COVER
COVER - shares | 6 Months Ended | |
Jun. 30, 2020 | Aug. 04, 2020 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 1-14201 | |
Entity Registrant Name | SEMPRA ENERGY | |
Entity Incorporation, State or Country Code | CA | |
Entity Tax Identification Number | 33-0732627 | |
Entity Address, Address Line One | 488 8th Avenue | |
Entity Address, City or Town | San Diego, | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 92101 | |
City Area Code | (619) | |
Local Phone Number | 696-2000 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Shares Outstanding | 289,259,674 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --12-31 | |
Entity Central Index Key | 0001032208 | |
San Diego Gas and Electric Company [Member] | ||
Document Information [Line Items] | ||
Entity File Number | 1-03779 | |
Entity Registrant Name | SAN DIEGO GAS & ELECTRIC COMPANY | |
Entity Incorporation, State or Country Code | CA | |
Entity Tax Identification Number | 95-1184800 | |
Entity Address, Address Line One | 8326 Century Park Court | |
Entity Address, City or Town | San Diego, | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 92123 | |
City Area Code | (619) | |
Local Phone Number | 696-2000 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0000086521 | |
Southern California Gas Company [Member] | ||
Document Information [Line Items] | ||
Entity File Number | 1-01402 | |
Entity Registrant Name | SOUTHERN CALIFORNIA GAS COMPANY | |
Entity Incorporation, State or Country Code | CA | |
Entity Tax Identification Number | 95-1240705 | |
Entity Address, Address Line One | 555 West Fifth Street | |
Entity Address, City or Town | Los Angeles, | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 90013 | |
City Area Code | (213) | |
Local Phone Number | 244-1200 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0000092108 | |
Common Stock [Member] | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Sempra Energy Common Stock, without par value | |
Trading Symbol | SRE | |
Security Exchange Name | NYSE | |
Convertible Preferred Stock Series A [Member] | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Sempra Energy 6% Mandatory Convertible Preferred Stock, Series A, $100 liquidation preference | |
Trading Symbol | SREPRA | |
Security Exchange Name | NYSE | |
Convertible Preferred Stock Series B [Member] | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Sempra Energy 6.75% Mandatory Convertible Preferred Stock, Series B, $100 liquidation preference | |
Trading Symbol | SREPRB | |
Security Exchange Name | NYSE | |
Sempra Energy 5.75% Junior Subordinated Notes Due 2079 [Member] | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Sempra Energy 5.75% Junior Subordinated Notes Due 2079, $25 par value | |
Trading Symbol | SREA | |
Security Exchange Name | NYSE |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
REVENUES | ||||
Utilities operating revenue | $ 2,233 | $ 1,895 | $ 4,898 | $ 4,410 |
Energy-related businesses | 293 | 335 | 657 | 718 |
Total revenues | 2,526 | 2,230 | 5,555 | 5,128 |
Operating expenses | ||||
Operation and maintenance | (898) | (838) | (1,849) | (1,670) |
Depreciation and amortization | (412) | (389) | (824) | (772) |
Franchise fees and other taxes | (121) | (112) | (258) | (242) |
Gain on sale of assets | 0 | 66 | 0 | 66 |
Operating expenses | ||||
Other income (expense), net | 62 | 28 | (192) | 110 |
Interest income | 22 | 21 | 49 | 42 |
Interest expense | (274) | (258) | (554) | (518) |
Income from continuing operations before income taxes and equity earnings | 463 | 286 | 860 | 787 |
Income tax (expense) benefit | (168) | (47) | 39 | (89) |
Equity earnings | 233 | 118 | 496 | 219 |
Income from continuing operations, net of income tax | 528 | 357 | 1,395 | 917 |
Income from discontinued operations, net of income tax | 1,777 | 78 | 1,857 | 36 |
Net income | 2,305 | 435 | 3,252 | 953 |
Earnings attributable to noncontrolling interests | (28) | (45) | (179) | (86) |
Preferred dividends | (37) | (35) | (73) | (71) |
Preferred dividends of subsidiary | (1) | (1) | (1) | (1) |
Earnings attributable to common shares | $ 2,239 | $ 354 | $ 2,999 | $ 795 |
Basic EPS: | ||||
Earnings from continuing operations | $ 1.58 | $ 1.03 | $ 3.93 | $ 2.82 |
Earnings from discontinued operations | 6.06 | 0.26 | 6.31 | 0.07 |
Earnings attributable to common shares (in usd per share) | $ 7.64 | $ 1.29 | $ 10.24 | $ 2.89 |
Weighted-average common shares outstanding | 293,060 | 274,987 | 292,925 | 274,831 |
Diluted EPS: | ||||
Earnings from continuing operations | $ 1.58 | $ 1.01 | $ 3.91 | $ 2.78 |
Earnings from discontinued operations | 6.03 | 0.25 | 6 | 0.07 |
Earnings from continuing operations attributable to common shares (in usd per share) | $ 7.61 | $ 1.26 | $ 9.91 | $ 2.85 |
Weighted-average common share outstanding, diluted | 294,155 | 279,619 | 307,962 | 278,424 |
Natural gas [Member] | ||||
Operating expenses | ||||
Operating expenses | $ (131) | $ (136) | $ (468) | $ (667) |
Electric fuel and purchased power [Member] | ||||
Operating expenses | ||||
Operating expenses | (260) | (263) | (489) | (519) |
Energy-related businesses [Member] | ||||
Operating expenses | ||||
Operating expenses | (51) | (63) | (110) | (171) |
San Diego Gas and Electric Company [Member] | ||||
REVENUES | ||||
Electric | 1,090 | 973 | 2,140 | 1,913 |
Natural gas | 145 | 121 | 364 | 326 |
Utilities operating revenue | 1,235 | 1,094 | 2,504 | 2,239 |
Operating expenses | ||||
Cost of electric fuel and purchased power | 260 | 265 | 491 | 523 |
Cost of natural gas | 31 | 34 | 91 | 113 |
Operation and maintenance | 326 | 276 | 636 | 562 |
Depreciation and amortization | 197 | 189 | 398 | 375 |
Franchise fees and other taxes | 73 | 67 | 151 | 141 |
Total operating expenses | 887 | 831 | 1,767 | 1,714 |
Operating income | 348 | 263 | 737 | 525 |
Other income (expense), net | 18 | 19 | 49 | 41 |
Interest income | 0 | 1 | 1 | 2 |
Interest expense | (103) | (102) | (204) | (205) |
Income from continuing operations before income taxes and equity earnings | 263 | 181 | 583 | 363 |
Income tax (expense) benefit | (70) | (35) | (128) | (40) |
Net income | 193 | 146 | 455 | 323 |
Earnings attributable to noncontrolling interests | 0 | (3) | 0 | (4) |
Earnings attributable to common shares | 193 | 143 | 455 | 319 |
Southern California Gas Company [Member] | ||||
REVENUES | ||||
Utilities operating revenue | 1,010 | 806 | 2,405 | 2,167 |
Operating expenses | ||||
Cost of natural gas | 106 | 104 | 384 | 559 |
Operation and maintenance | 462 | 454 | 1,005 | 864 |
Depreciation and amortization | 162 | 148 | 321 | 295 |
Franchise fees and other taxes | 43 | 41 | 94 | 89 |
Total operating expenses | 773 | 747 | 1,804 | 1,807 |
Operating income | 237 | 59 | 601 | 360 |
Other income (expense), net | (2) | 1 | 28 | 17 |
Interest income | 1 | 1 | 2 | 1 |
Interest expense | (40) | (34) | (80) | (68) |
Income from continuing operations before income taxes and equity earnings | 196 | 27 | 551 | 310 |
Income tax (expense) benefit | (49) | 4 | (101) | (15) |
Net income | 147 | 31 | 450 | 295 |
Preferred dividends | (1) | (1) | (1) | (1) |
Earnings attributable to common shares | $ 146 | $ 30 | $ 449 | $ 294 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Net income | $ 2,305 | $ 435 | $ 3,252 | $ 953 |
Other comprehensive income (loss): | ||||
Total other comprehensive (loss) income | 651 | (37) | 368 | (48) |
Pretax amount [Member] | ||||
Net income | 3,619 | 466 | 4,229 | 1,136 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments | 662 | 14 | 524 | 46 |
Financial instruments | (15) | (90) | (203) | (158) |
Pension and other postretirement benefits | (3) | 21 | 21 | 25 |
Total other comprehensive (loss) income | 644 | (55) | 342 | (87) |
Comprehensive income | 4,263 | 411 | 4,571 | 1,049 |
Preferred dividends of subsidiary | (1) | (1) | (1) | (1) |
Comprehensive (loss) income, after preferred dividends of subsidiary | 4,262 | 410 | 4,570 | 1,048 |
Income tax (expense) benefit [Member] | ||||
Net income | (1,342) | (76) | (1,156) | (269) |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments | 0 | 0 | 0 | 0 |
Financial instruments | 4 | 30 | 57 | 52 |
Pension and other postretirement benefits | 0 | (6) | (2) | (7) |
Total other comprehensive (loss) income | 4 | 24 | 55 | 45 |
Comprehensive income | (1,338) | (52) | (1,101) | (224) |
Preferred dividends of subsidiary | 0 | 0 | 0 | 0 |
Comprehensive (loss) income, after preferred dividends of subsidiary | (1,338) | (52) | (1,101) | (224) |
Net-of-tax amount [Member] | ||||
Net income | 2,277 | 390 | 3,073 | 867 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments | 662 | 14 | 524 | 46 |
Financial instruments | (11) | (60) | (146) | (106) |
Pension and other postretirement benefits | (3) | 15 | 19 | 18 |
Total other comprehensive (loss) income | 648 | (31) | 397 | (42) |
Comprehensive income | 2,925 | 359 | 3,470 | 825 |
Preferred dividends of subsidiary | (1) | (1) | (1) | (1) |
Comprehensive (loss) income, after preferred dividends of subsidiary | 2,924 | 358 | 3,469 | 824 |
Noncontrolling Interests (after-tax) [Member] | ||||
Net income | 28 | 45 | 179 | 86 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments | 5 | 2 | (15) | 6 |
Financial instruments | (2) | (8) | (14) | (12) |
Pension and other postretirement benefits | 0 | 0 | 0 | 0 |
Total other comprehensive (loss) income | 3 | (6) | (29) | (6) |
Comprehensive income | 31 | 39 | 150 | 80 |
Preferred dividends of subsidiary | 0 | 0 | 0 | 0 |
Comprehensive (loss) income, after preferred dividends of subsidiary | 31 | 39 | 150 | 80 |
Total [Member] | ||||
Net income | 2,305 | 435 | 3,252 | 953 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments | 667 | 16 | 509 | 52 |
Financial instruments | (13) | (68) | (160) | (118) |
Pension and other postretirement benefits | (3) | 15 | 19 | 18 |
Total other comprehensive (loss) income | 651 | (37) | 368 | (48) |
Comprehensive income | 2,956 | 398 | 3,620 | 905 |
Preferred dividends of subsidiary | (1) | (1) | (1) | (1) |
Comprehensive (loss) income, after preferred dividends of subsidiary | 2,955 | 397 | 3,619 | 904 |
San Diego Gas and Electric Company [Member] | ||||
Net income | 193 | 146 | 455 | 323 |
Other comprehensive income (loss): | ||||
Total other comprehensive (loss) income | 4 | 1 | 4 | 2 |
San Diego Gas and Electric Company [Member] | Pretax amount [Member] | ||||
Net income | 263 | 178 | 583 | 359 |
Other comprehensive income (loss): | ||||
Financial instruments | 0 | |||
Pension and other postretirement benefits | 5 | 1 | 5 | 1 |
Total other comprehensive (loss) income | 5 | 1 | 5 | 1 |
Comprehensive (loss) income, after preferred dividends of subsidiary | 268 | 179 | 588 | 360 |
San Diego Gas and Electric Company [Member] | Income tax (expense) benefit [Member] | ||||
Net income | (70) | (35) | (128) | (40) |
Other comprehensive income (loss): | ||||
Financial instruments | 0 | |||
Pension and other postretirement benefits | (1) | 0 | (1) | 0 |
Total other comprehensive (loss) income | (1) | 0 | (1) | 0 |
Comprehensive (loss) income, after preferred dividends of subsidiary | (71) | (35) | (129) | (40) |
San Diego Gas and Electric Company [Member] | Net-of-tax amount [Member] | ||||
Net income | 193 | 143 | 455 | 319 |
Other comprehensive income (loss): | ||||
Financial instruments | 0 | |||
Pension and other postretirement benefits | 4 | 1 | 4 | 1 |
Total other comprehensive (loss) income | 4 | 1 | 4 | 1 |
Comprehensive (loss) income, after preferred dividends of subsidiary | 197 | 144 | 459 | 320 |
San Diego Gas and Electric Company [Member] | Noncontrolling Interests (after-tax) [Member] | ||||
Net income | 0 | 3 | 0 | 4 |
Other comprehensive income (loss): | ||||
Financial instruments | 1 | |||
Pension and other postretirement benefits | 0 | 0 | 0 | 0 |
Total other comprehensive (loss) income | 0 | 0 | 0 | 1 |
Comprehensive (loss) income, after preferred dividends of subsidiary | 0 | 3 | 0 | 5 |
San Diego Gas and Electric Company [Member] | Total [Member] | ||||
Net income | 193 | 146 | 455 | 323 |
Other comprehensive income (loss): | ||||
Financial instruments | 1 | |||
Pension and other postretirement benefits | 4 | 1 | 4 | 1 |
Total other comprehensive (loss) income | 4 | 1 | 4 | 2 |
Comprehensive (loss) income, after preferred dividends of subsidiary | 197 | 147 | 459 | 325 |
Southern California Gas Company [Member] | ||||
Net income | 147 | 31 | 450 | 295 |
Other comprehensive income (loss): | ||||
Total other comprehensive (loss) income | 1 | 4 | 1 | 4 |
Southern California Gas Company [Member] | Pretax amount [Member] | ||||
Net income | 196 | 27 | 551 | 310 |
Other comprehensive income (loss): | ||||
Pension and other postretirement benefits | 1 | 6 | 1 | 6 |
Total other comprehensive (loss) income | 1 | 6 | 1 | 6 |
Comprehensive (loss) income, after preferred dividends of subsidiary | 197 | 33 | 552 | 316 |
Southern California Gas Company [Member] | Income tax (expense) benefit [Member] | ||||
Net income | (49) | 4 | (101) | (15) |
Other comprehensive income (loss): | ||||
Pension and other postretirement benefits | 0 | (2) | 0 | (2) |
Total other comprehensive (loss) income | 0 | (2) | 0 | (2) |
Comprehensive (loss) income, after preferred dividends of subsidiary | (49) | 2 | (101) | (17) |
Southern California Gas Company [Member] | Net-of-tax amount [Member] | ||||
Net income | 147 | 31 | 450 | 295 |
Other comprehensive income (loss): | ||||
Pension and other postretirement benefits | 1 | 4 | 1 | 4 |
Total other comprehensive (loss) income | 1 | 4 | 1 | 4 |
Comprehensive (loss) income, after preferred dividends of subsidiary | $ 148 | $ 35 | $ 451 | $ 299 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 | |
Current assets: | |||
Cash and cash equivalents | $ 4,894 | $ 108 | [1] |
Restricted cash | 33 | 31 | [1] |
Accounts receivable – trade, net | 1,022 | 1,261 | [1] |
Accounts receivable – other, net | 406 | 455 | [1] |
Due from unconsolidated affiliates | 91 | 32 | [1] |
Income taxes receivable | 121 | 112 | [1] |
Inventories | 267 | 277 | [1] |
Regulatory assets | 303 | 222 | [1] |
Greenhouse gas allowances | 80 | 72 | [1] |
Assets held for sale in discontinued operations | 0 | 445 | [1] |
Other current assets | 423 | 324 | [1] |
Total current assets | 7,640 | 3,339 | [1] |
Other assets: | |||
Restricted cash | 3 | 3 | [1] |
Due from unconsolidated affiliates | 603 | 742 | [1] |
Regulatory assets | 1,973 | 1,930 | [1] |
Nuclear decommissioning trusts | 1,062 | 1,082 | [1] |
Investment in Oncor Holdings | 11,758 | 11,519 | [1] |
Other investments | 2,197 | 2,103 | [1] |
Goodwill | 1,602 | 1,602 | [1] |
Other intangible assets | 208 | 213 | [1] |
Dedicated assets in support of certain benefit plans | 463 | 488 | [1] |
Insurance receivable for Aliso Canyon costs | 505 | 339 | [1] |
Deferred income taxes | 224 | 155 | [1] |
Greenhouse gas allowances | 552 | 470 | [1] |
Right-of-use assets – operating leases | 578 | 591 | [1] |
Wildfire fund | 378 | 392 | [1] |
Assets held for sale in discontinued operations | 0 | 3,513 | [1] |
Other long-term assets | 694 | 732 | [1] |
Total other assets | 22,800 | 25,874 | [1] |
Property, plant and equipment: | |||
Property, plant and equipment | 51,346 | 49,329 | [1] |
Less accumulated depreciation and amortization | (13,401) | (12,877) | [1] |
Property, plant and equipment, net | 37,945 | 36,452 | [1] |
Total assets | 68,385 | 65,665 | [1] |
Current liabilities: | |||
Short-term debt | 3,143 | 3,505 | [1] |
Accounts payable – trade | 1,302 | 1,234 | [1] |
Accounts payable – other | 145 | 179 | [1] |
Due to unconsolidated affiliates | 9 | 5 | [1] |
Dividends and interest payable | 539 | 515 | [1] |
Accrued compensation and benefits | 350 | 476 | [1] |
Regulatory liabilities | 569 | 319 | [1] |
Current portion of long-term debt and finance leases | 2,285 | 1,526 | [1] |
Reserve for Aliso Canyon costs | 256 | 9 | [1] |
Greenhouse gas obligations | 80 | 72 | [1] |
Liabilities held for sale in discontinued operations | 0 | 444 | [1] |
Other current liabilities | 917 | 866 | [1] |
Total current liabilities | 9,595 | 9,150 | [1] |
Long-term debt and finance leases | 20,535 | 20,785 | [1] |
Deferred credits and other liabilities: | |||
Due to unconsolidated affiliates | 267 | 195 | [1] |
Pension and other postretirement benefit plan obligations, net of plan assets | 1,068 | 1,067 | [1] |
Deferred income taxes | 2,574 | 2,577 | [1] |
Deferred investment tax credits | 20 | 21 | [1] |
Regulatory liabilities | 3,432 | 3,741 | [1] |
Asset retirement obligations | 2,950 | 2,923 | [1] |
Greenhouse gas obligations | 402 | 301 | [1] |
Liabilities held for sale in discontinued operations | 0 | 1,052 | [1] |
Deferred credits and other | 2,156 | 2,048 | [1] |
Total deferred credits and other liabilities | 12,869 | 13,925 | [1] |
Commitments and contingencies (Note 11) | [1] | ||
Equity: | |||
Common stock | 7,490 | 7,480 | [1] |
Retained earnings | 13,511 | 11,130 | [1] |
Accumulated other comprehensive income (loss) | (542) | (939) | [1] |
Total shareholders’ equity | 23,606 | 19,929 | [1] |
Preferred stock of subsidiary | 20 | 20 | [1] |
Other noncontrolling interests | 1,760 | 1,856 | [1] |
Total equity | 25,386 | 21,805 | [1] |
Total liabilities and equity | 68,385 | 65,665 | [1] |
San Diego Gas and Electric Company [Member] | |||
Current assets: | |||
Cash and cash equivalents | 192 | 10 | [1] |
Accounts receivable – trade, net | 418 | 398 | [1] |
Accounts receivable – other, net | 122 | 119 | [1] |
Income taxes receivable | 29 | 128 | [1] |
Inventories | 101 | 94 | [1] |
Prepaid expenses | 223 | 120 | [1] |
Regulatory assets | 289 | 209 | [1] |
Fixed-price contracts and other derivatives | 29 | 43 | [1] |
Greenhouse gas allowances | 13 | 13 | [1] |
Other current assets | 22 | 24 | [1] |
Total current assets | 1,438 | 1,158 | [1] |
Other assets: | |||
Regulatory assets | 447 | 440 | [1] |
Nuclear decommissioning trusts | 1,062 | 1,082 | [1] |
Greenhouse gas allowances | 191 | 189 | [1] |
Right-of-use assets – operating leases | 116 | 130 | [1] |
Wildfire fund | 378 | 392 | [1] |
Other long-term assets | 191 | 202 | [1] |
Total other assets | 2,385 | 2,435 | [1] |
Property, plant and equipment: | |||
Property, plant and equipment | 23,296 | 22,504 | [1] |
Less accumulated depreciation and amortization | (5,786) | (5,537) | [1] |
Property, plant and equipment, net | 17,510 | 16,967 | [1] |
Total assets | 21,333 | 20,560 | [1] |
Current liabilities: | |||
Short-term debt | 0 | 80 | [1] |
Accounts payable | 489 | 496 | [1] |
Due to unconsolidated affiliates | 173 | 53 | [1] |
Interest payable | 46 | 43 | [1] |
Accrued compensation and benefits | 89 | 138 | [1] |
Accrued franchise fees | 37 | 53 | [1] |
Regulatory liabilities | 69 | 76 | [1] |
Current portion of long-term debt and finance leases | 259 | 56 | [1] |
Customer deposits | 70 | 74 | [1] |
Greenhouse gas obligations | 13 | 13 | [1] |
Asset retirement obligations | 105 | 95 | [1] |
Other current liabilities | 151 | 133 | [1] |
Total current liabilities | 1,501 | 1,310 | [1] |
Long-term debt and finance leases | 6,691 | 6,306 | [1] |
Deferred credits and other liabilities: | |||
Pension and other postretirement benefit plan obligations, net of plan assets | 142 | 153 | [1] |
Deferred income taxes | 1,932 | 1,848 | [1] |
Deferred investment tax credits | 14 | 14 | [1] |
Regulatory liabilities | 2,209 | 2,319 | [1] |
Asset retirement obligations | 749 | 771 | [1] |
Greenhouse gas obligations | 82 | 62 | [1] |
Deferred credits and other | 654 | 677 | [1] |
Total deferred credits and other liabilities | 5,782 | 5,844 | [1] |
Commitments and contingencies (Note 11) | [1] | ||
Equity: | |||
Preferred stock | 0 | 0 | [1] |
Common stock | 1,660 | 1,660 | [1] |
Retained earnings | 5,711 | 5,456 | [1] |
Accumulated other comprehensive income (loss) | (12) | (16) | [1] |
Total shareholders’ equity | 7,359 | 7,100 | [1] |
Total equity | 7,359 | 7,100 | |
Total liabilities and equity | 21,333 | 20,560 | [1] |
Southern California Gas Company [Member] | |||
Current assets: | |||
Cash and cash equivalents | 330 | 10 | [1] |
Accounts receivable – trade, net | 460 | 710 | [1] |
Accounts receivable – other, net | 65 | 87 | [1] |
Due from unconsolidated affiliates | 1 | 11 | [1] |
Income taxes receivable | 45 | 161 | [1] |
Inventories | 118 | 136 | [1] |
Regulatory assets | 12 | 7 | [1] |
Greenhouse gas allowances | 60 | 52 | [1] |
Other current assets | 68 | 44 | [1] |
Total current assets | 1,159 | 1,218 | [1] |
Other assets: | |||
Regulatory assets | 1,443 | 1,407 | [1] |
Insurance receivable for Aliso Canyon costs | 505 | 339 | [1] |
Greenhouse gas allowances | 321 | 248 | [1] |
Right-of-use assets – operating leases | 86 | 94 | [1] |
Other long-term assets | 457 | 447 | [1] |
Total other assets | 2,812 | 2,535 | [1] |
Property, plant and equipment: | |||
Property, plant and equipment | 20,170 | 19,362 | [1] |
Less accumulated depreciation and amortization | (6,242) | (6,038) | [1] |
Property, plant and equipment, net | 13,928 | 13,324 | [1] |
Total assets | 17,899 | 17,077 | [1] |
Current liabilities: | |||
Short-term debt | 0 | 630 | [1] |
Accounts payable – trade | 380 | 545 | [1] |
Accounts payable – other | 102 | 110 | [1] |
Due to unconsolidated affiliates | 135 | 47 | [1] |
Accrued compensation and benefits | 156 | 182 | [1] |
Regulatory liabilities | 500 | 243 | [1] |
Current portion of long-term debt and finance leases | 11 | 6 | [1] |
Customer deposits | 71 | 71 | [1] |
Reserve for Aliso Canyon costs | 256 | 9 | [1] |
Greenhouse gas obligations | 60 | 52 | [1] |
Asset retirement obligations | 63 | 65 | [1] |
Other current liabilities | 209 | 222 | [1] |
Total current liabilities | 1,943 | 2,182 | [1] |
Long-term debt and finance leases | 4,458 | 3,788 | [1] |
Deferred credits and other liabilities: | |||
Pension and other postretirement benefit plan obligations, net of plan assets | 781 | 785 | [1] |
Deferred income taxes | 1,467 | 1,403 | [1] |
Deferred investment tax credits | 6 | 7 | [1] |
Regulatory liabilities | 1,223 | 1,422 | [1] |
Asset retirement obligations | 2,160 | 2,112 | [1] |
Greenhouse gas obligations | 282 | 208 | [1] |
Deferred credits and other | 431 | 422 | [1] |
Total deferred credits and other liabilities | 6,350 | 6,359 | [1] |
Commitments and contingencies (Note 11) | [1] | ||
Equity: | |||
Preferred stock | 22 | 22 | [1] |
Common stock | 866 | 866 | [1] |
Retained earnings | 4,282 | 3,883 | [1] |
Accumulated other comprehensive income (loss) | (22) | (23) | [1] |
Total shareholders’ equity | 5,148 | 4,748 | [1] |
Total equity | 5,148 | 4,748 | |
Total liabilities and equity | 17,899 | 17,077 | [1] |
Convertible Preferred Stock Series A [Member] | |||
Equity: | |||
Preferred stock | 1,693 | 1,693 | [1] |
Convertible Preferred Stock Series B [Member] | |||
Equity: | |||
Preferred stock | 565 | 565 | [1] |
Series C Preferred Stock [Member] | |||
Equity: | |||
Preferred stock | $ 889 | $ 0 | [1] |
[1] | Derived from audited financial statements. |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parentheticals) - shares | Jun. 30, 2020 | Dec. 31, 2019 |
Stockholders' Equity Attributable to Parent [Abstract] | ||
Preferred stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Common stock, shares authorized (in shares) | 750,000,000 | 750,000,000 |
Common stock, shares outstanding (in shares) | 293,000,000 | 292,000,000 |
San Diego Gas and Electric Company [Member] | ||
Stockholders' Equity Attributable to Parent [Abstract] | ||
Preferred stock, shares authorized (in shares) | 45,000,000 | 45,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, shares authorized (in shares) | 255,000,000 | 255,000,000 |
Common stock, shares outstanding (in shares) | 117,000,000 | 117,000,000 |
Southern California Gas Company [Member] | ||
Stockholders' Equity Attributable to Parent [Abstract] | ||
Preferred stock, shares authorized (in shares) | 11,000,000 | 11,000,000 |
Preferred stock, shares outstanding (in shares) | 1,000,000 | 1,000,000 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares outstanding (in shares) | 91,000,000 | 91,000,000 |
Convertible Preferred Stock Series A [Member] | ||
Stockholders' Equity Attributable to Parent [Abstract] | ||
Preferred stock, shares outstanding (in shares) | 17,250,000 | 17,250,000 |
Convertible Preferred Stock Series B [Member] | ||
Stockholders' Equity Attributable to Parent [Abstract] | ||
Preferred stock, shares outstanding (in shares) | 5,750,000 | 5,750,000 |
Series C Preferred Stock [Member] | ||
Stockholders' Equity Attributable to Parent [Abstract] | ||
Preferred stock, shares outstanding (in shares) | 900,000 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 3,252 | $ 953 |
Less: Income from discontinued operations, net of income tax | (1,857) | (36) |
Income from continuing operations, net of income tax | 1,395 | 917 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 824 | 772 |
Deferred income taxes and investment tax credits | (94) | (12) |
Gain on sale of assets | 0 | (66) |
Equity earnings | (496) | (219) |
Foreign currency transaction losses (gains), net | 110 | (11) |
Share-based compensation expense | 36 | 39 |
Other | 49 | (21) |
Intercompany activities with discontinued operations, net | 0 | 64 |
Net change in other working capital components | 375 | 84 |
Insurance receivable for Aliso Canyon costs | (166) | 80 |
Changes in other noncurrent assets and liabilities, net | 35 | (104) |
Net cash provided by continuing operations | 2,068 | 1,523 |
Net cash (used in) provided by discontinued operations | (1,041) | 181 |
Net cash provided by operating activities | 1,027 | 1,704 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Expenditures for property, plant and equipment | (2,198) | (1,651) |
Expenditures for investments and acquisitions | (140) | (1,391) |
Proceeds from sale of assets | 5 | 902 |
Purchases of nuclear decommissioning trust assets | (797) | (497) |
Proceeds from sales of nuclear decommissioning trust assets | 797 | 497 |
Advances to unconsolidated affiliates | (25) | (16) |
Repayments of advances to unconsolidated affiliates | 0 | 9 |
Intercompany activities with discontinued operations, net | 0 | (2) |
Other | 17 | 13 |
Net cash used in continuing operations | (2,341) | (2,136) |
Net cash provided by (used in) discontinued operations | 5,195 | (131) |
Net cash provided by (used in) investing activities | 2,854 | (2,267) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Common dividends paid | (567) | (483) |
Preferred dividends paid | (71) | (71) |
Issuances of preferred stock | 891 | 0 |
Issuances of common stock | 13 | 20 |
Repurchases of common stock | (64) | (18) |
Issuances of debt (maturities greater than 90 days) | 4,059 | 2,630 |
Payments on debt (maturities greater than 90 days) and finance leases | (1,970) | (871) |
Decrease in short-term debt, net | (1,871) | (444) |
Advances from unconsolidated affiliates | 64 | 0 |
Purchases of noncontrolling interests | (27) | (28) |
Other | (16) | (41) |
Net cash provided by continuing operations | 441 | 694 |
Net cash provided by (used in) discontinued operations | 401 | (83) |
Net cash provided by financing activities | 842 | 611 |
Effect of exchange rate changes in continuing operations | (7) | 0 |
Effect of exchange rate changes in discontinued operations | (3) | 0 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (10) | 0 |
Increase in cash, cash equivalents and restricted cash, including discontinued operations | 4,713 | 48 |
Cash, cash equivalents and restricted cash, including discontinued operations, January 1 | 217 | 246 |
Cash, cash equivalents and restricted cash, including discontinued operations, June 30 | 4,930 | 294 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | ||
Interest payments, net of amounts capitalized | 540 | 514 |
Income tax payments, net of refunds | 1,303 | 64 |
SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING AND FINANCING ACTIVITIES | ||
Accrued capital expenditures | 434 | 417 |
Increase in finance lease obligations for investment in property, plant and equipment | 56 | 16 |
Equitization of long-term debt for deficit held by NCI | 22 | 0 |
Common dividends issued in stock | 22 | 27 |
Preferred stock [Member] | ||
SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING AND FINANCING ACTIVITIES | ||
Dividends declared but not paid | 37 | 36 |
Common Stock [Member] | ||
SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING AND FINANCING ACTIVITIES | ||
Dividends declared but not paid | 305 | 266 |
San Diego Gas and Electric Company [Member] | ||
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | 455 | 323 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 398 | 375 |
Deferred income taxes and investment tax credits | 29 | (27) |
Other | (13) | (2) |
Net change in other working capital components | (36) | (68) |
Changes in other noncurrent assets and liabilities, net | (95) | 19 |
Net cash provided by operating activities | 738 | 620 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Expenditures for property, plant and equipment | (850) | (708) |
Purchases of nuclear decommissioning trust assets | (797) | (497) |
Proceeds from sales of nuclear decommissioning trust assets | 797 | 497 |
Other | 8 | 0 |
Net cash provided by (used in) investing activities | (842) | (708) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Common dividends paid | (200) | 0 |
Issuances of debt (maturities greater than 90 days) | 799 | 400 |
Payments on debt (maturities greater than 90 days) and finance leases | (229) | (36) |
Decrease in short-term debt, net | (80) | (273) |
Distributions to noncontrolling interest | 0 | (2) |
Debt issuance costs | (4) | (4) |
Net cash provided by financing activities | 286 | 85 |
Increase in cash, cash equivalents and restricted cash, including discontinued operations | 182 | (3) |
Cash, cash equivalents and restricted cash, including discontinued operations, January 1 | 10 | 37 |
Cash, cash equivalents and restricted cash, including discontinued operations, June 30 | 192 | 34 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | ||
Interest payments, net of amounts capitalized | 198 | 201 |
Income tax payments, net of refunds | 0 | 106 |
SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING AND FINANCING ACTIVITIES | ||
Accrued capital expenditures | 136 | 110 |
Increase in finance lease obligations for investment in property, plant and equipment | 20 | 7 |
Southern California Gas Company [Member] | ||
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | 450 | 295 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 321 | 295 |
Deferred income taxes and investment tax credits | (17) | (75) |
Other | 14 | 13 |
Net change in other working capital components | 713 | 217 |
Insurance receivable for Aliso Canyon costs | (166) | 80 |
Changes in other noncurrent assets and liabilities, net | (117) | (151) |
Net cash provided by operating activities | 1,198 | 674 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Expenditures for property, plant and equipment | (885) | (659) |
Increase in loans to affiliate, net | 0 | (94) |
Other | 0 | 2 |
Net cash provided by (used in) investing activities | (885) | (751) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Preferred dividends paid | (1) | (1) |
Issuances of debt (maturities greater than 90 days) | 649 | 349 |
Decrease in short-term debt, net | (630) | (256) |
Payments on finance leases | (5) | (2) |
Debt issuance costs | (6) | (3) |
Net cash provided by financing activities | 7 | 87 |
Increase in cash, cash equivalents and restricted cash, including discontinued operations | 320 | 10 |
Cash, cash equivalents and restricted cash, including discontinued operations, January 1 | 10 | 18 |
Cash, cash equivalents and restricted cash, including discontinued operations, June 30 | 330 | 28 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | ||
Interest payments, net of amounts capitalized | 70 | 60 |
Income tax payments, net of refunds | 0 | 87 |
SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING AND FINANCING ACTIVITIES | ||
Accrued capital expenditures | 158 | 178 |
Increase in finance lease obligations for investment in property, plant and equipment | 36 | 9 |
Dividends declared but not paid | $ 50 | $ 0 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Millions | Total | Series A Preferred Stock [Member] | Series B Preferred Stock [Member] | Series C Preferred Stock [Member] | Preferred stock [Member] | Common Stock [Member] | Retained earnings [Member] | Retained earnings [Member]Series A Preferred Stock [Member] | Retained earnings [Member]Series B Preferred Stock [Member] | Retained earnings [Member]Series C Preferred Stock [Member] | Accumulated other comprehensive income (loss) [Member] | Shareholders' equity [Member] | Shareholders' equity [Member]Series A Preferred Stock [Member] | Shareholders' equity [Member]Series B Preferred Stock [Member] | Shareholders' equity [Member]Series C Preferred Stock [Member] | Noncontrolling Interest [Member] | San Diego Gas and Electric Company [Member] | San Diego Gas and Electric Company [Member]Common Stock [Member] | San Diego Gas and Electric Company [Member]Retained earnings [Member] | San Diego Gas and Electric Company [Member]Accumulated other comprehensive income (loss) [Member] | San Diego Gas and Electric Company [Member]Shareholders' equity [Member] | San Diego Gas and Electric Company [Member]Noncontrolling Interest [Member] | Southern California Gas Company [Member] | Southern California Gas Company [Member]Preferred stock [Member] | Southern California Gas Company [Member]Common Stock [Member] | Southern California Gas Company [Member]Retained earnings [Member] | Southern California Gas Company [Member]Accumulated other comprehensive income (loss) [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]Retained earnings [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]Accumulated other comprehensive income (loss) [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]Shareholders' equity [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]Noncontrolling Interest [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]San Diego Gas and Electric Company [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]San Diego Gas and Electric Company [Member]Retained earnings [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]San Diego Gas and Electric Company [Member]Accumulated other comprehensive income (loss) [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]Southern California Gas Company [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]Southern California Gas Company [Member]Retained earnings [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]Southern California Gas Company [Member]Accumulated other comprehensive income (loss) [Member] | Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | Cumulative Effect, Period of Adoption, Adjusted Balance [Member]Preferred stock [Member] | Cumulative Effect, Period of Adoption, Adjusted Balance [Member]Common Stock [Member] | Cumulative Effect, Period of Adoption, Adjusted Balance [Member]Retained earnings [Member] | Cumulative Effect, Period of Adoption, Adjusted Balance [Member]Accumulated other comprehensive income (loss) [Member] | Cumulative Effect, Period of Adoption, Adjusted Balance [Member]Shareholders' equity [Member] | Cumulative Effect, Period of Adoption, Adjusted Balance [Member]Noncontrolling Interest [Member] | Cumulative Effect, Period of Adoption, Adjusted Balance [Member]San Diego Gas and Electric Company [Member] | Cumulative Effect, Period of Adoption, Adjusted Balance [Member]San Diego Gas and Electric Company [Member]Common Stock [Member] | Cumulative Effect, Period of Adoption, Adjusted Balance [Member]San Diego Gas and Electric Company [Member]Retained earnings [Member] | Cumulative Effect, Period of Adoption, Adjusted Balance [Member]San Diego Gas and Electric Company [Member]Accumulated other comprehensive income (loss) [Member] | Cumulative Effect, Period of Adoption, Adjusted Balance [Member]San Diego Gas and Electric Company [Member]Shareholders' equity [Member] | Cumulative Effect, Period of Adoption, Adjusted Balance [Member]San Diego Gas and Electric Company [Member]Noncontrolling Interest [Member] | Cumulative Effect, Period of Adoption, Adjusted Balance [Member]Southern California Gas Company [Member] | Cumulative Effect, Period of Adoption, Adjusted Balance [Member]Southern California Gas Company [Member]Preferred stock [Member] | Cumulative Effect, Period of Adoption, Adjusted Balance [Member]Southern California Gas Company [Member]Common Stock [Member] | Cumulative Effect, Period of Adoption, Adjusted Balance [Member]Southern California Gas Company [Member]Retained earnings [Member] | Cumulative Effect, Period of Adoption, Adjusted Balance [Member]Southern California Gas Company [Member]Accumulated other comprehensive income (loss) [Member] | |
Beginning Balance at Dec. 31, 2018 | $ 19,248 | $ 2,258 | $ 5,540 | $ 10,104 | $ (764) | $ 17,138 | $ 2,110 | $ 6,115 | $ 1,338 | $ 4,687 | $ (10) | $ 6,015 | $ 100 | $ 4,258 | $ 22 | $ 866 | $ 3,390 | $ (20) | $ 0 | $ 2 | $ (2) | $ (2) | $ 2 | $ (4) | $ 19,263 | $ 2,258 | $ 5,540 | $ 10,161 | $ (806) | $ 17,153 | $ 2,110 | $ 6,115 | $ 1,338 | $ 4,689 | $ (12) | $ 6,015 | $ 100 | $ 4,256 | $ 22 | $ 866 | $ 3,392 | $ (24) | |||||||||||||||
Beginning Balance (Accounting Standards Update 2016-02 [Member]) at Dec. 31, 2018 | $ 17 | $ 17 | $ 17 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Beginning Balance (Accounting Standards Update 2018-02 [Member]) at Dec. 31, 2018 | (2) | 40 | $ (42) | (2) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | 953 | 867 | 867 | 86 | 323 | 319 | 319 | 4 | 295 | 295 | |||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive (loss) income | (48) | (42) | (42) | (6) | 2 | 1 | 1 | 1 | 4 | 4 | |||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation expense | 39 | 39 | 39 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred dividends | $ (52) | $ (19) | $ (52) | $ (19) | $ (52) | $ (19) | (1) | (1) | |||||||||||||||||||||||||||||||||||||||||||||||||
Common stock dividends declared | (531) | (531) | (531) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred dividends of subsidiary | (1) | (1) | (1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuances of stock | 47 | 47 | 47 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchases of common stock | (18) | (18) | (18) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling interest activities: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Distributions | (12) | (12) | (2) | (2) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchases | (28) | (3) | (3) | (25) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Deconsolidation | (159) | (159) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ending balance at Jun. 30, 2019 | 19,434 | 2,258 | 5,605 | 10,425 | (848) | 17,440 | 1,994 | 6,438 | 1,338 | 5,008 | (11) | 6,335 | 103 | 4,554 | 22 | 866 | 3,686 | (20) | |||||||||||||||||||||||||||||||||||||||
Beginning Balance at Mar. 31, 2019 | 19,470 | 2,258 | 5,568 | 10,337 | (817) | 17,346 | 2,124 | 6,293 | 1,338 | 4,865 | (12) | 6,191 | 102 | 4,520 | 22 | 866 | 3,656 | (24) | |||||||||||||||||||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | 435 | 390 | 390 | 45 | 146 | 143 | 143 | 3 | 31 | 31 | |||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive (loss) income | (37) | (31) | (31) | (6) | 1 | 1 | 1 | 4 | 4 | ||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation expense | 18 | 18 | 18 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred dividends | (26) | (9) | (26) | (9) | (26) | (9) | (1) | (1) | |||||||||||||||||||||||||||||||||||||||||||||||||
Common stock dividends declared | (266) | (266) | (266) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred dividends of subsidiary | (1) | (1) | (1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuances of stock | 23 | 23 | 23 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchases of common stock | (4) | (4) | (4) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling interest activities: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Distributions | (8) | (8) | (2) | (2) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchases | (2) | (2) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deconsolidation | (159) | (159) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ending balance at Jun. 30, 2019 | 19,434 | 2,258 | 5,605 | 10,425 | (848) | 17,440 | 1,994 | 6,438 | 1,338 | 5,008 | (11) | 6,335 | 103 | 4,554 | 22 | 866 | 3,686 | (20) | |||||||||||||||||||||||||||||||||||||||
Beginning Balance at Dec. 31, 2019 | 21,805 | [1] | 2,258 | 7,480 | 11,130 | (939) | 19,929 | 1,876 | 7,100 | 1,660 | 5,456 | (16) | 7,100 | 0 | 4,748 | 22 | 866 | 3,883 | (23) | (9) | (7) | (7) | $ (2) | 21,796 | 2,258 | 7,480 | 11,123 | (939) | 19,922 | 1,874 | |||||||||||||||||||||||||||
Ending balance at Mar. 31, 2020 | 22,115 | 2,258 | 7,472 | 11,577 | (1,190) | 20,117 | 1,998 | 7,162 | 1,660 | 5,518 | (16) | 7,162 | 0 | 5,051 | 22 | 866 | 4,186 | (23) | |||||||||||||||||||||||||||||||||||||||
Beginning Balance at Dec. 31, 2019 | 21,805 | [1] | 2,258 | 7,480 | 11,130 | (939) | 19,929 | 1,876 | 7,100 | 1,660 | 5,456 | (16) | 7,100 | 0 | 4,748 | 22 | 866 | 3,883 | (23) | $ (9) | $ (7) | $ (7) | $ (2) | $ 21,796 | $ 2,258 | $ 7,480 | $ 11,123 | $ (939) | $ 19,922 | $ 1,874 | |||||||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | 3,252 | 3,073 | 3,073 | 179 | 455 | 455 | 455 | 450 | 450 | ||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive (loss) income | 368 | 397 | 397 | (29) | 4 | 4 | 4 | 1 | 1 | ||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation expense | 36 | 36 | 36 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred dividends | (52) | (19) | $ (2) | (52) | (19) | $ (2) | (52) | (19) | $ (2) | (1) | (1) | ||||||||||||||||||||||||||||||||||||||||||||||
Common stock dividends declared | (611) | (611) | (611) | (200) | (200) | (200) | (50) | (50) | |||||||||||||||||||||||||||||||||||||||||||||||||
Preferred dividends of subsidiary | (1) | (1) | (1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of series C preferred stock | 889 | 889 | 889 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuances of stock | 35 | 35 | 35 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchases of common stock | (64) | (64) | (64) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling interest activities: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Distributions | (1) | (1) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchases | (27) | 3 | 3 | (30) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Deconsolidation | (236) | (236) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition | 1 | 1 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equitization of long-term debt for deficit held by NCI | 22 | 22 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ending balance at Jun. 30, 2020 | 25,386 | 3,147 | 7,490 | 13,511 | (542) | 23,606 | 1,780 | 7,359 | 1,660 | 5,711 | (12) | 7,359 | 0 | 5,148 | 22 | 866 | 4,282 | (22) | |||||||||||||||||||||||||||||||||||||||
Beginning Balance at Mar. 31, 2020 | 22,115 | 2,258 | 7,472 | 11,577 | (1,190) | 20,117 | 1,998 | 7,162 | 1,660 | 5,518 | (16) | 7,162 | 0 | 5,051 | 22 | 866 | 4,186 | (23) | |||||||||||||||||||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | 2,305 | 2,277 | 2,277 | 28 | 193 | 193 | 193 | 147 | 147 | ||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive (loss) income | 651 | 648 | 648 | 3 | 4 | 4 | 4 | 1 | 1 | ||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation expense | 14 | 14 | 14 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred dividends | $ (26) | $ (9) | $ (2) | $ (26) | $ (9) | $ (2) | $ (26) | $ (9) | $ (2) | (1) | (1) | ||||||||||||||||||||||||||||||||||||||||||||||
Common stock dividends declared | (305) | (305) | (305) | (50) | (50) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred dividends of subsidiary | (1) | (1) | (1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of series C preferred stock | 889 | 889 | 889 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuances of stock | 10 | 10 | 10 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchases of common stock | (7) | (7) | (7) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling interest activities: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Distributions | (1) | (1) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchases | (11) | 1 | 1 | (12) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Deconsolidation | (236) | (236) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ending balance at Jun. 30, 2020 | $ 25,386 | $ 3,147 | $ 7,490 | $ 13,511 | $ (542) | $ 23,606 | $ 1,780 | $ 7,359 | $ 1,660 | $ 5,711 | $ (12) | $ 7,359 | $ 0 | $ 5,148 | $ 22 | $ 866 | $ 4,282 | $ (22) | |||||||||||||||||||||||||||||||||||||||
[1] | Derived from audited financial statements. |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2018 | |
Dividends declared per share of common stock (in dollars per share) | $ 1.04 | $ 0.97 | $ 2.09 | $ 1.94 | |
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201613Member | ||||
San Diego Gas and Electric Company [Member] | |||||
Dividends declared per share of common stock (in dollars per share) | $ 1.72 | ||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201802Member | ||||
Southern California Gas Company [Member] | |||||
Dividends declared per share of preferred stock (in dollars per share) | 0.37 | 0.37 | 0.75 | 0.75 | |
Dividends declared per share of common stock (in dollars per share) | 0.55 | 0.55 | |||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201802 | ||||
Series A Preferred Stock [Member] | |||||
Dividends declared per share of preferred stock (in dollars per share) | 1.50 | 1.50 | 3 | 3 | |
Series B Preferred Stock [Member] | |||||
Dividends declared per share of preferred stock (in dollars per share) | 1.69 | $ 1.69 | 3.38 | $ 3.38 | |
Series C Preferred Stock [Member] | |||||
Dividends declared per share of preferred stock (in dollars per share) | $ 1.63 | $ 1.63 |
GENERAL INFORMATION AND OTHER F
GENERAL INFORMATION AND OTHER FINANCIAL DATA | 6 Months Ended |
Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
GENERAL INFORMATION AND OTHER FINANCIAL DATA | GENERAL INFORMATION AND OTHER FINANCIAL DATA PRINCIPLES OF CONSOLIDATION Sempra Energy Sempra Energy’s Condensed Consolidated Financial Statements include the accounts of Sempra Energy, a California-based energy-services holding company, and its consolidated subsidiaries and VIEs. Sempra Global is the holding company for most of our subsidiaries that are not subject to California or Texas utility regulation. Sempra Energy’s businesses were managed within six separate reportable segments until April 2019 and five separate reportable segments thereafter, which we discuss in Note 12. All references in these Notes to our reportable segments are not intended to refer to any legal entity with the same or similar name. SDG&E SDG&E’s Condensed Consolidated Financial Statements include its accounts and the accounts of a VIE of which SDG&E was the primary beneficiary until August 23, 2019, at which time SDG&E deconsolidated the VIE. SDG&E’s common stock is wholly owned by Enova Corporation, which is a wholly owned subsidiary of Sempra Energy. SoCalGas SoCalGas’ common stock is wholly owned by Pacific Enterprises, which is a wholly owned subsidiary of Sempra Energy. In this report, we refer to SDG&E and SoCalGas collectively as the California Utilities. 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,” “us,” “our” and “Sempra Energy Consolidated” are to Sempra Energy and its consolidated entities, unless otherwise indicated by the context. We have eliminated intercompany accounts and transactions within the consolidated financial statements of each reporting entity. Throughout this report, we refer to the following as Condensed Consolidated Financial Statements and Notes to Condensed Consolidated Financial Statements when discussed together or collectively: ▪ the Condensed Consolidated Financial Statements and related Notes of Sempra Energy and its subsidiaries and VIEs; ▪ the Condensed Consolidated Financial Statements and related Notes of SDG&E and its VIE (until deconsolidation of Otay Mesa VIE in August 2019); and ▪ the Condensed Financial Statements and related Notes of SoCalGas. We have prepared the Condensed Consolidated Financial Statements in conformity with U.S. GAAP and in accordance with the interim-period-reporting requirements of Form 10-Q. Results of operations for interim periods are not necessarily indicative of results for the entire year or for any other period. We evaluated events and transactions that occurred after June 30, 2020 through the date the financial statements were issued and, in the opinion of management, the accompanying statements reflect all adjustments necessary for a fair presentation. These adjustments are only of a normal, recurring nature. All December 31, 2019 balance sheet information in the Condensed Consolidated Financial Statements has been derived from our audited 2019 Consolidated Financial Statements in the Annual Report. Certain information and note disclosures normally included in annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to the interim-period-reporting provisions of U.S. GAAP and the SEC. We describe our significant accounting policies in Note 1 of the Notes to Consolidated Financial Statements in the Annual Report and the impact of the adoption of new accounting standards on those policies in Note 2 below. We follow the same accounting policies for interim period reporting purposes. You should read the information in this report in conjunction with the Annual Report. Discontinued Operations In January 2019, our board of directors approved a plan to sell our South American businesses based on our strategic focus on North America. We determined that these businesses, which previously constituted the Sempra South American Utilities segment, and certain activities associated with these businesses, met the held-for-sale criteria. These businesses are presented as discontinued operations, which we discuss further in Note 5, as the sales represent a strategic shift that will have a major effect on our operations and financial results. We completed the sales in the second quarter of 2020. Our discussions in the Notes below relate only to our continuing operations unless otherwise noted. Regulated Operations The California Utilities and Sempra Mexico’s natural gas distribution utility, Ecogas, prepare their financial statements in accordance with the provisions of U.S. GAAP governing rate-regulated operations. We discuss the effects of regulation and revenue recognition at our utilities in Notes 1 and 3 of the Notes to Consolidated Financial Statements in the Annual Report. Our Sempra Texas Utilities segment is comprised of our equity method investments in holding companies that own interests in regulated electric transmission and distribution utilities in Texas. Our Sempra Mexico segment includes the operating companies of our subsidiary, IEnova, as well as certain holding companies and risk management activity. Certain business activities at IEnova are regulated by the CRE and meet the regulatory accounting requirements of U.S. GAAP. Pipeline projects under construction at IEnova that meet the regulatory accounting requirements of U.S. GAAP record the impact of AFUDC related to equity. We discuss AFUDC below and in Note 1 of the Notes to Consolidated Financial Statements in the Annual Report. CASH, CASH EQUIVALENTS AND RESTRICTED CASH The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported on Sempra Energy’s Condensed Consolidated Balance Sheets to the sum of such amounts reported on Sempra Energy’s Condensed Consolidated Statements of Cash Flows. We provide information about the nature of restricted cash in Note 1 of the Notes to Consolidated Financial Statements in the Annual Report. RECONCILIATION OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH (Dollars in millions) June 30, December 31, 2020 2019 Sempra Energy Consolidated: Cash and cash equivalents $ 4,894 $ 108 Restricted cash, current 33 31 Restricted cash, noncurrent 3 3 Cash, cash equivalents and restricted cash in discontinued operations — 75 Total cash, cash equivalents and restricted cash on the Condensed Consolidated Statements of Cash Flows $ 4,930 $ 217 In the Sempra Energy Condensed Consolidated Statement of Cash Flows for the six months ended June 30, 2020, the ending cash, cash equivalents and restricted cash balance in discontinued operations of $4.6 billion CREDIT LOSSES We are exposed to credit losses from financial assets measured at amortized cost, including trade and other accounts receivable and amounts due from unconsolidated affiliates. We are also exposed to credit losses from off-balance sheet arrangements through our guarantees of Cameron LNG JV’s debt. We regularly monitor and evaluate credit losses and record allowances for expected credit losses, if necessary, for trade and other accounts receivable using a combination of factors, including past-due status based on contractual terms, trends in write-offs, the age of the receivable, historical and industry trends, counterparty creditworthiness, economic conditions and specific events, such as bankruptcies. We write off financial assets measured at amortized cost in the period in which we deem they are not recoverable. We record recoveries of amounts previously written off when it is known that they will be recovered. In connection with the COVID-19 pandemic, the California Utilities have implemented certain measures to assist customers, including suspending service disconnections due to nonpayment for residential and small business customers, waiving late payment fees for business customers, and offering flexible payment plans for customers experiencing difficulty paying their electric or gas bills. As we discuss in Note 4, the CPUC authorized each of the California Utilities to establish a CPPMA to track and request recovery of incremental costs, including uncollectible expenses, associated with complying with residential and small business customer relief measures implemented by the CPUC related to the COVID-19 pandemic. As of June 30, 2020, the California Utilities have evaluated the impact of the COVID-19 pandemic, including the measures described above, on their respective allowances for credit losses for customer receivables. Our businesses will continue to monitor macroeconomic factors and customer payment patterns when evaluating their allowances for credit losses in future reporting periods, which may increase materially due to the effects of the COVID-19 pandemic or other factors. We provide below allowances and changes in allowances for credit losses for trade and other accounts receivable, excluding allowances related to amounts due from unconsolidated affiliates and off-balance sheet arrangements, which we discuss separately below the table. TRADE AND OTHER ACCOUNTS RECEIVABLE – ALLOWANCES FOR CREDIT LOSSES (Dollars in millions) Sempra Energy Consolidated (1) SDG&E (2) SoCalGas (3) Allowances for credit losses at December 31, 2019 $ 29 $ 14 $ 15 Incremental allowance upon adoption of ASU 2016-13 1 — — Provisions for expected credit losses 21 9 12 Write-offs (7 ) (4 ) (3 ) Allowances for credit losses at June 30, 2020 $ 44 $ 19 $ 24 (1) Balance at June 30, 2020 includes $19 million and $25 million in Accounts Receivable – Trade, Net and Accounts Receivable – Other, Net, respectively. (2) Balance at June 30, 2020 includes $7 million and $12 million in Accounts Receivable – Trade, Net and Accounts Receivable – Other, Net, respectively. (3) Balance at June 30, 2020 includes $11 million and $13 million in Accounts Receivable – Trade, Net and Accounts Receivable – Other, Net, respectively. For amounts due from unconsolidated affiliates and off-balance sheet arrangements, on a quarterly basis, we evaluate credit losses and record allowances for expected credit losses, if necessary, based on credit quality indicators such as external credit ratings, published default rate studies, the maturity date of the instrument and past delinquencies. However, we do not record allowances for expected credit losses related to accrued interest receivable on loans due from unconsolidated affiliates because we write off such amounts, if any, through a reversal of interest income in the period we determine such amounts are uncollectible. In the absence of external credit ratings, we may utilize an internally developed credit rating based on our analysis of a counterparty’s financial statements to determine our expected credit losses. As we discuss below in “Transactions with Affiliates,” we have loans due from unconsolidated affiliates with varying tenors, interest rates and currencies. We provide below the changes in allowances for credit losses for loans and other amounts due from unconsolidated affiliates. AMOUNTS DUE FROM UNCONSOLIDATED AFFILIATES – ALLOWANCES FOR CREDIT LOSSES (Dollars in millions) Sempra Energy Consolidated (1) Allowances for credit losses at December 31, 2019 $ — Allowance established upon adoption of ASU 2016-13 6 Reduction to expected credit losses (3 ) Allowances for credit losses at June 30, 2020 $ 3 (1) Balance at June 30, 2020 includes negligible amounts and $3 million in Due from Unconsolidated Affiliates – Current and Due from Unconsolidated Affiliates – Noncurrent, respectively. As we discuss in Note 6 of the Notes to Consolidated Financial Statements in the Annual Report, Sempra LNG has provided guarantees for a maximum aggregate amount of $4.0 billion associated with Cameron LNG JV’s debt obligations. We established a liability for credit losses of $6 million for this off-balance sheet arrangement upon adoption of ASU 2016-13 on January 1, 2020 and we subsequently reduced this liability by $2 million in the six months ended June 30, 2020 through a reduction to credit loss expense, which is included in O&M on the Sempra Energy Condensed Consolidated Statement of Operations. At June 30, 2020 , expected credit losses of $4 million are included in Other Current Liabilities on the Sempra Energy Condensed Consolidated Balance Sheet. CONCENTRATION OF CREDIT RISK Credit risk is the risk of loss that would be incurred as a result of nonperformance by our counterparties on their contractual obligations. We have policies governing the management of credit risk that are administered by the respective credit departments at each of our segments and overseen by their separate risk management committees. This oversight includes calculating current and potential credit risk on a regular basis and monitoring actual balances in comparison to approved limits. We establish credit limits based on risk and return considerations under terms customarily available in the industry. We avoid concentration of counterparties whenever possible, and we believe our credit policies significantly reduce overall credit risk. These policies include an evaluation of: ▪ prospective counterparties’ financial condition (including credit ratings) ▪ collateral requirements ▪ the use of standardized agreements that allow for the netting of positive and negative exposures associated with a single counterparty ▪ downgrade triggers We believe that we have provided adequate reserves for counterparty nonperformance. In the six months ended June 30, 2020 , four customers each represented 10% or more of Sempra Mexico’s revenues (including intercompany transactions with affiliates consolidated by Sempra Energy). Additionally, for the same period, certain of our unconsolidated equity method investees (Oncor Holdings, Cameron LNG JV and IMG JV) had customers that each represented 10% or more of their respective revenues. When our development projects become operational, we rely significantly on the ability of suppliers to perform under long-term agreements and on our ability to enforce contract terms in the event of nonperformance. Also, the factors that we consider in evaluating a development project include negotiating customer and supplier agreements and, therefore, we rely on these agreements for future performance. We also may condition our decision to go forward on development projects on first obtaining these customer and supplier agreements. INVENTORIES The components of inventories are as follows: INVENTORY BALANCES (Dollars in millions) Natural gas LNG Materials and supplies Total June December June December June December June December 30, 2020 31, 2019 30, 2020 31, 2019 30, 2020 31, 2019 30, 2020 31, 2019 Sempra Energy Consolidated $ 86 $ 110 $ 7 $ 9 $ 174 $ 158 $ 267 $ 277 SDG&E — 1 — — 101 93 101 94 SoCalGas 64 90 — — 54 46 118 136 WILDFIRE FUND On July 12, 2019, the Wildfire Legislation was signed into law to address certain issues related to catastrophic wildfires in the State of California and their impact on electric IOUs. We discuss the Wildfire Legislation further in Note 1 of the Notes to Consolidated Financial Statements in the Annual Report. In a complaint filed in U.S. District Court for the Northern District of California in July 2019, plaintiffs seek to invalidate AB 1054, which established the Wildfire Fund, based on allegations that the legislation violates federal law. The California Attorney General has moved to dismiss the complaint. In June 2020, the CPUC approved SDG&E’s 2020 wildfire mitigation plan, which will be effective until the CPUC approves a new plan. In addition, SDG&E submitted its request to the CPUC for a 2020 safety certification on June 16, 2020 and the CPUC may take up to 90 days to issue a new certificate. SDG&E’s existing safety certification remains valid until this pending request is resolved. PG&E received bankruptcy court approval to participate in the Wildfire Fund and made its initial and first annual shareholder contributions in July 2020. Wildfire Fund Asset and Obligation In the third quarter of 2019, SDG&E recorded both a Wildfire Fund asset and a related obligation of $451.5 million for its commitment to make shareholder contributions to the Wildfire Fund, measured at present value as of July 25, 2019 (the date by which both Edison and SDG&E opted to contribute to the Wildfire Fund). SDG&E is amortizing the Wildfire Fund asset on a straight-line basis over the estimated period of benefit, as adjusted for utilization by the participating IOUs. The estimated period of benefit of the Wildfire Fund asset is 15 years as of June 30, 2020. SDG&E accretes the present value of the Wildfire Fund obligation until the liability is settled. We will periodically reevaluate the estimated period of benefit of the Wildfire Fund asset based on actual experience and changes in assumptions. SDG&E may recognize a reduction of its Wildfire Fund asset and record a charge against earnings in the period when there is a reduction of the available coverage due to recoverable claims from any of the participating IOUs. The reduction to the Wildfire Fund asset may be proportionate to the Wildfire Fund’s consumption (i.e., recoveries for outstanding wildfire claims that are recoverable from the Wildfire Fund, net of anticipated or actual reimbursement to the Wildfire Fund by the responsible IOU, would decrease the Wildfire Fund asset and remaining available coverage). In the six months ended June 30, 2020, there were no such known claims from the participating IOUs requiring a reduction of the Wildfire Fund asset. The following table summarizes the location of balances related to the Wildfire Fund on Sempra Energy’s and SDG&E’s Condensed Consolidated Balance Sheets and Condensed Consolidated Statements of Operations. WILDFIRE FUND (Dollars in millions) Location June 30, 2020 December 31, 2019 Wildfire Fund asset: Current Other Current Assets (1) $ 29 $ 29 Noncurrent Wildfire Fund 378 392 Wildfire Fund obligation: Current Other Current Liabilities $ 13 $ 13 Noncurrent Deferred Credits and Other 87 86 Three months ended Six months ended June 30, 2020 June 30, 2020 Amortization of Wildfire Fund asset Operation and Maintenance $ 7 $ 14 Accretion of Wildfire Fund obligation Operation and Maintenance 1 1 (1) Included in Prepaid Expenses for SDG&E. CAPITALIZED FINANCING COSTS Capitalized financing costs include capitalized interest costs and AFUDC related to both debt and equity financing of construction projects. We capitalize interest costs incurred to finance capital projects and interest at equity method investments that have not commenced planned principal operations. The table below summarizes capitalized interest and AFUDC. CAPITALIZED FINANCING COSTS (Dollars in millions) Three months ended June 30, Six months ended June 30, 2020 2019 2020 2019 Sempra Energy Consolidated $ 50 $ 51 $ 98 $ 98 SDG&E 26 20 53 37 SoCalGas 14 11 25 22 VARIABLE INTEREST ENTITIES We consolidate a VIE if we are the primary beneficiary of the VIE. Our determination of whether we are the primary beneficiary is based on qualitative and quantitative analyses, which assess: ▪ the purpose and design of the VIE; ▪ the nature of the VIE’s risks and the risks we absorb; ▪ the power to direct activities that most significantly impact the economic performance of the VIE; and ▪ the obligation to absorb losses or the right to receive benefits that could be significant to the VIE. We will continue to evaluate our VIEs for any changes that may impact our determination of whether an entity is a VIE and if we are the primary beneficiary. SDG&E SDG&E’s power procurement is subject to reliability requirements that may require SDG&E to enter into various PPAs that include variable interests. SDG&E evaluates the respective entities to determine if variable interests exist and, based on the qualitative and quantitative analyses described above, if SDG&E, and thereby Sempra Energy, is the primary beneficiary. SDG&E has agreements under which it purchases power generated by facilities for which it supplies all of the natural gas to fuel the power plant (i.e., tolling agreements). SDG&E’s obligation to absorb natural gas costs may be a significant variable interest. In addition, SDG&E has the power to direct the dispatch of electricity generated by these facilities. Based on our analysis, the ability to direct the dispatch of electricity may have the most significant impact on the economic performance of the entity owning the generating facility because of the associated exposure to the cost of natural gas, which fuels the plants, and the value of electricity produced. To the extent that SDG&E (1) is obligated to purchase and provide fuel to operate the facility, (2) has the power to direct the dispatch, and (3) purchases all of the output from the facility for a substantial portion of the facility’s useful life, SDG&E may be the primary beneficiary of the entity owning the generating facility. SDG&E determines if it is the primary beneficiary in these cases based on a qualitative approach in which we consider the operational characteristics of the facility, including its expected power generation output relative to its capacity to generate and the financial structure of the entity, among other factors. If we determine that SDG&E is the primary beneficiary, SDG&E and Sempra Energy consolidate the entity that owns the facility as a VIE. In addition to tolling agreements, other variable interests involve various elements of fuel and power costs, and other components of cash flows expected to be paid to or received by our counterparties. In most of these cases, the expectation of variability is not substantial, and SDG&E generally does not have the power to direct activities, including the operation and maintenance activities of the generating facility, 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 could be significant to the financial position and liquidity of SDG&E and Sempra Energy. SDG&E determined that none of its contracts resulted in SDG&E being the primary beneficiary of a VIE at June 30, 2020 and December 31, 2019. The carrying amounts of the assets and liabilities that relate to SDG&E’s involvement with VIEs where SDG&E is not the primary beneficiary are included in PP&E and finance lease liabilities with balances of $1,246 million and $1,255 million at June 30, 2020 and December 31, 2019, respectively. SDG&E recovers costs incurred on PPAs, tolling agreements and other variable interests through CPUC-approved long-term power procurement plans. SDG&E has no residual interest in the respective entities and has not provided or guaranteed any debt or equity support, liquidity arrangements, performance guarantees or other commitments associated with these contracts other than the purchase commitments described in Note 16 of the Notes to Consolidated Financial Statements in the Annual Report. As a result, SDG&E’s potential exposure to loss from its variable interest in these VIEs is not significant. Sempra Texas Utilities Our 100% interest in Oncor Holdings is a VIE that owns an 80.25% interest in Oncor. Sempra Energy is not the primary beneficiary of the VIE because of the structural and operational ring-fencing and governance measures in place that prevent us from having the power to direct the significant activities of Oncor Holdings. As a result, we do not consolidate Oncor Holdings and instead account for our ownership interest as an equity method investment. See Note 6 for additional information about our equity method investment in Oncor Holdings and restrictions on our ability to influence its activities. Our maximum exposure to loss, which fluctuates over time, from our interest in Oncor Holdings does not exceed the carrying value of our investment, which was $11,758 million at June 30, 2020 and $11,519 million at December 31, 2019 . Sempra Mexico Sempra Mexico’s businesses also enter into arrangements that could include variable interests. We evaluate these arrangements and applicable entities based on the qualitative and quantitative analyses described above. Certain of these entities are service or project companies that are VIEs because the total equity at risk is not sufficient for the entities to finance their activities without additional subordinated financial support. If we are the primary beneficiary of these companies, we consolidate them. At December 31, 2019, Sempra Mexico consolidated a VIE with assets totaling approximately $126 million , which consisted primarily of PP&E and other long-term assets. Sempra LNG Cameron LNG JV is a VIE principally due to contractual provisions that transfer certain risks to customers. Sempra Energy is not the primary beneficiary of the VIE because we do not have the power to direct the most significant activities of Cameron LNG JV, and therefore, we account for our investment in Cameron LNG JV under the equity method. The carrying value of our investment, including amounts recognized in AOCI related to interest-rate cash flow hedges at Cameron LNG JV, was $1,183 million at June 30, 2020 and $1,256 million at December 31, 2019 . Our maximum exposure to loss, which fluctuates over time, includes the carrying value of our investment and guarantees that we discuss in Note 6 of the Notes to Consolidated Financial Statements in the Annual Report. PENSION AND OTHER POSTRETIREMENT BENEFITS Settlement Accounting for Lump Sum Payments Sempra Energy recorded settlement charges of $4 million and $9 million in the three months and six months ended June 30, 2020, respectively, in net periodic benefit cost for lump sum payments from its nonqualified pension plan that were in excess of the plan’s service cost plus interest cost. In June 2019, Sempra Energy recorded settlement charges of $22 million in net periodic benefit cost for lump sum payments from its nonqualified pension plan that were in excess of the plan’s service cost plus interest cost. 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 June 30, 2020 2019 2020 2019 Service cost $ 33 $ 28 $ 4 $ 4 Interest cost 33 35 8 9 Expected return on assets (43 ) (36 ) (14 ) (17 ) Amortization of: Prior service cost 3 3 — — Actuarial loss (gain) 8 7 (2 ) (3 ) Settlement charges 4 22 — — Net periodic benefit cost (credit) 38 59 (4 ) (7 ) Regulatory adjustments 22 3 4 7 Total expense recognized $ 60 $ 62 $ — $ — Six months ended June 30, 2020 2019 2020 2019 Service cost $ 66 $ 55 $ 9 $ 8 Interest cost 65 70 16 18 Expected return on assets (85 ) (72 ) (27 ) (35 ) Amortization of: Prior service cost (credit) 6 6 (1 ) — Actuarial loss (gain) 17 21 (5 ) (5 ) Settlement charges 9 22 — — Net periodic benefit cost (credit) 78 102 (8 ) (14 ) Regulatory adjustments (6 ) (33 ) 8 14 Total expense recognized $ 72 $ 69 $ — $ — NET PERIODIC BENEFIT COST – SDG&E (Dollars in millions) Pension benefits Other postretirement benefits Three months ended June 30, 2020 2019 2020 2019 Service cost $ 8 $ 7 $ 1 $ 1 Interest cost 8 8 1 2 Expected return on assets (12 ) (9 ) (2 ) (3 ) Amortization of: Prior service cost — 1 — — Actuarial loss 1 3 — — Net periodic benefit cost 5 10 — — Regulatory adjustments 9 (1 ) — — Total expense recognized $ 14 $ 9 $ — $ — Six months ended June 30, 2020 2019 2020 2019 Service cost $ 16 $ 15 $ 2 $ 2 Interest cost 15 17 3 4 Expected return on assets (25 ) (20 ) (5 ) (6 ) Amortization of: Prior service cost 1 2 — 1 Actuarial loss (gain) 2 7 (1 ) (1 ) Net periodic benefit cost (credit) 9 21 (1 ) — Regulatory adjustments 6 (12 ) 1 — Total expense recognized $ 15 $ 9 $ — $ — NET PERIODIC BENEFIT COST – SOCALGAS (Dollars in millions) Pension benefits Other postretirement benefits Three months ended June 30, 2020 2019 2020 2019 Service cost $ 22 $ 18 $ 4 $ 3 Interest cost 22 22 6 7 Expected return on assets (27 ) (23 ) (11 ) (15 ) Amortization of: Prior service cost (credit) 2 2 (1 ) — Actuarial loss (gain) 7 2 (2 ) (2 ) Net periodic benefit cost (credit) 26 21 (4 ) (7 ) Regulatory adjustments 13 4 4 7 Total expense recognized $ 39 $ 25 $ — $ — Six months ended June 30, 2020 2019 2020 2019 Service cost $ 44 $ 34 $ 7 $ 6 Interest cost 44 45 12 14 Expected return on assets (54 ) (47 ) (21 ) (29 ) Amortization of: Prior service cost (credit) 4 4 (1 ) (1 ) Actuarial loss (gain) 13 11 (4 ) (4 ) Net periodic benefit cost (credit) 51 47 (7 ) (14 ) Regulatory adjustments (12 ) (21 ) 7 14 Total expense recognized $ 39 $ 26 $ — $ — Benefit Plan Contributions The following table shows our year-to-date contributions to pension and other postretirement benefit plans and the amounts we expect to contribute in 2020 . BENEFIT PLAN CONTRIBUTIONS (Dollars in millions) Sempra Energy Consolidated SDG&E SoCalGas Contributions through June 30, 2020: Pension plans $ 82 $ 13 $ 38 Other postretirement benefit plans 3 — — Total expected contributions in 2020: Pension plans $ 268 $ 53 $ 154 Other postretirement benefit plans 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 $463 million and $488 million at June 30, 2020 and December 31, 2019 , respectively. SEMPRA ENERGY EARNINGS PER COMMON SHARE Basic EPS is calculated by dividing earnings attributable to common shares (from both continuing and discontinued operations) by the weighted-average number of common shares outstanding for the period. Diluted EPS includes the potential dilution of common stock equivalent shares that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. EARNINGS PER COMMON SHARE COMPUTATIONS (Dollars in millions, except per share amounts; shares in thousands) Three months ended June 30, Six months ended June 30, 2020 2019 2020 2019 Numerator for continuing operations: Income from continuing operations, net of income tax $ 528 $ 357 $ 1,395 $ 917 Earnings attributable to noncontrolling interests (26 ) (37 ) (169 ) (69 ) Preferred dividends (37 ) (35 ) (73 ) (71 ) Preferred dividends of subsidiary (1 ) (1 ) (1 ) (1 ) Earnings from continuing operations attributable to common shares for basic EPS 464 284 1,152 776 Add back dividends for dilutive mandatory convertible preferred stock (1) — — 52 — Earnings from continuing operations attributable to common shares for diluted EPS $ 464 $ 284 $ 1,204 $ 776 Numerator for discontinued operations: Income from discontinued operations, net of income tax $ 1,777 $ 78 $ 1,857 $ 36 Earnings attributable to noncontrolling interests (2 ) (8 ) (10 ) (17 ) Earnings from discontinued operations attributable to common shares $ 1,775 $ 70 $ 1,847 $ 19 Numerator for earnings: Earnings attributable to common shares for basic EPS $ 2,239 $ 354 $ 2,999 $ 795 Add back dividends for dilutive mandatory convertible preferred stock (1) — — 52 — Earnings attributable to common shares for diluted EPS $ 2,239 $ 354 $ 3,051 $ 795 Denominator: Weighted-average common shares outstanding for basic EPS (2) 293,060 274,987 292,925 274,831 Dilutive effect of stock options and RSUs (3) 1,095 1,541 1,199 1,255 Dilutive effect of common shares sold forward — 3,091 — 2,338 Dilutive effect of mandatory convertible preferred stock — — 13,838 — Weighted-average common shares outstanding for diluted EPS 294,155 279,619 307,962 278,424 Basic EPS: Earnings from continuing operations $ 1.58 $ 1.03 $ 3.93 $ 2.82 Earnings from discontinued operations $ 6.06 $ 0.26 $ 6.31 $ 0.07 Earnings $ 7.64 $ 1.29 $ 10.24 $ 2.89 Diluted EPS: Earnings from continuing operations $ 1.58 $ 1.01 $ 3.91 $ 2.78 Earnings from discontinued operations $ 6.03 $ 0.25 $ 6.00 $ 0.07 Earnings $ 7.61 $ 1.26 $ 9.91 $ 2.85 (1) In the six months ended June 30, 2020, due to the dilutive effect of Sempra Energy’s series A mandatory convertible preferred stock, the numerator used to calculate diluted EPS includes an add-back of dividends declared on the series A mandatory convertible preferred stock. (2) Includes 530 and 613 average fully vested RSUs held in our Deferred Compensation Plan for the three months ended June 30, 2020 and 2019, respectively, and 536 and 613 of such RSUs for the six months ended June 30, 2020 and 2019 , respectively. These fully vested RSUs are included in weighted-average common shares outstanding for basic |
NEW ACCOUNTING STANDARDS
NEW ACCOUNTING STANDARDS | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Changes and Error Corrections [Abstract] | |
NEW ACCOUNTING STANDARDS | NEW ACCOUNTING STANDARDS We describe below recent accounting pronouncements that have had or may have a significant effect on our financial condition, results of operations, cash flows or disclosures. ASU 2016-13, “Measurement of Credit Losses on Financial Instruments”: ASU 2016-13, as amended by subsequently issued ASUs, changes how entities measure credit losses for most financial assets and certain other instruments. The standard introduces an “expected credit loss” impairment model that requires immediate recognition of estimated credit losses expected to occur over the remaining life of most financial assets measured at amortized cost, including trade and other receivables, loan receivables and commitments and financial guarantees. ASU 2016-13 also requires use of an allowance to record estimated credit losses on available-for-sale debt securities and expands disclosure requirements regarding an entity’s assumptions, models and methods for estimating the credit losses. We adopted the standard on January 1, 2020 using a modified retrospective approach through a cumulative-effect adjustment to retained earnings. The adoption primarily impacted the expected credit losses associated with accounts receivable balances, amounts due from unconsolidated affiliates and off-balance sheet financial guarantees. There was an insignificant impact to SDG&E’s or SoCalGas’ balance sheets from adoption. The following table shows the initial (decreases) increases on Sempra Energy’s balance sheet at January 1, 2020 from adoption of ASU 2016-13. IMPACT FROM ADOPTION OF ASU 2016-13 (Dollars in millions) Sempra Energy Accounts receivable – trade, net $ (1 ) Due from unconsolidated affiliates – noncurrent (6 ) Deferred income tax assets 4 Other current liabilities 4 Deferred credits and other 2 Retained earnings (7 ) Other noncontrolling interests (2 ) ASU 2017-04, “Simplifying the Test for Goodwill Impairment”: ASU 2017-04 removes the second step of the goodwill impairment test, which requires a hypothetical purchase price allocation. An entity will be required to apply a one-step quantitative test and record the amount of goodwill impairment as the excess of a reporting unit’s carrying amount over its fair value, not to exceed the carrying amount of goodwill. We adopted ASU 2017-04 on January 1, 2020 and will apply the standard on a prospective basis to our goodwill impairment tests. ASU 2019-12, “Simplifying the Accounting for Income Taxes”: ASU 2019-12 simplifies certain areas of accounting for income taxes. In addition to other changes, this standard amends ASC 740, “Income Taxes,” as follows: ▪ removes the exception to the incremental approach for intraperiod tax allocation when there is a loss from continuing operations and income or a gain from other items, including discontinued operations or other comprehensive income; ▪ simplifies the recognition of deferred taxes related to basis differences as a result of ownership changes in investments; ▪ specifies an entity is not required to allocate the consolidated amount of current and deferred tax expense to a legal entity that is not subject to tax in its separate financial statements; and ▪ requires an entity to reflect the effect of an enacted change in tax laws or rates in the annual ETR computation in the interim period that includes the enactment date. For public entities, ASU 2019-12 is effective for fiscal years beginning after December 15, 2020, including interim periods therein, with early adoption permitted. The transition method related to the amendments made by ASU 2019-12 varies based on the nature of the change. We will adopt the standard on January 1, 2021 and do not expect it will have a material impact on our financial statements. ASU 2020-04, “Facilitation of the Effects of Reference Rate Reform on Financial Reporting”: ASU 2020-04 provides optional expedients and exceptions for applying U.S. GAAP to contract modifications that replace LIBOR or another reference rate affected by reference rate reform and to hedging relationships that reference LIBOR or another reference rate that is affected or expected to be affected by reference rate reform. ASU 2020-04 is effective March 12, 2020 and can be applied through December 31, 2022, with certain exceptions for hedging relationships that continue to exist after this date, and may be applied from January 1, 2020. For contract modifications, the standard allows entities to account for modifications as an event that does not require reassessment or remeasurement (i.e., as a continuation of the existing contract). The standard also allows entities to amend their formal designation and documentation of hedging relationships affected or expected to be affected by reference rate reform, without having to de-designate the hedging relationship. Entities may elect the optional expedients and exceptions on an individual hedging relationship basis and independently from one another. We elected the optional expedients for contract modifications. We elected the cash flow hedging expedients to disregard the potential discontinuation of a reference rate when assessing whether a hedged forecasted interest payment is probable and to disregard certain mismatches between the designated hedging instrument and the hedged item when assessing the hedge effectiveness. We are applying these expedients prospectively from January 1, 2020. Application of these expedients preserves the presentation of derivatives consistent with the past presentation. We are still evaluating the remaining optional expedients and exceptions for hedging relationships. |
REVENUES
REVENUES | 6 Months Ended |
Jun. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
REVENUES | REVENUES We discuss revenue recognition for revenues from contracts with customers and from sources other than contracts with customers in Note 3 of the Notes to Consolidated Financial Statements in the Annual Report. In connection with the COVID-19 pandemic, the California Utilities and the CPUC have implemented certain measures to assist customers, including suspending service disconnections due to nonpayment for residential and small business customers, waiving late payment fees for business customers, and offering flexible payment plans for customers experiencing difficulty paying their electric or gas bills. Additional measures could be mandated or voluntarily implemented in the future. Under the regulatory compact applicable to the California Utilities, including decoupling of rates, recovery of uncollectible expenses, and other recovery mechanisms potentially available (including the CPPMA, which we discuss in Note 4), the California Utilities have continued to recognize revenues under ASC 606, “Revenue from Contracts with Customers,” in the three months and six months ended June 30, 2020. The following table disaggregates our revenues from contracts with customers by major service line and market and provides a reconciliation to total revenues by segment. The majority of our revenue is recognized over time. DISAGGREGATED REVENUES (Dollars in millions) SDG&E SoCalGas Sempra Mexico Sempra LNG Consolidating adjustments and Parent and Other Sempra Energy Consolidated Three months ended June 30, 2020 By major service line: Utilities $ 1,050 $ 904 $ 10 $ — $ (22 ) $ 1,942 Energy-related businesses — — 174 9 (1 ) 182 Revenues from contracts with customers $ 1,050 $ 904 $ 184 $ 9 $ (23 ) $ 2,124 By market: Gas $ 138 $ 904 $ 133 $ 7 $ (21 ) $ 1,161 Electric 912 — 51 2 (2 ) 963 Revenues from contracts with customers $ 1,050 $ 904 $ 184 $ 9 $ (23 ) $ 2,124 Revenues from contracts with customers $ 1,050 $ 904 $ 184 $ 9 $ (23 ) $ 2,124 Utilities regulatory revenues 185 106 — — — 291 Other revenues — — 91 60 (40 ) 111 Total revenues $ 1,235 $ 1,010 $ 275 $ 69 $ (63 ) $ 2,526 Six months ended June 30, 2020 By major service line: Utilities $ 2,309 $ 2,448 $ 30 $ — $ (41 ) $ 4,746 Energy-related businesses — — 372 21 (8 ) 385 Revenues from contracts with customers $ 2,309 $ 2,448 $ 402 $ 21 $ (49 ) $ 5,131 By market: Gas $ 392 $ 2,448 $ 280 $ 18 $ (44 ) $ 3,094 Electric 1,917 — 122 3 (5 ) 2,037 Revenues from contracts with customers $ 2,309 $ 2,448 $ 402 $ 21 $ (49 ) $ 5,131 Revenues from contracts with customers $ 2,309 $ 2,448 $ 402 $ 21 $ (49 ) $ 5,131 Utilities regulatory revenues 195 (43 ) — — — 152 Other revenues — — 182 171 (81 ) 272 Total revenues $ 2,504 $ 2,405 $ 584 $ 192 $ (130 ) $ 5,555 DISAGGREGATED REVENUES (CONTINUED) (Dollars in millions) SDG&E SoCalGas Sempra Mexico Sempra Renewables Sempra LNG Consolidating adjustments and Parent and other Sempra Energy Consolidated Three months ended June 30, 2019 By major service line: Utilities $ 998 $ 877 $ 15 $ — $ — $ (20 ) $ 1,870 Energy-related businesses — — 202 1 21 (14 ) 210 Revenues from contracts with customers $ 998 $ 877 $ 217 $ 1 $ 21 $ (34 ) $ 2,080 By market: Gas $ 102 $ 877 $ 158 $ — $ 19 $ (29 ) $ 1,127 Electric 896 — 59 1 2 (5 ) 953 Revenues from contracts with customers $ 998 $ 877 $ 217 $ 1 $ 21 $ (34 ) $ 2,080 Revenues from contracts with customers $ 998 $ 877 $ 217 $ 1 $ 21 $ (34 ) $ 2,080 Utilities regulatory revenues 96 (71 ) — — — — 25 Other revenues — — 101 2 65 (43 ) 125 Total revenues $ 1,094 $ 806 $ 318 $ 3 $ 86 $ (77 ) $ 2,230 Six months ended June 30, 2019 By major service line: Utilities $ 2,234 $ 2,405 $ 42 $ — $ — $ (38 ) $ 4,643 Energy-related businesses — — 459 5 89 (73 ) 480 Revenues from contracts with customers $ 2,234 $ 2,405 $ 501 $ 5 $ 89 $ (111 ) $ 5,123 By market: Gas $ 341 $ 2,405 $ 356 $ — $ 86 $ (105 ) $ 3,083 Electric 1,893 — 145 5 3 (6 ) 2,040 Revenues from contracts with customers $ 2,234 $ 2,405 $ 501 $ 5 $ 89 $ (111 ) $ 5,123 Revenues from contracts with customers $ 2,234 $ 2,405 $ 501 $ 5 $ 89 $ (111 ) $ 5,123 Utilities regulatory revenues 5 (238 ) — — — — (233 ) Other revenues — — 200 5 138 (105 ) 238 Total revenues $ 2,239 $ 2,167 $ 701 $ 10 $ 227 $ (216 ) $ 5,128 Remaining Performance Obligations For contracts greater than one year, at June 30, 2020 , we expect to recognize revenue related to the fixed fee component of the consideration as shown below. SoCalGas did not have any such remaining performance obligations at June 30, 2020 . REMAINING PERFORMANCE OBLIGATIONS (1) (Dollars in millions) Sempra Energy Consolidated SDG&E 2020 (excluding first six months of 2020) $ 195 $ 2 2021 403 4 2022 406 4 2023 407 4 2024 348 4 Thereafter 4,678 71 Total revenues to be recognized $ 6,437 $ 89 (1) Excludes intercompany transactions. Contract Balances from Revenues from Contracts with Customers Activities within Sempra Energy’s and SDG&E’s contract liabilities are presented below. There were no contract liabilities at SDG&E in the six months ended June 30, 2019 or SoCalGas in the six months ended June 30, 2020 and 2019 . CONTRACT LIABILITIES (Dollars in millions) Sempra Energy Consolidated SDG&E Balance at January 1, 2020 $ (163 ) $ (91 ) Revenue from performance obligations satisfied during reporting period 2 2 Balance at June 30, 2020 (1) $ (161 ) $ (89 ) Balance at January 1, 2019 $ (70 ) Revenue from performance obligations satisfied during reporting period 1 Payments received in advance (3 ) Balance at June 30, 2019 $ (72 ) (1) I ncludes $4 million and $4 million in Other Current Liabilities a nd $157 million and $85 million in Deferred Credits and Other on the Sempra Energy and SDG&E Condensed Consolidated Balance Sheets, respectively. Receivables from Revenues from Contracts with Customers The table below shows receivable balances associated with revenues from contracts with customers on our Condensed Consolidated Balance Sheets. RECEIVABLES FROM REVENUES FROM CONTRACTS WITH CUSTOMERS (Dollars in millions) June 30, 2020 December 31, 2019 Sempra Energy Consolidated: Accounts receivable – trade, net $ 943 $ 1,163 Accounts receivable – other, net 9 16 Due from unconsolidated affiliates – current (1) 4 5 Total $ 956 $ 1,184 SDG&E: Accounts receivable – trade, net $ 418 $ 398 Accounts receivable – other, net 7 5 Due from unconsolidated affiliates – current (1) 3 2 Total $ 428 $ 405 SoCalGas: Accounts receivable – trade, net $ 460 $ 710 Accounts receivable – other, net 2 11 Total $ 462 $ 721 (1) Amount is presented net of amounts due to unconsolidated affiliates on the Condensed Consolidated Balance Sheets, when right of offset exists. |
REGULATORY MATTERS
REGULATORY MATTERS | 6 Months Ended |
Jun. 30, 2020 | |
Regulated Operations [Abstract] | |
Regulatory Matters | REGULATORY MATTERS We discuss regulatory matters in Note 4 of the Notes to Consolidated Financial Statements in the Annual Report, and provide updates to those discussions and information about new regulatory matters below. REGULATORY ASSETS AND LIABILITIES We show the details of regulatory assets and liabilities in the following table. REGULATORY ASSETS (LIABILITIES) (Dollars in millions) June 30, December 31, SDG&E: Fixed-price contracts and other derivatives $ 16 $ 8 Deferred income taxes refundable in rates (55 ) (108 ) Pension and other postretirement benefit plan obligations 95 103 Removal obligations (2,109 ) (2,056 ) Environmental costs 44 45 Sunrise Powerlink fire mitigation 119 121 Regulatory balancing accounts (1)(2) Commodity – electric 182 102 Gas transportation 6 22 Safety and reliability 74 77 Public purpose programs (150 ) (124 ) 2019 GRC retroactive impacts 84 111 Other balancing accounts 172 106 Other regulatory liabilities, net (2) (20 ) (153 ) Total SDG&E (1,542 ) (1,746 ) SoCalGas: Deferred income taxes refundable in rates (123 ) (203 ) Pension and other postretirement benefit plan obligations 393 400 Employee benefit costs 44 44 Removal obligations (714 ) (728 ) Environmental costs 38 40 Regulatory balancing accounts (1)(2) Commodity – gas, including transportation (180 ) (118 ) Safety and reliability 331 295 Public purpose programs (356 ) (273 ) 2019 GRC retroactive impacts 302 400 Other balancing accounts (22 ) (7 ) Other regulatory assets (liabilities), net (2) 19 (101 ) Total SoCalGas (268 ) (251 ) Sempra Mexico: Deferred income taxes recoverable in rates 83 83 Other regulatory assets 2 6 Total Sempra Energy Consolidated $ (1,725 ) $ (1,908 ) (1) At June 30, 2020 and December 31, 2019 , the noncurrent portion of regulatory balancing accounts – net undercollected for SDG&E was $120 million and $108 million , respectively, and for SoCalGas was $535 million and $500 million , respectively. (2) Includes regulatory assets earning a return. CALIFORNIA UTILITIES COVID-19 Pandemic Protections Memorandum Account The COVID-19 pandemic is causing a significant impact on the economy and people’s livelihoods. On March 4, 2020, Governor Gavin Newsom proclaimed a State of Emergency in California as a result of the threat of COVID-19. In response, on March 17, 2020, the CPUC announced that, retroactive to March 4, 2020, all energy companies under its jurisdiction, including the California Utilities, should take action to implement several emergency customer protection measures to support California customers. In April 2020, the CPUC approved a resolution to establish a disaster relief plan for residential and small business customers affected by the COVID-19 pandemic. In June 2020, the CPUC approved the disaster relief plans covering residential and small business customers that were submitted by each of the California Utilities. The resolution also authorizes each of the California Utilities to establish a CPPMA to track and request recovery of incremental costs associated with complying with the resolution, including costs associated with suspending service disconnections and uncollectible expenses that arise from residential and small business customers’ failure to pay. The customer relief measures, which are mandatory for all residential and small business customers, are effective March 2020 and will continue for up to one year. The California Utilities expect to pursue recovery in rates of the costs recorded to the CPPMA in a future proceeding, subject to CPUC approval, which is not assured. In June 2020, the CPUC issued a decision in a separate proceeding addressing service disconnections that, among other things, allows each of the California Utilities to establish a two-way balancing account to record the uncollectible expenses associated with residential customers’ inability to pay their electric or gas bills. The California Utilities may also request, at a future date, to transfer any such costs from the CPPMA to the new balancing account. CPUC General Rate Case The CPUC uses GRC proceedings to set rates designed to allow the California Utilities to recover their reasonable operating costs and to provide the opportunity to realize their authorized rates of return on their investments. 2019 General Rate Case As we discuss in Note 4 of the Notes to Consolidated Financial Statements in the Annual Report, in September 2019, the CPUC issued a final decision in the 2019 GRC. The 2019 GRC FD was effective retroactive to January 1, 2019. In the third quarter of 2019, SDG&E and SoCalGas recorded the retroactive after-tax earnings impact of $36 million and $84 million , respectively, for the first quarter of 2019 and $30 million and $46 million , respectively, for the second quarter of 2019. The 2019 GRC FD approved SDG&E’s and SoCalGas’ test year revenues for 2019 and attrition year adjustments for 2020 and 2021. In January 2020, the CPUC issued a final decision implementing a four-year GRC cycle for California IOUs. The California Utilities were directed to file a petition for modification to revise their 2019 GRC to add two additional attrition years, resulting in a transitional five-year GRC period (2019-2023). The California Utilities filed the petition in April 2020 and requested authorization of their post-test year ratemaking mechanism for two additional years. We have requested an increase in the revenue requirement for SDG&E and SoCalGas of approximately $95 million and $155 million , respectively, for 2022, and $96 million and $137 million , respectively, for 2023, reflecting certain adjustments. These amounts include revenues for both O&M and capital cost attrition. In June 2020, the CPUC issued a ruling to further clarify the issues for review in the California Utilities’ petition, which are mainly whether the proposed revenue requirements and mechanisms for the two proposed additional attrition years are just and reasonable. Based on the procedural schedule established in the ruling, we expect a proposed decision in the fourth quarter of 2020. The 2019 GRC FD clarified that differences between incurred and forecasted income tax expense due to forecasting differences are not subject to tracking in the income tax expense memorandum account beginning in 2019. SDG&E and SoCalGas recorded regulatory liabilities, inclusive of interest, associated with the 2016 through 2018 tracked forecasting differences of $86 million and $89 million , respectively. In April 2020, the CPUC confirmed treatment of the two-way income tax expense memorandum account for these 2016 through 2018 balances, at which time the California Utilities released these regulatory liability balances to revenues and regulatory interest. CPUC Cost of Capital In December 2019, the CPUC approved the cost of capital and rate structures (shown in the table below) for SDG&E and SoCalGas that are effective January 1, 2020 and will remain in effect through December 31, 2022. SDG&E did not propose a 2020 cost of preferred equity in this proceeding. In January 2020, SDG&E filed an advice letter to continue the cost of preferred equity for test year 2020 at 6.22% , which the CPUC approved in March 2020. CPUC AUTHORIZED COST OF CAPITAL AND RATE STRUCTURE SDG&E SoCalGas Authorized weighting Return on rate base Weighted rate base Authorized weighting Return on Weighted 45.25 % 4.59 % 2.08 % Long-Term Debt 45.60 % 4.23 % 1.93 % 2.75 6.22 0.17 Preferred Equity 2.40 6.00 0.14 52.00 10.20 5.30 Common Equity 52.00 10.05 5.23 100.00 % 7.55 % 100.00 % 7.30 % The CCM was reauthorized in the 2020 cost of capital proceeding to continue through 2022. The CCM benchmark rate for the 2020 cost of capital is the average monthly utility bond index, as published by Moody’s, for the 12-month period from October 2018 through September 2019. SDG&E’s CCM benchmark rate is 4.498% , based on Moody’s Baa- utility bond index. SoCalGas’ CCM benchmark rate is 4.029% , based on Moody’s A- utility bond index. The index applicable to each utility is based on such utility’s credit rating. The CCM benchmark rates for SDG&E and SoCalGas are the basis of comparison to determine if future measurement periods “trigger” the CCM. The 12 months ending September 2020 will be the first “CCM Period” to determine if there has been a trigger at SDG&E or SoCalGas. The trigger occurs if the change in the applicable average Moody’s utility bond index relative to the CCM benchmark is larger than plus or minus 1.000% . Accordingly, if a change of more than plus or minus 1.000% occurs, SDG&E’s, SoCalGas’, or both utilities’ authorized ROE would be adjusted, upward or downward, by one half of the difference between the CCM benchmark and the 12-month average determined during the CCM Period. In addition, the authorized recovery rate for the utilities’ cost of debt and preferred equity would be adjusted to their respective actual weighted-average cost, with no change to the authorized capital structure. In the event of a CCM trigger, the CCM benchmark is also re-established. These adjustments would become effective in authorized rates on January 1 of the year following the CCM trigger. SDG&E FERC Formulaic Rate Filing In October 2018, SDG&E submitted its TO5 filing to the FERC to establish its transmission revenue requirement, including rate of return, for SDG&E’s FERC-regulated electric transmission operations and assets. In December 2018, the FERC issued its order accepting and suspending SDG&E’s TO5 filing for five months, during which the existing TO4 rates remained in effect, and established hearing and settlement procedures. The suspension period ended on June 1, 2019, when the proposed TO5 rates took effect, subject to refund and the outcome of the rate filing. As a result, the TO4 ROE of 10.05% was the basis of SDG&E’s FERC-related revenue recognition until March 2020, when the FERC approved the settlement terms that SDG&E and all settling parties reached in October 2019. The settlement agreement provides for a ROE of 10.60% , consisting of a base ROE of 10.10% plus an additional 50 bps for participation in the California ISO. If the FERC issues an order ruling that California IOUs are no longer eligible for the additional California ISO ROE, SDG&E would refund the additional 50 bps of ROE associated with the California ISO as of the refund effective date (June 1, 2019) in this proceeding. The TO5 term is effective June 1, 2019 and shall remain in effect indefinitely, with parties having the annual right to terminate the agreement beginning in 2022. In the first quarter of 2020, SDG&E recorded retroactive revenues of $12 million related to 2019, and additional FERC revenues of $17 million to conclude a rate base matter, net of certain refunds to be paid to CPUC-jurisdictional customers. Energy Efficiency Program Inquiry In January 2020, the CPUC issued a ruling seeking comments on a report prepared by its consultant regarding SDG&E’s Upstream Lighting Program for the program year 2017. The CPUC subsequently expanded the scope of the comments to cover the program year 2018. The Upstream Lighting Program was one of SDG&E’s Energy Efficiency programs designed to produce energy efficiency savings for which SDG&E could earn a performance-based incentive. Pursuant to the CPUC ruling, intervenors representing ratepayers have questioned SDG&E’s management of the program and alleged that certain program expenditures did not benefit the purpose of the program. As a result of the inquiry, SDG&E voluntarily expanded its review to include the program year 2019. Based on this review, SDG&E has concluded some concessions are appropriate, which include refunding certain costs to customers and reducing certain performance-based incentives. Accordingly, in the second quarter of 2020, SDG&E reduced revenues by $15 million for aggregate amounts recognized in program years 2017, 2018 and 2019. Additional adjustments could be recorded, depending on the CPUC’s final decision on the matter. We provide below updates to ongoing matters related to SONGS, a nuclear generating facility near San Clemente, California that ceased operations in June 2013, and in which SDG&E has a 20% ownership interest. We discuss SONGS further in Note 15 of the Notes to Consolidated Financial Statements in the Annual Report. NUCLEAR DECOMMISSIONING AND FUNDING As a result of Edison’s decision to permanently retire SONGS Units 2 and 3, Edison began the decommissioning phase of the plant. We expect the majority of the decommissioning work to take 10 years after receipt of the required permits. The coastal development permit, the last permit required to be obtained, was issued in October 2019. The Samuel Lawrence Foundation filed a writ petition under the California Coastal Act in LA Superior Court in December 2019 seeking to invalidate the permit and to obtain injunctive relief to stop decommissioning work. Major decommissioning work began in 2020. Decommissioning of Unit 1, removed from service in 1992, is largely complete. The remaining work for Unit 1 will be completed once Units 2 and 3 are dismantled and the spent fuel is removed from the site. The spent fuel is currently being stored on-site, until the DOE identifies a spent fuel storage facility and puts in place a program for the fuel’s disposal, as we discuss below. SDG&E is responsible for approximately 20% of the total contract price. In accordance with state and federal requirements and regulations, SDG&E has assets held in the NDT to fund its share of decommissioning costs for SONGS Units 1, 2 and 3. The amounts collected in rates for SONGS’ decommissioning are invested in the NDT, which is comprised of externally managed trust funds. Amounts held by the NDT are invested in accordance with CPUC regulations. SDG&E classifies debt and equity securities held in the NDT as available-for-sale. The NDT assets are presented on the Sempra Energy and SDG&E Condensed Consolidated Balance Sheets at fair value with the offsetting credits recorded in noncurrent Regulatory Liabilities. Except for the use of funds for the planning of decommissioning activities or NDT administrative costs, CPUC approval is required for SDG&E to access the NDT assets to fund SONGS decommissioning costs for Units 2 and 3. In March 2020, SDG&E received authorization from the CPUC to access NDT funds of up to $109 million for forecasted 2020 costs. In December 2016, the IRS and the U.S. Department of the Treasury issued proposed regulations that clarify the definition of “nuclear decommissioning costs,” which are costs that may be paid for or reimbursed from a qualified trust fund. The proposed regulations state that costs related to the construction and maintenance of independent spent fuel management installations are included in the definition of “nuclear decommissioning costs.” The proposed regulations will be effective prospectively once they are finalized. SDG&E is awaiting the adoption of, or additional refinement to, the proposed regulations before determining whether the proposed regulations will allow SDG&E to access the NDT funds for reimbursement or payment of the spent fuel management costs incurred in 2017 and subsequent years. Further clarification of the proposed regulations could enable SDG&E to access the NDT to recover spent fuel management costs before Edison reaches final settlement with the DOE regarding the DOE’s reimbursement of these costs. Historically, the DOE’s reimbursements of spent fuel storage costs have not resulted in timely or complete recovery of these costs. We discuss the DOE’s responsibility for spent nuclear fuel below. The IRS held public hearings on the proposed regulations in October 2017. It is unclear when clarification of the proposed regulations might be provided or when the proposed regulations will be finalized. The following table shows the fair values and gross unrealized gains and losses for the securities held in the NDT. We provide additional fair value disclosures for the NDT in Note 9 . NUCLEAR DECOMMISSIONING TRUSTS (Dollars in millions) Cost Gross unrealized gains Gross unrealized losses Estimated fair value At June 30, 2020: Debt securities: Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies (1) $ 51 $ 1 $ — $ 52 Municipal bonds (2) 327 17 (1 ) 343 Other securities (3) 281 15 (2 ) 294 Total debt securities 659 33 (3 ) 689 Equity securities 143 231 (12 ) 362 Cash and cash equivalents 11 — — 11 Total $ 813 $ 264 $ (15 ) $ 1,062 At December 31, 2019: Debt securities: Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies $ 57 $ — $ — $ 57 Municipal bonds 270 12 — 282 Other securities 218 9 (1 ) 226 Total debt securities 545 21 (1 ) 565 Equity securities 176 339 (6 ) 509 Cash and cash equivalents 8 — — 8 Total $ 729 $ 360 $ (7 ) $ 1,082 (1) Maturity dates are 2021-2050. (2) Maturity dates are 2020-2056. (3) Maturity dates are 2020-2072. The following table shows the proceeds from sales of securities in the NDT and gross realized gains and losses on those sales. SALES OF SECURITIES IN THE NDT (Dollars in millions) Three months ended June 30, Six months ended June 30, 2020 2019 2020 2019 Proceeds from sales $ 245 $ 272 $ 797 $ 497 Gross realized gains 7 8 99 13 Gross realized losses (6 ) (1 ) (11 ) (3 ) Net unrealized gains and losses, as well as realized gains and losses that are reinvested in the NDT, are included in noncurrent Regulatory Liabilities on Sempra Energy’s and SDG&E’s Condensed Consolidated Balance Sheets. We determine the cost of securities in the trusts on the basis of specific identification. ASSET RETIREMENT OBLIGATION AND SPENT NUCLEAR FUEL The present value of SDG&E’s ARO related to decommissioning costs for the SONGS units was $595 million at June 30, 2020 . That amount includes the cost to decommission Units 2 and 3, and the remaining cost to complete the decommissioning of Unit 1, which is substantially complete. The ARO for all three units is based on a cost study prepared in 2017 that is pending CPUC approval. The ARO for Units 2 and 3 reflects the acceleration of the start of decommissioning of these units as a result of the early closure of the plant. SDG&E’s share of total decommissioning costs in 2020 dollars is approximately $860 million . U.S. DEPARTMENT OF ENERGY NUCLEAR FUEL DISPOSAL Spent nuclear fuel from SONGS is currently stored on-site in an ISFSI licensed by the Nuclear Regulatory Commission or temporarily in spent fuel pools. In October 2015, the California Coastal Commission approved Edison’s application to expand the ISFSI. The ISFSI expansion began construction in 2016 and the transfer of the spent nuclear fuel from Units 2 and 3 to the ISFSI began in 2018. The ISFSI will operate until 2049, when it is assumed that the DOE will have taken custody of all the SONGS spent fuel. The ISFSI would then be decommissioned, and the site restored to its original environmental state. Until then, SONGS owners are responsible for interim storage of spent nuclear fuel at SONGS. The Nuclear Waste Policy Act of 1982 made the DOE responsible for accepting, transporting, and disposing of spent nuclear fuel. However, it is uncertain when the DOE will begin accepting spent nuclear fuel from SONGS. This delay will lead to increased costs for spent fuel storage. In November 2019, Edison filed a claim for spent fuel management costs in the U.S. Court of Federal Claims for the time period from January 2017 through July 2018. It is unclear when Edison will pursue litigation claims for spent fuel management costs incurred on or after August 1, 2018. SDG&E will continue to support Edison in its pursuit of claims on behalf of the SONGS co-owners against the DOE for its failure to timely accept the spent nuclear fuel. NUCLEAR INSURANCE SDG&E and the other owners of SONGS have insurance to cover claims from nuclear liability incidents arising at SONGS. Currently, this insurance provides $450 million in coverage limits, the maximum amount available, including coverage for acts of terrorism. In addition, the Price-Anderson Act provides an additional $110 million of coverage. If a nuclear liability loss occurs at SONGS and exceeds the $450 million insurance limit, this additional coverage would be available to provide a total of $560 million in coverage limits per incident. As a result of updated coverage assessments, the SONGS owners have nuclear property damage insurance of $130 million , which exceeds the minimum federal requirements of $50 million . This insurance coverage is provided through NEIL. The NEIL policies have specific exclusions and limitations that can result 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 $3.5 million of retrospective premiums based on overall member claims. 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) of $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. |
ACQUISITIONS, DIVESTITURES AND
ACQUISITIONS, DIVESTITURES AND DISCONTINUED OPERATIONS | 6 Months Ended |
Jun. 30, 2020 | |
Business Combinations [Abstract] | |
ACQUISITIONS, DIVESTITURES AND DISCONTINUED OPERATIONS | ACQUISITIONS, DIVESTITURES AND DISCONTINUED OPERATIONS We consolidate assets acquired and liabilities assumed as of the purchase date and include earnings from acquisitions in consolidated earnings after the purchase date. ACQUISITION Sempra Texas Utilities TTHC In February 2020, STIH acquired an additional indirect 0.1975% interest in Oncor through its acquisition of a 1% interest in TTHC from Hunt Strategic Utility Investment, L.L.C. (Hunt), including notes receivable due from TTHC with an aggregate outstanding balance of approximately $6 million , for a total purchase price of approximately $23 million in cash, bringing Sempra Energy’s indirect ownership in Oncor to approximately 80.45% . TTHC indirectly owns 100% of TTI, which owns 19.75% of Oncor’s outstanding membership interests. At the acquisition date, we determined the fair value of the notes receivable was $7 million based on a discounted cash flow model, and attributed $16 million to the investment in TTHC, which we recorded as an equity method investment. STIH’s acquisition of the 1% interest is the subject of a lawsuit filed in the Delaware Court of Chancery by the owners of the remaining 99% ownership interest in TTHC. STIH purchased its 1% interest in TTHC in February 2020 after the Delaware Court of Chancery decided, among other things, that STIH’s right to purchase the 1% interest was superior to that of the remaining owners of TTHC. The remaining owners appealed that decision and, in May 2020, the Delaware Supreme Court reversed the Delaware Court of Chancery’s ruling and remanded the case back to the Delaware Court of Chancery to take actions as necessary to conform to the opinion of the Delaware Supreme Court. As a result of the Delaware Supreme Court ruling, we reclassified the notes receivable due from TTHC and equity method investment in TTHC, totaling $23 million , to Accounts Receivable – Other, Net, on Sempra Energy’s Condensed Consolidated Balance Sheet, in anticipation of a rescission of STIH’s purchase of the 1% interest, which would return Sempra Energy’s indirect ownership in Oncor to 80.25% . Any rescission of this sale is dependent on a forthcoming decision from the Delaware Court of Chancery. Sharyland Holdings In May 2019, Sempra Energy acquired an indirect, 50% interest in Sharyland Holdings for $95 million (net of $7 million post-closing adjustments) pursuant to the Securities Purchase Agreement. In connection with and prior to the consummation of the Securities Purchase Agreement, Sharyland Holdings owned 100% of the membership interests in Sharyland Utilities, LP and Sharyland Utilities, LP converted into a limited liability company, named Sharyland Utilities, L.L.C. We account for our indirect, 50% interest in Sharyland Holdings as an equity method investment. DIVESTITURES Sempra Renewables In April 2019, Sempra Renewables completed the sale of its remaining wind assets and investments to AEP for $569 million , net of transaction costs, and recorded a $61 million ( $45 million after tax and NCI) gain, which is included in Gain on Sale of Assets on Sempra Energy’s Condensed Consolidated Statements of Operations for the three months and six months ended June 30, 2019. Upon completion of the sale, remaining nominal business activities at Sempra Renewables were subsumed into Parent and other and the Sempra Renewables segment ceased to exist. Sempra LNG In February 2019, Sempra LNG completed the sale of its non-utility natural gas storage assets in the southeast U.S. (comprised of Mississippi Hub and Bay Gas), which we classified as held for sale at December 31, 2018, to an affiliate of ArcLight Capital Partners and received cash proceeds of $322 million , net of transaction costs. In January 2019, Sempra LNG completed the sale of other non-utility assets for $5 million DISCONTINUED OPERATIONS In January 2019, our board of directors approved a plan to sell our South American businesses. We determined that these businesses, which previously constituted the Sempra South American Utilities segment, and certain activities associated with those businesses, met the held-for-sale criteria. These businesses are presented as discontinued operations, as the sales represent a strategic shift that will have a major effect on our operations and financial results. Upon completion of these sales, we no longer have continuing involvement in or the ability to exercise significant influence on the operating or financial policies of these operations. Accordingly, the results of operations, financial position and cash flows for these businesses have been presented as discontinued operations for all periods presented. Discontinued operations that were previously in the Sempra South American Utilities segment include our former 100% interest in Chilquinta Energía in Chile, our former 83.6% interest in Luz del Sur in Peru and our former interests in two energy-services companies, Tecnored and Tecsur, which provide electric construction and infrastructure services to Chilquinta Energía and Luz del Sur, respectively, as well as third parties. On April 24, 2020, we completed the sale of our equity interests in our Peruvian businesses, including our 83.6% interest in Luz del Sur and our interest in Tecsur, to an affiliate of China Yangtze Power International (Hongkong) Co., Limited for cash proceeds of $3,549 million , net of transaction costs and as adjusted for post-closing adjustments, and recorded a pretax gain of $2,271 million ( $1,499 million after tax). On June 24 , 2020, we completed the sale of our equity interests in our Chilean businesses, including our 100% interest in Chilquinta Energía and Tecnored and our 50% interest in Eletrans, to State Grid International Development Limited for cash proceeds of $2,232 million , net of transaction costs and subject to post-closing adjustments, and recorded a pretax gain of $644 million ( $255 million after tax). In the three months and six months ended June 30, 2020, the pretax gains from the sales of our South American businesses are included in Gain on Sale of Discontinued Operations in the table below and the after-tax gains are included in Income from Discontinued Operations, Net of Income Tax, on the Sempra Energy Condensed Consolidated Statements of Operations. Summarized results from discontinued operations were as follows: DISCONTINUED OPERATIONS (Dollars in millions) Three months ended June 30, Six months ended June 30, 2020 (1) 2019 2020 (1) 2019 Revenues $ 170 $ 403 $ 570 $ 824 Cost of sales (111 ) (251 ) (364 ) (516 ) Gain on sale of discontinued operations 2,915 — 2,915 — Operating expenses (20 ) (40 ) (66 ) (85 ) Interest and other (3 ) (6 ) (3 ) (9 ) Income before income taxes and equity earnings 2,951 106 3,052 214 Income tax expense (1,174 ) (29 ) (1,195 ) (180 ) Equity earnings — 1 — 2 Income from discontinued operations, net of income tax 1,777 78 1,857 36 Earnings attributable to noncontrolling interests (2 ) (8 ) (10 ) (17 ) Earnings from discontinued operations attributable to common shares $ 1,775 $ 70 $ 1,847 $ 19 (1) Results include activity until deconsolidation of our Peruvian businesses on April 24, 2020 and Chilean businesses on June 24 , 2020. The following table summarizes the carrying amounts of the major classes of assets and related liabilities classified as held for sale in discontinued operations. ASSETS HELD FOR SALE IN DISCONTINUED OPERATIONS (Dollars in millions) December 31, 2019 Cash and cash equivalents $ 74 Restricted cash (1) 1 Accounts receivable, net 303 Due from unconsolidated affiliates 2 Inventories 36 Other current assets 29 Current assets $ 445 Due from unconsolidated affiliates $ 54 Goodwill and other intangible assets 801 Property, plant and equipment, net 2,618 Other noncurrent assets 40 Noncurrent assets $ 3,513 Short-term debt $ 52 Accounts payable 201 Current portion of long-term debt and finance leases 85 Other current liabilities 106 Current liabilities $ 444 Long-term debt and finance leases $ 702 Deferred income taxes 284 Other noncurrent liabilities 66 Noncurrent liabilities $ 1,052 (1) Primarily represents funds held in accordance with Peruvian tax law. As a result of the sales of our South American businesses, in the second quarter of 2020, we reclassified $645 million of cumulative foreign currency translation losses from AOCI to Gain on Sale of Discontinued Operations, which is included in Income from Discontinued Operations, Net of Income Tax, on the Sempra Energy Condensed Consolidated Statements of Operations. |
INVESTMENTS IN UNCONSOLIDATED E
INVESTMENTS IN UNCONSOLIDATED ENTITIES | 6 Months Ended |
Jun. 30, 2020 | |
Investments [Abstract] | |
Investments in Unconsolidated Entities | INVESTMENTS IN UNCONSOLIDATED ENTITIES We generally account for investments under the equity method when we have significant influence over, but do not have control of, these entities. Equity earnings and losses, both before and net of income tax, are combined and presented as Equity Earnings on the Condensed Consolidated Statements of Operations. See Note 12 for information on equity earnings and losses, both before and net of income tax, by segment. See Note 1 for information on how equity earnings and losses before income taxes are factored into the calculations of our pretax income or loss and ETR. We provide additional information concerning our equity method investments in Notes 5 and 6 of the Notes to Consolidated Financial Statements in the Annual Report. SEMPRA TEXAS UTILITIES Oncor Holdings We account for our 100% ownership interest in Oncor Holdings, which owns an 80.25% interest in Oncor, as an equity method investment. Due to the ring-fencing measures, governance mechanisms, and commitments in effect, we do not have the power to direct the significant activities of Oncor Holdings and Oncor. See Note 6 of the Notes to Consolidated Financial Statements in the Annual Report for additional information related to the restrictions on our ability to direct the significant activities of Oncor Holdings and Oncor. In the six months ended June 30, 2020 , Sempra Energy contributed $139 million to Oncor, and Oncor Holdings distributed to Sempra Energy $146 million in dividends. In the six months ended June 30, 2019 , Sempra Energy contributed $1,180 million to Oncor, which includes $1,067 million to fund Oncor’s acquisition of interests in InfraREIT and certain acquisition-related expenses, which we discuss in Note 5 of the Notes to Consolidated Financial Statements in the Annual Report. In the six months ended June 30, 2019, Oncor Holdings distributed to Sempra Energy $108 million in dividends. We provide summarized income statement information for Oncor Holdings in the following table. SUMMARIZED FINANCIAL INFORMATION – ONCOR HOLDINGS (Dollars in millions) Three months ended June 30, Six months ended June 30, 2020 2019 2020 2019 Operating revenues $ 1,090 $ 1,041 $ 2,162 $ 2,057 Operating expenses (767 ) (757 ) (1,568 ) (1,532 ) Income from operations 323 284 594 525 Interest expense (102 ) (93 ) (203 ) (179 ) Income tax expense (37 ) (30 ) (65 ) (53 ) Net income 173 136 302 250 Noncontrolling interest held by TTI (35 ) (27 ) (61 ) (50 ) Earnings attributable to Sempra Energy 138 109 241 200 SEMPRA LNG In the six months ended June 30, 2020 and 2019 , Sempra LNG invested cash of $1 million and $77 million, respectively, in Cameron LNG JV. In the six months ended June 30, 2020 , Cameron LNG JV distributed to Sempra Energy $74 million in dividends. Prior to commencing commercial operations in August 2019, Sempra LNG capitalized $26 million of interest in the six months ended June 30, 2019 related to its investment in Cameron LNG JV. Sempra Energy Guarantee for an Affiliate of Cameron LNG JV In July 2020, an affiliate of Cameron LNG JV entered into a financing arrangement with Cameron LNG JV’s four project owners and received aggregate proceeds of $1.5 billion from two project owners and from external lenders on behalf of the other two project owners (collectively, the affiliate loans), based on their proportionate ownership interest in Cameron LNG JV. The affiliate used the proceeds from the affiliate loans to provide a loan to Cameron LNG JV. The affiliate loans mature in 2039. Principal and interest will be paid from Cameron LNG JV’s project cash flows from its three-train natural gas liquefaction export facility. Cameron LNG JV will use the proceeds from its loan to return equity to its project owners. Sempra Energy plans to use its share of the proceeds received for working capital and other general corporate purposes, including the repayment of indebtedness. Sempra Energy’s proportionate share of the affiliate loans, based on its 50.2% ownership interest in Cameron LNG JV, was funded by external lenders comprised of a syndicate of eight banks (the bank debt) to whom Sempra Energy has provided a $753 million guarantee. Under the terms of the guarantee, Sempra Energy is responsible for repayment of the bank debt if the affiliate of Cameron LNG JV fails to pay the external lenders. Additionally, the external lenders may exercise an option to put the bank debt to Sempra Energy on every one-year anniversary of the closing of the affiliate loans, as well as upon the occurrence of certain transfer events, including a failure by the affiliate to meet its payment obligations under the bank debt. In addition, some or all of the bank debt will be transferred by the external lenders back to Sempra Energy on the five-year anniversary of the affiliate loans, unless the external lenders elect to waive their transfer rights six months prior to the five-year anniversary of the affiliate loans. Sempra Energy also has a right to call the bank debt back from, or to refinance the bank debt with, the external lenders at any time. The guarantee will terminate upon full repayment of the bank debt, including repayment following an event in which the bank debt is put to Sempra Energy. Sempra Energy will record a liability in July 2020 for the fair value of its obligation associated with this guarantee. RBS SEMPRA COMMODITIES As we discuss in Note 11, in the first quarter of 2020, we recorded a charge of $100 million in Equity Earnings on Sempra Energy’s Condensed Consolidated Statement of Operations for losses from our investment in RBS Sempra Commodities. We recognized a corresponding liability of $25 million in Other Current Liabilities and $75 million in Deferred Credits and Other for our share of estimated losses in excess of the carrying value of our equity method investment. GUARANTEES At June 30, 2020 , Sempra LNG has provided guarantees aggregating a maximum of $4.0 billion with an aggregate carrying value of $2 million associated with Cameron LNG JV’s debt obligations. We discuss these guarantees in Note 6 of the Notes to Consolidated Financial Statements in the Annual Report. |
DEBT AND CREDIT FACILITIES
DEBT AND CREDIT FACILITIES | 6 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Debt and Credit Facilities | DEBT AND CREDIT FACILITIES LINES OF CREDIT Primary U.S. Committed Lines of Credit At June 30, 2020 , Sempra Energy Consolidated had an aggregate capacity of $6.7 billion in four primary U.S. committed lines of credit, which provide liquidity and support commercial paper. The principal terms of these committed lines of credit, which expire in May 2024, are described below and in Note 7 of the Notes to Consolidated Financial Statements in the Annual Report. PRIMARY U.S. COMMITTED LINES OF CREDIT (Dollars in millions) June 30, 2020 Total facility (1) Sempra Energy (2) $ 1,250 Sempra Global 3,185 SDG&E (3) 1,500 SoCalGas (3) 750 Total $ 6,685 (1) All amounts are unused and available as of June 30, 2020. (2) The facility also provides for issuance of $200 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. Subject to obtaining commitments from existing or new lenders and satisfaction of other specified conditions, Sempra Energy has the right to increase the letter of credit commitment up to $500 million . No letters of credit were outstanding at June 30, 2020 . (3) The facility also provides for issuance of $100 million of letters of credit on behalf of the borrowing utility with the amount of borrowings otherwise available under the facility reduced by the amount of outstanding letters of credit. Subject to obtaining commitments from existing or new lenders and satisfaction of other specified conditions, the borrowing utility has the right to increase the letter of credit commitment up to $250 million . No letters of credit were outstanding at June 30, 2020 . Sempra Energy, SDG&E and SoCalGas each must maintain a ratio of indebtedness to total capitalization (as defined in each of the applicable credit facilities) of no more than 65% at the end of each quarter. At June 30, 2020 , each entity was in compliance with this ratio and all other financial covenants under its respective credit facility. Foreign Committed Lines of Credit IEnova has additional general-purpose credit facilities aggregating $1.8 billion at June 30, 2020 . The principal terms of these credit facilities are described below . FOREIGN COMMITTED LINES OF CREDIT (U.S. dollar equivalent in millions) June 30, 2020 Expiration date of facility Total facility Amounts outstanding Available unused credit February 2024 (1) $ 1,500 $ (1,264 ) $ 236 September 2021 (2) 280 (280 ) — Total $ 1,780 $ (1,544 ) $ 236 (1) Five -year revolving credit facility with a syndicate of 10 lenders. (2) Two -year revolving credit facility with The Bank of Nova Scotia. Withdrawals may be made for up to two years from September 23, 2019 in U.S. dollars. In addition to its committed lines of credit, IEnova has a three-year $100 million uncommitted revolving credit facility with Scotiabank Inverlat S.A. that expires in April 2022. Withdrawals may be made in either U.S. dollars or Mexican pesos. At June 30, 2020, available unused credit on this line was $100 million . Letters of Credit Outside of our domestic and foreign committed credit facilities, we have bilateral unsecured standby letter of credit capacity with select lenders that is uncommitted and supported by reimbursement agreements. At June 30, 2020 , we had approximately $609 million in standby letters of credit outstanding under these agreement s. TERM LOANS In March 2020 and April 2020, Sempra Energy borrowed a total of $1,599 million , net of $1 million of debt discounts and issuance costs, under a 364-day term loan, which has a maturity date of March 16, 2021 with an option to extend the maturity date to September 16, 2021, subject to receiving the consent of the lenders. Borrowings bear interest at benchmark rates plus 80 bps ( 0.98% at June 30, 2020). Sempra Energy used a portion of the proceeds from the term loan to repay borrowings on its committed lines of credit. In March 2020, SDG&E borrowed $200 million under a 364-day term loan, which has a maturity date of March 18, 2021 with an option to extend the maturity date to September 17, 2021, subject to receiving the consent of the lenders. Borrowings bear interest at benchmark rates plus 80 bps ( 0.99% at June 30, 2020). SDG&E classified this term loan as long-term debt based on management’s intent and ability to maintain this level of borrowing on a long-term basis by issuing long-term debt. At June 30, 2020, this term loan is included in Current Portion of Long-Term Debt and Finance Leases on SDG&E’s Condensed Consolidated Balance Sheet. The term loans provide Sempra Energy and SDG&E with additional liquidity outside of their respective committed lines of credit. WEIGHTED-AVERAGE INTEREST RATES The weighted-average interest rates on the total short-term debt at June 30, 2020 and December 31, 2019 were as follows: WEIGHTED-AVERAGE INTEREST RATES June 30, 2020 December 31, 2019 Sempra Energy Consolidated 1.02 % 2.31 % SDG&E N/A 1.97 SoCalGas N/A 1.86 LONG-TERM DEBT SDG&E In April 2020, SDG&E issued $400 million of 3.32% first mortgage bonds maturing in 2050 and received proceeds of $395 million (net of debt discount, underwriting discounts and debt issuance costs of $5 million ). SDG&E used $200 million of the proceeds from the offering to repay line of credit borrowings, and the remaining proceeds for working capital and other general corporate purposes. SoCalGas In January 2020, SoCalGas issued $650 million of 2.55% first mortgage bonds maturing in 2030 and received proceeds of $643 million (net of debt discount, underwriting discounts and debt issuance costs of $7 million ). SoCalGas used the proceeds from the offering to repay outstanding commercial paper and for other general corporate purposes. Sempra Mexico In November 2019, IEnova entered into a financing agreement with International Finance Corporation and North American Development Bank to finance and/or refinance the construction of solar generation projects in Mexico. Under this agreement, in April 2020, IEnova borrowed $100 million from Japan International Cooperation Agency, with loan proceeds of $98 million (net of debt issuance costs of $2 million ). The loan matures in November 2034 and bears interest based on 6-month LIBOR plus 150 bps. In April 2020, IEnova entered into a floating-to-fixed interest rate swap, resulting in a fixed rate of 2.38% . Also under the financing agreement, in June 2020, IEnova borrowed $241 million from U.S. International Development Finance Corporation, with loan proceeds of $236 million (net of debt issuance costs of $5 million ). The loan matures in November 2034 and bears interest at a fixed rate of 2.90% . Sempra LNG As we discuss in “Shareholders’ Equity and Noncontrolling Interests – Other Noncontrolling Interests – Sempra LNG” in Note 1, notes payable totaling $22 million due October 1, 2026 were converted to equity by the minority partner in Liberty Gas Storage LLC and are no longer outstanding. |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 6 Months Ended |
Jun. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | DERIVATIVE FINANCIAL INSTRUMENTS We use derivative instruments primarily to manage exposures arising in the normal course of business. Our principal exposures are commodity market risk, benchmark interest rate risk and foreign exchange rate exposures. Our use of derivatives for these risks is integrated into the economic management of our anticipated revenues, anticipated expenses, assets and liabilities. Derivatives may be effective in mitigating these risks (1) that could lead to declines in anticipated revenues or increases in anticipated expenses, or (2) that our asset values may fall or our liabilities may increase. Accordingly, our derivative activity summarized below generally represents an impact that is intended to offset associated revenues, expenses, assets or liabilities that are not included in the tables below. In certain cases, we apply the normal purchase or sale exception to derivative instruments and have other commodity contracts that are not derivatives. These contracts are not recorded at fair value and are therefore excluded from the disclosures below. In all other cases, we record derivatives at fair value on the Condensed Consolidated Balance Sheets. We have derivatives that are (1) cash flow hedges, (2) fair value hedges, or (3) undesignated. Depending on the applicability of hedge accounting and, for the California Utilities and other operations subject to regulatory accounting, the requirement to pass impacts through to customers, the impact of derivative instruments may be offset in OCI (cash flow hedges), on the balance sheet (regulatory offsets), or recognized in earnings (fair value hedges). We classify cash flows from the principal settlements of cross-currency swaps that hedge exposure related to Mexican peso-denominated debt as financing activities and settlements of other derivative instruments as operating activities on the Condensed Consolidated Statements of Cash Flows. HEDGE ACCOUNTING We may designate a derivative as a cash flow hedging instrument if it effectively converts anticipated cash flows associated with revenues or expenses to a fixed dollar amount. We may utilize cash flow hedge accounting for derivative commodity instruments, foreign currency instruments and interest rate instruments. Designating cash flow hedges is dependent on the business context in which the instrument is being used, the effectiveness of the instrument in offsetting the risk that the future cash flows of a given revenue or expense item may vary, and other criteria. ENERGY DERIVATIVES Our market risk is primarily related to natural gas and electricity price volatility and the specific physical locations where we transact. We use energy derivatives to manage these risks. The use of energy derivatives in our various businesses depends on the particular energy market, and the operating and regulatory environments applicable to the business, as follows: ▪ The California Utilities use natural gas and electricity derivatives, for the benefit of customers, with the objective of managing price risk and basis risks, and stabilizing and lowering natural gas and electricity costs. These derivatives include fixed price natural gas and electricity positions, options, and basis risk instruments, which are either exchange-traded or over-the-counter financial instruments, or bilateral physical transactions. This activity is governed by risk management and transacting activity plans that have been filed with and approved by the CPUC. Natural gas and electricity derivative activities are recorded as commodity costs that are offset by regulatory account balances and are recovered in rates. Net commodity cost impacts on the Condensed Consolidated Statements of Operations are reflected in Cost of Electric Fuel and Purchased Power or in Cost of Natural Gas. ▪ SDG&E is allocated and may purchase CRRs, which serve to reduce the regional electricity price volatility risk that may result from local transmission capacity constraints. Unrealized gains and losses do not impact earnings, as they are offset by regulatory account balances. Realized gains and losses associated with CRRs, which are recoverable in rates, are recorded in Cost of Electric Fuel and Purchased Power on the Condensed Consolidated Statements of Operations. ▪ Sempra Mexico and Sempra LNG may use natural gas and electricity derivatives, as appropriate, to optimize the earnings of their assets which support the following businesses: LNG, natural gas transportation and storage, and power generation. Gains and losses associated with undesignated derivatives are recognized in Energy-Related Businesses Revenues or in Energy-Related Businesses Cost of Sales on the Condensed Consolidated Statements of Operations. Certain of these derivatives may also be designated as cash flow hedges. Sempra Mexico may also use natural gas energy derivatives with the objective of managing price risk and lowering natural gas prices at its distribution operations. These derivatives, which are recorded as commodity costs that are offset by regulatory account balances and recovered in rates, are recognized in Cost of Natural Gas on the Condensed Consolidated Statements of Operations. ▪ From time to time, our various businesses, including the California Utilities, may use other energy derivatives to hedge exposures such as the price of vehicle fuel and GHG allowances. The following table summarizes net energy derivative volumes. NET ENERGY DERIVATIVE VOLUMES (Quantities in millions) Commodity Unit of measure June 30, 2020 December 31, 2019 Sempra Energy Consolidated: Natural gas MMBtu 20 32 Electricity MWh 2 2 Congestion revenue rights MWh 42 48 SDG&E: Natural gas MMBtu 32 37 Electricity MWh 2 2 Congestion revenue rights MWh 42 48 SoCalGas: Natural gas MMBtu — 2 In addition to the amounts noted above, we use commodity derivatives to manage risks associated with the physical locations of contractual obligations and assets, such as natural gas purchases and sales. INTEREST RATE DERIVATIVES We are exposed to interest rates primarily as a result of our current and expected use of financing. The California Utilities, as well as Sempra Energy and its other subsidiaries and JVs, periodically enter into interest rate derivative agreements intended to moderate our exposure to interest rates and to lower our overall costs of borrowing. 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. The following table presents the net notional amounts of our interest rate derivatives, excluding JVs. INTEREST RATE DERIVATIVES (Dollars in millions) June 30, 2020 December 31, 2019 Notional debt Maturities Notional debt Maturities Sempra Energy Consolidated: Cash flow hedges $ 1,517 2020-2034 $ 1,445 2020-2034 FOREIGN CURRENCY DERIVATIVES We utilize cross-currency swaps to hedge exposure related to Mexican peso-denominated debt at our Mexican subsidiaries and JVs. These cash flow hedges exchange our Mexican peso-denominated principal and interest payments into the U.S. dollar and swap Mexican variable interest rates for U.S. fixed interest rates. From time to time, Sempra Mexico and its JVs may use other foreign currency derivatives to hedge exposures related to cash flows associated with revenues from contracts denominated in Mexican pesos that are indexed to the U.S. dollar. We are also exposed to exchange rate movements at our Mexican subsidiaries and JVs, which have U.S. dollar-denominated cash balances, receivables, payables and debt (monetary assets and liabilities) that give rise to Mexican currency exchange rate movements for Mexican income tax purposes. They also have deferred income tax assets and liabilities denominated in the Mexican peso, which must be translated to U.S. dollars for financial reporting purposes. In addition, monetary assets and liabilities and certain nonmonetary assets and liabilities are adjusted for Mexican inflation for Mexican income tax purposes. We utilize foreign currency derivatives as a means to manage the risk of exposure to significant fluctuations in our income tax expense and equity earnings from these impacts; however, we generally do not hedge our deferred income tax assets and liabilities or for inflation. We also utilized foreign currency derivatives to hedge exposure to fluctuations in the Peruvian sol and Chilean peso related to the sales of our operations in Peru and Chile, respectively. The following table presents the net notional amounts of our foreign currency derivatives, excluding JVs. FOREIGN CURRENCY DERIVATIVES (Dollars in millions) June 30, 2020 December 31, 2019 Notional amount Maturities Notional amount Maturities Sempra Energy Consolidated: Cross-currency swaps $ 306 2020-2023 $ 306 2020-2023 Other foreign currency derivatives 1,271 2020-2021 1,796 2020-2021 FINANCIAL STATEMENT PRESENTATION The Condensed Consolidated Balance Sheets reflect the offsetting of net derivative positions and cash collateral with the same counterparty when a legal right of offset exists. The following tables provide the fair values of derivative instruments on the Condensed Consolidated Balance Sheets, including the amount of cash collateral receivables that were not offset because the cash collateral was in excess of liability positions. DERIVATIVE INSTRUMENTS ON THE CONDENSED CONSOLIDATED BALANCE SHEETS (Dollars in millions) June 30, 2020 Other current assets (1) Other long-term assets Other current liabilities Deferred credits and other Sempra Energy Consolidated: Derivatives designated as hedging instruments: Interest rate and foreign exchange instruments $ 9 $ — $ (27 ) $ (201 ) Derivatives not designated as hedging instruments: Foreign exchange instruments 16 — (41 ) — Associated offsetting foreign exchange instruments (16 ) — 16 — Commodity contracts not subject to rate recovery 107 8 (105 ) (11 ) Associated offsetting commodity contracts (103 ) (3 ) 103 3 Commodity contracts subject to rate recovery 21 78 (49 ) (44 ) Associated offsetting commodity contracts (4 ) (2 ) 4 2 Associated offsetting cash collateral — — 11 — Net amounts presented on the balance sheet 30 81 (88 ) (251 ) Additional cash collateral for commodity contracts not subject to rate recovery 27 — — — Additional cash collateral for commodity contracts subject to rate recovery 19 — — — Total (2) $ 76 $ 81 $ (88 ) $ (251 ) SDG&E: Derivatives not designated as hedging instruments: Commodity contracts subject to rate recovery $ 17 $ 78 $ (44 ) $ (43 ) Associated offsetting commodity contracts (4 ) (2 ) 4 2 Associated offsetting cash collateral — — 11 — Net amounts presented on the balance sheet 13 76 (29 ) (41 ) Additional cash collateral for commodity contracts subject to rate recovery 15 — — — Total (2) $ 28 $ 76 $ (29 ) $ (41 ) SoCalGas: Derivatives not designated as hedging instruments: Commodity contracts subject to rate recovery $ 4 $ — $ (5 ) $ (1 ) Net amounts presented on the balance sheet 4 — (5 ) (1 ) Additional cash collateral for commodity contracts subject to rate recovery 4 — — — Total $ 8 $ — $ (5 ) $ (1 ) (1) Included in Current Assets: Fixed-Price Contracts and Other Derivatives for SDG&E. (2) Normal purchase contracts previously measured at fair value are excluded. DERIVATIVE INSTRUMENTS ON THE CONDENSED CONSOLIDATED BALANCE SHEETS (Dollars in millions) December 31, 2019 Other current assets (1) Other long-term assets Other current liabilities Deferred credits and other Sempra Energy Consolidated: Derivatives designated as hedging instruments: Interest rate and foreign exchange instruments $ — $ 3 $ (17 ) $ (140 ) Derivatives not designated as hedging instruments: Foreign exchange instruments 41 — (20 ) — Associated offsetting foreign exchange instruments (20 ) — 20 — Commodity contracts not subject to rate recovery 34 11 (41 ) (10 ) Associated offsetting commodity contracts (32 ) (2 ) 32 2 Commodity contracts subject to rate recovery 41 76 (47 ) (47 ) Associated offsetting commodity contracts (6 ) (3 ) 6 3 Associated offsetting cash collateral — — 14 — Net amounts presented on the balance sheet 58 85 (53 ) (192 ) Additional cash collateral for commodity contracts not subject to rate recovery 43 — — — Additional cash collateral for commodity contracts subject to rate recovery 25 — — — Total (2) $ 126 $ 85 $ (53 ) $ (192 ) SDG&E: Derivatives not designated as hedging instruments: Commodity contracts subject to rate recovery $ 30 $ 76 $ (41 ) $ (47 ) Associated offsetting commodity contracts (4 ) (3 ) 4 3 Associated offsetting cash collateral — — 14 — Net amounts presented on the balance sheet 26 73 (23 ) (44 ) Additional cash collateral for commodity contracts subject to rate recovery 16 — — — Total (2) $ 42 $ 73 $ (23 ) $ (44 ) SoCalGas: Derivatives not designated as hedging instruments: Commodity contracts subject to rate recovery $ 11 $ — $ (6 ) $ — Associated offsetting commodity contracts (2 ) — 2 — Net amounts presented on the balance sheet 9 — (4 ) — Additional cash collateral for commodity contracts subject to rate recovery 9 — — — Total $ 18 $ — $ (4 ) $ — (1) Included in Current Assets: Fixed-Price Contracts and Other Derivatives for SDG&E. (2) Normal purchase contracts previously measured at fair value are excluded. The table below includes the effects of derivative instruments designated as cash flow hedges on the Condensed Consolidated Statements of Operations and in OCI and AOCI: CASH FLOW HEDGE IMPACTS (Dollars in millions) Pretax gain (loss) recognized in OCI Pretax (loss) gain reclassified from AOCI into earnings Three months ended June 30, Three months ended June 30, 2020 2019 Location 2020 2019 Sempra Energy Consolidated: Interest rate and foreign exchange instruments (1) $ 5 $ (15 ) Interest Expense (1) $ (2 ) $ — Other Income (Expense), Net 4 2 Interest rate instruments — — Gain on Sale of Assets — (10 ) Interest rate and foreign exchange instruments (18 ) (92 ) Equity Earnings (1 ) — Foreign exchange instruments (5 ) (1 ) Revenues: Energy- Related Businesses — — Other Income (Expense), Net (1 ) — Total $ (18 ) $ (108 ) $ — $ (8 ) SDG&E: Interest rate instruments (1) $ — $ (1 ) Interest Expense (1) $ — $ (1 ) Six months ended June 30, Six months ended June 30, 2020 2019 Location 2020 2019 Sempra Energy Consolidated: Interest rate and foreign exchange instruments (1) $ (87 ) $ (18 ) Interest Expense (1) $ (4 ) $ (1 ) Other Income (Expense), Net (37 ) 5 Interest rate instruments — — Gain on Sale of Assets — (10 ) Interest rate and foreign (190 ) (160 ) Equity Earnings (1 ) (1 ) Foreign exchange instruments 16 (4 ) Revenues: Energy- 2 (1 ) Other Income (Expense), Net 1 — Total $ (261 ) $ (182 ) $ (39 ) $ (8 ) SDG&E: Interest rate instruments (1) $ — $ (1 ) Interest Expense (1) $ — $ (2 ) (1) Amounts include Otay Mesa VIE. All of SDG&E’s interest rate derivative activity relates to Otay Mesa VIE. On August 14, 2019, Otay Mesa Energy Center LLC paid in full its variable-rate loan and terminated its interest rate swaps. For Sempra Energy Consolidated, we expect that net losses of $73 million , which are net of income tax benefit, that are currently recorded in AOCI related to cash flow hedges will be reclassified into earnings during the next 12 months as the hedged items affect earnings. SoCalGas expects that $1 million of losses, net of income tax benefit, that are currently recorded in AOCI related to cash flow hedges will be reclassified into earnings during the next 12 months as the hedged items affect earnings. Actual amounts ultimately reclassified into earnings depend on the interest rates in effect when derivative contracts mature. For all forecasted transactions, the maximum remaining term over which we are hedging exposure to the variability of cash flows at June 30, 2020 is approximately 14 years for Sempra Energy Consolidated. The maximum remaining term for which we are hedging exposure to the variability of cash flows at our equity method investees is 19 years . The following table summarizes the effects of derivative instruments not designated as hedging instruments on the Condensed Consolidated Statements of Operations. UNDESIGNATED DERIVATIVE IMPACTS (Dollars in millions) Pretax gain (loss) on derivatives recognized in earnings Three months ended Six months ended June 30, Location 2020 2019 2020 2019 Sempra Energy Consolidated: Foreign exchange instruments Other Income (Expense), Net $ 2 $ 9 $ (112 ) $ 19 Commodity contracts not subject to rate recovery Revenues: Energy-Related Businesses 13 17 64 17 Commodity contracts subject to rate recovery Cost of Electric Fuel and Purchased Power 9 (27 ) — (25 ) Commodity contracts subject to rate recovery Cost of Natural Gas (3 ) — (6 ) 2 Total $ 21 $ (1 ) $ (54 ) $ 13 SDG&E: Commodity contracts subject to rate recovery Cost of Electric Fuel and Purchased Power $ 9 $ (27 ) $ — $ (25 ) SoCalGas: Commodity contracts subject to rate recovery Cost of Natural Gas $ (3 ) $ — $ (6 ) $ 2 CONTINGENT FEATURES For Sempra Energy Consolidated, SDG&E and SoCalGas, certain of our derivative instruments contain credit limits which vary depending on our credit ratings. Generally, these provisions, if applicable, may reduce our credit limit if a specified credit rating agency reduces our ratings. In certain cases, if our credit ratings were to fall below investment grade, the counterparty to these derivative liability instruments could request immediate payment or demand immediate and ongoing full collateralization. For Sempra Energy Consolidated, the total fair value of this group of derivative instruments in a net liability position at June 30, 2020 and December 31, 2019 was $7 million and $21 million , respectively. For SoCalGas, the total fair value of this group of derivative instruments in a net liability position at June 30, 2020 and December 31, 2019 was $6 million and $4 million , respectively. At June 30, 2020 , if the credit ratings of Sempra Energy or SoCalGas were reduced below investment grade, $7 million and $6 million , respectively, of additional assets could be required to be posted as collateral for these derivative contracts. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS We discuss the valuation techniques and inputs we use to measure fair value and the definition of the three levels of the fair value hierarchy in Note 1 of the Notes to Consolidated Financial Statements in the Annual Report. RECURRING FAIR VALUE MEASURES The three tables below, by level within the fair value hierarchy, set forth our financial assets and liabilities that were accounted for at fair value on a recurring basis at June 30, 2020 and December 31, 2019 . 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 valued assets and liabilities, and their placement within the fair value hierarchy. We have not changed the valuation techniques or types of inputs we use to measure recurring fair value since December 31, 2019 . The fair value of commodity derivative assets and liabilities is presented in accordance with our netting policy, as we discuss in Note 8 under “Financial Statement Presentation.” The determination of fair values, shown in the tables below, incorporates various factors, including but not limited to, the credit standing of the counterparties involved and the impact of credit enhancements (such as cash deposits, letters of credit and priority interests). Our financial assets and liabilities that were accounted for at fair value on a recurring basis in the tables below include the following (other than a $5 million investment at December 31, 2019, measured at net asset value): ▪ Nuclear decommissioning trusts reflect the assets of SDG&E’s NDT, excluding cash balances. A third-party trustee values the trust assets using prices from a pricing service based on a market approach. We validate these prices by comparison to prices from other independent data sources. Securities are valued using quoted prices listed on nationally recognized securities exchanges or based on closing prices reported in the active market in which the identical security is traded (Level 1). Other securities are valued based on yields that are currently available for comparable securities of issuers with similar credit ratings (Level 2). ▪ For commodity contracts, interest rate derivatives and foreign exchange instruments, we primarily use a market or income approach with market participant assumptions to value these derivatives. Market participant assumptions include those about risk, and the risk inherent in the inputs to the valuation techniques. These inputs can be readily observable, market corroborated, or generally unobservable. We have exchange-traded derivatives that are valued based on quoted prices in active markets for the identical instruments (Level 1). We also may have other commodity derivatives that are valued using industry standard models that consider quoted forward prices for commodities, time value, current market and contractual prices for the underlying instruments, volatility factors, and other relevant economic measures (Level 2). Level 3 recurring items relate to CRRs and long-term, fixed-price electricity positions at SDG&E, as we discuss below in “Level 3 Information.” ▪ Rabbi Trust investments include marketable securities that we value using a market approach based on closing prices reported in the active market in which the identical security is traded (Level 1). These investments in marketable securities were negligible at both June 30, 2020 and December 31, 2019 . RECURRING FAIR VALUE MEASURES – SEMPRA ENERGY CONSOLIDATED (Dollars in millions) Fair value at June 30, 2020 Level 1 Level 2 Level 3 Total Assets: Nuclear decommissioning trusts: Equity securities $ 356 $ 6 $ — $ 362 Debt securities: Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies 26 26 — 52 Municipal bonds — 343 — 343 Other securities — 294 — 294 Total debt securities 26 663 — 689 Total nuclear decommissioning trusts (1) 382 669 — 1,051 Interest rate and foreign exchange instruments — 9 — 9 Commodity contracts not subject to rate recovery — 9 — 9 Effect of netting and allocation of collateral (2) 27 — — 27 Commodity contracts subject to rate recovery 3 3 87 93 Effect of netting and allocation of collateral (2) 13 — 6 19 Total $ 425 $ 690 $ 93 $ 1,208 Liabilities: Interest rate and foreign exchange instruments $ — $ 253 $ — $ 253 Commodity contracts not subject to rate recovery — 10 — 10 Commodity contracts subject to rate recovery 11 6 70 87 Effect of netting and allocation of collateral (2) (11 ) — — (11 ) Total $ — $ 269 $ 70 $ 339 Fair value at December 31, 2019 Level 1 Level 2 Level 3 Total Assets: Nuclear decommissioning trusts: Equity securities $ 503 $ 6 $ — $ 509 Debt securities: Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies 46 11 — 57 Municipal bonds — 282 — 282 Other securities — 226 — 226 Total debt securities 46 519 — 565 Total nuclear decommissioning trusts (1) 549 525 — 1,074 Interest rate and foreign exchange instruments — 24 — 24 Commodity contracts not subject to rate recovery — 11 — 11 Effect of netting and allocation of collateral (2) 43 — — 43 Commodity contracts subject to rate recovery 5 8 95 108 Effect of netting and allocation of collateral (2) 11 8 6 25 Total $ 608 $ 576 $ 101 $ 1,285 Liabilities: Interest rate and foreign exchange instruments $ — $ 157 $ — $ 157 Commodity contracts not subject to rate recovery — 17 — 17 Commodity contracts subject to rate recovery 14 4 67 85 Effect of netting and allocation of collateral (2) (14 ) — — (14 ) Total $ — $ 178 $ 67 $ 245 (1) Excludes cash and cash equivalents. (2) Includes the effect of the contractual ability to settle contracts under master netting agreements and with cash collateral, as well as cash collateral not offset. RECURRING FAIR VALUE MEASURES – SDG&E (Dollars in millions) Fair value at June 30, 2020 Level 1 Level 2 Level 3 Total Assets: Nuclear decommissioning trusts: Equity securities $ 356 $ 6 $ — $ 362 Debt securities: Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies 26 26 — 52 Municipal bonds — 343 — 343 Other securities — 294 — 294 Total debt securities 26 663 — 689 Total nuclear decommissioning trusts (1) 382 669 — 1,051 Commodity contracts subject to rate recovery 1 1 87 89 Effect of netting and allocation of collateral (2) 9 — 6 15 Total $ 392 $ 670 $ 93 $ 1,155 Liabilities: Commodity contracts subject to rate recovery $ 11 $ — $ 70 $ 81 Effect of netting and allocation of collateral (2) (11 ) — — (11 ) Total $ — $ — $ 70 $ 70 Fair value at December 31, 2019 Level 1 Level 2 Level 3 Total Assets: Nuclear decommissioning trusts: Equity securities $ 503 $ 6 $ — $ 509 Debt securities: Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies 46 11 — 57 Municipal bonds — 282 — 282 Other securities — 226 — 226 Total debt securities 46 519 — 565 Total nuclear decommissioning trusts (1) 549 525 — 1,074 Commodity contracts subject to rate recovery 1 3 95 99 Effect of netting and allocation of collateral (2) 10 — 6 16 Total $ 560 $ 528 $ 101 $ 1,189 Liabilities: Commodity contracts subject to rate recovery $ 14 $ — $ 67 $ 81 Effect of netting and allocation of collateral (2) (14 ) — — (14 ) Total $ — $ — $ 67 $ 67 (1) Excludes cash and cash equivalents. (2) Includes the effect of the contractual ability to settle contracts under master netting agreements and with cash collateral, as well as cash collateral not offset. RECURRING FAIR VALUE MEASURES – SOCALGAS (Dollars in millions) Fair value at June 30, 2020 Level 1 Level 2 Level 3 Total Assets: Commodity contracts subject to rate recovery $ 2 $ 2 $ — $ 4 Effect of netting and allocation of collateral (1) 4 — — 4 Total $ 6 $ 2 $ — $ 8 Liabilities: Commodity contracts subject to rate recovery $ — $ 6 $ — $ 6 Total $ — $ 6 $ — $ 6 Fair value at December 31, 2019 Level 1 Level 2 Level 3 Total Assets: Commodity contracts subject to rate recovery $ 4 $ 5 $ — $ 9 Effect of netting and allocation of collateral (1) 1 8 — 9 Total $ 5 $ 13 $ — $ 18 Liabilities: Commodity contracts subject to rate recovery $ — $ 4 $ — $ 4 Total $ — $ 4 $ — $ 4 (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 table below sets forth reconciliations of changes in the fair value of CRRs and long-term, fixed-price electricity positions classified as Level 3 in the fair value hierarchy for Sempra Energy Consolidated and SDG&E. LEVEL 3 RECONCILIATIONS (1) (Dollars in millions) Three months ended June 30, 2020 2019 Balance at April 1 $ 16 $ 182 Realized and unrealized (losses) gains (9 ) (13 ) Allocated transmission instruments 1 — Settlements 9 7 Balance at June 30 $ 17 $ 176 Change in unrealized gains (losses) relating to instruments still held at June 30 $ (5 ) $ (3 ) Six months ended June 30, 2020 2019 Balance at January 1 $ 28 $ 179 Realized and unrealized (losses) gains (14 ) (8 ) Allocated transmission instruments 1 — Settlements 2 5 Balance at June 30 $ 17 $ 176 Change in unrealized gains (losses) relating to instruments still held at June 30 $ (13 ) $ 9 (1) Excludes the effect of the contractual ability to settle contracts under master netting agreements. Inputs used to determine the fair value of CRRs and fixed-price electricity positions are reviewed and compared with market conditions to determine reasonableness. SDG&E expects all costs related to these instruments to be recoverable through customer rates. As such, there is no impact to earnings from changes in the fair value of these instruments. CRRs are recorded at fair value based almost entirely on the most current auction prices published by the California ISO, an objective source. Annual auction prices are published once a year, typically in the middle of November, and are the basis for valuing CRRs settling in the following year. For the CRRs settling from January 1 to December 31, the auction price inputs, at a given location, were in the following ranges for the years indicated below: CONGESTION REVENUE RIGHTS AUCTION PRICE INPUTS Settlement year Price per MWh Median price per MWh 2020 $ (3.77 ) to $ 6.03 $ (1.58 ) 2019 (8.57 ) to 35.21 (2.94 ) The impact associated with discounting is negligible. Because these auction prices are a less observable input, these instruments are classified as Level 3. The fair value of these instruments is derived from auction price differences between two locations. Positive values between two locations represent expected future reductions in congestion costs, whereas negative values between two locations represent expected future charges. Valuation of our CRRs is sensitive to a change in auction price. If auction prices at one location increase (decrease) relative to another location, this could result in a higher (lower) fair value measurement. We summarize CRR volumes in Note 8. Long-term, fixed-price electricity positions that are valued using significant unobservable data are classified as Level 3 because the contract terms relate to a delivery location or tenor for which observable market rate information is not available. The fair value of the net electricity positions classified as Level 3 is derived from a discounted cash flow model using market electricity forward price inputs. The range and weighted-average price of these inputs at June 30 were as follows: LONG-TERM, FIXED-PRICE ELECTRICITY POSITIONS PRICE INPUTS Settlement year Price per MWh Weighted-average price per MWh 2020 $ 20.35 to $ 51.60 $ 34.68 2019 22.00 to 62.65 41.50 A significant increase (decrease) in market electricity forward prices would result in a significantly higher (lower) fair value. We summarize long-term, fixed-price electricity position volumes in Note 8. Realized gains and losses associated with CRRs and long-term electricity positions, which are recoverable in rates, are recorded in Cost of Electric Fuel and Purchased Power on the Condensed Consolidated Statements of Operations. Because unrealized gains and losses are recorded as regulatory assets and liabilities, they do not affect earnings. Fair Value of Financial Instruments The fair values of certain of our financial instruments (cash, accounts and notes receivable, short-term amounts due to/from unconsolidated affiliates, dividends and accounts payable, short-term debt and customer deposits) approximate their carrying amounts because of the short-term nature of these instruments. Investments in life insurance contracts that we hold in support of our Supplemental Executive Retirement, Cash Balance Restoration and Deferred Compensation Plans are carried at cash surrender values, which represent the amount of cash that could be realized under the contracts. The following table provides the carrying amounts and fair values of certain other financial instruments that are not recorded at fair value on the Condensed Consolidated Balance Sheets. FAIR VALUE OF FINANCIAL INSTRUMENTS (Dollars in millions) June 30, 2020 Carrying Fair value Level 1 Level 2 Level 3 Total Sempra Energy Consolidated: Long-term amounts due from unconsolidated affiliates (1) $ 606 $ — $ 632 $ — $ 632 Long-term amounts due to unconsolidated affiliates 267 — 245 — 245 Total long-term debt (2) 21,720 — 24,270 — 24,270 SDG&E: Total long-term debt (3) $ 5,723 $ — $ 6,759 $ — $ 6,759 SoCalGas: Total long-term debt (4) $ 4,459 $ — $ 5,282 $ — $ 5,282 December 31, 2019 Carrying Fair value Level 1 Level 2 Level 3 Total Sempra Energy Consolidated: Long-term amounts due from unconsolidated affiliates $ 742 $ — $ 759 $ — $ 759 Long-term amounts due to unconsolidated affiliates 195 — 184 — 184 Total long-term debt (2) 21,247 — 22,638 26 22,664 SDG&E: Total long-term debt (3) $ 5,140 $ — $ 5,662 $ — $ 5,662 SoCalGas: Total long-term debt (4) $ 3,809 $ — $ 4,189 $ — $ 4,189 (1) Before allowances for credit losses of $3 million at June 30, 2020. (2) Before reductions of unamortized discount and debt issuance costs of $228 million and $225 million at June 30, 2020 and December 31, 2019, respectively, and excluding finance lease obligations of $1,328 million and $1,289 million at June 30, 2020 and December 31, 2019, respectively. (3) Before reductions of unamortized discount and debt issuance costs of $51 million and $48 million at June 30, 2020 and December 31, 2019, respectively, and excluding finance lease obligations of $1,278 million and $1,270 million at June 30, 2020 and December 31, 2019, respectively. (4) Before reductions of unamortized discount and debt issuance costs of $40 million and $34 million at June 30, 2020 and December 31, 2019, respectively, and excluding finance lease obligations of $50 million and $19 million at June 30, 2020 and December 31, 2019, respectively. We provide the fair values for the securities held in the NDT related to SONGS in Note 10 . |
SAN ONOFRE NUCLEAR GENERATING S
SAN ONOFRE NUCLEAR GENERATING STATION | 6 Months Ended |
Jun. 30, 2020 | |
Regulated Operations [Abstract] | |
San Onofre Nuclear Generating Station | REGULATORY MATTERS We discuss regulatory matters in Note 4 of the Notes to Consolidated Financial Statements in the Annual Report, and provide updates to those discussions and information about new regulatory matters below. REGULATORY ASSETS AND LIABILITIES We show the details of regulatory assets and liabilities in the following table. REGULATORY ASSETS (LIABILITIES) (Dollars in millions) June 30, December 31, SDG&E: Fixed-price contracts and other derivatives $ 16 $ 8 Deferred income taxes refundable in rates (55 ) (108 ) Pension and other postretirement benefit plan obligations 95 103 Removal obligations (2,109 ) (2,056 ) Environmental costs 44 45 Sunrise Powerlink fire mitigation 119 121 Regulatory balancing accounts (1)(2) Commodity – electric 182 102 Gas transportation 6 22 Safety and reliability 74 77 Public purpose programs (150 ) (124 ) 2019 GRC retroactive impacts 84 111 Other balancing accounts 172 106 Other regulatory liabilities, net (2) (20 ) (153 ) Total SDG&E (1,542 ) (1,746 ) SoCalGas: Deferred income taxes refundable in rates (123 ) (203 ) Pension and other postretirement benefit plan obligations 393 400 Employee benefit costs 44 44 Removal obligations (714 ) (728 ) Environmental costs 38 40 Regulatory balancing accounts (1)(2) Commodity – gas, including transportation (180 ) (118 ) Safety and reliability 331 295 Public purpose programs (356 ) (273 ) 2019 GRC retroactive impacts 302 400 Other balancing accounts (22 ) (7 ) Other regulatory assets (liabilities), net (2) 19 (101 ) Total SoCalGas (268 ) (251 ) Sempra Mexico: Deferred income taxes recoverable in rates 83 83 Other regulatory assets 2 6 Total Sempra Energy Consolidated $ (1,725 ) $ (1,908 ) (1) At June 30, 2020 and December 31, 2019 , the noncurrent portion of regulatory balancing accounts – net undercollected for SDG&E was $120 million and $108 million , respectively, and for SoCalGas was $535 million and $500 million , respectively. (2) Includes regulatory assets earning a return. CALIFORNIA UTILITIES COVID-19 Pandemic Protections Memorandum Account The COVID-19 pandemic is causing a significant impact on the economy and people’s livelihoods. On March 4, 2020, Governor Gavin Newsom proclaimed a State of Emergency in California as a result of the threat of COVID-19. In response, on March 17, 2020, the CPUC announced that, retroactive to March 4, 2020, all energy companies under its jurisdiction, including the California Utilities, should take action to implement several emergency customer protection measures to support California customers. In April 2020, the CPUC approved a resolution to establish a disaster relief plan for residential and small business customers affected by the COVID-19 pandemic. In June 2020, the CPUC approved the disaster relief plans covering residential and small business customers that were submitted by each of the California Utilities. The resolution also authorizes each of the California Utilities to establish a CPPMA to track and request recovery of incremental costs associated with complying with the resolution, including costs associated with suspending service disconnections and uncollectible expenses that arise from residential and small business customers’ failure to pay. The customer relief measures, which are mandatory for all residential and small business customers, are effective March 2020 and will continue for up to one year. The California Utilities expect to pursue recovery in rates of the costs recorded to the CPPMA in a future proceeding, subject to CPUC approval, which is not assured. In June 2020, the CPUC issued a decision in a separate proceeding addressing service disconnections that, among other things, allows each of the California Utilities to establish a two-way balancing account to record the uncollectible expenses associated with residential customers’ inability to pay their electric or gas bills. The California Utilities may also request, at a future date, to transfer any such costs from the CPPMA to the new balancing account. CPUC General Rate Case The CPUC uses GRC proceedings to set rates designed to allow the California Utilities to recover their reasonable operating costs and to provide the opportunity to realize their authorized rates of return on their investments. 2019 General Rate Case As we discuss in Note 4 of the Notes to Consolidated Financial Statements in the Annual Report, in September 2019, the CPUC issued a final decision in the 2019 GRC. The 2019 GRC FD was effective retroactive to January 1, 2019. In the third quarter of 2019, SDG&E and SoCalGas recorded the retroactive after-tax earnings impact of $36 million and $84 million , respectively, for the first quarter of 2019 and $30 million and $46 million , respectively, for the second quarter of 2019. The 2019 GRC FD approved SDG&E’s and SoCalGas’ test year revenues for 2019 and attrition year adjustments for 2020 and 2021. In January 2020, the CPUC issued a final decision implementing a four-year GRC cycle for California IOUs. The California Utilities were directed to file a petition for modification to revise their 2019 GRC to add two additional attrition years, resulting in a transitional five-year GRC period (2019-2023). The California Utilities filed the petition in April 2020 and requested authorization of their post-test year ratemaking mechanism for two additional years. We have requested an increase in the revenue requirement for SDG&E and SoCalGas of approximately $95 million and $155 million , respectively, for 2022, and $96 million and $137 million , respectively, for 2023, reflecting certain adjustments. These amounts include revenues for both O&M and capital cost attrition. In June 2020, the CPUC issued a ruling to further clarify the issues for review in the California Utilities’ petition, which are mainly whether the proposed revenue requirements and mechanisms for the two proposed additional attrition years are just and reasonable. Based on the procedural schedule established in the ruling, we expect a proposed decision in the fourth quarter of 2020. The 2019 GRC FD clarified that differences between incurred and forecasted income tax expense due to forecasting differences are not subject to tracking in the income tax expense memorandum account beginning in 2019. SDG&E and SoCalGas recorded regulatory liabilities, inclusive of interest, associated with the 2016 through 2018 tracked forecasting differences of $86 million and $89 million , respectively. In April 2020, the CPUC confirmed treatment of the two-way income tax expense memorandum account for these 2016 through 2018 balances, at which time the California Utilities released these regulatory liability balances to revenues and regulatory interest. CPUC Cost of Capital In December 2019, the CPUC approved the cost of capital and rate structures (shown in the table below) for SDG&E and SoCalGas that are effective January 1, 2020 and will remain in effect through December 31, 2022. SDG&E did not propose a 2020 cost of preferred equity in this proceeding. In January 2020, SDG&E filed an advice letter to continue the cost of preferred equity for test year 2020 at 6.22% , which the CPUC approved in March 2020. CPUC AUTHORIZED COST OF CAPITAL AND RATE STRUCTURE SDG&E SoCalGas Authorized weighting Return on rate base Weighted rate base Authorized weighting Return on Weighted 45.25 % 4.59 % 2.08 % Long-Term Debt 45.60 % 4.23 % 1.93 % 2.75 6.22 0.17 Preferred Equity 2.40 6.00 0.14 52.00 10.20 5.30 Common Equity 52.00 10.05 5.23 100.00 % 7.55 % 100.00 % 7.30 % The CCM was reauthorized in the 2020 cost of capital proceeding to continue through 2022. The CCM benchmark rate for the 2020 cost of capital is the average monthly utility bond index, as published by Moody’s, for the 12-month period from October 2018 through September 2019. SDG&E’s CCM benchmark rate is 4.498% , based on Moody’s Baa- utility bond index. SoCalGas’ CCM benchmark rate is 4.029% , based on Moody’s A- utility bond index. The index applicable to each utility is based on such utility’s credit rating. The CCM benchmark rates for SDG&E and SoCalGas are the basis of comparison to determine if future measurement periods “trigger” the CCM. The 12 months ending September 2020 will be the first “CCM Period” to determine if there has been a trigger at SDG&E or SoCalGas. The trigger occurs if the change in the applicable average Moody’s utility bond index relative to the CCM benchmark is larger than plus or minus 1.000% . Accordingly, if a change of more than plus or minus 1.000% occurs, SDG&E’s, SoCalGas’, or both utilities’ authorized ROE would be adjusted, upward or downward, by one half of the difference between the CCM benchmark and the 12-month average determined during the CCM Period. In addition, the authorized recovery rate for the utilities’ cost of debt and preferred equity would be adjusted to their respective actual weighted-average cost, with no change to the authorized capital structure. In the event of a CCM trigger, the CCM benchmark is also re-established. These adjustments would become effective in authorized rates on January 1 of the year following the CCM trigger. SDG&E FERC Formulaic Rate Filing In October 2018, SDG&E submitted its TO5 filing to the FERC to establish its transmission revenue requirement, including rate of return, for SDG&E’s FERC-regulated electric transmission operations and assets. In December 2018, the FERC issued its order accepting and suspending SDG&E’s TO5 filing for five months, during which the existing TO4 rates remained in effect, and established hearing and settlement procedures. The suspension period ended on June 1, 2019, when the proposed TO5 rates took effect, subject to refund and the outcome of the rate filing. As a result, the TO4 ROE of 10.05% was the basis of SDG&E’s FERC-related revenue recognition until March 2020, when the FERC approved the settlement terms that SDG&E and all settling parties reached in October 2019. The settlement agreement provides for a ROE of 10.60% , consisting of a base ROE of 10.10% plus an additional 50 bps for participation in the California ISO. If the FERC issues an order ruling that California IOUs are no longer eligible for the additional California ISO ROE, SDG&E would refund the additional 50 bps of ROE associated with the California ISO as of the refund effective date (June 1, 2019) in this proceeding. The TO5 term is effective June 1, 2019 and shall remain in effect indefinitely, with parties having the annual right to terminate the agreement beginning in 2022. In the first quarter of 2020, SDG&E recorded retroactive revenues of $12 million related to 2019, and additional FERC revenues of $17 million to conclude a rate base matter, net of certain refunds to be paid to CPUC-jurisdictional customers. Energy Efficiency Program Inquiry In January 2020, the CPUC issued a ruling seeking comments on a report prepared by its consultant regarding SDG&E’s Upstream Lighting Program for the program year 2017. The CPUC subsequently expanded the scope of the comments to cover the program year 2018. The Upstream Lighting Program was one of SDG&E’s Energy Efficiency programs designed to produce energy efficiency savings for which SDG&E could earn a performance-based incentive. Pursuant to the CPUC ruling, intervenors representing ratepayers have questioned SDG&E’s management of the program and alleged that certain program expenditures did not benefit the purpose of the program. As a result of the inquiry, SDG&E voluntarily expanded its review to include the program year 2019. Based on this review, SDG&E has concluded some concessions are appropriate, which include refunding certain costs to customers and reducing certain performance-based incentives. Accordingly, in the second quarter of 2020, SDG&E reduced revenues by $15 million for aggregate amounts recognized in program years 2017, 2018 and 2019. Additional adjustments could be recorded, depending on the CPUC’s final decision on the matter. We provide below updates to ongoing matters related to SONGS, a nuclear generating facility near San Clemente, California that ceased operations in June 2013, and in which SDG&E has a 20% ownership interest. We discuss SONGS further in Note 15 of the Notes to Consolidated Financial Statements in the Annual Report. NUCLEAR DECOMMISSIONING AND FUNDING As a result of Edison’s decision to permanently retire SONGS Units 2 and 3, Edison began the decommissioning phase of the plant. We expect the majority of the decommissioning work to take 10 years after receipt of the required permits. The coastal development permit, the last permit required to be obtained, was issued in October 2019. The Samuel Lawrence Foundation filed a writ petition under the California Coastal Act in LA Superior Court in December 2019 seeking to invalidate the permit and to obtain injunctive relief to stop decommissioning work. Major decommissioning work began in 2020. Decommissioning of Unit 1, removed from service in 1992, is largely complete. The remaining work for Unit 1 will be completed once Units 2 and 3 are dismantled and the spent fuel is removed from the site. The spent fuel is currently being stored on-site, until the DOE identifies a spent fuel storage facility and puts in place a program for the fuel’s disposal, as we discuss below. SDG&E is responsible for approximately 20% of the total contract price. In accordance with state and federal requirements and regulations, SDG&E has assets held in the NDT to fund its share of decommissioning costs for SONGS Units 1, 2 and 3. The amounts collected in rates for SONGS’ decommissioning are invested in the NDT, which is comprised of externally managed trust funds. Amounts held by the NDT are invested in accordance with CPUC regulations. SDG&E classifies debt and equity securities held in the NDT as available-for-sale. The NDT assets are presented on the Sempra Energy and SDG&E Condensed Consolidated Balance Sheets at fair value with the offsetting credits recorded in noncurrent Regulatory Liabilities. Except for the use of funds for the planning of decommissioning activities or NDT administrative costs, CPUC approval is required for SDG&E to access the NDT assets to fund SONGS decommissioning costs for Units 2 and 3. In March 2020, SDG&E received authorization from the CPUC to access NDT funds of up to $109 million for forecasted 2020 costs. In December 2016, the IRS and the U.S. Department of the Treasury issued proposed regulations that clarify the definition of “nuclear decommissioning costs,” which are costs that may be paid for or reimbursed from a qualified trust fund. The proposed regulations state that costs related to the construction and maintenance of independent spent fuel management installations are included in the definition of “nuclear decommissioning costs.” The proposed regulations will be effective prospectively once they are finalized. SDG&E is awaiting the adoption of, or additional refinement to, the proposed regulations before determining whether the proposed regulations will allow SDG&E to access the NDT funds for reimbursement or payment of the spent fuel management costs incurred in 2017 and subsequent years. Further clarification of the proposed regulations could enable SDG&E to access the NDT to recover spent fuel management costs before Edison reaches final settlement with the DOE regarding the DOE’s reimbursement of these costs. Historically, the DOE’s reimbursements of spent fuel storage costs have not resulted in timely or complete recovery of these costs. We discuss the DOE’s responsibility for spent nuclear fuel below. The IRS held public hearings on the proposed regulations in October 2017. It is unclear when clarification of the proposed regulations might be provided or when the proposed regulations will be finalized. The following table shows the fair values and gross unrealized gains and losses for the securities held in the NDT. We provide additional fair value disclosures for the NDT in Note 9 . NUCLEAR DECOMMISSIONING TRUSTS (Dollars in millions) Cost Gross unrealized gains Gross unrealized losses Estimated fair value At June 30, 2020: Debt securities: Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies (1) $ 51 $ 1 $ — $ 52 Municipal bonds (2) 327 17 (1 ) 343 Other securities (3) 281 15 (2 ) 294 Total debt securities 659 33 (3 ) 689 Equity securities 143 231 (12 ) 362 Cash and cash equivalents 11 — — 11 Total $ 813 $ 264 $ (15 ) $ 1,062 At December 31, 2019: Debt securities: Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies $ 57 $ — $ — $ 57 Municipal bonds 270 12 — 282 Other securities 218 9 (1 ) 226 Total debt securities 545 21 (1 ) 565 Equity securities 176 339 (6 ) 509 Cash and cash equivalents 8 — — 8 Total $ 729 $ 360 $ (7 ) $ 1,082 (1) Maturity dates are 2021-2050. (2) Maturity dates are 2020-2056. (3) Maturity dates are 2020-2072. The following table shows the proceeds from sales of securities in the NDT and gross realized gains and losses on those sales. SALES OF SECURITIES IN THE NDT (Dollars in millions) Three months ended June 30, Six months ended June 30, 2020 2019 2020 2019 Proceeds from sales $ 245 $ 272 $ 797 $ 497 Gross realized gains 7 8 99 13 Gross realized losses (6 ) (1 ) (11 ) (3 ) Net unrealized gains and losses, as well as realized gains and losses that are reinvested in the NDT, are included in noncurrent Regulatory Liabilities on Sempra Energy’s and SDG&E’s Condensed Consolidated Balance Sheets. We determine the cost of securities in the trusts on the basis of specific identification. ASSET RETIREMENT OBLIGATION AND SPENT NUCLEAR FUEL The present value of SDG&E’s ARO related to decommissioning costs for the SONGS units was $595 million at June 30, 2020 . That amount includes the cost to decommission Units 2 and 3, and the remaining cost to complete the decommissioning of Unit 1, which is substantially complete. The ARO for all three units is based on a cost study prepared in 2017 that is pending CPUC approval. The ARO for Units 2 and 3 reflects the acceleration of the start of decommissioning of these units as a result of the early closure of the plant. SDG&E’s share of total decommissioning costs in 2020 dollars is approximately $860 million . U.S. DEPARTMENT OF ENERGY NUCLEAR FUEL DISPOSAL Spent nuclear fuel from SONGS is currently stored on-site in an ISFSI licensed by the Nuclear Regulatory Commission or temporarily in spent fuel pools. In October 2015, the California Coastal Commission approved Edison’s application to expand the ISFSI. The ISFSI expansion began construction in 2016 and the transfer of the spent nuclear fuel from Units 2 and 3 to the ISFSI began in 2018. The ISFSI will operate until 2049, when it is assumed that the DOE will have taken custody of all the SONGS spent fuel. The ISFSI would then be decommissioned, and the site restored to its original environmental state. Until then, SONGS owners are responsible for interim storage of spent nuclear fuel at SONGS. The Nuclear Waste Policy Act of 1982 made the DOE responsible for accepting, transporting, and disposing of spent nuclear fuel. However, it is uncertain when the DOE will begin accepting spent nuclear fuel from SONGS. This delay will lead to increased costs for spent fuel storage. In November 2019, Edison filed a claim for spent fuel management costs in the U.S. Court of Federal Claims for the time period from January 2017 through July 2018. It is unclear when Edison will pursue litigation claims for spent fuel management costs incurred on or after August 1, 2018. SDG&E will continue to support Edison in its pursuit of claims on behalf of the SONGS co-owners against the DOE for its failure to timely accept the spent nuclear fuel. NUCLEAR INSURANCE SDG&E and the other owners of SONGS have insurance to cover claims from nuclear liability incidents arising at SONGS. Currently, this insurance provides $450 million in coverage limits, the maximum amount available, including coverage for acts of terrorism. In addition, the Price-Anderson Act provides an additional $110 million of coverage. If a nuclear liability loss occurs at SONGS and exceeds the $450 million insurance limit, this additional coverage would be available to provide a total of $560 million in coverage limits per incident. As a result of updated coverage assessments, the SONGS owners have nuclear property damage insurance of $130 million , which exceeds the minimum federal requirements of $50 million . This insurance coverage is provided through NEIL. The NEIL policies have specific exclusions and limitations that can result 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 $3.5 million of retrospective premiums based on overall member claims. 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) of $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. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES LEGAL PROCEEDINGS We accrue losses for a legal proceeding when it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. However, the uncertainties inherent in legal proceedings make it difficult to reasonably estimate the costs and effects of resolving these matters. Accordingly, actual costs incurred may differ materially from amounts accrued, may exceed applicable insurance coverage and could materially adversely affect our business, cash flows, results of operations, financial condition and prospects. Unless otherwise indicated, we are unable to estimate reasonably possible losses in excess of any amounts accrued. At June 30, 2020 , loss contingency accruals for legal matters, including associated legal fees, that are probable and estimable were $ 416 million for Sempra Energy Consolidated, including $270 million for SoCalGas. Amounts for Sempra Energy Consolidated and SoCalGas include $260 million for matters related to the Aliso Canyon natural gas storage facility gas leak, which we discuss below. SoCalGas Aliso Canyon Natural Gas Storage Facility Gas Leak From October 23, 2015 through February 11, 2016, SoCalGas experienced a natural gas leak from one of the injection-and-withdrawal wells, SS25, at its Aliso Canyon natural gas storage facility in Los Angeles County. As described below in “Civil and Criminal Litigation” and “Regulatory Proceedings,” numerous lawsuits, investigations and regulatory proceedings have been initiated in response to the Leak, resulting in significant costs, which together with other Leak-related costs are discussed below in “Cost Estimates, Accounting Impact and Insurance.” Civil and Criminal Litigation. As of August 3, 2020, 394 lawsuits, including approximately 36,000 plaintiffs, are pending against SoCalGas related to the Leak, some of which have also named Sempra Energy. All these cases, other than a matter brought by the Los Angeles County District Attorney and the federal securities class action discussed below, are coordinated before a single court in the LA Superior Court for pretrial management. In November 2017, in the coordinated proceeding, individuals and business entities filed a Third Amended Consolidated Master Case Complaint for Individual Actions, through which their separate lawsuits will be managed for pretrial purposes. The consolidated complaint asserts causes of action for negligence, negligence per se, private and public nuisance (continuing and permanent), trespass, inverse condemnation, strict liability, negligent and intentional infliction of emotional distress, fraudulent concealment, loss of consortium, wrongful death and violations of Proposition 65 against SoCalGas, with certain causes of action also naming Sempra Energy. The consolidated complaint seeks compensatory and punitive damages for personal injuries, lost wages and/or lost profits, property damage and diminution in property value, injunctive relief, costs of future medical monitoring, civil penalties (including penalties associated with Proposition 65 claims alleging violation of requirements for warning about certain chemical exposures), and attorneys’ fees. SoCalGas is engaged in settlement discussions in connection with these actions and, in the first quarter of 2020, recorded a related accrual of $277 million , inclusive of estimated legal costs, in Reserve for Aliso Canyon Costs on SoCalGas’ and Sempra Energy’s Condensed Consolidated Balance Sheets. The initial trial previously scheduled for June 2020 for a small number of randomly selected individual plaintiffs was postponed, with a new trial date to be determined by the court. In January 2017, two consolidated class action complaints were filed against SoCalGas and Sempra Energy, one on behalf of a putative class of persons and businesses who own or lease real property within a five-mile radius of the well (the Property Class Action), and a second on behalf of a putative class of all persons and entities conducting business within five miles of the facility (the Business Class Action). The Property Class Action asserts claims for strict liability for ultra-hazardous activities, negligence, negligence per se, violation of the California Unfair Competition Law, trespass, permanent and continuing public and private nuisance, and inverse condemnation. The Business Class Action asserts a claim for violation of the California Unfair Competition Law. Both complaints seek compensatory, statutory and punitive damages, injunctive relief and attorneys’ fees. Three property developers filed complaints in July and October of 2018 against SoCalGas and Sempra Energy alleging causes of action for strict liability, negligence per se, negligence, continuing nuisance, permanent nuisance and violation of the California Unfair Competition Law, as well as claims for negligence against certain directors of SoCalGas. The complaints seek compensatory, statutory and punitive damages, injunctive relief and attorneys’ fees. In October 2018 and January 2019, complaints were filed on behalf of 51 firefighters stationed near the Aliso Canyon natural gas storage facility who allege they were injured by exposure to chemicals released during the Leak. The complaints against SoCalGas and Sempra Energy assert causes of actions for negligence, negligence per se, private and public nuisance (continuing and permanent), trespass, inverse condemnation, strict liability, negligent and intentional infliction of emotional distress, fraudulent concealment and loss of consortium. The complaints seek compensatory and punitive damages for personal injuries, lost wages and/or lost profits, property damage and diminution in property value, and attorney’s fees. Four shareholder derivative actions are also pending alleging breach of fiduciary duties against certain officers and certain directors of Sempra Energy and/or SoCalGas, all of which were joined in an Amended Consolidated Shareholder Derivative Complaint filed in February 2020. A fifth shareholder derivative action filed in March 2017 was dismissed in November 2019 on the grounds that the plaintiff failed to adequately plead his claims, but the court gave leave for him to amend the complaint to cure the defects. In addition, a federal securities class action alleging violation of the federal securities laws was filed against Sempra Energy and certain of its officers in July 2017 in the U.S. District Court for the Southern District of California. In March 2018, the court dismissed the action with prejudice. The plaintiffs have appealed the dismissal. In February 2019, the LA Superior Court approved a settlement between SoCalGas and the Los Angeles City Attorney’s Office, the County of Los Angeles, the California Office of the Attorney General and CARB of three actions filed by these entities under which SoCalGas made payments and agreed to provide funding for environmental projects totaling $120 million , including $21 million in civil penalties, as well as other safety-related commitments. In September 2016, SoCalGas settled a misdemeanor criminal complaint filed in February 2016 by the Los Angeles County District Attorney’s Office against SoCalGas, pleading no contest to a charge that it failed to provide timely notice of the Leak pursuant to California Health and Safety Code section 25510(a), Los Angeles County Code section 12.56.030, and Title 19 California Code of Regulations section 2703(a). In November 2016, the LA Superior Court approved the settlement and entered judgment on the notice charge. Under the settlement, SoCalGas paid a $75,000 fine, $233,500 in penalties, and $246,673 to reimburse costs incurred by Los Angeles County Fire Department’s Health and Hazardous Materials Division, as well as completed operational commitments estimated to cost approximately $6 million . Certain individuals who objected to the settlement petitioned the Court of Appeal to vacate the judgment, contending they should be granted restitution. In July 2019, the Court of Appeal denied the petition in part, but remanded the matter to the trial court to give the petitioners an opportunity to prove damages stemming from only the three-day delay in reporting the Leak. Following the hearing, the trial court denied restitution. The alleged victims have asked the trial court to reconsider its order. Regulatory Proceedings. In January 2016, CalGEM and the CPUC directed an independent analysis of the technical root cause of the Leak to be conducted by Blade. In May 2019, Blade released its report, which concluded that the Leak was caused by a failure of the production casing of the well due to corrosion and that attempts to stop the Leak were not effectively conducted, but did not identify any instances of non-compliance by SoCalGas. Blade concluded that SoCalGas’ compliance activities conducted prior to the Leak did not find indications of a casing integrity issue. Blade opined, however, that there were measures, none of which were required by gas storage regulations at the time, that could have been taken to aid in the early identification of corrosion and that, in Blade’s opinion, would have prevented or mitigated the Leak. The report also identified well safety practices and regulations that have since been adopted by CalGEM and implemented by SoCalGas, which address most of the root cause of the Leak identified during Blade’s investigation. In June 2019, the CPUC opened an OII to consider penalties against SoCalGas for the Leak, which it later bifurcated into two phases. The first phase will consider whether SoCalGas violated California Public Utilities Code Section 451 or other laws, CPUC orders or decisions, rules or requirements, whether SoCalGas engaged in unreasonable and/or imprudent practices with respect to its operation and maintenance of the Aliso Canyon natural gas storage facility or its related record-keeping practices, whether SoCalGas cooperated sufficiently with the Safety Enforcement Division (SED) and Blade during the pre-formal investigation, and whether any of the mitigation proposed by Blade should be implemented to the extent not already done. In November 2019, SED, based largely on the Blade report, alleged a total of 330 violations, asserting that SoCalGas violated California Public Utilities Code Section 451 and failed to cooperate in the investigation and to keep proper records. Hearings in the first phase of the OII have been postponed until further notice. The second phase will consider whether SoCalGas should be sanctioned for the Leak and what penalties, if any, should be imposed for any violations proven in the first phase, as well as determine the amounts of various costs incurred by SoCalGas and other parties in connection with the Leak and the ratemaking treatment or other disposition of such costs. In a January 2016 emergency proclamation, the Governor ordered the CPUC to ensure that SoCalGas covers costs related to the Leak and its response, while protecting ratepayers. In addition, CalGEM is investigating the Leak. In February 2017, the CPUC opened a proceeding pursuant to SB 380 to determine the feasibility of minimizing or eliminating the use of the Aliso Canyon natural gas storage facility while still maintaining energy and electric reliability for the region, but excluding issues with respect to air quality, public health, causation, culpability or cost responsibility regarding the Leak. The first phase of the proceeding established a framework for the hydraulic, production cost and economic modeling assumptions for the potential reduction in usage or elimination of the Aliso Canyon natural gas storage facility. Phase 2 of the proceeding, which will evaluate the impacts of reducing or eliminating the Aliso Canyon natural gas storage facility using the established framework and models, began in the first quarter of 2019. The CPUC has indicated that it expects to issue its report for Phase 2 in 2020. In December 2019, the CPUC added a third phase of the proceeding to consider alternative means for meeting or avoiding the demand for the facility’s services if it were eliminated in either 2027 or 2045. If the Aliso Canyon natural gas storage facility were to be permanently closed, or if future cash flows from its operation were otherwise insufficient to recover its carrying value, it could result in an impairment of the facility and significantly higher than expected operating costs and/or additional capital expenditures, and natural gas reliability and electric generation could be jeopardized. At June 30, 2020 , the Aliso Canyon natural gas storage facility had a net book value of $775 million . Any significant impairment of this asset, or higher operating costs and additional capital expenditures incurred by SoCalGas that may not be recoverable in customer rates, could have a material adverse effect on SoCalGas’ and Sempra Energy’s results of operations, financial condition and cash flows. Cost Estimates, Accounting Impact and Insurance. SoCalGas has incurred significant costs for temporary relocation of community residents; to control the well and stop the Leak; to mitigate the natural gas released; to purchase natural gas to replace what was lost through the Leak; to defend against and, in certain cases, settle, civil and criminal litigation arising from the Leak; to pay the costs of the government-ordered response to the Leak, including the costs for Blade to conduct the root cause analysis described above; to respond to various government and agency investigations regarding the Leak; and to comply with increased regulation imposed as a result of the Leak. At June 30, 2020 , SoCalGas estimates these costs related to the Leak are $1,411 million (the cost estimate), which includes the $1,277 million of costs recovered or probable of recovery from insurance. This cost estimate may increase significantly as more information becomes available. A substantial portion of the cost estimate has been paid, and $256 million is accrued as Reserve for Aliso Canyon Costs and $7 million is accrued in Deferred Credits and Other as of June 30, 2020 on SoCalGas’ and Sempra Energy’s Condensed Consolidated Balance Sheets. Except for the amounts paid or estimated to settle certain actions, as described in “Civil and Criminal Litigation” above, the cost estimate does not include all litigation or regulatory costs to the extent it is not possible to predict at this time the outcome of these actions or reasonably estimate the costs to defend or resolve the actions or the amount of damages, restitution, or civil, administrative or criminal fines, sanctions, penalties or other costs or remedies that may be imposed or incurred. The cost estimate also does not include certain other costs incurred by Sempra Energy associated with defending against shareholder derivative lawsuits and other potential costs that we currently do not anticipate incurring or that we cannot reasonably estimate. These costs not included in the cost estimate could be significant and could have a material adverse effect on SoCalGas’ and Sempra Energy’s cash flows, financial condition and results of operations. We have received insurance payments for many of the costs included in the cost estimate, including temporary relocation and associated processing costs, control-of-well expenses, costs of the government-ordered response to the Leak, certain legal costs and lost gas. We intend to pursue the full extent of our insurance coverage for the costs we have incurred. Other than directors’ and officers’ liability insurance, after taking into consideration the additional accrual related to litigation matters described above, we have exhausted all of our insurance in this matter, except as to certain defense costs we may incur in the future, including those related to the shareholder derivative lawsuits described above. We continue to pursue other sources of insurance coverage for costs related to this matter, but we may not be successful in obtaining additional insurance recovery for any of these costs. If we are not able to secure additional insurance recovery for all or a substantial portion of these costs, if any costs we have recorded as an insurance receivable are not collected, if there are delays in receiving insurance recoveries, or if the insurance recoveries are subject to income taxes while the associated costs are not tax deductible, such amounts, which could be significant, could have a material adverse effect on SoCalGas’ and Sempra Energy’s cash flows, financial condition and results of operations. As of June 30, 2020 , we recorded the expected recovery of the cost estimate related to the Leak of $505 million as Insurance Receivable for Aliso Canyon Costs on SoCalGas’ and Sempra Energy’s Condensed Consolidated Balance Sheets. This amount is exclusive of insurance retentions and $772 million of insurance proceeds we received through June 30, 2020 . If we were to conclude that this receivable or a portion of it is no longer probable of recovery from insurers, some or all of this receivable would be charged against earnings, which could have a material adverse effect on SoCalGas’ and Sempra Energy’s cash flows, financial condition and results of operations. Sempra Mexico Energía Costa Azul IEnova has been engaged in a long-running land dispute relating to property adjacent to its ECA LNG Regasification facility that allegedly overlaps with land owned by the ECA LNG Regasification facility (the facility, however, is not situated on the land that is the subject of this dispute). A claimant to the adjacent property filed complaints in the federal Agrarian Court challenging the refusal of SEDATU in 2006 to issue a title to him for the disputed property. In November 2013, the federal Agrarian Court ordered that SEDATU issue the requested title and cause it to be registered. Both SEDATU and IEnova challenged the ruling, due to lack of notification of the underlying process. In May 2019, a federal court in Mexico reversed the ruling and ordered a retrial. IEnova expects additional proceedings regarding the claims. Four other cases involving two adjacent areas of real property on which part of the ECA LNG Regasification facility is situated, each brought by a single plaintiff or her descendants, remain pending against the facility. The first disputed area is subject to a claim in the federal Agrarian Court that has been ongoing since 2006, in which the plaintiffs seek to annul the property title for a portion of the land on which the ECA LNG Regasification facility is situated and to obtain possession of a different parcel that allegedly overlaps with the site of the ECA LNG Regasification facility. The second disputed area is one parcel adjacent to the ECA LNG Regasification facility that allegedly overlaps with land on which the ECA LNG Regasification facility is situated, which is subject to a claim in the Agrarian Court and two claims in civil courts. The Agrarian Court proceeding, which seeks an order that SEDATU issue title to the plaintiff, was initiated in 2013 and the parties are awaiting a final decision. The two civil court proceedings, which seek to invalidate the contract by which the ECA LNG Regasification facility purchased the applicable parcel of land on which the ECA LNG Regasification facility is situated on the grounds that the purchase price was allegedly unfair, are progressing at different stages. In the first, initiated in 2013, a lower court ruled in favor of the ECA LNG Regasification facility and the ruling has been appealed by the plaintiff. The same plaintiff filed the second civil case in 2019, which is in its initial stages. IEnova expects further proceedings on these matters. Several administrative challenges are pending before Mexico’s Secretariat of Environment and Natural Resources (the Mexican environmental protection agency) and Federal Tax and Administrative Courts, seeking revocation of the environmental impact authorization issued to the ECA LNG Regasification facility in 2003. These cases generally allege that the conditions and mitigation measures in the environmental impact authorization are inadequate and challenge findings that the activities of the terminal are consistent with regional development guidelines. In 2018, two related claimants filed separate challenges in the federal district court in Ensenada, Baja California in relation to the environmental and social impact permits issued by each of Agencia de Seguridad, Energía y Ambiente (ASEA) and SENER to ECA LNG JV authorizing natural gas liquefaction activities at the ECA LNG Regasification facility. In the first case, the court issued a provisional injunction in September 2018. In December 2018, ASEA approved modifications to the environmental permit that facilitate the development of the proposed natural gas liquefaction facility in two phases. In May 2019, the court canceled the provisional injunction. The claimant appealed the court’s decision canceling the injunction, but was not successful. The claimant’s underlying challenge to the permits remains pending. In the second case, the initial request for a provisional injunction was denied. That decision was reversed on appeal in January 2020, resulting in the issuance of a new injunction against the same environmental and social impact permits that were already issued by ASEA and SENER. This injunction has uncertain application absent clarification by the court. The reversal and issuance of the injunction in the second case is under further appeal. In May 2020, the two third-party capacity customers at the ECA LNG Regasification facility asserted that a 2019 update of the general terms and conditions for service at the facility, as approved by the CRE, resulted in a breach of contract by IEnova and a force majeure event. Citing these circumstances, the customers subsequently stopped making payments of amounts due under their respective LNG storage and regasification agreements. IEnova has rejected the customers’ assertions and has drawn (and expects to continue to draw) on the customers’ letters of credit provided as payment security. The parties engaged in discussions under the applicable contractual dispute resolution procedures without coming to a mutually acceptable resolution. On July 23, 2020, one of the customers, Shell México Gas Natural, S. de R.L. de C.V. (Shell Mexico), submitted a request for arbitration of the dispute. IEnova will avail itself of its available claims, defenses and remedies in the arbitration proceeding. Shell Mexico has also informed IEnova that it filed a constitutional challenge to the CRE’s approval of the update to the general terms and conditions. IEnova is monitoring this proceeding. One or more unfavorable final decisions on these disputes or challenges, could materially and adversely affect our existing natural gas regasification operations and development projects at the ECA LNG Regasification facility. Guaymas-El Oro Segment of the Sonora Pipeline IEnova’s Sonora natural gas pipeline consists of two segments, the Sasabe-Puerto Libertad-Guaymas segment, and the Guaymas-El Oro segment. Each segment has its own service agreement with the CFE. In 2015, the Yaqui tribe, with the exception of some members living in the Bácum community, granted its consent and a right-of-way easement agreement for the construction of the Guaymas-El Oro segment of the Sonora natural gas pipeline that crosses its territory. Representatives of the Bácum community filed a legal challenge in Mexican federal court demanding the right to withhold consent for the project, the stoppage of work in the Yaqui territory and damages. In 2016, the judge granted a suspension order that prohibited the construction of such segment through the Bácum community territory. Because the pipeline does not pass through the Bácum community, IEnova did not believe the 2016 suspension order prohibited construction in the remainder of the Yaqui territory. Construction of the Guaymas-El Oro segment was completed, and commercial operations began in May 2017. Following the start of commercial operations of the Guaymas-El Oro segment, IEnova reported damage to the Guaymas-El Oro segment of the Sonora pipeline in the Yaqui territory that has made that section inoperable since August 23, 2017 and, as a result, IEnova declared a force majeure event. In 2017, an appellate court ruled that the scope of the 2016 suspension order encompassed the wider Yaqui territory, which has prevented IEnova from making repairs to put the pipeline back in service. In July 2019, a federal district court ruled in favor of IEnova and held that the Yaqui tribe was properly consulted and that consent from the Yaqui tribe was properly received. Representatives of the Bácum community appealed this decision, causing the suspension order preventing IEnova from repairing the damage to the Guaymas-El Oro segment of the Sonora pipeline in the Yaqui territory to remain in place until the appeals process is exhausted. IEnova exercised its rights under the contract, which included seeking force majeure payments for the two-year period such force majeure payments were required to be made, which ended on August 22, 2019. In July 2019, the CFE filed a request for arbitration generally to nullify certain contract terms that provide for fixed capacity payments in instances of force majeure and made a demand for substantial damages in connection with the force majeure event. In September 2019, the arbitration process ended when IEnova and the CFE reached an agreement to restart natural gas transportation service on the earlier of completion of repair of the damaged pipeline or January 15, 2020, and to modify the tariff structure and extend the term of the contract by 10 years. In January 2020, IEnova and the CFE agreed to extend the January 15, 2020 new service start date to May 15, 2020. On May 11, 2020, the parties agreed to further extend the service start date to September 15, 2020. Under the revised agreement, the CFE will resume making payments only when the damaged section of the Guaymas-El Oro segment of the Sonora pipeline is repaired. If the pipeline is not repaired by September 15, 2020 and the parties do not agree on a new service start date, IEnova retains the right to terminate the contract and seek to recover its reasonable and documented costs and lost profits. If IEnova is unable to make such repairs and resume operations in the Guaymas-El Oro segment of the Sonora pipeline within this time frame or if IEnova terminates the contract and is unable to obtain recovery, there may be a material adverse impact on Sempra Energy’s results of operations and cash flows and our ability to recover the carrying value of our investment. The Sasabe-Puerto Libertad-Guaymas segment of the Sonora pipeline remains in full operation and is not impacted by these developments. Regulatory Actions by the Mexican Government that Impact Renewable Energy Facilities On April 29, 2020, Mexico’s CENACE issued an order that it claims would safeguard Mexico’s national power grid from interruptions that may be caused by renewable energy projects. The main provision of the order suspends all legally mandated pre-operative testing that would be needed for new renewable energy projects to commence operations and prevents such projects from connecting to the national power grid until further notice. IEnova’s renewable energy projects affected by the order filed for legal protection through amparo claims (constitutional protection lawsuits), and in June 2020, received injunctive relief until the claims are resolved by the courts. On May 15, 2020, Mexico’s SENER published a resolution to establish guidelines intended to guarantee the security and reliability of the national grid’s electricity supply by reducing the threat that it claims is caused by clean, intermittent energy. The resolution includes the following key elements: ▪ provides non-renewable electricity generation facilities, primarily non-renewable power plants, preferential access or easier access to Mexico’s national power grid, while increasing restrictions on access to the grid by renewable energy facilities; ▪ grants the CRE and CENACE broad authority to approve or deny permits and interconnection requests by producers of renewable energy; and ▪ imposes restrictive measures on the renewable energy sector, including requiring all permits and interconnection agreements to include an early termination clause in the event the renewable energy project fails to make certain additional improvements, at the request of the CRE or CENACE, in accordance with a specific schedule. IEnova’s renewable energy projects, including those in construction and in service, filed amparo claims against the SENER resolution on June 26, 2020 and received injunctive relief on July 17, 2020. In addition, on June 22, 2020, COFECE, Mexico’s antitrust regulator, filed a complaint with Mexico’s Supreme Court against the SENER resolution. COFECE’s complaint was upheld by the court and, pending the court’s final ruling, the decision suspends indefinitely the resolution. On May 28, 2020, the CRE approved an update to the transmission rates included in legacy renewables and cogeneration energy contracts, based on the claim that the legacy transmission rates did not reflect fair and proportional costs for providing the applicable services and, therefore, created inequitable competitive conditions. Three of IEnova’s renewables’ facilities are currently holders of contracts with such legacy rates, and any increases in the transmission rates would be passed through directly to their customers. IEnova filed amparo claims for its affected facilities in July 2020. IEnova and other companies affected by these new orders and regulations have challenged the orders and regulations by filing amparo claims, some of which have been granted injunctive relief. The court-ordered injunctions provide relief until Mexico’s Federal District Court ultimately resolves the amparo claims or, with respect to the SENER resolution, until Mexico’s Supreme Court issues its final ruling on COFECE’s complaint, the timing of which is uncertain. An unfavorable final decision on these amparo challenges, or the potential for an extended dispute, could impact our ability to successfully complete construction of our solar facilities, or to complete them in a timely manner and within expected budgets, may impact our ability to operate our wind and solar facilities already in service at existing levels or at all, and may adversely affect our ability to develop new projects, any of which may have a material adverse impact on our results of operations and cash flows and our ability to recover the carrying values of our renewable energy investments in Mexico. Other Litigation Sempra Energy holds an equity method investment in RBS Sempra Commodities, a limited liability partnership in the process of being liquidated. RBS, now NatWest Markets plc, our partner in the JV, paid an assessment of £86 million (approximately $138 million in U.S. dollars) in October 2014 to HMRC for denied VAT refund claims filed in connection with the purchase of carbon credit allowances by RBS SEE, a subsidiary of RBS Sempra Commodities. RBS SEE has since been sold to J.P. Morgan Chase & Co. and later to Mercuria Energy Group, Ltd. HMRC asserted that RBS was not entitled to reduce its VAT liability by VAT paid on certain carbon credit purchases during 2009 because RBS knew or should have known that certain vendors in the trading chain did not remit their own VAT to HMRC. After paying the assessment, RBS filed a Notice of Appeal of the assessment with the First-Tier Tribunal. Trial on the matter, which could include the assessment of a penalty of up to 100% of the claimed amount, has been scheduled between November 2, 2020 and December 11, 2020. In 2015, liquidators filed a claim in the High Court of Justice against RBS and Mercuria Energy Europe Trading Limited (the Defendants) on behalf of 10 companies (the Liquidating Companies) that engaged in carbon credit trading via chains that included a company that traded directly with RBS SEE. The claim alleges that the Defendants’ participation in the purchase and sale of carbon credits resulted in the Liquidating Companies’ carbon credit trading transactions creating a VAT liability they were unable to pay, and that the Defendants are liable to provide for equitable compensation due to dishonest assistance and for compensation under the U.K. Insolvency Act of 1986. Trial on the matter was held in June and July of 2018. O |
SEGMENT INFORMATION
SEGMENT INFORMATION | 6 Months Ended |
Jun. 30, 2020 | |
Segment Reporting [Abstract] | |
Segment Information | SEGMENT INFORMATION We have five separately managed reportable segments, as follows: ▪ SDG&E provides electric service to San Diego and southern Orange counties and natural gas service to San Diego County. ▪ SoCalGas is a natural gas distribution utility, serving customers throughout most of Southern California and part of central California. ▪ Sempra Texas Utilities holds our investment in Oncor Holdings, which owns an 80.25 % interest in Oncor, a regulated electric transmission and distribution utility serving customers in the north-central, eastern, and western and panhandle regions of Texas; and our indirect, 50 % interest in Sharyland Holdings, which owns Sharyland Utilities, a regulated electric transmission and distribution utility serving customers near the Texas-Mexico border. As we discuss in Note 5 of the Notes to Consolidated Financial Statements in the Annual Report , we acquired our investment in Sharyland Holdings in May 2019. ▪ Sempra Mexico develops, owns and operates, or holds interests in, natural gas, electric, LNG, LPG, ethane and liquid fuels infrastructure, and has marketing operations for the purchase of LNG and the purchase and sale of natural gas in Mexico. ▪ Sempra LNG develops projects for the export of LNG, holds an interest in a facility for the export of LNG, owns and operates natural gas pipelines, and buys, sells and transports natural gas through its marketing operations, all within the U.S. and Mexico. In February 2019, we completed the sale of our natural gas storage assets at Mississippi Hub and Bay Gas. In April 2019, Sempra Renewables completed the sale of its remaining wind assets and investments. Upon completion of this sale, remaining nominal business activities at Sempra Renewables were subsumed into Parent and other and the Sempra Renewables segment ceased to exist. The tables below include amounts from Sempra Renewables up until cessation of the segment. As we discuss in Note 5, the financial information related to our businesses that constituted the Sempra South American Utilities segment is presented as discontinued operations for all periods presented. The information in the tables below excludes amounts from discontinued operations unless otherwise noted. We completed the sales of our discontinued operations in the second quarter of 2020. We evaluate each segment’s performance based on its contribution to Sempra Energy’s reported earnings and cash flows. The California Utilities operate in essentially separate service territories, under separate regulatory frameworks and rate structures set by the CPUC and the FERC. We describe the accounting policies of all of our segments in Note 1 of the Notes to Consolidated Financial Statements in the Annual Report. The cost of common services shared by the business segments is assigned directly or allocated based on various cost factors, depending on the nature of the service provided. Interest income and expense is recorded on intercompany loans. The loan balances and related interest are eliminated in consolidation. The following tables show selected information by segment from our Condensed Consolidated Statements of Operations and Condensed Consolidated Balance Sheets. Amounts labeled as “All other” in the following tables consist primarily of activities of parent organizations and include certain nominal amounts from our South American businesses that did not qualify for treatment as discontinued operations. SEGMENT INFORMATION (Dollars in millions) Three months ended June 30, Six months ended June 30, 2020 2019 2020 2019 REVENUES SDG&E $ 1,235 $ 1,094 $ 2,504 $ 2,239 SoCalGas 1,010 806 2,405 2,167 Sempra Mexico 275 318 584 701 Sempra Renewables — 3 — 10 Sempra LNG 69 86 192 227 All other — — 1 — Adjustments and eliminations (1 ) (1 ) (2 ) (1 ) Intersegment revenues (1) (62 ) (76 ) (129 ) (215 ) Total $ 2,526 $ 2,230 $ 5,555 $ 5,128 INTEREST EXPENSE SDG&E $ 103 $ 102 $ 204 $ 205 SoCalGas 40 34 80 68 Sempra Mexico 32 29 64 59 Sempra Renewables — — — 3 Sempra LNG 15 3 31 7 All other 102 110 211 219 Intercompany eliminations (18 ) (20 ) (36 ) (43 ) Total $ 274 $ 258 $ 554 $ 518 INTEREST INCOME SDG&E $ — $ 1 $ 1 $ 2 SoCalGas 1 1 2 1 Sempra Mexico 15 19 33 38 Sempra Renewables — 1 — 11 Sempra LNG 18 16 40 30 All other 3 — 3 1 Intercompany eliminations (15 ) (17 ) (30 ) (41 ) Total $ 22 $ 21 $ 49 $ 42 DEPRECIATION AND AMORTIZATION SDG&E $ 197 $ 189 $ 398 $ 375 SoCalGas 162 148 321 295 Sempra Mexico 47 46 94 90 Sempra LNG 3 3 5 5 All other 3 3 6 7 Total $ 412 $ 389 $ 824 $ 772 INCOME TAX EXPENSE (BENEFIT) SDG&E $ 70 $ 35 $ 128 $ 40 SoCalGas 49 (4 ) 101 15 Sempra Mexico 54 44 (253 ) 116 Sempra Renewables — 14 — 4 Sempra LNG 18 2 41 6 All other (23 ) (44 ) (56 ) (92 ) Total $ 168 $ 47 $ (39 ) $ 89 EQUITY EARNINGS (LOSSES) Equity earnings (losses), before income tax: Sempra Texas Utilities $ — $ 1 $ — $ 1 Sempra Renewables — 2 — 5 Sempra LNG 84 — 141 2 All other — (1 ) (100 ) (1 ) 84 2 41 7 Equity earnings, net of income tax: Sempra Texas Utilities 143 112 249 206 Sempra Mexico 6 4 206 6 149 116 455 212 Total $ 233 $ 118 $ 496 $ 219 SEGMENT INFORMATION (CONTINUED) (Dollars in millions) Three months ended June 30, Six months ended June 30, 2020 2019 2020 2019 EARNINGS (LOSSES) ATTRIBUTABLE TO COMMON SHARES SDG&E $ 193 $ 143 $ 455 $ 319 SoCalGas 146 30 449 294 Sempra Texas Utilities 144 113 249 207 Sempra Mexico 61 73 252 130 Sempra Renewables — 46 — 59 Sempra LNG 61 6 136 11 Discontinued operations 1,775 70 1,847 19 All other (141 ) (127 ) (389 ) (244 ) Total $ 2,239 $ 354 $ 2,999 $ 795 EXPENDITURES FOR PROPERTY, PLANT & EQUIPMENT SDG&E $ 850 $ 708 SoCalGas 885 659 Sempra Mexico 321 240 Sempra Renewables — 2 Sempra LNG 136 40 All other 6 2 Total $ 2,198 $ 1,651 June 30, 2020 December 31, 2019 ASSETS SDG&E $ 21,333 $ 20,560 SoCalGas 17,899 17,077 Sempra Texas Utilities 11,881 11,619 Sempra Mexico 10,763 9,938 Sempra LNG 4,049 3,901 Discontinued operations — 3,958 All other 4,666 749 Intersegment receivables (2,206 ) (2,137 ) Total $ 68,385 $ 65,665 EQUITY METHOD AND OTHER INVESTMENTS Sempra Texas Utilities $ 11,858 $ 11,619 Sempra Mexico 914 741 Sempra LNG 1,183 1,256 All other — 6 Total $ 13,955 $ 13,622 (1) Revenues for reportable segments include intersegment revenues of $2 million , $20 million , $28 million and $12 million for the three months ended June 30, 2020; $3 million , $38 million , $57 million and $31 million for the six months ended June 30, 2020 ; $2 million , $17 million , $32 million and $25 million for the three months ended June 30, 2019; and $3 million , $34 million , $60 million and $118 million for the six months ended June 30, 2019 for SDG&E, SoCalGas, Sempra Mexico and Sempra LNG, respectively. |
GENERAL INFORMATION AND OTHER_2
GENERAL INFORMATION AND OTHER FINANCIAL DATA (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Principles of Consolidation | PRINCIPLES OF CONSOLIDATION Sempra Energy Sempra Energy’s Condensed Consolidated Financial Statements include the accounts of Sempra Energy, a California-based energy-services holding company, and its consolidated subsidiaries and VIEs. Sempra Global is the holding company for most of our subsidiaries that are not subject to California or Texas utility regulation. Sempra Energy’s businesses were managed within six separate reportable segments until April 2019 and five separate reportable segments thereafter, which we discuss in Note 12. All references in these Notes to our reportable segments are not intended to refer to any legal entity with the same or similar name. SDG&E SDG&E’s Condensed Consolidated Financial Statements include its accounts and the accounts of a VIE of which SDG&E was the primary beneficiary until August 23, 2019, at which time SDG&E deconsolidated the VIE. SDG&E’s common stock is wholly owned by Enova Corporation, which is a wholly owned subsidiary of Sempra Energy. SoCalGas SoCalGas’ common stock is wholly owned by Pacific Enterprises, which is a wholly owned subsidiary of Sempra Energy. In this report, we refer to SDG&E and SoCalGas collectively as the California Utilities. |
Basis of Presentation | BASIS OF PRESENTATION This is a combined report of Sempra Energy, SDG&E and SoCalGas. We provide separate information for SDG&E and SoCalGas as required. References in this report to “we,” “us,” “our” and “Sempra Energy Consolidated” are to Sempra Energy and its consolidated entities, unless otherwise indicated by the context. We have eliminated intercompany accounts and transactions within the consolidated financial statements of each reporting entity. Throughout this report, we refer to the following as Condensed Consolidated Financial Statements and Notes to Condensed Consolidated Financial Statements when discussed together or collectively: ▪ the Condensed Consolidated Financial Statements and related Notes of Sempra Energy and its subsidiaries and VIEs; ▪ the Condensed Consolidated Financial Statements and related Notes of SDG&E and its VIE (until deconsolidation of Otay Mesa VIE in August 2019); and ▪ the Condensed Financial Statements and related Notes of SoCalGas. We have prepared the Condensed Consolidated Financial Statements in conformity with U.S. GAAP and in accordance with the interim-period-reporting requirements of Form 10-Q. Results of operations for interim periods are not necessarily indicative of results for the entire year or for any other period. We evaluated events and transactions that occurred after June 30, 2020 through the date the financial statements were issued and, in the opinion of management, the accompanying statements reflect all adjustments necessary for a fair presentation. These adjustments are only of a normal, recurring nature. All December 31, 2019 balance sheet information in the Condensed Consolidated Financial Statements has been derived from our audited 2019 Consolidated Financial Statements in the Annual Report. Certain information and note disclosures normally included in annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to the interim-period-reporting provisions of U.S. GAAP and the SEC. We describe our significant accounting policies in Note 1 of the Notes to Consolidated Financial Statements in the Annual Report and the impact of the adoption of new accounting standards on those policies in Note 2 below. We follow the same accounting policies for interim period reporting purposes. You should read the information in this report in conjunction with the Annual Report. |
Discontinued Operations | Discontinued Operations In January 2019, our board of directors approved a plan to sell our South American businesses based on our strategic focus on North America. We determined that these businesses, which previously constituted the Sempra South American Utilities segment, and certain activities associated with these businesses, met the held-for-sale criteria. These businesses are presented as discontinued operations, which we discuss further in Note 5, as the sales represent a strategic shift that will have a major effect on our operations and financial results. We completed the sales in the second quarter of 2020. Our discussions in the Notes below relate only to our continuing operations unless otherwise noted. |
Credit Loss Policy | For amounts due from unconsolidated affiliates and off-balance sheet arrangements, on a quarterly basis, we evaluate credit losses and record allowances for expected credit losses, if necessary, based on credit quality indicators such as external credit ratings, published default rate studies, the maturity date of the instrument and past delinquencies. However, we do not record allowances for expected credit losses related to accrued interest receivable on loans due from unconsolidated affiliates because we write off such amounts, if any, through a reversal of interest income in the period we determine such amounts are uncollectible. In the absence of external credit ratings, we may utilize an internally developed credit rating based on our analysis of a counterparty’s financial statements to determine our expected credit losses. We regularly monitor and evaluate credit losses and record allowances for expected credit losses, if necessary, for trade and other accounts receivable using a combination of factors, including past-due status based on contractual terms, trends in write-offs, the age of the receivable, historical and industry trends, counterparty creditworthiness, economic conditions and specific events, such as bankruptcies. We write off financial assets measured at amortized cost in the period in which we deem they are not recoverable. We record recoveries of amounts previously written off when it is known that they will be recovered. |
Variable Interest Entity Policy | VARIABLE INTEREST ENTITIES We consolidate a VIE if we are the primary beneficiary of the VIE. Our determination of whether we are the primary beneficiary is based on qualitative and quantitative analyses, which assess: ▪ the purpose and design of the VIE; ▪ the nature of the VIE’s risks and the risks we absorb; ▪ the power to direct activities that most significantly impact the economic performance of the VIE; and ▪ the obligation to absorb losses or the right to receive benefits that could be significant to the VIE. |
Earnings Per Share Policy | We discuss share-based compensation plans and related awards and the terms and conditions of Sempra Energy’s equity securities further in Notes 10, 13 and 14 of the Notes to Consolidated Financial Statements in the Annual Report. The potentially dilutive impact from the forward sale of our common stock pursuant to forward sale agreements that we entered into in 2018 and fully settled by the end of 2019 is reflected in our diluted EPS calculation using the treasury stock method until settlement. After settlement, those shares are included in weighted-average common shares outstanding for basic EPS. Basic EPS is calculated by dividing earnings attributable to common shares (from both continuing and discontinued operations) by the weighted-average number of common shares outstanding for the period. Diluted EPS includes the potential dilution of common stock equivalent shares that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. |
Interim period effective tax rate policy | Sempra Energy, SDG&E and SoCalGas record income taxes for interim periods utilizing a forecasted ETR anticipated for the full year. Unusual and infrequent items and items that cannot be reliably estimated are recorded in the interim period in which they occur, which can result in variability in the ETR. |
Flow-through rate-making treatment tax policy | For SDG&E and SoCalGas, the CPUC requires flow-through rate-making treatment for the current income tax benefit or expense arising from certain property-related and other temporary differences between the treatment for financial reporting and income tax, which will reverse over time. Under the regulatory accounting treatment required for these flow-through temporary differences, deferred income tax assets and liabilities are not recorded to deferred income tax expense, but rather to a regulatory asset or liability, which impacts the ETR. As a result, changes in the relative size of these items compared to pretax income, from period to period, can cause variations in the ETR. The following items are subject to flow-through treatment: ▪ repairs expenditures related to a certain portion of utility plant fixed assets ▪ the equity portion of AFUDC, which is non-taxable ▪ a portion of the cost of removal of utility plant assets ▪ utility self-developed software expenditures ▪ depreciation on a certain portion of utility plant assets ▪ state income taxes |
New Accounting Standards | NEW ACCOUNTING STANDARDS We describe below recent accounting pronouncements that have had or may have a significant effect on our financial condition, results of operations, cash flows or disclosures. ASU 2016-13, “Measurement of Credit Losses on Financial Instruments”: ASU 2016-13, as amended by subsequently issued ASUs, changes how entities measure credit losses for most financial assets and certain other instruments. The standard introduces an “expected credit loss” impairment model that requires immediate recognition of estimated credit losses expected to occur over the remaining life of most financial assets measured at amortized cost, including trade and other receivables, loan receivables and commitments and financial guarantees. ASU 2016-13 also requires use of an allowance to record estimated credit losses on available-for-sale debt securities and expands disclosure requirements regarding an entity’s assumptions, models and methods for estimating the credit losses. We adopted the standard on January 1, 2020 using a modified retrospective approach through a cumulative-effect adjustment to retained earnings. The adoption primarily impacted the expected credit losses associated with accounts receivable balances, amounts due from unconsolidated affiliates and off-balance sheet financial guarantees. There was an insignificant impact to SDG&E’s or SoCalGas’ balance sheets from adoption. The following table shows the initial (decreases) increases on Sempra Energy’s balance sheet at January 1, 2020 from adoption of ASU 2016-13. IMPACT FROM ADOPTION OF ASU 2016-13 (Dollars in millions) Sempra Energy Accounts receivable – trade, net $ (1 ) Due from unconsolidated affiliates – noncurrent (6 ) Deferred income tax assets 4 Other current liabilities 4 Deferred credits and other 2 Retained earnings (7 ) Other noncontrolling interests (2 ) ASU 2017-04, “Simplifying the Test for Goodwill Impairment”: ASU 2017-04 removes the second step of the goodwill impairment test, which requires a hypothetical purchase price allocation. An entity will be required to apply a one-step quantitative test and record the amount of goodwill impairment as the excess of a reporting unit’s carrying amount over its fair value, not to exceed the carrying amount of goodwill. We adopted ASU 2017-04 on January 1, 2020 and will apply the standard on a prospective basis to our goodwill impairment tests. ASU 2019-12, “Simplifying the Accounting for Income Taxes”: ASU 2019-12 simplifies certain areas of accounting for income taxes. In addition to other changes, this standard amends ASC 740, “Income Taxes,” as follows: ▪ removes the exception to the incremental approach for intraperiod tax allocation when there is a loss from continuing operations and income or a gain from other items, including discontinued operations or other comprehensive income; ▪ simplifies the recognition of deferred taxes related to basis differences as a result of ownership changes in investments; ▪ specifies an entity is not required to allocate the consolidated amount of current and deferred tax expense to a legal entity that is not subject to tax in its separate financial statements; and ▪ requires an entity to reflect the effect of an enacted change in tax laws or rates in the annual ETR computation in the interim period that includes the enactment date. For public entities, ASU 2019-12 is effective for fiscal years beginning after December 15, 2020, including interim periods therein, with early adoption permitted. The transition method related to the amendments made by ASU 2019-12 varies based on the nature of the change. We will adopt the standard on January 1, 2021 and do not expect it will have a material impact on our financial statements. ASU 2020-04, “Facilitation of the Effects of Reference Rate Reform on Financial Reporting”: ASU 2020-04 provides optional expedients and exceptions for applying U.S. GAAP to contract modifications that replace LIBOR or another reference rate affected by reference rate reform and to hedging relationships that reference LIBOR or another reference rate that is affected or expected to be affected by reference rate reform. ASU 2020-04 is effective March 12, 2020 and can be applied through December 31, 2022, with certain exceptions for hedging relationships that continue to exist after this date, and may be applied from January 1, 2020. For contract modifications, the standard allows entities to account for modifications as an event that does not require reassessment or remeasurement (i.e., as a continuation of the existing contract). The standard also allows entities to amend their formal designation and documentation of hedging relationships affected or expected to be affected by reference rate reform, without having to de-designate the hedging relationship. Entities may elect the optional expedients and exceptions on an individual hedging relationship basis and independently from one another. We elected the optional expedients for contract modifications. We elected the cash flow hedging expedients to disregard the potential discontinuation of a reference rate when assessing whether a hedged forecasted interest payment is probable and to disregard certain mismatches between the designated hedging instrument and the hedged item when assessing the hedge effectiveness. We are applying these expedients prospectively from January 1, 2020. Application of these expedients preserves the presentation of derivatives consistent with the past presentation. We are still evaluating the remaining optional expedients and exceptions for hedging relationships. |
Derivative Financial Instruments | HEDGE ACCOUNTING We may designate a derivative as a cash flow hedging instrument if it effectively converts anticipated cash flows associated with revenues or expenses to a fixed dollar amount. We may utilize cash flow hedge accounting for derivative commodity instruments, foreign currency instruments and interest rate instruments. Designating cash flow hedges is dependent on the business context in which the instrument is being used, the effectiveness of the instrument in offsetting the risk that the future cash flows of a given revenue or expense item may vary, and other criteria. ENERGY DERIVATIVES Our market risk is primarily related to natural gas and electricity price volatility and the specific physical locations where we transact. We use energy derivatives to manage these risks. The use of energy derivatives in our various businesses depends on the particular energy market, and the operating and regulatory environments applicable to the business, as follows: ▪ The California Utilities use natural gas and electricity derivatives, for the benefit of customers, with the objective of managing price risk and basis risks, and stabilizing and lowering natural gas and electricity costs. These derivatives include fixed price natural gas and electricity positions, options, and basis risk instruments, which are either exchange-traded or over-the-counter financial instruments, or bilateral physical transactions. This activity is governed by risk management and transacting activity plans that have been filed with and approved by the CPUC. Natural gas and electricity derivative activities are recorded as commodity costs that are offset by regulatory account balances and are recovered in rates. Net commodity cost impacts on the Condensed Consolidated Statements of Operations are reflected in Cost of Electric Fuel and Purchased Power or in Cost of Natural Gas. ▪ SDG&E is allocated and may purchase CRRs, which serve to reduce the regional electricity price volatility risk that may result from local transmission capacity constraints. Unrealized gains and losses do not impact earnings, as they are offset by regulatory account balances. Realized gains and losses associated with CRRs, which are recoverable in rates, are recorded in Cost of Electric Fuel and Purchased Power on the Condensed Consolidated Statements of Operations. ▪ Sempra Mexico and Sempra LNG may use natural gas and electricity derivatives, as appropriate, to optimize the earnings of their assets which support the following businesses: LNG, natural gas transportation and storage, and power generation. Gains and losses associated with undesignated derivatives are recognized in Energy-Related Businesses Revenues or in Energy-Related Businesses Cost of Sales on the Condensed Consolidated Statements of Operations. Certain of these derivatives may also be designated as cash flow hedges. Sempra Mexico may also use natural gas energy derivatives with the objective of managing price risk and lowering natural gas prices at its distribution operations. These derivatives, which are recorded as commodity costs that are offset by regulatory account balances and recovered in rates, are recognized in Cost of Natural Gas on the Condensed Consolidated Statements of Operations. ▪ From time to time, our various businesses, including the California Utilities, may use other energy derivatives to hedge exposures such as the price of vehicle fuel and GHG allowances. FOREIGN CURRENCY DERIVATIVES We utilize cross-currency swaps to hedge exposure related to Mexican peso-denominated debt at our Mexican subsidiaries and JVs. These cash flow hedges exchange our Mexican peso-denominated principal and interest payments into the U.S. dollar and swap Mexican variable interest rates for U.S. fixed interest rates. From time to time, Sempra Mexico and its JVs may use other foreign currency derivatives to hedge exposures related to cash flows associated with revenues from contracts denominated in Mexican pesos that are indexed to the U.S. dollar. We are also exposed to exchange rate movements at our Mexican subsidiaries and JVs, which have U.S. dollar-denominated cash balances, receivables, payables and debt (monetary assets and liabilities) that give rise to Mexican currency exchange rate movements for Mexican income tax purposes. They also have deferred income tax assets and liabilities denominated in the Mexican peso, which must be translated to U.S. dollars for financial reporting purposes. In addition, monetary assets and liabilities and certain nonmonetary assets and liabilities are adjusted for Mexican inflation for Mexican income tax purposes. We utilize foreign currency derivatives as a means to manage the risk of exposure to significant fluctuations in our income tax expense and equity earnings from these impacts; however, we generally do not hedge our deferred income tax assets and liabilities or for inflation. We also utilized foreign currency derivatives to hedge exposure to fluctuations in the Peruvian sol and Chilean peso related to the sales of our operations in Peru and Chile, respectively. In addition to the amounts noted above, we use commodity derivatives to manage risks associated with the physical locations of contractual obligations and assets, such as natural gas purchases and sales. INTEREST RATE DERIVATIVES We are exposed to interest rates primarily as a result of our current and expected use of financing. The California Utilities, as well as Sempra Energy and its other subsidiaries and JVs, periodically enter into interest rate derivative agreements intended to moderate our exposure to interest rates and to lower our overall costs of borrowing. 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. |
Fair Value Measurement Policy | A significant increase (decrease) in market electricity forward prices would result in a significantly higher (lower) fair value. We summarize long-term, fixed-price electricity position volumes in Note 8. Realized gains and losses associated with CRRs and long-term electricity positions, which are recoverable in rates, are recorded in Cost of Electric Fuel and Purchased Power on the Condensed Consolidated Statements of Operations. Because unrealized gains and losses are recorded as regulatory assets and liabilities, they do not affect earnings. Fair Value of Financial Instruments Inputs used to determine the fair value of CRRs and fixed-price electricity positions are reviewed and compared with market conditions to determine reasonableness. SDG&E expects all costs related to these instruments to be recoverable through customer rates. As such, there is no impact to earnings from changes in the fair value of these instruments. The impact associated with discounting is negligible. Because these auction prices are a less observable input, these instruments are classified as Level 3. The fair value of these instruments is derived from auction price differences between two locations. Positive values between two locations represent expected future reductions in congestion costs, whereas negative values between two locations represent expected future charges. Valuation of our CRRs is sensitive to a change in auction price. If auction prices at one location increase (decrease) relative to another location, this could result in a higher (lower) fair value measurement. We summarize CRR volumes in Note 8. We have not changed the valuation techniques or types of inputs we use to measure recurring fair value since December 31, 2019 . The fair value of commodity derivative assets and liabilities is presented in accordance with our netting policy, as we discuss in Note 8 under “Financial Statement Presentation.” The determination of fair values, shown in the tables below, incorporates various factors, including but not limited to, the credit standing of the counterparties involved and the impact of credit enhancements (such as cash deposits, letters of credit and priority interests). Our financial assets and liabilities that were accounted for at fair value on a recurring basis in the tables below include the following (other than a $5 million investment at December 31, 2019, measured at net asset value): ▪ Nuclear decommissioning trusts reflect the assets of SDG&E’s NDT, excluding cash balances. A third-party trustee values the trust assets using prices from a pricing service based on a market approach. We validate these prices by comparison to prices from other independent data sources. Securities are valued using quoted prices listed on nationally recognized securities exchanges or based on closing prices reported in the active market in which the identical security is traded (Level 1). Other securities are valued based on yields that are currently available for comparable securities of issuers with similar credit ratings (Level 2). ▪ For commodity contracts, interest rate derivatives and foreign exchange instruments, we primarily use a market or income approach with market participant assumptions to value these derivatives. Market participant assumptions include those about risk, and the risk inherent in the inputs to the valuation techniques. These inputs can be readily observable, market corroborated, or generally unobservable. We have exchange-traded derivatives that are valued based on quoted prices in active markets for the identical instruments (Level 1). We also may have other commodity derivatives that are valued using industry standard models that consider quoted forward prices for commodities, time value, current market and contractual prices for the underlying instruments, volatility factors, and other relevant economic measures (Level 2). Level 3 recurring items relate to CRRs and long-term, fixed-price electricity positions at SDG&E, as we discuss below in “Level 3 Information.” ▪ Rabbi Trust investments include marketable securities that we value using a market approach based on closing prices reported in the active market in which the identical security is traded (Level 1). These investments in marketable securities were negligible at both June 30, 2020 and December 31, 2019 . |
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. However, the uncertainties inherent in legal proceedings make it difficult to reasonably estimate the costs and effects of resolving these matters. Accordingly, actual costs incurred may differ materially from amounts accrued, may exceed applicable insurance coverage and could materially adversely affect our business, cash flows, results of operations, financial condition and prospects. Unless otherwise indicated, we are unable to estimate reasonably possible losses in excess of any amounts accrued. |
Gains and Losses on NDTs | Net unrealized gains and losses, as well as realized gains and losses that are reinvested in the NDT, are included in noncurrent Regulatory Liabilities on Sempra Energy’s and SDG&E’s Condensed Consolidated Balance Sheets. We determine the cost of securities in the trusts on the basis of specific identification. |
Lessee, Leases Policy | Some of our lease agreements contain nonlease components, which represent activities that transfer a separate good or service to the lessee. As the lessee for both operating and finance leases, we have elected to combine lease and nonlease components as a single lease component for real estate, fleet vehicles, power generating facilities, and pipelines, whereby fixed or in-substance fixed payments allocable to the nonlease component are accounted for as part of the related lease liability and ROU asset. As the lessor, we have elected to combine lease and nonlease components as a single lease component for real estate and power generating facilities if the timing and pattern of transfer of the lease and nonlease components are the same and the lease component would be classified as an operating lease if accounted for separately. |
Lessor, Leases Policy | Generally, we recognize operating lease income on a straight-line basis over the lease term and evaluate the underlying asset for impairment. Certain of our leases contain rate adjustments or are based on foreign currency exchange rates that may result in lease payments received that vary from one period to the next. |
Segment Information | We have five separately managed reportable segments, as follows: ▪ SDG&E provides electric service to San Diego and southern Orange counties and natural gas service to San Diego County. ▪ SoCalGas is a natural gas distribution utility, serving customers throughout most of Southern California and part of central California. ▪ Sempra Texas Utilities holds our investment in Oncor Holdings, which owns an 80.25 % interest in Oncor, a regulated electric transmission and distribution utility serving customers in the north-central, eastern, and western and panhandle regions of Texas; and our indirect, 50 % interest in Sharyland Holdings, which owns Sharyland Utilities, a regulated electric transmission and distribution utility serving customers near the Texas-Mexico border. As we discuss in Note 5 of the Notes to Consolidated Financial Statements in the Annual Report , we acquired our investment in Sharyland Holdings in May 2019. ▪ Sempra Mexico develops, owns and operates, or holds interests in, natural gas, electric, LNG, LPG, ethane and liquid fuels infrastructure, and has marketing operations for the purchase of LNG and the purchase and sale of natural gas in Mexico. ▪ Sempra LNG develops projects for the export of LNG, holds an interest in a facility for the export of LNG, owns and operates natural gas pipelines, and buys, sells and transports natural gas through its marketing operations, all within the U.S. and Mexico. In February 2019, we completed the sale of our natural gas storage assets at Mississippi Hub and Bay Gas. In April 2019, Sempra Renewables completed the sale of its remaining wind assets and investments. Upon completion of this sale, remaining nominal business activities at Sempra Renewables were subsumed into Parent and other and the Sempra Renewables segment ceased to exist. The tables below include amounts from Sempra Renewables up until cessation of the segment. As we discuss in Note 5, the financial information related to our businesses that constituted the Sempra South American Utilities segment is presented as discontinued operations for all periods presented. The information in the tables below excludes amounts from discontinued operations unless otherwise noted. We completed the sales of our discontinued operations in the second quarter of 2020. We evaluate each segment’s performance based on its contribution to Sempra Energy’s reported earnings and cash flows. The California Utilities operate in essentially separate service territories, under separate regulatory frameworks and rate structures set by the CPUC and the FERC. We describe the accounting policies of all of our segments in Note 1 of the Notes to Consolidated Financial Statements in the Annual Report. The cost of common services shared by the business segments is assigned directly or allocated based on various cost factors, depending on the nature of the service provided. Interest income and expense is recorded on intercompany loans. The loan balances and related interest are eliminated in consolidation. |
GENERAL INFORMATION AND OTHER_3
GENERAL INFORMATION AND OTHER FINANCIAL DATA (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Cash and Cash Equivalents | The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported on Sempra Energy’s Condensed Consolidated Balance Sheets to the sum of such amounts reported on Sempra Energy’s Condensed Consolidated Statements of Cash Flows. We provide information about the nature of restricted cash in Note 1 of the Notes to Consolidated Financial Statements in the Annual Report. RECONCILIATION OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH (Dollars in millions) June 30, December 31, 2020 2019 Sempra Energy Consolidated: Cash and cash equivalents $ 4,894 $ 108 Restricted cash, current 33 31 Restricted cash, noncurrent 3 3 Cash, cash equivalents and restricted cash in discontinued operations — 75 Total cash, cash equivalents and restricted cash on the Condensed Consolidated Statements of Cash Flows $ 4,930 $ 217 |
Accounts Receivable, Allowance for Credit Loss Table | We provide below allowances and changes in allowances for credit losses for trade and other accounts receivable, excluding allowances related to amounts due from unconsolidated affiliates and off-balance sheet arrangements, which we discuss separately below the table. TRADE AND OTHER ACCOUNTS RECEIVABLE – ALLOWANCES FOR CREDIT LOSSES (Dollars in millions) Sempra Energy Consolidated (1) SDG&E (2) SoCalGas (3) Allowances for credit losses at December 31, 2019 $ 29 $ 14 $ 15 Incremental allowance upon adoption of ASU 2016-13 1 — — Provisions for expected credit losses 21 9 12 Write-offs (7 ) (4 ) (3 ) Allowances for credit losses at June 30, 2020 $ 44 $ 19 $ 24 (1) Balance at June 30, 2020 includes $19 million and $25 million in Accounts Receivable – Trade, Net and Accounts Receivable – Other, Net, respectively. (2) Balance at June 30, 2020 includes $7 million and $12 million in Accounts Receivable – Trade, Net and Accounts Receivable – Other, Net, respectively. (3) Balance at June 30, 2020 includes $11 million and $13 million in Accounts Receivable – Trade, Net and Accounts Receivable – Other, Net, respectively. |
Financing Receivable, Allowance for Credit Loss | We provide below the changes in allowances for credit losses for loans and other amounts due from unconsolidated affiliates. AMOUNTS DUE FROM UNCONSOLIDATED AFFILIATES – ALLOWANCES FOR CREDIT LOSSES (Dollars in millions) Sempra Energy Consolidated (1) Allowances for credit losses at December 31, 2019 $ — Allowance established upon adoption of ASU 2016-13 6 Reduction to expected credit losses (3 ) Allowances for credit losses at June 30, 2020 $ 3 (1) Balance at June 30, 2020 includes negligible amounts and $3 million in Due from Unconsolidated Affiliates – Current and Due from Unconsolidated Affiliates – Noncurrent, respectively. |
Inventory Table | The components of inventories are as follows: INVENTORY BALANCES (Dollars in millions) Natural gas LNG Materials and supplies Total June December June December June December June December 30, 2020 31, 2019 30, 2020 31, 2019 30, 2020 31, 2019 30, 2020 31, 2019 Sempra Energy Consolidated $ 86 $ 110 $ 7 $ 9 $ 174 $ 158 $ 267 $ 277 SDG&E — 1 — — 101 93 101 94 SoCalGas 64 90 — — 54 46 118 136 |
Wildfire Fund Table | The following table summarizes the location of balances related to the Wildfire Fund on Sempra Energy’s and SDG&E’s Condensed Consolidated Balance Sheets and Condensed Consolidated Statements of Operations. WILDFIRE FUND (Dollars in millions) Location June 30, 2020 December 31, 2019 Wildfire Fund asset: Current Other Current Assets (1) $ 29 $ 29 Noncurrent Wildfire Fund 378 392 Wildfire Fund obligation: Current Other Current Liabilities $ 13 $ 13 Noncurrent Deferred Credits and Other 87 86 Three months ended Six months ended June 30, 2020 June 30, 2020 Amortization of Wildfire Fund asset Operation and Maintenance $ 7 $ 14 Accretion of Wildfire Fund obligation Operation and Maintenance 1 1 In December 2019, the CPUC approved the cost of capital and rate structures (shown in the table below) for SDG&E and SoCalGas that are effective January 1, 2020 and will remain in effect through December 31, 2022. SDG&E did not propose a 2020 cost of preferred equity in this proceeding. In January 2020, SDG&E filed an advice letter to continue the cost of preferred equity for test year 2020 at 6.22% , which the CPUC approved in March 2020. CPUC AUTHORIZED COST OF CAPITAL AND RATE STRUCTURE SDG&E SoCalGas Authorized weighting Return on rate base Weighted rate base Authorized weighting Return on Weighted 45.25 % 4.59 % 2.08 % Long-Term Debt 45.60 % 4.23 % 1.93 % 2.75 6.22 0.17 Preferred Equity 2.40 6.00 0.14 52.00 10.20 5.30 Common Equity 52.00 10.05 5.23 100.00 % 7.55 % 100.00 % 7.30 % |
Capitalized Financing Costs Table | The table below summarizes capitalized interest and AFUDC. CAPITALIZED FINANCING COSTS (Dollars in millions) Three months ended June 30, Six months ended June 30, 2020 2019 2020 2019 Sempra Energy Consolidated $ 50 $ 51 $ 98 $ 98 SDG&E 26 20 53 37 SoCalGas 14 11 25 22 |
Net Periodic Benefit Cost Table | The following three tables provide the components of net periodic benefit cost. NET PERIODIC BENEFIT COST – SEMPRA ENERGY CONSOLIDATED (Dollars in millions) Pension benefits Other postretirement benefits Three months ended June 30, 2020 2019 2020 2019 Service cost $ 33 $ 28 $ 4 $ 4 Interest cost 33 35 8 9 Expected return on assets (43 ) (36 ) (14 ) (17 ) Amortization of: Prior service cost 3 3 — — Actuarial loss (gain) 8 7 (2 ) (3 ) Settlement charges 4 22 — — Net periodic benefit cost (credit) 38 59 (4 ) (7 ) Regulatory adjustments 22 3 4 7 Total expense recognized $ 60 $ 62 $ — $ — Six months ended June 30, 2020 2019 2020 2019 Service cost $ 66 $ 55 $ 9 $ 8 Interest cost 65 70 16 18 Expected return on assets (85 ) (72 ) (27 ) (35 ) Amortization of: Prior service cost (credit) 6 6 (1 ) — Actuarial loss (gain) 17 21 (5 ) (5 ) Settlement charges 9 22 — — Net periodic benefit cost (credit) 78 102 (8 ) (14 ) Regulatory adjustments (6 ) (33 ) 8 14 Total expense recognized $ 72 $ 69 $ — $ — NET PERIODIC BENEFIT COST – SDG&E (Dollars in millions) Pension benefits Other postretirement benefits Three months ended June 30, 2020 2019 2020 2019 Service cost $ 8 $ 7 $ 1 $ 1 Interest cost 8 8 1 2 Expected return on assets (12 ) (9 ) (2 ) (3 ) Amortization of: Prior service cost — 1 — — Actuarial loss 1 3 — — Net periodic benefit cost 5 10 — — Regulatory adjustments 9 (1 ) — — Total expense recognized $ 14 $ 9 $ — $ — Six months ended June 30, 2020 2019 2020 2019 Service cost $ 16 $ 15 $ 2 $ 2 Interest cost 15 17 3 4 Expected return on assets (25 ) (20 ) (5 ) (6 ) Amortization of: Prior service cost 1 2 — 1 Actuarial loss (gain) 2 7 (1 ) (1 ) Net periodic benefit cost (credit) 9 21 (1 ) — Regulatory adjustments 6 (12 ) 1 — Total expense recognized $ 15 $ 9 $ — $ — NET PERIODIC BENEFIT COST – SOCALGAS (Dollars in millions) Pension benefits Other postretirement benefits Three months ended June 30, 2020 2019 2020 2019 Service cost $ 22 $ 18 $ 4 $ 3 Interest cost 22 22 6 7 Expected return on assets (27 ) (23 ) (11 ) (15 ) Amortization of: Prior service cost (credit) 2 2 (1 ) — Actuarial loss (gain) 7 2 (2 ) (2 ) Net periodic benefit cost (credit) 26 21 (4 ) (7 ) Regulatory adjustments 13 4 4 7 Total expense recognized $ 39 $ 25 $ — $ — Six months ended June 30, 2020 2019 2020 2019 Service cost $ 44 $ 34 $ 7 $ 6 Interest cost 44 45 12 14 Expected return on assets (54 ) (47 ) (21 ) (29 ) Amortization of: Prior service cost (credit) 4 4 (1 ) (1 ) Actuarial loss (gain) 13 11 (4 ) (4 ) Net periodic benefit cost (credit) 51 47 (7 ) (14 ) Regulatory adjustments (12 ) (21 ) 7 14 Total expense recognized $ 39 $ 26 $ — $ — |
Contributions to Benefit Plans Table | The following table shows our year-to-date contributions to pension and other postretirement benefit plans and the amounts we expect to contribute in 2020 . BENEFIT PLAN CONTRIBUTIONS (Dollars in millions) Sempra Energy Consolidated SDG&E SoCalGas Contributions through June 30, 2020: Pension plans $ 82 $ 13 $ 38 Other postretirement benefit plans 3 — — Total expected contributions in 2020: Pension plans $ 268 $ 53 $ 154 Other postretirement benefit plans 7 — 1 |
Earnings Per Share Computations Table | Basic EPS is calculated by dividing earnings attributable to common shares (from both continuing and discontinued operations) by the weighted-average number of common shares outstanding for the period. Diluted EPS includes the potential dilution of common stock equivalent shares that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. EARNINGS PER COMMON SHARE COMPUTATIONS (Dollars in millions, except per share amounts; shares in thousands) Three months ended June 30, Six months ended June 30, 2020 2019 2020 2019 Numerator for continuing operations: Income from continuing operations, net of income tax $ 528 $ 357 $ 1,395 $ 917 Earnings attributable to noncontrolling interests (26 ) (37 ) (169 ) (69 ) Preferred dividends (37 ) (35 ) (73 ) (71 ) Preferred dividends of subsidiary (1 ) (1 ) (1 ) (1 ) Earnings from continuing operations attributable to common shares for basic EPS 464 284 1,152 776 Add back dividends for dilutive mandatory convertible preferred stock (1) — — 52 — Earnings from continuing operations attributable to common shares for diluted EPS $ 464 $ 284 $ 1,204 $ 776 Numerator for discontinued operations: Income from discontinued operations, net of income tax $ 1,777 $ 78 $ 1,857 $ 36 Earnings attributable to noncontrolling interests (2 ) (8 ) (10 ) (17 ) Earnings from discontinued operations attributable to common shares $ 1,775 $ 70 $ 1,847 $ 19 Numerator for earnings: Earnings attributable to common shares for basic EPS $ 2,239 $ 354 $ 2,999 $ 795 Add back dividends for dilutive mandatory convertible preferred stock (1) — — 52 — Earnings attributable to common shares for diluted EPS $ 2,239 $ 354 $ 3,051 $ 795 Denominator: Weighted-average common shares outstanding for basic EPS (2) 293,060 274,987 292,925 274,831 Dilutive effect of stock options and RSUs (3) 1,095 1,541 1,199 1,255 Dilutive effect of common shares sold forward — 3,091 — 2,338 Dilutive effect of mandatory convertible preferred stock — — 13,838 — Weighted-average common shares outstanding for diluted EPS 294,155 279,619 307,962 278,424 Basic EPS: Earnings from continuing operations $ 1.58 $ 1.03 $ 3.93 $ 2.82 Earnings from discontinued operations $ 6.06 $ 0.26 $ 6.31 $ 0.07 Earnings $ 7.64 $ 1.29 $ 10.24 $ 2.89 Diluted EPS: Earnings from continuing operations $ 1.58 $ 1.01 $ 3.91 $ 2.78 Earnings from discontinued operations $ 6.03 $ 0.25 $ 6.00 $ 0.07 Earnings $ 7.61 $ 1.26 $ 9.91 $ 2.85 (1) In the six months ended June 30, 2020, due to the dilutive effect of Sempra Energy’s series A mandatory convertible preferred stock, the numerator used to calculate diluted EPS includes an add-back of dividends declared on the series A mandatory convertible preferred stock. (2) Includes 530 and 613 average fully vested RSUs held in our Deferred Compensation Plan for the three months ended June 30, 2020 and 2019, respectively, and 536 and 613 of such RSUs for the six months ended June 30, 2020 and 2019 , respectively. These fully vested RSUs are included in weighted-average common shares outstanding for basic EPS because there are no conditions under which the corresponding shares will not be issued. (3) Due to market fluctuations of both Sempra Energy common stock and the comparative indices used to determine the vesting percentage of our total shareholder return performance-based RSUs, which we discuss in Note 10 of the Notes to Consolidated Financial Statements in the Annual Report, dilutive RSUs may vary widely from period-to-period. |
Schedule of Accumulated Other Comprehensive Income (Loss) Table | The following tables present the changes in AOCI by component and amounts reclassified out of AOCI to net income, excluding amounts attributable to NCI. CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) BY COMPONENT (1) (Dollars in millions) Foreign Financial Pension Total Three months ended June 30, 2020 and 2019 Sempra Energy Consolidated (2) : Balance as of March 31, 2020 $ (745 ) $ (350 ) $ (95 ) $ (1,190 ) OCI before reclassifications (3) 17 (13 ) (14 ) (10 ) Amounts reclassified from AOCI (3) 645 2 11 658 Net OCI 662 (11 ) (3 ) 648 Balance as of June 30, 2020 $ (83 ) $ (361 ) $ (98 ) $ (542 ) Balance as of March 31, 2019 $ (532 ) $ (153 ) $ (132 ) $ (817 ) OCI before reclassifications (3) 14 (67 ) (7 ) (60 ) Amounts reclassified from AOCI (3) — 7 22 29 Net OCI 14 (60 ) 15 (31 ) Balance as of June 30, 2019 $ (518 ) $ (213 ) $ (117 ) $ (848 ) SDG&E: Balance as of March 31, 2020 $ (16 ) $ (16 ) Amounts reclassified from AOCI (3) 4 4 Net OCI 4 4 Balance as of June 30, 2020 $ (12 ) $ (12 ) Balance as of March 31, 2019 $ (12 ) $ (12 ) Amounts reclassified from AOCI 1 1 Net OCI 1 1 Balance as of June 30, 2019 $ (11 ) $ (11 ) SoCalGas: Balance as of March 31, 2020 $ (13 ) $ (10 ) $ (23 ) Amounts reclassified from AOCI — 1 1 Net OCI — 1 1 Balance as of June 30, 2020 $ (13 ) $ (9 ) $ (22 ) Balance as of March 31, 2019 $ (14 ) $ (10 ) $ (24 ) Amounts reclassified from AOCI (3) — 4 4 Net OCI — 4 4 Balance as of June 30, 2019 $ (14 ) $ (6 ) $ (20 ) (1) All amounts are net of income tax, if subject to tax, and exclude NCI. (2) Includes discontinued operations. (3) Pension and Other Postretirement Benefits and Total AOCI include $3 million in transfers of liabilities from SDG&E to Sempra Energy in 2020 and $4 million in transfers of liabilities from SoCalGas to Sempra Energy in 2019 related to the nonqualified pension plans. CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) BY COMPONENT (1) (CONTINUED) (Dollars in millions) Foreign currency translation adjustments Financial instruments Pension and other postretirement benefits Total accumulated other comprehensive income (loss) Six months ended June 30, 2020 and 2019 Sempra Energy Consolidated (2) : Balance as of December 31, 2019 $ (607 ) $ (215 ) $ (117 ) $ (939 ) OCI before reclassifications (3) (121 ) (167 ) 2 (286 ) Amounts reclassified from AOCI (3) 645 21 17 683 Net OCI 524 (146 ) 19 397 Balance as of June 30, 2020 $ (83 ) $ (361 ) $ (98 ) $ (542 ) Balance as of December 31, 2018 $ (564 ) $ (82 ) $ (118 ) $ (764 ) Adoption of ASU 2018-02 — (25 ) (17 ) (42 ) OCI before reclassifications (3) 46 (112 ) (6 ) (72 ) Amounts reclassified from AOCI (3) — 6 24 30 Net OCI 46 (106 ) 18 (42 ) Balance as of June 30, 2019 $ (518 ) $ (213 ) $ (117 ) $ (848 ) SDG&E: Balance as of December 31, 2019 $ (16 ) $ (16 ) Amounts reclassified from AOCI (3) 4 4 Net OCI 4 4 Balance as of June 30, 2020 $ (12 ) $ (12 ) Balance as of December 31, 2018 $ (10 ) $ (10 ) Adoption of ASU 2018-02 (2 ) (2 ) Amounts reclassified from AOCI 1 1 Net OCI 1 1 Balance as of June 30, 2019 $ (11 ) $ (11 ) SoCalGas: Balance as of December 31, 2019 $ (13 ) $ (10 ) $ (23 ) Amounts reclassified from AOCI — 1 1 Net OCI — 1 1 Balance as of June 30, 2020 $ (13 ) $ (9 ) $ (22 ) Balance as of December 31, 2018 $ (12 ) $ (8 ) $ (20 ) Adoption of ASU 2018-02 (2 ) (2 ) (4 ) Amounts reclassified from AOCI (3) — 4 4 Net OCI — 4 4 Balance as of June 30, 2019 $ (14 ) $ (6 ) $ (20 ) (1) All amounts are net of income tax, if subject to tax, and exclude NCI. (2) Includes discontinued operations. (3) Pension and Other Postretirement Benefits and Total AOCI include $3 million in transfers of liabilities from SDG&E to Sempra Energy in 2020 and $4 million in transfers of liabilities from SoCalGas to Sempra Energy in 2019 related to the nonqualified pension plans. |
Reclassifications out of AOCI Table | RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Dollars in millions) Details about accumulated other comprehensive income (loss) components Amounts reclassified Affected line item on Condensed Three months ended June 30, 2020 2019 Sempra Energy Consolidated: Foreign currency translation adjustments $ 645 $ — Income from Discontinued Operations, Net of Income Tax Financial instruments: Interest rate and foreign exchange instruments (1) $ 2 $ — Interest Expense (4 ) (2 ) Other Income (Expense), Net Interest rate instruments — 10 Gain on Sale of Assets Interest rate and foreign exchange instruments 1 — Equity Earnings Foreign exchange instruments 1 — Other Income (Expense), Net Total before income tax — 8 — (1 ) Income Tax (Expense) Benefit Net of income tax — 7 2 — Earnings Attributable to Noncontrolling Interests $ 2 $ 7 Pension and other postretirement benefits (2) : Amortization of actuarial loss $ 1 $ 2 Other Income (Expense), Net Amortization of actuarial loss 6 — Income from Discontinued Operations, Net of Income Tax Amortization of prior service cost 1 — Other Income (Expense), Net Settlement charges 4 22 Other Income (Expense), Net Total before income tax 12 24 (2 ) — Income from Discontinued Operations, Net of Income Tax (2 ) (6 ) Income Tax (Expense) Benefit Net of income tax $ 8 $ 18 Total reclassifications for the period, net of tax $ 655 $ 25 SDG&E: Financial instruments: Interest rate instruments (1) $ — $ 1 Interest Expense — (1 ) Earnings Attributable to Noncontrolling Interest $ — $ — Pension and other postretirement benefits (2) : Amortization of prior service cost $ 1 $ 1 Other Income, Net Total reclassifications for the period, net of tax $ 1 $ 1 SoCalGas: Pension and other postretirement benefits (2) : Amortization of prior service cost $ 1 $ — Other Income, Net Total reclassifications for the period, net of tax $ 1 $ — (1) Amounts in 2019 include Otay Mesa VIE. All of SDG&E’s interest rate derivative activity relates to Otay Mesa VIE. (2) Amounts are included in the computation of net periodic benefit cost (see “Pension and Other Postretirement Benefits” above). RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (CONTINUED) (Dollars in millions) Details about accumulated other comprehensive income (loss) components Amounts reclassified Affected line item on Condensed Six months ended June 30, 2020 2019 Sempra Energy Consolidated: Foreign currency translation adjustments $ 645 $ — Income from Discontinued Operations, Net of Income Tax Financial instruments: Interest rate and foreign exchange instruments (1) $ 4 $ 1 Interest Expense 37 (5 ) Other Income (Expense), Net Interest rate instruments — 10 Gain on Sale of Assets Interest rate and foreign exchange instruments 1 1 Equity Earnings Foreign exchange instruments (2 ) 1 Revenues: Energy-Related Businesses (1 ) — Other Income (Expense), Net Total before income tax 39 8 (12 ) (1 ) Income Tax (Expense) Benefit Net of income tax 27 7 (6 ) (1 ) Earnings Attributable to Noncontrolling Interests $ 21 $ 6 Pension and other postretirement benefits (2) : Amortization of actuarial loss $ 3 $ 4 Other Income (Expense), Net Amortization of actuarial loss 6 — Income from Discontinued Operations, Net of Income Tax Amortization of prior service cost 2 1 Other Income (Expense), Net Settlement charges 9 22 Other Income (Expense), Net Total before income tax 20 27 (2 ) — Income from Discontinued Operations, Net of Income Tax (4 ) (7 ) Income Tax (Expense) Benefit Net of income tax $ 14 $ 20 Total reclassifications for the period, net of tax $ 680 $ 26 SDG&E: Financial instruments: Interest rate instruments (1) $ — $ 2 Interest Expense — (2 ) Earnings Attributable to Noncontrolling Interest $ — $ — Pension and other postretirement benefits (2) : Amortization of prior service cost $ 1 $ 1 Other Income, Net Total reclassifications for the period, net of tax $ 1 $ 1 SoCalGas: Pension and other postretirement benefits (2) : Amortization of prior service cost $ 1 $ — Other Income, Net Total reclassifications for the period, net of tax $ 1 $ — (1) Amounts in 2019 include Otay Mesa VIE. All of SDG&E’s interest rate derivative activity relates to Otay Mesa VIE. (2) Amounts are included in the computation of net periodic benefit cost (see “Pension and Other Postretirement Benefits” above). |
Ownership Interests Held By Others Table | The following table provides information about NCI held by others in subsidiaries or entities consolidated by us and recorded in Other Noncontrolling Interests in Total Equity on Sempra Energy’s Condensed Consolidated Balance Sheets. OTHER NONCONTROLLING INTERESTS (Dollars in millions) Percent ownership held by noncontrolling interests Equity (deficit) held by noncontrolling interests June 30, December 31, June 30, December 31, Sempra Mexico: IEnova 33.2 % 33.4 % $ 1,738 $ 1,608 IEnova subsidiaries (1) 17.5 10.0 – 46.3 7 15 Sempra LNG: Liberty Gas Storage LLC — 24.6 — (13 ) ECA LNG JV 16.6 16.7 15 12 Parent and other: PXiSE Energy Solutions, LLC 20.0 20.0 — 1 Discontinued Operations: Chilquinta Energía subsidiaries (1) — 19.7 – 43.4 — 23 Luz del Sur — 16.4 — 205 Tecsur — 9.8 — 5 Total Sempra Energy $ 1,760 $ 1,856 (1) |
Transactions with Affiliates Table | We summarize amounts due from and to unconsolidated affiliates at Sempra Energy Consolidated, SDG&E and SoCalGas in the following table. AMOUNTS DUE FROM (TO) UNCONSOLIDATED AFFILIATES (Dollars in millions) June 30, December 31, Sempra Energy Consolidated: Total due from various unconsolidated affiliates – current, net of negligible allowance for credit losses at June 30, 2020 (1)(2) $ 91 $ 32 Total due from unconsolidated affiliates – noncurrent – Sempra Mexico – IMG JV – Note due March 15, 2022, net of allowance for credit losses of $3 at June 30, 2020 (2)(3) $ 603 $ 742 Total due to various unconsolidated affiliates – current $ (9 ) $ (5 ) Sempra Mexico (2) : TAG Pipelines Norte, S. de. R.L. de C.V.: Note due December 20, 2021 (4) $ (40 ) $ (39 ) 5.5% Note due January 9, 2024 (5) (66 ) — TAG JV – 5.74% Note due December 17, 2029 (5) (161 ) (156 ) Total due to unconsolidated affiliates – noncurrent $ (267 ) $ (195 ) SDG&E: Sempra Energy $ (164 ) $ (37 ) SoCalGas — (10 ) Various affiliates (9 ) (6 ) Total due to unconsolidated affiliates – current $ (173 ) $ (53 ) Income taxes due from Sempra Energy (6) $ 31 $ 130 SoCalGas: SDG&E $ — $ 10 Various affiliates 1 1 Total due from unconsolidated affiliates – current $ 1 $ 11 Sempra Energy $ (85 ) $ (45 ) Pacific Enterprises (50 ) — Various affiliates — (2 ) Total due to unconsolidated affiliates – current $ (135 ) $ (47 ) Income taxes due from Sempra Energy (6) $ 34 $ 152 (1) Amount at June 30, 2020 includes $25 million of outstanding principal and a negligible amount of accrued interest receivable from a U.S. dollar-denominated loan from IEnova to ESJ at a variable interest rate based on 1-month LIBOR plus 196 bps ( 2.13% at June 30, 2020 ) with an amended maturity date of December 31, 2020. Pursuant to the agreement, if ESJ is unable to meet certain conditions for an expansion project by December 31, 2020, IEnova and ESJ have the option to convert the loan to a 10 -year note. (2) Amounts include principal balances plus accumulated interest outstanding. (3) Mexican peso-denominated revolving line of credit for up to 14.2 billion Mexican pesos or approximately $614 million U.S. dollar-equivalent, at a variable interest rate based on the 91-day Interbank Equilibrium Interest Rate plus 220 bps ( 7.44 % at June 30, 2020 ), to finance construction of the natural gas marine pipeline. At June 30, 2020 , $2 million of accrued interest receivable is included in Due from Unconsolidated Affiliates – Current. (4) U.S. dollar-denominated loan at a variable interest rate based on 6-month LIBOR plus 290 bps ( 3.27 % at June 30, 2020 ). (5) U.S. dollar-denominated loan at a fixed interest rate. (6) SDG&E and SoCalGas are included in the consolidated income tax return of Sempra Energy and their respective income tax expense is computed as an amount equal to that which would result from each company having always filed a separate return. The following table summarizes revenues and cost of sales from unconsolidated affiliates. REVENUES AND COST OF SALES FROM UNCONSOLIDATED AFFILIATES (Dollars in millions) Three months ended June 30, Six months ended June 30, 2020 2019 2020 2019 Revenues: Sempra Energy Consolidated $ 10 $ 13 $ 22 $ 27 SDG&E 2 2 3 3 SoCalGas 20 17 38 34 Cost of Sales: Sempra Energy Consolidated $ 15 $ 14 $ 26 $ 28 SDG&E 22 20 39 40 SoCalGas — — — 4 |
Other Income and Expense Table | Other Income (Expense), Net, on the Condensed Consolidated Statements of Operations consists of the following: OTHER INCOME (EXPENSE), NET (Dollars in millions) Three months ended June 30, Six months ended June 30, 2020 2019 2020 2019 Sempra Energy Consolidated: Allowance for equity funds used during construction $ 31 $ 23 $ 62 $ 44 Investment gains (losses) (1) 30 11 (7 ) 37 Gains (losses) on interest rate and foreign exchange instruments, net 5 11 (148 ) 24 Foreign currency transaction gains (losses), net (2) 13 4 (110 ) 11 Non-service component of net periodic benefit (cost) credit (23 ) (30 ) 3 (6 ) Penalties related to billing practices OII — — — (8 ) Interest on regulatory balancing accounts, net 11 6 13 5 Sundry, net (5 ) 3 (5 ) 3 Total $ 62 $ 28 $ (192 ) $ 110 SDG&E: Allowance for equity funds used during construction $ 19 $ 15 $ 40 $ 27 Non-service component of net periodic benefit (cost) credit (5 ) (1 ) 3 8 Interest on regulatory balancing accounts, net 6 6 8 6 Sundry, net (2 ) (1 ) (2 ) — Total $ 18 $ 19 $ 49 $ 41 SoCalGas: Allowance for equity funds used during construction $ 10 $ 8 $ 18 $ 16 Non-service component of net periodic benefit (cost) credit (13 ) (4 ) 12 14 Penalties related to billing practices OII — — — (8 ) Interest on regulatory balancing accounts, net 5 — 5 (1 ) Sundry, net (4 ) (3 ) (7 ) (4 ) Total $ (2 ) $ 1 $ 28 $ 17 (1) Represents investment gains (losses) on dedicated assets in support of our executive retirement and deferred compensation plans. These amounts are partially offset by corresponding changes in compensation expense related to the plans, recorded in O&M on the Condensed Consolidated Statements of Operations. (2) Includes gains of $14 million and losses of $135 million i n the three months and six months ended June 30, 2020, respectively, and gains of $7 million and $17 million in the three months and six months ended June 30, 2019, respectively, from translation to U.S. dollars of a Mexican peso-denominated loan to IMG JV, which are offset by corresponding amounts included in Equity Earnings on the Condensed Consolidated Statements of Operations. |
Income Tax Expense and Effective Income Tax Rates Table | We provide our calculations of ETRs in the following table. INCOME TAX EXPENSE (BENEFIT) AND EFFECTIVE INCOME TAX RATES (Dollars in millions) Three months ended June 30, Six months ended June 30, 2020 2019 2020 2019 Sempra Energy Consolidated: Income tax expense (benefit) from continuing operations $ 168 $ 47 $ (39 ) $ 89 Income from continuing operations before income taxes and equity earnings $ 463 $ 286 $ 860 $ 787 Equity earnings, before income tax (1) 84 2 41 7 Pretax income $ 547 $ 288 $ 901 $ 794 Effective income tax rate 31 % 16 % (4 )% 11 % SDG&E: Income tax expense $ 70 $ 35 $ 128 $ 40 Income before income taxes $ 263 $ 181 $ 583 $ 363 Effective income tax rate 27 % 19 % 22 % 11 % SoCalGas: Income tax expense (benefit) $ 49 $ (4 ) $ 101 $ 15 Income before income taxes $ 196 $ 27 $ 551 $ 310 Effective income tax rate 25 % (15 )% 18 % 5 % (1) We discuss how we recognize equity earnings in Note 6 of the Notes to Consolidated Financial Statements in the Annual Report. |
NEW ACCOUNTING STANDARDS (Table
NEW ACCOUNTING STANDARDS (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Changes and Error Corrections [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | The following table shows the initial (decreases) increases on Sempra Energy’s balance sheet at January 1, 2020 from adoption of ASU 2016-13. IMPACT FROM ADOPTION OF ASU 2016-13 (Dollars in millions) Sempra Energy Accounts receivable – trade, net $ (1 ) Due from unconsolidated affiliates – noncurrent (6 ) Deferred income tax assets 4 Other current liabilities 4 Deferred credits and other 2 Retained earnings (7 ) Other noncontrolling interests (2 ) |
REVENUES (Tables)
REVENUES (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | The following table disaggregates our revenues from contracts with customers by major service line and market and provides a reconciliation to total revenues by segment. The majority of our revenue is recognized over time. DISAGGREGATED REVENUES (Dollars in millions) SDG&E SoCalGas Sempra Mexico Sempra LNG Consolidating adjustments and Parent and Other Sempra Energy Consolidated Three months ended June 30, 2020 By major service line: Utilities $ 1,050 $ 904 $ 10 $ — $ (22 ) $ 1,942 Energy-related businesses — — 174 9 (1 ) 182 Revenues from contracts with customers $ 1,050 $ 904 $ 184 $ 9 $ (23 ) $ 2,124 By market: Gas $ 138 $ 904 $ 133 $ 7 $ (21 ) $ 1,161 Electric 912 — 51 2 (2 ) 963 Revenues from contracts with customers $ 1,050 $ 904 $ 184 $ 9 $ (23 ) $ 2,124 Revenues from contracts with customers $ 1,050 $ 904 $ 184 $ 9 $ (23 ) $ 2,124 Utilities regulatory revenues 185 106 — — — 291 Other revenues — — 91 60 (40 ) 111 Total revenues $ 1,235 $ 1,010 $ 275 $ 69 $ (63 ) $ 2,526 Six months ended June 30, 2020 By major service line: Utilities $ 2,309 $ 2,448 $ 30 $ — $ (41 ) $ 4,746 Energy-related businesses — — 372 21 (8 ) 385 Revenues from contracts with customers $ 2,309 $ 2,448 $ 402 $ 21 $ (49 ) $ 5,131 By market: Gas $ 392 $ 2,448 $ 280 $ 18 $ (44 ) $ 3,094 Electric 1,917 — 122 3 (5 ) 2,037 Revenues from contracts with customers $ 2,309 $ 2,448 $ 402 $ 21 $ (49 ) $ 5,131 Revenues from contracts with customers $ 2,309 $ 2,448 $ 402 $ 21 $ (49 ) $ 5,131 Utilities regulatory revenues 195 (43 ) — — — 152 Other revenues — — 182 171 (81 ) 272 Total revenues $ 2,504 $ 2,405 $ 584 $ 192 $ (130 ) $ 5,555 DISAGGREGATED REVENUES (CONTINUED) (Dollars in millions) SDG&E SoCalGas Sempra Mexico Sempra Renewables Sempra LNG Consolidating adjustments and Parent and other Sempra Energy Consolidated Three months ended June 30, 2019 By major service line: Utilities $ 998 $ 877 $ 15 $ — $ — $ (20 ) $ 1,870 Energy-related businesses — — 202 1 21 (14 ) 210 Revenues from contracts with customers $ 998 $ 877 $ 217 $ 1 $ 21 $ (34 ) $ 2,080 By market: Gas $ 102 $ 877 $ 158 $ — $ 19 $ (29 ) $ 1,127 Electric 896 — 59 1 2 (5 ) 953 Revenues from contracts with customers $ 998 $ 877 $ 217 $ 1 $ 21 $ (34 ) $ 2,080 Revenues from contracts with customers $ 998 $ 877 $ 217 $ 1 $ 21 $ (34 ) $ 2,080 Utilities regulatory revenues 96 (71 ) — — — — 25 Other revenues — — 101 2 65 (43 ) 125 Total revenues $ 1,094 $ 806 $ 318 $ 3 $ 86 $ (77 ) $ 2,230 Six months ended June 30, 2019 By major service line: Utilities $ 2,234 $ 2,405 $ 42 $ — $ — $ (38 ) $ 4,643 Energy-related businesses — — 459 5 89 (73 ) 480 Revenues from contracts with customers $ 2,234 $ 2,405 $ 501 $ 5 $ 89 $ (111 ) $ 5,123 By market: Gas $ 341 $ 2,405 $ 356 $ — $ 86 $ (105 ) $ 3,083 Electric 1,893 — 145 5 3 (6 ) 2,040 Revenues from contracts with customers $ 2,234 $ 2,405 $ 501 $ 5 $ 89 $ (111 ) $ 5,123 Revenues from contracts with customers $ 2,234 $ 2,405 $ 501 $ 5 $ 89 $ (111 ) $ 5,123 Utilities regulatory revenues 5 (238 ) — — — — (233 ) Other revenues — — 200 5 138 (105 ) 238 Total revenues $ 2,239 $ 2,167 $ 701 $ 10 $ 227 $ (216 ) $ 5,128 |
Schedule of Timing of Remaining Performance Obligations | For contracts greater than one year, at June 30, 2020 , we expect to recognize revenue related to the fixed fee component of the consideration as shown below. SoCalGas did not have any such remaining performance obligations at June 30, 2020 . REMAINING PERFORMANCE OBLIGATIONS (1) (Dollars in millions) Sempra Energy Consolidated SDG&E 2020 (excluding first six months of 2020) $ 195 $ 2 2021 403 4 2022 406 4 2023 407 4 2024 348 4 Thereafter 4,678 71 Total revenues to be recognized $ 6,437 $ 89 (1) Excludes intercompany transactions. |
Schedule of Contract Liabilities | Activities within Sempra Energy’s and SDG&E’s contract liabilities are presented below. There were no contract liabilities at SDG&E in the six months ended June 30, 2019 or SoCalGas in the six months ended June 30, 2020 and 2019 . CONTRACT LIABILITIES (Dollars in millions) Sempra Energy Consolidated SDG&E Balance at January 1, 2020 $ (163 ) $ (91 ) Revenue from performance obligations satisfied during reporting period 2 2 Balance at June 30, 2020 (1) $ (161 ) $ (89 ) Balance at January 1, 2019 $ (70 ) Revenue from performance obligations satisfied during reporting period 1 Payments received in advance (3 ) Balance at June 30, 2019 $ (72 ) (1) I ncludes $4 million and $4 million in Other Current Liabilities a nd $157 million and $85 million in Deferred Credits and Other on the Sempra Energy and SDG&E Condensed Consolidated Balance Sheets, respectively. |
Schedule of Contract Accounts Receivable | The table below shows receivable balances associated with revenues from contracts with customers on our Condensed Consolidated Balance Sheets. RECEIVABLES FROM REVENUES FROM CONTRACTS WITH CUSTOMERS (Dollars in millions) June 30, 2020 December 31, 2019 Sempra Energy Consolidated: Accounts receivable – trade, net $ 943 $ 1,163 Accounts receivable – other, net 9 16 Due from unconsolidated affiliates – current (1) 4 5 Total $ 956 $ 1,184 SDG&E: Accounts receivable – trade, net $ 418 $ 398 Accounts receivable – other, net 7 5 Due from unconsolidated affiliates – current (1) 3 2 Total $ 428 $ 405 SoCalGas: Accounts receivable – trade, net $ 460 $ 710 Accounts receivable – other, net 2 11 Total $ 462 $ 721 (1) Amount is presented net of amounts due to unconsolidated affiliates on the Condensed Consolidated Balance Sheets, when right of offset exists. |
REGULATORY MATTERS (Tables)
REGULATORY MATTERS (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Regulated Operations [Abstract] | |
Schedule of Regulatory Assets | We show the details of regulatory assets and liabilities in the following table. REGULATORY ASSETS (LIABILITIES) (Dollars in millions) June 30, December 31, SDG&E: Fixed-price contracts and other derivatives $ 16 $ 8 Deferred income taxes refundable in rates (55 ) (108 ) Pension and other postretirement benefit plan obligations 95 103 Removal obligations (2,109 ) (2,056 ) Environmental costs 44 45 Sunrise Powerlink fire mitigation 119 121 Regulatory balancing accounts (1)(2) Commodity – electric 182 102 Gas transportation 6 22 Safety and reliability 74 77 Public purpose programs (150 ) (124 ) 2019 GRC retroactive impacts 84 111 Other balancing accounts 172 106 Other regulatory liabilities, net (2) (20 ) (153 ) Total SDG&E (1,542 ) (1,746 ) SoCalGas: Deferred income taxes refundable in rates (123 ) (203 ) Pension and other postretirement benefit plan obligations 393 400 Employee benefit costs 44 44 Removal obligations (714 ) (728 ) Environmental costs 38 40 Regulatory balancing accounts (1)(2) Commodity – gas, including transportation (180 ) (118 ) Safety and reliability 331 295 Public purpose programs (356 ) (273 ) 2019 GRC retroactive impacts 302 400 Other balancing accounts (22 ) (7 ) Other regulatory assets (liabilities), net (2) 19 (101 ) Total SoCalGas (268 ) (251 ) Sempra Mexico: Deferred income taxes recoverable in rates 83 83 Other regulatory assets 2 6 Total Sempra Energy Consolidated $ (1,725 ) $ (1,908 ) (1) At June 30, 2020 and December 31, 2019 , the noncurrent portion of regulatory balancing accounts – net undercollected for SDG&E was $120 million and $108 million , respectively, and for SoCalGas was $535 million and $500 million , respectively. (2) Includes regulatory assets earning a return. |
Schedule of Regulatory Liabilities | We show the details of regulatory assets and liabilities in the following table. REGULATORY ASSETS (LIABILITIES) (Dollars in millions) June 30, December 31, SDG&E: Fixed-price contracts and other derivatives $ 16 $ 8 Deferred income taxes refundable in rates (55 ) (108 ) Pension and other postretirement benefit plan obligations 95 103 Removal obligations (2,109 ) (2,056 ) Environmental costs 44 45 Sunrise Powerlink fire mitigation 119 121 Regulatory balancing accounts (1)(2) Commodity – electric 182 102 Gas transportation 6 22 Safety and reliability 74 77 Public purpose programs (150 ) (124 ) 2019 GRC retroactive impacts 84 111 Other balancing accounts 172 106 Other regulatory liabilities, net (2) (20 ) (153 ) Total SDG&E (1,542 ) (1,746 ) SoCalGas: Deferred income taxes refundable in rates (123 ) (203 ) Pension and other postretirement benefit plan obligations 393 400 Employee benefit costs 44 44 Removal obligations (714 ) (728 ) Environmental costs 38 40 Regulatory balancing accounts (1)(2) Commodity – gas, including transportation (180 ) (118 ) Safety and reliability 331 295 Public purpose programs (356 ) (273 ) 2019 GRC retroactive impacts 302 400 Other balancing accounts (22 ) (7 ) Other regulatory assets (liabilities), net (2) 19 (101 ) Total SoCalGas (268 ) (251 ) Sempra Mexico: Deferred income taxes recoverable in rates 83 83 Other regulatory assets 2 6 Total Sempra Energy Consolidated $ (1,725 ) $ (1,908 ) (1) At June 30, 2020 and December 31, 2019 , the noncurrent portion of regulatory balancing accounts – net undercollected for SDG&E was $120 million and $108 million , respectively, and for SoCalGas was $535 million and $500 million , respectively. (2) Includes regulatory assets earning a return. |
CPUC Authorized Cost of Capital and Rate Structure | The following table summarizes the location of balances related to the Wildfire Fund on Sempra Energy’s and SDG&E’s Condensed Consolidated Balance Sheets and Condensed Consolidated Statements of Operations. WILDFIRE FUND (Dollars in millions) Location June 30, 2020 December 31, 2019 Wildfire Fund asset: Current Other Current Assets (1) $ 29 $ 29 Noncurrent Wildfire Fund 378 392 Wildfire Fund obligation: Current Other Current Liabilities $ 13 $ 13 Noncurrent Deferred Credits and Other 87 86 Three months ended Six months ended June 30, 2020 June 30, 2020 Amortization of Wildfire Fund asset Operation and Maintenance $ 7 $ 14 Accretion of Wildfire Fund obligation Operation and Maintenance 1 1 In December 2019, the CPUC approved the cost of capital and rate structures (shown in the table below) for SDG&E and SoCalGas that are effective January 1, 2020 and will remain in effect through December 31, 2022. SDG&E did not propose a 2020 cost of preferred equity in this proceeding. In January 2020, SDG&E filed an advice letter to continue the cost of preferred equity for test year 2020 at 6.22% , which the CPUC approved in March 2020. CPUC AUTHORIZED COST OF CAPITAL AND RATE STRUCTURE SDG&E SoCalGas Authorized weighting Return on rate base Weighted rate base Authorized weighting Return on Weighted 45.25 % 4.59 % 2.08 % Long-Term Debt 45.60 % 4.23 % 1.93 % 2.75 6.22 0.17 Preferred Equity 2.40 6.00 0.14 52.00 10.20 5.30 Common Equity 52.00 10.05 5.23 100.00 % 7.55 % 100.00 % 7.30 % |
ACQUISITIONS, DIVESTITURES AN_2
ACQUISITIONS, DIVESTITURES AND DISCONTINUED OPERATIONS (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Business Combinations [Abstract] | |
Summarized Results from Discontinued Operations | Summarized results from discontinued operations were as follows: DISCONTINUED OPERATIONS (Dollars in millions) Three months ended June 30, Six months ended June 30, 2020 (1) 2019 2020 (1) 2019 Revenues $ 170 $ 403 $ 570 $ 824 Cost of sales (111 ) (251 ) (364 ) (516 ) Gain on sale of discontinued operations 2,915 — 2,915 — Operating expenses (20 ) (40 ) (66 ) (85 ) Interest and other (3 ) (6 ) (3 ) (9 ) Income before income taxes and equity earnings 2,951 106 3,052 214 Income tax expense (1,174 ) (29 ) (1,195 ) (180 ) Equity earnings — 1 — 2 Income from discontinued operations, net of income tax 1,777 78 1,857 36 Earnings attributable to noncontrolling interests (2 ) (8 ) (10 ) (17 ) Earnings from discontinued operations attributable to common shares $ 1,775 $ 70 $ 1,847 $ 19 (1) Results include activity until deconsolidation of our Peruvian businesses on April 24, 2020 and Chilean businesses on June 24 , 2020. The following table summarizes the carrying amounts of the major classes of assets and related liabilities classified as held for sale in discontinued operations. ASSETS HELD FOR SALE IN DISCONTINUED OPERATIONS (Dollars in millions) December 31, 2019 Cash and cash equivalents $ 74 Restricted cash (1) 1 Accounts receivable, net 303 Due from unconsolidated affiliates 2 Inventories 36 Other current assets 29 Current assets $ 445 Due from unconsolidated affiliates $ 54 Goodwill and other intangible assets 801 Property, plant and equipment, net 2,618 Other noncurrent assets 40 Noncurrent assets $ 3,513 Short-term debt $ 52 Accounts payable 201 Current portion of long-term debt and finance leases 85 Other current liabilities 106 Current liabilities $ 444 Long-term debt and finance leases $ 702 Deferred income taxes 284 Other noncurrent liabilities 66 Noncurrent liabilities $ 1,052 (1) Primarily represents funds held in accordance with Peruvian tax law. |
INVESTMENT IN UNCONSOLIDATED EN
INVESTMENT IN UNCONSOLIDATED ENTITIES (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Investments [Abstract] | |
Condensed Financial Statements | We provide summarized income statement information for Oncor Holdings in the following table. SUMMARIZED FINANCIAL INFORMATION – ONCOR HOLDINGS (Dollars in millions) Three months ended June 30, Six months ended June 30, 2020 2019 2020 2019 Operating revenues $ 1,090 $ 1,041 $ 2,162 $ 2,057 Operating expenses (767 ) (757 ) (1,568 ) (1,532 ) Income from operations 323 284 594 525 Interest expense (102 ) (93 ) (203 ) (179 ) Income tax expense (37 ) (30 ) (65 ) (53 ) Net income 173 136 302 250 Noncontrolling interest held by TTI (35 ) (27 ) (61 ) (50 ) Earnings attributable to Sempra Energy 138 109 241 200 |
DEBT AND CREDIT FACILITIES (Tab
DEBT AND CREDIT FACILITIES (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Line of Credit Facilities | PRIMARY U.S. COMMITTED LINES OF CREDIT (Dollars in millions) June 30, 2020 Total facility (1) Sempra Energy (2) $ 1,250 Sempra Global 3,185 SDG&E (3) 1,500 SoCalGas (3) 750 Total $ 6,685 (1) All amounts are unused and available as of June 30, 2020. (2) The facility also provides for issuance of $200 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. Subject to obtaining commitments from existing or new lenders and satisfaction of other specified conditions, Sempra Energy has the right to increase the letter of credit commitment up to $500 million . No letters of credit were outstanding at June 30, 2020 . (3) The facility also provides for issuance of $100 million of letters of credit on behalf of the borrowing utility with the amount of borrowings otherwise available under the facility reduced by the amount of outstanding letters of credit. Subject to obtaining commitments from existing or new lenders and satisfaction of other specified conditions, the borrowing utility has the right to increase the letter of credit commitment up to $250 million . No letters of credit were outstanding at June 30, 2020 . $1.8 billion at June 30, 2020 . The principal terms of these credit facilities are described below . FOREIGN COMMITTED LINES OF CREDIT (U.S. dollar equivalent in millions) June 30, 2020 Expiration date of facility Total facility Amounts outstanding Available unused credit February 2024 (1) $ 1,500 $ (1,264 ) $ 236 September 2021 (2) 280 (280 ) — Total $ 1,780 $ (1,544 ) $ 236 (1) Five -year revolving credit facility with a syndicate of 10 lenders. (2) Two -year revolving credit facility with The Bank of Nova Scotia. Withdrawals may be made for up to two years from September 23, 2019 in U.S. dollars. |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Commodity Derivative Volumes Table | The following table summarizes net energy derivative volumes. NET ENERGY DERIVATIVE VOLUMES (Quantities in millions) Commodity Unit of measure June 30, 2020 December 31, 2019 Sempra Energy Consolidated: Natural gas MMBtu 20 32 Electricity MWh 2 2 Congestion revenue rights MWh 42 48 SDG&E: Natural gas MMBtu 32 37 Electricity MWh 2 2 Congestion revenue rights MWh 42 48 SoCalGas: Natural gas MMBtu — 2 |
Notional Amounts of Derivatives Table | The following table presents the net notional amounts of our foreign currency derivatives, excluding JVs. FOREIGN CURRENCY DERIVATIVES (Dollars in millions) June 30, 2020 December 31, 2019 Notional amount Maturities Notional amount Maturities Sempra Energy Consolidated: Cross-currency swaps $ 306 2020-2023 $ 306 2020-2023 Other foreign currency derivatives 1,271 2020-2021 1,796 2020-2021 The following table presents the net notional amounts of our interest rate derivatives, excluding JVs. INTEREST RATE DERIVATIVES (Dollars in millions) June 30, 2020 December 31, 2019 Notional debt Maturities Notional debt Maturities Sempra Energy Consolidated: Cash flow hedges $ 1,517 2020-2034 $ 1,445 2020-2034 |
Derivative Instruments on the Condensed Consolidated Balance Sheets Table | The following tables provide the fair values of derivative instruments on the Condensed Consolidated Balance Sheets, including the amount of cash collateral receivables that were not offset because the cash collateral was in excess of liability positions. DERIVATIVE INSTRUMENTS ON THE CONDENSED CONSOLIDATED BALANCE SHEETS (Dollars in millions) June 30, 2020 Other current assets (1) Other long-term assets Other current liabilities Deferred credits and other Sempra Energy Consolidated: Derivatives designated as hedging instruments: Interest rate and foreign exchange instruments $ 9 $ — $ (27 ) $ (201 ) Derivatives not designated as hedging instruments: Foreign exchange instruments 16 — (41 ) — Associated offsetting foreign exchange instruments (16 ) — 16 — Commodity contracts not subject to rate recovery 107 8 (105 ) (11 ) Associated offsetting commodity contracts (103 ) (3 ) 103 3 Commodity contracts subject to rate recovery 21 78 (49 ) (44 ) Associated offsetting commodity contracts (4 ) (2 ) 4 2 Associated offsetting cash collateral — — 11 — Net amounts presented on the balance sheet 30 81 (88 ) (251 ) Additional cash collateral for commodity contracts not subject to rate recovery 27 — — — Additional cash collateral for commodity contracts subject to rate recovery 19 — — — Total (2) $ 76 $ 81 $ (88 ) $ (251 ) SDG&E: Derivatives not designated as hedging instruments: Commodity contracts subject to rate recovery $ 17 $ 78 $ (44 ) $ (43 ) Associated offsetting commodity contracts (4 ) (2 ) 4 2 Associated offsetting cash collateral — — 11 — Net amounts presented on the balance sheet 13 76 (29 ) (41 ) Additional cash collateral for commodity contracts subject to rate recovery 15 — — — Total (2) $ 28 $ 76 $ (29 ) $ (41 ) SoCalGas: Derivatives not designated as hedging instruments: Commodity contracts subject to rate recovery $ 4 $ — $ (5 ) $ (1 ) Net amounts presented on the balance sheet 4 — (5 ) (1 ) Additional cash collateral for commodity contracts subject to rate recovery 4 — — — Total $ 8 $ — $ (5 ) $ (1 ) (1) Included in Current Assets: Fixed-Price Contracts and Other Derivatives for SDG&E. (2) Normal purchase contracts previously measured at fair value are excluded. DERIVATIVE INSTRUMENTS ON THE CONDENSED CONSOLIDATED BALANCE SHEETS (Dollars in millions) December 31, 2019 Other current assets (1) Other long-term assets Other current liabilities Deferred credits and other Sempra Energy Consolidated: Derivatives designated as hedging instruments: Interest rate and foreign exchange instruments $ — $ 3 $ (17 ) $ (140 ) Derivatives not designated as hedging instruments: Foreign exchange instruments 41 — (20 ) — Associated offsetting foreign exchange instruments (20 ) — 20 — Commodity contracts not subject to rate recovery 34 11 (41 ) (10 ) Associated offsetting commodity contracts (32 ) (2 ) 32 2 Commodity contracts subject to rate recovery 41 76 (47 ) (47 ) Associated offsetting commodity contracts (6 ) (3 ) 6 3 Associated offsetting cash collateral — — 14 — Net amounts presented on the balance sheet 58 85 (53 ) (192 ) Additional cash collateral for commodity contracts not subject to rate recovery 43 — — — Additional cash collateral for commodity contracts subject to rate recovery 25 — — — Total (2) $ 126 $ 85 $ (53 ) $ (192 ) SDG&E: Derivatives not designated as hedging instruments: Commodity contracts subject to rate recovery $ 30 $ 76 $ (41 ) $ (47 ) Associated offsetting commodity contracts (4 ) (3 ) 4 3 Associated offsetting cash collateral — — 14 — Net amounts presented on the balance sheet 26 73 (23 ) (44 ) Additional cash collateral for commodity contracts subject to rate recovery 16 — — — Total (2) $ 42 $ 73 $ (23 ) $ (44 ) SoCalGas: Derivatives not designated as hedging instruments: Commodity contracts subject to rate recovery $ 11 $ — $ (6 ) $ — Associated offsetting commodity contracts (2 ) — 2 — Net amounts presented on the balance sheet 9 — (4 ) — Additional cash collateral for commodity contracts subject to rate recovery 9 — — — Total $ 18 $ — $ (4 ) $ — (1) Included in Current Assets: Fixed-Price Contracts and Other Derivatives for SDG&E. (2) Normal purchase contracts previously measured at fair value are excluded. |
Cash Flow Hedge Impact on the Condensed Consolidated Statements of Comprehensive Income Table | The table below includes the effects of derivative instruments designated as cash flow hedges on the Condensed Consolidated Statements of Operations and in OCI and AOCI: CASH FLOW HEDGE IMPACTS (Dollars in millions) Pretax gain (loss) recognized in OCI Pretax (loss) gain reclassified from AOCI into earnings Three months ended June 30, Three months ended June 30, 2020 2019 Location 2020 2019 Sempra Energy Consolidated: Interest rate and foreign exchange instruments (1) $ 5 $ (15 ) Interest Expense (1) $ (2 ) $ — Other Income (Expense), Net 4 2 Interest rate instruments — — Gain on Sale of Assets — (10 ) Interest rate and foreign exchange instruments (18 ) (92 ) Equity Earnings (1 ) — Foreign exchange instruments (5 ) (1 ) Revenues: Energy- Related Businesses — — Other Income (Expense), Net (1 ) — Total $ (18 ) $ (108 ) $ — $ (8 ) SDG&E: Interest rate instruments (1) $ — $ (1 ) Interest Expense (1) $ — $ (1 ) Six months ended June 30, Six months ended June 30, 2020 2019 Location 2020 2019 Sempra Energy Consolidated: Interest rate and foreign exchange instruments (1) $ (87 ) $ (18 ) Interest Expense (1) $ (4 ) $ (1 ) Other Income (Expense), Net (37 ) 5 Interest rate instruments — — Gain on Sale of Assets — (10 ) Interest rate and foreign (190 ) (160 ) Equity Earnings (1 ) (1 ) Foreign exchange instruments 16 (4 ) Revenues: Energy- 2 (1 ) Other Income (Expense), Net 1 — Total $ (261 ) $ (182 ) $ (39 ) $ (8 ) SDG&E: Interest rate instruments (1) $ — $ (1 ) Interest Expense (1) $ — $ (2 ) (1) Amounts include Otay Mesa VIE. All of SDG&E’s interest rate derivative activity relates to Otay Mesa VIE. On August 14, 2019, Otay Mesa Energy Center LLC paid in full its variable-rate loan and terminated its interest rate swaps. |
Fair Value Hedge Impact on the Condensed Consolidated Statements of Operations Table | The following table summarizes the effects of derivative instruments not designated as hedging instruments on the Condensed Consolidated Statements of Operations. UNDESIGNATED DERIVATIVE IMPACTS (Dollars in millions) Pretax gain (loss) on derivatives recognized in earnings Three months ended Six months ended June 30, Location 2020 2019 2020 2019 Sempra Energy Consolidated: Foreign exchange instruments Other Income (Expense), Net $ 2 $ 9 $ (112 ) $ 19 Commodity contracts not subject to rate recovery Revenues: Energy-Related Businesses 13 17 64 17 Commodity contracts subject to rate recovery Cost of Electric Fuel and Purchased Power 9 (27 ) — (25 ) Commodity contracts subject to rate recovery Cost of Natural Gas (3 ) — (6 ) 2 Total $ 21 $ (1 ) $ (54 ) $ 13 SDG&E: Commodity contracts subject to rate recovery Cost of Electric Fuel and Purchased Power $ 9 $ (27 ) $ — $ (25 ) SoCalGas: Commodity contracts subject to rate recovery Cost of Natural Gas $ (3 ) $ — $ (6 ) $ 2 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Recurring Fair Value Measures Table | RECURRING FAIR VALUE MEASURES – SEMPRA ENERGY CONSOLIDATED (Dollars in millions) Fair value at June 30, 2020 Level 1 Level 2 Level 3 Total Assets: Nuclear decommissioning trusts: Equity securities $ 356 $ 6 $ — $ 362 Debt securities: Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies 26 26 — 52 Municipal bonds — 343 — 343 Other securities — 294 — 294 Total debt securities 26 663 — 689 Total nuclear decommissioning trusts (1) 382 669 — 1,051 Interest rate and foreign exchange instruments — 9 — 9 Commodity contracts not subject to rate recovery — 9 — 9 Effect of netting and allocation of collateral (2) 27 — — 27 Commodity contracts subject to rate recovery 3 3 87 93 Effect of netting and allocation of collateral (2) 13 — 6 19 Total $ 425 $ 690 $ 93 $ 1,208 Liabilities: Interest rate and foreign exchange instruments $ — $ 253 $ — $ 253 Commodity contracts not subject to rate recovery — 10 — 10 Commodity contracts subject to rate recovery 11 6 70 87 Effect of netting and allocation of collateral (2) (11 ) — — (11 ) Total $ — $ 269 $ 70 $ 339 Fair value at December 31, 2019 Level 1 Level 2 Level 3 Total Assets: Nuclear decommissioning trusts: Equity securities $ 503 $ 6 $ — $ 509 Debt securities: Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies 46 11 — 57 Municipal bonds — 282 — 282 Other securities — 226 — 226 Total debt securities 46 519 — 565 Total nuclear decommissioning trusts (1) 549 525 — 1,074 Interest rate and foreign exchange instruments — 24 — 24 Commodity contracts not subject to rate recovery — 11 — 11 Effect of netting and allocation of collateral (2) 43 — — 43 Commodity contracts subject to rate recovery 5 8 95 108 Effect of netting and allocation of collateral (2) 11 8 6 25 Total $ 608 $ 576 $ 101 $ 1,285 Liabilities: Interest rate and foreign exchange instruments $ — $ 157 $ — $ 157 Commodity contracts not subject to rate recovery — 17 — 17 Commodity contracts subject to rate recovery 14 4 67 85 Effect of netting and allocation of collateral (2) (14 ) — — (14 ) Total $ — $ 178 $ 67 $ 245 (1) Excludes cash and cash equivalents. (2) Includes the effect of the contractual ability to settle contracts under master netting agreements and with cash collateral, as well as cash collateral not offset. RECURRING FAIR VALUE MEASURES – SDG&E (Dollars in millions) Fair value at June 30, 2020 Level 1 Level 2 Level 3 Total Assets: Nuclear decommissioning trusts: Equity securities $ 356 $ 6 $ — $ 362 Debt securities: Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies 26 26 — 52 Municipal bonds — 343 — 343 Other securities — 294 — 294 Total debt securities 26 663 — 689 Total nuclear decommissioning trusts (1) 382 669 — 1,051 Commodity contracts subject to rate recovery 1 1 87 89 Effect of netting and allocation of collateral (2) 9 — 6 15 Total $ 392 $ 670 $ 93 $ 1,155 Liabilities: Commodity contracts subject to rate recovery $ 11 $ — $ 70 $ 81 Effect of netting and allocation of collateral (2) (11 ) — — (11 ) Total $ — $ — $ 70 $ 70 Fair value at December 31, 2019 Level 1 Level 2 Level 3 Total Assets: Nuclear decommissioning trusts: Equity securities $ 503 $ 6 $ — $ 509 Debt securities: Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies 46 11 — 57 Municipal bonds — 282 — 282 Other securities — 226 — 226 Total debt securities 46 519 — 565 Total nuclear decommissioning trusts (1) 549 525 — 1,074 Commodity contracts subject to rate recovery 1 3 95 99 Effect of netting and allocation of collateral (2) 10 — 6 16 Total $ 560 $ 528 $ 101 $ 1,189 Liabilities: Commodity contracts subject to rate recovery $ 14 $ — $ 67 $ 81 Effect of netting and allocation of collateral (2) (14 ) — — (14 ) Total $ — $ — $ 67 $ 67 (1) Excludes cash and cash equivalents. (2) Includes the effect of the contractual ability to settle contracts under master netting agreements and with cash collateral, as well as cash collateral not offset. RECURRING FAIR VALUE MEASURES – SOCALGAS (Dollars in millions) Fair value at June 30, 2020 Level 1 Level 2 Level 3 Total Assets: Commodity contracts subject to rate recovery $ 2 $ 2 $ — $ 4 Effect of netting and allocation of collateral (1) 4 — — 4 Total $ 6 $ 2 $ — $ 8 Liabilities: Commodity contracts subject to rate recovery $ — $ 6 $ — $ 6 Total $ — $ 6 $ — $ 6 Fair value at December 31, 2019 Level 1 Level 2 Level 3 Total Assets: Commodity contracts subject to rate recovery $ 4 $ 5 $ — $ 9 Effect of netting and allocation of collateral (1) 1 8 — 9 Total $ 5 $ 13 $ — $ 18 Liabilities: Commodity contracts subject to rate recovery $ — $ 4 $ — $ 4 Total $ — $ 4 $ — $ 4 (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 | The table below sets forth reconciliations of changes in the fair value of CRRs and long-term, fixed-price electricity positions classified as Level 3 in the fair value hierarchy for Sempra Energy Consolidated and SDG&E. LEVEL 3 RECONCILIATIONS (1) (Dollars in millions) Three months ended June 30, 2020 2019 Balance at April 1 $ 16 $ 182 Realized and unrealized (losses) gains (9 ) (13 ) Allocated transmission instruments 1 — Settlements 9 7 Balance at June 30 $ 17 $ 176 Change in unrealized gains (losses) relating to instruments still held at June 30 $ (5 ) $ (3 ) Six months ended June 30, 2020 2019 Balance at January 1 $ 28 $ 179 Realized and unrealized (losses) gains (14 ) (8 ) Allocated transmission instruments 1 — Settlements 2 5 Balance at June 30 $ 17 $ 176 Change in unrealized gains (losses) relating to instruments still held at June 30 $ (13 ) $ 9 (1) Excludes the effect of the contractual ability to settle contracts under master netting agreements. |
Schedule of Fair Value Inputs | For the CRRs settling from January 1 to December 31, the auction price inputs, at a given location, were in the following ranges for the years indicated below: CONGESTION REVENUE RIGHTS AUCTION PRICE INPUTS Settlement year Price per MWh Median price per MWh 2020 $ (3.77 ) to $ 6.03 $ (1.58 ) 2019 (8.57 ) to 35.21 (2.94 ) LONG-TERM, FIXED-PRICE ELECTRICITY POSITIONS PRICE INPUTS Settlement year Price per MWh Weighted-average price per MWh 2020 $ 20.35 to $ 51.60 $ 34.68 2019 22.00 to 62.65 41.50 |
Fair Value of Financial Instruments Table | The following table provides the carrying amounts and fair values of certain other financial instruments that are not recorded at fair value on the Condensed Consolidated Balance Sheets. FAIR VALUE OF FINANCIAL INSTRUMENTS (Dollars in millions) June 30, 2020 Carrying Fair value Level 1 Level 2 Level 3 Total Sempra Energy Consolidated: Long-term amounts due from unconsolidated affiliates (1) $ 606 $ — $ 632 $ — $ 632 Long-term amounts due to unconsolidated affiliates 267 — 245 — 245 Total long-term debt (2) 21,720 — 24,270 — 24,270 SDG&E: Total long-term debt (3) $ 5,723 $ — $ 6,759 $ — $ 6,759 SoCalGas: Total long-term debt (4) $ 4,459 $ — $ 5,282 $ — $ 5,282 December 31, 2019 Carrying Fair value Level 1 Level 2 Level 3 Total Sempra Energy Consolidated: Long-term amounts due from unconsolidated affiliates $ 742 $ — $ 759 $ — $ 759 Long-term amounts due to unconsolidated affiliates 195 — 184 — 184 Total long-term debt (2) 21,247 — 22,638 26 22,664 SDG&E: Total long-term debt (3) $ 5,140 $ — $ 5,662 $ — $ 5,662 SoCalGas: Total long-term debt (4) $ 3,809 $ — $ 4,189 $ — $ 4,189 (1) Before allowances for credit losses of $3 million at June 30, 2020. (2) Before reductions of unamortized discount and debt issuance costs of $228 million and $225 million at June 30, 2020 and December 31, 2019, respectively, and excluding finance lease obligations of $1,328 million and $1,289 million at June 30, 2020 and December 31, 2019, respectively. (3) Before reductions of unamortized discount and debt issuance costs of $51 million and $48 million at June 30, 2020 and December 31, 2019, respectively, and excluding finance lease obligations of $1,278 million and $1,270 million at June 30, 2020 and December 31, 2019, respectively. (4) Before reductions of unamortized discount and debt issuance costs of $40 million and $34 million at June 30, 2020 and December 31, 2019, respectively, and excluding finance lease obligations of $50 million and $19 million at June 30, 2020 and December 31, 2019, respectively. |
SAN ONOFRE NUCLEAR GENERATING_2
SAN ONOFRE NUCLEAR GENERATING STATION (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Public Utilities, General Disclosures [Abstract] | |
Schedule of Nuclear Decommissioning Trusts Investments | The following table shows the fair values and gross unrealized gains and losses for the securities held in the NDT. We provide additional fair value disclosures for the NDT in Note 9 . NUCLEAR DECOMMISSIONING TRUSTS (Dollars in millions) Cost Gross unrealized gains Gross unrealized losses Estimated fair value At June 30, 2020: Debt securities: Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies (1) $ 51 $ 1 $ — $ 52 Municipal bonds (2) 327 17 (1 ) 343 Other securities (3) 281 15 (2 ) 294 Total debt securities 659 33 (3 ) 689 Equity securities 143 231 (12 ) 362 Cash and cash equivalents 11 — — 11 Total $ 813 $ 264 $ (15 ) $ 1,062 At December 31, 2019: Debt securities: Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies $ 57 $ — $ — $ 57 Municipal bonds 270 12 — 282 Other securities 218 9 (1 ) 226 Total debt securities 545 21 (1 ) 565 Equity securities 176 339 (6 ) 509 Cash and cash equivalents 8 — — 8 Total $ 729 $ 360 $ (7 ) $ 1,082 (1) Maturity dates are 2021-2050. (2) Maturity dates are 2020-2056. (3) Maturity dates are 2020-2072. |
Schedule of Sales of Securities By Nuclear Decommissioning Trusts | The following table shows the proceeds from sales of securities in the NDT and gross realized gains and losses on those sales. SALES OF SECURITIES IN THE NDT (Dollars in millions) Three months ended June 30, Six months ended June 30, 2020 2019 2020 2019 Proceeds from sales $ 245 $ 272 $ 797 $ 497 Gross realized gains 7 8 99 13 Gross realized losses (6 ) (1 ) (11 ) (3 ) |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Lease Cash Flow Activity Table | We provide supplemental noncash information for operating and finance leases below. SUPPLEMENTAL NONCASH INFORMATION (Dollars in millions) Six months ended June 30, 2020 Sempra Energy Consolidated SDG&E SoCalGas Increase in operating lease obligations for right-of-use assets $ 21 $ — $ 2 Increase in finance lease obligations for investment in PP&E 56 20 36 Six months ended June 30, 2019 Sempra Energy Consolidated SDG&E SoCalGas Increase in operating lease obligations for right-of-use assets $ 559 $ 146 $ 117 Increase in finance lease obligations for investment in PP&E 16 7 9 |
Schedule of Operating Lease Payments Received, Lease Income Table | We provide information below for leases for which we are the lessor. LESSOR INFORMATION ON THE CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS – SEMPRA ENERGY (Dollars in millions) Three months ended June 30, Six months ended June 30, 2020 2019 2020 2019 Fixed lease payments $ 47 $ 49 $ 97 $ 99 Variable lease payments — 2 — 6 Total revenues from operating leases (1) $ 47 $ 51 $ 97 $ 105 Depreciation expense $ 9 $ 10 $ 19 $ 19 (1) Included in Revenues: Energy-Related Businesses on the Condensed Consolidated Statements of Operations. |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Segment Reporting [Abstract] | |
Segment Information | The following tables show selected information by segment from our Condensed Consolidated Statements of Operations and Condensed Consolidated Balance Sheets. Amounts labeled as “All other” in the following tables consist primarily of activities of parent organizations and include certain nominal amounts from our South American businesses that did not qualify for treatment as discontinued operations. SEGMENT INFORMATION (Dollars in millions) Three months ended June 30, Six months ended June 30, 2020 2019 2020 2019 REVENUES SDG&E $ 1,235 $ 1,094 $ 2,504 $ 2,239 SoCalGas 1,010 806 2,405 2,167 Sempra Mexico 275 318 584 701 Sempra Renewables — 3 — 10 Sempra LNG 69 86 192 227 All other — — 1 — Adjustments and eliminations (1 ) (1 ) (2 ) (1 ) Intersegment revenues (1) (62 ) (76 ) (129 ) (215 ) Total $ 2,526 $ 2,230 $ 5,555 $ 5,128 INTEREST EXPENSE SDG&E $ 103 $ 102 $ 204 $ 205 SoCalGas 40 34 80 68 Sempra Mexico 32 29 64 59 Sempra Renewables — — — 3 Sempra LNG 15 3 31 7 All other 102 110 211 219 Intercompany eliminations (18 ) (20 ) (36 ) (43 ) Total $ 274 $ 258 $ 554 $ 518 INTEREST INCOME SDG&E $ — $ 1 $ 1 $ 2 SoCalGas 1 1 2 1 Sempra Mexico 15 19 33 38 Sempra Renewables — 1 — 11 Sempra LNG 18 16 40 30 All other 3 — 3 1 Intercompany eliminations (15 ) (17 ) (30 ) (41 ) Total $ 22 $ 21 $ 49 $ 42 DEPRECIATION AND AMORTIZATION SDG&E $ 197 $ 189 $ 398 $ 375 SoCalGas 162 148 321 295 Sempra Mexico 47 46 94 90 Sempra LNG 3 3 5 5 All other 3 3 6 7 Total $ 412 $ 389 $ 824 $ 772 INCOME TAX EXPENSE (BENEFIT) SDG&E $ 70 $ 35 $ 128 $ 40 SoCalGas 49 (4 ) 101 15 Sempra Mexico 54 44 (253 ) 116 Sempra Renewables — 14 — 4 Sempra LNG 18 2 41 6 All other (23 ) (44 ) (56 ) (92 ) Total $ 168 $ 47 $ (39 ) $ 89 EQUITY EARNINGS (LOSSES) Equity earnings (losses), before income tax: Sempra Texas Utilities $ — $ 1 $ — $ 1 Sempra Renewables — 2 — 5 Sempra LNG 84 — 141 2 All other — (1 ) (100 ) (1 ) 84 2 41 7 Equity earnings, net of income tax: Sempra Texas Utilities 143 112 249 206 Sempra Mexico 6 4 206 6 149 116 455 212 Total $ 233 $ 118 $ 496 $ 219 SEGMENT INFORMATION (CONTINUED) (Dollars in millions) Three months ended June 30, Six months ended June 30, 2020 2019 2020 2019 EARNINGS (LOSSES) ATTRIBUTABLE TO COMMON SHARES SDG&E $ 193 $ 143 $ 455 $ 319 SoCalGas 146 30 449 294 Sempra Texas Utilities 144 113 249 207 Sempra Mexico 61 73 252 130 Sempra Renewables — 46 — 59 Sempra LNG 61 6 136 11 Discontinued operations 1,775 70 1,847 19 All other (141 ) (127 ) (389 ) (244 ) Total $ 2,239 $ 354 $ 2,999 $ 795 EXPENDITURES FOR PROPERTY, PLANT & EQUIPMENT SDG&E $ 850 $ 708 SoCalGas 885 659 Sempra Mexico 321 240 Sempra Renewables — 2 Sempra LNG 136 40 All other 6 2 Total $ 2,198 $ 1,651 June 30, 2020 December 31, 2019 ASSETS SDG&E $ 21,333 $ 20,560 SoCalGas 17,899 17,077 Sempra Texas Utilities 11,881 11,619 Sempra Mexico 10,763 9,938 Sempra LNG 4,049 3,901 Discontinued operations — 3,958 All other 4,666 749 Intersegment receivables (2,206 ) (2,137 ) Total $ 68,385 $ 65,665 EQUITY METHOD AND OTHER INVESTMENTS Sempra Texas Utilities $ 11,858 $ 11,619 Sempra Mexico 914 741 Sempra LNG 1,183 1,256 All other — 6 Total $ 13,955 $ 13,622 (1) Revenues for reportable segments include intersegment revenues of $2 million , $20 million , $28 million and $12 million for the three months ended June 30, 2020; $3 million , $38 million , $57 million and $31 million for the six months ended June 30, 2020 ; $2 million , $17 million , $32 million and $25 million for the three months ended June 30, 2019; and $3 million , $34 million , $60 million and $118 million for the six months ended June 30, 2019 for SDG&E, SoCalGas, Sempra Mexico and Sempra LNG, respectively. |
GENERAL INFORMATION AND OTHER_4
GENERAL INFORMATION AND OTHER FINANCIAL DATA - PRINCIPLES OF CONSOLIDATION (Details) - segment | 1 Months Ended | 6 Months Ended | 14 Months Ended |
Apr. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Number of reportable segments | 6 | 5 | 5 |
GENERAL INFORMATION AND OTHER_5
GENERAL INFORMATION AND OTHER FINANCIAL DATA - CASH, CASH EQUIVALENTS AND RESTRICTED CASH (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Cash and cash equivalents | $ 4,894 | $ 108 | [1] | ||
Restricted cash, current | 33 | 31 | [1] | ||
Restricted cash, noncurrent | 3 | 3 | [1] | ||
Cash, cash equivalents and restricted cash in discontinued operations | 0 | 75 | |||
Total cash, cash equivalents and restricted cash on the Condensed Consolidated Statements of Cash Flows | 4,930 | 217 | $ 294 | $ 246 | |
Sempra South American Utilities [Member] | Discontinued Operations, Held-for-sale [Member] | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Cash, cash equivalents and restricted cash in discontinued operations | $ 4,600 | $ 74 | |||
[1] | Derived from audited financial statements. |
GENERAL INFORMATION AND OTHER_6
GENERAL INFORMATION AND OTHER FINANCIAL DATA - CREDIT LOSSES (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2020 | Jan. 01, 2020 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | $ 29 | ||
Provisions for expected credit losses | 21 | ||
Write-offs | (7) | ||
Ending balance | 44 | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 0 | ||
Reduction to expected credit losses | (3) | ||
Ending balance | 3 | ||
Allowance for credit losses | 3 | $ 3 | |
San Diego Gas and Electric Company [Member] | |||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 14 | ||
Provisions for expected credit losses | 9 | ||
Write-offs | (4) | ||
Ending balance | 19 | ||
Southern California Gas Company [Member] | |||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 15 | ||
Provisions for expected credit losses | 12 | ||
Write-offs | (3) | ||
Ending balance | 24 | ||
Cumulative Effect, Period of Adoption, Adjustment [Member] | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Allowance for credit losses | $ 6 | ||
Accounts Receivable, Trade, Net [Member] | |||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Ending balance | 19 | ||
Accounts Receivable, Trade, Net [Member] | San Diego Gas and Electric Company [Member] | |||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Ending balance | 7 | ||
Accounts Receivable, Trade, Net [Member] | Southern California Gas Company [Member] | |||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Ending balance | 11 | ||
Accounts receivable – other, net [Member] | |||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Ending balance | 25 | ||
Accounts receivable – other, net [Member] | San Diego Gas and Electric Company [Member] | |||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Ending balance | 12 | ||
Accounts receivable – other, net [Member] | Southern California Gas Company [Member] | |||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Ending balance | 13 | ||
Due from Unconsolidated Affiliates - Noncurrent [Member] | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Ending balance | 3 | ||
Allowance for credit losses | 3 | 3 | |
Sempra LNG [Member] | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Maximum exposure under guarantor obligations | 4,000 | ||
Off-Balance Sheet, Credit Loss, Liability [Roll Forward] | |||
Reduction of credit loss liability | $ (2) | ||
Sempra LNG [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | |||
Off-Balance Sheet, Credit Loss, Liability [Roll Forward] | |||
Liability for credit losses | $ 6 | ||
Sempra LNG [Member] | Other Current Liabilities [Member] | |||
Off-Balance Sheet, Credit Loss, Liability [Roll Forward] | |||
Liability for credit losses | $ 4 |
GENERAL INFORMATION AND OTHER_7
GENERAL INFORMATION AND OTHER FINANCIAL DATA - INVENTORIES (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 | |
Inventory [Line Items] | |||
Natural gas | $ 86 | $ 110 | |
LNG | 7 | 9 | |
Materials and supplies | 174 | 158 | |
Inventory | 267 | 277 | [1] |
San Diego Gas and Electric Company [Member] | |||
Inventory [Line Items] | |||
Natural gas | 0 | 1 | |
LNG | 0 | 0 | |
Materials and supplies | 101 | 93 | |
Inventory | 101 | 94 | [1] |
Southern California Gas Company [Member] | |||
Inventory [Line Items] | |||
Natural gas | 64 | 90 | |
LNG | 0 | 0 | |
Materials and supplies | 54 | 46 | |
Inventory | $ 118 | $ 136 | [1] |
[1] | Derived from audited financial statements. |
GENERAL INFORMATION AND OTHER_8
GENERAL INFORMATION AND OTHER FINANCIAL DATA - WILDFIRE FUND (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | ||
Loss Contingencies [Line Items] | |||||
Current portion of the Wildfire Fund asset | $ 29 | $ 29 | $ 29 | ||
Noncurrent portion of the Wildfire Fund asset | 378 | 378 | 392 | [1] | |
Wildfire Fund obligation in other current liabilities | 13 | 13 | 13 | ||
Wildfire Fund obligation in deferred credits and other | 87 | $ 87 | 86 | ||
Wildfire fund asset, amortization expense | 7 | 14 | |||
Wildfire fund obligation, accretion expense | 1 | 1 | |||
San Diego Gas and Electric Company [Member] | |||||
Loss Contingencies [Line Items] | |||||
Wildfire Fund asset | $ 451.5 | ||||
Estimated period of benefit | 15 years | ||||
Noncurrent portion of the Wildfire Fund asset | $ 378 | $ 378 | $ 392 | [1] | |
[1] | Derived from audited financial statements. |
GENERAL INFORMATION AND OTHER_9
GENERAL INFORMATION AND OTHER FINANCIAL DATA - CAPITALIZED FINANCING COSTS (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Capitalized Financing Costs Disclosure [Line Items] | ||||
Total capitalized financing costs | $ 50 | $ 51 | $ 98 | $ 98 |
San Diego Gas and Electric Company [Member] | ||||
Capitalized Financing Costs Disclosure [Line Items] | ||||
Total capitalized financing costs | 26 | 20 | 53 | 37 |
Southern California Gas Company [Member] | ||||
Capitalized Financing Costs Disclosure [Line Items] | ||||
Total capitalized financing costs | $ 14 | $ 11 | $ 25 | $ 22 |
GENERAL INFORMATION AND OTHE_10
GENERAL INFORMATION AND OTHER FINANCIAL DATA - VARIABLE INTEREST ENTITIES (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2020 | Dec. 31, 2019 | ||
Variable Interest Entities [Line Items] | |||
Property, plant and equipment | $ 37,945 | $ 36,452 | [1] |
Long-term debt and finance leases | 20,535 | 20,785 | [1] |
Equity method investment | 11,758 | 11,519 | [1] |
ASSETS | 68,385 | 65,665 | [1] |
Sempra Texas Utilities [Member] | Oncor Holdings [Member] | |||
Variable Interest Entities [Line Items] | |||
Equity method investment | 11,758 | 11,519 | |
Sempra LNG [Member] | Cameron LNG Holdings [Member] | |||
Variable Interest Entities [Line Items] | |||
Equity method investment | 1,183 | 1,256 | |
San Diego Gas and Electric Company [Member] | |||
Variable Interest Entities [Line Items] | |||
Property, plant and equipment | 17,510 | 16,967 | [1] |
Long-term debt and finance leases | 6,691 | 6,306 | [1] |
ASSETS | $ 21,333 | 20,560 | [1] |
Oncor Electric Delivery Company LLC. [Member] | Oncor Holdings [Member] | Sempra Texas Utilities [Member] | |||
Variable Interest Entities [Line Items] | |||
Ownership interest (as a percent) | 80.25% | ||
Sempra Texas Holdings Corp [Member] | Oncor Holdings [Member] | Sempra Texas Intermediate Holding Company LLC [Member] | |||
Variable Interest Entities [Line Items] | |||
Ownership percentage in consolidated entity | 100.00% | ||
Variable Interest Entity, Not Primary Beneficiary [Member] | San Diego Gas and Electric Company [Member] | |||
Variable Interest Entities [Line Items] | |||
Property, plant and equipment | $ 1,246 | 1,255 | |
Long-term debt and finance leases | $ 1,246 | 1,255 | |
Variable Interest Entity, Primary Beneficiary [Member] | Sempra Mexico [Member] | |||
Variable Interest Entities [Line Items] | |||
ASSETS | $ 126 | ||
[1] | Derived from audited financial statements. |
GENERAL INFORMATION AND OTHE_11
GENERAL INFORMATION AND OTHER FINANCIAL DATA - PENSION AND OTHER POSTRETIREMENT BENEFITS (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||||
Settlement charges | $ 22 | $ 4 | $ 9 | ||
Amortization of: | |||||
Settlement charges | $ 22 | 4 | 9 | ||
Pension benefits [Member] | |||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||||
Settlement charges | 4 | $ 22 | 9 | $ 22 | |
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost | 33 | 28 | 66 | 55 | |
Interest cost | 33 | 35 | 65 | 70 | |
Expected return on assets | (43) | (36) | (85) | (72) | |
Amortization of: | |||||
Prior service cost (credit) | 3 | 3 | 6 | 6 | |
Actuarial loss (gain) | 8 | 7 | 17 | 21 | |
Settlement charges | 4 | 22 | 9 | 22 | |
Net periodic benefit cost (credit) | 38 | 59 | 78 | 102 | |
Regulatory adjustments | 22 | 3 | (6) | (33) | |
Total expense recognized | 60 | 62 | 72 | 69 | |
Contributions by employer | 82 | ||||
Expected contributions in current fiscal year | 268 | 268 | |||
Pension benefits [Member] | San Diego Gas and Electric Company [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost | 8 | 7 | 16 | 15 | |
Interest cost | 8 | 8 | 15 | 17 | |
Expected return on assets | (12) | (9) | (25) | (20) | |
Amortization of: | |||||
Prior service cost (credit) | 0 | 1 | 1 | 2 | |
Actuarial loss (gain) | 1 | 3 | 2 | 7 | |
Net periodic benefit cost (credit) | 5 | 10 | 9 | 21 | |
Regulatory adjustments | 9 | (1) | 6 | (12) | |
Total expense recognized | 14 | 9 | 15 | 9 | |
Contributions by employer | 13 | ||||
Expected contributions in current fiscal year | 53 | 53 | |||
Pension benefits [Member] | Southern California Gas Company [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost | 22 | 18 | 44 | 34 | |
Interest cost | 22 | 22 | 44 | 45 | |
Expected return on assets | (27) | (23) | (54) | (47) | |
Amortization of: | |||||
Prior service cost (credit) | 2 | 2 | 4 | 4 | |
Actuarial loss (gain) | 7 | 2 | 13 | 11 | |
Net periodic benefit cost (credit) | 26 | 21 | 51 | 47 | |
Regulatory adjustments | 13 | 4 | (12) | (21) | |
Total expense recognized | 39 | 25 | 39 | 26 | |
Contributions by employer | 38 | ||||
Expected contributions in current fiscal year | 154 | 154 | |||
Other postretirement benefits [Member] | |||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||||
Settlement charges | 0 | 0 | 0 | 0 | |
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost | 4 | 4 | 9 | 8 | |
Interest cost | 8 | 9 | 16 | 18 | |
Expected return on assets | (14) | (17) | (27) | (35) | |
Amortization of: | |||||
Prior service cost (credit) | 0 | 0 | (1) | 0 | |
Actuarial loss (gain) | (2) | (3) | (5) | (5) | |
Settlement charges | 0 | 0 | 0 | 0 | |
Net periodic benefit cost (credit) | (4) | (7) | (8) | (14) | |
Regulatory adjustments | 4 | 7 | 8 | 14 | |
Total expense recognized | 0 | 0 | 0 | 0 | |
Contributions by employer | 3 | ||||
Expected contributions in current fiscal year | 7 | 7 | |||
Other postretirement benefits [Member] | San Diego Gas and Electric Company [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost | 1 | 1 | 2 | 2 | |
Interest cost | 1 | 2 | 3 | 4 | |
Expected return on assets | (2) | (3) | (5) | (6) | |
Amortization of: | |||||
Prior service cost (credit) | 0 | 0 | 0 | 1 | |
Actuarial loss (gain) | 0 | 0 | (1) | (1) | |
Net periodic benefit cost (credit) | 0 | 0 | (1) | 0 | |
Regulatory adjustments | 0 | 0 | 1 | 0 | |
Total expense recognized | 0 | 0 | 0 | 0 | |
Contributions by employer | 0 | ||||
Expected contributions in current fiscal year | 0 | 0 | |||
Other postretirement benefits [Member] | Southern California Gas Company [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost | 4 | 3 | 7 | 6 | |
Interest cost | 6 | 7 | 12 | 14 | |
Expected return on assets | (11) | (15) | (21) | (29) | |
Amortization of: | |||||
Prior service cost (credit) | (1) | 0 | (1) | (1) | |
Actuarial loss (gain) | (2) | (2) | (4) | (4) | |
Net periodic benefit cost (credit) | (4) | (7) | (7) | (14) | |
Regulatory adjustments | 4 | 7 | 7 | 14 | |
Total expense recognized | 0 | $ 0 | 0 | $ 0 | |
Contributions by employer | 0 | ||||
Expected contributions in current fiscal year | $ 1 | $ 1 |
GENERAL INFORMATION AND OTHE_12
GENERAL INFORMATION AND OTHER FINANCIAL DATA - RABBI TRUST (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Rabbi trust | $ 463 | $ 488 | [1] |
[1] | Derived from audited financial statements. |
GENERAL INFORMATION AND OTHE_13
GENERAL INFORMATION AND OTHER FINANCIAL DATA - EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2020 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||||
Income from continuing operations, net of income tax | $ 528 | $ 357 | $ 1,395 | $ 917 | |
Earnings attributable to noncontrolling interests | (26) | (37) | (169) | (69) | |
Preferred dividends | (37) | (35) | (73) | (71) | |
Preferred dividends of subsidiary | (1) | (1) | (1) | (1) | |
Earnings from continuing operations attributable to common shares for basic EPS | 464 | 284 | 1,152 | 776 | |
Add back dividends for dilutive mandatory convertible preferred stock | 0 | 0 | 52 | 0 | |
Earnings from continuing operations attributable to common shares for diluted EPS | 464 | 284 | 1,204 | 776 | |
Income from discontinued operations, net of income tax | 1,777 | 78 | 1,857 | 36 | |
Earnings attributable to noncontrolling interests | (2) | (8) | (10) | (17) | |
Earnings from discontinued operations attributable to common shares | 1,775 | 70 | 1,847 | 19 | |
Earnings attributable to common shares for basic EPS | 2,239 | 354 | 2,999 | 795 | |
Earnings attributable to common shares | $ 2,239 | $ 354 | $ 3,051 | $ 795 | |
Weighted-average common shares outstanding for basic EPS | 293,060,000 | 274,987,000 | 292,925,000 | 274,831,000 | |
Dilutive effect of stock options, RSAs and RSUs (in shares) | 1,095,000 | 1,541,000 | 1,199,000 | 1,255,000 | |
Dilutive effect of common stock forward shares (in shares) | 0 | 3,091,000 | 0 | 2,338,000 | |
Dilutive effect of mandatory convertible preferred stock (in shares) | 0 | 0 | 13,838,000 | 0 | |
Weighted-average common shares outstanding for diluted EPS (in shares) | 294,155,000 | 279,619,000 | 307,962,000 | 278,424,000 | |
Earnings (losses) from continuing operations attributable to common shares (in usd per share) | $ 1.58 | $ 1.03 | $ 3.93 | $ 2.82 | |
Earnings from discontinued operations attributable to common shares (in usd per share) | 6.06 | 0.26 | 6.31 | 0.07 | |
Earnings attributable to common shares (in usd per share) | 7.64 | 1.29 | 10.24 | 2.89 | |
Earnings (losses) from continuing operations attributable to common shares (in usd per share) | 1.58 | 1.01 | 3.91 | 2.78 | |
Earnings from discontinued operations attributable to common shares (in usd per share) | 6.03 | 0.25 | 6 | 0.07 | |
Earnings from continuing operations attributable to common shares (in usd per share) | $ 7.61 | $ 1.26 | $ 9.91 | $ 2.85 | |
Vested RSUs included in basic WASO (in shares) | 530,000 | 613,000 | 536,000 | 613,000 | |
Non-qualified stock options granted (in shares) | 154,860 | ||||
Convertible Preferred Stock [Member] | |||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||||
Antidilutive securities excluded from earnings per share (in shares) | 18,450,579 | 17,442,705 | 4,612,645 | 17,442,705 | |
Share-based Payment Arrangement, Option [Member] | |||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||||
Exercisable period | 3 years | ||||
Performance-based RSUs [Member] | |||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||||
Equity awards, granted (in shares) | 265,236 | ||||
Service-based RSUs [Member] | |||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||||
Equity awards, granted (in shares) | 107,539 | ||||
Stock options, RSAs and RSUs [Member] | |||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||||
Antidilutive securities excluded from earnings per share (in shares) | 216,922 | 4,740 | 235,589 | 160,563 |
GENERAL INFORMATION AND OTHE_14
GENERAL INFORMATION AND OTHER FINANCIAL DATA - CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||||
Beginning balance | [1] | $ 19,929 | |||||
OCI before reclassifications | $ (10) | $ (60) | (286) | $ (72) | |||
Amounts reclassified from AOCI | 658 | 29 | 683 | 30 | |||
Net OCI | 648 | (31) | 397 | (42) | |||
Ending balance | 23,606 | 23,606 | $ 19,929 | [1] | |||
Foreign currency translation adjustments [Member] | |||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||||
Beginning balance | (745) | (532) | (607) | (564) | (564) | ||
OCI before reclassifications | 17 | 14 | (121) | 46 | |||
Amounts reclassified from AOCI | 645 | 0 | 645 | 0 | |||
Net OCI | 662 | 14 | 524 | 46 | |||
Ending balance | (83) | (518) | (83) | (518) | (607) | ||
Financial instruments [Member] | |||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||||
Beginning balance | (350) | (153) | (215) | (82) | (82) | ||
OCI before reclassifications | (13) | (67) | (167) | (112) | |||
Amounts reclassified from AOCI | 2 | 7 | 21 | 6 | |||
Net OCI | (11) | (60) | (146) | (106) | |||
Ending balance | (361) | (213) | (361) | (213) | (215) | ||
Pension and other postretirement benefits [Member] | |||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||||
Beginning balance | (95) | (132) | (117) | (118) | (118) | ||
OCI before reclassifications | (14) | (7) | 2 | (6) | |||
Amounts reclassified from AOCI | 11 | 22 | 17 | 24 | |||
Net OCI | (3) | 15 | 19 | 18 | |||
Ending balance | (98) | (117) | (98) | (117) | (117) | ||
Total accumulated other comprehensive income (loss) [Member] | |||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||||
Beginning balance | (1,190) | (817) | (939) | (764) | (764) | ||
Ending balance | (542) | (848) | (542) | (848) | (939) | ||
San Diego Gas and Electric Company [Member] | |||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||||
Beginning balance | [1] | 7,100 | |||||
Amounts reclassified from AOCI | 4 | 1 | 4 | 1 | |||
Net OCI | 4 | 1 | 4 | 1 | |||
Ending balance | 7,359 | 7,359 | 7,100 | [1] | |||
San Diego Gas and Electric Company [Member] | Pension and other postretirement benefits [Member] | |||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||||
Beginning balance | (16) | (12) | (16) | (10) | (10) | ||
Amounts reclassified from AOCI | 4 | 1 | 4 | 1 | |||
Net OCI | 4 | 1 | 4 | 1 | |||
Ending balance | (12) | (11) | (12) | (11) | (16) | ||
San Diego Gas and Electric Company [Member] | Total accumulated other comprehensive income (loss) [Member] | |||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||||
Beginning balance | (16) | (12) | (16) | (10) | (10) | ||
Ending balance | (12) | (11) | (12) | (11) | (16) | ||
Southern California Gas Company [Member] | |||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||||
Beginning balance | [1] | 4,748 | |||||
Amounts reclassified from AOCI | 1 | 4 | 1 | 4 | |||
Net OCI | 1 | 4 | 1 | 4 | |||
Ending balance | 5,148 | 5,148 | 4,748 | [1] | |||
Southern California Gas Company [Member] | Financial instruments [Member] | |||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||||
Beginning balance | (13) | (14) | (13) | (12) | (12) | ||
Amounts reclassified from AOCI | 0 | 0 | 0 | 0 | |||
Net OCI | 0 | 0 | 0 | 0 | |||
Ending balance | (13) | (14) | (13) | (14) | (13) | ||
Southern California Gas Company [Member] | Pension and other postretirement benefits [Member] | |||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||||
Beginning balance | (10) | (10) | (10) | (8) | (8) | ||
Amounts reclassified from AOCI | 1 | 4 | 1 | 4 | |||
Net OCI | 1 | 4 | 1 | 4 | |||
Ending balance | (9) | (6) | (9) | (6) | (10) | ||
Southern California Gas Company [Member] | Total accumulated other comprehensive income (loss) [Member] | |||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||||
Beginning balance | (23) | (24) | (23) | (20) | (20) | ||
Ending balance | $ (22) | $ (20) | (22) | (20) | (23) | ||
Cumulative Effect, Period of Adoption, Adjustment [Member] | Foreign currency translation adjustments [Member] | |||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||||
Beginning balance | 0 | 0 | |||||
Cumulative Effect, Period of Adoption, Adjustment [Member] | Financial instruments [Member] | |||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||||
Beginning balance | (25) | (25) | |||||
Cumulative Effect, Period of Adoption, Adjustment [Member] | Pension and other postretirement benefits [Member] | |||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||||
Beginning balance | (17) | (17) | |||||
Cumulative Effect, Period of Adoption, Adjustment [Member] | Total accumulated other comprehensive income (loss) [Member] | |||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||||
Beginning balance | (42) | (42) | |||||
Cumulative Effect, Period of Adoption, Adjustment [Member] | San Diego Gas and Electric Company [Member] | Pension and other postretirement benefits [Member] | |||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||||
Beginning balance | (2) | (2) | |||||
Cumulative Effect, Period of Adoption, Adjustment [Member] | San Diego Gas and Electric Company [Member] | Total accumulated other comprehensive income (loss) [Member] | |||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||||
Beginning balance | (2) | (2) | |||||
Cumulative Effect, Period of Adoption, Adjustment [Member] | Southern California Gas Company [Member] | Financial instruments [Member] | |||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||||
Beginning balance | (2) | (2) | |||||
Cumulative Effect, Period of Adoption, Adjustment [Member] | Southern California Gas Company [Member] | Pension and other postretirement benefits [Member] | |||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||||
Beginning balance | (2) | (2) | |||||
Cumulative Effect, Period of Adoption, Adjustment [Member] | Southern California Gas Company [Member] | Total accumulated other comprehensive income (loss) [Member] | |||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||||
Beginning balance | $ (4) | (4) | |||||
San Diego Gas and Electric Company [Member] | Pension and other postretirement benefits [Member] | |||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||||
Amounts reclassified from AOCI | $ (3) | ||||||
Southern California Gas Company [Member] | Pension and other postretirement benefits [Member] | |||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||||
Amounts reclassified from AOCI | $ (4) | ||||||
[1] | Derived from audited financial statements. |
GENERAL INFORMATION AND OTHE_15
GENERAL INFORMATION AND OTHER FINANCIAL DATA - RECLASSIFICATION FROM ACCUMULATED OTHER COMPREHENSIVE INCOME (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Income from Discontinued Operations, Net of Income Tax | $ 1,775 | $ 70 | $ 1,847 | $ 19 |
Interest expense | (274) | (258) | (554) | (518) |
Other Income (Expense), Net | (62) | (28) | 192 | (110) |
Gain on sale of assets | 0 | 66 | 0 | 66 |
Equity earnings | 233 | 118 | 496 | 219 |
Energy-related businesses | 293 | 335 | 657 | 718 |
Income from continuing operations before income taxes and equity earnings | 463 | 286 | 860 | 787 |
Income tax (expense) benefit | (168) | (47) | 39 | (89) |
Net income | 2,305 | 435 | 3,252 | 953 |
Earnings attributable to noncontrolling interest | (28) | (45) | (179) | (86) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Earnings attributable to common shares | 655 | 25 | 680 | 26 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Foreign currency translation adjustments [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Income from Discontinued Operations, Net of Income Tax | 645 | 0 | 645 | 0 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Gain (Loss), Cash Flow Hedge, Including Noncontrolling Interest [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Income from continuing operations before income taxes and equity earnings | 0 | 8 | 39 | 8 |
Income tax (expense) benefit | 0 | (1) | (12) | (1) |
Net income | 0 | 7 | 27 | 7 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Gain (Loss), Cash Flow Hedge, Including Noncontrolling Interest [Member] | Interest rate and foreign exchange instruments [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Interest expense | 2 | 0 | 4 | 1 |
Other Income (Expense), Net | (4) | (2) | 37 | (5) |
Equity earnings | 1 | 0 | 1 | 1 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Gain (Loss), Cash Flow Hedge, Including Noncontrolling Interest [Member] | Interest rate instruments [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Gain on sale of assets | 0 | 10 | 0 | 10 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Gain (Loss), Cash Flow Hedge, Including Noncontrolling Interest [Member] | Foreign exchange instruments [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other Income (Expense), Net | 1 | 0 | (1) | 0 |
Energy-related businesses | (2) | 1 | ||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Gains (Losses) on Cash Flow hedges Attributable to Noncontrolling Interests [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Earnings attributable to noncontrolling interest | 2 | 0 | (6) | (1) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Gains (Losses) on Cash Flow hedges Attributable to Parent [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Earnings attributable to common shares | 2 | 7 | 21 | 6 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Gain (Loss) on Pension and Other Postretirement Benefits [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Income from Discontinued Operations, Net of Income Tax | 6 | 0 | 6 | 0 |
Other Income (Expense), Net | 1 | 2 | 3 | 4 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Defined Benefit Plans Adjustment, Net Prior Service Attributable to Parent [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other Income (Expense), Net | 1 | 0 | 2 | 1 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Defined Benefit Plans Adjustment, Net Settlements Attributable to Parent [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other Income (Expense), Net | 4 | 22 | 9 | 22 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Pension and Other Postretirement Benefits [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Income from Discontinued Operations, Net of Income Tax | (2) | 0 | (2) | 0 |
Income from continuing operations before income taxes and equity earnings | 12 | 24 | 20 | 27 |
Income tax (expense) benefit | (2) | (6) | (4) | (7) |
Net income | 8 | 18 | 14 | 20 |
San Diego Gas and Electric Company [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Interest expense | (103) | (102) | (204) | (205) |
Other Income (Expense), Net | (18) | (19) | (49) | (41) |
Income from continuing operations before income taxes and equity earnings | 263 | 181 | 583 | 363 |
Income tax (expense) benefit | (70) | (35) | (128) | (40) |
Net income | 193 | 146 | 455 | 323 |
Earnings attributable to noncontrolling interest | 0 | (3) | 0 | (4) |
San Diego Gas and Electric Company [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Earnings attributable to common shares | 1 | 1 | 1 | 1 |
San Diego Gas and Electric Company [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Gain (Loss), Cash Flow Hedge, Including Noncontrolling Interest [Member] | Interest rate instruments [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Interest expense | 0 | 1 | 0 | 2 |
San Diego Gas and Electric Company [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | Gains (Losses) on Cash Flow hedges Attributable to Noncontrolling Interests [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Earnings attributable to noncontrolling interest | 0 | (1) | 0 | (2) |
San Diego Gas and Electric Company [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | Gains (Losses) on Cash Flow hedges Attributable to Parent [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Earnings attributable to common shares | 0 | 0 | 0 | 0 |
San Diego Gas and Electric Company [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Defined Benefit Plans Adjustment, Net Prior Service Attributable to Parent [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other Income, Net | 1 | 1 | 1 | 1 |
Southern California Gas Company [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Interest expense | (40) | (34) | (80) | (68) |
Other Income (Expense), Net | 2 | (1) | (28) | (17) |
Income from continuing operations before income taxes and equity earnings | 196 | 27 | 551 | 310 |
Income tax (expense) benefit | (49) | 4 | (101) | (15) |
Net income | 147 | 31 | 450 | 295 |
Southern California Gas Company [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Earnings attributable to common shares | 1 | 0 | 1 | 0 |
Southern California Gas Company [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Defined Benefit Plans Adjustment, Net Prior Service Attributable to Parent [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other Income, Net | $ 1 | $ 0 | $ 1 | $ 0 |
GENERAL INFORMATION AND OTHE_16
GENERAL INFORMATION AND OTHER FINANCIAL DATA - SHAREHOLDER'S EQUITY AND NONCONTROLLING INTEREST (Details) | Aug. 04, 2020$ / sharesshares | Jul. 01, 2020USD ($) | Jun. 19, 2020USD ($)$ / sharesshares | Mar. 30, 2020USD ($) | Feb. 07, 2019USD ($) | Aug. 03, 2020shares | Jul. 31, 2020USD ($) | Jun. 30, 2020USD ($)$ / sharesshares | Mar. 31, 2020USD ($) | Jun. 30, 2019USD ($)shares | Jun. 30, 2020USD ($)$ / sharesshares | Jun. 30, 2019USD ($)shares | Jul. 06, 2020USD ($)shares | Dec. 31, 2019 | Dec. 31, 2018 | Sep. 11, 2007USD ($)shares |
Subsidiary, Sale of Stock [Line Items] | ||||||||||||||||
Stock repurchase program, authorized amount | $ 2,000,000,000 | |||||||||||||||
Stock repurchase program, authorized number of shares (in shares) | shares | 40,000,000 | |||||||||||||||
Stock repurchase program, remaining authorized amount | $ 500,000,000 | $ 500,000,000 | ||||||||||||||
Stock repurchase program, remaining authorized number of shares (in shares) | shares | 12,000,000 | 12,000,000 | ||||||||||||||
Repurchases of common stock | $ 7,000,000 | $ 4,000,000 | $ 64,000,000 | $ 18,000,000 | ||||||||||||
Equitization of long-term debt for deficit held by NCI | $ 22,000,000 | |||||||||||||||
LA Storage [Member] | Liberty Gas Storage, LLC [Member] | ||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||||||||
Percent ownership held by noncontrolling interests | 100.00% | |||||||||||||||
Liberty Gas Storage, LLC [Member] | Sempra LNG [Member] | ||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||||||||
Payment to acquire remaining interest in Bay Gas | $ 7,000,000 | |||||||||||||||
Equitization of long-term debt for deficit held by NCI | 22,000,000 | |||||||||||||||
Increase from equity of noncontrolling interest | $ 2,000,000 | |||||||||||||||
Bay Gas [Member] | Sempra LNG [Member] | ||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||||||||
Payment to acquire remaining interest in Bay Gas | $ 20,000,000 | |||||||||||||||
Sale of interest | 100.00% | |||||||||||||||
Sempra Mexico [Member] | Infraestructura Energética Nova [Member] | ||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||||||||
Common stock repurchased (in shares) | shares | 3,694,156 | 600,000 | 2,200,000 | |||||||||||||
Repurchases of common stock | $ 10,000,000 | $ 9,000,000 | $ 2,000,000 | $ 8,000,000 | ||||||||||||
Sempra Mexico [Member] | Infraestructura Energética Nova [Member] | ||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||||||||
Ownership interest (as a percent) | 66.80% | 66.60% | 66.80% | 66.60% | 66.60% | 66.50% | ||||||||||
Sempra Mexico [Member] | ICM Ventures Holdings B.V. [Member] | ||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||||||||
Ownership interest (as a percent) | 82.50% | 53.70% | ||||||||||||||
Sempra LNG [Member] | Infraestructura Energética Nova [Member] | ||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||||||||
Percent ownership held by noncontrolling interests | 50.00% | 50.00% | ||||||||||||||
Sempra LNG [Member] | Liberty Gas Storage, LLC [Member] | ||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||||||||
Percent ownership held by noncontrolling interests | 24.60% | 0.00% | 0.00% | 24.60% | ||||||||||||
Sempra LNG [Member] | Ownership Interests Held By Others, Bay Gas Storage Company [Member] | ||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||||||||
Percent ownership held by noncontrolling interests | 9.10% | |||||||||||||||
Sempra LNG [Member] | Liberty Gas Storage, LLC [Member] | Liberty Gas Storage, LLC [Member] | ||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||||||||
Percent ownership held by noncontrolling interests | 100.00% | 100.00% | ||||||||||||||
Series A Preferred Stock [Member] | Sempra Energy [Member] | ||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||||||||
Stock price trigger amount | $ / shares | $ 129.668 | |||||||||||||||
Conversion ratio (in shares) | 0.7712 | |||||||||||||||
Conversion price | $ / shares | $ 100 | $ 100 | ||||||||||||||
Series C Preferred Stock [Member] | ||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||||||||
Preferred stock, shares issued (in shares) | shares | 900,000 | |||||||||||||||
Preferred stock, fixed rate (as a percent) | $ / shares | $ 0.04875 | |||||||||||||||
Preferred stock, redemption price per share (in dollars per share) | $ / shares | $ 1,000 | |||||||||||||||
Proceeds from issuance of preferred stock | $ 889,000,000 | |||||||||||||||
Preferred stock, discount | 11,000,000 | |||||||||||||||
Preferred stock, liquidation preference | $ 1,000 | |||||||||||||||
At Occurrence of Ratings Event | Series C Preferred Stock [Member] | ||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||||||||
Preferred stock, redemption price per share (in dollars per share) | $ / shares | $ 1,020 | |||||||||||||||
Preferred stock, liquidation preference price per share (as a percent) | 102.00% | |||||||||||||||
Prior to October 15, 2025 | Series C Preferred Stock [Member] | ||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||||||||
Preferred stock, dividend rate (as a percent) | 4.875% | |||||||||||||||
Preferred stock, liquidation preference per share (in dollars per share) | $ / shares | $ 1,000 | |||||||||||||||
On and after October 15 2025 | Series C Preferred Stock [Member] | ||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||||||||
Preferred stock, dividend rate (as a percent) | 4.55% | |||||||||||||||
Preferred stock, liquidation preference per share (in dollars per share) | $ / shares | $ 1,000 | |||||||||||||||
Subsequent Event [Member] | ||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||||||||
Stock repurchase program, authorized amount | $ 2,000,000,000 | |||||||||||||||
Stock repurchase program, authorized number of shares (in shares) | shares | 25,000,000 | |||||||||||||||
Accelerated share repurchase program, prepaid amount | $ 500,000,000 | |||||||||||||||
Share repurchase program, number of shares repurchased (in shares) | shares | 4,089,375 | |||||||||||||||
Treasury Stock Acquired, Average Cost Per Share | $ / shares | $ 122.27 | |||||||||||||||
Subsequent Event [Member] | Sempra Mexico [Member] | Infraestructura Energética Nova [Member] | ||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||||||||
Common stock repurchased (in shares) | shares | 12,604,826 | |||||||||||||||
Repurchases of common stock | $ 36,000,000 | |||||||||||||||
Minimum [Member] | Series A Preferred Stock [Member] | Sempra Energy [Member] | ||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||||||||
Stock price trigger amount | $ / shares | $ 129.668 | |||||||||||||||
Conversion ratio (in shares) | 0.7712 | |||||||||||||||
Maximum [Member] | Series A Preferred Stock [Member] | Sempra Energy [Member] | ||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||||||||
Stock price trigger amount | $ / shares | $ 105.843 | |||||||||||||||
Conversion ratio (in shares) | 0.9448 |
GENERAL INFORMATION AND OTHE_17
GENERAL INFORMATION AND OTHER FINANCIAL DATA - OTHER NONCONTROLLING INTERESTS (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Mar. 30, 2020 | Dec. 31, 2019 | |
Noncontrolling Interest [Line Items] | ||||
Other noncontrolling interests | $ 1,760 | $ 1,856 | [1] | |
IEnova [Member] | Sempra Mexico [Member] | ||||
Noncontrolling Interest [Line Items] | ||||
Percent ownership held by noncontrolling interests | 33.20% | 33.40% | ||
Other noncontrolling interests | $ 1,738 | $ 1,608 | ||
IEnova subsidiaries [Member] | Sempra Mexico [Member] | ||||
Noncontrolling Interest [Line Items] | ||||
Percent ownership held by noncontrolling interests | 17.50% | |||
Other noncontrolling interests | $ 7 | $ 15 | ||
IEnova subsidiaries [Member] | Sempra Mexico [Member] | Minimum [Member] | ||||
Noncontrolling Interest [Line Items] | ||||
Percent ownership held by noncontrolling interests | 10.00% | |||
IEnova subsidiaries [Member] | Sempra Mexico [Member] | Maximum [Member] | ||||
Noncontrolling Interest [Line Items] | ||||
Percent ownership held by noncontrolling interests | 46.30% | |||
Liberty Gas Storage, LLC [Member] | Sempra LNG [Member] | ||||
Noncontrolling Interest [Line Items] | ||||
Percent ownership held by noncontrolling interests | 0.00% | 24.60% | 24.60% | |
Other noncontrolling interests | $ 0 | $ (13) | ||
ECA LNG Proposed Liquefaction Project [Member] | Sempra LNG [Member] | ||||
Noncontrolling Interest [Line Items] | ||||
Percent ownership held by noncontrolling interests | 16.60% | 16.70% | ||
Other noncontrolling interests | $ 15 | $ 12 | ||
PXISE Energy Solutions LLC [Member] | Parent and Other [Member] | ||||
Noncontrolling Interest [Line Items] | ||||
Percent ownership held by noncontrolling interests | 20.00% | 20.00% | ||
Other noncontrolling interests | $ 0 | $ 1 | ||
Discontinued Operations, Held-for-sale [Member] | Chilquinta Energía subsidiaries [Member] | ||||
Noncontrolling Interest [Line Items] | ||||
Percent ownership held by noncontrolling interests | 0.00% | |||
Other noncontrolling interests | $ 0 | $ 23 | ||
Discontinued Operations, Held-for-sale [Member] | Chilquinta Energía subsidiaries [Member] | Minimum [Member] | ||||
Noncontrolling Interest [Line Items] | ||||
Percent ownership held by noncontrolling interests | 19.70% | |||
Discontinued Operations, Held-for-sale [Member] | Chilquinta Energía subsidiaries [Member] | Maximum [Member] | ||||
Noncontrolling Interest [Line Items] | ||||
Percent ownership held by noncontrolling interests | 43.40% | |||
Discontinued Operations, Held-for-sale [Member] | Luz del Sur [Member] | ||||
Noncontrolling Interest [Line Items] | ||||
Percent ownership held by noncontrolling interests | 0.00% | 16.40% | ||
Other noncontrolling interests | $ 0 | $ 205 | ||
Discontinued Operations, Held-for-sale [Member] | Tecsur [Member] | ||||
Noncontrolling Interest [Line Items] | ||||
Percent ownership held by noncontrolling interests | 0.00% | 9.80% | ||
Other noncontrolling interests | $ 0 | $ 5 | ||
[1] | Derived from audited financial statements. |
GENERAL INFORMATION AND OTHE_18
GENERAL INFORMATION AND OTHER FINANCIAL DATA - DUE TO DUE FROM AFFILIATES (Details) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2020USD ($) | Dec. 31, 2019USD ($) | Jun. 30, 2020MXN ($) | ||
Related Party Transaction [Line Items] | ||||
Due from unconsolidated affiliates - current | $ 91,000,000 | $ 32,000,000 | [1] | |
Due from unconsolidated affiliates - noncurrent | 603,000,000 | 742,000,000 | [1] | |
Due to unconsolidated affiliates, current | (9,000,000) | (5,000,000) | [1] | |
Due to unconsolidated affiliates - noncurrent | $ (267,000,000) | $ (195,000,000) | [1] | |
TAG Pipeline Norte [Member] | ||||
Related Party Transaction [Line Items] | ||||
Interest rate on due from affiliate, noncurrent | 3.27% | |||
TAG Pipeline Norte [Member] | LIBOR [Member] | ||||
Related Party Transaction [Line Items] | ||||
Spread on variable rate (as a percent) | 2.90% | 2.90% | ||
ESJ joint venture [Member] | ||||
Related Party Transaction [Line Items] | ||||
Note receivable, term | 10 years | |||
ESJ joint venture [Member] | LIBOR [Member] | ||||
Related Party Transaction [Line Items] | ||||
Spread on variable rate (as a percent) | 1.96% | |||
Interest rate on due from affiliate, noncurrent | 2.13% | |||
San Diego Gas and Electric Company [Member] | ||||
Related Party Transaction [Line Items] | ||||
Due to unconsolidated affiliates, current | $ (173,000,000) | $ (53,000,000) | [1] | |
Maximum borrowing capacity | 1,500,000,000 | |||
San Diego Gas and Electric Company [Member] | Due to/from Sempra Energy [Member] | ||||
Related Party Transaction [Line Items] | ||||
Due to unconsolidated affiliates, current | (164,000,000) | (37,000,000) | ||
Income taxes due (to) from Sempra Energy | 31,000,000 | 130,000,000 | ||
San Diego Gas and Electric Company [Member] | Due to/from SoCalGas [Member] | ||||
Related Party Transaction [Line Items] | ||||
Due to unconsolidated affiliates, current | 0 | (10,000,000) | ||
San Diego Gas and Electric Company [Member] | Due to/from Other affiliates [Member] | ||||
Related Party Transaction [Line Items] | ||||
Due to unconsolidated affiliates, current | (9,000,000) | (6,000,000) | ||
Southern California Gas Company [Member] | ||||
Related Party Transaction [Line Items] | ||||
Due from unconsolidated affiliates - current | 1,000,000 | 11,000,000 | [1] | |
Due to unconsolidated affiliates, current | (135,000,000) | (47,000,000) | [1] | |
Maximum borrowing capacity | 750,000,000 | |||
Southern California Gas Company [Member] | Due to/from Sempra Energy [Member] | ||||
Related Party Transaction [Line Items] | ||||
Due to unconsolidated affiliates, current | (85,000,000) | (45,000,000) | ||
Income taxes due (to) from Sempra Energy | 34,000,000 | 152,000,000 | ||
Southern California Gas Company [Member] | Due to/from Other affiliates [Member] | ||||
Related Party Transaction [Line Items] | ||||
Due from unconsolidated affiliates - current | 1,000,000 | 1,000,000 | ||
Due to unconsolidated affiliates, current | 0 | (2,000,000) | ||
Southern California Gas Company [Member] | Due to/from SDG&E | ||||
Related Party Transaction [Line Items] | ||||
Due from unconsolidated affiliates - current | 0 | 10,000,000 | ||
Southern California Gas Company [Member] | Pacific Enterprises [Member] | ||||
Related Party Transaction [Line Items] | ||||
Due to unconsolidated affiliates, current | (50,000,000) | 0 | ||
IEnova Pipelines [Member] | ESJ joint venture [Member] | ||||
Related Party Transaction [Line Items] | ||||
Due from unconsolidated affiliates - current | 25,000,000 | |||
Sempra Mexico [Member] | ||||
Related Party Transaction [Line Items] | ||||
Due to unconsolidated affiliates - noncurrent | (267,000,000) | (195,000,000) | ||
Sempra Mexico [Member] | IMG [Member] | ||||
Related Party Transaction [Line Items] | ||||
Due from unconsolidated affiliates - noncurrent | 603,000,000 | $ 742,000,000 | ||
Due from affiliates, allowance for credit loss | 3,000,000 | |||
Maximum borrowing capacity | 614,000,000 | $ 14,200,000,000 | ||
Accrued interest receivable | $ 2,000,000 | |||
Sempra Mexico [Member] | IMG [Member] | Interbank Equilibrium Rate [Member] | ||||
Related Party Transaction [Line Items] | ||||
Spread on variable rate (as a percent) | 2.20% | 2.20% | ||
Interest rate on due from affiliate, noncurrent | 7.44% | |||
Sempra Mexico [Member] | TAG Pipeline Norte [Member] | ||||
Related Party Transaction [Line Items] | ||||
Stated rate of debt (as a percent) | 5.50% | 5.50% | ||
Sempra Mexico [Member] | TAG JV Notes [Member] | ||||
Related Party Transaction [Line Items] | ||||
Due to unconsolidated affiliates - noncurrent | $ (161,000,000) | $ (156,000,000) | ||
Stated rate of debt (as a percent) | 5.74% | 5.74% | ||
Other Long term Debt Currently Through December 2021 [Member] | Sempra Mexico [Member] | TAG Pipeline Norte [Member] | ||||
Related Party Transaction [Line Items] | ||||
Due to unconsolidated affiliates - noncurrent | $ (40,000,000) | (39,000,000) | ||
Other Long term Debt Currently Through January 2024 [Member] | Sempra Mexico [Member] | TAG Pipeline Norte [Member] | ||||
Related Party Transaction [Line Items] | ||||
Due to unconsolidated affiliates - noncurrent | $ (66,000,000) | $ 0 | ||
[1] | Derived from audited financial statements. |
GENERAL INFORMATION AND OTHE_19
GENERAL INFORMATION AND OTHER FINANCIAL DATA - AFFILIATES REVENUE AND COST OF SALES (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Related Party Transaction [Line Items] | ||||
Revenue from related parties | $ 10 | $ 13 | $ 22 | $ 27 |
Costs of sales to related parties | 15 | 14 | 26 | 28 |
San Diego Gas and Electric Company [Member] | ||||
Related Party Transaction [Line Items] | ||||
Revenue from related parties | 2 | 2 | 3 | 3 |
Costs of sales to related parties | 22 | 20 | 39 | 40 |
Southern California Gas Company [Member] | ||||
Related Party Transaction [Line Items] | ||||
Revenue from related parties | 20 | 17 | 38 | 34 |
Costs of sales to related parties | $ 0 | $ 0 | $ 0 | $ 4 |
GENERAL INFORMATION AND OTHE_20
GENERAL INFORMATION AND OTHER FINANCIAL DATA - OTHER (EXPENSE) INCOME, NET (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Other Income [Line Items] | ||||
Allowance for equity funds used during construction | $ 31 | $ 23 | $ 62 | $ 44 |
Investment gains (losses) | 30 | 11 | (7) | 37 |
Gains (losses) on interest rate and foreign exchange instruments, net | 5 | 11 | (148) | 24 |
Foreign currency transaction gains (losses), net | 13 | 4 | (110) | 11 |
Non-service component of net periodic benefit (cost) credit | (23) | (30) | 3 | (6) |
Penalties related to billing practices OII | 0 | 0 | 0 | (8) |
Interest on regulatory balancing accounts, net | 11 | 6 | 13 | 5 |
Sundry, net | (5) | 3 | (5) | 3 |
Total | 62 | 28 | (192) | 110 |
Foreign currency translation gain (loss) | (110) | 11 | ||
San Diego Gas and Electric Company [Member] | ||||
Other Income [Line Items] | ||||
Allowance for equity funds used during construction | 19 | 15 | 40 | 27 |
Non-service component of net periodic benefit (cost) credit | (5) | (1) | 3 | 8 |
Interest on regulatory balancing accounts, net | 6 | 6 | 8 | 6 |
Sundry, net | (2) | (1) | (2) | 0 |
Total | 18 | 19 | 49 | 41 |
Southern California Gas Company [Member] | ||||
Other Income [Line Items] | ||||
Allowance for equity funds used during construction | 10 | 8 | 18 | 16 |
Non-service component of net periodic benefit (cost) credit | (13) | (4) | 12 | 14 |
Penalties related to billing practices OII | 0 | 0 | 0 | (8) |
Interest on regulatory balancing accounts, net | 5 | 0 | 5 | (1) |
Sundry, net | (4) | (3) | (7) | (4) |
Total | (2) | 1 | 28 | 17 |
Sempra Mexico [Member] | IMG [Member] | ||||
Other Income [Line Items] | ||||
Foreign currency translation gain (loss) | $ 14 | $ 7 | $ (135) | $ 17 |
GENERAL INFORMATION AND OTHE_21
GENERAL INFORMATION AND OTHER FINANCIAL DATA - INCOME TAXES (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Income Tax Expense And Effective Income Tax Rates Disclosure [Line Items] | ||||
Income tax expense (benefit) from continuing operations | $ 168 | $ 47 | $ (39) | $ 89 |
Income from continuing operations before income taxes and equity earnings | 463 | 286 | 860 | 787 |
Equity earnings (losses), before income tax | 84 | 2 | 41 | 7 |
Pretax income | $ 547 | $ 288 | $ 901 | $ 794 |
Effective income tax rate (as a percent) | 31.00% | 16.00% | (4.00%) | 11.00% |
Income tax expense (benefit) related to outside basis differences existing prior to the January 25, 2019 approval of our plan to sell our South American businesses | $ 103 | |||
Income tax expense related to the increase in outside basis differences from 2019 earnings since January 25, 2019 | $ 7 | 20 | ||
San Diego Gas and Electric Company [Member] | ||||
Income Tax Expense And Effective Income Tax Rates Disclosure [Line Items] | ||||
Income tax expense (benefit) from continuing operations | $ 70 | $ 35 | 128 | 40 |
Income from continuing operations before income taxes and equity earnings | $ 263 | $ 181 | $ 583 | $ 363 |
Effective income tax rate (as a percent) | 27.00% | 19.00% | 22.00% | 11.00% |
Income tax benefit for release of a regulatory liability | $ 31 | |||
Southern California Gas Company [Member] | ||||
Income Tax Expense And Effective Income Tax Rates Disclosure [Line Items] | ||||
Income tax expense (benefit) from continuing operations | $ 49 | $ (4) | 101 | $ 15 |
Income from continuing operations before income taxes and equity earnings | $ 196 | $ 27 | $ 551 | $ 310 |
Effective income tax rate (as a percent) | 25.00% | (15.00%) | 18.00% | 5.00% |
Income tax benefit for release of a regulatory liability | $ 38 |
NEW ACCOUNTING STANDARDS (Detai
NEW ACCOUNTING STANDARDS (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2020 | Dec. 31, 2019 | Jan. 01, 2020 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201613Member | us-gaap:AccountingStandardsUpdate201613Member | ||
Accounts receivable – trade, net | $ 1,022 | $ 1,261 | [1] | |
Due from unconsolidated affiliates - noncurrent | 603 | 742 | [1] | |
Deferred income tax assets | 224 | 155 | [1] | |
Other current liabilities | 917 | 866 | [1] | |
Deferred credits and other | 2,156 | 2,048 | [1] | |
Retained earnings | 13,511 | 11,130 | [1] | |
Other noncontrolling interests | $ 1,760 | $ 1,856 | [1] | |
Cumulative Effect, Period of Adoption, Adjustment [Member] | Accounting Standards Update 2016-13 [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Accounts receivable – trade, net | $ (1) | |||
Due from unconsolidated affiliates - noncurrent | (6) | |||
Deferred income tax assets | 4 | |||
Other current liabilities | 4 | |||
Deferred credits and other | 2 | |||
Retained earnings | (7) | |||
Other noncontrolling interests | $ (2) | |||
[1] | Derived from audited financial statements. |
REVENUES - DISAGGREGATION OF RE
REVENUES - DISAGGREGATION OF REVENUE (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | $ 2,124 | $ 2,080 | $ 5,131 | $ 5,123 |
Utilities regulatory revenues | 291 | 25 | 152 | (233) |
Other revenues | 111 | 125 | 272 | 238 |
Total revenues | 2,526 | 2,230 | 5,555 | 5,128 |
Utilities service line [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 1,942 | 1,870 | 4,746 | 4,643 |
Energy-Related Businesses [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 182 | 210 | 385 | 480 |
Gas market [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 1,161 | 1,127 | 3,094 | 3,083 |
Electric market [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 963 | 953 | 2,037 | 2,040 |
Operating Segments [Member] | San Diego Gas and Electric Company [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 1,050 | 998 | 2,309 | 2,234 |
Utilities regulatory revenues | 185 | 96 | 195 | 5 |
Other revenues | 0 | 0 | 0 | 0 |
Total revenues | 1,235 | 1,094 | 2,504 | 2,239 |
Operating Segments [Member] | San Diego Gas and Electric Company [Member] | Utilities service line [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 1,050 | 998 | 2,309 | 2,234 |
Operating Segments [Member] | San Diego Gas and Electric Company [Member] | Energy-Related Businesses [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Operating Segments [Member] | San Diego Gas and Electric Company [Member] | Gas market [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 138 | 102 | 392 | 341 |
Operating Segments [Member] | San Diego Gas and Electric Company [Member] | Electric market [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 912 | 896 | 1,917 | 1,893 |
Operating Segments [Member] | Southern California Gas Company [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 904 | 877 | 2,448 | 2,405 |
Utilities regulatory revenues | 106 | (71) | (43) | (238) |
Other revenues | 0 | 0 | 0 | 0 |
Total revenues | 1,010 | 806 | 2,405 | 2,167 |
Operating Segments [Member] | Southern California Gas Company [Member] | Utilities service line [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 904 | 877 | 2,448 | 2,405 |
Operating Segments [Member] | Southern California Gas Company [Member] | Energy-Related Businesses [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Operating Segments [Member] | Southern California Gas Company [Member] | Gas market [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 904 | 877 | 2,448 | 2,405 |
Operating Segments [Member] | Southern California Gas Company [Member] | Electric market [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Operating Segments [Member] | Sempra Mexico [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 184 | 217 | 402 | 501 |
Utilities regulatory revenues | 0 | 0 | 0 | 0 |
Other revenues | 91 | 101 | 182 | 200 |
Total revenues | 275 | 318 | 584 | 701 |
Operating Segments [Member] | Sempra Mexico [Member] | Utilities service line [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 10 | 15 | 30 | 42 |
Operating Segments [Member] | Sempra Mexico [Member] | Energy-Related Businesses [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 174 | 202 | 372 | 459 |
Operating Segments [Member] | Sempra Mexico [Member] | Gas market [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 133 | 158 | 280 | 356 |
Operating Segments [Member] | Sempra Mexico [Member] | Electric market [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 51 | 59 | 122 | 145 |
Operating Segments [Member] | Sempra Renewables [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 1 | 5 | ||
Utilities regulatory revenues | 0 | 0 | ||
Other revenues | 2 | 5 | ||
Total revenues | 3 | 10 | ||
Operating Segments [Member] | Sempra Renewables [Member] | Utilities service line [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | ||
Operating Segments [Member] | Sempra Renewables [Member] | Energy-Related Businesses [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 1 | 5 | ||
Operating Segments [Member] | Sempra Renewables [Member] | Gas market [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | ||
Operating Segments [Member] | Sempra Renewables [Member] | Electric market [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 1 | 5 | ||
Operating Segments [Member] | Sempra LNG [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 9 | 21 | 21 | 89 |
Utilities regulatory revenues | 0 | 0 | 0 | 0 |
Other revenues | 60 | 65 | 171 | 138 |
Total revenues | 69 | 86 | 192 | 227 |
Operating Segments [Member] | Sempra LNG [Member] | Utilities service line [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Operating Segments [Member] | Sempra LNG [Member] | Energy-Related Businesses [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 9 | 21 | 21 | 89 |
Operating Segments [Member] | Sempra LNG [Member] | Gas market [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 7 | 19 | 18 | 86 |
Operating Segments [Member] | Sempra LNG [Member] | Electric market [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 2 | 2 | 3 | 3 |
Consolidation, Eliminations [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | (23) | (34) | (49) | (111) |
Utilities regulatory revenues | 0 | 0 | 0 | 0 |
Other revenues | (40) | (43) | (81) | (105) |
Total revenues | (63) | (77) | (130) | (216) |
Consolidation, Eliminations [Member] | Utilities service line [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | (22) | (20) | (41) | (38) |
Consolidation, Eliminations [Member] | Energy-Related Businesses [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | (1) | (14) | (8) | (73) |
Consolidation, Eliminations [Member] | Gas market [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | (21) | (29) | (44) | (105) |
Consolidation, Eliminations [Member] | Electric market [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | $ (2) | $ (5) | $ (5) | $ (6) |
REVENUES - PERFORMANCE OBLIGATI
REVENUES - PERFORMANCE OBLIGATIONS (Details) $ in Millions | Jun. 30, 2020USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenues to be recognized | $ 195 |
Revenues to be recognized, period of recognition | 6 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenues to be recognized | $ 403 |
Revenues to be recognized, period of recognition | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenues to be recognized | $ 406 |
Revenues to be recognized, period of recognition | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenues to be recognized | $ 407 |
Revenues to be recognized, period of recognition | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenues to be recognized | $ 348 |
Revenues to be recognized, period of recognition | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenues to be recognized | $ 4,678 |
Revenues to be recognized, period of recognition | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: (nil) | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenues to be recognized | $ 6,437 |
San Diego Gas and Electric Company [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenues to be recognized | $ 2 |
Revenues to be recognized, period of recognition | 6 months |
San Diego Gas and Electric Company [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenues to be recognized | $ 4 |
Revenues to be recognized, period of recognition | 1 year |
San Diego Gas and Electric Company [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenues to be recognized | $ 4 |
Revenues to be recognized, period of recognition | 1 year |
San Diego Gas and Electric Company [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenues to be recognized | $ 4 |
Revenues to be recognized, period of recognition | 1 year |
San Diego Gas and Electric Company [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenues to be recognized | $ 4 |
Revenues to be recognized, period of recognition | 1 year |
San Diego Gas and Electric Company [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenues to be recognized | $ 71 |
Revenues to be recognized, period of recognition | |
San Diego Gas and Electric Company [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: (nil) | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenues to be recognized | $ 89 |
REVENUES - CONTRACT LIABILITIES
REVENUES - CONTRACT LIABILITIES (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Contract with Customer, Liability [Roll Forward] | ||
Contract liabilities, opening balance | $ (163) | $ (70) |
Revenue from performance obligations satisfied during reporting period | 2 | 1 |
Payments received in advance | (3) | |
Contract liabilities, closing balance | (161) | $ (72) |
Other Current Liabilities [Member] | ||
Contract with Customer, Liability [Roll Forward] | ||
Contract liabilities, closing balance | (4) | |
Deferred Credits and Other [Member] | ||
Contract with Customer, Liability [Roll Forward] | ||
Contract liabilities, closing balance | (157) | |
San Diego Gas and Electric Company [Member] | ||
Contract with Customer, Liability [Roll Forward] | ||
Contract liabilities, opening balance | (91) | |
Revenue from performance obligations satisfied during reporting period | 2 | |
Contract liabilities, closing balance | (89) | |
San Diego Gas and Electric Company [Member] | Other Current Liabilities [Member] | ||
Contract with Customer, Liability [Roll Forward] | ||
Contract liabilities, closing balance | (4) | |
San Diego Gas and Electric Company [Member] | Deferred Credits and Other [Member] | ||
Contract with Customer, Liability [Roll Forward] | ||
Contract liabilities, closing balance | $ (85) |
REVENUES - RECEIVABLES FROM REV
REVENUES - RECEIVABLES FROM REVENUES FROM CONTRACTS WITH CUSTOMERS (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Contract with Customer, Asset [Line Items] | ||
Receivables from revenues from contracts with customers | $ 956 | $ 1,184 |
Accounts receivable – trade, net [Member] | ||
Contract with Customer, Asset [Line Items] | ||
Receivables from revenues from contracts with customers | 943 | 1,163 |
Accounts receivable – other, net [Member] | ||
Contract with Customer, Asset [Line Items] | ||
Receivables from revenues from contracts with customers | 9 | 16 |
Due from unconsolidated affiliates – current [Member] | ||
Contract with Customer, Asset [Line Items] | ||
Receivables from revenues from contracts with customers | 4 | 5 |
San Diego Gas and Electric Company [Member] | ||
Contract with Customer, Asset [Line Items] | ||
Receivables from revenues from contracts with customers | 428 | 405 |
San Diego Gas and Electric Company [Member] | Accounts receivable – trade, net [Member] | ||
Contract with Customer, Asset [Line Items] | ||
Receivables from revenues from contracts with customers | 418 | 398 |
San Diego Gas and Electric Company [Member] | Accounts receivable – other, net [Member] | ||
Contract with Customer, Asset [Line Items] | ||
Receivables from revenues from contracts with customers | 7 | 5 |
San Diego Gas and Electric Company [Member] | Due from unconsolidated affiliates – current [Member] | ||
Contract with Customer, Asset [Line Items] | ||
Receivables from revenues from contracts with customers | 3 | 2 |
Southern California Gas Company [Member] | ||
Contract with Customer, Asset [Line Items] | ||
Receivables from revenues from contracts with customers | 462 | 721 |
Southern California Gas Company [Member] | Accounts receivable – trade, net [Member] | ||
Contract with Customer, Asset [Line Items] | ||
Receivables from revenues from contracts with customers | 460 | 710 |
Southern California Gas Company [Member] | Accounts receivable – other, net [Member] | ||
Contract with Customer, Asset [Line Items] | ||
Receivables from revenues from contracts with customers | $ 2 | $ 11 |
REGULATORY MATTERS - REGULATORY
REGULATORY MATTERS - REGULATORY ACCOUNTS (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Net Regulatory Assets (Liabilities) Sempra Energy Consolidated [Member] | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | $ (1,725) | $ (1,908) |
San Diego Gas and Electric Company [Member] | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Regulatory balancing accounts - net undercollected, Noncurrent | 120 | 108 |
San Diego Gas and Electric Company [Member] | Fixed-price contracts and other derivatives [Member] | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | 16 | 8 |
San Diego Gas and Electric Company [Member] | Deferred income taxes (refundable) recoverable in rates [Member] | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | (55) | (108) |
San Diego Gas and Electric Company [Member] | Pension and other postretirement benefit plan obligations [Member] | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | 95 | 103 |
San Diego Gas and Electric Company [Member] | Removal obligations [Member] | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | (2,109) | (2,056) |
San Diego Gas and Electric Company [Member] | Environmental costs [Member] | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | 44 | 45 |
San Diego Gas and Electric Company [Member] | Sunrise Powerlink fire mitigation [Member] | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | 119 | 121 |
San Diego Gas and Electric Company [Member] | Regulatory Balancing Accounts, Commodity – electric [Member] | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | 182 | 102 |
San Diego Gas and Electric Company [Member] | Regulatory Balancing Accounts, Gas transportation [Member] | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | 6 | 22 |
San Diego Gas and Electric Company [Member] | Regulatory Balancing Accounts, Safety and reliability [Member] | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | 74 | 77 |
San Diego Gas and Electric Company [Member] | Regulatory Balancing Accounts, Public purpose programs [Member] | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | (150) | (124) |
San Diego Gas and Electric Company [Member] | GRC retroactive impacts [Member] | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | 84 | 111 |
San Diego Gas and Electric Company [Member] | Regulatory Balancing Accounts, Other balancing accounts [Member] | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | 172 | 106 |
San Diego Gas and Electric Company [Member] | Other regulatory (liabilities) assets [Member] | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | (20) | (153) |
San Diego Gas and Electric Company [Member] | Net Regulatory Assets (Liabilities) SDGE [Member] | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | (1,542) | (1,746) |
Southern California Gas Company [Member] | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Regulatory balancing accounts - net undercollected, Noncurrent | 535 | 500 |
Southern California Gas Company [Member] | Deferred income taxes (refundable) recoverable in rates [Member] | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | (123) | (203) |
Southern California Gas Company [Member] | Pension and other postretirement benefit plan obligations [Member] | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | 393 | 400 |
Southern California Gas Company [Member] | Employee benefit costs [Member] | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | 44 | 44 |
Southern California Gas Company [Member] | Removal obligations [Member] | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | (714) | (728) |
Southern California Gas Company [Member] | Environmental costs [Member] | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | 38 | 40 |
Southern California Gas Company [Member] | Regulatory Balancing Accounts, Commodity - gas including transportation | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | (180) | (118) |
Southern California Gas Company [Member] | Regulatory Balancing Accounts, Safety and reliability [Member] | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | 331 | 295 |
Southern California Gas Company [Member] | Regulatory Balancing Accounts, Public purpose programs [Member] | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | (356) | (273) |
Southern California Gas Company [Member] | GRC retroactive impacts [Member] | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | 302 | 400 |
Southern California Gas Company [Member] | Regulatory Balancing Accounts, Other balancing accounts [Member] | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | (22) | (7) |
Southern California Gas Company [Member] | Other regulatory (liabilities) assets [Member] | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | 19 | (101) |
Southern California Gas Company [Member] | Net Regulatory Assets (Liabilities) SoCalGas [Member] | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | (268) | (251) |
Sempra Mexico [Member] | Deferred income taxes (refundable) recoverable in rates [Member] | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | 83 | 83 |
Sempra Mexico [Member] | Other regulatory (liabilities) assets [Member] | ||
Schedule Of Net Regulatory Assets (Liabilities) [Line Items] | ||
Net regulatory assets (liabilities) | $ 2 | $ 6 |
REGULATORY MATTERS - GENERAL RA
REGULATORY MATTERS - GENERAL RATE CASE (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | |
Apr. 30, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | |
San Diego Gas and Electric Company [Member] | General Rate Case [Member] | |||
General Rate Case [Line Items] | |||
Tracked income tax expense liability | $ 86 | ||
Southern California Gas Company [Member] | General Rate Case [Member] | |||
General Rate Case [Line Items] | |||
Tracked income tax expense liability | 89 | ||
2019 GRC FD [Member] | San Diego Gas and Electric Company [Member] | |||
General Rate Case [Line Items] | |||
Retroactive after-tax earnings impact | $ 30 | $ 36 | |
2019 GRC FD [Member] | Southern California Gas Company [Member] | |||
General Rate Case [Line Items] | |||
Retroactive after-tax earnings impact | $ 46 | $ 84 | |
2019 GRC FD - 2022 Requirement [Member] | San Diego Gas and Electric Company [Member] | |||
General Rate Case [Line Items] | |||
GRC requested revenue requirement | 95 | ||
2019 GRC FD - 2022 Requirement [Member] | Southern California Gas Company [Member] | |||
General Rate Case [Line Items] | |||
GRC requested revenue requirement | 155 | ||
2019 GRC FD - 2023 Requirement [Member] | San Diego Gas and Electric Company [Member] | |||
General Rate Case [Line Items] | |||
GRC requested revenue requirement | 96 | ||
2019 GRC FD - 2023 Requirement [Member] | Southern California Gas Company [Member] | |||
General Rate Case [Line Items] | |||
GRC requested revenue requirement | $ 137 |
REGULATORY MATTERS - COST OF CA
REGULATORY MATTERS - COST OF CAPITAL & FERC (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | 36 Months Ended | |
Jan. 31, 2020 | Oct. 31, 2019 | Jun. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2018 | Dec. 31, 2022 | |
California Public Utilities Commission [Member] | ||||||
Public Utilities, General Disclosures [Line Items] | ||||||
CCM benchmark rate, increase (decrease) percent for trigger | 1.00% | |||||
San Diego Gas and Electric Company [Member] | ||||||
Public Utilities, General Disclosures [Line Items] | ||||||
FERC requirement to maintain common equity ratio, at or above (percent) | 10.60% | 10.60% | ||||
Base ROE | 10.10% | 10.10% | ||||
Additional Bps | 0.50% | |||||
Additional FERC revenues | $ 12 | $ 17 | ||||
San Diego Gas and Electric Company [Member] | California Public Utilities Commission [Member] | ||||||
Public Utilities, General Disclosures [Line Items] | ||||||
CCM benchmark rate | 4.498% | |||||
San Diego Gas and Electric Company [Member] | Forecast [Member] | California Public Utilities Commission [Member] | ||||||
Public Utilities, General Disclosures [Line Items] | ||||||
Authorized weighting | 100.00% | |||||
Weighted return on base rate (as a percent) | 7.55% | |||||
San Diego Gas and Electric Company [Member] | Capital Structure, Preferred Stock [Member] | California Public Utilities Commission [Member] | ||||||
Public Utilities, General Disclosures [Line Items] | ||||||
Authorized weighting | 6.22% | |||||
San Diego Gas and Electric Company [Member] | Capital Structure, Preferred Stock [Member] | Forecast [Member] | California Public Utilities Commission [Member] | ||||||
Public Utilities, General Disclosures [Line Items] | ||||||
Authorized weighting | 2.75% | |||||
Return on rate base | 6.22% | |||||
Weighted return on base rate (as a percent) | 0.17% | |||||
San Diego Gas and Electric Company [Member] | Capital Structure, Long Term Debt [Member] | Forecast [Member] | California Public Utilities Commission [Member] | ||||||
Public Utilities, General Disclosures [Line Items] | ||||||
Authorized weighting | 45.25% | |||||
Return on rate base | 4.59% | |||||
Weighted return on base rate (as a percent) | 2.08% | |||||
San Diego Gas and Electric Company [Member] | Common Equity [Member] | Federal Energy Regulatory Commission [Member] | ||||||
Public Utilities, General Disclosures [Line Items] | ||||||
Approved return on equity, percentage | 10.05% | |||||
San Diego Gas and Electric Company [Member] | Common Equity [Member] | Forecast [Member] | California Public Utilities Commission [Member] | ||||||
Public Utilities, General Disclosures [Line Items] | ||||||
Authorized weighting | 52.00% | |||||
Return on rate base | 10.20% | |||||
Weighted return on base rate (as a percent) | 5.30% | |||||
Southern California Gas Company [Member] | California Public Utilities Commission [Member] | ||||||
Public Utilities, General Disclosures [Line Items] | ||||||
CCM benchmark rate | 4.029% | |||||
Southern California Gas Company [Member] | Forecast [Member] | California Public Utilities Commission [Member] | ||||||
Public Utilities, General Disclosures [Line Items] | ||||||
Authorized weighting | 100.00% | |||||
Weighted return on base rate (as a percent) | 7.30% | |||||
Southern California Gas Company [Member] | Capital Structure, Preferred Stock [Member] | Forecast [Member] | California Public Utilities Commission [Member] | ||||||
Public Utilities, General Disclosures [Line Items] | ||||||
Authorized weighting | 2.40% | |||||
Return on rate base | 6.00% | |||||
Weighted return on base rate (as a percent) | 0.14% | |||||
Southern California Gas Company [Member] | Capital Structure, Long Term Debt [Member] | Forecast [Member] | California Public Utilities Commission [Member] | ||||||
Public Utilities, General Disclosures [Line Items] | ||||||
Authorized weighting | 45.60% | |||||
Return on rate base | 4.23% | |||||
Weighted return on base rate (as a percent) | 1.93% | |||||
Southern California Gas Company [Member] | Common Equity [Member] | Forecast [Member] | California Public Utilities Commission [Member] | ||||||
Public Utilities, General Disclosures [Line Items] | ||||||
Authorized weighting | 52.00% | |||||
Return on rate base | 10.05% | |||||
Weighted return on base rate (as a percent) | 5.23% | |||||
Energy Efficiency Program Inquiry [Member] | San Diego Gas and Electric Company [Member] | California Public Utilities Commission [Member] | ||||||
Public Utilities, General Disclosures [Line Items] | ||||||
Reduction in revenue from inquiry | $ 15 |
ACQUISITIONS, DIVESTITURES AN_3
ACQUISITIONS, DIVESTITURES AND DISCONTINUED OPERATIONS - ACQUISITION ACTIVITY (Details) - USD ($) $ in Millions | 1 Months Ended | ||||
Feb. 29, 2020 | May 31, 2019 | Jun. 30, 2020 | Dec. 31, 2019 | [1] | |
Business Acquisition [Line Items] | |||||
Equity method investment | $ 11,758 | $ 11,519 | |||
Oncor Electric Delivery Company LLC. [Member] | |||||
Business Acquisition [Line Items] | |||||
Ownership percentage held by noncontrolling owners | 80.45% | ||||
TTHC [Member] | TTI [Member] | |||||
Business Acquisition [Line Items] | |||||
Ownership percentage in consolidated entity | 100.00% | ||||
Equity method investment | $ 16 | ||||
TTHC [Member] | Oncor Electric Delivery Company LLC. [Member] | |||||
Business Acquisition [Line Items] | |||||
Ownership percentage in consolidated entity | 19.75% | ||||
Borealis [Member] | Cheyne Walk [Member] | |||||
Business Acquisition [Line Items] | |||||
Ownership percentage held by noncontrolling owners | 99.00% | ||||
Sharyland Holdings, LP [Member] | Sharyland Utilities, LP [Member] | |||||
Business Acquisition [Line Items] | |||||
Ownership percentage held by noncontrolling owners | 100.00% | ||||
Oncor Electric Delivery Company LLC Additional Acquisition [Member] | Sempra Texas Intermediate Holding Company LLC [Member] | |||||
Business Acquisition [Line Items] | |||||
Acquired percentage interest | 80.25% | ||||
Oncor Electric Delivery Company LLC Additional Acquisition [Member] | Sempra Texas Intermediate Holding Company LLC [Member] | Oncor Electric Delivery Company LLC. [Member] | |||||
Business Acquisition [Line Items] | |||||
Acquired percentage interest | 0.1975% | ||||
Acquired receivables | $ 6 | ||||
Cash consideration | 23 | ||||
Fair value of notes receivable acquired | 7 | ||||
Investment in TTHC | $ 23 | ||||
TTHC [Member] | Sempra Texas Intermediate Holding Company LLC [Member] | |||||
Business Acquisition [Line Items] | |||||
Additional ownership percentage | 1.00% | ||||
Sharyland Holdings, LP [Member] | Sempra Texas Intermediate Holding Company LLC [Member] | |||||
Business Acquisition [Line Items] | |||||
Acquired percentage interest | 50.00% | ||||
Cash consideration | $ 95 | ||||
Post closing adjustments | $ 7 | ||||
Equity method investment, ownership percentage (as a percent) | 50.00% | ||||
[1] | Derived from audited financial statements. |
ACQUISITIONS, DIVESTITURES AN_4
ACQUISITIONS, DIVESTITURES AND DISCONTINUED OPERATIONS - DIVESTITURES (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||
Apr. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Feb. 07, 2019 | Jan. 31, 2019 | |
Business Acquisition [Line Items] | |||||||
Gain on sale of assets | $ 0 | $ 66 | $ 0 | $ 66 | |||
Disposal Group Held-for-sale [Member] | Wind Facilities [Member] | Sempra Renewables [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Consideration to be received | $ 569 | ||||||
Gain on sale of assets | 61 | ||||||
Gain on sale of assets, after tax and NCI | $ 45 | ||||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations [Member] | Mississippi Hub And Bay Gas [Member] | Sempra LNG [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Consideration to be received | $ 322 | ||||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations [Member] | Other Non-Utility assets [Member] | Sempra LNG [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Consideration to be received | $ 5 |
ACQUISITIONS, DIVESTITURES AN_5
ACQUISITIONS, DIVESTITURES AND DISCONTINUED OPERATIONS - DISCONTINUED OPERATIONS (Details) $ in Millions | Jun. 24, 2020USD ($) | Apr. 24, 2020USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($)company | Jun. 30, 2019USD ($) | Dec. 31, 2019USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Income from discontinued operations, net of income tax | $ 1,777 | $ 78 | $ 1,857 | $ 36 | ||||
Earnings attributable to noncontrolling interests | (2) | (8) | (10) | (17) | ||||
Earnings from discontinued operations attributable to common shares | 1,775 | 70 | 1,847 | 19 | ||||
Cash and cash equivalents | 0 | 0 | $ 75 | |||||
Current assets | 0 | 0 | 445 | [1] | ||||
Noncurrent assets | 0 | 0 | 3,513 | [1] | ||||
Current liabilities | 0 | 0 | 444 | [1] | ||||
Noncurrent liabilities | 0 | 0 | 1,052 | [1] | ||||
Discontinued Operations, Held-for-sale [Member] | Sempra South American Utilities [Member] | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Consideration to be received | $ 2,232 | |||||||
Pretax gain on sale | 644 | |||||||
Revenues | 170 | 403 | 570 | 824 | ||||
Cost of sales | (111) | (251) | (364) | (516) | ||||
Gain on sale of discontinued operations | $ 255 | 2,915 | 0 | 2,915 | 0 | |||
Operating expenses | (20) | (40) | (66) | (85) | ||||
Interest and other | (3) | (6) | (3) | (9) | ||||
Income before income taxes and equity earnings | 2,951 | 106 | 3,052 | 214 | ||||
Income tax expense | (1,174) | (29) | (1,195) | (180) | ||||
Equity earnings | 0 | 1 | 0 | 2 | ||||
Income from discontinued operations, net of income tax | 1,777 | 78 | 1,857 | 36 | ||||
Earnings from discontinued operations attributable to common shares | 1,775 | $ 70 | 1,847 | $ 19 | ||||
Cash and cash equivalents | 4,600 | 4,600 | 74 | |||||
Restricted cash | 1 | |||||||
Accounts receivable, net | 303 | |||||||
Due from unconsolidated affiliates | 2 | |||||||
Inventories | 36 | |||||||
Other current assets | 29 | |||||||
Current assets | 445 | |||||||
Due from unconsolidated affiliates | 54 | |||||||
Goodwill and other intangible assets | 801 | |||||||
Property, plant and equipment, net | 2,618 | |||||||
Other noncurrent assets | 40 | |||||||
Noncurrent assets | 3,513 | |||||||
Short-term debt | 52 | |||||||
Accounts payable | 201 | |||||||
Current portion of long-term debt and finance leases | 85 | |||||||
Other current liabilities | 106 | |||||||
Current liabilities | 444 | |||||||
Long-term debt and finance leases | 702 | |||||||
Deferred income taxes | 284 | |||||||
Other noncurrent liabilities | 66 | |||||||
Noncurrent liabilities | $ 1,052 | |||||||
Cumulative foreign translation adjustments | $ 645 | $ 645 | ||||||
Discontinued Operations, Held-for-sale [Member] | Luz Del Sur [Member] | Sempra South American Utilities [Member] | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Consideration to be received | $ 3,549 | |||||||
Pretax gain on sale | 2,271 | |||||||
Gain on sale of discontinued operations | $ 1,499 | |||||||
Luz Del Sur [Member] | Discontinued Operations, Held-for-sale [Member] | Sempra South American Utilities [Member] | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Ownership interest (as a percent) | 83.60% | 83.60% | 83.60% | |||||
Number of energy services companies | company | 2 | |||||||
Chilquinta Energia [Member] | Discontinued Operations, Held-for-sale [Member] | Sempra South American Utilities [Member] | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Ownership interest (as a percent) | 100.00% | 100.00% | 100.00% | |||||
Eletrans [Member] | Discontinued Operations, Held-for-sale [Member] | Sempra South American Utilities [Member] | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Ownership interest (as a percent) | 50.00% | |||||||
[1] | Derived from audited financial statements. |
INVESTMENTS IN UNCONSOLIDATED_2
INVESTMENTS IN UNCONSOLIDATED ENTITIES - NARRATIVE (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Jul. 31, 2020 | Mar. 31, 2020 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Schedule of Equity Method Investments [Line Items] | ||||||
Equity earnings | $ 233 | $ 118 | $ 496 | $ 219 | ||
Cameron LNG [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Guarantees, carrying value | 2 | 2 | ||||
Maximum exposure under guarantor obligations | 4,000 | 4,000 | ||||
R B S Sempra Commodities [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity earnings | $ (100) | |||||
Sempra Texas Utilities [Member] | Oncor Holdings [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Contribution | 139 | 1,180 | 139 | 1,180 | ||
Commitment to invest | $ 1,067 | 1,067 | ||||
Proceeds from dividends received | 108 | |||||
Sempra LNG [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Maximum exposure under guarantor obligations | $ 4,000 | 4,000 | ||||
Corporate Joint Venture [Member] | Sempra LNG [Member] | Cameron LNG [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Investments made during period | 1 | 77 | ||||
Proceeds from dividends received | 74 | |||||
Capitalized interest | $ 26 | |||||
Oncor Holdings [Member] | Sempra Texas Utilities [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Proceeds from dividends received | $ 146 | |||||
Oncor Holdings [Member] | Sempra Texas Holdings Corp [Member] | Sempra Texas Intermediate Holding Company LLC [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Ownership percentage in consolidated entity | 100.00% | |||||
Oncor Electric Delivery Company LLC. [Member] | Oncor Holdings [Member] | Sempra Texas Utilities [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Acquired percentage interest | 80.25% | 80.25% | ||||
Cameron LNG [Member] | Sempra LNG [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Ownership percentage in consolidated entity | 50.20% | |||||
Other Current Liabilities [Member] | R B S Sempra Commodities [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity earnings | 25 | |||||
Deferred Credits and Other [Member] | R B S Sempra Commodities [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity earnings | $ 75 | |||||
Subsequent Event [Member] | Corporate Joint Venture [Member] | Sempra LNG [Member] | Cameron LNG [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Proceeds from related party debt | $ 1,500 | |||||
Corporate Joint Venture [Member] | Cameron LNG [Member] | Sempra LNG [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Guarantees, carrying value | $ 753 | $ 753 |
INVESTMENTS IN UNCONSOLIDATED_3
INVESTMENTS IN UNCONSOLIDATED ENTITIES - SUMMARIZED FINANCIAL INFORMATION (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Schedule of Equity Method Investments [Line Items] | ||||
Operating revenues | $ 2,233 | $ 1,895 | $ 4,898 | $ 4,410 |
Net income (loss) | 2,305 | 435 | 3,252 | 953 |
Equity Method Investment, Nonconsolidated Investee or Group of Investees [Member] | Oncor Holdings [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Operating revenues | 1,090 | 1,041 | 2,162 | 2,057 |
Operating expenses | (767) | (757) | (1,568) | (1,532) |
Operating income | 323 | 284 | 594 | 525 |
Interest expense | (102) | (93) | (203) | (179) |
Income tax expense | (37) | (30) | (65) | (53) |
Net income (loss) | 173 | 136 | 302 | 250 |
Noncontrolling interest held by TTI | (35) | (27) | (61) | (50) |
Earnings attributable to Sempra Energy | $ 138 | $ 109 | $ 241 | $ 200 |
DEBT AND CREDIT FACILITIES - LI
DEBT AND CREDIT FACILITIES - LINES OF CREDIT (Details) | 1 Months Ended | 6 Months Ended |
Mar. 31, 2020USD ($) | Jun. 30, 2020USD ($)lender | |
Line of Credit Facility [Line Items] | ||
Standby letters of credit outstanding | $ 609,000,000 | |
Sempra Energy [Member] | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | 1,250,000,000 | |
Capacity for issuance of letters of credit | 200,000,000 | |
Option to request | 500,000,000 | |
Sempra Global [Member] | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | 3,185,000,000 | |
San Diego Gas and Electric Company [Member] | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | $ 1,500,000,000 | |
Maximum ratio of indebtedness to total capitalization | 65.00% | |
Southern California Gas Company [Member] | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | $ 750,000,000 | |
Capacity for issuance of letters of credit | 100,000,000 | |
Option to request | $ 250,000,000 | |
Maximum ratio of indebtedness to total capitalization | 65.00% | |
Sempra U.S. Businesses [Member] | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | $ 6,685,000,000 | |
Maximum ratio of indebtedness to total capitalization | 65.00% | |
Foreign Line of Credit [Member] | Sempra Mexico [Member] | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | $ 1,780,000,000 | |
Amount outstanding | (1,544,000,000) | |
Available unused credit | 236,000,000 | |
Foreign Committed Lines of Credit, Due February 2024 [Member] | Foreign Line of Credit [Member] | Sempra Mexico [Member] | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | 1,500,000,000 | |
Amount outstanding | (1,264,000,000) | |
Available unused credit | $ 236,000,000 | |
Term of debt instrument | 5 years | |
Number of lenders | lender | 10 | |
Foreign Committed Lines of Credit, Due September 2021 [Member] | Foreign Line of Credit [Member] | Sempra Mexico [Member] | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | $ 280,000,000 | |
Amount outstanding | (280,000,000) | |
Available unused credit | $ 0 | |
Term of debt instrument | 2 years | |
Foreign Uncommitted Revolving Credit Facility Due April 2022 [Member] | Foreign Line of Credit [Member] | Sempra Mexico [Member] | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | $ 100,000,000 | |
Available unused credit | $ 100,000,000 | |
Term of debt instrument | 3 years | |
Term Loan [Member] | Sempra Energy [Member] | ||
Line of Credit Facility [Line Items] | ||
Net proceeds of debt | $ 1,599,000,000 | |
Debt issuance costs | $ 1,000,000 | |
Spread on variable rate (as a percent) | 0.98% | |
Term Loan [Member] | San Diego Gas and Electric Company [Member] | ||
Line of Credit Facility [Line Items] | ||
Net proceeds of debt | $ 200,000,000 | |
Spread on variable rate (as a percent) | 0.99% |
DEBT AND CREDIT FACILITIES - WE
DEBT AND CREDIT FACILITIES - WEIGHTED-AVERAGE INTEREST RATES AND INTEREST RATE SWAPS (Details) | Jun. 30, 2020 | Dec. 31, 2019 |
Sempra Energy Consolidated [Member] | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate on total short-term debt outstanding | 1.02% | 2.31% |
San Diego Gas and Electric Company [Member] | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate on total short-term debt outstanding | 1.97% | |
Southern California Gas Company [Member] | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate on total short-term debt outstanding | 1.86% |
DEBT AND CREDIT FACILITIES - LO
DEBT AND CREDIT FACILITIES - LONG-TERM DEBT (Details) - USD ($) | Mar. 30, 2020 | Jun. 30, 2020 | Apr. 30, 2020 | Jan. 31, 2020 | Jun. 30, 2020 |
Debt Instrument [Line Items] | |||||
Equitization of long-term debt for deficit held by NCI | $ 22,000,000 | ||||
Southern California Gas Company [Member] | First Mortgage Bonds, Due June 2050 [Member] | |||||
Debt Instrument [Line Items] | |||||
Stated rate of debt (as a percent) | 2.55% | ||||
Bonds [Member] | San Diego Gas and Electric Company [Member] | First Mortgage Bonds, Due June 2050 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt amount | $ 400,000,000 | ||||
Stated rate of debt (as a percent) | 3.32% | ||||
Net proceeds of debt | $ 395,000,000 | ||||
Debt issuance costs | 5,000,000 | ||||
Repayments of lines of credit | 200,000,000 | ||||
Bonds [Member] | Southern California Gas Company [Member] | First Mortgage Bonds, Due June 2050 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt amount | $ 650,000,000 | ||||
Net proceeds of debt | 643,000,000 | ||||
Debt issuance costs | $ 7,000,000 | ||||
Japan International Cooperation Agency [Member] | Sempra Mexico [Member] | IEnova Loan Agreement [Member] | |||||
Debt Instrument [Line Items] | |||||
Net proceeds of debt | 98,000,000 | ||||
Debt issuance costs | 2,000,000 | ||||
Proceeds from debt issuance | $ 100,000,000 | ||||
Fixed interest rate (as a percent) | 2.38% | ||||
U.S. International Development Finance Corporation [Member] | Sempra Mexico [Member] | IEnova Loan Agreement [Member] | |||||
Debt Instrument [Line Items] | |||||
Net proceeds of debt | $ 236,000,000 | ||||
Debt issuance costs | 5,000,000 | $ 5,000,000 | |||
Proceeds from debt issuance | $ 241,000,000 | ||||
Fixed interest rate (as a percent) | 2.90% | 2.90% | |||
Liberty Gas Storage, LLC [Member] | Sempra LNG [Member] | |||||
Debt Instrument [Line Items] | |||||
Equitization of long-term debt for deficit held by NCI | $ 22,000,000 | ||||
LIBOR [Member] | Japan International Cooperation Agency [Member] | Sempra Mexico [Member] | IEnova Loan Agreement [Member] | |||||
Debt Instrument [Line Items] | |||||
Spread on variable rate (as a percent) | 1.50% |
DERIVATIVE FINANCIAL INSTRUME_3
DERIVATIVE FINANCIAL INSTRUMENTS - DERIVATIVE COMMODITY VOLUMES (Details) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020MWhMMBTU | Dec. 31, 2019MWhMMBTU | |
Natural Gas Derivative [Member] | ||
Derivative [Line Items] | ||
Derivative, nonmonetary notional amount | MMBTU | 20 | 32 |
Electric Energy Derivative [Member] | ||
Derivative [Line Items] | ||
Derivative, nonmonetary notional amount | 2 | 2 |
Congestion Revenue Rights Derivative [Member] | ||
Derivative [Line Items] | ||
Derivative, nonmonetary notional amount | 42 | 48 |
SDG&E [Member] | Natural Gas Derivative [Member] | ||
Derivative [Line Items] | ||
Derivative, nonmonetary notional amount | MMBTU | 32 | 37 |
SDG&E [Member] | Electric Energy Derivative [Member] | ||
Derivative [Line Items] | ||
Derivative, nonmonetary notional amount | 2 | 2 |
SDG&E [Member] | Congestion Revenue Rights Derivative [Member] | ||
Derivative [Line Items] | ||
Derivative, nonmonetary notional amount | 42 | 48 |
SoCalGas [Member] | Natural Gas Derivative [Member] | ||
Derivative [Line Items] | ||
Derivative, nonmonetary notional amount | MMBTU | 0 | 2 |
DERIVATIVE FINANCIAL INSTRUME_4
DERIVATIVE FINANCIAL INSTRUMENTS - DERIVATIVE NOTIONALS (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Interest rate and foreign exchange instruments [Member] | ||
Derivative [Line Items] | ||
Notional amount of derivative | $ 306 | $ 306 |
Foreign Exchange [Member] | ||
Derivative [Line Items] | ||
Notional amount of derivative | 1,271 | 1,796 |
Cash Flow Hedging [Member] | Interest Rate Contract [Member] | ||
Derivative [Line Items] | ||
Notional amount of derivative | $ 1,517 | $ 1,445 |
DERIVATIVE FINANCIAL INSTRUME_5
DERIVATIVE FINANCIAL INSTRUMENTS - DERIVATIVE INSTRUMENTS ON THE CONDENSED BALANCE SHEET (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Other current assets [Member] | ||
Derivatives not designated as hedging instruments: | ||
Net amounts presented on the balance sheet | $ 30 | $ 58 |
Additional cash collateral for commodity contracts not subject to rate recovery | 27 | 43 |
Additional cash collateral for commodity contracts subject to rate recovery | 19 | 25 |
Total | 76 | 126 |
Other long-term assets [Member] | ||
Derivatives not designated as hedging instruments: | ||
Net amounts presented on the balance sheet | 81 | 85 |
Additional cash collateral for commodity contracts not subject to rate recovery | 0 | 0 |
Additional cash collateral for commodity contracts subject to rate recovery | 0 | 0 |
Total | 81 | 85 |
Other Current Liabilities [Member] | ||
Derivatives not designated as hedging instruments: | ||
Net amounts presented on the balance sheet | (88) | (53) |
Additional cash collateral for commodity contracts not subject to rate recovery | 0 | 0 |
Additional cash collateral for commodity contracts subject to rate recovery | 0 | 0 |
Total | (88) | (53) |
Deferred credits and other [Member] | ||
Derivatives not designated as hedging instruments: | ||
Net amounts presented on the balance sheet | (251) | (192) |
Additional cash collateral for commodity contracts not subject to rate recovery | 0 | 0 |
Additional cash collateral for commodity contracts subject to rate recovery | 0 | 0 |
Total | (251) | (192) |
Designated as Hedging Instrument [Member] | Other current assets [Member] | ||
Derivatives designated as hedging instruments: | ||
Interest rate and foreign exchange instruments | 9 | 0 |
Designated as Hedging Instrument [Member] | Other long-term assets [Member] | ||
Derivatives designated as hedging instruments: | ||
Interest rate and foreign exchange instruments | 0 | 3 |
Designated as Hedging Instrument [Member] | Other Current Liabilities [Member] | ||
Derivatives designated as hedging instruments: | ||
Interest rate and foreign exchange instruments | (27) | (17) |
Designated as Hedging Instrument [Member] | Deferred credits and other [Member] | ||
Derivatives designated as hedging instruments: | ||
Interest rate and foreign exchange instruments | (201) | (140) |
Not Designated as Hedging Instrument [Member] | Other current assets [Member] | ||
Derivatives not designated as hedging instruments: | ||
Foreign exchange instruments | 16 | 41 |
Associated offsetting foreign exchange instruments | (16) | (20) |
Commodity contracts not subject to rate recovery | 107 | 34 |
Associated offsetting commodity contracts | (103) | (32) |
Commodity contracts subject to rate recovery | 21 | 41 |
Associated offsetting commodity contracts | (4) | (6) |
Associated offsetting cash collateral | 0 | 0 |
Not Designated as Hedging Instrument [Member] | Other long-term assets [Member] | ||
Derivatives not designated as hedging instruments: | ||
Foreign exchange instruments | 0 | 0 |
Associated offsetting foreign exchange instruments | 0 | 0 |
Commodity contracts not subject to rate recovery | 8 | 11 |
Associated offsetting commodity contracts | (3) | (2) |
Commodity contracts subject to rate recovery | 78 | 76 |
Associated offsetting commodity contracts | (2) | (3) |
Associated offsetting cash collateral | 0 | 0 |
Not Designated as Hedging Instrument [Member] | Other Current Liabilities [Member] | ||
Derivatives not designated as hedging instruments: | ||
Foreign exchange instruments | (41) | (20) |
Associated offsetting foreign exchange instruments | 16 | 20 |
Commodity contracts not subject to rate recovery | (105) | (41) |
Associated offsetting commodity contracts | 103 | 32 |
Commodity contracts subject to rate recovery | (49) | (47) |
Associated offsetting commodity contracts | 4 | 6 |
Associated offsetting cash collateral | 11 | 14 |
Not Designated as Hedging Instrument [Member] | Deferred credits and other [Member] | ||
Derivatives not designated as hedging instruments: | ||
Foreign exchange instruments | 0 | 0 |
Associated offsetting foreign exchange instruments | 0 | 0 |
Commodity contracts not subject to rate recovery | (11) | (10) |
Associated offsetting commodity contracts | 3 | 2 |
Commodity contracts subject to rate recovery | (44) | (47) |
Associated offsetting commodity contracts | 2 | 3 |
Associated offsetting cash collateral | 0 | 0 |
San Diego Gas and Electric Company [Member] | Other current assets [Member] | ||
Derivatives not designated as hedging instruments: | ||
Net amounts presented on the balance sheet | 13 | 26 |
Additional cash collateral for commodity contracts subject to rate recovery | 15 | 16 |
Total | 28 | 42 |
San Diego Gas and Electric Company [Member] | Other long-term assets [Member] | ||
Derivatives not designated as hedging instruments: | ||
Net amounts presented on the balance sheet | 76 | 73 |
Additional cash collateral for commodity contracts subject to rate recovery | 0 | 0 |
Total | 76 | 73 |
San Diego Gas and Electric Company [Member] | Other Current Liabilities [Member] | ||
Derivatives not designated as hedging instruments: | ||
Net amounts presented on the balance sheet | (29) | (23) |
Additional cash collateral for commodity contracts subject to rate recovery | 0 | 0 |
Total | (29) | (23) |
San Diego Gas and Electric Company [Member] | Deferred credits and other [Member] | ||
Derivatives not designated as hedging instruments: | ||
Net amounts presented on the balance sheet | (41) | (44) |
Additional cash collateral for commodity contracts subject to rate recovery | 0 | 0 |
Total | (41) | (44) |
San Diego Gas and Electric Company [Member] | Not Designated as Hedging Instrument [Member] | Other current assets [Member] | ||
Derivatives not designated as hedging instruments: | ||
Commodity contracts subject to rate recovery | 17 | 30 |
Associated offsetting commodity contracts | (4) | (4) |
Associated offsetting cash collateral | 0 | 0 |
San Diego Gas and Electric Company [Member] | Not Designated as Hedging Instrument [Member] | Other long-term assets [Member] | ||
Derivatives not designated as hedging instruments: | ||
Commodity contracts subject to rate recovery | 78 | 76 |
Associated offsetting commodity contracts | (2) | (3) |
Associated offsetting cash collateral | 0 | 0 |
San Diego Gas and Electric Company [Member] | Not Designated as Hedging Instrument [Member] | Other Current Liabilities [Member] | ||
Derivatives not designated as hedging instruments: | ||
Commodity contracts subject to rate recovery | (44) | (41) |
Associated offsetting commodity contracts | 4 | 4 |
Associated offsetting cash collateral | 11 | 14 |
San Diego Gas and Electric Company [Member] | Not Designated as Hedging Instrument [Member] | Deferred credits and other [Member] | ||
Derivatives not designated as hedging instruments: | ||
Commodity contracts subject to rate recovery | (43) | (47) |
Associated offsetting commodity contracts | 2 | 3 |
Associated offsetting cash collateral | 0 | 0 |
Southern California Gas Company [Member] | Other current assets [Member] | ||
Derivatives not designated as hedging instruments: | ||
Net amounts presented on the balance sheet | 4 | 9 |
Additional cash collateral for commodity contracts subject to rate recovery | 4 | 9 |
Total | 8 | 18 |
Southern California Gas Company [Member] | Other long-term assets [Member] | ||
Derivatives not designated as hedging instruments: | ||
Net amounts presented on the balance sheet | 0 | 0 |
Additional cash collateral for commodity contracts subject to rate recovery | 0 | 0 |
Total | 0 | 0 |
Southern California Gas Company [Member] | Other Current Liabilities [Member] | ||
Derivatives not designated as hedging instruments: | ||
Net amounts presented on the balance sheet | (5) | (4) |
Additional cash collateral for commodity contracts subject to rate recovery | 0 | 0 |
Total | (5) | (4) |
Southern California Gas Company [Member] | Deferred credits and other [Member] | ||
Derivatives not designated as hedging instruments: | ||
Net amounts presented on the balance sheet | (1) | 0 |
Additional cash collateral for commodity contracts subject to rate recovery | 0 | 0 |
Total | (1) | 0 |
Southern California Gas Company [Member] | Not Designated as Hedging Instrument [Member] | Other current assets [Member] | ||
Derivatives not designated as hedging instruments: | ||
Commodity contracts subject to rate recovery | 4 | 11 |
Associated offsetting commodity contracts | (2) | |
Southern California Gas Company [Member] | Not Designated as Hedging Instrument [Member] | Other long-term assets [Member] | ||
Derivatives not designated as hedging instruments: | ||
Commodity contracts subject to rate recovery | 0 | 0 |
Associated offsetting commodity contracts | 0 | |
Southern California Gas Company [Member] | Not Designated as Hedging Instrument [Member] | Other Current Liabilities [Member] | ||
Derivatives not designated as hedging instruments: | ||
Commodity contracts subject to rate recovery | (5) | (6) |
Associated offsetting commodity contracts | 2 | |
Southern California Gas Company [Member] | Not Designated as Hedging Instrument [Member] | Deferred credits and other [Member] | ||
Derivatives not designated as hedging instruments: | ||
Commodity contracts subject to rate recovery | $ (1) | 0 |
Associated offsetting commodity contracts | $ 0 |
DERIVATIVE FINANCIAL INSTRUME_6
DERIVATIVE FINANCIAL INSTRUMENTS - DERIVATIVE IMPACT ON INCOME (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Derivative [Line Items] | ||||
Pretax gain (loss) on derivatives recognized in earnings | $ 5 | $ 11 | $ (148) | $ 24 |
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | ||||
Derivative [Line Items] | ||||
Pretax gain (loss) recognized in OCI | (18) | (108) | (261) | (182) |
Pretax (loss) gain reclassified from AOCI into earnings | 0 | (8) | (39) | (8) |
Designated as Hedging Instrument [Member] | Interest Expense [Member] | Cash Flow Hedging [Member] | Interest rate and foreign exchange instruments [Member] | ||||
Derivative [Line Items] | ||||
Pretax gain (loss) recognized in OCI | 5 | (15) | (87) | (18) |
Pretax (loss) gain reclassified from AOCI into earnings | (2) | 0 | (4) | (1) |
Designated as Hedging Instrument [Member] | Other Income (Expense), Net [Member] | Cash Flow Hedging [Member] | Interest rate and foreign exchange instruments [Member] | ||||
Derivative [Line Items] | ||||
Pretax (loss) gain reclassified from AOCI into earnings | 4 | 2 | (37) | 5 |
Designated as Hedging Instrument [Member] | Other Income (Expense), Net [Member] | Cash Flow Hedging [Member] | Foreign Exchange Instruments [Member] | ||||
Derivative [Line Items] | ||||
Pretax (loss) gain reclassified from AOCI into earnings | (1) | 0 | 1 | 0 |
Designated as Hedging Instrument [Member] | Gain On Sale Of Assets [Member] | Cash Flow Hedging [Member] | Interest Rate Contract [Member] | ||||
Derivative [Line Items] | ||||
Pretax gain (loss) recognized in OCI | 0 | 0 | 0 | 0 |
Pretax (loss) gain reclassified from AOCI into earnings | 0 | (10) | 0 | (10) |
Designated as Hedging Instrument [Member] | Equity Earnings [Member] | Cash Flow Hedging [Member] | Interest rate and foreign exchange instruments [Member] | ||||
Derivative [Line Items] | ||||
Pretax gain (loss) recognized in OCI | (18) | (92) | (190) | (160) |
Pretax (loss) gain reclassified from AOCI into earnings | (1) | 0 | (1) | (1) |
Designated as Hedging Instrument [Member] | Revenues: Energy-Related Businesses [Member] | Cash Flow Hedging [Member] | Foreign Exchange Instruments [Member] | ||||
Derivative [Line Items] | ||||
Pretax gain (loss) recognized in OCI | (5) | (1) | 16 | (4) |
Pretax (loss) gain reclassified from AOCI into earnings | 0 | 0 | 2 | (1) |
Not Designated as Hedging Instrument [Member] | ||||
Derivative [Line Items] | ||||
Pretax gain (loss) on derivatives recognized in earnings | 21 | (1) | (54) | 13 |
Not Designated as Hedging Instrument [Member] | Cost of Electric Fuel and Purchased Power [Member] | Commodity Contracts Subject To Rate Recovery [Member] | ||||
Derivative [Line Items] | ||||
Pretax gain (loss) on derivatives recognized in earnings | 9 | (27) | 0 | (25) |
Not Designated as Hedging Instrument [Member] | Other Income (Expense), Net [Member] | Foreign Exchange Instruments [Member] | ||||
Derivative [Line Items] | ||||
Pretax gain (loss) on derivatives recognized in earnings | 2 | 9 | (112) | 19 |
Not Designated as Hedging Instrument [Member] | Revenues: Energy-Related Businesses [Member] | Commodity Contracts not subject to rate recovery [Member] | ||||
Derivative [Line Items] | ||||
Pretax gain (loss) on derivatives recognized in earnings | 13 | 17 | 64 | 17 |
Not Designated as Hedging Instrument [Member] | Cost of Natural Gas [Member] | Commodity Contracts Subject To Rate Recovery [Member] | ||||
Derivative [Line Items] | ||||
Pretax gain (loss) on derivatives recognized in earnings | (3) | 0 | (6) | 2 |
San Diego Gas and Electric Company [Member] | Designated as Hedging Instrument [Member] | Interest Expense [Member] | Cash Flow Hedging [Member] | Interest Rate Contract [Member] | ||||
Derivative [Line Items] | ||||
Pretax gain (loss) recognized in OCI | 0 | (1) | 0 | (1) |
Pretax (loss) gain reclassified from AOCI into earnings | 0 | (1) | 0 | (2) |
San Diego Gas and Electric Company [Member] | Not Designated as Hedging Instrument [Member] | Cost of Electric Fuel and Purchased Power [Member] | Commodity Contracts Subject To Rate Recovery [Member] | ||||
Derivative [Line Items] | ||||
Pretax gain (loss) on derivatives recognized in earnings | 9 | (27) | 0 | (25) |
Southern California Gas Company [Member] | Not Designated as Hedging Instrument [Member] | Cost of Natural Gas [Member] | Commodity Contracts Subject To Rate Recovery [Member] | ||||
Derivative [Line Items] | ||||
Pretax gain (loss) on derivatives recognized in earnings | $ (3) | $ 0 | $ (6) | $ 2 |
DERIVATIVE FINANCIAL INSTRUME_7
DERIVATIVE FINANCIAL INSTRUMENTS - CASH FLOW HEDGES (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2020USD ($) | |
Derivative [Line Items] | |
Cash flow hedge gain (loss) to be reclassified | $ (73) |
Term of interest rate cash flow hedge | 14 years |
Southern California Gas Company [Member] | |
Derivative [Line Items] | |
Cash flow hedge gain (loss) to be reclassified | $ (1) |
Equity Method Investee [Member] | |
Derivative [Line Items] | |
Term of interest rate cash flow hedge | 19 years |
DERIVATIVE FINANCIAL INSTRUME_8
DERIVATIVE FINANCIAL INSTRUMENTS - DERIVATIVE INSTRUMENTS WITH CONTINGENT FEATURES (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Derivative [Line Items] | ||
Derivative fair value | $ 7 | $ 21 |
Collateral | 7 | |
Southern California Gas Company [Member] | ||
Derivative [Line Items] | ||
Derivative fair value | 6 | $ 4 |
Collateral | $ 6 |
FAIR VALUE MEASUREMENTS - RECUR
FAIR VALUE MEASUREMENTS - RECURRING FAIR VALUE MEASURES (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Fair Value Measured at Net Asset Value Per Share [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments at NAV | $ 5 | |
Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Nuclear decommissioning trusts - equity securities | $ 362 | 509 |
Nuclear decommissioning trusts - Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies | 52 | 57 |
Nuclear decommissioning trusts - Municipal bonds | 343 | 282 |
Nuclear decommissioning trusts - Other securities | 294 | 226 |
Nuclear decommissioning trusts - Total debt securities | 689 | 565 |
Total nuclear decommissioning trusts | 1,051 | 1,074 |
Total Assets Measured at Fair Value | 1,208 | 1,285 |
Total Liabilities Measured at Fair Value | 339 | 245 |
Recurring [Member] | Interest rate and foreign exchange instruments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 9 | 24 |
Derivative liabilities | 253 | 157 |
Recurring [Member] | Commodity contracts not subject to rate recovery [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 9 | 11 |
Effect of netting and allocation of collateral | 27 | 43 |
Derivative liabilities | 10 | 17 |
Recurring [Member] | Commodity contracts subject to rate recovery [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 93 | 108 |
Effect of netting and allocation of collateral | 19 | 25 |
Derivative liabilities | 87 | 85 |
Effect of netting and allocation of collateral | (11) | (14) |
Recurring [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Nuclear decommissioning trusts - equity securities | 356 | 503 |
Nuclear decommissioning trusts - Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies | 26 | 46 |
Nuclear decommissioning trusts - Municipal bonds | 0 | 0 |
Nuclear decommissioning trusts - Other securities | 0 | 0 |
Nuclear decommissioning trusts - Total debt securities | 26 | 46 |
Total nuclear decommissioning trusts | 382 | 549 |
Total Assets Measured at Fair Value | 425 | 608 |
Total Liabilities Measured at Fair Value | 0 | 0 |
Recurring [Member] | Level 1 [Member] | Interest rate and foreign exchange instruments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Recurring [Member] | Level 1 [Member] | Commodity contracts not subject to rate recovery [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Effect of netting and allocation of collateral | 27 | 43 |
Derivative liabilities | 0 | 0 |
Recurring [Member] | Level 1 [Member] | Commodity contracts subject to rate recovery [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 3 | 5 |
Effect of netting and allocation of collateral | 13 | 11 |
Derivative liabilities | 11 | 14 |
Effect of netting and allocation of collateral | (11) | (14) |
Recurring [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Nuclear decommissioning trusts - equity securities | 6 | 6 |
Nuclear decommissioning trusts - Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies | 26 | 11 |
Nuclear decommissioning trusts - Municipal bonds | 343 | 282 |
Nuclear decommissioning trusts - Other securities | 294 | 226 |
Nuclear decommissioning trusts - Total debt securities | 663 | 519 |
Total nuclear decommissioning trusts | 669 | 525 |
Total Assets Measured at Fair Value | 690 | 576 |
Total Liabilities Measured at Fair Value | 269 | 178 |
Recurring [Member] | Level 2 [Member] | Interest rate and foreign exchange instruments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 9 | 24 |
Derivative liabilities | 253 | 157 |
Recurring [Member] | Level 2 [Member] | Commodity contracts not subject to rate recovery [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 9 | 11 |
Effect of netting and allocation of collateral | 0 | 0 |
Derivative liabilities | 10 | 17 |
Recurring [Member] | Level 2 [Member] | Commodity contracts subject to rate recovery [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 3 | 8 |
Effect of netting and allocation of collateral | 0 | 8 |
Derivative liabilities | 6 | 4 |
Effect of netting and allocation of collateral | 0 | 0 |
Recurring [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Nuclear decommissioning trusts - equity securities | 0 | 0 |
Nuclear decommissioning trusts - Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies | 0 | 0 |
Nuclear decommissioning trusts - Municipal bonds | 0 | 0 |
Nuclear decommissioning trusts - Other securities | 0 | 0 |
Nuclear decommissioning trusts - Total debt securities | 0 | 0 |
Total nuclear decommissioning trusts | 0 | 0 |
Total Assets Measured at Fair Value | 93 | 101 |
Total Liabilities Measured at Fair Value | 70 | 67 |
Recurring [Member] | Level 3 [Member] | Interest rate and foreign exchange instruments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Recurring [Member] | Level 3 [Member] | Commodity contracts not subject to rate recovery [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Effect of netting and allocation of collateral | 0 | 0 |
Derivative liabilities | 0 | 0 |
Recurring [Member] | Level 3 [Member] | Commodity contracts subject to rate recovery [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 87 | 95 |
Effect of netting and allocation of collateral | 6 | 6 |
Derivative liabilities | 70 | 67 |
Effect of netting and allocation of collateral | 0 | 0 |
San Diego Gas and Electric Company [Member] | Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Nuclear decommissioning trusts - equity securities | 362 | 509 |
Nuclear decommissioning trusts - Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies | 52 | 57 |
Nuclear decommissioning trusts - Municipal bonds | 343 | 282 |
Nuclear decommissioning trusts - Other securities | 294 | 226 |
Nuclear decommissioning trusts - Total debt securities | 689 | 565 |
Total nuclear decommissioning trusts | 1,051 | 1,074 |
Total Assets Measured at Fair Value | 1,155 | 1,189 |
Total Liabilities Measured at Fair Value | 70 | 67 |
San Diego Gas and Electric Company [Member] | Recurring [Member] | Commodity contracts subject to rate recovery [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 89 | 99 |
Effect of netting and allocation of collateral | 15 | 16 |
Derivative liabilities | 81 | 81 |
Effect of netting and allocation of collateral | (11) | (14) |
San Diego Gas and Electric Company [Member] | Recurring [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Nuclear decommissioning trusts - equity securities | 356 | 503 |
Nuclear decommissioning trusts - Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies | 26 | 46 |
Nuclear decommissioning trusts - Municipal bonds | 0 | 0 |
Nuclear decommissioning trusts - Other securities | 0 | 0 |
Nuclear decommissioning trusts - Total debt securities | 26 | 46 |
Total nuclear decommissioning trusts | 382 | 549 |
Total Assets Measured at Fair Value | 392 | 560 |
Total Liabilities Measured at Fair Value | 0 | 0 |
San Diego Gas and Electric Company [Member] | Recurring [Member] | Level 1 [Member] | Commodity contracts subject to rate recovery [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 1 | 1 |
Effect of netting and allocation of collateral | 9 | 10 |
Derivative liabilities | 11 | 14 |
Effect of netting and allocation of collateral | (11) | (14) |
San Diego Gas and Electric Company [Member] | Recurring [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Nuclear decommissioning trusts - equity securities | 6 | 6 |
Nuclear decommissioning trusts - Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies | 26 | 11 |
Nuclear decommissioning trusts - Municipal bonds | 343 | 282 |
Nuclear decommissioning trusts - Other securities | 294 | 226 |
Nuclear decommissioning trusts - Total debt securities | 663 | 519 |
Total nuclear decommissioning trusts | 669 | 525 |
Total Assets Measured at Fair Value | 670 | 528 |
Total Liabilities Measured at Fair Value | 0 | 0 |
San Diego Gas and Electric Company [Member] | Recurring [Member] | Level 2 [Member] | Commodity contracts subject to rate recovery [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 1 | 3 |
Effect of netting and allocation of collateral | 0 | 0 |
Derivative liabilities | 0 | 0 |
Effect of netting and allocation of collateral | 0 | 0 |
San Diego Gas and Electric Company [Member] | Recurring [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Nuclear decommissioning trusts - equity securities | 0 | 0 |
Nuclear decommissioning trusts - Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies | 0 | 0 |
Nuclear decommissioning trusts - Municipal bonds | 0 | 0 |
Nuclear decommissioning trusts - Other securities | 0 | 0 |
Nuclear decommissioning trusts - Total debt securities | 0 | 0 |
Total nuclear decommissioning trusts | 0 | 0 |
Total Assets Measured at Fair Value | 93 | 101 |
Total Liabilities Measured at Fair Value | 70 | 67 |
San Diego Gas and Electric Company [Member] | Recurring [Member] | Level 3 [Member] | Commodity contracts subject to rate recovery [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 87 | 95 |
Effect of netting and allocation of collateral | 6 | 6 |
Derivative liabilities | 70 | 67 |
Effect of netting and allocation of collateral | 0 | 0 |
Southern California Gas Company [Member] | Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Assets Measured at Fair Value | 8 | 18 |
Total Liabilities Measured at Fair Value | 6 | 4 |
Southern California Gas Company [Member] | Recurring [Member] | Commodity contracts subject to rate recovery [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 4 | 9 |
Effect of netting and allocation of collateral | 4 | 9 |
Derivative liabilities | 6 | 4 |
Southern California Gas Company [Member] | Recurring [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Assets Measured at Fair Value | 6 | 5 |
Total Liabilities Measured at Fair Value | 0 | 0 |
Southern California Gas Company [Member] | Recurring [Member] | Level 1 [Member] | Commodity contracts subject to rate recovery [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 2 | 4 |
Effect of netting and allocation of collateral | 4 | 1 |
Derivative liabilities | 0 | 0 |
Southern California Gas Company [Member] | Recurring [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Assets Measured at Fair Value | 2 | 13 |
Total Liabilities Measured at Fair Value | 6 | 4 |
Southern California Gas Company [Member] | Recurring [Member] | Level 2 [Member] | Commodity contracts subject to rate recovery [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 2 | 5 |
Effect of netting and allocation of collateral | 0 | 8 |
Derivative liabilities | 6 | 4 |
Southern California Gas Company [Member] | Recurring [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Assets Measured at Fair Value | 0 | 0 |
Total Liabilities Measured at Fair Value | 0 | 0 |
Southern California Gas Company [Member] | Recurring [Member] | Level 3 [Member] | Commodity contracts subject to rate recovery [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Effect of netting and allocation of collateral | 0 | 0 |
Derivative liabilities | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS - RECON
FAIR VALUE MEASUREMENTS - RECON OF LEVEL 3 ASSETS (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||||
Beginning balance | $ 16,000,000 | $ 182,000,000 | $ 28,000,000 | $ 179,000,000 | $ 179,000,000 |
Realized and unrealized (losses) gains | (9,000,000) | (13,000,000) | (14,000,000) | (8,000,000) | |
Allocated transmission instruments | 1,000,000 | 0 | 1,000,000 | 0 | |
Settlements | 9,000,000 | 7,000,000 | 2,000,000 | 5,000,000 | |
Ending balance | 17,000,000 | 176,000,000 | 17,000,000 | 176,000,000 | 28,000,000 |
Change in unrealized gains (losses) relating to instruments still held at the end of the period | (5,000,000) | (3,000,000) | (13,000,000) | 9,000,000 | |
Level 3 [Member] | San Diego Gas and Electric Company [Member] | Minimum [Member] | |||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||||
Congestion revenue rights (in dollars per MWH) | (3.77) | (8.57) | |||
Market electricity forward price inputs ( in dollars per MWH) | 20.35 | 22 | 20.35 | 22 | |
Level 3 [Member] | San Diego Gas and Electric Company [Member] | Maximum [Member] | |||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||||
Congestion revenue rights (in dollars per MWH) | 6.03 | 35.21 | |||
Market electricity forward price inputs ( in dollars per MWH) | 51.60 | 62.65 | 51.60 | 62.65 | |
Level 3 [Member] | San Diego Gas and Electric Company [Member] | Weighted Average [Member] | |||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||||
Congestion revenue rights (in dollars per MWH) | (1.58) | $ (2.94) | |||
Market electricity forward price inputs ( in dollars per MWH) | $ 34.68 | $ 41.50 | $ 34.68 | $ 41.50 |
FAIR VALUE MEASUREMENTS - FINAN
FAIR VALUE MEASUREMENTS - FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term amounts due from unconsolidated affiliates, allowance for credit losses | $ 3 | |
Unamortized discount and debt issuance costs | 228 | $ 225 |
Finance lease obligations | 1,328 | 1,289 |
Carrying amount [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term amounts due from unconsolidated affiliates | 606 | 742 |
Long-term amounts due to unconsolidated affiliate | 267 | 195 |
Total long-term debt | 21,720 | 21,247 |
Fair value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term amounts due from unconsolidated affiliates | 632 | 759 |
Long-term amounts due to unconsolidated affiliate | 245 | 184 |
Total long-term debt | 24,270 | 22,664 |
Fair value [Member] | Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term amounts due from unconsolidated affiliates | 0 | 0 |
Long-term amounts due to unconsolidated affiliate | 0 | 0 |
Total long-term debt | 0 | 0 |
Fair value [Member] | Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term amounts due from unconsolidated affiliates | 632 | 759 |
Long-term amounts due to unconsolidated affiliate | 245 | 184 |
Total long-term debt | 24,270 | 22,638 |
Fair value [Member] | Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term amounts due from unconsolidated affiliates | 0 | 0 |
Long-term amounts due to unconsolidated affiliate | 0 | 0 |
Total long-term debt | 0 | 26 |
San Diego Gas and Electric Company [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Unamortized discount and debt issuance costs | 51 | 48 |
Finance lease obligations | 1,278 | 1,270 |
San Diego Gas and Electric Company [Member] | Carrying amount [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total long-term debt | 5,723 | 5,140 |
San Diego Gas and Electric Company [Member] | Fair value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total long-term debt | 6,759 | 5,662 |
San Diego Gas and Electric Company [Member] | Fair value [Member] | Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total long-term debt | 0 | 0 |
San Diego Gas and Electric Company [Member] | Fair value [Member] | Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total long-term debt | 6,759 | 5,662 |
San Diego Gas and Electric Company [Member] | Fair value [Member] | Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total long-term debt | 0 | 0 |
Southern California Gas Company [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Unamortized discount and debt issuance costs | 40 | 34 |
Finance lease obligations | 50 | 19 |
Southern California Gas Company [Member] | Carrying amount [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total long-term debt | 4,459 | 3,809 |
Southern California Gas Company [Member] | Fair value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total long-term debt | 5,282 | 4,189 |
Southern California Gas Company [Member] | Fair value [Member] | Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total long-term debt | 0 | 0 |
Southern California Gas Company [Member] | Fair value [Member] | Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total long-term debt | 5,282 | 4,189 |
Southern California Gas Company [Member] | Fair value [Member] | Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total long-term debt | $ 0 | $ 0 |
SAN ONOFRE NUCLEAR GENERATING_3
SAN ONOFRE NUCLEAR GENERATING STATION (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2020 | Mar. 31, 2020 | |
Jointly Owned Utility Plant Interests [Line Items] | ||
Anticipated term of dismantlement work | 10 years | |
San Diego Gas and Electric Company [Member] | ||
Jointly Owned Utility Plant Interests [Line Items] | ||
Percent of dismantlement work expense (as a percent) | 20.00% | |
ARO related to decommissioning costs | $ 595 | |
Cost study estimate decommissioning escalated | $ 860 | |
Jointly Owned Nuclear Power Plant [Member] | San Diego Gas and Electric Company [Member] | ||
Jointly Owned Utility Plant Interests [Line Items] | ||
Jointly owned utility plant, proportionate ownership share (as a percent) | 20.00% | |
SONGS 2 and 3 Decommissioning [Member] | San Diego Gas and Electric Company [Member] | ||
Jointly Owned Utility Plant Interests [Line Items] | ||
Nuclear decommissioning trust authorized withdrawal amount | $ 109 |
SAN ONOFRE NUCLEAR GENERATING_4
SAN ONOFRE NUCLEAR GENERATING STATION - NUCLEAR DECOMMISSIONING TRUSTS (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Debt Securities, Available-for-sale [Line Items] | |||||
Cost | $ 813 | $ 813 | $ 729 | ||
Gross unrealized gains | 264 | 264 | 360 | ||
Gross unrealized losses | (15) | (15) | (7) | ||
Estimated fair value | 1,062 | 1,062 | 1,082 | ||
Proceeds from sales | 245 | $ 272 | 797 | $ 497 | |
Gross realized gains | 7 | 8 | 99 | 13 | |
Gross realized losses | (6) | $ (1) | (11) | $ (3) | |
Total debt securities [Member] | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Cost | 659 | 659 | 545 | ||
Gross unrealized gains | 33 | 33 | 21 | ||
Gross unrealized losses | (3) | (3) | (1) | ||
Estimated fair value | 689 | 689 | 565 | ||
U.S. government corporations and agencies [Member] | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Cost | 51 | 51 | 57 | ||
Gross unrealized gains | 1 | 1 | 0 | ||
Gross unrealized losses | 0 | 0 | 0 | ||
Estimated fair value | 52 | 52 | 57 | ||
Municipal bonds [Member] | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Cost | 327 | 327 | 270 | ||
Gross unrealized gains | 17 | 17 | 12 | ||
Gross unrealized losses | (1) | (1) | 0 | ||
Estimated fair value | 343 | 343 | 282 | ||
Other securities [Member] | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Cost | 281 | 281 | 218 | ||
Gross unrealized gains | 15 | 15 | 9 | ||
Gross unrealized losses | (2) | (2) | (1) | ||
Estimated fair value | 294 | 294 | 226 | ||
Equity securities [Member] | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Cost | 143 | 143 | 176 | ||
Gross unrealized gains | 231 | 231 | 339 | ||
Gross unrealized losses | (12) | (12) | (6) | ||
Estimated fair value | 362 | 362 | 509 | ||
Cash and cash equivalents [Member] | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Cost | 11 | 11 | 8 | ||
Gross unrealized gains | 0 | 0 | 0 | ||
Gross unrealized losses | 0 | 0 | 0 | ||
Estimated fair value | $ 11 | $ 11 | $ 8 |
SAN ONOFRE NUCLEAR GENERATING_5
SAN ONOFRE NUCLEAR GENERATING STATION - NUCLEAR INSURANCE (Details) - San Diego Gas and Electric Company [Member] $ in Millions | Jun. 30, 2020USD ($) |
Schedule Of Nuclear Insurance [Line Items] | |
Maximum nuclear liability insurance coverage | $ 450 |
Maximum secondary financial protection | 110 |
Maximum nuclear liability loss coverage per incident | 560 |
Nuclear property damage insurance | 130 |
Federal nuclear property damage insurance, minimum required | 50 |
Maximum premium assessment under nuclear property damage insurance | 3.5 |
Maximum nuclear property insurance terrorism coverage | $ 3,240 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - LEGAL PROCEEDINGS (Details) | Aug. 03, 2020plaintifflawsuit | Oct. 31, 2018plaintiff | Aug. 31, 2018USD ($) | Jan. 31, 2017lawsuit | Feb. 29, 2016USD ($) | Jun. 30, 2020USD ($)lawsuit | Jun. 30, 2020USD ($)lawsuit | Dec. 31, 2018claimant | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | [1] |
Loss Contingencies [Line Items] | |||||||||||
Liability for legal proceedings | $ 416,000,000 | $ 416,000,000 | |||||||||
Reserve for Aliso Canyon costs | $ 256,000,000 | 256,000,000 | $ 9,000,000 | ||||||||
Consolidated Class Action Complaints [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Number of lawsuits filed | lawsuit | 2 | ||||||||||
Property Class Action [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Number of lawsuits filed | lawsuit | 1 | ||||||||||
Complaints Filed by Public Entities [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Number of lawsuits filed | lawsuit | 3 | ||||||||||
Southern California Gas Company [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Liability for legal proceedings | $ 270,000,000 | 270,000,000 | |||||||||
Insurance settlements receivable | 1,277,000,000 | 1,277,000,000 | |||||||||
Reserve for Aliso Canyon costs | 256,000,000 | 256,000,000 | $ 9,000,000 | ||||||||
Southern California Gas Company [Member] | Aliso Canyon Natural Gas Storage Facility Gas Leak [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Liability for legal proceedings | 260,000,000 | 260,000,000 | |||||||||
Loss contingency accrual | 1,411,000,000 | 1,411,000,000 | $ 277,000,000 | ||||||||
Net book value of Aliso Canyon facility | 775,000,000 | 775,000,000 | |||||||||
Payable related to natural gas leak, noncurrent | 256,000,000 | 256,000,000 | |||||||||
Receivable related to natural gas leak | $ 505,000,000 | 505,000,000 | |||||||||
Insurance proceeds | $ 772,000,000 | ||||||||||
Southern California Gas Company [Member] | Shareholder Derivative Complaint [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Number of lawsuits | lawsuit | 4 | 4 | |||||||||
Southern California Gas Company [Member] | Damages from Product Defects [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Maximum occupational safety and health fines | $ 75,000 | ||||||||||
Penalty assessments | 233,500 | ||||||||||
Reimbursement costs | 246,673 | ||||||||||
Maximum other assessments in settlement of criminal complaint | $ 6,000,000 | ||||||||||
Southern California Gas Company [Member] | Complaints Filed by Firefighters [Member] | Aliso Canyon Natural Gas Storage Facility Gas Leak [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Number of plaintiffs | plaintiff | 51 | ||||||||||
Southern California Gas Company [Member] | Complaints Filed by Public Entities [Member] | Funding for Environmental Projects [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Settlement amount payable | $ 120,000,000 | ||||||||||
Southern California Gas Company [Member] | Complaints Filed by Public Entities [Member] | Civil Penalties [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Settlement amount payable | $ 21,000,000 | ||||||||||
Sempra Mexico [Member] | ECA LNG Regasification facility [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Number of lawsuits | lawsuit | 4 | 4 | |||||||||
Number of plaintiffs | claimant | 2 | ||||||||||
Subsequent Event [Member] | Southern California Gas Company [Member] | Aliso Canyon Natural Gas Storage Facility Gas Leak [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Number of lawsuits | lawsuit | 394 | ||||||||||
Number of plaintiffs | plaintiff | 36,000 | ||||||||||
Subsequent Event [Member] | Energy Future Holdings Corp. [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Number of lawsuits | lawsuit | 275 | ||||||||||
Number of lawsuits filed | lawsuit | 182 | ||||||||||
Deferred Credits and Other [Member] | Southern California Gas Company [Member] | Aliso Canyon Natural Gas Storage Facility Gas Leak [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Reserve for Aliso Canyon costs | $ 7,000,000 | $ 7,000,000 | |||||||||
[1] | Derived from audited financial statements. |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - OTHER LITIGATION (Details) £ in Millions, $ in Millions | Aug. 03, 2020lawsuitproof_of_claim | Jun. 30, 2020USD ($) | Jun. 30, 2020GBP (£) | Oct. 01, 2014USD ($) | Oct. 01, 2014GBP (£) |
R B S Sempra Commodities [Member] | HMRC VAT Claim [Member] | |||||
Loss Contingencies [Line Items] | |||||
VAT tax claim paid upon appeal | $ 138 | £ 86 | |||
Plaintiffs [Member] | HMRC VAT Claim [Member] | |||||
Loss Contingencies [Line Items] | |||||
Damages awarded | $ 55 | £ 45 | |||
Energy Future Holdings Corp. [Member] | Subsequent Event [Member] | |||||
Loss Contingencies [Line Items] | |||||
Number of lawsuits | 275 | ||||
Number of lawsuits filed | 182 | ||||
Number of proof of claims | proof_of_claim | 28,000 | ||||
R B S Sempra Commodities [Member] | |||||
Loss Contingencies [Line Items] | |||||
Equity losses on investment | $ | $ 100 | ||||
Maximum [Member] | R B S Sempra Commodities [Member] | HMRC VAT Claim [Member] | |||||
Loss Contingencies [Line Items] | |||||
VAT tax claim, penalty (as a percentage) | 100.00% | 100.00% |
COMMITMENTS AND CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES - LESSEE CASH FLOW INFORMATION (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Lessee, Lease, Description [Line Items] | ||
Increase in operating lease obligations for right-of-use assets | $ 21 | $ 559 |
Increase in finance lease obligations for investment in PP&E | 56 | 16 |
Aggregate maximum lease limit | 232 | |
San Diego Gas and Electric Company [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Increase in operating lease obligations for right-of-use assets | 0 | 146 |
Increase in finance lease obligations for investment in PP&E | 20 | 7 |
Aggregate maximum lease limit, utilized | 65 | |
Southern California Gas Company [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Increase in operating lease obligations for right-of-use assets | 2 | 117 |
Increase in finance lease obligations for investment in PP&E | 36 | $ 9 |
Aggregate maximum lease limit, utilized | $ 89 |
COMMITMENTS AND CONTINGENCIES_4
COMMITMENTS AND CONTINGENCIES - LESSOR INFORMATION (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Lessee, Lease, Description [Line Items] | ||||
Minimum lease payments | $ 47 | $ 49 | $ 97 | $ 99 |
Variable lease payments | 0 | 2 | 0 | 6 |
Total revenues from operating leases | 47 | 51 | 97 | 105 |
Assets Leased to Others [Member] | ||||
Lessee, Lease, Description [Line Items] | ||||
Depreciation | $ 9 | $ 10 | $ 19 | $ 19 |
COMMITMENTS AND CONTINGENCIES_5
COMMITMENTS AND CONTINGENCIES - CONTRACTUAL COMMITMENTS (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2020USD ($) | |
SoCalGas [Member] | Natural Gas Minimum Purchase Obligation Contracts [Member] | |
Loss Contingencies [Line Items] | |
Increase in contractual commitments | $ 51 |
Change in 2020 | 16 |
Change in 2021 | 35 |
SoCalGas [Member] | Natural Gas Interstate Pipeline Capacity Agreements [Member] | |
Loss Contingencies [Line Items] | |
Increase in contractual commitments | 625 |
Change in 2020 | (61) |
Change in 2021 | 17 |
Change in 2022 | 88 |
Change in 2023 | 100 |
Change in 2024 | 90 |
Change thereafter | 391 |
Sempra LNG [Member] | Natural Gas Storage and Transportation Contracts [Member] | |
Loss Contingencies [Line Items] | |
Increase in contractual commitments | 535 |
Change in 2020 | (32) |
Change in 2021 | 38 |
Change in 2022 | 34 |
Change in 2023 | 31 |
Change in 2024 | 28 |
Change thereafter | 436 |
Sempra LNG [Member] | Liquefied Natural Gas Contracts [Member] | |
Loss Contingencies [Line Items] | |
Change in 2020 | (194) |
Change in 2021 | (11) |
Change in 2022 | (37) |
Change in 2023 | (48) |
Change in 2024 | (52) |
Change thereafter | $ (234) |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | 14 Months Ended | |||||
Apr. 30, 2019segment | Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($)segment | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($)segment | Dec. 31, 2019USD ($) | May 16, 2019 | ||
Segment Reporting Information [Line Items] | |||||||||
Number of reportable segments | segment | 6 | 5 | 5 | ||||||
Segment Reporting Information, Profit (Loss) [Abstract] | |||||||||
REVENUES | $ 2,526 | $ 2,230 | $ 5,555 | $ 5,128 | |||||
INTEREST EXPENSE | 274 | 258 | 554 | 518 | |||||
INTEREST INCOME | 22 | 21 | 49 | 42 | |||||
DEPRECIATION AND AMORTIZATION | 412 | 389 | 824 | 772 | |||||
Income tax expense (benefit) from continuing operations | 168 | 47 | (39) | 89 | |||||
Equity earnings (losses), before income tax: | 84 | 2 | 41 | 7 | |||||
Equity earnings, net of income tax: | 149 | 116 | 455 | 212 | |||||
Equity earnings | 233 | 118 | 496 | 219 | |||||
EARNINGS (LOSSES) ATTRIBUTABLE TO COMMON SHARES | 2,239 | 354 | 2,999 | 795 | |||||
Discontinued operations | 1,775 | 70 | 1,847 | 19 | |||||
Segment Reporting Information, Additional Information [Abstract] | |||||||||
EXPENDITURES FOR PROPERTY, PLANT & EQUIPMENT | 2,198 | 1,651 | |||||||
ASSETS | 68,385 | 68,385 | $ 68,385 | $ 65,665 | [1] | ||||
EQUITY METHOD AND OTHER INVESTMENTS | 13,955 | 13,955 | 13,955 | 13,622 | |||||
Operating Segments [Member] | SDG&E [Member] | |||||||||
Segment Reporting Information, Profit (Loss) [Abstract] | |||||||||
REVENUES | 1,235 | 1,094 | 2,504 | 2,239 | |||||
INTEREST EXPENSE | 103 | 102 | 204 | 205 | |||||
INTEREST INCOME | 0 | 1 | 1 | 2 | |||||
DEPRECIATION AND AMORTIZATION | 197 | 189 | 398 | 375 | |||||
Income tax expense (benefit) from continuing operations | 70 | 35 | 128 | 40 | |||||
EARNINGS (LOSSES) ATTRIBUTABLE TO COMMON SHARES | 193 | 143 | 455 | 319 | |||||
Segment Reporting Information, Additional Information [Abstract] | |||||||||
EXPENDITURES FOR PROPERTY, PLANT & EQUIPMENT | 850 | 708 | |||||||
ASSETS | 21,333 | 21,333 | 21,333 | 20,560 | |||||
Operating Segments [Member] | SoCalGas [Member] | |||||||||
Segment Reporting Information, Profit (Loss) [Abstract] | |||||||||
REVENUES | 1,010 | 806 | 2,405 | 2,167 | |||||
INTEREST EXPENSE | 40 | 34 | 80 | 68 | |||||
INTEREST INCOME | 1 | 1 | 2 | 1 | |||||
DEPRECIATION AND AMORTIZATION | 162 | 148 | 321 | 295 | |||||
Income tax expense (benefit) from continuing operations | 49 | (4) | 101 | 15 | |||||
EARNINGS (LOSSES) ATTRIBUTABLE TO COMMON SHARES | 146 | 30 | 449 | 294 | |||||
Segment Reporting Information, Additional Information [Abstract] | |||||||||
EXPENDITURES FOR PROPERTY, PLANT & EQUIPMENT | 885 | 659 | |||||||
ASSETS | 17,899 | 17,899 | 17,899 | 17,077 | |||||
Operating Segments [Member] | Sempra Texas Utilities [Member] | |||||||||
Segment Reporting Information, Profit (Loss) [Abstract] | |||||||||
Equity earnings (losses), before income tax: | 0 | 1 | 0 | 1 | |||||
Equity earnings, net of income tax: | 143 | 112 | 249 | 206 | |||||
EARNINGS (LOSSES) ATTRIBUTABLE TO COMMON SHARES | 144 | 113 | 249 | 207 | |||||
Segment Reporting Information, Additional Information [Abstract] | |||||||||
ASSETS | 11,881 | 11,881 | 11,881 | 11,619 | |||||
EQUITY METHOD AND OTHER INVESTMENTS | 11,858 | 11,858 | 11,858 | 11,619 | |||||
Operating Segments [Member] | Sempra Mexico [Member] | |||||||||
Segment Reporting Information, Profit (Loss) [Abstract] | |||||||||
REVENUES | 275 | 318 | 584 | 701 | |||||
INTEREST EXPENSE | 32 | 29 | 64 | 59 | |||||
INTEREST INCOME | 15 | 19 | 33 | 38 | |||||
DEPRECIATION AND AMORTIZATION | 47 | 46 | 94 | 90 | |||||
Income tax expense (benefit) from continuing operations | 54 | 44 | (253) | 116 | |||||
Equity earnings, net of income tax: | 6 | 4 | 206 | 6 | |||||
EARNINGS (LOSSES) ATTRIBUTABLE TO COMMON SHARES | 61 | 73 | 252 | 130 | |||||
Segment Reporting Information, Additional Information [Abstract] | |||||||||
EXPENDITURES FOR PROPERTY, PLANT & EQUIPMENT | 321 | 240 | |||||||
ASSETS | 10,763 | 10,763 | 10,763 | 9,938 | |||||
EQUITY METHOD AND OTHER INVESTMENTS | 914 | 914 | 914 | 741 | |||||
Operating Segments [Member] | Sempra Renewables [Member] | |||||||||
Segment Reporting Information, Profit (Loss) [Abstract] | |||||||||
REVENUES | 0 | 3 | 0 | 10 | |||||
INTEREST EXPENSE | 0 | 0 | 0 | 3 | |||||
INTEREST INCOME | 0 | 1 | 0 | 11 | |||||
Income tax expense (benefit) from continuing operations | 0 | 14 | 0 | 4 | |||||
Equity earnings (losses), before income tax: | 0 | 2 | 0 | 5 | |||||
EARNINGS (LOSSES) ATTRIBUTABLE TO COMMON SHARES | 0 | 46 | 0 | 59 | |||||
Segment Reporting Information, Additional Information [Abstract] | |||||||||
EXPENDITURES FOR PROPERTY, PLANT & EQUIPMENT | 0 | 2 | |||||||
Operating Segments [Member] | Sempra LNG [Member] | |||||||||
Segment Reporting Information, Profit (Loss) [Abstract] | |||||||||
REVENUES | 69 | 86 | 192 | 227 | |||||
INTEREST EXPENSE | 15 | 3 | 31 | 7 | |||||
INTEREST INCOME | 18 | 16 | 40 | 30 | |||||
DEPRECIATION AND AMORTIZATION | 3 | 3 | 5 | 5 | |||||
Income tax expense (benefit) from continuing operations | 18 | 2 | 41 | 6 | |||||
Equity earnings (losses), before income tax: | 84 | 0 | 141 | 2 | |||||
EARNINGS (LOSSES) ATTRIBUTABLE TO COMMON SHARES | 61 | 6 | 136 | 11 | |||||
Segment Reporting Information, Additional Information [Abstract] | |||||||||
EXPENDITURES FOR PROPERTY, PLANT & EQUIPMENT | 136 | 40 | |||||||
ASSETS | 4,049 | 4,049 | 4,049 | 3,901 | |||||
EQUITY METHOD AND OTHER INVESTMENTS | 1,183 | 1,183 | 1,183 | 1,256 | |||||
Corporate, Non-Segment [Member] | |||||||||
Segment Reporting Information, Profit (Loss) [Abstract] | |||||||||
REVENUES | 0 | 0 | 1 | 0 | |||||
INTEREST EXPENSE | 102 | 110 | 211 | 219 | |||||
INTEREST INCOME | 3 | 0 | 3 | 1 | |||||
DEPRECIATION AND AMORTIZATION | 3 | 3 | 6 | 7 | |||||
Income tax expense (benefit) from continuing operations | (23) | (44) | (56) | (92) | |||||
Equity earnings (losses), before income tax: | 0 | (1) | (100) | (1) | |||||
EARNINGS (LOSSES) ATTRIBUTABLE TO COMMON SHARES | (141) | (127) | (389) | (244) | |||||
Segment Reporting Information, Additional Information [Abstract] | |||||||||
EXPENDITURES FOR PROPERTY, PLANT & EQUIPMENT | 6 | 2 | |||||||
ASSETS | 4,666 | 4,666 | 4,666 | 749 | |||||
EQUITY METHOD AND OTHER INVESTMENTS | 0 | 0 | 0 | 6 | |||||
Segment Reconciling Items [Member] | |||||||||
Segment Reporting Information, Profit (Loss) [Abstract] | |||||||||
REVENUES | (1) | (1) | (2) | (1) | |||||
Discontinued operations | 1,775 | 70 | 1,847 | 19 | |||||
Segment Reporting Information, Additional Information [Abstract] | |||||||||
Discontinued operations | 0 | 0 | 0 | 3,958 | |||||
Intersegment eliminations [Member] | |||||||||
Segment Reporting Information, Profit (Loss) [Abstract] | |||||||||
REVENUES | (62) | (76) | (129) | (215) | |||||
INTEREST EXPENSE | (18) | (20) | (36) | (43) | |||||
INTEREST INCOME | (15) | (17) | (30) | (41) | |||||
Segment Reporting Information, Additional Information [Abstract] | |||||||||
ASSETS | (2,206) | (2,206) | $ (2,206) | $ (2,137) | |||||
Intersegment eliminations [Member] | SDG&E [Member] | |||||||||
Segment Reporting Information, Profit (Loss) [Abstract] | |||||||||
REVENUES | 2 | 2 | 3 | 3 | |||||
Intersegment eliminations [Member] | SoCalGas [Member] | |||||||||
Segment Reporting Information, Profit (Loss) [Abstract] | |||||||||
REVENUES | 20 | 17 | 38 | 34 | |||||
Intersegment eliminations [Member] | Sempra Mexico [Member] | |||||||||
Segment Reporting Information, Profit (Loss) [Abstract] | |||||||||
REVENUES | 28 | 32 | 57 | 60 | |||||
Intersegment eliminations [Member] | Sempra LNG [Member] | |||||||||
Segment Reporting Information, Profit (Loss) [Abstract] | |||||||||
REVENUES | $ 12 | $ 25 | $ 31 | $ 118 | |||||
Oncor Electric Delivery Company LLC. [Member] | Oncor Holdings [Member] | Sempra Texas Utilities [Member] | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Ownership interest (as a percent) | 80.25% | 80.25% | 80.25% | ||||||
Sharyland Holdings, LP [Member] | Sempra Texas Utilities [Member] | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Acquired percentage interest | 50.00% | ||||||||
[1] | Derived from audited financial statements. |
Uncategorized Items - sre202006
Label | Element | Value |
Cumulative Effect, Period of Adoption, Adjustment [Member] | ||
Accounts Receivable, Allowance for Credit Loss | us-gaap_AllowanceForDoubtfulAccountsReceivable | $ 1,000,000 |
Cumulative Effect, Period of Adoption, Adjustment [Member] | Southern California Gas Company [Member] | ||
Accounts Receivable, Allowance for Credit Loss | us-gaap_AllowanceForDoubtfulAccountsReceivable | 0 |
Cumulative Effect, Period of Adoption, Adjustment [Member] | San Diego Gas and Electric Company [Member] | ||
Accounts Receivable, Allowance for Credit Loss | us-gaap_AllowanceForDoubtfulAccountsReceivable | $ 0 |