DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION - shares | 9 Months Ended | |
Sep. 30, 2015 | Oct. 28, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Sempra Energy | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2015 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Shares Outstanding | 248,210,449 | |
Entity Central Index Key | 1,032,208 | |
Trading Symbol | SRE |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) | Sep. 30, 2015 | Dec. 31, 2014 | |||
Current assets: | |||||
Cash and cash equivalents | $ 697,000,000 | $ 570,000,000 | [1] | ||
Restricted cash | 13,000,000 | 11,000,000 | [1] | ||
Trade accounts receivable | 1,024,000,000 | 1,242,000,000 | [1] | ||
Other accounts and notes receivable | 176,000,000 | 152,000,000 | [1] | ||
Due from unconsolidated affiliates | 3,000,000 | 38,000,000 | [1] | ||
Income taxes receivable | 22,000,000 | 45,000,000 | [1] | ||
Deferred income taxes, net current assets | 198,000,000 | 305,000,000 | [1] | ||
Inventories | 416,000,000 | 396,000,000 | [1] | ||
Regulatory balancing accounts, undercollected | 585,000,000 | 746,000,000 | [1] | ||
Fixed-price contracts and other derivatives, current assets | 66,000,000 | 93,000,000 | [1] | ||
Assets held for sale, power plant | 0 | 293,000,000 | [1] | ||
Other current assets | 406,000,000 | 293,000,000 | [1] | ||
Total current assets | 3,606,000,000 | 4,184,000,000 | [1] | ||
Investments And Other Assets [Abstract] | |||||
Restricted cash, noncurrent | 40,000,000 | 29,000,000 | [1] | ||
Due from unconsolidated affiliate | 175,000,000 | 188,000,000 | [1] | ||
Other regulatory assets | 3,112,000,000 | 3,031,000,000 | [1] | ||
Nuclear decommissioning trusts | 1,060,000,000 | 1,131,000,000 | [1] | ||
Other investments | 2,845,000,000 | 2,848,000,000 | [1] | ||
Goodwill | 847,000,000 | 931,000,000 | [1] | ||
Other intangible assets | 407,000,000 | 415,000,000 | [1] | ||
Sundry | 701,000,000 | 561,000,000 | [1] | ||
Dedicated assets in support of certain benefit plans | 459,000,000 | 512,000,000 | [1] | ||
Total investments and other assets | 9,646,000,000 | 9,646,000,000 | [1] | ||
Property, plant and equipment: | |||||
Property, plant and equipment | 37,280,000,000 | 35,407,000,000 | [1] | ||
Less accumulated depreciation and amortization | (9,966,000,000) | (9,505,000,000) | [1] | ||
Property, plant and equipment, net | 27,314,000,000 | 25,902,000,000 | [1] | ||
Total assets | 40,566,000,000 | 39,732,000,000 | [1] | ||
Current liabilities: | |||||
Short-term debt | 1,097,000,000 | 1,733,000,000 | [1] | ||
Accounts payable - trade | 1,091,000,000 | 1,198,000,000 | [1] | ||
Accounts payable - other | 143,000,000 | 155,000,000 | [1] | ||
Due to unconsolidated affiliates | 0 | 2,000,000 | [1] | ||
Dividends and interest payable | 343,000,000 | 282,000,000 | [1] | ||
Accrued compensation and benefits | 356,000,000 | 373,000,000 | [1] | ||
Current portion of long-term debt | 1,168,000,000 | 469,000,000 | [1] | ||
Fixed-price contracts and other derivatives, current liabilities | 73,000,000 | 55,000,000 | [1] | ||
Customer deposits | 152,000,000 | 153,000,000 | [1] | ||
Other current liabilities | 695,000,000 | 649,000,000 | [1] | ||
Total current liabilities | 5,118,000,000 | 5,069,000,000 | [1] | ||
Long-term debt | 12,527,000,000 | 12,167,000,000 | [1] | ||
Deferred Credits And Other Liabilities [Abstract] | |||||
Customer advances for construction | 145,000,000 | 144,000,000 | [1] | ||
Pension and other postretirement benefit obligations, net of plan assets | 1,114,000,000 | 1,064,000,000 | [1] | ||
Deferred income taxes, net noncurrent liabilities | 3,057,000,000 | 3,003,000,000 | [1] | ||
Deferred investment tax credits | 34,000,000 | 37,000,000 | [1] | ||
Regulatory liabilities arising from removal obligations | 2,715,000,000 | 2,741,000,000 | [1] | ||
Asset retirement obligations | 2,068,000,000 | 2,048,000,000 | [1] | ||
Fixed-price contracts and other derivatives, noncurrent liabilities | 300,000,000 | 255,000,000 | [1] | ||
Deferred credits and other | 1,092,000,000 | 1,104,000,000 | [1] | ||
Total deferred credits and other liabilities | 10,525,000,000 | 10,396,000,000 | [1] | ||
Equity: | |||||
Preferred stock | 0 | 0 | [1] | ||
Common stock | 2,587,000,000 | 2,484,000,000 | [1] | ||
Retained earnings | 9,799,000,000 | 9,339,000,000 | [1] | ||
Accumulated other comprehensive income (loss) | [2] | (761,000,000) | (497,000,000) | [1] | |
Total shareholders' equity | 11,625,000,000 | 11,326,000,000 | [1] | ||
Preferred stock of subsidiaries | 20,000,000 | 20,000,000 | [1] | ||
Other noncontrolling interests | 751,000,000 | 754,000,000 | [1] | ||
Total equity | 12,396,000,000 | 12,100,000,000 | [1] | ||
Total liabilities and equity | 40,566,000,000 | 39,732,000,000 | [1] | ||
San Diego Gas and Electric Company [Member] | |||||
Current assets: | |||||
Cash and cash equivalents | 20,000,000 | 8,000,000 | [1] | ||
Restricted cash | 9,000,000 | 8,000,000 | [1] | ||
Trade accounts receivable | 411,000,000 | 285,000,000 | [1] | ||
Other accounts and notes receivable | 27,000,000 | 35,000,000 | [1] | ||
Due from unconsolidated affiliates | 1,000,000 | 1,000,000 | [1] | ||
Income taxes receivable | 13,000,000 | 0 | [1] | ||
Inventories | 71,000,000 | 73,000,000 | [1] | ||
Regulatory balancing accounts, undercollected | 495,000,000 | 711,000,000 | [1] | ||
Other regulatory assets | 146,000,000 | 54,000,000 | [1] | ||
Fixed-price contracts and other derivatives, current assets | 20,000,000 | 44,000,000 | [1] | ||
Other current assets | 135,000,000 | 125,000,000 | [1] | ||
Total current assets | 1,348,000,000 | 1,344,000,000 | [1] | ||
Investments And Other Assets [Abstract] | |||||
Restricted cash, noncurrent | 12,000,000 | 11,000,000 | [1] | ||
Deferred taxes recoverable in rates | 870,000,000 | 824,000,000 | [1] | ||
Other regulatory assets | 1,000,000,000 | 1,086,000,000 | [1] | ||
Nuclear decommissioning trusts | 1,060,000,000 | 1,131,000,000 | [1] | ||
Sundry | 376,000,000 | 282,000,000 | [1] | ||
Total investments and other assets | 3,318,000,000 | 3,334,000,000 | [1] | ||
Property, plant and equipment: | |||||
Property, plant and equipment | 16,131,000,000 | 15,478,000,000 | [1] | ||
Less accumulated depreciation and amortization | (4,105,000,000) | (3,860,000,000) | [1] | ||
Property, plant and equipment, net | 12,026,000,000 | 11,618,000,000 | [1] | ||
Total assets | 16,692,000,000 | 16,296,000,000 | [1] | ||
Current liabilities: | |||||
Short-term debt | 44,000,000 | 246,000,000 | [1] | ||
Accounts payable - trade | 408,000,000 | 441,000,000 | [1] | ||
Due to unconsolidated affiliates | 22,000,000 | 21,000,000 | [1] | ||
Income taxes payable | 0 | 30,000,000 | [1] | ||
Deferred income taxes, net current liabilities | 243,000,000 | 53,000,000 | [1] | ||
Accrued compensation and benefits | 110,000,000 | 124,000,000 | [1] | ||
Current portion of long-term debt | 301,000,000 | 365,000,000 | [1] | ||
Fixed-price contracts and other derivatives, current liabilities | 62,000,000 | 40,000,000 | [1] | ||
Customer deposits | 71,000,000 | 71,000,000 | [1] | ||
Other current liabilities | 264,000,000 | 237,000,000 | [1] | ||
Interest payable | 49,000,000 | 40,000,000 | [1] | ||
Asset Retirement Obligation Current | 108,000,000 | 120,000,000 | [1] | ||
Total current liabilities | 1,682,000,000 | 1,788,000,000 | [1] | ||
Long-term debt | 4,477,000,000 | 4,319,000,000 | [1] | ||
Deferred Credits And Other Liabilities [Abstract] | |||||
Customer advances for construction | 43,000,000 | 41,000,000 | [1] | ||
Pension and other postretirement benefit obligations, net of plan assets | 227,000,000 | 216,000,000 | [1] | ||
Deferred income taxes, net noncurrent liabilities | 2,155,000,000 | 2,121,000,000 | [1] | ||
Deferred investment tax credits | 19,000,000 | 22,000,000 | [1] | ||
Regulatory liabilities arising from removal obligations | 1,538,000,000 | 1,557,000,000 | [1] | ||
Asset retirement obligations | 740,000,000 | 754,000,000 | [1] | ||
Fixed-price contracts and other derivatives, noncurrent liabilities | 170,000,000 | 153,000,000 | [1] | ||
Deferred credits and other | 352,000,000 | 333,000,000 | [1] | ||
Total deferred credits and other liabilities | 5,244,000,000 | 5,197,000,000 | [1] | ||
Equity: | |||||
Common stock | 1,338,000,000 | 1,338,000,000 | [1] | ||
Retained earnings | 3,899,000,000 | 3,606,000,000 | [1] | ||
Accumulated other comprehensive income (loss) | (12,000,000) | [2] | (12,000,000) | [1] | |
Total shareholders' equity | 5,225,000,000 | 4,932,000,000 | [1] | ||
Other noncontrolling interests | 64,000,000 | 60,000,000 | [1] | ||
Total equity | 5,289,000,000 | 4,992,000,000 | [1] | ||
Total liabilities and equity | 16,692,000,000 | 16,296,000,000 | [1] | ||
Southern California Gas Company [Member] | |||||
Current assets: | |||||
Cash and cash equivalents | 123,000,000 | 85,000,000 | [1] | ||
Trade accounts receivable | 301,000,000 | 586,000,000 | [1] | ||
Other accounts and notes receivable | 69,000,000 | 51,000,000 | [1] | ||
Due from unconsolidated affiliates | 220,000,000 | 4,000,000 | [1] | ||
Income taxes receivable | 25,000,000 | 5,000,000 | [1] | ||
Inventories | 192,000,000 | 181,000,000 | [1] | ||
Regulatory balancing accounts, undercollected | 90,000,000 | 35,000,000 | [1] | ||
Other regulatory assets | 7,000,000 | 5,000,000 | [1] | ||
Other current assets | 39,000,000 | 36,000,000 | [1] | ||
Total current assets | 1,066,000,000 | 988,000,000 | [1] | ||
Investments And Other Assets [Abstract] | |||||
Regulatory assets arising from pension and other postretirement benefit obligations | 665,000,000 | 617,000,000 | [1] | ||
Other regulatory assets | 543,000,000 | 472,000,000 | [1] | ||
Sundry | 176,000,000 | 140,000,000 | [1] | ||
Total investments and other assets | 1,384,000,000 | 1,229,000,000 | [1] | ||
Property, plant and equipment: | |||||
Property, plant and equipment | 13,739,000,000 | 12,886,000,000 | [1] | ||
Less accumulated depreciation and amortization | (4,834,000,000) | (4,642,000,000) | [1] | ||
Property, plant and equipment, net | 8,905,000,000 | 8,244,000,000 | [1] | ||
Total assets | 11,355,000,000 | 10,461,000,000 | [1] | ||
Current liabilities: | |||||
Short-term debt | 0 | 50,000,000 | [1] | ||
Accounts payable - trade | 355,000,000 | 532,000,000 | [1] | ||
Accounts payable - other | 77,000,000 | 88,000,000 | [1] | ||
Due to unconsolidated affiliates | 51,000,000 | 13,000,000 | [1] | ||
Deferred income taxes, net current liabilities | 171,000,000 | 53,000,000 | [1] | ||
Accrued compensation and benefits | 144,000,000 | 129,000,000 | [1] | ||
Current portion of long-term debt | 9,000,000 | 0 | |||
Customer deposits | 74,000,000 | 75,000,000 | [1] | ||
Other current liabilities | 164,000,000 | 149,000,000 | [1] | ||
Total current liabilities | 1,045,000,000 | 1,089,000,000 | [1] | ||
Long-term debt | 2,498,000,000 | 1,906,000,000 | [1] | ||
Deferred Credits And Other Liabilities [Abstract] | |||||
Customer advances for construction | 102,000,000 | 102,000,000 | [1] | ||
Pension and other postretirement benefit obligations, net of plan assets | 682,000,000 | 633,000,000 | [1] | ||
Deferred income taxes, net noncurrent liabilities | 1,270,000,000 | 1,212,000,000 | [1] | ||
Deferred investment tax credits | 14,000,000 | 16,000,000 | [1] | ||
Regulatory liabilities arising from removal obligations | 1,158,000,000 | 1,167,000,000 | [1] | ||
Asset retirement obligations | 1,286,000,000 | 1,255,000,000 | [1] | ||
Deferred credits and other | 293,000,000 | 300,000,000 | [1] | ||
Total deferred credits and other liabilities | 4,805,000,000 | 4,685,000,000 | [1] | ||
Equity: | |||||
Preferred stock | 22,000,000 | 22,000,000 | [1] | ||
Common stock | 866,000,000 | 866,000,000 | [1] | ||
Retained earnings | 2,137,000,000 | 1,911,000,000 | [1] | ||
Accumulated other comprehensive income (loss) | (18,000,000) | [2] | (18,000,000) | [1] | |
Total shareholders' equity | 3,007,000,000 | 2,781,000,000 | [1] | ||
Total equity | 3,007,000,000 | 2,781,000,000 | [1] | ||
Total liabilities and equity | $ 11,355,000,000 | $ 10,461,000,000 | [1] | ||
[1] | Derived from audited financial statements. | ||||
[2] | All amounts are net of income tax, if subject to tax, and exclude noncontrolling interests. |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) shares in Millions, $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Property, plant and equipment related to VIE | $ 390 | $ 410 |
Long-term debt related to VIE | $ 307 | $ 315 |
Shareholders' equity: | ||
Preferred stock, shares authorized | 50 | 50 |
Preferred stock, shares issued | 0 | 0 |
Common stock, shares authorized | 750 | 750 |
Common stock, shares outstanding | 248 | 246 |
San Diego Gas and Electric Company [Member] | ||
Property, plant and equipment related to VIE | $ 390 | $ 410 |
Long-term debt related to VIE | $ 307 | $ 315 |
Shareholders' equity: | ||
Common stock, shares authorized | 255 | 255 |
Common stock, shares outstanding | 117 | 117 |
Southern California Gas Company [Member] | ||
Shareholders' equity: | ||
Common stock, shares authorized | 100 | 100 |
Common stock, shares outstanding | 91 | 91 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | ||
REVENUES | |||||
Utilities | $ 2,213 | $ 2,463 | $ 6,768 | $ 7,318 | |
Energy-related businesses | 268 | 352 | 762 | 970 | |
Total revenues | 2,481 | 2,815 | 7,530 | 8,288 | |
Utilities [Abstract] | |||||
Cost of natural gas | (201) | (293) | (786) | (1,308) | |
Cost of electric fuel and purchased power | (666) | (680) | (1,645) | (1,761) | |
Energy-related businesses [Abstract] | |||||
Cost of natural gas, electric fuel and purchased power | (91) | (163) | (262) | (427) | |
Other cost of sales | (34) | (42) | (111) | (122) | |
Operation and maintenance | (701) | (726) | (2,072) | (2,131) | |
Depreciation and amortization | (315) | (292) | (925) | (866) | |
Plant closure adjustment (loss) | 0 | 0 | 21 | 13 | |
Franchise fees and other taxes | (111) | (104) | (314) | (301) | |
Gain on sale of equity interest and assets | 0 | 19 | 62 | 48 | |
Equity (losses) earnings before income tax | |||||
Equity (losses) earnings, other | 33 | 22 | 79 | 62 | |
Other income (expense), net | 12 | 29 | 88 | 118 | |
Interest income | 6 | 6 | 23 | 15 | |
Interest expense | (143) | (144) | (416) | (418) | |
Income (loss) before income taxes and equity earnings of certain unconsolidated subsidiaries | 270 | 447 | 1,272 | 1,210 | |
Income tax (expense) benefit | (15) | (71) | (276) | (291) | |
Equity earnings, net of income tax | 27 | 7 | 64 | 22 | |
Net income (loss) | 282 | 383 | 1,060 | 941 | |
Losses (earnings) attributable to noncontrolling interests | (34) | (35) | (79) | (76) | |
Preferred dividends of subsidiary | 0 | 0 | (1) | (1) | |
Earnings (losses) | $ 248 | $ 348 | $ 980 | $ 864 | |
Basic earnings per common share: | |||||
Basic earnings per common share | $ 1 | $ 1.41 | $ 3.95 | $ 3.52 | |
Basic earnings per common share, weighted-average number of shares outstanding (thousands) | [1] | 248,432 | 246,137 | 248,090 | 245,703 |
Diluted earnings per common share: | |||||
Diluted earnings per common share | $ 0.99 | $ 1.39 | $ 3.91 | $ 3.45 | |
Diluted earnings per common share, weighted-average number of shares outstanding (thousands) | 251,024 | 250,771 | 250,665 | 250,278 | |
Dividends declared per share of common stock | $ 0.7 | $ 0.66 | $ 2.1 | $ 1.98 | |
San Diego Gas and Electric Company [Member] | |||||
Utility operating revenues | |||||
Electric | $ 1,140 | $ 1,133 | $ 2,819 | $ 2,892 | |
Natural gas | 90 | 100 | 349 | 391 | |
Total utility operating revenues | 1,230 | 1,233 | 3,168 | 3,283 | |
Utility operating expenses | |||||
Utility cost of natural gas | 27 | 39 | 112 | 165 | |
Utility cost of electric fuel and purchased power | 427 | 441 | 906 | 1,036 | |
Utility operation and maintenance | 251 | 276 | 723 | 784 | |
Utility depreciation | 152 | 134 | 446 | 395 | |
Utility franchise fees and other taxes | 73 | 67 | 193 | 177 | |
Utility plant closure (adjustment) loss | 0 | 0 | (21) | (13) | |
Total utility operating expenses | 930 | 957 | 2,359 | 2,544 | |
Utility operating income (loss) | 300 | 276 | 809 | 739 | |
Equity (losses) earnings before income tax | |||||
Other income (expense), net | 8 | 9 | 26 | 29 | |
Interest expense | (51) | (51) | (155) | (152) | |
Income (loss) before income taxes and equity earnings of certain unconsolidated subsidiaries | 257 | 234 | 680 | 616 | |
Income tax (expense) benefit | (75) | (65) | (217) | (217) | |
Net income (loss) | 182 | 169 | 463 | 399 | |
Losses (earnings) attributable to noncontrolling interests | (12) | (12) | (20) | (20) | |
Earnings (losses) | 170 | 157 | 443 | 379 | |
Southern California Gas Company [Member] | |||||
Utility operating revenues | |||||
Total utility operating revenues | 620 | 855 | 2,448 | 2,857 | |
Utility operating expenses | |||||
Utility cost of natural gas | 163 | 237 | 626 | 1,066 | |
Utility operation and maintenance | 325 | 326 | 985 | 968 | |
Utility depreciation | 116 | 109 | 342 | 321 | |
Utility franchise fees and other taxes | 29 | 30 | 94 | 98 | |
Total utility operating expenses | 633 | 702 | 2,047 | 2,453 | |
Utility operating income (loss) | (13) | 153 | 401 | 404 | |
Equity (losses) earnings before income tax | |||||
Other income (expense), net | 8 | 6 | 25 | 13 | |
Interest income | 0 | 0 | 3 | 0 | |
Interest expense | (23) | (17) | (61) | (50) | |
Income (loss) before income taxes and equity earnings of certain unconsolidated subsidiaries | (28) | 142 | 368 | 367 | |
Income tax (expense) benefit | 20 | (44) | (91) | (110) | |
Net income (loss) | (8) | 98 | 277 | 257 | |
Earnings (losses) | (8) | 98 | 277 | 257 | |
Preferred dividend requirements | 0 | 0 | (1) | (1) | |
Earnings (losses) attributable to common shares | $ (8) | $ 98 | $ 276 | $ 256 | |
[1] | Includes fully vested restricted stock units of 504 and 222 held in our Deferred Compensation Plan for the three months ended September 30, 2015 and 2014, respectively, and 486 and 209 for the nine months ended September 30, 2015 and 2014, respectively. These fully vested restricted stock units 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. |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Net income | $ 282,000,000 | $ 383,000,000 | $ 1,060,000,000 | $ 941,000,000 |
Comprehensive income, net of income tax | ||||
Preferred dividends of subsidiary | 0 | 0 | (1,000,000) | (1,000,000) |
Before-Tax Amount [Member] | ||||
Net income | 263,000,000 | 419,000,000 | 1,257,000,000 | 1,156,000,000 |
Comprehensive income, net of income tax | ||||
Foreign currency translation adjustments | (92,000,000) | (100,000,000) | (197,000,000) | (141,000,000) |
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net of Tax | 7,000,000 | 8,000,000 | 11,000,000 | 21,000,000 |
Other Comprehensive Income (Loss), Derivatives Qualifying As Hedges, Net of Tax | (128,000,000) | (4,000,000) | (122,000,000) | (24,000,000) |
Other Comprehensive Income (Loss), Net of Tax, Total | (213,000,000) | (96,000,000) | (308,000,000) | (144,000,000) |
Total Comprehensive Income | 50,000,000 | 323,000,000 | 949,000,000 | 1,012,000,000 |
Preferred dividends of subsidiary | (1,000,000) | (1,000,000) | ||
Total comprehensive income, after preferred dividends of subsidiaries | 948,000,000 | 1,011,000,000 | ||
Income Tax (Expense) Benefit [Member] | ||||
Net income | (15,000,000) | (71,000,000) | (276,000,000) | (291,000,000) |
Comprehensive income, net of income tax | ||||
Foreign currency translation adjustments | 0 | 0 | 0 | 0 |
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net of Tax | (2,000,000) | (3,000,000) | (4,000,000) | (8,000,000) |
Other Comprehensive Income (Loss), Derivatives Qualifying As Hedges, Net of Tax | 50,000,000 | 1,000,000 | 48,000,000 | 9,000,000 |
Other Comprehensive Income (Loss), Net of Tax, Total | 48,000,000 | (2,000,000) | 44,000,000 | 1,000,000 |
Total Comprehensive Income | 33,000,000 | (73,000,000) | (232,000,000) | (290,000,000) |
Preferred dividends of subsidiary | 0 | 0 | ||
Total comprehensive income, after preferred dividends of subsidiaries | (232,000,000) | (290,000,000) | ||
Net-of-Tax Amount [Member] | ||||
Net income | 248,000,000 | 348,000,000 | 981,000,000 | 865,000,000 |
Comprehensive income, net of income tax | ||||
Foreign currency translation adjustments | (92,000,000) | (100,000,000) | (197,000,000) | (141,000,000) |
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net of Tax | 5,000,000 | 5,000,000 | 7,000,000 | 13,000,000 |
Other Comprehensive Income (Loss), Derivatives Qualifying As Hedges, Net of Tax | (78,000,000) | (3,000,000) | (74,000,000) | (15,000,000) |
Other Comprehensive Income (Loss), Net of Tax, Total | (165,000,000) | (98,000,000) | (264,000,000) | (143,000,000) |
Total Comprehensive Income | 83,000,000 | 250,000,000 | 717,000,000 | 722,000,000 |
Preferred dividends of subsidiary | (1,000,000) | (1,000,000) | ||
Total comprehensive income, after preferred dividends of subsidiaries | 716,000,000 | 721,000,000 | ||
Noncontrolling Interests [Member] | ||||
Net income | 34,000,000 | 35,000,000 | 79,000,000 | 76,000,000 |
Comprehensive income, net of income tax | ||||
Foreign currency translation adjustments | (8,000,000) | (11,000,000) | (21,000,000) | (12,000,000) |
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net of Tax | 0 | 0 | 0 | 0 |
Other Comprehensive Income (Loss), Derivatives Qualifying As Hedges, Net of Tax | (3,000,000) | 3,000,000 | (2,000,000) | 2,000,000 |
Other Comprehensive Income (Loss), Net of Tax, Total | (11,000,000) | (8,000,000) | (23,000,000) | (10,000,000) |
Total Comprehensive Income | 23,000,000 | 27,000,000 | 56,000,000 | 66,000,000 |
Preferred dividends of subsidiary | 0 | 0 | ||
Total comprehensive income, after preferred dividends of subsidiaries | 56,000,000 | 66,000,000 | ||
Total Equity [Member] | ||||
Net income | 282,000,000 | 383,000,000 | 1,060,000,000 | 941,000,000 |
Comprehensive income, net of income tax | ||||
Foreign currency translation adjustments | (100,000,000) | (111,000,000) | (218,000,000) | (153,000,000) |
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net of Tax | 5,000,000 | 5,000,000 | 7,000,000 | 13,000,000 |
Other Comprehensive Income (Loss), Derivatives Qualifying As Hedges, Net of Tax | (81,000,000) | 0 | (76,000,000) | (13,000,000) |
Other Comprehensive Income (Loss), Net of Tax, Total | (176,000,000) | (106,000,000) | (287,000,000) | (153,000,000) |
Total Comprehensive Income | 106,000,000 | 277,000,000 | 773,000,000 | 788,000,000 |
Preferred dividends of subsidiary | (1,000,000) | (1,000,000) | ||
Total comprehensive income, after preferred dividends of subsidiaries | 772,000,000 | 787,000,000 | ||
San Diego Gas and Electric Company [Member] | ||||
Net income | 182,000,000 | 169,000,000 | 463,000,000 | 399,000,000 |
San Diego Gas and Electric Company [Member] | Before-Tax Amount [Member] | ||||
Net income | 245,000,000 | 222,000,000 | 660,000,000 | 596,000,000 |
Comprehensive income, net of income tax | ||||
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net of Tax | 1,000,000 | 3,000,000 | ||
Other Comprehensive Income (Loss), Derivatives Qualifying As Hedges, Net of Tax | 0 | 0 | 0 | |
Other Comprehensive Income (Loss), Net of Tax, Total | 0 | 1,000,000 | 3,000,000 | |
Total Comprehensive Income | 245,000,000 | 223,000,000 | 660,000,000 | 599,000,000 |
San Diego Gas and Electric Company [Member] | Income Tax (Expense) Benefit [Member] | ||||
Net income | (75,000,000) | (65,000,000) | (217,000,000) | (217,000,000) |
Comprehensive income, net of income tax | ||||
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net of Tax | 0 | (1,000,000) | ||
Other Comprehensive Income (Loss), Derivatives Qualifying As Hedges, Net of Tax | 0 | 0 | 0 | |
Other Comprehensive Income (Loss), Net of Tax, Total | 0 | 0 | (1,000,000) | |
Total Comprehensive Income | (75,000,000) | (65,000,000) | (217,000,000) | (218,000,000) |
San Diego Gas and Electric Company [Member] | Net-of-Tax Amount [Member] | ||||
Net income | 170,000,000 | 157,000,000 | 443,000,000 | 379,000,000 |
Comprehensive income, net of income tax | ||||
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net of Tax | 1,000,000 | 2,000,000 | ||
Other Comprehensive Income (Loss), Derivatives Qualifying As Hedges, Net of Tax | 0 | 0 | 0 | |
Other Comprehensive Income (Loss), Net of Tax, Total | 0 | 1,000,000 | 2,000,000 | |
Total Comprehensive Income | 170,000,000 | 158,000,000 | 443,000,000 | 381,000,000 |
San Diego Gas and Electric Company [Member] | Noncontrolling Interests [Member] | ||||
Net income | 12,000,000 | 12,000,000 | 20,000,000 | 20,000,000 |
Comprehensive income, net of income tax | ||||
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net of Tax | 0 | 0 | ||
Other Comprehensive Income (Loss), Derivatives Qualifying As Hedges, Net of Tax | (1,000,000) | 4,000,000 | 3,000,000 | |
Other Comprehensive Income (Loss), Net of Tax, Total | (1,000,000) | 4,000,000 | 3,000,000 | |
Total Comprehensive Income | 11,000,000 | 16,000,000 | 20,000,000 | 23,000,000 |
San Diego Gas and Electric Company [Member] | Total Equity [Member] | ||||
Net income | 182,000,000 | 169,000,000 | 463,000,000 | 399,000,000 |
Comprehensive income, net of income tax | ||||
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net of Tax | 1,000,000 | 2,000,000 | ||
Other Comprehensive Income (Loss), Derivatives Qualifying As Hedges, Net of Tax | (1,000,000) | 4,000,000 | 3,000,000 | |
Other Comprehensive Income (Loss), Net of Tax, Total | (1,000,000) | 5,000,000 | 5,000,000 | |
Total Comprehensive Income | 181,000,000 | 174,000,000 | 463,000,000 | 404,000,000 |
Southern California Gas Company [Member] | ||||
Net income | (8,000,000) | 98,000,000 | 277,000,000 | 257,000,000 |
Southern California Gas Company [Member] | Before-Tax Amount [Member] | ||||
Net income | (28,000,000) | 142,000,000 | 368,000,000 | 367,000,000 |
Comprehensive income, net of income tax | ||||
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net of Tax | 4,000,000 | 4,000,000 | ||
Other Comprehensive Income (Loss), Net of Tax, Total | 4,000,000 | 4,000,000 | ||
Total Comprehensive Income | (28,000,000) | 146,000,000 | 368,000,000 | 371,000,000 |
Southern California Gas Company [Member] | Income Tax (Expense) Benefit [Member] | ||||
Net income | 20,000,000 | (44,000,000) | (91,000,000) | (110,000,000) |
Comprehensive income, net of income tax | ||||
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net of Tax | (2,000,000) | (2,000,000) | ||
Other Comprehensive Income (Loss), Net of Tax, Total | (2,000,000) | (2,000,000) | ||
Total Comprehensive Income | 20,000,000 | (46,000,000) | (91,000,000) | (112,000,000) |
Southern California Gas Company [Member] | Net-of-Tax Amount [Member] | ||||
Net income | (8,000,000) | 98,000,000 | 277,000,000 | 257,000,000 |
Comprehensive income, net of income tax | ||||
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net of Tax | 2,000,000 | 2,000,000 | ||
Other Comprehensive Income (Loss), Net of Tax, Total | 2,000,000 | 2,000,000 | ||
Total Comprehensive Income | $ (8,000,000) | $ 100,000,000 | $ 277,000,000 | $ 259,000,000 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | ||
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net income | $ 1,060 | $ 941 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 925 | 866 | |
Deferred income taxes and investment tax credits | 179 | 131 | |
Gain on sale of equity interest and assets | (62) | (48) | |
Plant closure (adjustment) loss | (21) | (13) | |
Equity earnings | (143) | (84) | |
Fixed-price contracts and other derivatives | (20) | (19) | |
Other | 28 | 32 | |
Net change in other working capital components | 260 | (215) | |
Changes in other assets | (112) | 28 | |
Changes in other liabilities | (5) | 42 | |
Net cash provided by operating activities | 2,089 | 1,661 | |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Expenditures for property, plant and equipment | (2,227) | (2,320) | |
Expenditures for investments | (183) | (192) | |
Proceeds from sale of equity interest and assets, net of cash sold | 347 | 92 | |
Distributions from investments | 14 | 15 | |
Purchases of nuclear decommissioning and other trust assets | (407) | (505) | |
Proceeds from sales by nuclear decommissioning and other trusts | 431 | 498 | |
Decrease in restricted cash | 68 | 156 | |
Increase in restricted cash | (81) | (139) | |
Advances to unconsolidated affiliates | (24) | (100) | |
Proceeds From Payments For Long Term Loans For Related Parties | 74 | 19 | |
Other cash flows from investing activities | 9 | 10 | |
Net cash used in investing activities | (1,979) | (2,466) | |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Common dividends paid | (468) | (450) | |
Preferred dividends paid by subsidiaries | (1) | (1) | |
Proceeds from issuances of common stock | 41 | 43 | |
Repurchases of common stock | (74) | (38) | |
Issuances of long-term debt | 2,058 | 3,063 | |
Payments on long-term debt | (1,316) | (1,845) | |
Increase (decrease) in short-term debt, net | (201) | (111) | |
Distributions to noncontrolling interests | (57) | (84) | |
Other cash flows from financing activities | 47 | (5) | |
Net cash provided by (used in) financing activities | 29 | 572 | |
Effect of exchange rate changes on cash and cash equivalents | (12) | (4) | |
Increase (decrease) in cash and cash equivalents | 127 | (237) | |
Cash and cash equivalents, beginning of period | 570 | [1] | 904 |
Cash and cash equivalents, end of period | 697 | 667 | |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | |||
Interest payments, net of amounts capitalized | 355 | 359 | |
Income tax payments, net of refunds | 37 | 154 | |
SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING AND FINANCING ACTIVITIES | |||
Accrued capital expenditures | 459 | 385 | |
Redemption of industrial development bonds | 79 | 0 | |
Increase in capital lease obligations for investments in property, plant and equipment | 0 | 60 | |
Dividends declared but not paid | 179 | 166 | |
Financing of build-to-suit property | 61 | 49 | |
Common dividends issued in stock | 41 | 28 | |
Acquisition Of Business [Abstract] | |||
Assets acquired | 10 | 0 | |
Accrued purchase price | (5) | 0 | |
Liabilities Assumed | (2) | 0 | |
Cash paid | 3 | 0 | |
San Diego Gas and Electric Company [Member] | |||
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net income | 463 | 399 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Utility depreciation and amortization | 446 | 395 | |
Deferred income taxes and investment tax credits | 170 | 193 | |
Utility plant closure (adjustment) loss | (21) | (13) | |
Fixed-price contracts and other derivatives | (3) | (5) | |
Other | (14) | (30) | |
Net change in other working capital components | 136 | (252) | |
Changes in other assets | (93) | 106 | |
Changes in other liabilities | 10 | 28 | |
Net cash provided by operating activities | 1,094 | 821 | |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Expenditures for property, plant and equipment | (835) | (790) | |
Purchases of nuclear decommissioning trust assets | (404) | (501) | |
Proceeds from sales by nuclear decommissioning trusts | 431 | 498 | |
Decrease in restricted cash | 27 | 109 | |
Increase in restricted cash | (29) | (96) | |
Other cash flows from investing activities | 0 | (16) | |
Net cash used in investing activities | (810) | (796) | |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Common dividends paid | (150) | 0 | |
Issuances of long-term debt | 388 | 100 | |
Payments on long-term debt | (294) | (22) | |
Increase (decrease) in short-term debt, net | (202) | (59) | |
Distributions to noncontrolling interests | (14) | (38) | |
Net cash provided by (used in) financing activities | (272) | (19) | |
Increase (decrease) in cash and cash equivalents | 12 | 6 | |
Cash and cash equivalents, beginning of period | 8 | [1] | 27 |
Cash and cash equivalents, end of period | 20 | 33 | |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | |||
Interest payments, net of amounts capitalized | 141 | 136 | |
Income tax payments, net of refunds | 62 | (4) | |
SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING AND FINANCING ACTIVITIES | |||
Accrued capital expenditures | 142 | 118 | |
Increase in capital lease obligations for investments in property, plant and equipment | 0 | 60 | |
Southern California Gas Company [Member] | |||
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net income | 277 | 257 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Utility depreciation and amortization | 342 | 321 | |
Deferred income taxes and investment tax credits | 98 | 94 | |
Other | (18) | (2) | |
Net change in other working capital components | 48 | (19) | |
Changes in other assets | (57) | (70) | |
Changes in other liabilities | 0 | 15 | |
Net cash provided by operating activities | 690 | 596 | |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Expenditures for property, plant and equipment | (946) | (764) | |
Increase in loans to affiliates, net | (250) | (281) | |
Net cash used in investing activities | (1,196) | (1,045) | |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Preferred dividends paid | (1) | (1) | |
Issuances of long-term debt | 599 | 747 | |
Payments on long-term debt | 0 | (250) | |
Increase (decrease) in short-term debt, net | (50) | (42) | |
Other cash flows from financing activities | (4) | (7) | |
Net cash provided by (used in) financing activities | 544 | 447 | |
Increase (decrease) in cash and cash equivalents | 38 | (2) | |
Cash and cash equivalents, beginning of period | 85 | [1] | 27 |
Cash and cash equivalents, end of period | 123 | 25 | |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | |||
Interest payments, net of amounts capitalized | 53 | 43 | |
Income tax payments, net of refunds | 11 | 19 | |
SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING AND FINANCING ACTIVITIES | |||
Accrued capital expenditures | 172 | 137 | |
Dividends declared but not paid | $ 50 | $ 0 | |
[1] | Derived from audited financial statements. |
GENERAL
GENERAL | 3 Months Ended |
Sep. 30, 2015 | |
Notes to Consolidated Financial Statements [Abstract] | |
General | NOTE 1. GENERAL IMPACT OF SEASONALIZATION AT SEMPRA ENERGY AND SOUTHERN CALIFORNIA GAS COMPANY In the first quarter of 2015, Southern California Gas Company ( SoCalGas ) adopted a California Public Utilities Commission (CPUC) decision in the Triennial Cost Allocation Proceeding (TCAP) requiring SoCalGas to recognize annual authorized revenue for core natural gas customers using seasonal factors established in the TCAP, i nstead of recognizing such revenue ratably over the year as was previously required. This “ seasonalization ” resulted in $158 million lower operating revenues and $113 million lower earnings for both Sempra Energy and SoCalGas for the three months ended Sep tember 30, 2015 compared to the same period in 2014, and $67 million lower operating revenues and $48 million lower earnings for both Sempra Energy and SoCalGas for the first nine months of 2015 compared to the same period in 2014. While this seasonalizati on will cause variability in comparable revenue and earnings from quarter to quarter within the year, it will not impact full-year 2015 results nor have any impact on cash flows . Accordingly, substantially all of SoCalGas ’ annual earnings will be recognized in the first and fourth quarters of the year. We discuss the CPUC decision further in Note 10. 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 variable interest entities (VIEs). Sempra Energy’s principal operating units are San Diego Gas & Electric Company (SDG&E) and SoCalGas , which are separate, reportable segmen ts; Sempra International, which includes our Sempra South American Utilities and Sempra Mexico reportable segments; and Sempra U.S. Gas & Power, which includes our Sempra Renewables and Sempra Natural Gas reportable segments. We provide descriptions of eac h of our segments in Note 12. We refer to SDG&E and SoCalGas collectively as the California Utilities, which do not include the utilities in our Sempra International and Sempra U.S. Gas & Power operating units. Sempra Global is the holding company for most of our subsidiaries that are not subject to California utility regulation. All references in these Notes to “Sempra International,” “Sempra U.S. Gas & Power” and their respective reportable segments are not intended to refer to any legal entity with the s ame or similar name. Our Sempra Mexico segment includes the operating companies of our subsidiary, Infraestructura Energética Nova, S.A.B. de C.V. ( IEnova ), as well as certain holding companies and risk management activity. We discuss IEnova further in Not e 1 of the Notes to Consolidated Financial Statements in our Annual Report on Form 10-K for the year ended December 31, 2014 (the Annual Report), which includes the combined reports for Sempra Energy, SDG&E and SoCalGas . Sempra Energy uses the equity metho d to account for investments in affiliated companies over which we have the ability to exercise significant influence, but not control. We discuss our investments in unconsolidated entities in Notes 3 and 4 herein and in the Notes to Consolidated Financial Statements in the Annual Report. 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 in Note 5 under “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 ’ Condensed Consolidated Financial Statements include its accounts and the de minimis accounts of inactive subsidiaries. SoCalGas ’ common st ock 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 . We have prepared the Condensed Consolidated Financial Statements in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP) and in accordance with the interim-period-reporting requirements of Form 10-Q. Results of operations for interim perio ds are not necessarily indicative of results for the entire year. We evaluated events and transactions that occurred after September 30, 2015 through the date the financial statements were issued and , in the opinion of management, the accompanying statemen ts reflect all adjustments necessary for a fair presentation. These adjustments are only of a normal, recurring nature. All December 31, 2014 balance sheet information in the Condensed Consolidated Financial Statements has been derived from our audited 20 14 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-reporti ng provisions of U.S. GAAP and the Securities and Exchange Commission. We describe our significant accounting policies in Note 1 of the Notes to Consolidated Financial Statements in the Annual Report. We follow the same acco unting policies for interim reporting purposes . You should read the information in this Quarterly Report in conjunction with the Annual Report. Regulated Operations Sempra South American Utilities has controllin g interests in two electric distribution utilities in South America, Chilquinta Energ í a S.A. ( Chilquinta Energ í a ) in Chile and Luz del Sur S.A.A. (Luz del Sur) in Peru. Sempra Natural Gas owns Mobile Gas Service Corporation (Mobile Gas) in southwest Alabam a and Willmut Gas Company ( Willmut Gas) in Mississippi, and Sempra Mexico owns Ecogas México, S. de R.L. de C.V. ( Ecogas ) in northern Mexico, all natural gas distribution utilities. The California Utilities, Sempra Natural Gas’ Mobile Gas and Willmut Gas, and Sempra Mexico’s Ecogas prepare their financial statements in accordance with U.S. GAAP provisions governing regulated operations, as we discuss in Note 1 of the Notes to Consolidated Financial Statements in the Annual Report . |
NEW ACCOUNTING STANDARDS
NEW ACCOUNTING STANDARDS | 3 Months Ended |
Sep. 30, 2015 | |
Notes to Consolidated Financial Statements [Abstract] | |
New Accounting Standards | N OTE 2. NEW ACCOUNTING STANDARDS We describe below recent pronouncements that have had or may have a significant effect on our financial statements. We do not discuss recent pronouncements that are not anticipated to have an impact on or are unrelated to our financial condition, results of operations, cash flows or disclosures. SEMPRA ENERGY, SDG&E AND SOCALGAS Accounting Standards Update ( ASU ) 201 4 - 09 , “ Revenue from Contracts with Customers ” (ASU 201 4-09) and ASU 2015-14, “Revenue from Contracts with Cu stomers: Deferral of the Effective Date” (ASU 2015-14): ASU 2014-09 provides accounting guidance for revenue arising from contracts with customers and affects all entities that enter into contracts to provide goods or services to their customers. The guida nce 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 fo r all periods presented in the period of adoption or a modified retrospective approach. ASU 2015-14 defers the effective date of ASU 2014-09 by one year for all entities and permits early adoption on a limited basis. For public entities, ASU 2014-09 is e ffective for fiscal years beginning after December 15, 2017, with early adoption permitted for fiscal years beginning after December 15, 2016, and is effective for interim periods in the year of adoption. We have not yet selected the year in which we will adopt the standard or our transition method, nor have we determined the effect of the standard on our ongoing financial reporting. ASU 2015-03, “Interest – Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs” (ASU 2015-03) and ASU 2 015-15, “Interest - Imputation of Interest: Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements” (ASU 2015-15) : ASU 2015-03 provides guidance on the financial statement presentation of debt issuance co sts and requires an entity to present debt issuance costs in the balance sheet as a direct deduction from the carrying amount of the related long-term debt liability. This guidance must be applied using a full retrospective approach for all periods present ed in the period of adoption. We will adopt ASU 2015-03 for our annual reporting period ending December 3 1, 2015 , and the adoption will not affect our results of operations or cash flows . Deferred debt issuance costs that are the subject of ASU 2015-03 are included in Sundry on the Sempra Energy, SDG&E and SoCalGas Condensed Consolidated Balance Sheets and total $78 million, $ 32 mill ion, and $18 million at September 30, 2015, respectively, and $72 million, $33 million, and $15 million at December 31, 201 4, respectively . ASU 2015-15 clarifies ASU 2015-03 to provide additional guidance related to line-of-credit arrangements and states that the Securities and Exchange Commission staff would not object to an entity continuing to defer and present costs relat ed to line-of-credit arrangements as an asset and subsequently amortizing the deferred costs ratably over the term of the line-of-credit arrangements, regardless of whether there are any outstanding borrowings on the line-of-credit arrangements. We will ad opt ASU 2015-15 for our annual reporting period ending December 31, 2015 and will continue to include deferred costs related to our line-of-credit arrangements that are the subject of ASU 2015-15 in Sundry on the Sempra Energy, SDG&E and SoCalGas Condensed Consolidated Balance Sheets . ASU 2015-16, “Business Combination s – Simplifying the Accounting for Measu rement-Period Adjustments” (ASU 2015-16): ASU 2015-16 eliminates the requirement that acquirers in a business combination account for measurement-period adjustments retrospectively. Instead, the acquirers will recognize measurement-period adjustments during the period in which they determine the amounts, including the effect on earnings of any amounts that would have been recorded in previous periods if t he accounting had been completed at the acquisition date. We will adopt ASU 2015-16 for our annual reporting period ending December 31, 2015. Any subsequent measurement-period adjustments to the purchase price allocation related to the acquisition of Gaso ductos de Chihuahua that we discuss in Note 3 will occur after the adoption of ASU 2015-16 and will be recognized in the period in which the adjustments are determined. |
RECENT INVESTMENT ACTIVITY
RECENT INVESTMENT ACTIVITY | 3 Months Ended |
Sep. 30, 2015 | |
Notes to Consolidated Financial Statements [Abstract] | |
Recent Investment Activity | NOTE 3. ACQUISITION AND DIVESTITURE ACTIVITY PENDING ACQUISITION Sempra Mexico IEnova and Petróleos Mexicanos (or PEMEX, the Mexican state-owned oil company), are 50-50 partners in the joint venture Gasoductos de Chihuahua ( GdC ). On July 31, 2015, IEnova entered into an agreement to purchase PEMEX’s 50-percent interest for $1.325 billion (excluding the assumption of approximately $170 million of net debt), increasing its interest from 50 percent to 100 percent. GdC develops and operates energy infrastruct ure in Mexico. The assets involved in the acquisition include three natural gas pipelines, an ethane pipeline, and a liquid petroleum gas pipeline and associated storage terminal. The transaction excludes the Los Ramones Norte pipeline that IEnova will con tinue to develop under a separate joint venture with PEMEX, through which IEnova’s interest in the project will remain at the current 25 percent. IEnova shareholders approved the transaction in September 2015. The transaction is subject to satisfactory com pletion of the Mexican anti-trust review and other customary closing conditions and is expected to close by the end of 2015. After financing at the IEnova level, we expect the acquisition to be accretive to Sempra Energy’s diluted earnings per share, base d on the joint venture’s strong historical performance. We expect the transaction to have additional benefits, including an ongoing relationship with PEMEX for joint development of new projects in the future; opportunities for asset optimization and expans ion into areas such as the transportation and storage of refined products; and a larger platform and presence in Mexico to participate in energy sector reform. IEnova currently accounts for its 50-percent interest in GdC as an equity method investment. At closing, GdC will become a wholly owned, consolidated subsidiary of IEnova . We anticipate that we will recognize a noncash gain associated with the remeasurement of our equity interest in GdC upon consummation of the transaction, however, as the transactio n has not yet closed, we are unable to reasonably estimate the gain at this time. We expect the acquisition to be funded with a combination of debt and equity at IEnova . Sempra Global has committed to IEnova to provide approximately $1.325 billion of inter im financing for the transaction. If IEnova elects to borrow this money, it expects to repay all or a substantial portion of the loan with proceeds from a planned equity offering. IEnova is also arranging to receive bank commitments of up to $1.0 billion t o have an alternate source of capital to repay a portion of the interim financing from Sempra Global. Sempra Energy intends to participate in the planned equity offering with proceeds of dividends from IEnova that otherwise would be repatriated to the U.S. MESQUITE POWER SALE Sempra Natural Gas In April 2015, Sempra Natural Gas sold the remaining 625-megawatt ( MW) block of the Mesquite Power plant, together with a related power sales contract, for net cash proceeds of $347 million. We recognized a pretax gain on the sale of $61 million ($36 million after-tax), included in Gain on Sale of Equity Interests and Assets on our Condensed Consolidated Statement of Operations for the nine months ended September 30, 2015. The asset was classified as held for sale at December 3 1, 2014. SALE OF EQUITY INTERESTS AND JOINT VENTURE INVESTMENT During the nine months ended September 30, 2014, Sempra Energy completed the sale of equity interests in various subsidiaries that were previously wholly owned. The following table summarizes t he deconsolidation of those subsidiaries, and we discuss each transaction below: DECONSOLIDATION OF SUBSIDIARIES (Dollars in millions) Energía Sierra Juárez Copper Mountain Solar 3 Sempra Energy Consolidated At July 16, 2014 At March 13, 2014 Proceeds from sale, net of negligible transaction costs $ 26 $ 68 $ 94 Cash (2) (2) (4) Other current assets (11) ― (11) Property, plant and equipment, net (137) (247) (384) Other assets (16) (11) (27) Accounts payable and accrued expenses 10 82 92 Due to affiliate 39 ― 39 Long-term debt, including current portion 82 97 179 Other liabilities 7 3 10 Accumulated other comprehensive income (5) (2) (7) Gain on sale of equity interests (19) (27) (46) (Increase) in equity method investments upon deconsolidation $ (26) $ (39) $ (65) Sempra Mexico In July 2014, Sempra Mexico completed the sale of a 50-percen t interest in the 155-MW first phase of its Energía Sierra Juárez wind project to a wholly owned subsidiary of InterGen N.V. for cash proceeds of $24 million, net of $2 million cash sold. Sempra Mexico recognized a pretax gain on the sale of $19 million ($14 million after-tax) included in Gain on Sale of Equity Interests and Assets on our Condensed Consolidated Statements of Operations for the three months and nine months ended September 30, 2014. The gain on sale included a $7 million after-tax gain attributable to the remeasurement of the retained investment to fair value. Our remaining 50-percent interest in Energía Sierra Juárez is accounted for under the equity method . Sempra Renewables In March 2014, Sempra Renewables formed a joint venture with Consolidated Edison Development (Con Edison Development), a non-related party, by selling a 50-percen t interest in its 250- MW Copper Mountain Solar 3 solar power facility for $66 million in cash, net of $2 million cash sold. Sempra Renewables recognized a pretax gain on the sale of $27 million ($16 million after-tax), included in Gain on Sale of Equity Interest s and Assets on our Condensed Consolidated Statement of Operations for the nine months ended September 30, 2014. Our remaining 50-percent interest in Copper Mountain Solar 3 is accounted for under the equity method. Based on the nature of the underlying assets, this investment is considered in-substance real estate. There fore, in accordance with applicable U.S. GAAP, the Copper Mountain Solar 3 equity method investment was measured at historical cost and no portion of the gain was attributable to a remeasurement of the retained investment to fair value. In May 2014, Sempra Renewables invested $109 million (and an additional $12 million in November 2014, as adjusted for financial position at closing) to become a 50-percent partner with Con Edison Development in four fully operating solar facilities in California. We discuss our investment in the California solar partnership further in Note 4 of the Notes to Consolidated Financial Statements in the Annual Report. In March 2015, Sempra Renewables acquired a 100-percent interest in the Black Oak Getty Wind project, a 78-MW wind farm under development in Stearns County, Minnesota. The wind farm has a 20-year power purchase agreement with Minnesota Municipal Power Agency. The total acquisition cost for the project is $8 million. |
INVESTMENTS IN UNCONSOLIDATED E
INVESTMENTS IN UNCONSOLIDATED ENTITIES | 3 Months Ended |
Sep. 30, 2015 | |
Notes to Consolidated Financial Statements [Abstract] | |
Investments in Unconsolidated Entities | NOTE 4. INVESTMENTS IN UNCONSOLIDATED ENTITIES We provide additional information concerning our equity method investments in Notes 3 and 4 of the Notes to Consolidated Financial Statements in the Annual Report. SEMPRA RENEWABLES In addition to Sempra Renewables’ investment in the California solar partnership discussed in Note 3 above, during the nine months ended September 30, 2015 and 2014, Sempra Renewables invested cash of $18 million and $76 million, respectively, in its other renewable energy joint ventures. SEMPR A NATURAL GAS During the nine months ended September 30, 2015, Sempra Natural Gas invested $10 million of cash in its joint venture, Cameron LNG Holdings, LLC (Cameron LNG Holdings or Cameron LNG JV), and capitalized $36 million of interest related to this equity method investment that has not commenced planned principal operations. In April 2015, Sempra Natural Gas invested $113 million of cash in its equity method investment, Rockies Express Pipeline LLC, a partnership that operates the Rockies Express pi peline, to repay project debt that matured in early 2015. |
OTHER FINANCIAL DATA
OTHER FINANCIAL DATA | 3 Months Ended |
Sep. 30, 2015 | |
Notes to Consolidated Financial Statements [Abstract] | |
Other Financial Data | NOTE 5. OTHER FINANCIAL DATA INVENTORIES The components of inventories by segment are as follows: INVENTORY BALANCES (Dollars in millions) Natural gas Liquefied natural gas Materials and supplies Total September 30, 2015 December 31, 2014 September 30, 2015 December 31, 2014 September 30, 2015 December 31, 2014 September 30, 2015 December 31, 2014 SDG&E $ 4 $ 8 $ ― $ ― $ 67 $ 65 $ 71 $ 73 SoCalGas 162 155 ― ― 30 26 192 181 Sempra South American Utilities ― ― ― ― 34 33 34 33 Sempra Mexico ― ― 7 9 10 9 17 18 Sempra Renewables ― ― ― ― 2 2 2 2 Sempra Natural Gas 95 83 4 5 1 1 100 89 Sempra Energy Consolidated $ 261 $ 246 $ 11 $ 14 $ 144 $ 136 $ 416 $ 396 GOODWILL We discuss goodwill in Note 1 of the Notes to Consolidated Financial Statements in the Annual Report. The decrease in goodwill from $931 million at December 31, 2014 to $847 million at September 30, 2015 is due to foreign currency translation at Sempra South American Utilities. We record the offset of this fluctuation in Other Comprehensive Income (Loss). VARIABLE INTEREST ENTITIES (VIE) 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 right to receive benefits that could be significant to t he VIE. SDG&E 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 pla nt (i.e., tolling agreements). SDG&E’s obligation to absorb natural gas costs m ay be a significant variable interest. In addition, SDG&E has the power to direct the dispatch of electricity generated by these facilities. Based upon 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 pr ovide 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 gener ating facility. We d etermine if SDG&E 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, as we discuss below. Otay Mesa VIE SDG&E has a n agreement to purchase power generated at the Otay Mesa Energy Center (OMEC), a 605-MW generating facility. In addition to tolling, the agreement provides SDG&E with the option to purchase the power plant at the end of the contract term in 2019, or upon e arlier termination of the purchased-power agreement, at a predetermined price subject to adjustments based on performance of the facility. If SDG&E does not exercise its option, under certain circumstances, it may be required to purchase the power plant at a predetermined price, which we refer to as the put option. The facility owner, Otay Mesa Energy Center LLC (OMEC LLC), is a VIE ( 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 have consolidated Otay Mesa VIE. Otay Mesa VIE’s equity of $64 million at September 30, 2015 and $60 million at December 31, 2014 is included on the Condensed Consolidated Balance Sheets in Other Noncontrolling Interests for Sempra Energy and in Noncontro lling Interest for SDG&E. OMEC LLC has a loan outstanding of $317 million at September 30, 2015, the proceeds of which were used for the construction of OMEC. The loan is with third party lenders and is secured by OMEC’s property, plant and equipment. SDG &E is not a party to the loan agreement and does not have any additional implicit or explicit financial responsibility to OMEC LLC. The loan fully matures in April 2019 and bears interest at rates varying with market rates. In addition, OMEC LLC has entere d into interest rate swap agreements to moderate its exposure to interest rate changes. We provide additional information concerning the interest rate swaps in Note 7. 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 elim inations of transactions between SDG&E and Otay Mesa VIE. The captions in the table below generally correspond to SDG&E’s Condensed Consolidated Statements of Operations. AMOUNTS ASSOCIATED WITH OTAY MESA VIE (Dollars in millions) Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 Operating expenses Cost of electric fuel and purchased power $ (27) $ (27) $ (66) $ (67) Operation and maintenance 3 3 13 13 Depreciation 7 7 19 21 Total operating expenses (17) (17) (34) (33) Operating income 17 17 34 33 Interest expense (5) (5) (14) (13) Income before income taxes/Net income 12 12 20 20 Earnings attributable to noncontrolling interest (12) (12) (20) (20) Earnings attributable to common shares $ ― $ ― $ ― $ ― We provide additional information regarding Otay Mesa VIE in Note 1 of the Notes to Consolidated Financial Statements in the Annual Report. Sempra Natural Gas Cameron LNG JV Sempra Energy’s equity method investment in Cameron LNG JV is considered to be a VIE generally due to contractual provisions that transfer certain risks to customers. Sempra Energy is not the primary beneficiary because we do not have the power to direct the most significant activities of Cameron LNG JV. We will continue to evaluate Ca meron LNG JV for any changes that may impact our determination of the primary beneficiary. The carrying value of our investment in Cameron LNG JV was $956 million and $1,007 million at September 30, 2015 and December 31, 2014, respectively. Our maximum exp osure to loss includes the carrying value of our investment and the guarantees discussed in Note 4 of the Notes to Consolidated Financial Statements in the Annual Report. Other Variable Interest Entities SDG&E’s power procurement is subject to reliability requirements that may require SDG&E to enter into various power purchase arrangements which 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. 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 at September 30, 2015. In addition to the tolling agreements described above, other variable interests involve various elements of fuel and power costs, including certain construction costs, tax credits, and other components of cash flow expected to be paid to or received by our c ounterparties. 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. 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 are not expected to significantly affect the financial position, results of operations, or liquidity of SDG&E. 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. Sempra Energy’s other operating units also enter into arrangements which could include variable interests. We evaluate these arrangements and applicable entities based upon the qualitative and quantitative analyses described above. Certain of these entities are service companies that are VIEs. As the primary beneficiary of these service companies, we consolidate them; however, their financial statements are not material to the financial statements of Sempra Energy. In all other cases, we have determined that these contracts are not variable interests in a VIE and therefore are not subject to the U.S. GAAP requirements concerning the consolidation of VIEs. PENSION AND OTHER POSTRETIREMENT BENEFITS 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 September 30, 2015 2014 2015 2014 Service cost $ 27 $ 23 $ 5 $ 6 Interest cost 38 39 10 13 Expected return on assets (42) (42) (17) (15) Amortization of: Prior service cost (credit) 3 3 (1) (2) Actuarial loss 9 3 ― ― Settlements and special termination benefits 4 5 ― 5 Regulatory adjustment (27) 6 4 5 Total net periodic benefit cost $ 12 $ 37 $ 1 $ 12 Nine months ended September 30, 2015 2014 2015 2014 Service cost $ 86 $ 75 $ 19 $ 18 Interest cost 116 121 33 37 Expected return on assets (130) (128) (51) (47) Amortization of: Prior service cost (credit) 8 8 (2) (4) Actuarial loss 28 13 ― ― Settlements and special termination benefits 4 14 ― 5 Regulatory adjustment (86) (18) 4 5 Total net periodic benefit cost $ 26 $ 85 $ 3 $ 14 NET PERIODIC BENEFIT COST – SDG&E (Dollars in millions) Pension benefits Other postretirement benefits Three months ended September 30, 2015 2014 2015 2014 Service cost $ 6 $ 8 $ 1 $ 2 Interest cost 9 10 2 3 Expected return on assets (14) (13) (2) (2) Amortization of: Actuarial loss 3 1 ― ― Special termination benefits ― ― ― 5 Regulatory adjustment (3) 6 (1) 4 Total net periodic benefit cost $ 1 $ 12 $ ― $ 12 Nine months ended September 30, 2015 2014 2015 2014 Service cost $ 22 $ 23 $ 5 $ 5 Interest cost 29 32 6 7 Expected return on assets (41) (41) (8) (8) Amortization of: Prior service cost 1 1 2 2 Actuarial loss 7 3 ― ― Settlements and special termination benefits ― 2 ― 5 Regulatory adjustment (15) 7 (5) 1 Total net periodic benefit cost $ 3 $ 27 $ ― $ 12 NET PERIODIC BENEFIT COST – SOCALGAS (Dollars in millions) Pension benefits Other postretirement benefits Three months ended September 30, 2015 2014 2015 2014 Service cost $ 17 $ 13 $ 3 $ 4 Interest cost 25 24 8 9 Expected return on assets (25) (26) (14) (12) Amortization of: Prior service cost (credit) 2 2 (2) (2) Actuarial loss 5 1 ― ― Settlement ― 4 ― ― Regulatory adjustment (24) ― 5 1 Total net periodic benefit cost $ ― $ 18 $ ― $ ― Nine months ended September 30, 2015 2014 2015 2014 Service cost $ 55 $ 45 $ 13 $ 12 Interest cost 74 75 26 28 Expected return on assets (79) (78) (42) (38) Amortization of: Prior service cost (credit) 6 6 (6) (6) Actuarial loss 16 5 ― ― Settlement ― 4 ― ― Regulatory adjustment (71) (25) 9 4 Total net periodic benefit cost $ 1 $ 32 $ ― $ ― Benefit Plan Contributions The following table shows our year - to - date contributions to pension and other postretirement benefit plans and the amounts w e expect to contribute in 20 15 : BENEFIT PLAN CONTRIBUTIONS (Dollars in millions) Sempra Energy Consolidated SDG&E SoCalGas Contributions through September 30, 2015: Pension plans $ 27 $ 2 $ 1 Other postretirement benefit plans 3 ― ― Total expected contributions in 2015: Pension plans $ 36 $ 3 $ 7 Other postretirement benefit plans 11 7 1 RABBI TRUST 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 $459 m illion and $512 million at September 30, 2015 and December 31, 2014, respectively. EARNINGS PER SHARE The following table provides the per share computations for our earnings for the three months and nine months ended September 30, 2015 and 2014. Basic earnings per common share (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 exercise d or converted into common stock. EARNINGS PER SHARE COMPUTATIONS (Dollars in millions, except per share amounts; shares in thousands) Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 Numerator: Earnings/Income attributable to common shares $ 248 $ 348 $ 980 $ 864 Denominator: Weighted-average common shares outstanding for basic EPS(1) 248,432 246,137 248,090 245,703 Dilutive effect of stock options, restricted stock awards and restricted stock units 2,592 4,634 2,575 4,575 Weighted-average common shares outstanding for diluted EPS 251,024 250,771 250,665 250,278 Earnings per share: Basic $ 1.00 $ 1.41 $ 3.95 $ 3.52 Diluted 0.99 1.39 3.91 3.45 (1) Includes fully vested restricted stock units of 504 and 222 held in our Deferred Compensation Plan for the three months ended September 30, 2015 and 2014, respectively, and 486 and 209 for the nine months ended September 30, 2015 and 2014, respectively. These fully vested restricted stock units 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. The dilution from common stock options is based on the treasury stock method. Under this method, proceeds based on the exercise price plus unearned compensation and windfall tax benefits recognized , minus tax shortfalls recognized , are assumed to be used to repurchase shares on the open market at the average market price for the period. The windfall tax benefits are tax deductions we would receive upon the assumed exercise of stock options in excess of the deferred income taxes we recorded related to the c ompensation expense on the stock options. Tax shortfalls occur when the assumed tax deductions are less than recorded deferred income taxes. The calculation of dilutive common stock equivalents excludes options for which the exercise price on common stock was greater than the average market price during the period (out-of-the-money options). We had no such antidilutive stock options outstanding for the three months or nine months ended September 30, 2015 or 2014 . For the three months and nine months ended S eptember 30 , 201 5 and 2014, we had no stock options outstanding that were antidilutive because of the unearned compensation and windfall tax benefits included in the assumed proceeds u nder the treasury stock method. The dilution from unvested restricted st ock awards (RSAs) and restricted stock units (RSUs) is also based on the treasury stock method. Proceeds equal to the unearned compensation and windfall tax benefits recognized , minus tax shortfalls recognized , related to the awards and units are assumed t o be used to repurchase shares on the open market at the average market price for the period. The windfall tax benefits or tax shortfalls recognized are the difference between tax deductions we would receive upon the assumed vesting of RSAs or RSUs and the deferred income taxes we recorded related to the compensation expense on such awards and units. There were no antidilutive RSAs or RSUs from the application of unearned compensation in the treasury stock method for the three months and n ine months ended September 30, 2015. There were no such antidilutive RSAs or RSUs for the three months or nine months ended September 30, 2014. Our performance-based RSUs include awards that vest at the end of three-year (for awards granted in 2015) or four-year performance periods based on Sempra Energy’s total return to shareholders relative to that of specified market indices (Total Shareholder Return or TSR RSUs) or based on the compound annual growth rate of Sempra Energy’s EPS (EPS RSUs). The comparative market indices for the TSR RSUs are the Standard & Poor’s (S&P) 500 Utilities Index and the S&P 500 Index. We primarily use long- term analyst consensus growth estimates for S&P 500 Utilities Index peer companies to develop our EPS RSU targets. TSR RSUs represent the right to receive from zero to 1.5 shares (2.0 shares for awards granted during or after 2014) of Sempra Energy common stock if performance targets are met. EPS RSUs represent the right to receive from zero to 2.0 shares of Sempra Energy common stock if performance targets are met. If performance falls between the targets specified for each performance metric, we calculat e the payout using linear interpolation. Participants also receive additional shares for dividend equivalents on shares subject to RSUs, which are deemed reinvested to purchase additional units that become subject to the same vesting conditions as the RSUs to which the dividends relate. Our RSAs , which are solely service-based, and those RSUs that are service-based or issued in connection with certain other performance goals represent the right to receive up to 1.0 share if the service requirements or certain other vesting conditions are met. These RSAs and RSUs have the same dividend equivalent rights as the performance-based RSUs described above . We include RSAs and these RSUs in potential dilutive shares at 100 percent , subject to the application of the treasury stock method. We includ e our TSR RSUs and EPS RSUs in potential dilutive shares at zero to up to 200 percent to the extent that they currently meet the performance requirements for vesting, subject to the application of the treasury stock method. Due to market fluctuations of bo th Sempra Energy stock and the comparative indices , dilutive TSR RSU shares may vary widely from period-to-period. If it were assumed that performance goals for all performance-based RSUs were met at maximum levels and if the treasury stock method were not applied to any of our RSAs or RSUs, the incremental potential dilutive shares would be 2,001,020 and 2,047,656 for the three months and nine months ended September 30, 2015, respectively, and 844,251 and 971,943 for the three months and nine months ended September 30 , 201 4, respectively. SHARE-BASED COMPENSATION We discuss our share-based compensation plans in Note 8 of the Notes to Consolidated Financial Statements in the Annual Report. We recorded share-based compensation expense, net of income taxes, of $7 million and $8 million for the three-month periods ended September 30, 2015 and 2014, respectively, and $22 million for each of the nine-month periods ended September 30, 2015 and 2014 . Pursuant to our Sempra Energy share-based compensation plans, Sempra Energy ’s compensation committee granted 301,319 TSR RSUs, 76,675 EPS RSUs and 133,159 RSUs issued either as serv ice-based awards or in connection with certain other performance goals during the nine months ended September 30, 2015, primarily in January. Du ring the nine months ended September 30, 2015, IEnova issued 27 8,538 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. CAPITALIZED FINANCING COSTS Capitalized financing costs include capitalized interest costs and, primarily at the California Utilities, an allowance for funds used during construction (AFUDC) related to both debt and equity financing of construction projects. Pipeline projects currently under construction by Sempra Mexico and Sempra Natural Gas that are both subject to certain regulation and meet U.S. GAAP regulatory accounting requirements record the impact of AFUDC related to equity. Sempra Interna tional’s and Sempra U.S. Gas & Power’s businesses capitalize interest costs incurred to finance capital projects and interest on equity method investments that have not commenced planned principal operations. The California Utilities also capitalize certai n interest costs. The following table shows capitalized financing costs for the three months and nine months ended September 30, 2015 and 2014. CAPITALIZED FINANCING COSTS (Dollars in millions) Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 Sempra Energy Consolidated: AFUDC related to debt $ 6 $ 5 $ 19 $ 15 AFUDC related to equity 26 28 84 77 Other capitalized financing costs 18 6 52 22 Total Sempra Energy Consolidated $ 50 $ 39 $ 155 $ 114 SDG&E: AFUDC related to debt $ 3 $ 3 $ 10 $ 10 AFUDC related to equity 9 8 27 26 Total SDG&E $ 12 $ 11 $ 37 $ 36 SoCalGas: AFUDC related to debt $ 3 $ 2 $ 9 $ 5 AFUDC related to equity 10 7 29 18 Other capitalized financing costs 1 ― 1 ― Total SoCalGas $ 14 $ 9 $ 39 $ 23 COMPREHENSIVE INCOME The following tables present the changes in Accumulated Other Comprehensive Income (Loss) (AOCI) by component and amounts reclassified out of AOCI to net income , excluding amounts attributable to noncontrolling interests : CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) BY COMPONENT(1) SEMPRA ENERGY CONSOLIDATED (Dollars in millions) Pension and other postretirement benefits Foreign Total currency Unamortized Unamortized accumulated other translation net actuarial prior service Financial comprehensive adjustments gain (loss) cost instruments income (loss) Three months ended September 30, 2015 and 2014 2015: Balance as of June 30, 2015 $ (427) $ (81) $ (2) $ (86) $ (596) Other comprehensive loss before reclassifications (92) ― ― (79) (171) Amounts reclassified from accumulated other comprehensive income ― 5 ― 1 6 Net other comprehensive (loss) income (92) 5 ― (78) (165) Balance as of September 30, 2015 $ (519) $ (76) $ (2) $ (164) $ (761) 2014: Balance as of June 30, 2014 $ (170) $ (65) $ ― $ (38) $ (273) Other comprehensive loss before reclassifications (100) ― ― (2) (102) Amounts reclassified from accumulated other comprehensive income (loss) ― 5 ― (1) 4 Net other comprehensive (loss) income (100) 5 ― (3) (98) Balance as of September 30, 2014 $ (270) $ (60) $ ― $ (41) $ (371) Nine months ended September 30, 2015 and 2014 2015: Balance as of December 31, 2014 $ (322) $ (83) $ (2) $ (90) $ (497) Other comprehensive loss before reclassifications (197) ― ― (76) (273) Amounts reclassified from accumulated other comprehensive income ― 7 ― 2 9 Net other comprehensive (loss) income (197) 7 ― (74) (264) Balance as of September 30, 2015 $ (519) $ (76) $ (2) $ (164) $ (761) 2014: . Balance as of December 31, 2013 $ (129) $ (73) $ ― $ (26) $ (228) Other comprehensive loss before reclassifications (141) ― ― (28) (169) Amounts reclassified from accumulated other comprehensive income ― 13 ― 13 26 Net other comprehensive (loss) income (141) 13 ― (15) (143) Balance as of September 30, 2014 $ (270) $ (60) $ ― $ (41) $ (371) (1) All amounts are net of income tax, if subject to tax, and exclude noncontrolling interests. CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) BY COMPONENT(1) SAN DIEGO GAS & ELECTRIC COMPANY (Dollars in millions) Pension and other postretirement benefits Total Unamortized Unamortized accumulated other net actuarial prior service comprehensive gain (loss) credit income (loss) Three months ended September 30, 2015 and 2014 2015: Balance as of June 30 and September 30, 2015 $ (13) $ 1 $ (12) 2014: Balance as of June 30, 2014 $ (9) $ 1 $ (8) Amounts reclassified from accumulated other comprehensive income 1 ― 1 Net other comprehensive income 1 ― 1 Balance as of September 30, 2014 $ (8) $ 1 $ (7) Nine months ended September 30, 2015 and 2014 2015: Balance as of December 31, 2014 and September 30, 2015 $ (13) $ 1 $ (12) 2014: Balance as of December 31, 2013 $ (10) $ 1 $ (9) Amounts reclassified from accumulated other comprehensive income 2 ― 2 Net other comprehensive income 2 ― 2 Balance as of September 30, 2014 $ (8) $ 1 $ (7) (1) All amounts are net of income tax, if subject to tax, and exclude noncontrolling interests. CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) BY COMPONENT(1) SOUTHERN CALIFORNIA GAS COMPANY (Dollars in millions) Pension and other postretirement benefits Total Unamortized Unamortized accumulated other net actuarial prior service Financial comprehensive gain (loss) credit instruments income (loss) Three months ended September 30, 2015 and 2014 2015: Balance as of June 30 and September 30, 2015 $ (5) $ 1 $ (14) $ (18) 2014: Balance as of June 30, 2014 $ (5) $ 1 $ (14) $ (18) Amounts reclassified from accumulated other comprehensive income 2 ― ― 2 Net other comprehensive income 2 ― ― 2 Balance as of September 30, 2014 $ (3) $ 1 $ (14) $ (16) Nine months ended September 30, 2015 and 2014 2015: Balance as of December 31, 2014 and September 30, 2015 $ (5) $ 1 $ (14) $ (18) 2014: Balance as of December 31, 2013 $ (5) $ 1 $ (14) $ (18) Amounts reclassified from accumulated other comprehensive income 2 ― ― 2 Net other comprehensive income 2 ― ― 2 Balance as of September 30, 2014 $ (3) $ 1 $ (14) $ (16) (1) All amounts are net of income tax, if subject to tax, and exclude noncontrolling interests. RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Dollars in millions) Details about accumulated Amounts reclassified other comprehensive income (loss) from accumulated other Affected line item on Condensed components comprehensive income (loss) Consolidated Statements of Operations Three months ended September 30, 2015 2014 Sempra Energy Consolidated: Financial instruments: Interest rate and foreign exchange instruments $ 5 $ 8 Interest Expense Interest rate instruments ― (5) Gain on Sale of Equity Interests and Assets Interest rate instruments 3 2 Equity Earnings, Before Income Tax Commodity contracts not subject Revenues: Energy-Related to rate recovery (3) (2) Businesses Total before income tax 5 3 (1) (1) Income Tax Expense Net of income tax 4 2 (3) (3) Earnings Attributable to Noncontrolling Interests $ 1 $ (1) Pension and other postretirement benefits: Amortization of actuarial loss $ 7 $ 8 See note (1) below (2) (3) Income Tax Expense Net of income tax $ 5 $ 5 Total reclassifications for the period, net of tax $ 6 $ 4 SDG&E: Financial instruments: Interest rate instruments $ 3 $ 3 Interest Expense (3) (3) Earnings Attributable to Noncontrolling Interest $ ― $ ― Pension and other postretirement benefits: Amortization of actuarial loss $ ― $ 1 See note (1) below ― ― Income Tax Expense Net of income tax $ ― $ 1 Total reclassifications for the period, net of tax $ ― $ 1 SoCalGas: Pension and other postretirement benefits: Amortization of actuarial loss $ ― $ 4 See note (1) below ― (2) Income Tax Expense Net of income tax $ ― $ 2 Total reclassifications for the period, net of tax $ ― $ 2 (1) Amounts are included in the computation of net periodic benefit cost (see "Pension and Other Postretirement Benefits" above). RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Dollars in millions) Details about accumulated Amount reclassified other comprehensive income (loss) from accumulated other Affected line item on Condensed components comprehensive income (loss) Consolidated Statements of Operations Nine months ended September 30, 2015 2014 Sempra Energy Consolidated: Financial instruments: Interest rate and foreign exchange instruments $ 14 $ 17 Interest Expense Interest rate instruments ― (3) Gain on Sale of Equity Interests and Assets Interest rate instruments 9 7 Equity Earnings, Before Income Tax Commodity contracts not subject to Revenues: Energy-Related rate recovery (10) 8 Businesses Total before income tax 13 29 (1) (8) Income Tax Expense Net of income tax 12 21 (10) (8) Earnings Attributable to Noncontrolling Interests $ 2 $ 13 Pension and other postretirement benefits: Amortization of actuarial loss $ 11 $ 21 See note (1) below (4) (8) Income Tax Expense Net of income tax $ 7 $ 13 Total reclassifications for the period, net of tax $ 9 $ 26 SDG&E: Financial instruments: Interest rate instruments $ 9 $ 8 Interest Expense (9) (8) Earnings Attributable to Noncontrolling Interest $ ― $ ― Pension and other postretirement benefits: Amortization of actuarial loss $ ― $ 3 See note (1) below ― (1) Income Tax Expense Net of income tax $ ― $ 2 Total reclassifications for the period, net of tax $ ― $ 2 SoCalGas: Pension and other postretirement benefits: Amortization of actuarial loss $ ― $ 4 See note (1) below ― (2) Income Tax Expense Net of income tax $ ― $ 2 Total reclassifications for the period, net of tax $ ― $ 2 (1) Amounts are included in the computation of net periodic benefit cost (see "Pension and Other Postretirement Benefits" above). SHAREHOLDERS’ EQUITY AND NONCONTROLLING INTERESTS The following tables provide reconciliations of changes in Sempra Energy’s, SDG&E’s and SoCalGas ’ shareholders’ equity and noncontrolling interests for the nine months ended September 30, 2015 and 2014. SHAREHOLDERS’ EQUITY AND NONCONTROLLING INTERESTS ― SEMPRA ENERGY CONSOLIDATED (Dollars in millions) Sempra Energy Non- shareholders’ controlling Total equity interests(1) equity Balance at December 31, 2014 $ 11,326 $ 774 $ 12,100 Comprehensive income 717 56 773 Preferred dividends of subsidiary (1) ― (1) Share-based compensation expense 39 ― 39 Common stock dividends declared (520) ― (520) Issuance of common stock 82 ― 82 Repurchases of common stock (74) ― (74) Tax benefit related to share-based compensation 56 ― 56 Equity contributed by noncontrolling interest ― 1 1 Distributions to noncontrolling interests ― (60) (60) Balance at September 30, 2015 $ 11,625 $ 771 $ 12,396 Balance at December 31, 2013 $ 11,008 $ 842 $ 11,850 Comprehensive income 722 66 788 Preferred dividends of subsidiary (1) ― (1) Share-based compensation expense 35 ― 35 Common stock dividends declared (486) ― (486) Issuance of common stock 71 ― 71 Repurchases of common stock (38) ― (38) Tax benefit related to share-based compensation 22 ― 22 Equity contributed by noncontrolling interest ― 1 1 Distributions to noncontrolling interests ― (85) (85) Balance at September 30, 2014 $ 11,333 $ 824 $ 12,157 (1) Noncontrolling interests include the preferred stock of SoCalGas and other noncontrolling interests as listed in the table below under "Other Noncontrolling Interests." SHAREHOLDER'S EQUITY AND NONCONTROLLING INTEREST ― SDG&E (Dollars in millions) SDG&E Non- shareholder’s controlling Total equity interest equity Balance at December 31, 2014 $ 4,932 $ 60 $ 4,992 Comprehensive income 443 20 463 Common stock dividends declared (150) ― (150) Distributions to noncontrolling interest ― (16) (16) Balance at September 30, 2015 $ 5,225 $ 64 $ 5,289 Balance at December 31, 2013 $ 4,628 $ 91 $ 4,719 Comprehensive income 381 23 404 Distributions to noncontrolling interest ― (37) (37) Balance at September 30, 2014 $ 5,009 $ 77 $ 5,086 SHAREHOLDERS' EQUITY ― SOCALGAS (Dollars in millions) SoCalGas shareholders' equity Balance at December 31, 2014 $ 2,781 Comprehensive income 277 Preferred stock dividends declared (1) Common stock dividends declared (50) Balance at September 30, 2015 $ 3,007 Balance at December 31, 2013 $ 2,549 Comprehensive income 259 Preferred stock dividends declared (1) Balance at September 30, 2014 $ 2,807 Ownership interests that are held by owners other than Sempra Energy and SDG&E in subsidiaries or entities consolidated by them are accounted for and reported as noncontrolling interests. As a result, noncontrolling interests are reported as a separate component of equity on the Condensed Consolidated Balance Sheets. Earnings or losses attributable to noncontrolling interests are separately identified on the Condensed Consolidated Statements of Operations, and compre hensive income or loss attributable to noncontrolling interests is separately identified on the Condensed Consolidated Statements of Comprehensive Income (Loss) . Preferred Stock At Sempra Energy, the preferred stock of SoCalGas is presented as a noncontrolling interest and preferred stock dividends are charges against income related to noncontrolling interests. We provide additional information concerning preferred s |
DEBT AND CREDIT FACILITIES
DEBT AND CREDIT FACILITIES | 3 Months Ended |
Sep. 30, 2015 | |
Notes to Consolidated Financial Statements [Abstract] | |
Debt and Credit Facilities | NOTE 6. DEBT AND CREDIT FACILITIES LINES OF CREDIT At September 30, 2015, Sempra Energy Consolidated had an aggregate of $4.1 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 major components of which we detail below. Available unused credit on these lines at September 30, 2015 was approximately $3.3 billion. Some of Sempra Energy’s subsidiaries, primarily our foreign operations, have additional general purpose credit facilities, aggregating $945 million at September 30, 2015. Available unused credit on these lines totaled $485 million at September 30, 2015. Sempra Energy Line of Credit at September 30, 2015 Sempra Energy had a $1.067 billion, five-year syndicated revolving credit agreement expiring in March 2017. Citibank, N.A. served as administrative agent f or the syndi cate of 24 lenders. Borrowings bore interest at benchmark rates plus a margin that varied with market index rates and Sempra Energy’s credit ratings. The facility required Sempra Energy to maintain a ratio of total indebtedness to total capital ization (as defined in the agreement) of no more than 65 percent at the end of each quarter. At September 30, 2015 and December 31, 2014, Sempra Energy was in compliance with this and all other financial covenants under the credit facility. The facility al so provided for issuance of up to $635 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. At September 30, 2015, Sempra Energy had no outstanding borrowings or letters of credit supported by the facility. Amended and Restated Line of Credit Effective October 13, 2015 On October 13, 2015, Sempra Energy entered into an amended and restated, five-year syndicated revolving credit agr eement expiring in October 2020. The credit facility permits borrowings of up to $1 billion. Citibank, N.A. serves as administrative agent for the syndi cate of 20 lenders and n o single lender has greater than a 7-percent share . The credit facility amends, restates and supersedes Sempra Energy’s $1.067 billion credit agreement that was to expire in 2017. Borrowings bear interest at benchmark rates plus a margin that varies with Sempra Energy’s credit ratings. The facility requires Sempra Energy to maintain a ratio of total indebtedness to total capitalization (as defined in the agreement) of no more than 65 percent at the end of each quarter. 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. Sempra Global Line of Credit at September 30, 2015 Sempra Global had a $2.189 billion, five-year syndicated revolving credit agreement expi ring in March 2017. Citibank, N.A. served as administrative agent for the syndicate of 25 lenders. Sempra Energy guaranteed Sempra Global’s obligations under the credit facility. Borrowings bore interest at benchmark rates plus a margin that varied with ma rket index rates and Sempra Energy’s credit ratings. The facility required Sempra Energy to maintain a ratio of total indebtedness to total capitalization (as defined in the agreement) of no more than 65 percent at the end of each quarter. At September 30, 2015 and December 31, 2014, Sempra Energy was in compliance with this and all other financial covenants under the credit facility. At September 30, 2015, Sempra Global had $734 million of commercial paper outstanding supported by the facility. Amended an d Restated Line of Credit Effective October 13, 2015 On October 13, 2015, Sempra Global entered into an amended and restated, five-year syndicated revolving credit agreement expiring in October 2020. The credit facility permits borrowings of up to $2.21 bi llion. Citibank, N.A. serves as administrative agent for the syndi cate of 20 lenders and n o single lender has greater than a 7-percent share . The credit facility amends, restates and supersedes Sempra Global’s $2.189 billion credit agreement that was to ex pire in 2017. Sempra Energy guarantees Sempra Global’s obligations under the credit facility. Borrowings bear interest at benchmark rates plus a margin that varies with Sempra Energy’s credit ratings. The facility requires Sempra Energy to maintain a rati o of total indebtedness to total capitalization (as defined in the agreement) of no more than 65 percent at the end of each quarter. California Utilities Line of Credit at September 30, 2015 SDG&E and SoCalGas had a combined $877 million, five-year syndica ted revolving credit agreement expiring in March 2017. JPMorgan Chase Bank, N.A. served as administrative agent for the syndicate of 24 lenders. The agreement permitted each utility to individually borrow up to $658 million, subject to a combined limit of $877 million for both utilities. It also provided for the issuance of letters of credit on behalf of each utility subject to a combined letter of credit commitment of $300 million for both utilities. The amount of borrowings otherwise available under the f acility was reduced by the amount of outstanding letters of credit. Borrowings under the facility bore interest at benchmark rates plus a margin that varied with market index rates and the borrowing utility’s credit ratings. The agreement required each uti lity to maintain a ratio of total indebtedness to total capitalization (as defined in the agreement) of no more than 65 percent at the end of each quarter. At September 30, 2015 and December 31, 2014, the California Utilities were in compliance with this a nd all other financial covenants under the credit facility. Each utility’s obligations under the agreement were individual obligations, and a default by one utility would not constitute a default by the other utility or preclude borrowings by, or the issua nce of letters of credit on behalf of, the other utility. At September 30, 2015, SDG&E had $44 million of commercial paper outstanding, supported by the facility. SoCalGas had no outstanding borrowings supported by the facility. Available unused credit on the line at September 30, 2015 was $614 million and $658 million at SDG&E and SoCalGas , respectively, subject to the $877 million maximum combined credit limit. Amended and Restated Line of Credit Effective October 13, 2015 On October 13, 2015, SDG&E and SoCalGas entered into a combined $1 billion, amended and restated, five-year syndicated revolving credit agreement expiring in October 2020. JPMorgan Chase Bank, N.A. ser ves as administrative agent for the syndicate of 20 lenders, and no single lender has greater than a 7-percent share. The agreement permits each utility to individually borrow up to $750 million, subject to a combined limit of $1 billion for both utilities . It 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 amoun t of outstanding letters of credit. The credit facility amends, restates and supersedes the California Utilities’ $877 million credit agreement that was to expire in 2017. Borrowings bear interest at benchmark rates plus a margin that varies with the borro wing utility’s credit rating. The agreement requires each utility to maintain a ratio of total indebtedness to total capitalization (as defined in the agreement) of no more than 65 percent at the end of each quarter. Each utility’s obligations under the a greement are individual obligations, and a default by one utility would not constitute a default by the other utility or preclude borrowings by, or the issuance of letters of credit on behalf of, the other utility. Sempra Mexico In 2014, IEnova entered int o an agreement for a $200 million, U.S. dollar-denominated, three-year corporate revolving credit facility with Banco Santander (México), S.A., Institución de Banca Múltiple , Grupo Financiero Santander México. Also in 2014, IEnova entered into an agreement for a $100 million, U.S. dollar-denominated, three-year corporate revolving credit facility with Sumitomo Mitsui Banking Corporation. Both revolving credit facilities were entered into to finance working capital and for general corporate purposes. In Aug ust 2015, IEnova entered into a $400 million, five-year revolving credit agreement to replace, and repay the $210 million in outstanding borrowings under, the two existing revolving credit facilities described above. The lenders are Banco Santander (México) , S.A., Institución de Banca Múltiple , Grupo Financiero Santander México, The Bank of Tokyo - Mitsubishi UFJ, LTD., The Bank of Nova Scotia and Sumitomo Mitsui Banking Corporation. At September 30, 2015, IEnova had $290 million of outstanding borrowings su pported by the facility, and available unused credit on the line was $110 million. WEIGHTED AVERAGE INTEREST RATES The weighted average interest rates on the total short-term debt at Sempra Energy Consolidated were 0.66 percent and 0.70 percent at September 30, 2015 and December 31, 2014, respectively. The weighted average interest rate on total short-term debt at SDG&E was 0.15 percent at September 30, 2015. At December 31, 2014, the weighted average interest rates on total short-term debt at SDG&E and SoCalGas were 0.27 percent and 0.25 percent, respectively. LONG-TERM DEBT Sempra Ener gy In March 2015, Sempra Energy publicly offered and sold $500 million of 2.40-percent, fixed-rate notes maturing in 2020. Sempra Energy used the proceeds from this offering to repay outstanding commercial paper. SDG&E In March 2015, SDG&E publicly offered and sold $140 million of first mortgage bonds maturing in 2017 at a variable rate of three-month LIBOR plus 0.20 percent (0.53 percent at September 30, 2015) and $250 million of 1.914-percent amortizing first mortgage bonds maturing in 2022. SDG&E used th e proceeds from the offering to repay outstanding commercial paper and for other general corporate purposes. On August 28, 2015, SDG&E redeemed, prior to maturity, certain outstanding long-term debt instruments with a total principal amount of $169 million . The coupon rates of these instruments ranged from 4.9 percent to 5.5 percent, with maturities ranging from 2021 to 2027. SoCalGas In June 2015, SoCalGas publicly offered and sold $250 million of 1.55-percent and $350 million of 3.20-percent first mortga ge bonds maturing in 2018 and 2025, respectively. SoCalGas used the proceeds from the offering to repay outstanding commercial paper and for other general corporate purposes. Sempra South American Utilities In May and June 2015, Luz del Sur borrowed $13 m illion and $22 million, respectively, under a bank loan facility. The loans accrue interest at 5.18 percent and mature in May 2018 and June 2018, respectively. In August 2015, Luz del Sur borrowed $9 million under a bank loan facility. The loan accrues int erest at 6.70 percent and matures in February 2018. In September 2015, Luz del Sur publicly offered and sold $25 million of corporate bonds at 8.75 percent maturing in September 2026. Sempra Natural Gas In June 2015, Sempra Natural Gas reduced its other lo ng-term debt by $79 million through redemption of its investment in industrial development bonds at Mississippi Hub, LLC. Sempra Natural Gas plans to redeem, prior to maturity, $55 million of industrial development bonds payable at Bay Gas Storage Company, Ltd. Accordingly, the debt is classified as current portion of long-term debt at September 30, 2015 on Sempra Energy’s Condensed Consolidated Balance Sheet. The redemption is anticipated to occur during the fourth quarter of 2015. INTEREST RATE SWAPS We discuss our fair value interest rate swaps and interest rate swap s to hedge cash flows in Note 7 . |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 3 Months Ended |
Sep. 30, 2015 | |
Notes to Consolidated Financial Statements [Abstract] | |
Derivative Financial Instruments | NOTE 7. 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 and benchmark interest rate risk. We may also manage foreign exchange rate exposures using derivatives. 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 int ended to offset associated revenues, expenses, assets or liabilities that are not presented below. We record all derivatives at fair value on the Condensed Consolidated Balance Sheet s. 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 requireme nt to pass impacts through to customers, the impact of derivative instruments may be offset in other comprehensive income (loss) (cash flow hedge), on the balance sheet (fair value hedges and regulatory offsets), or recognized in earnings. We classify cash flows from the settlements of derivative instruments as operating activities on the Condensed Consolidated Statements of Cash Flows. In certain cases, we apply the normal purchase or sale exception to derivative accounting and have other commodity contr acts that are not derivatives. These contracts are not recorded at fair value and are therefore excluded from the disclosures below. HEDGE ACCOUNTING We may designate a derivative as a cash flow hedging instrument if it effectively converts anticipated 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 a given future revenue or expense i tem 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 r esults 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 energy derivatives, both natural gas and electricity, for the benefit of customers, with the objectiv e of managing price risk and basis risks, 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 co mmodity 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 congestion revenue rights (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, a s they are offset by regulatory account balances. Realized gains and losses associated with CRRs are recorded in Cost of Electric Fuel and Purchased Power, which is recoverable in rates, on the Condensed Consolidated Statements of Operations. Sempra Mexic o and Sempra Natural Gas may use natural gas and electricity derivatives, as appropriate, to optimize the earnings of their assets which support the following businesses: liquefied natural gas (LNG), natural gas transportation, power generation, and Sempra Natural Gas’ storage. 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. Certa in of these derivatives may also be designated as cash flow hedges. Sempra Mexico also uses natural gas energy derivatives with the objective of managing price risk and lowering natural gas prices at its Mexican 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. We summarize net energy derivative volumes at September 30, 2015 and December 31, 2014 as follows: NET ENERGY DERIVATIVE VOLUMES Segment and Commodity September 30, 2015 December 31, 2014 California Utilities: SDG&E: Natural gas 59 million MMBtu 55 million MMBtu (1) Electricity 1 million MWh ― (2) Congestion revenue rights 24 million MWh 27 million MWh SoCalGas – natural gas 1 million MMBtu 1 million MMBtu Energy-Related Businesses: Sempra Natural Gas – natural gas 39 million MMBtu 29 million MMBtu (1) Million British thermal units (2) Megawatt hours In addition to the amounts noted above, we frequently use commodity derivatives to manage risks associated with the phy sical locations of contractual obligation s 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. We periodically enter into interest rate derivative agreements intended to moderate our exposure to interest rates and to lower our overall costs of borrowing. We 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. Interest rate derivatives are utilized by the California Utilities as well as by other Sempra Energy subsidiaries. Interest rate derivati ves are generally accounted for as hedges, and although the California Utilities generally recover borrowing costs in rates over time, the use of interest rate derivatives is subject to certain regulatory constraints, and the impact of interest rate derivative s may not be recovered from customers as timely as described above with regard to energy derivatives. Separately, Otay Mesa VIE has entered into interest rate swap agreements to moderate its exposure to interest rate changes. This activity was designated a s a cash flow hedge as of April 1, 2011. At September 30, 2015 and December 31, 2014, the net notional amounts of our interest rate derivatives, excluding the cross-currency swaps discussed below, were: INTEREST RATE DERIVATIVES (Dollars in millions) September 30, 2015 December 31, 2014 Notional debt Maturities Notional debt Maturities Sempra Energy Consolidated: Cash flow hedges(1) $ 389 2015-2028 $ 399 2015-2028 Fair value hedges 300 2016 300 2016 SDG&E: Cash flow hedge(1) 317 2015-2019 325 2015-2019 (1) Includes Otay Mesa VIE. All of SDG&E’s interest rate derivatives relate to Otay Mesa VIE. FOREIGN CURRENCY DERIVATIVES We are exposed to exchange rate movements at our Mexican subsidiaries, which have U.S. dollar denominated cash balances, receivables and payables (monetary assets and liabilities) that give rise to Mexican currency exchange rate movements for Mexican income tax purposes. These subsidiaries also have deferred income tax assets and liabilities that are denominated in the Mexi can peso, which must be translated into U.S. dollars for financial reporting purposes. From time to time, we may utilize foreign currency derivatives at our subsidiaries and at the consolidated level as a means to manage the risk of exposure to significant fluctuations in our income tax expense from these impacts. We may also utilize cross-currency swaps to hedge exposure related to Mexican peso-denominated debt at our Mexican subsidiaries and joint ventures. In addition, Sempra South American Utilities may utilize foreign currency derivatives at its subsidiaries and joint ventures as a means to manage foreign currency rate risk. We discuss su ch swaps at Chilquinta Energía’ s Eletrans joint venture investment in Note 4 of the Notes to Consolidated Financial S tatements in the Annual Report . FINANCIAL STATEMENT PRESENTATION Each Condensed Consolidated Balance Sheet reflects 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 September 30, 2015 and December 31, 2014, including the amount of cash collateral r eceivables that were not offset, as the cash collateral is in excess of liability positions. DERIVATIVE INSTRUMENTS ON THE CONDENSED CONSOLIDATED BALANCE SHEETS (Dollars in millions) September 30, 2015 Deferred credits Current Current and other assets: liabilities: liabilities: Fixed-price Investments Fixed-price Fixed-price contracts and other contracts contracts and other assets: and other and other derivatives(1) Sundry derivatives(2) derivatives Sempra Energy Consolidated: Derivatives designated as hedging instruments: Interest rate and foreign exchange instruments(3) $ 7 $ ― $ (16) $ (159) Commodity contracts not subject to rate recovery 6 ― ― ― Derivatives not designated as hedging instruments: Interest rate and foreign exchange instruments ― ― (3) ― Commodity contracts not subject to rate recovery 166 31 (147) (18) Associated offsetting commodity contracts (137) (18) 137 18 Associated offsetting cash collateral ― ― 3 ― Commodity contracts subject to rate recovery 7 87 (59) (65) Associated offsetting commodity contracts (1) (1) 1 1 Associated offsetting cash collateral ― ― 25 28 Net amounts presented on the balance sheet 48 99 (59) (195) Additional cash collateral for commodity contracts not subject to rate recovery 3 ― ― ― Additional cash collateral for commodity contracts subject to rate recovery 15 ― ― ― Total(4) $ 66 $ 99 $ (59) $ (195) SDG&E: Derivatives designated as hedging instruments: Interest rate instruments(3) $ ― $ ― $ (15) $ (29) Derivatives not designated as hedging instruments: Commodity contracts not subject to rate recovery ― ― (1) ― Associated offsetting cash collateral ― ― 1 ― Commodity contracts subject to rate recovery 6 87 (59) (65) Associated offsetting commodity contracts (1) (1) 1 1 Associated offsetting cash collateral ― ― 25 28 Net amounts presented on the balance sheet 5 86 (48) (65) Additional cash collateral for commodity contracts not subject to rate recovery 1 ― ― ― Additional cash collateral for commodity contracts subject to rate recovery 14 ― ― ― Total(4) $ 20 $ 86 $ (48) $ (65) SoCalGas: Derivatives not designated as hedging instruments: Commodity contracts not subject to rate recovery $ ― $ ― $ (2) $ ― Associated offsetting cash collateral ― ― 2 ― Commodity contracts subject to rate recovery 1 ― ― ― Net amounts presented on the balance sheet 1 ― ― ― Additional cash collateral for commodity contracts not subject to rate recovery 1 ― ― ― Additional cash collateral for commodity contracts subject to rate recovery 1 ― ― ― Total $ 3 $ ― $ ― $ ― (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, 2014 Deferred credits Current Current and other assets: liabilities: liabilities: Fixed-price Investments Fixed-price Fixed-price contracts and other contracts contracts and other assets: and other and other derivatives(1) Sundry derivatives(2) derivatives Sempra Energy Consolidated: Derivatives designated as hedging instruments: Interest rate and foreign exchange instruments(3) $ 10 $ 3 $ (17) $ (109) Commodity contracts not subject to rate recovery 25 ― ― ― Derivatives not designated as hedging instruments: Interest rate instruments 8 27 (7) (22) Commodity contracts not subject to rate recovery 143 32 (135) (29) Associated offsetting commodity contracts (129) (27) 129 27 Associated offsetting cash collateral (11) ― ― ― Commodity contracts subject to rate recovery 36 76 (36) (20) Associated offsetting commodity contracts (3) (1) 3 1 Associated offsetting cash collateral ― ― 23 13 Net amounts presented on the balance sheet 79 110 (40) (139) Additional cash collateral for commodity contracts subject to rate recovery 14 ― ― ― Total(4) $ 93 $ 110 $ (40) $ (139) SDG&E: Derivatives designated as hedging instruments: Interest rate instruments(3) $ ― $ ― $ (16) $ (31) Derivatives not designated as hedging instruments: Commodity contracts subject to rate recovery 32 76 (32) (20) Associated offsetting commodity contracts ― (1) ― 1 Associated offsetting cash collateral ― ― 23 13 Net amounts presented on the balance sheet 32 75 (25) (37) Additional cash collateral for commodity contracts subject to rate recovery 12 ― ― ― Total(4) $ 44 $ 75 $ (25) $ (37) SoCalGas: Derivatives not designated as hedging instruments: Commodity contracts subject to rate recovery $ 4 $ ― $ (4) $ ― Associated offsetting commodity contracts (3) ― 3 ― Net amounts presented on the balance sheet 1 ― (1) ― Additional cash collateral for commodity contracts subject to rate recovery 2 ― ― ― Total $ 3 $ ― $ (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. The effects of derivative instruments designated as hedges on the Condensed Consolidated Statement s of Operations and in Other Comprehensive Income (Loss) (OCI) and Accumulated Other Comprehensive Income (Loss) (AOCI) for the three months and nine months ended September 30 were FAIR VALUE HEDGE IMPACT ON THE CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Dollars in millions) Pretax gain (loss) on derivatives recognized in earnings Three months ended September 30, Nine months ended September 30, Location 2015 2014 2015 2014 Sempra Energy Consolidated: Interest rate instruments Interest Expense $ 1 $ 1 $ 5 $ 6 Interest rate instruments Other Income, Net ― (1) (2) ― Total(1) $ 1 $ ― $ 3 $ 6 (1) There was no hedge ineffectiveness on these swaps in either the three months or nine months ended September 30, 2015 and negligible gains and $9 million of gains from hedge ineffectiveness in the three months and nine months ended September 30, 2014, respectively. All other changes in the fair value of the interest rate swap agreements are exactly offset by changes in the fair value of the underlying long-term debt and are recorded in Other Income, Net. CASH FLOW HEDGE IMPACT ON THE CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Dollars in millions) Pretax gain (loss) recognized Pretax gain (loss) reclassified from in OCI (effective portion) AOCI into earnings (effective portion) Three months ended September 30, Three months ended September 30, 2015 2014 Location 2015 2014 Sempra Energy Consolidated: Interest rate and foreign exchange instruments(1)(2) $ (10) $ (5) Interest Expense $ (5) $ (8) Gain on Sale of Equity Interests Interest rate instruments ― 5 and Assets ― 5 Equity Earnings, Interest rate instruments (134) (4) Before Income Tax (3) (2) Commodity contracts not subject Revenues: Energy-Related to rate recovery 6 1 Businesses 3 2 Total(2) $ (138) $ (3) $ (5) $ (3) SDG&E: Interest rate instruments(1)(2) $ (4) $ 1 Interest Expense $ (3) $ (3) Nine months ended September 30, Nine months ended September 30, 2015 2014 Location 2015 2014 Sempra Energy Consolidated: Interest rate and foreign exchange instruments(1)(2) $ (22) $ (15) Interest Expense $ (14) $ (17) Gain on Sale of Equity Interests Interest rate instruments ― 3 and Assets ― 3 Equity Earnings, Interest rate instruments (123) (34) Before Income Tax (9) (7) Commodity contracts not subject Revenues: Energy-Related to rate recovery 6 (5) Businesses 10 (8) Total(2) $ (139) $ (51) $ (13) $ (29) SDG&E: Interest rate instruments(1)(2) $ (9) $ (5) Interest Expense $ (9) $ (8) (1) Amounts include Otay Mesa VIE. All of SDG&E’s interest rate derivative activity relates to Otay Mesa VIE. (2) There were negligible losses from ineffectiveness related to these hedges in 2015 and 2014. For Sempra Energy Consolidated, we expect that losses of $20 million, which are net of income tax benefit, that are currently recorded in AOCI (including $13 million in noncontrolling interests, substantially all of which is 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. Actual amounts ultimately reclassified into earnings depend on the interest rates in effect when derivative contracts that are current ly outstanding mature. SoCalGas expects that negligible losses, which are net of income tax benefit, currently recorded in AOCI related to cash flow hedges will be reclassified into earnings during the next twelve months as the hedged items affect earning s. For all forecasted transactions, the maximum term over which we are hedging exposure to the variability of cash flows at September 30, 2015 is approximately 13 years and 4 years for Sempra Energy Consolidated and SDG&E, respectively. The maximum term of hedged interest rate variability is 20 years, and is related to debt at Sempra Renewables’ equity method investees. The effects of derivative instruments not designated as hedging instruments on the Condensed Consolidated Statements of Operations for the three months and nine months ended September 30 were UNDESIGNATED DERIVATIVE IMPACT ON THE CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Dollars in millions) Pretax gain (loss) on derivatives recognized in earnings Three months ended September 30, Nine months ended September 30, Location 2015 2014 2015 2014 Sempra Energy Consolidated: Interest rate and foreign exchange instruments Other Income, Net $ (4) $ (6) $ (7) $ (6) Foreign exchange instruments Equity Earnings, Net of Income Tax (3) (2) (4) (4) Commodity contracts not subject Revenues: Energy-Related to rate recovery Businesses 21 3 33 2 Commodity contracts not subject Cost of Natural Gas, Electric Fuel to rate recovery and Purchased Power ― 1 ― 3 Commodity contracts not subject to rate recovery Operation and Maintenance (2) ― (1) ― Commodity contracts subject Cost of Electric Fuel to rate recovery and Purchased Power (27) (1) (100) 19 Commodity contracts subject to rate recovery Cost of Natural Gas ― 1 1 2 Total $ (15) $ (4) $ (78) $ 16 SDG&E: Commodity contracts not subject to rate recovery Operation and Maintenance $ (1) $ ― $ (1) $ ― Commodity contracts subject Cost of Electric Fuel to rate recovery and Purchased Power (27) (1) (100) 19 Total $ (28) $ (1) $ (101) $ 19 SoCalGas: Commodity contracts not subject to rate recovery Operation and Maintenance $ (1) $ ― $ ― $ ― Commodity contracts subject to rate recovery Cost of Natural Gas ― 1 1 2 Total $ (1) $ 1 $ 1 $ 2 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 fu ll collateralization. For Sempra Energy Consolidated, the total fair value of this group of derivative instruments in a net liability position at September 30, 2015 and December 31, 2014 is $8 million and $9 million, respectively. At September 30, 2015, i f the credit ratings of Sempra Energy were reduced below investment grade, $8 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 liability position was $5 million and $2 million at September 30, 2015 and December 31, 2014, respectively. At September 30, 2015, if the credit ratings of SDG&E were reduced below invest ment grade, $5 million of additional assets could be require d to be posted as collateral for these derivative contracts. For Sempra Energy Consolidated, SDG&E and SoCalGas , some of our derivative contracts contain a provision that would permit the counterparty, in certain circumstances, to reque st adequate assuranc e of our performance under the contracts. Such additional assurance, if needed, is not material and is not included in the amounts above. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended |
Sep. 30, 2015 | |
Notes to Consolidated Financial Statements [Abstract] | |
Fair Value Measurements | NOTE 8. FAIR VALUE MEASUREMENTS We discuss the valuation techniques and inputs we use to measure fair value and the definition of the three levels of t he fair value hierarchy in Note 1 of the Notes to Consolida ted Financial Statements in the Annual Report. We have not changed the valuation techniques or inputs we use to me asu re fair value during the nine months ended September 30, 2015 . 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 September 30, 2015 and December 31, 2014. 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 levels. The fair value of commodity derivative assets and liabilities is presented in accordance with our netting policy, as we discuss in No te 7 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 September 30, 2015 and December 31, 2014 in the tables below include the following: Nuc lear decommissioning trusts reflect the assets of SDG&E’s nuclear decommissioning trusts, 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 com parison to prices from other independent data sources. Equity and certain debt 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 se curity is traded (Level 1). Other debt securities are valued based on yields that are currently available for comparable securities of issuers with similar credit ratings (Level 2). We enter into commodity contracts and interest rate derivatives primaril y as a means to manage price exposures. We may also manage foreign exchange rate exposures using derivatives. We primarily use a market approach with market participant assumptions to value these derivatives. Market participant assumptions include those ab out 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 i nstruments, 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 under “Level 3 Information.” We record commodity derivativ e contracts that are subject to rate recovery as commodity costs that are offset by regulatory account balances and ar e recovered in rates. 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). 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, nor any changes in valuation techniq ues used in recurring fair value measurements. RECURRING FAIR VALUE MEASURES – SEMPRA ENERGY CONSOLIDATED (Dollars in millions) Fair value at September 30, 2015 Level 1 Level 2 Level 3 Netting(1) Total Assets: Nuclear decommissioning trusts: Equity securities $ 588 $ ― $ ― $ ― $ 588 Debt securities: Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies 51 44 ― ― 95 Municipal bonds ― 154 ― ― 154 Other securities ― 205 ― ― 205 Total debt securities 51 403 ― ― 454 Total nuclear decommissioning trusts(2) 639 403 ― ― 1,042 Interest rate and foreign exchange instruments ― 7 ― ― 7 Commodity contracts not subject to rate recovery 31 17 ― 3 51 Commodity contracts subject to rate recovery ― 1 91 15 107 Total $ 670 $ 428 $ 91 $ 18 $ 1,207 Liabilities: Interest rate and foreign exchange instruments $ ― $ 178 $ ― $ ― $ 178 Commodity contracts not subject to rate recovery 8 2 ― (3) 7 Commodity contracts subject to rate recovery ― 67 55 (53) 69 Total $ 8 $ 247 $ 55 $ (56) $ 254 Fair value at December 31, 2014 Level 1 Level 2 Level 3 Netting(1) Total Assets: Nuclear decommissioning trusts: Equity securities $ 655 $ ― $ ― $ ― $ 655 Debt securities: Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies 62 47 ― ― 109 Municipal bonds ― 129 ― ― 129 Other securities ― 207 ― ― 207 Total debt securities 62 383 ― ― 445 Total nuclear decommissioning trusts(2) 717 383 ― ― 1,100 Interest rate and foreign exchange instruments ― 48 ― ― 48 Commodity contracts not subject to rate recovery 28 16 ― (11) 33 Commodity contracts subject to rate recovery ― 1 107 14 122 Total $ 745 $ 448 $ 107 $ 3 $ 1,303 Liabilities: Interest rate and foreign exchange instruments $ ― $ 155 $ ― $ ― $ 155 Commodity contracts not subject to rate recovery 3 9 ― (4) 8 Commodity contracts subject to rate recovery ― 52 ― (36) 16 Total $ 3 $ 216 $ ― $ (40) $ 179 (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. (2) Excludes cash balances and cash equivalents. RECURRING FAIR VALUE MEASURES – SDG&E (Dollars in millions) Fair value at September 30, 2015 Level 1 Level 2 Level 3 Netting(1) Total Assets: Nuclear decommissioning trusts: Equity securities $ 588 $ ― $ ― $ ― $ 588 Debt securities: Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies 51 44 ― ― 95 Municipal bonds ― 154 ― ― 154 Other securities ― 205 ― ― 205 Total debt securities 51 403 ― ― 454 Total nuclear decommissioning trusts(2) 639 403 ― ― 1,042 Commodity contracts not subject to rate recovery ― ― ― 1 1 Commodity contracts subject to rate recovery ― ― 91 14 105 Total $ 639 $ 403 $ 91 $ 15 $ 1,148 Liabilities: Interest rate instruments $ ― $ 44 $ ― $ ― $ 44 Commodity contracts not subject to rate recovery 1 ― ― (1) ― Commodity contracts subject to rate recovery ― 67 55 (53) 69 Total $ 1 $ 111 $ 55 $ (54) $ 113 Fair value at December 31, 2014 Level 1 Level 2 Level 3 Netting(1) Total Assets: Nuclear decommissioning trusts: Equity securities $ 655 $ ― $ ― $ ― $ 655 Debt securities: Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies 62 47 ― ― 109 Municipal bonds ― 129 ― ― 129 Other securities ― 207 ― ― 207 Total debt securities 62 383 ― ― 445 Total nuclear decommissioning trusts(2) 717 383 ― ― 1,100 Commodity contracts subject to rate recovery ― ― 107 12 119 Total $ 717 $ 383 $ 107 $ 12 $ 1,219 Liabilities: Interest rate instruments $ ― $ 47 $ ― $ ― $ 47 Commodity contracts not subject to rate recovery 1 ― ― (1) ― Commodity contracts subject to rate recovery ― 51 ― (36) 15 Total $ 1 $ 98 $ ― $ (37) $ 62 (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. (2) Excludes cash balances and cash equivalents. RECURRING FAIR VALUE MEASURES – SOCALGAS (Dollars in millions) Fair value at September 30, 2015 Level 1 Level 2 Level 3 Netting(1) Total Assets: Commodity contracts not subject to rate recovery $ ― $ ― $ ― $ 1 $ 1 Commodity contracts subject to rate recovery ― 1 ― 1 2 Total $ ― $ 1 $ ― $ 2 $ 3 Liabilities: Commodity contracts not subject to rate recovery $ 2 $ ― $ ― $ (2) $ ― Total $ 2 $ ― $ ― $ (2) $ ― Fair value at December 31, 2014 Level 1 Level 2 Level 3 Netting(1) Total Assets: Commodity contracts subject to rate recovery $ ― $ 1 $ ― $ 2 $ 3 Total $ ― $ 1 $ ― $ 2 $ 3 Liabilities: Commodity contracts not subject to rate recovery $ 2 $ ― $ ― $ (2) $ ― Commodity contracts subject to rate recovery ― 1 ― ― 1 Total $ 2 $ 1 $ ― $ (2) $ 1 (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 Congestion Revenue Rights (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 (Dollars in millions) Three months ended September 30, 2015 2014 Balance as of July 1 $ 42 $ 85 Realized and unrealized (losses) gains (49) 3 Allocated transmission instruments ― 9 Settlements 43 (10) Balance as of September 30 $ 36 $ 87 Change in unrealized gains or losses relating to instruments still held at September 30 $ (8) $ ― Nine months ended September 30, 2015 2014 Balance as of January 1 $ 107 $ 99 Realized and unrealized (losses) gains (103) 9 Allocated transmission instruments 1 10 Settlements 31 (31) Balance as of September 30 $ 36 $ 87 Change in unrealized gains or losses relating to instruments still held at September 30 $ (54) $ ― 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-priced electricity positions are reviewed and compared with market conditions to determine reasonableness. SDG&E expects all costs related to these instruments t o be recoverabl e 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 pr ices published by the California Independent System O perator (CA ISO ) , an objective source. Annual auction prices are published once a year, typically in the middle of November, and remain in effect for the following calendar year. The impact associated with discounting is negligible. Because auction prices a re a less observable input, these instruments are classified as Level 3 . From January 1, 2015 to December 31, 2015, the auction prices range from $(16) per MWh to $8 per MWh at a given location, and from January 1, 2014 to December 31, 2014, the auction pr ices ranged from $(6) per MWh to $12 per MWh at a given location. T he 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 i n a higher (lower) fair value measurement. We summarize CRR volumes in Note 7. Long-term 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 ob servable 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 that range from $24.15 per MWh t o $60.01 per MWh. A significant increase or decrease in market electricity forward prices would result in a significantly higher or lower fair value, respectively. Realized gains and losses associated with CRRs and long-term electricity positions are rec orded in Cost of Electric Fuel and Purchased Power, which is recoverable in rates, on the Condensed Consolidated Statements of Operations. Unrealized gains and losses are recorded as regulatory assets and liabilities and therefore also do not affect earnin gs. Fair Value of Financial Instruments The fair values of certain of our financial instruments (cash, temporary investments, accounts and notes receivable, dividends and accounts payable, s hort-term debt and customer deposits) approximate their carrying amounts. 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 ca sh 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 at September 30, 2015 and December 31, 2014: FAIR VALUE OF FINANCIAL INSTRUMENTS (Dollars in millions) September 30, 2015 Carrying Fair value amount Level 1 Level 2 Level 3 Total Sempra Energy Consolidated: Total long-term debt (1)(2) $ 13,341 $ ― $ 13,693 $ 703 $ 14,396 Preferred stock of subsidiary 20 ― 22 ― 22 SDG&E: Total long-term debt (2)(3) $ 4,557 $ ― $ 4,652 $ 317 $ 4,969 SoCalGas: Total long-term debt (4) $ 2,512 $ ― $ 2,658 $ ― $ 2,658 Preferred stock 22 ― 24 ― 24 December 31, 2014 Carrying Fair value amount Level 1 Level 2 Level 3 Total Sempra Energy Consolidated: Total long-term debt (1)(2) $ 12,347 $ ― $ 12,782 $ 917 $ 13,699 Preferred stock of subsidiary 20 ― 23 ― 23 SDG&E: Total long-term debt (2)(3) $ 4,461 $ ― $ 4,563 $ 425 $ 4,988 SoCalGas: Total long-term debt (4) $ 1,913 $ ― $ 2,124 $ ― $ 2,124 Preferred stock 22 ― 25 ― 25 (1) Before reductions for unamortized discount (net of premium) of $21 million at both September 30, 2015 and December 31, 2014, and excluding build-to-suit and capital lease obligations of $375 million and $310 million at September 30, 2015 and December 31, 2014, respectively. We discuss our long-term debt in Note 6 above and in Note 5 of the Notes to Consolidated Financial Statements in the Annual Report. (2) Level 3 instruments include $317 million and $325 million at September 30, 2015 and December 31, 2014, respectively, related to Otay Mesa VIE. (3) Before reductions for unamortized discount of $10 million and $11 million at September 30, 2015 and December 31, 2014, respectively, and excluding capital lease obligations of $231 million and $234 million at September 30, 2015 and December 31, 2014, respectively. (4) Before reductions for unamortized discount of $7 million and $8 million at September 30, 2015 and December 31, 2014, respectively, and excluding capital lease obligations of $2 million and $1 million at September 30, 2015 and December 31, 2014, respectively. We base the fair value of certain long-term debt and preferred stock on a market approach using quoted market prices for identical or similar securities in thinly-traded markets (Level 2). We value other long-term debt using an income approach based on the present value of estimated future cash flows discounted at rates available for similar securities (Level 3). We provide the fair values for the securiti es held in the nuclear decommissioning trust funds related to SONGS in Note 9 below. |
NUCLEAR PLANT
NUCLEAR PLANT | 3 Months Ended |
Sep. 30, 2015 | |
Notes to Consolidated Financial Statements [Abstract] | |
Nuclear Plant | NOTE 9. SAN ONOFRE NUCLEAR GENERATING STATION (SONGS) SDG&E has a 20-percent ownership interest in SONGS, a nuclear generating facility near San Clemente, California, which ceased operations in June 2013. On June 6, 2013, Southern California Edison Company (Edison), the majority owner and operator of SONGS, notified SDG&E that it had reached a decision to permanently retire SONGS and seek approval from the Nuclear Regulatory Commission (NRC) to start the decommissioning activities for the entire faci lity. SONGS is subject to the jurisdiction of the NRC and the CPUC. SDG&E, and each of the other owners, holds its undivided interest as a tenant in common in the property. Each owner is responsible for financing its share of expenses and capital expendit ures. SDG&E’s share of operating expenses is included in Sempra Energy’s and SDG&E’s Condensed Consolidated Statements of Operations. SONGS Outage and Retirement Background As part of the Steam Generator Replacement Project (SGRP), the steam generators w ere 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 w ear 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. In March 2012, in response to the shutdown of SONGS, the NRC issued a Confi rmatory Action Letter (CAL) which, among other things, outlined the requirements for Edison to meet before the NRC would approve a restart of either of the Units. In October 2012, Edison submitted a restart plan to the NRC proposing to operate Unit 2 at a reduced power level for a period of five months, at which time the Unit would be brought down for further inspection. Edison did not file a restart plan for Unit 3, pending further inspection and analysis of what repairs or modifications would be required to return the Unit to service in a safe manner. The NRC was reviewing the restart plan for Unit 2 proposed by Edison when in May 2013, the Atomic Safety and Licensing Board (ASLB), an adjudicatory arm of the NRC, concluded that the CAL process constituted a de facto license amendment proceeding that was subject to a public hearing. This conclusion by the ASLB resulted in further uncertainty regarding when a final decision might be made on restarting Unit 2. The replacement steam generators were designed and provided by Mitsubishi Heavy Industries, Ltd., Mitsubishi Nuclear Energy Systems, Inc., and Mitsubishi Heavy Industries America, Inc. (collectively MHI). In July 2013, SDG&E filed a lawsuit against MHI seeking to recover damages SDG&E has incurred and wil l incur related to the design defects in the steam generators. In October 2013, Edison instituted arbitration proceedings against MHI seeking damages as well. SDG&E is participating in the arbitration as a claimant and respondent. We discuss these proceedi ngs in Note 11. Settlement Agreement to Resolve the CPUC’s Order Instituting Investigation (OII) into the SONGS Outage (SONGS OII) SONGS OII In November 2012, in response to the outage, the CPUC issued the SONGS OII, pursuant to California Public Utilities ’ Code Section 455.5, which applies to cost recovery issues resulting from long-term outages of operating assets. The SONGS OII consolidated most SONGS outage-related issues into a single proceeding. The SONGS OII, among other things, designated all revenu es associated with the investment in, and operation of, SONGS since January 1, 2012 as subject to refund to customers, pending the outcome of all phases of the proceeding. The SONGS OII proceeding was intended to determine the ultimate recovery of the inve stment in SONGS and the costs incurred since the commencement of this outage, including purchased replacement power costs, which are typically recovered through the Energy Resource Recovery Account (ERRA). Entry Into Settlement Agreement Pursuant to CPUC rules concerning settlements, SDG&E, Edison, The Utility Reform Network (TURN), and the CPUC Office of Ratepayer Advocates (ORA) held a settlement conference in March 2014 to discuss the terms to resolve the SONGS OII, and in April 2014, SDG&E, along with Edison, TURN, the ORA and two other intervenors who joined the Settlement Agreement to the SONGS OII proceeding (collectively, the Settling Parties), filed a Settlement Agreement with the CPUC. On September 5, 2014, the CPUC issued a ruling proposing specific changes that included, as they relate to SDG&E, greater ratepayer benefit from third party cost recoveries and funding of a research program to reduce greenhouse gas emissions at a shareholder cost of $1 million per year for 5 years. On September 23, 2014 , the Settling Parties executed an Amended and Restated Settlement Agreement (Amended Settlement Agreement), which amended the Settlement Agreement to adopt all of the modifications and clarifications requested in the CPUC ruling. On October 9, 2014, the C PUC issued a proposed decision approving the Amended Settlement Agreement, which was adopted by the CPUC as a final decision on November 20, 2014. As approved by the CPUC, the Amended Settlement Agreement constitutes a complete and final resolution of the SONGS OII and related CPUC proceedings regarding the SGRP at SONGS and the related outage and subsequent shutdown of SONGS. This resolution also required the compliance filing referenced below under “Accounting and Financial Impacts.” The Amended Settlemen t Agreement does not affect on-going or future proceedings before the NRC, or litigation or arbitration related to potential future recoveries from third parties (except for the allocation to ratepayers of any recoveries as described below) or proceedings addressing decommissioning activities and costs. In November 2014, in accordance with the Amended Settlement Agreement, SDG&E filed an advice letter seeking authority from the CPUC, among other things, to implement the terms and establish the revenue requi rement in accordance with the Amended Settlement Agreement in rates starting January 1, 2015. In December 2014, the CPUC approved the advice letter and authorized SDG&E to update rates accordingly, subject to revision pending the results of a CPUC review o f the changes to the revenue requirement proposed by SDG&E for consistency with the terms of the approved settlement decision. In March 2015, SDG&E received a final disposition letter from the CPUC confirming that SDG&E’s proposed rate changes were in comp liance with the approved settlement decision. In April 2015, a petition for modification (PFM) was filed with the CPUC by Alliance for Nuclear Responsibility (A4NR), an intervenor in the SONGS OII proceeding, asking the CPUC to set aside its decision appr oving the Amended Settlement Agreement and reopen the SONGS OII proceeding . In June 2015, TURN , a party to the Amended Settlement Agreement , filed a response supporting the A4NR petition. TURN does not question the merits of the Amended Settlement Agreemen t , but is concerned that certain allegations regarding Edison raised by A4NR have undermined the public’s confidence in the regulatory process. SDG&E has responded that TURN’s concerns regarding public perception do not impact the reasonableness of the Ame nded Settlement Agreement and are insufficient to overturn it. SDG&E is unable to determine what actions the CPUC will take , if any, in response to the A4NR PFM. In A ugust 2015 , ORA, also a party to the Amended Settlement Agreement, filed a PFM with the CP UC, withdrawing its support for the Amended Settlement Agreement and asking the CPUC to reopen the SONGS OII proceeding. The ORA does not question the merits of the Amended Settlement Agreement, but is concerned with the CPUC’s approach toward recent disclosur es concerning Edison ex parte communications with the CPUC. SDG&E responded that the ORA’s PFM is insufficient to overturn the Amended Settlement Agreement , because the ORA fails to make a case that the Amended Settlement Agreement is no longer in the public inter est. SDG&E is unable to determine what actions the CPUC will take, if any, in response to the ORA PFM. We discuss the terms of the Amended Settlement Agreement in Note 13 of the Notes to Consolidated Financial Statements in the Annual Report. Accounting an d Financial Impacts Through September 30, 2015, the cumulative after-tax loss from plant closure recorded by Sempra Energy and SDG&E is $127 million, including a reduction in the after-tax loss of $13 million recorded in the first quarter of 2015 based on the CPUC’s approval in March 2015 of SDG&E’s compliance filing and establishment of the SONGS settlement revenue requirement. In the second quarter of 2013, based on an initial assessment of the financial impact of the outcome of the SONGS OII proceeding, SDG&E reported an after-tax loss from plant closure of $119 million. In the first quarter of 2014, after entering into the Settlement Agreement, SDG&E recorded a $9 million increase in the after-tax loss. In the fourth quarter of 2014, based on the complia nce filing regarding SDG&E’s annual revenue requirement and the timing of refunds to ratepayers, SDG&E recorded a $12 million increase to the after-tax loss. The regulatory asset for the expected recovery of SONGS costs, consistent with the Amended Settlement Agreement, is $272 million ($42 million current and $230 million long-term) at September 30, 2015 and is recorded on the Condensed Consolidated Balance Sheets in Other Current Assets and Regulatory Assets Noncurrent, respectively, at Sempra Ener gy, and in Regulatory Assets Current and Other Regulatory Assets Noncurrent, respectively, at SDG&E. Settlement with Nuclear Electric Insurance Limited (NEIL) As we discuss in Note 11, NEIL insures domestic and international nuclear utilities for the cost s associated with interruptions, damages, decontaminations and related nuclear risks. In October 2015, the SONGS co-owners (Edison, SDG&E and the City of Riverside) reached an agreement with NEIL to resolve all of SONGS ’ insurance claims arising out of the failures of the replacement steam generators for a total payment by NEIL of $400 million, SDG&E’s share of which is approximately $80 million. Pursuant to the terms of the SONGS OII Amended Settlement Agreement, the recovery will be allocated 95 percent t o SDG&E’s customers , through ERRA , and 5 percent to SDG&E, after reimbursement of the costs incurred in pursuing the claims. SDG&E will record the recoveries from NEIL during the fourth quarter of 2015 . NRC Proceedings In December 2013, Edison received a f inal NRC Inspection Report that identified a violation for the failure to verify the adequacy of the thermal-hydraulic and flow-induced vibration design of the Unit 3 replacement steam generator. In January 2014, Edison provided a response to the NRC Inspe ction Report stating that MHI, as contracted by Edison to prepare the SONGS replacement steam generator design, was the party responsible for validating the design of the steam generators. In addition, the NRC issued an Inspection Report to MHI containing a Notice of Nonconformance for its flawed computer modeling in the design of the replacement steam generators. Because SONGS has ceased operation, NRC inspection oversight of SONGS will now be continued through the NRC’s Decommissioning Power Reactor Insp ection Program to verify that decommissioning activities are being conducted safely, that spent fuel is safely stored onsite or transferred to another licensed location, and that the site operations and licensee termination activities conform to applicable regulatory requirements, licensee commitments and management controls. Nuclear Decommissioning and Funding As a result of Edison’s decision to permanently retire SONGS Units 2 and 3, Edison has begun the decommissioning phase of the plant. We discuss the process of decommissioning SONGS in Note 13 of the Notes to Consolidated Financial Statements in the Annual Report. In accordance with state and federal requirements and regulations, SDG&E has assets held in trusts, referred to as the Nuclear Decommission ing Trusts (NDT), to fund decommissioning costs for SONGS Units 1, 2 and 3. Decommissioning of Unit 1, removed from service in 1992, is largely complete. The remaining work will be done when Units 2 and 3 are decommissioned. At September 30, 2015, the fair value of SDG&E’s NDT assets was $1.1 billion. 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 Unit s 2 and 3. In February 2014, SDG&E filed a request with the CPUC for such authorization for costs incurred in 2013. In April 2015, SDG&E withdrew its pending request and filed a new request based on updated decommissioning cost information, seeking authori zation to access trust funds for up to $55 million in decommissioning costs incurred in 2013. The CPUC authorized the request in July 2015. In August 2015, SDG&E withdrew $37 million of the authorized amount, $34 million of which will be funded to customer s through the ERRA balancing account. Another $3 million of the amount withdrawn was used to refund regulatory assets and certain costs pursuant to the SONGS OII Settlement Agreement. The remaining $18 million of the CPUC authorization is expected to be wi thdrawn pending satisfactory clarification by the Internal Revenue Service (IRS) that certain spent fuel costs and other costs are eligible decommissioning costs, payable from qualified nuclear decommissioning trusts. We are uncertain as to when such clari fication will be provided. In October 2015, SDG& E file d a request with the CPUC seeking authorization to access trust funds for $3 6 million for SONGS Units 2 and 3 decommiss ioning costs incurred in 2014. If the Commission approves the re quest, SDG&E inten ds to withdraw $2 3 million , which will be funded to customers through the E RRA balancing account or used to refund regulatory assets and certain costs pursuant to the S ONGS OII Settlement Agreement. The remaining $13 million will be withdrawn pending satis factory clarification by th e IRS, as discussed above . SDG&E will continue to use working capital to pay for any SONGS Units 2 and 3 decommissioning costs incurred, and file periodic requests with the CPUC seeking authorization to access funds for reimburs ement from the NDT for incurred decommissioning costs. We discuss the NDT and matters related to its funding and the funding of decommissioning costs by the NDT further in Note 13 of the Notes to Consolidated Financial Statements in the Annual Report. Nuclear Decommissioning Trusts The amounts collected in rates for SONGS’ decommissioning are invested in externally managed trust funds. Amounts held by the trusts are invested in accordance with CPUC regulations. These trusts are presented on the Sempra Energy and SDG&E Condensed Consolidated Balance Sheets at fair value with the offsetting credits recorded in Regulatory Liabilities Arising from Removal Obligations. The following table shows the fair values and gross unrealized gains and losses for the s ecurities held in the NDT: NUCLEAR DECOMMISSIONING TRUSTS (Dollars in millions) Gross Gross Estimated unrealized unrealized fair Cost gains losses value At September 30, 2015: Debt securities: Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies(1) $ 90 $ 5 $ ― $ 95 Municipal bonds(2) 147 7 ― 154 Other securities(2) 214 3 (12) 205 Total debt securities 451 15 (12) 454 Equity securities 212 382 (6) 588 Cash and cash equivalents 18 ― ― 18 Total $ 681 $ 397 $ (18) $ 1,060 At December 31, 2014: Debt securities: Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies $ 103 $ 6 $ ― $ 109 Municipal bonds 121 8 ― 129 Other securities 206 7 (6) 207 Total debt securities 430 21 (6) 445 Equity securities 215 444 (4) 655 Cash and cash equivalents 30 1 ― 31 Total $ 675 $ 466 $ (10) $ 1,131 (1) Maturity dates are 2016-2065. (2) Maturity dates are 2015-2115. 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 (Dollars in millions) Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 Proceeds from sales(1) $ 210 $ 148 $ 431 $ 498 Gross realized gains 18 5 24 9 Gross realized losses (6) (3) (13) (8) (1) Excludes securities that are held to maturity. Net unrealized gains (losses) are included in Regulatory Liabilities Arising from Removal Obligations 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 . We provide additional information about SONGS in Note 11 . |
CALIFORNIA UTILITIES' REGULATOR
CALIFORNIA UTILITIES' REGULATORY MATTERS | 3 Months Ended |
Sep. 30, 2015 | |
Notes to Consolidated Financial Statements [Abstract] | |
Sempra Utilities' Regulatory Matters | NOTE 10. CALIFORNIA UTILITIES' REGULATORY MATTERS We discuss regulatory matters affecting our California Utilities in Note 14 of the Notes to Consolidated Financial Statements in the Annual Report , and provide updates to those discussions and details of any new matters below . JOINT MATTERS CPUC General Rate Case (GRC) The CPUC uses a general rate case proceeding to prospectively set rates sufficient to allow the California Utilities to recover their reasonable cost of operations and maintenance and to provide the opportunity to realize their authorized rates of return on their investment. The California Utilities filed their 2016 General Rate Case (2016 GRC) applications in November 2014. These filings requested revenue requirement increases of $133 million and $256 million for SDG&E an d SoCalGas , respectively, over their 2015 revenue requirements. In February 2015, the CPUC issued a scoping memo setting the schedule for the proceeding, including the issuance of a proposed decision by the end of 2015. In March 2015, the California Utilit ies revised their requests to make various updates and reflect the impact of the Tax Increase Prevention Act signed into law in December 2014 . At SoCalGas , this resulted in a reduction of $10 million compared to its original request, or a total revenue req uirement in 2016 of $ 2.342 billion . This is an increase of $246 million or 12 percent over 2015 , excluding the impact of the 2015 revenue requirement increase discussed below under “ SoCalGas Matters — Increase to CPUC-Authorized Annual Revenue Requirement. ” At SDG&E, the March 2015 revised request result ed in a reduction of $6 million compared to its original request , or a total revenue requirement in 2016 of $1.905 billion . This is an increase of $111 million or 6 percent over 2015. Th is increase includes an adjustment of $16 million to the comparable 2015 estimated revenue requirement since the November 2014 filings. In September 2015, the California Utilities filed settlement agreement s with the CPUC that resolve all material matters related to the proce eding, except for the revenue requirement implications of certain income tax benefits associated with flow-through repair allowance deductions, discussed below. The settlement agreements are with eight of eleven intervening parties. For SoCalGas , the settl ement proposes a reduction of $133 million compared to its original request, or a total revenue requirement in 2016 of $ 2 . 219 billion . This is an increase of $1 22 million or 6 percent over 2015. For SDG&E, the settlement proposes a reduction of $100 millio n compared to its original request (as revised), or a total revenue requirement in 2016 of $1. 811 billion . This is an increase of $17 million , or one percent over 2015. The filed settlement agreements also call for attrition adjustments of 3.5 percent for both 2017 and 2018. The California Utilities also filed a separate agreement, reached with ORA, proposing that a fourth year (2019) be added to the GRC period, with a revenue requirement increase of 4.3 percent over 2018. The settlement agreement s describ ed above exclude a proposal that, for both SDG&E and SoCalGas , certain intra-rate case income tax benefits should be, in effect, refunded and passed to ratepayers. We believe th e proposed treatment would violate and contradict long standing rate making and income tax policy, and would represent a material departure from historical practice. Th e proposal recommends that the CPUC adjust SDG&E’s rate base by $93 million and SoCalGas ’ rate base by $92 million, and additionally reduce both utilities’ revenue req uirements by amounts currently being tracked in tax memorandum accounts for the year 2 015. At September 30, 2015, the pretax balance s tracked in these memorandum accounts total $46 million for SoCalGas and $34 million for SDG&E. If this proposal is adopte d, the outcome would reduce the revenue requirement amounts agreed to in the respective settlement agreements described above . We anticipate all matters to be resolved with the final resolution of the 2016 GRC. We expect t he CPUC to issue a draft decision in the proceeding in the first quarter of 2016. Natural Gas Pipeline Operations Safety Assessments In June 2014, the CPUC issued a final decision in the Triennial Cost Allocation Proceeding (TCAP) addressing SDG&E’s and SoCalGas ’ Pipeline Safety Enhancement Plan (PSEP) . Specifically, the decision determined the following for Phase 1 of the program : approved the utilities’ model for implementing PSEP; approved a process, including a reasonableness review, to determine the amount that the utilities will be authorized to recover from ratepayers for t he interim costs incurred through the date of the final decision to implement PSEP, which is recorded in the regulatory accounts authorized by the CPUC; approved balancing account treatment, subject to a reasonableness review, for incremental costs yet to be incurred to implement PSEP; and established the criteria to determine the amounts that would not be eligible for cost recovery, including: certain costs incurred or to be incurred searching for pipeline test records, the cost of pressure testing pipel ines installed after July 1, 1961 for which the company has not found sufficient records of testing, and any undepreciated balances for pipelines installed after 1961 that were replaced due to insufficient documentation of pressure testing. As a result of this decision, SoCalGas recorded an after-tax earnings charge of $5 million in 2014 for costs incurred in prior periods for which SoCalGas was disallowed recovery. After taking the amounts disallowed for recovery into consideration, as of September 30, 20 15, SDG&E and SoCalGas have recorded PSEP costs of $7 million and $153 million, respectively, in the CPUC-authorized regulatory account. In regard to requesting recovery from customers for PSEP costs incurred and recorded in accordance with the TCAP decisi on, SDG&E and SoCalGas are authorized to file an application with the CPUC for recovery of such costs up to the date of the TCAP decision and then annually for costs incurred through the end of each calendar year beginning with the period ending December 3 1, 2015. SoCalGas and SDG&E currently expect to file such applications no later than the second quarter of the year following and would expect a decision from the CPUC approximately 12 to 18 months following the date of the application (i.e., a decision on the recovery of costs recorded in the PSEP regulatory accounts as of December 31, 2015 would be expected by mid-2017). In October 2014, SDG&E and SoCalGas filed a petition for modification with the CPUC requesting authority to begin to recover PSEP costs from customers in the year in which the costs are incurred, subject to refund pending the results of a reasonableness review by the CPUC, instead of in a subsequent year. This request is pending at the CPUC. In December 2014, SDG&E and SoCalGas filed an a pplication with the CPUC for recovery of $0.1 million and $46 million, respectively, in costs recorded in the regulatory account through June 11, 2014. In June 2015, SDG&E and SoCalGas agreed to remove certain projects from the filing and defer their revie w to future proceedings and, as a result, are now requesting recovery of $0.1 million and $26.8 million, respectively. In August 2015, the ORA, TURN and the Southern California Generation Coalition (SCGC) served testimony to the CPUC that recommended disal lowances related to completed projects, as well as facilities build-out costs, de-scoped projects, and project management and consulting costs. The ORA’s recommended disallowance would result in an $11.1 million decrease to SoCalGas ’ original recovery appl ication of $26.8 million, to $15.7 million. The disallowance recommended by TURN and SCGC would result in a $2.3 million decrease to SoCalGas ’ original recovery application of $26.8 million, to $24.5 million. In August 2015, the California Utilities also p rovided testimony to the CPUC, contesting the proposed disallowances. We expect a decision on this application in the first half of 2016. In July 2014, the ORA and TURN filed a joint application for rehearing of the CPUC’s June 2014 final decision. The OR A and TURN alleged that the CPUC made a legal error in directing that ratepayers, not shareholders, be responsible for the costs associated with testing or replacing transmission pipelines that were installed between January 1, 1956 and July 1, 1961 for wh ich the California Utilities do not have a record of a pressure test. In November 2014, the CPUC denied the ORA and TURN request for rehearing of the decision adopting the PSEP. In December 2014, the ORA and TURN sought rehearing of the CPUC’s decision on rehearing. In late December 2014, SoCalGas and SDG&E filed their opposition to this second application for rehearing, and are continuing to implement PSEP in accordance with the June 2014 CPUC decision. In March 2015, the CPUC issued a decision denying the ORA ’s and TURN’s second request for rehearing , but keeping the record in the proceeding open to admit additional evidence on the limited issue of pressure testing of pipelines installed between January 1, 1956 and July 1, 1961 . As part of this review, the CPUC will allow parties to submit additional evidence relevant to this narrow issue to ensure a complete record , with no additional discovery allowed . The ORA and TURN filed their responses on May 1, 2015. In October 2015, the CPUC issued a proposed decis ion finding that ratepayers should not bear the costs associated with pressure testing subject pipelines, or, if replaced, ratepayers should bear neither the average cost of pressure testing nor the undepreciated balance of abandoned pipeline. At September 30, 2015, SoCalGas and SDG&E estimate amounts related to these costs to be approximately $5 million and $3 million, respectively . Southern Gas System Reliability Project In December 2013, SoCalGas and SDG& E filed a joint application with the CPUC seeking authority to recover the full cost of the Southern Gas System Reliability Project. Also known as the North-South Gas Project, the project will enhance reliability on the southern portions of the California Utilities’ integrated natural gas transmission system (Southern System). The estimated cost of the project, as originally filed, is between $800 million to $850 million. As originally proposed, the project consisted of three components: 1) constructing an approximately 60-mile, 36-inch natural gas transmission pipeline between the SoCalGas Adelanto compressor station and the Moreno pressure limiting station; 2) upgrading the Adelanto compressor station; and 3) constructing an approximately 31-mile, 36-inch pipeline from the Moreno pressure limiting station to a pressure limiting station in Whitewater. In November 2014, the California Utilities revised the scope of the proposed project to only include connecting the Adelanto compressor station and Moreno pres sure limiting station with approximately 65 miles of 36-inch pipeline and upgrading the Adelanto compressor station, and eliminating the Moreno-Whitewater pipeline. In March 2015, the CPUC issued a revised scoping ruling establishing a schedule, directing that the Moreno-Whitewater portion of the original project be excluded from scope and that any other future projects would be addressed separately. The estimated cost of the revised project, including updated cost estimates, remains unchanged from the orig inal cost estimate of between $800 million and $850 million, while providing comparable benefits for customers. If approved by the CPUC and subject to environmental permitting, g iven the revised project scope and updated schedule in this proceeding, the pr oject could commence construction in 2017 and be in service by the end of 2019. Pipeline Safety & Reliability Project In September 2015, SDG&E and SoCalGas filed an application with the CPUC seeking authority to recover the full cost of the Pipeline Safety & Reliability Project. The project involves construction of an approximately 47-mile, 36-inch natural gas transmission pipeline in San Diego County from SDG&E’s existing Rainbow Metering Station near the Riverside County line to Marine Corp s Air Station (MCAS) Miramar. We estimate the project costs to be $600 million and that it will take approximately 24 to 36 months to construct af ter CPUC approval is received, depending on the timing of other approvals . The new pipeline will implement pipeline safety requirements and modernize the system ; improve system reliability and resiliency by minimizing dependen ce on a single pipeline; and enhance operational flexibility to manage stress conditions by increasing system capacity . The project is a part of the PSEP work described above. The final reso lution of this project will help define the scope of work to be completed under PSEP . Utility Incentive Mechanisms The CPUC applies performance-based measures and incentive mechanisms to all California investor-owned utilities, under which the California Utilities have earnings potential above authorized base margins if they achieve or exceed specific performance and operating goals. Natural Gas Procurement In February 2015, the CPUC issued a final decision approving SoCalGas ’ application for a gas cost incentive mechanism (GCIM) award of $13.7 million for natural gas procured for its core customers during the 12-month period ended March 31, 2014. SoCalGas recorded this award in the first quarter of 2015. In June 2015, SoCalGas filed an application for a GCIM award of $7.25 million for natural gas procured for its core customers during the 12-month period ended March 31, 2015. We expect a CPUC decision in the first half of 2016. Energy Efficiency Programs In September 2015, the CPUC issued a decision gra nting two rehearing requests filed by the ORA and TURN regarding the utility incentive awards for SDG&E and SoCalGas , as well as Edison and Pacific Gas and Electric Company, for program years 2006 through 2008, which totaled $16.2 million for SDG&E and $17.3 m illion for SoCalGas . The decision directs that the rehearing ensure that the incentive awards granted were just and reasonable and based on calculations verified by the CPUC, or otherwise refunded to customers. SDG&E MATTERS SONGS We discuss regulatory and other matters related to SONGS in Note 9. 2007 Wildfire Cost Recovery In September 2015, SDG&E filed an application with the CPUC requesting rate recovery of an estimated $379 million in costs related to the October 2007 wildfires that have been recorded to the Wildfire Expense Memorandum Account (WEMA). These costs represent a p ortion of the estimated total of $2.4 billion in costs and legal fees that SDG&E has incurred to resolve third-party damage claims arising from the October 2007 wildfires. The requested amount of $379 million is the net estimated cost incurred by SDG&E after deductions for insurance reimbursement ($1.1 billion), third party settl ement recoveries ($824 million) and allocations to Federal Energy Regulatory Commission (FERC) -jurisdictional rates ($ 80 million), and refle cts a voluntary 10 percent shareholder contribution applied to the net WEMA balance ($42 million). In a prior decision, the CPUC granted SDG&E authority to record its costs associated with the October 2007 wildfires in the WEMA and to seek rate recovery su bject to a reasonableness review of the costs. SDG&E requested a CPUC decision by the end of 201 6 and is proposing to recover the costs in rates over a six- to ten -year period. We provide additional information about 2007 wildfire litigation costs and thei r recovery in Note 11. P ower Procurement and Resource Planning Cleveland National Forest Transmission Projects SDG&E filed an application with the CPUC in October 2012 for a permit to construct various transmission line replacement projects in and around the Cleveland National Forest (CNF). The proposed projects will replace and fire-harden five existing transmission lines at an estimated cost of between $400 million and $450 million, a s originally proposed. As directed by the CPUC, SDG&E filed an amended application in June 2013 to provide notice of certain alternatives proposed by the United States Forest Service (USFS) in connection with SDG&E’s request for a Master Special Use Permit (MSUP). USFS approval of the MSUP will establish land rights and conditions for SDG&E’s continued operation and maintenance of facilities located within the CNF. CPUC approval is not required for the MSUP, even though construction of the projects is subje ct to review by both the USFS and CPUC. A final environmental impact report (EIR/EIS), developed jointly by the CPUC and USFS, was issued in July 2015 identifying alternatives to the proposed project which, if approved by both the CPUC and USFS, would resu lt in an increase to the estimated cost of the projects. SDG&E currently expects separate USFS and CPUC decisions on the transmission projects in the first half of 2016 and then expects the various phases of this project to be placed in service starting in 2016 and continuing through the end of the project in 2019 . Sycamore- Peñasquitos Transmission Project In March 2014, the CAISO selected SDG&E, as a result of a competitive bid process, to construct the Sycamore- Peñasquitos 230-kilovolt (kV) transmission project, which will provide a 16.7-mile transmission connection between SDG&E’s Sycamore Canyon and Peñasquitos substations. In July 2014, the CPUC notified SDG&E that the application requesting a Certificate of Public Conve nience and Necessity (CPCN) to construct the line, which was filed with the CPUC in April 2014, is complete. The estimated $120 million to $150 million project , as originally proposed , was identified by the CAISO and a state task force as necessary to ensu re grid reliability given the closure of SONGS. The project will also serve to strengthen renewable energy infrastructure in the region. In October 2014, SDG&E filed a request with FERC seeking, among other things, a 100 basis point return on equity (ROE) adder for this project. In April 2015, FERC issued an order granting SDG&E’s request for 100 percent abandoned plant cost recovery , but denying an ROE adder for the project. In September 2015, a draft environmental report was issued recommending an environ mental ly superior alternative that would underground more of the project than originally proposed. SDG&E estimates that the cost of the recommended alternative is $250 million to $300 million . SDG&E expects a CPUC decision o n the project in the first half of 2016, with the line expected to be in service in mid-2017. South Orange County Reliability Enhancement SDG&E filed an application with the CPUC in May 2012 requesting a CPCN for the South Orange County Reliability Enhancement project . A draft environmental report was issued in the first quarter of 2015. In August 2015, portions of the draft environmental report were recirculated for public comment on additional project alternatives. SDG&E expects a final CPUC decision on the estimated $350 million to $400 mi llion project in the first half of 2016. As the project is planned in phases, SDG&E currently expects the entire project to be in service in 2020. Electric Vehicle Charging Program In April 2014, SDG&E filed a proposal with the CPUC requesting approval of a program under which SDG&E would build and own a total of 5,500 electric vehicle charging stations at an estimated cost of $103 million, of which $59 million is capital investment . Under the program, SDG&E will provide an hourly Vehicle-to-Grid Integration (VGI) rate that will help incent participants to charge their vehicles during times of the day that benefit the power grid. In June 2015, SDG&E and si x teen other parties representing the electric vehicle charging industry, auto manufacturers, labor, and environmental and social justice organizations filed a settlement agreement proposing a modified program that still allows SDG&E to build and own a tota l of 5,500 charging stations. The settlement is opposed by certain consumer advocates and other parties. SDG&E expects a CPUC decision in the fourth quarter of 2015. Distribution Resource Plan In July 2015, SDG&E filed an application with the CPUC submitting its Distribution Resource Plan . Distributed energy resources (DER) are typically smaller power sources, including advanced renewable and energy storage technologies, that are connected to the distribution grid and located near load centers. The distribution resource plan sets out a planni ng and investment framework comprised of three basic categories: 1) capital investments that can be potentially deferred or replaced by DER solutions; 2) capital investment needed to accommodate higher DER deployment levels; and 3) traditional distribution investments that cannot be deferred or displaced by DER. SDG&E’s planning framework would be used to determine future capital investment needs, which would then be addressed through its GRC process. The Distribution Resource Plan also proposes a number of demonstration projects and describes potential projects and investment that would support higher DER deployment. SDG&E expects a CPUC decision in the first half of 2016. Sunrise Powerlink Electric Transmission Line In August 2015, SDG&E filed a petition with the CPUC requesting that it revise and confirm the project cost cap for the Sunrise Powerlink, a 500-kV electric transmission line between the Imperial Valley and the San Diego region that was energized and placed in service in June 2012. While post-energization construction activities for the project were completed in 2013, certain matters relating to outstanding claims were not resolved until the first quarter of 201 5. The filing requests CPUC approval of the final expenditure report for the project and the proposed revisions to the total project cost cap. As evidenced in the final report, and summarized in the table below, actual expenditures for the project totaled $1,887.4 million (in 2012 dollars, on a net present value basis) , which exceeds the total project cost cap approved by the CPUC in 2008 (CPUC Approval Decision) by $4.4 million. SUNRISE POWERLINK ELECTRIC TRANSMISSION LINE – PROPOSED REVISIONS TO TOTAL PROJECT COST CAP (Dollars in millions) Total Construction costs Undergrounding on Mitigation (2012 dollars, net and AFUDC Alpine Blvd. and monitoring costs present value basis) Final status report $ 1,490.9 $ 11.7 $ 384.8 $ 1,887.4 2008 CPUC approval decision 1,594.2 91.0 197.8 1,883.0 Difference $ (103.3) $ (79.3) $ 187.0 $ 4.4 Subsequent to the required approval s of the U.S. Department of Interior, Bureau of Land Management (BLM) in January 2009 and the USFS in July 2010 , which formed the basis of the CPUC Approval Decision summarized above, the CPUC’s Energy Division and the federal agencies published the Sunrise Final Mitigation Monitoring, Compliance, and Reporting Program (MMCRP). The MMCRP increased the amount of required mitigation activities and costs by $187 million. Off-setting this cost, in part, was a reduction in th e total mileage of undergrounding on Alpine Boulevard by approx imately two miles. The terms of the CPUC Approval Decision contemplate the potential reduction in undergrounding mileage at an estimated $11 million per one quarter mile. The CPUC Approval Deci sion did not anticipate the changes in monitoring and mitigation costs. In its petition, SDG&E proposes that the applicable total cost cap be revised and confirmed at the amount of $1,887.4 billion. This amount will be the basis used in SDG&E’s FERC-regula ted transmission rates. SDG&E expects a CPUC decision on the petition in 2016. SOCALGAS MATTERS Triennial Cost Allocation Proceeding (TCAP) – Adoption of Seasonal Factors The TCAP decision issued by the CPUC in June 2014 for SoCalGas included, among other matters, the requirement for SoCalGas to apply seasonal factors throughout the year to SoCalGas ’ annual authorized revenue for its core natural gas customers effective January 1, 2015. Core customers are primarily residential and small commercial and industrial customers. The seasonal factors adopted are based on the core demand forecast provided by SoCalGas in the TCAP application. Prior to this decision, this annual authorized revenue was recognized ratably over the year. While this “ seasonalization ” will not impact SoCalGas ’ total calendar year revenue or earnings for 2015 or beyond, and does not change the annual total authorized revenue or our earnings from that revenue, it will cause variability in revenue and earnings from quarter to quarter. We expect that as a result of applying the seasonal factors during interim periods to the annual author ized revenue requirement, the core natural gas customer authorized revenue recognized in the first and fourth quarters of each year beginning with 2015 will be higher (approximately 34 percent in the first quarter and 29 percent in the fourth quarter) than that recognized in the second and third quarters of each year (approximately 21 percent in the second quarter and 16 percent in the third quarter). This compares to recognizing 25 percent of the annual authorized revenue in each quarter in prior years. As a result, beginning in 2015, substantially all of SoCalGas ’ annual earnings will be recognized in the first and fourth quarters of the year. Seasonalization will not impact interim period cash flows or customers’ bills. However, it should reduce the inte rim period variability in regulatory balancing accounts, as we expect customer billings to more closely align with interim period revenue recognition. This seasonalization is consistent with SDG&E’s natural gas and power distribution authorized revenue tre atment. The CPUC regulatory framework authorizes SoCalGas to recover the actual cost of natural gas procured and delivered to its core customers in rates substantially as incurred. The regulatory framework also permits SoCalGas to recover its cost of opera tions, including depreciation of its fixed assets, in authorized revenue based on estimated annual natural gas demand forecasts approved in the TCAP, and any difference between actual gas demand and the annual natural gas demand approved in the TCAP is rec overed in authorized revenue in the subsequent year. This design, commonly known as “decoupling,” is intended to minimize any impact on SoCalGas ’ earnings of changes in the cost of natural gas procured and any variability in customer demand for natural gas . The adoption of applying seasonal factors to authorized annual revenue requirement for interim periods does not change the application o f decoupling . Increase to CPUC-Authorized Annual Revenue Requirement In July 2011, SoCalGas updated its testimony in the 2012 GRC to reflect the impact of the extension of temporary bonus depreciation by the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 ( 2010 T ax A ct ). The 2010 Tax Act ’s extension of bonus depr eciation for U.S. federal income tax purposes for years 2010 through 2012 resulted in significant additional tax depreciation deductions. These additional deductions generated U.S. federal net operating losses (NOLs) and the creation of a n NOL-based deferr ed tax asset. The 2012 GRC decision denied recovery of any return associated with the NOL-based deferred tax asset unless an IRS Private Letter Ruling ( PLR ) was obtained, at which point SoCalGas w ould be authorized to file an advice letter seeking an incre ase to its revenue requirement. In February 2015, the IRS issued a PLR that agreed with SoCalGas ’ position that the denial of any return on the NOL-based deferred tax asset was a viola tion of tax normalization rules. In March 2015, SoCalGas filed an advice letter to provide the PLR to the CPUC and request an increase to its authorized GRC revenue requirement for 2012 through 2015 to comply with the normalization requirements as interpreted by the IRS in the PLR. I n April 2015, the CPUC approved SoCalGas ’ ad vice letter. The approved increases to the pretax annual revenue requirement s are $6.4 million for 2012, $6.3 million for 2013, $6.4 million for 2014 and $6.6 million for 2015. The resulting increase to after-tax earnings of an aggregate of $11.3 million f or years 2012 through 2014 and $1.4 million and $0.8 million related to the first and second quarters of 2015, respectively, was recorded in the second quarter of 2015. The amount recorded in the third quarter of 2015 was $0.6 million after tax, and the re maining 2015 after-tax earnings of $1.1 million resulting from this revenue increase will be recognized in the fourth quarter of 2015 . |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Sep. 30, 2015 | |
Notes to Consolidated Financial Statements [Abstract] | |
Commitments and Contingencies | NOTE 11. 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 material ly 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 September 30, 2015, Sempra Energy’ s accrued liabilities for material legal proceedings, including associated legal fees and costs of litigation, on a consolidated basis, were $52 million. At September 30, 2015, accrued liabilities for material legal proceedings for SDG&E and SoCalGas were $27 million and $13 million, respectively. SDG&E 2007 Wildfire Litigation In October 2007, San Diego County experienced several catastrophic wildfires. Reports issued by the California Department of Forestry and Fire Protection (Cal Fire) concluded that two of these fires (the Witch and Rice fires) were SDG&E “power line caused” and that a third fire (the Guejito fire) occurred when a wire securing a Cox Communications’ (Cox) fiber optic cable came into contact with an SDG&E power line “causing an arc and starting the fire.” A September 2008 staff repor t issued by the CPUC’s Consumer Protection and Safety Division, now known as the Safety and Enforcement Division, reached substantially the same conclusions as the Cal Fire reports, but also contended that the power lines involved in the Witch and Rice fir es and the lashing wire involved in the Guejito fire were not properly designed, constructed and maintained. In April 2010, proceedings initiated by the CPUC to determine if any of its rules were violated were settled with SDG&E’s payment of $14.75 million . Numerous parties sued SDG&E and Sempra Energy in San Diego County Superior Court seeking recovery of unspecified amounts of damages, including punitive damages, from the three fires. They asserted various bases for recovery, including inverse condemnatio n based upon a California Court of Appeal decision finding that another California investor-owned utility was subject to strict liability, without regard to foreseeability or negligence, for property damages resulting from a wildfire ignited by power lines . SDG&E has resolved almost all of these lawsuits. One case remains subject to a damages-only trial, where the value of any compensatory damages resulting from the fires will be determined. Two appeals are pending after judgment in the trial court. SDG&E’s s ettled claims and defense costs have exceeded its $1.1 billion of liability insurance coverage for the covered period and the $824 million recovered from third party contractors and Cox. SDG&E has settled all of the approximately 19,000 claims brought by h omeowner insurers for damage to insured property relating to the three fires. Under the settlement agreements, SDG&E agreed to pay 57.5 percent of the approximately $1.6 billion paid or reserved for payment by the insurers to their policyholders and receiv ed an assignment of the insurers’ claims against other parties potentially responsible for the fires. Through September 30, 2015, SDG&E has expended $496 million in excess of amounts covered by insurance and amounts recovered from third parties to pay for the settlement of wildfire claims and related costs. The wildfire litigation also includes claims of approximately 6,500 non-insurer plaintiffs for damage to uninsured and underinsured structures, business interruption, evacuation expenses, agricultural da mage, emotional harm, personal injuries and other losses. SDG&E has now resolved all but one of these claims for a total of approximately $1.3 billion. 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 establishes reserves for the wildfire litigation as information becomes available and amounts are estimable. SDG&E has con cluded that it is probable that it will be permitted to recover in rates a substantial portion of the costs incurred to resolve wildfire claims in excess of its liability insurance coverage and the amounts recovered from third parties. Accordingly, at Sept ember 30, 2015, Sempra Energy and SDG&E have recorded assets of $362 million in Other Regulatory Assets (long-term) on their Condensed Consolidated Balance Sheets, including $359 million related to CPUC-regulated operations, which represents the amount sub stantially equal to the aggregate amount it has paid and reserved for payment for the resolution of wildfire claims and related costs in excess of its liability insurance coverage and amounts recovered from third parties. On September 25, 2015, SDG&E filed an application with the CPUC seeking authority to recover these costs, as we discuss in Note 10. Recovery of the regulatory assets related to the wildfire reserves will require future regulatory approval. SDG&E will continue to assess the likelihood, amou nt and timing of such recovery in rates. Should SDG&E conclude that recovery in rates is no longer probable, SDG&E will record a charge against earnings at the time such conclusion is reached. If SDG&E had concluded that the recovery of regulatory assets r elated to CPUC-regulated operations was no longer probable or was less than currently estimated at September 30, 2015, the resulting after-tax charge against earnings would have been up to approximately $213 million. A failure to obtain substantial or full recovery of these costs from customers, or any negative assessment of the likelihood of recovery, would likely have a material adverse effect on Sempra Energy’s and SDG&E’s results of operations and cash flows. We provide additional information about excess wildfire claims cost recovery and related CPUC actions in Note 14 of the Notes to Consolidated Financial Statements in the Annual Report and discuss how we assess the probability of recovery of our regulatory assets in Note 1 of the Notes to Consolidated Financial Statements in the Annual Report. Smart Meters Patent Infringement Lawsuit In October 2011, SDG&E was sued by a Texas design and manufacturing company in Federal District Court, Southern District of California, and later transferred to the Federal District Court, Western District of Oklahoma, alleging that SDG&E’s recently installed smart meters infringed certain patents. The meters were purchased from a third party vendor that has agreed to defend and indemnify SDG&E. The lawsuit seeks injunctive relief and recovery of unspecified amounts of damages . Lawsuit Against Mitsubishi Heavy Industries, Ltd. On July 18, 2013, SDG&E filed a lawsuit in the Superior Court of California in the County of San Diego against Mitsubishi Heavy Industries, Ltd., Mitsubishi Nuclear Energy Systems, Inc., and Mitsubishi Heavy Industries America, Inc. (collectively MHI). The lawsuit seeks to recover damages SDG&E has incurred and will incur related to the design defects in the steam generators MHI provided to the SONGS nuclear power plant. The lawsuit asserts a number of causes of action, including fraud, based on the repr esentations MHI made about its qualifications and ability to design generators free from defects of the kind that resulted in the permanent shutdown of the plant and further seeks to set aside the contractual limitation of damages that MHI has asserted. On July 24, 2013, MHI removed the lawsuit to the United States District Court for the Southern District of California and on August 8, 2013, MHI moved to stay the proceeding pending resolution of the dispute resolution process involving MHI and Edison arisin g from their contract for the purchase and sale of the steam generators. On October 16, 2013, Edison initiated an arbitration proceeding against MHI seeking damages stemming from the failure of the replacement steam generators. In late December 2013, MHI answered and filed a counter claim against Edison. On March 14, 2014, MHI’s motion to stay the United States District Court proceeding was granted with instructions that require the parties to allow SDG&E to participate in the ongoing Edison/MHI arbitration . As a result, SDG&E is now participating in the arbitration as a claimant and respondent . Investment in Wind Farm In 2011, the CPUC and FERC approved SDG&E’s estimated $285 million tax equity investment in a wind farm project and its purchase of renewable energy credits from that project. SDG& E’s contractual obligations to both invest in the Rim Rock wind farm and to purchase renewable energy credits from the wind farm under the power purchase agreement are subject to the satisfaction of certain conditions which, if not achieved, would allow SD G&E to terminate the power purchase agreement and not make the investment. In December 2013, SDG&E received a closing notice from the project developer indicating that all such conditions had been met. SDG&E responded to the closing notice asserting that t he contractual conditions had not been satisfied. On December 19, 2013, SDG&E filed a complaint against the project developer in San Diego Superior Court, asking that the court determine that SDG&E is entitled to terminate both the investment contract and the power purchase agreement due to the project developer’s failure to satisfy certain conditions. The project developer filed a separate complaint against SDG&E in Montana state court asking that court to determine that SDG&E breached the investment contr act and the power purchase agreement, and asking for several categories of relief, including requiring SDG&E to invest in the project, requiring SDG&E to continue performing under the power purchase agreement, and payment of damages. On January 27, 2014, the Montana court ordered SDG&E to continue making payments under the power purchase agreement pending a hearing on the project developer’s preliminary injunction motion. On March 14, 2014, SDG&E notified the project developer that the investment agreement expired by its own terms because a closing had not occurred by that date. The project developer is disputing SDG&E’s position. On March 28, 2014, SDG&E filed an amended complaint against the project developer in San Diego seeking damages and declaratory r elief that SDG&E was entitled to terminate the power purchase agreement and to permit the investment agreement to expire. On April 25, 2014, the Montana court granted the project developer’s preliminary injunction motion to prevent SDG&E from terminating t he power purchase agreement on the grounds that the project developer would be irreparably harmed if the payments were not made while the parties’ respective rights were being determined in the litigation. The court did not rule on the merits of the partie s’ claims. On July 18, 2014, the Montana Supreme Court determined that the parties’ contractual agreement to resolve any disputes in San Diego was mandatory, and ordered that the Montana action be dismissed. The San Diego court has scheduled a trial in Ja nuary 2016. Concluded Matter In February 2011, opponents of the Sunrise Powerlink, a 500-kV electric transmission line between the Imperial Valley and the San Diego region that was energized and placed in service in June 2012, filed a lawsuit in Sacramento County Superior Court against the State Water Resources Control Board and SDG&E alleging that the water quality certification issued by the Board under the Federal Clean Water Act violated the California Environmental Quality Act. The Superior Court denied the plaintiffs’ petition in July 2012, and the plaintiffs appealed. On May 19, 2015 the California Court of Appeals affirmed the lower court’s decision and, on June 16, 2015, denied plaintiffs’ request for rehearing. Plainti ffs did not seek review by the California Supreme Court within the prescribed time, so the Court of Appeals decision is final. SoCalGas SoCalGas , along with Monsanto Co., Solutia, Inc., Pharmacia Corp. and Pfizer, Inc., are defendants in seven Los Angeles County Superior Court lawsuits filed beginning in April 2011 seeking recovery of unspecified amounts of damages, including punitive damages, as a result of plaintiffs’ exposure to PCBs (polychlorinated biphenyls). The lawsuits allege plaintiffs were exposed to PCBs not only through the food chain and other various sources but from PCB-contaminated natural gas pipelines owned and operated by SoCalGas . This contamination allegedly caused plaintiffs to dev elop cancer and other serious illnesses. Plaintiffs assert various bases for recovery, including negligence and products liability. SoCalGas has settled five of the seven lawsuits for an amount that is not significant. Sempra Mexico Permit Challenges and Property Disputes Sempra Mexico has been engaged in a long-running land dispute relating to property adjacent to its Energía Costa Azul LNG terminal near Ensenada, Mexico. Ownership of the adjacent property is not required by any of the environmental or other regulatory permits issued for the operation of the terminal. A claimant to the adjacent property has nonetheless asserte d that his health and safety are endangered by the operation of the facility, and filed an action in the Federal Court challenging the permits. In February 2011, based on a complaint by the claimant, the municipality of Ensenada opened an administrative pr oceeding and sought to temporarily close the terminal based on claims of irregularities in municipal permits issued six years earlier. This attempt was promptly countermanded by Mexican federal and Baja California state authorities. No terminal permits or operations were affected as a result of these proceedings or events and the terminal has continued to operate normally. In the second quarter of 2014, the municipality of Ensenada dismisse d the administrative proceeding. In the second quarter of 2015, the Administrative Court of Baja California confirmed the municipality of Ensenada’s ruling and dismissed the proceeding. Sempra Mexico expects additional Mexican court proceedings and governmental actions regarding the claiman t’s assertions as to whether the terminal’s permits should be modified or revoked in any manner. The claimant also filed complaints in the federal Agrarian Court challenging the refusal of the Secretaría de la Reforma Agraria (now the Secretaría de Desarr ollo Agrario , Territorial y Urbano , or SEDATU) in 2006 to issue a title to him for the disputed property. In November 2013, the Agrarian Court ordered that SEDATU issue the requested title and cause it to be registered. Both SEDATU and Sempra Mexico have c hallenged the rulings. Sempra Mexico expects additional proceedings regarding the claims, although such proceedings are not related to the perm it challenges referenced above. The property claimant also filed a lawsuit in July 2010 against Sempra Energy in Federal District Court in San Diego seeking compensatory and punitive damages as well as the earnings from the Energía Costa Azul LNG terminal based on his allegations that he was wrongfully evicted from the adjacent property and that he has been harmed by other allegedly improper actions. In September 2015, the Court granted Sempra Energy’s motion for summary judgment and closed the case. In October 2015, the claimant filed a notice of appeal of the summary judgment and an earlier order dismissing certain of his causes of action. Additionally, several administrative challenges are pending in Mexico before the Mexican environmental pro tection agency (SEMARNAT) and the Federal Tax and Administrative Courts seeking revocation of the environmental impact authoriz ation (EIA) issued to Energía Costa Azul in 2003. These cases generally allege that the conditions and mitigation measures in the EIA are inadequate and challenge findings that the activities of the terminal are consistent with regional development guideli nes. The Mexican Supreme Court decided to exercise jurisdiction over one such case, and in March 2014, issued a resolution denying the relief sought by the plaintiff on the grounds its action was not timely presented. A similar administrative challenge see king to revoke the port concession for our marine operations at our Energía Costa Azul LNG terminal was filed with and rejected by the Mexican Communicatio ns and Transportation Ministry. In April 2015, the Federal court confirmed the Mexican Communications and Transportation Ministry’s ruling denying the request to revoke the port concession and decided in favor of Energía Costa Azul. Two real property cases have been filed against Energía Costa Azul in which the plaintiffs seek to annul the recorded proper ty titles for parcels on which the Energía Costa Azul LNG terminal is situated and to obtain possession of different parcels that allegedly sit in the same place; one of these cases was dismissed in September 2013 at the direction of the state appellate co urt. A third complaint was served in April 2013 seeking to invalidate the contract by which Energía Costa Azul purchased another of the terminal parcels, on the grounds the purchase price was unfair. Sempra Mexico expects further proceedings on the remaini ng two matters. Sempra Natural Gas Since April 2012, a total of 1 3 lawsuits have been filed against Mobile Gas in Mobile County Circuit Court alleging that in the first half of 2008 Mobile Gas spilled tert -butyl mercaptan , an odorant added to natural gas for safety reasons, in Eight Mile, Alabama. Six of the lawsuits have been settled. The remaining seven lawsuits, which include more than 1,000 individual plaintiffs, allege nuisance , fraud and negligence causes of action, and seek unspecified compensatory and punitiv e damages. An initial trial involving approximately ten plaintiffs is scheduled for January 2016. Liberty Gas Storage, LLC (Liberty) received a demand for arbitration from Williams Midstream Natural Gas Liquids, Inc. (Williams) in February 2011 related to a sublease agreement. Williams alleged that Liberty was negligent in its attempt to convert certain salt caverns to natural gas storage. In August 2015, the parties reached a settlement in principal to resolve this matter for an immaterial amount. Other Litigation Sempra Energy holds a noncontrolling interest in RBS Sempra Commodities LLP (RBS Sempra Commodities) , a limited liability partnership in the process of being liquidated. The Royal Bank of Scotland plc (RBS), our partner in the joint venture, was notified by the United Kingdom’s Revenue and Customs Department (HMRC) that it was investigating value-added tax (VAT) refund claims made by various businesses in connection with the purchase and sale of carbon credit allowances. HMRC advised RBS that it had determined that it had grounds to deny such claims by RBS related to transactions by RBS Sempra Energy Europe (RBS SEE), a former indirect subsidiary of RBS Sempra Commodities that was sold to JP Morgan. HMRC asserted that RBS was not entit led to reduce its VAT liability by VAT paid during 2009 because RBS knew or should have known that certain vendors in the trading chain did not remit their own VAT to HMRC. In September 2012, HMRC issued a protective assessment of £86 million for the VAT p aid in connection with these transactions. In October 2014, RBS filed a Notice of Appeal of the September 2012 assessment with the First-tier Tribunal. As a condition of the appeal, RBS was required to pay the assessed amount. The payment also stops the ac crual of interest that could arise should it ultimately be determined that RBS has a liability for some of the tax. In June 2015, liquidators for three companies that engaged in carbon credit trading via chains that included a company that RBS SEE traded w ith directly filed a claim in the High Court of Justice against RBS and RBS Sempra Commodities alleging that RBS S empra Commodities’ and RBS SEE’s participation in transactions involving the sal e and purchase of carbon credits resulted in the companies’ in curring VAT liability they were unable to pay. In October 2015, the liquidators’ counsel filed an amended claim adding seven additional trading companies to the claim and asserting damages of £ 156 million for all 10 companies. Addit ionally, the claimants dropped RBS Sempra Commodities LLP as a defendant, adding the successor to RBS SEE and JP Morgan, Mercuria Energy Europe Trading Limited (Mercuria), in its stead. JP Morgan has notified us that Mercuria has sought indemnity for the claim, and JP Morgan has in turn sought indemnity from us. Our remaining balance in RBS Sempra Commodities is accounted for under the equity method. The investment balance of $71 million at September 30, 2015 reflects remaining distributions expected to be received from the partnership as it is liquidated. The timing and amount of distributio ns ma y be impacted by these matters. We discuss RBS Sempra Commodities further in Note 4 of the Notes to Consolidated Financial Statements in the Annual Report. In August 2007, the U.S. Court o f Appeals for the Ninth Circuit issued a decision reversing and remanding certain FERC orders declining to provide refunds regarding short-term bilateral sales up to one month in the Pacific Northwest for the January 2000 to June 2001 time period. In Decem ber 2010, the FERC approved a comprehensive settlement previously reached by Sempra Energy and RBS Sempra Commodities with the State of California. The settlement resolved all issues with regard to sales between the California Department of Water Resources and Sempra Commodities in the Pacific Northwest, but potential claims may exist regarding sales in the Pacific Northwest between Sempra Commodities and other parties. The FERC is in the process of addressing these potential claims on remand. Pursuant to t he agreements related to the formation of RBS Sempra Commodities, we have indemnified RBS should the liability from the final resolution of these matters be greater than the reserves related to Sempra Commodities. Pursuant to our agreement with the Noble G roup Ltd., one of the buyers of RBS Sempra Commodities’ businesses, we have also indemnified Noble Americas Gas & Power Corp. and its affiliates for all losses incurred by such parties resulting from these proceedings as related to Sempra Commodities. We are also defendants in ordinary routine litigation incidental to our businesses, including personal injury, employment litigation, product liability, property damage and other claims. Juries have demonstrated an increasing willingness to grant large awards , including punitive d amages, in these types of cases . CONTRACTUAL COMMITMENTS We discuss below significant changes in the first nine months of 2015 to contractual commitments discussed in Note 1 5 of the Notes to Consolidated Financial Statements in the Annual Report. Natural Gas Contracts SoCalGas ’ natural gas purchase and pipeline capacity commitments have decreased by $120 million since December 31, 2014, primarily due to fulfillment of payment obligations and changes in forward natural gas prices in the first nine months of 2015. Net future payments are expected to decrease by $114 million in 2015, $1 million each year in 2016 through 2019 and $2 million thereafter compared to December 31, 2014. Sempra Natural Gas’ natural gas purchase and transportation commitments have decreased by $345 million since De cember 31, 2014, primarily due to payments on existing contracts and changes in forward natural gas prices in the first nine months of 2015. Net future payments are expected to decrease by $219 million in 2015, $41 million in 2016, $45 million in 2017, and $33 million in 2018, increase by $1 million in 2019 and decrease by $8 million thereafter compared to December 31, 2014. LNG Purchase Agreement Sempra Natural Gas has a purchase agreement for the supply of LNG to the Energía Costa Azul terminal. The agree ment is priced using a predetermined formula based on natural gas market indices. Although this contract specifies a number of cargoes to be delivered, under its terms, the customer may divert certain cargoes, which would reduce amounts paid under the cont racts by Sempra Natural Gas. Sempra Natural Gas’ commitment under the LNG purchase agreement, reflecting changes in forward prices since December 31, 2014 and actual transactions for the first nine months of 2015, are expected to decrease by $322 million i n 2015, $128 million in 2016, $163 million in 2017, $194 million in 2018, $195 million in 2019 and $1.4 billion thereafter (through contract termination in 2029) compared to December 31, 2014. These amounts are based on forward prices of the index applicab le to the contract from 2015 to 2024 and an estimated one percent escalation per year beyond 2024. The LNG commitment amounts above are based on the requirement for Sempra Natural Gas to accept the maximum possible delivery of cargoes under the agreement. Actual LNG purchases in the current and prior years have been significantly lower than the maximum amounts possible due to the customer electing to divert cargoes as allowed by the agreement. Purchased-Power Contracts SDG&E’s commitments under purchased-po wer contracts have decreased by $362 million since December 31, 2014. Net future payments are expected to increase by $22 million in 2015, $26 million in 2016, and decrease by $14 million in 2017, $16 million in 2018, $21 million in 2019 and $359 million thereafter compared to December 31, 2014. Operating Leases Sempra Renewables’ commitments under operating leases have increased by $44 million since December 31, 2014. The increase is primarily due to land leases associated with renewable energy d evelopment projects. Net future payments are expected to decrease by $1 million in 2015, and increase by $1 million each year in 2016 through 2017, $2 million each year in 2018 through 2019 and $39 million thereafter compared to December 31, 2014. Capital Leases – Power Purchase Agreements In the first quarter of 2015, SDG&E entered into a CPUC-approved 25-year power purchase agreement with a peaker plant facility that is under construction. Beginning with the initial delivery of the contracted power, sched uled in June 2017, the power purchase agreement will be accounted for as a capital lease. Future minimum lease payments under the new power purchase agreement are as follows: FUTURE MINIMUM PAYMENTS – POWER PURCHASE AGREEMENT (Dollars in millions) 2015 $ ― 2016 ― 2017 38 2018 65 2019 65 Thereafter 1,460 Total minimum lease payments(1) 1,628 Less: estimated executory costs (392) Less: interest(2) (736) Present value of net minimum lease payments $ 500 (1) This amount will be recorded over the life of the lease as Cost of Electric Fuel and Purchased Power on Sempra Energy’s and SDG&E’s Condensed Consolidated Statements of Operations. This expense will receive ratemaking treatment consistent with purchased-power costs, which are recovered in rates. (2) Amount necessary to reduce net minimum lease payments to estimated present value at the inception of the lease. Construction and Development Projects In the first nine months of 2015, significant net decreases to contract ual commitments at SDG&E were $66 million primarily due to fulfillment of payment obligations , partially offset by an increase in commitments . Net future payments under these contractual commitment s are expected to decrease by $144 million in 2015, and increase by $ 25 million in 2016, $ 19 million in 2017, $12 million in 2018, $ 17 million in 2019 and $5 million thereafter compared to December 31, 201 4. In the first nine months of 2015, significant net decreases to contractual commitments at SoCalGas were $ 137 million primarily due to payments on existing contracts , partially offset by an increase in commitments in the first nine months of 2015. Net fu ture payments under these contractual commitments are expected to decrease by $ 164 mi llion in 2015, and increase by $20 million in 2016 and $ 7 million in 2017 compared to December 31, 2014. In the first nine months of 2015, significant increases to contrac tual commitments at Sempra Mexico were $ 41 million, primarily related to pipeline projects. Net future payments under th ese contractual commitments are expected to decrease by $19 million in 2015, and increase by $59 million in 2016 and $1 million thereaft er compared to December 31, 2014. In the first nine months of 2015, significant increases to contractual commitments at Sempra Renewables were $554 million for contracts related to the construction of renewable energy projects. The future payments under th ese contractual commitments are expected to be $90 million in 2015 and $464 million in 2016. In the first nine months of 2015, significant increases to contractual commitments at Sempra Natural Gas were $ 46 million, primarily for natural gas transportation projects. The future payments under these contractual commitments are all expected to be made in 2015. OTHER COMMITMENTS Sempra Natural Gas’ other commitments have decreased by $33 million since December 31, 2014. The decrease is primarily due to a long-term operations and maintenance agreement that was assumed by the purchaser of the remaining 625-MW block of the Mesquite Power plant. We provide additional information about the agreement in Notes 3 and 15 of the Notes to Consolid ated Financial Statements in the Annual Report. GUARANTEES We discuss guarantees related to Sempra Energy in Note 15 of the Notes to Consolidated Financial Statements in the Annual Report. NUCLEAR INSURANCE SDG&E and the other owners of SONGS have insurance to cover claims from nuclear liability incidents arising at SONGS. This insurance provides $375 million in coverage limits, the maximum amount available, including coverage for acts of terrorism. In addition, the Price-Anderson Act provides for up to $13.2 billion of secondary financial protection (SFP). If a nuclear liability loss occurring at any U.S. licensed/commercial reactor exceeds the $375 million insurance limit, all nuclear reactor owners could be required to contribute to the SFP. SDG&E’s contribution could be up to $50.93 million. This amount is subject to an annual maximum of $7.6 millio n, unless a default occurs by any other SONGS owner. If the SFP is insufficient to cover the liability loss, SDG&E could be subject to an additional assessment. The SONGS owners, including SDG&E, also have $2.75 billion of nuclear property, decontamination , and debris removal insurance, subject to a $2.5 million deductible for “each and every loss.” This insurance coverage is provided through Nuclear Electric Insurance Limited (NEIL). The NEIL policies have specific exclusions and limitations that can resul t in reduced or eliminated coverage. Insured members as a group are subject to retrospective premium assessments to cover losses sustained by NEIL under all issued policies. SDG&E could be assessed up to $9.7 million of retrospective premiums based on overall member claims. See Note 9 under “Settlement with NEIL” for discussion of an agreement between the SONGS co-owners and NEIL to settle all claims under the NEIL policies associated with the SONGS outage. The nuclear property insurance program includes an industry aggregate loss limit for non-certified acts of terrorism (as defined by the Terrorism Risk Insurance Act). The industry aggregate loss limit for property claims arising from non-certified acts of terrorism is $3.24 billion. This is the maximum amount that will be paid to insured members who suffer losses or damages from these non-certified terrorist acts . U.S. DEPARTMENT OF ENERGY (DOE) NUCLEAR FUEL DISPOSAL The Nuclear Waste Policy Act of 1982 made the DOE responsible for the disposal 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 seek recovery for these costs from the appropriate sources, including, but not limited to, SDG&E’s Nuclear Decommissioning Trust. SDG&E will also continue to support Edison in its pursui t of legal claims on behalf of the SONGS co-owners against the DOE for its failure to timely accept the spent nuclear fuel. In October 2015, the Calif |
SEGMENT INFORMATION
SEGMENT INFORMATION | 3 Months Ended |
Sep. 30, 2015 | |
Notes to Consolidated Financial Statements [Abstract] | |
Segment Information | NO TE 12 . SEGMENT INFORMATION We have six 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 South American Utilities develops, owns and operates, or holds interests in, electric transmission, distribution and gene ration infrastructure in Chile and Peru. Sempra Mexico develops, owns and operates, or holds interests in, natural gas transmission pipelines and propane and ethane systems, a natural g as distribution utility, electric generation facilities (including wind ), a terminal for the import of LNG, and marketing operations for the purchase of LNG and the purchase and sale of natural gas in Mexico. Sempra Renewables develops, owns and operates, or holds interests in, wind and solar energy projects in Arizona, Cali fornia, Colorado, Hawaii, Indiana, Kansas, Minnesota, Nebraska, Nevada and Pennsylvania to serve wholesale electricity markets in the United States. Sempra Natural Gas develops, owns and operates, or holds interests in, natural gas pipelines and storage f acilities, natural gas distribution utilities and a terminal for the import and export of LNG and sale of natural gas, all within the United States. Sempra Natural Gas also owned and operated the Mesquite Power plant, a natural gas-fired electric generatio n asset, the remaining 625-MW block of which was sold in April 2015, as we discuss in Note 3. Sempra South American Utilities and Sempra Mexico comprise our Sempra International operating unit. Sempra Renewables and Sempra Natural Gas comprise our Sempra U.S. Gas & Power operating unit. We evaluate each segment’s performance based on its contribution to Sempra Energy’s reported earnings. The California Utilities operate in essentially separate service territories, under separate regulatory frameworks and r ate 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 Repor t. 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 relat ed 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 table s consist primarily of parent organizations. SEGMENT INFORMATION (Dollars in millions) Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 REVENUES SDG&E $ 1,230 50 % $ 1,233 44 % $ 3,168 42 % $ 3,283 40 % SoCalGas 620 25 855 30 2,448 33 2,857 35 Sempra South American Utilities 373 15 379 14 1,151 15 1,147 14 Sempra Mexico 193 8 234 8 508 7 621 7 Sempra Renewables 12 ― 10 ― 30 ― 25 ― Sempra Natural Gas 160 6 252 9 512 7 748 9 Adjustments and eliminations ― ― 1 ― (1) ― (1) ― Intersegment revenues(1) (107) (4) (149) (5) (286) (4) (392) (5) Total $ 2,481 100 % $ 2,815 100 % $ 7,530 100 % $ 8,288 100 % INTEREST EXPENSE SDG&E $ 51 $ 51 $ 155 $ 152 SoCalGas 23 17 61 50 Sempra South American Utilities 9 7 22 24 Sempra Mexico 7 5 18 13 Sempra Renewables 1 2 3 3 Sempra Natural Gas 13 25 57 90 All other 65 63 193 178 Intercompany eliminations (26) (26) (93) (92) Total $ 143 $ 144 $ 416 $ 418 INTEREST INCOME SoCalGas $ ― $ ― $ 3 $ ― Sempra South American Utilities 5 4 14 10 Sempra Mexico 1 1 5 2 Sempra Renewables 2 ― 3 ― Sempra Natural Gas 16 24 60 87 All other ― (1) ― ― Intercompany eliminations (18) (22) (62) (84) Total $ 6 $ 6 $ 23 $ 15 DEPRECIATION AND AMORTIZATION SDG&E $ 152 48 % $ 134 46 % $ 446 48 % $ 395 46 % SoCalGas 116 37 109 37 342 37 321 37 Sempra South American Utilities 12 4 14 5 37 4 41 5 Sempra Mexico 18 6 16 6 52 6 47 5 Sempra Renewables 2 ― 1 ― 5 ― 4 ― Sempra Natural Gas 12 4 17 6 36 4 50 6 All other 3 1 1 ― 7 1 8 1 Total $ 315 100 % $ 292 100 % $ 925 100 % $ 866 100 % INCOME TAX EXPENSE (BENEFIT) SDG&E $ 75 $ 65 $ 217 $ 217 SoCalGas (20) 44 91 110 Sempra South American Utilities 16 26 50 59 Sempra Mexico (6) 13 7 37 Sempra Renewables (9) (16) (37) (35) Sempra Natural Gas ― (31) 29 (22) All other (41) (30) (81) (75) Total $ 15 $ 71 $ 276 $ 291 SEGMENT INFORMATION (CONTINUED) (Dollars in millions) Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 EQUITY EARNINGS (LOSSES) Earnings recorded before tax: Sempra Renewables $ 8 $ 7 $ 20 $ 18 Sempra Natural Gas 25 15 59 44 Total $ 33 $ 22 $ 79 $ 62 Earnings (losses) recorded net of tax: Sempra South American Utilities $ (3) $ (2) $ (4) $ (4) Sempra Mexico 30 9 68 26 Total $ 27 $ 7 $ 64 $ 22 EARNINGS (LOSSES) SDG&E $ 170 69 % $ 157 45 % $ 443 45 % $ 379 44 % SoCalGas(2) (8) (3) 98 28 276 28 256 30 Sempra South American Utilities 43 17 32 9 129 13 109 13 Sempra Mexico 63 25 63 18 160 16 139 16 Sempra Renewables 15 6 17 5 47 5 63 7 Sempra Natural Gas 1 ― 26 8 43 5 39 4 All other (36) (14) (45) (13) (118) (12) (121) (14) Total $ 248 100 % $ 348 100 % $ 980 100 % $ 864 100 % Nine months ended September 30, 2015 2014 EXPENDITURES FOR PROPERTY, PLANT & EQUIPMENT SDG&E $ 835 38 % $ 790 34 % SoCalGas 946 42 764 33 Sempra South American Utilities 105 5 126 5 Sempra Mexico 185 8 262 11 Sempra Renewables 47 2 174 8 Sempra Natural Gas 61 3 192 8 All other 48 2 12 1 Total $ 2,227 100 % $ 2,320 100 % September 30, 2015 December 31, 2014 ASSETS SDG&E $ 16,692 41 % $ 16,296 41 % SoCalGas 11,355 28 10,461 26 Sempra South American Utilities 3,265 8 3,379 9 Sempra Mexico 3,713 9 3,488 9 Sempra Renewables 1,351 3 1,338 3 Sempra Natural Gas 5,552 14 6,436 16 All other 1,118 3 895 2 Intersegment receivables (2,480) (6) (2,561) (6) Total $ 40,566 100 % $ 39,732 100 % INVESTMENTS IN EQUITY METHOD INVESTEES Sempra South American Utilities $ (11) $ (8) Sempra Mexico 491 434 Sempra Renewables 843 911 Sempra Natural Gas 1,435 1,347 All other 87 164 Total $ 2,845 $ 2,848 (1) Revenues for reportable segments include intersegment revenues of $2 million, $19 million, $24 million and $62 million for the three months ended September 30, 2015; $7 million, $55 million, $73 million and $151 million for the nine months ended September 30, 2015; $2 million, $17 million, $23 million and $107 million for the three months ended September 30, 2014; and $7 million, $51 million, $68 million and $266 million for the nine months ended September 30, 2014 for SDG&E, SoCalGas, Sempra Mexico and Sempra Natural Gas, respectively. (2) After preferred dividends. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Sep. 30, 2015 | |
Significant Accounting Policies | |
New Accounting Standards Policy | N OTE 2. NEW ACCOUNTING STANDARDS We describe below recent pronouncements that have had or may have a significant effect on our financial statements. We do not discuss recent pronouncements that are not anticipated to have an impact on or are unrelated to our financial condition, results of operations, cash flows or disclosures. SEMPRA ENERGY, SDG&E AND SOCALGAS Accounting Standards Update ( ASU ) 201 4 - 09 , “ Revenue from Contracts with Customers ” (ASU 201 4-09) and ASU 2015-14, “Revenue from Contracts with Cu stomers: Deferral of the Effective Date” (ASU 2015-14): ASU 2014-09 provides accounting guidance for revenue arising from contracts with customers and affects all entities that enter into contracts to provide goods or services to their customers. The guida nce 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 fo r all periods presented in the period of adoption or a modified retrospective approach. ASU 2015-14 defers the effective date of ASU 2014-09 by one year for all entities and permits early adoption on a limited basis. For public entities, ASU 2014-09 is e ffective for fiscal years beginning after December 15, 2017, with early adoption permitted for fiscal years beginning after December 15, 2016, and is effective for interim periods in the year of adoption. We have not yet selected the year in which we will adopt the standard or our transition method, nor have we determined the effect of the standard on our ongoing financial reporting. ASU 2015-03, “Interest – Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs” (ASU 2015-03) and ASU 2 015-15, “Interest - Imputation of Interest: Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements” (ASU 2015-15) : ASU 2015-03 provides guidance on the financial statement presentation of debt issuance co sts and requires an entity to present debt issuance costs in the balance sheet as a direct deduction from the carrying amount of the related long-term debt liability. This guidance must be applied using a full retrospective approach for all periods present ed in the period of adoption. We will adopt ASU 2015-03 for our annual reporting period ending December 3 1, 2015 , and the adoption will not affect our results of operations or cash flows . Deferred debt issuance costs that are the subject of ASU 2015-03 are included in Sundry on the Sempra Energy, SDG&E and SoCalGas Condensed Consolidated Balance Sheets and total $78 million, $ 32 mill ion, and $18 million at September 30, 2015, respectively, and $72 million, $33 million, and $15 million at December 31, 201 4, respectively . ASU 2015-15 clarifies ASU 2015-03 to provide additional guidance related to line-of-credit arrangements and states that the Securities and Exchange Commission staff would not object to an entity continuing to defer and present costs relat ed to line-of-credit arrangements as an asset and subsequently amortizing the deferred costs ratably over the term of the line-of-credit arrangements, regardless of whether there are any outstanding borrowings on the line-of-credit arrangements. We will ad opt ASU 2015-15 for our annual reporting period ending December 31, 2015 and will continue to include deferred costs related to our line-of-credit arrangements that are the subject of ASU 2015-15 in Sundry on the Sempra Energy, SDG&E and SoCalGas Condensed Consolidated Balance Sheets . ASU 2015-16, “Business Combination s – Simplifying the Accounting for Measu rement-Period Adjustments” (ASU 2015-16): ASU 2015-16 eliminates the requirement that acquirers in a business combination account for measurement-period adjustments retrospectively. Instead, the acquirers will recognize measurement-period adjustments during the period in which they determine the amounts, including the effect on earnings of any amounts that would have been recorded in previous periods if t he accounting had been completed at the acquisition date. We will adopt ASU 2015-16 for our annual reporting period ending December 31, 2015. Any subsequent measurement-period adjustments to the purchase price allocation related to the acquisition of Gaso ductos de Chihuahua that we discuss in Note 3 will occur after the adoption of ASU 2015-16 and will be recognized in the period in which the adjustments are determined. |
Consolidation Variable Interest Entity Policy | VARIABLE INTEREST ENTITIES (VIE) 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 right to receive benefits that could be significant to t he VIE. |
Noncontrolling Interest Policy | Ownership interests that are held by owners other than Sempra Energy and SDG&E in subsidiaries or entities consolidated by them are accounted for and reported as noncontrolling interests. As a result, noncontrolling interests are reported as a separate component of equity on the Condensed Consolidated Balance Sheets. Earnings or losses attributable to noncontrolling interests are separately identified on the Condensed Consolidated Statements of Operations, and compre hensive income or loss attributable to noncontrolling interests is separately identified on the Condensed Consolidated Statements of Comprehensive Income (Loss) . |
Earnings Per Share Policy | Basic earnings per common share (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 exercise d or converted into common stock. The dilution from common stock options is based on the treasury stock method. Under this method, proceeds based on the exercise price plus unearned compensation and windfall tax benefits recognized , minus tax shortfalls recognized , are assumed to be used to repurchase shares on the open market at the average market price for the period. The windfall tax benefits are tax deductions we would receive upon the assumed exercise of stock options in excess of the deferred income taxes we recorded related to the c ompensation expense on the stock options. Tax shortfalls occur when the assumed tax deductions are less than recorded deferred income taxes. The calculation of dilutive common stock equivalents excludes options for which the exercise price on common stock was greater than the average market price during the period (out-of-the-money options). The dilution from unvested restricted st ock awards (RSAs) and restricted stock units (RSUs) is also based on the treasury stock method. Proceeds equal to the unearned compensation and windfall tax benefits recognized , minus tax shortfalls recognized , related to the awards and units are assumed t o be used to repurchase shares on the open market at the average market price for the period. The windfall tax benefits or tax shortfalls recognized are the difference between tax deductions we would receive upon the assumed vesting of RSAs or RSUs and the deferred income taxes we recorded related to the compensation expense on such awards and units. Our performance-based RSUs include awards that vest at the end of three-year (for awards granted in 2015) or four-year performance periods based on Sempra Energy’s total return to shareholders relative to that of specified market indices (Total Shareholder Return or TSR RSUs) or based on the compound annual growth rate of Sempra Energy’s EPS (EPS RSUs). The comparative market indices for the TSR RSUs are the Standard & Poor’s (S&P) 500 Utilities Index and the S&P 500 Index. We primarily use long- term analyst consensus growth estimates for S&P 500 Utilities Index peer companies to develop our EPS RSU targets. TSR RSUs represent the right to receive from zero to 1.5 shares (2.0 shares for awards granted during or after 2014) of Sempra Energy common stock if performance targets are met. EPS RSUs represent the right to receive from zero to 2.0 shares of Sempra Energy common stock if performance targets are met. If performance falls between the targets specified for each performance metric, we calculat e the payout using linear interpolation. Participants also receive additional shares for dividend equivalents on shares subject to RSUs, which are deemed reinvested to purchase additional units that become subject to the same vesting conditions as the RSUs to which the dividends relate. Our RSAs , which are solely service-based, and those RSUs that are service-based or issued in connection with certain other performance goals represent the right to receive up to 1.0 share if the service requirements or certain other vesting conditions are met. These RSAs and RSUs have the same dividend equivalent rights as the performance-based RSUs described above . We include RSAs and these RSUs in potential dilutive shares at 100 percent , subject to the application of the treasury stock method. We includ e our TSR RSUs and EPS RSUs in potential dilutive shares at zero to up to 200 percent to the extent that they currently meet the performance requirements for vesting, subject to the application of 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 effective tax rate anticipated for the full year, as required by U.S. GAAP. The income tax effect of items that can be reliably forecasted are factored into the forecasted effective tax rate , and their impact is recognized proportionately over the year. The forecasted items, anticipated on a full year basis, may include, among others: utility self-dev eloped software expenditures repairs to certain utility plant assets renewable energy income tax credits deferred income tax benefits related to renewable energy projects exclusions from taxable income of the equity portion of AFUDC depreciation on a c ertain portion of utility plant assets U.S. tax on repatriation of current year earnings from non-U.S. subsidiaries Items that cannot be reliably forecasted (e.g., adjustments related to prior years’ income tax items, remeasurement of deferred tax asset v aluation allowances, Mexican currency translation and inflation adjustments, and deferred income tax benefit associated with the impairment of a book investment) are recorded in the interim period in which they actually occur, which can result in variabili ty to income tax expense. 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-relate d 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 li abilities are not recorded to deferred income tax expense, but rather to a regulatory asset or liability, which impacts the current effective income tax rate. As a result, changes in the relative size of these items compared to pretax income, from period t o period, can cause variations in the effective income tax rate. 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 remov al of utility plant assets utility self-developed software expenditures depreciation on a certain portion of utility plant assets state income taxes The AFUDC related to equity recorded for regulated construction projects at Sempra Mexico and Sempra Natural Gas has similar flow-through treatment. |
Fair Value Measurement Policy | 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 September 30, 2015 and December 31, 2014. 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 levels. The fair value of commodity derivative assets and liabilities is presented in accordance with our netting policy, as we discuss in No te 7 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 September 30, 2015 and December 31, 2014 in the tables below include the following: Nuc lear decommissioning trusts reflect the assets of SDG&E’s nuclear decommissioning trusts, 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 com parison to prices from other independent data sources. Equity and certain debt 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 se curity is traded (Level 1). Other debt securities are valued based on yields that are currently available for comparable securities of issuers with similar credit ratings (Level 2). We enter into commodity contracts and interest rate derivatives primaril y as a means to manage price exposures. We may also manage foreign exchange rate exposures using derivatives. We primarily use a market approach with market participant assumptions to value these derivatives. Market participant assumptions include those ab out 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 i nstruments, 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 under “Level 3 Information.” We record commodity derivativ e contracts that are subject to rate recovery as commodity costs that are offset by regulatory account balances and ar e recovered in rates. 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). 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-priced electricity positions are reviewed and compared with market conditions to determine reasonableness. SDG&E expects all costs related to these instruments t o be recoverabl e through customer rates. CRRs are recorded at fair value based almost entirely on the most current auction pr ices published by the California Independent System O perator (CA ISO ) , an objective source. Annual auction prices are published once a year, typically in the middle of November, and remain in effect for the following calendar year. The impact associated with discounting is negligible. Because auction prices a re a less observable input, these instruments are classified as Level 3 . T he 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 i n a higher (lower) fair value measurement. Long-term 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 ob servable 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 that range from $24.15 per MWh t o $60.01 per MWh. A significant increase or decrease in market electricity forward prices would result in a significantly higher or lower fair value, respectively. Realized gains and losses associated with CRRs and long-term electricity positions are rec orded in Cost of Electric Fuel and Purchased Power, which is recoverable in rates, on the Condensed Consolidated Statements of Operations. Unrealized gains and losses are recorded as regulatory assets and liabilities and therefore also do not affect earnin gs. Fair Value of Financial Instruments The fair values of certain of our financial instruments (cash, temporary investments, accounts and notes receivable, dividends and accounts payable, s hort-term debt and customer deposits) approximate their carrying amounts. 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 ca sh surrender values, which represent the amount of cash that could be realized under the contracts. We base the fair value of certain long-term debt and preferred stock on a market approach using quoted market prices for identical or similar securities in thinly-traded markets (Level 2). We value other long-term debt using an income approach based on the present value of estimated future cash flows discounted at rates available for similar securities (Level 3). |
Derivatives Policy | We use derivative instruments primarily to manage exposures arising in the normal course of business. Our principal exposures are commodity market risk and benchmark interest rate risk. We may also manage foreign exchange rate exposures using derivatives. 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 int ended to offset associated revenues, expenses, assets or liabilities that are not presented below. We record all derivatives at fair value on the Condensed Consolidated Balance Sheet s. 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 requireme nt to pass impacts through to customers, the impact of derivative instruments may be offset in other comprehensive income (loss) (cash flow hedge), on the balance sheet (fair value hedges and regulatory offsets), or recognized in earnings. We classify cash flows from the settlements of derivative instruments as operating activities on the Condensed Consolidated Statements of Cash Flows. In certain cases, we apply the normal purchase or sale exception to derivative accounting and have other commodity contr acts that are not derivatives. These contracts are not recorded at fair value and are therefore excluded from the disclosures below. HEDGE ACCOUNTING We may designate a derivative as a cash flow hedging instrument if it effectively converts anticipated 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 a given future revenue or expense i tem 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 r esults 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 energy derivatives, both natural gas and electricity, for the benefit of customers, with the objectiv e of managing price risk and basis risks, 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 co mmodity 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 congestion revenue rights (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, a s they are offset by regulatory account balances. Realized gains and losses associated with CRRs are recorded in Cost of Electric Fuel and Purchased Power, which is recoverable in rates, on the Condensed Consolidated Statements of Operations. Sempra Mexic o and Sempra Natural Gas may use natural gas and electricity derivatives, as appropriate, to optimize the earnings of their assets which support the following businesses: liquefied natural gas (LNG), natural gas transportation, power generation, and Sempra Natural Gas’ storage. 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. Certa in of these derivatives may also be designated as cash flow hedges. Sempra Mexico also uses natural gas energy derivatives with the objective of managing price risk and lowering natural gas prices at its Mexican 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. In addition to the amounts noted above, we frequently use commodity derivatives to manage risks associated with the phy sical locations of contractual obligation s 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. We periodically enter into interest rate derivative agreements intended to moderate our exposure to interest rates and to lower our overall costs of borrowing. We 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. Interest rate derivatives are utilized by the California Utilities as well as by other Sempra Energy subsidiaries. Interest rate derivati ves are generally accounted for as hedges, and although the California Utilities generally recover borrowing costs in rates over time, the use of interest rate derivatives is subject to certain regulatory constraints, and the impact of interest rate derivative s may not be recovered from customers as timely as described above with regard to energy derivatives. Separately, Otay Mesa VIE has entered into interest rate swap agreements to moderate its exposure to interest rate changes. FOREIGN CURRENCY DERIVATIVES We are exposed to exchange rate movements at our Mexican subsidiaries, which have U.S. dollar denominated cash balances, receivables and payables (monetary assets and liabilities) that give rise to Mexican currency exchange rate movements for Mexican income tax purposes. These subsidiaries also have deferred income tax assets and liabilities that are denominated in the Mexi can peso, which must be translated into U.S. dollars for financial reporting purposes. From time to time, we may utilize foreign currency derivatives at our subsidiaries and at the consolidated level as a means to manage the risk of exposure to significant fluctuations in our income tax expense from these impacts. We may also utilize cross-currency swaps to hedge exposure related to Mexican peso-denominated debt at our Mexican subsidiaries and joint ventures. In addition, Sempra South American Utilities may utilize foreign currency derivatives at its subsidiaries and joint ventures as a means to manage foreign currency rate risk. |
Legal Costs Policy | 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. |
Segment Policy | 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 relat ed interest are eliminated in consolidation. |
RECENT INVESTMENT ACTIVITY (Tab
RECENT INVESTMENT ACTIVITY (Tables) | 3 Months Ended |
Sep. 30, 2015 | |
Recent Investment Activity (Tables) [Abstract] | |
Schedule of Business Acquisition Table | DECONSOLIDATION OF SUBSIDIARIES (Dollars in millions) Energía Sierra Juárez Copper Mountain Solar 3 Sempra Energy Consolidated At July 16, 2014 At March 13, 2014 Proceeds from sale, net of negligible transaction costs $ 26 $ 68 $ 94 Cash (2) (2) (4) Other current assets (11) ― (11) Property, plant and equipment, net (137) (247) (384) Other assets (16) (11) (27) Accounts payable and accrued expenses 10 82 92 Due to affiliate 39 ― 39 Long-term debt, including current portion 82 97 179 Other liabilities 7 3 10 Accumulated other comprehensive income (5) (2) (7) Gain on sale of equity interests (19) (27) (46) (Increase) in equity method investments upon deconsolidation $ (26) $ (39) $ (65) |
OTHER FINANCIAL DATA (Tables)
OTHER FINANCIAL DATA (Tables) | 3 Months Ended |
Sep. 30, 2015 | |
Other Financial Data (Tables) [Abstract] | |
Net Periodic Benefit Cost Table | NET PERIODIC BENEFIT COST – SEMPRA ENERGY CONSOLIDATED (Dollars in millions) Pension benefits Other postretirement benefits Three months ended September 30, 2015 2014 2015 2014 Service cost $ 27 $ 23 $ 5 $ 6 Interest cost 38 39 10 13 Expected return on assets (42) (42) (17) (15) Amortization of: Prior service cost (credit) 3 3 (1) (2) Actuarial loss 9 3 ― ― Settlements and special termination benefits 4 5 ― 5 Regulatory adjustment (27) 6 4 5 Total net periodic benefit cost $ 12 $ 37 $ 1 $ 12 Nine months ended September 30, 2015 2014 2015 2014 Service cost $ 86 $ 75 $ 19 $ 18 Interest cost 116 121 33 37 Expected return on assets (130) (128) (51) (47) Amortization of: Prior service cost (credit) 8 8 (2) (4) Actuarial loss 28 13 ― ― Settlements and special termination benefits 4 14 ― 5 Regulatory adjustment (86) (18) 4 5 Total net periodic benefit cost $ 26 $ 85 $ 3 $ 14 NET PERIODIC BENEFIT COST – SDG&E (Dollars in millions) Pension benefits Other postretirement benefits Three months ended September 30, 2015 2014 2015 2014 Service cost $ 6 $ 8 $ 1 $ 2 Interest cost 9 10 2 3 Expected return on assets (14) (13) (2) (2) Amortization of: Actuarial loss 3 1 ― ― Special termination benefits ― ― ― 5 Regulatory adjustment (3) 6 (1) 4 Total net periodic benefit cost $ 1 $ 12 $ ― $ 12 Nine months ended September 30, 2015 2014 2015 2014 Service cost $ 22 $ 23 $ 5 $ 5 Interest cost 29 32 6 7 Expected return on assets (41) (41) (8) (8) Amortization of: Prior service cost 1 1 2 2 Actuarial loss 7 3 ― ― Settlements and special termination benefits ― 2 ― 5 Regulatory adjustment (15) 7 (5) 1 Total net periodic benefit cost $ 3 $ 27 $ ― $ 12 NET PERIODIC BENEFIT COST – SOCALGAS (Dollars in millions) Pension benefits Other postretirement benefits Three months ended September 30, 2015 2014 2015 2014 Service cost $ 17 $ 13 $ 3 $ 4 Interest cost 25 24 8 9 Expected return on assets (25) (26) (14) (12) Amortization of: Prior service cost (credit) 2 2 (2) (2) Actuarial loss 5 1 ― ― Settlement ― 4 ― ― Regulatory adjustment (24) ― 5 1 Total net periodic benefit cost $ ― $ 18 $ ― $ ― Nine months ended September 30, 2015 2014 2015 2014 Service cost $ 55 $ 45 $ 13 $ 12 Interest cost 74 75 26 28 Expected return on assets (79) (78) (42) (38) Amortization of: Prior service cost (credit) 6 6 (6) (6) Actuarial loss 16 5 ― ― Settlement ― 4 ― ― Regulatory adjustment (71) (25) 9 4 Total net periodic benefit cost $ 1 $ 32 $ ― $ ― |
Contributions to Benefit Plans Table | BENEFIT PLAN CONTRIBUTIONS (Dollars in millions) Sempra Energy Consolidated SDG&E SoCalGas Contributions through September 30, 2015: Pension plans $ 27 $ 2 $ 1 Other postretirement benefit plans 3 ― ― Total expected contributions in 2015: Pension plans $ 36 $ 3 $ 7 Other postretirement benefit plans 11 7 1 |
Earnings Per Share Computations Table | EARNINGS PER SHARE COMPUTATIONS (Dollars in millions, except per share amounts; shares in thousands) Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 Numerator: Earnings/Income attributable to common shares $ 248 $ 348 $ 980 $ 864 Denominator: Weighted-average common shares outstanding for basic EPS(1) 248,432 246,137 248,090 245,703 Dilutive effect of stock options, restricted stock awards and restricted stock units 2,592 4,634 2,575 4,575 Weighted-average common shares outstanding for diluted EPS 251,024 250,771 250,665 250,278 Earnings per share: Basic $ 1.00 $ 1.41 $ 3.95 $ 3.52 Diluted 0.99 1.39 3.91 3.45 (1) Includes fully vested restricted stock units of 504 and 222 held in our Deferred Compensation Plan for the three months ended September 30, 2015 and 2014, respectively, and 486 and 209 for the nine months ended September 30, 2015 and 2014, respectively. These fully vested restricted stock units 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. |
Capitalized Financing Costs Table | CAPITALIZED FINANCING COSTS (Dollars in millions) Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 Sempra Energy Consolidated: AFUDC related to debt $ 6 $ 5 $ 19 $ 15 AFUDC related to equity 26 28 84 77 Other capitalized financing costs 18 6 52 22 Total Sempra Energy Consolidated $ 50 $ 39 $ 155 $ 114 SDG&E: AFUDC related to debt $ 3 $ 3 $ 10 $ 10 AFUDC related to equity 9 8 27 26 Total SDG&E $ 12 $ 11 $ 37 $ 36 SoCalGas: AFUDC related to debt $ 3 $ 2 $ 9 $ 5 AFUDC related to equity 10 7 29 18 Other capitalized financing costs 1 ― 1 ― Total SoCalGas $ 14 $ 9 $ 39 $ 23 |
Changes in Components of Accumulated Comprehensive Income Table | CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) BY COMPONENT(1) SEMPRA ENERGY CONSOLIDATED (Dollars in millions) Pension and other postretirement benefits Foreign Total currency Unamortized Unamortized accumulated other translation net actuarial prior service Financial comprehensive adjustments gain (loss) cost instruments income (loss) Three months ended September 30, 2015 and 2014 2015: Balance as of June 30, 2015 $ (427) $ (81) $ (2) $ (86) $ (596) Other comprehensive loss before reclassifications (92) ― ― (79) (171) Amounts reclassified from accumulated other comprehensive income ― 5 ― 1 6 Net other comprehensive (loss) income (92) 5 ― (78) (165) Balance as of September 30, 2015 $ (519) $ (76) $ (2) $ (164) $ (761) 2014: Balance as of June 30, 2014 $ (170) $ (65) $ ― $ (38) $ (273) Other comprehensive loss before reclassifications (100) ― ― (2) (102) Amounts reclassified from accumulated other comprehensive income (loss) ― 5 ― (1) 4 Net other comprehensive (loss) income (100) 5 ― (3) (98) Balance as of September 30, 2014 $ (270) $ (60) $ ― $ (41) $ (371) Nine months ended September 30, 2015 and 2014 2015: Balance as of December 31, 2014 $ (322) $ (83) $ (2) $ (90) $ (497) Other comprehensive loss before reclassifications (197) ― ― (76) (273) Amounts reclassified from accumulated other comprehensive income ― 7 ― 2 9 Net other comprehensive (loss) income (197) 7 ― (74) (264) Balance as of September 30, 2015 $ (519) $ (76) $ (2) $ (164) $ (761) 2014: . Balance as of December 31, 2013 $ (129) $ (73) $ ― $ (26) $ (228) Other comprehensive loss before reclassifications (141) ― ― (28) (169) Amounts reclassified from accumulated other comprehensive income ― 13 ― 13 26 Net other comprehensive (loss) income (141) 13 ― (15) (143) Balance as of September 30, 2014 $ (270) $ (60) $ ― $ (41) $ (371) (1) All amounts are net of income tax, if subject to tax, and exclude noncontrolling interests. CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) BY COMPONENT(1) SAN DIEGO GAS & ELECTRIC COMPANY (Dollars in millions) Pension and other postretirement benefits Total Unamortized Unamortized accumulated other net actuarial prior service comprehensive gain (loss) credit income (loss) Three months ended September 30, 2015 and 2014 2015: Balance as of June 30 and September 30, 2015 $ (13) $ 1 $ (12) 2014: Balance as of June 30, 2014 $ (9) $ 1 $ (8) Amounts reclassified from accumulated other comprehensive income 1 ― 1 Net other comprehensive income 1 ― 1 Balance as of September 30, 2014 $ (8) $ 1 $ (7) Nine months ended September 30, 2015 and 2014 2015: Balance as of December 31, 2014 and September 30, 2015 $ (13) $ 1 $ (12) 2014: Balance as of December 31, 2013 $ (10) $ 1 $ (9) Amounts reclassified from accumulated other comprehensive income 2 ― 2 Net other comprehensive income 2 ― 2 Balance as of September 30, 2014 $ (8) $ 1 $ (7) (1) All amounts are net of income tax, if subject to tax, and exclude noncontrolling interests. CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) BY COMPONENT(1) SOUTHERN CALIFORNIA GAS COMPANY (Dollars in millions) Pension and other postretirement benefits Total Unamortized Unamortized accumulated other net actuarial prior service Financial comprehensive gain (loss) credit instruments income (loss) Three months ended September 30, 2015 and 2014 2015: Balance as of June 30 and September 30, 2015 $ (5) $ 1 $ (14) $ (18) 2014: Balance as of June 30, 2014 $ (5) $ 1 $ (14) $ (18) Amounts reclassified from accumulated other comprehensive income 2 ― ― 2 Net other comprehensive income 2 ― ― 2 Balance as of September 30, 2014 $ (3) $ 1 $ (14) $ (16) Nine months ended September 30, 2015 and 2014 2015: Balance as of December 31, 2014 and September 30, 2015 $ (5) $ 1 $ (14) $ (18) 2014: Balance as of December 31, 2013 $ (5) $ 1 $ (14) $ (18) Amounts reclassified from accumulated other comprehensive income 2 ― ― 2 Net other comprehensive income 2 ― ― 2 Balance as of September 30, 2014 $ (3) $ 1 $ (14) $ (16) (1) All amounts are net of income tax, if subject to tax, and exclude noncontrolling interests. |
Reclassifications out of AOCI Table | RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Dollars in millions) Details about accumulated Amounts reclassified other comprehensive income (loss) from accumulated other Affected line item on Condensed components comprehensive income (loss) Consolidated Statements of Operations Three months ended September 30, 2015 2014 Sempra Energy Consolidated: Financial instruments: Interest rate and foreign exchange instruments $ 5 $ 8 Interest Expense Interest rate instruments ― (5) Gain on Sale of Equity Interests and Assets Interest rate instruments 3 2 Equity Earnings, Before Income Tax Commodity contracts not subject Revenues: Energy-Related to rate recovery (3) (2) Businesses Total before income tax 5 3 (1) (1) Income Tax Expense Net of income tax 4 2 (3) (3) Earnings Attributable to Noncontrolling Interests $ 1 $ (1) Pension and other postretirement benefits: Amortization of actuarial loss $ 7 $ 8 See note (1) below (2) (3) Income Tax Expense Net of income tax $ 5 $ 5 Total reclassifications for the period, net of tax $ 6 $ 4 SDG&E: Financial instruments: Interest rate instruments $ 3 $ 3 Interest Expense (3) (3) Earnings Attributable to Noncontrolling Interest $ ― $ ― Pension and other postretirement benefits: Amortization of actuarial loss $ ― $ 1 See note (1) below ― ― Income Tax Expense Net of income tax $ ― $ 1 Total reclassifications for the period, net of tax $ ― $ 1 SoCalGas: Pension and other postretirement benefits: Amortization of actuarial loss $ ― $ 4 See note (1) below ― (2) Income Tax Expense Net of income tax $ ― $ 2 Total reclassifications for the period, net of tax $ ― $ 2 (1) Amounts are included in the computation of net periodic benefit cost (see "Pension and Other Postretirement Benefits" above). RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Dollars in millions) Details about accumulated Amount reclassified other comprehensive income (loss) from accumulated other Affected line item on Condensed components comprehensive income (loss) Consolidated Statements of Operations Nine months ended September 30, 2015 2014 Sempra Energy Consolidated: Financial instruments: Interest rate and foreign exchange instruments $ 14 $ 17 Interest Expense Interest rate instruments ― (3) Gain on Sale of Equity Interests and Assets Interest rate instruments 9 7 Equity Earnings, Before Income Tax Commodity contracts not subject to Revenues: Energy-Related rate recovery (10) 8 Businesses Total before income tax 13 29 (1) (8) Income Tax Expense Net of income tax 12 21 (10) (8) Earnings Attributable to Noncontrolling Interests $ 2 $ 13 Pension and other postretirement benefits: Amortization of actuarial loss $ 11 $ 21 See note (1) below (4) (8) Income Tax Expense Net of income tax $ 7 $ 13 Total reclassifications for the period, net of tax $ 9 $ 26 SDG&E: Financial instruments: Interest rate instruments $ 9 $ 8 Interest Expense (9) (8) Earnings Attributable to Noncontrolling Interest $ ― $ ― Pension and other postretirement benefits: Amortization of actuarial loss $ ― $ 3 See note (1) below ― (1) Income Tax Expense Net of income tax $ ― $ 2 Total reclassifications for the period, net of tax $ ― $ 2 SoCalGas: Pension and other postretirement benefits: Amortization of actuarial loss $ ― $ 4 See note (1) below ― (2) Income Tax Expense Net of income tax $ ― $ 2 Total reclassifications for the period, net of tax $ ― $ 2 (1) Amounts are included in the computation of net periodic benefit cost (see "Pension and Other Postretirement Benefits" above). |
Shareholders' Equity and Noncontrolling Interests Table | SHAREHOLDERS’ EQUITY AND NONCONTROLLING INTERESTS ― SEMPRA ENERGY CONSOLIDATED (Dollars in millions) Sempra Energy Non- shareholders’ controlling Total equity interests(1) equity Balance at December 31, 2014 $ 11,326 $ 774 $ 12,100 Comprehensive income 717 56 773 Preferred dividends of subsidiary (1) ― (1) Share-based compensation expense 39 ― 39 Common stock dividends declared (520) ― (520) Issuance of common stock 82 ― 82 Repurchases of common stock (74) ― (74) Tax benefit related to share-based compensation 56 ― 56 Equity contributed by noncontrolling interest ― 1 1 Distributions to noncontrolling interests ― (60) (60) Balance at September 30, 2015 $ 11,625 $ 771 $ 12,396 Balance at December 31, 2013 $ 11,008 $ 842 $ 11,850 Comprehensive income 722 66 788 Preferred dividends of subsidiary (1) ― (1) Share-based compensation expense 35 ― 35 Common stock dividends declared (486) ― (486) Issuance of common stock 71 ― 71 Repurchases of common stock (38) ― (38) Tax benefit related to share-based compensation 22 ― 22 Equity contributed by noncontrolling interest ― 1 1 Distributions to noncontrolling interests ― (85) (85) Balance at September 30, 2014 $ 11,333 $ 824 $ 12,157 (1) Noncontrolling interests include the preferred stock of SoCalGas and other noncontrolling interests as listed in the table below under "Other Noncontrolling Interests." SHAREHOLDER'S EQUITY AND NONCONTROLLING INTEREST ― SDG&E (Dollars in millions) SDG&E Non- shareholder’s controlling Total equity interest equity Balance at December 31, 2014 $ 4,932 $ 60 $ 4,992 Comprehensive income 443 20 463 Common stock dividends declared (150) ― (150) Distributions to noncontrolling interest ― (16) (16) Balance at September 30, 2015 $ 5,225 $ 64 $ 5,289 Balance at December 31, 2013 $ 4,628 $ 91 $ 4,719 Comprehensive income 381 23 404 Distributions to noncontrolling interest ― (37) (37) Balance at September 30, 2014 $ 5,009 $ 77 $ 5,086 SHAREHOLDERS' EQUITY ― SOCALGAS (Dollars in millions) SoCalGas shareholders' equity Balance at December 31, 2014 $ 2,781 Comprehensive income 277 Preferred stock dividends declared (1) Common stock dividends declared (50) Balance at September 30, 2015 $ 3,007 Balance at December 31, 2013 $ 2,549 Comprehensive income 259 Preferred stock dividends declared (1) Balance at September 30, 2014 $ 2,807 |
Amounts Due To and From Affiliates at SDG&E and SoCalGas Table | AMOUNTS DUE TO AND FROM AFFILIATES AT SDG&E AND SOCALGAS (Dollars in millions) September 30, 2015 December 31, 2014 SDG&E: Current: Due from SoCalGas $ 1 $ ― Due from various affiliates ― 1 $ 1 $ 1 Due to Sempra Energy $ 22 $ 17 Due to SoCalGas ― 4 $ 22 $ 21 Income taxes due from Sempra Energy(1) $ 41 $ 16 SoCalGas: Current: Due from Sempra Energy(2) $ 220 $ ― Due from SDG&E ― 4 $ 220 $ 4 Due to affiliate $ 50 $ ― Due to SDG&E 1 ― Due to Sempra Energy ― 13 $ 51 $ 13 Income taxes due from Sempra Energy(1) $ 29 $ 9 (1) 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. (2) Net receivable includes a loan to Sempra Energy of $250 million at September 30, 2015 at an interest rate of 0.10 percent. |
Revenues From Unconsolidated Affiliates at SDG&E and SoCalGas Table | REVENUES FROM UNCONSOLIDATED AFFILIATES AT SDG&E AND SOCALGAS (Dollars in millions) Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 SDG&E $ 3 $ 2 $ 8 $ 8 SoCalGas 19 17 55 51 |
Other Income and Expense Table | OTHER INCOME, NET (Dollars in millions) Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 Sempra Energy Consolidated: Allowance for equity funds used during construction $ 26 $ 28 $ 84 $ 77 Investment (losses) gains(1) (12) (3) (5) 20 (Losses) gains on interest rate and foreign exchange instruments, net (4) (6) (7) 3 Foreign currency losses (3) (2) (6) (1) Sale of other investments 2 1 8 1 Electrical infrastructure relocation income(2) ― 4 4 7 Regulatory interest, net(3) 1 2 3 5 Sundry, net 2 5 7 6 Total $ 12 $ 29 $ 88 $ 118 SDG&E: Allowance for equity funds used during construction $ 9 $ 8 $ 27 $ 26 Regulatory interest, net(3) 1 2 3 5 Sundry, net (2) (1) (4) (2) Total $ 8 $ 9 $ 26 $ 29 SoCalGas: Allowance for equity funds used during construction $ 10 $ 7 $ 29 $ 18 Sundry, net (2) (1) (4) (5) Total $ 8 $ 6 $ 25 $ 13 (1) 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. (2) Income at Luz del Sur associated with the relocation of electrical infrastructure. (3) Interest on regulatory balancing accounts. |
Income Tax Expense and Effective Income Tax Rates Table | INCOME TAX EXPENSE (BENEFIT) AND EFFECTIVE INCOME TAX RATES (Dollars in millions) Income tax Effective Effective expense income Income tax income (benefit) tax rate expense tax rate Three months ended September 30, 2015 2014 Sempra Energy Consolidated $ 15 6 % $ 71 16 % SDG&E 75 29 65 28 SoCalGas (20) 71 44 31 Nine months ended September 30, 2015 2014 Sempra Energy Consolidated $ 276 22 % $ 291 24 % SDG&E 217 32 217 35 SoCalGas 91 25 110 30 |
Variable Interest Entity Table | AMOUNTS ASSOCIATED WITH OTAY MESA VIE (Dollars in millions) Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 Operating expenses Cost of electric fuel and purchased power $ (27) $ (27) $ (66) $ (67) Operation and maintenance 3 3 13 13 Depreciation 7 7 19 21 Total operating expenses (17) (17) (34) (33) Operating income 17 17 34 33 Interest expense (5) (5) (14) (13) Income before income taxes/Net income 12 12 20 20 Earnings attributable to noncontrolling interest (12) (12) (20) (20) Earnings attributable to common shares $ ― $ ― $ ― $ ― |
Ownership Interests Held By Others Table | OTHER NONCONTROLLING INTERESTS (Dollars in millions) Percent ownership held by others September 30, December 31, September 30, December 31, 2015 2014 2015 2014 SDG&E: Otay Mesa VIE 100 % 100 % $ 64 $ 60 Sempra South American Utilities: Chilquinta Energía subsidiaries(1) 23.5 – 43.4 23.6 – 43.4 20 23 Luz del Sur 16.4 16.4 171 177 Tecsur 9.8 9.8 3 4 Sempra Mexico: IEnova, S.A.B. de C.V. 18.9 18.9 455 452 Sempra Natural Gas: Bay Gas Storage Company, Ltd. 9.1 9.1 25 23 Liberty Gas Storage, LLC 23.7 25.0 12 14 Southern Gas Transmission Company 49.0 49.0 1 1 Total Sempra Energy $ 751 $ 754 (1) Chilquinta Energía has four subsidiaries with noncontrolling interests held by others. Percentage range reflects the highest and lowest ownership percentages amongst these subsidiaries. |
Inventory Table | INVENTORY BALANCES (Dollars in millions) Natural gas Liquefied natural gas Materials and supplies Total September 30, 2015 December 31, 2014 September 30, 2015 December 31, 2014 September 30, 2015 December 31, 2014 September 30, 2015 December 31, 2014 SDG&E $ 4 $ 8 $ ― $ ― $ 67 $ 65 $ 71 $ 73 SoCalGas 162 155 ― ― 30 26 192 181 Sempra South American Utilities ― ― ― ― 34 33 34 33 Sempra Mexico ― ― 7 9 10 9 17 18 Sempra Renewables ― ― ― ― 2 2 2 2 Sempra Natural Gas 95 83 4 5 1 1 100 89 Sempra Energy Consolidated $ 261 $ 246 $ 11 $ 14 $ 144 $ 136 $ 416 $ 396 |
Afiliate Loans Table | DUE FROM UNCONSOLIDATED AFFILIATES(1) (Dollars in millions) September 30, 2015 December 31, 2014 Sempra South American Utilities: Eletrans S.A.: 4% Note(2) $ 65 $ 41 Sempra Mexico: Affiliate of joint venture with Petróleos Mexicanos(3): Note due November 13, 2017(4)(5) 3 44 Note due November 14, 2018(4) 41 40 Note due November 14, 2018(4) 34 33 Note due November 14, 2018(4) 8 8 Energía Sierra Juárez: Note due June 15, 2018(6) 24 22 Other(7) 3 38 Total $ 178 $ 226 (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 S.A., an affiliate of Chilquinta Energía. (3) Petróleos Mexicanos (or PEMEX, the Mexican state-owned oil company). (4) U.S. dollar-denominated loan, at a variable interest rate based on a 30-day LIBOR plus 450 basis points (4.69 percent at September 30, 2015), to finance the Los Ramones Norte pipeline project. (5) In May 2015, $41 million was paid with proceeds from project financing at the affiliate. (6) U.S. dollar-denominated loan, at a variable interest rate based on a 30-day LIBOR plus 637.5 basis points (6.57 percent at September 30, 2015), to finance the first phase of the Energía Sierra Juárez wind project. (7) Amounts represent accounts receivable from various Sempra Renewables and Sempra Mexico joint venture investments. |
DERIVATIVE FINANCIAL INSTRUME22
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 3 Months Ended |
Sep. 30, 2015 | |
Derivative Financial Instruments (Tables) [Abstract] | |
Commodity Derivative Volumes Table | NET ENERGY DERIVATIVE VOLUMES Segment and Commodity September 30, 2015 December 31, 2014 California Utilities: SDG&E: Natural gas 59 million MMBtu 55 million MMBtu (1) Electricity 1 million MWh ― (2) Congestion revenue rights 24 million MWh 27 million MWh SoCalGas – natural gas 1 million MMBtu 1 million MMBtu Energy-Related Businesses: Sempra Natural Gas – natural gas 39 million MMBtu 29 million MMBtu (1) Million British thermal units (2) Megawatt hours |
Notional Amounts of Interest Rate Derivatives Table | INTEREST RATE DERIVATIVES (Dollars in millions) September 30, 2015 December 31, 2014 Notional debt Maturities Notional debt Maturities Sempra Energy Consolidated: Cash flow hedges(1) $ 389 2015-2028 $ 399 2015-2028 Fair value hedges 300 2016 300 2016 SDG&E: Cash flow hedge(1) 317 2015-2019 325 2015-2019 (1) Includes Otay Mesa VIE. All of SDG&E’s interest rate derivatives relate to Otay Mesa VIE. |
Derivative Instruments on the Condensed Consolidated Balance Sheets Table | DERIVATIVE INSTRUMENTS ON THE CONDENSED CONSOLIDATED BALANCE SHEETS (Dollars in millions) September 30, 2015 Deferred credits Current Current and other assets: liabilities: liabilities: Fixed-price Investments Fixed-price Fixed-price contracts and other contracts contracts and other assets: and other and other derivatives(1) Sundry derivatives(2) derivatives Sempra Energy Consolidated: Derivatives designated as hedging instruments: Interest rate and foreign exchange instruments(3) $ 7 $ ― $ (16) $ (159) Commodity contracts not subject to rate recovery 6 ― ― ― Derivatives not designated as hedging instruments: Interest rate and foreign exchange instruments ― ― (3) ― Commodity contracts not subject to rate recovery 166 31 (147) (18) Associated offsetting commodity contracts (137) (18) 137 18 Associated offsetting cash collateral ― ― 3 ― Commodity contracts subject to rate recovery 7 87 (59) (65) Associated offsetting commodity contracts (1) (1) 1 1 Associated offsetting cash collateral ― ― 25 28 Net amounts presented on the balance sheet 48 99 (59) (195) Additional cash collateral for commodity contracts not subject to rate recovery 3 ― ― ― Additional cash collateral for commodity contracts subject to rate recovery 15 ― ― ― Total(4) $ 66 $ 99 $ (59) $ (195) SDG&E: Derivatives designated as hedging instruments: Interest rate instruments(3) $ ― $ ― $ (15) $ (29) Derivatives not designated as hedging instruments: Commodity contracts not subject to rate recovery ― ― (1) ― Associated offsetting cash collateral ― ― 1 ― Commodity contracts subject to rate recovery 6 87 (59) (65) Associated offsetting commodity contracts (1) (1) 1 1 Associated offsetting cash collateral ― ― 25 28 Net amounts presented on the balance sheet 5 86 (48) (65) Additional cash collateral for commodity contracts not subject to rate recovery 1 ― ― ― Additional cash collateral for commodity contracts subject to rate recovery 14 ― ― ― Total(4) $ 20 $ 86 $ (48) $ (65) SoCalGas: Derivatives not designated as hedging instruments: Commodity contracts not subject to rate recovery $ ― $ ― $ (2) $ ― Associated offsetting cash collateral ― ― 2 ― Commodity contracts subject to rate recovery 1 ― ― ― Net amounts presented on the balance sheet 1 ― ― ― Additional cash collateral for commodity contracts not subject to rate recovery 1 ― ― ― Additional cash collateral for commodity contracts subject to rate recovery 1 ― ― ― Total $ 3 $ ― $ ― $ ― (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, 2014 Deferred credits Current Current and other assets: liabilities: liabilities: Fixed-price Investments Fixed-price Fixed-price contracts and other contracts contracts and other assets: and other and other derivatives(1) Sundry derivatives(2) derivatives Sempra Energy Consolidated: Derivatives designated as hedging instruments: Interest rate and foreign exchange instruments(3) $ 10 $ 3 $ (17) $ (109) Commodity contracts not subject to rate recovery 25 ― ― ― Derivatives not designated as hedging instruments: Interest rate instruments 8 27 (7) (22) Commodity contracts not subject to rate recovery 143 32 (135) (29) Associated offsetting commodity contracts (129) (27) 129 27 Associated offsetting cash collateral (11) ― ― ― Commodity contracts subject to rate recovery 36 76 (36) (20) Associated offsetting commodity contracts (3) (1) 3 1 Associated offsetting cash collateral ― ― 23 13 Net amounts presented on the balance sheet 79 110 (40) (139) Additional cash collateral for commodity contracts subject to rate recovery 14 ― ― ― Total(4) $ 93 $ 110 $ (40) $ (139) SDG&E: Derivatives designated as hedging instruments: Interest rate instruments(3) $ ― $ ― $ (16) $ (31) Derivatives not designated as hedging instruments: Commodity contracts subject to rate recovery 32 76 (32) (20) Associated offsetting commodity contracts ― (1) ― 1 Associated offsetting cash collateral ― ― 23 13 Net amounts presented on the balance sheet 32 75 (25) (37) Additional cash collateral for commodity contracts subject to rate recovery 12 ― ― ― Total(4) $ 44 $ 75 $ (25) $ (37) SoCalGas: Derivatives not designated as hedging instruments: Commodity contracts subject to rate recovery $ 4 $ ― $ (4) $ ― Associated offsetting commodity contracts (3) ― 3 ― Net amounts presented on the balance sheet 1 ― (1) ― Additional cash collateral for commodity contracts subject to rate recovery 2 ― ― ― Total $ 3 $ ― $ (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. |
Fair Value Hedge Impact on the Condensed Consolidated Statements of Operations Table | FAIR VALUE HEDGE IMPACT ON THE CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Dollars in millions) Pretax gain (loss) on derivatives recognized in earnings Three months ended September 30, Nine months ended September 30, Location 2015 2014 2015 2014 Sempra Energy Consolidated: Interest rate instruments Interest Expense $ 1 $ 1 $ 5 $ 6 Interest rate instruments Other Income, Net ― (1) (2) ― Total(1) $ 1 $ ― $ 3 $ 6 (1) There was no hedge ineffectiveness on these swaps in either the three months or nine months ended September 30, 2015 and negligible gains and $9 million of gains from hedge ineffectiveness in the three months and nine months ended September 30, 2014, respectively. All other changes in the fair value of the interest rate swap agreements are exactly offset by changes in the fair value of the underlying long-term debt and are recorded in Other Income, Net. |
Cash Flow Hedge Impact on the Condensed Consolidated Statements of Operations Table | CASH FLOW HEDGE IMPACT ON THE CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Dollars in millions) Pretax gain (loss) recognized Pretax gain (loss) reclassified from in OCI (effective portion) AOCI into earnings (effective portion) Three months ended September 30, Three months ended September 30, 2015 2014 Location 2015 2014 Sempra Energy Consolidated: Interest rate and foreign exchange instruments(1)(2) $ (10) $ (5) Interest Expense $ (5) $ (8) Gain on Sale of Equity Interests Interest rate instruments ― 5 and Assets ― 5 Equity Earnings, Interest rate instruments (134) (4) Before Income Tax (3) (2) Commodity contracts not subject Revenues: Energy-Related to rate recovery 6 1 Businesses 3 2 Total(2) $ (138) $ (3) $ (5) $ (3) SDG&E: Interest rate instruments(1)(2) $ (4) $ 1 Interest Expense $ (3) $ (3) Nine months ended September 30, Nine months ended September 30, 2015 2014 Location 2015 2014 Sempra Energy Consolidated: Interest rate and foreign exchange instruments(1)(2) $ (22) $ (15) Interest Expense $ (14) $ (17) Gain on Sale of Equity Interests Interest rate instruments ― 3 and Assets ― 3 Equity Earnings, Interest rate instruments (123) (34) Before Income Tax (9) (7) Commodity contracts not subject Revenues: Energy-Related to rate recovery 6 (5) Businesses 10 (8) Total(2) $ (139) $ (51) $ (13) $ (29) SDG&E: Interest rate instruments(1)(2) $ (9) $ (5) Interest Expense $ (9) $ (8) (1) Amounts include Otay Mesa VIE. All of SDG&E’s interest rate derivative activity relates to Otay Mesa VIE. (2) There were negligible losses from ineffectiveness related to these hedges in 2015 and 2014. |
Undesignated Derivative Impact on the Condensed Consolidated Statements of Operations Table | UNDESIGNATED DERIVATIVE IMPACT ON THE CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Dollars in millions) Pretax gain (loss) on derivatives recognized in earnings Three months ended September 30, Nine months ended September 30, Location 2015 2014 2015 2014 Sempra Energy Consolidated: Interest rate and foreign exchange instruments Other Income, Net $ (4) $ (6) $ (7) $ (6) Foreign exchange instruments Equity Earnings, Net of Income Tax (3) (2) (4) (4) Commodity contracts not subject Revenues: Energy-Related to rate recovery Businesses 21 3 33 2 Commodity contracts not subject Cost of Natural Gas, Electric Fuel to rate recovery and Purchased Power ― 1 ― 3 Commodity contracts not subject to rate recovery Operation and Maintenance (2) ― (1) ― Commodity contracts subject Cost of Electric Fuel to rate recovery and Purchased Power (27) (1) (100) 19 Commodity contracts subject to rate recovery Cost of Natural Gas ― 1 1 2 Total $ (15) $ (4) $ (78) $ 16 SDG&E: Commodity contracts not subject to rate recovery Operation and Maintenance $ (1) $ ― $ (1) $ ― Commodity contracts subject Cost of Electric Fuel to rate recovery and Purchased Power (27) (1) (100) 19 Total $ (28) $ (1) $ (101) $ 19 SoCalGas: Commodity contracts not subject to rate recovery Operation and Maintenance $ (1) $ ― $ ― $ ― Commodity contracts subject to rate recovery Cost of Natural Gas ― 1 1 2 Total $ (1) $ 1 $ 1 $ 2 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Sep. 30, 2015 | |
Fair Value Measurements (Tables) [Abstract] | |
Recurring Fair Value Measures Table | RECURRING FAIR VALUE MEASURES – SEMPRA ENERGY CONSOLIDATED (Dollars in millions) Fair value at September 30, 2015 Level 1 Level 2 Level 3 Netting(1) Total Assets: Nuclear decommissioning trusts: Equity securities $ 588 $ ― $ ― $ ― $ 588 Debt securities: Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies 51 44 ― ― 95 Municipal bonds ― 154 ― ― 154 Other securities ― 205 ― ― 205 Total debt securities 51 403 ― ― 454 Total nuclear decommissioning trusts(2) 639 403 ― ― 1,042 Interest rate and foreign exchange instruments ― 7 ― ― 7 Commodity contracts not subject to rate recovery 31 17 ― 3 51 Commodity contracts subject to rate recovery ― 1 91 15 107 Total $ 670 $ 428 $ 91 $ 18 $ 1,207 Liabilities: Interest rate and foreign exchange instruments $ ― $ 178 $ ― $ ― $ 178 Commodity contracts not subject to rate recovery 8 2 ― (3) 7 Commodity contracts subject to rate recovery ― 67 55 (53) 69 Total $ 8 $ 247 $ 55 $ (56) $ 254 Fair value at December 31, 2014 Level 1 Level 2 Level 3 Netting(1) Total Assets: Nuclear decommissioning trusts: Equity securities $ 655 $ ― $ ― $ ― $ 655 Debt securities: Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies 62 47 ― ― 109 Municipal bonds ― 129 ― ― 129 Other securities ― 207 ― ― 207 Total debt securities 62 383 ― ― 445 Total nuclear decommissioning trusts(2) 717 383 ― ― 1,100 Interest rate and foreign exchange instruments ― 48 ― ― 48 Commodity contracts not subject to rate recovery 28 16 ― (11) 33 Commodity contracts subject to rate recovery ― 1 107 14 122 Total $ 745 $ 448 $ 107 $ 3 $ 1,303 Liabilities: Interest rate and foreign exchange instruments $ ― $ 155 $ ― $ ― $ 155 Commodity contracts not subject to rate recovery 3 9 ― (4) 8 Commodity contracts subject to rate recovery ― 52 ― (36) 16 Total $ 3 $ 216 $ ― $ (40) $ 179 (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. (2) Excludes cash balances and cash equivalents. RECURRING FAIR VALUE MEASURES – SDG&E (Dollars in millions) Fair value at September 30, 2015 Level 1 Level 2 Level 3 Netting(1) Total Assets: Nuclear decommissioning trusts: Equity securities $ 588 $ ― $ ― $ ― $ 588 Debt securities: Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies 51 44 ― ― 95 Municipal bonds ― 154 ― ― 154 Other securities ― 205 ― ― 205 Total debt securities 51 403 ― ― 454 Total nuclear decommissioning trusts(2) 639 403 ― ― 1,042 Commodity contracts not subject to rate recovery ― ― ― 1 1 Commodity contracts subject to rate recovery ― ― 91 14 105 Total $ 639 $ 403 $ 91 $ 15 $ 1,148 Liabilities: Interest rate instruments $ ― $ 44 $ ― $ ― $ 44 Commodity contracts not subject to rate recovery 1 ― ― (1) ― Commodity contracts subject to rate recovery ― 67 55 (53) 69 Total $ 1 $ 111 $ 55 $ (54) $ 113 Fair value at December 31, 2014 Level 1 Level 2 Level 3 Netting(1) Total Assets: Nuclear decommissioning trusts: Equity securities $ 655 $ ― $ ― $ ― $ 655 Debt securities: Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies 62 47 ― ― 109 Municipal bonds ― 129 ― ― 129 Other securities ― 207 ― ― 207 Total debt securities 62 383 ― ― 445 Total nuclear decommissioning trusts(2) 717 383 ― ― 1,100 Commodity contracts subject to rate recovery ― ― 107 12 119 Total $ 717 $ 383 $ 107 $ 12 $ 1,219 Liabilities: Interest rate instruments $ ― $ 47 $ ― $ ― $ 47 Commodity contracts not subject to rate recovery 1 ― ― (1) ― Commodity contracts subject to rate recovery ― 51 ― (36) 15 Total $ 1 $ 98 $ ― $ (37) $ 62 (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. (2) Excludes cash balances and cash equivalents. RECURRING FAIR VALUE MEASURES – SOCALGAS (Dollars in millions) Fair value at September 30, 2015 Level 1 Level 2 Level 3 Netting(1) Total Assets: Commodity contracts not subject to rate recovery $ ― $ ― $ ― $ 1 $ 1 Commodity contracts subject to rate recovery ― 1 ― 1 2 Total $ ― $ 1 $ ― $ 2 $ 3 Liabilities: Commodity contracts not subject to rate recovery $ 2 $ ― $ ― $ (2) $ ― Total $ 2 $ ― $ ― $ (2) $ ― Fair value at December 31, 2014 Level 1 Level 2 Level 3 Netting(1) Total Assets: Commodity contracts subject to rate recovery $ ― $ 1 $ ― $ 2 $ 3 Total $ ― $ 1 $ ― $ 2 $ 3 Liabilities: Commodity contracts not subject to rate recovery $ 2 $ ― $ ― $ (2) $ ― Commodity contracts subject to rate recovery ― 1 ― ― 1 Total $ 2 $ 1 $ ― $ (2) $ 1 (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. |
Recurring Fair Value Measures Level 3 Rollforward Table | LEVEL 3 RECONCILIATIONS (Dollars in millions) Three months ended September 30, 2015 2014 Balance as of July 1 $ 42 $ 85 Realized and unrealized (losses) gains (49) 3 Allocated transmission instruments ― 9 Settlements 43 (10) Balance as of September 30 $ 36 $ 87 Change in unrealized gains or losses relating to instruments still held at September 30 $ (8) $ ― Nine months ended September 30, 2015 2014 Balance as of January 1 $ 107 $ 99 Realized and unrealized (losses) gains (103) 9 Allocated transmission instruments 1 10 Settlements 31 (31) Balance as of September 30 $ 36 $ 87 Change in unrealized gains or losses relating to instruments still held at September 30 $ (54) $ ― |
Fair Value of Financial Instruments Table | FAIR VALUE OF FINANCIAL INSTRUMENTS (Dollars in millions) September 30, 2015 Carrying Fair value amount Level 1 Level 2 Level 3 Total Sempra Energy Consolidated: Total long-term debt (1)(2) $ 13,341 $ ― $ 13,693 $ 703 $ 14,396 Preferred stock of subsidiary 20 ― 22 ― 22 SDG&E: Total long-term debt (2)(3) $ 4,557 $ ― $ 4,652 $ 317 $ 4,969 SoCalGas: Total long-term debt (4) $ 2,512 $ ― $ 2,658 $ ― $ 2,658 Preferred stock 22 ― 24 ― 24 December 31, 2014 Carrying Fair value amount Level 1 Level 2 Level 3 Total Sempra Energy Consolidated: Total long-term debt (1)(2) $ 12,347 $ ― $ 12,782 $ 917 $ 13,699 Preferred stock of subsidiary 20 ― 23 ― 23 SDG&E: Total long-term debt (2)(3) $ 4,461 $ ― $ 4,563 $ 425 $ 4,988 SoCalGas: Total long-term debt (4) $ 1,913 $ ― $ 2,124 $ ― $ 2,124 Preferred stock 22 ― 25 ― 25 (1) Before reductions for unamortized discount (net of premium) of $21 million at both September 30, 2015 and December 31, 2014, and excluding build-to-suit and capital lease obligations of $375 million and $310 million at September 30, 2015 and December 31, 2014, respectively. We discuss our long-term debt in Note 6 above and in Note 5 of the Notes to Consolidated Financial Statements in the Annual Report. (2) Level 3 instruments include $317 million and $325 million at September 30, 2015 and December 31, 2014, respectively, related to Otay Mesa VIE. (3) Before reductions for unamortized discount of $10 million and $11 million at September 30, 2015 and December 31, 2014, respectively, and excluding capital lease obligations of $231 million and $234 million at September 30, 2015 and December 31, 2014, respectively. (4) Before reductions for unamortized discount of $7 million and $8 million at September 30, 2015 and December 31, 2014, respectively, and excluding capital lease obligations of $2 million and $1 million at September 30, 2015 and December 31, 2014, respectively. |
NUCLEAR PLANT (Tables)
NUCLEAR PLANT (Tables) | 3 Months Ended |
Sep. 30, 2015 | |
Schedule of Nuclear Decommissioning Trusts Investments [Abstract] | |
Schedule of Nuclear Decommissioning Trusts Investments | NUCLEAR DECOMMISSIONING TRUSTS (Dollars in millions) Gross Gross Estimated unrealized unrealized fair Cost gains losses value At September 30, 2015: Debt securities: Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies(1) $ 90 $ 5 $ ― $ 95 Municipal bonds(2) 147 7 ― 154 Other securities(2) 214 3 (12) 205 Total debt securities 451 15 (12) 454 Equity securities 212 382 (6) 588 Cash and cash equivalents 18 ― ― 18 Total $ 681 $ 397 $ (18) $ 1,060 At December 31, 2014: Debt securities: Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies $ 103 $ 6 $ ― $ 109 Municipal bonds 121 8 ― 129 Other securities 206 7 (6) 207 Total debt securities 430 21 (6) 445 Equity securities 215 444 (4) 655 Cash and cash equivalents 30 1 ― 31 Total $ 675 $ 466 $ (10) $ 1,131 (1) Maturity dates are 2016-2065. (2) Maturity dates are 2015-2115. |
Schedule of Sales of Securities By Nuclear Decommissioning Trusts [Abstract] | |
Schedule of Sales of Securities By Nuclear Decommissioning Trusts | SALES OF SECURITIES (Dollars in millions) Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 Proceeds from sales(1) $ 210 $ 148 $ 431 $ 498 Gross realized gains 18 5 24 9 Gross realized losses (6) (3) (13) (8) (1) Excludes securities that are held to maturity. |
CALIFORNIA UTILITIES' REGULAT25
CALIFORNIA UTILITIES' REGULATORY MATTERS (Tables) | 3 Months Ended |
Sep. 30, 2015 | |
Regulatory Matters (Tables) [Abstract] | |
Schedule of Sunrise Powerlink Total Project Cost | SUNRISE POWERLINK ELECTRIC TRANSMISSION LINE – PROPOSED REVISIONS TO TOTAL PROJECT COST CAP (Dollars in millions) Total Construction costs Undergrounding on Mitigation (2012 dollars, net and AFUDC Alpine Blvd. and monitoring costs present value basis) Final status report $ 1,490.9 $ 11.7 $ 384.8 $ 1,887.4 2008 CPUC approval decision 1,594.2 91.0 197.8 1,883.0 Difference $ (103.3) $ (79.3) $ 187.0 $ 4.4 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 3 Months Ended |
Sep. 30, 2015 | |
Commitments And Contingencies (Tables) [Abstract] | |
Schedule Of Capital Leases, Future Minimum Payments Due | FUTURE MINIMUM PAYMENTS – POWER PURCHASE AGREEMENT (Dollars in millions) 2015 $ ― 2016 ― 2017 38 2018 65 2019 65 Thereafter 1,460 Total minimum lease payments(1) 1,628 Less: estimated executory costs (392) Less: interest(2) (736) Present value of net minimum lease payments $ 500 (1) This amount will be recorded over the life of the lease as Cost of Electric Fuel and Purchased Power on Sempra Energy’s and SDG&E’s Condensed Consolidated Statements of Operations. This expense will receive ratemaking treatment consistent with purchased-power costs, which are recovered in rates. (2) Amount necessary to reduce net minimum lease payments to estimated present value at the inception of the lease. |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 3 Months Ended |
Sep. 30, 2015 | |
Segment Information (Tables) [Abstract] | |
Segment Information Table | SEGMENT INFORMATION (Dollars in millions) Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 REVENUES SDG&E $ 1,230 50 % $ 1,233 44 % $ 3,168 42 % $ 3,283 40 % SoCalGas 620 25 855 30 2,448 33 2,857 35 Sempra South American Utilities 373 15 379 14 1,151 15 1,147 14 Sempra Mexico 193 8 234 8 508 7 621 7 Sempra Renewables 12 ― 10 ― 30 ― 25 ― Sempra Natural Gas 160 6 252 9 512 7 748 9 Adjustments and eliminations ― ― 1 ― (1) ― (1) ― Intersegment revenues(1) (107) (4) (149) (5) (286) (4) (392) (5) Total $ 2,481 100 % $ 2,815 100 % $ 7,530 100 % $ 8,288 100 % INTEREST EXPENSE SDG&E $ 51 $ 51 $ 155 $ 152 SoCalGas 23 17 61 50 Sempra South American Utilities 9 7 22 24 Sempra Mexico 7 5 18 13 Sempra Renewables 1 2 3 3 Sempra Natural Gas 13 25 57 90 All other 65 63 193 178 Intercompany eliminations (26) (26) (93) (92) Total $ 143 $ 144 $ 416 $ 418 INTEREST INCOME SoCalGas $ ― $ ― $ 3 $ ― Sempra South American Utilities 5 4 14 10 Sempra Mexico 1 1 5 2 Sempra Renewables 2 ― 3 ― Sempra Natural Gas 16 24 60 87 All other ― (1) ― ― Intercompany eliminations (18) (22) (62) (84) Total $ 6 $ 6 $ 23 $ 15 DEPRECIATION AND AMORTIZATION SDG&E $ 152 48 % $ 134 46 % $ 446 48 % $ 395 46 % SoCalGas 116 37 109 37 342 37 321 37 Sempra South American Utilities 12 4 14 5 37 4 41 5 Sempra Mexico 18 6 16 6 52 6 47 5 Sempra Renewables 2 ― 1 ― 5 ― 4 ― Sempra Natural Gas 12 4 17 6 36 4 50 6 All other 3 1 1 ― 7 1 8 1 Total $ 315 100 % $ 292 100 % $ 925 100 % $ 866 100 % INCOME TAX EXPENSE (BENEFIT) SDG&E $ 75 $ 65 $ 217 $ 217 SoCalGas (20) 44 91 110 Sempra South American Utilities 16 26 50 59 Sempra Mexico (6) 13 7 37 Sempra Renewables (9) (16) (37) (35) Sempra Natural Gas ― (31) 29 (22) All other (41) (30) (81) (75) Total $ 15 $ 71 $ 276 $ 291 SEGMENT INFORMATION (CONTINUED) (Dollars in millions) Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 EQUITY EARNINGS (LOSSES) Earnings recorded before tax: Sempra Renewables $ 8 $ 7 $ 20 $ 18 Sempra Natural Gas 25 15 59 44 Total $ 33 $ 22 $ 79 $ 62 Earnings (losses) recorded net of tax: Sempra South American Utilities $ (3) $ (2) $ (4) $ (4) Sempra Mexico 30 9 68 26 Total $ 27 $ 7 $ 64 $ 22 EARNINGS (LOSSES) SDG&E $ 170 69 % $ 157 45 % $ 443 45 % $ 379 44 % SoCalGas(2) (8) (3) 98 28 276 28 256 30 Sempra South American Utilities 43 17 32 9 129 13 109 13 Sempra Mexico 63 25 63 18 160 16 139 16 Sempra Renewables 15 6 17 5 47 5 63 7 Sempra Natural Gas 1 ― 26 8 43 5 39 4 All other (36) (14) (45) (13) (118) (12) (121) (14) Total $ 248 100 % $ 348 100 % $ 980 100 % $ 864 100 % Nine months ended September 30, 2015 2014 EXPENDITURES FOR PROPERTY, PLANT & EQUIPMENT SDG&E $ 835 38 % $ 790 34 % SoCalGas 946 42 764 33 Sempra South American Utilities 105 5 126 5 Sempra Mexico 185 8 262 11 Sempra Renewables 47 2 174 8 Sempra Natural Gas 61 3 192 8 All other 48 2 12 1 Total $ 2,227 100 % $ 2,320 100 % September 30, 2015 December 31, 2014 ASSETS SDG&E $ 16,692 41 % $ 16,296 41 % SoCalGas 11,355 28 10,461 26 Sempra South American Utilities 3,265 8 3,379 9 Sempra Mexico 3,713 9 3,488 9 Sempra Renewables 1,351 3 1,338 3 Sempra Natural Gas 5,552 14 6,436 16 All other 1,118 3 895 2 Intersegment receivables (2,480) (6) (2,561) (6) Total $ 40,566 100 % $ 39,732 100 % INVESTMENTS IN EQUITY METHOD INVESTEES Sempra South American Utilities $ (11) $ (8) Sempra Mexico 491 434 Sempra Renewables 843 911 Sempra Natural Gas 1,435 1,347 All other 87 164 Total $ 2,845 $ 2,848 (1) Revenues for reportable segments include intersegment revenues of $2 million, $19 million, $24 million and $62 million for the three months ended September 30, 2015; $7 million, $55 million, $73 million and $151 million for the nine months ended September 30, 2015; $2 million, $17 million, $23 million and $107 million for the three months ended September 30, 2014; and $7 million, $51 million, $68 million and $266 million for the nine months ended September 30, 2014 for SDG&E, SoCalGas, Sempra Mexico and Sempra Natural Gas, respectively. (2) After preferred dividends. |
GENERAL (Details)
GENERAL (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2015 | Sep. 30, 2015 | |
Seasonality [Line Items] | ||
Higher (Lower) Earnings Due To Seasonality | $ (113) | $ (48) |
Higher (Lower) Utility Revenue Due to Seasonality | (158) | (67) |
Southern California Gas Company [Member] | ||
Seasonality [Line Items] | ||
Higher (Lower) Earnings Due To Seasonality | (113) | (48) |
Higher (Lower) Utility Revenue Due to Seasonality | $ (158) | $ (67) |
New Accounting Policy (details)
New Accounting Policy (details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
New Accounting Policy [Line Items] | ||
Deferred Finance Costs Net | $ 78 | $ 72 |
San Diego Gas and Electric Company [Member] | ||
New Accounting Policy [Line Items] | ||
Deferred Finance Costs Net | 32 | 33 |
Southern California Gas Company [Member] | ||
New Accounting Policy [Line Items] | ||
Deferred Finance Costs Net | $ 18 | $ 15 |
RECENT INVESTMENT ACTIVITY (Det
RECENT INVESTMENT ACTIVITY (Details) - USD ($) | Jul. 16, 2014 | Mar. 13, 2014 | Sep. 30, 2014 |
Deconsolidation of business [Line Items] | |||
Proceeds from sale, net of transaction costs | $ 94,000,000 | ||
Cash | (4,000,000) | ||
Other current assets | (11,000,000) | ||
Property, plant and equipment, net | (384,000,000) | ||
Other assets | (27,000,000) | ||
Accounts payable and accrued expenses | 92,000,000 | ||
Due to affiliate | 39,000,000 | ||
Long-term debt including current portion | 179,000,000 | ||
Other liabilities | 10,000,000 | ||
Accumulated other comprehensive income | (7,000,000) | ||
Gain on sale of equity interests | (46,000,000) | ||
Equity method investments upon deconsolidation | $ (65,000,000) | ||
Energia Sierra Juarez [Member] | |||
Deconsolidation of business [Line Items] | |||
Proceeds from sale, net of transaction costs | $ 26,000,000 | ||
Cash | (2,000,000) | ||
Other current assets | (11,000,000) | ||
Property, plant and equipment, net | (137,000,000) | ||
Other assets | (16,000,000) | ||
Accounts payable and accrued expenses | 10,000,000 | ||
Due to affiliate | 39,000,000 | ||
Long-term debt including current portion | 82,000,000 | ||
Other liabilities | 7,000,000 | ||
Accumulated other comprehensive income | (5,000,000) | ||
Gain on sale of equity interests | (19,000,000) | ||
Equity method investments upon deconsolidation | (26,000,000) | ||
Proceeds from sale, net of cash sold | $ 24,000,000 | ||
Mesquite Power [Member] | |||
Deconsolidation of business [Line Items] | |||
Gain on sale of equity interests | $ 61,000,000 | ||
Proceeds from sale | 347,000,000 | ||
Gain on sale, after tax | 36,000,000 | ||
Copper Mountain Solar 3 [Member] | |||
Deconsolidation of business [Line Items] | |||
Proceeds from sale, net of transaction costs | 68,000,000 | ||
Cash | (2,000,000) | ||
Other current assets | 0 | ||
Property, plant and equipment, net | (247,000,000) | ||
Other assets | (11,000,000) | ||
Accounts payable and accrued expenses | 82,000,000 | ||
Due to affiliate | 0 | ||
Long-term debt including current portion | 97,000,000 | ||
Other liabilities | 3,000,000 | ||
Accumulated other comprehensive income | (2,000,000) | ||
Gain on sale of equity interests | (27,000,000) | ||
Equity method investments upon deconsolidation | (39,000,000) | ||
Proceeds from sale, net of cash sold | 66,000,000 | ||
Gain on sale, after tax | $ 16,000,000 |
RECENT INVESTMENT ACTIVITY 2 (D
RECENT INVESTMENT ACTIVITY 2 (Details) - USD ($) $ in Millions | Jul. 16, 2014 | Sep. 30, 2015 | Mar. 13, 2014 |
Energia Sierra Juarez wind project [Member] | |||
Business Acquisition [Line Items] | |||
Equity Method Investment Ownership Percentage | 50.00% | ||
Deconsolidation Gain Or Loss Amount After Tax | $ 14 | ||
Gain attributable to remeasurement, after tax | $ 7 | ||
Copper Mountain Solar 3 [Member] | |||
Business Acquisition [Line Items] | |||
Equity Method Investment Ownership Percentage | 50.00% | ||
California Solar Partnership [Member] | |||
Business Acquisition [Line Items] | |||
Equity Method Investment Ownership Percentage | 50.00% | ||
Equity Investment In Solar Projects | $ 109 | ||
Additional Equity investment in solar projects | 12 | ||
Black Oak Getty Wind [Member] | |||
Business Acquisition [Line Items] | |||
Total business acquisition costs | $ 8 | ||
Ownership Percentage in consolidated entity | 100.00% |
RECENT INVESTMENT ACTIVITY 3 (D
RECENT INVESTMENT ACTIVITY 3 (Details) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2015 | Jul. 31, 2015 | |
IEnova [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership Percentage in consolidated entity | 25.00% | |
Business Acquisition Purchase Price Allocation Equity Method Investment | $ 1,325 | |
Net Debt Not Assumed By Investee | 170 | |
Ownership percentage before acquisition | 50.00% | |
Business Acquisition Percentage Of Voting Interests Acquired | 100.00% | |
Equity Method Investment Ownership Percentage | 50.00% | |
Expected Maximum Amount of Bank Commitments | $ 1,000 | |
PEMEX [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership Percentage in consolidated entity | 50.00% |
INVESTMENTS IN UNCONSOLIDATED33
INVESTMENTS IN UNCONSOLIDATED ENTITIES (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Schedule of Equity Method Investments [Line Items] | ||||
Equity Method Investments in Joint Ventures, capitalized interest | $ 18 | $ 6 | $ 52 | $ 22 |
Sempra Renewables [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Payments To Acquire Equity Method Investments | 18 | $ 76 | ||
Cameron LNG [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity Method Investments in Joint Ventures, capitalized interest | 36 | |||
Payments To Acquire Equity Method Investments | 10 | |||
Sempra Natural Gas [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Payments To Acquire Equity Method Investments | $ 113 |
OTHER FINANCIAL DATA - VARIABLE
OTHER FINANCIAL DATA - VARIABLE INTEREST ENTITIES (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Operating expenses | |||||
Cost Of Electric Fuel And Purchased Power From Utilities | $ 666 | $ 680 | $ 1,645 | $ 1,761 | |
Other operation and maintenance | 701 | 726 | 2,072 | 2,131 | |
Depreciation and amortization | 315 | 292 | 925 | 866 | |
Other income (expense), net | 12 | 29 | 88 | 118 | |
Interest expense | 143 | 144 | 416 | 418 | |
Net income | 282 | 383 | 1,060 | 941 | |
Earnings attributable to noncontrolling interest | (34) | (35) | (79) | (76) | |
Earnings attributable to common shares | 248 | 348 | 980 | 864 | |
Otay Mesa VIE [Member] | |||||
Operating expenses | |||||
Cost Of Electric Fuel And Purchased Power From Utilities | (27) | (27) | (66) | (67) | |
Other operation and maintenance | 3 | 3 | 13 | 13 | |
Depreciation and amortization | 7 | 7 | 19 | 21 | |
Operating Expenses | (17) | (17) | (34) | (33) | |
Utility operating income | 17 | 17 | 34 | 33 | |
Interest expense | (5) | (5) | (14) | (13) | |
Net income | 12 | 12 | 20 | 20 | |
Earnings attributable to noncontrolling interest | (12) | (12) | (20) | (20) | |
Earnings attributable to common shares | 0 | $ 0 | 0 | $ 0 | |
Equity of variable interest entity | 64 | 64 | $ 60 | ||
Secured debt of variable interest entity | 317 | 317 | |||
Cameron LNG Holdings [Member] | |||||
Schedule Of Equity Method And Other Investments [Line Items] | |||||
Equity Method And Other Investments | $ 956 | $ 956 | $ 1,007 |
OTHER FINANCIAL DATA - GOODWILL
OTHER FINANCIAL DATA - GOODWILL (Details) $ in Millions | Sep. 30, 2015USD ($) | |
Goodwill [Line Items] | ||
Goodwill, Beginning Balance | $ 931 | [1] |
Goodwill, Ending Balance | $ 847 | |
[1] | Derived from audited financial statements. |
OTHER FINANCIAL DATA - PENSION
OTHER FINANCIAL DATA - PENSION AND OTHER POSTRETIREMENT BENEFITS (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Pension Benefits | ||||
Net Periodic Benefit Cost | ||||
Service cost | $ 27 | $ 23 | $ 86 | $ 75 |
Interest cost | 38 | 39 | 116 | 121 |
Expected return on assets | (42) | (42) | (130) | (128) |
Amortization of prior service cost | 3 | 3 | 8 | 8 |
Amortization of actuarial loss | 9 | 3 | 28 | 13 |
Settlement | 4 | 5 | 4 | 14 |
Regulatory adjustment | (27) | 6 | (86) | (18) |
Total net periodic benefit cost | 12 | 37 | 26 | 85 |
Pension and Other Postretirement Benefit Contributions [Abstract] | ||||
Contributions to pension plans | 27 | |||
Expected contributions to benefit plans | 36 | |||
Pension Benefits | San Diego Gas and Electric Company [Member] | ||||
Net Periodic Benefit Cost | ||||
Service cost | 6 | 8 | 22 | 23 |
Interest cost | 9 | 10 | 29 | 32 |
Expected return on assets | (14) | (13) | (41) | (41) |
Amortization of prior service cost | 1 | 1 | ||
Amortization of actuarial loss | 3 | 1 | 7 | 3 |
Settlement | 0 | 0 | 0 | 2 |
Regulatory adjustment | (3) | 6 | (15) | 7 |
Total net periodic benefit cost | 1 | 12 | 3 | 27 |
Pension and Other Postretirement Benefit Contributions [Abstract] | ||||
Contributions to pension plans | 2 | |||
Expected contributions to benefit plans | 3 | |||
Pension Benefits | Southern California Gas Company [Member] | ||||
Net Periodic Benefit Cost | ||||
Service cost | 17 | 13 | 55 | 45 |
Interest cost | 25 | 24 | 74 | 75 |
Expected return on assets | (25) | (26) | (79) | (78) |
Amortization of prior service cost | 2 | 2 | 6 | 6 |
Amortization of actuarial loss | 5 | 1 | 16 | 5 |
Settlement | 0 | 4 | 0 | 4 |
Regulatory adjustment | (24) | 0 | (71) | (25) |
Total net periodic benefit cost | 0 | 18 | 1 | 32 |
Pension and Other Postretirement Benefit Contributions [Abstract] | ||||
Contributions to pension plans | 1 | |||
Expected contributions to benefit plans | 7 | |||
Other Postretirement Benefits | ||||
Net Periodic Benefit Cost | ||||
Service cost | 5 | 6 | 19 | 18 |
Interest cost | 10 | 13 | 33 | 37 |
Expected return on assets | (17) | (15) | (51) | (47) |
Amortization of prior service cost | (1) | (2) | (2) | (4) |
Amortization of actuarial loss | 0 | 0 | 0 | 0 |
Settlement | 0 | 5 | 0 | 5 |
Regulatory adjustment | 4 | 5 | 4 | 5 |
Total net periodic benefit cost | 1 | 12 | 3 | 14 |
Pension and Other Postretirement Benefit Contributions [Abstract] | ||||
Contributions to other postretirement benefit plans | 3 | |||
Expected contributions to benefit plans | 11 | |||
Other Postretirement Benefits | San Diego Gas and Electric Company [Member] | ||||
Net Periodic Benefit Cost | ||||
Service cost | 1 | 2 | 5 | 5 |
Interest cost | 2 | 3 | 6 | 7 |
Expected return on assets | (2) | (2) | (8) | (8) |
Amortization of prior service cost | 2 | 2 | ||
Amortization of actuarial loss | 0 | 0 | 0 | 0 |
Settlement | 0 | 5 | 0 | 5 |
Regulatory adjustment | (1) | 4 | (5) | 1 |
Total net periodic benefit cost | 0 | 12 | 0 | 12 |
Pension and Other Postretirement Benefit Contributions [Abstract] | ||||
Contributions to other postretirement benefit plans | 0 | |||
Expected contributions to benefit plans | 7 | |||
Other Postretirement Benefits | Southern California Gas Company [Member] | ||||
Net Periodic Benefit Cost | ||||
Service cost | 3 | 4 | 13 | 12 |
Interest cost | 8 | 9 | 26 | 28 |
Expected return on assets | (14) | (12) | (42) | (38) |
Amortization of prior service cost | (2) | (2) | (6) | (6) |
Amortization of actuarial loss | 0 | 0 | 0 | 0 |
Settlement | 0 | 0 | 0 | 0 |
Regulatory adjustment | 5 | 1 | 9 | 4 |
Total net periodic benefit cost | $ 0 | $ 0 | 0 | $ 0 |
Pension and Other Postretirement Benefit Contributions [Abstract] | ||||
Contributions to other postretirement benefit plans | 0 | |||
Expected contributions to benefit plans | $ 1 |
OTHER FINANCIAL DATA - RABBI TR
OTHER FINANCIAL DATA - RABBI TRUST (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 | |
Rabbi Trust Disclosure [Abstract] | |||
Rabbi Trust | $ 459 | $ 512 | [1] |
[1] | Derived from audited financial statements. |
OTHER FINANCIAL DATA - EARNINGS
OTHER FINANCIAL DATA - EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | ||
Earnings Per Share Numerator [Abstract] | |||||
Earnings | $ 248 | $ 348 | $ 980 | $ 864 | |
Earnings Per Share Denominator [Abstract] | |||||
Weighted-average common shares outstanding for basic EPS | [1] | 248,432,000 | 246,137,000 | 248,090,000 | 245,703,000 |
Weighted-average common shares outstanding for diluted EPS | 251,024,000 | 250,771,000 | 250,665,000 | 250,278,000 | |
Vested RSUs included in basic WASO | 504,000 | 222,000 | 486,000 | 209,000 | |
Dilutive effect of stock options, restricted stock awards and restricted stock units | 2,592,000 | 4,634,000 | 2,575,000 | 4,575,000 | |
Earnings Per Share [Abstract] | |||||
Basic earnings per common share | $ 1 | $ 1.41 | $ 3.95 | $ 3.52 | |
Diluted earnings per common share | $ 0.99 | $ 1.39 | $ 3.91 | $ 3.45 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Shares excluded from potential dilutive shares | 2,001,020 | 844,251 | 2,047,656 | 971,943 | |
Performance RSU minimum [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Sharebased Compensation Arrangement By Sharebased Payment Award Award Vesting Rights Percentage | 0.00% | ||||
Performance RSU max prior to 2014 [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Sharebased Compensation Arrangement By Sharebased Payment Award Award Vesting Rights Percentage | 150.00% | ||||
Performance RSU max in 2014 and after [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Sharebased Compensation Arrangement By Sharebased Payment Award Award Vesting Rights Percentage | 200.00% | ||||
Service and Other Awards max [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Sharebased Compensation Arrangement By Sharebased Payment Award Award Vesting Rights Percentage | 100.00% | ||||
Out Of The Money Stock Options [Member] | |||||
Antidilutive Securities Excluded From Computation of Earnings Per Share [Line Items] | |||||
Antidilutive securities excluded from computation of earnings per share | 0 | 0 | 0 | 0 | |
Employee Stock Option [Member] | |||||
Antidilutive Securities Excluded From Computation of Earnings Per Share [Line Items] | |||||
Antidilutive securities excluded from computation of earnings per share | 0 | 0 | 0 | 0 | |
Restricted Stock [Member] | |||||
Antidilutive Securities Excluded From Computation of Earnings Per Share [Line Items] | |||||
Antidilutive securities excluded from computation of earnings per share | 0 | 0 | 0 | 0 | |
Restricted Stock Units [Member] | |||||
Antidilutive Securities Excluded From Computation of Earnings Per Share [Line Items] | |||||
Antidilutive securities excluded from computation of earnings per share | 0 | 0 | 0 | 0 | |
[1] | Includes fully vested restricted stock units of 504 and 222 held in our Deferred Compensation Plan for the three months ended September 30, 2015 and 2014, respectively, and 486 and 209 for the nine months ended September 30, 2015 and 2014, respectively. These fully vested restricted stock units 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. |
OTHER FINANCIAL DATA - SHARE-BA
OTHER FINANCIAL DATA - SHARE-BASED COMPENSATION (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share-based compensation expense, net of income taxes | $ 7 | $ 8 | $ 22 | $ 22 |
IENova Plans [Member] [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Restricted stock units granted | 278,538 | |||
Service-Based [Member] | Sempra Energy Plans [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Restricted stock units granted | 133,159 | |||
Performance-Based, Total Shareholder Return [Member] | Sempra Energy Plans [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Restricted stock units granted | 301,319 | |||
Performance-Based, Earnings Per Share [Member] | Sempra Energy Plans [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Restricted stock units granted | 76,675 |
OTHER FINANCIAL DATA - CAPITALI
OTHER FINANCIAL DATA - CAPITALIZED FINANCING COSTS (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Capitalized Financing Costs Disclosure [Line Items] | ||||
AFUDC related to debt | $ 6 | $ 5 | $ 19 | $ 15 |
AFUDC related to equity | 26 | 28 | 84 | 77 |
Other capitalized financing costs | 18 | 6 | 52 | 22 |
Total capitalized financing costs | 50 | 39 | 155 | 114 |
San Diego Gas and Electric Company [Member] | ||||
Capitalized Financing Costs Disclosure [Line Items] | ||||
AFUDC related to debt | 3 | 3 | 10 | 10 |
AFUDC related to equity | 9 | 8 | 27 | 26 |
Total capitalized financing costs | 12 | 11 | 37 | 36 |
Southern California Gas Company [Member] | ||||
Capitalized Financing Costs Disclosure [Line Items] | ||||
AFUDC related to debt | 3 | 2 | 9 | 5 |
AFUDC related to equity | 10 | 7 | 29 | 18 |
Other capitalized financing costs | 1 | 0 | 1 | 0 |
Total capitalized financing costs | $ 14 | $ 9 | $ 39 | $ 23 |
OTHER FINANCIAL DATA - COMPREHE
OTHER FINANCIAL DATA - COMPREHENSIVE INCOME AND EQUITY (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |||
Comprehensive Income Disclosure [Line Items] | |||||||
Equity, beginning of period | $ 12,100 | [1] | $ 11,850 | ||||
Comprehensive income (loss) | 773 | 788 | |||||
Share-based compensation expense | 39 | 35 | |||||
Common stock dividends declared | (520) | (486) | |||||
Preferred dividends of subsidiary | $ 0 | $ 0 | (1) | (1) | |||
Issuance of common stock | 82 | 71 | |||||
Tax benefit related to share-based compensation | 56 | 22 | |||||
Repurchases of common stock | (74) | (38) | |||||
Noncontrolling Interest Increase | 1 | 1 | |||||
Distributions to noncontrolling interests | (60) | (85) | |||||
Equity, end of period | 12,396 | 12,157 | 12,396 | 12,157 | |||
Ownership Interests Held By Others [Line Items] | |||||||
Amount of ownership interests held by others | 751 | 751 | $ 754 | ||||
San Diego Gas and Electric Company [Member] | |||||||
Comprehensive Income Disclosure [Line Items] | |||||||
Equity, beginning of period | 4,992 | [1] | 4,719 | ||||
Comprehensive income (loss) | 463 | 404 | |||||
Common stock dividends declared | (150) | ||||||
Distributions to noncontrolling interests | (16) | (37) | |||||
Equity, end of period | 5,289 | 5,086 | 5,289 | 5,086 | |||
Southern California Gas Company [Member] | |||||||
Comprehensive Income Disclosure [Line Items] | |||||||
Equity, beginning of period | 2,781 | [1] | 2,549 | ||||
Comprehensive income (loss) | 277 | 259 | |||||
Common stock dividends declared | (50) | ||||||
Preferred dividend requirements | 0 | 0 | (1) | (1) | |||
Equity, end of period | 3,007 | 2,807 | 3,007 | 2,807 | |||
Total Shareholders' Equity | |||||||
Comprehensive Income Disclosure [Line Items] | |||||||
Equity, beginning of period | 11,326 | 11,008 | |||||
Comprehensive income (loss) | 717 | 722 | |||||
Share-based compensation expense | 39 | 35 | |||||
Common stock dividends declared | (520) | (486) | |||||
Preferred dividends of subsidiary | (1) | (1) | |||||
Issuance of common stock | 82 | 71 | |||||
Tax benefit related to share-based compensation | 56 | 22 | |||||
Repurchases of common stock | (74) | (38) | |||||
Noncontrolling Interest Increase | 0 | 0 | |||||
Distributions to noncontrolling interests | 0 | 0 | |||||
Equity, end of period | 11,625 | 11,333 | 11,625 | 11,333 | |||
Total Shareholders' Equity | San Diego Gas and Electric Company [Member] | |||||||
Comprehensive Income Disclosure [Line Items] | |||||||
Equity, beginning of period | 4,932 | 4,628 | |||||
Comprehensive income (loss) | 443 | 381 | |||||
Common stock dividends declared | (150) | ||||||
Distributions to noncontrolling interests | 0 | 0 | |||||
Equity, end of period | 5,225 | 5,009 | 5,225 | 5,009 | |||
Noncontrolling Interests [Member] | |||||||
Comprehensive Income Disclosure [Line Items] | |||||||
Equity, beginning of period | 774 | 842 | |||||
Comprehensive income (loss) | 56 | 66 | |||||
Share-based compensation expense | 0 | 0 | |||||
Common stock dividends declared | 0 | 0 | |||||
Preferred dividends of subsidiary | 0 | 0 | |||||
Issuance of common stock | 0 | 0 | |||||
Tax benefit related to share-based compensation | 0 | 0 | |||||
Repurchases of common stock | 0 | 0 | |||||
Noncontrolling Interest Increase | 1 | 1 | |||||
Distributions to noncontrolling interests | (60) | (85) | |||||
Equity, end of period | 771 | 824 | 771 | 824 | |||
Noncontrolling Interests [Member] | San Diego Gas and Electric Company [Member] | |||||||
Comprehensive Income Disclosure [Line Items] | |||||||
Equity, beginning of period | 60 | 91 | |||||
Comprehensive income (loss) | 20 | 23 | |||||
Common stock dividends declared | 0 | ||||||
Distributions to noncontrolling interests | (16) | (37) | |||||
Equity, end of period | $ 64 | $ 77 | $ 64 | $ 77 | |||
Ownership Interests Held By Others, Bay Gas Storage Company [Member] | |||||||
Ownership Interests Held By Others [Line Items] | |||||||
Percent of ownership held by others | 9.10% | 9.10% | 9.10% | ||||
Amount of ownership interests held by others | $ 25 | $ 25 | $ 23 | ||||
Ownership Interests Held By Others, Southern Gas Transmission [Member] | |||||||
Ownership Interests Held By Others [Line Items] | |||||||
Percent of ownership held by others | 49.00% | 49.00% | 49.00% | ||||
Amount of ownership interests held by others | $ 1 | $ 1 | $ 1 | ||||
Ownership Interests Held By Others, Liberty Gas Storage [Member] | |||||||
Ownership Interests Held By Others [Line Items] | |||||||
Percent of ownership held by others | 23.70% | 23.70% | 25.00% | ||||
Amount of ownership interests held by others | $ 12 | $ 12 | $ 14 | ||||
Ownership Interests Held By Others, Tecsur [Member] | |||||||
Ownership Interests Held By Others [Line Items] | |||||||
Percent of ownership held by others | 9.80% | 9.80% | 9.80% | ||||
Amount of ownership interests held by others | $ 3 | $ 3 | $ 4 | ||||
Ownership Interests Held By Others, Luz Del Sur [Member] | |||||||
Ownership Interests Held By Others [Line Items] | |||||||
Percent of ownership held by others | 16.40% | 16.40% | 16.40% | ||||
Amount of ownership interests held by others | $ 171 | $ 171 | $ 177 | ||||
Ownership Interests Held By Others, Chilquinta Energia [Member] | |||||||
Ownership Interests Held By Others [Line Items] | |||||||
Percent of ownership held by others, minimum | [2] | 23.50% | 23.50% | 23.60% | |||
Percent of ownership held by others, maximum | [2] | 43.40% | 43.40% | 43.40% | |||
Amount of ownership interests held by others | [2] | $ 20 | $ 20 | $ 23 | |||
Otay Mesa VIE [Member] | |||||||
Ownership Interests Held By Others [Line Items] | |||||||
Percent of ownership held by others | 100.00% | 100.00% | 100.00% | ||||
Amount of ownership interests held by others | $ 64 | $ 64 | $ 60 | ||||
Ownership Interests Held By Others IEnova [Member] | |||||||
Ownership Interests Held By Others [Line Items] | |||||||
Percent of ownership held by others | 18.90% | 18.90% | 18.90% | ||||
Amount of ownership interests held by others | $ 455 | $ 455 | $ 452 | ||||
[1] | Derived from audited financial statements. | ||||||
[2] | Chilquinta Energía has four subsidiaries with noncontrolling interests held by others. Percentage range reflects the highest and lowest ownership percentages amongst these subsidiaries. |
OTHER FINANCIAL DATA - COMPRE42
OTHER FINANCIAL DATA - COMPREHENSIVE INCOME AND EQUITY 2 (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | ||||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax, beginning balance | [1] | $ (596,000,000) | $ (273,000,000) | [2] | $ (497,000,000) | [2] | $ (228,000,000) | ||
Other Comprehensive Income Loss Before Reclassifications Net Of Tax | [1] | (171,000,000) | (102,000,000) | (273,000,000) | (169,000,000) | ||||
Amounts Reclassified From Accumulated Other Comprehensive Income | [1] | 6,000,000 | 4,000,000 | 9,000,000 | 26,000,000 | ||||
Net Other Comprehensive Income | [1] | (165,000,000) | (98,000,000) | (264,000,000) | (143,000,000) | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax, ending balance | [1] | (761,000,000) | (371,000,000) | (761,000,000) | (371,000,000) | ||||
San Diego Gas and Electric Company [Member] | |||||||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax, beginning balance | (12,000,000) | [1] | (8,000,000) | [1] | (12,000,000) | [2] | (9,000,000) | [1] | |
Amounts Reclassified From Accumulated Other Comprehensive Income | [1] | 1,000,000 | 2,000,000 | ||||||
Net Other Comprehensive Income | [1] | 1,000,000 | 2,000,000 | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax, ending balance | [1] | (12,000,000) | (7,000,000) | (12,000,000) | (7,000,000) | ||||
Southern California Gas Company [Member] | |||||||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax, beginning balance | (18,000,000) | [1] | (18,000,000) | [1] | (18,000,000) | [2] | (18,000,000) | [1] | |
Amounts Reclassified From Accumulated Other Comprehensive Income | [1] | 2,000,000 | 2,000,000 | ||||||
Net Other Comprehensive Income | [1] | 2,000,000 | 2,000,000 | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax, ending balance | [1] | (18,000,000) | (16,000,000) | (18,000,000) | (16,000,000) | ||||
Accumulated Translation Adjustment [Member] | |||||||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax, beginning balance | [1] | (427,000,000) | (170,000,000) | (322,000,000) | (129,000,000) | ||||
Other Comprehensive Income Loss Before Reclassifications Net Of Tax | [1] | (92,000,000) | (100,000,000) | (197,000,000) | (141,000,000) | ||||
Amounts Reclassified From Accumulated Other Comprehensive Income | [1] | 0 | 0 | 0 | 0 | ||||
Net Other Comprehensive Income | [1] | (92,000,000) | (100,000,000) | (197,000,000) | (141,000,000) | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax, ending balance | [1] | (519,000,000) | (270,000,000) | (519,000,000) | (270,000,000) | ||||
Accumulated Defined Benefit Plans Adjustment Net Unamortized Gain Loss [Member] | |||||||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax, beginning balance | [1] | (81,000,000) | (65,000,000) | (83,000,000) | (73,000,000) | ||||
Other Comprehensive Income Loss Before Reclassifications Net Of Tax | [1] | 0 | 0 | 0 | 0 | ||||
Amounts Reclassified From Accumulated Other Comprehensive Income | [1] | 5,000,000 | 5,000,000 | 7,000,000 | 13,000,000 | ||||
Net Other Comprehensive Income | [1] | 5,000,000 | 5,000,000 | 7,000,000 | 13,000,000 | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax, ending balance | [1] | (76,000,000) | (60,000,000) | (76,000,000) | (60,000,000) | ||||
Accumulated Defined Benefit Plans Adjustment Net Unamortized Gain Loss [Member] | San Diego Gas and Electric Company [Member] | |||||||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax, beginning balance | [1] | (13,000,000) | (9,000,000) | (13,000,000) | (10,000,000) | ||||
Amounts Reclassified From Accumulated Other Comprehensive Income | [1] | 1,000,000 | 2,000,000 | ||||||
Net Other Comprehensive Income | [1] | 1,000,000 | 2,000,000 | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax, ending balance | [1] | (13,000,000) | (8,000,000) | (13,000,000) | (8,000,000) | ||||
Accumulated Defined Benefit Plans Adjustment Net Unamortized Gain Loss [Member] | Southern California Gas Company [Member] | |||||||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax, beginning balance | [1] | (5,000,000) | (5,000,000) | (5,000,000) | (5,000,000) | ||||
Amounts Reclassified From Accumulated Other Comprehensive Income | [1] | 2,000,000 | 2,000,000 | ||||||
Net Other Comprehensive Income | [1] | 2,000,000 | 2,000,000 | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax, ending balance | [1] | (5,000,000) | (3,000,000) | (5,000,000) | (3,000,000) | ||||
Accumulated Defined Benefit Plans Adjustment Net Prior Service Cost Credit [Member] | |||||||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax, beginning balance | [1] | (2,000,000) | 0 | (2,000,000) | 0 | ||||
Other Comprehensive Income Loss Before Reclassifications Net Of Tax | [1] | 0 | 0 | 0 | 0 | ||||
Amounts Reclassified From Accumulated Other Comprehensive Income | [1] | 0 | 0 | 0 | 0 | ||||
Net Other Comprehensive Income | [1] | 0 | 0 | 0 | 0 | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax, ending balance | [1] | (2,000,000) | 0 | (2,000,000) | 0 | ||||
Accumulated Defined Benefit Plans Adjustment Net Prior Service Cost Credit [Member] | San Diego Gas and Electric Company [Member] | |||||||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax, beginning balance | [1] | 1,000,000 | 1,000,000 | 1,000,000 | 1,000,000 | ||||
Amounts Reclassified From Accumulated Other Comprehensive Income | [1] | 0 | 0 | ||||||
Net Other Comprehensive Income | [1] | 0 | 0 | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax, ending balance | [1] | 1,000,000 | 1,000,000 | 1,000,000 | 1,000,000 | ||||
Accumulated Defined Benefit Plans Adjustment Net Prior Service Cost Credit [Member] | Southern California Gas Company [Member] | |||||||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax, beginning balance | [1] | 1,000,000 | 1,000,000 | 1,000,000 | 1,000,000 | ||||
Amounts Reclassified From Accumulated Other Comprehensive Income | [1] | 0 | 0 | ||||||
Net Other Comprehensive Income | [1] | 0 | 0 | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax, ending balance | [1] | 1,000,000 | 1,000,000 | 1,000,000 | 1,000,000 | ||||
Accumulated Net Gain Loss From Designated Or Qualifying Cash Flow Hedges [Member] | |||||||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax, beginning balance | [1] | (86,000,000) | (38,000,000) | (90,000,000) | (26,000,000) | ||||
Other Comprehensive Income Loss Before Reclassifications Net Of Tax | [1] | (79,000,000) | (2,000,000) | (76,000,000) | (28,000,000) | ||||
Amounts Reclassified From Accumulated Other Comprehensive Income | [1] | 1,000,000 | (1,000,000) | 2,000,000 | 13,000,000 | ||||
Net Other Comprehensive Income | [1] | (78,000,000) | (3,000,000) | (74,000,000) | (15,000,000) | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax, ending balance | [1] | (164,000,000) | (41,000,000) | (164,000,000) | (41,000,000) | ||||
Accumulated Net Gain Loss From Designated Or Qualifying Cash Flow Hedges [Member] | Southern California Gas Company [Member] | |||||||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax, beginning balance | [1] | (14,000,000) | (14,000,000) | (14,000,000) | (14,000,000) | ||||
Amounts Reclassified From Accumulated Other Comprehensive Income | [1] | 0 | 0 | ||||||
Net Other Comprehensive Income | [1] | 0 | 0 | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax, ending balance | [1] | $ (14,000,000) | $ (14,000,000) | $ (14,000,000) | $ (14,000,000) | ||||
[1] | All amounts are net of income tax, if subject to tax, and exclude noncontrolling interests. | ||||||||
[2] | Derived from audited financial statements. |
OTHER FINANCIAL DATA - COMPRE43
OTHER FINANCIAL DATA - COMPREHENSIVE INCOME AND EQUITY 3 (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | ||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||
Equity earnings, net of income tax. | $ 27 | $ 7 | $ 64 | $ 22 | |
Interest expense | (143) | (144) | (416) | (418) | |
Equity Earnings (Losses) Recorded Before Tax | 33 | 22 | 79 | 62 | |
Revenues - energy related businesses | 268 | 352 | 762 | 970 | |
Total before income tax | 270 | 447 | 1,272 | 1,210 | |
Income tax (expense) benefit | (15) | (71) | (276) | (291) | |
Earnings attributable to noncontrolling interest | (34) | (35) | (79) | (76) | |
Grand total reclassifications for the period, net of tax | 6 | 4 | 9 | 26 | |
San Diego Gas and Electric Company [Member] | |||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||
Interest expense | (51) | (51) | (155) | (152) | |
Total before income tax | 257 | 234 | 680 | 616 | |
Income tax (expense) benefit | (75) | (65) | (217) | (217) | |
Earnings attributable to noncontrolling interest | (12) | (12) | (20) | (20) | |
Grand total reclassifications for the period, net of tax | 0 | 1 | 0 | 2 | |
Southern California Gas Company [Member] | |||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||
Interest expense | (23) | (17) | (61) | (50) | |
Total before income tax | (28) | 142 | 368 | 367 | |
Income tax (expense) benefit | 20 | (44) | (91) | (110) | |
Grand total reclassifications for the period, net of tax | 0 | 2 | 0 | 2 | |
Accumulated Defined Benefit Plans Adjustment [Member] | |||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||
Income tax (expense) benefit | (2) | (3) | (4) | (8) | |
Total reclassifications for the period, net of tax | 5 | 5 | 7 | 13 | |
Accumulated Defined Benefit Plans Adjustment [Member] | San Diego Gas and Electric Company [Member] | |||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||
Income tax (expense) benefit | 0 | 0 | 0 | (1) | |
Total reclassifications for the period, net of tax | 0 | 1 | 0 | 2 | |
Accumulated Defined Benefit Plans Adjustment [Member] | Southern California Gas Company [Member] | |||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||
Income tax (expense) benefit | 0 | (2) | 0 | (2) | |
Total reclassifications for the period, net of tax | 0 | 2 | 0 | 2 | |
Accumulated Defined Benefit Plans Adjustment [Member] | Amortization of Actuarial Loss [Member] | |||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||
Pension and other postretirement benefit expense | [1] | 7 | 8 | 11 | 21 |
Accumulated Defined Benefit Plans Adjustment [Member] | Amortization of Actuarial Loss [Member] | San Diego Gas and Electric Company [Member] | |||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||
Pension and other postretirement benefit expense | [1] | 0 | 1 | 0 | 3 |
Accumulated Defined Benefit Plans Adjustment [Member] | Amortization of Actuarial Loss [Member] | Southern California Gas Company [Member] | |||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||
Pension and other postretirement benefit expense | [1] | 0 | 4 | 0 | 4 |
Accumulated Net Gain Loss From Designated Or Qualifying Cash Flow Hedges [Member] | |||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||
Total before income tax | 5 | 3 | 13 | 29 | |
Income tax (expense) benefit | (1) | (1) | 1 | (8) | |
Net of Income Tax | 4 | 2 | 12 | 21 | |
Earnings attributable to noncontrolling interest | (3) | (3) | (10) | (8) | |
Total reclassifications for the period, net of tax | 1 | (1) | 2 | 13 | |
Accumulated Net Gain Loss From Designated Or Qualifying Cash Flow Hedges [Member] | San Diego Gas and Electric Company [Member] | |||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||
Earnings attributable to noncontrolling interest | (3) | (3) | (9) | (8) | |
Total reclassifications for the period, net of tax | 0 | 0 | 0 | 0 | |
Accumulated Net Gain Loss From Designated Or Qualifying Cash Flow Hedges [Member] | Interest Rate And Foreign Exchange Instruments [Member] | |||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||
Interest expense | 5 | 8 | 14 | 17 | |
Accumulated Net Gain Loss From Designated Or Qualifying Cash Flow Hedges [Member] | Interest Rate Instruments [Member] | |||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||
Gain on sale of equity interests and assets | 0 | 5 | 0 | (3) | |
Equity Earnings (Losses) Recorded Before Tax | 3 | 2 | (9) | (7) | |
Accumulated Net Gain Loss From Designated Or Qualifying Cash Flow Hedges [Member] | Interest Rate Instruments [Member] | San Diego Gas and Electric Company [Member] | |||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||
Interest expense | 3 | 3 | 9 | 8 | |
Accumulated Net Gain Loss From Designated Or Qualifying 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 | $ (3) | $ (2) | $ (10) | $ 8 | |
[1] | Amounts are included in the computation of net periodic benefit cost (see "Pension and Other Postretirement Benefits" above). |
OTHER FINANCIAL DATA - TRANSACT
OTHER FINANCIAL DATA - TRANSACTIONS WITH AFFILIATES (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | ||||
Transactions With Affiliates Disclosure [Line Items] | ||||||||
Due from affiliate, noncurrent | [1] | $ 178 | $ 178 | $ 226 | ||||
San Diego Gas and Electric Company [Member] | ||||||||
Transactions With Affiliates Disclosure [Line Items] | ||||||||
Due from affiliate, current | 1 | 1 | 1 | |||||
Due to affiliate, current | 22 | 22 | 21 | |||||
Revenues from unconsolidated affiliates | 3 | $ 2 | 8 | $ 8 | ||||
Southern California Gas Company [Member] | ||||||||
Transactions With Affiliates Disclosure [Line Items] | ||||||||
Due from affiliate, current | 220 | 220 | 4 | |||||
Due to affiliate, current | 51 | 51 | 13 | |||||
Revenues from unconsolidated affiliates | 19 | $ 17 | 55 | $ 51 | ||||
Due to/from Sempra Energy | San Diego Gas and Electric Company [Member] | ||||||||
Transactions With Affiliates Disclosure [Line Items] | ||||||||
Due to affiliate, current | 22 | 22 | 17 | |||||
Income taxes due from Sempra Energy | [2] | 41 | 16 | |||||
Due to/from Sempra Energy | Southern California Gas Company [Member] | ||||||||
Transactions With Affiliates Disclosure [Line Items] | ||||||||
Due from affiliate, current | 220 | [3] | 220 | [3] | 0 | |||
Due to affiliate, current | 0 | 0 | 13 | |||||
Income taxes due from Sempra Energy | [2] | 29 | 9 | |||||
Loan to unconsolidated affiliate, principal | 250 | $ 250 | ||||||
Interest rate on due from affiliate, noncurrent | 0.10% | |||||||
Subsidiary Of Common Parent S D G E [Member] | Southern California Gas Company [Member] | ||||||||
Transactions With Affiliates Disclosure [Line Items] | ||||||||
Due from affiliate, current | 0 | $ 0 | 4 | |||||
Due to affiliate, current | 1 | 1 | 0 | |||||
Subsdiary Of Common Parent So Cal Gas [Member] | San Diego Gas and Electric Company [Member] | ||||||||
Transactions With Affiliates Disclosure [Line Items] | ||||||||
Due from affiliate, current | 1 | 1 | 0 | |||||
Due to affiliate, current | 0 | 0 | 4 | |||||
Subsidiary Of Common Parent Other Affiliates [Member] | San Diego Gas and Electric Company [Member] | ||||||||
Transactions With Affiliates Disclosure [Line Items] | ||||||||
Due from affiliate, current | 0 | 0 | 1 | |||||
Subsidiary Of Common Parent Other Affiliates [Member] | Southern California Gas Company [Member] | ||||||||
Transactions With Affiliates Disclosure [Line Items] | ||||||||
Due to affiliate, current | $ 50 | $ 50 | $ 0 | |||||
[1] | Amounts include principal balances plus accumulated interest outstanding. | |||||||
[2] | 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. | |||||||
[3] | Net receivable includes a loan to Sempra Energy of $250 million at September 30, 2015 at an interest rate of 0.10 percent. |
OTHER FINANCIAL DATA - TRANSA45
OTHER FINANCIAL DATA - TRANSACTIONS WITH AFFILIATES 2 (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2015 | Sep. 30, 2015 | Dec. 31, 2014 | ||||
Transactions With Affiliates Disclosure [Line Items] | ||||||
Due from affiliate, noncurrent | [1] | $ 178 | $ 178 | $ 226 | ||
Joint venture with PEMEX [Member] | ||||||
Transactions With Affiliates Disclosure [Line Items] | ||||||
Interest rate on due from affiliate, noncurrent | 4.69% | |||||
PEMEX Four year loan C [Member] | ||||||
Transactions With Affiliates Disclosure [Line Items] | ||||||
Due from affiliate, noncurrent | [1],[2],[3] | $ 8 | 8 | 8 | ||
PEMEX Three year loan A [Member] | ||||||
Transactions With Affiliates Disclosure [Line Items] | ||||||
Due from affiliate, noncurrent | [1],[2],[3] | 3 | [4] | 3 | [4] | 44 |
Repayment Of Notes Receivable From Related Parties | 41 | |||||
PEMEX Four year loan B [Member] | ||||||
Transactions With Affiliates Disclosure [Line Items] | ||||||
Due from affiliate, noncurrent | [1],[2],[3] | 34 | 34 | 33 | ||
PEMEX Four year loan A [Member] | ||||||
Transactions With Affiliates Disclosure [Line Items] | ||||||
Due from affiliate, noncurrent | [1],[2],[3] | 41 | 41 | 40 | ||
ESJ joint venture [Member] | ||||||
Transactions With Affiliates Disclosure [Line Items] | ||||||
Due from affiliate, noncurrent | [1],[5] | $ 24 | 24 | 22 | ||
Interest rate on due from affiliate, noncurrent | 6.57% | |||||
Eletrans [Member] | ||||||
Transactions With Affiliates Disclosure [Line Items] | ||||||
Due from affiliate, noncurrent | [1],[6] | $ 65 | 65 | 41 | ||
Interest rate on due from affiliate, noncurrent | 4.00% | |||||
Affiliate Of Investee [Member] | ||||||
Transactions With Affiliates Disclosure [Line Items] | ||||||
Due From Joint Ventures Noncurrent | [1],[7] | $ 3 | $ 3 | $ 38 | ||
[1] | Amounts include principal balances plus accumulated interest outstanding. | |||||
[2] | Petróleos Mexicanos (or PEMEX, the Mexican state-owned oil company). | |||||
[3] | U.S. dollar-denominated loan, at a variable interest rate based on a 30-day LIBOR plus 450 basis points (4.69 percent at September 30, 2015), to finance the Los Ramones Norte pipeline project. | |||||
[4] | In May 2015, $41 million was paid with proceeds from project financing at the affiliate. | |||||
[5] | U.S. dollar-denominated loan, at a variable interest rate based on a 30-day LIBOR plus 637.5 basis points (6.57 percent at September 30, 2015), to finance the first phase of the Energía Sierra Juárez wind project. | |||||
[6] | U.S. dollar-denominated loan, at a fixed interest rate with no stated maturity date, to provide project financing for the construction of transmission lines at Eletrans S.A., an affiliate of Chilquinta Energía. | |||||
[7] | Amounts represent accounts receivable from various Sempra Renewables and Sempra Mexico joint venture investments. |
OTHER FINANCIAL DATA - OTHER IN
OTHER FINANCIAL DATA - OTHER INCOME (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | ||
Component of Other Income, Nonoperating [Line Items] | |||||
AFUDC related to equity | $ 26 | $ 28 | $ 84 | $ 77 | |
Investment gains (losses) | [1] | (12) | (3) | (5) | 20 |
Gains (losses) on interest rate and foreign exchange instruments, net | (4) | (6) | (7) | 3 | |
Foreign currency gain (losses) | (3) | (2) | (6) | (1) | |
Sale of other investments | 2 | 1 | 8 | 1 | |
Electrical infrastructure relocation income | [2] | 0 | 4 | 4 | 7 |
Regulatory Interest, net | [3] | 1 | 2 | 3 | 5 |
Sundry, net | 2 | 5 | 7 | 6 | |
Total | 12 | 29 | 88 | 118 | |
San Diego Gas and Electric Company [Member] | |||||
Component of Other Income, Nonoperating [Line Items] | |||||
AFUDC related to equity | 9 | 8 | 27 | 26 | |
Regulatory Interest, net | [3] | 1 | 2 | 3 | 5 |
Sundry, net | (2) | (1) | (4) | (2) | |
Total | 8 | 9 | 26 | 29 | |
Southern California Gas Company [Member] | |||||
Component of Other Income, Nonoperating [Line Items] | |||||
AFUDC related to equity | 10 | 7 | 29 | 18 | |
Sundry, net | (2) | (1) | (4) | (5) | |
Total | $ 8 | $ 6 | $ 25 | $ 13 | |
[1] | 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. | ||||
[2] | Income at Luz del Sur associated with the relocation of electrical infrastructure. | ||||
[3] | Interest on regulatory balancing accounts. |
OTHER FINANCIAL DATA - INCOME T
OTHER FINANCIAL DATA - INCOME TAXES (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Tax Expense And Effective Income Tax Rates Disclosure [Line Items] | ||||
Income tax expense (benefit) | $ 15 | $ 71 | $ 276 | $ 291 |
Effective income tax rate | 6.00% | 16.00% | 22.00% | 24.00% |
Charge To Reduce Certain Tax Regulatory Assets Attributable To Nuclear Plant | $ 17 | |||
Lower Income Tax Expense on Repatriation of Foreign Earnings | $ 14 | $ 14 | ||
Louisiana Valuation Allowance Release | $ 25 | 25 | ||
Income Tax Reconciliation Prior Year Income Taxes | 12 | 19 | ||
Income Tax Reconciliation Other Adjustments | 9 | 22 | ||
San Diego Gas and Electric Company [Member] | ||||
Income Tax Expense And Effective Income Tax Rates Disclosure [Line Items] | ||||
Income tax expense (benefit) | $ 75 | $ 65 | $ 217 | $ 217 |
Effective income tax rate | 29.00% | 28.00% | 32.00% | 35.00% |
Charge To Reduce Certain Tax Regulatory Assets Attributable To Nuclear Plant | $ 17 | |||
Income Tax Reconciliation Prior Year Income Taxes | $ 9 | |||
Southern California Gas Company [Member] | ||||
Income Tax Expense And Effective Income Tax Rates Disclosure [Line Items] | ||||
Income tax expense (benefit) | $ (20) | $ 44 | $ 91 | $ 110 |
Effective income tax rate | 71.00% | 31.00% | 25.00% | 30.00% |
Income Tax Reconciliation Prior Year Income Taxes | $ 11 | $ 14 |
OTHER FINANCIAL DATA - INVENTOR
OTHER FINANCIAL DATA - INVENTORY (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 | |
Total Inventory [Line Items] | |||
Energy Related Inventory, Natural Gas in Storage | $ 261 | $ 246 | |
Energy Related Inventory, Liquefied Natural Gas | 11 | 14 | |
Energy Related Inventory, Materials And Supplies | 144 | 136 | |
Inventory, Total | 416 | 396 | [1] |
S D G E Segment [Member] | |||
Total Inventory [Line Items] | |||
Energy Related Inventory, Natural Gas in Storage | 4 | 8 | |
Energy Related Inventory, Liquefied Natural Gas | 0 | 0 | |
Energy Related Inventory, Materials And Supplies | 67 | 65 | |
Inventory, Total | 71 | 73 | |
So Cal Gas Segment [Member] | |||
Total Inventory [Line Items] | |||
Energy Related Inventory, Natural Gas in Storage | 162 | 155 | |
Energy Related Inventory, Liquefied Natural Gas | 0 | 0 | |
Energy Related Inventory, Materials And Supplies | 30 | 26 | |
Inventory, Total | 192 | 181 | |
Sempra South American Utilities Segment [Member] | |||
Total Inventory [Line Items] | |||
Energy Related Inventory, Natural Gas in Storage | 0 | 0 | |
Energy Related Inventory, Liquefied Natural Gas | 0 | 0 | |
Energy Related Inventory, Materials And Supplies | 34 | 33 | |
Inventory, Total | 34 | 33 | |
Sempra Mexico Segment [Member] | |||
Total Inventory [Line Items] | |||
Energy Related Inventory, Natural Gas in Storage | 0 | 0 | |
Energy Related Inventory, Liquefied Natural Gas | 7 | 9 | |
Energy Related Inventory, Materials And Supplies | 10 | 9 | |
Inventory, Total | 17 | 18 | |
Sempra Natural Gas Segment [Member] | |||
Total Inventory [Line Items] | |||
Energy Related Inventory, Natural Gas in Storage | 95 | 83 | |
Energy Related Inventory, Liquefied Natural Gas | 4 | 5 | |
Energy Related Inventory, Materials And Supplies | 1 | 1 | |
Inventory, Total | 100 | 89 | |
Sempra Renewables Segment [Member] | |||
Total Inventory [Line Items] | |||
Energy Related Inventory, Natural Gas in Storage | 0 | 0 | |
Energy Related Inventory, Liquefied Natural Gas | 0 | 0 | |
Energy Related Inventory, Materials And Supplies | 2 | 2 | |
Inventory, Total | $ 2 | $ 2 | |
[1] | Derived from audited financial statements. |
DEBT AND CREDIT FACILITIES (Det
DEBT AND CREDIT FACILITIES (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Line Of Credit Facility, Sempra Energy Consolidated [Member] | ||
Line of Credit Facility [Line Items] | ||
Committed lines of credit, maximum borrowing capacity | $ 4,100 | |
Committed lines of credit, remaining borrowing capacity | $ 3,300 | |
Weighted average interest rate on total short-term debt outstanding | 0.66% | 0.70% |
Line Of Credit Facility, Sempra Energy [Member] | ||
Line of Credit Facility [Line Items] | ||
Committed lines of credit, maximum borrowing capacity | $ 1,067 | |
Committed lines of credit, maximum ratio of indebtedness to total capitalization | 65.00% | |
Committed lines of credit, capacity for issuance of letters of credit | $ 635 | |
Committed lines of credit, outstanding borrowings | 0 | |
Amended And Restated Line Of Credit Facility Maximum Borrowing Capacity | 1,000 | |
Amended And Restated Credit Facility Letters Of Credit Capacity | 400 | |
Line Of Credit Facility, Sempra Global [Member] | ||
Line of Credit Facility [Line Items] | ||
Committed lines of credit, maximum borrowing capacity | $ 2,189 | |
Committed lines of credit, maximum ratio of indebtedness to total capitalization | 65.00% | |
Outstanding commercial paper supported by committed lines of credit | $ 734 | |
Amended And Restated Line Of Credit Facility Maximum Borrowing Capacity | 2,210 | |
Line Of Credit Facility, S D G E [Member] | ||
Line of Credit Facility [Line Items] | ||
Committed lines of credit, maximum borrowing capacity | $ 658 | |
Committed lines of credit, maximum ratio of indebtedness to total capitalization | 65.00% | |
Committed lines of credit, remaining borrowing capacity | $ 614 | |
Outstanding commercial paper supported by committed lines of credit | $ 44 | |
Weighted average interest rate on total short-term debt outstanding | 0.15% | 0.27% |
Amended And Restated Line Of Credit Facility Maximum Borrowing Capacity | $ 750 | |
Line Of Credit Facility, So Cal Gas [Member] | ||
Line of Credit Facility [Line Items] | ||
Committed lines of credit, maximum borrowing capacity | $ 658 | |
Committed lines of credit, maximum ratio of indebtedness to total capitalization | 65.00% | |
Committed lines of credit, remaining borrowing capacity | $ 658 | |
Outstanding letters of credit | 0 | |
Weighted average interest rate on total short-term debt outstanding | 0.25% | |
Amended And Restated Line Of Credit Facility Maximum Borrowing Capacity | 750 | |
Line Of Credit Facility, California Utilities Combined [Member] | ||
Line of Credit Facility [Line Items] | ||
Committed lines of credit, maximum borrowing capacity | 877 | |
Committed lines of credit, capacity for issuance of letters of credit | 300 | |
Amended And Restated Line Of Credit Facility Maximum Borrowing Capacity | 1,000 | |
Amended And Restated Credit Facility Letters Of Credit Capacity | 250 | |
Line Of Credit Facility, South American Utilities And Mexico [Member] | ||
Line of Credit Facility [Line Items] | ||
Committed lines of credit, maximum borrowing capacity | 945 | |
Committed lines of credit, remaining borrowing capacity | 485 | |
Line Of Credit Facility, IEnova Santander [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of Credit Facility Maximum Borrowing Capacity Prior Limit | 200 | |
Line Of Credit Facility, IEnova Sumitomo [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of Credit Facility Maximum Borrowing Capacity Prior Limit | 100 | |
Line Of Credit Facility Sempra Mexico [Member] | ||
Line of Credit Facility [Line Items] | ||
Committed lines of credit, maximum borrowing capacity | 400 | |
Committed lines of credit, remaining borrowing capacity | 110 | |
Committed lines of credit, outstanding borrowings | 290 | |
Retired Debt Instrument, Face Amount | $ 210 |
DEBT AND CREDIT FACILITIES 2 (D
DEBT AND CREDIT FACILITIES 2 (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2015 | Sep. 30, 2014 | |
Debt Instrument [Line Items] | |||
Redemption of industrial development bonds | $ 79 | $ 0 | |
Sempra Natural Gas [Member] | |||
Debt Instrument [Line Items] | |||
Redemption of industrial development bonds | 79 | ||
Planned Early Redemption Of Long Term Debt Instruments | $ 55 | 55 | |
Other Long Term Debt, Variable Rate Due 2017 [Member] | San Diego Gas and Electric Company [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Face Amount | $ 140 | $ 140 | |
Debt Instrument, Interest Rate At Period End | 0.53% | 0.53% | |
Debt Instrument, Variable Base Rate | 0.20% | 0.20% | |
Other Long Term Debt, Fixed Rate Due 2020 [Member] | Sempra Energy [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Face Amount | $ 500 | $ 500 | |
Debt Instrument, Interest Rate, Stated Percentage | 2.40% | 2.40% | |
Other Long Term Debt, Amortizing Fixed Rate Due 2022 [Member] | San Diego Gas and Electric Company [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Face Amount | $ 250 | $ 250 | |
Debt Instrument, Interest Rate, Stated Percentage | 1.914% | 1.914% | |
Other Long Term Debt, Fixed Rate Due 2025 [Member] | Southern California Gas Company [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Face Amount | $ 350 | $ 350 | |
Debt Instrument, Interest Rate, Stated Percentage | 3.20% | 3.20% | |
Other Long Term Debt, Fixed Rate Due June 2018 [Member] | Southern California Gas Company [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Face Amount | $ 250 | $ 250 | |
Debt Instrument, Interest Rate, Stated Percentage | 1.55% | 1.55% | |
Other Long Term Debt, Fixed Rate Due June 2018 [Member] | South America Utilities [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Face Amount | $ 22 | $ 22 | |
Debt Instrument, Interest Rate, Stated Percentage | 5.18% | 5.18% | |
Other Long Term Debt Fixed Rate Due May 2018 [Member] | South America Utilities [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Face Amount | $ 13 | $ 13 | |
Debt Instrument, Interest Rate, Stated Percentage | 5.18% | 5.18% | |
Other Long Term Debt Fixed Rate Due between 2021 and 2027 [Member] | San Diego Gas and Electric Company [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument Interest Rate Stated Percentage Rate Range Minimum | 4.90% | ||
Debt Instrument Interest Rate Stated Percentage Rate Range Maximum | 5.50% | ||
Planned Early Redemption Of Long Term Debt Instruments | $ 169 | $ 169 | |
Other Long Term Debt Fixed Rate Due February 2018 [Member] | South America Utilities [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Face Amount | $ 9 | $ 9 | |
Debt Instrument, Interest Rate, Stated Percentage | 6.70% | 6.70% | |
Other Long Term Debt Fixed Rate Due September 2026 [Member] | South America Utilities [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Face Amount | $ 25 | $ 25 | |
Debt Instrument, Interest Rate, Stated Percentage | 8.75% | 8.75% |
DERIVATIVE FINANCIAL INSTRUME51
DERIVATIVE FINANCIAL INSTRUMENTS (Details) | Sep. 30, 2015 | Dec. 31, 2014 | |
S D G E Segment [Member] | |||
Schedule Of Commodity Derivative Volumes [Line Items] | |||
Commodity derivative volumes, natural gas (in millions of million British thermal units) | [1] | 59 | 55 |
Commodity derivative volumes, congestion revenue rights (in millions of megawatt hours) | [2] | 24 | 27 |
Commodity derivative volumes, electric power (in millions of megawatt hours) | [2] | 1 | 0 |
So Cal Gas Segment [Member] | |||
Schedule Of Commodity Derivative Volumes [Line Items] | |||
Commodity derivative volumes, natural gas (in millions of million British thermal units) | [1] | 1 | 1 |
Sempra Natural Gas Segment [Member] | |||
Schedule Of Commodity Derivative Volumes [Line Items] | |||
Commodity derivative volumes, natural gas (in millions of million British thermal units) | [1] | 39 | 29 |
[1] | Million British thermal units | ||
[2] | Megawatt hours |
DERIVATIVE FINANCIAL INSTRUME52
DERIVATIVE FINANCIAL INSTRUMENTS 2 (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
Cash Flow Hedges | ||
Schedule Of Notional Amounts Of Interest Rate Derivatives [Line Items] | ||
Derivative Liability Notional Amount | $ 389 | $ 399 |
Cash Flow Hedges | Maximum [Member] | ||
Schedule Of Notional Amounts Of Interest Rate Derivatives [Line Items] | ||
Maturities of interest rate derivatives | 2,028 | 2,028 |
Cash Flow Hedges | Minimum [Member] | ||
Schedule Of Notional Amounts Of Interest Rate Derivatives [Line Items] | ||
Maturities of interest rate derivatives | 2,015 | 2,015 |
Fair Value Hedges | ||
Schedule Of Notional Amounts Of Interest Rate Derivatives [Line Items] | ||
Derivative Liability Notional Amount | $ 300 | $ 300 |
Fair Value Hedges | Maximum [Member] | ||
Schedule Of Notional Amounts Of Interest Rate Derivatives [Line Items] | ||
Maturities of interest rate derivatives | 2,016 | 2,016 |
San Diego Gas and Electric Company [Member] | Cash Flow Hedges | ||
Schedule Of Notional Amounts Of Interest Rate Derivatives [Line Items] | ||
Derivative Liability Notional Amount | $ 317 | $ 325 |
San Diego Gas and Electric Company [Member] | Cash Flow Hedges | Maximum [Member] | ||
Schedule Of Notional Amounts Of Interest Rate Derivatives [Line Items] | ||
Maturities of interest rate derivatives | 2,019 | 2,019 |
San Diego Gas and Electric Company [Member] | Cash Flow Hedges | Minimum [Member] | ||
Schedule Of Notional Amounts Of Interest Rate Derivatives [Line Items] | ||
Maturities of interest rate derivatives | 2,015 | 2,015 |
DERIVATIVE FINANCIAL INSTRUME53
DERIVATIVE FINANCIAL INSTRUMENTS 3 (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 | |
OtherCurrentAssetsMember | |||
Derivative Instruments in Hedges, at Fair Value, Net [Abstract] | |||
Interest rate and foreign exchange instruments | [1],[2] | $ 7 | $ 10 |
Commodity contracts not subject to rate recovery | [1] | 6 | 25 |
Other Derivatives Not Designated as Hedging Instruments at Fair Value, Net, Total [Abstract] | |||
Interest rate and foreign exchange instruments | [1] | 0 | 8 |
Commodity contracts not subject to rate recovery | [1] | 166 | 143 |
Associated offsetting commodity contracts not subject to rate recovery | [1] | (137) | (129) |
Associated cash collateral commodity contracts not subject to rate recovery | [1] | 0 | (11) |
Commodity contracts subject to rate recovery | [1] | 7 | 36 |
Associated cash collateral commodity contracts subject to rate recovery | [1] | 0 | 0 |
Associated offsetting commodity contracts subject to rate recovery | [1] | (1) | (3) |
Net amount presented on balance sheet | [1] | 48 | 79 |
Additional margin posted for commodity contracts not subject to rate recovery | [1] | 3 | |
Additional margin posted for commodity contracts subject to rate recovery | [1] | 15 | 14 |
Total | [1],[3] | 66 | 93 |
OtherCurrentAssetsMember | San Diego Gas and Electric Company [Member] | |||
Derivative Instruments in Hedges, at Fair Value, Net [Abstract] | |||
Interest rate and foreign exchange instruments | [1],[2] | 0 | 0 |
Other Derivatives Not Designated as Hedging Instruments at Fair Value, Net, Total [Abstract] | |||
Commodity contracts not subject to rate recovery | [1] | 0 | |
Associated cash collateral commodity contracts not subject to rate recovery | [1] | 0 | |
Commodity contracts subject to rate recovery | [1] | 6 | 32 |
Associated cash collateral commodity contracts subject to rate recovery | [1] | 0 | 0 |
Associated offsetting commodity contracts subject to rate recovery | [1] | (1) | 0 |
Net amount presented on balance sheet | [1] | 5 | 32 |
Additional margin posted for commodity contracts not subject to rate recovery | [1] | 1 | |
Additional margin posted for commodity contracts subject to rate recovery | [1] | 14 | 12 |
Total | [1],[3] | 20 | 44 |
OtherCurrentAssetsMember | Southern California Gas Company [Member] | |||
Other Derivatives Not Designated as Hedging Instruments at Fair Value, Net, Total [Abstract] | |||
Commodity contracts not subject to rate recovery | [1] | 0 | |
Associated cash collateral commodity contracts not subject to rate recovery | [1] | 0 | |
Commodity contracts subject to rate recovery | [1] | 1 | 4 |
Associated offsetting commodity contracts subject to rate recovery | [1] | (3) | |
Net amount presented on balance sheet | [1] | 1 | 1 |
Additional margin posted for commodity contracts not subject to rate recovery | [1] | 1 | |
Additional margin posted for commodity contracts subject to rate recovery | [1] | 1 | 2 |
Total | [1] | 3 | 3 |
OtherNoncurrentAssetsMember | |||
Derivative Instruments in Hedges, at Fair Value, Net [Abstract] | |||
Interest rate and foreign exchange instruments | [2] | 0 | 3 |
Commodity contracts not subject to rate recovery | 0 | 0 | |
Other Derivatives Not Designated as Hedging Instruments at Fair Value, Net, Total [Abstract] | |||
Interest rate and foreign exchange instruments | 0 | 27 | |
Commodity contracts not subject to rate recovery | 31 | 32 | |
Associated offsetting commodity contracts not subject to rate recovery | (18) | (27) | |
Associated cash collateral commodity contracts not subject to rate recovery | 0 | 0 | |
Commodity contracts subject to rate recovery | 87 | 76 | |
Associated cash collateral commodity contracts subject to rate recovery | 0 | 0 | |
Associated offsetting commodity contracts subject to rate recovery | (1) | (1) | |
Net amount presented on balance sheet | 99 | 110 | |
Additional margin posted for commodity contracts not subject to rate recovery | 0 | ||
Additional margin posted for commodity contracts subject to rate recovery | 0 | 0 | |
Total | [3] | 99 | 110 |
OtherNoncurrentAssetsMember | San Diego Gas and Electric Company [Member] | |||
Derivative Instruments in Hedges, at Fair Value, Net [Abstract] | |||
Interest rate and foreign exchange instruments | [2] | 0 | 0 |
Other Derivatives Not Designated as Hedging Instruments at Fair Value, Net, Total [Abstract] | |||
Commodity contracts not subject to rate recovery | 0 | ||
Associated cash collateral commodity contracts not subject to rate recovery | 0 | ||
Commodity contracts subject to rate recovery | 87 | 76 | |
Associated cash collateral commodity contracts subject to rate recovery | 0 | 0 | |
Associated offsetting commodity contracts subject to rate recovery | (1) | (1) | |
Net amount presented on balance sheet | 86 | 75 | |
Additional margin posted for commodity contracts not subject to rate recovery | 0 | ||
Additional margin posted for commodity contracts subject to rate recovery | 0 | 0 | |
Total | [3] | 86 | 75 |
OtherNoncurrentAssetsMember | Southern California Gas Company [Member] | |||
Other Derivatives Not Designated as Hedging Instruments at Fair Value, Net, Total [Abstract] | |||
Commodity contracts not subject to rate recovery | 0 | ||
Associated cash collateral commodity contracts not subject to rate recovery | 0 | ||
Commodity contracts subject to rate recovery | 0 | 0 | |
Associated offsetting commodity contracts subject to rate recovery | 0 | ||
Net amount presented on balance sheet | 0 | 0 | |
Additional margin posted for commodity contracts not subject to rate recovery | 0 | ||
Additional margin posted for commodity contracts subject to rate recovery | 0 | 0 | |
Total | 0 | 0 | |
OtherCurrentLiabilitiesMember | |||
Derivative Instruments in Hedges, at Fair Value, Net [Abstract] | |||
Interest rate and foreign exchange instruments | [2],[4] | (16) | (17) |
Commodity contracts not subject to rate recovery | [4] | 0 | 0 |
Other Derivatives Not Designated as Hedging Instruments at Fair Value, Net, Total [Abstract] | |||
Interest rate and foreign exchange instruments | [4] | (3) | (7) |
Commodity contracts not subject to rate recovery | [4] | (147) | (135) |
Associated offsetting commodity contracts not subject to rate recovery | [4] | 137 | 129 |
Associated cash collateral commodity contracts not subject to rate recovery | [4] | 3 | 0 |
Commodity contracts subject to rate recovery | [4] | (59) | (36) |
Associated cash collateral commodity contracts subject to rate recovery | [4] | 25 | 23 |
Associated offsetting commodity contracts subject to rate recovery | [4] | 1 | 3 |
Net amount presented on balance sheet | [4] | (59) | (40) |
Additional margin posted for commodity contracts not subject to rate recovery | [4] | 0 | |
Additional margin posted for commodity contracts subject to rate recovery | [4] | 0 | 0 |
Total | [3],[4] | (59) | (40) |
OtherCurrentLiabilitiesMember | San Diego Gas and Electric Company [Member] | |||
Derivative Instruments in Hedges, at Fair Value, Net [Abstract] | |||
Interest rate and foreign exchange instruments | [2],[4] | (15) | (16) |
Other Derivatives Not Designated as Hedging Instruments at Fair Value, Net, Total [Abstract] | |||
Commodity contracts not subject to rate recovery | [4] | (1) | |
Associated cash collateral commodity contracts not subject to rate recovery | [4] | 1 | |
Commodity contracts subject to rate recovery | [4] | (59) | (32) |
Associated cash collateral commodity contracts subject to rate recovery | [4] | 25 | 23 |
Associated offsetting commodity contracts subject to rate recovery | [4] | 1 | 0 |
Net amount presented on balance sheet | [4] | (48) | (25) |
Additional margin posted for commodity contracts not subject to rate recovery | [4] | 0 | |
Additional margin posted for commodity contracts subject to rate recovery | [4] | 0 | 0 |
Total | [3],[4] | (48) | (25) |
OtherCurrentLiabilitiesMember | Southern California Gas Company [Member] | |||
Other Derivatives Not Designated as Hedging Instruments at Fair Value, Net, Total [Abstract] | |||
Commodity contracts not subject to rate recovery | [4] | (2) | |
Associated cash collateral commodity contracts not subject to rate recovery | [4] | 2 | |
Commodity contracts subject to rate recovery | [4] | 0 | (4) |
Associated offsetting commodity contracts subject to rate recovery | [4] | 3 | |
Net amount presented on balance sheet | [4] | 0 | (1) |
Additional margin posted for commodity contracts not subject to rate recovery | [4] | 0 | |
Additional margin posted for commodity contracts subject to rate recovery | [4] | 0 | 0 |
Total | [4] | 0 | (1) |
OtherNoncurrentLiabilitiesMember | |||
Derivative Instruments in Hedges, at Fair Value, Net [Abstract] | |||
Interest rate and foreign exchange instruments | [2] | (159) | (109) |
Commodity contracts not subject to rate recovery | 0 | 0 | |
Other Derivatives Not Designated as Hedging Instruments at Fair Value, Net, Total [Abstract] | |||
Interest rate and foreign exchange instruments | 0 | (22) | |
Commodity contracts not subject to rate recovery | (18) | (29) | |
Associated offsetting commodity contracts not subject to rate recovery | 18 | 27 | |
Associated cash collateral commodity contracts not subject to rate recovery | 0 | 0 | |
Commodity contracts subject to rate recovery | (65) | (20) | |
Associated cash collateral commodity contracts subject to rate recovery | 28 | 13 | |
Associated offsetting commodity contracts subject to rate recovery | 1 | 1 | |
Net amount presented on balance sheet | (195) | (139) | |
Additional margin posted for commodity contracts not subject to rate recovery | 0 | ||
Additional margin posted for commodity contracts subject to rate recovery | 0 | 0 | |
Total | [3] | (195) | (139) |
OtherNoncurrentLiabilitiesMember | San Diego Gas and Electric Company [Member] | |||
Derivative Instruments in Hedges, at Fair Value, Net [Abstract] | |||
Interest rate and foreign exchange instruments | [2] | (29) | (31) |
Other Derivatives Not Designated as Hedging Instruments at Fair Value, Net, Total [Abstract] | |||
Commodity contracts not subject to rate recovery | 0 | ||
Associated cash collateral commodity contracts not subject to rate recovery | 0 | ||
Commodity contracts subject to rate recovery | (65) | (20) | |
Associated cash collateral commodity contracts subject to rate recovery | 28 | 13 | |
Associated offsetting commodity contracts subject to rate recovery | 1 | 1 | |
Net amount presented on balance sheet | (65) | (37) | |
Additional margin posted for commodity contracts not subject to rate recovery | 0 | ||
Additional margin posted for commodity contracts subject to rate recovery | 0 | 0 | |
Total | [3] | (65) | (37) |
OtherNoncurrentLiabilitiesMember | Southern California Gas Company [Member] | |||
Other Derivatives Not Designated as Hedging Instruments at Fair Value, Net, Total [Abstract] | |||
Commodity contracts not subject to rate recovery | 0 | ||
Associated cash collateral commodity contracts not subject to rate recovery | 0 | ||
Commodity contracts subject to rate recovery | 0 | 0 | |
Associated offsetting commodity contracts subject to rate recovery | 0 | ||
Net amount presented on balance sheet | 0 | 0 | |
Additional margin posted for commodity contracts not subject to rate recovery | 0 | ||
Additional margin posted for commodity contracts subject to rate recovery | 0 | 0 | |
Total | $ 0 | $ 0 | |
[1] | Included in Current Assets: Other for SoCalGas. | ||
[2] | Includes Otay Mesa VIE. All of SDG&E’s amounts relate to Otay Mesa VIE. | ||
[3] | Normal purchase contracts previously measured at fair value are excluded. | ||
[4] | Included in Current Liabilities: Other for SoCalGas. |
DERIVATIVE FINANCIAL INSTRUME54
DERIVATIVE FINANCIAL INSTRUMENTS 4 (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | ||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gain (loss) on derivative recognized in earnings | $ 20 | $ 19 | |||
San Diego Gas and Electric Company [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gain (loss) on derivative recognized in earnings | 3 | 5 | |||
Cash Flow Hedges | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gain (loss) reclassified from AOCI into earnings (effective portion) | [1] | $ (5) | $ (3) | (13) | (29) |
Amount of pretax gain (loss) on derivative recognized in OCI (effective portion) | [1] | (138) | (3) | (139) | (51) |
Cash Flow Hedge Ineffectiveness | 0 | 0 | 0 | 0 | |
Cash Flow Hedges | Interest Expense | Interest Rate And Foreign Exchange Instruments [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gain (loss) reclassified from AOCI into earnings (effective portion) | [1],[2] | (5) | (8) | (14) | (17) |
Amount of pretax gain (loss) on derivative recognized in OCI (effective portion) | [1],[2] | (10) | (5) | (22) | (15) |
Cash Flow Hedges | Interest Expense | Interest Rate Instruments | San Diego Gas and Electric Company [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gain (loss) reclassified from AOCI into earnings (effective portion) | [1],[2] | (3) | (3) | (9) | (8) |
Amount of pretax gain (loss) on derivative recognized in OCI (effective portion) | [1],[2] | (4) | 1 | (9) | (5) |
Cash Flow Hedges | Equity Earnings Before Income Tax [Member] | Interest Rate Instruments | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gain (loss) reclassified from AOCI into earnings (effective portion) | (3) | (2) | (9) | (7) | |
Amount of pretax gain (loss) on derivative recognized in OCI (effective portion) | (134) | (4) | (123) | (34) | |
Cash Flow Hedges | Revenues: Energy-Related Businesses [Member] | Commodity Contracts Not Subject To Rate Recovery | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gain (loss) reclassified from AOCI into earnings (effective portion) | 3 | 2 | 10 | (8) | |
Amount of pretax gain (loss) on derivative recognized in OCI (effective portion) | 6 | 1 | 6 | (5) | |
Cash Flow Hedges | Gain on sale of equity interest [Member] | Interest Rate Instruments | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gain (loss) reclassified from AOCI into earnings (effective portion) | 0 | 5 | 0 | 3 | |
Amount of pretax gain (loss) on derivative recognized in OCI (effective portion) | 0 | 5 | 0 | 3 | |
Fair Value Hedges | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gain (loss) reclassified from AOCI into earnings (effective portion) | [3] | 1 | 0 | 3 | 6 |
Fair Value Hedges | Interest Expense | Interest Rate Instruments | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gain (loss) reclassified from AOCI into earnings (effective portion) | 1 | 1 | 5 | 6 | |
Fair Value Hedge Ineffectiveness | 0 | 0 | 0 | 9 | |
Fair Value Hedges | Other Income, Net | Interest Rate Instruments | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gain (loss) reclassified from AOCI into earnings (effective portion) | 0 | (1) | (2) | 0 | |
Undesignated Derivatives | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gain (loss) reclassified from AOCI into earnings (effective portion) | (15) | (4) | (78) | 16 | |
Undesignated Derivatives | San Diego Gas and Electric Company [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gain (loss) reclassified from AOCI into earnings (effective portion) | (28) | (1) | (101) | 19 | |
Undesignated Derivatives | Southern California Gas Company [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gain (loss) reclassified from AOCI into earnings (effective portion) | (1) | 1 | 1 | 2 | |
Undesignated Derivatives | Other Income, Net | Interest Rate And Foreign Exchange Instruments [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gain (loss) reclassified from AOCI into earnings (effective portion) | (4) | (6) | (7) | (6) | |
Undesignated Derivatives | Equity Earnings Net Of Income Tax [Member] | Interest Rate And Foreign Exchange Instruments [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gain (loss) reclassified from AOCI into earnings (effective portion) | (3) | (2) | (4) | (4) | |
Undesignated Derivatives | Revenues: Energy-Related Businesses [Member] | Commodity Contracts Not Subject To Rate Recovery | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gain (loss) reclassified from AOCI into earnings (effective portion) | 21 | 3 | 33 | 2 | |
Undesignated Derivatives | Cost of Natural Gas, Electric Fuel and Purchased Power [Member] | Commodity Contracts Not Subject To Rate Recovery | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gain (loss) reclassified from AOCI into earnings (effective portion) | 0 | 1 | 0 | 3 | |
Undesignated Derivatives | Cost of Electric Fuel and Purchased Power [Member] | Commodity Contracts Subject To Rate Recovery [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gain (loss) reclassified from AOCI into earnings (effective portion) | (27) | (1) | (100) | 19 | |
Undesignated Derivatives | Cost of Electric Fuel and Purchased Power [Member] | Commodity Contracts Subject To Rate Recovery [Member] | San Diego Gas and Electric Company [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gain (loss) reclassified from AOCI into earnings (effective portion) | (27) | (1) | (100) | 19 | |
Undesignated Derivatives | Other Operation And Maintenance [Member] | Commodity Contracts Not Subject To Rate Recovery | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gain (loss) reclassified from AOCI into earnings (effective portion) | (2) | 0 | (1) | 0 | |
Undesignated Derivatives | Other Operation And Maintenance [Member] | Commodity Contracts Not Subject To Rate Recovery | San Diego Gas and Electric Company [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gain (loss) reclassified from AOCI into earnings (effective portion) | (1) | 0 | (1) | 0 | |
Undesignated Derivatives | Other Operation And Maintenance [Member] | Commodity Contracts Not Subject To Rate Recovery | Southern California Gas Company [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gain (loss) reclassified from AOCI into earnings (effective portion) | (1) | 0 | 0 | 0 | |
Undesignated Derivatives | Cost of Natural Gas [Member] | Commodity Contracts Subject To Rate Recovery [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gain (loss) reclassified from AOCI into earnings (effective portion) | 0 | 1 | 1 | 2 | |
Undesignated Derivatives | Cost of Natural Gas [Member] | Commodity Contracts Subject To Rate Recovery [Member] | Southern California Gas Company [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gain (loss) reclassified from AOCI into earnings (effective portion) | $ 0 | $ 1 | $ 1 | $ 2 | |
[1] | There were negligible losses from ineffectiveness related to these hedges in 2015 and 2014. | ||||
[2] | Amounts include Otay Mesa VIE. All of SDG&E’s interest rate derivative activity relates to Otay Mesa VIE. | ||||
[3] | There was no hedge ineffectiveness on these swaps in either the three months or nine months ended September 30, 2015 and negligible gains and $9 million of gains from hedge ineffectiveness in the three months and nine months ended September 30, 2014, respectively. All other changes in the fair value of the interest rate swap agreements are exactly offset by changes in the fair value of the underlying long-term debt and are recorded in Other Income, Net. |
DERIVATIVE FINANCIAL INSTRUME55
DERIVATIVE FINANCIAL INSTRUMENTS 5 (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2015USD ($) | |
Cash Flow Hedge Disclosure [Line Items] | |
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | $ 20 |
Maximum Length Time Hedged In Cash Flow Hedge | 13 years |
Joint Venture Maximum Length Of Time Hedged In Cash Flow Hedge | 20 years |
Cash Flow Hedge Gain (Loss) To Be Reclassified Within Twelve Months For Noncontrolling Interest | $ 13 |
San Diego Gas and Electric Company [Member] | |
Cash Flow Hedge Disclosure [Line Items] | |
Maximum Length Time Hedged In Cash Flow Hedge | 4 years |
Cash Flow Hedge Gain (Loss) To Be Reclassified Within Twelve Months For Noncontrolling Interest | $ 13 |
Southern California Gas Company [Member] | |
Cash Flow Hedge Disclosure [Line Items] | |
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | $ 0 |
DERIVATIVE FINANCIAL INSTRUME56
DERIVATIVE FINANCIAL INSTRUMENTS 6 (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Derivative Credit Risk Related Contingent Features [Line Items] | ||
Derivative, Net Liability Position, Aggregate Fair Value | $ 8 | $ 9 |
Additional Collateral Aggregate Fair Value | 8 | |
San Diego Gas and Electric Company [Member] | ||
Derivative Credit Risk Related Contingent Features [Line Items] | ||
Derivative, Net Liability Position, Aggregate Fair Value | 5 | $ 2 |
Additional Collateral Aggregate Fair Value | $ 5 |
FAIR VALUE MEASUREMENTS 2 (Deta
FAIR VALUE MEASUREMENTS 2 (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Nuclear decommissioning trusts - equity securities | $ 588 | $ 655 | |
Nuclear decommissioning trusts - Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies | 95 | 109 | |
Nuclear decomissioning trusts - Municipal debt securities | 154 | 129 | |
Nuclear decommissioning trusts - Other debt securities | 205 | 207 | |
Nuclear decommissioning trusts - Total debt securities | 454 | 445 | |
Total nuclear decommissioning trusts | [1] | 1,042 | 1,100 |
Interest rate instruments, assets | 7 | 48 | |
Commodity contracts not subject to rate recovery, assets | 51 | 33 | |
Commodity contracts subject to rate recovery, assets | 107 | 122 | |
Total fair value of assets measured on a recurring basis | 1,207 | 1,303 | |
Interest rate instruments, liabilities | 178 | 155 | |
Commodity contracts not subject to rate recovery, liabilities | 7 | 8 | |
Commodity contracts subject to rate recovery, liabilities | 69 | 16 | |
Total fair value of liabilities measured on a recurring basis | 254 | 179 | |
San Diego Gas and Electric Company [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Nuclear decommissioning trusts - equity securities | 588 | 655 | |
Nuclear decommissioning trusts - Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies | 95 | 109 | |
Nuclear decomissioning trusts - Municipal debt securities | 154 | 129 | |
Nuclear decommissioning trusts - Other debt securities | 205 | 207 | |
Nuclear decommissioning trusts - Total debt securities | 454 | 445 | |
Total nuclear decommissioning trusts | [1] | 1,042 | 1,100 |
Commodity contracts not subject to rate recovery, assets | 1 | ||
Commodity contracts subject to rate recovery, assets | 105 | 119 | |
Total fair value of assets measured on a recurring basis | 1,148 | 1,219 | |
Interest rate instruments, liabilities | 44 | 47 | |
Commodity contracts not subject to rate recovery, liabilities | 0 | 0 | |
Commodity contracts subject to rate recovery, liabilities | 69 | 15 | |
Total fair value of liabilities measured on a recurring basis | 113 | 62 | |
Southern California Gas Company [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Commodity contracts not subject to rate recovery, assets | 1 | ||
Commodity contracts subject to rate recovery, assets | 2 | 3 | |
Total fair value of assets measured on a recurring basis | 3 | 3 | |
Commodity contracts not subject to rate recovery, liabilities | 0 | 0 | |
Commodity contracts subject to rate recovery, liabilities | 1 | ||
Total fair value of liabilities measured on a recurring basis | 0 | 1 | |
Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Nuclear decommissioning trusts - equity securities | 588 | 655 | |
Nuclear decommissioning trusts - Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies | 51 | 62 | |
Nuclear decomissioning trusts - Municipal debt securities | 0 | 0 | |
Nuclear decommissioning trusts - Other debt securities | 0 | 0 | |
Nuclear decommissioning trusts - Total debt securities | 51 | 62 | |
Total nuclear decommissioning trusts | [1] | 639 | 717 |
Interest rate instruments, assets | 0 | 0 | |
Commodity contracts not subject to rate recovery, assets | 31 | 28 | |
Commodity contracts subject to rate recovery, assets | 0 | 0 | |
Total fair value of assets measured on a recurring basis | 670 | 745 | |
Interest rate instruments, liabilities | 0 | 0 | |
Commodity contracts not subject to rate recovery, liabilities | 8 | 3 | |
Commodity contracts subject to rate recovery, liabilities | 0 | 0 | |
Total fair value of liabilities measured on a recurring basis | 8 | 3 | |
Level 1 | San Diego Gas and Electric Company [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Nuclear decommissioning trusts - equity securities | 588 | 655 | |
Nuclear decommissioning trusts - Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies | 51 | 62 | |
Nuclear decomissioning trusts - Municipal debt securities | 0 | 0 | |
Nuclear decommissioning trusts - Other debt securities | 0 | 0 | |
Nuclear decommissioning trusts - Total debt securities | 51 | 62 | |
Total nuclear decommissioning trusts | [1] | 639 | 717 |
Commodity contracts not subject to rate recovery, assets | 0 | ||
Commodity contracts subject to rate recovery, assets | 0 | 0 | |
Total fair value of assets measured on a recurring basis | 639 | 717 | |
Interest rate instruments, liabilities | 0 | 0 | |
Commodity contracts not subject to rate recovery, liabilities | 1 | 1 | |
Commodity contracts subject to rate recovery, liabilities | 0 | 0 | |
Total fair value of liabilities measured on a recurring basis | 1 | 1 | |
Level 1 | Southern California Gas Company [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Commodity contracts not subject to rate recovery, assets | 0 | ||
Commodity contracts subject to rate recovery, assets | 0 | 0 | |
Total fair value of assets measured on a recurring basis | 0 | 0 | |
Commodity contracts not subject to rate recovery, liabilities | 2 | 2 | |
Commodity contracts subject to rate recovery, liabilities | 0 | ||
Total fair value of liabilities measured on a recurring basis | 2 | 2 | |
Level 2 | |||
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 | 44 | 47 | |
Nuclear decomissioning trusts - Municipal debt securities | 154 | 129 | |
Nuclear decommissioning trusts - Other debt securities | 205 | 207 | |
Nuclear decommissioning trusts - Total debt securities | 403 | 383 | |
Total nuclear decommissioning trusts | [1] | 403 | 383 |
Interest rate instruments, assets | 7 | 48 | |
Commodity contracts not subject to rate recovery, assets | 17 | 16 | |
Commodity contracts subject to rate recovery, assets | 1 | 1 | |
Total fair value of assets measured on a recurring basis | 428 | 448 | |
Interest rate instruments, liabilities | 178 | 155 | |
Commodity contracts not subject to rate recovery, liabilities | 2 | 9 | |
Commodity contracts subject to rate recovery, liabilities | 67 | 52 | |
Total fair value of liabilities measured on a recurring basis | 247 | 216 | |
Level 2 | San Diego Gas and Electric Company [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 | 44 | 47 | |
Nuclear decomissioning trusts - Municipal debt securities | 154 | 129 | |
Nuclear decommissioning trusts - Other debt securities | 205 | 207 | |
Nuclear decommissioning trusts - Total debt securities | 403 | 383 | |
Total nuclear decommissioning trusts | [1] | 403 | 383 |
Commodity contracts not subject to rate recovery, assets | 0 | ||
Commodity contracts subject to rate recovery, assets | 0 | 0 | |
Total fair value of assets measured on a recurring basis | 403 | 383 | |
Interest rate instruments, liabilities | 44 | 47 | |
Commodity contracts not subject to rate recovery, liabilities | 0 | 0 | |
Commodity contracts subject to rate recovery, liabilities | 67 | 51 | |
Total fair value of liabilities measured on a recurring basis | 111 | 98 | |
Level 2 | Southern California Gas Company [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Commodity contracts not subject to rate recovery, assets | 0 | ||
Commodity contracts subject to rate recovery, assets | 1 | 1 | |
Total fair value of assets measured on a recurring basis | 1 | 1 | |
Commodity contracts not subject to rate recovery, liabilities | 0 | 0 | |
Commodity contracts subject to rate recovery, liabilities | 1 | ||
Total fair value of liabilities measured on a recurring basis | 0 | 1 | |
Level 3 | |||
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 decomissioning trusts - Municipal debt securities | 0 | 0 | |
Nuclear decommissioning trusts - Other debt securities | 0 | 0 | |
Nuclear decommissioning trusts - Total debt securities | 0 | 0 | |
Total nuclear decommissioning trusts | [1] | 0 | 0 |
Interest rate instruments, assets | 0 | 0 | |
Commodity contracts not subject to rate recovery, assets | 0 | 0 | |
Commodity contracts subject to rate recovery, assets | 91 | 107 | |
Total fair value of assets measured on a recurring basis | 91 | 107 | |
Interest rate instruments, liabilities | 0 | 0 | |
Commodity contracts not subject to rate recovery, liabilities | 0 | 0 | |
Commodity contracts subject to rate recovery, liabilities | 55 | 0 | |
Total fair value of liabilities measured on a recurring basis | 55 | 0 | |
Level 3 | San Diego Gas and Electric Company [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 decomissioning trusts - Municipal debt securities | 0 | 0 | |
Nuclear decommissioning trusts - Other debt securities | 0 | 0 | |
Nuclear decommissioning trusts - Total debt securities | 0 | 0 | |
Total nuclear decommissioning trusts | [1] | 0 | 0 |
Commodity contracts not subject to rate recovery, assets | 0 | ||
Commodity contracts subject to rate recovery, assets | 91 | 107 | |
Total fair value of assets measured on a recurring basis | 91 | 107 | |
Interest rate instruments, liabilities | 0 | 0 | |
Commodity contracts not subject to rate recovery, liabilities | 0 | 0 | |
Commodity contracts subject to rate recovery, liabilities | 55 | 0 | |
Total fair value of liabilities measured on a recurring basis | 55 | 0 | |
Level 3 | Southern California Gas Company [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Commodity contracts not subject to rate recovery, assets | 0 | ||
Commodity contracts subject to rate recovery, assets | 0 | 0 | |
Total fair value of assets measured on a recurring basis | 0 | 0 | |
Commodity contracts not subject to rate recovery, liabilities | 0 | 0 | |
Commodity contracts subject to rate recovery, liabilities | 0 | ||
Total fair value of liabilities measured on a recurring basis | 0 | 0 | |
Collateral Netted [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Nuclear decommissioning trusts - equity securities | [2] | 0 | 0 |
Nuclear decommissioning trusts - Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies | [2] | 0 | 0 |
Nuclear decomissioning trusts - Municipal debt securities | [2] | 0 | 0 |
Nuclear decommissioning trusts - Other debt securities | [2] | 0 | 0 |
Nuclear decommissioning trusts - Total debt securities | [2] | 0 | 0 |
Total nuclear decommissioning trusts | [1],[2] | 0 | 0 |
Interest rate instruments, assets | [2] | 0 | 0 |
Commodity contracts not subject to rate recovery, assets | [2] | 3 | (11) |
Commodity contracts subject to rate recovery, assets | [2] | 15 | 14 |
Total fair value of assets measured on a recurring basis | [2] | 18 | 3 |
Interest rate instruments, liabilities | [2] | 0 | 0 |
Commodity contracts not subject to rate recovery, liabilities | [2] | (3) | (4) |
Commodity contracts subject to rate recovery, liabilities | [2] | (53) | (36) |
Total fair value of liabilities measured on a recurring basis | [2] | (56) | (40) |
Collateral Netted [Member] | San Diego Gas and Electric Company [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Nuclear decommissioning trusts - equity securities | [2] | 0 | 0 |
Nuclear decommissioning trusts - Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies | [2] | 0 | 0 |
Nuclear decomissioning trusts - Municipal debt securities | [2] | 0 | 0 |
Nuclear decommissioning trusts - Other debt securities | [2] | 0 | 0 |
Nuclear decommissioning trusts - Total debt securities | [2] | 0 | 0 |
Total nuclear decommissioning trusts | [1],[2] | 0 | 0 |
Commodity contracts not subject to rate recovery, assets | [2] | 1 | |
Commodity contracts subject to rate recovery, assets | [2] | 14 | 12 |
Total fair value of assets measured on a recurring basis | [2] | 15 | 12 |
Interest rate instruments, liabilities | [2] | 0 | 0 |
Commodity contracts not subject to rate recovery, liabilities | [2] | (1) | (1) |
Commodity contracts subject to rate recovery, liabilities | [2] | (53) | (36) |
Total fair value of liabilities measured on a recurring basis | [2] | (54) | (37) |
Collateral Netted [Member] | Southern California Gas Company [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Commodity contracts not subject to rate recovery, assets | [2] | 1 | |
Commodity contracts subject to rate recovery, assets | [2] | 1 | 2 |
Total fair value of assets measured on a recurring basis | [2] | 2 | 2 |
Commodity contracts not subject to rate recovery, liabilities | [2] | (2) | (2) |
Commodity contracts subject to rate recovery, liabilities | [2] | 0 | |
Total fair value of liabilities measured on a recurring basis | [2] | $ (2) | $ (2) |
[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. |
FAIR VALUE MEASUREMENTS 3 (Deta
FAIR VALUE MEASUREMENTS 3 (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance at beginning of period | $ 42 | $ 85 | $ 107 | $ 99 |
Realized and unrealized gains (losses) | (49) | 3 | (103) | 9 |
Allocated transmission instruments | 0 | 9 | 1 | 10 |
Settlements | 43 | (10) | 31 | (31) |
Balance at end of period | 36 | 87 | 36 | 87 |
Change in unrealized gains (losses) relating to instruments still held at period end | (8) | 0 | (54) | 0 |
CRR Auction Rate Per MWh, Minimum | (16) | (6) | (16) | (6) |
CRR Auction Rate Per MWh, Maximum | $ 8 | $ 12 | $ 8 | $ 12 |
FAIR VALUE MEASUREMENTS 4 (Deta
FAIR VALUE MEASUREMENTS 4 (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 | |
Carrying Amount | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair value of financial instruments, Total long-term debt | [1],[2] | $ 13,341 | $ 12,347 |
Preferred Stock Of Subsidiaries Fair Value Disclosure | 20 | 20 | |
Debt Instrument Unamortized Discount | 21 | 21 | |
Capital Lease Obligations | 375 | 310 | |
Debt Instrument Carrying Amount | 317 | 325 | |
Carrying Amount | San Diego Gas and Electric Company [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair value of financial instruments, Total long-term debt | [2],[3] | 4,557 | 4,461 |
Debt Instrument Unamortized Discount | 10 | 11 | |
Capital Lease Obligations | 231 | 234 | |
Debt Instrument Carrying Amount | 317 | 325 | |
Carrying Amount | Southern California Gas Company [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair value of financial instruments, Total long-term debt | [4] | 2,512 | 1,913 |
Preferred Stock Of Subsidiaries Fair Value Disclosure | 22 | 22 | |
Debt Instrument Unamortized Discount | 7 | 8 | |
Capital Lease Obligations | 2 | 1 | |
Fair Value | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair value of financial instruments, Total long-term debt | [1],[2] | 14,396 | 13,699 |
Preferred Stock Of Subsidiaries Fair Value Disclosure | 22 | 23 | |
Fair Value | Level 1 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair value of financial instruments, Total long-term debt | [1],[2] | 0 | 0 |
Preferred Stock Of Subsidiaries Fair Value Disclosure | 0 | 0 | |
Fair Value | Level 2 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair value of financial instruments, Total long-term debt | [1],[2] | 13,693 | 12,782 |
Preferred Stock Of Subsidiaries Fair Value Disclosure | 22 | 23 | |
Fair Value | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair value of financial instruments, Total long-term debt | [1],[2] | 703 | 917 |
Preferred Stock Of Subsidiaries Fair Value Disclosure | 0 | 0 | |
Fair Value | San Diego Gas and Electric Company [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair value of financial instruments, Total long-term debt | [2],[3] | 4,969 | 4,988 |
Fair Value | San Diego Gas and Electric Company [Member] | Level 1 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair value of financial instruments, Total long-term debt | [2],[3] | 0 | 0 |
Fair Value | San Diego Gas and Electric Company [Member] | Level 2 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair value of financial instruments, Total long-term debt | [2],[3] | 4,652 | 4,563 |
Fair Value | San Diego Gas and Electric Company [Member] | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair value of financial instruments, Total long-term debt | [2],[3] | 317 | 425 |
Fair Value | Southern California Gas Company [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair value of financial instruments, Total long-term debt | [4] | 2,658 | 2,124 |
Preferred Stock Of Subsidiaries Fair Value Disclosure | 24 | 25 | |
Fair Value | Southern California Gas Company [Member] | Level 1 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair value of financial instruments, Total long-term debt | [4] | 0 | 0 |
Preferred Stock Of Subsidiaries Fair Value Disclosure | 0 | 0 | |
Fair Value | Southern California Gas Company [Member] | Level 2 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair value of financial instruments, Total long-term debt | [4] | 2,658 | 2,124 |
Preferred Stock Of Subsidiaries Fair Value Disclosure | 24 | 25 | |
Fair Value | Southern California Gas Company [Member] | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair value of financial instruments, Total long-term debt | [4] | 0 | 0 |
Preferred Stock Of Subsidiaries Fair Value Disclosure | $ 0 | $ 0 | |
[1] | Before reductions for unamortized discount (net of premium) of $21 million at both September 30, 2015 and December 31, 2014, and excluding build-to-suit and capital lease obligations of $375 million and $310 million at September 30, 2015 and December 31, 2014, respectively. We discuss our long-term debt in Note 6 above and in Note 5 of the Notes to Consolidated Financial Statements in the Annual Report. | ||
[2] | Level 3 instruments include $317 million and $325 million at September 30, 2015 and December 31, 2014, respectively, related to Otay Mesa VIE. | ||
[3] | Before reductions for unamortized discount of $10 million and $11 million at September 30, 2015 and December 31, 2014, respectively, and excluding capital lease obligations of $231 million and $234 million at September 30, 2015 and December 31, 2014, respectively. | ||
[4] | Before reductions for unamortized discount of $7 million and $8 million at September 30, 2015 and December 31, 2014, respectively, and excluding capital lease obligations of $2 million and $1 million at September 30, 2015 and December 31, 2014, respectively. |
NUCLEAR PLANT 1 (Details)
NUCLEAR PLANT 1 (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Mar. 31, 2014 | Jun. 30, 2013 | Sep. 30, 2015 | Sep. 30, 2014 | ||
Nuclear Plant Investment [Line Items] | |||||||||
Plant closure (adjustment) loss | $ 0 | $ 0 | $ (21) | $ (13) | |||||
Loss (Adjustment) From Plant Closure, After Tax | $ (13) | $ 12 | $ 9 | ||||||
Loss from plant closure, after-tax (cumulative) | 127 | $ 119 | |||||||
Charge To Reduce Certain Tax Regulatory Assets Attributable To Nuclear Plant | 17 | ||||||||
Regulatory Asset, Current, Nuclear Plant Closure | 42 | 42 | |||||||
Regulatory Asset, Nuclear Plant Closure | 272 | 272 | |||||||
Regulatory Asset, Noncurrent, Nuclear Plant Closure | 230 | 230 | |||||||
Other Commitments [Line Items] | |||||||||
Five-year research funding commitment, annual amount | 1 | 1 | |||||||
Nuclear Plant Decommissioning And Funding [Line Items] | |||||||||
Nuclear decommissioning trusts | 1,060 | 1,131 | [1] | 1,060 | |||||
Year 2013 [Member] | |||||||||
Nuclear Plant Decommissioning And Funding [Line Items] | |||||||||
Authorized Annuial Recovery Amount, Nuclear Decommissioning Trust Funding | 55 | 55 | |||||||
Withdrawal From Nuclear Decommissioning Trust Funds | 37 | ||||||||
Amount funded to customers through Energy Resource Recovery Account | 34 | ||||||||
Amount Pending IRS Clarification | 18 | ||||||||
Amount To Refund Regulatory Assets | 3 | ||||||||
Year 2014 [Member] | |||||||||
Nuclear Plant Decommissioning And Funding [Line Items] | |||||||||
Withdrawal From Nuclear Decommissioning Trust Funds | 23 | ||||||||
Amount Pending IRS Clarification | 13 | ||||||||
Requested Annuial Recovery Amount, Nuclear Decommissioning Trust Funding | 36 | 36 | |||||||
Nuclear Plant Entire Ownership [Member] | |||||||||
Nuclear Plant Settlement [Line Items] | |||||||||
Nuclear Plant, Insurance Recovery | 400 | 400 | |||||||
Nuclear Plant SDGE Ownership [Member] | |||||||||
Nuclear Plant Settlement [Line Items] | |||||||||
Nuclear Plant, Insurance Recovery | $ 80 | $ 80 | |||||||
Recovery Allocation Percentage | 5.00% | 5.00% | |||||||
Customers [Member] | |||||||||
Nuclear Plant Settlement [Line Items] | |||||||||
Recovery Allocation Percentage | 95.00% | 95.00% | |||||||
Nuclear Plant, SDGE [Member] | |||||||||
Nuclear Plant [Line Items] | |||||||||
Nuclear Plant, Ownership Percentage | 20.00% | 20.00% | |||||||
San Diego Gas and Electric Company [Member] | |||||||||
Nuclear Plant Investment [Line Items] | |||||||||
Utility plant closure (adjustment) loss | $ 0 | $ 0 | $ (21) | (13) | |||||
Loss (Adjustment) From Plant Closure, After Tax | $ (13) | 12 | $ 9 | ||||||
Loss from plant closure, after-tax (cumulative) | 127 | $ 119 | |||||||
Charge To Reduce Certain Tax Regulatory Assets Attributable To Nuclear Plant | $ 17 | ||||||||
Regulatory Asset, Current, Nuclear Plant Closure | 42 | 42 | |||||||
Regulatory Asset, Nuclear Plant Closure | 272 | 272 | |||||||
Regulatory Asset, Noncurrent, Nuclear Plant Closure | 230 | 230 | |||||||
Other Commitments [Line Items] | |||||||||
Five-year research funding commitment, annual amount | 1 | 1 | |||||||
Nuclear Plant Decommissioning And Funding [Line Items] | |||||||||
Nuclear decommissioning trusts | 1,060 | $ 1,131 | [1] | 1,060 | |||||
San Diego Gas and Electric Company [Member] | Year 2013 [Member] | |||||||||
Nuclear Plant Decommissioning And Funding [Line Items] | |||||||||
Authorized Annuial Recovery Amount, Nuclear Decommissioning Trust Funding | 55 | 55 | |||||||
Withdrawal From Nuclear Decommissioning Trust Funds | 37 | ||||||||
Amount funded to customers through Energy Resource Recovery Account | 34 | ||||||||
Amount Pending IRS Clarification | 18 | ||||||||
Amount To Refund Regulatory Assets | 3 | ||||||||
San Diego Gas and Electric Company [Member] | Year 2014 [Member] | |||||||||
Nuclear Plant Decommissioning And Funding [Line Items] | |||||||||
Withdrawal From Nuclear Decommissioning Trust Funds | 23 | ||||||||
Amount Pending IRS Clarification | 13 | ||||||||
Requested Annuial Recovery Amount, Nuclear Decommissioning Trust Funding | $ 36 | $ 36 | |||||||
[1] | Derived from audited financial statements. |
SONGS NDT 1 (Details)
SONGS NDT 1 (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||||||
Cost | $ 681 | $ 681 | $ 675 | |||||
Gross Unrealized Gains | 397 | 466 | ||||||
Gross Unrealized Loss | (18) | (10) | ||||||
Estimated fair value | 1,060 | 1,060 | 1,131 | |||||
Proceeds from sales | [1] | 210 | $ 148 | 431 | $ 498 | |||
Gross realized gains | 18 | 5 | 24 | 9 | ||||
Gross realized losses | (6) | $ (3) | (13) | $ (8) | ||||
Total Debt Securities | ||||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||||
Cost | 451 | 451 | 430 | |||||
Gross Unrealized Gains | 15 | 21 | ||||||
Gross Unrealized Loss | (12) | (6) | ||||||
Estimated fair value | 454 | 454 | 445 | |||||
Debt Securities Issued By The U.S. Treasury And Other U.S. Government Corporations And Agencies | ||||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||||
Cost | 90 | [2] | 90 | [2] | 103 | |||
Gross Unrealized Gains | 5 | [2] | 6 | |||||
Gross Unrealized Loss | 0 | [2] | 0 | |||||
Estimated fair value | 95 | [2] | 95 | [2] | 109 | |||
Municipal Bonds | ||||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||||
Cost | 147 | [3] | 147 | [3] | 121 | |||
Gross Unrealized Gains | 7 | [3] | 8 | |||||
Gross Unrealized Loss | 0 | [3] | 0 | |||||
Estimated fair value | 154 | [3] | 154 | [3] | 129 | |||
Other Debt Securities | ||||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||||
Cost | 214 | [3] | 214 | [3] | 206 | |||
Gross Unrealized Gains | 3 | [3] | 7 | |||||
Gross Unrealized Loss | (12) | [3] | (6) | |||||
Estimated fair value | 205 | [3] | 205 | [3] | 207 | |||
Equity Securities | ||||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||||
Cost | 212 | 212 | 215 | |||||
Gross Unrealized Gains | 382 | 444 | ||||||
Gross Unrealized Loss | (6) | (4) | ||||||
Estimated fair value | 588 | 588 | 655 | |||||
Cash And Cash Equivalents | ||||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||||
Cost | 18 | 18 | 30 | |||||
Gross Unrealized Gains | 0 | 1 | ||||||
Gross Unrealized Loss | 0 | 0 | ||||||
Estimated fair value | $ 18 | $ 18 | $ 31 | |||||
[1] | Excludes securities that are held to maturity. | |||||||
[2] | Maturity dates are 2016-2065. | |||||||
[3] | Maturity dates are 2015-2115. |
CALIFORNIA UTILITIES' REGULAT62
CALIFORNIA UTILITIES' REGULATORY MATTERS - SCHEDULE OF REGULATORY AMOUNTS 1 (Details) - Year 2016 [Member] - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Sep. 30, 2015 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
San Diego Gas and Electric Company [Member] | |||||
General Rate Case [Line Items] | |||||
General Rate Case, Revenue Requirement, Revised Request | $ 1,905 | $ 1,811 | |||
General Rate Case, Revenue Requirement Increase, Original Request | 133 | ||||
General Rate Case, Revenue Requirement Increase, Revised Request | $ 111 | (100) | |||
General Rate Case, Revenue Requirement Percentage Increase, Revised Request | 6.00% | ||||
General Rate Case, Revised Request Decrease Compared To Original | $ 6 | ||||
General Rate Case, Proposed Revenue Requirement Increase (Decrease) | $ 17 | ||||
General Rate Case, Proposed Revenue Requirement Percentage Increase (Decrease) | 4.30% | 3.50% | 3.50% | 1.00% | |
General Rate Case, Adjustment To Decrease Estimated Revenue Requirement | 16 | ||||
General Rate Case, Proposed Rate Base Adjustment | $ 93 | ||||
General Rate Case, Tax Memorandum Accounts Balance | 34 | ||||
Southern California Gas Company [Member] | |||||
General Rate Case [Line Items] | |||||
General Rate Case, Revenue Requirement, Revised Request | 2,342 | 2,219 | |||
General Rate Case, Revenue Requirement Increase, Original Request | 256 | ||||
General Rate Case, Revenue Requirement Increase, Revised Request | $ 246 | (133) | |||
General Rate Case, Revenue Requirement Percentage Increase, Revised Request | 12.00% | ||||
General Rate Case, Revised Request Decrease Compared To Original | $ 10 | ||||
General Rate Case, Proposed Revenue Requirement Increase (Decrease) | $ 122 | ||||
General Rate Case, Proposed Revenue Requirement Percentage Increase (Decrease) | 4.30% | 3.50% | 3.50% | 6.00% | |
General Rate Case, Proposed Rate Base Adjustment | $ 92 | ||||
General Rate Case, Tax Memorandum Accounts Balance | $ 46 |
CALIFORNIA UTILITIES' REGULAT63
CALIFORNIA UTILITIES' REGULATORY MATTERS - SCHEDULE OF REGULATORY AMOUNTS 2 (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Mar. 31, 2015 |
San Diego Gas and Electric Company [Member] | Years 2006 To 2008 [Member] | ||
Utility Incentive Awards [Line Items] | ||
Requested Energy Efficiency Awards | $ 16,200 | |
Southern California Gas Company [Member] | Year 2014 [Member] | ||
Utility Incentive Awards [Line Items] | ||
Recognized Gas Cost Incentive Mechanism Award | $ 13,700 | |
Southern California Gas Company [Member] | Year 2015 [Member] | ||
Utility Incentive Awards [Line Items] | ||
Requested Gas Cost Incentive Mechanism Award | 7,250 | |
Southern California Gas Company [Member] | Years 2006 To 2008 [Member] | ||
Utility Incentive Awards [Line Items] | ||
Requested Energy Efficiency Awards | $ 17,300 |
CALIFORNIA UTILITIES' REGULAT64
CALIFORNIA UTILITIES' REGULATORY MATTERS - SCHEDULE OF UTILITY PROJECTS 1 (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Sep. 30, 2015USD ($) | Dec. 31, 2014USD ($) | Jun. 11, 2014USD ($) | |
Pipeline Safety Enhancement Plan [Member] | San Diego Gas and Electric Company [Member] | |||
Schedule Of Utility Projects [Line Items] | |||
Pipeline Safety Plan Regulatory Account | $ 7,000 | $ 100 | |
Recovery Requested, PSEP Costs | 100 | ||
Pipeline Safety Enhancement Plan [Member] | Southern California Gas Company [Member] | |||
Schedule Of Utility Projects [Line Items] | |||
Disallowed Costs Impact On Earnings After Tax | $ 5,000 | ||
Pipeline Safety Plan Regulatory Account | 153,000 | $ 46,000 | |
Recovery Requested, PSEP Costs | 26,800 | ||
ORA Recommended Disallowance | 11,100 | ||
ORA Recommended Recovery | 15,700 | ||
TURN Recommended Disallowance | 2,300 | ||
TURN Recommended Recovery | 24,500 | ||
South Orange County Reliability Enhancement [Member] | San Diego Gas and Electric Company [Member] | |||
Schedule Of Utility Projects [Line Items] | |||
Estimated Project Cost, Lower Range | 350,000 | ||
Estimated Project Cost, Upper Range | 400,000 | ||
Cleveland National Forest Transmissions Projects [Member] | San Diego Gas and Electric Company [Member] | |||
Schedule Of Utility Projects [Line Items] | |||
Estimated Project Cost, Lower Range | 400,000 | ||
Estimated Project Cost, Upper Range | 450,000 | ||
Southern Gas System Member [Member] | Utility Subsidiaries [Member] | |||
Schedule Of Utility Projects [Line Items] | |||
Estimated Project Cost, Lower Range | 800,000 | ||
Estimated Project Cost, Upper Range | 850,000 | ||
Sycamore Penasquitos Transmission Project [Member] | San Diego Gas and Electric Company [Member] | |||
Schedule Of Utility Projects [Line Items] | |||
Estimated Project Cost, Lower Range | 120,000 | ||
Estimated Project Cost, Upper Range | $ 150,000 | ||
Public Utilities Requested Basis Point Return On Equity Adder, Denied | 100 | ||
Public Utilities Abandoned Plant Cost Recovery Approved, Percentage | 100.00% | ||
Revised Estimated Project Cost, Lower Range | $ 250,000 | ||
Revised Estimated Project Cost, Upper Range | 300,000 | ||
Electric Vehicle Charging [Member] | San Diego Gas and Electric Company [Member] | |||
Schedule Of Utility Projects [Line Items] | |||
Estimated Project Cost | 103,000 | ||
Portion of Estimated Project Cost To Be Capitalized | $ 59,000 | ||
Number Of Charging Stations | 5,500 | ||
Pipeline Safety And Reliability Project [Member] | Utility Subsidiaries [Member] | |||
Schedule Of Utility Projects [Line Items] | |||
Estimated Project Cost | $ 600,000 | ||
Wildfire Cost Recovery [Member] | San Diego Gas and Electric Company [Member] | |||
Schedule Of Utility Projects [Line Items] | |||
Incurred Costs | 2,400,000 | ||
Requested Recovery | 379,000 | ||
Insurance Reimbursement | 1,100,000 | ||
Third Party Settlement Recoveries | 824,000 | ||
FERC Jurisdictional Rates | $ 80,000 | ||
Voluntary Shareholder Contribution, Percentage | 10.00% | ||
WEMA Balance | $ 42,000 | ||
Pipeline Testing/Replacing 1956 to 1961 [Member] | San Diego Gas and Electric Company [Member] | |||
Schedule Of Utility Projects [Line Items] | |||
Estimated Project Cost | 3,000 | ||
Pipeline Testing/Replacing 1956 to 1961 [Member] | Southern California Gas Company [Member] | |||
Schedule Of Utility Projects [Line Items] | |||
Estimated Project Cost | $ 5,000 |
CALIFORNIA UTILITIES' REGULAT65
CALIFORNIA UTILITIES' REGULATORY MATTERS - SCHEDULE OF UTILITY PROJECTS 2 (Details) - Sunrise Powerlink Electric Transmission Line [Member] - San Diego Gas and Electric Company [Member] $ in Thousands | Sep. 30, 2015USD ($) |
Schedule Of Utility Projects [Line Items] | |
Final Status Report | $ 1,887,400 |
2008 CPUC Approval Decision | 1,883,000 |
Difference | 4,400 |
Construction Costs And AFUDC [Member] | |
Schedule Of Utility Projects [Line Items] | |
Final Status Report | 1,490,900 |
2008 CPUC Approval Decision | 1,594,200 |
Difference | (103,300) |
Undergrounding On Alpine Boulevard [Member] | |
Schedule Of Utility Projects [Line Items] | |
Final Status Report | 11,700 |
2008 CPUC Approval Decision | 91,000 |
Difference | (79,300) |
Undergrounding Savings Per Quarter Mile | 11,000 |
Mitigation And Monitoring Costs [Member] | |
Schedule Of Utility Projects [Line Items] | |
Final Status Report | 384,800 |
2008 CPUC Approval Decision | 197,800 |
Difference | $ 187,000 |
CALIFORNIA UTILITIES' REGULAT66
CALIFORNIA UTILITIES' REGULATORY MATTERS - SCHEDULE OF REGULATORY AMOUNTS 3 (Details) - Southern California Gas Company [Member] - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | 36 Months Ended | ||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | |
Impact Of 2010 Tax Act [Line Items] | |||||||||
Increase Due To Bonus Depreciation Extension, Net Of Tax | $ 1,100 | $ 600 | $ 800 | $ 1,400 | $ 11,300 | ||||
Increase Due To Bonus Depreciation Extension, Before Tax | $ 6,600 | $ 6,400 | $ 6,300 | $ 6,400 | |||||
First Quarter [Member] | |||||||||
Seasonal Factors [Line Items] | |||||||||
Percentage Revenue Recognized Straight Line | 25.00% | ||||||||
Percentage Revenue Recognized Seasonal | 34.00% | ||||||||
Second Quarter [Member] | |||||||||
Seasonal Factors [Line Items] | |||||||||
Percentage Revenue Recognized Straight Line | 25.00% | ||||||||
Percentage Revenue Recognized Seasonal | 21.00% | ||||||||
Third Quarter [Member] | |||||||||
Seasonal Factors [Line Items] | |||||||||
Percentage Revenue Recognized Straight Line | 25.00% | ||||||||
Percentage Revenue Recognized Seasonal | 16.00% | ||||||||
Fourth Quarter [Member] | |||||||||
Seasonal Factors [Line Items] | |||||||||
Percentage Revenue Recognized Straight Line | 25.00% | ||||||||
Percentage Revenue Recognized Seasonal | 29.00% |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - LEGAL PROCEEDINGS (Details) £ in Millions | 3 Months Ended | ||
Sep. 30, 2015USD ($) | Oct. 01, 2015GBP (£) | Oct. 01, 2014GBP (£) | |
Loss Contingencies [Line Items] | |||
Loss Contingency Accrual, at Carrying Value | $ 52,000,000 | ||
San Diego Gas and Electric Company [Member] | |||
Loss Contingencies [Line Items] | |||
Loss Contingency Accrual, at Carrying Value | 27,000,000 | ||
Southern California Gas Company [Member] | |||
Loss Contingencies [Line Items] | |||
Loss Contingency Accrual, at Carrying Value | 13,000,000 | ||
Loss from Catastrophes [Member] | San Diego Gas and Electric Company [Member] | |||
Loss Contingencies [Line Items] | |||
Payments for Legal Settlements in April 2010, CPUC Proceedings | $ 14,750,000 | ||
Number Of Remaining Cases Set for Trial | 1 | ||
Claims Payments By Insurers To All Claimants | $ 1,600,000,000 | ||
Percentage of Total Claims to be Paid by Company | 57.50% | ||
Total Settled Claims | $ 1,300,000,000 | ||
Loss Contingency Number Of Plaintiffs | 6,500 | ||
Loss Contingency, Number Of Claims | 19,000 | ||
Liability Insurance Coverage, Maximum | $ 1,100,000,000 | ||
Litigation Settlement Amount, Gross, Recovered From Third Parties | 824,000,000 | ||
Payments For Legal Settlements In Excess Of Recovered Amounts | 496,000,000 | ||
Regulatory Assets Arising From Wildfire Litigation Costs | 362,000,000 | ||
Potential After-Tax Charge for Nonrecovery of CPUC Regulatory Assets | 213,000,000 | ||
Portion of Regulatory Assets Arising From Wildfire Litigation Related To CPUC Operations | $ 359,000,000 | ||
Number of Appeals Pending | 2 | ||
Mobile Gas Litigation [Member] | |||
Loss Contingencies [Line Items] | |||
Loss Contingency Number Of Plaintiffs | 1,000 | ||
Loss Contingency, Number Of Lawsuits | 13 | ||
R B S [Member] | |||
Loss Contingencies [Line Items] | |||
VAT Tax Claim Paid Upon Appeal | £ | £ 156 | £ 86 | |
Investment in RBS Sempra Commodities LLP | $ 71,000,000 | ||
Rim Rock [Member] | San Diego Gas and Electric Company [Member] | |||
Loss Contingencies [Line Items] | |||
Estimated Tax Equity Investment | $ 285,000,000 | ||
So Cal Gas PCB Litigation Member [Member] | Southern California Gas Company [Member] | |||
Loss Contingencies [Line Items] | |||
Number of Lawsuits as a Defendant | 7 | ||
Number of Lawsuits Settled | 5 | ||
Mobile Gas Litigation [Member] [Member] | |||
Loss Contingencies [Line Items] | |||
Number of Lawsuits Settled | 6 | ||
Number Of Lawsuits Remaining | 7 | ||
Number Of Plaintiffs Scheduled For Trial | 10 |
COMMITMENTS AND CONTINGENCIES68
COMMITMENTS AND CONTINGENCIES - NUCLEAR INSURANCE (Details) - San Diego Gas and Electric Company [Member] $ in Thousands | Sep. 30, 2015USD ($) |
Schedule Of Nuclear Insurance [Line Items] | |
Nuclear Liability Insurance Coverage, Maximum | $ 375,000 |
Secondary Financial Protection, Maximum | 13,200,000 |
Secondary Financial Protection, Company Contribution, Maximum | 50,930 |
Secondary Financial Protection, Company Contribution, Annual Maximum | 7,600 |
Nuclear Property Insurance Coverage, Maximum | 2,750,000 |
Nuclear Property Damage Insurance, Premium Assessment | 9,700 |
Nuclear Property Insurance Terrorism Coverage, Maximum | 3,240,000 |
Nuclear Property Insurance, Deductible Per Event | $ 2,500 |
COMMITMENTS AND CONTINGENCIES69
COMMITMENTS AND CONTINGENCIES - CONTRACTUAL COMMITMENTS 2 (Details) | 3 Months Ended |
Sep. 30, 2015USD ($) | |
San Diego Gas and Electric Company [Member] | Purchased Power Contracts [Member] | |
Payments Under Contractual Commitments [Line Items] | |
Increase (Decrease) In Contractual Commitment Amount | $ (362,000,000) |
Increase (Decrease) In Contractual Commitments, Payments Due, Current | 22,000,000 |
Increase (Decrease) In Contractual Commitments, Payments Due, In Two Years | 26,000,000 |
Increase (Decrease) In Contractual Commitments, Payments Due, In Three Years | (14,000,000) |
Increase (Decrease) In Contractual Commitments, Payments Due, In Four Years | (16,000,000) |
Increase (Decrease) In Contractual Commitments, Payments Due, In Five Years | (21,000,000) |
Increase (Decrease) In Contractual Commitments, Payments Due, In Thereafter | (359,000,000) |
San Diego Gas and Electric Company [Member] | Construction and Development Contracts [Member] | |
Payments Under Contractual Commitments [Line Items] | |
Increase (Decrease) In Contractual Commitment Amount | (66,000,000) |
Increase (Decrease) In Contractual Commitments, Payments Due, Current | (144,000,000) |
Increase (Decrease) In Contractual Commitments, Payments Due, In Two Years | 25,000,000 |
Increase (Decrease) In Contractual Commitments, Payments Due, In Three Years | 19,000,000 |
Increase (Decrease) In Contractual Commitments, Payments Due, In Four Years | 12,000,000 |
Increase (Decrease) In Contractual Commitments, Payments Due, In Five Years | 17,000,000 |
Increase (Decrease) In Contractual Commitments, Payments Due, In Thereafter | 5,000,000 |
Southern California Gas Company [Member] | Natural Gas Contracts [Member] | |
Payments Under Contractual Commitments [Line Items] | |
Increase (Decrease) In Contractual Commitment Amount | (120,000,000) |
Increase (Decrease) In Contractual Commitments, Payments Due, Current | (114,000,000) |
Increase (Decrease) In Contractual Commitments, Payments Due, In Two Years | (1,000,000) |
Increase (Decrease) In Contractual Commitments, Payments Due, In Three Years | (1,000,000) |
Increase (Decrease) In Contractual Commitments, Payments Due, In Four Years | (1,000,000) |
Increase (Decrease) In Contractual Commitments, Payments Due, In Five Years | (1,000,000) |
Increase (Decrease) In Contractual Commitments, Payments Due, In Thereafter | (2,000,000) |
Southern California Gas Company [Member] | Construction and Development Contracts [Member] | |
Payments Under Contractual Commitments [Line Items] | |
Increase (Decrease) In Contractual Commitment Amount | (137,000,000) |
Increase (Decrease) In Contractual Commitments, Payments Due, Current | (164,000,000) |
Increase (Decrease) In Contractual Commitments, Payments Due, In Two Years | 20,000,000 |
Increase (Decrease) In Contractual Commitments, Payments Due, In Three Years | 7,000,000 |
Sempra Mexico [Member] | Construction and Development Contracts [Member] | |
Payments Under Contractual Commitments [Line Items] | |
Increase (Decrease) In Contractual Commitment Amount | 41,000,000 |
Increase (Decrease) In Contractual Commitments, Payments Due, Current | (19,000,000) |
Increase (Decrease) In Contractual Commitments, Payments Due, In Two Years | 59,000,000 |
Increase (Decrease) In Contractual Commitments, Payments Due, In Thereafter | 1,000,000 |
Sempra Natural Gas [Member] | Natural Gas Contracts [Member] | |
Payments Under Contractual Commitments [Line Items] | |
Increase (Decrease) In Contractual Commitment Amount | (345,000,000) |
Increase (Decrease) In Contractual Commitments, Payments Due, Current | (219,000,000) |
Increase (Decrease) In Contractual Commitments, Payments Due, In Two Years | (41,000,000) |
Increase (Decrease) In Contractual Commitments, Payments Due, In Three Years | (45,000,000) |
Increase (Decrease) In Contractual Commitments, Payments Due, In Four Years | (33,000,000) |
Increase (Decrease) In Contractual Commitments, Payments Due, In Five Years | 1,000,000 |
Increase (Decrease) In Contractual Commitments, Payments Due, In Thereafter | (8,000,000) |
Sempra Natural Gas [Member] | Liquefied Natural Gas Contracts [Member] | |
Payments Under Contractual Commitments [Line Items] | |
Increase (Decrease) In Contractual Commitments, Payments Due, Current | (322,000,000) |
Increase (Decrease) In Contractual Commitments, Payments Due, In Two Years | (128,000,000) |
Increase (Decrease) In Contractual Commitments, Payments Due, In Three Years | (163,000,000) |
Increase (Decrease) In Contractual Commitments, Payments Due, In Four Years | (194,000,000) |
Increase (Decrease) In Contractual Commitments, Payments Due, In Five Years | (195,000,000) |
Increase (Decrease) In Contractual Commitments, Payments Due, In Thereafter | $ (1,400,000,000) |
Escalation percentage beyond year 2024 | 1.00% |
Sempra Natural Gas [Member] | Construction and Development Contracts [Member] | |
Payments Under Contractual Commitments [Line Items] | |
Increase (Decrease) In Contractual Commitment Amount | $ 46,000,000 |
Increase (Decrease) In Contractual Commitments, Payments Due, Current | 46,000,000 |
Sempra Natural Gas [Member] | Other Commitments [Member] | |
Payments Under Contractual Commitments [Line Items] | |
Increase (Decrease) In Long Term Contracts | (33,000,000) |
Sempra Renewables [Member] | Construction and Development Contracts [Member] | |
Payments Under Contractual Commitments [Line Items] | |
Increase (Decrease) In Contractual Commitment Amount | 554,000,000 |
Increase (Decrease) In Contractual Commitments, Payments Due, Current | 90,000,000 |
Increase (Decrease) In Contractual Commitments, Payments Due, In Two Years | $ 464,000,000 |
COMMITMENTS AND CONTINGENCIES70
COMMITMENTS AND CONTINGENCIES - CONTRACTUAL COMMITMENTS 3 (Details) - Sempra Renewables [Member] $ in Millions | Sep. 30, 2015USD ($) |
Operating Leases [Line Items] | |
Increase (Decrease) In Operating Lease Future Minimum Payments, Due Current | $ (1) |
Increase (Decrease) In Operating Lease Future Minimum Payments, Due In Two Years | 1 |
Increase (Decrease) In Operating Lease Future Minimum Payments, Due In Three Years | 1 |
Increase (Decrease) In Operating Lease Future Minimum Payments, Due In Four Years | 2 |
Increase (Decrease) In Operating Lease Future Minimum Payments, Due In Five Years | 2 |
Increase (Decrease) In Operating Lease Future Minimum Payments, Due Thereafter | 39 |
Increase (Decrease) In Operating Leases Amount | $ 44 |
COMMITMENTS AND CONTINGENCIES71
COMMITMENTS AND CONTINGENCIES - CONTRACTUAL COMMITMENTS 4 (Details) - Pio Pico [Member] $ in Millions | Sep. 30, 2015USD ($) | |
Capital Leases [Line Items] | ||
CapitalLeasesFutureMinimumPaymentsDueCurrent | $ 0 | |
CapitalLeasesFutureMinimumPaymentsDueInTwoYears | 0 | |
CapitalLeasesFutureMinimumPaymentsDueInThreeYears | 38 | |
CapitalLeasesFutureMinimumPaymentsDueInFourYears | 65 | |
CapitalLeasesFutureMinimumPaymentsDueInFiveYears | 65 | |
CapitalLeasesFutureMinimumPaymentsDueThereafter | 1,460 | |
CapitalLeasesFutureMinimumPaymentsDue | 1,628 | [1] |
CapitalLeasesFutureMinimumPaymentsExecutoryCosts | (392) | |
CapitalLeasesFutureMinimumPaymentsInterestIncludedInPayments | (736) | [2] |
CapitalLeasesFutureMinimumPaymentsPresentValueOfNetMinimumPayments | $ 500 | |
[1] | This amount will be recorded over the life of the lease as Cost of Electric Fuel and Purchased Power on Sempra Energy’s and SDG&E’s Condensed Consolidated Statements of Operations. This expense will receive ratemaking treatment consistent with purchased-power costs, which are recovered in rates. | |
[2] | Amount necessary to reduce net minimum lease payments to estimated present value at the inception of the lease. |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |||
Segment Reporting Information, Profit (Loss) [Abstract] | |||||||
Segment reporting information, Revenue | $ 2,481 | $ 2,815 | $ 7,530 | $ 8,288 | |||
Segment reporting information, Percentage of Total Consolidated Revenues | 100.00% | 100.00% | 100.00% | 100.00% | |||
Segment reporting information, Interest Expense | $ 143 | $ 144 | $ 416 | $ 418 | |||
Segment reporting information, Interest Income | 6 | 6 | 23 | 15 | |||
Segment reporting information, Depreciation and Amortization | $ 315 | $ 292 | $ 925 | $ 866 | |||
Segment reporting information, Percentage of Consolidated Depreciation and Amortization | 100.00% | 100.00% | 100.00% | 100.00% | |||
Segment reporting information, Income Tax Expense (Benefit) | $ 15 | $ 71 | $ 276 | $ 291 | |||
Equity Earnings (Losses) Recorded Before Tax | 33 | 22 | 79 | 62 | |||
Segment reporting information, Equity Earnings (Losses) Recorded Net of Tax | 27 | 7 | 64 | 22 | |||
Segment reporting information, Earnings (Losses) | $ 248 | $ 348 | $ 980 | $ 864 | |||
Segment reporting information, Percentage of Consolidated Earnings (Losses) | 100.00% | 100.00% | 100.00% | 100.00% | |||
Segment Reporting Information, Additional Information [Abstract] | |||||||
Segment reporting information, Expenditures for property plant and equipment | $ 2,227 | $ 2,320 | |||||
Segment reporting information, Percentage of Consolidated Expenditures for Property, Plant & Equipment | 100.00% | 100.00% | |||||
Segment reporting information, Assets | $ 40,566 | $ 40,566 | $ 39,732 | [1] | |||
Segment reporting information, Percentage of Consolidated Assets | 100.00% | 100.00% | 100.00% | ||||
Segment Reporting Information Investments In Equity Method Investees | $ 2,845 | $ 2,845 | $ 2,848 | ||||
S D G E Segment [Member] | |||||||
Segment Reporting Information, Profit (Loss) [Abstract] | |||||||
Segment reporting information, Revenue | $ 1,230 | $ 1,233 | $ 3,168 | $ 3,283 | |||
Segment reporting information, Percentage of Total Consolidated Revenues | 50.00% | 44.00% | 42.00% | 40.00% | |||
Segment reporting information, Interest Expense | $ 51 | $ 51 | $ 155 | $ 152 | |||
Segment reporting information, Depreciation and Amortization | $ 152 | $ 134 | $ 446 | $ 395 | |||
Segment reporting information, Percentage of Consolidated Depreciation and Amortization | 48.00% | 46.00% | 48.00% | 46.00% | |||
Segment reporting information, Income Tax Expense (Benefit) | $ 75 | $ 65 | $ 217 | $ 217 | |||
Segment reporting information, Earnings (Losses) | $ 170 | $ 157 | $ 443 | $ 379 | |||
Segment reporting information, Percentage of Consolidated Earnings (Losses) | 69.00% | 45.00% | 45.00% | 44.00% | |||
Segment Reporting Information, Additional Information [Abstract] | |||||||
Segment reporting information, Expenditures for property plant and equipment | $ 835 | $ 790 | |||||
Segment reporting information, Percentage of Consolidated Expenditures for Property, Plant & Equipment | 38.00% | 34.00% | |||||
Segment reporting information, Assets | $ 16,692 | $ 16,692 | $ 16,296 | ||||
Segment reporting information, Percentage of Consolidated Assets | 41.00% | 41.00% | 41.00% | ||||
Segment Reporting Information, Intersegment Revenues | $ 2 | $ 2 | $ 7 | $ 7 | |||
So Cal Gas Segment [Member] | |||||||
Segment Reporting Information, Profit (Loss) [Abstract] | |||||||
Segment reporting information, Revenue | $ 620 | $ 855 | $ 2,448 | $ 2,857 | |||
Segment reporting information, Percentage of Total Consolidated Revenues | 25.00% | 30.00% | 33.00% | 35.00% | |||
Segment reporting information, Interest Expense | $ 23 | $ 17 | $ 61 | $ 50 | |||
Segment reporting information, Interest Income | 0 | 0 | 3 | 0 | |||
Segment reporting information, Depreciation and Amortization | $ 116 | $ 109 | $ 342 | $ 321 | |||
Segment reporting information, Percentage of Consolidated Depreciation and Amortization | 37.00% | 37.00% | 37.00% | 37.00% | |||
Segment reporting information, Income Tax Expense (Benefit) | $ (20) | $ 44 | $ 91 | $ 110 | |||
Segment reporting information, Earnings (Losses) | [2] | $ (8) | $ 98 | $ 276 | $ 256 | ||
Segment reporting information, Percentage of Consolidated Earnings (Losses) | [2] | (3.00%) | 28.00% | 28.00% | 30.00% | ||
Segment Reporting Information, Additional Information [Abstract] | |||||||
Segment reporting information, Expenditures for property plant and equipment | $ 946 | $ 764 | |||||
Segment reporting information, Percentage of Consolidated Expenditures for Property, Plant & Equipment | 42.00% | 33.00% | |||||
Segment reporting information, Assets | $ 11,355 | $ 11,355 | $ 10,461 | ||||
Segment reporting information, Percentage of Consolidated Assets | 28.00% | 28.00% | 26.00% | ||||
Segment Reporting Information, Intersegment Revenues | $ 19 | $ 17 | $ 55 | $ 51 | |||
Sempra South American Utilities Segment [Member] | |||||||
Segment Reporting Information, Profit (Loss) [Abstract] | |||||||
Segment reporting information, Revenue | $ 373 | $ 379 | $ 1,151 | $ 1,147 | |||
Segment reporting information, Percentage of Total Consolidated Revenues | 15.00% | 14.00% | 15.00% | 14.00% | |||
Segment reporting information, Interest Expense | $ 9 | $ 7 | $ 22 | $ 24 | |||
Segment reporting information, Interest Income | 5 | 4 | 14 | 10 | |||
Segment reporting information, Depreciation and Amortization | $ 12 | $ 14 | $ 37 | $ 41 | |||
Segment reporting information, Percentage of Consolidated Depreciation and Amortization | 4.00% | 5.00% | 4.00% | 5.00% | |||
Segment reporting information, Income Tax Expense (Benefit) | $ 16 | $ 26 | $ 50 | $ 59 | |||
Segment reporting information, Equity Earnings (Losses) Recorded Net of Tax | (3) | (2) | (4) | (4) | |||
Segment reporting information, Earnings (Losses) | $ 43 | $ 32 | $ 129 | $ 109 | |||
Segment reporting information, Percentage of Consolidated Earnings (Losses) | 17.00% | 9.00% | 13.00% | 13.00% | |||
Segment Reporting Information, Additional Information [Abstract] | |||||||
Segment reporting information, Expenditures for property plant and equipment | $ 105 | $ 126 | |||||
Segment reporting information, Percentage of Consolidated Expenditures for Property, Plant & Equipment | 5.00% | 5.00% | |||||
Segment reporting information, Assets | $ 3,265 | $ 3,265 | $ 3,379 | ||||
Segment reporting information, Percentage of Consolidated Assets | 8.00% | 8.00% | 9.00% | ||||
Segment Reporting Information Investments In Equity Method Investees | $ (11) | $ (11) | $ (8) | ||||
Sempra Mexico Segment [Member] | |||||||
Segment Reporting Information, Profit (Loss) [Abstract] | |||||||
Segment reporting information, Revenue | $ 193 | $ 234 | $ 508 | $ 621 | |||
Segment reporting information, Percentage of Total Consolidated Revenues | 8.00% | 8.00% | 7.00% | 7.00% | |||
Segment reporting information, Interest Expense | $ 7 | $ 5 | $ 18 | $ 13 | |||
Segment reporting information, Interest Income | 1 | 1 | 5 | 2 | |||
Segment reporting information, Depreciation and Amortization | $ 18 | $ 16 | $ 52 | $ 47 | |||
Segment reporting information, Percentage of Consolidated Depreciation and Amortization | 6.00% | 6.00% | 6.00% | 5.00% | |||
Segment reporting information, Income Tax Expense (Benefit) | $ (6) | $ 13 | $ 7 | $ 37 | |||
Segment reporting information, Equity Earnings (Losses) Recorded Net of Tax | 30 | 9 | 68 | 26 | |||
Segment reporting information, Earnings (Losses) | $ 63 | $ 63 | $ 160 | $ 139 | |||
Segment reporting information, Percentage of Consolidated Earnings (Losses) | 25.00% | 18.00% | 16.00% | 16.00% | |||
Segment Reporting Information, Additional Information [Abstract] | |||||||
Segment reporting information, Expenditures for property plant and equipment | $ 185 | $ 262 | |||||
Segment reporting information, Percentage of Consolidated Expenditures for Property, Plant & Equipment | 8.00% | 11.00% | |||||
Segment reporting information, Assets | $ 3,713 | $ 3,713 | $ 3,488 | ||||
Segment reporting information, Percentage of Consolidated Assets | 9.00% | 9.00% | 9.00% | ||||
Segment Reporting Information Investments In Equity Method Investees | $ 491 | $ 491 | $ 434 | ||||
Segment Reporting Information, Intersegment Revenues | 24 | $ 23 | 73 | $ 68 | |||
Sempra Renewables Segment [Member] | |||||||
Segment Reporting Information, Profit (Loss) [Abstract] | |||||||
Segment reporting information, Revenue | $ 12 | $ 10 | $ 30 | $ 25 | |||
Segment reporting information, Percentage of Total Consolidated Revenues | 0.00% | 0.00% | 0.00% | 0.00% | |||
Segment reporting information, Interest Expense | $ 1 | $ 2 | $ 3 | $ 3 | |||
Segment reporting information, Interest Income | 2 | 0 | 3 | 0 | |||
Segment reporting information, Depreciation and Amortization | $ 2 | $ 1 | $ 5 | $ 4 | |||
Segment reporting information, Percentage of Consolidated Depreciation and Amortization | 0.00% | 0.00% | 0.00% | 0.00% | |||
Segment reporting information, Income Tax Expense (Benefit) | $ (9) | $ (16) | $ (37) | $ (35) | |||
Equity Earnings (Losses) Recorded Before Tax | 8 | 7 | 20 | 18 | |||
Segment reporting information, Earnings (Losses) | $ 15 | $ 17 | $ 47 | $ 63 | |||
Segment reporting information, Percentage of Consolidated Earnings (Losses) | 6.00% | 5.00% | 5.00% | 7.00% | |||
Segment Reporting Information, Additional Information [Abstract] | |||||||
Segment reporting information, Expenditures for property plant and equipment | $ 47 | $ 174 | |||||
Segment reporting information, Percentage of Consolidated Expenditures for Property, Plant & Equipment | 2.00% | 8.00% | |||||
Segment reporting information, Assets | $ 1,351 | $ 1,351 | $ 1,338 | ||||
Segment reporting information, Percentage of Consolidated Assets | 3.00% | 3.00% | 3.00% | ||||
Segment Reporting Information Investments In Equity Method Investees | $ 843 | $ 843 | $ 911 | ||||
Sempra Natural Gas Segment [Member] | |||||||
Segment Reporting Information, Profit (Loss) [Abstract] | |||||||
Segment reporting information, Revenue | $ 160 | $ 252 | $ 512 | $ 748 | |||
Segment reporting information, Percentage of Total Consolidated Revenues | 6.00% | 9.00% | 7.00% | 9.00% | |||
Segment reporting information, Interest Expense | $ 13 | $ 25 | $ 57 | $ 90 | |||
Segment reporting information, Interest Income | 16 | 24 | 60 | 87 | |||
Segment reporting information, Depreciation and Amortization | $ 12 | $ 17 | $ 36 | $ 50 | |||
Segment reporting information, Percentage of Consolidated Depreciation and Amortization | 4.00% | 6.00% | 4.00% | 6.00% | |||
Segment reporting information, Income Tax Expense (Benefit) | $ 0 | $ (31) | $ 29 | $ (22) | |||
Equity Earnings (Losses) Recorded Before Tax | 25 | 15 | 59 | 44 | |||
Segment reporting information, Earnings (Losses) | $ 1 | $ 26 | $ 43 | $ 39 | |||
Segment reporting information, Percentage of Consolidated Earnings (Losses) | 0.00% | 8.00% | 5.00% | 4.00% | |||
Segment Reporting Information, Additional Information [Abstract] | |||||||
Segment reporting information, Expenditures for property plant and equipment | $ 61 | $ 192 | |||||
Segment reporting information, Percentage of Consolidated Expenditures for Property, Plant & Equipment | 3.00% | 8.00% | |||||
Segment reporting information, Assets | $ 5,552 | $ 5,552 | $ 6,436 | ||||
Segment reporting information, Percentage of Consolidated Assets | 14.00% | 14.00% | 16.00% | ||||
Segment Reporting Information Investments In Equity Method Investees | $ 1,435 | $ 1,435 | $ 1,347 | ||||
Segment Reporting Information, Intersegment Revenues | 62 | $ 107 | 151 | $ 266 | |||
Adjustments and Eliminations [Member] | |||||||
Segment Reporting Information, Profit (Loss) [Abstract] | |||||||
Segment reporting information, Revenue | $ 0 | $ 1 | $ (1) | $ (1) | |||
Segment reporting information, Percentage of Total Consolidated Revenues | 0.00% | 0.00% | 0.00% | 0.00% | |||
Intercompany Eliminations Segment [Member] | |||||||
Segment Reporting Information, Profit (Loss) [Abstract] | |||||||
Segment reporting information, Interest Expense | $ (26) | $ (26) | $ (93) | $ (92) | |||
Segment reporting information, Interest Income | (18) | (22) | (62) | (84) | |||
Intersegment Revenues Segment [Member] | |||||||
Segment Reporting Information, Profit (Loss) [Abstract] | |||||||
Segment reporting information, Revenue | [3] | $ (107) | $ (149) | $ (286) | $ (392) | ||
Segment reporting information, Percentage of Total Consolidated Revenues | [3] | (4.00%) | (5.00%) | (4.00%) | (5.00%) | ||
Intersegment Receivables Segment [Member] | |||||||
Segment Reporting Information, Additional Information [Abstract] | |||||||
Segment reporting information, Assets | $ (2,480) | $ (2,480) | $ (2,561) | ||||
Segment reporting information, Percentage of Consolidated Assets | (6.00%) | (6.00%) | (6.00%) | ||||
All Other Segments [Member] | |||||||
Segment Reporting Information, Profit (Loss) [Abstract] | |||||||
Segment reporting information, Interest Expense | $ 65 | $ 63 | $ 193 | $ 178 | |||
Segment reporting information, Interest Income | 0 | (1) | 0 | 0 | |||
Segment reporting information, Depreciation and Amortization | $ 3 | $ 1 | $ 7 | $ 8 | |||
Segment reporting information, Percentage of Consolidated Depreciation and Amortization | 1.00% | 0.00% | 1.00% | 1.00% | |||
Segment reporting information, Income Tax Expense (Benefit) | $ (41) | $ (30) | $ (81) | $ (75) | |||
Segment reporting information, Earnings (Losses) | $ (36) | $ (45) | $ (118) | $ (121) | |||
Segment reporting information, Percentage of Consolidated Earnings (Losses) | (14.00%) | (13.00%) | (12.00%) | (14.00%) | |||
Segment Reporting Information, Additional Information [Abstract] | |||||||
Segment reporting information, Expenditures for property plant and equipment | $ 48 | $ 12 | |||||
Segment reporting information, Percentage of Consolidated Expenditures for Property, Plant & Equipment | 2.00% | 1.00% | |||||
Segment reporting information, Assets | $ 1,118 | $ 1,118 | $ 895 | ||||
Segment reporting information, Percentage of Consolidated Assets | 3.00% | 3.00% | 2.00% | ||||
Segment Reporting Information Investments In Equity Method Investees | $ 87 | $ 87 | $ 164 | ||||
[1] | Derived from audited financial statements. | ||||||
[2] | After preferred dividends. | ||||||
[3] | Revenues for reportable segments include intersegment revenues of $2 million, $19 million, $24 million and $62 million for the three months ended September 30, 2015; $7 million, $55 million, $73 million and $151 million for the nine months ended September 30, 2015; $2 million, $17 million, $23 million and $107 million for the three months ended September 30, 2014; and $7 million, $51 million, $68 million and $266 million for the nine months ended September 30, 2014 for SDG&E, SoCalGas, Sempra Mexico and Sempra Natural Gas, respectively. |