LINES OF CREDIT (Dollars in millions) March 31, 2018 Total facility Commercial paper outstanding (1) Adjustment for combined limit Available unused credit Sempra Energy (2) $ 1,250 $ — $ — $ 1,250 Sempra Global (3) 3,185 (2,826 ) — 359 California Utilities (4) : SDG&E 750 (340 ) — 410 SoCalGas 750 (100 ) (90 ) 560 Less: combined limit of $1 billion for both utilities (500 ) — 90 (410 ) 1,000 (440 ) — 560 Total $ 5,435 $ (3,266 ) $ — $ 2,169 (1) Because the commercial paper programs are supported by these lines, we reflect the amount of commercial paper outstanding as a reduction to the available unused credit. (2) The facility also provides for issuance of up to $400 million of letters of credit on behalf of Sempra Energy with the amount of borrowings otherwise available under the facility reduced by the amount of outstanding letters of credit. No letters of credit were outstanding at March 31, 2018. (3) Sempra Energy guarantees Sempra Global’s obligations under the credit facility. (4) The facility also provides for the issuance of letters of credit on behalf of each utility, subject to a combined letter of credit commitment of $250 million for both utilities. The amount of borrowings otherwise available under the facility is reduced by the amount of outstanding letters of credit. No letters of credit were outstanding at March 31, 2018. Sempra Energy, SDG&E and SoCalGas must maintain a ratio of indebtedness to total capitalization (as defined in each of the applicable credit facilities) of no more than 65 percent at the end of each quarter. Each entity is in compliance with this and all other financial covenants under its respective credit facility at March 31, 2018 . CREDIT FACILITIES IN SOUTH AMERICA AND MEXICO (U.S. dollar-equivalent in millions) March 31, 2018 Denominated in Total facility Amount outstanding Available unused credit Sempra South American Utilities (1) : Peru (2) Peruvian sol $ 455 $ (103 ) (3) $ 352 Chile Chilean peso 115 — 115 Sempra Mexico: IEnova (4) U.S. dollar 1,170 (312 ) 858 Total $ 1,740 $ (415 ) $ 1,325 (1) The credit facilities were entered into to finance working capital and for general corporate purposes and expire between 2018 and 2021. (2) The Peruvian facilities require a debt to equity ratio of no more than 170 percent , with which we were in compliance at March 31, 2018. (3) Includes bank guarantees of $17 million . (4) Five -year revolver expiring in August 2020 with a syndicate of eight lenders. Outside of these domestic and foreign committed credit facilities, we have bilateral unsecured standby letter of credit capacity with select lenders that is uncommitted and supported by reimbursement agreements. At March 31, 2018, we had approximately $498 million in standby letters of credit outstanding under these agreements. WEIGHTED AVERAGE INTEREST RATES The weighted average interest rates on total short-term debt at Sempra Energy Consolidated were 2.52 percent and 1.92 percent at March 31, 2018 and December 31, 2017 , respectively. The weighted average interest rates on total short-term debt at SDG&E were 1.85 percent and 1.65 percent at March 31, 2018 and December 31, 2017 , respectively. The weighted average interest rates on total short-term debt at SoCalGas were 1.75 percent and 1.64 percent at March 31, 2018 and December 31, 2017 , respectively. LONG-TERM DEBT Sempra Energy On January 12, 2018, we issued the following debt securities and received net proceeds of $4.9 billion (after deducting discounts and debt issuance costs of $68 million ): NOTES ISSUED IN LONG-TERM DEBT OFFERING (Dollars in millions) Title of each class of securities Aggregate principal amount Maturity Interest payments Floating Rate (1) Notes due 2019 $ 500 July 15, 2019 Quarterly Floating Rate (2) Notes due 2021 700 January 15, 2021 Quarterly 2.400% Senior Notes due 2020 500 February 1, 2020 Semi-annually 2.900% Senior Notes due 2023 500 February 1, 2023 Semi-annually 3.400% Senior Notes due 2028 1,000 February 1, 2028 Semi-annually 3.800% Senior Notes due 2038 1,000 February 1, 2038 Semi-annually 4.000% Senior Notes due 2048 800 February 1, 2048 Semi-annually (1) Bears interest at a rate per annum equal to the 3-month LIBOR rate, plus 25 bps. (2) Bears interest at a rate per annum equal to the 3-month LIBOR rate, plus 50 bps. The Floating Rate Notes due 2019 are not subject to redemption at our option. At our option, we may redeem some or all of the Floating Rate Notes due 2021 at any time on or after January 14, 2019 at the applicable redemption price per the terms of the notes. At our option, we may redeem some or all of the fixed rate notes of each series at any time at the applicable redemption price for such series of fixed rate notes. We used a substantial portion of the net proceeds from this offering to finance a portion of the Merger Consideration and associated transaction costs, as we discuss in Note 5, and approximately $800 million to temporarily pay down commercial paper. Ranking The notes are unsecured and unsubordinated obligations, ranking on a parity in right of payment with all of our other unsecured and unsubordinated indebtedness and guarantees. The notes are effectively subordinated to all existing and future indebtedness and other liabilities of Oncor Holdings, Oncor and their respective subsidiaries. INTEREST RATE SWAPS |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 3 Months Ended |
Mar. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | DERIVATIVE FINANCIAL INSTRUMENTS We use derivative instruments primarily to manage exposures arising in the normal course of business. Our principal exposures are commodity market risk, benchmark interest rate risk and foreign exchange rate exposures. Our use of derivatives for these risks is integrated into the economic management of our anticipated revenues, anticipated expenses, assets and liabilities. Derivatives may be effective in mitigating these risks (1) that could lead to declines in anticipated revenues or increases in anticipated expenses, or (2) that our asset values may fall or our liabilities increase. Accordingly, our derivative activity summarized below generally represents an impact that is intended to offset associated revenues, expenses, assets or liabilities that are not included in the tables below. In certain cases, we apply the normal purchase or sale exception to derivative instruments and have other commodity contracts that are not derivatives. These contracts are not recorded at fair value and are therefore excluded from the disclosures below. In all other cases, we record derivatives at fair value on the Condensed Consolidated Balance Sheets. We designate each derivative as (1) a cash flow hedge, (2) a fair value hedge, or (3) undesignated. Depending on the applicability of hedge accounting and, for the California Utilities and other operations subject to regulatory accounting, the requirement to pass impacts through to customers, the impact of derivative instruments may be offset in OCI (cash flow hedge), on the balance sheet (fair value hedges and regulatory offsets), or recognized in earnings. We classify cash flows from the principal settlements of cross-currency swaps that hedge exposure related to Mexican peso-denominated debt as financing activities, and settlements of other derivative instruments as operating activities, on the Condensed Consolidated Statements of Cash Flows. HEDGE ACCOUNTING We may designate a derivative as a cash flow hedging instrument if it effectively converts anticipated cash flows associated with revenues or expenses to a fixed dollar amount. We may utilize cash flow hedge accounting for derivative commodity instruments, foreign currency instruments and interest rate instruments. Designating cash flow hedges is dependent on the business context in which the instrument is being used, the effectiveness of the instrument in offsetting the risk that the future cash flows of a given revenue or expense item may vary, and other criteria. We may designate an interest rate derivative as a fair value hedging instrument if it effectively converts our own debt from a fixed interest rate to a variable rate. The combination of the derivative and debt instrument results in fixing that portion of the fair value of the debt that is related to benchmark interest rates. Designating fair value hedges is dependent on the instrument being used, the effectiveness of the instrument in offsetting changes in the fair value of our debt instruments, and other criteria. ENERGY DERIVATIVES Our market risk is primarily related to natural gas and electricity price volatility and the specific physical locations where we transact. We use energy derivatives to manage these risks. The use of energy derivatives in our various businesses depends on the particular energy market, and the operating and regulatory environments applicable to the business, as follows: ▪ The California Utilities use natural gas and electricity derivatives, for the benefit of customers, with the objective of managing price risk and basis risks, and stabilizing and lowering natural gas and electricity costs. These derivatives include fixed price natural gas and electricity positions, options, and basis risk instruments, which are either exchange-traded or over-the-counter financial instruments, or bilateral physical transactions. This activity is governed by risk management and transacting activity plans that have been filed with and approved by the CPUC. Natural gas and electricity derivative activities are recorded as commodity costs that are offset by regulatory account balances and are recovered in rates. Net commodity cost impacts on the Condensed Consolidated Statements of Operations are reflected in Cost of Electric Fuel and Purchased Power or in Cost of Natural Gas. ▪ SDG&E is allocated and may purchase CRRs, which serve to reduce the regional electricity price volatility risk that may result from local transmission capacity constraints. Unrealized gains and losses do not impact earnings, as they are offset by regulatory account balances. Realized gains and losses associated with CRRs, which are recoverable in rates, are recorded in Cost of Electric Fuel and Purchased Power on the Condensed Consolidated Statements of Operations. ▪ Sempra Mexico, Sempra LNG & Midstream, and Sempra Renewables may use natural gas and electricity derivatives, as appropriate, to optimize the earnings of their assets which support the following businesses: LNG, natural gas transportation and storage, and power generation. Gains and losses associated with undesignated derivatives are recognized in Energy-Related Businesses Revenues or in Cost of Natural Gas, Electric Fuel and Purchased Power on the Condensed Consolidated Statements of Operations. Certain of these derivatives may also be designated as cash flow hedges. Sempra Mexico may also use natural gas energy derivatives with the objective of managing price risk and lowering natural gas prices at its distribution operations. These derivatives, which are recorded as commodity costs that are offset by regulatory account balances and recovered in rates, are recognized in Cost of Natural Gas on the Condensed Consolidated Statements of Operations. ▪ From time to time, our various businesses, including the California Utilities, may use other energy derivatives to hedge exposures such as the price of vehicle fuel and GHG allowances. We summarize net energy derivative volumes at March 31, 2018 and December 31, 2017 as follows: NET ENERGY DERIVATIVE VOLUMES (Quantities in millions) Commodity Unit of measure March 31, December 31, California Utilities: SDG&E: Natural gas MMBtu 33 39 Electricity MWh 3 3 Congestion revenue rights MWh 57 59 Energy-Related Businesses: Sempra LNG & Midstream – natural gas MMBtu 5 3 Sempra Mexico – natural gas MMBtu 17 4 In addition to the amounts noted above, we frequently use commodity derivatives to manage risks associated with the physical locations of contractual obligations and assets, such as natural gas purchases and sales. INTEREST RATE DERIVATIVES We are exposed to interest rates primarily as a result of our current and expected use of financing. The California Utilities, as well as Sempra Energy and its other subsidiaries and joint ventures, periodically enter into interest rate derivative agreements intended to moderate our exposure to interest rates and to lower our overall costs of borrowing. We may utilize interest rate swaps typically designated as fair value hedges, as a means to achieve our targeted level of variable rate debt as a percent of total debt. In addition, we may utilize interest rate swaps, typically designated as cash flow hedges, to lock in interest rates on outstanding debt or in anticipation of future financings. Separately, Otay Mesa VIE has entered into interest rate swap agreements, designated as cash flow hedges, to moderate its exposure to interest rate changes. At March 31, 2018 and December 31, 2017 , the net notional amounts of our interest rate derivatives, excluding joint ventures, were: INTEREST RATE DERIVATIVES (Dollars in millions) March 31, 2018 December 31, 2017 Notional debt Maturities Notional debt Maturities Sempra Energy Consolidated: Cash flow hedges (1) $ 845 2018-2032 $ 861 2018-2032 SDG&E: Cash flow hedge (1) 292 2018-2019 295 2018-2019 (1) Includes Otay Mesa VIE. All of SDG&E’s interest rate derivatives relate to Otay Mesa VIE. FOREIGN CURRENCY DERIVATIVES We utilize cross-currency swaps to hedge exposure related to Mexican peso-denominated debt at our Mexican subsidiaries and joint ventures. These cash flow hedges exchange our Mexican peso-denominated principal and interest payments into the U.S. dollar and swap Mexican variable interest rates for U.S. fixed interest rates. From time to time, Sempra Mexico and its joint ventures may use other foreign currency derivatives to hedge exposures related to cash flows associated with revenues from contracts denominated in Mexican pesos that are indexed to the U.S. dollar. We are also exposed to exchange rate movements at our Mexican subsidiaries and joint ventures, which have U.S. dollar-denominated cash balances, receivables, payables and debt (monetary assets and liabilities) that give rise to Mexican currency exchange rate movements for Mexican income tax purposes. They also have deferred income tax assets and liabilities denominated in the Mexican peso, which must be translated to U.S. dollars for financial reporting purposes. In addition, monetary assets and liabilities and certain nonmonetary assets and liabilities are adjusted for Mexican inflation for Mexican income tax purposes. We utilize foreign currency derivatives as a means to manage the risk of exposure to significant fluctuations in our income tax expense and equity earnings from these impacts, however we generally do not hedge our deferred income tax assets and liabilities or inflation. In addition, Sempra South American Utilities and its joint ventures use foreign currency derivatives to manage foreign currency rate risk. We discuss these derivatives at Chilquinta Energía’s Eletrans joint venture investment in Note 4 of the Notes to Consolidated Financial Statements in the Annual Report. At March 31, 2018 and December 31, 2017 , the net notional amounts of our foreign currency derivatives, excluding joint ventures, were: FOREIGN CURRENCY DERIVATIVES (Dollars in millions) March 31, 2018 December 31, 2017 Notional amount Maturities Notional amount Maturities Sempra Energy Consolidated: Cross-currency swaps $ 306 2018-2023 $ 408 2018-2023 Other foreign currency derivatives 975 2018-2019 345 2018-2019 FINANCIAL STATEMENT PRESENTATION The Condensed Consolidated Balance Sheets reflect the offsetting of net derivative positions and cash collateral with the same counterparty when a legal right of offset exists. The following tables provide the fair values of derivative instruments on the Condensed Consolidated Balance Sheets at March 31, 2018 and December 31, 2017 , including the amount of cash collateral receivables that were not offset, as the cash collateral was in excess of liability positions. DERIVATIVE INSTRUMENTS ON THE CONDENSED CONSOLIDATED BALANCE SHEETS (Dollars in millions) March 31, 2018 Current (1) Other Current liabilities: (2) Deferred Sempra Energy Consolidated: Derivatives designated as hedging instruments: Interest rate and foreign exchange instruments (3) $ 1 $ 2 $ (12 ) $ (122 ) Derivatives not designated as hedging instruments: Foreign exchange instruments 43 — — — Commodity contracts not subject to rate recovery 64 10 (61 ) (11 ) Associated offsetting commodity contracts (54 ) (8 ) 54 8 Commodity contracts subject to rate recovery 22 98 (60 ) (123 ) Associated offsetting cash collateral — — 16 7 Net amounts presented on the balance sheet 76 102 (63 ) (241 ) Additional cash collateral for commodity contracts not subject to rate recovery 21 — — — Additional cash collateral for commodity contracts subject to rate recovery 14 — — — Total (4) $ 111 $ 102 $ (63 ) $ (241 ) SDG&E: Derivatives designated as hedging instruments: Interest rate instruments (3) $ — $ — $ (8 ) $ (1 ) Derivatives not designated as hedging instruments: Commodity contracts subject to rate recovery 20 98 (59 ) (123 ) Associated offsetting cash collateral — — 16 7 Net amounts presented on the balance sheet 20 98 (51 ) (117 ) Additional cash collateral for commodity contracts subject to rate recovery 12 — — — Total (4) $ 32 $ 98 $ (51 ) $ (117 ) SoCalGas: Derivatives not designated as hedging instruments: Commodity contracts subject to rate recovery $ 2 $ — $ (1 ) $ — Net amounts presented on the balance sheet 2 — (1 ) — Additional cash collateral for commodity contracts subject to rate recovery 2 — — — Total $ 4 $ — $ (1 ) $ — (1) Included in Current Assets: Other for SoCalGas. (2) Included in Current Liabilities: Other for SoCalGas. (3) Includes Otay Mesa VIE. All of SDG&E’s amounts relate to Otay Mesa VIE. (4) Normal purchase contracts previously measured at fair value are excluded. DERIVATIVE INSTRUMENTS ON THE CONDENSED CONSOLIDATED BALANCE SHEETS (Dollars in millions) December 31, 2017 Current (1) Other Current liabilities: (2) Deferred Sempra Energy Consolidated: Derivatives designated as hedging instruments: Interest rate and foreign exchange instruments (3) $ 5 $ 2 $ (51 ) $ (165 ) Derivatives not designated as hedging instruments: Foreign exchange instruments — — (1 ) — Commodity contracts not subject to rate recovery 81 8 (72 ) (6 ) Associated offsetting commodity contracts (67 ) (5 ) 67 5 Commodity contracts subject to rate recovery 28 101 (65 ) (120 ) Associated offsetting commodity contracts — (1 ) — 1 Associated offsetting cash collateral — — 19 4 Net amounts presented on the balance sheet 47 105 (103 ) (281 ) Additional cash collateral for commodity contracts not subject to rate recovery 2 — — — Additional cash collateral for commodity contracts subject to rate recovery 17 — — — Total (4) $ 66 $ 105 $ (103 ) $ (281 ) SDG&E: Derivatives designated as hedging instruments: Interest rate instruments (3) $ — $ — $ (10 ) $ (3 ) Derivatives not designated as hedging instruments: Commodity contracts subject to rate recovery 26 101 (63 ) (120 ) Associated offsetting commodity contracts — (1 ) — 1 Associated offsetting cash collateral — — 19 4 Net amounts presented on the balance sheet 26 100 (54 ) (118 ) Additional cash collateral for commodity contracts subject to rate recovery 16 — — — Total (4) $ 42 $ 100 $ (54 ) $ (118 ) SoCalGas: Derivatives not designated as hedging instruments: Commodity contracts subject to rate recovery $ 2 $ — $ (2 ) $ — Net amounts presented on the balance sheet 2 — (2 ) — Additional cash collateral for commodity contracts subject to rate recovery 1 — — — Total $ 3 $ — $ (2 ) $ — (1) Included in Current Assets: Other for SoCalGas. (2) Included in Current Liabilities: Other for SoCalGas. (3) Includes Otay Mesa VIE. All of SDG&E’s amounts relate to Otay Mesa VIE. (4) Normal purchase contracts previously measured at fair value are excluded. The table below includes the effects of derivative instruments designated as cash flow hedges on the Condensed Consolidated Statements of Operations and in OCI and AOCI for the three months ended March 31 : CASH FLOW HEDGE IMPACTS (Dollars in millions) Pretax gain (loss) recognized in OCI Pretax (loss) gain reclassified from AOCI into earnings Three months ended March 31, Three months ended March 31, 2018 2017 Location 2018 2017 Sempra Energy Consolidated: Interest rate and foreign exchange instruments (1) $ 54 $ 16 Interest Expense $ 2 $ 3 Other Income, Net 18 — Interest rate and foreign exchange instruments 70 (14 ) Equity Losses (4 ) (4 ) Foreign exchange instruments (7 ) (9 ) Revenues: Energy- Related Businesses — (2 ) Commodity contracts not subject to rate recovery — 3 Revenues: Energy- Related Businesses — (9 ) Total $ 117 $ (4 ) $ 16 $ (12 ) SDG&E: Interest rate instruments (1) $ 1 $ — Interest Expense $ (3 ) $ (3 ) (1) Amounts include Otay Mesa VIE. All of SDG&E’s interest rate derivative activity relates to Otay Mesa VIE. For Sempra Energy Consolidated, we expect that net losses of $13 million , which are net of income tax benefit, that are currently recorded in AOCI (including $7 million of losses in NCI related to Otay Mesa VIE at SDG&E) related to cash flow hedges will be reclassified into earnings during the next twelve months as the hedged items affect earnings. SoCalGas expects that $1 million of losses, net of income tax benefit, that are currently recorded in AOCI related to cash flow hedges will be reclassified into earnings during the next twelve months as the hedged items affect earnings. Actual amounts ultimately reclassified into earnings depend on the interest rates in effect when derivative contracts mature. For all forecasted transactions, the maximum remaining term over which we are hedging exposure to the variability of cash flows at March 31, 2018 is approximately 14 years and 1 year for Sempra Energy Consolidated and SDG&E, respectively. The maximum remaining term for which we are hedging exposure to the variability of cash flows at our equity method investees is 18 years. The effects of derivative instruments not designated as hedging instruments on the Condensed Consolidated Statements of Operations for the three months ended March 31 were: UNDESIGNATED DERIVATIVE IMPACTS (Dollars in millions) Pretax gain (loss) on derivatives recognized in earnings Three months ended Location 2018 2017 Sempra Energy Consolidated: Foreign exchange instruments Other Income, Net $ 44 $ 65 Commodity contracts not subject to rate recovery Revenues: Energy-Related Businesses (9 ) 14 Commodity contracts not subject to rate recovery Operation and Maintenance — (1 ) Commodity contracts subject to rate recovery Cost of Electric Fuel and Purchased Power 2 (29 ) Commodity contracts subject to rate recovery Cost of Natural Gas 1 — Total $ 38 $ 49 SDG&E: Commodity contracts subject to rate recovery Cost of Electric Fuel and Purchased Power $ 2 $ (29 ) SoCalGas: Commodity contracts not subject to rate recovery Operation and Maintenance $ — $ (1 ) Commodity contracts subject to rate recovery Cost of Natural Gas 1 — Total $ 1 $ (1 ) CONTINGENT FEATURES For Sempra Energy Consolidated and SDG&E, certain of our derivative instruments contain credit limits which vary depending on our credit ratings. Generally, these provisions, if applicable, may reduce our credit limit if a specified credit rating agency reduces our ratings. In certain cases, if our credit ratings were to fall below investment grade, the counterparty to these derivative liability instruments could request immediate payment or demand immediate and ongoing full collateralization. For Sempra Energy Consolidated, the total fair value of this group of derivative instruments in a net liability position at March 31, 2018 and December 31, 2017 is $1 million and $6 million , respectively. At March 31, 2018 , if the credit ratings of Sempra Energy were reduced below investment grade, $2 million of additional assets could be required to be posted as collateral for these derivative contracts. For SDG&E, the total fair value of this group of derivative instruments in a net asset position is negligible at March 31, 2018 and in a net liability position is $1 million at December 31, 2017 . At March 31, 2018 , if the credit ratings of SDG&E were reduced below investment grade, a negligible amount of additional assets could be required to be posted as collateral for these derivative contracts. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS We discuss the valuation techniques and inputs we use to measure fair value and the definition of the three levels of the fair value hierarchy in Note 1 of the Notes to Consolidated Financial Statements in the Annual Report. RECURRING FAIR VALUE MEASURES The three tables below, by level within the fair value hierarchy, set forth our financial assets and liabilities that were accounted for at fair value on a recurring basis at March 31, 2018 and December 31, 2017 . We classify financial assets and liabilities in their entirety based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement requires judgment, and may affect the valuation of fair value assets and liabilities, and their placement within the fair value hierarchy. We have not changed the valuation techniques or types of inputs we use to measure recurring fair value during the three months ended March 31, 2018 . The fair value of commodity derivative assets and liabilities is presented in accordance with our netting policy, as we discuss in Note 8 under “Financial Statement Presentation.” The determination of fair values, shown in the tables below, incorporates various factors, including but not limited to, the credit standing of the counterparties involved and the impact of credit enhancements (such as cash deposits, letters of credit and priority interests). Our financial assets and liabilities that were accounted for at fair value on a recurring basis at March 31, 2018 and December 31, 2017 in the tables below include, other than a $9 million investment at March 31, 2018 measured at net asset value, the following: ▪ Nuclear decommissioning trusts reflect the assets of SDG&E’s NDT, excluding cash balances. A third party trustee values the trust assets using prices from a pricing service based on a market approach. We validate these prices by comparison to prices from other independent data sources. Securities are valued using quoted prices listed on nationally recognized securities exchanges or based on closing prices reported in the active market in which the identical security is traded (Level 1). Other securities are valued based on yields that are currently available for comparable securities of issuers with similar credit ratings (Level 2). ▪ For commodity contracts, interest rate derivatives and foreign exchange instruments, we primarily use a market approach with market participant assumptions to value these derivatives. Market participant assumptions include those about risk, and the risk inherent in the inputs to the valuation techniques. These inputs can be readily observable, market corroborated, or generally unobservable. We have exchange-traded derivatives that are valued based on quoted prices in active markets for the identical instruments (Level 1). We also may have other commodity derivatives that are valued using industry standard models that consider quoted forward prices for commodities, time value, current market and contractual prices for the underlying instruments, volatility factors, and other relevant economic measures (Level 2). Level 3 recurring items relate to CRRs and long-term, fixed-price electricity positions at SDG&E, as we discuss below in “Level 3 Information.” ▪ Rabbi Trust investments include marketable securities that we value using a market approach based on closing prices reported in the active market in which the identical security is traded (Level 1). These investments in marketable securities were negligible at both March 31, 2018 and December 31, 2017 . There were no transfers into or out of Level 1, Level 2 or Level 3 for Sempra Energy Consolidated, SDG&E or SoCalGas during the periods presented. RECURRING FAIR VALUE MEASURES – SEMPRA ENERGY CONSOLIDATED (Dollars in millions) Fair value at March 31, 2018 Level 1 Level 2 Level 3 Total Assets: Nuclear decommissioning trusts: Equity securities $ 486 $ 5 $ — $ 491 Debt securities: Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies 35 9 — 44 Municipal bonds — 247 — 247 Other securities — 216 — 216 Total debt securities 35 472 — 507 Total nuclear decommissioning trusts (1) 521 477 — 998 Interest rate and foreign exchange instruments — 46 — 46 Commodity contracts not subject to rate recovery 4 8 — 12 Effect of netting and allocation of collateral (2) 21 — — 21 Commodity contracts subject to rate recovery — 2 118 120 Effect of netting and allocation of collateral (2) 9 — 5 14 Total $ 555 $ 533 $ 123 $ 1,211 Liabilities: Interest rate and foreign exchange instruments $ — $ 134 $ — $ 134 Commodity contracts not subject to rate recovery 7 3 — 10 Commodity contracts subject to rate recovery 23 3 157 183 Effect of netting and allocation of collateral (2) (23 ) — — (23 ) Total $ 7 $ 140 $ 157 $ 304 Fair value at December 31, 2017 Level 1 Level 2 Level 3 Total Assets: Nuclear decommissioning trusts: Equity securities $ 491 $ 5 $ — $ 496 Debt securities: Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies 45 9 — 54 Municipal bonds — 250 — 250 Other securities — 217 — 217 Total debt securities 45 476 — 521 Total nuclear decommissioning trusts (1) 536 481 — 1,017 Interest rate and foreign exchange instruments — 7 — 7 Commodity contracts not subject to rate recovery 5 12 — 17 Effect of netting and allocation of collateral (2) 2 — — 2 Commodity contracts subject to rate recovery — 2 126 128 Effect of netting and allocation of collateral (2) 12 — 5 17 Total $ 555 $ 502 $ 131 $ 1,188 Liabilities: Interest rate and foreign exchange instruments $ — $ 217 $ — $ 217 Commodity contracts not subject to rate recovery — 6 — 6 Commodity contracts subject to rate recovery 23 7 154 184 Effect of netting and allocation of collateral (2) (23 ) — — (23 ) Total $ — $ 230 $ 154 $ 384 (1) Excludes cash balances and cash equivalents. (2) Includes the effect of the contractual ability to settle contracts under master netting agreements and with cash collateral, as well as cash collateral not offset. RECURRING FAIR VALUE MEASURES – SDG&E (Dollars in millions) Fair value at March 31, 2018 Level 1 Level 2 Level 3 Total Assets: Nuclear decommissioning trusts: Equity securities $ 486 $ 5 $ — $ 491 Debt securities: Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies 35 9 — 44 Municipal bonds — 247 — 247 Other securities — 216 — 216 Total debt securities 35 472 — 507 Total nuclear decommissioning trusts (1) 521 477 — 998 Commodity contracts subject to rate recovery — — 118 118 Effect of netting and allocation of collateral (2) 7 — 5 12 Total $ 528 $ 477 $ 123 $ 1,128 Liabilities: Interest rate instruments $ — $ 9 $ — $ 9 Commodity contracts subject to rate recovery 23 2 157 182 Effect of netting and allocation of collateral (2) (23 ) — — (23 ) Total $ — $ 11 $ 157 $ 168 Fair value at December 31, 2017 Level 1 Level 2 Level 3 Total Assets: Nuclear decommissioning trusts: Equity securities $ 491 $ 5 $ — $ 496 Debt securities: Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies 45 9 — 54 Municipal bonds — 250 — 250 Other securities — 217 — 217 Total debt securities 45 476 — 521 Total nuclear decommissioning trusts (1) 536 481 — 1,017 Commodity contracts subject to rate recovery — — 126 126 Effect of netting and allocation of collateral (2) 11 — 5 16 Total $ 547 $ 481 $ 131 $ 1,159 Liabilities: Interest rate instruments $ — $ 13 $ — $ 13 Commodity contracts subject to rate recovery 23 5 154 182 Effect of netting and allocation of collateral (2) (23 ) — — (23 ) Total $ — $ 18 $ 154 $ 172 (1) Excludes cash balances and cash equivalents. (2) Includes the effect of the contractual ability to settle contracts under master netting agreements and with cash collateral, as well as cash collateral not offset. RECURRING FAIR VALUE MEASURES – SOCALGAS (Dollars in millions) Fair value at March 31, 2018 Level 1 Level 2 Level 3 Total Assets: Commodity contracts subject to rate recovery $ — $ 2 $ — $ 2 Effect of netting and allocation of collateral (1) 2 — — 2 Total $ 2 $ 2 $ — $ 4 Liabilities: Commodity contracts subject to rate recovery $ — $ 1 $ — $ 1 Total $ — $ 1 $ — $ 1 Fair value at December 31, 2017 Level 1 Level 2 Level 3 Total Assets: Commodity contracts subject to rate recovery $ — $ 2 $ — $ 2 Effect of netting and allocation of collateral (1) 1 — — 1 Total $ 1 $ 2 $ — $ 3 Liabilities: Commodity contracts subject to rate recovery $ — $ 2 $ — $ 2 Total $ — $ 2 $ — $ 2 (1) Includes the effect of the contractual ability to settle contracts under master netting agreements and with cash collateral, as well as cash collateral not offset. Level 3 Information The following table sets forth reconciliations of changes in the fair value of CRRs and long-term, fixed-price electricity positions classified as Level 3 in the fair value hierarchy for Sempra Energy Consolidated and SDG&E: LEVEL 3 RECONCILIATIONS (1) (Dollars in millions) Three months ended March 31, 2018 2017 Balance at January 1 $ (28 ) $ (74 ) Realized and unrealized gains (losses) 4 (13 ) Allocated transmission instruments 3 — Settlements (19 ) (9 ) Balance at March 31 $ (40 ) $ (96 ) Change in unrealized losses relating to instruments still held at March 31 $ (8 ) $ (16 ) (1) Excludes the effect of contractual ability to settle contracts under master netting agreements. SDG&E’s Energy and Fuel Procurement department, in conjunction with SDG&E’s finance group, is responsible for determining the appropriate fair value methodologies used to value and classify CRRs and long-term, fixed-price electricity positions on an ongoing basis. Inputs used to determine the fair value of CRRs and fixed-price electricity positions are reviewed and compared with market conditions to determine reasonableness. SDG&E expects all costs related to these instruments to be recoverable through customer rates. As such, there is no impact to earnings from changes in the fair value of these instruments. CRRs are recorded at fair value based almost entirely on the most current auction prices published by the California ISO, an objective source. Annual auction prices are published once a year, typically in the middle of November, and are the basis for valuing CRRs settling in the following year. For the CRRs settling from January 1 to December 31, the auction price inputs, at a given location, are in the following ranges for the years indicated below: CONGESTION REVENUE RIGHTS AUCTION PRICE INPUTS Settlement year Price per MWh 2018 $ (7.25 ) to $ 11.99 2017 (11.88 ) to 6.93 The impact associated with discounting is negligible. Because these auction prices are a less observable input, these instruments are classified as Level 3. The fair value of these instruments is derived from auction price differences between two locations. Positive values between two locations represent expected future reductions in congestion costs, whereas negative values between two locations represent expected future charges. Valuation of our CRRs is sensitive to a change in auction price. If auction prices at one location increase (decrease) relative to another location, this could result in a higher (lower) fair value measurement. We summarize CRR volumes in Note 8. Long-term, fixed-price electricity positions that are valued using significant unobservable data are classified as Level 3 because the contract terms relate to a delivery location or tenor for which observable market rate information is not available. The fair value of the net electricity positions classified as Level 3 is derived from a discounted cash flow model using market electricity forward price inputs. These inputs range from $20.00 per MWh to $51.30 per MWh at March 31, 2018 , and $14.50 per MWh to $43.25 per MWh at March 31, 2017. A significant increase or decrease in market electricity forward prices would result in a significantly higher or lower fair value, respectively. We summarize long-term, fixed-price electricity position volumes in Note 8. Realized gains and losses associated with CRRs and long-term electricity positions, which are recoverable in rates, are recorded in Cost of Electric Fuel and Purchased Power on the Condensed Consolidated Statements of Operations. Unrealized gains and losses are recorded as regulatory assets and liabilities and therefore do not affect earnings. Fair Value of Financial Instruments The fair values of certain of our financial instruments (cash, accounts and notes receivable, short-term amounts due to/from unconsolidated affiliates, dividends and accounts payable, short-term debt and customer deposits) approximate their carrying amounts because of the short-term nature of these instruments. Investments in life insurance contracts that we hold in support of our Supplemental Executive Retirement, Cash Balance Restoration and Deferred Compensation Plans are carried at cash surrender values, which represent the amount of cash that could be realized under the contracts. The following table provides the carrying amounts and fair values of certain other financial instruments that are not recorded at fair value on the Condensed Consolidated Balance Sheets at March 31, 2018 and December 31, 2017 : FAIR VALUE OF FINANCIAL INSTRUMENTS (Dollars in millions) March 31, 2018 Carrying Fair value Level 1 Level 2 Level 3 Total Sempra Energy Consolidated: Long-term amounts due from unconsolidated affiliates (1) $ 627 $ — $ 606 $ 41 $ 647 Long-term amounts due to unconsolidated affiliates (2) 35 — 32 — 32 Total long-term debt (3)(4) 22,063 790 21,254 456 22,500 SDG&E: Total long-term debt (4)(5) $ 4,848 $ — $ 4,892 $ 292 $ 5,184 SoCalGas: Total long-term debt (6) $ 3,009 $ — $ 3,102 $ — $ 3,102 December 31, 2017 Carrying Fair value Level 1 Level 2 Level 3 Total Sempra Energy Consolidated: Long-term amounts due from unconsolidated affiliates (1) $ 604 $ — $ 528 $ 96 $ 624 Long-term amounts due to unconsolidated affiliates (2) 35 — 32 — 32 Total long-term debt (3)(4) 17,138 817 17,134 458 18,409 SDG&E: Total long-term debt (4)(5) $ 4,868 $ — $ 5,073 $ 295 $ 5,368 SoCalGas: Total long-term debt (6) $ 3,009 $ — $ 3,192 $ — $ 3,192 (1) Excluding accumulated interest outstanding of $35 million and $29 million at March 31, 2018 and December 31, 2017 , respectively, and excluding foreign currency translation of $4 million and $35 million on a Mexican peso-denominated loan at March 31, 2018 and December 31, 2017 , respectively. (2) Excluding negligible interest outstanding at March 31, 2018 and December 31, 2017. (3) Before reductions for unamortized discount (net of premium) and debt issuance costs of $206 million and $143 million at March 31, 2018 and December 31, 2017 , respectively, and excluding build-to-suit and capital lease obligations of $877 million at both March 31, 2018 and December 31, 2017 . We discuss our long-term debt in Note 7 above and in Note 5 of the Notes to Consolidated Financial Statements in the Annual Report. (4) Level 3 instruments include $292 million and $295 million at March 31, 2018 and December 31, 2017 , respectively, related to Otay Mesa VIE. (5) Before reductions for unamortized discount and debt issuance costs of $45 million at both March 31, 2018 and December 31, 2017 , and excluding capital lease obligations of $730 million and $732 million at March 31, 2018 and December 31, 2017 , respectively. (6) Before reductions for unamortized discount and debt issuance costs of $24 million at both March 31, 2018 and December 31, 2017 , and excluding capital lease obligations of $4 million and $1 million at March 31, 2018 and December 31, 2017 , respectively. |
SAN ONOFRE NUCLEAR GENERATING S
SAN ONOFRE NUCLEAR GENERATING STATION | 3 Months Ended |
Mar. 31, 2018 | |
Regulated Operations [Abstract] | |
San Onofre Nuclear Generating Station (SONGS) | REGULATORY MATTERS We discuss regulatory matters in Note 14 of the Notes to Consolidated Financial Statements in the Annual Report, and provide updates to those discussions and information about new regulatory matters below. REGULATORY ASSETS AND LIABILITIES We show the details of regulatory assets and liabilities in the following table. REGULATORY ASSETS (LIABILITIES) (Dollars in millions) March 31, December 31, SDG&E: Fixed-price contracts and other derivatives $ 103 $ 96 Deferred income taxes refundable in rates (305 ) (281 ) Pension and other postretirement benefit plan obligations 170 153 Removal obligations (1,827 ) (1,846 ) Unamortized loss on reacquired debt 8 9 Environmental costs 29 29 Sunrise Powerlink fire mitigation 120 119 Regulatory balancing accounts (1) Commodity – electric 112 82 Gas transportation 19 22 Safety and reliability 52 48 Public purpose programs (83 ) (70 ) Other balancing accounts 149 233 Other regulatory liabilities (89 ) (70 ) Total SDG&E (1,542 ) (1,476 ) SoCalGas: Pension and other postretirement benefit plan obligations 529 513 Employee benefit costs 45 45 Removal obligations (910 ) (924 ) Deferred income taxes refundable in rates (395 ) (437 ) Unamortized loss on reacquired debt 7 8 Environmental costs 21 22 Workers’ compensation 12 12 Regulatory balancing accounts (1) Commodity – gas, including transportation 168 151 Safety and reliability 275 266 Public purpose programs (353 ) (274 ) Other balancing accounts (149 ) (114 ) Other regulatory liabilities (85 ) (64 ) Total SoCalGas (835 ) (796 ) Sempra Mexico: Deferred income taxes recoverable in rates 83 83 Total Sempra Energy Consolidated $ (2,294 ) $ (2,189 ) (1) At March 31, 2018 and December 31, 2017, the noncurrent portion of regulatory balancing accounts – net undercollected for SDG&E was $72 million and $63 million , respectively. At March 31, 2018 and December 31, 2017, the noncurrent portion of regulatory balancing accounts – net undercollected for SoCalGas was $141 million and $118 million , respectively. CALIFORNIA UTILITIES MATTERS CPUC General Rate Case The CPUC uses a GRC proceeding to set sufficient rates to allow the California Utilities to recover their reasonable cost of O&M and to provide the opportunity to realize their authorized rates of return on their investment. 2019 General Rate Case On October 6, 2017, SDG&E and SoCalGas filed their 2019 GRC applications requesting CPUC approval of test year revenue requirements for 2019 and attrition year adjustments for 2020 through 2022. SDG&E and SoCalGas requested revenue requirements for 2019 of $2.199 billion and $2.989 billion , respectively, which is an increase of $217 million and $533 million over their respective 2018 revenue requirements (the 2018 revenue requirements reflect the impact of updated testimony filed in January 2018). The California Utilities are proposing post-test year revenue requirement changes using various adjustment factors which are estimated to result in annual increases of approximately 5 percent to 7 percent at SDG&E and approximately 6 percent to 8 percent at SoCalGas. Our 2019 GRC applications do not reflect the impact of the TCJA, which we discuss in “2016 General Rate Case” below, in Note 1 above and in Note 6 of the Notes to Consolidated Financial Statements in the Annual Report. In April 2018, SDG&E and SoCalGas updated their applications to reflect the impact of the TCJA and filed a joint proposal to address the impacts. The TCJA impact to SDG&E is a reduction of approximately $58 million to its 2019 test year revenue requirement; however, SDG&E’s 2019 requested revenue requirement is unchanged as we evaluate potentially higher costs associated with mitigating wildfire risks. The TCJA impact to SoCalGas’ 2019 requested revenue requirement is a reduction of approximately $58 million to $2.931 billion . In April 2018, ORA filed testimony in SDG&E’s and SoCalGas’ 2019 GRC recommending a 2019 revenue requirement of $1.918 billion and $2.695 billion , respectively, which is a net decrease of $64 million and an increase of $239 million compared to the respective 2018 revenue requirements. ORA’s proposal reduces the three-year annual attrition percentages to 4 percent for SDG&E and a range of 4 percent to 5 percent for SoCalGas. ORA recommends addressing SDG&E’s potential ownership of OMEC in a separate proceeding. As a result, ORA’s proposed 2019 revenue requirement does not include the estimated $68 million associated with owning and operating the generating facility. SDG&E’s acquisition of OMEC is subject to a CPUC-approved agreement under which the current owner of the facility can exercise a put option at a designated price on or before October 3, 2019, as we discuss in Note 1. As part of the 2019 GRC, the CPUC will review the California Utilities’ interim accountability reports, which compare the authorized and actual spending for certain safety-related activities for 2014 through 2016. In June 2017, SDG&E and SoCalGas filed their first interim accountability reports comparing authorized and actual spending in 2014 and 2015 for certain safety-related activities. Similar data for 2016 was provided with the 2019 GRC application filings in a second interim accountability report. The stated purpose of the interim accountability reports is to provide data and metrics for key safety and risk mitigation areas that will be considered in the 2019 GRC. The results of the rate case may materially and adversely differ from what is contained in the GRC applications. Risk Assessment Mitigation Phase Reporting and Impact on the 2019 GRC Application Filings In December 2014, the CPUC issued a decision incorporating a risk-based decision-making framework into all future GRC application filings for major natural gas and electric utilities in California. The framework is intended to assist in assessing safety risks and the utilities’ plans to help ensure that such risks are adequately addressed. In advance of filing the California Utilities’ 2019 GRC applications discussed above, two proceedings occurred: the Safety Model Assessment Proceeding and the RAMP. In the Safety Model Assessment Proceeding, the California Utilities demonstrated the models used to prioritize and mitigate risks in order for the CPUC to establish guidelines and standards for these models. In November 2016, as part of the new framework, SDG&E and SoCalGas filed their first RAMP report presenting a comprehensive assessment of their key safety risks and proposed activities for mitigating such risks. The report details these key safety risks, which include critical operational issues such as natural gas pipeline safety and wildfire safety, and addresses their classification, scoring, mitigation, alternatives, safety culture, quantitative analysis, data collection and lessons learned. In March 2017, the CPUC’s Safety and Enforcement Division issued its evaluation report providing generally favorable feedback on the California Utilities’ RAMP report, but recommending more detailed analysis of the risks the California Utilities presented in the report. The new GRC framework does not require the CPUC to adopt the RAMP report. However, SDG&E and SoCalGas included funding requests in their respective 2019 GRC filings for proposed projects or activities outlined in their RAMP reports. In April 2018, the CPUC granted SDG&E’s and SoCalGas’ motion to close the proceeding, as all RAMP procedures have been completed. Senate Bill 549. In September 2017, SB 549 was signed into law, requiring that SDG&E and SoCalGas (as electric and gas corporations) annually notify the CPUC when revenue authorized by the CPUC for maintenance, safety or reliability is redirected to other purposes. This requirement is effective beginning January 1, 2018. The form of this reporting is not yet defined by the CPUC, though it could be incorporated into an ongoing proceeding or report otherwise required to be submitted to the CPUC. 2016 General Rate Case As we discuss in Notes 6 and 14 of the Notes to Consolidated Financial Statements in the Annual Report, the 2016 GRC FD issued by the CPUC in June 2016 required SDG&E and SoCalGas to each establish a two-way income tax expense memorandum account to track certain revenue variances resulting from certain differences between the income tax expense forecasted in the GRC and the income tax expense incurred from 2016 through 2018. The tracking accounts will remain open until the CPUC decides to close the accounts, which we expect will be reviewed in the 2019 GRC proceedings. At March 31, 2018, the recorded regulatory liability associated with these tracked amounts totaled $67 million and $77 million for SDG&E and SoCalGas, respectively. The recorded liability is primarily related to lower income tax expense incurred than was forecasted in the GRC relating to tax repairs deductions, self-developed software deductions and certain book-over-tax depreciation. Impacts of the TCJA. As we discuss in Note 1, in the fourth quarter of 2017, we recorded the effect of the remeasurement of our deferred income tax balances at the new federal statutory income tax rate enacted by the TCJA. The remeasurement of deferred income tax balances at SDG&E and SoCalGas resulted in excess deferred income taxes from amounts previously collected from ratepayers at the higher rate. These excess deferred income taxes have been recorded as regulatory liabilities and will be refunded to ratepayers in accordance with the IRC’s normalization provisions and as determined by the CPUC and the FERC. The income tax effects from the TCJA that we recorded in 2017 were provisional. We may adjust our provisional estimates in future reporting periods throughout 2018, and these adjustments may affect regulatory liabilities, the tracking accounts and/or earnings. The 2016 GRC FD revenue requirement was authorized using a federal income tax rate of 35 percent. As a result of the TCJA, the federal income tax rate became 21 percent effective January 1, 2018. Since SDG&E and SoCalGas continue to collect 2018 authorized revenues based on a 35 percent tax rate, SDG&E and SoCalGas are recording revenue deferrals, aligned with authorized seasonality factors, that reflect the estimated reduction in the 2018 revenue requirement. As of March 31, 2018, SDG&E and SoCalGas recorded regulatory liabilities of $18 million and $19 million , respectively, in anticipation of amounts that will benefit customers in future rates. SDG&E also recorded a $15 million regulatory liability at March 31, 2018 for its FERC jurisdiction in anticipation of amounts that will benefit customers in future rates for the decrease in the federal income tax rate. CPUC Cost of Capital In October 2017, the CPUC approved the embedded cost of debt presented in the filed advice letters, resulting in a revised return on rate base for SDG&E of 7.55 percent and for SoCalGas of 7.34 percent , effective January 1, 2018, as depicted in the table below: AUTHORIZED COST OF CAPITAL AND RATE STRUCTURE – CPUC SDG&E SoCalGas Authorized weighting Return on rate base Weighted rate base Authorized weighting Return on Weighted 45.25 % 4.59 % 2.08 % Long-Term Debt 45.60 % 4.33 % 1.97 % 2.75 6.22 0.17 Preferred Stock 2.40 6.00 0.14 52.00 10.20 5.30 Common Equity 52.00 10.05 5.23 100.00 % 7.55 % 100.00 % 7.34 % As a result of the updates included in the filed advice letters, the impact of the changes to the embedded cost of debt and return on rate base is summarized below: IMPACT OF THE EMBEDDED COST OF DEBT SDG&E SoCalGas Cost of debt Return on rate base Cost of Return on Previously 5.00 % 7.79 % 5.77 % 8.02 % Authorized, effective January 1, 2018 4.59 % 7.55 % 4.33 % 7.34 % Differences (41 ) bps (24 ) bps (144 ) bps (68 ) bps We provide below updates to ongoing matters related to SONGS, a nuclear generating facility near San Clemente, California that ceased operations in June 2013, and in which SDG&E has a 20 -percent ownership interest. We discuss SONGS further in Note 13 of the Notes to Consolidated Financial Statements in the Annual Report. SONGS STEAM GENERATOR REPLACEMENT PROJECT As part of the SGRP, the steam generators were replaced in SONGS Units 2 and 3, and the Units returned to service in 2010 and 2011, respectively. Both Units were shut down in early 2012 after a water leak occurred in the Unit 3 steam generator. Edison concluded that the leak was due to unexpected wear from tube-to-tube contact. At the time the leak was identified, Edison also inspected and tested Unit 2 and subsequently found unexpected tube wear in Unit 2’s steam generator. These issues with the steam generators ultimately resulted in Edison’s decision to permanently retire SONGS. The replacement steam generators were designed and provided by MHI. In 2013, Edison instituted arbitration proceedings against MHI seeking recovery of damages. The other SONGS co-owners, SDG&E and the City of Riverside, participated as claimants and respondents. On March 13, 2017, the International Chamber of Commerce International Court of Arbitration Tribunal (the Tribunal) overseeing the arbitration found MHI liable for breach of contract, subject to a contractual limitation of liability, and rejected the claimants’ other claims. The Tribunal awarded $118 million in damages to the SONGS co-owners, but determined that MHI was the prevailing party and awarded it 95 percent of its arbitration costs. The damage award was offset by these costs, resulting in a net award of approximately $60 million in favor of the SONGS co-owners. SDG&E’s specific allocation of the damage award was $24 million reduced by costs awarded to MHI of approximately $12 million , resulting in a net damage award of $12 million , which was paid by MHI to SDG&E in March 2017. In accordance with the Amended Settlement Agreement discussed below, SDG&E recorded the proceeds from the MHI arbitration by reducing Operation and Maintenance for previously incurred legal costs of $11 million , and shared the remaining $1 million equally between ratepayers and shareholders. SETTLEMENT AGREEMENT TO RESOLVE THE CPUC’S ORDER INSTITUTING INVESTIGATION INTO THE SONGS OUTAGE In 2012, in response to the SONGS outage, the CPUC issued the SONGS OII, which was intended to determine the ultimate recovery of the investment in SONGS and the costs incurred since the commencement of this outage. In November 2014, the CPUC issued a final decision approving an Amended Settlement Agreement in the SONGS OII proceeding. We describe the terms and provisions of the Amended Settlement Agreement in Note 13 of the Notes to Consolidated Financial Statements in the Annual Report. In May 2016, following the filing of petitions for modification by various parties, the CPUC issued a procedural ruling reopening the record of the OII to address the issue of whether the Amended Settlement Agreement is reasonable and in the public interest. In December 2016, the CPUC issued another procedural ruling directing parties to the SONGS OII to determine whether an agreement could be reached to modify the Amended Settlement Agreement previously approved by the CPUC, to resolve allegations that unreported ex parte communications between Edison and the CPUC resulted in an unfair advantage at the time the settlement agreement was negotiated. On January 30, 2018, SDG&E, Edison, ORA, TURN and other intervenors entered into a settlement agreement (the Revised Settlement Agreement). On the same date, a Joint Motion for Adoption of the Settlement Agreement was filed with the CPUC. If approved by the CPUC, the Revised Settlement Agreement will resolve all issues under consideration in the SONGS OII and will modify the Amended Settlement Agreement. The Revised Settlement Agreement was the result of multiple mediation sessions in 2017 and January 2018 and was signed following a settlement conference in the SONGS OII, as required under CPUC rules. In February 2018, the parties filed a motion to stay the proceedings in the OII pending the CPUC’s consideration of the Revised Settlement Agreement. In February and March of 2018, the CPUC granted the parties’ request and established a procedural schedule for 2018 that includes additional testimony, a status conference and briefing, and public participation and evidentiary hearings in April through July. The Revised Settlement Agreement is subject to CPUC approval. The parties to the Revised Settlement Agreement have agreed to exercise their best efforts to obtain CPUC approval. In the event that the CPUC fails to approve the Revised Settlement Agreement, the proceeding will remain open and subject to previous rulings in the SONGS OII, and the Amended Settlement Agreement will remain in effect, unless it is modified or set aside by the CPUC as a result of the OII proceeding. In connection with the Revised Settlement Agreement, and in exchange for the release of certain SONGS-related claims, SDG&E and Edison entered into the Utility Shareholder Agreement, described below, in which Edison has agreed to pay for the amounts that SDG&E would have received in rates under the Amended Settlement Agreement but would not receive upon implementation of the Revised Settlement Agreement. The Utility Shareholder Agreement is not subject to the approval of the CPUC. However, it is not effective unless and until the CPUC approves the Revised Settlement Agreement. The timing of a ruling by the CPUC on the Joint Motion for Adoption of the Settlement Agreement is unclear. There is no assurance that the Revised Settlement Agreement will be adopted or that the Amended Settlement Agreement will not be modified or set aside as a result of the OII proceeding, which could result in a substantial reduction in our expected recovery or in no recovery and payments to customers. These outcomes could have a material adverse effect on Sempra Energy’s and SDG&E’s results of operations, financial condition and cash flows. Disallowances, Refunds and Recoveries If the Revised Settlement Agreement is approved by the CPUC, SDG&E and Edison will cease rate recovery of SONGS costs as authorized under the Amended Settlement Agreement as of the date their combined remaining SONGS regulatory assets equal $775 million (the Cessation Date). Currently, the estimated Cessation Date is December 19, 2017. The Cessation Date is partly dependent on the outcome of Edison’s pending request to the CPUC, in a separate proceeding, for approval to apply certain proceeds received from the DOE to reduce Edison’s SONGS regulatory asset. If this request is rejected by the CPUC, then the estimated Cessation Date will be April 21, 2018. In either case, under the Utility Shareholder Agreement, Edison is obligated to pay SDG&E the full amount of SDG&E’s revenue requirement not recovered from ratepayers, as described below. SDG&E and Edison will refund to customers SONGS-related amounts recovered in rates after the Cessation Date. In the event that the CPUC takes an action that has the effect of invalidating the Utility Shareholder Agreement, SDG&E may, in its discretion, withdraw from the Revised Settlement Agreement, in which case Edison shall remain a party to the Revised Settlement Agreement, but the Revised Settlement Agreement shall be terminated as to SDG&E. In such a scenario, SDG&E would return to its litigation position before the CPUC in the SONGS OII that existed prior to the Revised Settlement Agreement. Pursuant to the CPUC’s rules, no settlement becomes binding unless the CPUC approves the settlement based on a finding that it is reasonable in light of the whole record, consistent with law, and in the public interest. The CPUC has discretion to approve or disapprove a settlement, or to condition its approval on changes to the settlement, which the parties may accept or reject, negotiating in good faith to seek a resolution acceptable to all parties. CPUC rules do not provide for any fixed time period for the CPUC to act on proposed settlements. Utility Shareholder Agreement On January 10, 2018, SDG&E and Edison entered into the Utility Shareholder Agreement. Under the terms of the Utility Shareholder Agreement, Edison has an obligation to compensate SDG&E for the revenue requirement amounts that SDG&E would no longer recover because of the Revised Settlement Agreement. In exchange for Edison’s reimbursement, the parties will mutually release each other from the “SONGS Issues,” a defined term that consists of 18 broad categories. The effect of the agreement is that the parties will release each other from any and all claims that each party had or could have asserted related to the steam generator replacement failure and its aftermath. The Utility Shareholder Agreement becomes effective only upon CPUC approval of the Revised Settlement Agreement. Edison’s payment obligation commences 30 days after the first fiscal quarter in which the CPUC approves the Revised Settlement Agreement, and amounts are due to SDG&E quarterly thereafter until April 2022, which approximates the amounts and timing of amounts of what would have been SDG&E’s recoveries from ratepayers contemplated under the Amended Settlement Agreement. Accounting and Financial Impacts As a result of the Revised Settlement Agreement by the settling parties and the Utility Shareholder Agreement, at March 31, 2018, SDG&E has a receivable from Edison totaling $153 million , $42 million classified as current and $111 million classified as noncurrent. This receivable reflects amounts Edison is obligated to pay to SDG&E in lieu of amounts SDG&E would have collected from ratepayers associated with the SONGS regulatory asset, which SDG&E believes is now no longer probable of recovery. Assuming the Revised Settlement Agreement is approved, SDG&E and Sempra Energy do not expect that implementation of the Revised Settlement Agreement in combination with the Utility Shareholder Agreement will have a material adverse impact on either company. However, until the CPUC approves the Revised Settlement Agreement as proposed, there can be no assurance that the SONGS OII proceeding will conclude as contemplated by SDG&E in accordance with the Revised Settlement Agreement and the Utility Shareholder Agreement, or that the CPUC will not order refunds to customers above those contemplated by the Amended Settlement Agreement, or take other action that may be adverse to SDG&E and Sempra Energy. Such alternative outcomes could have a material adverse effect on SDG&E’s and Sempra Energy’s results of operations, financial condition and cash flows. NUCLEAR DECOMMISSIONING AND FUNDING As a result of Edison’s decision to permanently retire SONGS Units 2 and 3, Edison began the decommissioning phase of the plant. Decommissioning of Unit 1, removed from service in 1992, is largely complete. The remaining work for Unit 1 will be done once Units 2 and 3 are dismantled. Edison contracted with a joint venture of AECOM and EnergySolutions (known as SONGS Decommissioning Solutions) as the general contractor to complete the dismantlement of SONGS. The majority of the dismantlement work is expected to take 10 years . SDG&E is responsible for approximately 20 percent of the total contract price. In accordance with state and federal requirements and regulations, SDG&E has assets held in the NDT to fund its share of decommissioning costs for SONGS Units 1, 2 and 3. The amounts collected in rates for SONGS’ decommissioning are invested in the NDT, which is comprised of externally managed trust funds. Amounts held by the NDT are invested in accordance with CPUC regulations. The NDT assets are presented on the Sempra Energy and SDG&E Condensed Consolidated Balance Sheets at fair value with the offsetting credits recorded in noncurrent Regulatory Liabilities. In March 2018, SDG&E and Edison jointly filed an application requesting CPUC approval of revised remaining decommissioning cost estimates (for costs estimated to be incurred in 2018 and beyond) for SONGS Unit 1 of $207 million (in 2014 dollars), of which SDG&E’s share is $41 million , and SONGS Units 2 and 3 of $3.2 billion (in 2014 dollars), of which SDG&E’s share is $638 million . In addition, SDG&E has estimated internal decommissioning costs of $3 million (in 2014 dollars) for SONGS Unit 1 and $43 million (in 2014 dollars) for SONGS Units 2 and 3. We expect a ruling by the CPUC on the joint application in 2019. Except for the use of funds for the planning of decommissioning activities or NDT administrative costs, CPUC approval is required for SDG&E to access the NDT assets to fund SONGS decommissioning costs for Units 2 and 3. SDG&E has received authorization from the CPUC to access NDT funds of up to $362 million for 2013 through 2018 (2018 forecasted) SONGS decommissioning costs. This includes up to $60 million authorized by the CPUC in January 2018 to be withdrawn from the NDT for forecasted 2018 SONGS Units 2 and 3 costs as decommissioning costs are incurred. In December 2016, the IRS and the U.S. Department of the Treasury issued proposed regulations that clarify the definition of “nuclear decommissioning costs,” which are costs that may be paid for or reimbursed from a qualified trust fund. The proposed regulations state that costs related to the construction and maintenance of independent spent fuel management installations are included in the definition of “nuclear decommissioning costs.” The proposed regulations will be effective prospectively once they are finalized; however, the IRS has stated that it will not challenge taxpayer positions consistent with the proposed regulations for taxable years ending on or after the date the proposed regulations were issued. SDG&E is awaiting the adoption of, or additional refinement to, the proposed regulations before determining whether the proposed regulations will allow SDG&E to access the NDT funds for reimbursement or payment of the spent fuel management costs incurred in 2016 and subsequent years. Further clarification of the proposed regulations could enable SDG&E to access the NDT to recover spent fuel management costs before Edison reaches final settlement with the DOE regarding the DOE’s reimbursement of these costs. Historically, the DOE’s reimbursements of spent fuel storage costs have not resulted in timely or complete recovery of these costs. We discuss the DOE’s responsibility for spent nuclear fuel below. The IRS held public hearings on the proposed regulations in October 2017. It is unclear when clarification of the proposed regulations might be provided or when the proposed regulations will be finalized. The following table shows the fair values and gross unrealized gains and losses for the securities held in the NDT. We provide additional fair value disclosures for the NDT in Note 9. NUCLEAR DECOMMISSIONING TRUSTS (Dollars in millions) Cost Gross unrealized gains Gross unrealized losses Estimated fair value At March 31, 2018: Debt securities: Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies (1) $ 44 $ — $ — $ 44 Municipal bonds (1) 245 4 (2 ) 247 Other securities (2) 217 2 (3 ) 216 Total debt securities 506 6 (5 ) 507 Equity securities 172 321 (2 ) 491 Cash and cash equivalents 19 — — 19 Total $ 697 $ 327 $ (7 ) $ 1,017 At December 31, 2017: Debt securities: Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies $ 54 $ — $ — $ 54 Municipal bonds 245 7 (2 ) 250 Other securities 215 3 (1 ) 217 Total debt securities 514 10 (3 ) 521 Equity securities 171 326 (1 ) 496 Cash and cash equivalents 16 — — 16 Total $ 701 $ 336 $ (4 ) $ 1,033 (1) Maturity dates are 2018-2048. (2) Maturity dates are 2018-2064. The following table shows the proceeds from sales of securities in the NDT and gross realized gains and losses on those sales: SALES OF SECURITIES IN THE NDT (Dollars in millions) Three months ended 2018 2017 Proceeds from sales (1) $ 210 $ 357 Gross realized gains 4 45 Gross realized losses (3 ) (5 ) (1) Excludes securities that are held to maturity. Net unrealized gains and losses, as well as realized gains and losses that are reinvested in the NDT, are included in noncurrent Regulatory Liabilities on Sempra Energy’s and SDG&E’s Condensed Consolidated Balance Sheets. We determine the cost of securities in the trusts on the basis of specific identification. U.S. DEPARTMENT OF ENERGY NUCLEAR FUEL DISPOSAL Spent nuclear fuel from SONGS is currently stored on-site in an ISFSI licensed by the NRC or temporarily in spent fuel pools. In October 2015, the California Coastal Commission approved Edison’s application for the proposed expansion of the ISFSI at SONGS. The ISFSI expansion began construction in 2016 and is expected to be fully loaded with spent fuel by 2019 and to operate until 2049, when it is assumed that the DOE will have taken custody of all the SONGS spent fuel. The ISFSI would then be decommissioned, and the site restored to its original environmental state. Until then, SONGS owners are responsible for interim storage of spent nuclear fuel at SONGS. The Nuclear Waste Policy Act of 1982 made the DOE responsible for accepting, transporting, and disposing of spent nuclear fuel. However, it is uncertain when the DOE will begin accepting spent nuclear fuel from SONGS. This delay will lead to increased costs for spent fuel storage. SDG&E will continue to support Edison in its pursuit of claims on behalf of the SONGS co-owners against the DOE for its failure to timely accept the spent nuclear fuel. In April 2016, Edison executed a spent fuel settlement agreement with the DOE for $162 million covering damages incurred from 2006 through 2013. In May 2016, Edison refunded SDG&E $32 million for its respective share of the damage award paid. In applying this refund, SDG&E recorded a $23 million reduction to the SONGS regulatory asset, an $8 million reduction of its nuclear decommissioning balancing account and a $1 million reduction in its SONGS O&M cost balancing account. In September 2016, Edison filed claims with the DOE for $56 million in spent fuel management costs incurred in 2014 and 2015 on behalf of the SONGS co-owners under the terms of the 2016 spent fuel settlement agreement. In February 2017, the DOE reduced the request to approximately $43 million primarily due to reductions to the claimed fuel canister costs. SDG&E received its $9 million respective share of the claim from Edison in May 2017 and recorded the proceeds in balancing accounts or as reductions to regulatory assets for the benefit of ratepayers. In October 2017, Edison filed claims with the DOE for $58 million in spent fuel management costs incurred in 2016 on behalf of the SONGS co-owners under the terms of the 2016 spent fuel settlement agreement. SDG&E’s respective share of the claim is $12 million . In March 2018, the DOE issued its determination of allowable costs for the claim as $44 million with SDG&E’s respective share as $9 million . In April 2018, Edison requested reconsideration from the DOE of $1 million of the DOE’s deductions from the claimed amount. We expect the request for reconsideration to extend the claims process by a minimum of two months. It is unclear whether the DOE will approve the request and how much of the disputed amount will be recovered, if any. The 2016 spent fuel settlement agreement governs the submission of claims for costs incurred through December 31, 2016. It is unclear whether Edison will enter into a new settlement with the DOE or pursue litigation claims for spent fuel management costs incurred on or after January 1, 2017. NUCLEAR INSURANCE Edison requested and was granted approval in January 2018 by the NRC to reduce the nuclear liability and property damage insurance requirement. However, these changes in SONGS nuclear insurance levels require approval from all SONGS owners, as described below. SDG&E and the other owners of SONGS have insurance to cover claims from nuclear liability incidents arising at SONGS. Currently, this insurance provides $450 million in coverage limits, the maximum amount available, including coverage for acts of terrorism. In addition, the Price-Anderson Act provides an additional $110 million of coverage. If a nuclear liability loss occurs at SONGS and exceeds the $450 million insurance limit, this additional coverage would be available to provide a total of $560 million in coverage limits per incident. The SFP is a program that provides additional insurance. If a nuclear liability loss occurs at any U.S. licensed/commercial reactor and exceeds the $450 million insurance, all SFP participants would be required to contribute to the SFP. Effective January 5, 2018, the NRC approved Ed |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES LEGAL PROCEEDINGS We accrue losses for a legal proceeding when it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. However, the uncertainties inherent in legal proceedings make it difficult to estimate with reasonable certainty the costs and effects of resolving these matters. Accordingly, actual costs incurred may differ materially from amounts accrued, may exceed applicable insurance coverage and could materially adversely affect our business, cash flows, results of operations, financial condition and prospects. Unless otherwise indicated, we are unable to estimate reasonably possible losses in excess of any amounts accrued. At March 31, 2018 , loss contingency accruals for legal matters, including associated legal fees, that are probable and estimable were $144 million for Sempra Energy Consolidated, including $3 million for SDG&E and $90 million for SoCalGas. Amounts for Sempra Energy and SoCalGas include $85 million for matters related to the Aliso Canyon natural gas storage facility gas leak, which we discuss below. SDG&E 2007 Wildfire Litigation and Net Cost Recovery Status SDG&E has resolved all litigation associated with three wildfires that occurred in October 2007, except one appeal that remains pending after judgment in the trial court. SDG&E does not expect additional plaintiffs to file lawsuits given the applicable statutes of limitation, but could receive additional settlement demands and damage estimates from the remaining plaintiff until the case is resolved. SDG&E maintains reserves for the wildfire litigation and adjusts these reserves as information becomes available and amounts are estimable. As a result of a CPUC decision denying SDG&E’s request to recover wildfire costs, SDG&E wrote off the wildfire regulatory asset, resulting in a charge of $351 million ( $208 million after-tax) in the third quarter of 2017. SDG&E will continue to vigorously pursue recovery of these costs, which were incurred through settling claims brought under the doctrine of inverse condemnation. SDG&E applied to the CPUC for rehearing of its decision on January 2, 2018. The CPUC may grant a rehearing, modify its decision, or deny the request and affirm its original decision. We will appeal the decision with the California Courts of Appeal seeking to reverse the CPUC’s decision, if necessary. SoCalGas Aliso Canyon Natural Gas Storage Facility Gas Leak On October 23, 2015, SoCalGas discovered a leak at one of its injection-and-withdrawal wells, SS25, at its Aliso Canyon natural gas storage facility (the Leak), located in the northern part of the San Fernando Valley in Los Angeles County. The Aliso Canyon natural gas storage facility has been operated by SoCalGas since 1972. SS25 is one of more than 100 injection-and-withdrawal wells at the storage facility. SoCalGas worked closely with several of the world’s leading experts to stop the Leak, and on February 18, 2016, DOGGR confirmed that the well was permanently sealed. SoCalGas calculated that approximately 4.62 Bcf of natural gas was released from the Aliso Canyon natural gas storage facility as a result of the Leak. Local Community Mitigation Efforts. Pursuant to a stipulation and order by the LA Superior Court, SoCalGas provided temporary relocation support to residents in the nearby community who requested it before the well was permanently sealed. Following the permanent sealing of the well, the DPH conducted testing in certain homes in the Porter Ranch community, and concluded that indoor conditions did not present a long-term health risk and that it was safe for residents to return home. In May 2016, the LA Superior Court ordered SoCalGas to offer to clean residents’ homes at SoCalGas’ expense as a condition to ending the relocation program. SoCalGas completed the residential cleaning program and the relocation program ended in July 2016. In May 2016, the DPH also issued a directive that SoCalGas additionally professionally clean (in accordance with the proposed protocol prepared by the DPH) the homes of all residents located within the Porter Ranch Neighborhood Council boundary, or who participated in the relocation program, or who are located within a five-mile radius of the Aliso Canyon natural gas storage facility and experienced symptoms from the Leak (the Directive). SoCalGas disputes the Directive, contending that it is invalid and unenforceable, and has filed a petition for writ of mandate to set aside the Directive. The costs incurred to remediate and stop the Leak and to mitigate local community impacts have been significant and may increase, and we may be subject to potentially significant damages, restitution, and civil, administrative and criminal fines, penalties and other costs. To the extent any of these costs are not covered by insurance (including any costs in excess of applicable policy limits), or if there were to be significant delays in receiving insurance recoveries, such costs could have a material adverse effect on SoCalGas’ and Sempra Energy’s cash flows, financial condition and results of operations. Cost Estimates and Accounting Impact. At March 31, 2018 , SoCalGas estimates that its costs related to the Leak are $954 million , which includes $928 million of costs recovered or probable of recovery from insurance. Of the $954 million of estimated costs, approximately 60 percent is for the temporary relocation program (including cleaning costs and certain labor costs). Other estimated costs include amounts for efforts to control the well, stop the Leak, stop or reduce the emissions, and the estimated cost of the root cause analysis being conducted by an independent third party to investigate the cause of the Leak. The remaining portion of the $954 million includes legal costs incurred to defend litigation, the estimated costs to settle certain actions, the costs to mitigate the actual natural gas released, the value of lost gas, and other costs. The value of lost gas reflects the replacement cost of all lost gas. SoCalGas adjusts its estimated total liability associated with the Leak as additional information becomes available. The $954 million represents management’s best estimate of these costs related to the Leak. Of these costs, a substantial portion has been paid and $122 million is accrued as Reserve for Aliso Canyon Costs as of March 31, 2018 on SoCalGas’ and Sempra Energy’s Condensed Consolidated Balance Sheets for amounts expected to be paid after March 31, 2018 . As of March 31, 2018 , we recorded the expected recovery of the costs described in the immediately preceding paragraph related to the Leak of $447 million as Insurance Receivable for Aliso Canyon Costs on SoCalGas’ and Sempra Energy’s Condensed Consolidated Balance Sheets. This amount is net of insurance retentions and $481 million of insurance proceeds we received through March 31, 2018 related to control-of-well expenses, lost gas and temporary relocation costs. If we were to conclude that this receivable or a portion of it was no longer probable of recovery from insurers, some or all of this receivable would be charged against earnings, which could have a material adverse effect on SoCalGas’ and Sempra Energy’s cash flows, financial condition and results of operations. As described in “Governmental Investigations and Civil and Criminal Litigation” below, the actions seek compensatory and punitive damages, restitution, and civil, administrative and criminal fines, penalties and other costs, which except for the amounts paid or estimated to settle certain actions, are not included in the above amounts as it is not possible at this time to predict the outcome of these actions or reasonably estimate the amount of damages, restitution or civil, administrative or criminal fines, penalties or other costs that may be imposed. The recorded amounts above also do not include the costs to clean additional homes pursuant to the Directive, future legal costs necessary to defend litigation, and other potential costs that we currently do not anticipate incurring or that we cannot reasonably estimate. Furthermore, the cost estimate of $954 million does not include certain other costs expensed by Sempra Energy through March 31, 2018 associated with defending against shareholder derivative lawsuits. In March 2016, the CPUC ordered SoCalGas to establish a memorandum account to prospectively track its authorized revenue requirement and all revenues that it receives for its normal, business-as-usual costs to own and operate the Aliso Canyon natural gas storage facility and, in September 2016, approved SoCalGas’ request to begin tracking these revenues as of March 17, 2016. The CPUC will determine at a later time whether, and to what extent, the authorized revenues tracked in the memorandum account will be refunded to ratepayers. Insurance. Excluding directors’ and officers’ liability insurance, we have four kinds of insurance policies that together provide between $1.2 billion to $1.4 billion in insurance coverage, depending on the nature of the claims. We cannot predict all of the potential categories of costs or the total amount of costs that we may incur as a result of the Leak. Subject to various policy limits, exclusions and conditions, based on what we know as of the filing date of this report, we believe that our insurance policies collectively should cover the following categories of costs: costs incurred for temporary relocation (including cleaning costs and certain labor costs), costs to address the Leak and stop or reduce emissions, the root cause analysis being conducted to investigate the cause of the Leak, the value of lost natural gas, costs incurred to mitigate the actual natural gas released, costs associated with litigation and claims by nearby residents and businesses, any costs to clean additional homes pursuant to the Directive, and, in some circumstances depending on their nature and manner of assessment, fines and penalties. We have been communicating with our insurance carriers and, as discussed above, we have received insurance payments for portions of control-of-well expenses, lost gas and temporary relocation costs. We intend to pursue the full extent of our insurance coverage for the costs we have incurred or may incur. There can be no assurance that we will be successful in obtaining additional insurance recovery for these costs under the applicable policies, and to the extent we are not successful in obtaining coverage or these costs exceed the amount of our coverage, such costs could have a material adverse effect on SoCalGas’ and Sempra Energy’s cash flows, financial condition and results of operations. At March 31, 2018 , SoCalGas’ estimated costs related to the Leak of $954 million include $928 million of costs recovered or probable of recovery from insurance. This estimate may rise significantly as more information becomes available. Any costs not included in the $954 million cost estimate could be material. To the extent not covered by insurance (including any costs in excess of applicable policy limits), or if there were to be significant delays in receiving insurance recoveries, such costs could have a material adverse effect on SoCalGas’ and Sempra Energy’s cash flows, financial condition and results of operations. Governmental Investigations and Civil and Criminal Litigation. Various governmental agencies, including DOGGR, DPH, SCAQMD, CARB, Los Angeles Regional Water Quality Control Board, California Division of Occupational Safety and Health, CPUC, PHMSA, EPA, Los Angeles County District Attorney’s Office and California Attorney General’s Office, have investigated or are investigating this incident. Other federal agencies (e.g., the DOE and the U.S. Department of the Interior) investigated the incident as part of a joint interagency task force. In January 2016, DOGGR and the CPUC selected Blade Energy Partners to conduct, under their supervision, an independent analysis of the technical root cause of the Leak, to be funded by SoCalGas. The timing of the root cause analysis is under the control of Blade Energy Partners, DOGGR and the CPUC. As of May 3, 2018, 381 lawsuits, including approximately 48,000 plaintiffs, are pending against SoCalGas, some of which have also named Sempra Energy. All of these cases, other than a matter brought by the Los Angeles County District Attorney and the federal securities class action discussed below, are coordinated before a single court in the LA Superior Court for pretrial management (the Coordination Proceeding). Pursuant to the Coordination Proceeding, in March 2017, the individuals and business entities asserting tort and Proposition 65 claims filed a Second Amended Consolidated Master Case Complaint for Individual Actions, through which their separate lawsuits will be managed for pretrial purposes. The consolidated complaint asserts causes of action for negligence, negligence per se, private and public nuisance (continuing and permanent), trespass, inverse condemnation, strict liability, negligent and intentional infliction of emotional distress, fraudulent concealment, loss of consortium and violations of Proposition 65 against SoCalGas, with certain causes also naming Sempra Energy. The consolidated complaint seeks compensatory and punitive damages for personal injuries, lost wages and/or lost profits, property damage and diminution in property value, injunctive relief, costs of future medical monitoring, civil penalties (including penalties associated with Proposition 65 claims alleging violation of requirements for warning about certain chemical exposures), and attorneys’ fees. In January 2017, pursuant to the Coordination Proceeding, two consolidated class action complaints were filed against SoCalGas and Sempra Energy, one on behalf of a putative class of persons and businesses who own or lease real property within a five -mile radius of the well (the Property Class Action), and a second on behalf of a putative class of all persons and entities conducting business within five miles of the facility (the Business Class Action). Both complaints assert claims for strict liability for ultra-hazardous activities, negligence and violation of California Unfair Competition Law. The Property Class Action also asserts claims for negligence per se, trespass, permanent and continuing public and private nuisance, and inverse condemnation. The Business Class Action also asserts a claim for negligent interference with prospective economic advantage. Both complaints seek compensatory, statutory and punitive damages, injunctive relief and attorneys’ fees. In December 2017, the California Court of Appeal, Second Appellate District ruled that the purely economic damages alleged in the Business Class Action are not recoverable under the law. In February 2018, the California Supreme Court granted a petition filed by the plaintiffs to review that ruling. In addition to the lawsuits described above, a federal securities class action alleging violation of the federal securities laws has been filed against Sempra Energy and certain of its officers and certain of its directors in the United States District Court for the Southern District of California. In March 2018, the District Court dismissed the action with prejudice, and in April 2018 the plaintiffs moved for reconsideration of the order. Five shareholder derivative actions are also pending in the Coordination Proceeding alleging breach of fiduciary duties against certain officers and certain directors of Sempra Energy and/or SoCalGas, four of which were joined in a Consolidated Shareholder Derivative Complaint in August 2017. Three actions filed by public entities are pending in the Coordination Proceeding. First, in July 2016, the County of Los Angeles, on behalf of itself and the people of the State of California, filed a complaint against SoCalGas in the LA Superior Court for public nuisance, unfair competition, breach of franchise agreement, breach of lease, and damages. This suit alleges that the four natural gas storage fields operated by SoCalGas in Los Angeles County require safety upgrades, including the installation of a sub-surface safety shut-off valve on every well. It additionally alleges that SoCalGas failed to comply with the DPH Directive. It seeks preliminary and permanent injunctive relief, civil penalties, and damages for the County’s costs to respond to the Leak, as well as punitive damages and attorneys’ fees. Second, in August 2016, the California Attorney General, acting in an independent capacity and on behalf of the people of the State of California and the CARB, together with the Los Angeles City Attorney, filed a third amended complaint on behalf of the people of the State of California against SoCalGas alleging public nuisance, violation of the California Unfair Competition Law, violations of California Health and Safety Code sections 41700 (prohibiting discharge of air contaminants that cause annoyance to the public) and 25510 (requiring reporting of the release of hazardous material), as well as California Government Code section 12607 for equitable relief for the protection of natural resources. The complaint seeks an order for injunctive relief, to abate the public nuisance, and to impose civil penalties. Third, a petition for writ of mandate filed by the County of Los Angeles is pending against DOGGR and its State Oil and Gas Supervisor and the CPUC and its Executive Director, as to which SoCalGas is the real party in interest. The petition alleges that in issuing its July 2017 determination that the requirements for the resumption of injection operations were met (discussed under “Natural Gas Storage Operations and Reliability” below), DOGGR failed to comply with the provisions of SB 380, which requires a comprehensive safety review of the Aliso Canyon natural gas storage facility before injection of natural gas may resume. The County alleges, among other things, that DOGGR failed to comply with the provisions of SB 380 in declaring the safety review complete and authorizing the resumption of injection of natural gas into the facility before the root cause analysis was complete, failing to make its safety-review documents available to the public and failing to address seismic risks to the field as part of its safety review. The County further alleges that CEQA required DOGGR to prepare an EIR before the resumption of injection of natural gas at the facility may be approved. The petition seeks a writ of mandate requiring DOGGR and the State Oil and Gas Supervisor to comply with SB 380 and CEQA, and to produce records in response to the County’s Public Records Act request, as well as declaratory and injunctive relief against any authorization to inject natural gas and attorneys’ fees. Separately, in February 2016, the Los Angeles County District Attorney’s Office filed a misdemeanor criminal complaint against SoCalGas seeking penalties and other remedies for alleged failure to provide timely notice of the Leak pursuant to California Health and Safety Code section 25510(a), Los Angeles County Code section 12.56.030, and Title 19 California Code of Regulations section 2703(a), and for allegedly violating California Health and Safety Code section 41700 prohibiting discharge of air contaminants that cause annoyance to the public. Pursuant to a settlement agreement with the Los Angeles County District Attorney’s Office, SoCalGas agreed to plead no contest to the notice charge under Health and Safety Code section 25510(a) and agreed to pay the maximum fine of $75,000 , penalty assessments of approximately $233,500 , and operational commitments estimated to cost approximately $6 million , reimbursement and assessments in exchange for the Los Angeles County District Attorney’s Office moving to dismiss the remaining counts at sentencing and settling the complaint (the District Attorney Settlement). In November 2016, SoCalGas completed the commitments and obligations under the District Attorney Settlement, and on November 29, 2016, the LA Superior Court approved the settlement and entered judgment on the notice charge. Certain individuals residing near the Aliso Canyon natural gas storage facility who objected to the settlement have filed an appeal of the judgment, contending they should be granted restitution. The costs of defending against these civil and criminal lawsuits, cooperating with these investigations, and any damages, restitution, and civil, administrative and criminal fines, penalties and other costs, if awarded or imposed, as well as the costs of mitigating the actual natural gas released, could be significant and to the extent not covered by insurance (including any costs in excess of applicable policy limits), or if there were to be significant delays in receiving insurance recoveries, such costs could have a material adverse effect on SoCalGas’ and Sempra Energy’s cash flows, financial condition and results of operations. Regulatory Proceedings. In February 2017, the CPUC opened a proceeding pursuant to SB 380 to determine the feasibility of minimizing or eliminating the use of the Aliso Canyon natural gas storage facility, while still maintaining energy and electric reliability for the region. The CPUC indicated it intends to conduct the proceeding in two phases, with Phase 1 undertaking a comprehensive effort to develop the appropriate analyses and scenarios to evaluate the impact of reducing or eliminating the use of the Aliso Canyon natural gas storage facility and Phase 2 using those analyses and scenarios to evaluate the impacts of reducing or eliminating the use of the Aliso Canyon natural gas storage facility. The order establishing the scope of the proceeding expressly excludes issues with respect to air quality, public health, causation, culpability or cost responsibility regarding the Leak. The CPUC adopted a high level Phase 1 schedule contemplating public participation hearings and workshops beginning in April 2017, but no hearings until Phase 2. Section 455.5 of the California Public Utilities Code, among other things, directs regulated utilities to notify the CPUC if all or any portion of a major facility has been out of service for nine consecutive months. Although SoCalGas does not believe the Aliso Canyon natural gas storage facility or any portion of the facility was out of service (as that term is meant in section 455.5) for nine consecutive months, SoCalGas provided notification out of an abundance of caution to demonstrate its commitment to regulatory compliance and transparency, and because obtaining authorization to resume injection operations at the facility required more time than initially contemplated. In response, and as required by section 455.5, the CPUC issued an OII to address whether the Aliso Canyon natural gas storage facility or any portion of the facility was out of service for nine consecutive months under section 455.5, and if so, whether the CPUC should disallow costs for such period from SoCalGas’ rates. Under section 455.5, hearings on the investigation are to be held, if necessary, in conjunction with SoCalGas’ 2019 GRC proceeding. If the CPUC determines that all or any portion of the facility was out of service for nine consecutive months, the amount of any refund to ratepayers and the inability to earn a return on those assets could have a material adverse effect on SoCalGas’ and Sempra Energy’s cash flows, financial condition and results of operations. Governmental Orders and Additional Regulation. In January 2016, the Governor of the State of California issued an order (the Governor’s Order) proclaiming a state of emergency in Los Angeles County due to the Leak. The Governor’s Order imposes various orders with respect to: stopping the Leak; protecting public health and safety; ensuring accountability; and strengthening oversight. Most of the directives in the Governor’s Order have been fulfilled, with the following remaining open items: (1) applicable agencies must convene an independent panel of scientific and medical experts to review public health concerns stemming from the natural gas leak and evaluate whether additional measures are needed to protect public health; (2) the CPUC must ensure that SoCalGas covers costs related to the natural gas leak and its response while protecting ratepayers; (3) CARB must develop a program to fully mitigate the leak’s emissions of methane by March 31, 2016, with such program to be funded by SoCalGas; and (4) DOGGR, CPUC, CARB and the CEC must submit to the Governor’s Office a report that assesses the long-term viability of natural gas storage facilities in California. In December 2015, SoCalGas made a commitment to mitigate the actual natural gas released from the Leak and has been working on a plan to accomplish the mitigation. In March 2016, pursuant to the Governor’s Order, the CARB issued its Aliso Canyon Methane Leak Climate Impacts Mitigation Program , which set forth its recommended approach to achieve full mitigation of the emissions from the Leak. The CARB program requires that reductions in short-lived climate pollutants and other GHG be at least equivalent to the amount of the emissions from the Leak, and that the amount of reductions required be derived using the global warming potential based on a 20 -year term (rather than the 100 -year term the CARB and other state and federal agencies use in regulating emissions), resulting in a target of approximately 9,000,000 metric tons of carbon dioxide equivalent. CARB’s program also calls for all of the mitigation to occur in California over the next five to ten years without the use of allowances or offsets. In October 2016, CARB issued its final report concluding that the incident resulted in total emissions from 90,350 to 108,950 metric tons of methane, and asserting that SoCalGas should mitigate 109,000 metric tons of methane to fully mitigate the GHG impacts of the Leak. We have not agreed with CARB’s estimate of methane released and continue to work with CARB on developing a mitigation plan. Natural Gas Storage Operations and Reliability. Natural gas withdrawn from storage is important for service reliability during peak demand periods, including peak electric generation needs in the summer and heating needs in the winter. The Aliso Canyon natural gas storage facility, with a storage capacity of 86 Bcf (which represents 63 percent of SoCalGas’ natural gas storage inventory capacity), is the largest SoCalGas storage facility and an important element of SoCalGas’ delivery system. Beginning October 25, 2015, pursuant to orders by DOGGR and the Governor of the State of California, and in accordance with SB 380, SoCalGas suspended injection of natural gas into the Aliso Canyon natural gas storage facility. In April and June of 2017, SoCalGas advised the California ISO, CEC, CPUC and PHMSA of its concerns that the inability to inject natural gas into the Aliso Canyon natural gas storage facility posed a risk to energy reliability in Southern California. Limited withdrawals of natural gas from the Aliso Canyon natural gas storage facility were made in 2017 and in February and March of 2018 to augment natural gas supplies during critical demand periods. On July 19, 2017, DOGGR issued its determination that SoCalGas had met the requirements of SB 380 for the resumption of injection operations, including all safety requirements. On the same date, the CPUC’s Executive Director issued his concurrence with that determination, and DOGGR issued its Order to: Test and Take Temporary Actions Upon Resuming Injection: Aliso Canyon Gas Storage Facility lifting the prohibition on injection at the Aliso Canyon natural gas storage facility, subject to certain requirements after injection resumed, including limitations on the rate at which SoCalGas may withdraw natural gas from the field. The CPUC additionally issued a directive to SoCalGas to maintain a range of working gas in the Aliso Canyon natural gas storage facility above 14.8 Bcf at all times, with a target of 23.6 Bcf (approximately 28 percent of its maximum capacity), and later amended the directive to require that the range be maintained from zero Bcf to 24.6 Bcf of working gas. The County of Los Angeles filed a petition for writ of mandate seeking declaratory and injunctive relief and a stay of DOGGR’s order lifting the prohibition against injecting natural gas at the facility. We provide further detail regarding the County of Los Angeles’ suit above in “Governmental Investigations and Civil and Criminal Litigation.” Having completed the steps outlined by state agencies to safely begin injections at the Aliso Canyon natural gas storage facility, as of July 31, 2017, SoCalGas resumed limited injections. If the Aliso Canyon natural gas storage facility were determined to have been out of service for any meaningful period of time or permanently closed, or if future cash flows were otherwise insufficient to recover its carrying value, it could result in an impairment of the facility and significantly higher than expected operating costs and/or additional capital expenditures, and natural gas reliability and electric generation could be jeopardized. At March 31, 2018 , the Aliso Canyon natural gas storage facility has a net book value of $656 million , including $259 million of construction work in progress for the project to construct a new compressor station. Any significant impairment of this asset could have a material adverse effect on SoCalGas’ and Sempra Energy’s results of operations for the period in which it is recorded. Higher operating costs and additional capital expenditures incurred by SoCalGas may not be recoverable in customer rates, and could have a material adverse effect on SoCalGas’ and Sempra Energy’s cash flows, financial condition and results of operations. Sempra Mexico Property Disputes and Permit Challenges Energía Costa Azul. Sempra Mexico has been engaged in a long-running land dispute relating to property adjacent to its ECA LNG terminal near Ensenada, Mexico. A claimant to the adjacent property filed complaints in the federal Agrarian Court challenging the refusal of SEDATU in 2006 to issue a title to him for the disputed property. In November 2013, the federal Agrarian Court ordered that SEDATU issue the requested title and cause it to be registered. Both SEDATU and Sempra Mexico challenged the ruling, due to lack of notification of the underlying process. Both challenges are pending to be resolved by a Federal Court in Mexico. Sempra Mexico expects additional proceedings regarding the claims. Several administrative challenges are pending in Mexico before the Mexican environmental protection agency and the Federal Tax and Administrative Courts seeking revocation of the environmental impact authorization issued to ECA in 2003. These cases generally allege that the conditions and mitigation measures in the environmental impact authorization are inadequate and challenge findings that the activities of the terminal are consistent with regional development guidelines. Cases involving t wo parcels of real property have been filed against ECA. In one case, filed in the federal Agrarian Court in 2006, the plaintiffs seek to annul the recorded property title for a parcel on which the ECA LNG terminal is situated and to obtain possession of a different parcel that allegedly sits in the same place. Another civil complaint was served in April 2012 seeking to invalidate the contract by which ECA purchased another of the terminal parcels, on the grounds the purchase price was unfair; the plaintiff filed a second complaint in 2013 in the federal Agrarian Court seeking an order that SEDATU issue title to her. In January 2016, the federal Agrarian Court ruled against the plaintiff, and the plaintiff appealed the ruling. Sempra Mexico expects further proceedings on these two matters. Guaymas-El Oro Segment of the Sonora Pipeline. IEnova’s Sonora natural gas pipeline consists of two segments, the Sasabe-Puerto Libertad-Guaymas segment, and the Guaymas-El Oro segment. Each segment has its own service agreement with the CFE. In 2015, the Yaqui tribe, with the exception of some members living in the Bácum community, granted its consent and a right-of-way easement agreement for the construction of the Guaymas-El Oro segment of the Sonora natural gas pipeline that crosses its territory. Representatives of the Bácum community filed a legal challenge in Mexican Federal Court demanding the right to withhold consent for the project, the stoppage of work in the Yaqui territory and damag |
SEGMENT INFORMATION
SEGMENT INFORMATION | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | SEGMENT INFORMATION We have seven separately managed, reportable segments, as follows: ▪ SDG&E provides electric service to San Diego and southern Orange counties and natural gas service to San Diego County. ▪ SoCalGas is a natural gas distribution utility, serving customers throughout most of Southern California and part of central California. ▪ Sempra Texas Utility holds our investment in Oncor Holdings, which owns an 80.25 -percent interest in Oncor, a regulated electric transmission and distribution utility serving customers in the north-central, eastern and western parts of Texas. As we discuss in Note 5, we completed our acquisition of the investment in March 2018. ▪ Sempra South American Utilities develops, owns and operates, or holds interests in, electric transmission, distribution and generation infrastructure in Chile and Peru. ▪ Sempra Mexico develops, owns and operates, or holds interests in, natural gas, electric, LNG, LPG, ethane and liquid fuels infrastructure, and has marketing operations for the purchase of LNG and the purchase and sale of natural gas in Mexico. In February 2016, management approved a plan to market and sell the TdM natural gas-fired power plant located in Mexicali, Baja California, as we discuss in Note 5. ▪ Sempra Renewables develops, owns and operates, or holds interests in, wind and solar energy generation facilities serving wholesale electricity markets in the U.S. ▪ Sempra LNG & Midstream develops, owns and operates, or holds interests in, a terminal for the import and export of LNG and sale of natural gas, and natural gas pipelines, storage facilities and marketing operations, all within the U.S. We evaluate each segment’s performance based on its contribution to Sempra Energy’s reported earnings and cash flows. The California Utilities operate in essentially separate service territories, under separate regulatory frameworks and rate structures set by the CPUC. The California Utilities’ operations are based on rates set by the CPUC and the FERC. We describe the accounting policies of all of our segments in Note 1 of the Notes to Consolidated Financial Statements in the Annual Report. Common services shared by the business segments are assigned directly or allocated based on various cost factors, depending on the nature of the service provided. Interest income and expense is recorded on intercompany loans. The loan balances and related interest are eliminated in consolidation. The following tables show selected information by segment from our Condensed Consolidated Statements of Operations and Condensed Consolidated Balance Sheets. Amounts labeled as “All other” in the following tables consist primarily of activities of parent organizations. SEGMENT INFORMATION (Dollars in millions) Three months ended March 31, 2018 2017 REVENUES SDG&E $ 1,055 $ 1,057 SoCalGas 1,126 1,241 Sempra South American Utilities 426 412 Sempra Mexico 308 264 Sempra Renewables 25 22 Sempra LNG & Midstream 104 132 Adjustments and eliminations (1 ) — Intersegment revenues (1) (81 ) (97 ) Total $ 2,962 $ 3,031 INTEREST EXPENSE SDG&E $ 52 $ 49 SoCalGas 27 25 Sempra South American Utilities 10 9 Sempra Mexico 30 32 Sempra Renewables 5 4 Sempra LNG & Midstream 8 11 All other 112 68 Intercompany eliminations (28 ) (29 ) Total $ 216 $ 169 INTEREST INCOME SDG&E $ 1 $ — Sempra South American Utilities 6 5 Sempra Mexico 15 2 Sempra Renewables 2 1 Sempra LNG & Midstream 13 17 All other 14 — Intercompany eliminations (18 ) (19 ) Total $ 33 $ 6 DEPRECIATION AND AMORTIZATION SDG&E $ 166 $ 163 SoCalGas 135 126 Sempra South American Utilities 14 13 Sempra Mexico 43 36 Sempra Renewables 13 9 Sempra LNG & Midstream 11 10 All other 4 3 Total $ 386 $ 360 INCOME TAX EXPENSE (BENEFIT) SDG&E $ 56 $ 90 SoCalGas 59 98 Sempra South American Utilities 20 19 Sempra Mexico 155 142 Sempra Renewables (7 ) (11 ) Sempra LNG & Midstream 12 1 All other (6 ) (44 ) Total $ 289 $ 295 SEGMENT INFORMATION (CONTINUED) (Dollars in millions) Three months ended March 31, 2018 2017 EQUITY EARNINGS (LOSSES) Equity earnings before income tax: Sempra Renewables $ 5 $ 2 Sempra LNG & Midstream — 1 5 3 Equity earnings (losses) net of income tax: Sempra Texas Utility 15 — Sempra South American Utilities 1 1 Sempra Mexico (41 ) (9 ) (25 ) (8 ) Total $ (20 ) $ (5 ) EARNINGS (LOSSES) ATTRIBUTABLE TO COMMON SHARES SDG&E $ 170 $ 155 SoCalGas (2) 225 203 Sempra Texas Utility 15 — Sempra South American Utilities 46 47 Sempra Mexico 20 48 Sempra Renewables 21 11 Sempra LNG & Midstream (16 ) 1 All other (2) (134 ) (24 ) Total $ 347 $ 441 EXPENDITURES FOR PROPERTY, PLANT & EQUIPMENT SDG&E $ 475 $ 418 SoCalGas 403 357 Sempra South American Utilities 56 43 Sempra Mexico 59 94 Sempra Renewables 31 69 Sempra LNG & Midstream 6 3 All other 5 8 Total $ 1,035 $ 992 March 31, 2018 December 31, 2017 ASSETS SDG&E $ 18,017 $ 17,844 SoCalGas 14,462 14,159 Sempra Texas Utility 9,176 — Sempra South American Utilities 4,154 4,060 Sempra Mexico 8,798 8,554 Sempra Renewables 2,764 2,898 Sempra LNG & Midstream 4,904 4,872 All other 964 915 Intersegment receivables (2,754 ) (2,848 ) Total $ 60,485 $ 50,454 EQUITY METHOD AND OTHER INVESTMENTS Sempra Texas Utility $ 9,176 $ — Sempra South American Utilities 17 16 Sempra Mexico 613 624 Sempra Renewables 798 813 Sempra LNG & Midstream 1,085 997 All other 77 77 Total $ 11,766 $ 2,527 (1) Revenues for reportable segments include intersegment revenues of $1 million , $17 million , $29 million and $34 million for the three months ended March 31, 2018 and $1 million , $18 million , $25 million and $53 million for the three months ended March 31, 2017 for SDG&E, SoCalGas, Sempra Mexico and Sempra LNG & Midstream, respectively. (2) |
GENERAL INFORMATION AND OTHER20
GENERAL INFORMATION AND OTHER FINANCIAL DATA (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Principles of Consolidation | PRINCIPLES OF CONSOLIDATION Sempra Energy Sempra Energy’s Condensed Consolidated Financial Statements include the accounts of Sempra Energy, a California-based Fortune 500 energy-services holding company, and its consolidated subsidiaries and VIEs. Sempra Energy’s operating units are: ▪ Sempra Utilities, which includes our SDG&E, SoCalGas, Sempra South American Utilities and our newly formed Sempra Texas Utility reportable segments. We discuss our new Sempra Texas Utility reportable segment in Notes 5 and 6; and ▪ Sempra Infrastructure, which includes our Sempra Mexico, Sempra Renewables and Sempra LNG & Midstream reportable segments. We refer to SDG&E and SoCalGas collectively as the California Utilities, which do not include our Texas utility investment, South American utilities or the utility in our Sempra Infrastructure operating unit. Sempra Global is the holding company for most of our subsidiaries that are not subject to California or Texas utility regulation. All references in these Notes to “Sempra Utilities,” “Sempra Infrastructure” and their respective reportable segments are not intended to refer to any legal entity with the same or similar name. SDG&E SDG&E’s Condensed Consolidated Financial Statements include its accounts and the accounts of a VIE of which SDG&E is the primary beneficiary, as we discuss below in “Variable Interest Entities.” SDG&E’s common stock is wholly owned by Enova Corporation, which is a wholly owned subsidiary of Sempra Energy. SoCalGas |
Basis of Presentation | BASIS OF PRESENTATION This is a combined report of Sempra Energy, SDG&E and SoCalGas. We provide separate information for SDG&E and SoCalGas as required. References in this report to “we,” “our” and “Sempra Energy Consolidated” are to Sempra Energy and its consolidated entities, unless otherwise indicated by the context. We have eliminated intercompany accounts and transactions within the consolidated financial statements of each reporting entity. Throughout this report, we refer to the following as Condensed Consolidated Financial Statements and Notes to Condensed Consolidated Financial Statements when discussed together or collectively: ▪ the Condensed Consolidated Financial Statements and related Notes of Sempra Energy and its subsidiaries and VIEs; ▪ the Condensed Consolidated Financial Statements and related Notes of SDG&E and its VIE; and ▪ the Condensed Financial Statements and related Notes of SoCalGas. We have prepared the Condensed Consolidated Financial Statements in conformity with U.S. GAAP and in accordance with the interim-period-reporting requirements of Form 10-Q. Results of operations for interim periods are not necessarily indicative of results for the entire year. We evaluated events and transactions that occurred after March 31, 2018 through the date the financial statements were issued and, in the opinion of management, the accompanying statements reflect all adjustments necessary for a fair presentation. These adjustments are only of a normal, recurring nature. All December 31, 2017 balance sheet information in the Condensed Consolidated Financial Statements has been derived from our audited 2017 Consolidated Financial Statements in the Annual Report. Certain information and note disclosures normally included in annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to the interim-period-reporting provisions of U.S. GAAP and the SEC. We describe our significant accounting policies in Note 1 of the Notes to Consolidated Financial Statements in the Annual Report and the impact of the adoption of new accounting standards on those policies in Note 2 below. We follow the same accounting policies for interim reporting purposes. |
Variable Interest Entity Policy | VARIABLE INTEREST ENTITIES We consolidate a VIE if we are the primary beneficiary of the VIE. Our determination of whether we are the primary beneficiary is based upon qualitative and quantitative analyses, which assess: ▪ the purpose and design of the VIE; ▪ the nature of the VIE’s risks and the risks we absorb; ▪ the power to direct activities that most significantly impact the economic performance of the VIE; and ▪ |
Earnings Per Share Policy | The potentially dilutive impact from stock options, RSAs and RSUs is calculated under the treasury stock method. Under this method, proceeds based on the exercise price and unearned compensation are assumed to be used to repurchase shares on the open market at the average market price for the period, reducing the number of potential new shares to be issued and sometimes causing an antidilutive effect. The potentially dilutive impact from our 6% mandatory convertible preferred stock, series A (mandatory convertible preferred stock) issued in January 2018 is calculated under the if-converted method. We discuss share-based compensation plans and related awards further in Note 8 of the Notes to Consolidated Financial Statements in the Annual Report.Basic EPS is calculated by dividing earnings attributable to common stock by the weighted-average number of common shares outstanding for the period. Diluted EPS includes the potential dilution of common stock equivalent shares that could occur if securities or other contracts to issue common stock were exercised or converted into common stock.The potentially dilutive impact from the forward sale of our common stock pursuant to the forward sale agreements that we discuss below in “Shareholders’ Equity and Noncontrolling Interests – Sempra Energy Common Stock Offering,” is reflected in our diluted EPS calculation using the treasury stock method. |
Interim period effective tax rate policy | Sempra Energy, SDG&E and SoCalGas record income taxes for interim periods utilizing a forecasted ETR anticipated for the full year, in accordance with U.S. GAAP. Unusual and infrequent items and items that cannot be reliably estimated are recorded in the interim period in which they actually occur, which can result in variability in the ETR. For SDG&E and SoCalGas, the CPUC requires flow-through rate-making treatment for the current income tax benefit or expense arising from certain property-related and other temporary differences between the treatment for financial reporting and income tax, which will reverse over time. Under the regulatory accounting treatment required for these flow-through temporary differences, deferred income tax assets and liabilities are not recorded to deferred income tax expense, but rather to a regulatory asset or liability, which impacts the ETR. As a result, changes in the relative size of these items compared to pretax income, from period to period, can cause variations in the ETR. The following items are subject to flow-through treatment: ▪ repairs expenditures related to a certain portion of utility plant assets ▪ the equity portion of AFUDC ▪ a portion of the cost of removal of utility plant assets ▪ utility self-developed software expenditures ▪ depreciation on a certain portion of utility plant assets ▪ state income taxes |
Flow-through rate-making treatment tax policy | For SDG&E and SoCalGas, the CPUC requires flow-through rate-making treatment for the current income tax benefit or expense arising from certain property-related and other temporary differences between the treatment for financial reporting and income tax, which will reverse over time. Under the regulatory accounting treatment required for these flow-through temporary differences, deferred income tax assets and liabilities are not recorded to deferred income tax expense, but rather to a regulatory asset or liability, which impacts the ETR. As a result, changes in the relative size of these items compared to pretax income, from period to period, can cause variations in the ETR. The following items are subject to flow-through treatment: ▪ repairs expenditures related to a certain portion of utility plant assets ▪ the equity portion of AFUDC ▪ a portion of the cost of removal of utility plant assets ▪ utility self-developed software expenditures ▪ depreciation on a certain portion of utility plant assets ▪ state income taxes |
Derivatives Policy | We use derivative instruments primarily to manage exposures arising in the normal course of business. Our principal exposures are commodity market risk, benchmark interest rate risk and foreign exchange rate exposures. Our use of derivatives for these risks is integrated into the economic management of our anticipated revenues, anticipated expenses, assets and liabilities. Derivatives may be effective in mitigating these risks (1) that could lead to declines in anticipated revenues or increases in anticipated expenses, or (2) that our asset values may fall or our liabilities increase. Accordingly, our derivative activity summarized below generally represents an impact that is intended to offset associated revenues, expenses, assets or liabilities that are not included in the tables below. In certain cases, we apply the normal purchase or sale exception to derivative instruments and have other commodity contracts that are not derivatives. These contracts are not recorded at fair value and are therefore excluded from the disclosures below. In all other cases, we record derivatives at fair value on the Condensed Consolidated Balance Sheets. We designate each derivative as (1) a cash flow hedge, (2) a fair value hedge, or (3) undesignated. Depending on the applicability of hedge accounting and, for the California Utilities and other operations subject to regulatory accounting, the requirement to pass impacts through to customers, the impact of derivative instruments may be offset in OCI (cash flow hedge), on the balance sheet (fair value hedges and regulatory offsets), or recognized in earnings. We classify cash flows from the principal settlements of cross-currency swaps that hedge exposure related to Mexican peso-denominated debt as financing activities, and settlements of other derivative instruments as operating activities, on the Condensed Consolidated Statements of Cash Flows. HEDGE ACCOUNTING We may designate a derivative as a cash flow hedging instrument if it effectively converts anticipated cash flows associated with revenues or expenses to a fixed dollar amount. We may utilize cash flow hedge accounting for derivative commodity instruments, foreign currency instruments and interest rate instruments. Designating cash flow hedges is dependent on the business context in which the instrument is being used, the effectiveness of the instrument in offsetting the risk that the future cash flows of a given revenue or expense item may vary, and other criteria. We may designate an interest rate derivative as a fair value hedging instrument if it effectively converts our own debt from a fixed interest rate to a variable rate. The combination of the derivative and debt instrument results in fixing that portion of the fair value of the debt that is related to benchmark interest rates. Designating fair value hedges is dependent on the instrument being used, the effectiveness of the instrument in offsetting changes in the fair value of our debt instruments, and other criteria. ENERGY DERIVATIVES Our market risk is primarily related to natural gas and electricity price volatility and the specific physical locations where we transact. We use energy derivatives to manage these risks. The use of energy derivatives in our various businesses depends on the particular energy market, and the operating and regulatory environments applicable to the business, as follows: ▪ The California Utilities use natural gas and electricity derivatives, for the benefit of customers, with the objective of managing price risk and basis risks, and stabilizing and lowering natural gas and electricity costs. These derivatives include fixed price natural gas and electricity positions, options, and basis risk instruments, which are either exchange-traded or over-the-counter financial instruments, or bilateral physical transactions. This activity is governed by risk management and transacting activity plans that have been filed with and approved by the CPUC. Natural gas and electricity derivative activities are recorded as commodity costs that are offset by regulatory account balances and are recovered in rates. Net commodity cost impacts on the Condensed Consolidated Statements of Operations are reflected in Cost of Electric Fuel and Purchased Power or in Cost of Natural Gas. ▪ SDG&E is allocated and may purchase CRRs, which serve to reduce the regional electricity price volatility risk that may result from local transmission capacity constraints. Unrealized gains and losses do not impact earnings, as they are offset by regulatory account balances. Realized gains and losses associated with CRRs, which are recoverable in rates, are recorded in Cost of Electric Fuel and Purchased Power on the Condensed Consolidated Statements of Operations. ▪ Sempra Mexico, Sempra LNG & Midstream, and Sempra Renewables may use natural gas and electricity derivatives, as appropriate, to optimize the earnings of their assets which support the following businesses: LNG, natural gas transportation and storage, and power generation. Gains and losses associated with undesignated derivatives are recognized in Energy-Related Businesses Revenues or in Cost of Natural Gas, Electric Fuel and Purchased Power on the Condensed Consolidated Statements of Operations. Certain of these derivatives may also be designated as cash flow hedges. Sempra Mexico may also use natural gas energy derivatives with the objective of managing price risk and lowering natural gas prices at its distribution operations. These derivatives, which are recorded as commodity costs that are offset by regulatory account balances and recovered in rates, are recognized in Cost of Natural Gas on the Condensed Consolidated Statements of Operations. ▪ From time to time, our various businesses, including the California Utilities, may use other energy derivatives to hedge exposures such as the price of vehicle fuel and GHG allowances. We utilize cross-currency swaps to hedge exposure related to Mexican peso-denominated debt at our Mexican subsidiaries and joint ventures. These cash flow hedges exchange our Mexican peso-denominated principal and interest payments into the U.S. dollar and swap Mexican variable interest rates for U.S. fixed interest rates. From time to time, Sempra Mexico and its joint ventures may use other foreign currency derivatives to hedge exposures related to cash flows associated with revenues from contracts denominated in Mexican pesos that are indexed to the U.S. dollar. We are also exposed to exchange rate movements at our Mexican subsidiaries and joint ventures, which have U.S. dollar-denominated cash balances, receivables, payables and debt (monetary assets and liabilities) that give rise to Mexican currency exchange rate movements for Mexican income tax purposes. They also have deferred income tax assets and liabilities denominated in the Mexican peso, which must be translated to U.S. dollars for financial reporting purposes. In addition, monetary assets and liabilities and certain nonmonetary assets and liabilities are adjusted for Mexican inflation for Mexican income tax purposes. We utilize foreign currency derivatives as a means to manage the risk of exposure to significant fluctuations in our income tax expense and equity earnings from these impacts, however we generally do not hedge our deferred income tax assets and liabilities or inflation. INTEREST RATE DERIVATIVES |
Fair Value Measurement Policy | We classify financial assets and liabilities in their entirety based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement requires judgment, and may affect the valuation of fair value assets and liabilities, and their placement within the fair value hierarchy. We have not changed the valuation techniques or types of inputs we use to measure recurring fair value during the three months ended March 31, 2018 . The fair value of commodity derivative assets and liabilities is presented in accordance with our netting policy, as we discuss in Note 8 under “Financial Statement Presentation.” The determination of fair values, shown in the tables below, incorporates various factors, including but not limited to, the credit standing of the counterparties involved and the impact of credit enhancements (such as cash deposits, letters of credit and priority interests). Our financial assets and liabilities that were accounted for at fair value on a recurring basis at March 31, 2018 and December 31, 2017 in the tables below include, other than a $9 million investment at March 31, 2018 measured at net asset value, the following: ▪ Nuclear decommissioning trusts reflect the assets of SDG&E’s NDT, excluding cash balances. A third party trustee values the trust assets using prices from a pricing service based on a market approach. We validate these prices by comparison to prices from other independent data sources. Securities are valued using quoted prices listed on nationally recognized securities exchanges or based on closing prices reported in the active market in which the identical security is traded (Level 1). Other securities are valued based on yields that are currently available for comparable securities of issuers with similar credit ratings (Level 2). ▪ For commodity contracts, interest rate derivatives and foreign exchange instruments, we primarily use a market approach with market participant assumptions to value these derivatives. Market participant assumptions include those about risk, and the risk inherent in the inputs to the valuation techniques. These inputs can be readily observable, market corroborated, or generally unobservable. We have exchange-traded derivatives that are valued based on quoted prices in active markets for the identical instruments (Level 1). We also may have other commodity derivatives that are valued using industry standard models that consider quoted forward prices for commodities, time value, current market and contractual prices for the underlying instruments, volatility factors, and other relevant economic measures (Level 2). Level 3 recurring items relate to CRRs and long-term, fixed-price electricity positions at SDG&E, as we discuss below in “Level 3 Information.” ▪ Rabbi Trust investments include marketable securities that we value using a market approach based on closing prices reported in the active market in which the identical security is traded (Level 1). These investments in marketable securities were negligible at both March 31, 2018 and December 31, 2017 Realized gains and losses associated with CRRs and long-term electricity positions, which are recoverable in rates, are recorded in Cost of Electric Fuel and Purchased Power on the Condensed Consolidated Statements of Operations. Unrealized gains and losses are recorded as regulatory assets and liabilities and therefore do not affect earnings. Fair Value of Financial Instruments |
Segment Policy | We have seven separately managed, reportable segments, as follows: ▪ SDG&E provides electric service to San Diego and southern Orange counties and natural gas service to San Diego County. ▪ SoCalGas is a natural gas distribution utility, serving customers throughout most of Southern California and part of central California. ▪ Sempra Texas Utility holds our investment in Oncor Holdings, which owns an 80.25 -percent interest in Oncor, a regulated electric transmission and distribution utility serving customers in the north-central, eastern and western parts of Texas. As we discuss in Note 5, we completed our acquisition of the investment in March 2018. ▪ Sempra South American Utilities develops, owns and operates, or holds interests in, electric transmission, distribution and generation infrastructure in Chile and Peru. ▪ Sempra Mexico develops, owns and operates, or holds interests in, natural gas, electric, LNG, LPG, ethane and liquid fuels infrastructure, and has marketing operations for the purchase of LNG and the purchase and sale of natural gas in Mexico. In February 2016, management approved a plan to market and sell the TdM natural gas-fired power plant located in Mexicali, Baja California, as we discuss in Note 5. ▪ Sempra Renewables develops, owns and operates, or holds interests in, wind and solar energy generation facilities serving wholesale electricity markets in the U.S. ▪ Sempra LNG & Midstream develops, owns and operates, or holds interests in, a terminal for the import and export of LNG and sale of natural gas, and natural gas pipelines, storage facilities and marketing operations, all within the U.S. We evaluate each segment’s performance based on its contribution to Sempra Energy’s reported earnings and cash flows. The California Utilities operate in essentially separate service territories, under separate regulatory frameworks and rate structures set by the CPUC. The California Utilities’ operations are based on rates set by the CPUC and the FERC. We describe the accounting policies of all of our segments in Note 1 of the Notes to Consolidated Financial Statements in the Annual Report. |
Legal Costs Policy | LEGAL PROCEEDINGSWe accrue losses for a legal proceeding when it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. However, the uncertainties inherent in legal proceedings make it difficult to estimate with reasonable certainty the costs and effects of resolving these matters. Accordingly, actual costs incurred may differ materially from amounts accrued, may exceed applicable insurance coverage and could materially adversely affect our business, cash flows, results of operations, financial condition and prospects. Unless otherwise indicated, we are unable to estimate reasonably possible losses in excess of any amounts accrued. |
New Accounting Standards | NEW ACCOUNTING STANDARDS We describe below recent pronouncements that have had or may have a significant effect on our financial condition, results of operations, cash flows or disclosures. ASU 2014-09, “Revenue from Contracts with Customers,” ASU 2015-14, “Deferral of the Effective Date,” ASU 2016-08, “Principal versus Agent Considerations (Reporting Revenue Gross versus Net),” ASU 2016-10, “Identifying Performance Obligations and Licensing” and ASU 2016-12, “Narrow-Scope Improvements and Practical Expedients”: ASU 2014-09 adds ASC 606 to provide accounting guidance for the recognition of revenue from contracts with customers and affects all entities that enter into contracts to provide goods or services to their customers. The guidance also provides a model for the measurement and recognition of gains and losses on the sale of certain nonfinancial assets, such as property and equipment, including real estate. This guidance must be adopted using either a full retrospective approach for all periods presented in the period of adoption or a modified retrospective approach. Amending ASU 2014-09, ASU 2016-08 clarifies the implementation guidance on principal versus agent considerations, ASU 2016-10 clarifies the determination of whether a good or service is separately identifiable from other promises and revenue recognition related to licenses of intellectual property, and ASU 2016-12 provides guidance on transition, collectability, noncash consideration, and the presentation of sales and other similar taxes. The ASUs are codified in ASC 606. We adopted ASC 606 on January 1, 2018, applying the modified retrospective transition method to all contracts as of January 1, 2018 and elected to use certain practical expedients available under the transition guidance. The impact from adoption was not material to our financial statements, and the timing of our revenue recognition has remained materially consistent before and after the adoption of ASC 606. The new revenue standard provides specific guidance for combining contracts, which resulted in a prospective reclassification between cost of sales and revenues within our Sempra LNG & Midstream segment. This reclassification had no impact on Sempra Energy’s consolidated revenues or cost of sales. Our additional disclosures about the nature, amount, timing and uncertainty of revenues arising from contracts with customers are included in Note 3. ASU 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities” and ASU 2018-03, “Technical Corrections and Improvements to Financial Instruments – Overall”: In addition to the presentation and disclosure requirements for financial instruments, ASU 2016-01 requires entities to measure equity investments, other than those accounted for under the equity method, at fair value and recognize changes in fair value in net income. Entities will no longer be able to use the cost method of accounting for equity securities. However, for equity investments without readily determinable fair values that do not qualify for the practical expedient to estimate fair value using net asset value per share, entities may elect a measurement alternative that will allow those investments to be recorded at cost, less impairment, and adjusted for subsequent observable price changes. ASU 2018-03 clarifies that the prospective transition approach for equity investments without readily determinable fair values is meant only for instances in which the measurement alternative is elected. Entities must record a cumulative-effect adjustment to the balance sheet as of the beginning of the first reporting period in which the standard is adopted, except for equity investments without readily determinable fair values, for which the guidance will be applied prospectively. We adopted ASU 2016-01 and ASU 2018-03 on January 1, 2018. Sempra Energy recognized a cumulative-effect adjustment to decrease Retained Earnings and Other Investments as of January 1, 2018 by $1 million . ASU 2016-02, “Leases” and ASU 2018-01, “Land Easement Practical Expedient for Transition to Topic 842”: ASU 2016-02 requires entities to include substantially all leases on the balance sheet by requiring the recognition of right-of-use assets and lease liabilities for all leases. Entities may elect to exclude from the balance sheet those leases with a maximum possible term of less than 12 months. For lessees, a lease is classified as finance or operating, and the asset and liability are initially measured at the present value of the lease payments. For lessors, accounting for leases is largely unchanged from previous provisions of U.S. GAAP, other than certain changes to align lessor accounting to specific changes made to lessee accounting and ASC 606. ASU 2016-02 also requires new qualitative and quantitative disclosures for both lessees and lessors. ASU 2018-01 allows entities to elect a transition practical expedient that would exclude application of ASU 2016-02 to land easements that existed prior to its adoption, if they were not accounted for as leases under previous U.S. GAAP. For public entities, these ASUs are effective for fiscal years beginning after December 15, 2018, with early adoption permitted, and are effective for interim periods in the year of adoption. ASU 2016-02 requires lessees and lessors to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The modified retrospective approach includes practical expedients that may be elected, which would allow entities to continue to account for leases that commence before the effective date of the standard in accordance with previous U.S. GAAP unless the lease is modified, except for the lessee requirement to begin recognizing right-of-use assets and lease liabilities for all operating leases on the balance sheet at the reporting date. We are currently evaluating the effect of the standards on our ongoing financial reporting and plan to adopt the standards on January 1, 2019. As part of our evaluation, we formed a steering committee comprised of members from relevant Sempra Energy business units, are compiling our population of contracts and are preparing our lease accounting assessments. Based on our assessment to date, we have determined that we will elect the practical expedients available under the transition guidance described above. The FASB recently approved amendments to create an additional transition method to apply ASU 2016-02 in the period of adoption rather than in the earliest period presented and a lessor practical expedient for separating lease and non-lease components. The FASB is in the process of finalizing a new ASU that would amend ASU 2016-02. ASU 2016-13, “Measurement of Credit Losses on Financial Instruments”: ASU 2016-13 changes how entities will measure credit losses for most financial assets and certain other instruments. The standard introduces an “expected credit loss” impairment model that requires immediate recognition of estimated credit losses expected to occur over the remaining life of most financial assets measured at amortized cost, including trade and other receivables, loan commitments and financial guarantees. ASU 2016-13 also requires use of an allowance to record estimated credit losses on available-for-sale debt securities and expands disclosure requirements regarding an entity’s assumptions, models and methods for estimating the credit losses. For public entities, ASU 2016-13 is effective for fiscal years beginning after December 15, 2019, with early adoption permitted for fiscal years beginning after December 15, 2018. We are currently evaluating the effect of the standard on our ongoing financial reporting and have not yet selected the year in which we will adopt the standard. ASU 2016-15, “Classification of Certain Cash Receipts and Cash Payments” and ASU 2016-18, “Restricted Cash”: ASU 2016-15 provides guidance on how certain cash receipts and cash payments are to be presented and classified in the statement of cash flows to reduce diversity in practice. ASU 2016-18 requires amounts classified as restricted cash and restricted cash equivalents to be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. A reconciliation between the balance sheet and the statement of cash flows must be disclosed when the balance sheet includes more than one line item for cash, cash equivalents, restricted cash and restricted cash equivalents. We early adopted ASU 2016-15 and ASU 2016-18 on a retrospective basis in the fourth quarter of 2017. Neither ASU impacted SoCalGas’ Condensed Statements of Cash Flows. The adoption of ASU 2016-15 did not impact the Sempra Energy or SDG&E Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2017, based on the timing of cash receipts and cash payments affected by the ASU. Upon adoption of ASU 2016-18, Sempra Energy’s and SDG&E’s Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2017 were impacted as follows: IMPACT FROM ADOPTION OF ASU 2016-18 (Dollars in millions) Three months ended March 31, 2017 As previously reported Effect of adoption As adjusted Sempra Energy Condensed Consolidated Statement of Cash Flows: Cash flows from investing activities: Increases in restricted cash $ (93 ) $ 93 $ — Decreases in restricted cash 93 (93 ) — Effect of exchange rate changes on cash and cash equivalents 9 (9 ) — Effect of exchange rate changes on cash, cash equivalents and restricted cash — 10 10 Decrease in cash and cash equivalents (59 ) 59 — Decrease in cash, cash equivalents, and restricted cash — (58 ) (58 ) Cash and cash equivalents, January 1 349 (349 ) — Cash, cash equivalents and restricted cash, January 1 — 425 425 Cash and cash equivalents, March 31 290 (290 ) — Cash, cash equivalents and restricted cash, March 31 — 367 367 SDG&E Condensed Consolidated Statement of Cash Flows: Cash flows from investing activities: Increases in restricted cash $ (10 ) $ 10 $ — Decreases in restricted cash 9 (9 ) — Net cash used in investing activities (381 ) 1 (380 ) Increase in cash and cash equivalents 10 (10 ) — Increase in cash, cash equivalents, and restricted cash — 11 11 Cash and cash equivalents, January 1 8 (8 ) — Cash, cash equivalents and restricted cash, January 1 — 20 20 Cash and cash equivalents, March 31 18 (18 ) — Cash, cash equivalents and restricted cash, March 31 — 31 31 ASU 2017-04, “Simplifying the Test for Goodwill Impairment”: ASU 2017-04 removes the second step of the goodwill impairment test, which requires a hypothetical purchase price allocation. An entity will be required to apply a one-step quantitative test and record the amount of goodwill impairment as the excess of a reporting unit’s carrying amount over its fair value, not to exceed the carrying amount of goodwill. For public entities, ASU 2017-04 is effective for annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019, with early adoption permitted. The amendments are to be applied on a prospective basis. We have not yet selected the year in which we will adopt the standard. ASU 2017-05, “Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets”: ASU 2017-05 clarifies the scope of accounting for the derecognition or partial sale of nonfinancial assets to exclude all businesses and nonprofit activities. ASU 2017-05 also provides a definition for in-substance nonfinancial assets and additional guidance on partial sales of nonfinancial assets. We adopted the standard in conjunction with our adoption of ASC 606 on January 1, 2018 using the modified retrospective transition method and it did not materially affect our financial condition, results of operations or cash flows. ASU 2017-07, “Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost”: ASU 2017-07 requires the service cost component of net periodic benefit costs to be presented in the same income statement line item as other employee compensation costs arising from services rendered during the period and the other components of net periodic benefit costs to be presented separately outside of operating income. The guidance also allows only the service cost component to be eligible for capitalization. Amendments are to be applied retrospectively for presentation of costs and prospectively for capitalization of service costs. The guidance allows a practical expedient that permits use of previously disclosed service costs and other costs from the pension and other postretirement benefit plan disclosure in the comparative periods as appropriate estimates when retrospectively changing the presentation of these costs in the statements of operations. We adopted the standard on January 1, 2018 and elected the practical expedient available under the transition guidance. Upon adoption of ASU 2017-07, our Condensed Consolidated Statements of Operations for the three months ended March 31, 2017 were impacted as follows: IMPACT FROM ADOPTION OF ASU 2017-07 (Dollars in millions) Three months ended March 31, 2017 As previously reported Effect of adoption As adjusted Sempra Energy Condensed Consolidated Statement of Operations: Operation and maintenance $ 714 $ 5 $ 719 Other income, net 169 5 174 SDG&E Condensed Consolidated Statement of Operations: Operation and maintenance $ 227 $ 4 $ 231 Total operating expenses 779 4 783 Operating income 278 (4 ) 274 Other income, net 18 4 22 SoCalGas Condensed Statement of Operations: Operation and maintenance $ 353 $ 3 $ 356 Total operating expenses 926 3 929 Operating income 315 (3 ) 312 Other income, net 11 3 14 ASU 2017-12, “Targeted Improvements to Accounting for Hedging Activities”: ASU 2017-12 changes the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge accounting results. More specifically, the guidance expands the exposures that can be hedged to align with an entity’s risk management strategies, alleviates documentation requirements, eliminates the concept of recognizing periodic hedge ineffectiveness for cash flow and net investment hedges and requires entities to present the entire change in the fair value of a hedging instrument in the same income statement line item as the earnings effect of the hedged item. Transition elections are available for all hedges that exist at the date of adoption. We early adopted ASU 2017-12 on January 1, 2018 by applying the modified retrospective approach to the accounting for existing hedging relationships. Sempra Energy recognized a cumulative-effect adjustment to increase Retained Earnings and Accumulated Other Comprehensive Loss as of January 1, 2018 by $3 million . ASU 2018-02, “Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income”: ASU 2018-02 contains amendments that allow a reclassification from AOCI to retained earnings for stranded tax effects resulting from the TCJA. Under ASU 2018-02, an entity will be required to provide certain disclosures regarding stranded tax effects, including its accounting policy related to releasing the income tax effects from AOCI. The amendments in this update can be applied either as of the beginning of the period of adoption or retrospectively as of the date of enactment of the TCJA and to each period in which the effect of the TCJA is recognized. For public entities, ASU 2018-02 is effective for annual reporting periods beginning after December 15, 2018, including interim periods therein, with early adoption permitted. We are currently evaluating the effect of the standard on our financial reporting and have not yet selected the adoption method or the year in which we will adopt the standard. ASU 2018-05, “Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118”: As a result of the TCJA, the SEC staff issued Staff Accounting Bulletin (SAB) No. 118, which provides guidance on accounting for the TCJA’s impact. Under SAB 118, an entity may apply an approach similar to the measurement period in a business combination. That is, an entity would record those impacts for which the accounting is complete. For matters that are not certain, the entity would either (1) recognize provisional amounts to the extent that they are reasonably estimable and adjust them over time as more information becomes available, or (2) for any specific income tax effects of the TCJA for which a reasonable estimate cannot be determined, continue to apply ASC 740, Income Taxes |
Other Revenue | REVENUES FROM SOURCES OTHER THAN CONTRACTS WITH CUSTOMERS Certain of our revenues are derived from sources other than contracts with customers and are accounted for under other accounting standards outside the scope of ASC 606. Utilities Regulatory Revenues Alternative Revenue Programs We recognize revenues from alternative revenue programs when the regulator-specified conditions for recognition have been met and adjust these revenues as they are recovered or refunded through incorporation in future utility service. Decoupled revenues. As discussed earlier, the regulatory framework requires the California Utilities to recover authorized revenue based on estimated annual demand forecasts approved in regular proceedings before the CPUC. However, actual demand for electricity and natural gas will generally vary from CPUC-approved forecasted demand due to the impacts from weather volatility, energy efficiency programs, rooftop solar and other factors affecting consumption. The CPUC regulatory framework provides for the California Utilities to use a “decoupling” mechanism, which allows the California Utilities to record revenue shortfalls or excess revenues resulting from any difference between actual and forecasted demand to be recovered or refunded in authorized revenue in a subsequent period based on the nature of the account. Incentive mechanisms. The CPUC applies performance-based measures and incentive mechanisms to all California IOUs, under which the California Utilities have earnings potential above authorized base margins if they achieve or exceed specific performance and operating goals. Generally, for performance-based awards, if performance is above or below specific benchmarks, the utility is eligible for financial awards or subject to financial penalties. Incentive awards are included in revenues when we receive required CPUC approval of the award, the timing of which may not be consistent from year to year. We would record penalties for results below the specified benchmarks against revenues when we believe it is probable that the CPUC would assess a penalty. Other Cost-Based Regulatory Recovery The CPUC authorizes the California Utilities to collect revenue requirements for costs that they have been authorized to recover from customers, including the costs to purchase electricity and natural gas, costs associated with administering public purpose, demand response, and customer energy efficiency programs and other programmatic activities authorized as part of the GRC or separately from the GRC. Actual costs are recovered as the commodity or service is delivered, or to the extent actual amounts vary from forecasts, generally recovered or refunded within a subsequent period based on the nature of the account through a balancing account mechanism. In general, the revenue recognition criteria for pass-through costs billed to customers are met at the time the costs are incurred. Because SDG&E’s and SoCalGas’ cost of electricity and/or natural gas is substantially recovered in rates through a balancing account mechanism, changes in these costs are reflected in the changes in revenues, and therefore do not impact earnings. The CPUC authorizes balancing accounts for certain programmatic activities. Amounts billed to customers, if any, are recorded in these accounts, as well as actual O&M and applicable capital-related costs (such as depreciation, taxes and ROE). Differences between actual and authorized expenditures are tracked and may be recovered or refunded within a GRC cycle or as part of the subsequent GRC request. Examples of these types of programs include, but are not limited to, gas distribution, gas transmission, and gas storage integrity management. The CPUC may impose various review procedures before authorizing recovery or refund for programs authorized separately from the GRC, including limitations on the total cost of the program, revenue requirement limits or reviews of costs for reasonableness. These procedures could result in disallowances of recovery from ratepayers. Examples of programs with reasonableness review procedures include, but are not limited to, PSEP. We discuss balancing accounts and their effects further in Note 4 below and in Note 14 of the Notes to Consolidated Financial Statements in the Annual Report. Other Revenues Sempra LNG & Midstream has an agreement to supply LNG to Sempra Mexico’s ECA LNG terminal. Although the LNG supplier purchase agreement specifies a number of cargoes to be delivered annually, actual cargoes delivered by the supplier have traditionally been significantly lower than the maximum specified under the agreement. As a result, Sempra LNG & Midstream is contractually required to make monthly indemnity payments to Sempra Mexico for failure to deliver the contracted LNG. The revenue from the indemnity payments, along with an amount for profit sharing, allows Sempra Mexico to recover the costs of operating the ECA terminal. Sempra Mexico generates lease revenue from operating lease agreements with PEMEX for the use of natural gas and ethane pipelines and LPG storage facilities. Certain PPAs at Sempra Renewables are also accounted for as operating leases. The operating leases have terms ranging from 15 to 25 years. Sempra LNG & Midstream recognizes other revenues from: ▪ fees related to contractual counterparty obligations for non-delivery of LNG cargoes, as described above. ▪ |
Revenue from Contracts With Customers | REVENUES FROM CONTRACTS WITH CUSTOMERS Our revenues from contracts with customers are primarily related to the generation, transmission and distribution of electricity and transmission, distribution and storage of natural gas through our regulated utilities. We also provide other midstream and renewable energy-related services. We assess our revenues on a contract-by-contract as well as a portfolio basis to determine the nature, amount, timing and uncertainty, if any, of revenues being recognized. We generally recognize revenues when performance of the promised commodity service is provided to our customers and invoice our customers for an amount that reflects the consideration we are entitled to in exchange for those services. We consider the delivery and transmission of electricity and natural gas and providing of natural gas storage services as ongoing and integrated services. Generally, electricity or natural gas services are received and consumed by the customer simultaneously. Our performance obligations related to these services are satisfied over time and represent a series of distinct services that are substantially the same and that have the same pattern of transfer to the customers. We recognize revenue based on units delivered, as the satisfaction of our performance obligations can be directly measured by the amount of electricity or natural gas delivered to the customer. In most cases, the right to consideration from the customer directly corresponds to the value transferred to the customer and we recognize revenue in the amount that we have the right to invoice. We provide further details of our revenue streams below. The payment terms in our customer contracts vary. Typically, we have an unconditional right to customer payments, which are due after the performance obligation to the customer is satisfied. The term between invoicing and when payment is due is typically between 10 and 90 days. We have elected the practical expedient to exclude sales and usage-based taxes from revenues. In addition, the California Utilities pay franchise fees to operate in various municipalities. The California Utilities bill these franchise fees to their customers based on a CPUC-authorized rate. These franchise fees, which are required to be paid regardless of the California Utilities’ ability to collect from the customer, are accounted for on a gross basis and reflected in utilities revenues from contracts with customers and operating expense. Utilities Revenues Utilities revenues represent the majority of our consolidated revenues from contracts with customers and include: The generation, transmission and distribution of electricity at: ▪ SDG&E ▪ Sempra South American Utilities’ Chilquinta Energía and Luz del Sur The distribution, transportation and storage of natural gas at: ▪ SDG&E ▪ SoCalGas ▪ Sempra Mexico’s Ecogas Utilities revenues are derived from and recognized upon the delivery of electricity or natural gas services to customers. Amounts that we bill our customers are based on tariffs set by regulators within the respective state or country. For SDG&E and SoCalGas, which follow the provisions of U.S. GAAP governing rate-regulated operations as we discuss in Note 1, amounts that we bill to customers also include adjustments for previously recognized regulatory revenues. The California Utilities and Ecogas recognize revenues based on regulator-approved revenue requirements, which allows the utilities to recover their reasonable cost of O&M and provides the opportunity to realize their authorized rates of return on their investments. While the California Utilities’ revenues are not affected by actual sales volumes, the pattern of their revenue recognition during the year is affected by seasonality. SoCalGas recognizes annual authorized revenue for core natural gas customers using seasonal factors established in the Triennial Cost Allocation Proceeding. Accordingly, a significant portion of SoCalGas’ annual earnings are recognized in the first and fourth quarters of each year. SDG&E’s authorized revenue recognition is also impacted by seasonal factors, resulting in higher earnings in the third quarter when electric loads are typically higher than in the other three quarters of the year. SDG&E has an arrangement to provide the California ISO with the ability to control its high voltage transmission lines for prices approved by a regulator. Revenue is recognized over time as access is provided to the California ISO. Chilquinta Energía and Luz del Sur, our electric distribution utilities in South America, recognize revenues based on tariffs designed to provide for a pass-through to customers of transmission and energy costs, recovery of reasonable O&M based on an efficient model distribution company, incentives to reduce costs and make needed capital investments and a regulated rate of return on the distributor’s regulated asset base. Factors that can affect the amount, timing and uncertainty of revenues and cash flows include weather, seasonality and timing of customer billings, which may result in unbilled revenues that can vary significantly from month to month and generally approximate one-half month’s deliveries. The California Utilities recognize revenues from the sale of allocated California GHG emissions allowances at quarterly auctions administered by CARB. GHG allowances are delivered to CARB in advance of the quarterly auctions, and the California Utilities have the right to payment when the GHG allowances are sold at auction. GHG revenue is recognized on a point in time basis within the quarter the auction is held. The California Utilities balance costs and revenues associated with the GHG program through regulatory balancing accounts. Midstream Revenues Midstream revenues at Sempra Mexico and Sempra LNG & Midstream typically represent revenues from long-term, U.S. dollar-based contracts with customers for the sale of natural gas and LNG, as well as storage and transportation of natural gas. Invoiced amounts are based on the volume of natural gas delivered and contracted prices. Sempra Mexico’s marketing operations sell natural gas to the CFE and other customers under supply agreements. Sempra Mexico recognizes the revenue from the sale of natural gas upon transfer of the natural gas via pipelines to customers at the agreed upon delivery points, and in the case of the CFE, at its thermoelectric power plants. Through its marketing operations, Sempra LNG & Midstream has contracts to sell natural gas and LNG to Sempra Mexico that allow Sempra Mexico to satisfy its obligations under supply agreements with the CFE and other customers, and to supply Sempra Mexico’s TdM power plant. Because Sempra Mexico either immediately delivers the natural gas to its customers or consumes the benefits simultaneously (by using the gas to supply TdM), revenues from Sempra LNG & Midstream’s sale of natural gas to Sempra Mexico are generally recognized over time as delivered. Revenues from LNG sales are recognized at the point when the cargo is delivered to Sempra Mexico. Revenues from the sale of LNG and natural gas by Sempra LNG & Midstream to Sempra Mexico are adjusted for indemnity payments and profit sharing. We consider these adjustments to be forms of variable consideration that are associated with the sale of LNG and natural gas to Sempra Mexico, and therefore, the related costs have been recorded as an offset to revenues. We recognize storage revenue from firm capacity reservation agreements, under which we collect a fee for reserving storage capacity for customers in our underground storage facilities. Under these firm agreements, customers pay a monthly fixed reservation fee based on the storage capacity reserved rather than the actual volumes stored. For the fixed-fee component, revenue is recognized on a straight-line basis over the term of the contract. We bill customers for any capacity used in excess of the contracted capacity and such revenues are recognized in the month of occurrence. We also recognize revenue for interruptible storage services. We generate pipeline transportation revenues from firm agreements, under which customers pay a fee for reserving transportation capacity. Revenue is recognized when the volumes are delivered to the customers’ agreed upon delivery point. We recognize revenues for our stand-ready obligation to provide capacity and transportation services throughout the contractual delivery period, as the benefits are received and consumed simultaneously as customers utilize pipeline capacity for the transport and receipt of natural gas and LPG. Invoiced amounts are based on a variable usage fee and a fixed capacity charge, adjusted for CPI, the effects of any foreign currency translation and the actual quantity of commodity transported. Renewables Revenues Sempra Renewables and Sempra Mexico develop, invest in and operate solar and wind facilities that have long-term PPAs to sell the electricity and the related green energy attributes they generate to customers, generally load serving entities, and also for Sempra Mexico, industrial and other customers. Load serving entities will sell electric service to their end-users and wholesale customers immediately upon receipt of our power delivery, and industrial and other customers immediately consume the electricity to run their facilities, and thus, we recognize the revenue under the PPAs as the electricity is generated. We invoice customers based on the volume of energy delivered at rates pursuant to the PPAs. Sempra LNG & Midstream has a contractual agreement to provide scheduling and marketing of renewable power for Sempra Renewables. Invoiced amounts are based on a fixed fee per MWh scheduled. Other Revenues from Contracts with Customers Tecnored and Tecsur, our energy services companies in South America, generate revenues from the retail sale of electric materials and providing electric construction and infrastructure services to their customers. TdM is a natural gas-fired power plant that generates revenues from selling electricity and/or resource adequacy to the California ISO and to governmental, public utility and wholesale power marketing entities, as the power is delivered at the interconnection point. TdM is currently held for sale, as we discuss in Note 5. Remaining Performance Obligations |
GENERAL INFORMATION AND OTHER21
GENERAL INFORMATION AND OTHER FINANCIAL DATA (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Cash and Cash Equivalents | The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported on the Condensed Consolidated Balance Sheets to the sum of such amounts reported on the Condensed Consolidated Statements of Cash Flows. We provide information about the nature of restricted cash in Note 1 of the Notes to Consolidated Financial Statements in the Annual Report. RECONCILIATION OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH (Dollars in millions) March 31, 2018 Sempra Energy Consolidated: Cash and cash equivalents $ 239 Restricted cash, current 54 Restricted cash, noncurrent 14 Total cash, cash equivalents and restricted cash on the Condensed Consolidated Statement of Cash Flows $ 307 SDG&E: Cash and cash equivalents $ 9 Restricted cash, current 5 Restricted cash, noncurrent 11 Total cash, cash equivalents and restricted cash on the Condensed Consolidated Statement of Cash Flows $ 25 |
Schedule of Prior Period Adjustments | We discuss this presentation further in Note 6. The following table summarizes the financial statement line items that were affected by this reclassification: SEMPRA ENERGY – RECLASSIFICATION (Dollars in millions) Three months ended March 31, 2017 As previously presented As currently presented Condensed Consolidated Statement of Operations: Equity earnings, before income tax $ 3 $ — Income before income taxes and equity losses of certain unconsolidated subsidiaries 755 — Income before income taxes and equity losses of unconsolidated subsidiaries — 752 Equity losses, net of income tax (8 ) — Equity losses — (5 ) |
Inventory Table | The components of inventories by segment are as follows: INVENTORY BALANCES (Dollars in millions) Natural gas LNG Materials and supplies Total March 31, 2018 December 31, 2017 March 31, 2018 December 31, 2017 March 31, 2018 December 31, 2017 March 31, 2018 December 31, 2017 SDG&E $ 2 $ 4 $ — $ — $ 104 $ 101 $ 106 $ 105 SoCalGas 55 75 — — 41 49 96 124 Sempra South American Utilities — — — — 32 30 32 30 Sempra Mexico 1 — 7 7 3 2 11 9 Sempra Renewables — — — — 5 5 5 5 Sempra LNG & Midstream 35 30 — 4 — — 35 34 Sempra Energy Consolidated $ 93 $ 109 $ 7 $ 11 $ 185 $ 187 $ 285 $ 307 |
Variable Interest Entity Table | The Condensed Consolidated Statements of Operations of Sempra Energy and SDG&E include the following amounts associated with Otay Mesa VIE. The amounts are net of eliminations of transactions between SDG&E and Otay Mesa VIE. The captions in the table below correspond to SDG&E’s Condensed Consolidated Statements of Operations. AMOUNTS ASSOCIATED WITH OTAY MESA VIE (Dollars in millions) Three months ended March 31, 2018 2017 Operating expenses Cost of electric fuel and purchased power $ (16 ) $ (18 ) Operation and maintenance 4 4 Depreciation and amortization 8 7 Total operating expenses (4 ) (7 ) Operating income 4 7 Interest expense (5 ) (5 ) (Losses) income before income taxes/Net (loss) income (1 ) 2 Losses (earnings) attributable to noncontrolling interest 1 (2 ) Earnings attributable to common shares $ — $ — AMOUNTS ASSOCIATED WITH TAX EQUITY ARRANGEMENTS (Dollars in millions) Three months ended March 31, 2018 2017 REVENUES Energy-related businesses $ 17 $ 13 EXPENSES Operation and maintenance (4 ) (2 ) Depreciation and amortization (11 ) (8 ) Income before income taxes 2 3 Income tax expense (5 ) (2 ) Net (loss) income (3 ) 1 Losses attributable to noncontrolling interests (1) 21 3 Earnings $ 18 $ 4 (1) |
Net Periodic Benefit Cost Table | The following three tables provide the components of net periodic benefit cost: NET PERIODIC BENEFIT COST – SEMPRA ENERGY CONSOLIDATED (Dollars in millions) Pension benefits Other postretirement benefits Three months ended March 31, 2018 2017 2018 2017 Service cost $ 33 $ 28 $ 6 $ 6 Interest cost 35 37 9 9 Expected return on assets (42 ) (40 ) (18 ) (16 ) Amortization of: Prior service cost 3 3 — — Actuarial loss (gain) 9 8 (1 ) (1 ) Settlements 14 — — — Net periodic benefit cost (credit) 52 36 (4 ) (2 ) Regulatory adjustment (45 ) (12 ) 4 2 Total expense recognized $ 7 $ 24 $ — $ — NET PERIODIC BENEFIT COST – SDG&E (Dollars in millions) Pension benefits Other postretirement benefits Three months ended March 31, 2018 2017 2018 2017 Service cost $ 8 $ 8 $ 1 $ 1 Interest cost 9 9 2 2 Expected return on assets (13 ) (11 ) (3 ) (3 ) Amortization of: Prior service cost — — 1 1 Actuarial loss (gain) 1 2 (1 ) — Settlements 14 — — — Net periodic benefit cost 19 8 — 1 Regulatory adjustment (19 ) (7 ) — (1 ) Total expense recognized $ — $ 1 $ — $ — NET PERIODIC BENEFIT COST – SOCALGAS (Dollars in millions) Pension benefits Other postretirement benefits Three months ended March 31, 2018 2017 2018 2017 Service cost $ 22 $ 18 $ 4 $ 4 Interest cost 23 24 7 7 Expected return on assets (26 ) (26 ) (14 ) (13 ) Amortization of: Prior service cost (credit) 2 2 (1 ) (1 ) Actuarial loss 6 4 — — Net periodic benefit cost (credit) 27 22 (4 ) (3 ) Regulatory adjustment (26 ) (5 ) 4 3 Total expense recognized $ 1 $ 17 $ — $ — |
Contributions to Benefit Plans Table | The following table shows our year-to-date contributions to pension and other postretirement benefit plans and the amounts we expect to contribute in 2018 : BENEFIT PLAN CONTRIBUTIONS (Dollars in millions) Sempra Energy Consolidated SDG&E SoCalGas Contributions through March 31, 2018: Pension plans $ 10 $ 2 $ — Other postretirement benefit plans 1 — 1 Total expected contributions in 2018: Pension plans $ 226 $ 48 $ 113 Other postretirement benefit plans 9 3 2 |
Earnings Per Share Computations Table | The following table provides EPS computations for the three months ended March 31, 2018 and 2017 . Basic EPS is calculated by dividing earnings attributable to common stock by the weighted-average number of common shares outstanding for the period. Diluted EPS includes the potential dilution of common stock equivalent shares that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. EARNINGS PER COMMON SHARE COMPUTATIONS (Dollars in millions, except per share amounts; shares in thousands) Three months ended March 31, 2018 2017 Numerator: Earnings/Income attributable to common shares $ 347 $ 441 Denominator: Weighted-average common shares outstanding for basic EPS (1) 257,932 251,131 Dilutive effect of stock options, RSAs and RSUs (2) 933 1,115 Dilutive effect of common stock shares sold forward 625 — Weighted-average common shares outstanding for diluted EPS 259,490 252,246 EPS: Basic $ 1.34 $ 1.76 Diluted $ 1.33 $ 1.75 (1) Includes 628 and 600 average fully vested RSUs held in our Deferred Compensation Plan for the three months ended March 31, 2018 and 2017 , respectively. These fully vested RSUs are included in weighted-average common shares outstanding for basic EPS because there are no conditions under which the corresponding shares will not be issued. (2) Due to market fluctuations of both Sempra Energy common stock and the comparative indices used to determine the vesting percentage of our total shareholder return performance-based RSUs, which we discuss in Note 8 of the Notes to Consolidated Financial Statements in the Annual Report, dilutive RSUs may vary widely from period-to-period. |
Capitalized Financing Costs Table | Interest capitalized and AFUDC are as follows: CAPITALIZED FINANCING COSTS (Dollars in millions) Three months ended March 31, 2018 2017 Sempra Energy Consolidated $ 51 $ 82 SDG&E 24 20 SoCalGas 13 15 |
Schedule of Accumulated Other Comprehensive Income (Loss) Table | The following tables present the changes in AOCI by component and amounts reclassified out of AOCI to net income, excluding amounts attributable to NCI: CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) BY COMPONENT (1) (Dollars in millions) Foreign currency translation adjustments Financial instruments Pension and other postretirement benefits Total accumulated other comprehensive income (loss) Three months ended March 31, 2018 and 2017 Sempra Energy Consolidated: Balance as of December 31, 2017 $ (420 ) $ (122 ) $ (84 ) $ (626 ) Cumulative-effect adjustment from change in accounting principle — (3 ) — (3 ) OCI before reclassifications 24 66 — 90 Amounts reclassified from AOCI — (8 ) 2 (6 ) Net OCI 24 58 2 84 Balance as of March 31, 2018 $ (396 ) $ (67 ) $ (82 ) $ (545 ) . Balance as of December 31, 2016 $ (527 ) $ (125 ) $ (96 ) $ (748 ) OCI before reclassifications 46 (2 ) — 44 Amounts reclassified from AOCI — 6 2 8 Net OCI 46 4 2 52 Balance as of March 31, 2017 $ (481 ) $ (121 ) $ (94 ) $ (696 ) SDG&E: Balance as of December 31, 2017 and March 31, 2018 $ (8 ) $ (8 ) Balance as of December 31, 2016 and March 31, 2017 $ (8 ) $ (8 ) SoCalGas: Balance as of December 31, 2017 and March 31, 2018 $ (13 ) $ (8 ) $ (21 ) Balance as of December 31, 2016 and March 31, 2017 $ (13 ) $ (9 ) $ (22 ) (1) All amounts are net of income tax, if subject to tax, and exclude NCI. |
Reclassifications out of AOCI Table | RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Dollars in millions) Details about accumulated other Amounts reclassified Affected line item on Condensed Three months ended March 31, 2018 2017 Sempra Energy Consolidated: Financial instruments: Interest rate and foreign exchange instruments (1) $ (2 ) $ (3 ) Interest Expense (18 ) — Other Income, Net Interest rate and foreign exchange instruments 4 4 Equity Losses Foreign exchange instruments — 2 Revenues: Energy-Related Businesses Commodity contracts not subject to rate recovery — 9 Revenues: Energy-Related Businesses Total before income tax (16 ) 12 3 (4 ) Income Tax Expense Net of income tax (13 ) 8 5 (2 ) Losses (Earnings) Attributable to Noncontrolling Interests $ (8 ) $ 6 Pension and other postretirement benefits: Amortization of actuarial loss (2) $ 3 $ 3 Other Income, Net (1 ) (1 ) Income Tax Expense Net of income tax $ 2 $ 2 Total reclassifications for the period, net of tax $ (6 ) $ 8 SDG&E: Financial instruments: Interest rate instruments (1) $ 3 $ 3 Interest Expense (3 ) (3 ) Losses (Earnings) Attributable to Noncontrolling Interest Total reclassifications for the period, net of tax $ — $ — (1) Amounts include Otay Mesa VIE. All of SDG&E’s interest rate derivative activity relates to Otay Mesa VIE. (2) Amounts are included in the computation of net periodic benefit cost (see “Pension and Other Postretirement Benefits” above). |
Shareholders' Equity and Noncontrolling Interests Table | The following tables provide reconciliations of changes in Sempra Energy’s, SDG&E’s and SoCalGas’ shareholders’ equity and NCI for the three months ended March 31, 2018 and 2017 . SHAREHOLDERS’ EQUITY AND NONCONTROLLING INTERESTS – SEMPRA ENERGY CONSOLIDATED (Dollars in millions) Sempra Energy ’ equity Non- (1) Total Balance at December 31, 2017 $ 12,670 $ 2,470 $ 15,140 Cumulative-effect adjustment from change in accounting principle (1 ) — (1 ) Comprehensive income (loss) 459 (2 ) 457 Share-based compensation expense 15 — 15 Mandatory convertible preferred stock dividends declared (28 ) — (28 ) Common stock dividends declared (236 ) — (236 ) Issuances of mandatory convertible preferred stock 1,693 — 1,693 Issuances of common stock 1,291 — 1,291 Repurchases of common stock (19 ) — (19 ) Distributions to noncontrolling interests — (7 ) (7 ) Balance at March 31, 2018 $ 15,844 $ 2,461 $ 18,305 Balance at December 31, 2016 $ 12,951 $ 2,290 $ 15,241 Comprehensive income 493 22 515 Share-based compensation expense 10 — 10 Common stock dividends declared (206 ) — (206 ) Issuances of common stock 30 — 30 Repurchases of common stock (14 ) — (14 ) Distributions to noncontrolling interests — (7 ) (7 ) Balance at March 31, 2017 $ 13,264 $ 2,305 $ 15,569 (1) NCI includes the preferred stock of SoCalGas and other NCI as listed in the table below under “Other Noncontrolling Interests.” SHAREHOLDER’S EQUITY AND NONCONTROLLING INTEREST – SDG&E (Dollars in millions) SDG&E ’ s Non- Total Balance at December 31, 2017 $ 5,598 $ 28 $ 5,626 Comprehensive income 170 3 173 Distributions to noncontrolling interest — (1 ) (1 ) Balance at March 31, 2018 $ 5,768 $ 30 $ 5,798 Balance at December 31, 2016 $ 5,641 $ 37 $ 5,678 Comprehensive income 155 5 160 Common stock dividends declared (175 ) — (175 ) Distributions to noncontrolling interest — (3 ) (3 ) Balance at March 31, 2017 $ 5,621 $ 39 $ 5,660 SHAREHOLDERS’ EQUITY – SOCALGAS (Dollars in millions) Total Balance at December 31, 2017 $ 3,907 Comprehensive income 225 Balance at March 31, 2018 $ 4,132 Balance at December 31, 2016 $ 3,510 Comprehensive income 203 Balance at March 31, 2017 $ 3,713 |
Ownership Interests Held By Others Table | At March 31, 2018 and December 31, 2017 , we reported the following noncontrolling ownership interests held by others (not including preferred shareholders) in Other Noncontrolling Interests in Total Equity on Sempra Energy’s Condensed Consolidated Balance Sheets: OTHER NONCONTROLLING INTERESTS (Dollars in millions) Percent ownership held by noncontrolling interests Equity held by noncontrolling interests March 31, December 31, March 31, December 31, SDG&E: Otay Mesa VIE 100 % 100 % $ 30 $ 28 Sempra South American Utilities: Chilquinta Energía subsidiaries (1) 22.9 – 43.4 22.9 – 43.4 26 24 Luz del Sur 16.4 16.4 193 189 Tecsur 9.8 9.8 4 4 Sempra Mexico: IEnova (2) 33.6 33.6 1,539 1,532 Sempra Renewables: Tax equity arrangements – wind (3) NA NA 167 181 Tax equity arrangements – solar (3) NA NA 440 450 Sempra LNG & Midstream: Bay Gas 9.1 9.1 29 28 Liberty Gas Storage, LLC 23.4 23.3 13 14 Total Sempra Energy $ 2,441 $ 2,450 (1) Chilquinta Energía has four subsidiaries with NCI held by others. Percentage range reflects the highest and lowest ownership percentages among these subsidiaries. (2) IEnova has a subsidiary with a 10 -percent NCI held by others. The equity held by NCI is negligible at both March 31, 2018 and December 31, 2017. (3) Net income or loss attributable to NCI is computed using the HLBV method and is not based on ownership percentages. |
Transactions with Affiliates Table | Amounts due from and to unconsolidated affiliates at Sempra Energy Consolidated, SDG&E and SoCalGas are as follows: AMOUNTS DUE FROM (TO) UNCONSOLIDATED AFFILIATES (Dollars in millions) March 31, December 31, Sempra Energy Consolidated: Total due from various unconsolidated affiliates – current $ 63 $ 37 Sempra South American Utilities (1) : Eletrans – 4% Note (2) $ 38 $ 103 Other related party receivables 1 1 Sempra Mexico (1) : IMG – Note due March 15, 2022 (3) 621 487 Energía Sierra Juárez – Note (4) 6 7 Total due from unconsolidated affiliates – noncurrent $ 666 $ 598 Total due to various unconsolidated affiliates – current $ (6 ) $ (7 ) Sempra Mexico (1) : Total due to unconsolidated affiliates – noncurrent – TAG – Note due December 20, 2021 (5) $ (35 ) $ (35 ) SDG&E: Sempra Energy $ (32 ) $ (30 ) SoCalGas (5 ) (4 ) Various affiliates (6 ) (6 ) Total due to unconsolidated affiliates – current $ (43 ) $ (40 ) Income taxes due (to) from Sempra Energy (6) $ (39 ) $ 27 SoCalGas: SDG&E $ 5 $ 4 Various affiliates 1 — Total due from unconsolidated affiliates – current $ 6 $ 4 Total due to unconsolidated affiliates – current – Sempra Energy $ (37 ) $ (35 ) Income taxes due (to) from Sempra Energy (6) $ (2 ) $ 10 (1) Amounts include principal balances plus accumulated interest outstanding. (2) U.S. dollar-denominated loan, at a fixed interest rate with no stated maturity date, to provide project financing for the construction of transmission lines at Eletrans, comprising joint ventures of Chilquinta Energía. (3) Mexican peso-denominated revolving line of credit for up to $14.2 billion Mexican pesos or approximately $777 million U.S. dollar-equivalent, at a variable interest rate based on the 91-day Interbank Equilibrium Interest Rate plus 220 bps ( 10.07 percent at March 31, 2018 ), to finance construction of the natural gas marine pipeline. (4) U.S. dollar-denominated loan, at a variable interest rate based on the 30-day LIBOR plus 637.5 bps ( 8.26 percent at March 31, 2018 ) with no stated maturity date, to finance the first phase of the Energía Sierra Juárez wind project, which is a joint venture of IEnova. (5) U.S. dollar-denominated loan, at a variable interest rate based on the 6-month LIBOR plus 290 bps ( 5.35 percent at March 31, 2018 ). (6) SDG&E and SoCalGas are included in the consolidated income tax return of Sempra Energy and are allocated income tax expense from Sempra Energy in an amount equal to that which would result from each company having always filed a separate return. Revenues and cost of sales from unconsolidated affiliates are as follows: REVENUES AND COST OF SALES FROM UNCONSOLIDATED AFFILIATES (Dollars in millions) Three months ended March 31, 2018 2017 Revenues: Sempra Energy Consolidated $ 16 $ 7 SDG&E 2 2 SoCalGas 17 18 Cost of Sales: Sempra Energy Consolidated $ 12 $ 14 SDG&E 19 20 |
Other Income and Expense Table | Other Income, Net on the Condensed Consolidated Statements of Operations consists of the following: OTHER INCOME, NET (Dollars in millions) Three months ended March 31, 2018 2017 (1) Sempra Energy Consolidated: Allowance for equity funds used during construction $ 27 $ 72 Investment (losses) gains (2) (1 ) 16 Gains on interest rate and foreign exchange instruments, net 62 63 Foreign currency transaction gains, net (3) 30 10 Non-service component of net periodic benefit credit 32 5 Interest on regulatory balancing accounts, net — 2 Sundry, net 3 6 Total $ 153 $ 174 SDG&E: Allowance for equity funds used during construction $ 18 $ 15 Non-service component of net periodic benefit credit 9 4 Interest on regulatory balancing accounts, net — 2 Sundry, net 1 1 Total $ 28 $ 22 SoCalGas: Allowance for equity funds used during construction $ 9 $ 11 Non-service component of net periodic benefit credit 25 3 Sundry, net (1 ) — Total $ 33 $ 14 (1) As adjusted for the retrospective adoption of ASU 2017-07, which we discuss in Note 2. (2) Represents investment (losses) gains on dedicated assets in support of our executive retirement and deferred compensation plans. These amounts are partially offset by corresponding changes in compensation expense related to the plans, recorded in Operation and Maintenance on the Condensed Consolidated Statements of Operations. (3) Includes $39 million gain in 2018 from translation to U.S. dollars of a Mexican peso-denominated loan to the IMG joint venture, which is offset by a $39 million |
Income Tax Expense and Effective Income Tax Rates Table | INCOME TAX EXPENSE AND EFFECTIVE INCOME TAX RATES (Dollars in millions) Pretax income Income tax expense ETR Pretax income Income tax expense ETR Three months ended March 31, 2018 2017 Sempra Energy Consolidated (1) $ 672 $ 289 43 % $ 755 $ 295 39 % SDG&E 225 56 25 247 90 36 SoCalGas 284 59 21 301 98 33 (1) Sempra Energy's pretax income represents Income Before Income Taxes and Equity Losses of Unconsolidated Subsidiaries plus equity earnings before income tax of $5 million and $3 million in the three months ended March 31, 2018 and 2017, respectively. We discuss how we recognize equity earnings in Note 6. |
NEW ACCOUNTING STANDARDS (Table
NEW ACCOUNTING STANDARDS (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Pronouncement, Early Adoption | Upon adoption of ASU 2016-18, Sempra Energy’s and SDG&E’s Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2017 were impacted as follows: IMPACT FROM ADOPTION OF ASU 2016-18 (Dollars in millions) Three months ended March 31, 2017 As previously reported Effect of adoption As adjusted Sempra Energy Condensed Consolidated Statement of Cash Flows: Cash flows from investing activities: Increases in restricted cash $ (93 ) $ 93 $ — Decreases in restricted cash 93 (93 ) — Effect of exchange rate changes on cash and cash equivalents 9 (9 ) — Effect of exchange rate changes on cash, cash equivalents and restricted cash — 10 10 Decrease in cash and cash equivalents (59 ) 59 — Decrease in cash, cash equivalents, and restricted cash — (58 ) (58 ) Cash and cash equivalents, January 1 349 (349 ) — Cash, cash equivalents and restricted cash, January 1 — 425 425 Cash and cash equivalents, March 31 290 (290 ) — Cash, cash equivalents and restricted cash, March 31 — 367 367 SDG&E Condensed Consolidated Statement of Cash Flows: Cash flows from investing activities: Increases in restricted cash $ (10 ) $ 10 $ — Decreases in restricted cash 9 (9 ) — Net cash used in investing activities (381 ) 1 (380 ) Increase in cash and cash equivalents 10 (10 ) — Increase in cash, cash equivalents, and restricted cash — 11 11 Cash and cash equivalents, January 1 8 (8 ) — Cash, cash equivalents and restricted cash, January 1 — 20 20 Cash and cash equivalents, March 31 18 (18 ) — Cash, cash equivalents and restricted cash, March 31 — 31 31 |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | Upon adoption of ASU 2017-07, our Condensed Consolidated Statements of Operations for the three months ended March 31, 2017 were impacted as follows: IMPACT FROM ADOPTION OF ASU 2017-07 (Dollars in millions) Three months ended March 31, 2017 As previously reported Effect of adoption As adjusted Sempra Energy Condensed Consolidated Statement of Operations: Operation and maintenance $ 714 $ 5 $ 719 Other income, net 169 5 174 SDG&E Condensed Consolidated Statement of Operations: Operation and maintenance $ 227 $ 4 $ 231 Total operating expenses 779 4 783 Operating income 278 (4 ) 274 Other income, net 18 4 22 SoCalGas Condensed Statement of Operations: Operation and maintenance $ 353 $ 3 $ 356 Total operating expenses 926 3 929 Operating income 315 (3 ) 312 Other income, net 11 3 14 |
REVENUES (Tables)
REVENUES (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | The following table disaggregates our revenues from contracts with customers by major service line, market and timing of recognition and provides a reconciliation to total revenues by segment for the three months ended March 31, 2018. DISAGGREGATED REVENUES (Dollars in millions) Three months ended March 31, 2018 SDG&E SoCalGas Sempra South American Utilities Sempra Mexico Sempra Renewables Sempra LNG & Midstream Consolidating adjustments Sempra Energy Consolidated By major service line: Utilities $ 1,131 $ 1,081 $ 408 $ 28 $ — $ — $ (19 ) $ 2,629 Midstream — — — 143 — 54 (21 ) 176 Renewables — — — 22 11 1 (1 ) 33 Other — — 17 41 — 2 (2 ) 58 Revenues from contracts with customers $ 1,131 $ 1,081 $ 425 $ 234 $ 11 $ 57 $ (43 ) $ 2,896 By market: Electric $ 963 $ — $ 425 $ 62 $ 11 $ 2 $ (4 ) $ 1,459 Gas 168 1,081 — 172 — 55 (39 ) 1,437 Revenues from contracts with customers $ 1,131 $ 1,081 $ 425 $ 234 $ 11 $ 57 $ (43 ) $ 2,896 By timing of recognition: Over time $ 1,104 $ 1,051 $ 420 $ 234 $ 11 $ 40 $ (37 ) $ 2,823 Point in time 27 30 5 — — 17 (6 ) 73 Revenues from contracts with customers $ 1,131 $ 1,081 $ 425 $ 234 $ 11 $ 57 $ (43 ) $ 2,896 Revenues from contracts with customers $ 1,131 $ 1,081 $ 425 $ 234 $ 11 $ 57 $ (43 ) $ 2,896 Utilities regulatory revenues (76 ) 45 — — — — — (31 ) Other revenues — — 1 74 14 47 (39 ) 97 Total revenues $ 1,055 $ 1,126 $ 426 $ 308 $ 25 $ 104 $ (82 ) $ 2,962 |
Schedule of Timing of Remaining Performance Obligations | For contracts greater than one year, at March 31, 2018, we expect to recognize revenue related to the fixed fee component of the consideration as shown below. SoCalGas did not have any such remaining performance obligations at March 31, 2018. REMAINING PERFORMANCE OBLIGATIONS (1) (Dollars in millions) Sempra Energy Consolidated SDG&E 2018 $ 531 $ 2 2019 533 3 2020 532 3 2021 528 3 2022 531 3 Thereafter 3,384 55 Total revenues to be recognized $ 6,039 $ 69 (1) Excludes intercompany transactions. |
Schedule of Contract Liabilities | Activities within Sempra Energy’s contract liabilities for the three months ended March 31, 2018 are presented below. There were no contract liabilities at SDG&E or SoCalGas at March 31, 2018. CONTRACT LIABILITIES (Dollars in millions) Opening balance, January 1, 2018 $ — Adoption of ASC 606 adjustment (68 ) Revenue from performance obligations satisfied during reporting period 12 Payments received in advance (15 ) Closing balance, March 31, 2018 (1) $ (71 ) (1) I ncludes $9 million in Other Current Liabilities and $62 million in Deferred Credits and Other on the Sempra Energy Condensed Consolidated Balance Sheet. |
Schedule of Contract Accounts Receivable | The table below shows receivable balances associated with revenues from contracts with customers on our Condensed Consolidated Balance Sheets. RECEIVABLES FROM REVENUES FROM CONTRACTS WITH CUSTOMERS (Dollars in millions) March 31, 2018 January 1, 2018 Sempra Energy Consolidated: Accounts receivable – trade, net $ 1,226 $ 1,194 Accounts receivable – other, net 11 10 Due from unconsolidated affiliates – current 9 8 Total $ 1,246 $ 1,212 SDG&E: Accounts receivable – trade, net $ 376 $ 362 Accounts receivable – other, net 6 3 Due from unconsolidated affiliates – current (1) 3 3 Total $ 385 $ 368 SoCalGas: Accounts receivable – trade, net $ 509 $ 517 Accounts receivable – other, net 3 7 Total $ 512 $ 524 (1) This |
REGULATORY MATTERS (Tables)
REGULATORY MATTERS (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Regulated Operations [Abstract] | |
Schedule of Regulatory Assets | We show the details of regulatory assets and liabilities in the following table. REGULATORY ASSETS (LIABILITIES) (Dollars in millions) March 31, December 31, SDG&E: Fixed-price contracts and other derivatives $ 103 $ 96 Deferred income taxes refundable in rates (305 ) (281 ) Pension and other postretirement benefit plan obligations 170 153 Removal obligations (1,827 ) (1,846 ) Unamortized loss on reacquired debt 8 9 Environmental costs 29 29 Sunrise Powerlink fire mitigation 120 119 Regulatory balancing accounts (1) Commodity – electric 112 82 Gas transportation 19 22 Safety and reliability 52 48 Public purpose programs (83 ) (70 ) Other balancing accounts 149 233 Other regulatory liabilities (89 ) (70 ) Total SDG&E (1,542 ) (1,476 ) SoCalGas: Pension and other postretirement benefit plan obligations 529 513 Employee benefit costs 45 45 Removal obligations (910 ) (924 ) Deferred income taxes refundable in rates (395 ) (437 ) Unamortized loss on reacquired debt 7 8 Environmental costs 21 22 Workers’ compensation 12 12 Regulatory balancing accounts (1) Commodity – gas, including transportation 168 151 Safety and reliability 275 266 Public purpose programs (353 ) (274 ) Other balancing accounts (149 ) (114 ) Other regulatory liabilities (85 ) (64 ) Total SoCalGas (835 ) (796 ) Sempra Mexico: Deferred income taxes recoverable in rates 83 83 Total Sempra Energy Consolidated $ (2,294 ) $ (2,189 ) (1) At March 31, 2018 and December 31, 2017, the noncurrent portion of regulatory balancing accounts – net undercollected for SDG&E was $72 million and $63 million , respectively. At March 31, 2018 and December 31, 2017, the noncurrent portion of regulatory balancing accounts – net undercollected for SoCalGas was $141 million and $118 million |
Schedule of Regulatory Liabilities | We show the details of regulatory assets and liabilities in the following table. REGULATORY ASSETS (LIABILITIES) (Dollars in millions) March 31, December 31, SDG&E: Fixed-price contracts and other derivatives $ 103 $ 96 Deferred income taxes refundable in rates (305 ) (281 ) Pension and other postretirement benefit plan obligations 170 153 Removal obligations (1,827 ) (1,846 ) Unamortized loss on reacquired debt 8 9 Environmental costs 29 29 Sunrise Powerlink fire mitigation 120 119 Regulatory balancing accounts (1) Commodity – electric 112 82 Gas transportation 19 22 Safety and reliability 52 48 Public purpose programs (83 ) (70 ) Other balancing accounts 149 233 Other regulatory liabilities (89 ) (70 ) Total SDG&E (1,542 ) (1,476 ) SoCalGas: Pension and other postretirement benefit plan obligations 529 513 Employee benefit costs 45 45 Removal obligations (910 ) (924 ) Deferred income taxes refundable in rates (395 ) (437 ) Unamortized loss on reacquired debt 7 8 Environmental costs 21 22 Workers’ compensation 12 12 Regulatory balancing accounts (1) Commodity – gas, including transportation 168 151 Safety and reliability 275 266 Public purpose programs (353 ) (274 ) Other balancing accounts (149 ) (114 ) Other regulatory liabilities (85 ) (64 ) Total SoCalGas (835 ) (796 ) Sempra Mexico: Deferred income taxes recoverable in rates 83 83 Total Sempra Energy Consolidated $ (2,294 ) $ (2,189 ) (1) At March 31, 2018 and December 31, 2017, the noncurrent portion of regulatory balancing accounts – net undercollected for SDG&E was $72 million and $63 million , respectively. At March 31, 2018 and December 31, 2017, the noncurrent portion of regulatory balancing accounts – net undercollected for SoCalGas was $141 million and $118 million |
Proposed Revenue Requirements | In October 2017, the CPUC approved the embedded cost of debt presented in the filed advice letters, resulting in a revised return on rate base for SDG&E of 7.55 percent and for SoCalGas of 7.34 percent , effective January 1, 2018, as depicted in the table below: AUTHORIZED COST OF CAPITAL AND RATE STRUCTURE – CPUC SDG&E SoCalGas Authorized weighting Return on rate base Weighted rate base Authorized weighting Return on Weighted 45.25 % 4.59 % 2.08 % Long-Term Debt 45.60 % 4.33 % 1.97 % 2.75 6.22 0.17 Preferred Stock 2.40 6.00 0.14 52.00 10.20 5.30 Common Equity 52.00 10.05 5.23 100.00 % 7.55 % 100.00 % 7.34 % As a result of the updates included in the filed advice letters, the impact of the changes to the embedded cost of debt and return on rate base is summarized below: IMPACT OF THE EMBEDDED COST OF DEBT SDG&E SoCalGas Cost of debt Return on rate base Cost of Return on Previously 5.00 % 7.79 % 5.77 % 8.02 % Authorized, effective January 1, 2018 4.59 % 7.55 % 4.33 % 7.34 % Differences (41 ) bps (24 ) bps (144 ) bps (68 ) bps |
ACQUISTION AND DIVESTITURE AC25
ACQUISTION AND DIVESTITURE ACTIVITY (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table sets forth the allocation of the total purchase price paid to the identifiable assets acquired and liabilities assumed: PURCHASE PRICE ALLOCATION (Dollars in millions) Assets acquired: Accounts receivable – other, net $ 1 Due from unconsolidated affiliates 46 Investment in Oncor Holdings 9,161 Deferred income tax assets 353 Other noncurrent assets 109 Total assets acquired 9,670 Liabilities assumed: Other current liabilities 23 Pension and other postretirement benefit plan obligations 21 Deferred credits and other 60 Total liabilities assumed 104 Net assets acquired $ 9,566 Total purchase price paid $ 9,566 |
Schedule Of Assets Held for Sale and Deconsolidation of Subsidiaries Table | At March 31, 2018 , the carrying amounts of the major classes of assets and related liabilities held for sale associated with TdM are as follows: ASSETS HELD FOR SALE AT MARCH 31, 2018 (Dollars in millions) Termoeléctrica de Mexicali Inventories $ 10 Other current assets 64 Property, plant and equipment, net 55 Other noncurrent assets 6 Total assets held for sale $ 135 Accounts payable $ 2 Other current liabilities 38 Asset retirement obligations 5 Other noncurrent liabilities 7 Total liabilities held for sale $ 52 |
INVESTMENTS IN UNCONSOLIDATED26
INVESTMENTS IN UNCONSOLIDATED ENTITIES INVESTMENT IN UNCONSOLIDATED ENTITIES (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Investments [Abstract] | |
Business Acquisition, Results of Operations | Summarized income statement information for Oncor Holdings for the period from the March 9, 2018 acquisition date is as follows: SUMMARIZED FINANCIAL INFORMATION – ONCOR HOLDINGS (Dollars in millions) March 9 - March 31, 2018 Gross revenues $ 236 Operating expense (185 ) Income from operations 51 Interest expense (22 ) Income tax expense (7 ) Net income 19 Earnings 15 |
DEBT AND CREDIT FACILITIES (Tab
DEBT AND CREDIT FACILITIES (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Line of Credit Facilities | CREDIT FACILITIES IN SOUTH AMERICA AND MEXICO (U.S. dollar-equivalent in millions) March 31, 2018 Denominated in Total facility Amount outstanding Available unused credit Sempra South American Utilities (1) : Peru (2) Peruvian sol $ 455 $ (103 ) (3) $ 352 Chile Chilean peso 115 — 115 Sempra Mexico: IEnova (4) U.S. dollar 1,170 (312 ) 858 Total $ 1,740 $ (415 ) $ 1,325 (1) The credit facilities were entered into to finance working capital and for general corporate purposes and expire between 2018 and 2021. (2) The Peruvian facilities require a debt to equity ratio of no more than 170 percent , with which we were in compliance at March 31, 2018. (3) Includes bank guarantees of $17 million . (4) Five -year revolver expiring in August 2020 with a syndicate of eight lenders. PRIMARY U.S. COMMITTED LINES OF CREDIT (Dollars in millions) March 31, 2018 Total facility Commercial paper outstanding (1) Adjustment for combined limit Available unused credit Sempra Energy (2) $ 1,250 $ — $ — $ 1,250 Sempra Global (3) 3,185 (2,826 ) — 359 California Utilities (4) : SDG&E 750 (340 ) — 410 SoCalGas 750 (100 ) (90 ) 560 Less: combined limit of $1 billion for both utilities (500 ) — 90 (410 ) 1,000 (440 ) — 560 Total $ 5,435 $ (3,266 ) $ — $ 2,169 (1) Because the commercial paper programs are supported by these lines, we reflect the amount of commercial paper outstanding as a reduction to the available unused credit. (2) The facility also provides for issuance of up to $400 million of letters of credit on behalf of Sempra Energy with the amount of borrowings otherwise available under the facility reduced by the amount of outstanding letters of credit. No letters of credit were outstanding at March 31, 2018. (3) Sempra Energy guarantees Sempra Global’s obligations under the credit facility. (4) The facility also provides for the issuance of letters of credit on behalf of each utility, subject to a combined letter of credit commitment of $250 million for both utilities. The amount of borrowings otherwise available under the facility is reduced by the amount of outstanding letters of credit. No letters of credit were outstanding at March 31, 2018. |
Schedule of Debt | On January 12, 2018, we issued the following debt securities and received net proceeds of $4.9 billion (after deducting discounts and debt issuance costs of $68 million ): NOTES ISSUED IN LONG-TERM DEBT OFFERING (Dollars in millions) Title of each class of securities Aggregate principal amount Maturity Interest payments Floating Rate (1) Notes due 2019 $ 500 July 15, 2019 Quarterly Floating Rate (2) Notes due 2021 700 January 15, 2021 Quarterly 2.400% Senior Notes due 2020 500 February 1, 2020 Semi-annually 2.900% Senior Notes due 2023 500 February 1, 2023 Semi-annually 3.400% Senior Notes due 2028 1,000 February 1, 2028 Semi-annually 3.800% Senior Notes due 2038 1,000 February 1, 2038 Semi-annually 4.000% Senior Notes due 2048 800 February 1, 2048 Semi-annually (1) Bears interest at a rate per annum equal to the 3-month LIBOR rate, plus 25 bps. (2) Bears interest at a rate per annum equal to the 3-month LIBOR rate, plus 50 |
DERIVATIVE FINANCIAL INSTRUME28
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Commodity Derivative Volumes Table | We summarize net energy derivative volumes at March 31, 2018 and December 31, 2017 as follows: NET ENERGY DERIVATIVE VOLUMES (Quantities in millions) Commodity Unit of measure March 31, December 31, California Utilities: SDG&E: Natural gas MMBtu 33 39 Electricity MWh 3 3 Congestion revenue rights MWh 57 59 Energy-Related Businesses: Sempra LNG & Midstream – natural gas MMBtu 5 3 Sempra Mexico – natural gas MMBtu 17 4 |
Notional Amounts of Interest Rate Derivatives Table | At March 31, 2018 and December 31, 2017 , the net notional amounts of our interest rate derivatives, excluding joint ventures, were: INTEREST RATE DERIVATIVES (Dollars in millions) March 31, 2018 December 31, 2017 Notional debt Maturities Notional debt Maturities Sempra Energy Consolidated: Cash flow hedges (1) $ 845 2018-2032 $ 861 2018-2032 SDG&E: Cash flow hedge (1) 292 2018-2019 295 2018-2019 (1) Includes Otay Mesa VIE. All of SDG&E’s interest rate derivatives relate to Otay Mesa VIE. March 31, 2018 and December 31, 2017 , the net notional amounts of our foreign currency derivatives, excluding joint ventures, were: FOREIGN CURRENCY DERIVATIVES (Dollars in millions) March 31, 2018 December 31, 2017 Notional amount Maturities Notional amount Maturities Sempra Energy Consolidated: Cross-currency swaps $ 306 2018-2023 $ 408 2018-2023 Other foreign currency derivatives 975 2018-2019 345 2018-2019 |
Derivative Instruments on the Condensed Consolidated Balance Sheets Table | The following tables provide the fair values of derivative instruments on the Condensed Consolidated Balance Sheets at March 31, 2018 and December 31, 2017 , including the amount of cash collateral receivables that were not offset, as the cash collateral was in excess of liability positions. DERIVATIVE INSTRUMENTS ON THE CONDENSED CONSOLIDATED BALANCE SHEETS (Dollars in millions) March 31, 2018 Current (1) Other Current liabilities: (2) Deferred Sempra Energy Consolidated: Derivatives designated as hedging instruments: Interest rate and foreign exchange instruments (3) $ 1 $ 2 $ (12 ) $ (122 ) Derivatives not designated as hedging instruments: Foreign exchange instruments 43 — — — Commodity contracts not subject to rate recovery 64 10 (61 ) (11 ) Associated offsetting commodity contracts (54 ) (8 ) 54 8 Commodity contracts subject to rate recovery 22 98 (60 ) (123 ) Associated offsetting cash collateral — — 16 7 Net amounts presented on the balance sheet 76 102 (63 ) (241 ) Additional cash collateral for commodity contracts not subject to rate recovery 21 — — — Additional cash collateral for commodity contracts subject to rate recovery 14 — — — Total (4) $ 111 $ 102 $ (63 ) $ (241 ) SDG&E: Derivatives designated as hedging instruments: Interest rate instruments (3) $ — $ — $ (8 ) $ (1 ) Derivatives not designated as hedging instruments: Commodity contracts subject to rate recovery 20 98 (59 ) (123 ) Associated offsetting cash collateral — — 16 7 Net amounts presented on the balance sheet 20 98 (51 ) (117 ) Additional cash collateral for commodity contracts subject to rate recovery 12 — — — Total (4) $ 32 $ 98 $ (51 ) $ (117 ) SoCalGas: Derivatives not designated as hedging instruments: Commodity contracts subject to rate recovery $ 2 $ — $ (1 ) $ — Net amounts presented on the balance sheet 2 — (1 ) — Additional cash collateral for commodity contracts subject to rate recovery 2 — — — Total $ 4 $ — $ (1 ) $ — (1) Included in Current Assets: Other for SoCalGas. (2) Included in Current Liabilities: Other for SoCalGas. (3) Includes Otay Mesa VIE. All of SDG&E’s amounts relate to Otay Mesa VIE. (4) Normal purchase contracts previously measured at fair value are excluded. DERIVATIVE INSTRUMENTS ON THE CONDENSED CONSOLIDATED BALANCE SHEETS (Dollars in millions) December 31, 2017 Current (1) Other Current liabilities: (2) Deferred Sempra Energy Consolidated: Derivatives designated as hedging instruments: Interest rate and foreign exchange instruments (3) $ 5 $ 2 $ (51 ) $ (165 ) Derivatives not designated as hedging instruments: Foreign exchange instruments — — (1 ) — Commodity contracts not subject to rate recovery 81 8 (72 ) (6 ) Associated offsetting commodity contracts (67 ) (5 ) 67 5 Commodity contracts subject to rate recovery 28 101 (65 ) (120 ) Associated offsetting commodity contracts — (1 ) — 1 Associated offsetting cash collateral — — 19 4 Net amounts presented on the balance sheet 47 105 (103 ) (281 ) Additional cash collateral for commodity contracts not subject to rate recovery 2 — — — Additional cash collateral for commodity contracts subject to rate recovery 17 — — — Total (4) $ 66 $ 105 $ (103 ) $ (281 ) SDG&E: Derivatives designated as hedging instruments: Interest rate instruments (3) $ — $ — $ (10 ) $ (3 ) Derivatives not designated as hedging instruments: Commodity contracts subject to rate recovery 26 101 (63 ) (120 ) Associated offsetting commodity contracts — (1 ) — 1 Associated offsetting cash collateral — — 19 4 Net amounts presented on the balance sheet 26 100 (54 ) (118 ) Additional cash collateral for commodity contracts subject to rate recovery 16 — — — Total (4) $ 42 $ 100 $ (54 ) $ (118 ) SoCalGas: Derivatives not designated as hedging instruments: Commodity contracts subject to rate recovery $ 2 $ — $ (2 ) $ — Net amounts presented on the balance sheet 2 — (2 ) — Additional cash collateral for commodity contracts subject to rate recovery 1 — — — Total $ 3 $ — $ (2 ) $ — (1) Included in Current Assets: Other for SoCalGas. (2) Included in Current Liabilities: Other for SoCalGas. (3) Includes Otay Mesa VIE. All of SDG&E’s amounts relate to Otay Mesa VIE. (4) |
Cash Flow Hedge Impact on the Condensed Consolidated Statements of Comprehensive Income Table | The table below includes the effects of derivative instruments designated as cash flow hedges on the Condensed Consolidated Statements of Operations and in OCI and AOCI for the three months ended March 31 : CASH FLOW HEDGE IMPACTS (Dollars in millions) Pretax gain (loss) recognized in OCI Pretax (loss) gain reclassified from AOCI into earnings Three months ended March 31, Three months ended March 31, 2018 2017 Location 2018 2017 Sempra Energy Consolidated: Interest rate and foreign exchange instruments (1) $ 54 $ 16 Interest Expense $ 2 $ 3 Other Income, Net 18 — Interest rate and foreign exchange instruments 70 (14 ) Equity Losses (4 ) (4 ) Foreign exchange instruments (7 ) (9 ) Revenues: Energy- Related Businesses — (2 ) Commodity contracts not subject to rate recovery — 3 Revenues: Energy- Related Businesses — (9 ) Total $ 117 $ (4 ) $ 16 $ (12 ) SDG&E: Interest rate instruments (1) $ 1 $ — Interest Expense $ (3 ) $ (3 ) (1) Amounts include Otay Mesa VIE. All of SDG&E’s interest rate derivative activity relates to Otay Mesa VIE. |
Fair Value Hedge Impact on the Condensed Consolidated Statements of Operations Table | The effects of derivative instruments not designated as hedging instruments on the Condensed Consolidated Statements of Operations for the three months ended March 31 were: UNDESIGNATED DERIVATIVE IMPACTS (Dollars in millions) Pretax gain (loss) on derivatives recognized in earnings Three months ended Location 2018 2017 Sempra Energy Consolidated: Foreign exchange instruments Other Income, Net $ 44 $ 65 Commodity contracts not subject to rate recovery Revenues: Energy-Related Businesses (9 ) 14 Commodity contracts not subject to rate recovery Operation and Maintenance — (1 ) Commodity contracts subject to rate recovery Cost of Electric Fuel and Purchased Power 2 (29 ) Commodity contracts subject to rate recovery Cost of Natural Gas 1 — Total $ 38 $ 49 SDG&E: Commodity contracts subject to rate recovery Cost of Electric Fuel and Purchased Power $ 2 $ (29 ) SoCalGas: Commodity contracts not subject to rate recovery Operation and Maintenance $ — $ (1 ) Commodity contracts subject to rate recovery Cost of Natural Gas 1 — Total $ 1 $ (1 ) |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of Auction Price Inputs [Table Text Block] | For the CRRs settling from January 1 to December 31, the auction price inputs, at a given location, are in the following ranges for the years indicated below: CONGESTION REVENUE RIGHTS AUCTION PRICE INPUTS Settlement year Price per MWh 2018 $ (7.25 ) to $ 11.99 2017 (11.88 ) to 6.93 |
Recurring Fair Value Measures Table | RECURRING FAIR VALUE MEASURES – SEMPRA ENERGY CONSOLIDATED (Dollars in millions) Fair value at March 31, 2018 Level 1 Level 2 Level 3 Total Assets: Nuclear decommissioning trusts: Equity securities $ 486 $ 5 $ — $ 491 Debt securities: Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies 35 9 — 44 Municipal bonds — 247 — 247 Other securities — 216 — 216 Total debt securities 35 472 — 507 Total nuclear decommissioning trusts (1) 521 477 — 998 Interest rate and foreign exchange instruments — 46 — 46 Commodity contracts not subject to rate recovery 4 8 — 12 Effect of netting and allocation of collateral (2) 21 — — 21 Commodity contracts subject to rate recovery — 2 118 120 Effect of netting and allocation of collateral (2) 9 — 5 14 Total $ 555 $ 533 $ 123 $ 1,211 Liabilities: Interest rate and foreign exchange instruments $ — $ 134 $ — $ 134 Commodity contracts not subject to rate recovery 7 3 — 10 Commodity contracts subject to rate recovery 23 3 157 183 Effect of netting and allocation of collateral (2) (23 ) — — (23 ) Total $ 7 $ 140 $ 157 $ 304 Fair value at December 31, 2017 Level 1 Level 2 Level 3 Total Assets: Nuclear decommissioning trusts: Equity securities $ 491 $ 5 $ — $ 496 Debt securities: Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies 45 9 — 54 Municipal bonds — 250 — 250 Other securities — 217 — 217 Total debt securities 45 476 — 521 Total nuclear decommissioning trusts (1) 536 481 — 1,017 Interest rate and foreign exchange instruments — 7 — 7 Commodity contracts not subject to rate recovery 5 12 — 17 Effect of netting and allocation of collateral (2) 2 — — 2 Commodity contracts subject to rate recovery — 2 126 128 Effect of netting and allocation of collateral (2) 12 — 5 17 Total $ 555 $ 502 $ 131 $ 1,188 Liabilities: Interest rate and foreign exchange instruments $ — $ 217 $ — $ 217 Commodity contracts not subject to rate recovery — 6 — 6 Commodity contracts subject to rate recovery 23 7 154 184 Effect of netting and allocation of collateral (2) (23 ) — — (23 ) Total $ — $ 230 $ 154 $ 384 (1) Excludes cash balances and cash equivalents. (2) Includes the effect of the contractual ability to settle contracts under master netting agreements and with cash collateral, as well as cash collateral not offset. RECURRING FAIR VALUE MEASURES – SDG&E (Dollars in millions) Fair value at March 31, 2018 Level 1 Level 2 Level 3 Total Assets: Nuclear decommissioning trusts: Equity securities $ 486 $ 5 $ — $ 491 Debt securities: Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies 35 9 — 44 Municipal bonds — 247 — 247 Other securities — 216 — 216 Total debt securities 35 472 — 507 Total nuclear decommissioning trusts (1) 521 477 — 998 Commodity contracts subject to rate recovery — — 118 118 Effect of netting and allocation of collateral (2) 7 — 5 12 Total $ 528 $ 477 $ 123 $ 1,128 Liabilities: Interest rate instruments $ — $ 9 $ — $ 9 Commodity contracts subject to rate recovery 23 2 157 182 Effect of netting and allocation of collateral (2) (23 ) — — (23 ) Total $ — $ 11 $ 157 $ 168 Fair value at December 31, 2017 Level 1 Level 2 Level 3 Total Assets: Nuclear decommissioning trusts: Equity securities $ 491 $ 5 $ — $ 496 Debt securities: Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies 45 9 — 54 Municipal bonds — 250 — 250 Other securities — 217 — 217 Total debt securities 45 476 — 521 Total nuclear decommissioning trusts (1) 536 481 — 1,017 Commodity contracts subject to rate recovery — — 126 126 Effect of netting and allocation of collateral (2) 11 — 5 16 Total $ 547 $ 481 $ 131 $ 1,159 Liabilities: Interest rate instruments $ — $ 13 $ — $ 13 Commodity contracts subject to rate recovery 23 5 154 182 Effect of netting and allocation of collateral (2) (23 ) — — (23 ) Total $ — $ 18 $ 154 $ 172 (1) Excludes cash balances and cash equivalents. (2) Includes the effect of the contractual ability to settle contracts under master netting agreements and with cash collateral, as well as cash collateral not offset. RECURRING FAIR VALUE MEASURES – SOCALGAS (Dollars in millions) Fair value at March 31, 2018 Level 1 Level 2 Level 3 Total Assets: Commodity contracts subject to rate recovery $ — $ 2 $ — $ 2 Effect of netting and allocation of collateral (1) 2 — — 2 Total $ 2 $ 2 $ — $ 4 Liabilities: Commodity contracts subject to rate recovery $ — $ 1 $ — $ 1 Total $ — $ 1 $ — $ 1 Fair value at December 31, 2017 Level 1 Level 2 Level 3 Total Assets: Commodity contracts subject to rate recovery $ — $ 2 $ — $ 2 Effect of netting and allocation of collateral (1) 1 — — 1 Total $ 1 $ 2 $ — $ 3 Liabilities: Commodity contracts subject to rate recovery $ — $ 2 $ — $ 2 Total $ — $ 2 $ — $ 2 (1) |
Recurring Fair Value Measures Level 3 Rollforward Table | The following table sets forth reconciliations of changes in the fair value of CRRs and long-term, fixed-price electricity positions classified as Level 3 in the fair value hierarchy for Sempra Energy Consolidated and SDG&E: LEVEL 3 RECONCILIATIONS (1) (Dollars in millions) Three months ended March 31, 2018 2017 Balance at January 1 $ (28 ) $ (74 ) Realized and unrealized gains (losses) 4 (13 ) Allocated transmission instruments 3 — Settlements (19 ) (9 ) Balance at March 31 $ (40 ) $ (96 ) Change in unrealized losses relating to instruments still held at March 31 $ (8 ) $ (16 ) (1) |
Fair Value of Financial Instruments Table | The following table provides the carrying amounts and fair values of certain other financial instruments that are not recorded at fair value on the Condensed Consolidated Balance Sheets at March 31, 2018 and December 31, 2017 : FAIR VALUE OF FINANCIAL INSTRUMENTS (Dollars in millions) March 31, 2018 Carrying Fair value Level 1 Level 2 Level 3 Total Sempra Energy Consolidated: Long-term amounts due from unconsolidated affiliates (1) $ 627 $ — $ 606 $ 41 $ 647 Long-term amounts due to unconsolidated affiliates (2) 35 — 32 — 32 Total long-term debt (3)(4) 22,063 790 21,254 456 22,500 SDG&E: Total long-term debt (4)(5) $ 4,848 $ — $ 4,892 $ 292 $ 5,184 SoCalGas: Total long-term debt (6) $ 3,009 $ — $ 3,102 $ — $ 3,102 December 31, 2017 Carrying Fair value Level 1 Level 2 Level 3 Total Sempra Energy Consolidated: Long-term amounts due from unconsolidated affiliates (1) $ 604 $ — $ 528 $ 96 $ 624 Long-term amounts due to unconsolidated affiliates (2) 35 — 32 — 32 Total long-term debt (3)(4) 17,138 817 17,134 458 18,409 SDG&E: Total long-term debt (4)(5) $ 4,868 $ — $ 5,073 $ 295 $ 5,368 SoCalGas: Total long-term debt (6) $ 3,009 $ — $ 3,192 $ — $ 3,192 (1) Excluding accumulated interest outstanding of $35 million and $29 million at March 31, 2018 and December 31, 2017 , respectively, and excluding foreign currency translation of $4 million and $35 million on a Mexican peso-denominated loan at March 31, 2018 and December 31, 2017 , respectively. (2) Excluding negligible interest outstanding at March 31, 2018 and December 31, 2017. (3) Before reductions for unamortized discount (net of premium) and debt issuance costs of $206 million and $143 million at March 31, 2018 and December 31, 2017 , respectively, and excluding build-to-suit and capital lease obligations of $877 million at both March 31, 2018 and December 31, 2017 . We discuss our long-term debt in Note 7 above and in Note 5 of the Notes to Consolidated Financial Statements in the Annual Report. (4) Level 3 instruments include $292 million and $295 million at March 31, 2018 and December 31, 2017 , respectively, related to Otay Mesa VIE. (5) Before reductions for unamortized discount and debt issuance costs of $45 million at both March 31, 2018 and December 31, 2017 , and excluding capital lease obligations of $730 million and $732 million at March 31, 2018 and December 31, 2017 , respectively. (6) Before reductions for unamortized discount and debt issuance costs of $24 million at both March 31, 2018 and December 31, 2017 , and excluding capital lease obligations of $4 million and $1 million at March 31, 2018 and December 31, 2017 , respectively. |
SAN ONOFRE NUCLEAR GENERATING30
SAN ONOFRE NUCLEAR GENERATING STATION (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Public Utilities, General Disclosures [Abstract] | |
Schedule of Nuclear Decommissioning Trusts Investments | The following table shows the fair values and gross unrealized gains and losses for the securities held in the NDT. We provide additional fair value disclosures for the NDT in Note 9. NUCLEAR DECOMMISSIONING TRUSTS (Dollars in millions) Cost Gross unrealized gains Gross unrealized losses Estimated fair value At March 31, 2018: Debt securities: Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies (1) $ 44 $ — $ — $ 44 Municipal bonds (1) 245 4 (2 ) 247 Other securities (2) 217 2 (3 ) 216 Total debt securities 506 6 (5 ) 507 Equity securities 172 321 (2 ) 491 Cash and cash equivalents 19 — — 19 Total $ 697 $ 327 $ (7 ) $ 1,017 At December 31, 2017: Debt securities: Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies $ 54 $ — $ — $ 54 Municipal bonds 245 7 (2 ) 250 Other securities 215 3 (1 ) 217 Total debt securities 514 10 (3 ) 521 Equity securities 171 326 (1 ) 496 Cash and cash equivalents 16 — — 16 Total $ 701 $ 336 $ (4 ) $ 1,033 (1) Maturity dates are 2018-2048. (2) Maturity dates are 2018-2064. |
Schedule of Sales of Securities By Nuclear Decommissioning Trusts | The following table shows the proceeds from sales of securities in the NDT and gross realized gains and losses on those sales: SALES OF SECURITIES IN THE NDT (Dollars in millions) Three months ended 2018 2017 Proceeds from sales (1) $ 210 $ 357 Gross realized gains 4 45 Gross realized losses (3 ) (5 ) (1) |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | The following tables show selected information by segment from our Condensed Consolidated Statements of Operations and Condensed Consolidated Balance Sheets. Amounts labeled as “All other” in the following tables consist primarily of activities of parent organizations. SEGMENT INFORMATION (Dollars in millions) Three months ended March 31, 2018 2017 REVENUES SDG&E $ 1,055 $ 1,057 SoCalGas 1,126 1,241 Sempra South American Utilities 426 412 Sempra Mexico 308 264 Sempra Renewables 25 22 Sempra LNG & Midstream 104 132 Adjustments and eliminations (1 ) — Intersegment revenues (1) (81 ) (97 ) Total $ 2,962 $ 3,031 INTEREST EXPENSE SDG&E $ 52 $ 49 SoCalGas 27 25 Sempra South American Utilities 10 9 Sempra Mexico 30 32 Sempra Renewables 5 4 Sempra LNG & Midstream 8 11 All other 112 68 Intercompany eliminations (28 ) (29 ) Total $ 216 $ 169 INTEREST INCOME SDG&E $ 1 $ — Sempra South American Utilities 6 5 Sempra Mexico 15 2 Sempra Renewables 2 1 Sempra LNG & Midstream 13 17 All other 14 — Intercompany eliminations (18 ) (19 ) Total $ 33 $ 6 DEPRECIATION AND AMORTIZATION SDG&E $ 166 $ 163 SoCalGas 135 126 Sempra South American Utilities 14 13 Sempra Mexico 43 36 Sempra Renewables 13 9 Sempra LNG & Midstream 11 10 All other 4 3 Total $ 386 $ 360 INCOME TAX EXPENSE (BENEFIT) SDG&E $ 56 $ 90 SoCalGas 59 98 Sempra South American Utilities 20 19 Sempra Mexico 155 142 Sempra Renewables (7 ) (11 ) Sempra LNG & Midstream 12 1 All other (6 ) (44 ) Total $ 289 $ 295 SEGMENT INFORMATION (CONTINUED) (Dollars in millions) Three months ended March 31, 2018 2017 EQUITY EARNINGS (LOSSES) Equity earnings before income tax: Sempra Renewables $ 5 $ 2 Sempra LNG & Midstream — 1 5 3 Equity earnings (losses) net of income tax: Sempra Texas Utility 15 — Sempra South American Utilities 1 1 Sempra Mexico (41 ) (9 ) (25 ) (8 ) Total $ (20 ) $ (5 ) EARNINGS (LOSSES) ATTRIBUTABLE TO COMMON SHARES SDG&E $ 170 $ 155 SoCalGas (2) 225 203 Sempra Texas Utility 15 — Sempra South American Utilities 46 47 Sempra Mexico 20 48 Sempra Renewables 21 11 Sempra LNG & Midstream (16 ) 1 All other (2) (134 ) (24 ) Total $ 347 $ 441 EXPENDITURES FOR PROPERTY, PLANT & EQUIPMENT SDG&E $ 475 $ 418 SoCalGas 403 357 Sempra South American Utilities 56 43 Sempra Mexico 59 94 Sempra Renewables 31 69 Sempra LNG & Midstream 6 3 All other 5 8 Total $ 1,035 $ 992 March 31, 2018 December 31, 2017 ASSETS SDG&E $ 18,017 $ 17,844 SoCalGas 14,462 14,159 Sempra Texas Utility 9,176 — Sempra South American Utilities 4,154 4,060 Sempra Mexico 8,798 8,554 Sempra Renewables 2,764 2,898 Sempra LNG & Midstream 4,904 4,872 All other 964 915 Intersegment receivables (2,754 ) (2,848 ) Total $ 60,485 $ 50,454 EQUITY METHOD AND OTHER INVESTMENTS Sempra Texas Utility $ 9,176 $ — Sempra South American Utilities 17 16 Sempra Mexico 613 624 Sempra Renewables 798 813 Sempra LNG & Midstream 1,085 997 All other 77 77 Total $ 11,766 $ 2,527 (1) Revenues for reportable segments include intersegment revenues of $1 million , $17 million , $29 million and $34 million for the three months ended March 31, 2018 and $1 million , $18 million , $25 million and $53 million for the three months ended March 31, 2017 for SDG&E, SoCalGas, Sempra Mexico and Sempra LNG & Midstream, respectively. (2) |
GENERAL INFORMATION AND OTHER32
GENERAL INFORMATION AND OTHER FINANCIAL DATA - CONSOLIDATION (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Equity earnings, before income tax | $ 5 | $ 3 | |
Income before income taxes and equity losses of unconsolidated subsidiaries | 667 | 752 | [1] |
Equity losses, net of income tax | (25) | (8) | |
Equity losses | $ (20) | (5) | [1] |
As previously reported [Member] | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Equity earnings, before income tax | 3 | ||
Income before income taxes and equity losses of unconsolidated subsidiaries | 755 | ||
Equity losses, net of income tax | $ (8) | ||
[1] | As adjusted for the retrospective adoption of ASU 2017-07, which we discuss in Note 2, and a reclassification to conform to current year presentation, which we discuss in Note 1. |
GENERAL INFORMATION AND OTHER33
GENERAL INFORMATION AND OTHER FINANCIAL DATA - RESTRICTED CASH (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | [2] | Dec. 31, 2016 | [2] | |
Cash and Cash Equivalents [Line Items] | |||||||
Cash and cash equivalents | $ 239 | $ 288 | [1] | ||||
Restricted cash, current | 54 | 62 | [1] | ||||
Restricted cash, noncurrent | 14 | 14 | [1] | ||||
Total cash, cash equivalents and restricted cash on the Condensed Consolidated Statement of Cash Flows | 307 | 364 | $ 367 | $ 425 | |||
San Diego Gas and Electric Company [Member] | |||||||
Cash and Cash Equivalents [Line Items] | |||||||
Cash and cash equivalents | 9 | 12 | [1] | ||||
Restricted cash, current | 5 | 6 | [1] | ||||
Restricted cash, noncurrent | 11 | 11 | [1] | ||||
Total cash, cash equivalents and restricted cash on the Condensed Consolidated Statement of Cash Flows | $ 25 | $ 29 | $ 31 | $ 20 | |||
[1] | Derived from audited financial statements. | ||||||
[2] | As adjusted for the retrospective adoption of ASU 2016-18, which we discuss in Note 2. |
GENERAL INFORMATION AND OTHER34
GENERAL INFORMATION AND OTHER FINANCIAL DATA - INVENTORIES (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 | |
Inventory [Line Items] | |||
Natural gas | $ 93 | $ 109 | |
LNG | 7 | 11 | |
Materials and supplies | 185 | 187 | |
Total | 285 | 307 | [1] |
SDG&E [Member] | |||
Inventory [Line Items] | |||
Natural gas | 2 | 4 | |
LNG | 0 | 0 | |
Materials and supplies | 104 | 101 | |
Total | 106 | 105 | |
SoCalGas [Member] | |||
Inventory [Line Items] | |||
Natural gas | 55 | 75 | |
LNG | 0 | 0 | |
Materials and supplies | 41 | 49 | |
Total | 96 | 124 | |
Sempra South American Utilities [Member] | |||
Inventory [Line Items] | |||
Natural gas | 0 | 0 | |
LNG | 0 | 0 | |
Materials and supplies | 32 | 30 | |
Total | 32 | 30 | |
Sempra Mexico [Member] | |||
Inventory [Line Items] | |||
Natural gas | 1 | 0 | |
LNG | 7 | 7 | |
Materials and supplies | 3 | 2 | |
Total | 11 | 9 | |
Sempra Renewables [Member] | |||
Inventory [Line Items] | |||
Natural gas | 0 | 0 | |
LNG | 0 | 0 | |
Materials and supplies | 5 | 5 | |
Total | 5 | 5 | |
Sempra LNG & Midstream [Member] | |||
Inventory [Line Items] | |||
Natural gas | 35 | 30 | |
LNG | 0 | 4 | |
Materials and supplies | 0 | 0 | |
Total | 35 | 34 | |
Southern California Gas Company [Member] | |||
Inventory [Line Items] | |||
Total | $ 96 | $ 124 | [1] |
[1] | Derived from audited financial statements. |
GENERAL INFORMATION AND OTHER35
GENERAL INFORMATION AND OTHER FINANCIAL DATA - GOODWILL (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Goodwill | $ 2,406 | $ 2,397 | [1] |
[1] | Derived from audited financial statements. |
GENERAL INFORMATION AND OTHER36
GENERAL INFORMATION AND OTHER FINANCIAL DATA - CAPITALIZED FINANCING COSTS (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Capitalized Financing Costs Disclosure [Line Items] | ||
Total capitalized financing costs | $ 51 | $ 82 |
San Diego Gas and Electric Company [Member] | ||
Capitalized Financing Costs Disclosure [Line Items] | ||
Total capitalized financing costs | 24 | 20 |
Southern California Gas Company [Member] | ||
Capitalized Financing Costs Disclosure [Line Items] | ||
Total capitalized financing costs | $ 13 | $ 15 |
GENERAL INFORMATION AND OTHER37
GENERAL INFORMATION AND OTHER FINANCIAL DATA - VARIABLE INTEREST ENTITIES (Details) $ in Millions | Mar. 09, 2018 | Mar. 31, 2018USD ($)MW | Mar. 31, 2017USD ($) | Dec. 31, 2017USD ($) | ||
Variable Interest Entities [Line Items] | ||||||
Equity method investment | $ 9,176 | $ 0 | [1] | |||
Property, plant and equipment, net | 37,025 | 36,503 | [1] | |||
Other noncontrolling interests | 2,441 | 2,450 | [1] | |||
Energy-related businesses | 364 | $ 333 | [2] | |||
Operation and maintenance | (781) | (719) | [2] | |||
Depreciation and amortization | (386) | (360) | [2],[3] | |||
Interest expense | (216) | (169) | [2] | |||
Income before income taxes | 667 | 752 | [2] | |||
Income tax expense | (289) | (295) | [2] | |||
(Losses) income before income taxes/Net (loss) income | 358 | 452 | [2],[3] | |||
Losses (earnings) attributable to noncontrolling interest | 17 | (11) | [2] | |||
Earnings attributable to common shares | 347 | 441 | ||||
Otay Mesa VIE [Member] | ||||||
Variable Interest Entities [Line Items] | ||||||
Property, plant and equipment, net | 316 | 321 | ||||
Sempra Renewables [Member] | Tax Equity Investors [Member] | ||||||
Variable Interest Entities [Line Items] | ||||||
Property, plant and equipment, net | 1,412 | 1,412 | ||||
Equity | 607 | 631 | ||||
Energy-related businesses | 17 | 13 | ||||
Operation and maintenance | (4) | (2) | ||||
Depreciation and amortization | (11) | (8) | ||||
Income before income taxes | 2 | 3 | ||||
Income tax expense | (5) | (2) | ||||
(Losses) income before income taxes/Net (loss) income | (3) | 1 | ||||
Losses (earnings) attributable to noncontrolling interest | 21 | 3 | ||||
Earnings attributable to common shares | 18 | 4 | ||||
Sempra Natural Gas [Member] | Cameron LNG Holdings [Member] | ||||||
Variable Interest Entities [Line Items] | ||||||
Equity method investment | 1,085 | 997 | ||||
Sempra Texas Utility [Member] | Oncor Holdings [Member] | ||||||
Variable Interest Entities [Line Items] | ||||||
Equity method investment | 9,176 | |||||
San Diego Gas and Electric Company [Member] | ||||||
Variable Interest Entities [Line Items] | ||||||
Property, plant and equipment, net | 15,062 | 14,838 | [1] | |||
Other noncontrolling interests | 30 | 28 | [1] | |||
Operation and maintenance | 248 | 231 | [2] | |||
Depreciation and amortization | 166 | 163 | [2],[3] | |||
Operating income | 248 | 274 | [2] | |||
Interest expense | (52) | (49) | [2] | |||
Income before income taxes | 225 | 247 | [2] | |||
Income tax expense | (56) | (90) | [2] | |||
(Losses) income before income taxes/Net (loss) income | 169 | 157 | [2],[3] | |||
Losses (earnings) attributable to noncontrolling interest | $ 1 | (2) | [2] | |||
San Diego Gas and Electric Company [Member] | Otay Mesa VIE [Member] | ||||||
Variable Interest Entities [Line Items] | ||||||
Generating capacity (in mw) | MW | 605 | |||||
Conditional purchase obligation | $ 280 | |||||
Equity of variable interest entity | 30 | 28 | ||||
Secured debt of variable interest entity | 292 | |||||
Property, plant and equipment, net | 316 | $ 321 | ||||
Cost of electric fuel and purchased power | (16) | (18) | ||||
Operation and maintenance | 4 | 4 | ||||
Depreciation and amortization | 8 | 7 | ||||
Total operating expenses | (4) | (7) | ||||
Operating income | 4 | 7 | ||||
Interest expense | (5) | (5) | ||||
(Losses) income before income taxes/Net (loss) income | (1) | 2 | ||||
Losses (earnings) attributable to noncontrolling interest | 1 | (2) | ||||
Earnings attributable to common shares | $ 0 | $ 0 | ||||
Oncor Holdings [Member] | Sempra Texas Holdings Corp [Member] | Sempra Texas Intermediate Holding Company LLC [Member] | ||||||
Variable Interest Entities [Line Items] | ||||||
Ownership percentage in consolidated entity | 100.00% | |||||
Oncor Electric Delivery Company LLC. [Member] | ||||||
Variable Interest Entities [Line Items] | ||||||
Acquired percentage interest | 80.25% | |||||
Oncor Electric Delivery Company LLC. [Member] | Sempra Texas Holdings Corp [Member] | ||||||
Variable Interest Entities [Line Items] | ||||||
Acquired percentage interest | 80.03% | |||||
[1] | Derived from audited financial statements. | |||||
[2] | As adjusted for the retrospective adoption of ASU 2017-07, which we discuss in Note 2, and a reclassification to conform to current year presentation, which we discuss in Note 1. | |||||
[3] | As adjusted for the retrospective adoption of ASU 2016-18, which we discuss in Note 2. |
GENERAL INFORMATION AND OTHER38
GENERAL INFORMATION AND OTHER FINANCIAL DATA - PENSION AND OTHER POSTRETIREMENT BENEFITS (Details) - USD ($) $ in Millions | Mar. 09, 2018 | Mar. 31, 2018 | Mar. 31, 2017 |
Pension benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Reduction in plan assets due to settlement | $ 83 | ||
Service cost | 33 | $ 28 | |
Interest cost | 35 | 37 | |
Expected return on assets | (42) | (40) | |
Prior service cost (credit) | 3 | 3 | |
Actuarial loss (gain) | 9 | 8 | |
Settlements | 14 | 0 | |
Net periodic benefit cost (credit) | 52 | 36 | |
Regulatory adjustment | (45) | (12) | |
Total expense recognized | 7 | 24 | |
Contributions by employer | 10 | ||
Expected contributions in current fiscal year | 226 | ||
Pension benefits [Member] | San Diego Gas and Electric Company [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 8 | 8 | |
Interest cost | 9 | 9 | |
Expected return on assets | (13) | (11) | |
Prior service cost (credit) | 0 | 0 | |
Actuarial loss (gain) | 1 | 2 | |
Settlements | 14 | 0 | |
Net periodic benefit cost (credit) | 19 | 8 | |
Regulatory adjustment | (19) | (7) | |
Total expense recognized | 0 | 1 | |
Contributions by employer | 2 | ||
Expected contributions in current fiscal year | 48 | ||
Pension benefits [Member] | Southern California Gas Company [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 22 | 18 | |
Interest cost | 23 | 24 | |
Expected return on assets | (26) | (26) | |
Prior service cost (credit) | 2 | 2 | |
Actuarial loss (gain) | 6 | 4 | |
Net periodic benefit cost (credit) | 27 | 22 | |
Regulatory adjustment | (26) | (5) | |
Total expense recognized | 1 | 17 | |
Contributions by employer | 0 | ||
Expected contributions in current fiscal year | 113 | ||
Other postretirement benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 6 | 6 | |
Interest cost | 9 | 9 | |
Expected return on assets | (18) | (16) | |
Prior service cost (credit) | 0 | 0 | |
Actuarial loss (gain) | (1) | (1) | |
Settlements | 0 | 0 | |
Net periodic benefit cost (credit) | (4) | (2) | |
Regulatory adjustment | 4 | 2 | |
Total expense recognized | 0 | 0 | |
Contributions by employer | 1 | ||
Expected contributions in current fiscal year | 9 | ||
Other postretirement benefits [Member] | San Diego Gas and Electric Company [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 1 | 1 | |
Interest cost | 2 | 2 | |
Expected return on assets | (3) | (3) | |
Prior service cost (credit) | 1 | 1 | |
Actuarial loss (gain) | (1) | 0 | |
Settlements | 0 | 0 | |
Net periodic benefit cost (credit) | 0 | 1 | |
Regulatory adjustment | 0 | (1) | |
Total expense recognized | 0 | 0 | |
Contributions by employer | 0 | ||
Expected contributions in current fiscal year | 3 | ||
Other postretirement benefits [Member] | Southern California Gas Company [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 4 | 4 | |
Interest cost | 7 | 7 | |
Expected return on assets | (14) | (13) | |
Prior service cost (credit) | (1) | (1) | |
Actuarial loss (gain) | 0 | 0 | |
Net periodic benefit cost (credit) | (4) | (3) | |
Regulatory adjustment | 4 | 3 | |
Total expense recognized | 0 | $ 0 | |
Contributions by employer | 1 | ||
Expected contributions in current fiscal year | $ 2 | ||
Oncor Holdings [Member] | Sempra Texas Holdings Corp [Member] | Sempra Texas Intermediate Holding Company LLC [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Increase in liability due to acquisition | $ 21 |
GENERAL INFORMATION AND OTHER39
GENERAL INFORMATION AND OTHER FINANCIAL DATA - RABBI TRUST (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Rabbi trust | $ 421 | $ 455 | [1] |
[1] | Derived from audited financial statements. |
GENERAL INFORMATION AND OTHER40
GENERAL INFORMATION AND OTHER FINANCIAL DATA - EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | ||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||
Net Income/Earnings attributable to common shares | $ 347 | $ 441 | [1] |
Weighted-average common shares outstanding for basic EPS (in shares) | 257,932,000 | 251,131,000 | [1] |
Dilutive effect of stock options, RSAs and RSUs (in shares) | 933,000 | 1,115,000 | |
Dilutive effect of common stock forward shares (in shares) | 625,000 | 0 | |
Weighted-average common shares outstanding for diluted EPS (in shares) | 259,490,000 | 252,246,000 | [1] |
Basic earnings per common share (in dollars per share) | $ 1.34 | $ 1.76 | [1] |
Diluted earnings per common share (in dollars per share) | $ 1.33 | $ 1.75 | [1] |
Vested RSUs included in basic WASO | 628,000 | 600,000 | |
Convertible Preferred Stock [Member] | |||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||
Antidilutive securities excluded from earnings per share | 15,592,572 | ||
Stock options, RSAs and RSUs [Member] | |||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||
Antidilutive securities excluded from earnings per share | 80,449 | 6,801 | |
Performance-based RSUs [Member] | |||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||
Equity awards, granted (in shares) | 356,496 | ||
Service-based RSUs [Member] | |||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||
Equity awards, granted (in shares) | 195,994 | ||
IENova Plans [Member] | RSUs [Member] | |||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||
Equity awards, granted (in shares) | 437,729 | ||
[1] | As adjusted for the retrospective adoption of ASU 2017-07, which we discuss in Note 2, and a reclassification to conform to current year presentation, which we discuss in Note 1. |
GENERAL INFORMATION AND OTHER41
GENERAL INFORMATION AND OTHER FINANCIAL DATA - CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (Details) - USD ($) | 3 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | Jan. 01, 2018 | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
AOCI, beginning balance | [1] | $ (626,000,000) | ||
Cumulative-effect adjustment from change in accounting principle | $ (1,000,000) | |||
Amounts reclassified from AOCI | (6,000,000) | $ 8,000,000 | ||
AOCI, ending balance | (545,000,000) | |||
Foreign currency translation adjustments [Member] | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
AOCI, beginning balance | (420,000,000) | (527,000,000) | ||
Cumulative-effect adjustment from change in accounting principle | 0 | |||
OCI before reclassifications | 24,000,000 | 46,000,000 | ||
Amounts reclassified from AOCI | 0 | 0 | ||
Net OCI | 24,000,000 | 46,000,000 | ||
AOCI, ending balance | (396,000,000) | (481,000,000) | ||
Financial instruments [Member] | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
AOCI, beginning balance | (122,000,000) | (125,000,000) | ||
Cumulative-effect adjustment from change in accounting principle | (3,000,000) | |||
OCI before reclassifications | 66,000,000 | (2,000,000) | ||
Amounts reclassified from AOCI | (8,000,000) | 6,000,000 | ||
Net OCI | 58,000,000 | 4,000,000 | ||
AOCI, ending balance | (67,000,000) | (121,000,000) | ||
Pension and other postretirement benefits [Member] | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
AOCI, beginning balance | (84,000,000) | (96,000,000) | ||
Cumulative-effect adjustment from change in accounting principle | 0 | |||
OCI before reclassifications | 0 | 0 | ||
Amounts reclassified from AOCI | 2,000,000 | 2,000,000 | ||
Net OCI | 2,000,000 | 2,000,000 | ||
AOCI, ending balance | (82,000,000) | (94,000,000) | ||
Total accumulated other comprehensive income (loss) [Member] | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
AOCI, beginning balance | (626,000,000) | (748,000,000) | ||
Cumulative-effect adjustment from change in accounting principle | $ (3,000,000) | |||
OCI before reclassifications | 90,000,000 | 44,000,000 | ||
Amounts reclassified from AOCI | (6,000,000) | 8,000,000 | ||
Net OCI | 84,000,000 | 52,000,000 | ||
AOCI, ending balance | (545,000,000) | (696,000,000) | ||
San Diego Gas and Electric Company [Member] | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
AOCI, beginning balance | [1] | (8,000,000) | ||
Amounts reclassified from AOCI | 0 | 0 | ||
AOCI, ending balance | (8,000,000) | |||
San Diego Gas and Electric Company [Member] | Pension and other postretirement benefits [Member] | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
AOCI, beginning balance | (8,000,000) | (8,000,000) | ||
AOCI, ending balance | (8,000,000) | (8,000,000) | ||
San Diego Gas and Electric Company [Member] | Total accumulated other comprehensive income (loss) [Member] | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
AOCI, beginning balance | (8,000,000) | (8,000,000) | ||
AOCI, ending balance | (8,000,000) | (8,000,000) | ||
Southern California Gas Company [Member] | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
AOCI, beginning balance | [1] | (21,000,000) | ||
Amounts reclassified from AOCI | 0 | 0 | ||
AOCI, ending balance | (21,000,000) | |||
Southern California Gas Company [Member] | Financial instruments [Member] | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
AOCI, beginning balance | (13,000,000) | (13,000,000) | ||
AOCI, ending balance | (13,000,000) | (13,000,000) | ||
Southern California Gas Company [Member] | Pension and other postretirement benefits [Member] | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
AOCI, beginning balance | (8,000,000) | (9,000,000) | ||
AOCI, ending balance | (8,000,000) | (9,000,000) | ||
Southern California Gas Company [Member] | Total accumulated other comprehensive income (loss) [Member] | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
AOCI, beginning balance | (21,000,000) | (22,000,000) | ||
AOCI, ending balance | $ (21,000,000) | $ (22,000,000) | ||
[1] | Derived from audited financial statements. |
GENERAL INFORMATION AND OTHER42
GENERAL INFORMATION AND OTHER FINANCIAL DATA - RECLASSIFICATION FROM ACCUMULATED OTHER COMPREHENSIVE INCOME (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Interest expense | $ (216) | $ (169) | [1] |
Other income, net | 153 | 174 | [1] |
Equity losses | (20) | (5) | [1] |
Revenues: Energy-Related Businesses | 364 | 333 | [1] |
Income before income taxes and equity (losses) earnings of certain unconsolidated subsidiaries | 667 | 752 | [1] |
Income Tax Benefit (Expense) | (289) | (295) | [1] |
Earnings Attributable to Noncontrolling Interests | 17 | (11) | [1] |
Earnings (losses) | 347 | 441 | |
Total reclassifications for the period, net of tax | (6) | 8 | |
Gains (Losses) on Cash Flow hedges Attributable to Parent [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Total reclassifications for the period, net of tax | (8) | 6 | |
Gain (Loss) on Pension and Other Postretirement Benefits [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Amortization of actuarial loss(2) | 3 | 3 | |
Pension and Other Postretirement Benefits [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Income tax expense | (1) | (1) | |
Total reclassifications for the period, net of tax | 2 | 2 | |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Gains (Losses) on Cash Flow hedges [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Income before income taxes and equity (losses) earnings of certain unconsolidated subsidiaries | (16) | 12 | |
Income Tax Benefit (Expense) | 3 | (4) | |
Net of income tax | (13) | 8 | |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Gains (Losses) on Cash Flow hedges [Member] | Interest rate and foreign exchange instruments [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Interest expense | (2) | (3) | |
Other income, net | (18) | 0 | |
Equity losses | 4 | 4 | |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Gains (Losses) on Cash Flow hedges [Member] | Foreign exchange instruments [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Revenues: Energy-Related Businesses | 0 | 2 | |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Gains (Losses) on Cash Flow hedges [Member] | Commodity contracts not subject to rate recovery [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Revenues: Energy-Related Businesses | 0 | 9 | |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Gains (Losses) on Cash Flow hedges Attributable to Noncontrolling Interests [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Earnings Attributable to Noncontrolling Interests | 5 | (2) | |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Gains (Losses) on Cash Flow hedges Attributable to Parent [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Earnings (losses) | (8) | 6 | |
San Diego Gas and Electric Company [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Interest expense | (52) | (49) | [1] |
Other income, net | 28 | 22 | [1] |
Income before income taxes and equity (losses) earnings of certain unconsolidated subsidiaries | 225 | 247 | [1] |
Income Tax Benefit (Expense) | (56) | (90) | [1] |
Earnings Attributable to Noncontrolling Interests | 1 | (2) | [1] |
Total reclassifications for the period, net of tax | 0 | 0 | |
San Diego Gas and Electric Company [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | Gains (Losses) on Cash Flow hedges [Member] | Interest rate instruments [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Interest expense | 3 | 3 | |
San Diego Gas and Electric Company [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | Gains (Losses) on Cash Flow hedges Attributable to Noncontrolling Interests [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Earnings Attributable to Noncontrolling Interests | (3) | (3) | |
Southern California Gas Company [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Interest expense | (27) | (25) | [1] |
Other income, net | 33 | 14 | [1] |
Income before income taxes and equity (losses) earnings of certain unconsolidated subsidiaries | 284 | 301 | [1] |
Income Tax Benefit (Expense) | (59) | (98) | [1] |
Total reclassifications for the period, net of tax | $ 0 | $ 0 | |
[1] | As adjusted for the retrospective adoption of ASU 2017-07, which we discuss in Note 2, and a reclassification to conform to current year presentation, which we discuss in Note 1. |
GENERAL INFORMATION AND OTHER43
GENERAL INFORMATION AND OTHER FINANCIAL DATA - SHAREHOLDER'S EQUITY AND NONCONTROLLING INTEREST (Details) - USD ($) | May 07, 2018 | Mar. 08, 2018 | Jan. 09, 2018 | Jan. 31, 2018 | Mar. 31, 2018 | Mar. 31, 2017 | Jan. 01, 2018 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Equity, beginning of period | $ 15,140,000,000 | [1] | $ 15,140,000,000 | [1] | $ 15,241,000,000 | ||||||
Equity, beginning of period | [1] | 12,670,000,000 | 12,670,000,000 | ||||||||
Cumulative-effect adjustment from change in accounting principle | $ (1,000,000) | ||||||||||
Comprehensive income (loss) | 457,000,000 | 515,000,000 | |||||||||
Share-based compensation expense | 15,000,000 | 10,000,000 | |||||||||
Mandatory convertible preferred stock dividends declared | (28,000,000) | ||||||||||
Common stock dividends declared | (236,000,000) | (206,000,000) | |||||||||
Issuances of mandatory convertible preferred stock | 1,693,000,000 | ||||||||||
Issuances of common stock | 1,291,000,000 | 30,000,000 | |||||||||
Repurchases of common stock | (19,000,000) | (14,000,000) | |||||||||
Distributions to noncontrolling interests | (7,000,000) | (7,000,000) | |||||||||
Equity, end of period | 18,305,000,000 | 15,569,000,000 | |||||||||
Equity, end of period | 15,844,000,000 | ||||||||||
Proceeds from issuance | 1,693,000,000 | 0 | [2] | ||||||||
Proceeds from issuance | 1,278,000,000 | 17,000,000 | [2] | ||||||||
Parent [Member] | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Equity, beginning of period | 12,670,000,000 | 12,670,000,000 | 12,951,000,000 | ||||||||
Cumulative-effect adjustment from change in accounting principle | (1,000,000) | ||||||||||
Comprehensive income (loss) | 459,000,000 | 493,000,000 | |||||||||
Share-based compensation expense | 15,000,000 | 10,000,000 | |||||||||
Mandatory convertible preferred stock dividends declared | (28,000,000) | ||||||||||
Common stock dividends declared | (236,000,000) | (206,000,000) | |||||||||
Issuances of mandatory convertible preferred stock | 1,693,000,000 | ||||||||||
Issuances of common stock | 1,291,000,000 | 30,000,000 | |||||||||
Repurchases of common stock | (19,000,000) | (14,000,000) | |||||||||
Distributions to noncontrolling interests | 0 | 0 | |||||||||
Equity, end of period | 15,844,000,000 | 13,264,000,000 | |||||||||
Noncontrolling Interest [Member] | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Equity, beginning of period | 2,470,000,000 | 2,470,000,000 | 2,290,000,000 | ||||||||
Cumulative-effect adjustment from change in accounting principle | $ 0 | ||||||||||
Comprehensive income (loss) | (2,000,000) | 22,000,000 | |||||||||
Share-based compensation expense | 0 | 0 | |||||||||
Mandatory convertible preferred stock dividends declared | 0 | ||||||||||
Common stock dividends declared | 0 | 0 | |||||||||
Issuances of mandatory convertible preferred stock | 0 | ||||||||||
Issuances of common stock | 0 | 0 | |||||||||
Repurchases of common stock | 0 | 0 | |||||||||
Distributions to noncontrolling interests | (7,000,000) | (7,000,000) | |||||||||
Equity, end of period | 2,461,000,000 | 2,305,000,000 | |||||||||
Common Stock [Member] | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Shares issued | 8,556,630 | 26,869,158 | |||||||||
Over-Allotment Option [Member] | Common Stock [Member] | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Shares issued | 3,504,672 | ||||||||||
Underwriting discount | $ 8,000,000 | ||||||||||
Proceeds from issuance | $ 367,000,000 | ||||||||||
Public Offering [Member] | Common Stock [Member] | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Shares issued | 23,364,486 | ||||||||||
Shares issued (in usd per share) | $ 107 | ||||||||||
Shares issued net of underwriting discount (in usd per share) | $ 105.074 | ||||||||||
Settlement of Forward Sale Contracts [Member] | Common Stock [Member] | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Underwriting discount | $ 16,000,000 | ||||||||||
Proceeds from issuance | $ 900,000,000 | ||||||||||
Forward sales price (in usd per share) | $ 105.1816 | ||||||||||
Sempra Energy [Member] | Convertible Preferred Stock [Member] | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Shares issued | 17,250,000 | ||||||||||
Conversion price (in usd per share) | $ 100 | ||||||||||
Conversion price net of underwriting discount (in usd per share) | 98.20 | ||||||||||
Liquidation price (in usd per share) | $ 100 | ||||||||||
Proceeds from issuance | 1,690,000,000 | ||||||||||
Underwriting discount | $ 32,000,000 | ||||||||||
Sempra Energy [Member] | Over-Allotment Option [Member] | Convertible Preferred Stock [Member] | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Shares issued | 2,250,000 | ||||||||||
San Diego Gas and Electric Company [Member] | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Equity, beginning of period | 5,626,000,000 | [1] | 5,626,000,000 | [1] | 5,678,000,000 | ||||||
Equity, beginning of period | [1] | 5,598,000,000 | 5,598,000,000 | ||||||||
Comprehensive income (loss) | 173,000,000 | 160,000,000 | |||||||||
Common stock dividends declared | (175,000,000) | ||||||||||
Distributions to noncontrolling interests | (1,000,000) | (3,000,000) | |||||||||
Equity, end of period | 5,798,000,000 | 5,660,000,000 | |||||||||
Equity, end of period | 5,768,000,000 | ||||||||||
San Diego Gas and Electric Company [Member] | Parent [Member] | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Equity, beginning of period | 5,598,000,000 | 5,598,000,000 | 5,641,000,000 | ||||||||
Comprehensive income (loss) | 170,000,000 | 155,000,000 | |||||||||
Common stock dividends declared | (175,000,000) | ||||||||||
Distributions to noncontrolling interests | 0 | 0 | |||||||||
Equity, end of period | 5,768,000,000 | 5,621,000,000 | |||||||||
San Diego Gas and Electric Company [Member] | Noncontrolling Interest [Member] | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Equity, beginning of period | 28,000,000 | 28,000,000 | 37,000,000 | ||||||||
Comprehensive income (loss) | 3,000,000 | 5,000,000 | |||||||||
Common stock dividends declared | 0 | ||||||||||
Distributions to noncontrolling interests | (1,000,000) | (3,000,000) | |||||||||
Equity, end of period | 30,000,000 | 39,000,000 | |||||||||
Southern California Gas Company [Member] | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Equity, beginning of period | $ 3,907,000,000 | [1] | 3,907,000,000 | [1] | 3,510,000,000 | ||||||
Comprehensive income (loss) | 225,000,000 | 203,000,000 | |||||||||
Equity, end of period | $ 4,132,000,000 | $ 3,713,000,000 | |||||||||
Subsequent Event [Member] | Settlement of Forward Sale Contracts [Member] | Common Stock [Member] | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Shares issuable under forward contracts | 14,807,856 | ||||||||||
[1] | Derived from audited financial statements. | ||||||||||
[2] | As adjusted for the retrospective adoption of ASU 2016-18, which we discuss in Note 2. |
GENERAL INFORMATION AND OTHER44
GENERAL INFORMATION AND OTHER FINANCIAL DATA - OTHER NONCONTROLLING INTERESTS (Details) $ in Millions | 3 Months Ended | ||
Dec. 31, 2017USD ($)facility | Mar. 31, 2018USD ($)subsidiary | ||
Noncontrolling Interest [Line Items] | |||
Noncontrolling interests | $ 2,450 | [1] | $ 2,441 |
San Diego Gas and Electric Company [Member] | Otay Mesa VIE [Member] | |||
Noncontrolling Interest [Line Items] | |||
Percent ownership held by noncontrolling interests | 100.00% | 100.00% | |
Noncontrolling interests | $ 28 | $ 30 | |
Sempra South American Utilities [Member] | Chilquinta Energía subsidiaries [Member] | |||
Noncontrolling Interest [Line Items] | |||
Noncontrolling interests | $ 24 | $ 26 | |
Number of subsidiaries with noncontrolling interests | subsidiary | 4 | ||
Sempra South American Utilities [Member] | Chilquinta Energía subsidiaries [Member] | Minimum [Member] | |||
Noncontrolling Interest [Line Items] | |||
Percent ownership held by noncontrolling interests | 22.90% | 22.90% | |
Sempra South American Utilities [Member] | Chilquinta Energía subsidiaries [Member] | Maximum [Member] | |||
Noncontrolling Interest [Line Items] | |||
Percent ownership held by noncontrolling interests | 43.40% | 43.40% | |
Sempra South American Utilities [Member] | Luz del Sur [Member] | |||
Noncontrolling Interest [Line Items] | |||
Percent ownership held by noncontrolling interests | 16.40% | 16.40% | |
Noncontrolling interests | $ 189 | $ 193 | |
Sempra South American Utilities [Member] | Tecsur [Member] | |||
Noncontrolling Interest [Line Items] | |||
Percent ownership held by noncontrolling interests | 9.80% | 9.80% | |
Noncontrolling interests | $ 4 | $ 4 | |
Sempra Mexico [Member] | IEnova [Member] | |||
Noncontrolling Interest [Line Items] | |||
Percent ownership held by noncontrolling interests | 33.60% | 33.60% | |
Noncontrolling interests | $ 1,532 | $ 1,539 | |
Sempra Renewables [Member] | Tax equity arrangement – wind [Member] | |||
Noncontrolling Interest [Line Items] | |||
Noncontrolling interests | 181 | 167 | |
Sempra Renewables [Member] | Tax equity arrangement – solar [Member] | |||
Noncontrolling Interest [Line Items] | |||
Noncontrolling interests | $ 450 | $ 440 | |
Sempra LNG & Midstream [Member] | Bay Gas Storage Company, Ltd. [Member] | |||
Noncontrolling Interest [Line Items] | |||
Percent ownership held by noncontrolling interests | 9.10% | 9.10% | |
Noncontrolling interests | $ 28 | $ 29 | |
Sempra LNG & Midstream [Member] | Liberty Gas Storage, LLC [Member] | |||
Noncontrolling Interest [Line Items] | |||
Percent ownership held by noncontrolling interests | 23.30% | 23.40% | |
Noncontrolling interests | $ 14 | $ 13 | |
Solar Power Projects [Member] | Tax Equity Investors [Member] | Sempra Renewables [Member] | |||
Noncontrolling Interest [Line Items] | |||
Number of facilities acquired | facility | 4 | ||
Subsidiaries [Member] | Sempra Mexico [Member] | IEnova [Member] | |||
Noncontrolling Interest [Line Items] | |||
Percent ownership held by noncontrolling interests | 10.00% | ||
[1] | Derived from audited financial statements. |
GENERAL INFORMATION AND OTHER45
GENERAL INFORMATION AND OTHER FINANCIAL DATA - DUE TO DUE FROM AFFILIATES (Details) $ in Billions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Mar. 31, 2018MXN ($) | ||
Related Party Transaction [Line Items] | ||||
Due from unconsolidated affiliates - current | $ 63,000,000 | $ 37,000,000 | [1] | |
Due from unconsolidated affiliates - noncurrent | 666,000,000 | 598,000,000 | [1] | |
Due to unconsolidated affiliates, current | (6,000,000) | (7,000,000) | [1] | |
Due to Affiliate, Noncurrent | $ (35,000,000) | (35,000,000) | [1] | |
ESJ joint venture [Member] | LIBOR [Member] | ||||
Related Party Transaction [Line Items] | ||||
Spread on variable rate | 637.50% | |||
Interest rate on due from affiliate, noncurrent | 8.26% | |||
TAG Pipeline Norte [Member] | ||||
Related Party Transaction [Line Items] | ||||
Interest rate on due from affiliate, noncurrent | 5.35% | |||
TAG Pipeline Norte [Member] | LIBOR [Member] | ||||
Related Party Transaction [Line Items] | ||||
Spread on variable rate | 290.00% | |||
San Diego Gas and Electric Company [Member] | ||||
Related Party Transaction [Line Items] | ||||
Due to unconsolidated affiliates, current | $ (43,000,000) | (40,000,000) | [1] | |
Maximum borrowing capacity | 750,000,000 | |||
San Diego Gas and Electric Company [Member] | Due to/from Other affiliates [Member] | ||||
Related Party Transaction [Line Items] | ||||
Due to unconsolidated affiliates, current | (6,000,000) | (6,000,000) | ||
San Diego Gas and Electric Company [Member] | Due to/from Sempra Energy [Member] | ||||
Related Party Transaction [Line Items] | ||||
Due to unconsolidated affiliates, current | (32,000,000) | (30,000,000) | ||
Income taxes due (to) from Sempra Energy | (39,000,000) | 27,000,000 | ||
San Diego Gas and Electric Company [Member] | Due to/from SoCalGas [Member] | ||||
Related Party Transaction [Line Items] | ||||
Due to unconsolidated affiliates, current | (5,000,000) | (4,000,000) | ||
Southern California Gas Company [Member] | ||||
Related Party Transaction [Line Items] | ||||
Due from unconsolidated affiliates - current | 6,000,000 | 4,000,000 | [1] | |
Due to unconsolidated affiliates, current | (37,000,000) | (35,000,000) | [1] | |
Maximum borrowing capacity | 750,000,000 | |||
Southern California Gas Company [Member] | Due to/from Other affiliates [Member] | ||||
Related Party Transaction [Line Items] | ||||
Due from unconsolidated affiliates - current | 1,000,000 | 0 | ||
Southern California Gas Company [Member] | Due to/from Sempra Energy [Member] | ||||
Related Party Transaction [Line Items] | ||||
Due to unconsolidated affiliates, current | (37,000,000) | (35,000,000) | ||
Income taxes due (to) from Sempra Energy | (2,000,000) | 10,000,000 | ||
Southern California Gas Company [Member] | Due to/from SDG&E [Member] | ||||
Related Party Transaction [Line Items] | ||||
Due from unconsolidated affiliates - current | 5,000,000 | 4,000,000 | ||
Sempra South American Utilities [Member] | Eletrans [Member] | ||||
Related Party Transaction [Line Items] | ||||
Due from unconsolidated affiliates - noncurrent | $ 38,000,000 | 103,000,000 | ||
Interest rate on due from affiliate, noncurrent | 4.00% | |||
Sempra South American Utilities [Member] | Due to/from Other affiliates [Member] | ||||
Related Party Transaction [Line Items] | ||||
Due from unconsolidated affiliates - noncurrent | $ 1,000,000 | 1,000,000 | ||
Sempra Mexico [Member] | IMG [Member] | ||||
Related Party Transaction [Line Items] | ||||
Due from unconsolidated affiliates - noncurrent | 621,000,000 | 487,000,000 | ||
Maximum borrowing capacity | $ 777,000,000 | $ 14.2 | ||
Sempra Mexico [Member] | IMG [Member] | Interbank Equilibrium Rate [Member] | ||||
Related Party Transaction [Line Items] | ||||
Spread on variable rate | 220.00% | |||
Interest rate on due from affiliate, noncurrent | 10.07% | |||
Sempra Mexico [Member] | ESJ joint venture [Member] | ||||
Related Party Transaction [Line Items] | ||||
Due from unconsolidated affiliates - noncurrent | $ 6,000,000 | 7,000,000 | ||
Sempra Mexico [Member] | TAG Pipeline Norte [Member] | ||||
Related Party Transaction [Line Items] | ||||
Due to Affiliate, Noncurrent | $ (35,000,000) | $ (35,000,000) | ||
[1] | Derived from audited financial statements. |
GENERAL INFORMATION AND OTHER46
GENERAL INFORMATION AND OTHER FINANCIAL DATA - AFFILIATES REVENUE AND COST OF SALES (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Related Party Transaction [Line Items] | ||
Revenue from related parties | $ 16 | $ 7 |
Costs of sales to related parties | 12 | 14 |
San Diego Gas and Electric Company [Member] | ||
Related Party Transaction [Line Items] | ||
Revenue from related parties | 2 | 2 |
Costs of sales to related parties | 19 | 20 |
Southern California Gas Company [Member] | ||
Related Party Transaction [Line Items] | ||
Revenue from related parties | $ 17 | $ 18 |
GENERAL INFORMATION AND OTHER47
GENERAL INFORMATION AND OTHER FINANCIAL DATA - OTHER INCOME (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | ||
Other Income [Line Items] | ||||
Allowance for equity funds used during construction | $ 27 | $ 72 | ||
Investment gains | (1) | 16 | ||
Gains on interest rate and foreign exchange instruments, net | 62 | 63 | ||
Foreign currency transaction gains, net | 30 | 10 | ||
Non-service component of net periodic benefit credit | 32 | 5 | ||
Interest on regulatory balancing accounts, net | 0 | 2 | ||
Sundry, net | 3 | 6 | ||
Total | 153 | 174 | [1] | |
Foreign currency transaction gain | 4 | $ 35 | ||
Equity losses | (20) | (5) | [1] | |
San Diego Gas and Electric Company [Member] | ||||
Other Income [Line Items] | ||||
Allowance for equity funds used during construction | 18 | 15 | ||
Non-service component of net periodic benefit credit | 9 | 4 | ||
Interest on regulatory balancing accounts, net | 0 | 2 | ||
Sundry, net | 1 | 1 | ||
Total | 28 | 22 | [1] | |
Southern California Gas Company [Member] | ||||
Other Income [Line Items] | ||||
Allowance for equity funds used during construction | 9 | 11 | ||
Non-service component of net periodic benefit credit | 25 | 3 | ||
Sundry, net | (1) | 0 | ||
Total | 33 | $ 14 | [1] | |
Sempra Mexico [Member] | IMG [Member] | ||||
Other Income [Line Items] | ||||
Foreign currency transaction gain | 39 | |||
Equity losses | $ 39 | |||
[1] | As adjusted for the retrospective adoption of ASU 2017-07, which we discuss in Note 2, and a reclassification to conform to current year presentation, which we discuss in Note 1. |
GENERAL INFORMATION AND OTHER48
GENERAL INFORMATION AND OTHER FINANCIAL DATA - INCOME TAXES (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2017 | ||
Income Tax Expense And Effective Income Tax Rates Disclosure [Line Items] | |||||
Federal tax rate | 21.00% | 35.00% | |||
Pretax income | $ 672 | $ 755 | |||
Income tax expense | $ 289 | $ 295 | [1] | ||
ETR | 43.00% | 39.00% | |||
Equity earnings, before income tax | $ 5 | $ 3 | |||
TCJA provisional income tax expense | 25 | $ 870 | |||
Income tax expense from transactional effects of foreign currency and inflation | 94 | 97 | |||
Income tax expense from transactional effects of foreign currency and inflation net of noncontrolling interest | 63 | 65 | |||
Gain (loss) from foreign currency derivatives | 44 | 65 | |||
Gain (loss) from foreign currency derivatives after-tax | 32 | 39 | |||
San Diego Gas and Electric Company [Member] | |||||
Income Tax Expense And Effective Income Tax Rates Disclosure [Line Items] | |||||
Pretax income | 225 | 247 | |||
Income tax expense | $ 56 | $ 90 | [1] | ||
ETR | 25.00% | 36.00% | |||
TCJA provisional income tax expense | $ (38) | ||||
Southern California Gas Company [Member] | |||||
Income Tax Expense And Effective Income Tax Rates Disclosure [Line Items] | |||||
Pretax income | 284 | $ 301 | |||
Income tax expense | $ 59 | $ 98 | [1] | ||
ETR | 21.00% | 33.00% | |||
TCJA provisional income tax expense | $ 5 | ||||
[1] | As adjusted for the retrospective adoption of ASU 2017-07, which we discuss in Note 2, and a reclassification to conform to current year presentation, which we discuss in Note 1. |
NEW ACCOUNTING STANDARDS (Detai
NEW ACCOUNTING STANDARDS (Details) - USD ($) $ in Millions | 3 Months Ended | |||||
Mar. 31, 2018 | Mar. 31, 2017 | Jan. 01, 2018 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Cumulative-effect adjustment from change in accounting principle | $ (1) | |||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||
Changes in other assets | $ (107) | $ (41) | [1] | |||
Net cash provided by operating activities | 966 | 1,004 | [1] | |||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||
Expenditures for investments and acquisition of businesses, net of cash and cash equivalents acquired | (9,617) | (59) | [1] | |||
Other | 26 | 4 | [1] | |||
Net cash used in investing activities | (10,632) | (1,026) | [1] | |||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||
Other | (52) | (5) | [1] | |||
Net Cash Provided by (Used in) Financing Activities | 9,608 | (46) | [1] | |||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 1 | 10 | [1] | |||
(Decrease) increase in cash, cash equivalents and restricted cash | (57) | (58) | [1] | |||
Cash and cash equivalents beginning balance | [2] | 288 | ||||
Cash and cash equivalents ending balance | 239 | |||||
Cash, cash equivalents and restricted cash beginning balance | 364 | 425 | [1] | |||
Cash, cash equivalents and restricted cash ending balance | 307 | 367 | [1] | |||
Income Statement [Abstract] | ||||||
Operation and maintenance | 781 | 719 | [3] | |||
Other income, net | 153 | 174 | [3] | |||
New Accounting Pronouncement, Early Adoption, Effect [Member] | Accounting Standards Update 2016-18 [Member] | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||
Increases in restricted cash | 0 | |||||
Decreases in restricted cash | 0 | |||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||
Effect of Exchange Rate on Cash and Cash Equivalents | 0 | |||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 10 | |||||
(Decrease) increase in cash and cash equivalents | 0 | |||||
(Decrease) increase in cash, cash equivalents and restricted cash | (58) | |||||
Cash and cash equivalents beginning balance | 0 | |||||
Cash and cash equivalents ending balance | 0 | |||||
Cash, cash equivalents and restricted cash beginning balance | 425 | |||||
Cash, cash equivalents and restricted cash ending balance | 367 | |||||
New Accounting Pronouncement, Early Adoption, Effect [Member] | Accounting Standards Update 2016-01 and 2018-03 [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Cumulative-effect adjustment from change in accounting principle | 1 | |||||
New Accounting Pronouncement, Early Adoption, Effect [Member] | Accounting Standards Update 2017-07 [Member] | ||||||
Income Statement [Abstract] | ||||||
Operation and maintenance | 719 | |||||
Other income, net | 174 | |||||
New Accounting Pronouncement, Early Adoption, Effect [Member] | Accounting Standards Update 2017-12 [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Cumulative-effect adjustment from change in accounting principle | $ 3 | |||||
As previously reported [Member] | New Accounting Pronouncement, Early Adoption, Effect [Member] | Accounting Standards Update 2016-18 [Member] | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||
Increases in restricted cash | (93) | |||||
Decreases in restricted cash | 93 | |||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||
Effect of Exchange Rate on Cash and Cash Equivalents | 9 | |||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 0 | |||||
(Decrease) increase in cash and cash equivalents | (59) | |||||
(Decrease) increase in cash, cash equivalents and restricted cash | 0 | |||||
Cash and cash equivalents beginning balance | 349 | |||||
Cash and cash equivalents ending balance | 290 | |||||
Cash, cash equivalents and restricted cash beginning balance | 0 | |||||
Cash, cash equivalents and restricted cash ending balance | 0 | |||||
As previously reported [Member] | New Accounting Pronouncement, Early Adoption, Effect [Member] | Accounting Standards Update 2017-07 [Member] | ||||||
Income Statement [Abstract] | ||||||
Operation and maintenance | 714 | |||||
Other income, net | 169 | |||||
Effect of adoption [Member] | New Accounting Pronouncement, Early Adoption, Effect [Member] | Accounting Standards Update 2016-18 [Member] | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||
Increases in restricted cash | 93 | |||||
Decreases in restricted cash | (93) | |||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||
Effect of Exchange Rate on Cash and Cash Equivalents | (9) | |||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 10 | |||||
(Decrease) increase in cash and cash equivalents | 59 | |||||
(Decrease) increase in cash, cash equivalents and restricted cash | (58) | |||||
Cash and cash equivalents beginning balance | (349) | |||||
Cash and cash equivalents ending balance | (290) | |||||
Cash, cash equivalents and restricted cash beginning balance | 425 | |||||
Cash, cash equivalents and restricted cash ending balance | 367 | |||||
Effect of adoption [Member] | New Accounting Pronouncement, Early Adoption, Effect [Member] | Accounting Standards Update 2017-07 [Member] | ||||||
Income Statement [Abstract] | ||||||
Operation and maintenance | 5 | |||||
Other income, net | 5 | |||||
San Diego Gas and Electric Company [Member] | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||
Changes in other assets | (33) | (34) | [1] | |||
Net cash provided by operating activities | 404 | 386 | [1] | |||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||
Net cash used in investing activities | (475) | (380) | [1] | |||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||
Net Cash Provided by (Used in) Financing Activities | 67 | 5 | [1] | |||
Cash and cash equivalents beginning balance | [2] | 12 | ||||
Cash and cash equivalents ending balance | 9 | |||||
Cash, cash equivalents and restricted cash beginning balance | 29 | 20 | [1] | |||
Cash, cash equivalents and restricted cash ending balance | 25 | 31 | [1] | |||
Income Statement [Abstract] | ||||||
Operation and maintenance | 248 | 231 | [3] | |||
Total operating expenses | 807 | 783 | [3] | |||
Operating income | 248 | 274 | [3] | |||
Other income, net | 28 | 22 | [3] | |||
San Diego Gas and Electric Company [Member] | New Accounting Pronouncement, Early Adoption, Effect [Member] | Accounting Standards Update 2016-18 [Member] | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||
Increases in restricted cash | 0 | |||||
Decreases in restricted cash | 0 | |||||
Net cash used in investing activities | (380) | |||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||
(Decrease) increase in cash and cash equivalents | 0 | |||||
(Decrease) increase in cash, cash equivalents and restricted cash | 11 | |||||
Cash and cash equivalents beginning balance | 0 | |||||
Cash and cash equivalents ending balance | 0 | |||||
Cash, cash equivalents and restricted cash beginning balance | 20 | |||||
Cash, cash equivalents and restricted cash ending balance | 31 | |||||
San Diego Gas and Electric Company [Member] | New Accounting Pronouncement, Early Adoption, Effect [Member] | Accounting Standards Update 2017-07 [Member] | ||||||
Income Statement [Abstract] | ||||||
Operation and maintenance | 231 | |||||
Total operating expenses | 783 | |||||
Operating income | 274 | |||||
Other income, net | 22 | |||||
San Diego Gas and Electric Company [Member] | As previously reported [Member] | New Accounting Pronouncement, Early Adoption, Effect [Member] | Accounting Standards Update 2016-18 [Member] | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||
Increases in restricted cash | (10) | |||||
Decreases in restricted cash | 9 | |||||
Net cash used in investing activities | (381) | |||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||
(Decrease) increase in cash and cash equivalents | 10 | |||||
(Decrease) increase in cash, cash equivalents and restricted cash | 0 | |||||
Cash and cash equivalents beginning balance | 8 | |||||
Cash and cash equivalents ending balance | 18 | |||||
Cash, cash equivalents and restricted cash beginning balance | 0 | |||||
Cash, cash equivalents and restricted cash ending balance | 0 | |||||
San Diego Gas and Electric Company [Member] | As previously reported [Member] | New Accounting Pronouncement, Early Adoption, Effect [Member] | Accounting Standards Update 2017-07 [Member] | ||||||
Income Statement [Abstract] | ||||||
Operation and maintenance | 227 | |||||
Total operating expenses | 779 | |||||
Operating income | 278 | |||||
Other income, net | 18 | |||||
San Diego Gas and Electric Company [Member] | Effect of adoption [Member] | New Accounting Pronouncement, Early Adoption, Effect [Member] | Accounting Standards Update 2016-18 [Member] | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||
Increases in restricted cash | 10 | |||||
Decreases in restricted cash | (9) | |||||
Net cash used in investing activities | 1 | |||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||
(Decrease) increase in cash and cash equivalents | (10) | |||||
(Decrease) increase in cash, cash equivalents and restricted cash | 11 | |||||
Cash and cash equivalents beginning balance | (8) | |||||
Cash and cash equivalents ending balance | (18) | |||||
Cash, cash equivalents and restricted cash beginning balance | 20 | |||||
Cash, cash equivalents and restricted cash ending balance | 31 | |||||
San Diego Gas and Electric Company [Member] | Effect of adoption [Member] | New Accounting Pronouncement, Early Adoption, Effect [Member] | Accounting Standards Update 2017-07 [Member] | ||||||
Income Statement [Abstract] | ||||||
Operation and maintenance | 4 | |||||
Total operating expenses | 4 | |||||
Operating income | (4) | |||||
Other income, net | 4 | |||||
Southern California Gas Company [Member] | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||
Changes in other assets | (57) | (21) | [1] | |||
Net cash provided by operating activities | 419 | 463 | [1] | |||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||
Other | 3 | 0 | [1] | |||
Net cash used in investing activities | (400) | (392) | [1] | |||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||
Net Cash Provided by (Used in) Financing Activities | (16) | (62) | [1] | |||
(Decrease) increase in cash and cash equivalents | 3 | 9 | [1] | |||
Cash and cash equivalents beginning balance | 8 | [2] | 12 | [1] | ||
Cash and cash equivalents ending balance | 11 | 21 | [1] | |||
Income Statement [Abstract] | ||||||
Operation and maintenance | 384 | 356 | [3] | |||
Total operating expenses | 848 | 929 | [3] | |||
Operating income | 278 | 312 | [3] | |||
Other income, net | $ 33 | 14 | [3] | |||
Southern California Gas Company [Member] | New Accounting Pronouncement, Early Adoption, Effect [Member] | Accounting Standards Update 2017-07 [Member] | ||||||
Income Statement [Abstract] | ||||||
Operation and maintenance | 356 | |||||
Total operating expenses | 929 | |||||
Operating income | 312 | |||||
Other income, net | 14 | |||||
Southern California Gas Company [Member] | As previously reported [Member] | New Accounting Pronouncement, Early Adoption, Effect [Member] | Accounting Standards Update 2017-07 [Member] | ||||||
Income Statement [Abstract] | ||||||
Operation and maintenance | 353 | |||||
Total operating expenses | 926 | |||||
Operating income | 315 | |||||
Other income, net | 11 | |||||
Southern California Gas Company [Member] | Effect of adoption [Member] | New Accounting Pronouncement, Early Adoption, Effect [Member] | Accounting Standards Update 2017-07 [Member] | ||||||
Income Statement [Abstract] | ||||||
Operation and maintenance | 3 | |||||
Total operating expenses | 3 | |||||
Operating income | (3) | |||||
Other income, net | $ 3 | |||||
[1] | As adjusted for the retrospective adoption of ASU 2016-18, which we discuss in Note 2. | |||||
[2] | Derived from audited financial statements. | |||||
[3] | As adjusted for the retrospective adoption of ASU 2017-07, which we discuss in Note 2, and a reclassification to conform to current year presentation, which we discuss in Note 1. |
REVENUES - Disaggregation of Re
REVENUES - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | [1] | |
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | $ 2,896 | ||
Utilities regulatory revenues | (31) | ||
Other revenues | 97 | ||
Total revenues | 2,962 | $ 3,031 | |
Over time [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 2,823 | ||
Point in time [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 73 | ||
Utilities service line [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 2,629 | ||
Midstream service line [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 176 | ||
Renewables service line [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 33 | ||
Other service line [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 58 | ||
Electric market [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 1,459 | ||
Gas market [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 1,437 | ||
Operating Segments [Member] | San Diego Gas and Electric Company [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 1,131 | ||
Utilities regulatory revenues | (76) | ||
Other revenues | 0 | ||
Total revenues | 1,055 | ||
Operating Segments [Member] | San Diego Gas and Electric Company [Member] | Over time [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 1,104 | ||
Operating Segments [Member] | San Diego Gas and Electric Company [Member] | Point in time [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 27 | ||
Operating Segments [Member] | San Diego Gas and Electric Company [Member] | Utilities service line [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 1,131 | ||
Operating Segments [Member] | San Diego Gas and Electric Company [Member] | Midstream service line [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 0 | ||
Operating Segments [Member] | San Diego Gas and Electric Company [Member] | Renewables service line [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 0 | ||
Operating Segments [Member] | San Diego Gas and Electric Company [Member] | Other service line [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 0 | ||
Operating Segments [Member] | San Diego Gas and Electric Company [Member] | Electric market [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 963 | ||
Operating Segments [Member] | San Diego Gas and Electric Company [Member] | Gas market [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 168 | ||
Operating Segments [Member] | Southern California Gas Company [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 1,081 | ||
Utilities regulatory revenues | 45 | ||
Other revenues | 0 | ||
Total revenues | 1,126 | ||
Operating Segments [Member] | Southern California Gas Company [Member] | Over time [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 1,051 | ||
Operating Segments [Member] | Southern California Gas Company [Member] | Point in time [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 30 | ||
Operating Segments [Member] | Southern California Gas Company [Member] | Utilities service line [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 1,081 | ||
Operating Segments [Member] | Southern California Gas Company [Member] | Midstream service line [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 0 | ||
Operating Segments [Member] | Southern California Gas Company [Member] | Renewables service line [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 0 | ||
Operating Segments [Member] | Southern California Gas Company [Member] | Other service line [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 0 | ||
Operating Segments [Member] | Southern California Gas Company [Member] | Electric market [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 0 | ||
Operating Segments [Member] | Southern California Gas Company [Member] | Gas market [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 1,081 | ||
Operating Segments [Member] | Sempra South American Utilities [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 425 | ||
Utilities regulatory revenues | 0 | ||
Other revenues | 1 | ||
Total revenues | 426 | ||
Operating Segments [Member] | Sempra South American Utilities [Member] | Over time [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 420 | ||
Operating Segments [Member] | Sempra South American Utilities [Member] | Point in time [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 5 | ||
Operating Segments [Member] | Sempra South American Utilities [Member] | Utilities service line [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 408 | ||
Operating Segments [Member] | Sempra South American Utilities [Member] | Midstream service line [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 0 | ||
Operating Segments [Member] | Sempra South American Utilities [Member] | Renewables service line [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 0 | ||
Operating Segments [Member] | Sempra South American Utilities [Member] | Other service line [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 17 | ||
Operating Segments [Member] | Sempra South American Utilities [Member] | Electric market [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 425 | ||
Operating Segments [Member] | Sempra South American Utilities [Member] | Gas market [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 0 | ||
Operating Segments [Member] | Sempra Mexico [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 234 | ||
Utilities regulatory revenues | 0 | ||
Other revenues | 74 | ||
Total revenues | 308 | ||
Operating Segments [Member] | Sempra Mexico [Member] | Over time [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 234 | ||
Operating Segments [Member] | Sempra Mexico [Member] | Point in time [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 0 | ||
Operating Segments [Member] | Sempra Mexico [Member] | Utilities service line [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 28 | ||
Operating Segments [Member] | Sempra Mexico [Member] | Midstream service line [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 143 | ||
Operating Segments [Member] | Sempra Mexico [Member] | Renewables service line [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 22 | ||
Operating Segments [Member] | Sempra Mexico [Member] | Other service line [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 41 | ||
Operating Segments [Member] | Sempra Mexico [Member] | Electric market [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 62 | ||
Operating Segments [Member] | Sempra Mexico [Member] | Gas market [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 172 | ||
Operating Segments [Member] | Sempra Renewables [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 11 | ||
Utilities regulatory revenues | 0 | ||
Other revenues | 14 | ||
Total revenues | 25 | ||
Operating Segments [Member] | Sempra Renewables [Member] | Over time [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 11 | ||
Operating Segments [Member] | Sempra Renewables [Member] | Point in time [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 0 | ||
Operating Segments [Member] | Sempra Renewables [Member] | Utilities service line [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 0 | ||
Operating Segments [Member] | Sempra Renewables [Member] | Midstream service line [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 0 | ||
Operating Segments [Member] | Sempra Renewables [Member] | Renewables service line [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 11 | ||
Operating Segments [Member] | Sempra Renewables [Member] | Other service line [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 0 | ||
Operating Segments [Member] | Sempra Renewables [Member] | Electric market [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 11 | ||
Operating Segments [Member] | Sempra Renewables [Member] | Gas market [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 0 | ||
Operating Segments [Member] | Sempra LNG & Midstream [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 57 | ||
Utilities regulatory revenues | 0 | ||
Other revenues | 47 | ||
Total revenues | 104 | ||
Operating Segments [Member] | Sempra LNG & Midstream [Member] | Over time [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 40 | ||
Operating Segments [Member] | Sempra LNG & Midstream [Member] | Point in time [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 17 | ||
Operating Segments [Member] | Sempra LNG & Midstream [Member] | Utilities service line [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 0 | ||
Operating Segments [Member] | Sempra LNG & Midstream [Member] | Midstream service line [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 54 | ||
Operating Segments [Member] | Sempra LNG & Midstream [Member] | Renewables service line [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 1 | ||
Operating Segments [Member] | Sempra LNG & Midstream [Member] | Other service line [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 2 | ||
Operating Segments [Member] | Sempra LNG & Midstream [Member] | Electric market [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 2 | ||
Operating Segments [Member] | Sempra LNG & Midstream [Member] | Gas market [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 55 | ||
Consolidating Adjustments [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | (43) | ||
Utilities regulatory revenues | 0 | ||
Other revenues | (39) | ||
Total revenues | (82) | ||
Consolidating Adjustments [Member] | Over time [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | (37) | ||
Consolidating Adjustments [Member] | Point in time [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | (6) | ||
Consolidating Adjustments [Member] | Utilities service line [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | (19) | ||
Consolidating Adjustments [Member] | Midstream service line [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | (21) | ||
Consolidating Adjustments [Member] | Renewables service line [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | (1) | ||
Consolidating Adjustments [Member] | Other service line [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | (2) | ||
Consolidating Adjustments [Member] | Electric market [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | (4) | ||
Consolidating Adjustments [Member] | Gas market [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | $ (39) | ||
[1] | As adjusted for the retrospective adoption of ASU 2017-07, which we discuss in Note 2, and a reclassification to conform to current year presentation, which we discuss in Note 1. |
REVENUES - Performance Obligati
REVENUES - Performance Obligations (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenues to be recognized | $ 531 |
Revenues to be recognized, period of recognition | 9 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenues to be recognized | $ 533 |
Revenues to be recognized, period of recognition | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenues to be recognized | $ 532 |
Revenues to be recognized, period of recognition | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenues to be recognized | $ 528 |
Revenues to be recognized, period of recognition | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenues to be recognized | $ 531 |
Revenues to be recognized, period of recognition | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenues to be recognized | $ 3,384 |
Revenues to be recognized, period of recognition | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: (nil) | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenues to be recognized | $ 6,039 |
San Diego Gas and Electric Company [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenues to be recognized | $ 2 |
Revenues to be recognized, period of recognition | 9 months |
San Diego Gas and Electric Company [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenues to be recognized | $ 3 |
Revenues to be recognized, period of recognition | 1 year |
San Diego Gas and Electric Company [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenues to be recognized | $ 3 |
Revenues to be recognized, period of recognition | 1 year |
San Diego Gas and Electric Company [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenues to be recognized | $ 3 |
Revenues to be recognized, period of recognition | 1 year |
San Diego Gas and Electric Company [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenues to be recognized | $ 3 |
Revenues to be recognized, period of recognition | 1 year |
San Diego Gas and Electric Company [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenues to be recognized | $ 55 |
Revenues to be recognized, period of recognition | |
San Diego Gas and Electric Company [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: (nil) | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenues to be recognized | $ 69 |
REVENUES - Contract Liabilities
REVENUES - Contract Liabilities (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Contract with Customer, Liability [Roll Forward] | |
Opening balance, January 1, 2018 | $ 0 |
Adoption of ASC 606 adjustment | (68) |
Revenue from performance obligations satisfied during reporting period | 12 |
Payments received in advance | (15) |
Closing balance, March 31, 2018 | (71) |
Other Current Liabilities [Member] | |
Contract with Customer, Liability [Roll Forward] | |
Closing balance, March 31, 2018 | (9) |
Deferred Credits and Other [Member] | |
Contract with Customer, Liability [Roll Forward] | |
Closing balance, March 31, 2018 | $ (62) |
REVENUES - Receivables From Rev
REVENUES - Receivables From Revenues From Contracts With Customers (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Jan. 01, 2018 |
Contract with Customer, Asset [Line Items] | ||
Receivables from revenues from contracts with customers | $ 1,246 | $ 1,212 |
Accounts receivable – trade, net [Member] | ||
Contract with Customer, Asset [Line Items] | ||
Receivables from revenues from contracts with customers | 1,226 | 1,194 |
Accounts receivable – other, net [Member] | ||
Contract with Customer, Asset [Line Items] | ||
Receivables from revenues from contracts with customers | 11 | 10 |
Due from unconsolidated affiliates – current [Member] | ||
Contract with Customer, Asset [Line Items] | ||
Receivables from revenues from contracts with customers | 9 | 8 |
San Diego Gas and Electric Company [Member] | ||
Contract with Customer, Asset [Line Items] | ||
Receivables from revenues from contracts with customers | 385 | 368 |
San Diego Gas and Electric Company [Member] | Accounts receivable – trade, net [Member] | ||
Contract with Customer, Asset [Line Items] | ||
Receivables from revenues from contracts with customers | 376 | 362 |
San Diego Gas and Electric Company [Member] | Accounts receivable – other, net [Member] | ||
Contract with Customer, Asset [Line Items] | ||
Receivables from revenues from contracts with customers | 6 | 3 |
San Diego Gas and Electric Company [Member] | Due from unconsolidated affiliates – current [Member] | ||
Contract with Customer, Asset [Line Items] | ||
Receivables from revenues from contracts with customers | 3 | 3 |
Southern California Gas Company [Member] | ||
Contract with Customer, Asset [Line Items] | ||
Receivables from revenues from contracts with customers | 512 | 524 |
Southern California Gas Company [Member] | Accounts receivable – trade, net [Member] | ||
Contract with Customer, Asset [Line Items] | ||
Receivables from revenues from contracts with customers | 509 | 517 |
Southern California Gas Company [Member] | Accounts receivable – other, net [Member] | ||
Contract with Customer, Asset [Line Items] | ||
Receivables from revenues from contracts with customers | $ 3 | $ 7 |
REVENUES - Other Revenues (Deta
REVENUES - Other Revenues (Details) | 3 Months Ended |
Mar. 31, 2018 | |
Sempra Renewables [Member] | Minimum [Member] | |
Lessee, Lease, Description [Line Items] | |
Operating lease term | 15 years |
Sempra Renewables [Member] | Maximum [Member] | |
Lessee, Lease, Description [Line Items] | |
Operating lease term | 25 years |
Sempra Mexico [Member] | Minimum [Member] | |
Lessee, Lease, Description [Line Items] | |
Operating lease term | 15 years |
Sempra Mexico [Member] | Maximum [Member] | |
Lessee, Lease, Description [Line Items] | |
Operating lease term | 25 years |
REGULATORY MATTERS - COST OF CA
REGULATORY MATTERS - COST OF CAPITAL (Details) - California Public Utilities Commission [Member] | 3 Months Ended | 24 Months Ended |
Mar. 31, 2018 | Dec. 31, 2019 | |
San Diego Gas and Electric Company [Member] | ||
Public Utilities, General Disclosures [Line Items] | ||
Return On Rate Base | 7.79% | |
Cost of debt | 5.00% | |
San Diego Gas and Electric Company [Member] | Forecast [Member] | ||
Public Utilities, General Disclosures [Line Items] | ||
Authorized weighting | 100.00% | |
Return On Rate Base | 7.55% | |
Cost of debt | 4.59% | |
Difference between current cost of capital and proposed cost of capital | (0.41%) | |
Difference between current return on rate base and proposed return on rate base | (0.24%) | |
San Diego Gas and Electric Company [Member] | Long Term Debt [Member] | Forecast [Member] | ||
Public Utilities, General Disclosures [Line Items] | ||
Authorized weighting | 45.25% | |
Return on rate base | 4.59% | |
Weighted return on rate base | 2.08% | |
San Diego Gas and Electric Company [Member] | Preferred Stock [Member] | Forecast [Member] | ||
Public Utilities, General Disclosures [Line Items] | ||
Authorized weighting | 2.75% | |
Return on rate base | 6.22% | |
Weighted return on rate base | 0.17% | |
San Diego Gas and Electric Company [Member] | Common Equity [Member] | Forecast [Member] | ||
Public Utilities, General Disclosures [Line Items] | ||
Authorized weighting | 52.00% | |
Return on rate base | 10.20% | |
Weighted return on rate base | 5.30% | |
Southern California Gas Company [Member] | ||
Public Utilities, General Disclosures [Line Items] | ||
Return On Rate Base | 8.02% | |
Cost of debt | 5.77% | |
Southern California Gas Company [Member] | Forecast [Member] | ||
Public Utilities, General Disclosures [Line Items] | ||
Authorized weighting | 100.00% | |
Return On Rate Base | 7.34% | |
Cost of debt | 4.33% | |
Difference between current cost of capital and proposed cost of capital | (1.44%) | |
Difference between current return on rate base and proposed return on rate base | (0.68%) | |
Southern California Gas Company [Member] | Long Term Debt [Member] | Forecast [Member] | ||
Public Utilities, General Disclosures [Line Items] | ||
Authorized weighting | 45.60% | |
Return on rate base | 4.33% | |
Weighted return on rate base | 1.97% | |
Southern California Gas Company [Member] | Preferred Stock [Member] | Forecast [Member] | ||
Public Utilities, General Disclosures [Line Items] | ||
Authorized weighting | 2.40% | |
Return on rate base | 6.00% | |
Weighted return on rate base | 0.14% | |
Southern California Gas Company [Member] | Common Equity [Member] | Forecast [Member] | ||
Public Utilities, General Disclosures [Line Items] | ||
Authorized weighting | 52.00% | |
Return on rate base | 10.05% | |
Weighted return on rate base | 5.23% |
- REGULATORY ACCOUNTS (Details)
- REGULATORY ACCOUNTS (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Sempra Mexico [Member] | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | $ 83 | $ 83 |
Net Regulatory Assets (Liabilities) Sempra Energy Consolidated [Member] | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | (2,294) | (2,189) |
San Diego Gas and Electric Company [Member] | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Regulatory balancing accounts - net undercollected, Noncurrent | 72 | 63 |
San Diego Gas and Electric Company [Member] | Fixed-price contracts and other derivatives [Member] | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | 103 | 96 |
San Diego Gas and Electric Company [Member] | Deferred income taxes (refundable) recoverable in rates [Member] | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | (305) | (281) |
San Diego Gas and Electric Company [Member] | Pension and other postretirement benefit plan obligations [Member] | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | 170 | 153 |
San Diego Gas and Electric Company [Member] | Removal obligations [Member] | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | (1,827) | (1,846) |
San Diego Gas and Electric Company [Member] | Unamortized loss on reacquired debt [Member] | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | 8 | 9 |
San Diego Gas and Electric Company [Member] | Environmental costs [Member] | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | 29 | 29 |
San Diego Gas and Electric Company [Member] | Sunrise Powerlink fire mitigation [Member] | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | 120 | 119 |
San Diego Gas and Electric Company [Member] | Regulatory Balancing Accounts, Commodity – electric [Member] | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | 112 | 82 |
San Diego Gas and Electric Company [Member] | Regulatory Balancing Accounts, Gas transportation [Member] | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | 19 | 22 |
San Diego Gas and Electric Company [Member] | Regulatory Balancing Accounts, Safety and reliability [Member] | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | 52 | 48 |
San Diego Gas and Electric Company [Member] | Regulatory Balancing Accounts, Public purpose programs [Member] | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | (83) | (70) |
San Diego Gas and Electric Company [Member] | Regulatory Balancing Accounts, Other balancing accounts [Member] | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | 149 | 233 |
San Diego Gas and Electric Company [Member] | Other regulatory (liabilities) assets [Member] | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | (89) | (70) |
San Diego Gas and Electric Company [Member] | Net Regulatory Assets (Liabilities) SDGE [Member] | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | (1,542) | (1,476) |
Southern California Gas Company [Member] | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Regulatory balancing accounts - net undercollected, Noncurrent | 141 | 118 |
Southern California Gas Company [Member] | Deferred income taxes (refundable) recoverable in rates [Member] | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | (395) | (437) |
Southern California Gas Company [Member] | Pension and other postretirement benefit plan obligations [Member] | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | 529 | 513 |
Southern California Gas Company [Member] | Employee benefit costs [Member] | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | 45 | 45 |
Southern California Gas Company [Member] | Removal obligations [Member] | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | (910) | (924) |
Southern California Gas Company [Member] | Unamortized loss on reacquired debt [Member] | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | 7 | 8 |
Southern California Gas Company [Member] | Environmental costs [Member] | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | 21 | 22 |
Southern California Gas Company [Member] | Workers’ compensation [Member] | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | 12 | 12 |
Southern California Gas Company [Member] | Regulatory Balancing Accounts, Commodity - gas including transportation | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | 168 | 151 |
Southern California Gas Company [Member] | Regulatory Balancing Accounts, Safety and reliability [Member] | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | 275 | 266 |
Southern California Gas Company [Member] | Regulatory Balancing Accounts, Public purpose programs [Member] | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | (353) | (274) |
Southern California Gas Company [Member] | Regulatory Balancing Accounts, Other balancing accounts [Member] | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | (149) | (114) |
Southern California Gas Company [Member] | Other regulatory (liabilities) assets [Member] | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | (85) | (64) |
Southern California Gas Company [Member] | Net Regulatory Assets (Liabilities) SoCalGas [Member] | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | $ (835) | $ (796) |
- GENERAL RATE CASE (Details)
- GENERAL RATE CASE (Details) - USD ($) $ in Millions | Oct. 06, 2017 | Apr. 30, 2018 | Mar. 31, 2018 |
Southern California Gas Company [Member] | |||
General Rate Case [Line Items] | |||
GRC requested revenue requirement | $ 2,989 | ||
GRC requested revenue requirement adjustment | 533 | ||
Tax Cuts and Jobs Act, Change in Tax Rate, Change in Revenue Requirement | $ 58 | ||
GRC revenue requirement | 2,931 | ||
Southern California Gas Company [Member] | General Rate Case [Member] | |||
General Rate Case [Line Items] | |||
Tracked income tax expense liability | 77 | ||
Southern California Gas Company [Member] | Future Refund of Rates to Customers [Member] | |||
General Rate Case [Line Items] | |||
Regulatory liability | 19 | ||
San Diego Gas and Electric Company [Member] | |||
General Rate Case [Line Items] | |||
GRC requested revenue requirement | 2,199 | ||
GRC requested revenue requirement adjustment | $ 217 | ||
Tax Cuts and Jobs Act, Change in Tax Rate, Change in Revenue Requirement | 58 | ||
San Diego Gas and Electric Company [Member] | General Rate Case [Member] | |||
General Rate Case [Line Items] | |||
Tracked income tax expense liability | 67 | ||
San Diego Gas and Electric Company [Member] | Future Refund of Rates to Customers [Member] | |||
General Rate Case [Line Items] | |||
Regulatory liability | 18 | ||
San Diego Gas and Electric Company [Member] | Future Refund of Rates to Customers - FERC [Member] | |||
General Rate Case [Line Items] | |||
Regulatory liability | $ 15 | ||
Minimum [Member] | Southern California Gas Company [Member] | |||
General Rate Case [Line Items] | |||
GRC requested revenue requirement adjustment percentage | 6.00% | ||
Minimum [Member] | San Diego Gas and Electric Company [Member] | |||
General Rate Case [Line Items] | |||
GRC requested revenue requirement adjustment percentage | 5.00% | ||
Maximum [Member] | Southern California Gas Company [Member] | |||
General Rate Case [Line Items] | |||
GRC requested revenue requirement adjustment percentage | 8.00% | ||
Maximum [Member] | San Diego Gas and Electric Company [Member] | |||
General Rate Case [Line Items] | |||
GRC requested revenue requirement adjustment percentage | 7.00% | ||
Subsequent Event [Member] | Southern California Gas Company [Member] | |||
General Rate Case [Line Items] | |||
GRC requested revenue requirement | $ 2,695 | ||
GRC requested revenue requirement adjustment | 239 | ||
Subsequent Event [Member] | San Diego Gas and Electric Company [Member] | |||
General Rate Case [Line Items] | |||
GRC requested revenue requirement | 1,918 | ||
GRC requested revenue requirement adjustment | $ 64 | ||
Proposed annual attrition percentage | 4.00% | ||
Subsequent Event [Member] | Minimum [Member] | Southern California Gas Company [Member] | |||
General Rate Case [Line Items] | |||
Proposed annual attrition percentage | 4.00% | ||
Subsequent Event [Member] | Maximum [Member] | Southern California Gas Company [Member] | |||
General Rate Case [Line Items] | |||
Proposed annual attrition percentage | 5.00% | ||
Otay Mesa Energy Center [Member] | Subsequent Event [Member] | San Diego Gas and Electric Company [Member] | |||
General Rate Case [Line Items] | |||
Owning and operating costs | $ 68 |
ACQUISTION AND DIVESTITURE AC58
ACQUISTION AND DIVESTITURE ACTIVITY - ACQUISITION ACTIVITY (Details) $ in Millions | Mar. 09, 2018USD ($) | Mar. 08, 2018USD ($)shares | Feb. 28, 2018USD ($)MW | Jan. 12, 2018USD ($) | Jan. 09, 2018shares | Jan. 31, 2018USD ($) | Mar. 31, 2018USD ($) | Mar. 31, 2017USD ($) | [1] |
Business Acquisition [Line Items] | |||||||||
Cash paid, net of cash and cash equivalents acquired | $ (9,566) | $ 0 | |||||||
Repayments of debt | $ 800 | $ 800 | |||||||
Issuances of common stock, net of $24 in offering costs | $ 1,278 | $ 17 | |||||||
Oncor Electric Delivery Company LLC. [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Acquired percentage interest | 80.25% | ||||||||
Oncor Holdings [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Consideration | $ 9,566 | ||||||||
Fisterra Midstream Mexico [Member] | Sempra Mexico [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Cash consideration | $ 5 | ||||||||
Commitment to Invest | $ 130 | ||||||||
Generating capacity (in mw) | MW | 125 | ||||||||
Term of power purchase agreement | 15 years | ||||||||
Oncor Electric Delivery Company LLC Additional Acquisition [Member] | Sempra Texas Intermediate Holding Company LLC [Member] | Oncor Holdings [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Cash consideration | $ 26 | ||||||||
Oncor Electric Delivery Company LLC Additional Acquisition [Member] | Oncor Electric Delivery Company LLC. [Member] | Oncor Holdings [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Acquired percentage interest | 0.22% | ||||||||
Ownership percentage in consolidated entity | 0.22% | ||||||||
Consideration | $ 26 | ||||||||
Sempra Texas Holdings Corp [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Proceeds from Issuance of Debt and Equity | $ 7,000 | ||||||||
Proceeds from issuance of debt | $ 4,900 | ||||||||
Sempra Texas Holdings Corp [Member] | Oncor Electric Delivery Company LLC. [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Acquired percentage interest | 80.03% | ||||||||
Sempra Texas Holdings Corp [Member] | Sempra Texas Intermediate Holding Company LLC [Member] | Oncor Holdings [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Ownership percentage in consolidated entity | 100.00% | ||||||||
Sempra Texas Holdings Corp [Member] | Texas Transmission Investment LLC [Member] | Oncor Electric Delivery Company LLC. [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Ownership percentage held by noncontrolling owners | 19.75% | ||||||||
Sempra Texas Holdings Corp [Member] | Oncor Holdings [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Cash consideration | $ 9,450 | ||||||||
Adjustment for dividends | 31 | ||||||||
Transaction costs incurred | $ 59 | ||||||||
Sempra Texas Holdings Corp [Member] | Oncor Holdings [Member] | Oncor Electric Delivery Company LLC. [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Ownership percentage in consolidated entity | 80.25% | ||||||||
Common Stock [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Shares issued | shares | 8,556,630 | 26,869,158 | |||||||
Common Stock [Member] | Settlement of Forward Sale Contracts [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Issuances of common stock, net of $24 in offering costs | $ 900 | ||||||||
Commercial Paper [Member] | Sempra Texas Holdings Corp [Member] | Oncor Holdings [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Proceeds from issuance of debt | $ 2,600 | ||||||||
Weighted average maturity | 47 days | ||||||||
Weighted average interest rate | 2.20% | ||||||||
[1] | As adjusted for the retrospective adoption of ASU 2016-18, which we discuss in Note 2. |
ACQUISTION AND DIVESTITURE AC59
ACQUISTION AND DIVESTITURE ACTIVITY - PURCHASE PRICE ALLOCATION (Details) - Oncor Holdings [Member] $ in Millions | Mar. 09, 2018USD ($) |
Assets acquired: | |
Accounts receivable – other, net | $ 1 |
Due from unconsolidated affiliates | 46 |
Investment in Oncor Holdings | 9,161 |
Deferred income tax assets | 353 |
Other noncurrent assets | 109 |
Total assets acquired | 9,670 |
Liabilities assumed: | |
Other current liabilities | 23 |
Pension and other postretirement benefit plan obligations | 21 |
Deferred credits and other | 60 |
Total liabilities assumed | 104 |
Net assets acquired | 9,566 |
Total purchase price | $ 9,566 |
ACQUISTION AND DIVESTITURE AC60
ACQUISTION AND DIVESTITURE ACTIVITY - ASSETS HELD FOR SALE (Details) - Sempra Mexico [Member] - TdM [Member] $ in Millions | 1 Months Ended | 3 Months Ended | |
Feb. 29, 2016MW | Mar. 31, 2017USD ($) | Mar. 31, 2018USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Generating capacity (in mw) | MW | 625 | ||
Deferred tax expense | $ 5 | ||
Disposal Group Held-for-sale [Member] | |||
Assets Held for Sale, Assets [Abstract] | |||
Inventories | $ 10 | ||
Other current assets | 64 | ||
Property, plant and equipment, net | 55 | ||
Other noncurrent assets | 6 | ||
Total assets held for sale | 135 | ||
Assets Held for Sale, Liabilities [Abstract] | |||
Accounts payable | 2 | ||
Current liabilities | 38 | ||
Asset retirement obligations | 5 | ||
Other noncurrent liabilities | 7 | ||
Total liabilities held for sale | $ 52 |
INVESTMENTS IN UNCONSOLIDATED61
INVESTMENTS IN UNCONSOLIDATED ENTITIES - Narrative (Details) - USD ($) $ in Millions | Apr. 23, 2018 | Mar. 09, 2018 | Apr. 30, 2018 | Mar. 31, 2018 | Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | [1] | |
Schedule of Equity Method Investments [Line Items] | |||||||||
Goodwill | $ 2,406 | $ 2,406 | $ 2,397 | ||||||
Equity earnings | 15 | ||||||||
Equitization of note receivable due from unconsolidated affiliate | 0 | $ 19 | [2] | ||||||
Maximum exposure under guarantor obligations | 4,500 | 4,500 | |||||||
Aggregate carrying value of guarantor obligations | 31 | 31 | |||||||
Joint Venture [Member] | Sempra South American Utilities [Member] | Eletrans [Member] | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Equitization of note receivable due from unconsolidated affiliate | 19 | ||||||||
Joint Venture [Member] | Sempra Mexico [Member] | IMG [Member] | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Investments made during period | 25 | 46 | |||||||
Joint Venture [Member] | Sempra LNG & Midstream [Member] | Cameron LNG [Member] | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Investments made during period | 29 | 1 | |||||||
Capitalized interest | $ 11 | $ 11 | |||||||
Oncor Holdings [Member] | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Equity earnings | 19 | ||||||||
Oncor Electric Delivery Company LLC. [Member] | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Acquired percentage interest | 80.25% | ||||||||
Subsequent Event [Member] | Joint Venture [Member] | Sempra LNG & Midstream [Member] | Cameron LNG [Member] | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Investments made during period | $ 32 | ||||||||
Sempra Texas Holdings Corp [Member] | Oncor Holdings [Member] | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Consideration | $ 9,161 | ||||||||
Goodwill | $ 2,672 | ||||||||
Sempra Texas Holdings Corp [Member] | Oncor Holdings [Member] | Sempra Texas Intermediate Holding Company LLC [Member] | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Ownership percentage in consolidated entity | 100.00% | ||||||||
Sempra Texas Holdings Corp [Member] | Oncor Electric Delivery Company LLC. [Member] | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Acquired percentage interest | 80.03% | ||||||||
Sempra Texas Holdings Corp [Member] | Oncor Electric Delivery Company LLC. [Member] | Oncor Holdings [Member] | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Ownership percentage in consolidated entity | 80.25% | ||||||||
Oncor Electric Delivery Company LLC. [Member] | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Equity earnings | $ 15 | ||||||||
Oncor Electric Delivery Company LLC. [Member] | Subsequent Event [Member] | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Investments made during period | $ 117 | ||||||||
[1] | Derived from audited financial statements. | ||||||||
[2] | As adjusted for the retrospective adoption of ASU 2016-18, which we discuss in Note 2. |
INVESTMENTS IN UNCONSOLIDATED62
INVESTMENTS IN UNCONSOLIDATED ENTITIES - Summarized Financial Information (Details) $ in Millions | 1 Months Ended |
Mar. 31, 2018USD ($) | |
Schedule of Equity Method Investments [Line Items] | |
Net income / Earnings | $ 15 |
Oncor Holdings [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Gross revenues | 236 |
Operating expense | (185) |
Income from operations | 51 |
Interest expense | (22) |
Income tax expense | (7) |
Net income / Earnings | $ 19 |
DEBT AND CREDIT FACILITIES - LI
DEBT AND CREDIT FACILITIES - LINES OF CREDIT (Details) | Jan. 17, 2018USD ($) | Mar. 31, 2018USD ($)line_of_credit | Jan. 16, 2018USD ($) | Dec. 31, 2017 |
Line of Credit Facility [Line Items] | ||||
Standby letters of credit outstanding | $ 498,000,000 | |||
Sempra Energy Consolidated [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Weighted average interest rate on total short-term debt outstanding | 2.52% | 1.92% | ||
Sempra U.S. Businesses [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | $ 5,435,000,000 | |||
Number of primary lines of credit | line_of_credit | 3 | |||
Available unused credit | $ 2,169,000,000 | |||
Maximum ratio of indebtedness to total capitalization | 65.00% | |||
Foreign Operations [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | $ 1,740,000,000 | |||
Amount outstanding | (415,000,000) | |||
Available unused credit | 1,325,000,000 | |||
Sempra Energy [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Increase in borrowing capacity | $ 250,000,000 | |||
Maximum borrowing capacity | 1,250,000,000 | 1,250,000,000 | $ 1,000,000,000 | |
Available unused credit | 1,250,000,000 | |||
Capacity for issuance of letters of credit | 400,000,000 | |||
Sempra Global [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Increase in borrowing capacity | 850,000,000 | |||
Maximum borrowing capacity | $ 3,185,000,000 | 3,185,000,000 | $ 2,335,000,000 | |
Available unused credit | 359,000,000 | |||
California Utilities Combined [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | 1,000,000,000 | |||
Limit on facility borrowings | (500,000,000) | |||
Limit on borrowings available | (410,000,000) | |||
Available unused credit | 560,000,000 | |||
Capacity for issuance of letters of credit | 250,000,000 | |||
San Diego Gas and Electric Company [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | 750,000,000 | |||
Available unused credit | $ 410,000,000 | |||
Maximum ratio of indebtedness to total capitalization | 65.00% | |||
Weighted average interest rate on total short-term debt outstanding | 1.85% | 1.65% | ||
Southern California Gas Company [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | $ 750,000,000 | |||
Available unused credit | $ 560,000,000 | |||
Maximum ratio of indebtedness to total capitalization | 65.00% | |||
Weighted average interest rate on total short-term debt outstanding | 1.75% | 1.64% | ||
Sempra South American Utilities [Member] | Peru [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | $ 455,000,000 | |||
Amount outstanding | (103,000,000) | |||
Available unused credit | $ 352,000,000 | |||
Committed lines of credit, maximum ratio of debt to equity | 170.00% | |||
Bank guarantee | $ 17,000,000 | |||
Sempra South American Utilities [Member] | Chile [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | 115,000,000 | |||
Amount outstanding | 0 | |||
Available unused credit | 115,000,000 | |||
Sempra Mexico [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | 1,170,000,000 | |||
Amount outstanding | (312,000,000) | |||
Available unused credit | 858,000,000 | |||
Commercial Paper [Member] | Sempra U.S. Businesses [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Amount outstanding | (3,266,000,000) | |||
Adjustment to borrowing limit | 0 | |||
Commercial Paper [Member] | Sempra Energy [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Amount outstanding | 0 | |||
Borrowing limit adjustment | 0 | |||
Commercial Paper [Member] | Sempra Global [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Amount outstanding | (2,826,000,000) | |||
Adjustment to borrowing limit | 0 | |||
Commercial Paper [Member] | California Utilities Combined [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Amount outstanding | (440,000,000) | |||
Borrowing limit adjustment | 90,000,000 | |||
Adjustment to borrowing limit | 0 | |||
Limit on facility borrowings | 0 | |||
Commercial Paper [Member] | San Diego Gas and Electric Company [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Amount outstanding | (340,000,000) | |||
Borrowing limit adjustment | 0 | |||
Commercial Paper [Member] | Southern California Gas Company [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Amount outstanding | (100,000,000) | |||
Borrowing limit adjustment | $ (90,000,000) | |||
Revolving Credit Facility [Member] | Sempra Mexico [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Term of debt instrument | 5 years |
DEBT AND CREDIT FACILITIES - LO
DEBT AND CREDIT FACILITIES - LONG TERM DEBT (Details) - USD ($) $ in Millions | Jan. 12, 2018 | Jan. 31, 2018 |
Debt Instrument [Line Items] | ||
Repayments of debt | $ 800 | $ 800 |
Sempra Texas Holdings Corp [Member] | ||
Debt Instrument [Line Items] | ||
Proceeds from issuance of debt | 4,900 | |
Debt discount and debt issuance costs | 68 | |
Sempra Texas Holdings Corp [Member] | Floating Rate Notes due 2019 [Member] | ||
Debt Instrument [Line Items] | ||
Debt amount offered and sold | 500 | |
Sempra Texas Holdings Corp [Member] | Floating Rate Notes due 2021 [Member] | ||
Debt Instrument [Line Items] | ||
Debt amount offered and sold | 700 | |
Sempra Texas Holdings Corp [Member] | 2.400% Senior Notes due 2020 [Member] | ||
Debt Instrument [Line Items] | ||
Debt amount offered and sold | $ 500 | |
Stated rate of debt offered and sold | 2.40% | |
Sempra Texas Holdings Corp [Member] | 2.900% Senior Notes due 2023 [Member] | ||
Debt Instrument [Line Items] | ||
Debt amount offered and sold | $ 500 | |
Stated rate of debt offered and sold | 2.90% | |
Sempra Texas Holdings Corp [Member] | 3.400% Senior Notes due 2028 [Member] | ||
Debt Instrument [Line Items] | ||
Debt amount offered and sold | $ 1,000 | |
Stated rate of debt offered and sold | 3.40% | |
Sempra Texas Holdings Corp [Member] | 3.800% Senior Notes due 2038 [Member] | ||
Debt Instrument [Line Items] | ||
Debt amount offered and sold | $ 1,000 | |
Stated rate of debt offered and sold | 3.80% | |
Sempra Texas Holdings Corp [Member] | 4.000% Senior Notes due 2048 [Member] | ||
Debt Instrument [Line Items] | ||
Debt amount offered and sold | $ 800 | |
Stated rate of debt offered and sold | 4.00% | |
Sempra Texas Holdings Corp [Member] | LIBOR [Member] | Floating Rate Notes due 2019 [Member] | ||
Debt Instrument [Line Items] | ||
Spread on variable rate | 25.00% | |
Sempra Texas Holdings Corp [Member] | LIBOR [Member] | Floating Rate Notes due 2021 [Member] | ||
Debt Instrument [Line Items] | ||
Spread on variable rate | 50.00% |
DERIVATIVE FINANCIAL INSTRUME65
DERIVATIVE FINANCIAL INSTRUMENTS - DERIVATIVE COMMODITY VOLUMES (Details) MWh in Millions, MMBTU in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018MWhMMBTU | Dec. 31, 2017MWhMMBTU | |
SDG&E [Member] | Natural gas [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Net derivative energy volumes | 33 | 39 |
SDG&E [Member] | Electricity [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Net derivative energy volumes | MWh | 3 | 3 |
SDG&E [Member] | Congestion revenue rights [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Net derivative energy volumes | MWh | 57 | 59 |
Sempra LNG & Midstream [Member] | Natural gas [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Net derivative energy volumes | 5 | 3 |
Sempra Mexico [Member] | Natural gas [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Net derivative energy volumes | 17 | 4 |
DERIVATIVE FINANCIAL INSTRUME66
DERIVATIVE FINANCIAL INSTRUMENTS - DERIVATIVE NOTIONALS (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Cross currency swaps [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount of derivative | $ 306 | $ 408 |
Cross currency swaps [Member] | Minimum [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Maturity date | Dec. 31, 2018 | Dec. 31, 2018 |
Cross currency swaps [Member] | Maximum [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Maturity date | Dec. 31, 2023 | Dec. 31, 2023 |
Other foreign currency derivatives [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount of derivative | $ 975 | $ 345 |
Other foreign currency derivatives [Member] | Minimum [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Maturity date | Dec. 31, 2018 | Dec. 31, 2018 |
Other foreign currency derivatives [Member] | Maximum [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Maturity date | Dec. 31, 2019 | Dec. 31, 2019 |
Cash Flow Hedging [Member] | Interest rate instruments [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount of derivative | $ 845 | $ 861 |
Cash Flow Hedging [Member] | Interest rate instruments [Member] | Minimum [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Maturity date | Dec. 31, 2018 | Dec. 31, 2018 |
Cash Flow Hedging [Member] | Interest rate instruments [Member] | Maximum [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Maturity date | Dec. 31, 2032 | Dec. 31, 2032 |
San Diego Gas and Electric Company [Member] | Cash Flow Hedging [Member] | Interest rate instruments [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount of derivative | $ 292 | $ 295 |
San Diego Gas and Electric Company [Member] | Cash Flow Hedging [Member] | Interest rate instruments [Member] | Minimum [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Maturity date | Dec. 31, 2018 | Dec. 31, 2018 |
San Diego Gas and Electric Company [Member] | Cash Flow Hedging [Member] | Interest rate instruments [Member] | Maximum [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Maturity date | Dec. 31, 2019 | Dec. 31, 2019 |
DERIVATIVE FINANCIAL INSTRUME67
DERIVATIVE FINANCIAL INSTRUMENTS - DERIVATIVE INSTRUMENTS ON THE CONDENSED BALANCE SHEET (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Current assets: Fixed-price contracts and other derivatives [Member] | ||
Derivatives not designated as hedging instruments: | ||
Net amounts presented on the balance sheet | $ 76 | $ 47 |
Additional cash collateral for commodity contracts not subject to rate recovery | 21 | 2 |
Additional cash collateral for commodity contracts subject to rate recovery | 14 | 17 |
Total | 111 | 66 |
Other assets: Sundry [Member] | ||
Derivatives not designated as hedging instruments: | ||
Net amounts presented on the balance sheet | 102 | 105 |
Additional cash collateral for commodity contracts not subject to rate recovery | 0 | 0 |
Additional cash collateral for commodity contracts subject to rate recovery | 0 | 0 |
Total | 102 | 105 |
Current liabilities: Fixed-price contracts and other derivatives [Member] | ||
Derivatives not designated as hedging instruments: | ||
Net amounts presented on the balance sheet | (63) | (103) |
Additional cash collateral for commodity contracts not subject to rate recovery | 0 | 0 |
Additional cash collateral for commodity contracts subject to rate recovery | 0 | 0 |
Total | (63) | (103) |
Deferred credits and other liabilities: Fixed-price contracts and other derivatives [Member] | ||
Derivatives not designated as hedging instruments: | ||
Net amounts presented on the balance sheet | (241) | (281) |
Additional cash collateral for commodity contracts not subject to rate recovery | 0 | 0 |
Additional cash collateral for commodity contracts subject to rate recovery | 0 | 0 |
Total | (241) | (281) |
Designated as Hedging Instrument [Member] | Current assets: Fixed-price contracts and other derivatives [Member] | ||
Derivatives designated as hedging instruments: | ||
Interest rate and foreign exchange instruments | 1 | 5 |
Designated as Hedging Instrument [Member] | Other assets: Sundry [Member] | ||
Derivatives designated as hedging instruments: | ||
Interest rate and foreign exchange instruments | 2 | 2 |
Designated as Hedging Instrument [Member] | Current liabilities: Fixed-price contracts and other derivatives [Member] | ||
Derivatives designated as hedging instruments: | ||
Interest rate and foreign exchange instruments | (12) | (51) |
Designated as Hedging Instrument [Member] | Deferred credits and other liabilities: Fixed-price contracts and other derivatives [Member] | ||
Derivatives designated as hedging instruments: | ||
Interest rate and foreign exchange instruments | (122) | (165) |
Not Designated as Hedging Instrument [Member] | Current assets: Fixed-price contracts and other derivatives [Member] | ||
Derivatives not designated as hedging instruments: | ||
Foreign exchange instruments | 43 | 0 |
Commodity contracts not subject to rate recovery | 64 | 81 |
Associated offsetting commodity contracts | (54) | (67) |
Commodity contracts subject to rate recovery | 22 | 28 |
Associated offsetting commodity contracts | 0 | |
Associated offsetting cash collateral | 0 | 0 |
Not Designated as Hedging Instrument [Member] | Other assets: Sundry [Member] | ||
Derivatives not designated as hedging instruments: | ||
Foreign exchange instruments | 0 | 0 |
Commodity contracts not subject to rate recovery | 10 | 8 |
Associated offsetting commodity contracts | (8) | (5) |
Commodity contracts subject to rate recovery | 98 | 101 |
Associated offsetting commodity contracts | (1) | |
Associated offsetting cash collateral | 0 | 0 |
Not Designated as Hedging Instrument [Member] | Current liabilities: Fixed-price contracts and other derivatives [Member] | ||
Derivatives not designated as hedging instruments: | ||
Foreign exchange instruments | 0 | (1) |
Commodity contracts not subject to rate recovery | (61) | (72) |
Associated offsetting commodity contracts | 54 | 67 |
Commodity contracts subject to rate recovery | (60) | (65) |
Associated offsetting commodity contracts | 0 | |
Associated offsetting cash collateral | 16 | 19 |
Not Designated as Hedging Instrument [Member] | Deferred credits and other liabilities: Fixed-price contracts and other derivatives [Member] | ||
Derivatives not designated as hedging instruments: | ||
Foreign exchange instruments | 0 | 0 |
Commodity contracts not subject to rate recovery | (11) | (6) |
Associated offsetting commodity contracts | 8 | 5 |
Commodity contracts subject to rate recovery | (123) | (120) |
Associated offsetting commodity contracts | 1 | |
Associated offsetting cash collateral | 7 | 4 |
San Diego Gas and Electric Company [Member] | Current assets: Fixed-price contracts and other derivatives [Member] | ||
Derivatives not designated as hedging instruments: | ||
Net amounts presented on the balance sheet | 20 | 26 |
Additional cash collateral for commodity contracts subject to rate recovery | 12 | 16 |
Total | 32 | 42 |
San Diego Gas and Electric Company [Member] | Other assets: Sundry [Member] | ||
Derivatives not designated as hedging instruments: | ||
Net amounts presented on the balance sheet | 98 | 100 |
Additional cash collateral for commodity contracts subject to rate recovery | 0 | 0 |
Total | 98 | 100 |
San Diego Gas and Electric Company [Member] | Current liabilities: Fixed-price contracts and other derivatives [Member] | ||
Derivatives not designated as hedging instruments: | ||
Net amounts presented on the balance sheet | (51) | (54) |
Additional cash collateral for commodity contracts subject to rate recovery | 0 | 0 |
Total | (51) | (54) |
San Diego Gas and Electric Company [Member] | Deferred credits and other liabilities: Fixed-price contracts and other derivatives [Member] | ||
Derivatives not designated as hedging instruments: | ||
Net amounts presented on the balance sheet | (117) | (118) |
Additional cash collateral for commodity contracts subject to rate recovery | 0 | 0 |
Total | (117) | (118) |
San Diego Gas and Electric Company [Member] | Designated as Hedging Instrument [Member] | Current assets: Fixed-price contracts and other derivatives [Member] | ||
Derivatives designated as hedging instruments: | ||
Interest rate instruments | 0 | 0 |
San Diego Gas and Electric Company [Member] | Designated as Hedging Instrument [Member] | Other assets: Sundry [Member] | ||
Derivatives designated as hedging instruments: | ||
Interest rate instruments | 0 | 0 |
San Diego Gas and Electric Company [Member] | Designated as Hedging Instrument [Member] | Current liabilities: Fixed-price contracts and other derivatives [Member] | ||
Derivatives designated as hedging instruments: | ||
Interest rate instruments | (8) | (10) |
San Diego Gas and Electric Company [Member] | Designated as Hedging Instrument [Member] | Deferred credits and other liabilities: Fixed-price contracts and other derivatives [Member] | ||
Derivatives designated as hedging instruments: | ||
Interest rate instruments | (1) | (3) |
San Diego Gas and Electric Company [Member] | Not Designated as Hedging Instrument [Member] | Current assets: Fixed-price contracts and other derivatives [Member] | ||
Derivatives not designated as hedging instruments: | ||
Commodity contracts subject to rate recovery | 20 | 26 |
Associated offsetting commodity contracts | 0 | |
Associated offsetting cash collateral | 0 | 0 |
San Diego Gas and Electric Company [Member] | Not Designated as Hedging Instrument [Member] | Other assets: Sundry [Member] | ||
Derivatives not designated as hedging instruments: | ||
Commodity contracts subject to rate recovery | 98 | 101 |
Associated offsetting commodity contracts | (1) | |
Associated offsetting cash collateral | 0 | 0 |
San Diego Gas and Electric Company [Member] | Not Designated as Hedging Instrument [Member] | Current liabilities: Fixed-price contracts and other derivatives [Member] | ||
Derivatives not designated as hedging instruments: | ||
Commodity contracts subject to rate recovery | (59) | (63) |
Associated offsetting commodity contracts | 0 | |
Associated offsetting cash collateral | 16 | 19 |
San Diego Gas and Electric Company [Member] | Not Designated as Hedging Instrument [Member] | Deferred credits and other liabilities: Fixed-price contracts and other derivatives [Member] | ||
Derivatives not designated as hedging instruments: | ||
Commodity contracts subject to rate recovery | (123) | (120) |
Associated offsetting commodity contracts | 1 | |
Associated offsetting cash collateral | 7 | 4 |
Southern California Gas Company [Member] | Current assets: Fixed-price contracts and other derivatives [Member] | ||
Derivatives not designated as hedging instruments: | ||
Net amounts presented on the balance sheet | 2 | 2 |
Additional cash collateral for commodity contracts subject to rate recovery | 2 | 1 |
Total | 4 | 3 |
Southern California Gas Company [Member] | Other assets: Sundry [Member] | ||
Derivatives not designated as hedging instruments: | ||
Net amounts presented on the balance sheet | 0 | 0 |
Additional cash collateral for commodity contracts subject to rate recovery | 0 | 0 |
Total | 0 | 0 |
Southern California Gas Company [Member] | Current liabilities: Fixed-price contracts and other derivatives [Member] | ||
Derivatives not designated as hedging instruments: | ||
Net amounts presented on the balance sheet | (1) | (2) |
Additional cash collateral for commodity contracts subject to rate recovery | 0 | 0 |
Total | (1) | (2) |
Southern California Gas Company [Member] | Deferred credits and other liabilities: Fixed-price contracts and other derivatives [Member] | ||
Derivatives not designated as hedging instruments: | ||
Net amounts presented on the balance sheet | 0 | 0 |
Additional cash collateral for commodity contracts subject to rate recovery | 0 | 0 |
Total | 0 | 0 |
Southern California Gas Company [Member] | Not Designated as Hedging Instrument [Member] | Current assets: Fixed-price contracts and other derivatives [Member] | ||
Derivatives not designated as hedging instruments: | ||
Commodity contracts subject to rate recovery | 2 | 2 |
Southern California Gas Company [Member] | Not Designated as Hedging Instrument [Member] | Other assets: Sundry [Member] | ||
Derivatives not designated as hedging instruments: | ||
Commodity contracts subject to rate recovery | 0 | 0 |
Southern California Gas Company [Member] | Not Designated as Hedging Instrument [Member] | Current liabilities: Fixed-price contracts and other derivatives [Member] | ||
Derivatives not designated as hedging instruments: | ||
Commodity contracts subject to rate recovery | (1) | (2) |
Southern California Gas Company [Member] | Not Designated as Hedging Instrument [Member] | Deferred credits and other liabilities: Fixed-price contracts and other derivatives [Member] | ||
Derivatives not designated as hedging instruments: | ||
Commodity contracts subject to rate recovery | $ 0 | $ 0 |
DERIVATIVE FINANCIAL INSTRUME68
DERIVATIVE FINANCIAL INSTRUMENTS - DERIVATIVE IMPACT ON INCOME (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | ||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Pretax gain (loss) on derivatives recognized in earnings | $ 35 | $ 106 | [1] |
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Pretax gain (loss) recognized in OCI | 117 | (4) | |
Pretax (loss) gain reclassified from AOCI into earnings | 16 | (12) | |
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Interest Expense [Member] | Interest rate and foreign exchange instruments [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Pretax gain (loss) recognized in OCI | 54 | 16 | |
Pretax (loss) gain reclassified from AOCI into earnings | 2 | 3 | |
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Other Income, Net [Member] | Interest rate and foreign exchange instruments [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Pretax (loss) gain reclassified from AOCI into earnings | 18 | 0 | |
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Equity Losses [Member] | Interest rate and foreign exchange instruments [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Pretax gain (loss) recognized in OCI | 70 | (14) | |
Pretax (loss) gain reclassified from AOCI into earnings | (4) | (4) | |
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Revenues: Energy- Related Businesses [Member] | Foreign exchange instruments [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Pretax gain (loss) recognized in OCI | (7) | (9) | |
Pretax (loss) gain reclassified from AOCI into earnings | 0 | (2) | |
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Revenues: Energy- Related Businesses [Member] | Commodity contracts not subject to rate recovery [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Pretax gain (loss) recognized in OCI | 0 | 3 | |
Pretax (loss) gain reclassified from AOCI into earnings | 0 | (9) | |
Not Designated as Hedging Instrument [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Pretax gain (loss) on derivatives recognized in earnings | 38 | 49 | |
Not Designated as Hedging Instrument [Member] | Other Income, Net [Member] | Foreign exchange instruments [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Pretax gain (loss) on derivatives recognized in earnings | 44 | 65 | |
Not Designated as Hedging Instrument [Member] | Revenues: Energy- Related Businesses [Member] | Commodity contracts not subject to rate recovery [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Pretax gain (loss) on derivatives recognized in earnings | (9) | 14 | |
Not Designated as Hedging Instrument [Member] | Operation and Maintenance [Member] | Commodity contracts not subject to rate recovery [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Pretax gain (loss) on derivatives recognized in earnings | 0 | (1) | |
Not Designated as Hedging Instrument [Member] | Cost of Electric Fuel and Purchased Power [Member] | Commodity contracts subject to rate recovery [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Pretax gain (loss) on derivatives recognized in earnings | 2 | (29) | |
Not Designated as Hedging Instrument [Member] | Cost of Natural Gas [Member] | Commodity contracts subject to rate recovery [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Pretax gain (loss) on derivatives recognized in earnings | 1 | 0 | |
San Diego Gas and Electric Company [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Interest Expense [Member] | Interest rate instruments [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Pretax gain (loss) recognized in OCI | 1 | 0 | |
Pretax (loss) gain reclassified from AOCI into earnings | (3) | (3) | |
San Diego Gas and Electric Company [Member] | Not Designated as Hedging Instrument [Member] | Cost of Electric Fuel and Purchased Power [Member] | Commodity contracts subject to rate recovery [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Pretax gain (loss) on derivatives recognized in earnings | 2 | (29) | |
Southern California Gas Company [Member] | Not Designated as Hedging Instrument [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Pretax gain (loss) on derivatives recognized in earnings | 1 | (1) | |
Southern California Gas Company [Member] | Not Designated as Hedging Instrument [Member] | Operation and Maintenance [Member] | Commodity contracts not subject to rate recovery [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Pretax gain (loss) on derivatives recognized in earnings | 0 | (1) | |
Southern California Gas Company [Member] | Not Designated as Hedging Instrument [Member] | Cost of Natural Gas [Member] | Commodity contracts subject to rate recovery [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Pretax gain (loss) on derivatives recognized in earnings | $ 1 | $ 0 | |
[1] | As adjusted for the retrospective adoption of ASU 2016-18, which we discuss in Note 2. |
DERIVATIVE FINANCIAL INSTRUME69
DERIVATIVE FINANCIAL INSTRUMENTS - CASH FLOW HEDGES (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Gains (losses) on cash flow hedges to be reclassified from AOCI within 12 months | $ 13 |
Maximum remaining term of cash flow hedges | 14 years |
Equity Method Investee [Member] | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Maximum remaining term of cash flow hedges | 18 years |
San Diego Gas and Electric Company [Member] | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Maximum remaining term of cash flow hedges | 1 year |
Southern California Gas Company [Member] | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Gains (losses) on cash flow hedges to be reclassified from AOCI within 12 months | $ 1 |
Noncontrolling Interest [Member] | Otay Mesa VIE [Member] | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Gains (losses) on cash flow hedges to be reclassified from AOCI within 12 months | $ 7 |
DERIVATIVE FINANCIAL INSTRUME70
DERIVATIVE FINANCIAL INSTRUMENTS - DERIVATIVE INSTRUMENTS WITH CONTINGENT FEATURES (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Net liability position for derivatives with credit limits | $ 1 | $ 6 |
Additional collateral that wil be required if credit rating falls below investment grade | 2 | |
San Diego Gas and Electric Company [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Net liability position for derivatives with credit limits | 0 | $ 1 |
Additional collateral that wil be required if credit rating falls below investment grade | $ 0 |
FAIR VALUE MEASUREMENTS - RECUR
FAIR VALUE MEASUREMENTS - RECURRING FAIR VALUE MEASURES (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Investments at NAV | $ 9 | |
Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Nuclear decommissioning trusts - equity securities | 491 | $ 496 |
Nuclear decommissioning trusts - Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies | 44 | 54 |
Nuclear decommissioning trusts - Municipal bonds | 247 | 250 |
Nuclear decommissioning trusts - Other securities | 216 | 217 |
Nuclear decommissioning trusts - Total debt securities | 507 | 521 |
Total nuclear decommissioning trusts | 998 | 1,017 |
Total Assets Measured at Fair Value | 1,211 | 1,188 |
Total LIabilities Measured at Fair Value | 304 | 384 |
Recurring [Member] | Interest rate and foreign exchange instruments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 46 | 7 |
Derivative liabilities | 134 | 217 |
Recurring [Member] | Commodity contracts not subject to rate recovery [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 12 | 17 |
Effect of netting and allocation of collateral | 21 | 2 |
Derivative liabilities | 10 | 6 |
Recurring [Member] | Commodity contracts subject to rate recovery [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 120 | 128 |
Effect of netting and allocation of collateral | 14 | 17 |
Derivative liabilities | 183 | 184 |
Effect of netting and allocation of collateral | (23) | (23) |
Recurring [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Nuclear decommissioning trusts - equity securities | 486 | 491 |
Nuclear decommissioning trusts - Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies | 35 | 45 |
Nuclear decommissioning trusts - Municipal bonds | 0 | 0 |
Nuclear decommissioning trusts - Other securities | 0 | 0 |
Nuclear decommissioning trusts - Total debt securities | 35 | 45 |
Total nuclear decommissioning trusts | 521 | 536 |
Total Assets Measured at Fair Value | 555 | 555 |
Total LIabilities Measured at Fair Value | 7 | 0 |
Recurring [Member] | Level 1 [Member] | Interest rate and foreign exchange instruments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Recurring [Member] | Level 1 [Member] | Commodity contracts not subject to rate recovery [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 4 | 5 |
Effect of netting and allocation of collateral | 21 | 2 |
Derivative liabilities | 7 | 0 |
Recurring [Member] | Level 1 [Member] | Commodity contracts subject to rate recovery [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Effect of netting and allocation of collateral | 9 | 12 |
Derivative liabilities | 23 | 23 |
Effect of netting and allocation of collateral | (23) | (23) |
Recurring [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Nuclear decommissioning trusts - equity securities | 5 | 5 |
Nuclear decommissioning trusts - Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies | 9 | 9 |
Nuclear decommissioning trusts - Municipal bonds | 247 | 250 |
Nuclear decommissioning trusts - Other securities | 216 | 217 |
Nuclear decommissioning trusts - Total debt securities | 472 | 476 |
Total nuclear decommissioning trusts | 477 | 481 |
Total Assets Measured at Fair Value | 533 | 502 |
Total LIabilities Measured at Fair Value | 140 | 230 |
Recurring [Member] | Level 2 [Member] | Interest rate and foreign exchange instruments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 46 | 7 |
Derivative liabilities | 134 | 217 |
Recurring [Member] | Level 2 [Member] | Commodity contracts not subject to rate recovery [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 8 | 12 |
Effect of netting and allocation of collateral | 0 | 0 |
Derivative liabilities | 3 | 6 |
Recurring [Member] | Level 2 [Member] | Commodity contracts subject to rate recovery [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 2 | 2 |
Effect of netting and allocation of collateral | 0 | 0 |
Derivative liabilities | 3 | 7 |
Effect of netting and allocation of collateral | 0 | 0 |
Recurring [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Nuclear decommissioning trusts - equity securities | 0 | 0 |
Nuclear decommissioning trusts - Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies | 0 | 0 |
Nuclear decommissioning trusts - Municipal bonds | 0 | 0 |
Nuclear decommissioning trusts - Other securities | 0 | 0 |
Nuclear decommissioning trusts - Total debt securities | 0 | 0 |
Total nuclear decommissioning trusts | 0 | 0 |
Total Assets Measured at Fair Value | 123 | 131 |
Total LIabilities Measured at Fair Value | 157 | 154 |
Recurring [Member] | Level 3 [Member] | Interest rate and foreign exchange instruments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Recurring [Member] | Level 3 [Member] | Commodity contracts not subject to rate recovery [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Effect of netting and allocation of collateral | 0 | 0 |
Derivative liabilities | 0 | 0 |
Recurring [Member] | Level 3 [Member] | Commodity contracts subject to rate recovery [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 118 | 126 |
Effect of netting and allocation of collateral | 5 | 5 |
Derivative liabilities | 157 | 154 |
Effect of netting and allocation of collateral | 0 | 0 |
San Diego Gas and Electric Company [Member] | Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Nuclear decommissioning trusts - equity securities | 491 | 496 |
Nuclear decommissioning trusts - Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies | 44 | 54 |
Nuclear decommissioning trusts - Municipal bonds | 247 | 250 |
Nuclear decommissioning trusts - Other securities | 216 | 217 |
Nuclear decommissioning trusts - Total debt securities | 507 | 521 |
Total nuclear decommissioning trusts | 998 | 1,017 |
Total Assets Measured at Fair Value | 1,128 | 1,159 |
Total LIabilities Measured at Fair Value | 168 | 172 |
San Diego Gas and Electric Company [Member] | Recurring [Member] | Commodity contracts subject to rate recovery [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 118 | 126 |
Effect of netting and allocation of collateral | 12 | 16 |
Derivative liabilities | 182 | 182 |
Effect of netting and allocation of collateral | (23) | (23) |
San Diego Gas and Electric Company [Member] | Recurring [Member] | Interest rate instruments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 9 | 13 |
San Diego Gas and Electric Company [Member] | Recurring [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Nuclear decommissioning trusts - equity securities | 486 | 491 |
Nuclear decommissioning trusts - Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies | 35 | 45 |
Nuclear decommissioning trusts - Municipal bonds | 0 | 0 |
Nuclear decommissioning trusts - Other securities | 0 | 0 |
Nuclear decommissioning trusts - Total debt securities | 35 | 45 |
Total nuclear decommissioning trusts | 521 | 536 |
Total Assets Measured at Fair Value | 528 | 547 |
Total LIabilities Measured at Fair Value | 0 | 0 |
San Diego Gas and Electric Company [Member] | Recurring [Member] | Level 1 [Member] | Commodity contracts subject to rate recovery [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Effect of netting and allocation of collateral | 7 | 11 |
Derivative liabilities | 23 | 23 |
Effect of netting and allocation of collateral | (23) | (23) |
San Diego Gas and Electric Company [Member] | Recurring [Member] | Level 1 [Member] | Interest rate instruments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 0 | 0 |
San Diego Gas and Electric Company [Member] | Recurring [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Nuclear decommissioning trusts - equity securities | 5 | 5 |
Nuclear decommissioning trusts - Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies | 9 | 9 |
Nuclear decommissioning trusts - Municipal bonds | 247 | 250 |
Nuclear decommissioning trusts - Other securities | 216 | 217 |
Nuclear decommissioning trusts - Total debt securities | 472 | 476 |
Total nuclear decommissioning trusts | 477 | 481 |
Total Assets Measured at Fair Value | 477 | 481 |
Total LIabilities Measured at Fair Value | 11 | 18 |
San Diego Gas and Electric Company [Member] | Recurring [Member] | Level 2 [Member] | Commodity contracts subject to rate recovery [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Effect of netting and allocation of collateral | 0 | 0 |
Derivative liabilities | 2 | 5 |
Effect of netting and allocation of collateral | 0 | 0 |
San Diego Gas and Electric Company [Member] | Recurring [Member] | Level 2 [Member] | Interest rate instruments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 9 | 13 |
San Diego Gas and Electric Company [Member] | Recurring [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Nuclear decommissioning trusts - equity securities | 0 | 0 |
Nuclear decommissioning trusts - Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies | 0 | 0 |
Nuclear decommissioning trusts - Municipal bonds | 0 | 0 |
Nuclear decommissioning trusts - Other securities | 0 | 0 |
Nuclear decommissioning trusts - Total debt securities | 0 | 0 |
Total nuclear decommissioning trusts | 0 | 0 |
Total Assets Measured at Fair Value | 123 | 131 |
Total LIabilities Measured at Fair Value | 157 | 154 |
San Diego Gas and Electric Company [Member] | Recurring [Member] | Level 3 [Member] | Commodity contracts subject to rate recovery [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 118 | 126 |
Effect of netting and allocation of collateral | 5 | 5 |
Derivative liabilities | 157 | 154 |
Effect of netting and allocation of collateral | 0 | 0 |
San Diego Gas and Electric Company [Member] | Recurring [Member] | Level 3 [Member] | Interest rate instruments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 0 | 0 |
Southern California Gas Company [Member] | Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Assets Measured at Fair Value | 4 | 3 |
Total LIabilities Measured at Fair Value | 1 | 2 |
Southern California Gas Company [Member] | Recurring [Member] | Commodity contracts subject to rate recovery [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 2 | 2 |
Effect of netting and allocation of collateral | 2 | 1 |
Derivative liabilities | 1 | 2 |
Southern California Gas Company [Member] | Recurring [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Assets Measured at Fair Value | 2 | 1 |
Total LIabilities Measured at Fair Value | 0 | 0 |
Southern California Gas Company [Member] | Recurring [Member] | Level 1 [Member] | Commodity contracts subject to rate recovery [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Effect of netting and allocation of collateral | 2 | 1 |
Derivative liabilities | 0 | 0 |
Southern California Gas Company [Member] | Recurring [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Assets Measured at Fair Value | 2 | 2 |
Total LIabilities Measured at Fair Value | 1 | 2 |
Southern California Gas Company [Member] | Recurring [Member] | Level 2 [Member] | Commodity contracts subject to rate recovery [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 2 | 2 |
Effect of netting and allocation of collateral | 0 | 0 |
Derivative liabilities | 1 | 2 |
Southern California Gas Company [Member] | Recurring [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Assets Measured at Fair Value | 0 | 0 |
Total LIabilities Measured at Fair Value | 0 | 0 |
Southern California Gas Company [Member] | Recurring [Member] | Level 3 [Member] | Commodity contracts subject to rate recovery [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Effect of netting and allocation of collateral | 0 | 0 |
Derivative liabilities | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS - RECON
FAIR VALUE MEASUREMENTS - RECON OF LEVEL 3 ASSETS (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Balance at January 1 | $ (28,000,000) | $ (74,000,000) | $ (28,000,000) | $ (74,000,000) |
Realized and unrealized gains (losses) | 4,000,000 | (13,000,000) | ||
Allocated transmission instruments | 3,000,000 | 0 | ||
Settlements | (19,000,000) | (9,000,000) | ||
Balance at March 31 | (40,000,000) | (96,000,000) | (28,000,000) | |
Change in unrealized gains relating to instruments still held at the end of the period | (8,000,000) | (16,000,000) | ||
Minimum [Member] | ||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Market electricity forward price inputs ( in dollars per MWH) | 20 | 14.50 | ||
Maximum [Member] | ||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Market electricity forward price inputs ( in dollars per MWH) | $ 51.30 | $ 43.25 | ||
San Diego Gas and Electric Company [Member] | Minimum [Member] | ||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Congestion revenue rights (in dollars per MWH) | (11.88) | |||
San Diego Gas and Electric Company [Member] | Maximum [Member] | ||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Congestion revenue rights (in dollars per MWH) | $ 6.93 | |||
San Diego Gas and Electric Company [Member] | Forecast [Member] | Minimum [Member] | ||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Congestion revenue rights (in dollars per MWH) | (7.25) | |||
San Diego Gas and Electric Company [Member] | Forecast [Member] | Maximum [Member] | ||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Congestion revenue rights (in dollars per MWH) | $ 11.99 |
FAIR VALUE MEASUREMENTS - FINAN
FAIR VALUE MEASUREMENTS - FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Foreign currency translation | $ 4 | $ 35 |
Carrying amount [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term amounts due from unconsolidated affiliates | 627 | 604 |
Long-term amounts due to unconsolidated affiliate | 35 | 35 |
Total long-term debt | 22,063 | 17,138 |
Accumulated interest outstanding | 35 | 29 |
Unamortized discount (net of premium) and debt issuance costs | 206 | 143 |
Build-to-suit and capital lease obligations | 877 | 877 |
Carrying amount [Member] | Otay Mesa VIE [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, gross | 292 | 295 |
Fair value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term amounts due from unconsolidated affiliates | 647 | 624 |
Long-term amounts due to unconsolidated affiliate | 32 | 32 |
Total long-term debt | 22,500 | 18,409 |
Fair value [Member] | Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term amounts due from unconsolidated affiliates | 0 | 0 |
Long-term amounts due to unconsolidated affiliate | 0 | 0 |
Total long-term debt | 790 | 817 |
Fair value [Member] | Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term amounts due from unconsolidated affiliates | 606 | 528 |
Long-term amounts due to unconsolidated affiliate | 32 | 32 |
Total long-term debt | 21,254 | 17,134 |
Fair value [Member] | Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term amounts due from unconsolidated affiliates | 41 | 96 |
Long-term amounts due to unconsolidated affiliate | 0 | 0 |
Total long-term debt | 456 | 458 |
San Diego Gas and Electric Company [Member] | Carrying amount [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total long-term debt | 4,848 | 4,868 |
Unamortized discount (net of premium) and debt issuance costs | 45 | 45 |
Capital lease obligations | 730 | 732 |
San Diego Gas and Electric Company [Member] | Fair value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total long-term debt | 5,184 | 5,368 |
San Diego Gas and Electric Company [Member] | Fair value [Member] | Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total long-term debt | 0 | 0 |
San Diego Gas and Electric Company [Member] | Fair value [Member] | Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total long-term debt | 4,892 | 5,073 |
San Diego Gas and Electric Company [Member] | Fair value [Member] | Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total long-term debt | 292 | 295 |
Southern California Gas Company [Member] | Carrying amount [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total long-term debt | 3,009 | 3,009 |
Unamortized discount (net of premium) and debt issuance costs | 24 | 24 |
Capital lease obligations | 4 | 1 |
Southern California Gas Company [Member] | Fair value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total long-term debt | 3,102 | 3,192 |
Southern California Gas Company [Member] | Fair value [Member] | Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total long-term debt | 0 | 0 |
Southern California Gas Company [Member] | Fair value [Member] | Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total long-term debt | 3,102 | 3,192 |
Southern California Gas Company [Member] | Fair value [Member] | Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total long-term debt | $ 0 | $ 0 |
SAN ONOFRE NUCLEAR GENERATING74
SAN ONOFRE NUCLEAR GENERATING STATION (Details) - USD ($) $ in Millions | Mar. 13, 2017 | Mar. 31, 2018 | Jan. 31, 2018 | Dec. 31, 2017 | [1] |
Jointly Owned Utility Plant Interests [Line Items] | |||||
Settlement amount awarded | $ 118 | ||||
Percent of arbitration expenses reduction of award | 95.00% | ||||
Settlement amount net of arbitration expense | $ 60 | ||||
Regulatory asset threshold to cease rate recovery | $ 775 | ||||
Regulatory asset, current | 241 | $ 325 | |||
Regulatory asset, noncurrent | $ 1,597 | 1,517 | |||
Anticipated term of dismantlement work | 10 years | ||||
Nuclear decommissioning trusts | $ 1,017 | 1,033 | |||
San Diego Gas and Electric Company [Member] | |||||
Jointly Owned Utility Plant Interests [Line Items] | |||||
Settlement amount awarded | 24 | ||||
Settlement amount net of arbitration expense | 12 | ||||
Arbitration expense | 12 | ||||
Legal costs | 11 | ||||
Litigation settlement amount allocated to ratepayers and shareholders | $ 1 | ||||
Regulatory asset, current | 233 | 316 | |||
Regulatory asset, noncurrent | $ 483 | 451 | |||
Percent of dismantlement work expense | 20.00% | ||||
Nuclear decommissioning trusts | $ 1,017 | $ 1,033 | |||
Authorized recovery amount, nuclear decommissioning trust funding | 362 | $ 60 | |||
San Diego Gas and Electric Company [Member] | Asset Retirement Obligation Costs [Member] | |||||
Jointly Owned Utility Plant Interests [Line Items] | |||||
Regulatory asset | 153 | ||||
Regulatory asset, current | 42 | ||||
Regulatory asset, noncurrent | $ 111 | ||||
Jointly Owned Nuclear Power Plant [Member] | San Diego Gas and Electric Company [Member] | |||||
Jointly Owned Utility Plant Interests [Line Items] | |||||
Jointly owned utility plant, proportionate ownership share | 20.00% | ||||
[1] | Derived from audited financial statements. |
SAN ONOFRE NUCLEAR GENERATING75
SAN ONOFRE NUCLEAR GENERATING STATION - NUCLEAR DECOMMISSIONING TRUSTS (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2018 | Mar. 31, 2017 | Jan. 31, 2018 | Dec. 31, 2017 | |
Schedule of Available-for-sale Securities [Line Items] | |||||
Anticipated term of dismantlement work | 10 years | ||||
Cost | $ 697 | $ 697 | $ 701 | ||
Gross unrealized gains | 327 | 327 | 336 | ||
Gross unrealized losses | (7) | (7) | (4) | ||
Estimated fair value | 1,017 | 1,017 | 1,033 | ||
Proceeds from sales | 210 | $ 357 | |||
Gross realized gains | 4 | 45 | |||
Gross realized losses | (3) | $ (5) | |||
Total debt securities [Member] | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Cost | 506 | 506 | 514 | ||
Gross unrealized gains | 6 | 6 | 10 | ||
Gross unrealized losses | (5) | (5) | (3) | ||
Estimated fair value | 507 | 507 | 521 | ||
U.S. government corporations and agencies [Member] | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Cost | 44 | 44 | 54 | ||
Gross unrealized gains | 0 | 0 | 0 | ||
Gross unrealized losses | 0 | 0 | 0 | ||
Estimated fair value | 44 | 44 | 54 | ||
Municipal bonds [Member] | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Cost | 245 | 245 | 245 | ||
Gross unrealized gains | 4 | 4 | 7 | ||
Gross unrealized losses | (2) | (2) | (2) | ||
Estimated fair value | 247 | 247 | 250 | ||
Other securities [Member] | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Cost | 217 | 217 | 215 | ||
Gross unrealized gains | 2 | 2 | 3 | ||
Gross unrealized losses | (3) | (3) | (1) | ||
Estimated fair value | 216 | 216 | 217 | ||
Equity securities [Member] | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Cost | 172 | 172 | 171 | ||
Gross unrealized gains | 321 | 321 | 326 | ||
Gross unrealized losses | (2) | (2) | (1) | ||
Estimated fair value | 491 | 491 | 496 | ||
Cash and cash equivalents [Member] | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Cost | 19 | 19 | 16 | ||
Gross unrealized gains | 0 | 0 | 0 | ||
Gross unrealized losses | 0 | 0 | 0 | ||
Estimated fair value | $ 19 | $ 19 | $ 16 | ||
San Diego Gas and Electric Company [Member] | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Percent of dismantlement work expense | 20.00% | 20.00% | |||
Authorized recovery amount, nuclear decommissioning trust funding | $ 362 | $ 362 | $ 60 | ||
SONGS 1 Decommissioning [Member] | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Environmental exit costs, anticipated cost | 207 | ||||
SONGS 1 Decommissioning [Member] | San Diego Gas and Electric Company [Member] | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Environmental exit costs, anticipated cost | 41 | ||||
Environmental Exit Costs, Anticipated Internal Costs | 3 | ||||
SONGS 2 and 3 Decommissioning [Member] | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Environmental exit costs, anticipated cost | 3,200 | ||||
SONGS 2 and 3 Decommissioning [Member] | San Diego Gas and Electric Company [Member] | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Environmental exit costs, anticipated cost | 638 | ||||
Environmental Exit Costs, Anticipated Internal Costs | $ 43 |
SAN ONOFRE NUCLEAR GENERATING76
SAN ONOFRE NUCLEAR GENERATING STATION - NUCLEAR FUEL DISPOSAL (Details) - San Diego Gas and Electric Company [Member] - USD ($) $ in Millions | Apr. 18, 2016 | Apr. 30, 2018 | Mar. 31, 2018 | Oct. 31, 2017 | May 31, 2017 | Feb. 28, 2017 | Sep. 30, 2016 | May 31, 2016 |
Total Ownership [Member] | ||||||||
Jointly Owned Utility Plant Interests [Line Items] | ||||||||
Spent nuclear fuel damages awarded | $ 162 | $ 44 | $ 43 | |||||
Filed claims amount | $ 58 | $ 56 | ||||||
SDG&E Ownership [Member] | ||||||||
Jointly Owned Utility Plant Interests [Line Items] | ||||||||
Spent nuclear fuel damages awarded | $ 9 | $ 9 | $ 32 | |||||
Decrease In SONGS regulatory asset | 23 | |||||||
Decrease In nuclear decommissioning balancing account | 8 | |||||||
Decrease In operation and maintenance cost balancing account | $ 1 | |||||||
Filed claims amount | $ 12 | |||||||
Subsequent Event [Member] | Total Ownership [Member] | ||||||||
Jointly Owned Utility Plant Interests [Line Items] | ||||||||
Filed claims amount | $ 1 |
SAN ONOFRE NUCLEAR GENERATING77
SAN ONOFRE NUCLEAR GENERATING STATION - NUCLEAR INSURANCE (Details) - San Diego Gas and Electric Company [Member] - USD ($) $ in Millions | Apr. 05, 2018 | Mar. 31, 2018 | Jan. 09, 2018 | Jan. 05, 2018 | Jan. 04, 2018 |
Schedule Of Nuclear Insurance [Line Items] | |||||
Maximum nuclear liability insurance coverage | $ 450 | $ 100 | $ 450 | ||
Maximum secondary financial protection | 110 | ||||
Annual maximum secondary financial protection contribution by company | 560 | ||||
Federal nuclear property damage insurance, minimum required | 50 | $ 1,060 | |||
Nuclear property damage insurance | 1,500 | ||||
Maximum premium assessment under nuclear property damage insurance | 10.4 | ||||
Maximum nuclear property insurance terrorism coverage | $ 3,240 | ||||
Subsequent Event [Member] | |||||
Schedule Of Nuclear Insurance [Line Items] | |||||
Spent nuclear fuel storage insurance | $ 500 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - LEGAL PROCEEDINGS (Details) | May 03, 2018plaintifflawsuit | Jul. 19, 2017Bcf | Mar. 13, 2017 | Mar. 31, 2016t | Jan. 31, 2017lawsuit | Sep. 30, 2016USD ($) | Mar. 31, 2018USD ($)Bcflawsuit | Sep. 30, 2017USD ($) | Dec. 31, 2017USD ($) | [1] | Oct. 21, 2016t |
Loss Contingencies [Line Items] | |||||||||||
Liability for legal proceedings | $ 144,000,000 | ||||||||||
Percent of arbitration expenses reduction of award | 95.00% | ||||||||||
Reserve for Aliso Canyon costs | 122,000,000 | $ 84,000,000 | |||||||||
Insurance receivable for Aliso Canyon costs | $ 447,000,000 | 418,000,000 | |||||||||
Consolidated Class Action Complaints [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Number of lawsuits filed | lawsuit | 2 | ||||||||||
Property Class Action [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Number of lawsuits filed | lawsuit | 1 | ||||||||||
Complaints Filed by Public Entities [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Number of lawsuits filed | lawsuit | 3 | ||||||||||
San Diego Gas and Electric Company [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Liability for legal proceedings | $ 3,000,000 | ||||||||||
San Diego Gas and Electric Company [Member] | Wildfire [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Write-off of wildfire regulatory asset | $ 351,000,000 | ||||||||||
After-tax charge for nonrecovery of CPUC regulatory assets | $ 208,000,000 | ||||||||||
Southern California Gas Company [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Liability for legal proceedings | 90,000,000 | ||||||||||
Insurance Settlements Receivable | 928,000,000 | ||||||||||
Reserve for Aliso Canyon costs | 122,000,000 | 84,000,000 | |||||||||
Insurance receivable for Aliso Canyon costs | 447,000,000 | $ 418,000,000 | |||||||||
Southern California Gas Company [Member] | Aliso Canyon Natural Gas Storage Facility Gas Leak [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Liability for legal proceedings | 85,000,000 | ||||||||||
Loss contingency accrual | $ 954,000,000 | ||||||||||
Percent of Loss Accrual Allocated to Temporary Relocation Program | 60.00% | ||||||||||
Reserve for Aliso Canyon costs | $ 122,000,000 | ||||||||||
Receivable related to natural gas leak | 447,000,000 | ||||||||||
Insurance proceeds | $ 481,000,000 | ||||||||||
Period of required climate reductions | 20 years | ||||||||||
Period of required regulatory climate reductions | 100 years | ||||||||||
Target emissions level (in metric tons) | t | 9,000,000 | ||||||||||
Loss Contingency, Total Actual Emissions, Floor (in metric tons) | t | 90,350 | ||||||||||
Loss Contingency, Total Actual Emissions, Ceiling (in metric tons) | t | 108,950 | ||||||||||
Mitigation requirements (in metric tons) | t | 109,000 | ||||||||||
Amount of natural gas released | Bcf | 4.62 | ||||||||||
Required working gas target | Bcf | 23.6 | ||||||||||
Required working gas minimum | Bcf | 14.8 | ||||||||||
Storage facility capacity | Bcf | 86 | ||||||||||
Proportion of total gas storage capacity (percentage) | 28.00% | 63.00% | |||||||||
Net book value of Aliso Canyon facility | $ 656,000,000 | ||||||||||
Construction work in progress of new compressor station | 259,000,000 | ||||||||||
Southern California Gas Company [Member] | Aliso Canyon Natural Gas Storage Facility Gas Leak [Member] | Subsequent Event [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Number of lawsuits | lawsuit | 381 | ||||||||||
Number of plaintiffs | plaintiff | 48,000 | ||||||||||
Southern California Gas Company [Member] | Aliso Canyon Natural Gas Storage Facility Gas Leak [Member] | Minimum [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Liability insurance coverage | 1,200,000,000 | ||||||||||
Environmental mitigation period | 5 years | ||||||||||
Required working gas target | Bcf | 0 | ||||||||||
Southern California Gas Company [Member] | Aliso Canyon Natural Gas Storage Facility Gas Leak [Member] | Maximum [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Liability insurance coverage | $ 1,400,000,000 | ||||||||||
Environmental mitigation period | 10 years | ||||||||||
Required working gas target | Bcf | 24.6 | ||||||||||
Southern California Gas Company [Member] | Damages from Product Defects [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Maximum occupational safety and health fines | $ 75,000 | ||||||||||
Penalty assessments | 233,500 | ||||||||||
Maximum other assessments in settlement of criminal complaint | $ 6,000,000 | ||||||||||
[1] | Derived from audited financial statements. |
COMMITMENTS AND CONTINGENCIES79
COMMITMENTS AND CONTINGENCIES - OTHER LITIGATION (Details) £ in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2015GBP (£) | May 03, 2018lawsuit | Mar. 31, 2018USD ($)proof_of_claimlawsuit | Oct. 01, 2014GBP (£) | |
Loss Contingencies [Line Items] | ||||
Investment in RBS Sempra Commodities LLP | $ | $ 67 | |||
HMRC VAT Claim [Member] | ||||
Loss Contingencies [Line Items] | ||||
VAT tax claim paid upon appeal | £ 86 | |||
Filed claims amount | £ 160 | |||
Southern California Gas Company [Member] | Subsequent Event [Member] | Aliso Canyon Natural Gas Storage Facility Gas Leak [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of lawsuits | lawsuit | 381 | |||
Plaintiffs [Member] | HMRC VAT Claim [Member] | ||||
Loss Contingencies [Line Items] | ||||
Filed claims amount | £ 80 | |||
Energy Future Holdings Corp. [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of lawsuits | lawsuit | 140 | |||
Number of proof of claims | proof_of_claim | 28,000 |
COMMITMENTS AND CONTINGENCIES80
COMMITMENTS AND CONTINGENCIES - CONTRACTUAL COMMITMENTS (Details) - USD ($) $ in Millions | Mar. 13, 2017 | Mar. 31, 2018 |
Unrecorded Unconditional Purchase Obligation [Line Items] | ||
Settlement amount received | $ 118 | |
Sempra LNG & Midstream [Member] | Liquefied Natural Gas Contracts [Member] | ||
Unrecorded Unconditional Purchase Obligation [Line Items] | ||
Increase (decrease) in commitment amount, 2018 | $ (112) | |
Increase (decrease) in commitment amount, 2019 | (55) | |
Increase (decrease) in commitment amount, 2020 | (42) | |
Increase (decrease) in commitment amount, 2021 | (40) | |
Increase (decrease) in commitment amount, 2022 | (30) | |
Increase (decrease) in commitment amount, thereafter | (110) | |
San Diego Gas and Electric Company [Member] | ||
Unrecorded Unconditional Purchase Obligation [Line Items] | ||
Settlement amount received | $ 24 | |
Operating Lease [Member] | Sempra LNG & Midstream [Member] | Natural Gas Contracts [Member] | ||
Unrecorded Unconditional Purchase Obligation [Line Items] | ||
Increase (decrease) in commitment amount | (54) | |
Increase (decrease) in commitment amount, 2018 | (62) | |
Increase (decrease) in commitment amount, 2019 | 3 | |
Increase (decrease) in commitment amount, 2020 | 2 | |
Increase (decrease) in commitment amount, 2021 | 2 | |
Increase (decrease) in commitment amount, 2022 | 1 | |
Renewables Projects | Sempra Mexico [Member] | ||
Unrecorded Unconditional Purchase Obligation [Line Items] | ||
Increase (decrease) in commitment amount | 81 | |
Increase (decrease) in commitment amount, 2018 | 53 | |
Increase (decrease) in commitment amount, 2019 | 28 | |
Liquid Fuels Terminals | Sempra Mexico [Member] | ||
Unrecorded Unconditional Purchase Obligation [Line Items] | ||
Increase (decrease) in commitment amount | 94 | |
Increase (decrease) in commitment amount, 2018 | 91 | |
Increase (decrease) in commitment amount, 2019 | 2 | |
Increase (decrease) in commitment amount, thereafter | $ 1 |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) | 3 Months Ended | ||||
Mar. 31, 2018USD ($)segment | Mar. 31, 2017USD ($) | Dec. 31, 2017USD ($) | |||
Segment Reporting Information [Line Items] | |||||
Number of reportable segments | segment | 7 | ||||
Segment Reporting Information, Profit (Loss) [Abstract] | |||||
REVENUES | $ 2,962,000,000 | $ 3,031,000,000 | |||
INTEREST EXPENSE | 216,000,000 | 169,000,000 | [1] | ||
INTEREST INCOME | 33,000,000 | 6,000,000 | [1] | ||
DEPRECIATION AND AMORTIZATION | 386,000,000 | 360,000,000 | |||
INCOME TAX EXPENSE (BENEFIT) | 289,000,000 | 295,000,000 | [1] | ||
Equity earnings, before income tax | 5,000,000 | 3,000,000 | |||
Equity losses, net of income tax | (25,000,000) | (8,000,000) | |||
Equity losses | (20,000,000) | (5,000,000) | [1] | ||
Earnings (losses) | 347,000,000 | 441,000,000 | |||
Segment Reporting Information, Additional Information [Abstract] | |||||
EXPENDITURES FOR PROPERTY, PLANT & EQUIPMENT | 1,035,000,000 | 992,000,000 | |||
ASSETS | 60,485,000,000 | $ 50,454,000,000 | [2] | ||
EQUITY METHOD AND OTHER INVESTMENTS | 11,766,000,000 | 2,527,000,000 | |||
Operating Segments [Member] | SDG&E [Member] | |||||
Segment Reporting Information, Profit (Loss) [Abstract] | |||||
REVENUES | 1,055,000,000 | 1,057,000,000 | |||
INTEREST EXPENSE | 52,000,000 | 49,000,000 | |||
INTEREST INCOME | 1,000,000 | 0 | |||
DEPRECIATION AND AMORTIZATION | 166,000,000 | 163,000,000 | |||
INCOME TAX EXPENSE (BENEFIT) | 56,000,000 | 90,000,000 | |||
Earnings (losses) | 170,000,000 | 155,000,000 | |||
Segment Reporting Information, Additional Information [Abstract] | |||||
EXPENDITURES FOR PROPERTY, PLANT & EQUIPMENT | 475,000,000 | 418,000,000 | |||
ASSETS | 18,017,000,000 | 17,844,000,000 | |||
Operating Segments [Member] | SoCalGas [Member] | |||||
Segment Reporting Information, Profit (Loss) [Abstract] | |||||
REVENUES | 1,126,000,000 | 1,241,000,000 | |||
INTEREST EXPENSE | 27,000,000 | 25,000,000 | |||
DEPRECIATION AND AMORTIZATION | 135,000,000 | 126,000,000 | |||
INCOME TAX EXPENSE (BENEFIT) | 59,000,000 | 98,000,000 | |||
Earnings (losses) | 225,000,000 | 203,000,000 | |||
Segment Reporting Information, Additional Information [Abstract] | |||||
EXPENDITURES FOR PROPERTY, PLANT & EQUIPMENT | 403,000,000 | 357,000,000 | |||
ASSETS | 14,462,000,000 | 14,159,000,000 | |||
Operating Segments [Member] | Sempra Texas Utility [Member] | |||||
Segment Reporting Information, Profit (Loss) [Abstract] | |||||
Equity losses, net of income tax | 15,000,000 | 0 | |||
Earnings (losses) | 15,000,000 | 0 | |||
Segment Reporting Information, Additional Information [Abstract] | |||||
ASSETS | 9,176,000,000 | 0 | |||
EQUITY METHOD AND OTHER INVESTMENTS | 9,176,000,000 | 0 | |||
Operating Segments [Member] | Sempra South American Utilities [Member] | |||||
Segment Reporting Information, Profit (Loss) [Abstract] | |||||
REVENUES | 426,000,000 | 412,000,000 | |||
INTEREST EXPENSE | 10,000,000 | 9,000,000 | |||
INTEREST INCOME | 6,000,000 | 5,000,000 | |||
DEPRECIATION AND AMORTIZATION | 14,000,000 | 13,000,000 | |||
INCOME TAX EXPENSE (BENEFIT) | 20,000,000 | 19,000,000 | |||
Equity losses, net of income tax | 1,000,000 | 1,000,000 | |||
Earnings (losses) | 46,000,000 | 47,000,000 | |||
Segment Reporting Information, Additional Information [Abstract] | |||||
EXPENDITURES FOR PROPERTY, PLANT & EQUIPMENT | 56,000,000 | 43,000,000 | |||
ASSETS | 4,154,000,000 | 4,060,000,000 | |||
EQUITY METHOD AND OTHER INVESTMENTS | 17,000,000 | 16,000,000 | |||
Operating Segments [Member] | Sempra Mexico [Member] | |||||
Segment Reporting Information, Profit (Loss) [Abstract] | |||||
REVENUES | 308,000,000 | 264,000,000 | |||
INTEREST EXPENSE | 30,000,000 | 32,000,000 | |||
INTEREST INCOME | 15,000,000 | 2,000,000 | |||
DEPRECIATION AND AMORTIZATION | 43,000,000 | 36,000,000 | |||
INCOME TAX EXPENSE (BENEFIT) | 155,000,000 | 142,000,000 | |||
Equity losses, net of income tax | (41,000,000) | (9,000,000) | |||
Earnings (losses) | 20,000,000 | 48,000,000 | |||
Segment Reporting Information, Additional Information [Abstract] | |||||
EXPENDITURES FOR PROPERTY, PLANT & EQUIPMENT | 59,000,000 | 94,000,000 | |||
ASSETS | 8,798,000,000 | 8,554,000,000 | |||
EQUITY METHOD AND OTHER INVESTMENTS | 613,000,000 | 624,000,000 | |||
Operating Segments [Member] | Sempra Renewables [Member] | |||||
Segment Reporting Information, Profit (Loss) [Abstract] | |||||
REVENUES | 25,000,000 | 22,000,000 | |||
INTEREST EXPENSE | 5,000,000 | 4,000,000 | |||
INTEREST INCOME | 2,000,000 | 1,000,000 | |||
DEPRECIATION AND AMORTIZATION | 13,000,000 | 9,000,000 | |||
INCOME TAX EXPENSE (BENEFIT) | (7,000,000) | (11,000,000) | |||
Equity earnings, before income tax | 5,000,000 | 2,000,000 | |||
Earnings (losses) | 21,000,000 | 11,000,000 | |||
Segment Reporting Information, Additional Information [Abstract] | |||||
EXPENDITURES FOR PROPERTY, PLANT & EQUIPMENT | 31,000,000 | 69,000,000 | |||
ASSETS | 2,764,000,000 | 2,898,000,000 | |||
EQUITY METHOD AND OTHER INVESTMENTS | 798,000,000 | 813,000,000 | |||
Operating Segments [Member] | Sempra LNG & Midstream [Member] | |||||
Segment Reporting Information, Profit (Loss) [Abstract] | |||||
REVENUES | 104,000,000 | 132,000,000 | |||
INTEREST EXPENSE | 8,000,000 | 11,000,000 | |||
INTEREST INCOME | 13,000,000 | 17,000,000 | |||
DEPRECIATION AND AMORTIZATION | 11,000,000 | 10,000,000 | |||
INCOME TAX EXPENSE (BENEFIT) | 12,000,000 | 1,000,000 | |||
Equity earnings, before income tax | 0 | 1,000,000 | |||
Earnings (losses) | (16,000,000) | 1,000,000 | |||
Segment Reporting Information, Additional Information [Abstract] | |||||
EXPENDITURES FOR PROPERTY, PLANT & EQUIPMENT | 6,000,000 | 3,000,000 | |||
ASSETS | 4,904,000,000 | 4,872,000,000 | |||
EQUITY METHOD AND OTHER INVESTMENTS | 1,085,000,000 | 997,000,000 | |||
Adjustments and eliminations [Member] | |||||
Segment Reporting Information, Profit (Loss) [Abstract] | |||||
REVENUES | (1,000,000) | 0 | |||
All other [Member] | |||||
Segment Reporting Information, Profit (Loss) [Abstract] | |||||
INTEREST EXPENSE | 112,000,000 | 68,000,000 | |||
INTEREST INCOME | 14,000,000 | 0 | |||
DEPRECIATION AND AMORTIZATION | 4,000,000 | 3,000,000 | |||
INCOME TAX EXPENSE (BENEFIT) | (6,000,000) | (44,000,000) | |||
Earnings (losses) | (134,000,000) | (24,000,000) | |||
Segment Reporting Information, Additional Information [Abstract] | |||||
EXPENDITURES FOR PROPERTY, PLANT & EQUIPMENT | 5,000,000 | 8,000,000 | |||
ASSETS | 964,000,000 | 915,000,000 | |||
EQUITY METHOD AND OTHER INVESTMENTS | 77,000,000 | 77,000,000 | |||
Intersegment eliminations [Member] | |||||
Segment Reporting Information, Profit (Loss) [Abstract] | |||||
REVENUES | (81,000,000) | (97,000,000) | |||
INTEREST EXPENSE | (28,000,000) | (29,000,000) | |||
INTEREST INCOME | (18,000,000) | (19,000,000) | |||
Segment Reporting Information, Additional Information [Abstract] | |||||
ASSETS | (2,754,000,000) | $ (2,848,000,000) | |||
Intersegment eliminations [Member] | SDG&E [Member] | |||||
Segment Reporting Information, Profit (Loss) [Abstract] | |||||
REVENUES | 1,000,000 | 1,000,000 | |||
Intersegment eliminations [Member] | SoCalGas [Member] | |||||
Segment Reporting Information, Profit (Loss) [Abstract] | |||||
REVENUES | 17,000,000 | 18,000,000 | |||
Intersegment eliminations [Member] | Sempra Mexico [Member] | |||||
Segment Reporting Information, Profit (Loss) [Abstract] | |||||
REVENUES | 29,000,000 | 25,000,000 | |||
Intersegment eliminations [Member] | Sempra LNG & Midstream [Member] | |||||
Segment Reporting Information, Profit (Loss) [Abstract] | |||||
REVENUES | $ 34,000,000 | $ 53,000,000 | |||
Oncor Electric Delivery Company LLC. [Member] | Oncor Holdings [Member] | Sempra Texas Utility [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Ownership interest | 80.25% | ||||
[1] | As adjusted for the retrospective adoption of ASU 2017-07, which we discuss in Note 2, and a reclassification to conform to current year presentation, which we discuss in Note 1. | ||||
[2] | Derived from audited financial statements. |