DOCUMENT_AND_ENTITY_INFORMATIO
DOCUMENT AND ENTITY INFORMATION | 3 Months Ended |
Sep. 30, 2013 | |
Document and Entity Information [Abstract] | ' |
Entity Registrant Name | 'Sempra Energy |
Document Type | '10-Q |
Document Period End Date | 30-Sep-13 |
Amendment Flag | 'false |
Document Fiscal Year Focus | '2013 |
Document Fiscal Period Focus | 'Q3 |
Current Fiscal Year End Date | '--12-31 |
Entity Filer Category | 'Large Accelerated Filer |
Entity Common Shares Outstanding | 244,399,914 |
Entity Central Index Key | '0001032208 |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | |
In Millions, unless otherwise specified | |||
Current assets: | ' | ' | |
Cash and cash equivalents | $1,061 | $475 | [1] |
Restricted cash | 28 | 46 | [1] |
Trade accounts receivable | 982 | 1,146 | [1] |
Other accounts and notes receivable | 194 | 153 | [1] |
Inventories | 463 | 408 | [1] |
Income taxes receivable | 132 | 56 | [1] |
Deferred income taxes, net current assets | 119 | 148 | [1] |
Regulatory balancing accounts, undercollected | 346 | 395 | [1] |
Regulatory assets | 100 | 62 | [1] |
Fixed-price contracts and other derivatives, current assets | 76 | 95 | [1] |
U.S. Treasury grants receivable | 0 | 258 | [1] |
Assets Held For Sale Current | 0 | 296 | [1] |
Other current assets | 211 | 157 | [1] |
Total current assets | 3,712 | 3,695 | [1] |
Investments And Other Assets [Abstract] | ' | ' | |
Restricted cash, noncurrent | 21 | 22 | [1] |
Regulatory assets arising from pension and other postretirement benefit obligations | 1,173 | 1,151 | [1] |
Regulatory assets arising from wildfire litigation costs | 339 | 364 | [1] |
Other regulatory assets | 1,947 | 1,227 | [1] |
Nuclear decommissioning trusts | 981 | 908 | [1] |
Other investments | 1,564 | 1,516 | [1] |
Goodwill | 1,045 | 1,111 | [1] |
Other intangible assets | 428 | 436 | [1] |
Sundry | 928 | 878 | [1] |
Total investments and other assets | 8,426 | 7,613 | [1] |
Property, plant and equipment: | ' | ' | |
Property, plant and equipment | 33,573 | 33,528 | [1] |
Less accumulated depreciation and amortization | -8,810 | -8,337 | [1] |
Property, plant and equipment, net | 24,763 | 25,191 | [1] |
Total assets | 36,901 | 36,499 | [1] |
Current liabilities: | ' | ' | |
Short-term debt | 522 | 546 | [1] |
Accounts payable - trade | 859 | 976 | [1] |
Accounts payable - other | 131 | 134 | [1] |
Dividends and interest payable | 314 | 266 | [1] |
Accrued compensation and benefits | 286 | 337 | [1] |
Regulatory balancing accounts, overcollected | 82 | 141 | [1] |
Current portion of long-term debt | 1,441 | 725 | [1] |
Fixed-price contracts and other derivatives, current liabilities | 64 | 77 | [1] |
Customer deposits | 155 | 143 | [1] |
Reserve for wildfire litigation (Note 10) | 127 | 305 | [1] |
Other current liabilities | 549 | 608 | [1] |
Total current liabilities | 4,530 | 4,258 | [1] |
Long-term debt | 10,478 | 11,621 | [1] |
Deferred Credits And Other Liabilities [Abstract] | ' | ' | |
Customer advances for construction | 145 | 144 | [1] |
Pension and other postretirement benefit obligations, net of plan assets | 1,472 | 1,456 | [1] |
Deferred income taxes, net noncurrent liabilities | 2,543 | 2,100 | [1] |
Deferred investment tax credits | 43 | 46 | [1] |
Regulatory liabilities arising from removal obligations | 2,541 | 2,720 | [1] |
Asset retirement obligations | 2,111 | 2,033 | [1] |
Fixed-price contracts and other derivatives, noncurrent liabilities | 239 | 252 | [1] |
Deferred credits and other | 1,045 | 1,107 | [1] |
Total deferred credits and other liabilities | 10,139 | 9,858 | [1] |
Contingently redeemable preferred stock of subsidiary | 0 | 79 | [1] |
Equity: | ' | ' | |
Preferred stock | 0 | 0 | [1] |
Common stock | 2,424 | 2,217 | [1] |
Retained earnings | 8,700 | 8,441 | [1] |
Accumulated other comprehensive income (loss) | -215 | -376 | [1] |
Total shareholders' equity | 10,909 | 10,282 | [1] |
Preferred stock of subsidiaries | 20 | 20 | [1] |
Other noncontrolling interests | 825 | 381 | [1] |
Total equity | 11,754 | 10,683 | [1] |
Total liabilities and equity | 36,901 | 36,499 | [1] |
San Diego Gas and Electric Company and Subsidiary [Member] | ' | ' | |
Current assets: | ' | ' | |
Cash and cash equivalents | 167 | 87 | [1] |
Restricted cash | 9 | 10 | [1] |
Trade accounts receivable | 335 | 252 | [1] |
Other accounts and notes receivable | 36 | 21 | [1] |
Inventories | 78 | 82 | [1] |
Due from unconsolidated affiliates | 1 | 39 | [1] |
Income taxes receivable | 0 | 35 | [1] |
Deferred income taxes, net current assets | 53 | 0 | [1] |
Regulatory balancing accounts, net | 346 | 395 | [1] |
Regulatory assets arising from fixed-price contracts and other derivatives - current | 40 | 39 | [1] |
Regulatory assets | 48 | 10 | [1] |
Fixed-price contracts and other derivatives, current assets | 21 | 41 | [1] |
Other current assets | 82 | 76 | [1] |
Total current assets | 1,216 | 1,087 | [1] |
Investments And Other Assets [Abstract] | ' | ' | |
Restricted cash, noncurrent | 21 | 22 | [1] |
Deferred taxes recoverable in rates | 755 | 718 | [1] |
Regulatory assets arising from fixed-price contracts and other derivatives - noncurrent | 90 | 110 | [1] |
Regulatory assets arising from pension and other postretirement benefit obligations | 292 | 303 | [1] |
Regulatory assets arising from wildfire litigation costs | 339 | 364 | [1] |
Other regulatory assets | 834 | 252 | [1] |
Nuclear decommissioning trusts | 981 | 908 | [1] |
Sundry | 164 | 117 | [1] |
Total investments and other assets | 3,476 | 2,794 | [1] |
Property, plant and equipment: | ' | ' | |
Property, plant and equipment | 14,049 | 14,124 | [1] |
Less accumulated depreciation and amortization | -3,466 | -3,261 | [1] |
Property, plant and equipment, net | 10,583 | 10,863 | [1] |
Total assets | 15,275 | 14,744 | [1] |
Current liabilities: | ' | ' | |
Accounts payable - trade | 320 | 300 | [1] |
Due to unconsolidated affiliates | 13 | 19 | [1] |
Income taxes payable | 30 | 0 | [1] |
Deferred income taxes, net current liabilities | 0 | 26 | [1] |
Dividends and interest payable | 53 | 36 | [1] |
Accrued compensation and benefits | 82 | 129 | [1] |
Current portion of long-term debt | 45 | 16 | [1] |
Fixed-price contracts and other derivatives, current liabilities | 45 | 56 | [1] |
Customer deposits | 71 | 60 | [1] |
Construction deposits by large customers | 8 | 51 | [1] |
Reserve for wildfire litigation (Note 10) | 127 | 305 | [1] |
Preferred stock pending redemption | 82 | 0 | [1] |
Other current liabilities | 213 | 106 | [1] |
Total current liabilities | 1,089 | 1,104 | [1] |
Long-term debt | 4,527 | 4,292 | [1] |
Deferred Credits And Other Liabilities [Abstract] | ' | ' | |
Customer advances for construction | 24 | 17 | [1] |
Pension and other postretirement benefit obligations, net of plan assets | 328 | 340 | [1] |
Deferred income taxes, net noncurrent liabilities | 1,872 | 1,636 | [1] |
Deferred investment tax credits | 24 | 25 | [1] |
Regulatory liabilities arising from removal obligations | 1,347 | 1,603 | [1] |
Asset retirement obligations | 901 | 733 | [1] |
Fixed-price contracts and other derivatives, noncurrent liabilities | 183 | 209 | [1] |
Deferred credits and other | 392 | 408 | [1] |
Total deferred credits and other liabilities | 5,071 | 4,971 | [1] |
Contingently redeemable preferred stock | 0 | 79 | [1] |
Equity: | ' | ' | |
Common stock | 1,338 | 1,338 | [1] |
Retained earnings | 3,180 | 2,895 | [1] |
Accumulated other comprehensive income (loss) | -9 | -11 | [1] |
Total shareholders' equity | 4,509 | 4,222 | [1] |
Other noncontrolling interests | 79 | 76 | [1] |
Total equity | 4,588 | 4,298 | [1] |
Total liabilities and equity | 15,275 | 14,744 | [1] |
Southern California Gas Company [Member] | ' | ' | |
Current assets: | ' | ' | |
Cash and cash equivalents | 15 | 83 | [1] |
Trade accounts receivable | 314 | 539 | [1] |
Other accounts and notes receivable | 77 | 51 | [1] |
Inventories | 177 | 151 | [1] |
Due from unconsolidated affiliates | 14 | 24 | [1] |
Income taxes receivable | 139 | 104 | [1] |
Deferred income taxes, net current assets | 0 | 3 | [1] |
Regulatory assets | 4 | 4 | [1] |
Other current assets | 34 | 35 | [1] |
Total current assets | 774 | 994 | [1] |
Investments And Other Assets [Abstract] | ' | ' | |
Regulatory assets arising from pension and other postretirement benefit obligations | 869 | 835 | [1] |
Other regulatory assets | 267 | 148 | [1] |
Sundry | 125 | 77 | [1] |
Total investments and other assets | 1,261 | 1,060 | [1] |
Property, plant and equipment: | ' | ' | |
Property, plant and equipment | 11,558 | 11,187 | [1] |
Less accumulated depreciation and amortization | -4,305 | -4,170 | [1] |
Property, plant and equipment, net | 7,253 | 7,017 | [1] |
Total assets | 9,288 | 9,071 | [1] |
Current liabilities: | ' | ' | |
Accounts payable - trade | 256 | 383 | [1] |
Accounts payable - other | 81 | 82 | [1] |
Due to unconsolidated affiliates | 20 | 37 | [1] |
Deferred income taxes, net current liabilities | 32 | 0 | [2] |
Accrued compensation and benefits | 118 | 116 | [1] |
Regulatory balancing accounts, net | 82 | 141 | [1] |
Current portion of long-term debt | 252 | 4 | [1] |
Customer deposits | 76 | 76 | [1] |
Other current liabilities | 124 | 124 | [1] |
Total current liabilities | 1,041 | 963 | [1] |
Long-term debt | 1,159 | 1,409 | [1] |
Deferred Credits And Other Liabilities [Abstract] | ' | ' | |
Customer advances for construction | 107 | 111 | [1] |
Pension and other postretirement benefit obligations, net of plan assets | 888 | 855 | [1] |
Deferred income taxes, net noncurrent liabilities | 978 | 881 | [1] |
Deferred investment tax credits | 19 | 20 | [1] |
Regulatory liabilities arising from removal obligations | 1,178 | 1,103 | [1] |
Asset retirement obligations | 1,170 | 1,238 | [1] |
Deferred credits and other | 296 | 256 | [1] |
Total deferred credits and other liabilities | 4,636 | 4,464 | [1] |
Equity: | ' | ' | |
Preferred stock | 22 | 22 | [1] |
Common stock | 866 | 866 | [1] |
Retained earnings | 1,581 | 1,365 | [1] |
Accumulated other comprehensive income (loss) | -17 | -18 | [1] |
Total shareholders' equity | 2,452 | 2,235 | [1] |
Total equity | 2,452 | 2,235 | [1] |
Total liabilities and equity | $9,288 | $9,071 | [1] |
[1] | Derived from audited financial statements. | ||
[2] | Represents investment (losses) gains on dedicated assets in support of our executive retirement and deferred compensation plans. These amounts are partially offset by corresponding changes in compensation expense related to the plans. |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parentheticals) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Property, plant and equipment related to VIE | $445 | $466 |
Long-term debt related to VIE | 327 | 335 |
Shareholders' equity: | ' | ' |
Preferred stock, shares authorized | 50 | 50 |
Preferred stock, shares issued | 0 | 0 |
Common stock, shares authorized | 750 | 750 |
Common stock, shares outstanding | 244 | 242 |
San Diego Gas and Electric Company and Subsidiary [Member] | ' | ' |
Property, plant and equipment related to VIE | 445 | 466 |
Long-term debt related to VIE | $327 | $335 |
Shareholders' equity: | ' | ' |
Common stock, shares authorized | 255 | 255 |
Common stock, shares outstanding | 117 | 117 |
Southern California Gas Company [Member] | ' | ' |
Shareholders' equity: | ' | ' |
Common stock, shares authorized | 100 | 100 |
Common stock, shares outstanding | 91 | 91 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, except Share data in Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
REVENUES | ' | ' | ' | ' |
Utilities | $2,223 | $2,170 | $6,889 | $6,099 |
Energy-related businesses | 328 | 337 | 963 | 880 |
Total revenues | 2,551 | 2,507 | 7,852 | 6,979 |
Utilities [Abstract] | ' | ' | ' | ' |
Cost of natural gas | -261 | -212 | -1,182 | -864 |
Cost of electric fuel and purchased power | -537 | -515 | -1,461 | -1,252 |
Energy-related businesses [Abstract] | ' | ' | ' | ' |
Cost of natural gas, electric fuel and purchased power | -120 | -136 | -325 | -346 |
Other cost of sales | -47 | -43 | -144 | -117 |
Operation and maintenance | -698 | -732 | -2,162 | -2,130 |
Depreciation and amortization | -286 | -280 | -828 | -803 |
Loss from plant closure | 0 | 0 | -200 | 0 |
Franchise fees and other taxes | -96 | -89 | -283 | -264 |
Gains on sale of assets | 39 | 0 | 113 | 7 |
Equity (losses) earnings before income tax | ' | ' | ' | ' |
Equity (losses) earnings before income tax, other | 3 | -94 | 21 | -375 |
Other income (expense), net | 16 | 44 | 79 | 137 |
Interest income | 5 | 5 | 15 | 14 |
Interest expense | -137 | -126 | -413 | -352 |
Income before income taxes and equity earnings of certain unconsolidated subsidiaries | 432 | 329 | 1,082 | 634 |
Income tax (expense) benefit | -117 | -49 | -327 | -48 |
Equity earnings, net of income tax | 8 | 10 | 13 | 29 |
Net income | 323 | 290 | 768 | 615 |
Losses (earnings) attributable to noncontrolling interests | -22 | -20 | -41 | -44 |
Call premium on preferred stock of subsidiary | -3 | 0 | -3 | 0 |
Preferred dividends of subsidiaries | -2 | -2 | -5 | -5 |
Earnings | 296 | 268 | 719 | 566 |
Call premium on preferred stock | -3 | ' | -3 | 0 |
Basic earnings per common share: | ' | ' | ' | ' |
Basic earnings per common share | $1.21 | $1.11 | $2.95 | $2.35 |
Basic earnings per common share, weighted-average number of shares outstanding (thousands) | 244,140 | 241,689 | 243,682 | 241,133 |
Diluted earnings per common share: | ' | ' | ' | ' |
Diluted earnings per common share | $1.19 | $1.09 | $2.89 | $2.31 |
Diluted earnings per common share, weighted-average number of shares outstanding (thousands) | 249,259 | 245,802 | 248,723 | 245,013 |
Dividends declared per share of common stock | $0.63 | $0.60 | $1.89 | $1.80 |
San Diego Gas and Electric Company and Subsidiary [Member] | ' | ' | ' | ' |
Utility operating revenues | ' | ' | ' | ' |
Electric | 970 | 998 | 2,685 | 2,349 |
Natural gas | 93 | 94 | 381 | 357 |
Total utility operating revenues | 1,063 | 1,092 | 3,066 | 2,706 |
Utility operating expenses | ' | ' | ' | ' |
Utility cost of natural gas | 36 | 29 | 157 | 130 |
Utility cost of electric fuel and purchased power | 315 | 301 | 776 | 604 |
Utility operation and maintenance | 266 | 309 | 852 | 852 |
Utility depreciation and amortization | 126 | 128 | 367 | 359 |
Utility franchise fees and other taxes | 57 | 55 | 158 | 144 |
Utility loss from plant closure | 0 | 0 | 200 | 0 |
Total utility operating expenses | 800 | 822 | 2,510 | 2,089 |
Utility operating income | 263 | 270 | 556 | 617 |
Equity (losses) earnings before income tax | ' | ' | ' | ' |
Other income (expense), net | 10 | 5 | 30 | 59 |
Interest income | 0 | 0 | 1 | 0 |
Interest expense | -50 | -49 | -147 | -124 |
Income before income taxes and equity earnings of certain unconsolidated subsidiaries | 223 | 226 | 440 | 552 |
Income tax (expense) benefit | -84 | -38 | -147 | -151 |
Net income | 139 | 188 | 293 | 401 |
Losses (earnings) attributable to noncontrolling interests | -5 | -12 | -1 | -23 |
Earnings | 134 | 176 | 292 | 378 |
Call premium on preferred stock | -3 | 0 | -3 | 0 |
Preferred dividend requirements | -2 | -2 | -4 | -4 |
Earnings attributable to common shares | 129 | 174 | 285 | 374 |
Southern California Gas Company [Member] | ' | ' | ' | ' |
Utility operating revenues | ' | ' | ' | ' |
Total utility operating revenues | 807 | 728 | 2,694 | 2,328 |
Utility operating expenses | ' | ' | ' | ' |
Utility cost of natural gas | 209 | 175 | 966 | 703 |
Utility operation and maintenance | 314 | 316 | 936 | 933 |
Utility depreciation and amortization | 100 | 91 | 280 | 268 |
Utility franchise fees and other taxes | 29 | 27 | 95 | 91 |
Total utility operating expenses | 652 | 609 | 2,277 | 1,995 |
Utility operating income | 155 | 119 | 417 | 333 |
Equity (losses) earnings before income tax | ' | ' | ' | ' |
Other income (expense), net | 2 | 6 | 9 | 14 |
Interest expense | -17 | -17 | -52 | -51 |
Income before income taxes and equity earnings of certain unconsolidated subsidiaries | 140 | 108 | 374 | 296 |
Income tax (expense) benefit | -38 | -37 | -107 | -105 |
Net income | 102 | 71 | 267 | 191 |
Earnings | 102 | 71 | 267 | 191 |
Preferred dividend requirements | 0 | 0 | -1 | -1 |
Earnings attributable to common shares | $102 | $71 | $266 | $190 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Comprehensive income, net of income tax | ' | ' | ' | ' |
Net income | $323 | $290 | $768 | $615 |
Foreign currency translation adjustments | 5 | 88 | 125 | 125 |
Financial instruments | -6 | -7 | 21 | -22 |
Net actuarial gain | 3 | -10 | 7 | -5 |
Total other comprehensive income (loss) | 2 | 71 | 153 | 98 |
Total Comprehensive Income Before Preferred Stock Dividend Requirements | 325 | 361 | 921 | 713 |
Preferred dividends of subsidiaries | -2 | -2 | -5 | -5 |
Comprehensive Income Net Of Tax | 323 | 359 | 916 | 708 |
San Diego Gas and Electric Company and Subsidiary [Member] | ' | ' | ' | ' |
Comprehensive income, net of income tax | ' | ' | ' | ' |
Net income | 139 | 188 | 293 | 401 |
Financial instruments | -1 | -4 | 14 | -13 |
Net actuarial gain | 1 | 0 | 2 | 0 |
Total other comprehensive income (loss) | 0 | -4 | 16 | -13 |
Total Comprehensive Income Before Preferred Stock Dividend Requirements | 139 | 184 | 309 | 388 |
Southern California Gas Company [Member] | ' | ' | ' | ' |
Comprehensive income, net of income tax | ' | ' | ' | ' |
Net income | 102 | 71 | 267 | 191 |
Financial instruments | ' | ' | 1 | 1 |
Total other comprehensive income (loss) | 0 | 0 | 1 | 1 |
Total Comprehensive Income Before Preferred Stock Dividend Requirements | 102 | 71 | 268 | 192 |
Total Shareholders' Equity | ' | ' | ' | ' |
Comprehensive income, net of income tax | ' | ' | ' | ' |
Net income | 301 | 270 | 727 | 571 |
Foreign currency translation adjustments | 5 | 80 | 149 | 114 |
Financial instruments | -4 | -3 | 5 | -9 |
Net actuarial gain | 3 | -10 | 7 | -5 |
Total other comprehensive income (loss) | 4 | 67 | 161 | 100 |
Total Comprehensive Income Before Preferred Stock Dividend Requirements | 305 | 337 | 888 | 671 |
Preferred dividends of subsidiaries | -2 | -2 | -5 | -5 |
Comprehensive Income Net Of Tax | 303 | 335 | 883 | 666 |
Total Shareholders' Equity | San Diego Gas and Electric Company and Subsidiary [Member] | ' | ' | ' | ' |
Comprehensive income, net of income tax | ' | ' | ' | ' |
Net income | 134 | 176 | 292 | 378 |
Financial instruments | 0 | 0 | 0 | 0 |
Net actuarial gain | 1 | 0 | 2 | 0 |
Total other comprehensive income (loss) | 1 | 0 | 2 | 0 |
Total Comprehensive Income Before Preferred Stock Dividend Requirements | 135 | 176 | 294 | 378 |
Noncontrolling Interests | ' | ' | ' | ' |
Comprehensive income, net of income tax | ' | ' | ' | ' |
Net income | 22 | 20 | 41 | 44 |
Foreign currency translation adjustments | 0 | 8 | -24 | 11 |
Financial instruments | -2 | -4 | 16 | -13 |
Net actuarial gain | 0 | 0 | 0 | 0 |
Total other comprehensive income (loss) | -2 | 4 | -8 | -2 |
Total Comprehensive Income Before Preferred Stock Dividend Requirements | 20 | 24 | 33 | 42 |
Preferred dividends of subsidiaries | 0 | 0 | 0 | ' |
Comprehensive Income Net Of Tax | 20 | 24 | 33 | 42 |
Noncontrolling Interests | San Diego Gas and Electric Company and Subsidiary [Member] | ' | ' | ' | ' |
Comprehensive income, net of income tax | ' | ' | ' | ' |
Net income | 5 | 12 | 1 | 23 |
Financial instruments | -1 | -4 | 14 | -13 |
Net actuarial gain | 0 | 0 | 0 | 0 |
Total other comprehensive income (loss) | -1 | -4 | 14 | -13 |
Total Comprehensive Income Before Preferred Stock Dividend Requirements | $4 | $8 | $15 | $10 |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | 9 Months Ended | ||||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |||
USD ($) | USD ($) | San Diego Gas and Electric Company and Subsidiary [Member] | San Diego Gas and Electric Company and Subsidiary [Member] | Southern California Gas Company [Member] | Southern California Gas Company [Member] | ||||
USD ($) | USD ($) | USD ($) | USD ($) | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ' | ' | ' | ' | ' | ' | |||
Net income | $768 | $615 | $293 | $401 | $267 | $191 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | ' | ' | ' | ' | |||
Depreciation and amortization | 828 | 803 | ' | ' | ' | ' | |||
Utility depreciation and amortization | ' | ' | 367 | 359 | 280 | 268 | |||
Deferred income taxes and investment tax credits | 327 | -45 | 100 | 262 | 72 | 39 | |||
Gains on sale of assets | -113 | -7 | ' | ' | ' | ' | |||
Loss from plant closure | 200 | 0 | ' | ' | ' | ' | |||
Utility loss from plant closure | ' | ' | 200 | 0 | ' | ' | |||
Equity earnings | -34 | 346 | ' | ' | ' | ' | |||
Fixed-price contracts and other derivatives | -25 | 1 | -7 | -9 | ' | ' | |||
Other | 23 | -1 | -9 | -55 | -6 | -9 | |||
Net change in other working capital components | -454 | -373 | -284 | -518 | -56 | 240 | |||
Changes in other assets | -203 | 202 | -164 | 201 | -65 | 4 | |||
Changes in other liabilities | 13 | 147 | 13 | 129 | -5 | 13 | |||
Net cash provided by operating activities | 1,330 | 1,688 | 509 | 770 | 487 | 746 | |||
CASH FLOWS FROM INVESTING ACTIVITIES | ' | ' | ' | ' | ' | ' | |||
Expenditures for property, plant and equipment | -1,785 | -2,241 | -679 | -998 | -521 | -462 | |||
Expenditures for investments | -21 | -359 | ' | ' | ' | ' | |||
Proceeds from sale of assets and investment | 566 | 9 | ' | ' | ' | ' | |||
Proceeds from sale of assets | ' | ' | 8 | 0 | ' | ' | |||
Proceeds from U.S. Treasury grants | 238 | 0 | ' | ' | ' | ' | |||
Distributions from investments | 141 | 43 | ' | ' | ' | ' | |||
Purchases of nuclear decommissioning and other trust assets | -514 | -534 | -511 | -530 | ' | ' | |||
Proceeds from sales by nuclear decommissioning and other trusts | 510 | 534 | 507 | 524 | ' | ' | |||
Increase (decrease) in loans to affiliates, net | ' | ' | ' | ' | 17 | -257 | |||
Decrease in restricted cash | 285 | 89 | 54 | 74 | ' | ' | |||
Increase in restricted cash | -311 | -105 | -52 | -62 | ' | ' | |||
Other cash flows from investing activities | -10 | -12 | -5 | 0 | ' | ' | |||
Net cash used in investing activities | -901 | -2,576 | -678 | -992 | -504 | -719 | |||
CASH FLOWS FROM FINANCING ACTIVITIES | ' | ' | ' | ' | ' | ' | |||
Common dividends paid | -452 | -405 | ' | ' | -50 | -150 | |||
Preferred dividends paid | ' | ' | -4 | -4 | -1 | -1 | |||
Preferred dividends paid by subsidiaries | -5 | -5 | ' | ' | ' | ' | |||
Proceeds from issuances of common stock | 57 | 50 | ' | ' | ' | ' | |||
Repurchases of common stock | -45 | -16 | ' | ' | ' | ' | |||
Issuances of debt (maturities greater than 90 days) | 1,404 | 2,294 | ' | ' | ' | ' | |||
Issuances of long-term debt | ' | ' | 450 | 249 | 0 | 348 | |||
Payments on debt (maturities greater than 90 days) | -1,444 | -563 | ' | ' | ' | ' | |||
Payments on long-term debt | ' | ' | -183 | -7 | ' | ' | |||
Proceeds from sale of noncontrolling interests, net of $25 million in offering costs | 574 | 0 | ' | ' | ' | ' | |||
Increase (decrease) in short-term debt, net | 81 | -142 | 0 | 2 | ' | ' | |||
Distributions to noncontrolling interests | -28 | -36 | -12 | -22 | ' | ' | |||
Debt issuances costs | ' | ' | ' | ' | 0 | -3 | |||
Other cash flows from financing activities | 15 | -20 | -2 | -3 | ' | ' | |||
Net cash provided by (used in) financing activities | 157 | 1,157 | 249 | 215 | -51 | 194 | |||
Effect of exchange rate changes on cash and cash equivalents | 0 | 9 | ' | ' | ' | ' | |||
Increase (decrease) in cash and cash equivalents | 586 | 278 | 80 | -7 | -68 | 221 | |||
Cash and cash equivalents, beginning of period | 475 | [1] | 252 | 87 | [1] | 29 | 83 | [1] | 36 |
Cash and cash equivalents, end of period | 1,061 | 530 | 167 | 22 | 15 | 257 | |||
Sale of noncontrolling interests offering costs | 25 | ' | ' | ' | ' | ' | |||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | ' | ' | ' | ' | ' | ' | |||
Interest payments, net of amounts capitalized | 359 | 278 | 127 | 96 | 44 | 36 | |||
Income tax payments, net of refunds | 106 | 99 | 33 | -121 | 66 | 46 | |||
SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING ACTIVITIES | ' | ' | ' | ' | ' | ' | |||
Nuclear facility plant reclassified to regulatory asset, net of depreciation and amortization | 512 | 0 | 512 | 0 | ' | ' | |||
Accrued capital expenditures | 285 | 315 | 108 | 87 | 97 | 69 | |||
Capital expenditures recoverable by U. S. Treasury grants receivable | 3 | 136 | ' | ' | ' | ' | |||
Sequestration of U.S. Treasury grants receivable | -23 | 0 | ' | ' | ' | ' | |||
Acquisition Of Business [Abstract] | ' | ' | ' | ' | ' | ' | |||
Assets acquired | 13 | 29 | ' | ' | ' | ' | |||
Cash paid, net of cash acquired | -11 | -19 | ' | ' | ' | ' | |||
Liabilities Assumed | 2 | 10 | ' | ' | ' | ' | |||
SUPPLEMENTAL DISCLOSURE OF NONCASH FINANCING ACTIVITIES | ' | ' | ' | ' | ' | ' | |||
Call premium on preferred stock of subsidiary | 3 | 0 | ' | ' | ' | ' | |||
Call premium on preferred stock | 3 | 0 | 3 | 0 | ' | ' | |||
Dividends declared but not paid | $158 | $149 | $1 | $1 | ' | ' | |||
[1] | Derived from audited financial statements. |
GENERAL
GENERAL | 3 Months Ended |
Sep. 30, 2013 | |
Notes to Consolidated Financial Statements [Abstract] | ' |
General | ' |
NOTE 1. GENERAL | |
PRINCIPLES OF CONSOLIDATION | |
Sempra Energy | |
Sempra Energy's Condensed Consolidated Financial Statements include the accounts of Sempra Energy, a California-based Fortune 500 energy-services holding company, and its consolidated subsidiaries and variable interest entities (VIEs). Sempra Energy's principal operating units are | |
San Diego Gas & Electric Company (SDG&E) and Southern California Gas Company (SoCalGas), which are separate, reportable segments; | |
Sempra International, which includes our Sempra South American Utilities and Sempra Mexico reportable segments; and | |
Sempra U.S. Gas & Power, which includes our Sempra Renewables and Sempra Natural Gas reportable segments. | |
We provide descriptions of each of our segments in Note 11. | |
We refer to SDG&E and SoCalGas collectively as the California Utilities, which do not include the utilities in our Sempra International and Sempra U.S. Gas & Power operating units. Sempra Global is the holding company for most of our subsidiaries that are not subject to California utility regulation. All references in these Notes to “Sempra International,” “Sempra U.S. Gas & Power” and their respective reportable segments are not intended to refer to any legal entity with the same or similar name. | |
In the first quarter of 2013, a Sempra Energy subsidiary, Infraestructura Energética Nova, S.A.B. de C.V. (IEnova), completed a private offering in the U.S. and outside of Mexico and a concurrent public offering in Mexico of common stock. The aggregate shares of common stock sold in the offerings represent approximately 18.9 percent of IEnova's outstanding ownership interest. IEnova is reported within the Sempra Mexico reportable segment. We discuss the offerings and IEnova further in Note 5. | |
Sempra Energy uses the equity method to account for investments in companies over which we have the ability to exercise significant influence, but not control. We discuss our investments in unconsolidated entities in Note 4 herein and in Note 4 of the Notes to Consolidated Financial Statements in our Annual Report on Form 10-K for the year ended December 31, 2012. | |
SDG&E | |
SDG&E's Condensed Consolidated Financial Statements include its accounts and the accounts of a VIE of which SDG&E is the primary beneficiary, as we discuss in Note 5 under “Variable Interest Entities.” SDG&E's common stock is wholly owned by Enova Corporation, which is a wholly owned subsidiary of Sempra Energy. | |
SoCalGas | |
SoCalGas' Condensed Consolidated Financial Statements include its subsidiaries, which comprise less than one percent of its consolidated financial position and results of operations. SoCalGas' common stock is wholly owned by Pacific Enterprises (PE), which is a wholly owned subsidiary of Sempra Energy. | |
BASIS OF PRESENTATION | |
This is a combined report of Sempra Energy, SDG&E and SoCalGas. We provide separate information for SDG&E and SoCalGas as required. References in this report to “we,” “our” and “Sempra Energy Consolidated” are to Sempra Energy and its consolidated entities, unless otherwise indicated by the context. We have eliminated intercompany accounts and transactions within the consolidated financial statements of each reporting entity. | |
We have prepared the Condensed Consolidated Financial Statements in conformity with accounting principles generally accepted in the United States (U.S. GAAP) and in accordance with the interim-period-reporting requirements of Form 10-Q. Results of operations for interim periods are not necessarily indicative of results for the entire year. We evaluated events and transactions that occurred after September 30, 2013 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, 2012 balance sheet information in the Condensed Consolidated Financial Statements has been derived from our audited 2012 consolidated financial statements. 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 Securities and Exchange Commission. | |
You should read the information in this Quarterly Report in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2012 (the Annual Report) and our Quarterly Reports on Form 10-Q for the quarters ended March 31 and June 30, 2013, which are combined reports for Sempra Energy, SDG&E and SoCalGas. | |
Sempra South American Utilities has controlling interests in two electric distribution utilities in South America. Sempra Natural Gas owns Mobile Gas Service Corporation (Mobile Gas) in southwest Alabama and Willmut Gas Company (Willmut Gas) in Mississippi, and Sempra Mexico owns Ecogas Mexico, S. de R.L. de C.V. (Ecogas) in Northern Mexico, all natural gas distribution utilities. The California Utilities, Sempra Natural Gas' Mobile Gas and Willmut Gas, and Sempra Mexico's Ecogas prepare their financial statements in accordance with U.S. GAAP provisions governing regulated operations, as we discuss in Note 1 of the Notes to Consolidated Financial Statements in the Annual Report. | |
We describe our significant accounting policies in Note 1 of the Notes to Consolidated Financial Statements in the Annual Report. We follow the same accounting policies for interim reporting purposes, except for the adoption of new accounting standards as we discuss in Note 2. |
NEW_ACCOUNTING_STANDARDS
NEW ACCOUNTING STANDARDS | 3 Months Ended |
Sep. 30, 2013 | |
Notes to Consolidated Financial Statements [Abstract] | ' |
New Accounting Standards | ' |
NOTE 2. NEW ACCOUNTING STANDARDS | |
We describe below recent pronouncements that have had or may have a significant effect on our financial statements. We do not discuss recent pronouncements that are not anticipated to have an impact on or are unrelated to our financial condition, results of operations, cash flows or disclosures. | |
SEMPRA ENERGY, SDG&E AND SOCALGAS | |
Accounting Standards Update (ASU) 2011-11, “Disclosures about Offsetting Assets and Liabilities” (ASU 2011-11) and ASU 2013-01, “Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities” (ASU 2013-01): In order to allow for balance sheet comparison between U.S. GAAP and International Financial Reporting Standards (IFRS), ASU 2011-11 requires enhanced disclosures related to financial assets and liabilities eligible for offsetting in the statement of financial position. An entity must disclose both gross and net information about financial instruments and transactions subject to a master netting arrangement and eligible for offset, including cash collateral received and posted. | |
ASU 2013-01 clarifies that the scope of ASU 2011-11 applies to derivatives, including bifurcated embedded derivatives, repurchase agreements and reverse repurchase agreements, and securities borrowing and securities lending transactions. | |
We adopted ASU 2011-11 and ASU 2013-01 on January 1, 2013 as required and it did not affect our financial condition, results of operations or cash flows. We provide the additional disclosure in Note 7. | |
ASU 2013-02, “Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income” (ASU 2013-02): ASU 2013-02 requires an entity to present, either on the face of the statement of operations or in the notes to financial statements, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income, but only if the amount reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures required under U.S. GAAP that provide additional detail about those amounts. | |
We adopted ASU 2013-02 on January 1, 2013 as required and it did not affect our financial condition, results of operations or cash flows. We provide the additional disclosure in Note 5. | |
ASU 2013-04, “Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation Is Fixed at the Reporting Date” (ASU 2013-04): ASU 2013-04 provides guidance for the recognition, measurement, and disclosure of obligations resulting from joint and several liability arrangements for which the total amount of the obligation within the scope of the ASU is fixed at the reporting date, except for obligations addressed within existing guidance in U.S. GAAP. The guidance requires an entity to measure those obligations as the sum of the amount the reporting entity agreed to pay on the basis of its arrangement among its co-obligors and any additional amount the reporting entity expects to pay on behalf of its co-obligors. The guidance in the ASU also requires an entity to disclose the nature and amount of the obligation as well as other information about those obligations. | |
We will adopt ASU 2013-04 on January 1, 2014 as required and do not expect it to affect our financial condition, results of operations or cash flows. We will provide the additional disclosure in our 2014 interim financial statements. | |
ASU 2013-11, “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists” (ASU 2013-11): ASU 2013-11 provides explicit guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. ASU 2013-11 requires an entity to present an unrecognized tax benefit, or a portion of an unrecognized tax benefit, as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward. If a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purposes, an entity is required to present the unrecognized tax benefit in the financial statements as a liability instead of combined with deferred tax assets. | |
We will adopt ASU 2013-11 on January 1, 2014 as required and do not expect it to significantly affect our financial condition, results of operations or cash flows. | |
RECENT_INVESTMENT_ACTIVITY
RECENT INVESTMENT ACTIVITY | 3 Months Ended | |||||
Sep. 30, 2013 | ||||||
Notes to Consolidated Financial Statements [Abstract] | ' | |||||
Recent Investment Activity | ' | |||||
NOTE 3. ACQUISITION AND DIVESTITURE ACTIVITY | ||||||
SEMPRA RENEWABLES | ||||||
In July 2013, Sempra Renewables formed a joint venture with Consolidated Edison Development (ConEdison Development), a non-related party, by selling a 50-percent interest in its 150-megawatt (MW) Copper Mountain Solar 2 solar power facility for $71 million in cash, subject to a final purchase price adjustment that we do not expect to be significant. Sempra Renewables recognized a pretax gain on the sale of $4 million ($2 million after-tax), included in Gain on Sale of Assets on our Condensed Consolidated Statements of Operations. Our remaining 50-percent interest in Copper Mountain Solar 2 is now accounted for under the equity method. | ||||||
In September 2013, Sempra Renewables formed another joint venture with ConEdison Development by selling a 50-percent interest in its 150-MW Mesquite Solar 1 solar power facility for $103 million in cash, subject to a final purchase price adjustment that we do not expect to be significant. Sempra Renewables recognized a pretax gain on the sale of $36 million ($22 million after-tax), included in Gain on Sale of Assets on our Condensed Consolidated Statements of Operations. Our remaining 50-percent interest in Mesquite Solar 1 is now accounted for under the equity method. | ||||||
Our equity method investments in Copper Mountain Solar 2 and Mesquite Solar 1 were measured at their historical cost and, therefore, no portion of the gains was attributable to a remeasurement of the retained investments to fair value. The following table summarizes the deconsolidation: | ||||||
(Dollars in millions) | Copper Mountain Solar 2 | Mesquite Solar 1 | ||||
Proceeds from sale, net of transaction costs(1) | $ | 68 | $ | 100 | ||
Property, plant and equipment, net | -266 | -461 | ||||
Other assets | -30 | -72 | ||||
Long-term debt, including current portion | 146 | 297 | ||||
Other liabilities | 19 | 31 | ||||
Gain on sale of assets | -4 | -36 | ||||
Equity method investments upon deconsolidation | $ | -67 | $ | -141 | ||
-1 | Transaction costs were $3 million at both Copper Mountain Solar 2 and Mesquite Solar 1. | |||||
In September 2013, Sempra Renewables acquired the rights to develop the 75-MW Broken Bow 2 Wind project in Custer County, Nebraska. Sempra Renewables will develop the project, which is expected to be operational in late 2014. | ||||||
SEMPRA NATURAL GAS | ||||||
Mesquite Power Sale | ||||||
In February 2013, Sempra Natural Gas sold one 625-MW block of its 1,250-MW Mesquite Power natural gas-fired power plant in Arizona, including a portion related to common plant, for approximately $371 million in cash to the Salt River Project Agricultural Improvement and Power District (SRP). The asset was classified as held for sale at December 31, 2012 and we recognized a pretax gain on the sale of $74 million ($44 million after-tax) in 2013. In connection with the sale, we entered into a 20-year operations and maintenance agreement with SRP on February 28, 2013, whereby SRP assumed plant operations and maintenance of the facility, including our remaining 625-MW block. We provide additional information concerning the operations and maintenance agreement in Note 10. | ||||||
Willmut Gas Company | ||||||
In May 2012, Sempra Natural Gas acquired 100 percent of the outstanding common stock of Willmut Gas, a regulated natural gas distribution utility serving approximately 20,000 customers in Hattiesburg, Mississippi, for $19 million in cash and the assumption of $10 million of liabilities. Pro forma impacts on revenues and earnings for Sempra Energy had the acquisition occurred on January 1, 2011 were additional revenues of $7 million and negligible earnings for the nine months ended September 30, 2012. |
INVESTMENTS_IN_UNCONSOLIDATED_
INVESTMENTS IN UNCONSOLIDATED ENTITIES | 3 Months Ended |
Sep. 30, 2013 | |
Notes to Consolidated Financial Statements [Abstract] | ' |
Investments in Unconsolidated Entities | ' |
NOTE 4. INVESTMENTS IN UNCONSOLIDATED ENTITIES | |
We provide additional information concerning all of our equity method investments in Note 4 of the Notes to Consolidated Financial Statements in the Annual Report. | |
SEMPRA SOUTH AMERICAN UTILITIES | |
Sempra South American Utilities previously owned 43 percent of two Argentine natural gas utility holding companies, Sodigas Pampeana and Sodigas Sur. In December 2006, we decided to sell our Argentine investments and actively pursued their sale since that time. In the first quarter of 2013, we recorded a noncash impairment charge of $10 million ($7 million after-tax) to reduce the carrying value of our investments to estimated fair value. The net charge is reported in Equity Earnings, Net of Income Tax on the Condensed Consolidated Statement of Operations for the nine months ended September 30, 2013. In June 2013, we completed the sale of our Argentine investments for $13 million in cash. Our results for the nine months ended September 30, 2013 include an additional $7 million loss ($4 million after-tax) on the sale, which is also included in Equity Earnings, Net of Income Tax. We provide additional information concerning our investments in Sodigas Pampeana and Sodigas Sur in Note 4 of the Notes to Consolidated Financial Statements in the Annual Report. | |
As a result of the devaluation of the Argentine peso at the end of 2001 and subsequent changes in the value of the peso, Sempra South American Utilities had reduced the carrying value of its investments by a cumulative total of $270 million prior to the sale. These noncash adjustments, based on fluctuations in the value of the Argentine peso, did not affect earnings, but were recorded in Comprehensive Income and Accumulated Other Comprehensive Income (Loss). As a result of the sale of our investments, this cumulative foreign currency translation adjustment was reclassified to Equity Earnings, Net of Income Tax, where it was substantially offset by the elimination of a $250 million accrued liability established in 2006. | |
Chilquinta Energía has entered into two 50-percent owned joint ventures, Eletrans S.A. and Eletrans II S.A. (collectively, Eletrans), with Sociedad Austral de Electricidad Sociedad Anónima (SAESA) to construct four transmission lines in Chile. In 2013, Eletrans entered into forward exchange contracts to manage the foreign currency exchange rate risk of the Chilean Unidad de Fomento (CLF) relative to the U.S. dollar, related to certain construction commitments that are denominated in CLF. The forward exchange contracts settle based on anticipated payments to vendors, generally monthly, ending in July 2018. We recorded a negligible amount of equity earnings in the three months ended September 30, 2013 and $3 million of equity losses in the nine months ended September 30, 2013 related to these forward contracts in Equity Earnings, Net of Income Tax on the Condensed Consolidated Statements of Operations. | |
SEMPRA RENEWABLES | |
Sempra Renewables invested $5 million and $296 million in its wind generation joint ventures in the nine months ended September 30, 2013 and 2012, respectively. | |
SEMPRA NATURAL GAS | |
Sempra Natural Gas owns a 25-percent interest in Rockies Express Pipeline LLC (Rockies Express), a partnership that operates a natural gas pipeline, the Rockies Express Pipeline (REX), that links the Rocky Mountains region to the upper Midwest and the eastern United States. In November 2012, Kinder Morgan Energy Partners L.P. (KMP) sold its 50-percent interest in Rockies Express, as part of a larger asset group, to Tallgrass Energy Partners, L.P. (Tallgrass). Phillips 66 owns the remaining interest of 25 percent. Our total investment in Rockies Express is accounted for as an equity method investment. | |
The general partner of KMP is Kinder Morgan, Inc. (KMI). As a condition of KMI receiving antitrust approval from the Federal Trade Commission (FTC) for its acquisition of El Paso Corporation, KMI agreed to divest certain assets in its natural gas pipeline group. Included in the asset group, as noted above, was KMP's interest in Rockies Express. KMP recorded remeasurement losses during 2012 associated with these operations (classified as discontinued operations by KMP). We have recorded impairments of our partnership investment in Rockies Express of $300 million ($179 million after-tax) in the quarter ended June 30, 2012 and an additional $100 million ($60 million after-tax) in the quarter ended September 30, 2012, which are included in Equity Earnings (Losses), Before Income Tax on the Condensed Consolidated Statements of Operations. Our remaining carrying value in Rockies Express as of September 30, 2013 is $330 million. We discuss the fair value measurement of our investment in Rockies Express in Note 11 of the Notes to Consolidated Financial Statements in the Annual Report. | |
RBS SEMPRA COMMODITIES | |
RBS Sempra Commodities LLP (RBS Sempra Commodities) is a United Kingdom limited liability partnership that owned and operated commodities-marketing businesses previously owned by us. We and our partner in the joint venture, The Royal Bank of Scotland plc (RBS), sold substantially all of the partnership's businesses and assets in four separate transactions completed in 2010 and early 2011. We account for our investment in RBS Sempra Commodities under the equity method, and report our share of partnership earnings and other associated costs in Parent and Other. | |
In April 2011, we and RBS entered into a letter agreement (Letter Agreement) which amended certain provisions of the agreements that formed RBS Sempra Commodities. The Letter Agreement addresses the wind-down of the partnership and the distribution of the partnership's remaining assets. In accordance with the Letter Agreement, we received a distribution of $50 million in May 2013. The investment balance of $76 million at September 30, 2013 reflects remaining distributions expected to be received from the partnership in accordance with the Letter Agreement. The timing and amount of distributions may be impacted by the matters we discuss related to RBS Sempra Commodities in Note 10 under “Other Litigation.” In addition, amounts may be retained by the partnership for an extended period of time to help offset unanticipated future general and administrative costs necessary to complete the dissolution of the partnership. | |
In connection with the Letter Agreement described above, we also released RBS from its indemnification obligations with respect to the items for which J.P. Morgan Chase & Co. (JP Morgan), one of the buyers of the partnership's businesses, has agreed to indemnify us. | |
We recorded no equity earnings or losses related to the partnership for either the three months or nine months ended September 30, 2013 and 2012. | |
We discuss the RBS Sempra Commodities sales transactions, the Letter Agreement and other matters concerning the partnership in Note 4 of the Notes to Consolidated Financial Statements in the Annual Report. |
OTHER_FINANCIAL_DATA
OTHER FINANCIAL DATA | 3 Months Ended | |||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||
Notes to Consolidated Financial Statements [Abstract] | ' | |||||||||||||||||
Other Financial Data | ' | |||||||||||||||||
NOTE 5. OTHER FINANCIAL DATA | ||||||||||||||||||
U.S. TREASURY GRANTS RECEIVABLE | ||||||||||||||||||
At December 31, 2012, we had recognized receivables for U.S. Treasury grants based on eligible costs at our Mesquite Solar 1 and Copper Mountain Solar 2 generating facilities when the projects, or portions of projects, were placed into service. During the first quarter of 2013, the federal government imposed automatic federal budget cuts, known as “sequestration,” as required by The Budget Control Act of 2011. As a result, cash grant payments to eligible taxpayers for renewable energy projects were reduced, and we recorded a reduction to our grants receivable of $23 million and a reversal of income tax benefit of $5 million during the first quarter of 2013. In June 2013, we received $74 million in cash related to the Copper Mountain Solar 2 grant. We received $164 million in cash for the remaining grant receivable for Mesquite Solar 1 in August 2013. | ||||||||||||||||||
INVENTORIES | ||||||||||||||||||
The components of inventories by segment are as follows: | ||||||||||||||||||
INVENTORY BALANCES | ||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||
Natural Gas | Liquefied Natural Gas | Materials and Supplies | Total | |||||||||||||||
30-Sep-13 | 31-Dec-12 | 30-Sep-13 | 31-Dec-12 | 30-Sep-13 | 31-Dec-12 | 30-Sep-13 | 31-Dec-12 | |||||||||||
SDG&E | $ | 5 | $ | 3 | $ | ― | $ | ― | $ | 73 | $ | 79 | $ | 78 | $ | 82 | ||
SoCalGas | 150 | 128 | ― | ― | 27 | 23 | 177 | 151 | ||||||||||
Sempra South American | ||||||||||||||||||
Utilities | ― | ― | ― | ― | 43 | 34 | 43 | 34 | ||||||||||
Sempra Mexico | ― | ― | 3 | 8 | 16 | 8 | 19 | 16 | ||||||||||
Sempra Renewables | ― | ― | ― | ― | 2 | 3 | 2 | 3 | ||||||||||
Sempra Natural Gas | 133 | 109 | 5 | 8 | 6 | 5 | 144 | 122 | ||||||||||
Sempra Energy | ||||||||||||||||||
Consolidated | $ | 288 | $ | 240 | $ | 8 | $ | 16 | $ | 167 | $ | 152 | $ | 463 | $ | 408 | ||
VARIABLE INTEREST ENTITIES (VIE) | ||||||||||||||||||
We consolidate a VIE if we are the primary beneficiary of the VIE. Our determination of whether we are the primary beneficiary is based upon qualitative and quantitative analyses, which assess | ||||||||||||||||||
the purpose and design of the VIE; | ||||||||||||||||||
the nature of the VIE's risks and the risks we absorb; | ||||||||||||||||||
the power to direct activities that most significantly impact the economic performance of the VIE; and | ||||||||||||||||||
the obligation to absorb losses or right to receive benefits that could be significant to the VIE. | ||||||||||||||||||
SDG&E | ||||||||||||||||||
Tolling Agreements | ||||||||||||||||||
SDG&E has agreements under which it purchases power generated by facilities for which it supplies all of the natural gas to fuel the power 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 upon our analysis, the ability to direct the dispatch of electricity may have the most significant impact on the economic performance of the entity owning the generating facility because of the associated exposure to the cost of natural gas, which fuels the plants, and the value of electricity produced. To the extent that SDG&E (1) is obligated to purchase and 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 the operational characteristics of the facility, including its expected power generation output relative to its capacity to generate and the financial structure of the entity, among other factors. If we determine that SDG&E is the primary beneficiary, SDG&E and Sempra Energy consolidate the entity that owns the facility as a VIE, as we discuss below. | ||||||||||||||||||
Otay Mesa VIE | ||||||||||||||||||
SDG&E has an agreement to purchase power generated at the Otay Mesa Energy Center (OMEC), a 605-MW generating facility. In addition to tolling, the agreement provides SDG&E with the option to purchase the power plant at the end of the contract term in 2019, or upon earlier termination of the purchased-power agreement, at a predetermined price subject to adjustments based on performance of the facility. If SDG&E does not exercise its option, under certain circumstances, it may be required to purchase the power plant at a predetermined price, which we refer to as the put option. | ||||||||||||||||||
The facility owner, Otay Mesa Energy Center LLC (OMEC LLC), is a VIE (Otay Mesa VIE), of which SDG&E is the primary beneficiary. SDG&E has no OMEC LLC voting rights and does not operate OMEC. In addition to the risks absorbed under the tolling agreement, SDG&E absorbs separately through the put option a significant portion of the risk that the value of Otay Mesa VIE could decline. SDG&E and Sempra Energy have consolidated Otay Mesa VIE since the second quarter of 2007. Otay Mesa VIE's equity of $79 million at September 30, 2013 and $76 million at December 31, 2012 is included on the Condensed Consolidated Balance Sheets in Other Noncontrolling Interests for Sempra Energy and in Noncontrolling Interest for SDG&E. | ||||||||||||||||||
OMEC LLC has a loan outstanding of $337 million at September 30, 2013, the proceeds of which were used for the construction of OMEC. The loan is with third party lenders and is secured by OMEC's property, plant and equipment. SDG&E is not a party to the loan agreement and does not have any additional implicit or explicit financial responsibility to OMEC LLC. The loan fully matures in April 2019 and bears interest at rates varying with market rates. In addition, OMEC LLC has entered into interest rate swap agreements to moderate its exposure to interest rate changes. We provide additional information concerning the interest rate swaps in Note 7. | ||||||||||||||||||
Other Variable Interest Entities | ||||||||||||||||||
SDG&E's power procurement is subject to reliability requirements that may require SDG&E to enter into various power purchase arrangements which include variable interests. SDG&E evaluates the respective entities to determine if variable interests exist and, based on the qualitative and quantitative analyses described above, if SDG&E, and thereby Sempra Energy, is the primary beneficiary. SDG&E has determined that no contracts, other than the one relating to Otay Mesa VIE mentioned above, result in SDG&E being the primary beneficiary as of September 30, 2013. In addition to the tolling agreements described above, other variable interests involve various elements of fuel and power costs, including certain construction costs, tax credits, and other components of cash flow expected to be paid to or received by our counterparties. In most of these cases, the expectation of variability is not substantial, and SDG&E generally does not have the power to direct activities that most significantly impact the economic performance of the other VIEs. If our ongoing evaluation of these VIEs were to conclude that SDG&E becomes the primary beneficiary and consolidation by SDG&E becomes necessary, the effects are not expected to significantly affect the financial position, results of operations, or liquidity of SDG&E. In addition, SDG&E is not exposed to losses or gains as a result of these other VIEs, because all such variability would be recovered in rates. | ||||||||||||||||||
Sempra Energy's other operating units also enter into arrangements which could include variable interests. We evaluate these arrangements and applicable entities based upon the qualitative and quantitative analyses described above. Certain of these entities are service companies that are VIEs. As the primary beneficiary of these service companies, we consolidate them. In all other cases, we have determined that these contracts are not variable interests in a VIE and therefore are not subject to the U.S. GAAP requirements concerning the consolidation of VIEs. | ||||||||||||||||||
The Condensed Consolidated Statements of Operations of Sempra Energy and SDG&E include the following amounts associated with Otay Mesa VIE. The amounts are net of eliminations of transactions between SDG&E and Otay Mesa VIE. The financial statements of other consolidated VIEs are not material to the financial statements of Sempra Energy. The captions on the table below generally correspond to SDG&E's Condensed Consolidated Statements of Operations. | ||||||||||||||||||
AMOUNTS ASSOCIATED WITH OTAY MESA VIE | ||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||
Operating revenues | ||||||||||||||||||
Electric | $ | -4 | $ | ― | $ | ― | $ | ― | ||||||||||
Natural gas | ― | ― | ― | ― | ||||||||||||||
Total operating revenues | -4 | ― | ― | ― | ||||||||||||||
Operating expenses | ||||||||||||||||||
Cost of electric fuel and purchased power | -27 | -26 | -65 | -66 | ||||||||||||||
Operation and maintenance | 7 | 4 | 33 | 15 | ||||||||||||||
Depreciation and amortization | 7 | 7 | 20 | 19 | ||||||||||||||
Total operating expenses | -13 | -15 | -12 | -32 | ||||||||||||||
Operating income | 9 | 15 | 12 | 32 | ||||||||||||||
Other loss, net | ― | ― | ― | -1 | ||||||||||||||
Interest expense | -4 | -3 | -11 | -8 | ||||||||||||||
Income before income taxes/Net income | 5 | 12 | 1 | 23 | ||||||||||||||
Earnings attributable to noncontrolling interest | -5 | -12 | -1 | -23 | ||||||||||||||
Earnings | $ | ― | $ | ― | $ | ― | $ | ― | ||||||||||
We provide additional information regarding Otay Mesa VIE in Note 1 of the Notes to Consolidated Financial Statements in the Annual Report. | ||||||||||||||||||
ASSET RETIREMENT OBLIGATIONS | ||||||||||||||||||
We discuss asset retirement obligations in Note 1 of the Notes to Consolidated Financial Statements in the Annual Report. | ||||||||||||||||||
The changes in asset retirement obligations are as follows: | ||||||||||||||||||
CHANGES IN ASSET RETIREMENT OBLIGATIONS | ||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||
Sempra Energy | ||||||||||||||||||
Consolidated | SDG&E | SoCalGas | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||
Balance at January 1(1) | $ | 2,056 | $ | 1,925 | $ | 741 | $ | 698 | $ | 1,253 | $ | 1,175 | ||||||
Accretion expense | 74 | 69 | 35 | 31 | 37 | 36 | ||||||||||||
Liabilities incurred | 4 | 15 | ― | ― | ― | ― | ||||||||||||
Payments | -1 | -1 | ― | ― | ― | ― | ||||||||||||
Revisions, GRC-related(2) | -135 | -8 | -30 | ― | -105 | ― | ||||||||||||
Revisions, other(3) | 181 | ― | 207 | ― | ― | ― | ||||||||||||
Balance at September 30(1) | $ | 2,179 | $ | 2,000 | $ | 953 | $ | 729 | $ | 1,185 | $ | 1,211 | ||||||
-1 | The current portions of the obligations are included in Other Current Liabilities on the Condensed Consolidated Balance Sheets. | |||||||||||||||||
-2 | The decreases in asset retirement obligations in 2013 at SDG&E and SoCalGas are due to revised estimates related to the 2012 General Rate Case (GRC) that received final approval in May 2013. At SDG&E, these revisions included increases in asset service lives ranging from 2 percent to 7 percent, and lower estimated cost of removal. At SoCalGas, the decrease includes increases in asset service lives ranging from 4 percent to 6 percent, partially offset by a higher estimated cost of removal. | |||||||||||||||||
-3 | The increase in asset retirement obligations in 2013 at SDG&E is due to revised estimates recorded in the third quarter of 2013 related to the early decommissioning of SONGS Units 2 and 3 (see Note 9). | |||||||||||||||||
PENSION AND OTHER POSTRETIREMENT BENEFITS | ||||||||||||||||||
Net Periodic Benefit Cost | ||||||||||||||||||
The following three tables provide the components of net periodic benefit cost: | ||||||||||||||||||
NET PERIODIC BENEFIT COST – SEMPRA ENERGY CONSOLIDATED | ||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||
Pension Benefits | Other Postretirement Benefits | |||||||||||||||||
Three months ended September 30, | Three months ended September 30, | |||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||
Service cost | $ | 28 | $ | 23 | $ | 8 | $ | 4 | ||||||||||
Interest cost | 35 | 40 | 10 | 11 | ||||||||||||||
Expected return on assets | -39 | -38 | -15 | -13 | ||||||||||||||
Amortization of: | ||||||||||||||||||
Prior service cost (credit) | 1 | ― | -1 | ― | ||||||||||||||
Actuarial loss | 11 | 12 | ― | 2 | ||||||||||||||
Settlement | 1 | 1 | ― | ― | ||||||||||||||
Regulatory adjustment | -14 | 9 | 3 | 3 | ||||||||||||||
Total net periodic benefit cost | $ | 23 | $ | 47 | $ | 5 | $ | 7 | ||||||||||
Nine months ended September 30, | Nine months ended September 30, | |||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||
Service cost | $ | 82 | $ | 68 | $ | 21 | $ | 19 | ||||||||||
Interest cost | 111 | 122 | 33 | 39 | ||||||||||||||
Expected return on assets | -121 | -116 | -44 | -40 | ||||||||||||||
Amortization of: | ||||||||||||||||||
Prior service cost (credit) | 3 | 2 | -3 | -2 | ||||||||||||||
Actuarial loss | 41 | 35 | 5 | 9 | ||||||||||||||
Settlement | 1 | 8 | ― | ― | ||||||||||||||
Regulatory adjustment | -65 | -9 | 7 | 8 | ||||||||||||||
Total net periodic benefit cost | $ | 52 | $ | 110 | $ | 19 | $ | 33 | ||||||||||
NET PERIODIC BENEFIT COST – SDG&E | ||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||
Pension Benefits | Other Postretirement Benefits | |||||||||||||||||
Three months ended September 30, | Three months ended September 30, | |||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||
Service cost | $ | 8 | $ | 7 | $ | 2 | $ | 1 | ||||||||||
Interest cost | 9 | 11 | 2 | 2 | ||||||||||||||
Expected return on assets | -13 | -11 | -3 | -1 | ||||||||||||||
Amortization of: | ||||||||||||||||||
Prior service cost | ― | ― | 1 | 1 | ||||||||||||||
Actuarial loss | 3 | 4 | ― | ― | ||||||||||||||
Settlement | 1 | -1 | ― | ― | ||||||||||||||
Regulatory adjustment | 3 | 7 | 1 | 1 | ||||||||||||||
Total net periodic benefit cost | $ | 11 | $ | 17 | $ | 3 | $ | 4 | ||||||||||
Nine months ended September 30, | Nine months ended September 30, | |||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||
Service cost | $ | 24 | $ | 21 | $ | 6 | $ | 5 | ||||||||||
Interest cost | 30 | 34 | 6 | 6 | ||||||||||||||
Expected return on assets | -39 | -35 | -7 | -5 | ||||||||||||||
Amortization of: | ||||||||||||||||||
Prior service cost | 1 | 1 | 3 | 3 | ||||||||||||||
Actuarial loss | 10 | 11 | ― | ― | ||||||||||||||
Settlement | 1 | 1 | ― | ― | ||||||||||||||
Regulatory adjustment | -3 | 7 | 1 | 2 | ||||||||||||||
Total net periodic benefit cost | $ | 24 | $ | 40 | $ | 9 | $ | 11 | ||||||||||
NET PERIODIC BENEFIT COST – SOCALGAS | ||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||
Pension Benefits | Other Postretirement Benefits | |||||||||||||||||
Three months ended September 30, | Three months ended September 30, | |||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||
Service cost | $ | 17 | $ | 13 | $ | 5 | $ | 2 | ||||||||||
Interest cost | 22 | 24 | 8 | 9 | ||||||||||||||
Expected return on assets | -24 | -23 | -12 | -10 | ||||||||||||||
Amortization of: | ||||||||||||||||||
Prior service credit | ― | ― | -2 | -1 | ||||||||||||||
Actuarial loss | 6 | 6 | ― | 1 | ||||||||||||||
Regulatory adjustment | -17 | 2 | 2 | 2 | ||||||||||||||
Total net periodic benefit cost | $ | 4 | $ | 22 | $ | 1 | $ | 3 | ||||||||||
Nine months ended September 30, | Nine months ended September 30, | |||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||
Service cost | $ | 50 | $ | 40 | $ | 13 | $ | 12 | ||||||||||
Interest cost | 68 | 74 | 26 | 31 | ||||||||||||||
Expected return on assets | -73 | -72 | -36 | -33 | ||||||||||||||
Amortization of: | ||||||||||||||||||
Prior service cost (credit) | 1 | 1 | -6 | -5 | ||||||||||||||
Actuarial loss | 23 | 17 | 4 | 8 | ||||||||||||||
Settlement | ― | 1 | ― | ― | ||||||||||||||
Regulatory adjustment | -62 | -16 | 6 | 6 | ||||||||||||||
Total net periodic benefit cost | $ | 7 | $ | 45 | $ | 7 | $ | 19 | ||||||||||
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 2013: | ||||||||||||||||||
Sempra Energy | ||||||||||||||||||
(Dollars in millions) | Consolidated | SDG&E | SoCalGas | |||||||||||||||
Contributions through September 30, 2013: | ||||||||||||||||||
Pension plans | $ | 48 | $ | 26 | $ | 8 | ||||||||||||
Other postretirement benefit plans | 19 | 9 | 7 | |||||||||||||||
Total expected contributions in 2013: | ||||||||||||||||||
Pension plans | $ | 132 | $ | 53 | $ | 59 | ||||||||||||
Other postretirement benefit plans | 23 | 12 | 7 | |||||||||||||||
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 $486 million and $510 million at September 30, 2013 and December 31, 2012, respectively. | ||||||||||||||||||
EARNINGS PER SHARE | ||||||||||||||||||
The following table provides the per share computations for our earnings for the three months and nine months ended September 30, 2013 and 2012. Basic earnings per common share (EPS) is calculated by dividing earnings attributable to common shares 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 SHARE COMPUTATIONS | ||||||||||||||||||
(Dollars in millions, except per share amounts; shares in thousands) | ||||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||
Numerator: | ||||||||||||||||||
Earnings/Income attributable to common shares | $ | 296 | $ | 268 | $ | 719 | $ | 566 | ||||||||||
Denominator: | ||||||||||||||||||
Weighted-average common shares | ||||||||||||||||||
outstanding for basic EPS | 244,140 | 241,689 | 243,682 | 241,133 | ||||||||||||||
Dilutive effect of stock options, restricted | ||||||||||||||||||
stock awards and restricted stock units | 5,119 | 4,113 | 5,041 | 3,880 | ||||||||||||||
Weighted-average common shares | ||||||||||||||||||
outstanding for diluted EPS | 249,259 | 245,802 | 248,723 | 245,013 | ||||||||||||||
Earnings per share: | ||||||||||||||||||
Basic | $ | 1.21 | $ | 1.11 | $ | 2.95 | $ | 2.35 | ||||||||||
Diluted | $ | 1.19 | $ | 1.09 | $ | 2.89 | $ | 2.31 | ||||||||||
The dilution from common stock options is based on the treasury stock method. Under this method, proceeds based on the exercise price plus unearned compensation and windfall tax benefits recognized, minus tax shortfalls recognized, are assumed to be used to repurchase shares on the open market at the average market price for the period. The windfall tax benefits are tax deductions we would receive upon the assumed exercise of stock options in excess of the deferred income taxes we recorded related to the compensation expense on the stock options. Tax shortfalls occur when the assumed tax deductions are less than recorded deferred income taxes. The calculation excludes options for which the exercise price on common stock was greater than the average market price during the period (out-of-the-money options). We had no such antidilutive stock options outstanding during either the three months or nine months ended September 30, 2013. We had no such antidilutive stock options outstanding during the three months ended September 30, 2012 and 40,000 such options outstanding during the nine months ended September 30, 2012. | ||||||||||||||||||
During the three months and nine months ended September 30, 2013 and 2012, we had no stock options outstanding that were antidilutive because of the unearned compensation and windfall tax benefits included in the assumed proceeds under the treasury stock method. | ||||||||||||||||||
The dilution from unvested restricted stock awards (RSAs) and restricted stock units (RSUs) is also based on the treasury stock method. Proceeds equal to the unearned compensation and windfall tax benefits recognized, minus tax shortfalls recognized, related to the awards and units are assumed to be used to repurchase shares on the open market at the average market price for the period. The windfall tax benefits recognized or tax shortfalls recognized are the difference between tax deductions we would receive upon the assumed vesting of RSAs or RSUs and the deferred income taxes we recorded related to the compensation expense on such awards and units. There were no antidilutive RSUs from the application of unearned compensation in the treasury stock method for either the three months or nine months ended September 30, 2013. There were 3,387 such antidilutive RSUs for the three months ended September 30, 2012 and 1,881 such antidilutive RSUs for the nine months ended September 30, 2012. There were no such antidilutive RSAs for either the three months or nine months ended September 30, 2013. There were no such antidilutive RSAs for the three months ended September 30, 2012 and 14,319 such antidilutive RSAs for the nine months ended September 30, 2012. | ||||||||||||||||||
Each performance-based RSU represents the right to receive between zero and 1.5 shares of Sempra Energy common stock based on Sempra Energy's four-year cumulative total shareholder return compared to the Standard & Poor's (S&P) 500 Utilities Index, as follows: | ||||||||||||||||||
Four-Year Cumulative Total Shareholder Return Ranking versus S&P 500 Utilities Index(1) | Number of Sempra Energy Common Shares Received for Each Performance-Based Restricted Stock Unit(2) | |||||||||||||||||
75th Percentile or Above | 1.5 | |||||||||||||||||
50th Percentile | 1 | |||||||||||||||||
35th Percentile or Below | ― | |||||||||||||||||
-1 | If Sempra Energy ranks at or above the 50th percentile compared to the S&P 500 Index, participants will receive a minimum of 1.0 share for each RSU. | |||||||||||||||||
-2 | Participants also receive additional shares for dividend equivalents on shares subject to RSUs, which are reinvested to purchase additional units that become subject to the same vesting conditions as the RSUs to which the dividends relate. | |||||||||||||||||
RSAs and those RSUs which are solely service-based have a maximum potential of 100 percent vesting and have the same dividend equivalent rights as performance-based RSUs. We include our performance-based RSUs in potential dilutive shares at zero to 150 percent to the extent that they currently meet the performance requirements for vesting, subject to the application of the treasury stock method. Due to market fluctuations of both Sempra Energy stock and the comparative index, dilutive performance-based RSUs may vary widely from period-to-period. We include our RSAs, which are solely service-based, and those RSUs that are solely service-based in potential dilutive shares at 100 percent. | ||||||||||||||||||
RSUs and RSAs may be excluded from potential dilutive shares by the application of unearned compensation in the treasury stock method, as we discuss above, or because performance goals are currently not met. The maximum excluded RSAs and RSUs, assuming performance goals were met at maximum levels, were 712,941 and 889,420 for the three months and nine months ended September 30, 2013, respectively, and 2,349,338 and 2,523,343 for the three months and nine months ended September 30, 2012, respectively. | ||||||||||||||||||
SDG&E PREFERRED STOCK | ||||||||||||||||||
In September 2013, SDG&E announced that it would redeem all six series of its outstanding shares of contingently redeemable preferred stock at prices ranging from $20.25 to $26.00 per share plus accrued dividends of $1 million. The redemption was completed in October 2013, and accordingly, we recorded the redemption value of $82 million, including a $3 million early call premium, as a current liability at September 30, 2013, included in Other Current Liabilities and Preferred Stock Pending Redemption on Sempra Energy's and SDG&E's Condensed Consolidated Balance Sheets, respectively. The early call premium is presented as Call Premium on Preferred Stock of Subsidiary on Sempra Energy's and Call Premium on Preferred Stock on SDG&E's Condensed Consolidated Statements of Operations. We provide more detail concerning SDG&E's preferred stock in Note 12 of the Notes to Consolidated Financial Statements in the Annual Report. | ||||||||||||||||||
SHARE-BASED COMPENSATION | ||||||||||||||||||
We discuss our share-based compensation plans in Note 9 of the Notes to Consolidated Financial Statements in the Annual Report. We recorded share-based compensation expense, net of income taxes, of $6 million and $5 million for the three months ended September 30, 2013 and 2012, respectively, and $17 million and $18 million for the nine months ended September 30, 2013 and 2012, respectively. Pursuant to our share-based compensation plans, we granted 651,193 performance-based RSUs, 105,680 service-based RSUs and 4,617 RSAs during the nine months ended September 30, 2013, primarily in January. | ||||||||||||||||||
In April 2013, the IEnova board of directors approved the IEnova 2013 Long-Term Incentive Plan. The purpose of this plan is to align the interests of employees and directors of IEnova with its shareholders. All awards issued from this plan and any related dividend equivalents will settle in cash based on the fair market value of the awards, based on IEnova's common stock value, upon vesting. In 2013, 1,014,899 RSUs have been issued from this plan. | ||||||||||||||||||
CAPITALIZED FINANCING COSTS | ||||||||||||||||||
Capitalized financing costs include capitalized interest costs and, primarily at the California Utilities, an allowance for funds used during construction (AFUDC) related to both debt and equity financing of construction projects. The following table shows capitalized financing costs for the three months and nine months ended September 30, 2013 and 2012. | ||||||||||||||||||
CAPITALIZED FINANCING COSTS | ||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||
Sempra Energy Consolidated: | ||||||||||||||||||
AFUDC related to debt | $ | 6 | $ | 5 | $ | 17 | $ | 32 | ||||||||||
AFUDC related to equity | 14 | 13 | 44 | 80 | ||||||||||||||
Other capitalized financing costs | 9 | 13 | 22 | 40 | ||||||||||||||
Total Sempra Energy Consolidated | $ | 29 | $ | 31 | $ | 83 | $ | 152 | ||||||||||
SDG&E: | ||||||||||||||||||
AFUDC related to debt | $ | 4 | $ | 3 | $ | 12 | $ | 26 | ||||||||||
AFUDC related to equity | 10 | 6 | 30 | 61 | ||||||||||||||
Total SDG&E | $ | 14 | $ | 9 | $ | 42 | $ | 87 | ||||||||||
SoCalGas: | ||||||||||||||||||
AFUDC related to debt | $ | 2 | $ | 2 | $ | 5 | $ | 6 | ||||||||||
AFUDC related to equity | 4 | 7 | 14 | 19 | ||||||||||||||
Total SoCalGas | $ | 6 | $ | 9 | $ | 19 | $ | 25 | ||||||||||
COMPREHENSIVE INCOME | ||||||||||||||||||
The following tables present the changes in Accumulated Other Comprehensive Income by component and amounts reclassified out of Accumulated Other Comprehensive Income (Loss) to net income, excluding amounts attributable to noncontrolling interests: | ||||||||||||||||||
CHANGES IN COMPONENTS OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (1) | ||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||
Three months ended September 30, 2013 | ||||||||||||||||||
Foreign | Total | |||||||||||||||||
Currency | Unamortized | Unamortized | Accumulated Other | |||||||||||||||
Translation | Net | Prior Service | Financial | Comprehensive | ||||||||||||||
Adjustments | Actuarial Loss | Credit | Instruments | Income (Loss) | ||||||||||||||
Sempra Energy Consolidated: | ||||||||||||||||||
Balance as of June 30, 2013 | $ | -96 | $ | -98 | $ | 1 | $ | -26 | $ | -219 | ||||||||
Other comprehensive income (loss) before | ||||||||||||||||||
reclassifications | 5 | ― | ― | -6 | -1 | |||||||||||||
Amounts reclassified from accumulated other | ||||||||||||||||||
comprehensive income | ― | 3 | ― | 2 | 5 | |||||||||||||
Net other comprehensive income (loss) | 5 | 3 | ― | -4 | 4 | |||||||||||||
Balance as of September 30, 2013 | $ | -91 | $ | -95 | $ | 1 | $ | -30 | $ | -215 | ||||||||
SDG&E: | ||||||||||||||||||
Balance as of June 30, 2013 | $ | ― | $ | -11 | $ | 1 | $ | ― | $ | -10 | ||||||||
Amounts reclassified from accumulated other | ||||||||||||||||||
comprehensive income | ― | 1 | ― | ― | 1 | |||||||||||||
Net other comprehensive income | ― | 1 | ― | ― | 1 | |||||||||||||
Balance as of September 30, 2013 | $ | ― | $ | -10 | $ | 1 | $ | ― | $ | -9 | ||||||||
-1 | All amounts are net of income tax, if subject to tax, and exclude noncontrolling interests. | |||||||||||||||||
CHANGES IN COMPONENTS OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (1) | ||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||
Nine months ended September 30, 2013 | ||||||||||||||||||
Foreign | Total | |||||||||||||||||
Currency | Unamortized | Unamortized | Accumulated Other | |||||||||||||||
Translation | Net | Prior Service | Financial | Comprehensive | ||||||||||||||
Adjustments | Actuarial Loss | Credit | Instruments | Income (Loss) | ||||||||||||||
Sempra Energy Consolidated: | ||||||||||||||||||
Balance as of December 31, 2012 | $ | -240 | $ | -102 | $ | 1 | $ | -35 | $ | -376 | ||||||||
Other comprehensive income (loss) before | ||||||||||||||||||
reclassifications | -121 | ― | ― | 1 | -120 | |||||||||||||
Amounts reclassified from accumulated other | ||||||||||||||||||
comprehensive income | 270 | -2 | 7 | ― | 4 | 281 | ||||||||||||
Net other comprehensive income | 149 | 7 | ― | 5 | 161 | |||||||||||||
Balance as of September 30, 2013 | $ | -91 | $ | -95 | $ | 1 | $ | -30 | $ | -215 | ||||||||
SDG&E: | ||||||||||||||||||
Balance as of December 31, 2012 | $ | ― | $ | -12 | $ | 1 | $ | ― | $ | -11 | ||||||||
Amounts reclassified from accumulated other | ||||||||||||||||||
comprehensive income | ― | 2 | ― | ― | 2 | |||||||||||||
Net other comprehensive income | ― | 2 | ― | ― | 2 | |||||||||||||
Balance as of September 30, 2013 | $ | ― | $ | -10 | $ | 1 | $ | ― | $ | -9 | ||||||||
SoCalGas: | ||||||||||||||||||
Balance as of December 31, 2012 | $ | ― | $ | -4 | $ | 1 | $ | -15 | $ | -18 | ||||||||
Amounts reclassified from accumulated other | ||||||||||||||||||
comprehensive income | ― | ― | ― | 1 | 1 | |||||||||||||
Net other comprehensive income | ― | ― | ― | 1 | 1 | |||||||||||||
Balance as of September 30, 2013 | $ | ― | $ | -4 | $ | 1 | $ | -14 | $ | -17 | ||||||||
-1 | All amounts are net of income tax, if subject to tax, and exclude noncontrolling interests. | |||||||||||||||||
-2 | Represents cumulative foreign currency translation adjustment related to the impairment of our Argentine investments in 2006, which is substantially offset by an accrued liability established at that time. We provide additional information about these investments in Note 4. | |||||||||||||||||
RECLASSIFICATIONS FROM ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||
Three months ended September 30, 2013 | ||||||||||||||||||
Amount reclassified | ||||||||||||||||||
Details about accumulated | from accumulated other | Affected line item | ||||||||||||||||
other comprehensive income (loss) components | comprehensive income (loss) | on Condensed Consolidated Statement of Operations | ||||||||||||||||
Sempra Energy Consolidated: | ||||||||||||||||||
Financial instruments: | ||||||||||||||||||
Interest rate instruments | $ | 3 | Interest Expense | |||||||||||||||
Interest rate instruments | 3 | Equity Losses, Before Income Tax | ||||||||||||||||
Total before income tax | 6 | |||||||||||||||||
-2 | Income Tax | |||||||||||||||||
Net of income tax | 4 | |||||||||||||||||
-2 | Earnings Attributable to Noncontrolling Interests | |||||||||||||||||
$ | 2 | |||||||||||||||||
Amortization of defined benefit pension | ||||||||||||||||||
and postretirement benefits items: | ||||||||||||||||||
Actuarial gain | $ | 5 | -1 | |||||||||||||||
-2 | Income Tax | |||||||||||||||||
Net of income tax | $ | 3 | ||||||||||||||||
SDG&E: | ||||||||||||||||||
Financial instruments: | ||||||||||||||||||
Interest rate instruments | $ | 2 | Interest Expense | |||||||||||||||
-2 | Earnings Attributable to Noncontrolling Interest | |||||||||||||||||
$ | ― | |||||||||||||||||
Amortization of defined benefit pension | ||||||||||||||||||
and postretirement benefits items: | ||||||||||||||||||
Actuarial gain | $ | 2 | -1 | |||||||||||||||
-1 | Income Tax | |||||||||||||||||
Net of income tax | $ | 1 | ||||||||||||||||
-1 | Amounts are included in the computation of net periodic benefit cost (see "Pension and Other Postretirement Benefits" above). | |||||||||||||||||
RECLASSIFICATIONS FROM ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||
Nine months ended September 30, 2013 | ||||||||||||||||||
Amount reclassified | ||||||||||||||||||
Details about accumulated | from accumulated other | Affected line item | ||||||||||||||||
other comprehensive income (loss) components | comprehensive income (loss) | on Condensed Consolidated Statement of Operations | ||||||||||||||||
Sempra Energy Consolidated: | ||||||||||||||||||
Foreign currency translation | $ | 270 | Equity Earnings, Net of Income Tax(1) | |||||||||||||||
Financial instruments: | ||||||||||||||||||
Interest rate instruments | $ | 9 | Interest Expense | |||||||||||||||
Interest rate instruments | 7 | Equity Losses, Before Income Tax | ||||||||||||||||
Commodity contracts not subject to | Cost of Natural Gas, Electric Fuel and Purchased | |||||||||||||||||
rate recovery | -5 | Power | ||||||||||||||||
Total before income tax | 11 | |||||||||||||||||
-1 | Income Tax | |||||||||||||||||
Net of income tax | 10 | |||||||||||||||||
-6 | Earnings Attributable to Noncontrolling Interests | |||||||||||||||||
$ | 4 | |||||||||||||||||
Amortization of defined benefit pension | ||||||||||||||||||
and postretirement benefits items: | ||||||||||||||||||
Actuarial gain | $ | 12 | -2 | |||||||||||||||
-5 | Income Tax | |||||||||||||||||
Net of income tax | $ | 7 | ||||||||||||||||
SDG&E: | ||||||||||||||||||
Financial instruments: | ||||||||||||||||||
Interest rate instruments | $ | 6 | Interest Expense | |||||||||||||||
-6 | Earnings Attributable to Noncontrolling Interest | |||||||||||||||||
$ | ― | |||||||||||||||||
Amortization of defined benefit pension | ||||||||||||||||||
and postretirement benefits items: | ||||||||||||||||||
Actuarial gain | $ | 3 | -2 | |||||||||||||||
-1 | Income Tax | |||||||||||||||||
Net of income tax | $ | 2 | ||||||||||||||||
SoCalGas: | ||||||||||||||||||
Financial instruments: | ||||||||||||||||||
Interest rate instruments | $ | 1 | Interest Expense | |||||||||||||||
― | Income Tax | |||||||||||||||||
Net of income tax | $ | 1 | ||||||||||||||||
-1 | Represents cumulative foreign currency translation adjustment related to the impairment of our Argentine investments in 2006, which is substantially offset by an accrued liability established at that time. We provide additional information about these investments in Note 4. | |||||||||||||||||
-2 | Amounts are included in the computation of net periodic benefit cost (see "Pension and Other Postretirement Benefits" above). | |||||||||||||||||
For the three months ended September 30, 2013, Other Comprehensive Income, excluding amounts attributable to noncontrolling interests, at SoCalGas was negligible and reclassifications out of Accumulated Other Comprehensive Income (Loss) to Net Income were also negligible for SoCalGas. | ||||||||||||||||||
The amounts for comprehensive income in the Condensed Consolidated Statements of Comprehensive Income are net of income tax expense (benefit) as follows: | ||||||||||||||||||
INCOME TAX EXPENSE (BENEFIT) ASSOCIATED WITH OTHER COMPREHENSIVE INCOME | ||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||
Three months ended September 30, | ||||||||||||||||||
2013 | 2012 | |||||||||||||||||
Share- | Non- | Share- | Non- | |||||||||||||||
holders' | controlling | Total | holders' | controlling | Total | |||||||||||||
Equity(1) | Interests | Equity | Equity(1) | Interests | Equity | |||||||||||||
Sempra Energy Consolidated: | ||||||||||||||||||
Other comprehensive income before | ||||||||||||||||||
reclassifications: | ||||||||||||||||||
Financial instruments | $ | -2 | $ | ― | $ | -2 | $ | -3 | $ | ― | $ | -3 | ||||||
Amounts reclassified from accumulated other | ||||||||||||||||||
comprehensive income: | ||||||||||||||||||
Pension and other postretirement benefits | $ | 2 | $ | ― | $ | 2 | $ | -7 | $ | ― | $ | -7 | ||||||
Financial instruments | 2 | ― | 2 | 2 | ― | 2 | ||||||||||||
SDG&E: | ||||||||||||||||||
Amounts reclassified from accumulated other | ||||||||||||||||||
comprehensive income: | ||||||||||||||||||
Pension and other postretirement benefits | $ | 1 | $ | ― | $ | 1 | $ | ― | $ | ― | $ | ― | ||||||
SoCalGas: | ||||||||||||||||||
Amounts reclassified from accumulated other | ||||||||||||||||||
comprehensive income: | ||||||||||||||||||
Financial instruments | $ | ― | $ | ― | $ | ― | $ | 1 | $ | ― | $ | 1 | ||||||
Nine months ended September 30, | ||||||||||||||||||
2013 | 2012 | |||||||||||||||||
Share- | Non- | Share- | Non- | |||||||||||||||
holders' | controlling | Total | holders' | controlling | Total | |||||||||||||
Equity(1) | Interests | Equity | Equity(1) | Interests | Equity | |||||||||||||
Sempra Energy Consolidated: | ||||||||||||||||||
Other comprehensive income before | ||||||||||||||||||
reclassifications: | ||||||||||||||||||
Financial instruments | $ | 3 | $ | ― | $ | 3 | $ | -8 | $ | ― | $ | -8 | ||||||
Amounts reclassified from accumulated other | ||||||||||||||||||
comprehensive income: | ||||||||||||||||||
Pension and other postretirement benefits | $ | 5 | $ | ― | $ | 5 | $ | -4 | $ | ― | $ | -4 | ||||||
Financial instruments | 1 | ― | 1 | 3 | ― | 3 | ||||||||||||
SDG&E: | ||||||||||||||||||
Amounts reclassified from accumulated other | ||||||||||||||||||
comprehensive income: | ||||||||||||||||||
Pension and other postretirement benefits | $ | 1 | $ | ― | $ | 1 | $ | ― | $ | ― | $ | ― | ||||||
SoCalGas: | ||||||||||||||||||
Amounts reclassified from accumulated other | ||||||||||||||||||
comprehensive income: | ||||||||||||||||||
Financial instruments | $ | ― | $ | ― | $ | ― | $ | 1 | $ | ― | $ | 1 | ||||||
-1 | Shareholders' equity of Sempra Energy Consolidated, SDG&E or SoCalGas as indicated in left margin. | |||||||||||||||||
SHAREHOLDERS' EQUITY AND NONCONTROLLING INTERESTS | ||||||||||||||||||
The following two tables provide a reconciliation of Sempra Energy's and SDG&E's shareholders' equity and noncontrolling interests for the nine months ended September 30, 2013 and 2012. | ||||||||||||||||||
SHAREHOLDERS’ EQUITY AND NONCONTROLLING INTERESTS | ||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||
Sempra | ||||||||||||||||||
Energy | Non- | |||||||||||||||||
Shareholders’ | controlling | Total | ||||||||||||||||
Equity | Interests | Equity | ||||||||||||||||
Balance at December 31, 2012 | $ | 10,282 | $ | 401 | $ | 10,683 | ||||||||||||
Comprehensive income | 888 | 33 | 921 | |||||||||||||||
Preferred dividends of subsidiaries | -5 | ― | -5 | |||||||||||||||
Share-based compensation expense | 30 | ― | 30 | |||||||||||||||
Common stock dividends declared | -460 | ― | -460 | |||||||||||||||
Issuance of common stock | 57 | ― | 57 | |||||||||||||||
Repurchase of common stock | -45 | ― | -45 | |||||||||||||||
Tax benefit related to share-based compensation | 30 | ― | 30 | |||||||||||||||
Sale of noncontrolling interests, net of offering costs | 135 | 439 | 574 | |||||||||||||||
Distributions to noncontrolling interests | ― | -28 | -28 | |||||||||||||||
Call premium on preferred stock of subsidiary | -3 | ― | -3 | |||||||||||||||
Balance at September 30, 2013 | $ | 10,909 | $ | 845 | $ | 11,754 | ||||||||||||
Balance at December 31, 2011 | $ | 9,775 | $ | 403 | $ | 10,178 | ||||||||||||
Comprehensive income | 671 | 42 | 713 | |||||||||||||||
Preferred dividends of subsidiaries | -5 | ― | -5 | |||||||||||||||
Share-based compensation expense | 33 | ― | 33 | |||||||||||||||
Common stock dividends declared | -435 | ― | -435 | |||||||||||||||
Issuance of common stock | 50 | ― | 50 | |||||||||||||||
Repurchase of common stock | -16 | ― | -16 | |||||||||||||||
Common stock released from ESOP(1) | 9 | ― | 9 | |||||||||||||||
Equity contributed by noncontrolling interest | ― | 5 | 5 | |||||||||||||||
Distributions to noncontrolling interests | ― | -36 | -36 | |||||||||||||||
Balance at September 30, 2012 | $ | 10,082 | $ | 414 | $ | 10,496 | ||||||||||||
-1 | Employee Stock Ownership Plan | |||||||||||||||||
SHAREHOLDER’S EQUITY AND NONCONTROLLING INTEREST | ||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||
SDG&E | Non- | |||||||||||||||||
Shareholder’s | controlling | Total | ||||||||||||||||
Equity | Interest | Equity | ||||||||||||||||
Balance at December 31, 2012 | $ | 4,222 | $ | 76 | $ | 4,298 | ||||||||||||
Comprehensive income | 294 | 15 | 309 | |||||||||||||||
Preferred stock dividends declared | -4 | ― | -4 | |||||||||||||||
Distributions to noncontrolling interest | ― | -12 | -12 | |||||||||||||||
Call premium on preferred stock | -3 | ― | -3 | |||||||||||||||
Balance at September 30, 2013 | $ | 4,509 | $ | 79 | $ | 4,588 | ||||||||||||
Balance at December 31, 2011 | $ | 3,739 | $ | 102 | $ | 3,841 | ||||||||||||
Comprehensive income | 378 | 10 | 388 | |||||||||||||||
Preferred stock dividends declared | -4 | ― | -4 | |||||||||||||||
Distributions to noncontrolling interest | ― | -22 | -22 | |||||||||||||||
Balance at September 30, 2012 | $ | 4,113 | $ | 90 | $ | 4,203 | ||||||||||||
Ownership interests that are held by owners other than Sempra Energy and SDG&E in subsidiaries or entities consolidated by them are accounted for and reported as noncontrolling interests. As a result, noncontrolling interests are reported as a separate component of equity on the Condensed Consolidated Balance Sheets. Earnings or losses attributable to noncontrolling interests are separately identified on the Condensed Consolidated Statements of Operations, and comprehensive income or loss attributable to noncontrolling interests is separately identified on the Condensed Consolidated Statements of Comprehensive Income. | ||||||||||||||||||
Sale of Noncontrolling Interests | ||||||||||||||||||
On March 21, 2013, Sempra Energy's subsidiary, Infraestructura Energética Nova, S.A.B. de C.V. (IEnova) priced a private offering in the U.S. and outside of Mexico and a concurrent initial public offering in Mexico of new shares of Class II, Single Series common stock at $2.75 per share in U.S. dollars or 34.00 Mexican pesos. The initial purchasers in the private offering and the underwriters in the Mexican public offering were granted a 30-day option to purchase additional common shares at the initial offering price, less the underwriting discount, to cover overallotments. These options were exercised before the settlement date of the offerings, which was March 27, 2013. After the initial offerings and the exercise of the overallotment options, the aggregate shares of common stock sold in the offerings totaled 218,110,500, representing approximately 18.9 percent of IEnova's outstanding ownership interest. | ||||||||||||||||||
The net proceeds of the offerings, including the additional option shares, were approximately $574 million in U.S. dollars or 7.1 billion Mexican pesos. IEnova expects to use the net proceeds of the offerings primarily for general corporate purposes, and for the funding of its current investments and ongoing expansion plans. All U.S. dollar equivalents presented here were based on an exchange rate of 12.3841 Mexican pesos to 1.00 U.S. dollar as of March 21, 2013, the pricing date for the offerings. Net proceeds are after reduction for underwriting discounts and commissions and offering expenses. Following completion of the initial offerings and overallotment options, we beneficially owned 81.1 percent of IEnova and its subsidiaries. Consistent with applicable accounting guidance, changes in noncontrolling interests that do not result in a change of control are accounted for as equity transactions. When there are changes in noncontrolling interests of a subsidiary that do not result in a change of control, any difference between carrying value and fair value related to the change in ownership is recorded as an adjustment to shareholders' equity. As a result of the offerings and overallotment options, we recorded an increase in Sempra Energy's shareholders' equity of $135 million for the sale of IEnova shares to noncontrolling interests. | ||||||||||||||||||
IEnova is a separate legal entity, formerly known as Sempra México, S.A. de C.V., comprised primarily of Sempra Energy's operations in Mexico. IEnova is included within our Sempra Mexico reportable segment, but is not the same in its entirety as the reportable segment. In addition to the IEnova operating companies, the Sempra Mexico segment includes, among other things, certain holding companies and risk management activity. Also, IEnova's financial results are reported in Mexico under IFRS, as required by the Mexican Stock Exchange (the Bolsa Mexicana de Valores, S.A.B. de C.V.) where the new shares are now traded under the symbol IENOVA. | ||||||||||||||||||
The private offering was exempt from registration under the U.S. Securities Act of 1933, as amended (the Securities Act), and shares in the private offering were offered and sold only to qualified institutional buyers pursuant to Rule 144A under the Securities Act and to persons outside of the United States, in accordance with Regulation S under the Securities Act. The shares were not registered under the Securities Act or any state securities laws, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable securities laws. | ||||||||||||||||||
Preferred Stock | ||||||||||||||||||
The preferred stock of SoCalGas is presented at Sempra Energy as a noncontrolling interest at September 30, 2013 and December 31, 2012. The preferred stock of SDG&E was contingently redeemable preferred stock and was fully redeemed in October 2013, as we discuss in “SDG&E Preferred Stock” above. At Sempra Energy, the preferred stock dividends of both SDG&E and SoCalGas are charges against income related to noncontrolling interests. We provide additional information concerning preferred stock in Note 12 of the Notes to Consolidated Financial Statements in the Annual Report. | ||||||||||||||||||
At September 30, 2013 and December 31, 2012, we reported the following other noncontrolling ownership interests held by others (not including preferred shareholders) 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 Others | 30-Sep-13 | 31-Dec-12 | ||||||||||||||||
SDG&E: | ||||||||||||||||||
Otay Mesa VIE | 100 | % | $ | 79 | $ | 76 | ||||||||||||
Sempra South American Utilities: | ||||||||||||||||||
Chilquinta Energía subsidiaries(1) | 24.4 – 43.4 | 27 | 29 | |||||||||||||||
Luz del Sur | 20.2 | 222 | 236 | |||||||||||||||
Tecsur | 9.8 | 3 | 4 | |||||||||||||||
Sempra Mexico: | ||||||||||||||||||
IEnova, S.A.B. de C.V. | 18.9 | 457 | ― | |||||||||||||||
Sempra Natural Gas: | ||||||||||||||||||
Bay Gas Storage, Ltd. | 9.1 | 21 | 20 | |||||||||||||||
Liberty Gas Storage, LLC | 25 | 15 | 15 | |||||||||||||||
Southern Gas Transmission Company | 49 | 1 | 1 | |||||||||||||||
Total Sempra Energy | $ | 825 | $ | 381 | ||||||||||||||
-1 | Chilquinta Energía has four subsidiaries with noncontrolling interests held by others. Percentage range reflects the highest and lowest ownership percentages amongst these subsidiaries. | |||||||||||||||||
TRANSACTIONS WITH AFFILIATES | ||||||||||||||||||
Sempra Energy, SDG&E and SoCalGas provide certain services to each other and are charged an allocable share of the cost of such services. Amounts due to/from affiliates are as follows: | ||||||||||||||||||
AMOUNTS DUE TO AND FROM AFFILIATES AT SDG&E AND SOCALGAS | ||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||
September 30, | December 31, | |||||||||||||||||
2013 | 2012 | |||||||||||||||||
SDG&E | ||||||||||||||||||
Current: | ||||||||||||||||||
Due from SoCalGas | $ | ― | $ | 37 | ||||||||||||||
Due from various affiliates | 1 | 2 | ||||||||||||||||
$ | 1 | $ | 39 | |||||||||||||||
Due to Sempra Energy | $ | 11 | $ | 19 | ||||||||||||||
Due to SoCalGas | 2 | ― | ||||||||||||||||
$ | 13 | $ | 19 | |||||||||||||||
Income taxes due (to) from Sempra Energy(1) | $ | -2 | $ | 12 | ||||||||||||||
SoCalGas | ||||||||||||||||||
Current: | ||||||||||||||||||
Due from Sempra Energy | $ | 12 | $ | 24 | ||||||||||||||
Due from SDG&E | 2 | ― | ||||||||||||||||
$ | 14 | $ | 24 | |||||||||||||||
Due to SDG&E | $ | ― | $ | 37 | ||||||||||||||
Due to affiliate | 20 | ― | ||||||||||||||||
$ | 20 | $ | 37 | |||||||||||||||
Income taxes due from Sempra Energy(1) | $ | 130 | $ | 99 | ||||||||||||||
-1 | SDG&E and SoCalGas are included in the consolidated income tax return of Sempra Energy and are allocated income tax expense from Sempra Energy in an amount equal to that which would result from the companies’ having always filed a separate return. | |||||||||||||||||
Revenues from unconsolidated affiliates at SDG&E and SoCalGas are as follows: | ||||||||||||||||||
REVENUES FROM UNCONSOLIDATED AFFILIATES AT SDG&E AND SOCALGAS | ||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||
SDG&E | $ | 3 | $ | 2 | $ | 8 | $ | 6 | ||||||||||
SoCalGas | 17 | 17 | 48 | 48 | ||||||||||||||
OTHER INCOME, NET | ||||||||||||||||||
Other Income, Net on the Condensed Consolidated Statements of Operations consists of the following: | ||||||||||||||||||
OTHER INCOME, NET | ||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||
Sempra Energy Consolidated: | ||||||||||||||||||
Allowance for equity funds used during construction | $ | 14 | $ | 13 | $ | 44 | $ | 80 | ||||||||||
Investment (losses) gains(1) | -6 | 17 | 16 | 27 | ||||||||||||||
Gains on interest rate and foreign exchange instruments, net | 4 | 1 | 17 | 11 | ||||||||||||||
Regulatory interest, net(2) | 1 | ― | 3 | 1 | ||||||||||||||
Sundry, net | 3 | 13 | -1 | 18 | ||||||||||||||
Total | $ | 16 | $ | 44 | $ | 79 | $ | 137 | ||||||||||
SDG&E: | ||||||||||||||||||
Allowance for equity funds used during construction | $ | 10 | $ | 6 | $ | 30 | $ | 61 | ||||||||||
Regulatory interest, net(2) | 1 | ― | 3 | 1 | ||||||||||||||
Sundry, net | -1 | -1 | -3 | -3 | ||||||||||||||
Total | $ | 10 | $ | 5 | $ | 30 | $ | 59 | ||||||||||
SoCalGas: | ||||||||||||||||||
Allowance for equity funds used during construction | $ | 4 | $ | 7 | $ | 14 | $ | 19 | ||||||||||
Sundry, net | -2 | -1 | -5 | -5 | ||||||||||||||
Total | $ | 2 | $ | 6 | $ | 9 | $ | 14 | ||||||||||
-1 | Represents investment (losses) gains on dedicated assets in support of our executive retirement and deferred compensation plans. These amounts are partially offset by corresponding changes in compensation expense related to the plans. | |||||||||||||||||
-2 | Interest on regulatory balancing accounts. | |||||||||||||||||
INCOME TAXES | ||||||||||||||||||
INCOME TAX EXPENSE AND EFFECTIVE INCOME TAX RATES | ||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||
Three months ended September 30, | ||||||||||||||||||
2013 | 2012 | |||||||||||||||||
Effective | Effective | |||||||||||||||||
Income Tax | Income | Income Tax | Income | |||||||||||||||
Expense | Tax Rate | Expense | Tax Rate | |||||||||||||||
Sempra Energy Consolidated | $ | 117 | 27 | % | $ | 49 | 15 | % | ||||||||||
SDG&E | 84 | 38 | 38 | 17 | ||||||||||||||
SoCalGas | 38 | 27 | 37 | 34 | ||||||||||||||
Nine months ended September 30, | ||||||||||||||||||
2013 | 2012 | |||||||||||||||||
Effective | Effective | |||||||||||||||||
Income Tax | Income | Income Tax | Income | |||||||||||||||
Expense | Tax Rate | Expense | Tax Rate | |||||||||||||||
Sempra Energy Consolidated | $ | 327 | 30 | % | $ | 48 | 8 | % | ||||||||||
SDG&E | 147 | 33 | 151 | 27 | ||||||||||||||
SoCalGas | 107 | 29 | 105 | 35 | ||||||||||||||
Changes in Income Tax Expense and Effective Income Tax Rates | ||||||||||||||||||
Sempra Energy Consolidated | ||||||||||||||||||
The increase in income tax expense in the three months ended September 30, 2013 was due to higher pretax income and a higher effective tax rate. The change in the effective income tax rate was primarily due to: | ||||||||||||||||||
$33 million income tax benefit at SDG&E in 2012 resulting from a favorable change made in the third quarter in the income tax treatment of certain repairs expenditures that are capitalized for book purposes, including $22 million recorded in 2012 for 2011 and $11 million recorded for the first two quarters of 2012; and | ||||||||||||||||||
lower exclusions from taxable income of the equity portion of AFUDC; offset by | ||||||||||||||||||
income tax benefit in 2013 resulting from a favorable change made in the fourth quarter of 2012 in the income tax treatment of certain repairs expenditures at SoCalGas that are capitalized for financial statement purposes; | ||||||||||||||||||
income tax benefit in 2013 from favorable adjustments to prior years' income tax items; and | ||||||||||||||||||
lower income tax expense from Mexican currency translation and inflation adjustments. | ||||||||||||||||||
The increase in income tax expense in the nine months ended September 30, 2013 was primarily due to significantly higher pretax income in 2013 compared to the same period in 2012 and a higher effective income tax rate. The higher pretax income was primarily due to the write-down of our investment in Rockies Express in 2012 and the favorable impact of the application of the 2012 GRC in 2013, offset by the loss from the early retirement of SONGS in 2013. The income tax benefits for both the loss from the early retirement of SONGS and the write-down of our investment in Rockies Express were recorded at relevant U.S. federal and state statutory income tax rates. The higher effective income tax rate in 2013 was mainly due to: | ||||||||||||||||||
$54 million income tax benefit in 2012 primarily associated with our decision in the second quarter of 2012 to hold life insurance contracts kept in support of certain benefit plans to term. Previously, we took the position that we might cash in or sell these contracts before maturity, which required that we record deferred income taxes on unrealized gains on investments held within the insurance contracts; | ||||||||||||||||||
$63 million income tax expense in 2013 resulting from a corporate reorganization in connection with the IEnova stock offerings. We discuss the stock offerings further in Note 5; | ||||||||||||||||||
lower deferred income tax benefits related to renewable energy projects, offset by higher renewable energy income tax credits; and | ||||||||||||||||||
$22 million income tax benefit at SDG&E recorded in 2012 for 2011 resulting from a favorable change made in the third quarter in the income tax treatment of certain repairs expenditures that are capitalized for book purposes; offset by | ||||||||||||||||||
income tax benefit in 2013 resulting from changes made in the fourth quarter of 2012 in the income tax treatment of certain repairs expenditures at SoCalGas that are capitalized for financial statement purposes, as we discuss above; and | ||||||||||||||||||
lower income tax expense from Mexican currency translation and inflation adjustments. | ||||||||||||||||||
Sempra Energy, SDG&E and SoCalGas record income taxes for interim periods utilizing a forecasted effective tax rate anticipated for the full year, as required by U.S. GAAP. The income tax effect of items that can be reliably forecasted are factored into the forecasted effective tax rate and their impact is recognized proportionately over the year. The forecasted items, anticipated on a full year basis, may include, among others, self-developed software expenditures, repairs to certain utility plant fixed assets, renewable energy income tax credits, deferred income tax benefits related to renewable energy projects, exclusions from taxable income of the equity portion of AFUDC, and depreciation on a certain portion of utility plant assets. Items that are unusual and infrequent in nature that cannot be reliably forecasted (e.g., adjustments related to prior years' income tax items, Mexican currency translation and inflation adjustments, and deferred income tax benefit associated with the impairment of a book investment, etc.) are recorded in the interim period in which they actually occur, which can result in variability to income tax expense. | ||||||||||||||||||
SDG&E | ||||||||||||||||||
The increase in SDG&E's income tax expense in the three months ended September 30, 2013 was primarily due to a higher effective tax rate. The change in the effective tax rate was primarily due to: | ||||||||||||||||||
$33 million income tax benefit in 2012 resulting from a favorable change made in the third quarter in the income tax treatment of certain repairs expenditures that are capitalized for book purposes, including $22 million recorded in 2012 for 2011 and $11 million recorded for the first two quarters of 2012; | ||||||||||||||||||
higher unfavorable adjustments to prior years' income tax items in 2013; | ||||||||||||||||||
higher reversal through book depreciation in 2013 of previously recognized tax benefits for a certain portion of utility fixed assets; and | ||||||||||||||||||
lower favorable impact of exclusions from taxable income of the equity portion of AFUDC. | ||||||||||||||||||
The decrease in SDG&E's income tax expense for the nine months ended September 30, 2013 compared to the same period in 2012 was primarily due to significantly lower pretax income (due to the early retirement of SONGS) offset by a higher effective income tax rate. The income tax benefit for the loss from the early retirement of SONGS was recorded at relevant U.S. federal and state statutory income tax rates in the second quarter of 2013. The higher effective income tax rate in the nine months ended September 30, 2013 was primarily due to: | ||||||||||||||||||
$22 million income tax benefit recorded in 2012 for 2011 resulting from a favorable change made in the third quarter in the income tax treatment of certain repairs expenditures that are capitalized for book purposes; and | ||||||||||||||||||
higher reversal through book depreciation in 2013 of previously recognized tax benefits for a certain portion of utility fixed assets; offset by | ||||||||||||||||||
higher deductions for self-developed software expenditures in 2013. | ||||||||||||||||||
The results for Sempra Energy Consolidated and SDG&E include Otay Mesa VIE, which is not included in Sempra Energy's federal or state income tax returns but is consolidated for financial statement purposes, and therefore, Sempra Energy Consolidated's and SDG&E's effective income tax rates are impacted by the VIE's stand-alone effective income tax rate. We discuss Otay Mesa VIE above in “Variable Interest Entities.” | ||||||||||||||||||
SoCalGas | ||||||||||||||||||
The increase in SoCalGas' income tax expense in the three months ended September 30, 2013 was primarily due to higher pretax income offset by a lower effective income tax rate. The lower effective income tax rate in the three months ended September 30, 2013 was primarily due to: | ||||||||||||||||||
income tax benefit in 2013 resulting from a favorable change, not made until the fourth quarter of 2012, in the income tax treatment of certain repairs expenditures for gas assets that are capitalized for financial statement purposes; and | ||||||||||||||||||
income tax benefit in 2013 due to favorable adjustments to prior years' income tax items; offset by | ||||||||||||||||||
higher reversal through book depreciation in 2013 of previously recognized tax benefits for a certain portion of utility fixed assets. | ||||||||||||||||||
The increase in SoCalGas' income tax expense in the nine months ended September 30, 2013 was primarily due to higher pretax income offset by a lower effective income tax rate. The lower effective income tax rate in the nine months ended September 30, 2013 was primarily due to: | ||||||||||||||||||
income tax benefit in 2013 resulting from a favorable change, not made until the fourth quarter of 2012, in the income tax treatment of certain repairs expenditures for gas assets that are capitalized for financial statement purposes; and | ||||||||||||||||||
income tax benefit in 2013 due to favorable adjustments to prior years' income tax items. | ||||||||||||||||||
On September 13, 2013, the IRS and U.S. Department of the Treasury released final tangible property regulations on the capitalization and expensing rules applicable to expenditures for the acquisition and production of tangible property. A company must conform its tax accounting methods and elect any safe harbors under the final regulations no later than January 1, 2014, however, if a change in the company's tax accounting methods is required to conform to the final regulations, the company must adjust its deferred tax balances in the current period for any tax adjustments required to bring all prior periods into compliance with the final regulations. We have evaluated our capitalization and expensing policies under the final tangible property regulations and believe that these final regulations will not have a material impact on our financial statements. Accordingly, we have not made any adjustment to our deferred tax balances at September 30, 2013 resulting from the IRS' issuance of final tangible property regulations during the period. | ||||||||||||||||||
The California Public Utilities Commission (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 taxes are not recorded to deferred income tax expense, but rather to a regulatory asset or liability. As a result, changes in the relative size of these items compared to pretax income, from period to period, can cause variations in the effective income tax rate. The following items are subject to flow-through treatment: | ||||||||||||||||||
repairs expenditures related to a certain portion of utility plant fixed assets | ||||||||||||||||||
the equity portion of AFUDC | ||||||||||||||||||
a portion of the cost of removal of utility plant assets | ||||||||||||||||||
self-developed software expenditures | ||||||||||||||||||
depreciation on a certain portion of utility plant fixed assets | ||||||||||||||||||
We provide additional information about our accounting for income taxes in Notes 1 and 7 of the Notes to Consolidated Financial Statements in the Annual Report. |
DEBT_AND_CREDIT_FACILITIES
DEBT AND CREDIT FACILITIES | 3 Months Ended |
Sep. 30, 2013 | |
Notes to Consolidated Financial Statements [Abstract] | ' |
Debt and Credit Facilities | ' |
NOTE 6. DEBT AND CREDIT FACILITIES | |
Committed Lines of Credit | |
At September 30, 2013, Sempra Energy Consolidated had an aggregate of $4.1 billion in committed lines of credit to provide liquidity and to support commercial paper, the major components of which we detail below. Available unused credit on these lines at September 30, 2013 was $3.6 billion. | |
Sempra Energy | |
Sempra Energy has a $1.067 billion, five-year syndicated revolving credit agreement expiring in March 2017. Citibank, N.A. serves as administrative agent for the syndicate of 24 lenders. No single lender has greater than a 7-percent share. | |
Borrowings bear interest at benchmark rates plus a margin that varies with market index rates and Sempra Energy's credit ratings. The facility requires Sempra Energy to maintain a ratio of total indebtedness to total capitalization (as defined in the agreement) of no more than 65 percent at the end of each quarter. At September 30, 2013 and December 31, 2012, Sempra Energy was in compliance with this and all other financial covenants under the credit facility. The facility also provides for issuance of up to $635 million of letters of credit on behalf of Sempra Energy with the amount of borrowings otherwise available under the facility reduced by the amount of outstanding letters of credit. | |
At September 30, 2013, Sempra Energy had $12 million of letters of credit outstanding supported by the facility. | |
Sempra Global | |
Sempra Global has a $2.189 billion, five-year syndicated revolving credit agreement expiring in March 2017. Citibank, N.A. serves as administrative agent for the syndicate of 25 lenders. No single lender has greater than a 7-percent share. | |
Sempra Energy guarantees Sempra Global's obligations under the credit facility. Borrowings bear interest at benchmark rates plus a margin that varies with market index rates and Sempra Energy's credit ratings. The facility requires Sempra Energy to maintain a ratio of total indebtedness to total capitalization (as defined in the agreement) of no more than 65 percent at the end of each quarter. At September 30, 2013 and December 31, 2012, Sempra Global was in compliance with this and all of the financial covenants under the credit facility. | |
At September 30, 2013, Sempra Global had $445 million of commercial paper outstanding supported by the facility. At December 31, 2012, $300 million of commercial paper outstanding was classified as long-term debt based on management's intent and ability to maintain this level of borrowing on a long-term basis either supported by this credit facility or by issuing long-term debt. This classification has no impact on cash flows. As a result of issuances of long-term debt in the nine months ended September 30, 2013, as we discuss below, none of the commercial paper outstanding at September 30, 2013 is classified as long-term debt. | |
California Utilities | |
SDG&E and SoCalGas have a combined $877 million, five-year syndicated revolving credit agreement expiring in March 2017. JPMorgan Chase Bank, N.A. serves as administrative agent for the syndicate of 24 lenders. No single lender has greater than a 7-percent share. The agreement permits each utility to individually borrow up to $658 million, subject to a combined limit of $877 million for both utilities. It also provides for the issuance of letters of credit on behalf of each utility subject to a combined letter of credit commitment of $200 million for both utilities. The amount of borrowings otherwise available under the facility is reduced by the amount of outstanding letters of credit. | |
Borrowings under the facility bear interest at benchmark rates plus a margin that varies with market index rates and the borrowing utility's credit ratings. The agreement requires each utility to maintain a ratio of total indebtedness to total capitalization (as defined in the agreement) of no more than 65 percent at the end of each quarter. At September 30, 2013 and December 31, 2012, the California Utilities were in compliance with this and all other financial covenants under the credit facility. | |
Each utility's obligations under the agreement are individual obligations, and a default by one utility would not constitute a default by the other utility or preclude borrowings by, or the issuance of letters of credit on behalf of, the other utility. | |
At September 30, 2013, SDG&E and SoCalGas had no outstanding borrowings supported by the facility. Available unused credit on the line at September 30, 2013 was $658 million at both SDG&E and SoCalGas, subject to the combined limit on the facility of $877 million. | |
GUARANTEES | |
RBS Sempra Commodities | |
As we discuss in Note 4, in 2010 and early 2011, Sempra Energy, RBS and RBS Sempra Commodities sold substantially all of the businesses and assets within the partnership in four separate transactions. In connection with each of these transactions, the buyers were, subject to certain qualifications, obligated to replace any guarantees that we had issued in connection with the applicable businesses sold with guarantees of their own. The buyers have substantially completed this process with regard to all existing, open positions, except for one remaining position expected to terminate by January 2014. For those guarantees which have not been replaced, the buyers are obligated to indemnify us in accordance with the applicable transaction documents for any claims or losses in connection with the guarantees that we issued associated with the businesses sold. We discuss additional matters related to our investment in RBS Sempra Commodities in Note 10. | |
Other Guarantees | |
Sempra Renewables and BP Wind Energy each currently hold 50-percent interests in the Flat Ridge 2 Wind Farm. The project obtained construction financing in December 2012, and proceeds from the loans were used to return $148 million of each owner's joint venture investment in 2012. After completion of the project in March 2013, the construction financing was converted into permanent financing consisting of a term loan and a fixed-rate note. The term loan of $242 million expires in June 2023 and the fixed-rate note of $110 million expires in June 2035. The financing agreement requires Sempra Renewables and BP Wind Energy, severally for each partner's 50-percent interest, to return cash to the project in the event that the project does not meet certain cash flow criteria or in the event that the project's debt service, operation and maintenance and firm transmission and production tax credits reserve accounts are not maintained at specific thresholds. Sempra Renewables recorded a liability of $3 million in the first quarter of 2013 for the fair value of its obligations associated with the cash flow requirements, which constitutes a guarantee. The liability is being amortized over its expected life. The outstanding loans are not guaranteed by the partners. | |
Sempra Renewables and BP Wind Energy each currently hold 50-percent interests in the Mehoopany Wind Farm. The project obtained construction financing in June 2012, and proceeds from the loans were used to return $17 million and $13 million of each owner's joint venture investment in 2012 and 2013, respectively. After completion of the project in May 2013, the construction financing was converted into permanent financing consisting of a term loan. The term loan of $162 million expires in May 2031. The financing agreement requires Sempra Renewables and BP Wind Energy, severally for each partner's 50-percent interest, to return cash to the project in the event that the project does not meet certain cash flow criteria or in the event that the project's debt service, operation and maintenance and production tax credits reserve accounts are not maintained at specific thresholds. Additionally, in conjunction with the term loan conversion, Sempra Renewables and BP Wind Energy have provided guarantees to the lenders in lieu of Mehoopany Wind Farm funding a reserve account requirement. Sempra Renewables recorded liabilities of $11 million in the second quarter of 2013 for the fair value of its obligations associated with the cash flow and reserve account requirements, which constitute guarantees. The liabilities are being amortized over their expected lives. The outstanding loans are not guaranteed by the partners. | |
WEIGHTED AVERAGE INTEREST RATES | |
The weighted average interest rates on the total short-term debt outstanding at Sempra Energy were 1.02 percent and 0.72 percent at September 30, 2013 and December 31, 2012, respectively. The weighted average interest rate at Sempra Energy at December 31, 2012 includes interest rates for commercial paper borrowings classified as long-term, as we discuss above. | |
LONG-TERM DEBT | |
SDG&E | |
In September 2013, SDG&E publicly offered and sold $450 million of 3.60-percent first mortgage bonds maturing in 2023. SDG&E used a portion of the proceeds from this offering to redeem all $60 million of its outstanding 5.85-percent Pollution Control Revenue Bonds (PCRB) due in 2021 and $115 million of its outstanding 5.90-percent PCRBs due in 2014. | |
Sempra Mexico | |
On February 14, 2013, IEnova publicly offered and sold in Mexico $306 million (U.S. dollar equivalent) of 6.3-percent notes maturing in 2023 with a U.S. dollar equivalent rate of 4.12 percent after entering into a cross-currency swap for U.S. dollars at the time of issuance. IEnova also publicly offered and sold in Mexico $102 million (U.S. dollar equivalent) of variable rate notes, maturing in 2018, which after a floating-to-fixed cross-currency swap for U.S. dollars at the time of issuance, carry a U.S. dollar equivalent rate of 2.66 percent. The notes and related interest are denominated in Mexican pesos, and the interest rate for the variable rate notes is based on the 28-day Interbank Equilibrium Interest Rate plus 30 basis points. IEnova used $357 million of the proceeds of the notes for the repayment of intercompany debt, including accrued interest, primarily to other Sempra Energy consolidated foreign entities. | |
Sempra Renewables | |
In May 2013, Copper Mountain Solar 2 entered into a loan agreement with a syndicate of banks to borrow up to $286 million and took a draw of $146 million in May 2013, the proceeds of which were distributed to Sempra Renewables to reimburse it for the first phase of construction costs of the project. The loan, which is secured by the project, is payable semi-annually and fully matures in May 2023. To partially moderate its exposure to interest rate changes, Copper Mountain Solar 2 entered into floating-to-fixed interest rate swaps for 75 percent of the loan amount, resulting in an effective fixed rate of 5.33 percent. The remaining 25 percent bears interest at rates varying with market rates (2.81 percent at September 30, 2013). In connection with the loan agreement, Copper Mountain Solar 2 may also utilize up to $60 million under a letter of credit facility, which may be used to meet project collateral requirements and debt service reserve requirements. | |
In the third quarter of 2013, Sempra Renewables sold 50-percent interests in Copper Mountain Solar 2 and Mesquite Solar 1 to ConEdison Development. Sempra Renewables' interests are now accounted for under the equity method and their long-term debt of $146 million at Copper Mountain 2 and $297 million at Mesquite Solar 1 was deconsolidated upon the sales. We provide further discussion of the sales in Note 3. | |
Sempra South American Utilities | |
In May 2013, Chilquinta Energía retired $86 million of outstanding Series A Chilean public bonds maturing in 2014 with a stated interest rate of 2.75 percent. | |
INTEREST RATE SWAPS | |
We discuss our fair value interest rate swaps and interest rate swaps to hedge cash flows in Note 7. |
DERIVATIVE_FINANCIAL_INSTRUMEN
DERIVATIVE FINANCIAL INSTRUMENTS | 3 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Notes to Consolidated Financial Statements [Abstract] | ' | |||||||||||
Derivative Financial Instruments | ' | |||||||||||
NOTE 7. DERIVATIVE FINANCIAL INSTRUMENTS | ||||||||||||
We use derivative instruments primarily to manage exposures arising in the normal course of business. Our principal exposures are commodity market risk and benchmark interest rate risk. We may also manage foreign exchange rate exposures using derivatives. Our use of derivatives for these risks is integrated into the economic management of our anticipated revenues, anticipated expenses, assets and liabilities. Derivatives may be effective in mitigating these risks (1) that could lead to declines in anticipated revenues or increases in anticipated expenses, or (2) that our asset values may fall or our liabilities increase. Accordingly, our derivative activity summarized below generally represents an impact that is intended to offset associated revenues, expenses, assets or liabilities that are not presented below. | ||||||||||||
We record all derivatives at fair value on the Condensed Consolidated Balance Sheets. We designate each derivative as (1) a cash flow hedge, (2) a fair value hedge, or (3) undesignated. Depending on the applicability of hedge accounting and, for the California Utilities and other operations subject to regulatory accounting, the requirement to pass impacts through to customers, the impact of derivative instruments may be offset in other comprehensive income (cash flow hedge), on the balance sheet (fair value hedges and regulatory offsets), or recognized in earnings. We classify cash flows from the settlements of derivative instruments as operating activities on the Condensed Consolidated Statements of Cash Flows. | ||||||||||||
In certain cases, we apply the normal purchase or sale exception to derivative accounting and have other commodity contracts that are not derivatives. These contracts are not recorded at fair value and are therefore excluded from the disclosures below. | ||||||||||||
HEDGE ACCOUNTING | ||||||||||||
We may designate a derivative as a cash flow hedging instrument if it effectively converts anticipated revenues or expenses to a fixed dollar amount. We may utilize cash flow hedge accounting for derivative commodity instruments, foreign currency instruments and interest rate instruments. Designating cash flow hedges is dependent on the business context in which the instrument is being used, the effectiveness of the instrument in offsetting the risk that a given future revenue or expense item may vary, and other criteria. | ||||||||||||
We may designate an interest rate derivative as a fair value hedging instrument if it effectively converts our own debt from a fixed interest rate to a variable rate. The combination of the derivative and debt instruments results in fixing that portion of the fair value of the debt that is related to benchmark interest rates. Designating fair value hedges is dependent on the instrument being used, the effectiveness of the instrument in offsetting changes in the fair value of our debt instruments, and other criteria. | ||||||||||||
ENERGY DERIVATIVES | ||||||||||||
Our market risk is primarily related to natural gas and electricity price volatility and the specific physical locations where we transact. We use energy derivatives to manage these risks. The use of energy derivatives in our various businesses depends on the particular energy market, and the operating and regulatory environments applicable to the business. | ||||||||||||
The California Utilities use natural gas energy derivatives, on their customers' behalf, with the objective of managing price risk and basis risks, and lowering natural gas costs. These derivatives include fixed price natural gas positions, options, and basis risk instruments, which are either exchange-traded or over-the-counter financial instruments. This activity is governed by risk management and transacting activity plans that have been filed with and approved by the CPUC. Natural gas 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 congestion revenue rights (CRRs), which serve to reduce the regional electricity price volatility risk that may result from local transmission capacity constraints. Unrealized gains and losses do not impact earnings, as they are offset by regulatory account balances. Realized gains and losses associated with CRRs are recorded in Cost of Electric Fuel and Purchased Power, which is recoverable in rates, on the Condensed Consolidated Statements of Operations. | ||||||||||||
Sempra Mexico and Sempra Natural Gas may use natural gas and electricity derivatives, as appropriate, to optimize the earnings of their assets which support the following businesses: liquefied natural gas (LNG), natural gas transportation, power generation, and Sempra Natural Gas' storage. Gains and losses associated with undesignated derivatives are recognized in Energy-Related Businesses Revenues or in Cost of Natural Gas, Electric Fuel and Purchased Power on the Condensed Consolidated Statements of Operations. Certain of these derivatives may also be designated as cash flow hedges. Sempra Mexico also uses natural gas energy derivatives with the objective of managing price risk and lowering natural gas prices at its Mexican distribution operations. These derivatives, which are recorded as commodity costs that are offset by regulatory account balances and recovered in rates, are recognized in Cost of Natural Gas on the Condensed Consolidated Statements of Operations. | ||||||||||||
From time to time, our various businesses, including the California Utilities, may use other energy derivatives to hedge exposures such as the price of vehicle fuel. | ||||||||||||
We summarize net energy derivative volumes as of September 30, 2013 and December 31, 2012 as follows: | ||||||||||||
NET ENERGY DERIVATIVE VOLUMES | ||||||||||||
Segment and Commodity | 30-Sep-13 | 31-Dec-12 | ||||||||||
California Utilities: | ||||||||||||
SDG&E: | ||||||||||||
Natural gas | 34 million MMBtu | 25 million MMBtu | -1 | |||||||||
Congestion revenue rights | 27 million MWh | 30 million MWh | -2 | |||||||||
Energy-Related Businesses: | ||||||||||||
Sempra Natural Gas: | ||||||||||||
Electric power | 2 million MWh | 1 million MWh | ||||||||||
Natural gas | 46 million MMBtu | 36 million MMBtu | ||||||||||
Sempra Mexico - natural gas | ― | 1 million MMBtu | ||||||||||
-1 | Million British thermal units | |||||||||||
-2 | Megawatt hours | |||||||||||
In addition to the amounts noted above, we frequently use commodity derivatives to manage risks associated with the physical locations of our assets and other contractual obligations, such as natural gas and electric power purchases and sales. | ||||||||||||
INTEREST RATE DERIVATIVES | ||||||||||||
We are exposed to interest rates primarily as a result of our current and expected use of financing. We periodically enter into interest rate derivative agreements intended to moderate our exposure to interest rates and to lower our overall costs of borrowing. We utilize interest rate swaps typically designated as fair value hedges, as a means to achieve our targeted level of variable rate debt as a percent of total debt. In addition, we may utilize interest rate swaps, which are typically designated as cash flow hedges, to lock in interest rates on outstanding debt or in anticipation of future financings. | ||||||||||||
Interest rate derivatives are utilized by the California Utilities as well as by other Sempra Energy subsidiaries. Although the California Utilities generally recover borrowing costs in rates over time, the use of interest rate derivatives is subject to certain regulatory constraints, and the impact of interest rate derivatives may not be recovered from customers as timely as described above with regard to natural gas derivatives. Accordingly, interest rate derivatives are generally accounted for as hedges at the California Utilities, as well as at the rest of Sempra Energy's subsidiaries. Separately, Otay Mesa VIE has entered into interest rate swap agreements to moderate its exposure to interest rate changes. This activity was designated as a cash flow hedge as of April 1, 2011. | ||||||||||||
The net notional amounts of our interest rate derivatives, excluding the cross-currency swaps discussed below, as of September 30, 2013 and December 31, 2012 were: | ||||||||||||
INTEREST RATE DERIVATIVES | ||||||||||||
(Dollars in millions) | ||||||||||||
30-Sep-13 | 31-Dec-12 | |||||||||||
Notional Debt | Maturities | Notional Debt | Maturities | |||||||||
Sempra Energy Consolidated: | ||||||||||||
Cash flow hedges(1) | $ | 419 | 2013-2028 | $ | 439 | 2013-2028 | ||||||
Fair value hedges | 500 | 2013-2016 | 500 | 2013-2016 | ||||||||
SDG&E: | ||||||||||||
Cash flow hedge(1) | 337 | 2019 | 345 | 2019 | ||||||||
-1 | Includes Otay Mesa VIE. All of SDG&E’s interest rate derivatives relate to Otay Mesa VIE. | |||||||||||
FOREIGN CURRENCY DERIVATIVES | ||||||||||||
We are exposed to exchange rate movements at our Mexican subsidiaries, which have U.S. dollar denominated cash balances, receivables and payables (monetary assets and liabilities) that give rise to Mexican currency exchange rate movements for Mexican income tax purposes. These subsidiaries also have deferred income tax assets and liabilities that are denominated in the Mexican peso, which must be translated into U.S. dollars for financial reporting purposes. From time to time, we may utilize short-term foreign currency derivatives at our subsidiaries and at the consolidated level as a means to manage the risk of exposure to significant fluctuations in our income tax expense from these impacts. We may also utilize cross-currency swaps to hedge exposure related to Mexican peso-denominated debt at our Mexican subsidiaries. On February 14, 2013, Sempra Mexico entered into cross-currency swap agreements, which were designated as cash flow hedges. We discuss the notional amount of the cross-currency swaps in Note 6. | ||||||||||||
In addition, Sempra South American Utilities may utilize foreign currency derivatives at its subsidiaries and joint ventures as a means to manage foreign currency rate risk. We discuss such swaps at Chilquinta Energía's Eletrans joint venture investment in Note 4. | ||||||||||||
FINANCIAL STATEMENT PRESENTATION | ||||||||||||
Each Condensed Consolidated Balance Sheet reflects the offsetting of net derivative positions and cash collateral with the same counterparty when management believes a legal right of offset exists. The following tables provide the fair values of derivative instruments on the Condensed Consolidated Balance Sheets as of September 30, 2013 and December 31, 2012, including the amount of cash collateral receivables that were not offset, as the cash collateral is in excess of liability positions. | ||||||||||||
DERIVATIVE INSTRUMENTS ON THE CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||||||
(Dollars in millions) | ||||||||||||
30-Sep-13 | ||||||||||||
Deferred | ||||||||||||
credits | ||||||||||||
Current | Current | and other | ||||||||||
assets: | liabilities: | liabilities: | ||||||||||
Fixed-price | Investments | Fixed-price | Fixed-price | |||||||||
contracts | and other | contracts | contracts | |||||||||
and other | assets: | and other | and other | |||||||||
derivatives(1) | Sundry | derivatives(2) | derivatives | |||||||||
Sempra Energy Consolidated: | ||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||
Interest rate and foreign exchange instruments(3) | $ | 15 | $ | 13 | $ | -19 | $ | -77 | ||||
Commodity contracts not subject to rate recovery | 5 | ― | ― | ― | ||||||||
Derivatives not designated as hedging instruments: | ||||||||||||
Interest rate and foreign exchange instruments | 9 | 26 | -7 | -21 | ||||||||
Commodity contracts not subject to rate recovery: | 67 | 11 | -70 | -10 | ||||||||
Associated offsetting commodity contracts | -55 | -8 | 55 | 8 | ||||||||
Associated offsetting cash collateral | ― | ― | 6 | 1 | ||||||||
Commodity contracts subject to rate recovery: | 6 | 49 | -23 | -8 | ||||||||
Associated offsetting commodity contracts | -2 | -1 | 2 | 1 | ||||||||
Associated offsetting cash collateral | ― | ― | 12 | 1 | ||||||||
Net amounts presented on the balance sheet | 45 | 90 | -44 | -105 | ||||||||
Additional margin posted for commodity contracts | ||||||||||||
not subject to rate recovery | 14 | ― | ― | ― | ||||||||
Additional margin posted for commodity contracts | ||||||||||||
subject to rate recovery | 17 | ― | ― | ― | ||||||||
Total | $ | 76 | $ | 90 | $ | -44 | $ | -105 | ||||
SDG&E: | ||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||
Interest rate instruments(3) | $ | ― | $ | ― | $ | -16 | $ | -43 | ||||
Derivatives not designated as hedging instruments: | ||||||||||||
Commodity contracts subject to rate recovery: | 5 | 49 | -22 | -8 | ||||||||
Associated offsetting commodity contracts | -1 | -1 | 1 | 1 | ||||||||
Associated offsetting cash collateral | ― | ― | 12 | 1 | ||||||||
Net amounts presented on the balance sheet | 4 | 48 | -25 | -49 | ||||||||
Additional margin posted for commodity contracts | ||||||||||||
not subject to rate recovery(4) | 2 | ― | ― | ― | ||||||||
Additional margin posted for commodity contracts | ||||||||||||
subject to rate recovery | 15 | ― | ― | ― | ||||||||
Total | $ | 21 | $ | 48 | $ | -25 | $ | -49 | ||||
SoCalGas: | ||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||
Commodity contracts subject to rate recovery: | $ | 1 | $ | ― | $ | -1 | $ | ― | ||||
Associated offsetting commodity contracts | -1 | ― | 1 | ― | ||||||||
Net amounts presented on the balance sheet | ― | ― | ― | ― | ||||||||
Additional margin posted for commodity contracts | ||||||||||||
not subject to rate recovery(4) | 3 | ― | ― | ― | ||||||||
Additional margin posted for commodity contracts | ||||||||||||
subject to rate recovery | 2 | ― | ― | ― | ||||||||
Total | $ | 5 | $ | ― | $ | ― | $ | ― | ||||
-1 | Included in Current Assets: Other for SoCalGas. | |||||||||||
-2 | Included in Current Liabilities: Other for SoCalGas. | |||||||||||
-3 | Includes Otay Mesa VIE. All of SDG&E’s amounts relate to Otay Mesa VIE. | |||||||||||
-4 | Includes cash collateral not offset related to a negligible amount of commodity contracts not subject to rate recovery. | |||||||||||
DERIVATIVE INSTRUMENTS ON THE CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||||||
(Dollars in millions) | ||||||||||||
31-Dec-12 | ||||||||||||
Deferred | ||||||||||||
credits | ||||||||||||
Current | Current | and other | ||||||||||
assets: | liabilities: | liabilities: | ||||||||||
Fixed-price | Investments | Fixed-price | Fixed-price | |||||||||
contracts | and other | contracts | contracts | |||||||||
and other | assets: | and other | and other | |||||||||
derivatives(1) | Sundry | derivatives(2) | derivatives | |||||||||
Sempra Energy Consolidated: | ||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||
Interest rate instruments(3) | $ | 7 | $ | 12 | $ | -19 | $ | -64 | ||||
Commodity contracts not subject to rate recovery | 1 | ― | ― | ― | ||||||||
Derivatives not designated as hedging instruments: | ||||||||||||
Interest rate instruments | 8 | 40 | -8 | -35 | ||||||||
Commodity contracts not subject to rate recovery: | 117 | 15 | -116 | -27 | ||||||||
Associated offsetting commodity contracts | -102 | -12 | 102 | 12 | ||||||||
Associated offsetting cash collateral | ― | ― | 4 | 7 | ||||||||
Commodity contracts subject to rate recovery: | 30 | 35 | -35 | -1 | ||||||||
Associated offsetting commodity contracts | -4 | ― | 4 | ― | ||||||||
Associated offsetting cash collateral | ― | ― | 22 | 1 | ||||||||
Net amounts presented on the balance sheet | 57 | 90 | -46 | -107 | ||||||||
Additional margin posted for commodity contracts | ||||||||||||
not subject to rate recovery | 22 | ― | ― | ― | ||||||||
Additional margin posted for commodity contracts | ||||||||||||
subject to rate recovery | 13 | ― | ― | ― | ||||||||
Total | $ | 92 | $ | 90 | $ | -46 | $ | -107 | ||||
SDG&E: | ||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||
Interest rate instruments(3) | $ | ― | $ | ― | $ | -17 | $ | -64 | ||||
Derivatives not designated as hedging instruments: | ||||||||||||
Commodity contracts subject to rate recovery: | 28 | 35 | -33 | -1 | ||||||||
Associated offsetting commodity contracts | -3 | ― | 3 | ― | ||||||||
Associated offsetting cash collateral | ― | ― | 22 | 1 | ||||||||
Net amounts presented on the balance sheet | 25 | 35 | -25 | -64 | ||||||||
Additional margin posted for commodity contracts | ||||||||||||
not subject to rate recovery(4) | 1 | ― | ― | ― | ||||||||
Additional margin posted for commodity contracts | ||||||||||||
subject to rate recovery | 12 | ― | ― | ― | ||||||||
Total | $ | 38 | $ | 35 | $ | -25 | $ | -64 | ||||
SoCalGas: | ||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||
Commodity contracts subject to rate recovery: | $ | 2 | $ | ― | $ | -2 | $ | ― | ||||
Associated offsetting commodity contracts | -1 | ― | 1 | ― | ||||||||
Net amounts presented on the balance sheet | 1 | ― | -1 | ― | ||||||||
Additional margin posted for commodity contracts | ||||||||||||
not subject to rate recovery(4) | 2 | ― | ― | ― | ||||||||
Additional margin posted for commodity contracts | ||||||||||||
subject to rate recovery | 1 | ― | ― | ― | ||||||||
Total | $ | 4 | $ | ― | $ | -1 | $ | ― | ||||
-1 | Included in Current Assets: Other for SoCalGas. | |||||||||||
-2 | Included in Current Liabilities: Other for SoCalGas. | |||||||||||
-3 | Includes Otay Mesa VIE. All of SDG&E’s amounts relate to Otay Mesa VIE. | |||||||||||
-4 | Includes cash collateral not offset related to a negligible amount of commodity contracts not subject to rate recovery. | |||||||||||
The effects of derivative instruments designated as hedges on the Condensed Consolidated Statements of Operations and on Other Comprehensive Income (OCI) and Accumulated Other Comprehensive Income (AOCI) for the three months and nine months ended September 30 were: | ||||||||||||
FAIR VALUE HEDGE IMPACT ON THE CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||
(Dollars in millions) | ||||||||||||
Gain on derivatives recognized in earnings | Gain (loss) on derivatives recognized in earnings | |||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||
Location | 2013 | 2012 | 2013 | 2012 | ||||||||
Sempra Energy Consolidated: | ||||||||||||
Interest rate instruments | Interest Expense | $ | 2 | $ | 1 | $ | 6 | $ | 5 | |||
Interest rate instruments | Other Income, Net | 1 | 4 | -4 | 6 | |||||||
Total(1) | $ | 3 | $ | 5 | $ | 2 | $ | 11 | ||||
-1 | There has been no hedge ineffectiveness on these swaps. Changes in the fair values of the interest rate swap agreements are exactly offset by changes in the fair value of the underlying long-term debt. | |||||||||||
CASH FLOW HEDGE IMPACT ON THE CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||
(Dollars in millions) | ||||||||||||
Pretax gain (loss) recognized | Gain (loss) reclassified from AOCI | |||||||||||
in OCI (effective portion) | into earnings (effective portion) | |||||||||||
Three months ended September 30, | Three months ended September 30, | |||||||||||
2013 | 2012 | Location | 2013 | 2012 | ||||||||
Sempra Energy Consolidated: | ||||||||||||
Interest rate and foreign | ||||||||||||
exchange instruments(1) | $ | -8 | $ | -6 | Interest Expense | $ | -3 | $ | -3 | |||
Equity Earnings (Losses), | ||||||||||||
Interest rate instruments | -3 | -6 | Before Income Tax | -3 | -4 | |||||||
Commodity contracts not subject | Cost of Natural Gas, Electric | |||||||||||
to rate recovery | 1 | -3 | Fuel and Purchased Power | ― | ― | |||||||
Total | $ | -10 | $ | -15 | $ | -6 | $ | -7 | ||||
SDG&E: | ||||||||||||
Interest rate instruments(1) | $ | -3 | $ | -6 | Interest Expense | $ | -2 | $ | -2 | |||
SoCalGas: | ||||||||||||
Interest rate instruments | $ | ― | $ | ― | Interest Expense | $ | ― | $ | -1 | |||
Nine months ended September 30, | Nine months ended September 30, | |||||||||||
2013 | 2012 | Location | 2013 | 2012 | ||||||||
Sempra Energy Consolidated: | ||||||||||||
Interest rate and foreign | ||||||||||||
exchange instruments(1) | $ | -3 | $ | -21 | Interest Expense | $ | -9 | $ | -5 | |||
Equity Earnings (Losses), | ||||||||||||
Interest rate instruments | 11 | -12 | Before Income Tax | -7 | -4 | |||||||
Commodity contracts not subject | Cost of Natural Gas, Electric | |||||||||||
to rate recovery | 5 | -3 | Fuel and Purchased Power | 5 | ― | |||||||
Total | $ | 13 | $ | -36 | $ | -11 | $ | -9 | ||||
SDG&E: | ||||||||||||
Interest rate instruments(1) | $ | 8 | $ | -16 | Interest Expense | $ | -6 | $ | -3 | |||
SoCalGas: | ||||||||||||
Interest rate instruments | $ | ― | $ | ― | Interest Expense | $ | -1 | $ | -2 | |||
-1 | Amounts include Otay Mesa VIE. All of SDG&E’s interest rate derivative activity relates to Otay Mesa VIE; there has been a negligible amount of ineffectiveness related to these swaps. | |||||||||||
Sempra Energy Consolidated expects that losses of $22 million, which are net of income tax benefit, that are currently recorded in AOCI (including losses of $11 million in noncontrolling interests) related to cash flow hedges will be reclassified into earnings during the next twelve months as the hedged items affect earnings. Actual amounts ultimately reclassified into earnings depend on the interest rates and certain commodity prices in effect when derivative contracts that are currently outstanding mature. The Sempra Energy Consolidated amount includes losses of $10 million at SDG&E in noncontrolling interest related to Otay Mesa VIE. | ||||||||||||
SoCalGas expects that losses of $1 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 twelve months as the hedged items affect earnings. | ||||||||||||
For all forecasted transactions, the maximum term over which we are hedging exposure to the variability of cash flows at September 30, 2013 is approximately 15 years and 6 years for Sempra Energy and SDG&E, respectively. The maximum term of hedged interest rate variability related to debt at Sempra Renewables' equity method investees is 22 years. | ||||||||||||
We recorded negligible hedge ineffectiveness in the three-month period ended September 30, 2013 and $1 million of hedge ineffectiveness in the nine-month period ended September 30, 2013 and $1 million of hedge ineffectiveness in both the three-month and nine-month periods ended September 30, 2012. | ||||||||||||
The effects of derivative instruments not designated as hedging instruments on the Condensed Consolidated Statements of Operations for the three months and nine months ended September 30 were: | ||||||||||||
UNDESIGNATED DERIVATIVE IMPACT ON THE CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||
(Dollars in millions) | ||||||||||||
Gain (loss) on derivatives recognized in earnings | ||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||
Location | 2013 | 2012 | 2013 | 2012 | ||||||||
Sempra Energy Consolidated: | ||||||||||||
Interest rate and foreign exchange | ||||||||||||
instruments | Other Income, Net | $ | 4 | $ | 1 | $ | 17 | $ | 11 | |||
Foreign exchange instruments | Equity Earnings, | |||||||||||
Net of Income Tax | ― | ― | -3 | ― | ||||||||
Commodity contracts not subject | Revenues: Energy-Related | |||||||||||
to rate recovery | Businesses | 1 | -5 | 2 | -3 | |||||||
Commodity contracts not subject | ||||||||||||
to rate recovery | Operation and Maintenance | ― | 1 | ― | 1 | |||||||
Commodity contracts subject | Cost of Electric Fuel | |||||||||||
to rate recovery | and Purchased Power | ― | 41 | -9 | 32 | |||||||
Commodity contracts subject | ||||||||||||
to rate recovery | Cost of Natural Gas | 1 | ― | ― | -1 | |||||||
Total | $ | 6 | $ | 38 | $ | 7 | $ | 40 | ||||
SDG&E: | ||||||||||||
Commodity contracts subject | Cost of Electric Fuel | |||||||||||
to rate recovery | and Purchased Power | $ | ― | $ | 41 | $ | -9 | $ | 32 | |||
SoCalGas: | ||||||||||||
Commodity contracts not subject | ||||||||||||
to rate recovery | Operation and Maintenance | $ | ― | $ | 1 | $ | ― | $ | 1 | |||
Commodity contracts subject | ||||||||||||
to rate recovery | Cost of Natural Gas | 1 | ― | ― | -1 | |||||||
Total | $ | 1 | $ | 1 | $ | ― | $ | ― | ||||
CONTINGENT FEATURES | ||||||||||||
For Sempra Energy and SDG&E, certain of our derivative instruments contain credit limits which vary depending upon 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, the total fair value of this group of derivative instruments in a net liability position at September 30, 2013 and December 31, 2012 is $3 million and $8 million, respectively. As of September 30, 2013, if the credit ratings of Sempra Energy were reduced below investment grade, $3 million of additional assets could be required to be posted as collateral for these derivative contracts. | ||||||||||||
For SDG&E, the total fair value of this group of derivative instruments in a net liability position at September 30, 2013 and December 31, 2012 is $2 million and $6 million, respectively. As of September 30, 2013, if the credit ratings of SDG&E were reduced below investment grade, $2 million of additional assets could be required to be posted as collateral for these derivative contracts. | ||||||||||||
For Sempra Energy, SDG&E and SoCalGas, some of our derivative contracts contain a provision that would permit the counterparty, in certain circumstances, to request adequate assurance of our performance under the contracts. Such additional assurance, if needed, is not material and is not included in the amounts above. | ||||||||||||
FAIR_VALUE_MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Notes to Consolidated Financial Statements [Abstract] | ' | ||||||||||||
Fair Value Measurements | ' | ||||||||||||
NOTE 8. FAIR VALUE MEASUREMENTS | |||||||||||||
We discuss the valuation techniques and inputs we use to measure fair value and the definition of the three levels of the fair value hierarchy in Note 1 of the Notes to Consolidated Financial Statements in the Annual Report. We have not changed the valuation techniques or inputs we use to measure fair value during the nine months ended September 30, 2013. | |||||||||||||
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 as of September 30, 2013 and December 31, 2012. We classify financial assets and liabilities in their entirety based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement requires judgment, and may affect the valuation of fair value assets and liabilities, and their placement within the fair value hierarchy levels. | |||||||||||||
The fair value of commodity derivative assets and liabilities is presented in accordance with our netting policy, as we discuss in Note 7 under “Financial Statement Presentation.” | |||||||||||||
The determination of fair values, shown in the tables below, incorporates various factors, including but not limited to, the credit standing of the counterparties involved and the impact of credit enhancements (such as cash deposits, letters of credit and priority interests). | |||||||||||||
Our financial assets and liabilities that were accounted for at fair value on a recurring basis as of September 30, 2013 and December 31, 2012 in the tables below include the following: | |||||||||||||
Nuclear decommissioning trusts reflect the assets of SDG&E's nuclear decommissioning trusts, excluding cash balances. A third party trustee values the trust assets using prices from a pricing service based on a market approach. We validate these prices by comparison to prices from other independent data sources. Equity and certain debt securities are valued using quoted prices listed on nationally recognized securities exchanges or based on closing prices reported in the active market in which the identical security is traded (Level 1). Other debt securities are valued based on yields that are currently available for comparable securities of issuers with similar credit ratings (Level 2). | |||||||||||||
We enter into commodity contracts and interest rate derivatives primarily as a means to manage price exposures. We primarily use a market approach with market participant assumptions to value these derivatives. Market participant assumptions include those about risk, and the risk inherent in the inputs to the valuation techniques. These inputs can be readily observable, market corroborated, or generally unobservable. We have exchange-traded derivatives that are valued based on quoted prices in active markets for the identical instruments (Level 1). We also may have other commodity derivatives that are valued using industry standard models that consider quoted forward prices for commodities, time value, current market and contractual prices for the underlying instruments, volatility factors, and other relevant economic measures (Level 2). All Level 3 recurring items are related to CRRs at SDG&E, as we discuss below under “Level 3 Information.” We record commodity derivative contracts that are subject to rate recovery as commodity costs that are offset by regulatory account balances and are recovered in rates. | |||||||||||||
Investments include marketable securities that we value using a market approach based on closing prices reported in the active market in which the identical security is traded (Level 1). | |||||||||||||
There were no transfers into or out of Level 1, Level 2 or Level 3 for Sempra Energy Consolidated, SDG&E or SoCalGas during the periods presented, nor any changes in valuation techniques used in recurring fair value measurements. | |||||||||||||
RECURRING FAIR VALUE MEASURES – SEMPRA ENERGY CONSOLIDATED | |||||||||||||
(Dollars in millions) | |||||||||||||
At fair value as of September 30, 2013 | |||||||||||||
Collateral | |||||||||||||
Level 1 | Level 2 | Level 3 | netted | Total | |||||||||
Assets: | |||||||||||||
Nuclear decommissioning trusts: | |||||||||||||
Equity securities | $ | 599 | $ | ― | $ | ― | $ | ― | $ | 599 | |||
Debt securities: | |||||||||||||
Debt securities issued by the U.S. Treasury and other | |||||||||||||
U.S. government corporations and agencies | 77 | 56 | ― | ― | 133 | ||||||||
Municipal bonds | ― | 104 | ― | ― | 104 | ||||||||
Other securities | ― | 134 | ― | ― | 134 | ||||||||
Total debt securities | 77 | 294 | ― | ― | 371 | ||||||||
Total nuclear decommissioning trusts(1) | 676 | 294 | ― | ― | 970 | ||||||||
Interest rate instruments | ― | 63 | ― | ― | 63 | ||||||||
Commodity contracts subject to rate recovery | 12 | ― | 57 | ― | 69 | ||||||||
Commodity contracts not subject to rate recovery | 22 | 12 | ― | ― | 34 | ||||||||
Total | $ | 710 | $ | 369 | $ | 57 | $ | ― | $ | 1,136 | |||
Liabilities: | |||||||||||||
Interest rate and foreign exchange instruments | $ | ― | $ | 124 | $ | ― | $ | ― | $ | 124 | |||
Commodity contracts subject to rate recovery | 13 | 15 | ― | -13 | 15 | ||||||||
Commodity contracts not subject to rate recovery | 2 | 15 | ― | -7 | 10 | ||||||||
Total | $ | 15 | $ | 154 | $ | ― | $ | -20 | $ | 149 | |||
At fair value as of December 31, 2012 | |||||||||||||
Collateral | |||||||||||||
Level 1 | Level 2 | Level 3 | netted | Total | |||||||||
Assets: | |||||||||||||
Nuclear decommissioning trusts: | |||||||||||||
Equity securities | $ | 539 | $ | ― | $ | ― | $ | ― | $ | 539 | |||
Debt securities: | |||||||||||||
Debt securities issued by the U.S. Treasury and other | |||||||||||||
U.S. government corporations and agencies | 87 | 69 | ― | ― | 156 | ||||||||
Municipal bonds | ― | 63 | ― | ― | 63 | ||||||||
Other securities | ― | 130 | ― | ― | 130 | ||||||||
Total debt securities | 87 | 262 | ― | ― | 349 | ||||||||
Total nuclear decommissioning trusts(1) | 626 | 262 | ― | ― | 888 | ||||||||
Interest rate instruments | ― | 68 | ― | ― | 68 | ||||||||
Commodity contracts subject to rate recovery | 13 | ― | 61 | ― | 74 | ||||||||
Commodity contracts not subject to rate recovery | 28 | 15 | ― | ― | 43 | ||||||||
Investments | 1 | ― | ― | ― | 1 | ||||||||
Total | $ | 668 | $ | 345 | $ | 61 | $ | ― | $ | 1,074 | |||
Liabilities: | |||||||||||||
Interest rate instruments | $ | ― | $ | 126 | $ | ― | $ | ― | $ | 126 | |||
Commodity contracts subject to rate recovery | 23 | 9 | ― | -23 | 9 | ||||||||
Commodity contracts not subject to rate recovery | 6 | 23 | ― | -11 | 18 | ||||||||
Total | $ | 29 | $ | 158 | $ | ― | $ | -34 | $ | 153 | |||
-1 | Excludes cash balances and cash equivalents. | ||||||||||||
RECURRING FAIR VALUE MEASURES – SDG&E | |||||||||||||
(Dollars in millions) | |||||||||||||
At fair value as of September 30, 2013 | |||||||||||||
Collateral | |||||||||||||
Level 1 | Level 2 | Level 3 | netted | Total | |||||||||
Assets: | |||||||||||||
Nuclear decommissioning trusts: | |||||||||||||
Equity securities | $ | 599 | $ | ― | $ | ― | $ | ― | $ | 599 | |||
Debt securities: | |||||||||||||
Debt securities issued by the U.S. Treasury and other | |||||||||||||
U.S. government corporations and agencies | 77 | 56 | ― | ― | 133 | ||||||||
Municipal bonds | ― | 104 | ― | ― | 104 | ||||||||
Other securities | ― | 134 | ― | ― | 134 | ||||||||
Total debt securities | 77 | 294 | ― | ― | 371 | ||||||||
Total nuclear decommissioning trusts(1) | 676 | 294 | ― | ― | 970 | ||||||||
Commodity contracts subject to rate recovery | 10 | ― | 57 | ― | 67 | ||||||||
Commodity contracts not subject to rate recovery | 2 | ― | ― | ― | 2 | ||||||||
Total | $ | 688 | $ | 294 | $ | 57 | $ | ― | $ | 1,039 | |||
Liabilities: | |||||||||||||
Interest rate instruments | $ | ― | $ | 59 | $ | ― | $ | ― | $ | 59 | |||
Commodity contracts subject to rate recovery | 13 | 15 | ― | -13 | 15 | ||||||||
Total | $ | 13 | $ | 74 | $ | ― | $ | -13 | $ | 74 | |||
At fair value as of December 31, 2012 | |||||||||||||
Collateral | |||||||||||||
Level 1 | Level 2 | Level 3 | netted | Total | |||||||||
Assets: | |||||||||||||
Nuclear decommissioning trusts: | |||||||||||||
Equity securities | $ | 539 | $ | ― | $ | ― | $ | ― | $ | 539 | |||
Debt securities: | |||||||||||||
Debt securities issued by the U.S. Treasury and other | |||||||||||||
U.S. government corporations and agencies | 87 | 69 | ― | ― | 156 | ||||||||
Municipal bonds | ― | 63 | ― | ― | 63 | ||||||||
Other securities | ― | 130 | ― | ― | 130 | ||||||||
Total debt securities | 87 | 262 | ― | ― | 349 | ||||||||
Total nuclear decommissioning trusts(1) | 626 | 262 | ― | ― | 888 | ||||||||
Commodity contracts subject to rate recovery | 12 | ― | 61 | ― | 73 | ||||||||
Commodity contracts not subject to rate recovery | 1 | ― | ― | ― | 1 | ||||||||
Total | $ | 639 | $ | 262 | $ | 61 | $ | ― | $ | 962 | |||
Liabilities: | |||||||||||||
Interest rate instruments | $ | ― | $ | 81 | $ | ― | $ | ― | $ | 81 | |||
Commodity contracts subject to rate recovery | 23 | 8 | ― | -23 | 8 | ||||||||
Total | $ | 23 | $ | 89 | $ | ― | $ | -23 | $ | 89 | |||
-1 | Excludes cash balances and cash equivalents. | ||||||||||||
RECURRING FAIR VALUE MEASURES – SOCALGAS | |||||||||||||
(Dollars in millions) | |||||||||||||
At fair value as of September 30, 2013 | |||||||||||||
Collateral | |||||||||||||
Level 1 | Level 2 | Level 3 | netted | Total | |||||||||
Assets: | |||||||||||||
Commodity contracts subject to rate recovery | $ | 2 | $ | ― | $ | ― | $ | ― | $ | 2 | |||
Commodity contracts not subject to rate recovery | 3 | ― | ― | ― | 3 | ||||||||
Total | $ | 5 | $ | ― | $ | ― | $ | ― | $ | 5 | |||
At fair value as of December 31, 2012 | |||||||||||||
Collateral | |||||||||||||
Level 1 | Level 2 | Level 3 | netted | Total | |||||||||
Assets: | |||||||||||||
Commodity contracts subject to rate recovery | $ | 1 | $ | ― | $ | ― | $ | ― | $ | 1 | |||
Commodity contracts not subject to rate recovery | 3 | ― | ― | ― | 3 | ||||||||
Total | $ | 4 | $ | ― | $ | ― | $ | ― | $ | 4 | |||
Liabilities: | |||||||||||||
Commodity contracts subject to rate recovery | $ | ― | $ | 1 | $ | ― | $ | ― | $ | 1 | |||
Total | $ | ― | $ | 1 | $ | ― | $ | ― | $ | 1 | |||
Level 3 Information | |||||||||||||
The following table sets forth reconciliations of changes in the fair value of congestion revenue rights (CRRs) classified as Level 3 in the fair value hierarchy for Sempra Energy Consolidated and SDG&E: | |||||||||||||
LEVEL 3 RECONCILIATIONS | |||||||||||||
(Dollars in millions) | |||||||||||||
Three months ended September 30, | |||||||||||||
2013 | 2012 | ||||||||||||
Balance at July 1 | $ | 47 | $ | 13 | |||||||||
Realized and unrealized gains | 1 | 16 | |||||||||||
Allocated transmission instruments | 15 | 17 | |||||||||||
Settlements | -6 | -23 | |||||||||||
Balance at September 30 | $ | 57 | $ | 23 | |||||||||
Change in unrealized gains or losses relating to | |||||||||||||
instruments still held at September 30 | $ | 2 | $ | ― | |||||||||
LEVEL 3 RECONCILIATIONS | |||||||||||||
(Dollars in millions) | |||||||||||||
Nine months ended September 30, | |||||||||||||
2013 | 2012 | ||||||||||||
Balance at January 1 | $ | 61 | $ | 23 | |||||||||
Realized and unrealized (losses) gains | -2 | 23 | |||||||||||
Allocated transmission instruments | 15 | 18 | |||||||||||
Settlements | -17 | -41 | |||||||||||
Balance at September 30 | $ | 57 | $ | 23 | |||||||||
Change in unrealized gains or losses relating to | |||||||||||||
instruments still held at September 30 | $ | 1 | $ | ― | |||||||||
SDG&E's Energy and Fuel Procurement department, in conjunction with SDG&E's finance group, is responsible for determining the appropriate fair value methodologies used to value and classify CRRs on an ongoing basis. Inputs used to determine the fair value of CRRs are reviewed and compared with market conditions to determine reasonableness. All costs related to CRRs are expected 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 Independent System Operator (ISO), an objective source. The impact associated with discounting is negligible. Because auction prices are a less observable input, these instruments are classified as Level 3. As of September 30, 2013 the auction prices range from $(8) per MWh to $8 per MWh at a given location, and the fair value of these instruments is derived from auction price differences between two locations. As of September 30, 2012 the auction prices ranged from $(3) per MWh to $5 per MWh. 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 7. Realized gains and losses associated with CRRs are recorded in Cost of Electric Fuel and Purchased Power, which is recoverable in rates, on the Condensed Consolidated Statements of Operations. Unrealized gains and losses are recorded as regulatory assets and liabilities and therefore also do not affect earnings. | |||||||||||||
Fair Value of Financial Instruments | |||||||||||||
The fair values of certain of our financial instruments (cash, temporary investments, accounts and notes receivable, dividends and accounts payable, short-term debt and customer deposits) approximate their carrying amounts. Investments in life insurance contracts that we hold in support of our Supplemental Executive Retirement, Cash Balance Restoration and Deferred Compensation Plans are carried at 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 at September 30, 2013 and December 31, 2012: | |||||||||||||
FAIR VALUE OF FINANCIAL INSTRUMENTS | |||||||||||||
(Dollars in millions) | |||||||||||||
30-Sep-13 | |||||||||||||
Carrying | Fair Value | ||||||||||||
Amount | Level 1 | Level 2 | Level 3 | Total | |||||||||
Sempra Energy Consolidated: | |||||||||||||
Total long-term debt(1) | $ | 11,750 | $ | ― | $ | 11,818 | $ | 745 | $ | 12,563 | |||
Preferred stock of subsidiary | 20 | ― | 21 | ― | 21 | ||||||||
SDG&E: | |||||||||||||
Total long-term debt(2) | $ | 4,402 | $ | ― | $ | 4,325 | $ | 337 | $ | 4,662 | |||
SoCalGas: | |||||||||||||
Total long-term debt(3) | $ | 1,413 | $ | ― | $ | 1,504 | $ | ― | $ | 1,504 | |||
Preferred stock | 22 | ― | 23 | ― | 23 | ||||||||
31-Dec-12 | |||||||||||||
Carrying | Fair Value | ||||||||||||
Amount | Level 1 | Level 2 | Level 3 | Total | |||||||||
Sempra Energy Consolidated: | |||||||||||||
Investments in affordable housing partnerships(4) | $ | 12 | $ | ― | $ | ― | $ | 36 | $ | 36 | |||
Total long-term debt(1) | 11,873 | ― | 12,287 | 956 | 13,243 | ||||||||
Preferred stock of subsidiaries | 99 | ― | 107 | ― | 107 | ||||||||
SDG&E: | |||||||||||||
Total long-term debt(2) | $ | 4,135 | $ | ― | $ | 4,243 | $ | 345 | $ | 4,588 | |||
Contingently redeemable preferred stock (5) | 79 | ― | 85 | ― | 85 | ||||||||
SoCalGas: | |||||||||||||
Total long-term debt(3) | $ | 1,413 | $ | ― | $ | 1,599 | $ | ― | $ | 1,599 | |||
Preferred stock | 22 | ― | 24 | ― | 24 | ||||||||
-1 | Before reductions for unamortized discount (net of premium) of $15 million at September 30, 2013 and $16 million at December 31, 2012, and excluding capital leases of $184 million at September 30, 2013 and $189 million at December 31, 2012, and commercial paper classified as long-term debt of $300 million at December 31, 2012. We discuss our long-term debt in Note 6 above and in Note 5 of the Notes to Consolidated Financial Statements in the Annual Report. | ||||||||||||
-2 | Before reductions for unamortized discount of $11 million at September 30, 2013 and $12 million at December 31, 2012, and excluding capital leases of $181 million at September 30, 2013 and $185 million at December 31, 2012. | ||||||||||||
-3 | Before reductions for unamortized discount of $4 million at both September 30, 2013 and December 31, 2012, and excluding capital leases of $2 million at September 30, 2013 and $4 million at December 31, 2012. | ||||||||||||
-4 | Investments in affordable housing partnerships at Parent and Other. | ||||||||||||
-5 | On September 30, 2013, SDG&E announced that it would redeem all outstanding shares of its contingently redeemable preferred stock on October 15, 2013 for $82 million. See Note 5 for additional details. | ||||||||||||
We base the fair value of certain of our long-term debt and preferred stock on a market approach using quoted market prices for identical or similar securities in thinly-traded markets (Level 2). We value other long-term debt using an income approach based on the present value of estimated future cash flows discounted at rates available for similar securities (Level 3). | |||||||||||||
We calculated the fair value of our investments in affordable housing partnerships using an income approach based on the present value of estimated future cash flows discounted at rates available for similar investments (Level 3). | |||||||||||||
Nuclear Decommissioning Trusts | |||||||||||||
We discuss SDG&E's investments in nuclear decommissioning trust funds in Note 9 below and in Note 6 of the Notes to Consolidated Financial Statements in the Annual Report. The following table shows the fair values and gross unrealized gains and losses for the securities held in the trust funds: | |||||||||||||
NUCLEAR DECOMMISSIONING TRUSTS | |||||||||||||
(Dollars in millions) | |||||||||||||
Gross | Gross | Estimated | |||||||||||
Unrealized | Unrealized | Fair | |||||||||||
Cost | Gains | Losses | Value | ||||||||||
As of September 30, 2013: | |||||||||||||
Debt securities: | |||||||||||||
Debt securities issued by the U.S. Treasury and other | |||||||||||||
U.S. government corporations and agencies(1) | $ | 130 | $ | 4 | $ | -1 | $ | 133 | |||||
Municipal bonds(2) | 102 | 3 | -1 | 104 | |||||||||
Other securities(3) | 135 | 3 | -4 | 134 | |||||||||
Total debt securities | 367 | 10 | -6 | 371 | |||||||||
Equity securities | 231 | 370 | -2 | 599 | |||||||||
Cash and cash equivalents | 11 | ― | ― | 11 | |||||||||
Total | $ | 609 | $ | 380 | $ | -8 | $ | 981 | |||||
As of December 31, 2012: | |||||||||||||
Debt securities: | |||||||||||||
Debt securities issued by the U.S. Treasury and other | |||||||||||||
U.S. government corporations and agencies | $ | 147 | $ | 9 | $ | ― | $ | 156 | |||||
Municipal bonds | 57 | 6 | ― | 63 | |||||||||
Other securities | 121 | 10 | -1 | 130 | |||||||||
Total debt securities | 325 | 25 | -1 | 349 | |||||||||
Equity securities | 249 | 292 | -2 | 539 | |||||||||
Cash and cash equivalents | 20 | ― | ― | 20 | |||||||||
Total | $ | 594 | $ | 317 | $ | -3 | $ | 908 | |||||
-1 | Maturity dates are 2014-2056. | ||||||||||||
-2 | Maturity dates are 2014-2062. | ||||||||||||
-3 | Maturity dates are 2013-2111. | ||||||||||||
The following table shows the proceeds from sales of securities in the trusts and gross realized gains and losses on those sales: | |||||||||||||
SALES OF SECURITIES | |||||||||||||
(Dollars in millions) | |||||||||||||
Three months ended September 30, | Nine months ended September 30, | ||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||
Proceeds from sales | $ | 181 | $ | 204 | $ | 507 | $ | 524 | |||||
Gross realized gains | 2 | 3 | 13 | 12 | |||||||||
Gross realized losses | -8 | -1 | -15 | -6 | |||||||||
Net unrealized gains (losses) are included in Regulatory Liabilities Arising from Removal Obligations on the Condensed Consolidated Balance Sheets. We determine the cost of securities in the trusts on the basis of specific identification. |
CALIFORNIA_UTILITIES_REGULATOR
CALIFORNIA UTILITIES' REGULATORY MATTERS | 3 Months Ended |
Sep. 30, 2013 | |
Notes to Consolidated Financial Statements [Abstract] | ' |
Sempra Utilities' Regulatory Matters | ' |
NOTE 9. CALIFORNIA UTILITIES' REGULATORY MATTERS | |
We discuss matters affecting our California Utilities in Note 14 of the Notes to Consolidated Financial Statements in the Annual Report, and provide updates to those discussions and details of any new matters below. | |
JOINT MATTERS | |
CPUC General Rate Case (GRC) | |
The CPUC uses a general rate case proceeding to prospectively set rates sufficient to allow the California Utilities to recover their reasonable cost of operations and maintenance and to provide the opportunity to realize their authorized rates of return on their investment. In December 2010, the California Utilities filed their 2012 General Rate Case (2012 GRC) applications to establish their authorized 2012 revenue requirements and the ratemaking mechanisms by which those requirements would change on an annual basis over the subsequent three-year (2013-2015) period. | |
In May 2013, the CPUC approved a final decision (Final GRC Decision) in the California Utilities' 2012 GRC. The Final GRC Decision establishes a 2012 revenue requirement of $1.733 billion for SDG&E and $1.959 billion for SoCalGas. This represents an increase of $119 million (7.4 percent) and $115 million (6.2 percent) over SDG&E's and SoCalGas' authorized 2011 revenue requirements, respectively. The Final GRC Decision is effective retroactive to January 1, 2012, and SDG&E and SoCalGas recorded the cumulative earnings effect of the retroactive application of the Final GRC Decision of $69 million and $37 million, respectively, in the second quarter of 2013. For SDG&E and SoCalGas, respectively, these amounts include an incremental earnings impact of $52 million and $25 million related to 2012 and $17 million and $12 million related to the first quarter of 2013. | |
The amount of revenue associated with the retroactive period is expected to be recovered in SDG&E's rates over a 28-month period beginning in September 2013, and in SoCalGas' rates over a 31-month period beginning in June 2013. At September 30, 2013, SDG&E reported on its Condensed Consolidated Balance Sheet $366 million as a regulatory asset, with $203 million classified as noncurrent, representing the retroactive revenue from the Final GRC Decision to be recovered by SDG&E in rates during the period September 2013 through December 2015. At September 30, 2013, SoCalGas reported on its Condensed Consolidated Balance Sheet a regulatory asset of $117 million, with $65 million as noncurrent, representing the retroactive revenue from the Final GRC Decision to be recovered in rates through December 2015. | |
The Final GRC Decision also establishes a four-year GRC period (through 2015) with a revenue attrition mechanism for the escalation of the adopted revenue requirements for years 2013, 2014, and 2015 based on fixed annual factors of 2.65 percent, 2.75 percent and 2.75 percent, respectively. | |
For SDG&E, the Final GRC Decision also provides the revenue requirement for cost recovery of wildfire insurance premiums beginning January 1, 2012, as we discuss in Note 14 of the Notes to Consolidated Financial Statements in the Annual Report. | |
We provide additional information regarding the 2012 GRC in Note 14 of the Notes to Consolidated Financial Statements in the Annual Report. | |
CPUC Cost of Capital | |
A cost of capital proceeding determines a utility's authorized capital structure and authorized rate of return on rate base (ROR), which is a weighted average of the authorized returns on debt, preferred stock, and common equity (return on equity or ROE), weighted on a basis consistent with the authorized capital structure. The authorized ROR is the rate that the California Utilities are authorized to use in establishing rates to recover the cost of debt and equity used to finance their investment in electric and natural gas distribution, natural gas transmission and electric generation assets. In addition, a cost of capital proceeding also addresses the automatic ROR adjustment mechanism which applies market-based benchmarks to determine whether an adjustment to the authorized ROR is required during the interim years between cost of capital proceedings. | |
SDG&E and SoCalGas filed separate applications with the CPUC in April 2012 to update their cost of capital effective January 1, 2013. The CPUC issued a ruling in June 2012 bifurcating the proceeding. Phase 1 addressed each utility's cost of capital for 2013, with a final decision issued in December 2012, which granted SDG&E and SoCalGas an authorized ROR of 7.79 percent and 8.02 percent, respectively. The CPUC-authorized ROR in effect prior to the effective date of this decision was 8.40 percent for SDG&E and 8.68 percent for SoCalGas. We provide additional details regarding the cost of capital proceeding in Note 14 of the Notes to Consolidated Financial Statements in the Annual Report. Phase 2 addressed the cost of capital adjustment mechanisms for SDG&E, SoCalGas, Southern California Edison (Edison) and Pacific Gas and Electric Company (PG&E). | |
SDG&E, SoCalGas, PG&E, Edison and the Office of Ratepayer Advocates (ORA) (formerly the Division of Ratepayer Advocates) sponsored a joint stipulation in Phase 2 of the proceeding. In March 2013, the CPUC's final decision adopted the joint stipulation, as proposed. SDG&E retains its current cost of capital adjustment mechanism, and SoCalGas has implemented this same adjustment mechanism, which we describe in Note 14 of the Notes to Consolidated Financial Statements in the Annual Report. Both utilities are forgoing their proposed off-ramp provision. | |
Natural Gas Pipeline Operations Safety Assessments | |
Various regulatory agencies, including the CPUC, are evaluating natural gas pipeline safety regulations, practices and procedures. In February 2011, the CPUC opened a forward-looking rulemaking proceeding to examine what changes should be made to existing pipeline safety regulations for California natural gas pipelines. The California Utilities are parties to this proceeding. | |
In June 2011, the CPUC directed SoCalGas, SDG&E, PG&E and Southwest Gas to file comprehensive implementation plans to test or replace all natural gas transmission pipelines that have not been pressure tested. The California Utilities filed their Pipeline Safety Enhancement Plan (PSEP) with the CPUC in August 2011. The proposed safety measures, investments and estimated costs are not included in the California Utilities' 2012 GRC process discussed above. | |
In December 2011, the assigned Commissioner to the rulemaking proceeding for the pipeline safety regulations ruled that SDG&E's and SoCalGas' Triennial Cost Allocation Proceeding (TCAP) would be the most logical proceeding to conduct the reasonableness and ratemaking review of the companies' PSEP. | |
In January 2012, the CPUC Consumer Protection and Safety Division (CPSD) issued a Technical Report of the California Utilities' PSEP. The report, along with testimony and evidentiary hearings, will be used to evaluate the PSEP in the regulatory process. Generally, the report found that the PSEP approach to pipeline replacement and pressure testing and other proposed enhancements is reasonable. | |
In February 2012, the assigned Commissioner in the TCAP issued a ruling setting a schedule for the review of the SDG&E and SoCalGas PSEP with evidentiary hearings held in August 2012. SDG&E and SoCalGas now expect the Administrative Law Judge to issue a proposed decision in Phase 1A of this proceeding in the fourth quarter of 2013. We anticipate that the proposed decision, if adopted, would require SoCalGas and SDG&E to update the costs included in their previous filings, as well as to reflect additional records that have been recovered resulting in a reduction of the number of pipeline miles without records. | |
In April 2012, the CPUC issued an interim decision in the rulemaking proceeding formally transferring the PSEP to the TCAP and authorizing SDG&E and SoCalGas to establish regulatory accounts to record the incremental costs of initiating the PSEP prior to a final decision on the PSEP. The TCAP proceeding will address the recovery of the costs recorded in the regulatory account. | |
In April 2012, the CPUC issued a decision expanding the scope of the rulemaking proceeding to incorporate the provisions of California Senate Bill (SB) 705, which requires gas utilities to develop and implement a plan for the safe and reliable operation of their gas pipeline facilities. SDG&E and SoCalGas submitted their pipeline safety plans in June 2012. The CPUC decision also orders the utilities to undergo independent management and financial audits to assure that the utilities are fully meeting their safety responsibilities. CPSD will select the independent auditors and will oversee the audits. A schedule for the audits has not been established. In December 2012, the CPUC issued a final decision accepting the utility safety plans filed pursuant to SB 705. | |
We provide additional information regarding these rulemaking proceedings and the California Utilities' PSEP in Note 14 of the Notes to Consolidated Financial Statements in the Annual Report. | |
Utility Incentive Mechanisms | |
The CPUC applies performance-based measures and incentive mechanisms to all California investor-owned utilities, under which the California Utilities have earnings potential above authorized base margins if they achieve or exceed specific performance and operating goals. | |
We provide additional information regarding these incentive mechanisms in Note 14 of the Notes to Consolidated Financial Statements in the Annual Report, and below. | |
Natural Gas Procurement | |
In the first quarter of 2012, SoCalGas recorded its Gas Cost Incentive Mechanism (GCIM) award of $6.2 million for natural gas procured for its core customers during the 12-month period ending March 31, 2011. In July 2013, the CPUC approved SoCalGas' application requesting a GCIM award of $5.4 million for the 12-month period ending March 31, 2012, which SoCalGas recorded in the third quarter of 2013. In June 2013, SoCalGas applied to the CPUC for approval of a GCIM award of $5.8 million for natural gas procured for its core customers during the 12-month period ending March 31, 2013. SoCalGas expects a CPUC decision on this application in the first half of 2014. | |
Energy Efficiency | |
In September 2013, SoCalGas and SDG&E filed their incentive award claims of $3.1 million and $3.9 million, respectively, for their energy efficiency performance in program year 2011. We expect CPUC approval of the awards by the end of 2013. Both SoCalGas and SDG&E plan to file incentive award claims for the 2012 program year in the third quarter of 2014. We currently expect the award amounts to be approximately equal to the amounts claimed for the 2011 program year. | |
In September 2013, the CPUC approved a new Efficiency Savings and Performance Incentive mechanism that would apply for the 2013–2014 program period. The mechanism will be applied on an annual basis and remain in effect for future program cycles unless modified by the CPUC. We currently expect the annual amount of the energy efficiency awards for both SoCalGas and SDG&E under this new mechanism to approximate the amount of awards claimed for the 2011 program year. | |
SDG&E MATTERS | |
San Onofre Nuclear Generating Station (SONGS) | |
SONGS Outage and Retirement | |
SDG&E has a 20-percent ownership interest in San Onofre Nuclear Generating Station (SONGS), a 2,150-MW nuclear generating facility near San Clemente, California. SONGS is operated by Southern California Edison (Edison), the majority owner, and is subject to the jurisdiction of the Nuclear Regulatory Commission (NRC) and the CPUC. | |
On June 6, 2013, Edison notified SDG&E that it had reached a decision to permanently retire SONGS Units 2 and 3 and seek approval to start the decommissioning activities for the entire facility. Edison advised SDG&E that its management had made the unilateral decision to retire the Units once Edison concluded that the considerable uncertainty about when, or if, the NRC would allow a restart of Unit 2 could not be resolved. Given this uncertainty, Edison decided to retire both Units and seek the authority from the NRC to commence the decommissioning of SONGS. | |
By way of background, the steam generators were replaced in Units 2 and 3, and the Units returned to service in 2010 and 2011, respectively. Both Units have been shut down since early 2012 after a water leak occurred in the Unit 3 steam generator. Edison concluded that the leak was due to unexpected wear from tube-to-tube contact. At the time the leak was identified, Edison also inspected and tested Unit 2 and subsequently found unexpected tube wear in Unit 2's steam generators, as well. In March 2012, in response to the shutdown of SONGS, the NRC issued a Confirmatory Action Letter (CAL) which, among other things, outlined the requirements Edison would be required to meet before the NRC would approve a restart of either of the Units. | |
In October 2012, Edison submitted a restart plan to the NRC proposing to operate Unit 2 at a reduced power level for a period of five months, at which time the Unit would be brought down for further inspection. Edison did not file a restart plan for Unit 3, pending further inspection and analysis of what the required repairs or modifications would need to be to return the Unit back to service in a safe manner. The NRC had been reviewing the restart plan for Unit 2 proposed by Edison since that time, and in May 2013, the Atomic Safety and Licensing Board (ASLB), an adjudicatory arm of the NRC, concluded that the CAL process constituted a de facto license amendment proceeding that was subject to a public hearing. This conclusion by the ASLB resulted in further uncertainty regarding when a final decision might be made on restarting Unit 2. | |
CPUC SONGS Order Instituting Investigation (OII) | |
In response to the prolonged outage, the CPUC issued the OII, pursuant to California Public Utilities' Code Section 455.5. The OII consolidates all SONGS issues in various related proceedings into a single proceeding. The OII, among other things, ruled that all revenues associated with the investment in, and operation of, SONGS since January 1, 2012 are subject to refund to customers, pending the outcome of the proceeding. The OII proceeding will also determine the ultimate recovery of the investment in SONGS and the costs incurred since the commencement of this outage, including purchased replacement power costs that are typically recovered through the Energy Resource Recovery Account (ERRA) balancing account subject only to a reasonableness review by the CPUC. | |
The first phase of the OII addresses 2012 costs. Two hearings were held in 2013 on this first phase, in May to address the 2012 capital and operation and maintenance costs, and in August to address the appropriate determination of the cost of purchased replacement power. We expect a CPUC decision on the first phase of the OII in the fourth quarter of 2013. | |
The second phase of the OII addresses the appropriate rate recovery treatment of the investment in SONGS assets. Hearings on this second phase were held in October 2013, and we expect a CPUC decision on this phase of the OII in the first half of 2014. | |
The third and fourth phases of the OII will address the reasonableness of the steam generator replacement project costs. No hearing dates for these two phases have been scheduled. | |
Since the unscheduled outage started, SDG&E has procured power to meet its customers' needs to replace the power that would have been supplied to SDG&E from SONGS, had SONGS been in operation. The estimated cost of the purchased replacement power, determined consistent with the methodology used in the CPUC's OII into the SONGS outage, incurred from January 2012 through June 6, 2013, the date Edison notified SDG&E of the early closure of SONGS, was approximately $166 million. Of this total, $93 million was incurred in 2012 and has been approved for collection in rates pursuant to prior ERRA proceedings. The remaining $74 million, discussed below, represents replacement power costs incurred in 2013 through June 6 that have not been approved for recovery in rates. | |
In addition to the estimated cost of the purchased replacement power mentioned above, SDG&E's share of SONGS' operating costs, including depreciation, and the return on its investment in SONGS from January 1, 2012 through June 30, 2013, was approximately $300 million. We provide additional information regarding the OII in Note 14 of the Notes to Consolidated Financial Statements in the Annual Report. | |
Accounting for the Early Retirement of SONGS | |
Given the decision by Edison to close SONGS, SDG&E management assessed the appropriate accounting for an early-retired plant. In conducting this assessment, management took into consideration, among other things, the interrelationship of any recovery of SDG&E's investment in SONGS, the cost of operations, the cost of purchased replacement power and the probability of having to refund to customers a portion or all of the revenue subject to refund. Management's assessment took into account that the CPUC is considering all of these elements on a combined basis in the OII. After considering the regulatory precedent regarding rate recovery of investments in and costs incurred related to early-retired plants, management considered a number of possible regulatory outcomes from the OII proceeding, none of which management considered certain, and given SDG&E's non-operator and minority interest position and the regulatory precedent on such matters, management believes that it is probable that SDG&E will recover in rates a substantial portion of its investment in SONGS, the associated costs incurred to date and the cost of the purchased replacement power. The amount that management has deemed to be probable of recovery was determined based on management's assessment of the likelihood of the potential regulatory outcomes identified. | |
As a result of Edison's decision to permanently retire SONGS Units 2 and 3, and as a result of our assessment described above, SDG&E established a new regulatory asset included in Other Assets–Other Regulatory Assets on the Condensed Consolidated Balance Sheet. As of September 30, 2013, the balance in this new regulatory asset was $431 million and was comprised of the following: | |
The net book value of SDG&E's investment in SONGS plant and nuclear fuel of $516 million, which prior to the date of the plant retirement, had been reported as Property, Plant and Equipment on the Condensed Consolidated Balance Sheet; | |
SDG&E's SONGS-related materials and supplies of $10 million, which prior to the date of the plant retirement, had been reported as Inventory on the Condensed Consolidated Balance Sheet; | |
SDG&E's 2013 cost of replacement power that is in excess of the amount previously authorized for recovery in ERRA of $74 million which, prior to the date of the plant retirement, would have been reported as Regulatory Balancing Accounts, Net in Current Assets on the Condensed Consolidated Balance Sheet; | |
Miscellaneous costs incurred or expected to be incurred by SDG&E associated with the early closure of the plant of $31 million; net of | |
A reserve for disallowance of rate recovery of $200 million reported as Loss from Plant Closure on the Condensed Consolidated Statement of Operations. | |
The amount that SDG&E will eventually recover will require a regulatory decision from the CPUC that could result in recovery of an amount that is significantly different than management's estimate. In addition to recoveries through the regulatory process, SDG&E intends to pursue various avenues for recovery from other potentially responsible parties and insurance carriers. However, these anticipated recoveries, if any, cannot be included in our current estimates. SDG&E will continue to assess the probability of recovery in rates of this new regulatory asset, as well as: 1) the cost of the purchased replacement power of $93 million approved in prior ERRA proceedings for collection in rates, and 2) the operations and maintenance expenses incurred by SDG&E since the start of the forced outages, which amounted to approximately $220 million through September 30, 2013. Should SDG&E conclude that recovery in rates is less than the amount anticipated or no longer probable, SDG&E will record an additional charge against earnings at the time such a conclusion is reached. | |
Nuclear Regulatory Commission (NRC) Proceedings | |
In September 2013, Edison received an NRC Inspection Report which identified a preliminary finding with low to moderate safety significance and an apparent violation regarding Unit 3's steam generators. In addition, the report identified a preliminary finding with very low safety significance for Unit 2's steam generators for failing to ensure that MHI's modeling and analysis were adequate. | |
Simultaneously, the NRC issued an Inspection Report to MHI containing a Notice of Nonconformance for its flawed computer modeling in the design of the replacement steam generators. | |
Nuclear Decommissioning and Funding | |
As a result of Edison's decision to permanently retire SONGS Units 2 and 3, Edison has begun the decommissioning phase of the plant. The process of decommissioning a nuclear power plant is governed by NRC regulations. The regulations categorize the decommissioning activities into three phases: initial activities, major decommissioning and storage activities, and license termination. Initial activities include providing notice of permanent cessation of operations (accomplished on June 12, 2013) and notice of permanent removal of fuel from the reactor vessels (provided by Edison to the NRC on June 28 and July 22, 2013 for Units 3 and 2, respectively). Within two years after the announcement of retirement, the licensee (Edison) must submit a post-shutdown decommissioning activities report, an irradiated fuel management plan and a site-specific decommissioning cost estimate. Edison currently estimates that it will provide the other initial activity phase plans and cost estimates to the NRC by the end of 2014. | |
In accordance with state and federal requirements and regulations, SDG&E has assets held in trusts, referred to as the Nuclear Decommissioning Trust (NDT), to fund decommissioning costs for SONGS Units 1, 2 and 3. As of September 30, 2013, the fair value of SDG&E's NDT assets was $981 million. Except for the use of funds for the planning of decommissioning activities, CPUC approval is required for SDG&E to access the NDT assets to fund SONGS decommissioning costs. SDG&E currently plans to file a request with the CPUC for such authorization by the end of 2013. Until CPUC approval is received, SDG&E will use working capital to pay for any SONGS decommissioning costs incurred, and such expenditures will be reimbursed from the NDT upon that approval. | |
SDG&E and Edison have a joint application pending with the CPUC requesting continued rate recovery of the estimated cost for decommissioning of SONGS. SDG&E is currently authorized to recover $8 million annually to fund additional investments in the NDT to pay for the cost of decommissioning SONGS. In its pending application with the CPUC, SDG&E is requesting to recover $16 million on an annual basis to fund additional investments in the NDT. We expect a decision on this application in the first half of 2014. | |
We provide additional information regarding the NDT and the SONGS decommissioning in Note 6 of the Notes to Consolidated Financial Statements in the Annual Report. | |
Power Procurement and Resource Planning | |
South Bay Substation | |
SDG&E filed an application in 2010 with the CPUC for a permit to construct a new substation to replace the aging and obsolete South Bay substation and accommodate the retirement of the South Bay Power Plant. The existing substation will be demolished when the new substation has been constructed, energized and all transmission lines have been transferred. On October 17, 2013, the CPUC approved SDG&E's permit to construct the South Bay Substation Relocation Project at SDG&E's proposed site, which will be located south of the existing site. The project, estimated at $145 million to $175 million, will replace the existing 138/69-kilovolt (kV) substation with the new 230/69/12-kV Bay Boulevard Substation. SDG&E is in the process of obtaining the additional permits required to begin construction, including the coastal development permit from the California Coastal Commission. SDG&E currently expects the project to be in service by 2017. | |
East County Substation | |
In June 2012, the CPUC approved SDG&E's application for authorization to proceed with the East County Substation project, estimated to cost $435 million. The Bureau of Land Management (BLM) issued its record of decision in August 2012. SDG&E began construction in the second quarter of 2013 and expects the substation to be placed in service in the second half of 2014. | |
FERC Formulaic Rate Matters | |
SDG&E submitted its Electric Transmission Formula Rate (TO4) filing with the Federal Energy Regulatory Commission (FERC) in February 2013 to be effective September 1, 2013. This proceeding will set the rate making methodology and rate of return for SDG&E's FERC-regulated electric transmission operations and assets. SDG&E's TO4 filing is requesting a rate making formula that is essentially the same as the TO3 Formula. SDG&E's TO4 filing is requesting: 1) rates to be determined by a base period of historical costs and a forecast of capital investments and 2) a true-up period similar to balancing account treatment that is designed to provide SDG&E earnings of no more and no less than its actual cost of service including its authorized return on investment. | |
This TO4 proceeding will also set SDG&E's authorized return on equity (ROE) on FERC rate base. SDG&E's TO4 filing proposes a FERC ROE of 11.3 percent. Parties have protested SDG&E's proposed ROE and have requested an ROE in the high 8 percent to low 10 percent range. They have also protested other aspects of the TO4 filing. Although the FERC issued orders conditionally adopting the rates proposed by SDG&E based on the 11.3 percent ROE, effective September 1, 2013, such revenues are subject to refund. Settlement negotiations are currently ongoing. If no settlement is reached, hearings at the FERC will begin in May 2014. Based upon recent decisions, and the fact that SDG&E does not currently have any incentive adders in relation to existing projects, the outcome of this proceeding likely may result in an ROE closer to 10 percent. | |
With respect to SDG&E's TO3 Formula, a hearing has been scheduled for early 2014 to address SDG&E's proposed recovery of $23.2 million of costs related to excess wildfire claims in transmission rates for the period September 1, 2012 through August 31, 2013. | |
Excess Wildfire Claims Cost Recovery at the CPUC | |
SDG&E and SoCalGas filed an application, along with other related filings, with the CPUC in August 2009 proposing a new framework and mechanism for the future recovery of all wildfire-related expenses for claims, litigation expenses and insurance premiums that are in excess of amounts authorized by the CPUC for recovery in distribution rates. In December 2012, the CPUC issued a final decision that ultimately did not approve the proposed framework for the utilities but allowed SDG&E to maintain its authorized memorandum account, so that SDG&E may file applications with the CPUC requesting recovery of amounts properly recorded in the memorandum account at a later time, subject to reasonableness review. | |
SDG&E intends to pursue recovery of such costs in a future application. SDG&E will continue to assess the potential for recovery of these costs in rates. Should SDG&E conclude that recovery in rates is no longer probable, SDG&E will record a charge against earnings at the time such conclusion is reached. If SDG&E had concluded that the recovery of regulatory assets related to CPUC-regulated operations was no longer probable or was less than currently estimated at September 30, 2013, the resulting after-tax charge against earnings would have been up to $186 million. In addition, in periods following any such conclusion, SDG&E's earnings will be adversely impacted by increases in the estimated cost to litigate or settle pending wildfire claims. We discuss how we assess the probability of recovery of our regulatory assets in Note 1 of the Notes to Consolidated Financial Statements in the Annual Report. | |
We provide additional information about 2007 wildfire litigation costs and their recovery in Note 10. | |
SOCALGAS MATTER | |
Aliso Canyon Natural Gas Storage Compressor Replacement | |
In September 2009, SoCalGas filed an application with the CPUC requesting approval to replace certain obsolete natural gas turbine compressors used in the operations of SoCalGas' Aliso Canyon natural gas storage reservoir with a new electric compressor station. In April 2012, the CPUC issued a draft environmental impact report (EIR) for the project concluding that no significant or unavoidable adverse environmental impacts have been identified from the construction or operation of the proposed project. In July 2013, the CPUC issued a final EIR confirming the conclusions and findings in the draft EIR. On October 29, 2013, the CPUC issued a proposed decision that adopts the EIR and approves the estimated $200 million project. We expect the CPUC to issue a final decision in November 2013. |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Sep. 30, 2013 | |
Notes to Consolidated Financial Statements [Abstract] | ' |
Commitments and Contingencies | ' |
NOTE 10. COMMITMENTS AND CONTINGENCIES | |
LEGAL PROCEEDINGS | |
We accrue losses for legal proceedings when it is probable that a loss has been incurred and the amounts of the loss can be reasonably estimated. However, the uncertainties inherent in legal proceedings make it difficult to estimate with reasonable certainty the costs and effects of resolving these matters. Accordingly, actual costs incurred may differ materially from amounts accrued, may exceed applicable insurance coverage and could materially adversely affect our business, cash flows, results of operations, financial condition and prospects. Unless otherwise indicated, we are unable to estimate reasonably possible losses in excess of any amounts accrued. | |
At September 30, 2013, Sempra Energy's accrued liabilities for material legal proceedings, on a consolidated basis, were $177 million. At September 30, 2013, accrued liabilities for material legal proceedings for SDG&E and SoCalGas were $164 million and $5 million, respectively. At September 30, 2013, accrued liabilities of $164 million at Sempra Energy and SDG&E were related to wildfire litigation discussed below. | |
SDG&E | |
2007 Wildfire Litigation | |
In October 2007, San Diego County experienced several catastrophic wildfires. Reports issued by the California Department of Forestry and Fire Protection (Cal Fire) concluded that two of these fires (the Witch and Rice fires) were SDG&E “power line caused” and that a third fire (the Guejito fire) occurred when a wire securing a Cox Communications' (Cox) fiber optic cable came into contact with an SDG&E power line “causing an arc and starting the fire.” Cal Fire reported that the Rice fire burned approximately 9,500 acres and damaged 206 homes and two commercial properties, and the Witch and Guejito fires merged and eventually burned approximately 198,000 acres, resulting in two fatalities, approximately 40 firefighters injured and an estimated 1,141 homes destroyed. | |
A September 2008 staff report issued by the CPUC's CPSD reached substantially the same conclusions as the Cal Fire reports, but also contended that the power lines involved in the Witch and Rice fires and the lashing wire involved in the Guejito fire were not properly designed, constructed and maintained. In April 2010, proceedings initiated by the CPUC to determine if any of its rules were violated were settled with SDG&E's payment of $14.75 million. | |
Numerous parties have sued SDG&E and Sempra Energy in San Diego County Superior Court seeking recovery of unspecified amounts of damages, including punitive damages, from the three fires. These include owners and insurers of properties that were destroyed or damaged in the fires and government entities seeking recovery of firefighting, emergency response, and environmental costs. They assert various bases for recovery, including inverse condemnation based upon a California Court of Appeal decision finding that another California investor-owned utility was subject to strict liability, without regard to foreseeability or negligence, for property damages resulting from a wildfire ignited by power lines. | |
In October 2010, the Court of Appeal affirmed the trial court's ruling that these claims must be pursued in individual lawsuits, rather than as class actions on behalf of all persons who incurred wildfire damages. In February 2011, the California Supreme Court denied a petition for review of the affirmance. A trial has been set for September 26, 2014. | |
SDG&E filed cross-complaints against Cox seeking indemnification for any liability that SDG&E might incur in connection with the Guejito fire, two SDG&E contractors seeking indemnification in connection with the Witch fire, and one SDG&E contractor seeking indemnification in connection with the Rice fire. SDG&E settled its claims against Cox and the three contractors for a total of approximately $824 million. Among other things, the settlement agreements provide that SDG&E will defend and indemnify Cox and the three contractors against all compensatory damage claims and related costs arising out of the wildfires. | |
SDG&E has settled all of the approximately 19,000 claims brought by homeowner insurers for damage to insured property relating to the three fires. Under the settlement agreements, SDG&E has paid or will pay 57.5 percent of the approximately $1.6 billion paid or reserved for payment by the insurers to their policyholders and received an assignment of the insurers' claims against other parties potentially responsible for the fires. | |
The wildfire litigation also includes claims of non-insurer plaintiffs for damage to uninsured and underinsured structures, business interruption, evacuation expenses, agricultural damage, emotional harm, personal injuries and other losses. SDG&E has settled the claims of approximately 5,950 of these plaintiffs, including all of the government entities. There are now less than 100 cases left to be resolved and substantially all of those remaining individual and business plaintiffs have submitted settlement demands and damage estimates totaling approximately $550 million. SDG&E does not expect a significant number of additional plaintiffs to file lawsuits given the applicable statutes of limitation, but does expect to receive additional settlement demands and damage estimates from existing plaintiffs as settlement negotiations continue. SDG&E has established reserves for the wildfire litigation as we discuss below. | |
SDG&E's settled claims and defense costs have exceeded its $1.1 billion of liability insurance coverage for the covered period and the $824 million recovered from third parties. It expects that its wildfire reserves and amounts paid to resolve wildfire claims will continue to increase as it obtains additional information. | |
As we discuss in Note 9, SDG&E has concluded that it is probable that it will be permitted to recover in rates a substantial portion of its reasonably incurred costs of resolving wildfire claims in excess of its liability insurance coverage and the amounts recovered from third parties. Accordingly, although such recovery will require future regulatory approval, at September 30, 2013, Sempra Energy and SDG&E have recorded assets of $339 million in Regulatory Assets Arising From Wildfire Litigation Costs on their Condensed Consolidated Balance Sheets, including $315 million related to CPUC-regulated operations, which represents the amount substantially equal to the aggregate amount it has paid or reserved for payment for the resolution of wildfire claims and related costs in excess of its liability insurance coverage and amounts recovered from third parties. SDG&E will increase the regulatory assets if the estimate of amounts to settle remaining claims increases. | |
SDG&E will continue to assess the probability of recovery of these excess wildfire costs in rates. Should SDG&E conclude that recovery in rates is no longer probable, SDG&E will record a charge against earnings at the time such conclusion is reached. If SDG&E had concluded that the recovery of regulatory assets related to CPUC-regulated operations was no longer probable or was less than currently estimated at September 30, 2013, the resulting after-tax charge against earnings would have been up to $186 million. In addition, in periods following any such conclusion, SDG&E's earnings will be adversely impacted by increases in the estimated cost to litigate or settle pending wildfire claims. We provide additional information about excess wildfire claims cost recovery and related CPUC actions in Note 9 and discuss how we assess the probability of recovery of our regulatory assets in Note 1 of the Notes to Consolidated Financial Statements in the Annual Report. | |
SDG&E's cash flow may be materially adversely affected due to the timing differences between the resolution of claims and the recoveries in rates, which may extend over a number of years. Also, recovery from customers will require future regulatory actions, and a failure to obtain substantial or full recovery, or any negative assessment of the likelihood of recovery, would likely have a material adverse effect on Sempra Energy's and SDG&E's businesses, financial condition, cash flows, results of operations and prospects. | |
SDG&E will continue to gather information to evaluate and assess the remaining wildfire claims and the likelihood, amount and timing of related recoveries in rates and will make appropriate adjustments to wildfire reserves and the related regulatory assets as additional information becomes available. | |
Since 2010, as liabilities for wildfire litigation have become reasonably estimable in the form of settlement demands, damage estimates, and other damage information, SDG&E has recorded related reserves as a liability. The impact of this liability at September 30, 2013 is offset by the recognition of regulatory assets, as discussed above, for reserves in excess of the insurance coverage and recoveries from third parties. The impact of the change in the reserves on SDG&E's and Sempra Energy's after-tax earnings was an increase of $0.5 million and $0.8 million for the three months ended September 30, 2013 and 2012, respectively, and an increase of $0.2 million and a decrease of $4.1 million for the nine months ended September 30, 2013 and 2012, respectively. At September 30, 2013, wildfire litigation reserves were $164 million ($127 million current and $37 million long-term). Additionally, through September 30, 2013, SDG&E has expended $285 million (cumulative, excluding amounts covered by insurance and amounts recovered from third parties) to pay for the settlement of wildfire claims and related costs. | |
Sunrise Powerlink Electric Transmission Line | |
The Sunrise Powerlink is a 117-mile, 500-kV electric transmission line between the Imperial Valley and the San Diego region that was energized and placed in service in June 2012. The Sunrise Powerlink project was approved by the CPUC in December 2008, the BLM in January 2009, and the U.S. Forest Service (USFS) in July 2010. Numerous administrative appeals and legal challenges have been resolved in favor of the project. Three legal challenges are pending. | |
In February 2010, project opponents filed a lawsuit in Federal District Court in San Diego alleging that the BLM failed to properly address the environmental impacts of the approved Sunrise Powerlink route and the related potential development of renewable resources in east San Diego County and Imperial County. In July 2012, the U.S. Court of Appeals for the Ninth Circuit affirmed the District Court's grant of the defendants' motion for summary judgment. | |
In January 2011, project opponents filed a lawsuit in Federal District Court in San Diego alleging that the federal approvals for construction of the project on USFS land and BLM land violated the National Environmental Policy Act and other federal environmental laws. In June 2012, the U.S. Court of Appeals for the Ninth Circuit affirmed the District Court's denial of plaintiffs' motion for a preliminary injunction. | |
In February 2011, opponents of the Sunrise Powerlink filed a lawsuit in Sacramento County Superior Court against the State Water Resources Control Board and SDG&E alleging that the water quality certification issued by the Board under the Federal Clean Water Act violated the California Environmental Quality Act. The Superior Court denied the plaintiffs' petition in July 2012, and the plaintiffs have appealed. | |
A claim for additional compensation has been submitted by one of SDG&E's contractors on the Sunrise Powerlink project. The contractor was awarded the transmission line overhead and underground construction contract on a fixed-fee basis of $456 million after agreed-upon amendments. The contractor has asserted that it is owed additional compensation above the fixed-fee portion of the contract. In May 2013, the contractor filed two civil complaints, one in San Diego County and the other in Imperial County, seeking Foreclosure of Mechanics Liens previously filed in the sum of $99.2 million and $81.1 million, respectively. SDG&E has not been formally served with the complaints, although the parties had previously agreed to stay those proceedings. In October 2013, the contractor served a Demand for Arbitration pursuant to contractual provisions. At this time, based on the documentation submitted by the contractor and the terms of the fixed-fee agreement, SDG&E has concluded that the contractor has not supported its claim for additional compensation in the amount it has requested. | |
September 2011 Power Outage | |
In September 2011, a power outage lasting approximately 12 hours affected millions of people from Mexico to southern Orange County, California. Within several days of the outage, several SDG&E customers filed a class action lawsuit in Federal District Court in San Diego against Arizona Public Service Company, Pinnacle West, and SDG&E alleging that the companies failed to prevent the outage. The lawsuit seeks recovery of unspecified amounts of damages, including punitive damages. In July 2012, the court granted SDG&E's motion to dismiss the punitive damages request and dismissed Arizona Public Service Company and Pinnacle West from the lawsuit. In September 2013, the court granted SDG&E's motion for summary judgment and dismissed the lawsuit. In October 2013, the plaintiffs appealed the court's dismissal of their action. | |
The FERC and North American Electric Reliability Corporation (NERC) conducted a joint inquiry to determine the cause of the power failure and issued a report in May 2012 regarding their findings. The report does not make any findings of failure on SDG&E's part that led to the power failure. However, this report is not dispositive on any potential liability of SDG&E related to the events of that power outage. | |
More than 7,000 customers' claims, primarily related to food spoilage, have been submitted directly to SDG&E. | |
Smart Meters Patent Infringement Lawsuit | |
In October 2011, SDG&E was sued by a Texas design and manufacturing company in Federal District Court, Southern District of California, and later transferred to the Federal District Court, Western District of Oklahoma, alleging that SDG&E's recently installed smart meters infringed certain patents. The meters were purchased from a third party vendor that has agreed to defend and indemnify SDG&E. The lawsuit seeks injunctive relief and recovery of unspecified amounts of damages. | |
Lawsuit Against Mitsubishi Heavy Industries, Ltd. | |
On July 18, 2013, SDG&E filed a lawsuit in the Superior Court of California in the County of San Diego against Mitsubishi Heavy Industries, Ltd., Mitsubishi Nuclear Energy Systems, Inc., and Mitsubishi Heavy Industries America, Inc. (collectively MHI). The lawsuit seeks to recover damages SDG&E has incurred and will incur related to the design defects in the steam generators MHI provided to the SONGS nuclear power plant. The lawsuit asserts a number of causes of action, including fraud, based on the representations MHI made about its qualifications and ability to design generators free from defects of the kind that resulted in the permanent shutdown of the plant and further seeks to set aside the contractual limitation of damages that MHI has asserted. On July 24, 2013, MHI removed the lawsuit to the United States District Court for the Southern District of California, and on August 8, 2013, MHI moved to stay the proceeding pending resolution of the dispute resolution process involving MHI and Edison arising from their contract for the purchase and sale of the steam generators. On October 16, 2013, Edison initiated an arbitration proceeding against MHI seeking damages stemming from the failure of the replacement steam generators. | |
SoCalGas | |
SoCalGas, along with Monsanto Co., Solutia, Inc., Pharmacia Corp., and Pfizer, Inc., are defendants in seven Los Angeles County Superior Court lawsuits filed beginning in April 2011 seeking recovery of unspecified amounts of damages, including punitive damages, as a result of plaintiffs' exposure to PCBs (polychlorinated biphenyls). The lawsuits allege plaintiffs were exposed to PCBs not only through the food chain and other various sources but from PCB-contaminated natural gas pipelines owned and operated by SoCalGas. This contamination allegedly caused plaintiffs to develop cancer and other serious illnesses. Plaintiffs assert various bases for recovery, including negligence and products liability. SoCalGas has settled two of the seven lawsuits for an amount that is not significant and has been recorded. | |
Sempra Mexico | |
Permit Challenges and Property Disputes | |
Sempra Mexico has been engaged in a long-running land dispute relating to property adjacent to its Energía Costa Azul LNG terminal near Ensenada, Mexico. The adjacent property is not required by environmental or other regulatory permits for the operation of the terminal. A claimant to the adjacent property has nonetheless asserted that his health and safety are endangered by the operation of the facility. In February 2011, based on a complaint by the claimant, the then new Ensenada Mayor attempted to temporarily close the terminal based on claims of irregularities in municipal permits issued six years earlier. This attempt was promptly countermanded by Mexican federal and Baja California state authorities. No terminal permits or operations were affected as a result of these proceedings or events and the terminal has continued to operate normally. Sempra Mexico expects additional Mexican court proceedings and governmental actions regarding the claimant's assertions as to whether the terminal's permits should be modified or revoked in any manner. | |
The property claimant also filed a lawsuit in July 2010 against Sempra Energy in Federal District Court in San Diego seeking compensatory and punitive damages as well as the earnings from the Energía Costa Azul LNG terminal based on his allegations that he was wrongfully evicted from the adjacent property and that he has been harmed by other allegedly improper actions. | |
Additionally, several administrative challenges are pending in Mexico before the Mexican environmental protection agency (SEMARNAT) and/or the Federal Tax and Administrative Courts seeking revocation of the environmental impact authorization (EIA) issued to Energía Costa Azul in 2003. These cases generally allege that the conditions and mitigation measures in the EIA are inadequate and challenge findings that the activities of the terminal are consistent with regional development guidelines. A similar administrative challenge seeking to revoke the port concession for our marine operations at our Energía Costa Azul LNG terminal, which was filed with and rejected by the Mexican Communications and Transportation Ministry, remains on appeal in Mexican federal court as well. Also, there are two real property cases pending against Energía Costa Azul in which the plaintiffs seek to annul the recorded property titles for parcels on which the Energía Costa Azul LNG terminal is situated and to obtain possession of different parcels that allegedly sit in the same place; one of these cases was dismissed in September 2013 at the direction of the state appellate court. A third complaint was served in April 2013 seeking to invalidate the contract by which Energía Costa Azul, S. de R.L. de C.V. purchased another of the terminal parcels, on the grounds the purchase price was unfair. Sempra Mexico expects further proceedings on each of these matters, except for the real property case that was dismissed. | |
In July 2012, a Mexicali state court issued a ruling declaring the purchase contract by which Termoeléctrica de Mexicali (TDM) acquired the property on which the facility is located to be invalid, on the grounds that the proceeding in which the seller acquired title was invalid. In June 2013, an appellate court overturned the lower court ruling, and the case was subsequently dismissed. | |
Competitor Claims (Dismissed) | |
In October 2012, a competitor for one of the two contracts awarded by the Mexican Federal Electricity Commission (Comisión Federal de Electricidad, or CFE) for the construction and operation of a natural gas pipeline in Sonora filed an amparo in the Mexican federal district court in Mexico City, challenging the tender process and the award to us. The competitor, a subsidiary of Fermaca, Sásabe Pipeline, S. de R.L. de C.V., filed suit against 11 different governmental authorities, including the CFE, the President of Mexico, and the Mexican Energy Ministry. Sásabe Pipeline, which was the second-place bidder, alleges CFE discriminated against it in the bidding process, including by failing to accept its comments on the bid guidelines. In February 2013, we were notified that Guaymas Pipeline S. de R. L. de C.V., another subsidiary of Fermaca, filed another, similar amparo challenging the process by which the second of the two contracts was awarded, although it did not submit a bid for the project. Both cases were dismissed in April 2013. | |
Sempra Natural Gas | |
Liberty Gas Storage, LLC (Liberty) received a demand for arbitration from Williams Midstream Natural Gas Liquids, Inc. (Williams) in February 2011 related to a sublease agreement. Williams alleges that Liberty was negligent in its attempt to convert certain salt caverns to natural gas storage and seeks damages of $56.7 million. Liberty filed a counterclaim alleging breach of contract in the inducement and seeks damages of more than $215 million. | |
Other Litigation | |
As described in Note 4, we hold a noncontrolling interest in RBS Sempra Commodities, a limited liability partnership in the process of being liquidated. In March 2012, RBS received a letter from the United Kingdom's Revenue and Customs Department (HMRC) regarding a value-added-tax (VAT) matter related to RBS Sempra Energy Europe (RBS SEE), a former indirect subsidiary of RBS Sempra Commodities that was sold to JP Morgan. The letter states that HMRC is conducting a number of investigations into VAT tax refund claims made by various businesses related to the purchase and sale of carbon credit allowances. The letter also states that HMRC believes it has grounds to deny RBS the ability to reduce its VAT liability by VAT paid during 2009 because it knew or should have known that certain vendors in the trading chain did not remit their own VAT to HMRC. In September 2012, HMRC issued an assessment of £86 million for the VAT paid in connection with these transactions and identified several options for responding, including requesting a review by HMRC and appealing to an independent tribunal. HMRC indicated that the assessment was issued on a protective basis as discussion about the issues is continuing. | |
In August 2007, the U.S. Court of Appeals for the Ninth Circuit issued a decision reversing and remanding certain FERC orders declining to provide refunds regarding short-term bilateral sales up to one month in the Pacific Northwest for the January 2000 to June 2001 time period. In December 2010, the FERC approved a comprehensive settlement previously reached by Sempra Energy and RBS Sempra Commodities with the State of California. The settlement resolves all issues with regard to sales between the California Department of Water Resources (DWR) and Sempra Commodities in the Pacific Northwest, but potential claims may exist regarding sales in the Pacific Northwest between Sempra Commodities and other parties. The FERC is in the process of addressing these potential claims on remand. Pursuant to the agreements related to the formation of RBS Sempra Commodities, we have indemnified RBS should the liability from the final resolution of these matters be greater than the reserves related to Sempra Commodities. Pursuant to our agreement with the Noble Group Ltd., one of the buyers of RBS Sempra Commodities' businesses, we have also indemnified Noble Americas Gas & Power Corp. and its affiliates for all losses incurred by such parties resulting from these proceedings as related to Sempra Commodities. | |
We are also defendants in ordinary routine litigation incidental to our businesses, including personal injury, product liability, property damage and other claims. California juries have demonstrated an increasing willingness to grant large awards, including punitive damages, in these types of cases. | |
NUCLEAR INSURANCE | |
SDG&E and the two other owners of SONGS have insurance to cover claims from nuclear liability incidents arising at SONGS. This insurance provides $375 million in coverage limits, the maximum amount available, including coverage for acts of terrorism. In addition, the Price-Anderson Act provides for up to $13.2 billion of secondary financial protection (SFP). If a nuclear liability loss occurring at any U.S. licensed/commercial reactor exceeds the $375 million insurance limit, all nuclear reactor owners could be required to contribute to the SFP. SDG&E's contribution would be up to $50.93 million. This amount is subject to an annual maximum of $7.6 million, unless a default occurs by any other SONGS owner. If the SFP is insufficient to cover the liability loss, SDG&E could be subject to an additional assessment. | |
The SONGS owners, including SDG&E, also have $2.75 billion of nuclear property, decontamination, and debris removal insurance, subject to a $2.5 million deductible for “each and every loss.” In addition, the SONGS owners have insurance coverage for outage expenses and replacement power costs due to accidental property damage. These insurance coverages are provided through Nuclear Electric Insurance Limited (NEIL), a mutual insurance company. The NEIL policies have specific exclusions and limitations that can result in reduced or eliminated coverage. Insured members are subject to retrospective premium assessments. SDG&E could be assessed up to $9.7 million. Edison, on behalf of itself and the minority owners of SONGS (including SDG&E), has placed NEIL on notice of claims under both the property damage and outage insurance policies as a result of SONGS' Units 2 and 3 being shut down since early 2012. | |
The nuclear property insurance program includes an industry aggregate loss limit for non-certified acts of terrorism (as defined by the Terrorism Risk Insurance Act). The industry aggregate loss limit for property claims arising from non-certified acts of terrorism is $3.24 billion. This is the maximum amount that will be paid to insured members who suffer losses or damages from these non-certified terrorist acts. | |
We provide additional information about SONGS in Note 9. | |
CONTRACTUAL COMMITMENTS | |
We discuss below significant changes in the first nine months of 2013 to contractual commitments discussed in Note 15 of the Notes to Consolidated Financial Statements in the Annual Report. | |
Natural Gas Contracts | |
SoCalGas' natural gas purchase and pipeline capacity commitments have increased by $156 million since December 31, 2012. The increase, primarily due to new natural gas purchase and pipeline capacity contracts in the first nine months of 2013 of $710 million, is partially offset by a decrease of $554 million from fulfillment of commitments. Net future payments are expected to decrease by $357 million in 2013 and to increase by $245 million in 2014, $41 million in 2015, $67 million in 2016, $70 million in 2017 and $90 million thereafter compared to December 31, 2012. | |
Sempra Natural Gas' natural gas purchase and storage capacity commitments have increased by $22 million since December 31, 2012, primarily due to additional storage capacity under existing contracts in the first nine months of 2013. Net future payments are expected to decrease by $36 million in 2013, and increase by $10 million in 2014, $7 million in 2015, $7 million in 2016, $7 million in 2017 and $27 million thereafter compared to December 31, 2012. | |
Sempra Rockies Marketing, a subsidiary of Sempra Natural Gas, has an agreement for capacity on the Rockies Express Pipeline through November 2019, as we discuss in Note 4. Historically, the capacity costs have been more than offset by revenues from releases of the capacity. However, certain capacity release commitments will conclude during 2013 and new contracting activity related to that capacity may not be sufficient to offset all of our capacity commitments. Including capacity released to others, Sempra Rockies Marketing's obligation to Rockies Express Pipeline LLC for future capacity payments are expected to be $3 million in 2013, $14 million each year in 2014 through 2017 and $83 million thereafter. | |
LNG Purchase Agreements | |
At September 30, 2013, Sempra Natural Gas has various purchase agreements with major international companies for the supply of LNG to the Energía Costa Azul and Cameron terminals. We discuss these agreements further in Note 15 of the Notes to Consolidated Financial Statements in the Annual Report. Sempra Natural Gas' commitments under all LNG purchase agreements, reflecting changes in forward prices since December 31, 2012 and actual transactions for the first nine months of 2013, are expected to decrease by $424 million in 2013, $37 million in 2014, $42 million in 2015, $59 million in 2016, $66 million in 2017 and $731 million thereafter compared to December 31, 2012. | |
The LNG commitment amounts above are based on Sempra Natural Gas' commitment to accept the maximum possible delivery of cargoes under the agreements. Actual LNG purchases for the nine months ended September 30, 2013 have been significantly lower than the maximum amounts possible. | |
Purchased-Power Contracts | |
SDG&E's commitments under purchased-power contract commitments have increased by $3.1 billion since December 31, 2012. The increase is primarily due to new contracts associated with renewable energy development projects. Net future payments are therefore expected to decrease by $1 million in 2013 and increase by $77 million in 2014, $140 million in 2015, $141 million in 2016, $141 million in 2017 and $2.6 billion thereafter compared to December 31, 2012. | |
Operating Leases | |
SDG&E occupies a six-building office complex in San Diego pursuant to two separate operating leases. In 2013, SDG&E amended these lease agreements to extend their expiration from 2017 to 2024. One lease has four five-year renewal options and the other lease has three five-year renewal options, now exercisable beginning in 2024. Significant net changes to future payments on all noncancelable operating leases at SDG&E, including the San Diego office complex, are a decrease of $18 million in 2013 and increases of $3 million each year in 2014 through 2016, $1 million in 2017, and $84 million thereafter compared to December 31, 2012. | |
Sempra Renewables entered into a land lease in 2013 for the Copper Mountain Solar 3 project, which lease expires in 2050. Future payments on the lease are $2 million each year in 2014 through 2017 and $76 million thereafter. | |
Headquarters Lease | |
In August 2013, Sempra Energy entered into a 25-year, build-to-suit lease for its future San Diego, California, headquarters. We expect to occupy the building in the second half of 2015. Future payments on the lease will be $4 million in 2015, $10 million in 2016, $10 million in 2017 and $287 million thereafter. | |
Construction and Development Projects | |
In the first nine months of 2013, significant net increases to contractual commitments at SoCalGas were $372 million primarily for the Pipeline Safety Enhancement Program. Net future payments under these contractual commitments are expected to increase by $91 million in 2013, $71 million in 2014, and $70 million each year in 2015 through 2017 compared to December 31, 2012. | |
In the first nine months of 2013, significant net increases to contractual commitments at Sempra Mexico were $197 million for contracts related to the construction of an approximately 500-mile natural gas transport pipeline network and $215 million for the Energía Sierra Juárez wind project. Net future payments under these contractual commitments are expected to increase by $12 million in 2013, $219 million in 2014, $179 million in 2015 and $2 million in 2016 compared to December 31, 2012. | |
In the first nine months of 2013, significant net increases to contractual commitments at Sempra Renewables were $515 million for the construction of Copper Mountain Solar 3 facilities and $82 million for the construction of Broken Bow 2 facilities. The future payments under these contractual commitments are expected to be $106 million in 2013, $453 million in 2014, and $38 million in 2015. | |
Guarantees | |
In the first nine months of 2013, Sempra Renewables provided additional guarantees to certain solar and wind farm joint ventures aggregating a maximum of $250 million with an associated aggregated carrying value of $11 million for debt service and operation of the solar and wind farms, as we discuss in Note 6. | |
Other | |
In February 2013, Sempra Natural Gas entered into a long-term operations and maintenance agreement for its remaining block of the Mesquite Power natural gas-fired power plant, which expires in 2033. The total cost associated with this agreement is estimated to be approximately $36 million. The future payments for this contractual commitment are expected to be $1 million in 2013, $2 million each year in 2014 through 2017 and $27 million thereafter. We provide additional information about Mesquite Power in Note 3. |
SEGMENT_INFORMATION
SEGMENT INFORMATION | 3 Months Ended | |||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||
Notes to Consolidated Financial Statements [Abstract] | ' | |||||||||||||||||
Segment Information | ' | |||||||||||||||||
NOTE 11. SEGMENT INFORMATION | ||||||||||||||||||
We have six separately managed reportable segments, as follows: | ||||||||||||||||||
SDG&E provides electric service to San Diego and southern Orange counties and natural gas service to San Diego County. | ||||||||||||||||||
SoCalGas is a natural gas distribution utility, serving customers throughout most of Southern California and part of central California. | ||||||||||||||||||
Sempra South American Utilities operates electric transmission and distribution utilities in Chile and Peru. In June 2013, we sold our interests in two Argentine utilities, which we discuss further in Note 4 above. | ||||||||||||||||||
Sempra Mexico develops, owns and operates, or holds interests in, natural gas transmission pipelines and propane and ethane systems, a natural gas distribution utility, electric generation facilities (including wind), a terminal for the import of LNG, and marketing operations for the purchase of LNG and the purchase and sale of natural gas in Mexico. | ||||||||||||||||||
Sempra Renewables develops, owns and operates, or holds interests in, wind and solar energy projects in Arizona, California, Colorado, Hawaii, Indiana, Kansas, Nebraska, Nevada and Pennsylvania to serve wholesale electricity markets in the United States. | ||||||||||||||||||
Sempra Natural Gas develops, owns and operates, or holds interests in, a natural gas-fired electric generation asset, natural gas pipelines and storage facilities, natural gas distribution utilities and a terminal for the import and export of LNG and sale of natural gas, all within the United States. | ||||||||||||||||||
Sempra South American Utilities and Sempra Mexico comprise our Sempra International operating unit. Sempra Renewables and Sempra Natural Gas comprise our Sempra U.S. Gas & Power operating unit. | ||||||||||||||||||
We evaluate each segment's performance based on its contribution to Sempra Energy's reported earnings. The California Utilities operate in essentially separate service territories, under separate regulatory frameworks and rate structures set by the CPUC. The California Utilities' operations are based on rates set by the CPUC and the FERC. We describe the accounting policies of all of our segments in Note 1 of the Notes to Consolidated Financial Statements in the Annual Report. | ||||||||||||||||||
During the fourth quarter of 2012, Sempra Mexico initiated a public debt offering process through one of its subsidiaries. We discuss this debt issuance, which occurred on February 14, 2013, in Note 6. The subsidiary issuing the debt, now IEnova, was previously included in Parent and Other. In anticipation of the debt issuance, we revised the manner in which we make resource allocation decisions to our Sempra Mexico segment and assess its performance. As a result, we reclassified certain amounts from Parent and Other, which contains interest and other corporate costs and certain holding company activities, to our Sempra Mexico segment. Losses reclassified as a result of the restatement were $12 million for both the three months and nine months ended September 30, 2012. In accordance with U.S. GAAP, the historical segment disclosures have been restated to be consistent with the current presentation. | ||||||||||||||||||
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 parent organizations. | ||||||||||||||||||
SEGMENT INFORMATION | ||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||
REVENUES | ||||||||||||||||||
SDG&E | $ | 1,063 | 42 | % | $ | 1,092 | 44 | % | $ | 3,066 | 39 | % | $ | 2,706 | 39 | % | ||
SoCalGas | 807 | 32 | 728 | 29 | 2,694 | 34 | 2,328 | 33 | ||||||||||
Sempra South American Utilities | 364 | 14 | 356 | 14 | 1,119 | 14 | 1,061 | 15 | ||||||||||
Sempra Mexico | 188 | 7 | 181 | 7 | 519 | 7 | 435 | 6 | ||||||||||
Sempra Renewables | 25 | 1 | 27 | 1 | 76 | 1 | 49 | 1 | ||||||||||
Sempra Natural Gas | 212 | 8 | 294 | 12 | 683 | 9 | 761 | 11 | ||||||||||
Adjustments and eliminations | ― | ― | ― | ― | -2 | ― | -2 | ― | ||||||||||
Intersegment revenues(1) | -108 | -4 | -171 | -7 | -303 | -4 | -359 | -5 | ||||||||||
Total | $ | 2,551 | 100 | % | $ | 2,507 | 100 | % | $ | 7,852 | 100 | % | $ | 6,979 | 100 | % | ||
INTEREST EXPENSE | ||||||||||||||||||
SDG&E | $ | 50 | $ | 49 | $ | 147 | $ | 124 | ||||||||||
SoCalGas | 17 | 17 | 52 | 51 | ||||||||||||||
Sempra South American Utilities | 8 | 6 | 20 | 22 | ||||||||||||||
Sempra Mexico | ― | 3 | 5 | 6 | ||||||||||||||
Sempra Renewables | 5 | 6 | 22 | 13 | ||||||||||||||
Sempra Natural Gas | 34 | 26 | 80 | 72 | ||||||||||||||
All other | 60 | 62 | 182 | 185 | ||||||||||||||
Intercompany eliminations | -37 | -43 | -95 | -121 | ||||||||||||||
Total | $ | 137 | $ | 126 | $ | 413 | $ | 352 | ||||||||||
INTEREST INCOME | ||||||||||||||||||
SDG&E | $ | ― | $ | ― | $ | 1 | $ | ― | ||||||||||
Sempra South American Utilities | 3 | 3 | 11 | 11 | ||||||||||||||
Sempra Mexico | ― | ― | 1 | 1 | ||||||||||||||
Sempra Renewables | 7 | 2 | 14 | 3 | ||||||||||||||
Sempra Natural Gas | 26 | 15 | 57 | 41 | ||||||||||||||
All other | 2 | 2 | 1 | 1 | ||||||||||||||
Intercompany eliminations | -33 | -17 | -70 | -43 | ||||||||||||||
Total | $ | 5 | $ | 5 | $ | 15 | $ | 14 | ||||||||||
DEPRECIATION AND AMORTIZATION | ||||||||||||||||||
SDG&E | $ | 126 | 44 | % | $ | 128 | 46 | % | $ | 367 | 44 | % | $ | 359 | 45 | % | ||
SoCalGas | 100 | 35 | 91 | 33 | 280 | 34 | 268 | 33 | ||||||||||
Sempra South American Utilities | 14 | 5 | 15 | 5 | 44 | 5 | 42 | 5 | ||||||||||
Sempra Mexico | 16 | 5 | 15 | 5 | 47 | 6 | 46 | 6 | ||||||||||
Sempra Renewables | 5 | 2 | 4 | 1 | 20 | 3 | 10 | 1 | ||||||||||
Sempra Natural Gas | 20 | 7 | 24 | 9 | 60 | 7 | 69 | 9 | ||||||||||
All other | 5 | 2 | 3 | 1 | 10 | 1 | 9 | 1 | ||||||||||
Total | $ | 286 | 100 | % | $ | 280 | 100 | % | $ | 828 | 100 | % | $ | 803 | 100 | % | ||
INCOME TAX EXPENSE (BENEFIT) | ||||||||||||||||||
SDG&E | $ | 84 | $ | 38 | $ | 147 | $ | 151 | ||||||||||
SoCalGas | 38 | 37 | 107 | 105 | ||||||||||||||
Sempra South American Utilities | 16 | 27 | 50 | 57 | ||||||||||||||
Sempra Mexico | 16 | 31 | 44 | 61 | ||||||||||||||
Sempra Renewables | 9 | -12 | -8 | -47 | ||||||||||||||
Sempra Natural Gas | -4 | -45 | 35 | -171 | ||||||||||||||
All other | -42 | -27 | -48 | -108 | ||||||||||||||
Total | $ | 117 | $ | 49 | $ | 327 | $ | 48 | ||||||||||
SEGMENT INFORMATION (Continued) | ||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||
EQUITY EARNINGS (LOSSES) | ||||||||||||||||||
Earnings (losses) recorded before tax: | ||||||||||||||||||
Sempra Renewables | $ | -10 | $ | -6 | $ | -12 | $ | -7 | ||||||||||
Sempra Natural Gas | 13 | -87 | 33 | -366 | ||||||||||||||
All other | ― | -1 | ― | -2 | ||||||||||||||
Total | $ | 3 | $ | -94 | $ | 21 | $ | -375 | ||||||||||
Earnings (losses) recorded net of tax: | ||||||||||||||||||
Sempra South American Utilities | $ | ― | $ | ― | $ | -14 | $ | ― | ||||||||||
Sempra Mexico | 8 | 10 | 27 | 29 | ||||||||||||||
Total | $ | 8 | $ | 10 | $ | 13 | $ | 29 | ||||||||||
EARNINGS (LOSSES) | ||||||||||||||||||
SDG&E(2) | $ | 129 | 44 | % | $ | 174 | 65 | % | $ | 285 | 40 | % | $ | 374 | 66 | % | ||
SoCalGas(3) | 102 | 34 | 71 | 26 | 266 | 37 | 190 | 34 | ||||||||||
Sempra South American Utilities | 39 | 13 | 40 | 15 | 110 | 15 | 118 | 21 | ||||||||||
Sempra Mexico | 39 | 13 | 42 | 16 | 96 | 13 | 122 | 22 | ||||||||||
Sempra Renewables | 37 | 13 | 13 | 5 | 56 | 8 | 47 | 8 | ||||||||||
Sempra Natural Gas | -7 | -2 | -68 | -25 | 55 | 8 | -260 | -46 | ||||||||||
All other | -43 | -15 | -4 | -2 | -149 | -21 | -25 | -5 | ||||||||||
Total | $ | 296 | 100 | % | $ | 268 | 100 | % | $ | 719 | 100 | % | $ | 566 | 100 | % | ||
Nine months ended September 30, | ||||||||||||||||||
2013 | 2012 | |||||||||||||||||
EXPENDITURES FOR PROPERTY PLANT & EQUIPMENT | ||||||||||||||||||
SDG&E | $ | 679 | 38 | % | $ | 998 | 44 | % | ||||||||||
SoCalGas | 521 | 29 | 462 | 21 | ||||||||||||||
Sempra South American Utilities | 120 | 7 | 117 | 5 | ||||||||||||||
Sempra Mexico | 280 | 16 | 13 | 1 | ||||||||||||||
Sempra Renewables | 119 | 7 | 564 | 25 | ||||||||||||||
Sempra Natural Gas | 65 | 3 | 84 | 4 | ||||||||||||||
All other | 1 | ― | 3 | ― | ||||||||||||||
Total | $ | 1,785 | 100 | % | $ | 2,241 | 100 | % | ||||||||||
30-Sep-13 | 31-Dec-12 | |||||||||||||||||
ASSETS | ||||||||||||||||||
SDG&E | $ | 15,275 | 41 | % | $ | 14,744 | 40 | % | ||||||||||
SoCalGas | 9,288 | 25 | 9,071 | 25 | ||||||||||||||
Sempra South American Utilities | 3,492 | 10 | 3,310 | 9 | ||||||||||||||
Sempra Mexico | 3,315 | 9 | 2,591 | 7 | ||||||||||||||
Sempra Renewables | 1,898 | 5 | 2,439 | 7 | ||||||||||||||
Sempra Natural Gas | 7,078 | 19 | 5,145 | 14 | ||||||||||||||
All other | 621 | 2 | 818 | 2 | ||||||||||||||
Intersegment receivables | -4,066 | -11 | -1,619 | -4 | ||||||||||||||
Total | $ | 36,901 | 100 | % | $ | 36,499 | 100 | % | ||||||||||
INVESTMENTS IN EQUITY METHOD INVESTEES | ||||||||||||||||||
Sempra South American Utilities | $ | -2 | $ | ― | ||||||||||||||
Sempra Mexico | 367 | 340 | ||||||||||||||||
Sempra Renewables | 701 | 592 | ||||||||||||||||
Sempra Natural Gas | 330 | 361 | ||||||||||||||||
All other | 76 | 134 | ||||||||||||||||
Total | $ | 1,472 | $ | 1,427 | ||||||||||||||
-1 | Revenues for reportable segments include intersegment revenues of: | |||||||||||||||||
$3 million, $17 million, $23 million and $65 million for the three months ended September 30, 2013; $7 million, $48 million, $68 million and $180 million for the nine months ended September 30, 2013; $3 million, $17 million, $78 million and $73 million for the three months ended September 30, 2012; and $6 million, $48 million, $161 million and $144 million for the nine months ended September 30, 2012 for SDG&E, SoCalGas, Sempra Mexico and Sempra Natural Gas, respectively. | ||||||||||||||||||
-2 | After preferred dividends and call premium on preferred stock. | |||||||||||||||||
-3 | After preferred dividends. |
SIGNIFICANT_ACCOUNTING_POLICIE
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Sep. 30, 2013 | |
Significant Accounting Policies | ' |
New Accounting Standards Policy [Text Block] | ' |
NOTE 2. NEW ACCOUNTING STANDARDS | |
We describe below recent pronouncements that have had or may have a significant effect on our financial statements. We do not discuss recent pronouncements that are not anticipated to have an impact on or are unrelated to our financial condition, results of operations, cash flows or disclosures. | |
SEMPRA ENERGY, SDG&E AND SOCALGAS | |
Accounting Standards Update (ASU) 2011-11, “Disclosures about Offsetting Assets and Liabilities” (ASU 2011-11) and ASU 2013-01, “Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities” (ASU 2013-01): In order to allow for balance sheet comparison between U.S. GAAP and International Financial Reporting Standards (IFRS), ASU 2011-11 requires enhanced disclosures related to financial assets and liabilities eligible for offsetting in the statement of financial position. An entity must disclose both gross and net information about financial instruments and transactions subject to a master netting arrangement and eligible for offset, including cash collateral received and posted. | |
ASU 2013-01 clarifies that the scope of ASU 2011-11 applies to derivatives, including bifurcated embedded derivatives, repurchase agreements and reverse repurchase agreements, and securities borrowing and securities lending transactions. | |
We adopted ASU 2011-11 and ASU 2013-01 on January 1, 2013 as required and it did not affect our financial condition, results of operations or cash flows. We provide the additional disclosure in Note 7. | |
ASU 2013-02, “Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income” (ASU 2013-02): ASU 2013-02 requires an entity to present, either on the face of the statement of operations or in the notes to financial statements, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income, but only if the amount reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures required under U.S. GAAP that provide additional detail about those amounts. | |
We adopted ASU 2013-02 on January 1, 2013 as required and it did not affect our financial condition, results of operations or cash flows. We provide the additional disclosure in Note 5. | |
ASU 2013-04, “Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation Is Fixed at the Reporting Date” (ASU 2013-04): ASU 2013-04 provides guidance for the recognition, measurement, and disclosure of obligations resulting from joint and several liability arrangements for which the total amount of the obligation within the scope of the ASU is fixed at the reporting date, except for obligations addressed within existing guidance in U.S. GAAP. The guidance requires an entity to measure those obligations as the sum of the amount the reporting entity agreed to pay on the basis of its arrangement among its co-obligors and any additional amount the reporting entity expects to pay on behalf of its co-obligors. The guidance in the ASU also requires an entity to disclose the nature and amount of the obligation as well as other information about those obligations. | |
We will adopt ASU 2013-04 on January 1, 2014 as required and do not expect it to affect our financial condition, results of operations or cash flows. We will provide the additional disclosure in our 2014 interim financial statements. | |
ASU 2013-11, “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists” (ASU 2013-11): ASU 2013-11 provides explicit guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. ASU 2013-11 requires an entity to present an unrecognized tax benefit, or a portion of an unrecognized tax benefit, as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward. If a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purposes, an entity is required to present the unrecognized tax benefit in the financial statements as a liability instead of combined with deferred tax assets. | |
We will adopt ASU 2013-11 on January 1, 2014 as required and do not expect it to significantly affect our financial condition, results of operations or cash flows. | |
Consolidation Variable Interest Entity Policy | ' |
VARIABLE INTEREST ENTITIES (VIE) | |
We consolidate a VIE if we are the primary beneficiary of the VIE. Our determination of whether we are the primary beneficiary is based upon qualitative and quantitative analyses, which assess | |
the purpose and design of the VIE; | |
the nature of the VIE's risks and the risks we absorb; | |
the power to direct activities that most significantly impact the economic performance of the VIE; and | |
the obligation to absorb losses or right to receive benefits that could be significant to the VIE. | |
Earnings Per Share Policy Text Block | ' |
EARNINGS PER SHARE | |
The following table provides the per share computations for our earnings for the three months and nine months ended September 30, 2013 and 2012. Basic earnings per common share (EPS) is calculated by dividing earnings attributable to common shares by the weighted-average number of common shares outstanding for the period. Diluted EPS includes the potential dilution of common stock equivalent shares that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. | |
The dilution from common stock options is based on the treasury stock method. Under this method, proceeds based on the exercise price plus unearned compensation and windfall tax benefits recognized, minus tax shortfalls recognized, are assumed to be used to repurchase shares on the open market at the average market price for the period. The windfall tax benefits are tax deductions we would receive upon the assumed exercise of stock options in excess of the deferred income taxes we recorded related to the compensation expense on the stock options. Tax shortfalls occur when the assumed tax deductions are less than recorded deferred income taxes. The calculation excludes options for which the exercise price on common stock was greater than the average market price during the period (out-of-the-money options). | |
The dilution from unvested restricted stock awards (RSAs) and restricted stock units (RSUs) is also based on the treasury stock method. | |
Derivatives Policy Text Block | ' |
We use derivative instruments primarily to manage exposures arising in the normal course of business. Our principal exposures are commodity market risk and benchmark interest rate risk. We may also manage foreign exchange rate exposures using derivatives. Our use of derivatives for these risks is integrated into the economic management of our anticipated revenues, anticipated expenses, assets and liabilities. Derivatives may be effective in mitigating these risks (1) that could lead to declines in anticipated revenues or increases in anticipated expenses, or (2) that our asset values may fall or our liabilities increase. Accordingly, our derivative activity summarized below generally represents an impact that is intended to offset associated revenues, expenses, assets or liabilities that are not presented below. | |
We record all derivatives at fair value on the Condensed Consolidated Balance Sheets. We designate each derivative as (1) a cash flow hedge, (2) a fair value hedge, or (3) undesignated. Depending on the applicability of hedge accounting and, for the California Utilities and other operations subject to regulatory accounting, the requirement to pass impacts through to customers, the impact of derivative instruments may be offset in other comprehensive income (cash flow hedge), on the balance sheet (fair value hedges and regulatory offsets), or recognized in earnings. We classify cash flows from the settlements of derivative instruments as operating activities on the Condensed Consolidated Statements of Cash Flows. | |
In certain cases, we apply the normal purchase or sale exception to derivative accounting and have other commodity contracts that are not derivatives. These contracts are not recorded at fair value and are therefore excluded from the disclosures below. | |
HEDGE ACCOUNTING | |
We may designate a derivative as a cash flow hedging instrument if it effectively converts anticipated revenues or expenses to a fixed dollar amount. We may utilize cash flow hedge accounting for derivative commodity instruments, foreign currency instruments and interest rate instruments. Designating cash flow hedges is dependent on the business context in which the instrument is being used, the effectiveness of the instrument in offsetting the risk that a given future revenue or expense item may vary, and other criteria. | |
We may designate an interest rate derivative as a fair value hedging instrument if it effectively converts our own debt from a fixed interest rate to a variable rate. The combination of the derivative and debt instruments results in fixing that portion of the fair value of the debt that is related to benchmark interest rates. Designating fair value hedges is dependent on the instrument being used, the effectiveness of the instrument in offsetting changes in the fair value of our debt instruments, and other criteria. | |
ENERGY DERIVATIVES | |
Our market risk is primarily related to natural gas and electricity price volatility and the specific physical locations where we transact. We use energy derivatives to manage these risks. The use of energy derivatives in our various businesses depends on the particular energy market, and the operating and regulatory environments applicable to the business. | |
INTEREST RATE DERIVATIVES | |
We are exposed to interest rates primarily as a result of our current and expected use of financing. We periodically enter into interest rate derivative agreements intended to moderate our exposure to interest rates and to lower our overall costs of borrowing. We utilize interest rate swaps typically designated as fair value hedges, as a means to achieve our targeted level of variable rate debt as a percent of total debt. In addition, we may utilize interest rate swaps, which are typically designated as cash flow hedges, to lock in interest rates on outstanding debt or in anticipation of future financings. | |
Interest rate derivatives are utilized by the California Utilities as well as by other Sempra Energy subsidiaries. Although the California Utilities generally recover borrowing costs in rates over time, the use of interest rate derivatives is subject to certain regulatory constraints, and the impact of interest rate derivatives may not be recovered from customers as timely as described above with regard to natural gas derivatives. Accordingly, interest rate derivatives are generally accounted for as hedges at the California Utilities, as well as at the rest of Sempra Energy's subsidiaries. Separately, Otay Mesa VIE has entered into interest rate swap agreements to moderate its exposure to interest rate changes. This activity was designated as a cash flow hedge as of April 1, 2011 | |
FOREIGN CURRENCY DERIVATIVES | |
We are exposed to exchange rate movements at our Mexican subsidiaries, which have U.S. dollar denominated cash balances, receivables and payables (monetary assets and liabilities) that give rise to Mexican currency exchange rate movements for Mexican income tax purposes. These subsidiaries also have deferred income tax assets and liabilities that are denominated in the Mexican peso, which must be translated into U.S. dollars for financial reporting purposes. From time to time, we may utilize short-term foreign currency derivatives at our subsidiaries and at the consolidated level as a means to manage the risk of exposure to significant fluctuations in our income tax expense from these impacts. We may also utilize cross-currency swaps to hedge exposure related to Mexican peso-denominated debt at our Mexican subsidiaries. | |
Legal Costs Policy Text Block | ' |
LEGAL PROCEEDINGS | |
We accrue losses for legal proceedings when it is probable that a loss has been incurred and the amounts of the loss can be reasonably estimated. However, the uncertainties inherent in legal proceedings make it difficult to estimate with reasonable certainty the costs and effects of resolving these matters. Accordingly, actual costs incurred may differ materially from amounts accrued, may exceed applicable insurance coverage and could materially adversely affect our business, cash flows, results of operations, financial condition and prospects. Unless otherwise indicated, we are unable to estimate reasonably possible losses in excess of any amounts accrued. | |
At September 30, 2013, Sempra Energy's accrued liabilities for material legal proceedings, on a consolidated basis, were $177 million. At September 30, 2013, accrued liabilities for material legal proceedings for SDG&E and SoCalGas were $164 million and $5 million, respectively. At September 30, 2013, accrued liabilities of $164 million at Sempra Energy and SDG&E were related to wildfire litigation discussed below. | |
Noncontrolling Interest Policy [Text Block] | ' |
Ownership interests that are held by owners other than Sempra Energy and SDG&E in subsidiaries or entities consolidated by them are accounted for and reported as noncontrolling interests. As a result, noncontrolling interests are reported as a separate component of equity on the Condensed Consolidated Balance Sheets. Earnings or losses attributable to noncontrolling interests are separately identified on the Condensed Consolidated Statements of Operations, and comprehensive income or loss attributable to noncontrolling interests is separately identified on the Condensed Consolidated Statements of Comprehensive Income. | |
RECENT_INVESTMENT_ACTIVITY_Tab
RECENT INVESTMENT ACTIVITY (Tables) | 3 Months Ended | |||||
Sep. 30, 2013 | ||||||
Recent Investment Activity (Tables) [Abstract] | ' | |||||
Schedule of Business Deconsolidation Table | ' | |||||
(Dollars in millions) | Copper Mountain Solar 2 | Mesquite Solar 1 | ||||
Proceeds from sale, net of transaction costs(1) | $ | 68 | $ | 100 | ||
Property, plant and equipment, net | -266 | -461 | ||||
Other assets | -30 | -72 | ||||
Long-term debt, including current portion | 146 | 297 | ||||
Other liabilities | 19 | 31 | ||||
Gain on sale of assets | -4 | -36 | ||||
Equity method investments upon deconsolidation | $ | -67 | $ | -141 | ||
-1 | Transaction costs were $3 million at both Copper Mountain Solar 2 and Mesquite Solar 1. |
OTHER_FINANCIAL_DATA_Tables
OTHER FINANCIAL DATA (Tables) | 3 Months Ended | |||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||
Other Financial Data (Tables) [Abstract] | ' | |||||||||||||||||
Net Periodic Benefit Cost Table | ' | |||||||||||||||||
NET PERIODIC BENEFIT COST – SEMPRA ENERGY CONSOLIDATED | ||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||
Pension Benefits | Other Postretirement Benefits | |||||||||||||||||
Three months ended September 30, | Three months ended September 30, | |||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||
Service cost | $ | 28 | $ | 23 | $ | 8 | $ | 4 | ||||||||||
Interest cost | 35 | 40 | 10 | 11 | ||||||||||||||
Expected return on assets | -39 | -38 | -15 | -13 | ||||||||||||||
Amortization of: | ||||||||||||||||||
Prior service cost (credit) | 1 | ― | -1 | ― | ||||||||||||||
Actuarial loss | 11 | 12 | ― | 2 | ||||||||||||||
Settlement | 1 | 1 | ― | ― | ||||||||||||||
Regulatory adjustment | -14 | 9 | 3 | 3 | ||||||||||||||
Total net periodic benefit cost | $ | 23 | $ | 47 | $ | 5 | $ | 7 | ||||||||||
Nine months ended September 30, | Nine months ended September 30, | |||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||
Service cost | $ | 82 | $ | 68 | $ | 21 | $ | 19 | ||||||||||
Interest cost | 111 | 122 | 33 | 39 | ||||||||||||||
Expected return on assets | -121 | -116 | -44 | -40 | ||||||||||||||
Amortization of: | ||||||||||||||||||
Prior service cost (credit) | 3 | 2 | -3 | -2 | ||||||||||||||
Actuarial loss | 41 | 35 | 5 | 9 | ||||||||||||||
Settlement | 1 | 8 | ― | ― | ||||||||||||||
Regulatory adjustment | -65 | -9 | 7 | 8 | ||||||||||||||
Total net periodic benefit cost | $ | 52 | $ | 110 | $ | 19 | $ | 33 | ||||||||||
NET PERIODIC BENEFIT COST – SDG&E | ||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||
Pension Benefits | Other Postretirement Benefits | |||||||||||||||||
Three months ended September 30, | Three months ended September 30, | |||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||
Service cost | $ | 8 | $ | 7 | $ | 2 | $ | 1 | ||||||||||
Interest cost | 9 | 11 | 2 | 2 | ||||||||||||||
Expected return on assets | -13 | -11 | -3 | -1 | ||||||||||||||
Amortization of: | ||||||||||||||||||
Prior service cost | ― | ― | 1 | 1 | ||||||||||||||
Actuarial loss | 3 | 4 | ― | ― | ||||||||||||||
Settlement | 1 | -1 | ― | ― | ||||||||||||||
Regulatory adjustment | 3 | 7 | 1 | 1 | ||||||||||||||
Total net periodic benefit cost | $ | 11 | $ | 17 | $ | 3 | $ | 4 | ||||||||||
Nine months ended September 30, | Nine months ended September 30, | |||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||
Service cost | $ | 24 | $ | 21 | $ | 6 | $ | 5 | ||||||||||
Interest cost | 30 | 34 | 6 | 6 | ||||||||||||||
Expected return on assets | -39 | -35 | -7 | -5 | ||||||||||||||
Amortization of: | ||||||||||||||||||
Prior service cost | 1 | 1 | 3 | 3 | ||||||||||||||
Actuarial loss | 10 | 11 | ― | ― | ||||||||||||||
Settlement | 1 | 1 | ― | ― | ||||||||||||||
Regulatory adjustment | -3 | 7 | 1 | 2 | ||||||||||||||
Total net periodic benefit cost | $ | 24 | $ | 40 | $ | 9 | $ | 11 | ||||||||||
NET PERIODIC BENEFIT COST – SOCALGAS | ||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||
Pension Benefits | Other Postretirement Benefits | |||||||||||||||||
Three months ended September 30, | Three months ended September 30, | |||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||
Service cost | $ | 17 | $ | 13 | $ | 5 | $ | 2 | ||||||||||
Interest cost | 22 | 24 | 8 | 9 | ||||||||||||||
Expected return on assets | -24 | -23 | -12 | -10 | ||||||||||||||
Amortization of: | ||||||||||||||||||
Prior service credit | ― | ― | -2 | -1 | ||||||||||||||
Actuarial loss | 6 | 6 | ― | 1 | ||||||||||||||
Regulatory adjustment | -17 | 2 | 2 | 2 | ||||||||||||||
Total net periodic benefit cost | $ | 4 | $ | 22 | $ | 1 | $ | 3 | ||||||||||
Nine months ended September 30, | Nine months ended September 30, | |||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||
Service cost | $ | 50 | $ | 40 | $ | 13 | $ | 12 | ||||||||||
Interest cost | 68 | 74 | 26 | 31 | ||||||||||||||
Expected return on assets | -73 | -72 | -36 | -33 | ||||||||||||||
Amortization of: | ||||||||||||||||||
Prior service cost (credit) | 1 | 1 | -6 | -5 | ||||||||||||||
Actuarial loss | 23 | 17 | 4 | 8 | ||||||||||||||
Settlement | ― | 1 | ― | ― | ||||||||||||||
Regulatory adjustment | -62 | -16 | 6 | 6 | ||||||||||||||
Total net periodic benefit cost | $ | 7 | $ | 45 | $ | 7 | $ | 19 | ||||||||||
Contributions to Benefit Plans Table | ' | |||||||||||||||||
Sempra Energy | ||||||||||||||||||
(Dollars in millions) | Consolidated | SDG&E | SoCalGas | |||||||||||||||
Contributions through September 30, 2013: | ||||||||||||||||||
Pension plans | $ | 48 | $ | 26 | $ | 8 | ||||||||||||
Other postretirement benefit plans | 19 | 9 | 7 | |||||||||||||||
Total expected contributions in 2013: | ||||||||||||||||||
Pension plans | $ | 132 | $ | 53 | $ | 59 | ||||||||||||
Other postretirement benefit plans | 23 | 12 | 7 | |||||||||||||||
Earnings Per Share Computations Table | ' | |||||||||||||||||
EARNINGS PER SHARE COMPUTATIONS | ||||||||||||||||||
(Dollars in millions, except per share amounts; shares in thousands) | ||||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||
Numerator: | ||||||||||||||||||
Earnings/Income attributable to common shares | $ | 296 | $ | 268 | $ | 719 | $ | 566 | ||||||||||
Denominator: | ||||||||||||||||||
Weighted-average common shares | ||||||||||||||||||
outstanding for basic EPS | 244,140 | 241,689 | 243,682 | 241,133 | ||||||||||||||
Dilutive effect of stock options, restricted | ||||||||||||||||||
stock awards and restricted stock units | 5,119 | 4,113 | 5,041 | 3,880 | ||||||||||||||
Weighted-average common shares | ||||||||||||||||||
outstanding for diluted EPS | 249,259 | 245,802 | 248,723 | 245,013 | ||||||||||||||
Earnings per share: | ||||||||||||||||||
Basic | $ | 1.21 | $ | 1.11 | $ | 2.95 | $ | 2.35 | ||||||||||
Diluted | $ | 1.19 | $ | 1.09 | $ | 2.89 | $ | 2.31 | ||||||||||
Total Shareholder Return Ranking Table | ' | |||||||||||||||||
Four-Year Cumulative Total Shareholder Return Ranking versus S&P 500 Utilities Index(1) | Number of Sempra Energy Common Shares Received for Each Performance-Based Restricted Stock Unit(2) | |||||||||||||||||
75th Percentile or Above | 1.5 | |||||||||||||||||
50th Percentile | 1 | |||||||||||||||||
35th Percentile or Below | ― | |||||||||||||||||
-1 | If Sempra Energy ranks at or above the 50th percentile compared to the S&P 500 Index, participants will receive a minimum of 1.0 share for each RSU. | |||||||||||||||||
-2 | Participants also receive additional shares for dividend equivalents on shares subject to RSUs, which are reinvested to purchase additional units that become subject to the same vesting conditions as the RSUs to which the dividends relate. | |||||||||||||||||
Capitalized Financing Costs Table | ' | |||||||||||||||||
CAPITALIZED FINANCING COSTS | ||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||
Sempra Energy Consolidated: | ||||||||||||||||||
AFUDC related to debt | $ | 6 | $ | 5 | $ | 17 | $ | 32 | ||||||||||
AFUDC related to equity | 14 | 13 | 44 | 80 | ||||||||||||||
Other capitalized financing costs | 9 | 13 | 22 | 40 | ||||||||||||||
Total Sempra Energy Consolidated | $ | 29 | $ | 31 | $ | 83 | $ | 152 | ||||||||||
SDG&E: | ||||||||||||||||||
AFUDC related to debt | $ | 4 | $ | 3 | $ | 12 | $ | 26 | ||||||||||
AFUDC related to equity | 10 | 6 | 30 | 61 | ||||||||||||||
Total SDG&E | $ | 14 | $ | 9 | $ | 42 | $ | 87 | ||||||||||
SoCalGas: | ||||||||||||||||||
AFUDC related to debt | $ | 2 | $ | 2 | $ | 5 | $ | 6 | ||||||||||
AFUDC related to equity | 4 | 7 | 14 | 19 | ||||||||||||||
Total SoCalGas | $ | 6 | $ | 9 | $ | 19 | $ | 25 | ||||||||||
Changes in Components of Accumulated Comprehensive Income Table | ' | |||||||||||||||||
CHANGES IN COMPONENTS OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (1) | ||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||
Three months ended September 30, 2013 | ||||||||||||||||||
Foreign | Total | |||||||||||||||||
Currency | Unamortized | Unamortized | Accumulated Other | |||||||||||||||
Translation | Net | Prior Service | Financial | Comprehensive | ||||||||||||||
Adjustments | Actuarial Loss | Credit | Instruments | Income (Loss) | ||||||||||||||
Sempra Energy Consolidated: | ||||||||||||||||||
Balance as of June 30, 2013 | $ | -96 | $ | -98 | $ | 1 | $ | -26 | $ | -219 | ||||||||
Other comprehensive income (loss) before | ||||||||||||||||||
reclassifications | 5 | ― | ― | -6 | -1 | |||||||||||||
Amounts reclassified from accumulated other | ||||||||||||||||||
comprehensive income | ― | 3 | ― | 2 | 5 | |||||||||||||
Net other comprehensive income (loss) | 5 | 3 | ― | -4 | 4 | |||||||||||||
Balance as of September 30, 2013 | $ | -91 | $ | -95 | $ | 1 | $ | -30 | $ | -215 | ||||||||
SDG&E: | ||||||||||||||||||
Balance as of June 30, 2013 | $ | ― | $ | -11 | $ | 1 | $ | ― | $ | -10 | ||||||||
Amounts reclassified from accumulated other | ||||||||||||||||||
comprehensive income | ― | 1 | ― | ― | 1 | |||||||||||||
Net other comprehensive income | ― | 1 | ― | ― | 1 | |||||||||||||
Balance as of September 30, 2013 | $ | ― | $ | -10 | $ | 1 | $ | ― | $ | -9 | ||||||||
-1 | All amounts are net of income tax, if subject to tax, and exclude noncontrolling interests. | |||||||||||||||||
CHANGES IN COMPONENTS OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (1) | ||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||
Nine months ended September 30, 2013 | ||||||||||||||||||
Foreign | Total | |||||||||||||||||
Currency | Unamortized | Unamortized | Accumulated Other | |||||||||||||||
Translation | Net | Prior Service | Financial | Comprehensive | ||||||||||||||
Adjustments | Actuarial Loss | Credit | Instruments | Income (Loss) | ||||||||||||||
Sempra Energy Consolidated: | ||||||||||||||||||
Balance as of December 31, 2012 | $ | -240 | $ | -102 | $ | 1 | $ | -35 | $ | -376 | ||||||||
Other comprehensive income (loss) before | ||||||||||||||||||
reclassifications | -121 | ― | ― | 1 | -120 | |||||||||||||
Amounts reclassified from accumulated other | ||||||||||||||||||
comprehensive income | 270 | -2 | 7 | ― | 4 | 281 | ||||||||||||
Net other comprehensive income | 149 | 7 | ― | 5 | 161 | |||||||||||||
Balance as of September 30, 2013 | $ | -91 | $ | -95 | $ | 1 | $ | -30 | $ | -215 | ||||||||
SDG&E: | ||||||||||||||||||
Balance as of December 31, 2012 | $ | ― | $ | -12 | $ | 1 | $ | ― | $ | -11 | ||||||||
Amounts reclassified from accumulated other | ||||||||||||||||||
comprehensive income | ― | 2 | ― | ― | 2 | |||||||||||||
Net other comprehensive income | ― | 2 | ― | ― | 2 | |||||||||||||
Balance as of September 30, 2013 | $ | ― | $ | -10 | $ | 1 | $ | ― | $ | -9 | ||||||||
SoCalGas: | ||||||||||||||||||
Balance as of December 31, 2012 | $ | ― | $ | -4 | $ | 1 | $ | -15 | $ | -18 | ||||||||
Amounts reclassified from accumulated other | ||||||||||||||||||
comprehensive income | ― | ― | ― | 1 | 1 | |||||||||||||
Net other comprehensive income | ― | ― | ― | 1 | 1 | |||||||||||||
Balance as of September 30, 2013 | $ | ― | $ | -4 | $ | 1 | $ | -14 | $ | -17 | ||||||||
-1 | All amounts are net of income tax, if subject to tax, and exclude noncontrolling interests. | |||||||||||||||||
-2 | Represents cumulative foreign currency translation adjustment related to the impairment of our Argentine investments in 2006, which is substantially offset by an accrued liability established at that time. We provide additional information about these investments in Note 4. | |||||||||||||||||
Reclassifications out of AOCI Table | ' | |||||||||||||||||
RECLASSIFICATIONS FROM ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||
Three months ended September 30, 2013 | ||||||||||||||||||
Amount reclassified | ||||||||||||||||||
Details about accumulated | from accumulated other | Affected line item | ||||||||||||||||
other comprehensive income (loss) components | comprehensive income (loss) | on Condensed Consolidated Statement of Operations | ||||||||||||||||
Sempra Energy Consolidated: | ||||||||||||||||||
Financial instruments: | ||||||||||||||||||
Interest rate instruments | $ | 3 | Interest Expense | |||||||||||||||
Interest rate instruments | 3 | Equity Losses, Before Income Tax | ||||||||||||||||
Total before income tax | 6 | |||||||||||||||||
-2 | Income Tax | |||||||||||||||||
Net of income tax | 4 | |||||||||||||||||
-2 | Earnings Attributable to Noncontrolling Interests | |||||||||||||||||
$ | 2 | |||||||||||||||||
Amortization of defined benefit pension | ||||||||||||||||||
and postretirement benefits items: | ||||||||||||||||||
Actuarial gain | $ | 5 | -1 | |||||||||||||||
-2 | Income Tax | |||||||||||||||||
Net of income tax | $ | 3 | ||||||||||||||||
SDG&E: | ||||||||||||||||||
Financial instruments: | ||||||||||||||||||
Interest rate instruments | $ | 2 | Interest Expense | |||||||||||||||
-2 | Earnings Attributable to Noncontrolling Interest | |||||||||||||||||
$ | ― | |||||||||||||||||
Amortization of defined benefit pension | ||||||||||||||||||
and postretirement benefits items: | ||||||||||||||||||
Actuarial gain | $ | 2 | -1 | |||||||||||||||
-1 | Income Tax | |||||||||||||||||
Net of income tax | $ | 1 | ||||||||||||||||
-1 | Amounts are included in the computation of net periodic benefit cost (see "Pension and Other Postretirement Benefits" above). | |||||||||||||||||
RECLASSIFICATIONS FROM ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||
Nine months ended September 30, 2013 | ||||||||||||||||||
Amount reclassified | ||||||||||||||||||
Details about accumulated | from accumulated other | Affected line item | ||||||||||||||||
other comprehensive income (loss) components | comprehensive income (loss) | on Condensed Consolidated Statement of Operations | ||||||||||||||||
Sempra Energy Consolidated: | ||||||||||||||||||
Foreign currency translation | $ | 270 | Equity Earnings, Net of Income Tax(1) | |||||||||||||||
Financial instruments: | ||||||||||||||||||
Interest rate instruments | $ | 9 | Interest Expense | |||||||||||||||
Interest rate instruments | 7 | Equity Losses, Before Income Tax | ||||||||||||||||
Commodity contracts not subject to | Cost of Natural Gas, Electric Fuel and Purchased | |||||||||||||||||
rate recovery | -5 | Power | ||||||||||||||||
Total before income tax | 11 | |||||||||||||||||
-1 | Income Tax | |||||||||||||||||
Net of income tax | 10 | |||||||||||||||||
-6 | Earnings Attributable to Noncontrolling Interests | |||||||||||||||||
$ | 4 | |||||||||||||||||
Amortization of defined benefit pension | ||||||||||||||||||
and postretirement benefits items: | ||||||||||||||||||
Actuarial gain | $ | 12 | -2 | |||||||||||||||
-5 | Income Tax | |||||||||||||||||
Net of income tax | $ | 7 | ||||||||||||||||
SDG&E: | ||||||||||||||||||
Financial instruments: | ||||||||||||||||||
Interest rate instruments | $ | 6 | Interest Expense | |||||||||||||||
-6 | Earnings Attributable to Noncontrolling Interest | |||||||||||||||||
$ | ― | |||||||||||||||||
Amortization of defined benefit pension | ||||||||||||||||||
and postretirement benefits items: | ||||||||||||||||||
Actuarial gain | $ | 3 | -2 | |||||||||||||||
-1 | Income Tax | |||||||||||||||||
Net of income tax | $ | 2 | ||||||||||||||||
SoCalGas: | ||||||||||||||||||
Financial instruments: | ||||||||||||||||||
Interest rate instruments | $ | 1 | Interest Expense | |||||||||||||||
― | Income Tax | |||||||||||||||||
Net of income tax | $ | 1 | ||||||||||||||||
-1 | Represents cumulative foreign currency translation adjustment related to the impairment of our Argentine investments in 2006, which is substantially offset by an accrued liability established at that time. We provide additional information about these investments in Note 4. | |||||||||||||||||
-2 | Amounts are included in the computation of net periodic benefit cost (see "Pension and Other Postretirement Benefits" above). | |||||||||||||||||
Income Tax Expense (Benefit) Associated with Other Comprehensive Income Table | ' | |||||||||||||||||
INCOME TAX EXPENSE (BENEFIT) ASSOCIATED WITH OTHER COMPREHENSIVE INCOME | ||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||
Three months ended September 30, | ||||||||||||||||||
2013 | 2012 | |||||||||||||||||
Share- | Non- | Share- | Non- | |||||||||||||||
holders' | controlling | Total | holders' | controlling | Total | |||||||||||||
Equity(1) | Interests | Equity | Equity(1) | Interests | Equity | |||||||||||||
Sempra Energy Consolidated: | ||||||||||||||||||
Other comprehensive income before | ||||||||||||||||||
reclassifications: | ||||||||||||||||||
Financial instruments | $ | -2 | $ | ― | $ | -2 | $ | -3 | $ | ― | $ | -3 | ||||||
Amounts reclassified from accumulated other | ||||||||||||||||||
comprehensive income: | ||||||||||||||||||
Pension and other postretirement benefits | $ | 2 | $ | ― | $ | 2 | $ | -7 | $ | ― | $ | -7 | ||||||
Financial instruments | 2 | ― | 2 | 2 | ― | 2 | ||||||||||||
SDG&E: | ||||||||||||||||||
Amounts reclassified from accumulated other | ||||||||||||||||||
comprehensive income: | ||||||||||||||||||
Pension and other postretirement benefits | $ | 1 | $ | ― | $ | 1 | $ | ― | $ | ― | $ | ― | ||||||
SoCalGas: | ||||||||||||||||||
Amounts reclassified from accumulated other | ||||||||||||||||||
comprehensive income: | ||||||||||||||||||
Financial instruments | $ | ― | $ | ― | $ | ― | $ | 1 | $ | ― | $ | 1 | ||||||
Nine months ended September 30, | ||||||||||||||||||
2013 | 2012 | |||||||||||||||||
Share- | Non- | Share- | Non- | |||||||||||||||
holders' | controlling | Total | holders' | controlling | Total | |||||||||||||
Equity(1) | Interests | Equity | Equity(1) | Interests | Equity | |||||||||||||
Sempra Energy Consolidated: | ||||||||||||||||||
Other comprehensive income before | ||||||||||||||||||
reclassifications: | ||||||||||||||||||
Financial instruments | $ | 3 | $ | ― | $ | 3 | $ | -8 | $ | ― | $ | -8 | ||||||
Amounts reclassified from accumulated other | ||||||||||||||||||
comprehensive income: | ||||||||||||||||||
Pension and other postretirement benefits | $ | 5 | $ | ― | $ | 5 | $ | -4 | $ | ― | $ | -4 | ||||||
Financial instruments | 1 | ― | 1 | 3 | ― | 3 | ||||||||||||
SDG&E: | ||||||||||||||||||
Amounts reclassified from accumulated other | ||||||||||||||||||
comprehensive income: | ||||||||||||||||||
Pension and other postretirement benefits | $ | 1 | $ | ― | $ | 1 | $ | ― | $ | ― | $ | ― | ||||||
SoCalGas: | ||||||||||||||||||
Amounts reclassified from accumulated other | ||||||||||||||||||
comprehensive income: | ||||||||||||||||||
Financial instruments | $ | ― | $ | ― | $ | ― | $ | 1 | $ | ― | $ | 1 | ||||||
-1 | Shareholders' equity of Sempra Energy Consolidated, SDG&E or SoCalGas as indicated in left margin. | |||||||||||||||||
Shareholders' Equity and Noncontrolling Interests Table | ' | |||||||||||||||||
SHAREHOLDERS’ EQUITY AND NONCONTROLLING INTERESTS | ||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||
Sempra | ||||||||||||||||||
Energy | Non- | |||||||||||||||||
Shareholders’ | controlling | Total | ||||||||||||||||
Equity | Interests | Equity | ||||||||||||||||
Balance at December 31, 2012 | $ | 10,282 | $ | 401 | $ | 10,683 | ||||||||||||
Comprehensive income | 888 | 33 | 921 | |||||||||||||||
Preferred dividends of subsidiaries | -5 | ― | -5 | |||||||||||||||
Share-based compensation expense | 30 | ― | 30 | |||||||||||||||
Common stock dividends declared | -460 | ― | -460 | |||||||||||||||
Issuance of common stock | 57 | ― | 57 | |||||||||||||||
Repurchase of common stock | -45 | ― | -45 | |||||||||||||||
Tax benefit related to share-based compensation | 30 | ― | 30 | |||||||||||||||
Sale of noncontrolling interests, net of offering costs | 135 | 439 | 574 | |||||||||||||||
Distributions to noncontrolling interests | ― | -28 | -28 | |||||||||||||||
Call premium on preferred stock of subsidiary | -3 | ― | -3 | |||||||||||||||
Balance at September 30, 2013 | $ | 10,909 | $ | 845 | $ | 11,754 | ||||||||||||
Balance at December 31, 2011 | $ | 9,775 | $ | 403 | $ | 10,178 | ||||||||||||
Comprehensive income | 671 | 42 | 713 | |||||||||||||||
Preferred dividends of subsidiaries | -5 | ― | -5 | |||||||||||||||
Share-based compensation expense | 33 | ― | 33 | |||||||||||||||
Common stock dividends declared | -435 | ― | -435 | |||||||||||||||
Issuance of common stock | 50 | ― | 50 | |||||||||||||||
Repurchase of common stock | -16 | ― | -16 | |||||||||||||||
Common stock released from ESOP(1) | 9 | ― | 9 | |||||||||||||||
Equity contributed by noncontrolling interest | ― | 5 | 5 | |||||||||||||||
Distributions to noncontrolling interests | ― | -36 | -36 | |||||||||||||||
Balance at September 30, 2012 | $ | 10,082 | $ | 414 | $ | 10,496 | ||||||||||||
-1 | Employee Stock Ownership Plan | |||||||||||||||||
SHAREHOLDER’S EQUITY AND NONCONTROLLING INTEREST | ||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||
SDG&E | Non- | |||||||||||||||||
Shareholder’s | controlling | Total | ||||||||||||||||
Equity | Interest | Equity | ||||||||||||||||
Balance at December 31, 2012 | $ | 4,222 | $ | 76 | $ | 4,298 | ||||||||||||
Comprehensive income | 294 | 15 | 309 | |||||||||||||||
Preferred stock dividends declared | -4 | ― | -4 | |||||||||||||||
Distributions to noncontrolling interest | ― | -12 | -12 | |||||||||||||||
Call premium on preferred stock | -3 | ― | -3 | |||||||||||||||
Balance at September 30, 2013 | $ | 4,509 | $ | 79 | $ | 4,588 | ||||||||||||
Balance at December 31, 2011 | $ | 3,739 | $ | 102 | $ | 3,841 | ||||||||||||
Comprehensive income | 378 | 10 | 388 | |||||||||||||||
Preferred stock dividends declared | -4 | ― | -4 | |||||||||||||||
Distributions to noncontrolling interest | ― | -22 | -22 | |||||||||||||||
Balance at September 30, 2012 | $ | 4,113 | $ | 90 | $ | 4,203 | ||||||||||||
Amounts Due To and From Affiliates at SDG&E and SoCalGas Table | ' | |||||||||||||||||
AMOUNTS DUE TO AND FROM AFFILIATES AT SDG&E AND SOCALGAS | ||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||
September 30, | December 31, | |||||||||||||||||
2013 | 2012 | |||||||||||||||||
SDG&E | ||||||||||||||||||
Current: | ||||||||||||||||||
Due from SoCalGas | $ | ― | $ | 37 | ||||||||||||||
Due from various affiliates | 1 | 2 | ||||||||||||||||
$ | 1 | $ | 39 | |||||||||||||||
Due to Sempra Energy | $ | 11 | $ | 19 | ||||||||||||||
Due to SoCalGas | 2 | ― | ||||||||||||||||
$ | 13 | $ | 19 | |||||||||||||||
Income taxes due (to) from Sempra Energy(1) | $ | -2 | $ | 12 | ||||||||||||||
SoCalGas | ||||||||||||||||||
Current: | ||||||||||||||||||
Due from Sempra Energy | $ | 12 | $ | 24 | ||||||||||||||
Due from SDG&E | 2 | ― | ||||||||||||||||
$ | 14 | $ | 24 | |||||||||||||||
Due to SDG&E | $ | ― | $ | 37 | ||||||||||||||
Due to affiliate | 20 | ― | ||||||||||||||||
$ | 20 | $ | 37 | |||||||||||||||
Income taxes due from Sempra Energy(1) | $ | 130 | $ | 99 | ||||||||||||||
-1 | SDG&E and SoCalGas are included in the consolidated income tax return of Sempra Energy and are allocated income tax expense from Sempra Energy in an amount equal to that which would result from the companies’ having always filed a separate return. | |||||||||||||||||
Revenues From Unconsolidated Affiliates at SDG&E and SoCalGas Table | ' | |||||||||||||||||
REVENUES FROM UNCONSOLIDATED AFFILIATES AT SDG&E AND SOCALGAS | ||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||
SDG&E | $ | 3 | $ | 2 | $ | 8 | $ | 6 | ||||||||||
SoCalGas | 17 | 17 | 48 | 48 | ||||||||||||||
Other Income and Expense Table | ' | |||||||||||||||||
OTHER INCOME, NET | ||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||
Sempra Energy Consolidated: | ||||||||||||||||||
Allowance for equity funds used during construction | $ | 14 | $ | 13 | $ | 44 | $ | 80 | ||||||||||
Investment (losses) gains(1) | -6 | 17 | 16 | 27 | ||||||||||||||
Gains on interest rate and foreign exchange instruments, net | 4 | 1 | 17 | 11 | ||||||||||||||
Regulatory interest, net(2) | 1 | ― | 3 | 1 | ||||||||||||||
Sundry, net | 3 | 13 | -1 | 18 | ||||||||||||||
Total | $ | 16 | $ | 44 | $ | 79 | $ | 137 | ||||||||||
SDG&E: | ||||||||||||||||||
Allowance for equity funds used during construction | $ | 10 | $ | 6 | $ | 30 | $ | 61 | ||||||||||
Regulatory interest, net(2) | 1 | ― | 3 | 1 | ||||||||||||||
Sundry, net | -1 | -1 | -3 | -3 | ||||||||||||||
Total | $ | 10 | $ | 5 | $ | 30 | $ | 59 | ||||||||||
SoCalGas: | ||||||||||||||||||
Allowance for equity funds used during construction | $ | 4 | $ | 7 | $ | 14 | $ | 19 | ||||||||||
Sundry, net | -2 | -1 | -5 | -5 | ||||||||||||||
Total | $ | 2 | $ | 6 | $ | 9 | $ | 14 | ||||||||||
-1 | Represents investment (losses) gains on dedicated assets in support of our executive retirement and deferred compensation plans. These amounts are partially offset by corresponding changes in compensation expense related to the plans. | |||||||||||||||||
-2 | Interest on regulatory balancing accounts. | |||||||||||||||||
Income Tax Expense and Effective Income Tax Rates Table | ' | |||||||||||||||||
INCOME TAX EXPENSE AND EFFECTIVE INCOME TAX RATES | ||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||
Three months ended September 30, | ||||||||||||||||||
2013 | 2012 | |||||||||||||||||
Effective | Effective | |||||||||||||||||
Income Tax | Income | Income Tax | Income | |||||||||||||||
Expense | Tax Rate | Expense | Tax Rate | |||||||||||||||
Sempra Energy Consolidated | $ | 117 | 27 | % | $ | 49 | 15 | % | ||||||||||
SDG&E | 84 | 38 | 38 | 17 | ||||||||||||||
SoCalGas | 38 | 27 | 37 | 34 | ||||||||||||||
Nine months ended September 30, | ||||||||||||||||||
2013 | 2012 | |||||||||||||||||
Effective | Effective | |||||||||||||||||
Income Tax | Income | Income Tax | Income | |||||||||||||||
Expense | Tax Rate | Expense | Tax Rate | |||||||||||||||
Sempra Energy Consolidated | $ | 327 | 30 | % | $ | 48 | 8 | % | ||||||||||
SDG&E | 147 | 33 | 151 | 27 | ||||||||||||||
SoCalGas | 107 | 29 | 105 | 35 | ||||||||||||||
Variable Interest Entity Table | ' | |||||||||||||||||
AMOUNTS ASSOCIATED WITH OTAY MESA VIE | ||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||
Operating revenues | ||||||||||||||||||
Electric | $ | -4 | $ | ― | $ | ― | $ | ― | ||||||||||
Natural gas | ― | ― | ― | ― | ||||||||||||||
Total operating revenues | -4 | ― | ― | ― | ||||||||||||||
Operating expenses | ||||||||||||||||||
Cost of electric fuel and purchased power | -27 | -26 | -65 | -66 | ||||||||||||||
Operation and maintenance | 7 | 4 | 33 | 15 | ||||||||||||||
Depreciation and amortization | 7 | 7 | 20 | 19 | ||||||||||||||
Total operating expenses | -13 | -15 | -12 | -32 | ||||||||||||||
Operating income | 9 | 15 | 12 | 32 | ||||||||||||||
Other loss, net | ― | ― | ― | -1 | ||||||||||||||
Interest expense | -4 | -3 | -11 | -8 | ||||||||||||||
Income before income taxes/Net income | 5 | 12 | 1 | 23 | ||||||||||||||
Earnings attributable to noncontrolling interest | -5 | -12 | -1 | -23 | ||||||||||||||
Earnings | $ | ― | $ | ― | $ | ― | $ | ― | ||||||||||
Ownership Interests Held By Others Table | ' | |||||||||||||||||
OTHER NONCONTROLLING INTERESTS | ||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||
Percent Ownership Held by Others | 30-Sep-13 | 31-Dec-12 | ||||||||||||||||
SDG&E: | ||||||||||||||||||
Otay Mesa VIE | 100 | % | $ | 79 | $ | 76 | ||||||||||||
Sempra South American Utilities: | ||||||||||||||||||
Chilquinta Energía subsidiaries(1) | 24.4 – 43.4 | 27 | 29 | |||||||||||||||
Luz del Sur | 20.2 | 222 | 236 | |||||||||||||||
Tecsur | 9.8 | 3 | 4 | |||||||||||||||
Sempra Mexico: | ||||||||||||||||||
IEnova, S.A.B. de C.V. | 18.9 | 457 | ― | |||||||||||||||
Sempra Natural Gas: | ||||||||||||||||||
Bay Gas Storage, Ltd. | 9.1 | 21 | 20 | |||||||||||||||
Liberty Gas Storage, LLC | 25 | 15 | 15 | |||||||||||||||
Southern Gas Transmission Company | 49 | 1 | 1 | |||||||||||||||
Total Sempra Energy | $ | 825 | $ | 381 | ||||||||||||||
-1 | Chilquinta Energía has four subsidiaries with noncontrolling interests held by others. Percentage range reflects the highest and lowest ownership percentages amongst these subsidiaries. | |||||||||||||||||
Inventory Table | ' | |||||||||||||||||
INVENTORY BALANCES | ||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||
Natural Gas | Liquefied Natural Gas | Materials and Supplies | Total | |||||||||||||||
30-Sep-13 | 31-Dec-12 | 30-Sep-13 | 31-Dec-12 | 30-Sep-13 | 31-Dec-12 | 30-Sep-13 | 31-Dec-12 | |||||||||||
SDG&E | $ | 5 | $ | 3 | $ | ― | $ | ― | $ | 73 | $ | 79 | $ | 78 | $ | 82 | ||
SoCalGas | 150 | 128 | ― | ― | 27 | 23 | 177 | 151 | ||||||||||
Sempra South American | ||||||||||||||||||
Utilities | ― | ― | ― | ― | 43 | 34 | 43 | 34 | ||||||||||
Sempra Mexico | ― | ― | 3 | 8 | 16 | 8 | 19 | 16 | ||||||||||
Sempra Renewables | ― | ― | ― | ― | 2 | 3 | 2 | 3 | ||||||||||
Sempra Natural Gas | 133 | 109 | 5 | 8 | 6 | 5 | 144 | 122 | ||||||||||
Sempra Energy | ||||||||||||||||||
Consolidated | $ | 288 | $ | 240 | $ | 8 | $ | 16 | $ | 167 | $ | 152 | $ | 463 | $ | 408 | ||
Asset Retirement Obligations Table | ' | |||||||||||||||||
CHANGES IN ASSET RETIREMENT OBLIGATIONS | ||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||
Sempra Energy | ||||||||||||||||||
Consolidated | SDG&E | SoCalGas | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||
Balance at January 1(1) | $ | 2,056 | $ | 1,925 | $ | 741 | $ | 698 | $ | 1,253 | $ | 1,175 | ||||||
Accretion expense | 74 | 69 | 35 | 31 | 37 | 36 | ||||||||||||
Liabilities incurred | 4 | 15 | ― | ― | ― | ― | ||||||||||||
Payments | -1 | -1 | ― | ― | ― | ― | ||||||||||||
Revisions, GRC-related(2) | -135 | -8 | -30 | ― | -105 | ― | ||||||||||||
Revisions, other(3) | 181 | ― | 207 | ― | ― | ― | ||||||||||||
Balance at September 30(1) | $ | 2,179 | $ | 2,000 | $ | 953 | $ | 729 | $ | 1,185 | $ | 1,211 | ||||||
-1 | The current portions of the obligations are included in Other Current Liabilities on the Condensed Consolidated Balance Sheets. | |||||||||||||||||
-2 | The decreases in asset retirement obligations in 2013 at SDG&E and SoCalGas are due to revised estimates related to the 2012 General Rate Case (GRC) that received final approval in May 2013. At SDG&E, these revisions included increases in asset service lives ranging from 2 percent to 7 percent, and lower estimated cost of removal. At SoCalGas, the decrease includes increases in asset service lives ranging from 4 percent to 6 percent, partially offset by a higher estimated cost of removal. | |||||||||||||||||
-3 | The increase in asset retirement obligations in 2013 at SDG&E is due to revised estimates recorded in the third quarter of 2013 related to the early decommissioning of SONGS Units 2 and 3 (see Note 9). |
DERIVATIVE_FINANCIAL_INSTRUMEN1
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 3 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Derivative Financial Instruments (Tables) [Abstract] | ' | |||||||||||
Commodity Derivative Volumes Table | ' | |||||||||||
NET ENERGY DERIVATIVE VOLUMES | ||||||||||||
Segment and Commodity | 30-Sep-13 | 31-Dec-12 | ||||||||||
California Utilities: | ||||||||||||
SDG&E: | ||||||||||||
Natural gas | 34 million MMBtu | 25 million MMBtu | -1 | |||||||||
Congestion revenue rights | 27 million MWh | 30 million MWh | -2 | |||||||||
Energy-Related Businesses: | ||||||||||||
Sempra Natural Gas: | ||||||||||||
Electric power | 2 million MWh | 1 million MWh | ||||||||||
Natural gas | 46 million MMBtu | 36 million MMBtu | ||||||||||
Sempra Mexico - natural gas | ― | 1 million MMBtu | ||||||||||
-1 | Million British thermal units | |||||||||||
-2 | Megawatt hours | |||||||||||
Notional Amounts of Interest Rate Derivatives Table | ' | |||||||||||
INTEREST RATE DERIVATIVES | ||||||||||||
(Dollars in millions) | ||||||||||||
30-Sep-13 | 31-Dec-12 | |||||||||||
Notional Debt | Maturities | Notional Debt | Maturities | |||||||||
Sempra Energy Consolidated: | ||||||||||||
Cash flow hedges(1) | $ | 419 | 2013-2028 | $ | 439 | 2013-2028 | ||||||
Fair value hedges | 500 | 2013-2016 | 500 | 2013-2016 | ||||||||
SDG&E: | ||||||||||||
Cash flow hedge(1) | 337 | 2019 | 345 | 2019 | ||||||||
-1 | Includes Otay Mesa VIE. All of SDG&E’s interest rate derivatives relate to Otay Mesa VIE. | |||||||||||
Derivative Instruments on the Condensed Consolidated Balance Sheets Table | ' | |||||||||||
DERIVATIVE INSTRUMENTS ON THE CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||||||
(Dollars in millions) | ||||||||||||
30-Sep-13 | ||||||||||||
Deferred | ||||||||||||
credits | ||||||||||||
Current | Current | and other | ||||||||||
assets: | liabilities: | liabilities: | ||||||||||
Fixed-price | Investments | Fixed-price | Fixed-price | |||||||||
contracts | and other | contracts | contracts | |||||||||
and other | assets: | and other | and other | |||||||||
derivatives(1) | Sundry | derivatives(2) | derivatives | |||||||||
Sempra Energy Consolidated: | ||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||
Interest rate and foreign exchange instruments(3) | $ | 15 | $ | 13 | $ | -19 | $ | -77 | ||||
Commodity contracts not subject to rate recovery | 5 | ― | ― | ― | ||||||||
Derivatives not designated as hedging instruments: | ||||||||||||
Interest rate and foreign exchange instruments | 9 | 26 | -7 | -21 | ||||||||
Commodity contracts not subject to rate recovery: | 67 | 11 | -70 | -10 | ||||||||
Associated offsetting commodity contracts | -55 | -8 | 55 | 8 | ||||||||
Associated offsetting cash collateral | ― | ― | 6 | 1 | ||||||||
Commodity contracts subject to rate recovery: | 6 | 49 | -23 | -8 | ||||||||
Associated offsetting commodity contracts | -2 | -1 | 2 | 1 | ||||||||
Associated offsetting cash collateral | ― | ― | 12 | 1 | ||||||||
Net amounts presented on the balance sheet | 45 | 90 | -44 | -105 | ||||||||
Additional margin posted for commodity contracts | ||||||||||||
not subject to rate recovery | 14 | ― | ― | ― | ||||||||
Additional margin posted for commodity contracts | ||||||||||||
subject to rate recovery | 17 | ― | ― | ― | ||||||||
Total | $ | 76 | $ | 90 | $ | -44 | $ | -105 | ||||
SDG&E: | ||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||
Interest rate instruments(3) | $ | ― | $ | ― | $ | -16 | $ | -43 | ||||
Derivatives not designated as hedging instruments: | ||||||||||||
Commodity contracts subject to rate recovery: | 5 | 49 | -22 | -8 | ||||||||
Associated offsetting commodity contracts | -1 | -1 | 1 | 1 | ||||||||
Associated offsetting cash collateral | ― | ― | 12 | 1 | ||||||||
Net amounts presented on the balance sheet | 4 | 48 | -25 | -49 | ||||||||
Additional margin posted for commodity contracts | ||||||||||||
not subject to rate recovery(4) | 2 | ― | ― | ― | ||||||||
Additional margin posted for commodity contracts | ||||||||||||
subject to rate recovery | 15 | ― | ― | ― | ||||||||
Total | $ | 21 | $ | 48 | $ | -25 | $ | -49 | ||||
SoCalGas: | ||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||
Commodity contracts subject to rate recovery: | $ | 1 | $ | ― | $ | -1 | $ | ― | ||||
Associated offsetting commodity contracts | -1 | ― | 1 | ― | ||||||||
Net amounts presented on the balance sheet | ― | ― | ― | ― | ||||||||
Additional margin posted for commodity contracts | ||||||||||||
not subject to rate recovery(4) | 3 | ― | ― | ― | ||||||||
Additional margin posted for commodity contracts | ||||||||||||
subject to rate recovery | 2 | ― | ― | ― | ||||||||
Total | $ | 5 | $ | ― | $ | ― | $ | ― | ||||
-1 | Included in Current Assets: Other for SoCalGas. | |||||||||||
-2 | Included in Current Liabilities: Other for SoCalGas. | |||||||||||
-3 | Includes Otay Mesa VIE. All of SDG&E’s amounts relate to Otay Mesa VIE. | |||||||||||
-4 | Includes cash collateral not offset related to a negligible amount of commodity contracts not subject to rate recovery. | |||||||||||
DERIVATIVE INSTRUMENTS ON THE CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||||||
(Dollars in millions) | ||||||||||||
31-Dec-12 | ||||||||||||
Deferred | ||||||||||||
credits | ||||||||||||
Current | Current | and other | ||||||||||
assets: | liabilities: | liabilities: | ||||||||||
Fixed-price | Investments | Fixed-price | Fixed-price | |||||||||
contracts | and other | contracts | contracts | |||||||||
and other | assets: | and other | and other | |||||||||
derivatives(1) | Sundry | derivatives(2) | derivatives | |||||||||
Sempra Energy Consolidated: | ||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||
Interest rate instruments(3) | $ | 7 | $ | 12 | $ | -19 | $ | -64 | ||||
Commodity contracts not subject to rate recovery | 1 | ― | ― | ― | ||||||||
Derivatives not designated as hedging instruments: | ||||||||||||
Interest rate instruments | 8 | 40 | -8 | -35 | ||||||||
Commodity contracts not subject to rate recovery: | 117 | 15 | -116 | -27 | ||||||||
Associated offsetting commodity contracts | -102 | -12 | 102 | 12 | ||||||||
Associated offsetting cash collateral | ― | ― | 4 | 7 | ||||||||
Commodity contracts subject to rate recovery: | 30 | 35 | -35 | -1 | ||||||||
Associated offsetting commodity contracts | -4 | ― | 4 | ― | ||||||||
Associated offsetting cash collateral | ― | ― | 22 | 1 | ||||||||
Net amounts presented on the balance sheet | 57 | 90 | -46 | -107 | ||||||||
Additional margin posted for commodity contracts | ||||||||||||
not subject to rate recovery | 22 | ― | ― | ― | ||||||||
Additional margin posted for commodity contracts | ||||||||||||
subject to rate recovery | 13 | ― | ― | ― | ||||||||
Total | $ | 92 | $ | 90 | $ | -46 | $ | -107 | ||||
SDG&E: | ||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||
Interest rate instruments(3) | $ | ― | $ | ― | $ | -17 | $ | -64 | ||||
Derivatives not designated as hedging instruments: | ||||||||||||
Commodity contracts subject to rate recovery: | 28 | 35 | -33 | -1 | ||||||||
Associated offsetting commodity contracts | -3 | ― | 3 | ― | ||||||||
Associated offsetting cash collateral | ― | ― | 22 | 1 | ||||||||
Net amounts presented on the balance sheet | 25 | 35 | -25 | -64 | ||||||||
Additional margin posted for commodity contracts | ||||||||||||
not subject to rate recovery(4) | 1 | ― | ― | ― | ||||||||
Additional margin posted for commodity contracts | ||||||||||||
subject to rate recovery | 12 | ― | ― | ― | ||||||||
Total | $ | 38 | $ | 35 | $ | -25 | $ | -64 | ||||
SoCalGas: | ||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||
Commodity contracts subject to rate recovery: | $ | 2 | $ | ― | $ | -2 | $ | ― | ||||
Associated offsetting commodity contracts | -1 | ― | 1 | ― | ||||||||
Net amounts presented on the balance sheet | 1 | ― | -1 | ― | ||||||||
Additional margin posted for commodity contracts | ||||||||||||
not subject to rate recovery(4) | 2 | ― | ― | ― | ||||||||
Additional margin posted for commodity contracts | ||||||||||||
subject to rate recovery | 1 | ― | ― | ― | ||||||||
Total | $ | 4 | $ | ― | $ | -1 | $ | ― | ||||
-1 | Included in Current Assets: Other for SoCalGas. | |||||||||||
-2 | Included in Current Liabilities: Other for SoCalGas. | |||||||||||
-3 | Includes Otay Mesa VIE. All of SDG&E’s amounts relate to Otay Mesa VIE. | |||||||||||
-4 | Includes cash collateral not offset related to a negligible amount of commodity contracts not subject to rate recovery. | |||||||||||
Fair Value Hedge Impact on the Condensed Consolidated Statements of Operations Table | ' | |||||||||||
FAIR VALUE HEDGE IMPACT ON THE CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||
(Dollars in millions) | ||||||||||||
Gain on derivatives recognized in earnings | Gain (loss) on derivatives recognized in earnings | |||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||
Location | 2013 | 2012 | 2013 | 2012 | ||||||||
Sempra Energy Consolidated: | ||||||||||||
Interest rate instruments | Interest Expense | $ | 2 | $ | 1 | $ | 6 | $ | 5 | |||
Interest rate instruments | Other Income, Net | 1 | 4 | -4 | 6 | |||||||
Total(1) | $ | 3 | $ | 5 | $ | 2 | $ | 11 | ||||
-1 | There has been no hedge ineffectiveness on these swaps. Changes in the fair values of the interest rate swap agreements are exactly offset by changes in the fair value of the underlying long-term debt. | |||||||||||
Cash Flow Hedge Impact on the Condensed Consolidated Statements of Operations Table | ' | |||||||||||
CASH FLOW HEDGE IMPACT ON THE CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||
(Dollars in millions) | ||||||||||||
Pretax gain (loss) recognized | Gain (loss) reclassified from AOCI | |||||||||||
in OCI (effective portion) | into earnings (effective portion) | |||||||||||
Three months ended September 30, | Three months ended September 30, | |||||||||||
2013 | 2012 | Location | 2013 | 2012 | ||||||||
Sempra Energy Consolidated: | ||||||||||||
Interest rate and foreign | ||||||||||||
exchange instruments(1) | $ | -8 | $ | -6 | Interest Expense | $ | -3 | $ | -3 | |||
Equity Earnings (Losses), | ||||||||||||
Interest rate instruments | -3 | -6 | Before Income Tax | -3 | -4 | |||||||
Commodity contracts not subject | Cost of Natural Gas, Electric | |||||||||||
to rate recovery | 1 | -3 | Fuel and Purchased Power | ― | ― | |||||||
Total | $ | -10 | $ | -15 | $ | -6 | $ | -7 | ||||
SDG&E: | ||||||||||||
Interest rate instruments(1) | $ | -3 | $ | -6 | Interest Expense | $ | -2 | $ | -2 | |||
SoCalGas: | ||||||||||||
Interest rate instruments | $ | ― | $ | ― | Interest Expense | $ | ― | $ | -1 | |||
Nine months ended September 30, | Nine months ended September 30, | |||||||||||
2013 | 2012 | Location | 2013 | 2012 | ||||||||
Sempra Energy Consolidated: | ||||||||||||
Interest rate and foreign | ||||||||||||
exchange instruments(1) | $ | -3 | $ | -21 | Interest Expense | $ | -9 | $ | -5 | |||
Equity Earnings (Losses), | ||||||||||||
Interest rate instruments | 11 | -12 | Before Income Tax | -7 | -4 | |||||||
Commodity contracts not subject | Cost of Natural Gas, Electric | |||||||||||
to rate recovery | 5 | -3 | Fuel and Purchased Power | 5 | ― | |||||||
Total | $ | 13 | $ | -36 | $ | -11 | $ | -9 | ||||
SDG&E: | ||||||||||||
Interest rate instruments(1) | $ | 8 | $ | -16 | Interest Expense | $ | -6 | $ | -3 | |||
SoCalGas: | ||||||||||||
Interest rate instruments | $ | ― | $ | ― | Interest Expense | $ | -1 | $ | -2 | |||
-1 | Amounts include Otay Mesa VIE. All of SDG&E’s interest rate derivative activity relates to Otay Mesa VIE; there has been a negligible amount of ineffectiveness related to these swaps. | |||||||||||
Undesignated Derivative Impact on the Condensed Consolidated Statements of Operations Table | ' | |||||||||||
UNDESIGNATED DERIVATIVE IMPACT ON THE CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||
(Dollars in millions) | ||||||||||||
Gain (loss) on derivatives recognized in earnings | ||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||
Location | 2013 | 2012 | 2013 | 2012 | ||||||||
Sempra Energy Consolidated: | ||||||||||||
Interest rate and foreign exchange | ||||||||||||
instruments | Other Income, Net | $ | 4 | $ | 1 | $ | 17 | $ | 11 | |||
Foreign exchange instruments | Equity Earnings, | |||||||||||
Net of Income Tax | ― | ― | -3 | ― | ||||||||
Commodity contracts not subject | Revenues: Energy-Related | |||||||||||
to rate recovery | Businesses | 1 | -5 | 2 | -3 | |||||||
Commodity contracts not subject | ||||||||||||
to rate recovery | Operation and Maintenance | ― | 1 | ― | 1 | |||||||
Commodity contracts subject | Cost of Electric Fuel | |||||||||||
to rate recovery | and Purchased Power | ― | 41 | -9 | 32 | |||||||
Commodity contracts subject | ||||||||||||
to rate recovery | Cost of Natural Gas | 1 | ― | ― | -1 | |||||||
Total | $ | 6 | $ | 38 | $ | 7 | $ | 40 | ||||
SDG&E: | ||||||||||||
Commodity contracts subject | Cost of Electric Fuel | |||||||||||
to rate recovery | and Purchased Power | $ | ― | $ | 41 | $ | -9 | $ | 32 | |||
SoCalGas: | ||||||||||||
Commodity contracts not subject | ||||||||||||
to rate recovery | Operation and Maintenance | $ | ― | $ | 1 | $ | ― | $ | 1 | |||
Commodity contracts subject | ||||||||||||
to rate recovery | Cost of Natural Gas | 1 | ― | ― | -1 | |||||||
Total | $ | 1 | $ | 1 | $ | ― | $ | ― | ||||
FAIR_VALUE_MEASUREMENTS_Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Fair Value Measurements (Tables) [Abstract] | ' | ||||||||||||
Fair Value of Financial Instruments Table | ' | ||||||||||||
FAIR VALUE OF FINANCIAL INSTRUMENTS | |||||||||||||
(Dollars in millions) | |||||||||||||
30-Sep-13 | |||||||||||||
Carrying | Fair Value | ||||||||||||
Amount | Level 1 | Level 2 | Level 3 | Total | |||||||||
Sempra Energy Consolidated: | |||||||||||||
Total long-term debt(1) | $ | 11,750 | $ | ― | $ | 11,818 | $ | 745 | $ | 12,563 | |||
Preferred stock of subsidiary | 20 | ― | 21 | ― | 21 | ||||||||
SDG&E: | |||||||||||||
Total long-term debt(2) | $ | 4,402 | $ | ― | $ | 4,325 | $ | 337 | $ | 4,662 | |||
SoCalGas: | |||||||||||||
Total long-term debt(3) | $ | 1,413 | $ | ― | $ | 1,504 | $ | ― | $ | 1,504 | |||
Preferred stock | 22 | ― | 23 | ― | 23 | ||||||||
31-Dec-12 | |||||||||||||
Carrying | Fair Value | ||||||||||||
Amount | Level 1 | Level 2 | Level 3 | Total | |||||||||
Sempra Energy Consolidated: | |||||||||||||
Investments in affordable housing partnerships(4) | $ | 12 | $ | ― | $ | ― | $ | 36 | $ | 36 | |||
Total long-term debt(1) | 11,873 | ― | 12,287 | 956 | 13,243 | ||||||||
Preferred stock of subsidiaries | 99 | ― | 107 | ― | 107 | ||||||||
SDG&E: | |||||||||||||
Total long-term debt(2) | $ | 4,135 | $ | ― | $ | 4,243 | $ | 345 | $ | 4,588 | |||
Contingently redeemable preferred stock (5) | 79 | ― | 85 | ― | 85 | ||||||||
SoCalGas: | |||||||||||||
Total long-term debt(3) | $ | 1,413 | $ | ― | $ | 1,599 | $ | ― | $ | 1,599 | |||
Preferred stock | 22 | ― | 24 | ― | 24 | ||||||||
-1 | Before reductions for unamortized discount (net of premium) of $15 million at September 30, 2013 and $16 million at December 31, 2012, and excluding capital leases of $184 million at September 30, 2013 and $189 million at December 31, 2012, and commercial paper classified as long-term debt of $300 million at December 31, 2012. We discuss our long-term debt in Note 6 above and in Note 5 of the Notes to Consolidated Financial Statements in the Annual Report. | ||||||||||||
-2 | Before reductions for unamortized discount of $11 million at September 30, 2013 and $12 million at December 31, 2012, and excluding capital leases of $181 million at September 30, 2013 and $185 million at December 31, 2012. | ||||||||||||
-3 | Before reductions for unamortized discount of $4 million at both September 30, 2013 and December 31, 2012, and excluding capital leases of $2 million at September 30, 2013 and $4 million at December 31, 2012. | ||||||||||||
-4 | Investments in affordable housing partnerships at Parent and Other. | ||||||||||||
-5 | On September 30, 2013, SDG&E announced that it would redeem all outstanding shares of its contingently redeemable preferred stock on October 15, 2013 for $82 million. See Note 5 for additional details. | ||||||||||||
Nuclear Decommissioning Trusts Table | ' | ||||||||||||
NUCLEAR DECOMMISSIONING TRUSTS | |||||||||||||
(Dollars in millions) | |||||||||||||
Gross | Gross | Estimated | |||||||||||
Unrealized | Unrealized | Fair | |||||||||||
Cost | Gains | Losses | Value | ||||||||||
As of September 30, 2013: | |||||||||||||
Debt securities: | |||||||||||||
Debt securities issued by the U.S. Treasury and other | |||||||||||||
U.S. government corporations and agencies(1) | $ | 130 | $ | 4 | $ | -1 | $ | 133 | |||||
Municipal bonds(2) | 102 | 3 | -1 | 104 | |||||||||
Other securities(3) | 135 | 3 | -4 | 134 | |||||||||
Total debt securities | 367 | 10 | -6 | 371 | |||||||||
Equity securities | 231 | 370 | -2 | 599 | |||||||||
Cash and cash equivalents | 11 | ― | ― | 11 | |||||||||
Total | $ | 609 | $ | 380 | $ | -8 | $ | 981 | |||||
As of December 31, 2012: | |||||||||||||
Debt securities: | |||||||||||||
Debt securities issued by the U.S. Treasury and other | |||||||||||||
U.S. government corporations and agencies | $ | 147 | $ | 9 | $ | ― | $ | 156 | |||||
Municipal bonds | 57 | 6 | ― | 63 | |||||||||
Other securities | 121 | 10 | -1 | 130 | |||||||||
Total debt securities | 325 | 25 | -1 | 349 | |||||||||
Equity securities | 249 | 292 | -2 | 539 | |||||||||
Cash and cash equivalents | 20 | ― | ― | 20 | |||||||||
Total | $ | 594 | $ | 317 | $ | -3 | $ | 908 | |||||
-1 | Maturity dates are 2014-2056. | ||||||||||||
-2 | Maturity dates are 2014-2062. | ||||||||||||
-3 | Maturity dates are 2013-2111. | ||||||||||||
Sales of Securities Table | ' | ||||||||||||
SALES OF SECURITIES | |||||||||||||
(Dollars in millions) | |||||||||||||
Three months ended September 30, | Nine months ended September 30, | ||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||
Proceeds from sales | $ | 181 | $ | 204 | $ | 507 | $ | 524 | |||||
Gross realized gains | 2 | 3 | 13 | 12 | |||||||||
Gross realized losses | -8 | -1 | -15 | -6 | |||||||||
Recurring Fair Value Measures Table | ' | ||||||||||||
RECURRING FAIR VALUE MEASURES – SEMPRA ENERGY CONSOLIDATED | |||||||||||||
(Dollars in millions) | |||||||||||||
At fair value as of September 30, 2013 | |||||||||||||
Collateral | |||||||||||||
Level 1 | Level 2 | Level 3 | netted | Total | |||||||||
Assets: | |||||||||||||
Nuclear decommissioning trusts: | |||||||||||||
Equity securities | $ | 599 | $ | ― | $ | ― | $ | ― | $ | 599 | |||
Debt securities: | |||||||||||||
Debt securities issued by the U.S. Treasury and other | |||||||||||||
U.S. government corporations and agencies | 77 | 56 | ― | ― | 133 | ||||||||
Municipal bonds | ― | 104 | ― | ― | 104 | ||||||||
Other securities | ― | 134 | ― | ― | 134 | ||||||||
Total debt securities | 77 | 294 | ― | ― | 371 | ||||||||
Total nuclear decommissioning trusts(1) | 676 | 294 | ― | ― | 970 | ||||||||
Interest rate instruments | ― | 63 | ― | ― | 63 | ||||||||
Commodity contracts subject to rate recovery | 12 | ― | 57 | ― | 69 | ||||||||
Commodity contracts not subject to rate recovery | 22 | 12 | ― | ― | 34 | ||||||||
Total | $ | 710 | $ | 369 | $ | 57 | $ | ― | $ | 1,136 | |||
Liabilities: | |||||||||||||
Interest rate and foreign exchange instruments | $ | ― | $ | 124 | $ | ― | $ | ― | $ | 124 | |||
Commodity contracts subject to rate recovery | 13 | 15 | ― | -13 | 15 | ||||||||
Commodity contracts not subject to rate recovery | 2 | 15 | ― | -7 | 10 | ||||||||
Total | $ | 15 | $ | 154 | $ | ― | $ | -20 | $ | 149 | |||
At fair value as of December 31, 2012 | |||||||||||||
Collateral | |||||||||||||
Level 1 | Level 2 | Level 3 | netted | Total | |||||||||
Assets: | |||||||||||||
Nuclear decommissioning trusts: | |||||||||||||
Equity securities | $ | 539 | $ | ― | $ | ― | $ | ― | $ | 539 | |||
Debt securities: | |||||||||||||
Debt securities issued by the U.S. Treasury and other | |||||||||||||
U.S. government corporations and agencies | 87 | 69 | ― | ― | 156 | ||||||||
Municipal bonds | ― | 63 | ― | ― | 63 | ||||||||
Other securities | ― | 130 | ― | ― | 130 | ||||||||
Total debt securities | 87 | 262 | ― | ― | 349 | ||||||||
Total nuclear decommissioning trusts(1) | 626 | 262 | ― | ― | 888 | ||||||||
Interest rate instruments | ― | 68 | ― | ― | 68 | ||||||||
Commodity contracts subject to rate recovery | 13 | ― | 61 | ― | 74 | ||||||||
Commodity contracts not subject to rate recovery | 28 | 15 | ― | ― | 43 | ||||||||
Investments | 1 | ― | ― | ― | 1 | ||||||||
Total | $ | 668 | $ | 345 | $ | 61 | $ | ― | $ | 1,074 | |||
Liabilities: | |||||||||||||
Interest rate instruments | $ | ― | $ | 126 | $ | ― | $ | ― | $ | 126 | |||
Commodity contracts subject to rate recovery | 23 | 9 | ― | -23 | 9 | ||||||||
Commodity contracts not subject to rate recovery | 6 | 23 | ― | -11 | 18 | ||||||||
Total | $ | 29 | $ | 158 | $ | ― | $ | -34 | $ | 153 | |||
-1 | Excludes cash balances and cash equivalents. | ||||||||||||
RECURRING FAIR VALUE MEASURES – SDG&E | |||||||||||||
(Dollars in millions) | |||||||||||||
At fair value as of September 30, 2013 | |||||||||||||
Collateral | |||||||||||||
Level 1 | Level 2 | Level 3 | netted | Total | |||||||||
Assets: | |||||||||||||
Nuclear decommissioning trusts: | |||||||||||||
Equity securities | $ | 599 | $ | ― | $ | ― | $ | ― | $ | 599 | |||
Debt securities: | |||||||||||||
Debt securities issued by the U.S. Treasury and other | |||||||||||||
U.S. government corporations and agencies | 77 | 56 | ― | ― | 133 | ||||||||
Municipal bonds | ― | 104 | ― | ― | 104 | ||||||||
Other securities | ― | 134 | ― | ― | 134 | ||||||||
Total debt securities | 77 | 294 | ― | ― | 371 | ||||||||
Total nuclear decommissioning trusts(1) | 676 | 294 | ― | ― | 970 | ||||||||
Commodity contracts subject to rate recovery | 10 | ― | 57 | ― | 67 | ||||||||
Commodity contracts not subject to rate recovery | 2 | ― | ― | ― | 2 | ||||||||
Total | $ | 688 | $ | 294 | $ | 57 | $ | ― | $ | 1,039 | |||
Liabilities: | |||||||||||||
Interest rate instruments | $ | ― | $ | 59 | $ | ― | $ | ― | $ | 59 | |||
Commodity contracts subject to rate recovery | 13 | 15 | ― | -13 | 15 | ||||||||
Total | $ | 13 | $ | 74 | $ | ― | $ | -13 | $ | 74 | |||
At fair value as of December 31, 2012 | |||||||||||||
Collateral | |||||||||||||
Level 1 | Level 2 | Level 3 | netted | Total | |||||||||
Assets: | |||||||||||||
Nuclear decommissioning trusts: | |||||||||||||
Equity securities | $ | 539 | $ | ― | $ | ― | $ | ― | $ | 539 | |||
Debt securities: | |||||||||||||
Debt securities issued by the U.S. Treasury and other | |||||||||||||
U.S. government corporations and agencies | 87 | 69 | ― | ― | 156 | ||||||||
Municipal bonds | ― | 63 | ― | ― | 63 | ||||||||
Other securities | ― | 130 | ― | ― | 130 | ||||||||
Total debt securities | 87 | 262 | ― | ― | 349 | ||||||||
Total nuclear decommissioning trusts(1) | 626 | 262 | ― | ― | 888 | ||||||||
Commodity contracts subject to rate recovery | 12 | ― | 61 | ― | 73 | ||||||||
Commodity contracts not subject to rate recovery | 1 | ― | ― | ― | 1 | ||||||||
Total | $ | 639 | $ | 262 | $ | 61 | $ | ― | $ | 962 | |||
Liabilities: | |||||||||||||
Interest rate instruments | $ | ― | $ | 81 | $ | ― | $ | ― | $ | 81 | |||
Commodity contracts subject to rate recovery | 23 | 8 | ― | -23 | 8 | ||||||||
Total | $ | 23 | $ | 89 | $ | ― | $ | -23 | $ | 89 | |||
-1 | Excludes cash balances and cash equivalents. | ||||||||||||
RECURRING FAIR VALUE MEASURES – SOCALGAS | |||||||||||||
(Dollars in millions) | |||||||||||||
At fair value as of September 30, 2013 | |||||||||||||
Collateral | |||||||||||||
Level 1 | Level 2 | Level 3 | netted | Total | |||||||||
Assets: | |||||||||||||
Commodity contracts subject to rate recovery | $ | 2 | $ | ― | $ | ― | $ | ― | $ | 2 | |||
Commodity contracts not subject to rate recovery | 3 | ― | ― | ― | 3 | ||||||||
Total | $ | 5 | $ | ― | $ | ― | $ | ― | $ | 5 | |||
At fair value as of December 31, 2012 | |||||||||||||
Collateral | |||||||||||||
Level 1 | Level 2 | Level 3 | netted | Total | |||||||||
Assets: | |||||||||||||
Commodity contracts subject to rate recovery | $ | 1 | $ | ― | $ | ― | $ | ― | $ | 1 | |||
Commodity contracts not subject to rate recovery | 3 | ― | ― | ― | 3 | ||||||||
Total | $ | 4 | $ | ― | $ | ― | $ | ― | $ | 4 | |||
Liabilities: | |||||||||||||
Commodity contracts subject to rate recovery | $ | ― | $ | 1 | $ | ― | $ | ― | $ | 1 | |||
Total | $ | ― | $ | 1 | $ | ― | $ | ― | $ | 1 | |||
Recurring Fair Value Measures Level 3 Rollforward Table | ' | ||||||||||||
LEVEL 3 RECONCILIATIONS | |||||||||||||
(Dollars in millions) | |||||||||||||
Three months ended September 30, | |||||||||||||
2013 | 2012 | ||||||||||||
Balance at July 1 | $ | 47 | $ | 13 | |||||||||
Realized and unrealized gains | 1 | 16 | |||||||||||
Allocated transmission instruments | 15 | 17 | |||||||||||
Settlements | -6 | -23 | |||||||||||
Balance at September 30 | $ | 57 | $ | 23 | |||||||||
Change in unrealized gains or losses relating to | |||||||||||||
instruments still held at September 30 | $ | 2 | $ | ― | |||||||||
LEVEL 3 RECONCILIATIONS | |||||||||||||
(Dollars in millions) | |||||||||||||
Nine months ended September 30, | |||||||||||||
2013 | 2012 | ||||||||||||
Balance at January 1 | $ | 61 | $ | 23 | |||||||||
Realized and unrealized (losses) gains | -2 | 23 | |||||||||||
Allocated transmission instruments | 15 | 18 | |||||||||||
Settlements | -17 | -41 | |||||||||||
Balance at September 30 | $ | 57 | $ | 23 | |||||||||
Change in unrealized gains or losses relating to | |||||||||||||
instruments still held at September 30 | $ | 1 | $ | ― |
SEGMENT_INFORMATION_Tables
SEGMENT INFORMATION (Tables) | 3 Months Ended | |||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||
Segment Information (Tables) [Abstract] | ' | |||||||||||||||||
Segment Information Table | ' | |||||||||||||||||
SEGMENT INFORMATION | ||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||
REVENUES | ||||||||||||||||||
SDG&E | $ | 1,063 | 42 | % | $ | 1,092 | 44 | % | $ | 3,066 | 39 | % | $ | 2,706 | 39 | % | ||
SoCalGas | 807 | 32 | 728 | 29 | 2,694 | 34 | 2,328 | 33 | ||||||||||
Sempra South American Utilities | 364 | 14 | 356 | 14 | 1,119 | 14 | 1,061 | 15 | ||||||||||
Sempra Mexico | 188 | 7 | 181 | 7 | 519 | 7 | 435 | 6 | ||||||||||
Sempra Renewables | 25 | 1 | 27 | 1 | 76 | 1 | 49 | 1 | ||||||||||
Sempra Natural Gas | 212 | 8 | 294 | 12 | 683 | 9 | 761 | 11 | ||||||||||
Adjustments and eliminations | ― | ― | ― | ― | -2 | ― | -2 | ― | ||||||||||
Intersegment revenues(1) | -108 | -4 | -171 | -7 | -303 | -4 | -359 | -5 | ||||||||||
Total | $ | 2,551 | 100 | % | $ | 2,507 | 100 | % | $ | 7,852 | 100 | % | $ | 6,979 | 100 | % | ||
INTEREST EXPENSE | ||||||||||||||||||
SDG&E | $ | 50 | $ | 49 | $ | 147 | $ | 124 | ||||||||||
SoCalGas | 17 | 17 | 52 | 51 | ||||||||||||||
Sempra South American Utilities | 8 | 6 | 20 | 22 | ||||||||||||||
Sempra Mexico | ― | 3 | 5 | 6 | ||||||||||||||
Sempra Renewables | 5 | 6 | 22 | 13 | ||||||||||||||
Sempra Natural Gas | 34 | 26 | 80 | 72 | ||||||||||||||
All other | 60 | 62 | 182 | 185 | ||||||||||||||
Intercompany eliminations | -37 | -43 | -95 | -121 | ||||||||||||||
Total | $ | 137 | $ | 126 | $ | 413 | $ | 352 | ||||||||||
INTEREST INCOME | ||||||||||||||||||
SDG&E | $ | ― | $ | ― | $ | 1 | $ | ― | ||||||||||
Sempra South American Utilities | 3 | 3 | 11 | 11 | ||||||||||||||
Sempra Mexico | ― | ― | 1 | 1 | ||||||||||||||
Sempra Renewables | 7 | 2 | 14 | 3 | ||||||||||||||
Sempra Natural Gas | 26 | 15 | 57 | 41 | ||||||||||||||
All other | 2 | 2 | 1 | 1 | ||||||||||||||
Intercompany eliminations | -33 | -17 | -70 | -43 | ||||||||||||||
Total | $ | 5 | $ | 5 | $ | 15 | $ | 14 | ||||||||||
DEPRECIATION AND AMORTIZATION | ||||||||||||||||||
SDG&E | $ | 126 | 44 | % | $ | 128 | 46 | % | $ | 367 | 44 | % | $ | 359 | 45 | % | ||
SoCalGas | 100 | 35 | 91 | 33 | 280 | 34 | 268 | 33 | ||||||||||
Sempra South American Utilities | 14 | 5 | 15 | 5 | 44 | 5 | 42 | 5 | ||||||||||
Sempra Mexico | 16 | 5 | 15 | 5 | 47 | 6 | 46 | 6 | ||||||||||
Sempra Renewables | 5 | 2 | 4 | 1 | 20 | 3 | 10 | 1 | ||||||||||
Sempra Natural Gas | 20 | 7 | 24 | 9 | 60 | 7 | 69 | 9 | ||||||||||
All other | 5 | 2 | 3 | 1 | 10 | 1 | 9 | 1 | ||||||||||
Total | $ | 286 | 100 | % | $ | 280 | 100 | % | $ | 828 | 100 | % | $ | 803 | 100 | % | ||
INCOME TAX EXPENSE (BENEFIT) | ||||||||||||||||||
SDG&E | $ | 84 | $ | 38 | $ | 147 | $ | 151 | ||||||||||
SoCalGas | 38 | 37 | 107 | 105 | ||||||||||||||
Sempra South American Utilities | 16 | 27 | 50 | 57 | ||||||||||||||
Sempra Mexico | 16 | 31 | 44 | 61 | ||||||||||||||
Sempra Renewables | 9 | -12 | -8 | -47 | ||||||||||||||
Sempra Natural Gas | -4 | -45 | 35 | -171 | ||||||||||||||
All other | -42 | -27 | -48 | -108 | ||||||||||||||
Total | $ | 117 | $ | 49 | $ | 327 | $ | 48 | ||||||||||
SEGMENT INFORMATION (Continued) | ||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||
EQUITY EARNINGS (LOSSES) | ||||||||||||||||||
Earnings (losses) recorded before tax: | ||||||||||||||||||
Sempra Renewables | $ | -10 | $ | -6 | $ | -12 | $ | -7 | ||||||||||
Sempra Natural Gas | 13 | -87 | 33 | -366 | ||||||||||||||
All other | ― | -1 | ― | -2 | ||||||||||||||
Total | $ | 3 | $ | -94 | $ | 21 | $ | -375 | ||||||||||
Earnings (losses) recorded net of tax: | ||||||||||||||||||
Sempra South American Utilities | $ | ― | $ | ― | $ | -14 | $ | ― | ||||||||||
Sempra Mexico | 8 | 10 | 27 | 29 | ||||||||||||||
Total | $ | 8 | $ | 10 | $ | 13 | $ | 29 | ||||||||||
EARNINGS (LOSSES) | ||||||||||||||||||
SDG&E(2) | $ | 129 | 44 | % | $ | 174 | 65 | % | $ | 285 | 40 | % | $ | 374 | 66 | % | ||
SoCalGas(3) | 102 | 34 | 71 | 26 | 266 | 37 | 190 | 34 | ||||||||||
Sempra South American Utilities | 39 | 13 | 40 | 15 | 110 | 15 | 118 | 21 | ||||||||||
Sempra Mexico | 39 | 13 | 42 | 16 | 96 | 13 | 122 | 22 | ||||||||||
Sempra Renewables | 37 | 13 | 13 | 5 | 56 | 8 | 47 | 8 | ||||||||||
Sempra Natural Gas | -7 | -2 | -68 | -25 | 55 | 8 | -260 | -46 | ||||||||||
All other | -43 | -15 | -4 | -2 | -149 | -21 | -25 | -5 | ||||||||||
Total | $ | 296 | 100 | % | $ | 268 | 100 | % | $ | 719 | 100 | % | $ | 566 | 100 | % | ||
Nine months ended September 30, | ||||||||||||||||||
2013 | 2012 | |||||||||||||||||
EXPENDITURES FOR PROPERTY PLANT & EQUIPMENT | ||||||||||||||||||
SDG&E | $ | 679 | 38 | % | $ | 998 | 44 | % | ||||||||||
SoCalGas | 521 | 29 | 462 | 21 | ||||||||||||||
Sempra South American Utilities | 120 | 7 | 117 | 5 | ||||||||||||||
Sempra Mexico | 280 | 16 | 13 | 1 | ||||||||||||||
Sempra Renewables | 119 | 7 | 564 | 25 | ||||||||||||||
Sempra Natural Gas | 65 | 3 | 84 | 4 | ||||||||||||||
All other | 1 | ― | 3 | ― | ||||||||||||||
Total | $ | 1,785 | 100 | % | $ | 2,241 | 100 | % | ||||||||||
30-Sep-13 | 31-Dec-12 | |||||||||||||||||
ASSETS | ||||||||||||||||||
SDG&E | $ | 15,275 | 41 | % | $ | 14,744 | 40 | % | ||||||||||
SoCalGas | 9,288 | 25 | 9,071 | 25 | ||||||||||||||
Sempra South American Utilities | 3,492 | 10 | 3,310 | 9 | ||||||||||||||
Sempra Mexico | 3,315 | 9 | 2,591 | 7 | ||||||||||||||
Sempra Renewables | 1,898 | 5 | 2,439 | 7 | ||||||||||||||
Sempra Natural Gas | 7,078 | 19 | 5,145 | 14 | ||||||||||||||
All other | 621 | 2 | 818 | 2 | ||||||||||||||
Intersegment receivables | -4,066 | -11 | -1,619 | -4 | ||||||||||||||
Total | $ | 36,901 | 100 | % | $ | 36,499 | 100 | % | ||||||||||
INVESTMENTS IN EQUITY METHOD INVESTEES | ||||||||||||||||||
Sempra South American Utilities | $ | -2 | $ | ― | ||||||||||||||
Sempra Mexico | 367 | 340 | ||||||||||||||||
Sempra Renewables | 701 | 592 | ||||||||||||||||
Sempra Natural Gas | 330 | 361 | ||||||||||||||||
All other | 76 | 134 | ||||||||||||||||
Total | $ | 1,472 | $ | 1,427 | ||||||||||||||
-1 | Revenues for reportable segments include intersegment revenues of: | |||||||||||||||||
$3 million, $17 million, $23 million and $65 million for the three months ended September 30, 2013; $7 million, $48 million, $68 million and $180 million for the nine months ended September 30, 2013; $3 million, $17 million, $78 million and $73 million for the three months ended September 30, 2012; and $6 million, $48 million, $161 million and $144 million for the nine months ended September 30, 2012 for SDG&E, SoCalGas, Sempra Mexico and Sempra Natural Gas, respectively. | ||||||||||||||||||
-2 | After preferred dividends and call premium on preferred stock. | |||||||||||||||||
-3 | After preferred dividends. |
RECENT_INVESTMENT_ACTIVITY_DET
RECENT INVESTMENT ACTIVITY (DETAILS) (USD $) | 1 Months Ended | 9 Months Ended | |
In Millions, unless otherwise specified | Feb. 28, 2013 | Sep. 30, 2012 | 20-May-12 |
Willmut Gas [Member] | Willmut Gas [Member] | ||
Property, plant and equipment | ' | ' | ' |
Total liabilities | ' | ' | ($10) |
Pro forma revenues | ' | 7 | ' |
Cash consideration (fair value of total consideration) | ' | ' | 19 |
Acquired percentage interest in joint venture | ' | ' | 100.00% |
Proceeds from sale of Mesquite Power plant | 371 | ' | ' |
Gain on sale of Mesquite Power plant | 74 | ' | ' |
Gain on sale of Mesquite Power plant, after tax | $44 | ' | ' |
RECENT_INVESTMENT_ACTIVITY_2_D
RECENT INVESTMENT ACTIVITY 2 (DETAILS) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | |
Mesquite Solar 1 [Member] | ' | |
Deconsolidation of business [Line Items] | ' | |
Proceeds from sale, net of transaction costs | $100 | [1] |
Other assets | -72 | |
Property, plant and equipment, net | -461 | |
Long-term debt including current portion | 297 | |
Other liabilities | 31 | |
Gain on sale of assets | -36 | |
Equity method investments upon deconsolidation | -141 | |
Transaction costs | 3 | |
Ownership percentage in equity method investee | 50.00% | |
Gain on sale of assets, after tax | 22 | |
Proceeds From Divestiture Of Businesses | 103 | |
Copper Mountain Solar 2 [Member] | ' | |
Deconsolidation of business [Line Items] | ' | |
Proceeds from sale, net of transaction costs | 68 | [1] |
Other assets | -30 | |
Property, plant and equipment, net | -266 | |
Long-term debt including current portion | 146 | |
Other liabilities | 19 | |
Gain on sale of assets | -4 | |
Equity method investments upon deconsolidation | -67 | |
Transaction costs | 3 | |
Ownership percentage in equity method investee | 50.00% | |
Gain on sale of assets, after tax | 2 | |
Proceeds From Divestiture Of Businesses | $71 | |
[1] | Transaction costs were $3 million at both Copper Mountain Solar 2 and Mesquite Solar 1. |
INVESTMENTS_IN_UNCONSOLIDATED_1
INVESTMENTS IN UNCONSOLIDATED ENTITIES (Details) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | 9 Months Ended | |||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Jun. 30, 2012 | Sep. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 |
Rockies Express [Member] | Rockies Express [Member] | Sodigas [Member] | Sodigas [Member] | Eletrans [Member] | Eletrans [Member] | ||||||
Investment In Joint Venture Disclosure [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Distributions from RBS Sempra Commodities LLP | ' | $50 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investment in RBS Sempra Commodities LLP | 76 | ' | ' | 76 | ' | ' | ' | ' | ' | ' | ' |
Loss on impairment of investment in Rockies Express | ' | ' | 100 | ' | ' | ' | ' | ' | ' | ' | ' |
Loss on impairment of investment in Rockies Express, after tax | ' | ' | 60 | ' | ' | ' | ' | ' | ' | ' | ' |
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sempra Renewables' Equity Method Investments In Joint Ventures | 5 | ' | 296 | 5 | 296 | ' | ' | ' | ' | ' | ' |
Ownership percentage in equity method investee | ' | ' | ' | ' | ' | ' | 25.00% | ' | 43.00% | 50.00% | 50.00% |
Ownership percentage of minority partner in equity method investee | ' | ' | ' | ' | ' | ' | 25.00% | ' | ' | ' | ' |
Ownership percentage of operating partner in equity method investee | ' | ' | ' | ' | ' | ' | 50.00% | ' | ' | ' | ' |
Equity Method Investment, Other than Temporary Impairment | ' | ' | ' | ' | ' | 300 | ' | 10 | ' | ' | ' |
Equity Method Investment Other Than Temporary Impairment After Tax | ' | ' | ' | ' | ' | 179 | ' | 7 | ' | ' | ' |
Equity Method Investment, Cumulative Foreign Currency Translation Adjustments | 270 | ' | ' | 270 | ' | ' | ' | ' | ' | ' | ' |
Equity Method Investment, Remaining Carrying Value | ' | ' | ' | ' | ' | ' | 330 | ' | ' | ' | ' |
Equity earnings, net of income tax | 8 | ' | 10 | 13 | 29 | ' | ' | ' | ' | 0 | -3 |
Pretax loss on sale of Argentina | ' | -7 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aftertax loss on sale of Argentina | ' | -4 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from sale of Argentina | ' | 13 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accrued Liabilities, Argentina | $250 | ' | ' | $250 | ' | ' | ' | ' | ' | ' | ' |
OTHER_FINANCIAL_DATA_US_TREASU
OTHER FINANCIAL DATA - U.S. TREASURY GRANTS RECEIVABLE (Details) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | ||||
In Millions, unless otherwise specified | Mar. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Jun. 30, 2013 | |
Mesquite Solar 1 [Member] | Copper Mountain Solar 2 [Member] | ||||||
U.S. Treasury Grants Receivable [Line Items] | ' | ' | ' | ' | ' | ' | |
U.S. Treasury grants receivable | ' | $0 | ' | $258 | [1] | ' | ' |
Proceeds From U.S. Treasury Grants | ' | 238 | 0 | ' | 164 | 74 | |
Reduction in tax benefit due to sequestration | 5 | ' | ' | ' | ' | ' | |
Sequestration of U.S. Treasury grants receivable | ' | $23 | $0 | ' | ' | ' | |
[1] | Derived from audited financial statements. |
OTHER_FINANCIAL_DATA_VARIABLE_
OTHER FINANCIAL DATA - VARIABLE INTEREST ENTITIES (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Variable Interest Entities Disclosure [Abstract] | ' | ' | ' | ' | ' |
Equity of variable interest entity | $79 | ' | $79 | ' | $76 |
Secured debt of variable interest entity | 337 | ' | 337 | ' | ' |
Amounts Associated With Variable Interest Entities, Operating Revenues, Electric | -4 | 0 | 0 | 0 | ' |
Amounts Associated With Variable Interest Entities, Operating Revenues, Gas | 0 | 0 | 0 | 0 | ' |
Amounts Associated With Variable Interest Entities, Total Operating Revenues | -4 | 0 | 0 | 0 | ' |
Amounts Associated With Variable Interest Entities, Cost of Electric Fuel And Purchased Power | -27 | -26 | -65 | -66 | ' |
Amounts Associated With Variable Interest Entities, Operation And Maintenance | 7 | 4 | 33 | 15 | ' |
Amounts Associated With Variable Interest Entities, Depreciation And Amortization | 7 | 7 | 20 | 19 | ' |
Amounts Associated With Variable Interest Entities, Total Operating Expenses | -13 | -15 | -12 | -32 | ' |
Amounts Associated With Variable Interest Entities, Operating Income (Loss) | 9 | 15 | 12 | 32 | ' |
Amounts Associated With Variable Interest Entities, Other Income (Expense), Net | 0 | 0 | 0 | -1 | ' |
Amounts Associated With Variable Interest Entities, Interest Expense | -4 | -3 | -11 | -8 | ' |
Amounts Associated With Variable Interest Entities, Net Income (Loss) | 5 | 12 | 1 | 23 | ' |
Amounts Associated With Variable Interest Entities, (Earnings) Losses Attributable Noncontrolling Interests | -5 | -12 | -1 | -23 | ' |
Amounts Associated With Variable Interest Entities, Earnings | $0 | $0 | $0 | $0 | ' |
OTHER_FINANCIAL_DATA_GOODWILL_
OTHER FINANCIAL DATA - GOODWILL (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | |
In Millions, unless otherwise specified | |||
Goodwill [Line Items] | ' | ' | |
Goodwill, Beginning Balance | $1,045 | $1,111 | [1] |
Goodwill, Ending Balance | $1,045 | $1,111 | [1] |
[1] | Derived from audited financial statements. |
OTHER_FINANCIAL_DATA_ASSET_RET
OTHER FINANCIAL DATA - ASSET RETIREMENT OBLIGATIONS (Details) (USD $) | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | ||
Asset Retirement Obligations [Line Items] | ' | ' | ||
Asset Retirement Obligations, Balance as of January 1 | $2,056 | [1] | $1,925 | [1] |
Asset Retirement Obligation, Accretion Expense | 74 | 69 | ||
Asset Retirement Obligation, Liabilities Incurred | 4 | 15 | ||
Asset Retirement Obligation, Payments | -1 | -1 | ||
Asset Retirement Obligation, Revisions, GRC- related | -135 | [2] | -8 | [2] |
Asset Retirement Obligation, Revisions, Other | 181 | [3] | 0 | [3] |
Asset Retirement Obligations, Balance as of September 30 | 2,179 | [1] | 2,000 | [1] |
San Diego Gas and Electric Company and Subsidiary [Member] | ' | ' | ||
Asset Retirement Obligations [Line Items] | ' | ' | ||
Asset Retirement Obligations, Balance as of January 1 | 741 | [1] | 698 | [1] |
Asset Retirement Obligation, Accretion Expense | 35 | 31 | ||
Asset Retirement Obligation, Liabilities Incurred | 0 | 0 | ||
Asset Retirement Obligation, Payments | 0 | 0 | ||
Asset Retirement Obligation, Revisions, GRC- related | -30 | [2] | 0 | [2] |
Asset Retirement Obligation, Revisions, Other | 207 | [3] | 0 | [3] |
Asset Retirement Obligations, Balance as of September 30 | 953 | [1] | 729 | [1] |
Asset Retirement Obligations, Increase in Asset Service Lives, Beginning Rate | 2.00% | ' | ||
Asset Retirement Obligations, Increase in Asset Service Lives, Ending Rate | 7.00% | ' | ||
Southern California Gas Company [Member] | ' | ' | ||
Asset Retirement Obligations [Line Items] | ' | ' | ||
Asset Retirement Obligations, Balance as of January 1 | 1,253 | [1] | 1,175 | [1] |
Asset Retirement Obligation, Accretion Expense | 37 | 36 | ||
Asset Retirement Obligation, Liabilities Incurred | 0 | 0 | ||
Asset Retirement Obligation, Payments | 0 | 0 | ||
Asset Retirement Obligation, Revisions, GRC- related | -105 | [2] | 0 | [2] |
Asset Retirement Obligation, Revisions, Other | 0 | [3] | 0 | [3] |
Asset Retirement Obligations, Balance as of September 30 | $1,185 | [1] | $1,211 | [1] |
Asset Retirement Obligations, Increase in Asset Service Lives, Beginning Rate | 4.00% | ' | ||
Asset Retirement Obligations, Increase in Asset Service Lives, Ending Rate | 6.00% | ' | ||
[1] | The current portions of the obligations are included in Other Current Liabilities on the Condensed Consolidated Balance Sheets. | |||
[2] | The decreases in asset retirement obligations in 2013 at SDG&E and SoCalGas are due to revised estimates related to the 2012 General Rate Case (GRC) that received final approval in May 2013. At SDG&E, these revisions included increases in asset service lives ranging from 2 percent to 7 percent, and lower estimated cost of removal. At SoCalGas, the decrease includes increases in asset service lives ranging from 4 percent to 6 percent, partially offset by a higher estimated cost of removal. | |||
[3] | The increase in asset retirement obligations in 2013 at SDG&E is due to revised estimates recorded in the third quarter of 2013 related to the early decommissioning of SONGS Units 2 and 3 (see Note 9). |
OTHER_FINANCIAL_DATA_PENSION_A
OTHER FINANCIAL DATA - PENSION AND OTHER POSTRETIREMENT BENEFITS (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Pension Benefits | ' | ' | ' | ' |
Net Periodic Benefit Cost | ' | ' | ' | ' |
Service cost | $28 | $23 | $82 | $68 |
Interest cost | 35 | 40 | 111 | 122 |
Expected return on assets | -39 | -38 | -121 | -116 |
Amortization of prior service cost | 1 | 0 | 3 | 2 |
Amortization of actuarial loss | 11 | 12 | 41 | 35 |
Settlement | 1 | 1 | 1 | 8 |
Regulatory adjustment | -14 | 9 | -65 | -9 |
Total net periodic benefit cost | 23 | 47 | 52 | 110 |
Pension and Other Postretirement Benefit Contributions [Abstract] | ' | ' | ' | ' |
Contributions to pension plans | ' | ' | 48 | ' |
Expected contributions to pension and other postretirement benefit plans | 132 | ' | 132 | ' |
Pension Benefits | San Diego Gas and Electric Company and Subsidiary [Member] | ' | ' | ' | ' |
Net Periodic Benefit Cost | ' | ' | ' | ' |
Service cost | 8 | 7 | 24 | 21 |
Interest cost | 9 | 11 | 30 | 34 |
Expected return on assets | -13 | -11 | -39 | -35 |
Amortization of prior service cost | 0 | 0 | 1 | 1 |
Amortization of actuarial loss | 3 | 4 | 10 | 11 |
Settlement | 1 | -1 | 1 | 1 |
Regulatory adjustment | 3 | 7 | -3 | 7 |
Total net periodic benefit cost | 11 | 17 | 24 | 40 |
Pension and Other Postretirement Benefit Contributions [Abstract] | ' | ' | ' | ' |
Contributions to pension plans | ' | ' | 26 | ' |
Expected contributions to pension and other postretirement benefit plans | 53 | ' | 53 | ' |
Pension Benefits | Southern California Gas Company [Member] | ' | ' | ' | ' |
Net Periodic Benefit Cost | ' | ' | ' | ' |
Service cost | 17 | 13 | 50 | 40 |
Interest cost | 22 | 24 | 68 | 74 |
Expected return on assets | -24 | -23 | -73 | -72 |
Amortization of prior service cost | 0 | 0 | 1 | 1 |
Amortization of actuarial loss | 6 | 6 | 23 | 17 |
Settlement | ' | ' | 0 | 1 |
Regulatory adjustment | -17 | 2 | -62 | -16 |
Total net periodic benefit cost | 4 | 22 | 7 | 45 |
Pension and Other Postretirement Benefit Contributions [Abstract] | ' | ' | ' | ' |
Contributions to pension plans | ' | ' | 8 | ' |
Expected contributions to pension and other postretirement benefit plans | 59 | ' | 59 | ' |
Other Postretirement Benefits | ' | ' | ' | ' |
Net Periodic Benefit Cost | ' | ' | ' | ' |
Service cost | 8 | 4 | 21 | 19 |
Interest cost | 10 | 11 | 33 | 39 |
Expected return on assets | -15 | -13 | -44 | -40 |
Amortization of prior service cost | -1 | 0 | -3 | -2 |
Amortization of actuarial loss | 0 | 2 | 5 | 9 |
Settlement | 0 | 0 | 0 | 0 |
Regulatory adjustment | 3 | 3 | 7 | 8 |
Total net periodic benefit cost | 5 | 7 | 19 | 33 |
Pension and Other Postretirement Benefit Contributions [Abstract] | ' | ' | ' | ' |
Contributions to other postretirement benefit plans | ' | ' | 19 | ' |
Expected contributions to pension and other postretirement benefit plans | 23 | ' | 23 | ' |
Other Postretirement Benefits | San Diego Gas and Electric Company and Subsidiary [Member] | ' | ' | ' | ' |
Net Periodic Benefit Cost | ' | ' | ' | ' |
Service cost | 2 | 1 | 6 | 5 |
Interest cost | 2 | 2 | 6 | 6 |
Expected return on assets | -3 | -1 | -7 | -5 |
Amortization of prior service cost | 1 | 1 | 3 | 3 |
Amortization of actuarial loss | 0 | 0 | 0 | 0 |
Settlement | 0 | 0 | 0 | 0 |
Regulatory adjustment | 1 | 1 | 1 | 2 |
Total net periodic benefit cost | 3 | 4 | 9 | 11 |
Pension and Other Postretirement Benefit Contributions [Abstract] | ' | ' | ' | ' |
Contributions to other postretirement benefit plans | ' | ' | 9 | ' |
Expected contributions to pension and other postretirement benefit plans | 12 | ' | 12 | ' |
Other Postretirement Benefits | Southern California Gas Company [Member] | ' | ' | ' | ' |
Net Periodic Benefit Cost | ' | ' | ' | ' |
Service cost | 5 | 2 | 13 | 12 |
Interest cost | 8 | 9 | 26 | 31 |
Expected return on assets | -12 | -10 | -36 | -33 |
Amortization of prior service cost | -2 | -1 | -6 | -5 |
Amortization of actuarial loss | 0 | 1 | 4 | 8 |
Settlement | ' | ' | 0 | 0 |
Regulatory adjustment | 2 | 2 | 6 | 6 |
Total net periodic benefit cost | 1 | 3 | 7 | 19 |
Pension and Other Postretirement Benefit Contributions [Abstract] | ' | ' | ' | ' |
Contributions to other postretirement benefit plans | ' | ' | 7 | ' |
Expected contributions to pension and other postretirement benefit plans | $7 | ' | $7 | ' |
OTHER_FINANCIAL_DATA_RABBI_TRU
OTHER FINANCIAL DATA - RABBI TRUST (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Rabbi Trust Disclosure [Abstract] | ' | ' |
Rabbi Trust | $486 | $510 |
OTHER_FINANCIAL_DATA_EARNINGS_
OTHER FINANCIAL DATA - EARNINGS PER SHARE (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Millions, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Earnings Per Share Numerator [Abstract] | ' | ' | ' | ' | |
Earnings | $296 | $268 | $719 | $566 | |
Earnings Per Share Denominator [Abstract] | ' | ' | ' | ' | |
Weighted-average common shares outstanding for basic EPS | 244,140,000 | 241,689,000 | 243,682,000 | 241,133,000 | |
Dilutive effect of stock options, restricted stock awards and restricted stock units | 5,119,000 | 4,113,000 | 5,041,000 | 3,880,000 | |
Weighted-average common shares outstanding for diluted EPS | 249,259,000 | 245,802,000 | 248,723,000 | 245,013,000 | |
Earnings Per Share [Abstract] | ' | ' | ' | ' | |
Basic earnings per common share | $1.21 | $1.11 | $2.95 | $2.35 | |
Diluted earnings per common share | $1.19 | $1.09 | $2.89 | $2.31 | |
Seventy Fifth Percentile Or Above [Member] | ' | ' | ' | ' | |
Total Shareholder Return Ranking [Line Items] | ' | ' | ' | ' | |
Common Shares Received For Each Restricted Stock Unit | 1.5 | [1] | ' | ' | ' |
Fiftieth Percentile [Member] | ' | ' | ' | ' | |
Total Shareholder Return Ranking [Line Items] | ' | ' | ' | ' | |
Common Shares Received For Each Restricted Stock Unit | 1 | [1] | ' | ' | ' |
Thirty Fifth Percentile Or Below [Member] | ' | ' | ' | ' | |
Total Shareholder Return Ranking [Line Items] | ' | ' | ' | ' | |
Common Shares Received For Each Restricted Stock Unit | 0 | [1] | ' | ' | ' |
Restricted Stock Units [Member] | ' | ' | ' | ' | |
Schedule Of Performance Based Restricted Shares [Line Items] | ' | ' | ' | ' | |
Contractual vesting percentage minimum | 0.00% | ' | ' | ' | |
Contractual vesting percentage maximum | 150.00% | ' | ' | ' | |
Restricted Stock Awards [Member] | ' | ' | ' | ' | |
Schedule Of Performance Based Restricted Shares [Line Items] | ' | ' | ' | ' | |
Contractual vesting percentage minimum | 0.00% | ' | ' | ' | |
Contractual vesting percentage maximum | 100.00% | ' | ' | ' | |
Out Of The Money Stock Options [Member] | ' | ' | ' | ' | |
Antidilutive Securities Excluded From Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' | |
Antidilutive securities excluded from computation of earnings per share | 0 | 0 | 0 | 40,000 | |
Restricted Stock | ' | ' | ' | ' | |
Antidilutive Securities Excluded From Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' | |
Antidilutive securities excluded from computation of earnings per share | 712,941 | 2,349,338 | 889,420 | 2,523,343 | |
Restricted Stock Units | ' | ' | ' | ' | |
Antidilutive Securities Excluded From Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' | |
Antidilutive securities excluded from computation of earnings per share | 0 | 3,387 | 0 | 1,881 | |
Restricted Stock Awards [Member] | ' | ' | ' | ' | |
Antidilutive Securities Excluded From Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' | |
Antidilutive securities excluded from computation of earnings per share | 0 | 0 | 0 | 14,319 | |
San Diego Gas and Electric Company and Subsidiary [Member] | ' | ' | ' | ' | |
Earnings Per Share Numerator [Abstract] | ' | ' | ' | ' | |
Earnings | 134 | 176 | 292 | 378 | |
Southern California Gas Company [Member] | ' | ' | ' | ' | |
Earnings Per Share Numerator [Abstract] | ' | ' | ' | ' | |
Earnings | $102 | $71 | $267 | $191 | |
[1] | Participants also receive additional shares for dividend equivalents on shares subject to RSUs, which are reinvested to purchase additional units that become subject to the same vesting conditions as the RSUs to which the dividends relate. |
OTHER_FINANCIAL_DATA_PREFERRED
OTHER FINANCIAL DATA - PREFERRED STOCK (Details) (USD $) | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | |
Preferred Stock (Details) [Abstract] | ' | ' | ' |
Preferred stock redeemed | $82,000,000 | $82,000,000 | ' |
Preferred stock redemption price per share, minimum | 20.25 | 20.25 | ' |
Preferred stock redemption price per share, maximum | 26 | 26 | ' |
Accrued preferred stock dividends at redemption date | 1,000,000 | 1,000,000 | ' |
Call premium on preferred stock | $3,000,000 | $3,000,000 | $0 |
OTHER_FINANCIAL_DATA_SHAREBASE
OTHER FINANCIAL DATA - SHARE-BASED COMPENSATION (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' | ' |
Share-based compensation expense, net of income taxes | $6 | $5 | $17 | $18 |
Restricted Stock Awards Granted | ' | ' | 4,617 | ' |
Restricted stock units issued by IEnova | ' | ' | 1,014,899 | ' |
Performance-Based [Member] | ' | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' | ' |
Restricted stock units granted | ' | ' | 651,193 | ' |
Service-Based [Member] | ' | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' | ' |
Restricted stock units granted | ' | ' | 105,680 | ' |
OTHER_FINANCIAL_DATA_CAPITALIZ
OTHER FINANCIAL DATA - CAPITALIZED FINANCING COSTS (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Capitalized Financing Costs Disclosure [Line Items] | ' | ' | ' | ' |
AFUDC related to debt | $6 | $5 | $17 | $32 |
AFUDC related to equiity | 14 | 13 | 44 | 80 |
Other capitalized financing costs | 9 | 13 | 22 | 40 |
Total capitalized financing costs | 29 | 31 | 83 | 152 |
San Diego Gas and Electric Company and Subsidiary [Member] | ' | ' | ' | ' |
Capitalized Financing Costs Disclosure [Line Items] | ' | ' | ' | ' |
AFUDC related to debt | 4 | 3 | 12 | 26 |
AFUDC related to equiity | 10 | 6 | 30 | 61 |
Total capitalized financing costs | 14 | 9 | 42 | 87 |
Southern California Gas Company [Member] | ' | ' | ' | ' |
Capitalized Financing Costs Disclosure [Line Items] | ' | ' | ' | ' |
AFUDC related to debt | 2 | 2 | 5 | 6 |
AFUDC related to equiity | 4 | 7 | 14 | 19 |
Total capitalized financing costs | $6 | $9 | $19 | $25 |
OTHER_FINANCIAL_DATA_COMPREHEN
OTHER FINANCIAL DATA - COMPREHENSIVE INCOME AND EQUITY (Details) | 0 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | |||||||||||||||||||||||||||||||||||||||||
In Millions, except Share data, unless otherwise specified | Mar. 31, 2013 | Mar. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |||||||||
USD ($) | MXN | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Ownership Interests Held By Others, Bay Gas Storage Company [Member] | Ownership Interests Held By Others, Bay Gas Storage Company [Member] | Ownership Interests Held By Others, Southern Gas Transmission [Member] | Ownership Interests Held By Others, Southern Gas Transmission [Member] | Ownership Interests Held By Others, Liberty Gas Storage [Member] | Ownership Interests Held By Others, Liberty Gas Storage [Member] | Ownership Interests Held By Others, Tecsur [Member] | Ownership Interests Held By Others, Tecsur [Member] | Ownership Interests Held By Others, Luz Del Sur [Member] | Ownership Interests Held By Others, Luz Del Sur [Member] | Ownership Interests Held By Others, Chilquinta Energia [Member] | Ownership Interests Held By Others, Chilquinta Energia [Member] | Ownership Interests Held By Others, Otay Mesa VIE [Member] | Ownership Interests Held By Others, Otay Mesa VIE [Member] | Ownership Interests Held By Others IEnova [Member] | Ownership Interests Held By Others IEnova [Member] | San Diego Gas and Electric Company and Subsidiary [Member] | San Diego Gas and Electric Company and Subsidiary [Member] | San Diego Gas and Electric Company and Subsidiary [Member] | San Diego Gas and Electric Company and Subsidiary [Member] | Southern California Gas Company [Member] | Southern California Gas Company [Member] | Southern California Gas Company [Member] | Southern California Gas Company [Member] | Total Shareholders' Equity | Total Shareholders' Equity | Total Shareholders' Equity | Total Shareholders' Equity | Total Shareholders' Equity | Total Shareholders' Equity | Total Shareholders' Equity | Total Shareholders' Equity | Noncontrolling Interests | Noncontrolling Interests | Noncontrolling Interests | Noncontrolling Interests | Noncontrolling Interests | Noncontrolling Interests | Noncontrolling Interests | Noncontrolling Interests | ||||||||||
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | San Diego Gas and Electric Company and Subsidiary [Member] | San Diego Gas and Electric Company and Subsidiary [Member] | San Diego Gas and Electric Company and Subsidiary [Member] | San Diego Gas and Electric Company and Subsidiary [Member] | USD ($) | USD ($) | USD ($) | USD ($) | San Diego Gas and Electric Company and Subsidiary [Member] | San Diego Gas and Electric Company and Subsidiary [Member] | San Diego Gas and Electric Company and Subsidiary [Member] | San Diego Gas and Electric Company and Subsidiary [Member] | |||||||||||||||||
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | |||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive Income And Equity Disclosure [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||
Equity, beginning of period | ' | ' | ' | ' | $10,683 | [1] | $10,178 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $4,298 | [1] | $3,841 | ' | ' | $2,235 | [1] | ' | ' | ' | $10,282 | $9,775 | ' | ' | $4,222 | $3,739 | ' | ' | $401 | $403 | ' | ' | $76 | $102 | ||||||
Comprehensive income | ' | ' | 325 | 361 | 921 | 713 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 139 | 184 | 309 | 388 | 102 | 71 | 268 | 192 | 305 | 337 | 888 | 671 | 135 | 176 | 294 | 378 | 20 | 24 | 33 | 42 | 4 | 8 | 15 | 10 | |||||||||
Share-based compensation expense | ' | ' | ' | ' | 30 | 33 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 30 | 33 | ' | ' | ' | ' | ' | ' | 0 | 0 | ' | ' | ' | ' | |||||||||
Call premium on preferred stock of subsidiary | ' | ' | -3 | 0 | -3 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -3 | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | |||||||||
Call premium on preferred stock | ' | ' | -3 | ' | -3 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -3 | 0 | -3 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -3 | ' | ' | ' | ' | ' | ' | ' | 0 | ' | |||||||||
Common stock dividends declared | ' | ' | ' | ' | -460 | -435 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -460 | -435 | ' | ' | ' | ' | ' | ' | 0 | 0 | ' | ' | ' | ' | |||||||||
Preferred dividend requirements | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -2 | -2 | -4 | -4 | 0 | 0 | -1 | -1 | ' | ' | ' | ' | ' | ' | -4 | -4 | ' | ' | ' | ' | ' | ' | 0 | 0 | |||||||||
Preferred dividends of subsidiaries | ' | ' | -2 | -2 | -5 | -5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -2 | -2 | -5 | -5 | ' | ' | ' | ' | 0 | 0 | 0 | ' | ' | ' | ' | ' | |||||||||
Issuance of common stock | ' | ' | ' | ' | 57 | 50 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 57 | 50 | ' | ' | ' | ' | ' | ' | 0 | 0 | ' | ' | ' | ' | |||||||||
Tax benefit related to share-based compensation | ' | ' | ' | ' | 30 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 30 | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | |||||||||
Repurchases of common stock | ' | ' | ' | ' | -45 | -16 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -45 | -16 | ' | ' | ' | ' | ' | ' | 0 | 0 | ' | ' | ' | ' | |||||||||
Common stock released from ESOP | ' | ' | ' | ' | ' | 9 | [2] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9 | [2] | ' | ' | ' | ' | ' | ' | ' | 0 | [2] | ' | ' | ' | ' | ||||||
Sale of noncontrolling interests, net of offering costs | ' | ' | ' | ' | 574 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 135 | ' | ' | ' | ' | ' | ' | ' | 439 | ' | ' | ' | ' | ' | |||||||||
Equity contributed by noncontrolling interests | ' | ' | ' | ' | ' | 5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | 5 | ' | ' | ' | ' | |||||||||
Distributions to noncontrolling interests | ' | ' | ' | ' | -28 | -36 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -12 | -22 | ' | ' | ' | ' | ' | ' | 0 | 0 | ' | ' | 0 | 0 | ' | ' | -28 | -36 | ' | ' | -12 | -22 | |||||||||
Equity, end of period | ' | ' | 11,754 | 10,496 | 11,754 | 10,496 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,588 | 4,203 | 4,588 | 4,203 | 2,452 | ' | 2,452 | ' | 10,909 | 10,082 | 10,909 | 10,082 | 4,509 | 4,113 | 4,509 | 4,113 | 845 | 414 | 845 | 414 | 79 | 90 | 79 | 90 | |||||||||
Ownership Interests Held By Others [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||
Percent of ownership held by others | ' | ' | ' | ' | ' | ' | ' | 9.10% | ' | 49.00% | ' | 25.00% | ' | 9.80% | ' | 20.20% | ' | ' | ' | 100.00% | ' | 18.90% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||
Percent of ownership held by others, minimum | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 24.40% | [3] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Percent of ownership held by others, maximum | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 43.40% | [3] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Amount of ownership interests held by others | ' | ' | 825 | ' | 825 | ' | 381 | 21 | 20 | 1 | 1 | 15 | 15 | 3 | 4 | 222 | 236 | 27 | [3] | 29 | [3] | 79 | 76 | 457 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Sale Of Noncontrolling Interests [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||
Proceeds From Sale Of Noncontrolling Interests Net | $574 | 7,100 | ' | ' | $574 | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||
Common stock shares issued | 218,110,500 | 218,110,500 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||
Share price | $2.75 | 34 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||
Minority interest ownership percentage by parent | 81.10% | 81.10% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||
Foreign currency exchange rate pesos to US dollars | 12.3841 | 12.3841 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||
[1] | Derived from audited financial statements. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
[2] | Employee Stock Ownership Plan | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
[3] | Chilquinta EnergC-a has four subsidiaries with noncontrolling interests held by others. Percentage range reflects the highest and lowest ownership percentages amongst these subsidiaries. |
OTHER_FINANCIAL_DATA_COMPREHEN1
OTHER FINANCIAL DATA - COMPREHENSIVE INCOME AND EQUITY 2 (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 | ||
Changes In Components Of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ||
Component Of Accumulated Other Comprehensive Income Loss, Beginning Balance | ($219) | [1] | ($376) | [1] |
Other Comprehensive Income Before Reclassifications | -1 | [1] | -120 | [1] |
Amounts Reclassified From Accumulated Other Comprehensive Income | 5 | [1] | 281 | [1] |
Net Other Comprehensive Income | 4 | [1] | 161 | [1] |
Component Of Accumulated Other Comprehensive Income Loss, Ending Balance | -215 | [1] | -215 | [1] |
San Diego Gas and Electric Company and Subsidiary [Member] | ' | ' | ||
Changes In Components Of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ||
Component Of Accumulated Other Comprehensive Income Loss, Beginning Balance | -10 | [1] | -11 | [1] |
Amounts Reclassified From Accumulated Other Comprehensive Income | 1 | [1] | 2 | [1] |
Net Other Comprehensive Income | 1 | [1] | 2 | [1] |
Component Of Accumulated Other Comprehensive Income Loss, Ending Balance | -9 | [1] | -9 | [1] |
Southern California Gas Company [Member] | ' | ' | ||
Changes In Components Of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ||
Component Of Accumulated Other Comprehensive Income Loss, Beginning Balance | ' | -18 | [1] | |
Amounts Reclassified From Accumulated Other Comprehensive Income | ' | 1 | [1] | |
Net Other Comprehensive Income | ' | 1 | [1] | |
Component Of Accumulated Other Comprehensive Income Loss, Ending Balance | -17 | [1] | -17 | [1] |
Foreign Currency Translation Adjustments [Member] | ' | ' | ||
Changes In Components Of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ||
Component Of Accumulated Other Comprehensive Income Loss, Beginning Balance | -96 | [1] | -240 | [1] |
Other Comprehensive Income Before Reclassifications | 5 | [1] | -121 | [1] |
Amounts Reclassified From Accumulated Other Comprehensive Income | 0 | [1] | 270 | [1] |
Net Other Comprehensive Income | 5 | [1] | 149 | [1] |
Component Of Accumulated Other Comprehensive Income Loss, Ending Balance | -91 | [1] | -91 | [1] |
Foreign Currency Translation Adjustments [Member] | San Diego Gas and Electric Company and Subsidiary [Member] | ' | ' | ||
Changes In Components Of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ||
Component Of Accumulated Other Comprehensive Income Loss, Beginning Balance | 0 | [1] | 0 | [1] |
Amounts Reclassified From Accumulated Other Comprehensive Income | 0 | [1] | 0 | [1] |
Net Other Comprehensive Income | 0 | [1] | 0 | [1] |
Component Of Accumulated Other Comprehensive Income Loss, Ending Balance | 0 | [1] | 0 | [1] |
Foreign Currency Translation Adjustments [Member] | Southern California Gas Company [Member] | ' | ' | ||
Changes In Components Of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ||
Component Of Accumulated Other Comprehensive Income Loss, Beginning Balance | ' | 0 | [1] | |
Amounts Reclassified From Accumulated Other Comprehensive Income | ' | 0 | [1] | |
Net Other Comprehensive Income | ' | 0 | [1] | |
Component Of Accumulated Other Comprehensive Income Loss, Ending Balance | 0 | [1] | 0 | [1] |
Unamortized Net Actuarial Loss [Member] | ' | ' | ||
Changes In Components Of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ||
Component Of Accumulated Other Comprehensive Income Loss, Beginning Balance | -98 | [1] | -102 | [1] |
Other Comprehensive Income Before Reclassifications | 0 | [1] | 0 | [1] |
Amounts Reclassified From Accumulated Other Comprehensive Income | 3 | [1] | 7 | [1] |
Net Other Comprehensive Income | 3 | [1] | 7 | [1] |
Component Of Accumulated Other Comprehensive Income Loss, Ending Balance | -95 | [1] | -95 | [1] |
Unamortized Net Actuarial Loss [Member] | San Diego Gas and Electric Company and Subsidiary [Member] | ' | ' | ||
Changes In Components Of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ||
Component Of Accumulated Other Comprehensive Income Loss, Beginning Balance | -11 | [1] | -12 | [1] |
Amounts Reclassified From Accumulated Other Comprehensive Income | 1 | [1] | 2 | [1] |
Net Other Comprehensive Income | 1 | [1] | 2 | [1] |
Component Of Accumulated Other Comprehensive Income Loss, Ending Balance | -10 | [1] | -10 | [1] |
Unamortized Net Actuarial Loss [Member] | Southern California Gas Company [Member] | ' | ' | ||
Changes In Components Of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ||
Component Of Accumulated Other Comprehensive Income Loss, Beginning Balance | ' | -4 | [1] | |
Amounts Reclassified From Accumulated Other Comprehensive Income | ' | 0 | [1] | |
Net Other Comprehensive Income | ' | 0 | [1] | |
Component Of Accumulated Other Comprehensive Income Loss, Ending Balance | -4 | [1] | -4 | [1] |
Unamortized Prior Service Credit [Member] | ' | ' | ||
Changes In Components Of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ||
Component Of Accumulated Other Comprehensive Income Loss, Beginning Balance | 1 | [1] | 1 | [1] |
Other Comprehensive Income Before Reclassifications | 0 | [1] | 0 | [1] |
Amounts Reclassified From Accumulated Other Comprehensive Income | 0 | [1] | 0 | [1] |
Net Other Comprehensive Income | 0 | [1] | 0 | [1] |
Component Of Accumulated Other Comprehensive Income Loss, Ending Balance | 1 | [1] | 1 | [1] |
Unamortized Prior Service Credit [Member] | San Diego Gas and Electric Company and Subsidiary [Member] | ' | ' | ||
Changes In Components Of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ||
Component Of Accumulated Other Comprehensive Income Loss, Beginning Balance | 1 | [1] | 1 | [1] |
Amounts Reclassified From Accumulated Other Comprehensive Income | 0 | [1] | 0 | [1] |
Net Other Comprehensive Income | 0 | [1] | 0 | [1] |
Component Of Accumulated Other Comprehensive Income Loss, Ending Balance | 1 | [1] | 1 | [1] |
Unamortized Prior Service Credit [Member] | Southern California Gas Company [Member] | ' | ' | ||
Changes In Components Of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ||
Component Of Accumulated Other Comprehensive Income Loss, Beginning Balance | ' | 1 | [1] | |
Amounts Reclassified From Accumulated Other Comprehensive Income | ' | 0 | [1] | |
Net Other Comprehensive Income | ' | 0 | [1] | |
Component Of Accumulated Other Comprehensive Income Loss, Ending Balance | 1 | [1] | 1 | [1] |
Financial Instrustments [Member] | ' | ' | ||
Changes In Components Of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ||
Component Of Accumulated Other Comprehensive Income Loss, Beginning Balance | -26 | [1] | -35 | [1] |
Other Comprehensive Income Before Reclassifications | -6 | [1] | 1 | [1] |
Amounts Reclassified From Accumulated Other Comprehensive Income | 2 | [1] | 4 | [1] |
Net Other Comprehensive Income | -4 | [1] | 5 | [1] |
Component Of Accumulated Other Comprehensive Income Loss, Ending Balance | -30 | [1] | -30 | [1] |
Financial Instrustments [Member] | San Diego Gas and Electric Company and Subsidiary [Member] | ' | ' | ||
Changes In Components Of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ||
Component Of Accumulated Other Comprehensive Income Loss, Beginning Balance | 0 | [1] | 0 | [1] |
Amounts Reclassified From Accumulated Other Comprehensive Income | 0 | [1] | 0 | [1] |
Net Other Comprehensive Income | 0 | [1] | 0 | [1] |
Component Of Accumulated Other Comprehensive Income Loss, Ending Balance | 0 | [1] | 0 | [1] |
Financial Instrustments [Member] | Southern California Gas Company [Member] | ' | ' | ||
Changes In Components Of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ||
Component Of Accumulated Other Comprehensive Income Loss, Beginning Balance | ' | -15 | [1] | |
Amounts Reclassified From Accumulated Other Comprehensive Income | ' | 1 | [1] | |
Net Other Comprehensive Income | ' | 1 | [1] | |
Component Of Accumulated Other Comprehensive Income Loss, Ending Balance | ($14) | [1] | ($14) | [1] |
[1] | All amounts are net of income tax, if subject to tax, and exclude noncontrolling interests. |
OTHER_FINANCIAL_DATA_COMPREHEN2
OTHER FINANCIAL DATA - COMPREHENSIVE INCOME AND EQUITY 3 (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 | ||
Interest Expense [Member] | Interest Rate Instruments [Member] | ' | ' | ||
Reclassifications From Accumulated Other Comprehensive Income [Line Items] | ' | ' | ||
Amount Reclassified From Accumulated Other Comprehensive Income Loss | $3 | $9 | ||
Interest Expense [Member] | Interest Rate Instruments [Member] | San Diego Gas and Electric Company and Subsidiary [Member] | ' | ' | ||
Reclassifications From Accumulated Other Comprehensive Income [Line Items] | ' | ' | ||
Amount Reclassified From Accumulated Other Comprehensive Income Loss | 2 | 6 | ||
Interest Expense [Member] | Interest Rate Instruments [Member] | Southern California Gas Company [Member] | ' | ' | ||
Reclassifications From Accumulated Other Comprehensive Income [Line Items] | ' | ' | ||
Amount Reclassified From Accumulated Other Comprehensive Income Loss | ' | 1 | ||
Cost of Natural Gas, Electric Fuel and Purchased Power [Member] | Commodity Contracts Not Subject To Rate Recovery [Member] | ' | ' | ||
Reclassifications From Accumulated Other Comprehensive Income [Line Items] | ' | ' | ||
Amount Reclassified From Accumulated Other Comprehensive Income Loss | ' | -5 | ||
Equity Earnings Before Income Tax [Member] | Foreign Currency Translation [Member] | ' | ' | ||
Reclassifications From Accumulated Other Comprehensive Income [Line Items] | ' | ' | ||
Amount Reclassified From Accumulated Other Comprehensive Income Loss | ' | 270 | ||
Equity Earnings Before Income Tax [Member] | Interest Rate Instruments [Member] | ' | ' | ||
Reclassifications From Accumulated Other Comprehensive Income [Line Items] | ' | ' | ||
Amount Reclassified From Accumulated Other Comprehensive Income Loss | 3 | 7 | ||
Income Before Tax [Member] | Interest Rate Instruments [Member] | ' | ' | ||
Reclassifications From Accumulated Other Comprehensive Income [Line Items] | ' | ' | ||
Amount Reclassified From Accumulated Other Comprehensive Income Loss | 6 | 11 | ||
Income Before Tax [Member] | Amortization of Actuarial Loss [Member] | ' | ' | ||
Reclassifications From Accumulated Other Comprehensive Income [Line Items] | ' | ' | ||
Amount Reclassified From Accumulated Other Comprehensive Income Loss | 5 | [1] | 12 | [1] |
Income Before Tax [Member] | Amortization of Actuarial Loss [Member] | San Diego Gas and Electric Company and Subsidiary [Member] | ' | ' | ||
Reclassifications From Accumulated Other Comprehensive Income [Line Items] | ' | ' | ||
Amount Reclassified From Accumulated Other Comprehensive Income Loss | 2 | [1] | 3 | [1] |
Income Tax Expense [Member] | Interest Rate Instruments [Member] | ' | ' | ||
Reclassifications From Accumulated Other Comprehensive Income [Line Items] | ' | ' | ||
Amount Reclassified From Accumulated Other Comprehensive Income Loss | -2 | -1 | ||
Income Tax Expense [Member] | Interest Rate Instruments [Member] | Southern California Gas Company [Member] | ' | ' | ||
Reclassifications From Accumulated Other Comprehensive Income [Line Items] | ' | ' | ||
Amount Reclassified From Accumulated Other Comprehensive Income Loss | ' | 0 | ||
Income Tax Expense [Member] | Amortization of Actuarial Loss [Member] | ' | ' | ||
Reclassifications From Accumulated Other Comprehensive Income [Line Items] | ' | ' | ||
Amount Reclassified From Accumulated Other Comprehensive Income Loss | -2 | [1] | -5 | [1] |
Income Tax Expense [Member] | Amortization of Actuarial Loss [Member] | San Diego Gas and Electric Company and Subsidiary [Member] | ' | ' | ||
Reclassifications From Accumulated Other Comprehensive Income [Line Items] | ' | ' | ||
Amount Reclassified From Accumulated Other Comprehensive Income Loss | -1 | [1] | -1 | [1] |
Income After Tax [Member] | Interest Rate Instruments [Member] | ' | ' | ||
Reclassifications From Accumulated Other Comprehensive Income [Line Items] | ' | ' | ||
Amount Reclassified From Accumulated Other Comprehensive Income Loss | 4 | 10 | ||
Income After Tax [Member] | Interest Rate Instruments [Member] | Southern California Gas Company [Member] | ' | ' | ||
Reclassifications From Accumulated Other Comprehensive Income [Line Items] | ' | ' | ||
Amount Reclassified From Accumulated Other Comprehensive Income Loss | ' | 1 | ||
Income After Tax [Member] | Amortization of Actuarial Loss [Member] | ' | ' | ||
Reclassifications From Accumulated Other Comprehensive Income [Line Items] | ' | ' | ||
Amount Reclassified From Accumulated Other Comprehensive Income Loss | 3 | [1] | 7 | [1] |
Income After Tax [Member] | Amortization of Actuarial Loss [Member] | San Diego Gas and Electric Company and Subsidiary [Member] | ' | ' | ||
Reclassifications From Accumulated Other Comprehensive Income [Line Items] | ' | ' | ||
Amount Reclassified From Accumulated Other Comprehensive Income Loss | 1 | [1] | 2 | [1] |
Earnings Attributable To Noncontrolling Interests [Member] | Interest Rate Instruments [Member] | ' | ' | ||
Reclassifications From Accumulated Other Comprehensive Income [Line Items] | ' | ' | ||
Amount Reclassified From Accumulated Other Comprehensive Income Loss | -2 | -6 | ||
Earnings Attributable To Noncontrolling Interests [Member] | Interest Rate Instruments [Member] | San Diego Gas and Electric Company and Subsidiary [Member] | ' | ' | ||
Reclassifications From Accumulated Other Comprehensive Income [Line Items] | ' | ' | ||
Amount Reclassified From Accumulated Other Comprehensive Income Loss | -2 | -6 | ||
Total [Member] | San Diego Gas and Electric Company and Subsidiary [Member] | ' | ' | ||
Reclassifications From Accumulated Other Comprehensive Income [Line Items] | ' | ' | ||
Amount Reclassified From Accumulated Other Comprehensive Income Loss | 0 | 0 | ||
Total [Member] | Interest Rate Instruments [Member] | ' | ' | ||
Reclassifications From Accumulated Other Comprehensive Income [Line Items] | ' | ' | ||
Amount Reclassified From Accumulated Other Comprehensive Income Loss | $2 | $4 | ||
[1] | Amounts are included in the computation of net periodic benefit cost (see "Pension and Other Postretirement Benefits" above). |
OTHER_FINANCIAL_DATA_COMPREHEN3
OTHER FINANCIAL DATA - COMPREHENSIVE INCOME AND EQUITY 4 (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Income Tax Expense Associated With Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ||||
Other comprehensive income before reclassifications, financial instruments | ($2) | ($3) | $3 | ($8) | ||||
Amounts reclassified from accumulated other comprehensive income, pension and other postretirement benefits | 2 | -7 | 5 | -4 | ||||
Amounts reclassified from accumulated other comprehensive income, financial instruments | 2 | 2 | 1 | 3 | ||||
San Diego Gas and Electric Company and Subsidiary [Member] | ' | ' | ' | ' | ||||
Income Tax Expense Associated With Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ||||
Amounts reclassified from accumulated other comprehensive income, pension and other postretirement benefits | 1 | 0 | 1 | 0 | ||||
Southern California Gas Company [Member] | ' | ' | ' | ' | ||||
Income Tax Expense Associated With Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ||||
Amounts reclassified from accumulated other comprehensive income, financial instruments | 0 | 1 | 0 | 1 | ||||
Total Shareholders' Equity | ' | ' | ' | ' | ||||
Income Tax Expense Associated With Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ||||
Other comprehensive income before reclassifications, financial instruments | -2 | [1] | -3 | [1] | 3 | [1] | -8 | [1] |
Amounts reclassified from accumulated other comprehensive income, pension and other postretirement benefits | 2 | [1] | -7 | [1] | 5 | [1] | -4 | [1] |
Amounts reclassified from accumulated other comprehensive income, financial instruments | 2 | [1] | 2 | [1] | 1 | [1] | 3 | [1] |
Total Shareholders' Equity | San Diego Gas and Electric Company and Subsidiary [Member] | ' | ' | ' | ' | ||||
Income Tax Expense Associated With Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ||||
Amounts reclassified from accumulated other comprehensive income, pension and other postretirement benefits | 1 | [1] | 0 | [1] | 1 | [1] | 0 | [1] |
Total Shareholders' Equity | Southern California Gas Company [Member] | ' | ' | ' | ' | ||||
Income Tax Expense Associated With Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ||||
Amounts reclassified from accumulated other comprehensive income, financial instruments | 0 | [1] | 1 | [1] | 0 | [1] | 1 | [1] |
Noncontrolling Interests | ' | ' | ' | ' | ||||
Income Tax Expense Associated With Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ||||
Other comprehensive income before reclassifications, financial instruments | 0 | 0 | 0 | 0 | ||||
Amounts reclassified from accumulated other comprehensive income, pension and other postretirement benefits | 0 | 0 | 0 | 0 | ||||
Amounts reclassified from accumulated other comprehensive income, financial instruments | 0 | 0 | 0 | 0 | ||||
Noncontrolling Interests | San Diego Gas and Electric Company and Subsidiary [Member] | ' | ' | ' | ' | ||||
Income Tax Expense Associated With Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ||||
Amounts reclassified from accumulated other comprehensive income, pension and other postretirement benefits | 0 | 0 | 0 | 0 | ||||
Noncontrolling Interests | Southern California Gas Company [Member] | ' | ' | ' | ' | ||||
Income Tax Expense Associated With Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ||||
Amounts reclassified from accumulated other comprehensive income, financial instruments | $0 | $0 | $0 | $0 | ||||
[1] | Shareholders' equity of Sempra Energy Consolidated, SDG&E or SoCalGas as indicated in left margin. |
OTHER_FINANCIAL_DATA_TRANSACTI
OTHER FINANCIAL DATA - TRANSACTIONS WITH AFFILIATES (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |||
San Diego Gas and Electric Company and Subsidiary [Member] | ' | ' | ' | ' | ' | |||
Transactions With Affiliates Disclosure [Line Items] | ' | ' | ' | ' | ' | |||
Due from affiliate, current | $1 | ' | $1 | ' | $39 | |||
Due to affiliate, current | 13 | ' | 13 | ' | 19 | |||
Revenues from unconsolidated affiliates | 3 | 2 | 8 | 6 | ' | |||
Southern California Gas Company [Member] | ' | ' | ' | ' | ' | |||
Transactions With Affiliates Disclosure [Line Items] | ' | ' | ' | ' | ' | |||
Due from affiliate, current | 14 | ' | 14 | ' | 24 | |||
Due to affiliate, current | 20 | ' | 20 | ' | 37 | |||
Revenues from unconsolidated affiliates | 17 | 17 | 48 | 48 | ' | |||
Affiliate Of Investee [Member] | Parent Company Member | ' | ' | ' | ' | ' | |||
Transactions With Affiliates Disclosure [Line Items] | ' | ' | ' | ' | ' | |||
Interest rate on due from affiliate, noncurrent | ' | ' | ' | ' | ' | |||
Loan to unconsolidated affiliate, principal | ' | ' | ' | ' | ' | |||
Loan to unconsolidated affiliate, accrued interest | ' | ' | ' | ' | ' | |||
Due to/from Sempra Energy | San Diego Gas and Electric Company and Subsidiary [Member] | ' | ' | ' | ' | ' | |||
Transactions With Affiliates Disclosure [Line Items] | ' | ' | ' | ' | ' | |||
Due to affiliate, current | 11 | ' | 11 | ' | 19 | |||
Income taxes due from (to) Sempra Energy | -2 | [1] | ' | -2 | [1] | ' | 12 | [1] |
Due to/from Sempra Energy | Southern California Gas Company [Member] | ' | ' | ' | ' | ' | |||
Transactions With Affiliates Disclosure [Line Items] | ' | ' | ' | ' | ' | |||
Due from affiliate, current | 12 | ' | 12 | ' | 24 | |||
Income taxes due from (to) Sempra Energy | 130 | [1] | ' | 130 | [1] | ' | 99 | [1] |
Subsidiary Of Common Parent S D G E [Member] | Southern California Gas Company [Member] | ' | ' | ' | ' | ' | |||
Transactions With Affiliates Disclosure [Line Items] | ' | ' | ' | ' | ' | |||
Due from affiliate, current | 2 | ' | 2 | ' | 0 | |||
Due to affiliate, current | 0 | ' | 0 | ' | 37 | |||
Subsdiary Of Common Parent So Cal Gas [Member] | San Diego Gas and Electric Company and Subsidiary [Member] | ' | ' | ' | ' | ' | |||
Transactions With Affiliates Disclosure [Line Items] | ' | ' | ' | ' | ' | |||
Due from affiliate, current | 0 | ' | 0 | ' | 37 | |||
Due to affiliate, current | 2 | ' | 2 | ' | 0 | |||
Subsidiary Of Common Parent Other Affiliates [Member] | San Diego Gas and Electric Company and Subsidiary [Member] | ' | ' | ' | ' | ' | |||
Transactions With Affiliates Disclosure [Line Items] | ' | ' | ' | ' | ' | |||
Due from affiliate, current | 1 | ' | 1 | ' | 2 | |||
Subsidiary Of Common Parent Other Affiliates [Member] | Southern California Gas Company [Member] | ' | ' | ' | ' | ' | |||
Transactions With Affiliates Disclosure [Line Items] | ' | ' | ' | ' | ' | |||
Due to affiliate, current | $20 | ' | $20 | ' | $0 | |||
[1] | SDG&E and SoCalGas are included in the consolidated income tax return of Sempra Energy and are allocated income tax expense from Sempra Energy in an amount equal to that which would result from the companiesb having always filed a separate return. |
OTHER_FINANCIAL_DATA_OTHER_INC
OTHER FINANCIAL DATA - OTHER INCOME (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Component of Other Income, Nonoperating [Line Items] | ' | ' | ' | ' | ||||
Other income (expense), net | $16 | $44 | $79 | $137 | ||||
San Diego Gas and Electric Company and Subsidiary [Member] | ' | ' | ' | ' | ||||
Component of Other Income, Nonoperating [Line Items] | ' | ' | ' | ' | ||||
Other income (expense), net | 10 | 5 | 30 | 59 | ||||
Southern California Gas Company [Member] | ' | ' | ' | ' | ||||
Component of Other Income, Nonoperating [Line Items] | ' | ' | ' | ' | ||||
Other income (expense), net | 2 | 6 | 9 | 14 | ||||
Allowance for Cost of Equity Funds Used During Construction [Member] | ' | ' | ' | ' | ||||
Component of Other Income, Nonoperating [Line Items] | ' | ' | ' | ' | ||||
Other income (expense), net | 14 | 13 | 44 | 80 | ||||
Allowance for Cost of Equity Funds Used During Construction [Member] | San Diego Gas and Electric Company and Subsidiary [Member] | ' | ' | ' | ' | ||||
Component of Other Income, Nonoperating [Line Items] | ' | ' | ' | ' | ||||
Other income (expense), net | 10 | 6 | 30 | 61 | ||||
Allowance for Cost of Equity Funds Used During Construction [Member] | Southern California Gas Company [Member] | ' | ' | ' | ' | ||||
Component of Other Income, Nonoperating [Line Items] | ' | ' | ' | ' | ||||
Other income (expense), net | 4 | 7 | 14 | 19 | ||||
Regulatory Interest, Net [Member] | ' | ' | ' | ' | ||||
Component of Other Income, Nonoperating [Line Items] | ' | ' | ' | ' | ||||
Other income (expense), net | 1 | [1] | 0 | [1] | 3 | [1] | 1 | [1] |
Regulatory Interest, Net [Member] | San Diego Gas and Electric Company and Subsidiary [Member] | ' | ' | ' | ' | ||||
Component of Other Income, Nonoperating [Line Items] | ' | ' | ' | ' | ||||
Other income (expense), net | 1 | [1] | 0 | [1] | 3 | [1] | 1 | [1] |
Gains (losses) on interest rate and foreign exchange instruments [Member] | ' | ' | ' | ' | ||||
Component of Other Income, Nonoperating [Line Items] | ' | ' | ' | ' | ||||
Other income (expense), net | 4 | 1 | 17 | 11 | ||||
Gain (Loss) on Investments [Member] | ' | ' | ' | ' | ||||
Component of Other Income, Nonoperating [Line Items] | ' | ' | ' | ' | ||||
Other income (expense), net | -6 | [2] | 17 | [2] | 16 | [2] | 27 | [2] |
Other Income, Sundry [Member] | ' | ' | ' | ' | ||||
Component of Other Income, Nonoperating [Line Items] | ' | ' | ' | ' | ||||
Other income (expense), net | 3 | 13 | -1 | 18 | ||||
Other Income, Sundry [Member] | San Diego Gas and Electric Company and Subsidiary [Member] | ' | ' | ' | ' | ||||
Component of Other Income, Nonoperating [Line Items] | ' | ' | ' | ' | ||||
Other income (expense), net | -1 | -1 | -3 | -3 | ||||
Other Income, Sundry [Member] | Southern California Gas Company [Member] | ' | ' | ' | ' | ||||
Component of Other Income, Nonoperating [Line Items] | ' | ' | ' | ' | ||||
Other income (expense), net | ($2) | ($1) | ($5) | ($5) | ||||
[1] | Interest on regulatory balancing accounts. | |||||||
[2] | Represents investment (losses) gains on dedicated assets in support of our executive retirement and deferred compensation plans. These amounts are partially offset by corresponding changes in compensation expense related to the plans. |
OTHER_FINANCIAL_DATA_INCOME_TA
OTHER FINANCIAL DATA - INCOME TAXES (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Income Tax Expense And Effective Income Tax Rates Disclosure [Line Items] | ' | ' | ' | ' |
Income tax expense (benefit) | $117 | $49 | $327 | $48 |
Effective income tax rate | 27.00% | 15.00% | 30.00% | 8.00% |
Income tax expense from corporate reorganization related to IEnova IPO | ' | ' | 63 | ' |
Income tax benefit related to life insurance contract holding period | ' | ' | ' | 54 |
Income tax benefit related to repairs deductions for first and second quarters of 2012 | ' | 11 | ' | 0 |
Income tax benefit related to repairs deductions for 2011 and first and second quarters of 2012 | ' | 33 | ' | ' |
San Diego Gas and Electric Company and Subsidiary [Member] | ' | ' | ' | ' |
Income Tax Expense And Effective Income Tax Rates Disclosure [Line Items] | ' | ' | ' | ' |
Income tax expense (benefit) | 84 | 38 | 147 | 151 |
Effective income tax rate | 38.00% | 17.00% | 33.00% | 27.00% |
Income tax benefit related to repairs deductions for first and second quarters of 2012 | ' | 11 | ' | 0 |
Income tax benefit related to repairs deductions for 2011 and first and second quarters of 2012 | ' | 33 | ' | ' |
Southern California Gas Company [Member] | ' | ' | ' | ' |
Income Tax Expense And Effective Income Tax Rates Disclosure [Line Items] | ' | ' | ' | ' |
Income tax expense (benefit) | $38 | $37 | $107 | $105 |
Effective income tax rate | 27.00% | 34.00% | 29.00% | 35.00% |
OTHER_FINANCIAL_DATA_INVENTORY
OTHER FINANCIAL DATA - INVENTORY (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | |
In Millions, unless otherwise specified | |||
Inventory [Line Items] | ' | ' | |
Energy Related Inventory, Natural Gas in Storage | $288 | $240 | |
Energy Related Inventory, Liquefied Natural Gas | 8 | 16 | |
Energy Related Inventory, Materials And Supplies | 167 | 152 | |
Inventory, Total | 463 | 408 | [1] |
S D G E Segment [Member] | ' | ' | |
Inventory [Line Items] | ' | ' | |
Energy Related Inventory, Natural Gas in Storage | 5 | 3 | |
Energy Related Inventory, Liquefied Natural Gas | 0 | 0 | |
Energy Related Inventory, Materials And Supplies | 73 | 79 | |
Inventory, Total | 78 | 82 | |
So Cal Gas Segment [Member] | ' | ' | |
Inventory [Line Items] | ' | ' | |
Energy Related Inventory, Natural Gas in Storage | 150 | 128 | |
Energy Related Inventory, Liquefied Natural Gas | 0 | 0 | |
Energy Related Inventory, Materials And Supplies | 27 | 23 | |
Inventory, Total | 177 | 151 | |
Sempra South American Utilities Segment [Member] | ' | ' | |
Inventory [Line Items] | ' | ' | |
Energy Related Inventory, Natural Gas in Storage | 0 | 0 | |
Energy Related Inventory, Liquefied Natural Gas | 0 | 0 | |
Energy Related Inventory, Materials And Supplies | 43 | 34 | |
Inventory, Total | 43 | 34 | |
Sempra Mexico Segment [Member] | ' | ' | |
Inventory [Line Items] | ' | ' | |
Energy Related Inventory, Natural Gas in Storage | 0 | 0 | |
Energy Related Inventory, Liquefied Natural Gas | 3 | 8 | |
Energy Related Inventory, Materials And Supplies | 16 | 8 | |
Inventory, Total | 19 | 16 | |
Sempra Natural Gas Segment [Member] | ' | ' | |
Inventory [Line Items] | ' | ' | |
Energy Related Inventory, Natural Gas in Storage | 133 | 109 | |
Energy Related Inventory, Liquefied Natural Gas | 5 | 8 | |
Energy Related Inventory, Materials And Supplies | 6 | 5 | |
Inventory, Total | 144 | 122 | |
Sempra Renewables Segment [Member] | ' | ' | |
Inventory [Line Items] | ' | ' | |
Energy Related Inventory, Natural Gas in Storage | 0 | 0 | |
Energy Related Inventory, Liquefied Natural Gas | 0 | 0 | |
Energy Related Inventory, Materials And Supplies | 2 | 3 | |
Inventory, Total | $2 | $3 | |
[1] | Derived from audited financial statements. |
DEBT_AND_CREDIT_FACILITIES_Det
DEBT AND CREDIT FACILITIES (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Jun. 30, 2013 |
In Millions, unless otherwise specified | Line Of Credit Facility, Sempra Energy Consolidated [Member] | Line Of Credit Facility, Sempra Energy Consolidated [Member] | Line Of Credit Facility, Sempra Energy [Member] | Line Of Credit Facility, Sempra Global [Member] | Line Of Credit Facility, Sempra Global [Member] | Line Of Credit Facility, S D G E [Member] | Line Of Credit Facility, So Cal Gas [Member] | Line Of Credit Facility, California Utilities Combined [Member] | Line Of Credit Facility, Copper Mountain Solar 2 [Member] |
Line of Credit Facility [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Committed lines of credit, maximum borrowing capacity | $4,100 | ' | $1,067 | $2,189 | ' | $658 | $658 | $877 | ' |
Committed lines of credit, maximum ratio of indebtedness to total capitalization | ' | ' | 65.00% | 65.00% | ' | 65.00% | 65.00% | ' | ' |
Committed lines of credit, remaining borrowing capacity | 3,600 | ' | ' | ' | ' | 658 | 658 | ' | ' |
Committed lines of credit, capacity for issuance of letters of credit | ' | ' | 635 | ' | ' | ' | ' | 200 | 60 |
Outstanding commercial paper supported by committed lines of credit | ' | ' | ' | 445 | ' | ' | ' | ' | ' |
Other instruments supported by committed lines of credit | ' | ' | 12 | ' | ' | ' | ' | ' | ' |
Weighted average interest rate on total short-term debt outstanding | 1.02% | 0.72% | ' | ' | ' | ' | ' | ' | ' |
Commercial paper noncurrent | ' | ' | ' | ' | $300 | ' | ' | ' | ' |
DEBT_AND_CREDIT_FACILITIES_2_D
DEBT AND CREDIT FACILITIES 2 (Details) (USD $) | Sep. 30, 2013 | Jun. 30, 2013 |
In Millions, unless otherwise specified | ||
Sempra Mexico [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt Proceeds Used For Repayment of Intercompany Debt | ' | $357 |
Other Long Term Debt, Fixed Rate Due 2014 [Member] | Chilquinta Energia [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt Instrument, Face Amount | ' | 306 |
Retired Debt Instrument, Face Amount | 86 | ' |
Retired Debt Instrument, Interest Rate, Stated Percentage | 2.75% | ' |
Other Long Term Debt, Fixed Rate Due 2014 [Member] | San Diego Gas and Electric Company and Subsidiary [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Retired Debt Instrument, Face Amount | 115 | ' |
Retired Debt Instrument, Interest Rate, Stated Percentage | 5.90% | ' |
Other Long Term Debt, Fixed Rate Due 2021 [Member] | San Diego Gas and Electric Company and Subsidiary [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Retired Debt Instrument, Face Amount | 60 | ' |
Retired Debt Instrument, Interest Rate, Stated Percentage | 5.85% | ' |
Other Long Term Debt, Fixed Rate Due 2023 [Member] | San Diego Gas and Electric Company and Subsidiary [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt Instrument, Face Amount | 450 | ' |
Debt Instrument, Interest Rate, Stated Percentage | 3.60% | ' |
Other Long Term Debt, Fixed Rate Due 2023 [Member] | Sempra Mexico [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt Instrument, Interest Rate, Stated Percentage | ' | 6.30% |
Debt Instrument, Interest Rate, After Cross Currency Swap | ' | 4.12% |
Other Long Term Debt, Floating Rate Due 2018 [Member] | Sempra Mexico [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt Instrument, Face Amount | ' | 102 |
Debt Instrument, Interest Rate, Stated Percentage | ' | 2.66% |
Other Long Term Debt, Variable Rate Due May 2023 [Member] | Copper Mountain Solar 2 [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt Instrument, Interest Rate At Period End | ' | 2.81% |
Other Long Term Debt, Due May 2023 [Member] | Copper Mountain Solar 2 [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt Instrument, Maximum Borrowing Amount | ' | 286 |
Debt Instrument, Outstanding Borrowings | ' | $146 |
Other Long Term Debt, Floating to Fixed Rate Due May 2023 [Member] | Copper Mountain Solar 2 [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt Instrument, Interest Rate, After Floating To Fixed Swap | ' | 5.33% |
DEBT_AND_CREDIT_FACILITIES_3_D
DEBT AND CREDIT FACILITIES 3 (Details) (USD $) | 3 Months Ended | 3 Months Ended | 3 Months Ended | |||||
In Millions, unless otherwise specified | Mar. 31, 2013 | Mar. 31, 2013 | Mar. 31, 2013 | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 |
Flat Ridge II [Member] | Flat Ridge II [Member] | Flat Ridge II [Member] | Mehoopany Wind [Member] | Mehoopany Wind [Member] | Mehoopany Wind [Member] | Mesquite Solar 1 [Member] | Copper Mountain 2 [Member] | |
Term Loan, Due June 2023 [Member] | Fixed Rate Note, Due June 2035 [Member] | Term Loan, Due May 2031 [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term debt outstanding | ' | $242 | $110 | ' | ' | $162 | ' | ' |
Proceeds from return of capital | 148 | ' | ' | 13 | 17 | ' | ' | ' |
Liability for guarantee obligation associated with cash flow requirements | 3 | ' | ' | 11 | ' | ' | ' | ' |
Deconsolidation of debt | ' | ' | ' | ' | ' | ' | $297 | $146 |
DERIVATIVE_FINANCIAL_INSTRUMEN2
DERIVATIVE FINANCIAL INSTRUMENTS (Details) | Sep. 30, 2013 | Dec. 31, 2012 | ||
S D G E Segment [Member] | ' | ' | ||
Schedule Of Commodity Derivative Volumes [Line Items] | ' | ' | ||
Commodity derivative volumes, natural gas (in millions of million British thermal units) | 34 | [1] | 25 | [1] |
Commodity derivative volumes, congestion revenue rights (in millions of megawatt hours) | 27 | [2] | 30 | [2] |
Sempra Mexico Segment [Member] | ' | ' | ||
Schedule Of Commodity Derivative Volumes [Line Items] | ' | ' | ||
Commodity derivative volumes, natural gas (in millions of million British thermal units) | 0 | [1] | 1 | [1] |
Sempra Natural Gas Segment [Member] | ' | ' | ||
Schedule Of Commodity Derivative Volumes [Line Items] | ' | ' | ||
Commodity derivative volumes, natural gas (in millions of million British thermal units) | 46 | [1] | 36 | [1] |
Commodity derivative volumes, electric power (in millions of megawatt hours) | 2 | [2] | 1 | [2] |
[1] | Million British thermal units | |||
[2] | Megawatt hours |
DERIVATIVE_FINANCIAL_INSTRUMEN3
DERIVATIVE FINANCIAL INSTRUMENTS 2 (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 | ||
Cash Flow Hedges | ' | ' | ||
Schedule Of Notional Amounts Of Interest Rate Derivatives [Line Items] | ' | ' | ||
Notional Amount of Interest Rate Derivatives | 419 | [1] | 439 | [1] |
Cash Flow Hedges | Maximum [Member] | ' | ' | ||
Schedule Of Notional Amounts Of Interest Rate Derivatives [Line Items] | ' | ' | ||
Maturities of interest rate derivatives | '2028 | [1] | '2028 | [1] |
Cash Flow Hedges | Minimum [Member] | ' | ' | ||
Schedule Of Notional Amounts Of Interest Rate Derivatives [Line Items] | ' | ' | ||
Maturities of interest rate derivatives | '2013 | [1] | '2013 | [1] |
Fair Value Hedges | ' | ' | ||
Schedule Of Notional Amounts Of Interest Rate Derivatives [Line Items] | ' | ' | ||
Notional Amount of Interest Rate Derivatives | 500 | 500 | ||
Fair Value Hedges | Maximum [Member] | ' | ' | ||
Schedule Of Notional Amounts Of Interest Rate Derivatives [Line Items] | ' | ' | ||
Maturities of interest rate derivatives | '2016 | '2016 | ||
Fair Value Hedges | Minimum [Member] | ' | ' | ||
Schedule Of Notional Amounts Of Interest Rate Derivatives [Line Items] | ' | ' | ||
Maturities of interest rate derivatives | '2013 | '2013 | ||
San Diego Gas and Electric Company and Subsidiary [Member] | Cash Flow Hedges | ' | ' | ||
Schedule Of Notional Amounts Of Interest Rate Derivatives [Line Items] | ' | ' | ||
Notional Amount of Interest Rate Derivatives | 337 | [1] | 345 | [1] |
Maturities of interest rate derivatives | '2019 | [1] | '2019 | [1] |
[1] | Includes Otay Mesa VIE. All of SDG&Ebs amounts relate to Otay Mesa VIE. |
DERIVATIVE_FINANCIAL_INSTRUMEN4
DERIVATIVE FINANCIAL INSTRUMENTS 3 (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||
Fixed Price Contracts And Other Derivatives, Current Assets [Member] | ' | ' | ||
Derivative Instruments in Hedges, at Fair Value, Net [Abstract] | ' | ' | ||
Interest rate and foreign exchange instruments | $15 | [1] | $7 | [1] |
Commodity contracts not subject to rate recovery | 5 | 1 | ||
Other Derivatives Not Designated as Hedging Instruments at Fair Value, Net, Total [Abstract] | ' | ' | ||
Interest rate and foreign exchange instruments | 9 | 8 | ||
Commodity contracts not subject to rate recovery | 67 | 117 | ||
Associated offsetting commodity contracts not subject to rate recovery | -55 | -102 | ||
Associated cash collateral commodity contracts not subject to rate recovery | 0 | 0 | ||
Commodity contracts subject to rate recovery | 6 | 30 | ||
Associated cash collateral commodity contracts subject to rate recovery | 0 | 0 | ||
Associated offsetting commodity contracts subject to rate recovery | -2 | -4 | ||
Net amount presented on balance sheet | 45 | 57 | ||
Additional margin posted for commodity contracts not subject to rate recovery | 14 | 22 | ||
Additional margin posted for commodity contracts subject to rate recovery | 17 | 13 | ||
Total | 76 | 92 | ||
Fixed Price Contracts And Other Derivatives, Current Assets [Member] | San Diego Gas and Electric Company and Subsidiary [Member] | ' | ' | ||
Derivative Instruments in Hedges, at Fair Value, Net [Abstract] | ' | ' | ||
Interest rate and foreign exchange instruments | 0 | [1] | 0 | [1] |
Other Derivatives Not Designated as Hedging Instruments at Fair Value, Net, Total [Abstract] | ' | ' | ||
Commodity contracts subject to rate recovery | 5 | 28 | ||
Associated cash collateral commodity contracts subject to rate recovery | 0 | 0 | ||
Associated offsetting commodity contracts subject to rate recovery | -1 | -3 | ||
Net amount presented on balance sheet | 4 | 25 | ||
Additional margin posted for commodity contracts not subject to rate recovery | 2 | [2] | 1 | [2] |
Additional margin posted for commodity contracts subject to rate recovery | 15 | 12 | ||
Total | 21 | 38 | ||
Fixed Price Contracts And Other Derivatives, Current Assets [Member] | Southern California Gas Company [Member] | ' | ' | ||
Other Derivatives Not Designated as Hedging Instruments at Fair Value, Net, Total [Abstract] | ' | ' | ||
Commodity contracts subject to rate recovery | 1 | [3] | 2 | [3] |
Associated offsetting commodity contracts subject to rate recovery | -1 | [3] | -1 | [3] |
Net amount presented on balance sheet | 0 | [3] | 1 | [3] |
Additional margin posted for commodity contracts not subject to rate recovery | 3 | [2],[3] | 2 | [2],[3] |
Additional margin posted for commodity contracts subject to rate recovery | 2 | [3] | 1 | [3] |
Total | 5 | [3] | 4 | [3] |
Fixed Price Contracts And Other Derivatives, Noncurrent Assets [Member] | ' | ' | ||
Derivative Instruments in Hedges, at Fair Value, Net [Abstract] | ' | ' | ||
Interest rate and foreign exchange instruments | 13 | [1] | 12 | [1] |
Commodity contracts not subject to rate recovery | 0 | 0 | ||
Other Derivatives Not Designated as Hedging Instruments at Fair Value, Net, Total [Abstract] | ' | ' | ||
Interest rate and foreign exchange instruments | 26 | 40 | ||
Commodity contracts not subject to rate recovery | 11 | 15 | ||
Associated offsetting commodity contracts not subject to rate recovery | -8 | -12 | ||
Associated cash collateral commodity contracts not subject to rate recovery | 0 | 0 | ||
Commodity contracts subject to rate recovery | 49 | 35 | ||
Associated cash collateral commodity contracts subject to rate recovery | 0 | 0 | ||
Associated offsetting commodity contracts subject to rate recovery | -1 | 0 | ||
Net amount presented on balance sheet | 90 | 90 | ||
Additional margin posted for commodity contracts not subject to rate recovery | 0 | 0 | ||
Additional margin posted for commodity contracts subject to rate recovery | 0 | 0 | ||
Total | 90 | 90 | ||
Fixed Price Contracts And Other Derivatives, Noncurrent Assets [Member] | San Diego Gas and Electric Company and Subsidiary [Member] | ' | ' | ||
Derivative Instruments in Hedges, at Fair Value, Net [Abstract] | ' | ' | ||
Interest rate and foreign exchange instruments | 0 | [1] | 0 | [1] |
Other Derivatives Not Designated as Hedging Instruments at Fair Value, Net, Total [Abstract] | ' | ' | ||
Commodity contracts subject to rate recovery | 49 | 35 | ||
Associated cash collateral commodity contracts subject to rate recovery | 0 | 0 | ||
Associated offsetting commodity contracts subject to rate recovery | -1 | 0 | ||
Net amount presented on balance sheet | 48 | 35 | ||
Additional margin posted for commodity contracts not subject to rate recovery | 0 | [2] | 0 | [2] |
Additional margin posted for commodity contracts subject to rate recovery | 0 | 0 | ||
Total | 48 | 35 | ||
Fixed Price Contracts And Other Derivatives, Noncurrent Assets [Member] | Southern California Gas Company [Member] | ' | ' | ||
Other Derivatives Not Designated as Hedging Instruments at Fair Value, Net, Total [Abstract] | ' | ' | ||
Commodity contracts subject to rate recovery | 0 | 0 | ||
Associated offsetting commodity contracts subject to rate recovery | 0 | 0 | ||
Net amount presented on balance sheet | 0 | 0 | ||
Additional margin posted for commodity contracts not subject to rate recovery | 0 | [2] | 0 | [2] |
Additional margin posted for commodity contracts subject to rate recovery | 0 | 0 | ||
Total | 0 | 0 | ||
Fixed Price Contracts And Other Derivatives, Current Liabilities [Member] | ' | ' | ||
Derivative Instruments in Hedges, at Fair Value, Net [Abstract] | ' | ' | ||
Interest rate and foreign exchange instruments | -19 | [1] | -19 | [1] |
Commodity contracts not subject to rate recovery | 0 | 0 | ||
Other Derivatives Not Designated as Hedging Instruments at Fair Value, Net, Total [Abstract] | ' | ' | ||
Interest rate and foreign exchange instruments | -7 | -8 | ||
Commodity contracts not subject to rate recovery | -70 | -116 | ||
Associated offsetting commodity contracts not subject to rate recovery | 55 | 102 | ||
Associated cash collateral commodity contracts not subject to rate recovery | 6 | 4 | ||
Commodity contracts subject to rate recovery | -23 | -35 | ||
Associated cash collateral commodity contracts subject to rate recovery | 12 | 22 | ||
Associated offsetting commodity contracts subject to rate recovery | 2 | 4 | ||
Net amount presented on balance sheet | -44 | -46 | ||
Additional margin posted for commodity contracts not subject to rate recovery | 0 | 0 | ||
Additional margin posted for commodity contracts subject to rate recovery | 0 | 0 | ||
Total | -44 | -46 | ||
Fixed Price Contracts And Other Derivatives, Current Liabilities [Member] | San Diego Gas and Electric Company and Subsidiary [Member] | ' | ' | ||
Derivative Instruments in Hedges, at Fair Value, Net [Abstract] | ' | ' | ||
Interest rate and foreign exchange instruments | -16 | [1] | -17 | [1] |
Other Derivatives Not Designated as Hedging Instruments at Fair Value, Net, Total [Abstract] | ' | ' | ||
Commodity contracts subject to rate recovery | -22 | -33 | ||
Associated cash collateral commodity contracts subject to rate recovery | 12 | 22 | ||
Associated offsetting commodity contracts subject to rate recovery | 1 | 3 | ||
Net amount presented on balance sheet | -25 | -25 | ||
Additional margin posted for commodity contracts not subject to rate recovery | 0 | [2] | 0 | [2] |
Additional margin posted for commodity contracts subject to rate recovery | 0 | 0 | ||
Total | -25 | -25 | ||
Fixed Price Contracts And Other Derivatives, Current Liabilities [Member] | Southern California Gas Company [Member] | ' | ' | ||
Other Derivatives Not Designated as Hedging Instruments at Fair Value, Net, Total [Abstract] | ' | ' | ||
Commodity contracts subject to rate recovery | -1 | [4] | -2 | [4] |
Associated offsetting commodity contracts subject to rate recovery | 1 | [4] | 1 | [4] |
Net amount presented on balance sheet | 0 | [4] | -1 | [4] |
Additional margin posted for commodity contracts not subject to rate recovery | 0 | [4] | 0 | [2],[4] |
Additional margin posted for commodity contracts subject to rate recovery | 0 | [4] | 0 | [2] |
Total | 0 | [4] | -1 | [4] |
Fixed Price Contracts And Other Derivatives, Noncurrent Liabilities [Member] | ' | ' | ||
Derivative Instruments in Hedges, at Fair Value, Net [Abstract] | ' | ' | ||
Interest rate and foreign exchange instruments | -77 | [1] | -64 | [1] |
Commodity contracts not subject to rate recovery | 0 | 0 | ||
Other Derivatives Not Designated as Hedging Instruments at Fair Value, Net, Total [Abstract] | ' | ' | ||
Interest rate and foreign exchange instruments | -21 | -35 | ||
Commodity contracts not subject to rate recovery | -10 | -27 | ||
Associated offsetting commodity contracts not subject to rate recovery | 8 | 12 | ||
Associated cash collateral commodity contracts not subject to rate recovery | 1 | 7 | ||
Commodity contracts subject to rate recovery | -8 | -1 | ||
Associated cash collateral commodity contracts subject to rate recovery | 1 | 1 | ||
Associated offsetting commodity contracts subject to rate recovery | 1 | 0 | ||
Net amount presented on balance sheet | -105 | -107 | ||
Additional margin posted for commodity contracts not subject to rate recovery | 0 | 0 | ||
Additional margin posted for commodity contracts subject to rate recovery | 0 | 0 | ||
Total | -105 | -107 | ||
Fixed Price Contracts And Other Derivatives, Noncurrent Liabilities [Member] | San Diego Gas and Electric Company and Subsidiary [Member] | ' | ' | ||
Derivative Instruments in Hedges, at Fair Value, Net [Abstract] | ' | ' | ||
Interest rate and foreign exchange instruments | -43 | [1] | -64 | [1] |
Other Derivatives Not Designated as Hedging Instruments at Fair Value, Net, Total [Abstract] | ' | ' | ||
Commodity contracts subject to rate recovery | -8 | -1 | ||
Associated cash collateral commodity contracts subject to rate recovery | 1 | 1 | ||
Associated offsetting commodity contracts subject to rate recovery | 1 | 0 | ||
Net amount presented on balance sheet | -49 | -64 | ||
Additional margin posted for commodity contracts not subject to rate recovery | 0 | [2] | 0 | [2] |
Additional margin posted for commodity contracts subject to rate recovery | 0 | 0 | ||
Total | -49 | -64 | ||
Fixed Price Contracts And Other Derivatives, Noncurrent Liabilities [Member] | Southern California Gas Company [Member] | ' | ' | ||
Other Derivatives Not Designated as Hedging Instruments at Fair Value, Net, Total [Abstract] | ' | ' | ||
Commodity contracts subject to rate recovery | 0 | 0 | ||
Associated offsetting commodity contracts subject to rate recovery | 0 | 0 | ||
Net amount presented on balance sheet | 0 | 0 | ||
Additional margin posted for commodity contracts not subject to rate recovery | 0 | [2] | 0 | [2] |
Additional margin posted for commodity contracts subject to rate recovery | 0 | 0 | ||
Total | $0 | $0 | ||
[1] | Includes Otay Mesa VIE. All of SDG&Ebs amounts relate to Otay Mesa VIE. | |||
[2] | Includes cash collateral not offset related to a negligible amount of commodity contracts not subject to rate recovery. | |||
[3] | Included in Current Assets: Other for SoCalGas. | |||
[4] | Included in Current Liabilities: Other for SoCalGas. |
DERIVATIVE_FINANCIAL_INSTRUMEN5
DERIVATIVE FINANCIAL INSTRUMENTS 4 (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Cash Flow Hedges | ' | ' | ' | ' | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ||||
Amount of pretax gain (loss) on derivative recognized in OCI (effective portion) | ($10) | ($15) | $13 | ($36) | ||||
Gain (loss) reclassified from AOCI into earnings (effective portion) | -6 | -7 | -11 | -9 | ||||
Cash Flow Hedges | Interest Expense | Interest Rate And Foreign Exchange Instruments [Member] | ' | ' | ' | ' | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ||||
Amount of pretax gain (loss) on derivative recognized in OCI (effective portion) | -8 | [1] | -6 | [1] | -3 | [1] | -21 | [1] |
Gain (loss) reclassified from AOCI into earnings (effective portion) | -3 | [1] | -3 | [1] | -9 | [1] | -5 | [1] |
Cash Flow Hedges | Interest Expense | Interest Rate Instruments | San Diego Gas and Electric Company and Subsidiary [Member] | ' | ' | ' | ' | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ||||
Amount of pretax gain (loss) on derivative recognized in OCI (effective portion) | -3 | [1] | -6 | [1] | 8 | [1] | -16 | [1] |
Gain (loss) reclassified from AOCI into earnings (effective portion) | -2 | [1] | -2 | [1] | -6 | [1] | -3 | [1] |
Cash Flow Hedges | Interest Expense | Interest Rate Instruments | Southern California Gas Company [Member] | ' | ' | ' | ' | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ||||
Amount of pretax gain (loss) on derivative recognized in OCI (effective portion) | 0 | 0 | 0 | 0 | ||||
Gain (loss) reclassified from AOCI into earnings (effective portion) | 0 | -1 | -1 | -2 | ||||
Cash Flow Hedges | Equity Earnings Before Income Tax [Member] | Interest Rate Instruments | ' | ' | ' | ' | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ||||
Amount of pretax gain (loss) on derivative recognized in OCI (effective portion) | -3 | -6 | 11 | -12 | ||||
Gain (loss) reclassified from AOCI into earnings (effective portion) | -3 | -4 | -7 | -4 | ||||
Cash Flow Hedges | Cost of Natural Gas, Electric Fuel and Purchased Power [Member] | Commodity Contracts Not Subject To Rate Recovery | ' | ' | ' | ' | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ||||
Amount of pretax gain (loss) on derivative recognized in OCI (effective portion) | 1 | -3 | 5 | -3 | ||||
Gain (loss) reclassified from AOCI into earnings (effective portion) | 0 | 0 | 5 | 0 | ||||
Fair Value Hedges | ' | ' | ' | ' | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ||||
Gain (loss) on derivative recognized in earnings | 3 | [2] | 5 | [2] | 2 | [2] | 11 | [2] |
Fair Value Hedges | Interest Expense | Interest Rate Instruments | ' | ' | ' | ' | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ||||
Gain (loss) on derivative recognized in earnings | 2 | 1 | 6 | 5 | ||||
Fair Value Hedges | Other Income, Net | Interest Rate Instruments | ' | ' | ' | ' | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ||||
Gain (loss) on derivative recognized in earnings | 1 | 4 | -4 | 6 | ||||
Undesignated Derivatives | ' | ' | ' | ' | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ||||
Gain (loss) on derivative recognized in earnings | 6 | 38 | 7 | 40 | ||||
Undesignated Derivatives | Southern California Gas Company [Member] | ' | ' | ' | ' | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ||||
Gain (loss) on derivative recognized in earnings | 1 | 1 | 0 | 0 | ||||
Undesignated Derivatives | Other Income, Net | Interest Rate And Foreign Exchange Instruments [Member] | ' | ' | ' | ' | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ||||
Gain (loss) on derivative recognized in earnings | 4 | 1 | 17 | 11 | ||||
Undesignated Derivatives | Equity Earnings Net Of Income Tax [Member] | Interest Rate And Foreign Exchange Instruments [Member] | ' | ' | ' | ' | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ||||
Gain (loss) on derivative recognized in earnings | 0 | 0 | -3 | 0 | ||||
Undesignated Derivatives | Revenues: Energy-Related Businesses [Member] | Commodity Contracts Not Subject To Rate Recovery | ' | ' | ' | ' | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ||||
Gain (loss) on derivative recognized in earnings | 1 | -5 | 2 | -3 | ||||
Undesignated Derivatives | Cost of Electric Fuel and Purchased Power [Member] | Commodity Contracts Subject To Rate Recovery [Member] | ' | ' | ' | ' | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ||||
Gain (loss) on derivative recognized in earnings | 0 | 41 | -9 | 32 | ||||
Undesignated Derivatives | Cost of Electric Fuel and Purchased Power [Member] | Commodity Contracts Subject To Rate Recovery [Member] | San Diego Gas and Electric Company and Subsidiary [Member] | ' | ' | ' | ' | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ||||
Gain (loss) on derivative recognized in earnings | 0 | 41 | -9 | 32 | ||||
Undesignated Derivatives | Other Operation And Maintenance [Member] | Commodity Contracts Not Subject To Rate Recovery | ' | ' | ' | ' | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ||||
Gain (loss) on derivative recognized in earnings | 0 | 1 | 0 | 1 | ||||
Undesignated Derivatives | Other Operation And Maintenance [Member] | Commodity Contracts Not Subject To Rate Recovery | Southern California Gas Company [Member] | ' | ' | ' | ' | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ||||
Gain (loss) on derivative recognized in earnings | 0 | 1 | 0 | 1 | ||||
Undesignated Derivatives | Cost of Natural Gas [Member] | Commodity Contracts Subject To Rate Recovery [Member] | ' | ' | ' | ' | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ||||
Gain (loss) on derivative recognized in earnings | 1 | 0 | 0 | -1 | ||||
Undesignated Derivatives | Cost of Natural Gas [Member] | Commodity Contracts Subject To Rate Recovery [Member] | Southern California Gas Company [Member] | ' | ' | ' | ' | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ||||
Gain (loss) on derivative recognized in earnings | $1 | $0 | $0 | ($1) | ||||
[1] | Amounts include Otay Mesa VIE. All of SDG&Ebs interest rate derivative activity relates to Otay Mesa VIE; there has been a negligible amount of ineffectiveness related to these swaps. | |||||||
[2] | There has been no hedge ineffectiveness on these swaps. Changes in the fair values of the interest rate swap agreements are exactly offset by changes in the fair value of the underlying long-term debt. |
DERIVATIVE_FINANCIAL_INSTRUMEN6
DERIVATIVE FINANCIAL INSTRUMENTS 5 (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Cash Flow Hedge Disclosure [Line Items] | ' | ' | ' | ' |
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | ($22) | ' | ' | ' |
Maximum length of time hedged in cash flow hedge | '15 | ' | ' | ' |
Joint Venture Maximum Length Of Time Hedged In Cash Flow Hedge | '22 | ' | ' | ' |
Cash flow hedge ineffectiveness | 0 | 1 | 1 | 1 |
Cash Flow Hedge Gain (Loss) To Be Reclassified Within Twelve Months For Noncontrolling Interest | -11 | ' | ' | ' |
San Diego Gas and Electric Company and Subsidiary [Member] | ' | ' | ' | ' |
Cash Flow Hedge Disclosure [Line Items] | ' | ' | ' | ' |
Maximum length of time hedged in cash flow hedge | '6 | ' | ' | ' |
Cash Flow Hedge Gain (Loss) To Be Reclassified Within Twelve Months For Noncontrolling Interest | -10 | ' | ' | ' |
Southern California Gas Company [Member] | ' | ' | ' | ' |
Cash Flow Hedge Disclosure [Line Items] | ' | ' | ' | ' |
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | ($1) | ' | ' | ' |
DERIVATIVE_FINANCIAL_INSTRUMEN7
DERIVATIVE FINANCIAL INSTRUMENTS 6 (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Derivative Credit Risk Related Contingent Features [Line Items] | ' | ' |
Derivative, Net Liability Position, Aggregate Fair Value | $3 | $8 |
Additional Collateral Aggregate Fair Value | 3 | ' |
San Diego Gas and Electric Company and Subsidiary [Member] | ' | ' |
Derivative Credit Risk Related Contingent Features [Line Items] | ' | ' |
Derivative, Net Liability Position, Aggregate Fair Value | 2 | 6 |
Additional Collateral Aggregate Fair Value | $2 | ' |
FAIR_VALUE_MEASUREMENTS_Detail
FAIR VALUE MEASUREMENTS (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' | ' | ||
Cost | $609 | ' | $609 | ' | $594 | ||
Gross unrealized gains | 380 | ' | 380 | ' | 317 | ||
Gross unrealized losses | -8 | ' | -8 | ' | -3 | ||
Estimated fair value | 981 | ' | 981 | ' | 908 | ||
Proceeds from sales | 181 | 204 | 507 | 524 | ' | ||
Gross realized gains | 2 | 3 | 13 | 12 | ' | ||
Gross realized losses | 8 | 1 | 15 | 6 | ' | ||
Total Debt Securities | ' | ' | ' | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' | ' | ||
Cost | 367 | ' | 367 | ' | 325 | ||
Gross unrealized gains | 10 | ' | 10 | ' | 25 | ||
Gross unrealized losses | -6 | ' | -6 | ' | -1 | ||
Estimated fair value | 371 | ' | 371 | ' | 349 | ||
Debt Securities Issued By The U.S. Treasury And Other U.S. Government Corporations And Agencies | ' | ' | ' | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' | ' | ||
Cost | 130 | [1] | ' | 130 | [1] | ' | 147 |
Gross unrealized gains | 4 | [1] | ' | 4 | [1] | ' | 9 |
Gross unrealized losses | -1 | [1] | ' | -1 | [1] | ' | 0 |
Estimated fair value | 133 | [1] | ' | 133 | [1] | ' | 156 |
Municipal Bonds | ' | ' | ' | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' | ' | ||
Cost | 102 | [2] | ' | 102 | [2] | ' | 57 |
Gross unrealized gains | 3 | [2] | ' | 3 | [2] | ' | 6 |
Gross unrealized losses | -1 | [2] | ' | -1 | [2] | ' | 0 |
Estimated fair value | 104 | [2] | ' | 104 | [2] | ' | 63 |
Other Debt Securities | ' | ' | ' | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' | ' | ||
Cost | 135 | [3] | ' | 135 | [3] | ' | 121 |
Gross unrealized gains | 3 | [3] | ' | 3 | [3] | ' | 10 |
Gross unrealized losses | -4 | [3] | ' | -4 | [3] | ' | -1 |
Estimated fair value | 134 | [3] | ' | 134 | [3] | ' | 130 |
Equity Securities | ' | ' | ' | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' | ' | ||
Cost | 231 | ' | 231 | ' | 249 | ||
Gross unrealized gains | 370 | ' | 370 | ' | 292 | ||
Gross unrealized losses | -2 | ' | -2 | ' | -2 | ||
Estimated fair value | 599 | ' | 599 | ' | 539 | ||
Cash And Cash Equivalents | ' | ' | ' | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' | ' | ||
Cost | 11 | ' | 11 | ' | 20 | ||
Gross unrealized gains | 0 | ' | 0 | ' | 0 | ||
Gross unrealized losses | 0 | ' | 0 | ' | 0 | ||
Estimated fair value | $11 | ' | $11 | ' | $20 | ||
[1] | Maturity dates are 2014-2056. | ||||||
[2] | Maturity dates are 2014-2062. | ||||||
[3] | Maturity dates are 2013-2111. |
FAIR_VALUE_MEASUREMENTS_3_Deta
FAIR VALUE MEASUREMENTS 3 (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Nuclear decommissioning trusts - equity securities | $599 | $539 | ||
Nuclear decommissioning trusts - Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies | 133 | 156 | ||
Nuclear decomissioning trusts - Municipal debt securities | 104 | 63 | ||
Nuclear decommissioning trusts - Other debt securities | 134 | 130 | ||
Nuclear decommissioning trusts - Total debt securities | 371 | 349 | ||
Total nuclear decommissioning trusts | 970 | [1] | 888 | [1] |
Interest rate instruments, assets | 63 | 68 | ||
Commodity contracts subject to rate recovery, assets | 69 | 74 | ||
Commodity contracts not subject to rate recovery, assets | 34 | 43 | ||
Investments | ' | 1 | ||
Total fair value of assets measured on a recurring basis | 1,136 | 1,074 | ||
Interest rate instruments, liabilities | 124 | 126 | ||
Commodity contracts subject to rate recovery, liabilities | 15 | 9 | ||
Commodity contracts not subject to rate recovery, liabilities | 10 | 18 | ||
Total fair value of liabilities measured on a recurring basis | 149 | 153 | ||
San Diego Gas and Electric Company and Subsidiary [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Nuclear decommissioning trusts - equity securities | 599 | 539 | ||
Nuclear decommissioning trusts - Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies | 133 | 156 | ||
Nuclear decomissioning trusts - Municipal debt securities | 104 | 63 | ||
Nuclear decommissioning trusts - Other debt securities | 134 | 130 | ||
Nuclear decommissioning trusts - Total debt securities | 371 | 349 | ||
Total nuclear decommissioning trusts | 970 | [1] | 888 | [1] |
Commodity contracts subject to rate recovery, assets | 67 | 73 | ||
Commodity contracts not subject to rate recovery, assets | 2 | 1 | ||
Total fair value of assets measured on a recurring basis | 1,039 | 962 | ||
Interest rate instruments, liabilities | 59 | 81 | ||
Commodity contracts subject to rate recovery, liabilities | 15 | 8 | ||
Total fair value of liabilities measured on a recurring basis | 74 | 89 | ||
Southern California Gas Company [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Commodity contracts subject to rate recovery, assets | 2 | 1 | ||
Commodity contracts not subject to rate recovery, assets | 3 | 3 | ||
Total fair value of assets measured on a recurring basis | 5 | 4 | ||
Commodity contracts subject to rate recovery, liabilities | ' | 1 | ||
Total fair value of liabilities measured on a recurring basis | ' | 1 | ||
Level 1 | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Nuclear decommissioning trusts - equity securities | 599 | 539 | ||
Nuclear decommissioning trusts - Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies | 77 | 87 | ||
Nuclear decomissioning trusts - Municipal debt securities | 0 | 0 | ||
Nuclear decommissioning trusts - Other debt securities | 0 | 0 | ||
Nuclear decommissioning trusts - Total debt securities | 77 | 87 | ||
Total nuclear decommissioning trusts | 676 | [1] | 626 | [1] |
Interest rate instruments, assets | 0 | 0 | ||
Commodity contracts subject to rate recovery, assets | 12 | 13 | ||
Commodity contracts not subject to rate recovery, assets | 22 | 28 | ||
Investments | ' | 1 | ||
Total fair value of assets measured on a recurring basis | 710 | 668 | ||
Interest rate instruments, liabilities | 0 | 0 | ||
Commodity contracts subject to rate recovery, liabilities | 13 | 23 | ||
Commodity contracts not subject to rate recovery, liabilities | 2 | 6 | ||
Total fair value of liabilities measured on a recurring basis | 15 | 29 | ||
Level 1 | San Diego Gas and Electric Company and Subsidiary [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Nuclear decommissioning trusts - equity securities | 599 | 539 | ||
Nuclear decommissioning trusts - Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies | 77 | 87 | ||
Nuclear decomissioning trusts - Municipal debt securities | 0 | 0 | ||
Nuclear decommissioning trusts - Other debt securities | 0 | 0 | ||
Nuclear decommissioning trusts - Total debt securities | 77 | 87 | ||
Total nuclear decommissioning trusts | 676 | [1] | 626 | [1] |
Commodity contracts subject to rate recovery, assets | 10 | 12 | ||
Commodity contracts not subject to rate recovery, assets | 2 | 1 | ||
Total fair value of assets measured on a recurring basis | 688 | 639 | ||
Interest rate instruments, liabilities | 0 | 0 | ||
Commodity contracts subject to rate recovery, liabilities | 13 | 23 | ||
Total fair value of liabilities measured on a recurring basis | 13 | 23 | ||
Level 1 | Southern California Gas Company [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Commodity contracts subject to rate recovery, assets | 2 | 1 | ||
Commodity contracts not subject to rate recovery, assets | 3 | 3 | ||
Total fair value of assets measured on a recurring basis | 5 | 4 | ||
Commodity contracts subject to rate recovery, liabilities | ' | 0 | ||
Total fair value of liabilities measured on a recurring basis | ' | 0 | ||
Level 2 | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Nuclear decommissioning trusts - equity securities | 0 | 0 | ||
Nuclear decommissioning trusts - Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies | 56 | 69 | ||
Nuclear decomissioning trusts - Municipal debt securities | 104 | 63 | ||
Nuclear decommissioning trusts - Other debt securities | 134 | 130 | ||
Nuclear decommissioning trusts - Total debt securities | 294 | 262 | ||
Total nuclear decommissioning trusts | 294 | [1] | 262 | [1] |
Interest rate instruments, assets | 63 | 68 | ||
Commodity contracts subject to rate recovery, assets | 0 | 0 | ||
Commodity contracts not subject to rate recovery, assets | 12 | 15 | ||
Investments | ' | 0 | ||
Total fair value of assets measured on a recurring basis | 369 | 345 | ||
Interest rate instruments, liabilities | 124 | 126 | ||
Commodity contracts subject to rate recovery, liabilities | 15 | 9 | ||
Commodity contracts not subject to rate recovery, liabilities | 15 | 23 | ||
Total fair value of liabilities measured on a recurring basis | 154 | 158 | ||
Level 2 | San Diego Gas and Electric Company and Subsidiary [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 | 56 | 69 | ||
Nuclear decomissioning trusts - Municipal debt securities | 104 | 63 | ||
Nuclear decommissioning trusts - Other debt securities | 134 | 130 | ||
Nuclear decommissioning trusts - Total debt securities | 294 | 262 | ||
Total nuclear decommissioning trusts | 294 | [1] | 262 | [1] |
Commodity contracts subject to rate recovery, assets | 0 | 0 | ||
Commodity contracts not subject to rate recovery, assets | 0 | 0 | ||
Total fair value of assets measured on a recurring basis | 294 | 262 | ||
Interest rate instruments, liabilities | 59 | 81 | ||
Commodity contracts subject to rate recovery, liabilities | 15 | 8 | ||
Total fair value of liabilities measured on a recurring basis | 74 | 89 | ||
Level 2 | Southern California Gas Company [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Commodity contracts subject to rate recovery, assets | 0 | 0 | ||
Commodity contracts not subject to rate recovery, assets | 0 | 0 | ||
Total fair value of assets measured on a recurring basis | 0 | 0 | ||
Commodity contracts subject to rate recovery, liabilities | ' | 1 | ||
Total fair value of liabilities measured on a recurring basis | ' | 1 | ||
Level 3 | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Nuclear decommissioning trusts - equity securities | 0 | 0 | ||
Nuclear decommissioning trusts - Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies | 0 | 0 | ||
Nuclear decomissioning trusts - Municipal debt securities | 0 | 0 | ||
Nuclear decommissioning trusts - Other debt securities | 0 | 0 | ||
Nuclear decommissioning trusts - Total debt securities | 0 | 0 | ||
Total nuclear decommissioning trusts | 0 | [1] | 0 | [1] |
Interest rate instruments, assets | 0 | 0 | ||
Commodity contracts subject to rate recovery, assets | 57 | 61 | ||
Commodity contracts not subject to rate recovery, assets | 0 | 0 | ||
Investments | ' | 0 | ||
Total fair value of assets measured on a recurring basis | 57 | 61 | ||
Interest rate instruments, liabilities | 0 | 0 | ||
Commodity contracts subject to rate recovery, liabilities | 0 | 0 | ||
Commodity contracts not subject to rate recovery, liabilities | 0 | 0 | ||
Total fair value of liabilities measured on a recurring basis | 0 | 0 | ||
Level 3 | San Diego Gas and Electric Company and Subsidiary [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Nuclear decommissioning trusts - equity securities | 0 | 0 | ||
Nuclear decommissioning trusts - Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies | 0 | 0 | ||
Nuclear decomissioning trusts - Municipal debt securities | 0 | 0 | ||
Nuclear decommissioning trusts - Other debt securities | 0 | 0 | ||
Nuclear decommissioning trusts - Total debt securities | 0 | 0 | ||
Total nuclear decommissioning trusts | 0 | [1] | 0 | [1] |
Commodity contracts subject to rate recovery, assets | 57 | 61 | ||
Commodity contracts not subject to rate recovery, assets | 0 | 0 | ||
Total fair value of assets measured on a recurring basis | 57 | 61 | ||
Interest rate instruments, liabilities | 0 | 0 | ||
Commodity contracts subject to rate recovery, liabilities | 0 | 0 | ||
Total fair value of liabilities measured on a recurring basis | 0 | 0 | ||
Level 3 | Southern California Gas Company [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Commodity contracts subject to rate recovery, assets | 0 | 0 | ||
Commodity contracts not subject to rate recovery, assets | 0 | 0 | ||
Total fair value of assets measured on a recurring basis | 0 | 0 | ||
Commodity contracts subject to rate recovery, liabilities | ' | 0 | ||
Total fair value of liabilities measured on a recurring basis | ' | 0 | ||
Collateral Netted [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Nuclear decommissioning trusts - equity securities | 0 | 0 | ||
Nuclear decommissioning trusts - Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies | 0 | 0 | ||
Nuclear decomissioning trusts - Municipal debt securities | 0 | 0 | ||
Nuclear decommissioning trusts - Other debt securities | 0 | 0 | ||
Nuclear decommissioning trusts - Total debt securities | 0 | 0 | ||
Total nuclear decommissioning trusts | 0 | [1] | 0 | [1] |
Interest rate instruments, assets | 0 | 0 | ||
Commodity contracts subject to rate recovery, assets | 0 | 0 | ||
Commodity contracts not subject to rate recovery, assets | 0 | 0 | ||
Investments | ' | 0 | ||
Total fair value of assets measured on a recurring basis | 0 | 0 | ||
Interest rate instruments, liabilities | 0 | 0 | ||
Commodity contracts subject to rate recovery, liabilities | -13 | -23 | ||
Commodity contracts not subject to rate recovery, liabilities | -7 | -11 | ||
Total fair value of liabilities measured on a recurring basis | -20 | -34 | ||
Collateral Netted [Member] | San Diego Gas and Electric Company and Subsidiary [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Nuclear decommissioning trusts - equity securities | 0 | 0 | ||
Nuclear decommissioning trusts - Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies | 0 | 0 | ||
Nuclear decomissioning trusts - Municipal debt securities | 0 | 0 | ||
Nuclear decommissioning trusts - Other debt securities | 0 | 0 | ||
Nuclear decommissioning trusts - Total debt securities | 0 | 0 | ||
Total nuclear decommissioning trusts | 0 | [1] | 0 | [1] |
Commodity contracts subject to rate recovery, assets | 0 | 0 | ||
Commodity contracts not subject to rate recovery, assets | 0 | 0 | ||
Total fair value of assets measured on a recurring basis | 0 | 0 | ||
Interest rate instruments, liabilities | 0 | 0 | ||
Commodity contracts subject to rate recovery, liabilities | -13 | -23 | ||
Total fair value of liabilities measured on a recurring basis | -13 | -23 | ||
Collateral Netted [Member] | Southern California Gas Company [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Commodity contracts subject to rate recovery, assets | 0 | 0 | ||
Commodity contracts not subject to rate recovery, assets | 0 | 0 | ||
Total fair value of assets measured on a recurring basis | 0 | 0 | ||
Commodity contracts subject to rate recovery, liabilities | ' | 0 | ||
Total fair value of liabilities measured on a recurring basis | ' | $0 | ||
[1] | Excludes cash balances and cash equivalents. |
FAIR_VALUE_MEASUREMENTS_4_Deta
FAIR VALUE MEASUREMENTS 4 (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ' | ' |
Balance at beginning of period | $47 | $13 | $61 | $23 |
Realized and unrealized gains (losses) | 1 | 16 | -2 | 23 |
Allocated transmission instruments | 15 | 17 | 15 | 18 |
Settlements | -6 | -23 | -17 | -41 |
Balance at end of period | 57 | 23 | 57 | 23 |
Change in unrealized gains (losses) relating to instruments still held at period end | 2 | 0 | 1 | 0 |
CRR Auction Rate Per MWh, Minimum | -8 | -3 | -8 | -3 |
CRR Auction Rate Per MWh, Maximum | $8 | $5 | $8 | $5 |
FAIR_VALUE_MEASUREMENTS_5_Deta
FAIR VALUE MEASUREMENTS 5 (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Investments, Fair Value Disclosure | ' | $1 | ||
Level 1 | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Investments, Fair Value Disclosure | ' | 1 | ||
Level 2 | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Investments, Fair Value Disclosure | ' | 0 | ||
Level 3 | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Investments, Fair Value Disclosure | ' | 0 | ||
Collateral Netted [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Investments, Fair Value Disclosure | ' | 0 | ||
San Diego Gas and Electric Company and Subsidiary [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Preferred stock pending redemption | 82 | 0 | [1] | |
Carrying Amount | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Investments, Fair Value Disclosure | ' | 12 | [2] | |
Fair value of financial instruments, Total long-term debt | 11,750 | [3] | 11,873 | [3] |
Preferred Stock Of Subsidiaries Fair Value Disclosure | 20 | 99 | ||
Debt Instrument Unamortized Discount | 15 | 16 | ||
Capital Lease Obligations | 184 | 189 | ||
Commercial Paper Noncurrent | ' | 300 | ||
Carrying Amount | San Diego Gas and Electric Company and Subsidiary [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Fair value of financial instruments, Total long-term debt | 4,402 | [4] | 4,135 | [4] |
Contingently Redeemable Preferred Stock Fair Value Disclosure | ' | 79 | [2] | |
Debt Instrument Unamortized Discount | 11 | 12 | ||
Capital Lease Obligations | 181 | 185 | ||
Carrying Amount | Southern California Gas Company [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Fair value of financial instruments, Total long-term debt | 1,413 | [5] | 1,413 | [5] |
Preferred Stock Fair Value Disclosure | 22 | 22 | ||
Debt Instrument Unamortized Discount | 4 | 4 | ||
Capital Lease Obligations | 2 | 4 | ||
Fair Value | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Investments, Fair Value Disclosure | ' | 36 | [2] | |
Fair value of financial instruments, Total long-term debt | 12,563 | [3] | 13,243 | [3] |
Preferred Stock Of Subsidiaries Fair Value Disclosure | 21 | 107 | ||
Fair Value | Level 1 | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Investments, Fair Value Disclosure | ' | 0 | [2] | |
Fair value of financial instruments, Total long-term debt | 0 | [3] | 0 | [3] |
Preferred Stock Of Subsidiaries Fair Value Disclosure | 0 | 0 | ||
Fair Value | Level 2 | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Investments, Fair Value Disclosure | ' | 0 | [2] | |
Fair value of financial instruments, Total long-term debt | 11,818 | [3] | 12,287 | [3] |
Preferred Stock Of Subsidiaries Fair Value Disclosure | 21 | 107 | ||
Fair Value | Level 3 | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Investments, Fair Value Disclosure | ' | 36 | [2] | |
Fair value of financial instruments, Total long-term debt | 745 | [3] | 956 | [3] |
Preferred Stock Of Subsidiaries Fair Value Disclosure | 0 | 0 | ||
Fair Value | San Diego Gas and Electric Company and Subsidiary [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Fair value of financial instruments, Total long-term debt | 4,662 | [4] | 4,588 | [4] |
Contingently Redeemable Preferred Stock Fair Value Disclosure | ' | 85 | [2] | |
Fair Value | San Diego Gas and Electric Company and Subsidiary [Member] | Level 1 | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Fair value of financial instruments, Total long-term debt | 0 | [4] | 0 | [4] |
Contingently Redeemable Preferred Stock Fair Value Disclosure | ' | 0 | [2] | |
Fair Value | San Diego Gas and Electric Company and Subsidiary [Member] | Level 2 | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Fair value of financial instruments, Total long-term debt | 4,325 | [4] | 4,243 | [4] |
Contingently Redeemable Preferred Stock Fair Value Disclosure | ' | 85 | [2] | |
Fair Value | San Diego Gas and Electric Company and Subsidiary [Member] | Level 3 | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Fair value of financial instruments, Total long-term debt | 337 | [4] | 345 | [4] |
Contingently Redeemable Preferred Stock Fair Value Disclosure | ' | 0 | [2] | |
Fair Value | Southern California Gas Company [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Fair value of financial instruments, Total long-term debt | 1,504 | [5] | 1,599 | [5] |
Preferred Stock Fair Value Disclosure | 23 | 24 | ||
Fair Value | Southern California Gas Company [Member] | Level 1 | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Fair value of financial instruments, Total long-term debt | 0 | [5] | 0 | [5] |
Preferred Stock Of Subsidiaries Fair Value Disclosure | 0 | 0 | ||
Fair Value | Southern California Gas Company [Member] | Level 2 | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Fair value of financial instruments, Total long-term debt | 1,504 | [5] | 1,599 | [5] |
Preferred Stock Fair Value Disclosure | 23 | 24 | ||
Fair Value | Southern California Gas Company [Member] | Level 3 | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Fair value of financial instruments, Total long-term debt | 0 | [5] | 0 | [5] |
Preferred Stock Of Subsidiaries Fair Value Disclosure | $0 | $0 | ||
[1] | Derived from audited financial statements. | |||
[2] | On September 30, 2013, SDG&E announced that it would redeem all outstanding shares of its contingently redeemable preferred stock on October 15, 2013 for $82 million. See Note 5 for additional details. | |||
[3] | Before reductions for unamortized discount (net of premium) of $15 million at September 30, 2013 and $16 million at December 31, 2012, and excluding capital leases of $184 million at September 30, 2013 and $189 million at December 31, 2012, and commercial paper classified as long-term debt of $300 million at December 31, 2012. We discuss our long-term debt in Note 6 above and in Note 5 of the Notes to Consolidated Financial Statements in the Annual Report. | |||
[4] | Before reductions for unamortized discount of $11 million at September 30, 2013 and $12 million at December 31, 2012, and excluding capital leases of $181 million at September 30, 2013 and $185 million at December 31, 2012. | |||
[5] | Before reductions for unamortized discount of $4 million at both September 30, 2013 and December 31, 2012, and excluding capital leases of $2 million at September 30, 2013 and $4 million at December 31, 2012. |
CALIFORNIA_UTILITIES_REGULATOR1
CALIFORNIA UTILITIES' REGULATORY MATTERS - SCHEDULE OF REGULATORY AMOUNTS 1 (Details) (USD $) | 12 Months Ended | 3 Months Ended | 3 Months Ended | ||||||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | |
Utility Subsidiaries [Member] | Utility Subsidiaries [Member] | Utility Subsidiaries [Member] | San Diego Gas and Electric Company and Subsidiary [Member] | San Diego Gas and Electric Company and Subsidiary [Member] | San Diego Gas and Electric Company and Subsidiary [Member] | San Diego Gas and Electric Company and Subsidiary [Member] | Southern California Gas Company [Member] | Southern California Gas Company [Member] | Southern California Gas Company [Member] | Southern California Gas Company [Member] | |
Schedule of Cost of Capital [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Authorized Return On Rate Base Previous | ' | ' | ' | 8.40% | ' | ' | ' | 8.68% | ' | ' | ' |
Authorized Return On Rate Base | ' | ' | ' | 7.79% | ' | ' | ' | 8.02% | ' | ' | ' |
General Rate Case [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
General Rate Case, Annual Revenue Requirement Increase | ' | ' | ' | $119,000,000 | ' | ' | ' | $115,000,000 | ' | ' | ' |
General Rate Case, Percentage Annual Revenue Requirement Increase | ' | ' | ' | 7.40% | ' | ' | ' | 6.20% | ' | ' | ' |
General Rate Case, Revenue Requirement | ' | ' | ' | 1,733,000,000 | ' | ' | ' | 1,959,000,000 | ' | ' | ' |
General Rate Case, Total Earnings Impact | ' | ' | ' | ' | 69,000,000 | ' | ' | ' | 37,000,000 | ' | ' |
General Rate Case, Cumulative Earnings Impact | ' | ' | ' | ' | ' | 17,000,000 | 52,000,000 | ' | ' | 12,000,000 | 25,000,000 |
General Rate Case, Regulatory Asset | ' | ' | ' | 366,000,000 | ' | ' | ' | 117,000,000 | ' | ' | ' |
General Rate Case, Noncurrent Regulatory Asset | ' | ' | ' | 203,000,000 | ' | ' | ' | 65,000,000 | ' | ' | ' |
General Rate Case, Revenue Attrition Mechanism Fixed Annual Factor | 2.75% | 2.75% | 2.65% | ' | ' | ' | ' | ' | ' | ' | ' |
FERC Electric Transmission Formula Rate Filing [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proposed Return On Ferc Rate Base | ' | ' | ' | 11.30% | ' | ' | ' | ' | ' | ' | ' |
Likely Return On Ferc Rate Base | ' | ' | ' | 10.00% | ' | ' | ' | ' | ' | ' | ' |
Proposed Recovery Related To Excess Wildfire Claims In Transmission Rates | ' | ' | ' | $23,200,000 | ' | ' | ' | ' | ' | ' | ' |
Opposition Proposed Ferc Rate Base, Lower Range | ' | ' | ' | 8.00% | ' | ' | ' | ' | ' | ' | ' |
Opposition Proposed Ferc Rate Base, Upper Range | ' | ' | ' | 10.00% | ' | ' | ' | ' | ' | ' | ' |
CALIFORNIA_UTILITIES_REGULATOR2
CALIFORNIA UTILITIES' REGULATORY MATTERS - SCHEDULE OF REGULATORY AMOUNTS 2 (Details) (USD $) | 3 Months Ended | |
Sep. 30, 2013 | Mar. 31, 2012 | |
San Diego Gas and Electric Company and Subsidiary [Member] | ' | ' |
Utility Incentive Awards [Line Items] | ' | ' |
Unrecorded Energy Efficiency Award, Program Year 2011 | $3,900,000 | ' |
San Diego Gas and Electric Company and Subsidiary [Member] | Loss from Catastrophes [Member] | ' | ' |
Wildfire [Line Items] | ' | ' |
Potential Impact On Earnings | 186,000,000 | ' |
Southern California Gas Company [Member] | ' | ' |
Utility Incentive Awards [Line Items] | ' | ' |
Recognized Gas Cost Incentive Mechanism Award | 5,400,000 | 6,200,000 |
Unrecorded Gas Cost Incentive Mechanism Award | 5,800,000 | ' |
Unrecorded Energy Efficiency Award, Program Year 2011 | $3,100,000 | ' |
CALIFORNIA_UTILITIES_REGULATOR3
CALIFORNIA UTILITIES' REGULATORY MATTERS - SCHEDULE OF UTILITY PROJECTS (Details) (USD $) | Sep. 30, 2013 |
In Millions, unless otherwise specified | |
East County Substation [Member] | San Diego Gas and Electric Company and Subsidiary [Member] | ' |
Schedule Of Utility Projects [Line Items] | ' |
Estimated Project Cost | $435 |
Aliso Canyon Natural Gas Storage Compressor Replacement [Member] | Southern California Gas Company [Member] | ' |
Schedule Of Utility Projects [Line Items] | ' |
Estimated Project Cost | 200 |
South Bay Substation [Member] | San Diego Gas and Electric Company and Subsidiary [Member] | ' |
Schedule Of Utility Projects [Line Items] | ' |
Estimated Project Cost, Lower Range | 145 |
Estimated Project Cost, Upper Range | $175 |
CALIFORNIA_UTILITIES_REGULATOR4
CALIFORNIA UTILITIES' REGULATORY MATTERS - NUCLEAR PLANT (Details) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 21 Months Ended | 3 Months Ended | 18 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Jun. 06, 2013 | ||
San Diego Gas and Electric Company and Subsidiary [Member] | San Diego Gas and Electric Company and Subsidiary [Member] | San Diego Gas and Electric Company and Subsidiary [Member] | Nuclear Plant, SDGE [Member] | Nuclear Plant, SDGE [Member] | ||||||||
Nuclear Plant [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Nuclear Plant, Ownership Percentage | ' | ' | ' | ' | ' | ' | ' | ' | 20.00% | ' | ||
Nuclear Plant, Replacement Power Costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | $166 | ||
Nuclear Plant, Revenue Recognized Associated with SONGS | ' | ' | ' | ' | ' | ' | ' | ' | ' | 300 | ||
Nuclear Plant, Replacement Power Costs Authorized | ' | ' | ' | ' | ' | ' | ' | ' | 93 | ' | ||
Authorized Recovery Amount, Nuclear Decommissioning Trust Funding | ' | ' | ' | ' | ' | ' | ' | ' | 8 | ' | ||
Requested Recovery Amount, Nuclear Decommissioning Trust Funding | ' | ' | ' | ' | ' | ' | ' | ' | 16 | ' | ||
Nuclear decommissioning trusts | 981 | ' | 981 | ' | 908 | [1] | 981 | 981 | 908 | [1] | ' | ' |
Nuclear Plant Investment [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Nuclear Plant, Net Property, Plant and Equipment | ' | ' | ' | ' | ' | 516 | 516 | ' | ' | ' | ||
Nuclear Plant, Materials Inventory | ' | ' | ' | ' | ' | 10 | 10 | ' | ' | ' | ||
Loss From Plant Closure | 0 | 0 | 200 | 0 | ' | ' | ' | ' | ' | ' | ||
Nuclear Plant, Replacement Power Costs In Excess Of Authorized | ' | ' | ' | ' | ' | 74 | ' | ' | ' | ' | ||
Regulatory Asset, Nuclear Plant Closure | ' | ' | ' | ' | ' | 431 | 431 | ' | ' | ' | ||
Nuclear Plant, Miscellaneous Costs | ' | ' | ' | ' | ' | ' | 31 | ' | ' | ' | ||
Nuclear Plant, Operations And Maintenance Expenses | ' | ' | ' | ' | ' | ' | $220 | ' | ' | ' | ||
[1] | Derived from audited financial statements. |
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES - LEGAL PROCEEDINGS (Details) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | ||
USD ($) | USD ($) | San Diego Gas and Electric Company and Subsidiary [Member] | San Diego Gas and Electric Company and Subsidiary [Member] | Southern California Gas Company [Member] | Loss from Catastrophes [Member] | Loss from Catastrophes [Member] | Loss from Catastrophes [Member] | Loss from Catastrophes [Member] | Loss from Catastrophes [Member] | Liberty Gas Storage Litigation [Member] | HMRC VAT Claim [Member] | Sunrise Powerlink Construction [Member] | Sunrise Mechanics Lien 1 [Member] | Sunrise Mechanics Lien 2 [Member] | |||
USD ($) | USD ($) | USD ($) | S D G E Segment [Member] | S D G E Segment [Member] | S D G E Segment [Member] | S D G E Segment [Member] | San Diego Gas and Electric Company and Subsidiary [Member] | USD ($) | GBP (£) | San Diego Gas and Electric Company and Subsidiary [Member] | San Diego Gas and Electric Company and Subsidiary [Member] | San Diego Gas and Electric Company and Subsidiary [Member] | |||||
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | ||||||||||
Loss Contingencies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Loss Contingency Accrual, at Carrying Value | $177,000,000 | ' | $164,000,000 | ' | $5,000,000 | ' | ' | ' | ' | $164,000,000 | ' | ' | ' | ' | ' | ||
Payments for Legal Settlements | ' | ' | ' | ' | ' | ' | ' | ' | ' | 14,750,000 | ' | ' | ' | ' | ' | ||
Claims Payments By Insurers To All Claimants | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,600,000,000 | ' | ' | ' | ' | ' | ||
Percentage of Total Claims to be Paid by Company | ' | ' | ' | ' | ' | ' | ' | ' | ' | 57.50% | ' | ' | ' | ' | ' | ||
Total Individual And Business Claims | ' | ' | ' | ' | ' | ' | ' | ' | ' | 550,000,000 | ' | ' | ' | ' | ' | ||
Liability Insurance Coverage, Maximum | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,100,000,000 | ' | ' | ' | ' | ' | ||
Litigation Settlement, Gross | ' | ' | ' | ' | ' | ' | ' | ' | ' | 824,000,000 | ' | ' | ' | ' | ' | ||
Loss Contingency Monetary Damages Sought | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 56,700,000 | ' | ' | ' | ' | ||
Estimated Gain Loss On Contract Termination | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 215,000,000 | ' | ' | ' | ' | ||
Payments For Legal Settlements In Excess Of Recovered Amounts | ' | ' | ' | ' | ' | ' | ' | ' | ' | 285,000,000 | ' | ' | ' | ' | ' | ||
Loss Contingency Accrual Carrying Value, Current | ' | ' | ' | ' | ' | ' | ' | ' | ' | 127,000,000 | ' | ' | ' | ' | ' | ||
Loss Contingency Accrual Carrying Value, Noncurrent | ' | ' | ' | ' | ' | ' | ' | ' | ' | 37,000,000 | ' | ' | ' | ' | ' | ||
VAT Tax Claim Amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 86,000,000 | ' | ' | ' | ||
Regulatory Assets Arising From Wildfire Litigation Costs | 339,000,000 | 364,000,000 | [1] | 339,000,000 | 364,000,000 | [1] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Potential Impact On Earnings | ' | ' | ' | ' | ' | ' | ' | ' | ' | 186,000,000 | ' | ' | ' | ' | ' | ||
Portion of Regulatory Assets Arising From Wildfire Litigation Related To CPUC Operations | ' | ' | ' | ' | ' | ' | ' | ' | ' | 315,000,000 | ' | ' | ' | ' | ' | ||
Fixed Fee Contract Amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 456,000,000 | ' | ' | ||
Unbilled Change Orders | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 99,200,000 | 81,100,000 | ||
Loss From Loss Contingencies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Loss Contingency, Loss (Gain) in Period | ' | ' | ' | ' | ' | ($500,000) | ($800,000) | ($200,000) | $4,100,000 | ' | ' | ' | ' | ' | ' | ||
[1] | Derived from audited financial statements. |
COMMITMENTS_AND_CONTINGENCIES_1
COMMITMENTS AND CONTINGENCIES - NUCLEAR INSURANCE (Details) (San Diego Gas and Electric Company and Subsidiary [Member], USD $) | Sep. 30, 2013 |
San Diego Gas and Electric Company and Subsidiary [Member] | ' |
Schedule Of Nuclear Insurance [Line Items] | ' |
Nuclear Liability Insurance Coverage, Maximum | $375,000,000 |
Secondary Financial Protection, Maximum | 13,200,000,000 |
Secondary Financial Protection, Company Contribution, Maximum | 50,930,000 |
Secondary Financial Protection, Company Contribution, Annual Maximum | 7,600,000 |
Nuclear Property Insurance Coverage, Maximum | 2,750,000,000 |
Nuclear Property Damage Insurance, Premium Assessment | 9,700,000 |
Nuclear Property Insurance Terrorism Coverage, Maximum | 3,240,000,000 |
Nuclear Property Insurance, Deductible Per Event | $2,500,000 |
COMMITMENTS_AND_CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - CONTRACTUAL COMMITMENTS (Details) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 |
San Diego Gas and Electric Company and Subsidiary [Member] | ' |
Payments Under Contractual Commitments [Line Items] | ' |
Increase (Decrease) In Purchased Power Commitments, Payments Due, Current | ($1) |
Increase (Decrease) In Purchased Power Commitments, Payments Due In Two Years | 77 |
Increase (Decrease) In Purchased Power Commitments, Payments Due In Three Years | 140 |
Increase (Decrease) In Purchased Power Commitments, Payments Due In Four Years | 141 |
Increase (Decrease) In Purchased Power Commitments, Payments Due In Five Years | 141 |
Increase (Decrease) In Purchased Power Commitments, Payments Due Thereafter | 2,600 |
Increase (Decrease) In Purchase Commitment Amount | 3,100 |
Operating Leases [Line Items] | ' |
Operating Leases Future Minimum Payments, Due Current | -18 |
Operating Leases, Future Minimum Payments, Due in Two Years | 3 |
Operating Leases, Future Minimum Payments, Due in Three Years | 3 |
Operating Leases, Future Minimum Payments, Due in Four Years | 3 |
Operating Leases, Future Minimum Payments, Due in Five Years | 1 |
Operating Leases, Future Minimum Payments, Due Thereafter | 84 |
Southern California Gas Company [Member] | ' |
Payments Under Contractual Commitments [Line Items] | ' |
Increase (Decrease) In Natural Gas Contracts Commitments | 156 |
Decrease In Natural Gas Contracts Commitments, Fulfillment | 554 |
Increase In Natural Gas Contracts Commitments, New Contracts | 710 |
Increase (Decrease) In Natural Gas Contracts Commitments, Payments Due, Current | -357 |
Increase (Decrease) In Natural Gas Contracts Commitments, Payments Due In Two Years | 245 |
Increase (Decrease) In Natural Gas Contracts Commitments, Payments Due In Three Years | 41 |
Increase (Decrease) In Natural Gas Contracts Commitments, Payments Due In Four Years | 67 |
Increase (Decrease) In Natural Gas Contracts Commitments, Payments Due In Five Years | 70 |
Increase (Decrease) In Natural Gas Contracts Commitments, Payments Due Thereafter | 90 |
Sempra Natural Gas [Member] | ' |
Payments Under Contractual Commitments [Line Items] | ' |
Increase (Decrease) In Liquefied Natural Gas Commitments, Payments Due, Current | -424 |
Increase (Decrease) In Liquefied Natural Gas Commitments, Payments Due In Two Years | -37 |
Increase (Decrease) In Liquefied Natural Gas Commitments, Payments Due In Three Years | -42 |
Increase (Decrease) In Liquefied Natural Gas Commitments, Payments Due In Four Years | -59 |
Increase (Decrease) In Liquefied Natural Gas Commitments, Payments Due In Five Years | -66 |
Increase (Decrease) In Liquefied Natural Gas Commitments, Payments Due Thereafter | -731 |
Increase (Decrease) In Natural Gas Contracts Commitments | 22 |
Increase (Decrease) In Natural Gas Contracts Commitments, Payments Due, Current | -36 |
Increase (Decrease) In Natural Gas Contracts Commitments, Payments Due In Two Years | 10 |
Increase (Decrease) In Natural Gas Contracts Commitments, Payments Due In Three Years | 7 |
Increase (Decrease) In Natural Gas Contracts Commitments, Payments Due In Four Years | 7 |
Increase (Decrease) In Natural Gas Contracts Commitments, Payments Due In Five Years | 7 |
Increase (Decrease) In Natural Gas Contracts Commitments, Payments Due Thereafter | 27 |
Sempra Natural Gas [Member] | Operations And Maintenance Mesquite Power [Member] | ' |
Payments Under Contractual Commitments [Line Items] | ' |
Contractual Commitments, Payments Due, Current | 1 |
Contractual Commitments, Payments Due In Two Years | 2 |
Contractual Commitments, Payments Due In Three Years | 2 |
Contractual Commitments, Payments Due In Four Years | 2 |
Contractual Commitments, Payments Due In Five Years | 2 |
Contractual Commitments, Payments Due Thereafter | 27 |
Sempra Renewables [Member] | ' |
Long-term Purchase Commitment [Line Items] | ' |
Guarantee Obligations Maximum Exposure | 250 |
Guarantee Obligations Current Carrying Value | 11 |
Operating Leases [Line Items] | ' |
Operating Leases, Future Minimum Payments, Due in Two Years | 2 |
Operating Leases, Future Minimum Payments, Due in Three Years | 2 |
Operating Leases, Future Minimum Payments, Due in Four Years | 2 |
Operating Leases, Future Minimum Payments, Due in Five Years | 2 |
Operating Leases, Future Minimum Payments, Due Thereafter | 76 |
Sempra Rockies Marketing [Member] | ' |
Payments Under Contractual Commitments [Line Items] | ' |
Contractual Commitments, Payments Due, Current | 3 |
Contractual Commitments, Payments Due In Two Years | 14 |
Contractual Commitments, Payments Due In Three Years | 14 |
Contractual Commitments, Payments Due In Four Years | 14 |
Contractual Commitments, Payments Due In Five Years | 14 |
Contractual Commitments, Payments Due Thereafter | 83 |
Pipeline Safety Enhancement Program [Member] | ' |
Long-term Purchase Commitment [Line Items] | ' |
Long-term Purchase Commitment, Amount | 372 |
Payments Under Contractual Commitments [Line Items] | ' |
Increase (Decrease) In Construction Commitments, Payments Due, Current | 91 |
Increase (Decrease) In Construction Commitments, Payments Due In Two Years | 71 |
Increase (Decrease) In Construction Commitments, Payments Due In Three Years | 70 |
Increase (Decrease) In Construction Commitments, Payments Due In Four Years | 70 |
Increase (Decrease) In Construction Commitments, Payments Due In Five Years | 70 |
Energia Sierra Juarez wind project [Member] | ' |
Long-term Purchase Commitment [Line Items] | ' |
Long-term Purchase Commitment, Amount | 215 |
Energia Sierra Juarez Wind and Sasabe-Guaymas projects [Member] | ' |
Payments Under Contractual Commitments [Line Items] | ' |
Increase (Decrease) In Construction Commitments, Payments Due, Current | 12 |
Increase (Decrease) In Construction Commitments, Payments Due In Two Years | 219 |
Increase (Decrease) In Construction Commitments, Payments Due In Three Years | 179 |
Increase (Decrease) In Construction Commitments, Payments Due In Four Years | 2 |
Sasabe-Guaymas Natural Gas Pipeline Project [Member] | ' |
Long-term Purchase Commitment [Line Items] | ' |
Long-term Purchase Commitment, Amount | 197 |
HQ Build to suit lease [Member] | ' |
Payments Under Contractual Commitments [Line Items] | ' |
Contractual Commitments, Payments Due In Three Years | 4 |
Contractual Commitments, Payments Due In Four Years | 10 |
Contractual Commitments, Payments Due In Five Years | 10 |
Contractual Commitments, Payments Due Thereafter | 287 |
Broken Bow 2 and Copper Mountain Solar 3 projects [Member] | ' |
Payments Under Contractual Commitments [Line Items] | ' |
Contractual Commitments, Payments Due, Current | 106 |
Contractual Commitments, Payments Due In Two Years | 453 |
Contractual Commitments, Payments Due In Three Years | 38 |
Operations And Maintenance Mesquite Power [Member] | Sempra Natural Gas [Member] | ' |
Long-term Purchase Commitment [Line Items] | ' |
Long-term Purchase Commitment, Amount | 36 |
Broken Bow 2 [Member] | Sempra Renewables [Member] | ' |
Long-term Purchase Commitment [Line Items] | ' |
Long-term Purchase Commitment, Amount | 82 |
Copper Mountain Solar 3 [Member] | Sempra Renewables [Member] | ' |
Long-term Purchase Commitment [Line Items] | ' |
Long-term Purchase Commitment, Amount | $515 |
SEGMENT_INFORMATION_Details
SEGMENT INFORMATION (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |||||
Segment Reporting Information, Profit (Loss) [Abstract] | ' | ' | ' | ' | ' | |||||
Segment reporting information, Revenues | $2,551 | $2,507 | $7,852 | $6,979 | ' | |||||
Segment reporting information, Percentage of Total Consolidated Revenues | 100.00% | 100.00% | 100.00% | 100.00% | ' | |||||
Segment reporting information, Interest Expense | 137 | 126 | 413 | 352 | ' | |||||
Segment reporting information, Interest Income | 5 | 5 | 15 | 14 | ' | |||||
Segment reporting information, Depreciation and Amortization | 286 | 280 | 828 | 803 | ' | |||||
Segment reporting information, Percentage of Consolidated Depreciation and Amortization | 100.00% | 100.00% | 100.00% | 100.00% | ' | |||||
Segment reporting information, Income Tax Expense (Benefit) | 117 | 49 | 327 | 48 | ' | |||||
Segment reporting information, Equity Earnings (Losses) Recorded Before Tax | 3 | -94 | 21 | -375 | ' | |||||
Segment reporting information, Equity Earnings (Losses) Recorded Net of Tax | 8 | 10 | 13 | 29 | ' | |||||
Segment reporting information, Earnings (Losses) | 296 | 268 | 719 | 566 | ' | |||||
Segment reporting information, Percentage of Consolidated Earnings (Losses) | 100.00% | 100.00% | 100.00% | 100.00% | ' | |||||
Segment Reporting Information, Additional Information [Abstract] | ' | ' | ' | ' | ' | |||||
Segment reporting information, Expenditures for Property, Plant & Equipment | ' | ' | 1,785 | 2,241 | ' | |||||
Segment reporting information, Percentage of Consolidated Expenditures for Property, Plant & Equipment | ' | ' | 100.00% | 100.00% | ' | |||||
Segment reporting information, Assets | 36,901 | ' | 36,901 | ' | 36,499 | [1] | ||||
Segment reporting information, Percentage of Consolidated Assets | 100.00% | ' | 100.00% | ' | 100.00% | |||||
Segment Reporting Information Investments In Equity Method Investees | 1,472 | ' | 1,472 | ' | 1,427 | |||||
Earnings (losses) reclassified between segments | ' | -12 | ' | -12 | ' | |||||
S D G E Segment [Member] | ' | ' | ' | ' | ' | |||||
Segment Reporting Information, Profit (Loss) [Abstract] | ' | ' | ' | ' | ' | |||||
Segment reporting information, Revenues | 1,063 | 1,092 | 3,066 | 2,706 | ' | |||||
Segment reporting information, Percentage of Total Consolidated Revenues | 42.00% | 44.00% | 39.00% | 39.00% | ' | |||||
Segment reporting information, Interest Expense | 50 | 49 | 147 | 124 | ' | |||||
Segment reporting information, Interest Income | 0 | 0 | 1 | 0 | ' | |||||
Segment reporting information, Depreciation and Amortization | 126 | 128 | 367 | 359 | ' | |||||
Segment reporting information, Percentage of Consolidated Depreciation and Amortization | 44.00% | 46.00% | 44.00% | 45.00% | ' | |||||
Segment reporting information, Income Tax Expense (Benefit) | 84 | 38 | 147 | 151 | ' | |||||
Segment reporting information, Earnings (Losses) | 129 | [2] | 174 | [2] | 285 | [2] | 374 | [2] | ' | |
Segment reporting information, Percentage of Consolidated Earnings (Losses) | 44.00% | 65.00% | 40.00% | 66.00% | ' | |||||
Segment Reporting Information, Additional Information [Abstract] | ' | ' | ' | ' | ' | |||||
Segment reporting information, Expenditures for Property, Plant & Equipment | ' | ' | 679 | 998 | ' | |||||
Segment reporting information, Percentage of Consolidated Expenditures for Property, Plant & Equipment | ' | ' | 38.00% | 44.00% | ' | |||||
Segment reporting information, Assets | 15,275 | ' | 15,275 | ' | 14,744 | |||||
Segment reporting information, Percentage of Consolidated Assets | 41.00% | ' | 41.00% | ' | 40.00% | |||||
Segment Reporting Information, Intersegment Revenue | 3 | 3 | 7 | 6 | ' | |||||
So Cal Gas Segment [Member] | ' | ' | ' | ' | ' | |||||
Segment Reporting Information, Profit (Loss) [Abstract] | ' | ' | ' | ' | ' | |||||
Segment reporting information, Revenues | 807 | 728 | 2,694 | 2,328 | ' | |||||
Segment reporting information, Percentage of Total Consolidated Revenues | 32.00% | 29.00% | 34.00% | 33.00% | ' | |||||
Segment reporting information, Interest Expense | 17 | 17 | 52 | 51 | ' | |||||
Segment reporting information, Depreciation and Amortization | 100 | 91 | 280 | 268 | ' | |||||
Segment reporting information, Percentage of Consolidated Depreciation and Amortization | 35.00% | 33.00% | 34.00% | 33.00% | ' | |||||
Segment reporting information, Income Tax Expense (Benefit) | 38 | 37 | 107 | 105 | ' | |||||
Segment reporting information, Earnings (Losses) | 102 | [3] | 71 | [3] | 266 | [3] | 190 | [3] | ' | |
Segment reporting information, Percentage of Consolidated Earnings (Losses) | 34.00% | 26.00% | 37.00% | 34.00% | ' | |||||
Segment Reporting Information, Additional Information [Abstract] | ' | ' | ' | ' | ' | |||||
Segment reporting information, Expenditures for Property, Plant & Equipment | ' | ' | 521 | 462 | ' | |||||
Segment reporting information, Percentage of Consolidated Expenditures for Property, Plant & Equipment | ' | ' | 29.00% | 21.00% | ' | |||||
Segment reporting information, Assets | 9,288 | ' | 9,288 | ' | 9,071 | |||||
Segment reporting information, Percentage of Consolidated Assets | 25.00% | ' | 25.00% | ' | 25.00% | |||||
Segment Reporting Information, Intersegment Revenue | 17 | 17 | 48 | 48 | ' | |||||
All Other Segments [Member] | ' | ' | ' | ' | ' | |||||
Segment Reporting Information, Profit (Loss) [Abstract] | ' | ' | ' | ' | ' | |||||
Segment reporting information, Interest Expense | 60 | 62 | 182 | 185 | ' | |||||
Segment reporting information, Interest Income | 2 | 2 | 1 | 1 | ' | |||||
Segment reporting information, Depreciation and Amortization | 5 | 3 | 10 | 9 | ' | |||||
Segment reporting information, Percentage of Consolidated Depreciation and Amortization | 2.00% | 1.00% | 1.00% | 1.00% | ' | |||||
Segment reporting information, Income Tax Expense (Benefit) | -42 | -27 | -48 | -108 | ' | |||||
Segment reporting information, Equity Earnings (Losses) Recorded Before Tax | 0 | -1 | 0 | -2 | ' | |||||
Segment reporting information, Earnings (Losses) | -43 | -4 | -149 | -25 | ' | |||||
Segment reporting information, Percentage of Consolidated Earnings (Losses) | -15.00% | -2.00% | -21.00% | -5.00% | ' | |||||
Segment Reporting Information, Additional Information [Abstract] | ' | ' | ' | ' | ' | |||||
Segment reporting information, Expenditures for Property, Plant & Equipment | ' | ' | 1 | 3 | ' | |||||
Segment reporting information, Percentage of Consolidated Expenditures for Property, Plant & Equipment | ' | ' | 0.00% | 0.00% | ' | |||||
Segment reporting information, Assets | 621 | ' | 621 | ' | 818 | |||||
Segment reporting information, Percentage of Consolidated Assets | 2.00% | ' | 2.00% | ' | 2.00% | |||||
Segment Reporting Information Investments In Equity Method Investees | 76 | ' | 76 | ' | 134 | |||||
Adjustments and Eliminations [Member] | ' | ' | ' | ' | ' | |||||
Segment Reporting Information, Profit (Loss) [Abstract] | ' | ' | ' | ' | ' | |||||
Segment reporting information, Revenues | 0 | 0 | -2 | -2 | ' | |||||
Segment reporting information, Percentage of Total Consolidated Revenues | 0.00% | 0.00% | 0.00% | 0.00% | ' | |||||
Intercompany Eliminations Segment [Member] | ' | ' | ' | ' | ' | |||||
Segment Reporting Information, Profit (Loss) [Abstract] | ' | ' | ' | ' | ' | |||||
Segment reporting information, Interest Expense | -37 | -43 | -95 | -121 | ' | |||||
Segment reporting information, Interest Income | -33 | -17 | -70 | -43 | ' | |||||
Intersegment Revenues Segment [Member] | ' | ' | ' | ' | ' | |||||
Segment Reporting Information, Profit (Loss) [Abstract] | ' | ' | ' | ' | ' | |||||
Segment reporting information, Revenues | -108 | [4] | -171 | [4] | -303 | [4] | -359 | [4] | ' | |
Segment reporting information, Percentage of Total Consolidated Revenues | -4.00% | -7.00% | -4.00% | -5.00% | ' | |||||
Intersegment Receivables Segment [Member] | ' | ' | ' | ' | ' | |||||
Segment Reporting Information, Additional Information [Abstract] | ' | ' | ' | ' | ' | |||||
Segment reporting information, Assets | -4,066 | ' | -4,066 | ' | -1,619 | |||||
Segment reporting information, Percentage of Consolidated Assets | -11.00% | ' | -11.00% | ' | -4.00% | |||||
Sempra South American Utilities Segment [Member] | ' | ' | ' | ' | ' | |||||
Segment Reporting Information, Profit (Loss) [Abstract] | ' | ' | ' | ' | ' | |||||
Segment reporting information, Revenues | 364 | 356 | 1,119 | 1,061 | ' | |||||
Segment reporting information, Percentage of Total Consolidated Revenues | 14.00% | 14.00% | 14.00% | 15.00% | ' | |||||
Segment reporting information, Interest Expense | 8 | 6 | 20 | 22 | ' | |||||
Segment reporting information, Interest Income | 3 | 3 | 11 | 11 | ' | |||||
Segment reporting information, Depreciation and Amortization | 14 | 15 | 44 | 42 | ' | |||||
Segment reporting information, Percentage of Consolidated Depreciation and Amortization | 5.00% | 5.00% | 5.00% | 5.00% | ' | |||||
Segment reporting information, Income Tax Expense (Benefit) | 16 | 27 | 50 | 57 | ' | |||||
Segment reporting information, Equity Earnings (Losses) Recorded Net of Tax | 0 | 0 | -14 | 0 | ' | |||||
Segment reporting information, Earnings (Losses) | 39 | 40 | 110 | 118 | ' | |||||
Segment reporting information, Percentage of Consolidated Earnings (Losses) | 13.00% | 15.00% | 15.00% | 21.00% | ' | |||||
Segment Reporting Information, Additional Information [Abstract] | ' | ' | ' | ' | ' | |||||
Segment reporting information, Expenditures for Property, Plant & Equipment | ' | ' | 120 | 117 | ' | |||||
Segment reporting information, Percentage of Consolidated Expenditures for Property, Plant & Equipment | ' | ' | 7.00% | 5.00% | ' | |||||
Segment reporting information, Assets | 3,492 | ' | 3,492 | ' | 3,310 | |||||
Segment reporting information, Percentage of Consolidated Assets | 10.00% | ' | 10.00% | ' | 9.00% | |||||
Segment Reporting Information Investments In Equity Method Investees | -2 | ' | -2 | ' | 0 | |||||
Sempra Mexico Segment [Member] | ' | ' | ' | ' | ' | |||||
Segment Reporting Information, Profit (Loss) [Abstract] | ' | ' | ' | ' | ' | |||||
Segment reporting information, Revenues | 188 | 181 | 519 | 435 | ' | |||||
Segment reporting information, Percentage of Total Consolidated Revenues | 7.00% | 7.00% | 7.00% | 6.00% | ' | |||||
Segment reporting information, Interest Expense | 0 | 3 | 5 | 6 | ' | |||||
Segment reporting information, Interest Income | 0 | 0 | 1 | 1 | ' | |||||
Segment reporting information, Depreciation and Amortization | 16 | 15 | 47 | 46 | ' | |||||
Segment reporting information, Percentage of Consolidated Depreciation and Amortization | 5.00% | 5.00% | 6.00% | 6.00% | ' | |||||
Segment reporting information, Income Tax Expense (Benefit) | 16 | 31 | 44 | 61 | ' | |||||
Segment reporting information, Equity Earnings (Losses) Recorded Net of Tax | 8 | 10 | 27 | 29 | ' | |||||
Segment reporting information, Earnings (Losses) | 39 | 42 | 96 | 122 | ' | |||||
Segment reporting information, Percentage of Consolidated Earnings (Losses) | 13.00% | 16.00% | 13.00% | 22.00% | ' | |||||
Segment Reporting Information, Additional Information [Abstract] | ' | ' | ' | ' | ' | |||||
Segment reporting information, Expenditures for Property, Plant & Equipment | ' | ' | 280 | 13 | ' | |||||
Segment reporting information, Percentage of Consolidated Expenditures for Property, Plant & Equipment | ' | ' | 16.00% | 1.00% | ' | |||||
Segment reporting information, Assets | 3,315 | ' | 3,315 | ' | 2,591 | |||||
Segment reporting information, Percentage of Consolidated Assets | 9.00% | ' | 9.00% | ' | 7.00% | |||||
Segment Reporting Information Investments In Equity Method Investees | 367 | ' | 367 | ' | 340 | |||||
Segment Reporting Information, Intersegment Revenue | 23 | 78 | 68 | 161 | ' | |||||
Sempra Renewables Segment [Member] | ' | ' | ' | ' | ' | |||||
Segment Reporting Information, Profit (Loss) [Abstract] | ' | ' | ' | ' | ' | |||||
Segment reporting information, Revenues | 25 | 27 | 76 | 49 | ' | |||||
Segment reporting information, Percentage of Total Consolidated Revenues | 1.00% | 1.00% | 1.00% | 1.00% | ' | |||||
Segment reporting information, Interest Expense | 5 | 6 | 22 | 13 | ' | |||||
Segment reporting information, Interest Income | 7 | 2 | 14 | 3 | ' | |||||
Segment reporting information, Depreciation and Amortization | 5 | 4 | 20 | 10 | ' | |||||
Segment reporting information, Percentage of Consolidated Depreciation and Amortization | 2.00% | 1.00% | 3.00% | 1.00% | ' | |||||
Segment reporting information, Income Tax Expense (Benefit) | 9 | -12 | -8 | -47 | ' | |||||
Segment reporting information, Equity Earnings (Losses) Recorded Before Tax | -10 | -6 | -12 | -7 | ' | |||||
Segment reporting information, Earnings (Losses) | 37 | 13 | 56 | 47 | ' | |||||
Segment reporting information, Percentage of Consolidated Earnings (Losses) | 13.00% | 5.00% | 8.00% | 8.00% | ' | |||||
Segment Reporting Information, Additional Information [Abstract] | ' | ' | ' | ' | ' | |||||
Segment reporting information, Expenditures for Property, Plant & Equipment | ' | ' | 119 | 564 | ' | |||||
Segment reporting information, Percentage of Consolidated Expenditures for Property, Plant & Equipment | ' | ' | 7.00% | 25.00% | ' | |||||
Segment reporting information, Assets | 1,898 | ' | 1,898 | ' | 2,439 | |||||
Segment reporting information, Percentage of Consolidated Assets | 5.00% | ' | 5.00% | ' | 7.00% | |||||
Segment Reporting Information Investments In Equity Method Investees | 701 | ' | 701 | ' | 592 | |||||
Sempra Natural Gas Segment [Member] | ' | ' | ' | ' | ' | |||||
Segment Reporting Information, Profit (Loss) [Abstract] | ' | ' | ' | ' | ' | |||||
Segment reporting information, Revenues | 212 | 294 | 683 | 761 | ' | |||||
Segment reporting information, Percentage of Total Consolidated Revenues | 8.00% | 12.00% | 9.00% | 11.00% | ' | |||||
Segment reporting information, Interest Expense | 34 | 26 | 80 | 72 | ' | |||||
Segment reporting information, Interest Income | 26 | 15 | 57 | 41 | ' | |||||
Segment reporting information, Depreciation and Amortization | 20 | 24 | 60 | 69 | ' | |||||
Segment reporting information, Percentage of Consolidated Depreciation and Amortization | 7.00% | 9.00% | 7.00% | 9.00% | ' | |||||
Segment reporting information, Income Tax Expense (Benefit) | -4 | -45 | 35 | -171 | ' | |||||
Segment reporting information, Equity Earnings (Losses) Recorded Before Tax | 13 | -87 | 33 | -366 | ' | |||||
Segment reporting information, Earnings (Losses) | -7 | -68 | 55 | -260 | ' | |||||
Segment reporting information, Percentage of Consolidated Earnings (Losses) | -2.00% | -25.00% | 8.00% | -46.00% | ' | |||||
Segment Reporting Information, Additional Information [Abstract] | ' | ' | ' | ' | ' | |||||
Segment reporting information, Expenditures for Property, Plant & Equipment | ' | ' | 65 | 84 | ' | |||||
Segment reporting information, Percentage of Consolidated Expenditures for Property, Plant & Equipment | ' | ' | 3.00% | 4.00% | ' | |||||
Segment reporting information, Assets | 7,078 | ' | 7,078 | ' | 5,145 | |||||
Segment reporting information, Percentage of Consolidated Assets | 19.00% | ' | 19.00% | ' | 14.00% | |||||
Segment Reporting Information Investments In Equity Method Investees | 330 | ' | 330 | ' | 361 | |||||
Segment Reporting Information, Intersegment Revenue | $65 | $73 | $180 | $144 | ' | |||||
[1] | Derived from audited financial statements. | |||||||||
[2] | After preferred dividends and call premium on preferred stock. | |||||||||
[3] | After preferred dividends. | |||||||||
[4] | Revenues for reportable segments include intersegment revenues of: $3 million, $17 million, $23 million and $65 million for the three months ended September 30, 2013; $7 million, $48 million, $68 million and $180 million for the nine months ended September 30, 2013; $3 million, $17 million, $78 million and $73 million for the three months ended September 30, 2012; and $6 million, $48 million, $161 million and $144 million for the nine months ended September 30, 2012 for SDG&E, SoCalGas, Sempra Mexico and Sempra Natural Gas, respectively. |